PEDEVCO Q3 Revenue Jumps 411% to $35.5M, Net Loss Hits $9.2M

PEDEVCO Corp. (NYSE American: PED) reported third quarter 2026 oil and gas sales of $35.5 million, up 411% from $7.0 million a year earlier, on average daily production of 5,850 barrels of oil equivalent per day, the company announced on November 12, 2026. Net loss widened to $9.2 million, or $(0.70) per share, from $(0.3) million, as a $16.6 million net loss on derivative contracts and $1.7 million of interest expense more than offset higher operating income. Adjusted EBITDA rose 239% to $14.7 million.

Context — why PEDEVCO's Q3 revenue jump still produced a loss

PEDEVCO's headline growth is a consolidation story, not an organic one. The company said the 298% production increase to 538,231 Boe for the quarter reflects the contribution of assets acquired in its October 31, 2025 merger with portfolio companies controlled by Juniper Capital Advisors. The prior-year quarter carried no operating costs from those assets because the deal had not yet closed, which is why lease operating costs jumped to $14.3 million from $2.1 million.

The company's own sequential comparison frames the quarter more accurately than the year-over-year one. Average daily production fell 14% from 6,801 Boe/d in the second quarter of 2026, and revenue slipped 23% from $46.1 million. PEDEVCO attributed the decline to temporary offset shut-ins tied to drilling and completion work in the D-J Basin and Powder River Basin, an acceleration of rod conversions originally scheduled for the fourth quarter, and the sale of non-core acreage in the Northern PRB.

Management said those shut-ins and conversions curtailed more than 200 barrels of oil per day during the quarter, and that the affected wells have since returned to production. Interim President, Interim Chief Executive Officer and Chief Operating Officer Reagan Dukes said the company expects sequentially stronger production in the fourth quarter and is concentrating capital in the Rocky Mountain region.

The loss itself was largely a mark-to-market event. PEDEVCO recorded a $16.6 million net loss on derivatives, of which $12.0 million was non-cash and unrealized, driven by the rise in commodity pricing between June 30 and September 30, 2026 on unsettled periods. Realized settlement losses accounted for $4.6 million.

Data — what the numbers show

The table below sets the third quarter against both the prior-year quarter and the immediately preceding quarter, using figures the company reported.

Metric	Q3 2026	Q3 2025	Q2 2026
Avg daily production (Boe/d)	5,850	1,471	6,801
Revenue	$35,540k	$6,961k	$46,113k
Net income (loss)	$(9,242)k	$(325)k	$17,454k
Adjusted EBITDA	$14,680k	$4,325k	$18,669k

The revenue bridge is unusually clean. Of the $28.6 million year-over-year increase, $26.7 million came from higher sales volumes and $1.9 million from higher realized pricing. The average realized oil price rose 31% to $83.81 per barrel from $63.76. NGL realizations climbed 23% to $29.44 per barrel, while natural gas fell 34% to $1.94 per Mcf.

Cost lines moved with the asset base. DD&A rose to $9.7 million from $4.0 million, impairment of oil and gas properties reached $2.4 million versus $0.2 million, and total G&A rose to $4.9 million from $1.5 million. That G&A figure includes $2.1 million of severance tied to the leadership transition, a cost the company now excludes from Adjusted EBITDA.

Liquidity remains the balance-sheet story. Cash stood at $4.7 million with $1.1 million restricted as of September 30, 2026. Revolver borrowings declined to $80.0 million from $85.0 million at June 30, leaving $45.0 million of additional availability, and the company said its borrowing base and elected commitments were reaffirmed at $125 million in October 2026.

Analysis — what it means for energy sector positioning

The divergence between Adjusted EBITDA of $14.7 million and a $9.2 million net loss is the central fact of this release. A reader comparing PEDEVCO to larger Rockies operators should note that the derivative loss is a function of hedging, not operations: when crude rallies, the company's unsettled hedges lose value on paper. That is the same mechanism that would reverse if prices fell.

The offsetting gain is worth isolating. PEDEVCO booked a $4.7 million net gain on the sale of oil and gas properties in the quarter, including $2.5 million from selling Weld County, Colorado interests in July 2026. Without that gain, operating income would have been materially lower. The company's nine-month results show the same pattern at scale: $121.9 million of oil and gas sales against a $17.2 million pre-tax loss, with $42.8 million of derivative losses absorbing the difference.

The limitation here is inventory conversion, not capital access. PEDEVCO said it holds over 284,000 net acres, with roughly 183,829 net acres in the Powder River Basin and about 85,898 net acres in the D-J Basin. It acquired approximately 5,678 net acres for about $5.9 million through a Bureau of Land Management lease sale, nearly doubling its Mowry position in that prospect area to roughly 12,000 net acres. Whether that acreage converts to barrels is the open question, and the company did not disclose a timetable for bringing the newly drilled PRB well online beyond saying it is not expected before year-end.

Positioning is likely to hinge on the guidance reset. The company raised full-year 2026 net capital expenditure guidance to $37 million to $42 million from a prior range of up to $20 million, citing lease acquisitions and fourth-quarter development, while reiterating Adjusted EBITDA guidance of $60 million to $70 million. Investors long the growth narrative now carry a higher spending assumption against an unchanged earnings target.

Outlook — what to watch next

Three catalysts sit on the near-term calendar. First, the company's fourth-quarter production report, which management expects to be sequentially stronger as shut-in wells return and three recently completed non-operated wells contribute from early November. Second, the conclusion of the chief executive officer search, which the company said is active with an announcement hoped for soon. Third, the next borrowing base redetermination cycle, after the October 2026 reaffirmation at $125 million.

The key internal tension to track is capital intensity against the reiterated $60 million to $70 million Adjusted EBITDA range. The company did not reconcile that guidance to net income, citing the unpredictability of unrealized derivative gains and losses, impairment and severance costs.

On the balance sheet, the level to watch is revolver borrowings, which fell $5 million sequentially to $80.0 million. Continued deleveraging alongside the higher capital program would signal the Mowry and PRB development is being funded from cash flow rather than incremental debt.

Frequently Asked Questions

Why did PEDEVCO report a net loss when revenue rose 411%?

The loss came from below the operating line. PEDEVCO recorded a $16.6 million net loss on derivative contracts, including $12.0 million of non-cash unrealized losses as crude prices rose between June 30 and September 30, 2026. Add $1.7 million of interest expense, and the $8.9 million of operating income was erased, producing a $9.2 million net loss despite $35.5 million of oil and gas sales.

What does PEDEVCO's raised 2026 capex guidance mean for investors?

The company lifted full-year 2026 net capital expenditure guidance to $37 million to $42 million from up to $20 million, citing Mowry Shale lease acquisitions and fourth-quarter development. It simultaneously reiterated Adjusted EBITDA guidance of $60 million to $70 million. Investors are therefore being asked to accept higher near-term spending against an unchanged earnings target, which places more weight on 2027 production growth.