PEDEVCO (PED) Stock Forecast & Price Target

PEDEVCO Corp has demonstrated strong financial performance, reporting a revenue increase of 23% year-over-year, along with a corresponding 23% rise in production to 156,000 barrels of oil equivalent (BOE). The company's strategic operational management, along with a robust forecast of approximately $23 million in EBITDA for FY24, positions it well for ongoing investments and expansion, particularly through its promising Harlequin and Purcell wells. Additionally, PEDEVCO has effectively managed costs, achieving a low Lease Operating Expense of $16.37 per BOE, which supports its overall profitability outlook despite anticipated pricing declines in the sector.

PEDEVCO Corp's realized price per barrel of oil equivalent (BOE) experienced a sequential decline of 10%, which, despite a year-over-year increase of 2%, fell short of previous forecasts by 8%, highlighting ongoing pricing challenges in the industry. While the company managed to keep its lease operating expenses (LOE) relatively low and achieved an adjusted EBITDA of $5.7 million, this positive outcome may not be sustainable given the projected 20% year-over-year decline in pricing for the upcoming quarter and the lack of new well additions. Furthermore, the anticipated production of 190,000 BOE in 4Q24 suggests that revenue may struggle to keep pace with the broader market conditions, placing pressure on the company's financial outlook and raising concerns regarding its ability to maintain growth amidst volatile pricing.