PEDEVCO (PED) Stock Forecast & Price Target

PEDEVCO Corp demonstrates a positive financial outlook driven by lower non-cash depletion expenses, positively impacting prior-period net income and enhancing the accuracy of this year's financial reporting. The leadership under CEO Doug Schick, who was appointed in January 2025, has led to a consistent streak of accepted earnings reports, indicating improved operational performance and financial stability. Although the company has experienced elevated lease operating expenses due to increased production volumes, the overall revenue growth reinforces confidence in its financial trajectory within the oil and gas sector.

PEDEVCO Corp reported production figures of 1,707 BPD, slightly below the forecast of 1,716 BPD, although revenue of $8.7 million exceeded expectations, showcasing an 8% year-over-year increase. A significant issue arises from the company's method of calculating reserves, as it did not include prior year production numbers, which led to an overstatement of depletion expenses and an understatement of net income. Furthermore, despite a projected EBITDA of approximately $20 million and only a $10 million cash balance, the company may need to utilize its available revolver for financing future buildouts, raising concerns about its financial stability moving forward.