Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued ...

Core Viewpoint - The article emphasizes the importance of value investing and highlights Pedevco (PED) as a strong value stock based on various valuation metrics [1][6]. Valuation Metrics - Pedevco has a Zacks Rank of 1 (Strong Buy) and an A grade for Value, indicating it is a high-quality value stock [3]. - The stock's P/E ratio is 11.65, significantly lower than the industry's average of 16.81, suggesting it may be undervalued [3]. - Pedevco's P/B ratio stands at 0.74, compared to the industry's average of 1.95, further indicating potential undervaluation [4]. - The P/CF ratio for Pedevco is 5.76, which is attractive relative to the industry's average of 7.56, reinforcing the notion of being undervalued [5]. Earnings Outlook - The combination of Pedevco's strong valuation metrics and positive earnings outlook positions it as an impressive value stock in the current market [6].

Group 1: Earnings Performance - Pedevco Corp. reported quarterly earnings of $0.03 per share, matching the Zacks Consensus Estimate, but down from $0.04 per share a year ago [1] - The company posted revenues of $11.81 million for the quarter ended June 2024, exceeding the Zacks Consensus Estimate by 30.51%, compared to $10.91 million in the same quarter last year [2] - Over the last four quarters, Pedevco has not surpassed consensus EPS estimates, but has topped revenue estimates four times [1][2] Group 2: Stock Performance and Outlook - Pedevco shares have increased approximately 16.5% since the beginning of the year, outperforming the S&P 500's gain of 13.9% [3] - The company's earnings outlook is crucial for future stock performance, with current consensus EPS estimates at $0.02 for the coming quarter and $0.06 for the current fiscal year [4][7] - The estimate revisions trend for Pedevco is currently favorable, resulting in a Zacks Rank 1 (Strong Buy) for the stock, indicating expected outperformance in the near future [6] Group 3: Industry Context - The Oil and Gas - Mechanical and Equipment industry, to which Pedevco belongs, is currently ranked in the top 15% of over 250 Zacks industries, suggesting a positive outlook for stocks in this sector [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

The Zacks Rank is a proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. Pedevco Corp. is currently sporting a Zacks Rank of #1 (Strong Buy). To break things down more, Pedevco Corp. belongs to the Oil and Gas - Mechanical and and Equipment industry, a group that includes 9 individual companies and currently sits at #103 in the Zacks Industry Rank. On avera ...

Oil prices remain highly favorable, boosting exploration and production activities and driving robust demand for drilling and production equipment. This positive trend enhances the outlook for the Zacks Oil and GasMechanical and Equipment industry. Investors are encouraged by the industry players' inorganic expansion strategies and initiatives to reduce Scope 1 and 2 emissions. Several oil and gas equipment companies boast strong balance sheets with no debt, positioning them well to navigate business uncert ...

EX-99.1 2 ped_ex991.htm PRESS RELEASE EXHIBIT 99.1 PEDEVCO Announces Q1 2024 Financial Results and Operations Update HOUSTON, TX / ACCESSWIRE / May 15, 2024 / PEDEVCO Corp. (NYSE American: PED) ("PEDEVCO" or the "Company"), an energy company engaged in the acquisition and development of strategic, high growth energy projects in the U.S., today announced its financial results for the three months ended March 31, 2024 and provided an operations update. Key Financial and Operational Highlights Include: J. Doug ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended: March 31, 2024 (Exact name of registrant as specified in its charter) Texas 22-3755993 (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.) 575 N. Dairy Ashford, Suite 210, Houston, Texas 77079 (Address of principal executive offices) (Zip Code) (713 ...

[Executive Summary & Key Highlights](index=1&type=section&id=1_Executive_Summary_Key_Highlights) [Company Overview](index=1&type=section&id=1.1_Company_Overview) PEDEVCO Corp. acquires and develops strategic, high-growth U.S. energy projects, primarily in the Permian and D-J Basins - PEDEVCO Corp. is an energy company engaged in the acquisition and development of strategic, high growth energy projects in the U.S.[1](index=1&type=chunk)[24](index=24&type=chunk) - The Company's principal assets are its Permian Basin Asset located in eastern New Mexico, and its D-J Basin Asset located in Weld and Morgan Counties, Colorado[24](index=24&type=chunk) [2023 Key Operational & Financial Highlights](index=1&type=section&id=1.2_2023_Key_Operational_%26_Financial_Highlights) PEDEVCO achieved strong 2023 operational and financial results, with **43% production growth** and **8% Adjusted EBITDA increase**, despite lower commodity prices. The company reduced expenses, divested non-core assets, and ended the year with **zero debt**, positioning for future growth - Strong operational and financial results in 2023, including a **43% increase** in year-over-year production, with revenue and EBITDA growth over 2022 despite significantly lower commodity prices[3](index=3&type=chunk) - Maintained disciplined G&A expenses, reduced LOE expenses, and significantly trimmed P&A liabilities and operational complexities with the sale of non-core assets, exiting the year with a **strong cash position** and **zero debt**[3](index=3&type=chunk)[9](index=9&type=chunk) - Positioned for growth in both the Permian (drilled and completed three wells in joint venture) and the D-J Basins (received approval for up to 11 operated wells and participated in 13 non-operated wells)[3](index=3&type=chunk) 2023 Key Financial & Operational Highlights: | Metric | 2023 | 2022 | Change | | :-------------------------------- | :----- | :----- | :----- | | Average Daily Production (BOEPD) | 1,427 | ~998 | +43% | | Adjusted EBITDA | $17.5M | $16.1M | +8% | | Revenue | $31M | $30.0M | +2% | | Operating Expenses | $26.7M | $27.4M | -3% | | Net Income | $0.3M | $2.8M | -89% | | Net Income per diluted share | $0.00 | $0.03 | -100% | | Cash & Cash Equivalents (Dec 31) | $20.7M | $33.0M | -37% | | Debt | $0 | $0 | No Change | [Financial Performance Analysis (2023 vs. 2022)](index=1&type=section&id=2_Financial_Performance_Analysis) [Net Income](index=1&type=section&id=2.1_Net_Income) Net income decreased significantly in 2023 to **$0.3 million** from **$2.8 million** in 2022, primarily due to a **$4.3 million loss** on the sale of the EOR subsidiary, partially offset by increased revenue and decreased operating expenses Net Income Comparison: | Metric | 2023 | 2022 | Change | | :-------------------------- | :----- | :----- | :----- | | Net Income | $0.3M | $2.8M | -$2.5M | | Net Income per diluted share | $0.00 | $0.03 | -$0.03 | - The decrease in net income was primarily due to a **$4.3 million loss** on the sale of the EOR subsidiary[5](index=5&type=chunk)[9](index=9&type=chunk) - Offset by a **$0.8 million increase** in revenue and by a **decrease of $0.7 million** in total operating expenses[5](index=5&type=chunk) [Revenue, Production & Prices](index=2&type=section&id=2.2_Revenue%2C_Production_%26_Prices) Total revenue increased by **2% to $30.8 million** in 2023, driven by a **43% increase** in production volume (520,886 Boe), which generated a **$7.4 million** favorable volume variance. However, this was largely offset by a **28% decrease** in combined average realized sales price per Boe to **$59.10**, resulting in a **$6.6 million** unfavorable price variance Production and Revenue Overview: | Metric | 2023 | 2022 | Change | | :-------------------------------- | :----- | :----- | :----- | | Total Revenue | $30.8M | $30.0M | +2% | | Total Production (Boe) | 520,886 | ~364,256 | +43% | | Average Realized Sales Price (per Boe) | $59.10 | $82.34 | -28% | - Liquids production comprised **84.7%** of total production in 2023[11](index=11&type=chunk) - The increase in production volume is related to the positive performance from participation in 14 non-operated wells in the D-J Basin Asset[13](index=13&type=chunk) [Operating Expenses](index=1&type=section&id=2.3_Operating_Expenses) Total operating expenses decreased by **$0.7 million (3%)** to **$26.7 million** in 2023, primarily due to cost control measures and efficiency improvements in LOE, partially offset by increases in G&A and DD&A Total Operating Expenses: | Metric | 2023 | 2022 | Change | | :--------------------- | :----- | :----- | :----- | | Total Operating Expenses | $26.7M | $27.4M | -$0.7M | [Lease Operating Expenses (LOE)](index=2&type=section&id=2.3.1_Lease_Operating_Expenses) LOE decreased by **$0.6 million** to **$9.8 million** in 2023, mainly due to expense reduction measures and efficiency improvements on operated properties, despite increased direct operating expenses from non-operated wells and costs related to plugging 11 wells Lease Operating Expenses: | Metric | 2023 | 2022 | Change | | :-------------------- | :----- | :----- | :----- | | Lease Operating Costs | $9.8M | $10.4M | -$0.6M | - Decrease primarily due to implementation of expense reduction measures and operation and lift efficiency improvements on operated properties in Permian Basin and D-J Basin Assets[14](index=14&type=chunk) - Offset by a corresponding increase in direct operating expenses from participation in non-operated wells and a loss related to plugging 11 wells in the Permian Basin Asset[14](index=14&type=chunk) [Depreciation, Depletion, Amortization and Accretion (DD&A)](index=2&type=section&id=2.3.2_Depreciation%2C_Depletion%2C_Amortization_Accretion) DD&A decreased by **$0.3 million** to **$10.9 million** in 2023, primarily due to a **$0.5 million decrease** in accretion expense from the sale of the EOR Operating Company, partially offset by a **$0.2 million increase** in depletion expense from higher production DD&A Expenses: | Metric | 2023 | 2022 | Change | | :-------------------------------- | :----- | :----- | :----- | | DD&A | $10.9M | $11.2M | -$0.3M | - The decrease was primarily the result of a **$0.5 million decrease** in accretion expense from the sale of EOR Operating Company and related assets[15](index=15&type=chunk) - Offset by a **$0.2 million increase** in depletion expense from increased production[15](index=15&type=chunk) [General and Administrative Expenses (G&A)](index=2&type=section&id=2.3.3_General_Administrative_Expenses) G&A expenses (excluding share-based compensation) increased by **$0.2 million** in 2023, attributed to a new employee, increased accrued bonuses, and higher accounting and professional services. Share-based compensation nominally decreased due to forfeitures, but new restricted shares were issued to board members G&A Expenses (excluding share-based compensation): | Metric | 2023 | 2022 | Change | | :-------------------------------- | :----- | :----- | :----- | | Selling, General and Administrative | $6.0M | $5.9M | +$0.2M | - Increase primarily due to the addition of a new employee, an increase in accrued bonuses, and general increases in accounting and professional services[16](index=16&type=chunk) - Share-based compensation decreased nominally due to forfeiture of certain employee stock-based options, offset by the issuance of restricted shares of common stock to board members[17](index=17&type=chunk) [Loss on Sale of Oil and Gas Properties](index=2&type=section&id=2.4_Loss_on_Sale_of_Oil_%26_Gas_Properties) The Company recognized a **$4.3 million loss** in 2023 from the sale of its wholly-owned subsidiary EOR Operating Company and related non-core vertical assets. This divestiture is expected to reduce plugging and abandonment liabilities by over **$3.2 million** and significantly lower future monthly LOE expenses in the Permian Basin Loss on Sale of Oil and Gas Properties: | Metric | 2023 | 2022 | Change | | :-------------------------------- | :----- | :----- | :----- | | Loss on sale of oil and gas properties | ($4.3M) | $0 | ($4.3M) | - The Company sold its wholly owned subsidiary EOR Operating Company and related non-core vertical assets in November 2023[18](index=18&type=chunk) - This divestiture is estimated to reduce plugging and abandonment liabilities by over **$3.2 million** and significantly reduce monthly LOE expenses on the Permian Basin Asset going forward[18](index=18&type=chunk) [Other Income/Expense](index=2&type=section&id=2.5_Other_Income_Expense) Total other income increased to **$0.46 million** in 2023 from **$0.21 million** in 2022, primarily driven by a significant increase in interest income to **$422,000** due to higher interest rates on cash accounts Other Income: | Metric | 2023 | 2022 | Change | | :------------- | :----- | :----- | :----- | | Interest Income | $422K | $117K | +$305K | | Other Income | $40K | $97K | -$57K | | Total Other Income | $462K | $214K | +$248K | - Interest income increased significantly due to higher interest rates on interest-bearing cash accounts[20](index=20&type=chunk) [Financial Position & Liquidity](index=1&type=section&id=3_Financial_Position_%26_Liquidity) [Working Capital and Cash Position](index=1&type=section&id=3.1_Working_Capital_Cash_Position) The working capital surplus decreased by **$9.4 million** to **$5.7 million** at December 31, 2023, from **$15.1 million** in 2022. This reduction was mainly due to a decrease in the cash balance, which fell to **$20.7 million** (including restricted cash) from **$33.0 million**, primarily driven by capital expenditures for drilling and completion activities Working Capital and Cash Position: | Metric | Dec 31, 2023 | Dec 31, 2022 | Change | | :-------------------------- | :----------- | :----------- | :----------- | | Total Current Assets | $24.6M | $32.1M | -$7.5M | | Total Current Liabilities | $18.9M | $17.0M | +$1.9M | | Working Capital Surplus | $5.7M | $15.1M | -$9.4M | | Cash & Cash Equivalents (incl. restricted) | $20.7M | $33.0M | -$12.3M | - Decrease in cash balance largely due to capital expenditures related to drilling and completion of wells in Permian Basin and D-J Basin Assets[8](index=8&type=chunk)[20](index=20&type=chunk) - Total restricted cash decreased due to the transfer of collateralized deposits related to plugging and abandonment bonds with the State of New Mexico to the purchaser in connection with the sale of EOR Operating[10](index=10&type=chunk) [Capital Expenditures & Future Outlook](index=3&type=section&id=3.2_Capital_Expenditures_%26_Future_Outlook) PEDEVCO estimates 2024 net capital expenditures to range between **$20 million and $30 million**, primarily for drilling and completion costs in the Permian and D-J Basins, along with other capital expenses. The company expects to meet future liquidity needs through projected cash flow, existing cash, potential equity infusions/loans from the CEO, and credit facilities, while also considering asset sales or farm-out arrangements for potential acquisitions Estimated 2024 Capital Expenditures: | Category | Estimated Range | | :-------------------------------- | :-------------- | | Total Net Capital Expenditures | $20M - $30M | | Drilling and Completion Costs | $17M - $27M | | Other Capital Expenses | ~$3M | - The estimate does not include anything for acquisitions or other projects that may arise but are not currently anticipated[21](index=21&type=chunk) - Future liquidity is expected from projected cash flow from operations, existing cash on hand, potential equity infusions or loans from the CEO, and funding through credit or loan facilities[22](index=22&type=chunk) - The Company may seek additional funding through asset sales, farm-out arrangements, and credit facilities to fund potential acquisitions during the remainder of 2024[22](index=22&type=chunk) [Consolidated Financial Statements](index=5&type=section&id=4_Consolidated_Financial_Statements) [Consolidated Balance Sheets](index=5&type=section&id=4.1_Consolidated_Balance_Sheets) As of December 31, 2023, total assets increased to **$120.1 million** from **$116.1 million** in 2022, driven by a significant increase in oil and gas properties not subject to amortization. Total liabilities also increased to **$21.3 million** from **$19.7 million**, while total shareholders' equity grew to **$98.8 million** Consolidated Balance Sheet Highlights (amounts in thousands): | Metric | Dec 31, 2023 | Dec 31, 2022 | Change | | :-------------------------------- | :----------- | :----------- | :----------- | | Total Assets | $120,058 | $116,110 | +$3,948 | | Total Liabilities | $21,292 | $19,651 | +$1,641 | | Total Shareholders' Equity | $98,766 | $96,459 | +$2,307 | | Cash and cash equivalents | $18,515 | $29,430 | -$10,915 | | Oil and gas properties, not subject to amortization, net | $12,407 | $775 | +$11,632 | | Accounts payable | $6,580 | $1,556 | +$5,024 | | Accrued expenses | $8,712 | $13,835 | -$5,123 | [Consolidated Statements of Operations](index=6&type=section&id=4.2_Consolidated_Statements_of_Operations) For the year ended December 31, 2023, the company reported a net income of **$0.26 million**, a significant decrease from **$2.84 million** in 2022. This was primarily due to a **$4.27 million loss** on the sale of oil and gas properties, which resulted in an operating loss of **$0.20 million** compared to an operating income of **$2.63 million** in the prior year Consolidated Statements of Operations Highlights (amounts in thousands): | Metric | 2023 | 2022 | Change | | :-------------------------------- | :----- | :----- | :----- | | Oil and gas sales | $30,784 | $30,034 | +$750 | | Total operating expenses | $26,714 | $27,404 | -$690 | | Loss on sale of oil and gas properties | ($4,268) | $0 | ($4,268) | | Operating income (loss) | ($198) | $2,630 | ($2,828) | | Net Income | $264 | $2,844 | ($2,580) | | Basic Loss per common share | $0.00 | $0.03 | ($0.03) | [Consolidated Statements of Cash Flows](index=6&type=section&id=4.3_Consolidated_Statements_of_Cash_Flows) Net cash provided by operating activities increased to **$23.48 million** in 2023 from **$15.98 million** in 2022, driven by adjustments for non-cash items like the loss on sale of properties and changes in working capital. However, net cash used in investing activities significantly increased to **$35.74 million**, primarily due to higher drilling and completion costs, leading to a net decrease of **$12.26 million** in cash and restricted cash for the year Consolidated Statements of Cash Flows Highlights (amounts in thousands): | Metric | 2023 | 2022 | Change | | :-------------------------------- | :----- | :----- | :----- | | Net cash provided by operating activities | $23,481 | $15,981 | +$7,500 | | Net cash used in investing activities | ($35,743) | ($12,266) | ($23,477) | | Net cash provided by financing activities | $0 | $35 | ($35) | | Net (decrease) increase in cash and restricted cash | ($12,262) | $3,750 | ($16,012) | | Cash paid for drilling and completion costs | ($34,951) | ($12,252) | ($22,699) | [Non-GAAP Financial Measures](index=3&type=section&id=5_Non-GAAP_Financial_Measures) [Adjusted EBITDA Reconciliation](index=7&type=section&id=5.1_Adjusted_EBITDA_Reconciliation) Adjusted EBITDA increased by **8%** to **$17.45 million** in 2023 from **$16.09 million** in 2022. This non-GAAP measure adjusts net income by adding back depreciation, depletion, amortization, accretion, share-based compensation, and the loss on sale of oil and gas properties Adjusted EBITDA Reconciliation (in thousands): | Metric | 2023 | 2022 | Change | | :-------------------------------- | :----- | :----- | :----- | | Net income (loss) | $264 | $2,844 | ($2,580) | | Depreciation, depletion, amortization and accretion | $10,875 | $11,153 | ($278) | | EBITDA | $11,139 | $13,997 | ($2,858) | | Share-based compensation | $2,043 | $2,097 | ($54) | | Loss on sale of oil and gas properties | $4,268 | $0 | +$4,268 | | Adjusted EBITDA | $17,450 | $16,094 | +$1,356 | [Use of Non-GAAP Financial Information](index=3&type=section&id=5.2_Use_of_Non-GAAP_Financial_Information) The company uses non-GAAP measures like EBITDA and Adjusted EBITDA to provide supplemental information on performance, as they exclude various non-cash items. These measures are not GAAP-recognized and should not be considered alternatives to GAAP performance measures, but are used by management and investors to evaluate companies in the industry - EBITDA and Adjusted EBITDA are presented as supplemental measures of the Company's performance and are not recognized in accordance with GAAP[25](index=25&type=chunk) - Adjusted EBITDA is defined as EBITDA before share-based compensation expense, gain on sale of oil and gas properties, gain on forgiveness of PPP loan, and accounts payable settlements[25](index=25&type=chunk) - These measures are used because they provide additional useful information to investors due to various noncash items and are frequently used by analysts, investors, and other interested parties to evaluate companies in the industry[25](index=25&type=chunk) - Limitations include not reflecting cash expenditures, future requirements for capital expenditures, working capital needs, or interest/principal payments on debt[25](index=25&type=chunk) [Additional Information](index=3&type=section&id=6_Additional_Information) [About PEDEVCO Corp.](index=3&type=section&id=6.1_About_PEDEVCO_Corp) PEDEVCO Corp. is a publicly-traded energy company (NYSE American: PED) headquartered in Houston, Texas, focused on acquiring and developing strategic, high-growth energy projects in the U.S., with principal assets in the Permian and D-J Basins - PEDEVCO Corp. (NYSE American: PED) is a publicly-traded energy company headquartered in Houston, Texas[24](index=24&type=chunk) - Engaged in the acquisition and development of strategic, high growth energy projects in the United States[24](index=24&type=chunk) - Principal assets are its Permian Basin Asset in eastern New Mexico, and its D-J Basin Asset in Weld and Morgan Counties, Colorado[24](index=24&type=chunk) [Cautionary Statement Regarding Forward-Looking Statements](index=4&type=section&id=6.2_Cautionary_Statement_Regarding_Forward-Looking_Statements) This section warns that the press release contains forward-looking statements subject to known and unknown risks and uncertainties, which may cause actual results to differ materially from expectations. Investors are cautioned not to place undue reliance on these statements, and the company undertakes no obligation to update them, except as required by law - This press release may contain forward-looking statements, including information about management's view of PEDEVCO's future expectations, plans and prospects[27](index=27&type=chunk) - These statements involve known and unknown risks, uncertainties and other factors, which may cause the results of PEDEVCO and its subsidiaries to be materially different than those expressed or implied[27](index=27&type=chunk) - The Company cautions that the foregoing list of important factors is not complete and undertakes no obligation to update publicly any of these forward-looking statements to reflect actual results, new information or future events, except to the extent required by applicable laws[27](index=27&type=chunk)[28](index=28&type=chunk) [Contact Information](index=7&type=section&id=6.3_Contact_Information) Provides contact details for PEDEVCO Corp. for inquiries - Contact for PEDEVCO Corp. is (713) 221-1768 or PR@pedevco.com[37](index=37&type=chunk)

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2023 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ________________ to ____________ Commission file number: 001-35922 PEDEVCO Corp. (Exact Name of Registrant as Specified in Its Charter) (State or other jurisdiction o ...

[Cautionary Note Regarding Forward-Looking Statements](index=2&type=section&id=Cautionary%20Note%20Regarding%20Forward-Looking%20Statements) This section provides important cautionary statements regarding forward-looking information, highlighting inherent risks and uncertainties [PART I – FINANCIAL INFORMATION](index=3&type=section&id=PART%20I%20%E2%80%93%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited consolidated financial statements of PEDEVCO Corp. for the periods ended September 30, 2023, and December 31, 2022, including balance sheets, statements of operations, cash flows, and shareholders' equity, along with detailed notes explaining the basis of presentation, business description, significant accounting policies, and specific financial accounts [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets%20as%20of%20September%2030%2C%202023%20(Unaudited)%20and%20December%2031%2C%202022) This section provides a snapshot of the Company's financial position at specific dates, detailing assets, liabilities, and equity Consolidated Balance Sheet Highlights (amounts in thousands) | Metric | Sep 30, 2023 (Unaudited) | Dec 31, 2022 | | :-------------------------------- | :----------------------- | :----------- | | Cash | $13,200 | $29,430 | | Total current assets | $19,157 | $32,109 | | Total assets | $110,883 | $116,110 | | Total current liabilities | $5,347 | $16,962 | | Total liabilities | $8,593 | $19,651 | | Total shareholders' equity | $102,290 | $96,459 | - Total assets decreased from **$116.1 million** at **December 31, 2022**, to **$110.9 million** at **September 30, 2023**, primarily due to a decrease in cash from **$29.4 million** to **$13.2 million**[16](index=16&type=chunk) - Total current liabilities significantly decreased from **$17.0 million** at **December 31, 2022**, to **$5.3 million** at **September 30, 2023**, mainly driven by a reduction in accrued expenses[16](index=16&type=chunk) [Consolidated Statements of Operations](index=4&type=section&id=Consolidated%20Statements%20of%20Operations%20for%20the%20Three%20and%20Nine%20Months%20Ended%20September%2030%2C%202023%20and%202022) This section details the Company's revenues and expenses over specific periods, leading to net income or loss Consolidated Statements of Operations Highlights (amounts in thousands, except per share data) | Metric | Three Months Ended Sep 30, 2023 | Three Months Ended Sep 30, 2022 | Nine Months Ended Sep 30, 2023 | Nine Months Ended Sep 30, 2022 | | :-------------------------------- | :------------------------------ | :------------------------------ | :----------------------------- | :----------------------------- | | Oil and gas sales | $7,330 | $7,472 | $24,042 | $24,109 | | Total operating expenses | $6,474 | $6,451 | $20,069 | $18,611 | | Operating income | $856 | $1,021 | $3,973 | $5,498 | | Net income | $949 | $1,079 | $4,285 | $5,628 | | Basic income per common share | $0.01 | $0.01 | $0.05 | $0.07 | | Diluted income per common share | $0.01 | $0.01 | $0.05 | $0.07 | - Net income decreased by **$0.13 million** for the three months ended **September 30, 2023**, compared to the same period in **2022**, primarily due to a **$0.1 million** decrease in net revenues[87](index=87&type=chunk) - Net income for the nine months ended **September 30, 2023**, decreased by **$1.3 million** compared to the same period in **2022**, mainly due to a nominal decrease in revenue and a **$1.5 million** increase in total operating expenses[96](index=96&type=chunk) [Consolidated Statements of Cash Flows](index=5&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows%20for%20the%20Nine%20Months%20Ended%20September%2030%2C%202023%20and%202022) This section outlines the cash inflows and outflows from operating, investing, and financing activities over specific periods Consolidated Cash Flow Highlights (amounts in thousands) | Metric | Nine Months Ended Sep 30, 2023 | Nine Months Ended Sep 30, 2022 | | :-------------------------------- | :----------------------------- | :----------------------------- | | Net cash provided by operating activities | $11,425 | $12,994 | | Net cash used in investing activities | $(27,655) | $(11,413) | | Net cash provided by financing activities | $- | $50 | | Net (decrease) increase in cash and restricted cash | $(16,230) | $1,631 | | Cash and restricted cash at end of period | $16,747 | $30,858 | - Net cash provided by operating activities decreased by **$1.6 million**, primarily due to a **$1.3 million** decrease in net income, partially offset by a **$2.0 million** increase in depreciation, depletion, and amortization[111](index=111&type=chunk) - Net cash used in investing activities increased by **$16.2 million**, driven by higher capital spending on drilling and completion activities[112](index=112&type=chunk) [Consolidated Statements of Shareholders' Equity](index=6&type=section&id=Consolidated%20Statements%20of%20Shareholders'%20Equity%20for%20the%20Three%20and%20Nine%20Months%20Ended%20September%2030%2C%202023%20and%202022%20(Unaudited)) This section details changes in the Company's equity accounts, including common stock, additional paid-in capital, and accumulated deficit Shareholders' Equity Changes (amounts in thousands, except share amounts) | Metric | Dec 31, 2022 | Sep 30, 2023 | | :-------------------------------- | :----------- | :----------- | | Common Stock Shares | 85,790,267 | 87,250,267 | | Common Stock Amount | $86 | $87 | | Additional Paid-in Capital | $223,114 | $224,659 | | Accumulated Deficit | $(126,741) | $(122,456) | | Total Shareholders' Equity | $96,459 | $102,290 | - Total shareholders' equity increased from **$96.5 million** at **December 31, 2022**, to **$102.3 million** at **September 30, 2023**, primarily due to net income and share-based compensation[24](index=24&type=chunk) - The Company issued **1,460,000 restricted stock awards** to employees and board members during the nine months ended **September 30, 2023**[54](index=54&type=chunk)[56](index=56&type=chunk)[57](index=57&type=chunk) [Notes to Unaudited Consolidated Financial Statements](index=7&type=section&id=Notes%20to%20Unaudited%20Consolidated%20Financial%20Statements) This section provides detailed explanations and additional information supporting the unaudited consolidated financial statements [NOTE 1 – BASIS OF PRESENTATION](index=7&type=section&id=NOTE%201%20%E2%80%93%20BASIS%20OF%20PRESENTATION) This note describes the accounting principles and rules used in preparing the interim financial statements - The interim unaudited consolidated financial statements are prepared in accordance with GAAP and SEC rules, reflecting normal recurring adjustments[25](index=25&type=chunk) - Future financial condition and liquidity depend on drilling program success, oil and natural gas discoveries, production speed, exploration costs, and prevailing commodity prices[27](index=27&type=chunk) [NOTE 2 – DESCRIPTION OF BUSINESS](index=7&type=section&id=NOTE%202%20%E2%80%93%20DESCRIPTION%20OF%20BUSINESS) This note outlines the Company's primary business activities and strategic focus within the oil and gas industry - PEDEVCO is an oil and gas company focused on developing, acquiring, and producing oil and natural gas assets, particularly legacy proven properties in the San Andres formation of the Permian Basin (West Texas and eastern New Mexico) and the Denver-Julesburg Basin (Colorado and Wyoming)[28](index=28&type=chunk) - The Company aims to optimize existing assets, opportunistically acquire additional acreage, and develop assets using modern drilling and completion techniques[29](index=29&type=chunk) [NOTE 3 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES](index=7&type=section&id=NOTE%203%20%E2%80%93%20SUMMARY%20OF%20SIGNIFICANT%20ACCOUNTING%20POLICIES) This note summarizes the key accounting policies applied in the preparation of the financial statements - No changes to significant accounting policies since **December 31, 2022**[30](index=30&type=chunk) - The Company adopted ASU No. 20