PEDEVCO (PED) - 2025 Q1 - Quarterly Results

Key Financial and Operational Highlights PEDEVCO's Q1 2025 saw production and revenue growth, but net income and Adjusted EBITDA declined due to higher operating expenses Q1 2025 vs Q1 2024 Key Metrics | Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | Average Production (BOEPD) | 1,707 | 1,478 | +15% | | Revenue | $8.74 million | $8.12 million | +8% | | Operating Income | $0.15 million | $0.62 million | -76% | | Net Income | $0.1 million | $0.8 million | -87.5% | | Adjusted EBITDA | $4.3 million | $4.7 million | -10% | - The company maintains a strong balance sheet with over $10 million in cash, zero debt, and an untouched $250 million RBL with Citibank[3] - Four new horizontal San Andres wells were drilled and completed in the Permian Basin, with production starting in Q2 2025 and exceeding initial expectations[7] - 17 low-producing legacy wells in the D-J Basin were divested to reduce operating expenses and plugging and abandonment (P&A) liabilities, while retaining acreage for future development[7][18] Financial Performance Analysis Q1 2025 revenue grew 8% from higher production, but rising operating expenses caused net income to significantly decline Operations Update PEDEVCO completed four new Permian wells with strong initial production and divested 17 D-J wells to reduce liabilities - In Q1 and early Q2 2025, the company drilled and completed four new horizontal San Andres wells in the Permian Basin, with production commencing mid-Q2 2025[17] - Effective January 1, 2025, the company sold 17 low-producing operated wells in the D-J Basin to reduce operating expenses, G&A, and plugging liabilities[18] - The sale of legacy wells is estimated to save approximately $500,000 in aggregate plugging and abandonment liabilities, and the company retained ownership of all existing leaseholds for future development[18] Consolidated Financial Statements Unaudited consolidated financial statements for Q1 2025 are presented, including Balance Sheets, Statements of Operations, and Cash Flows Non-GAAP Financial Measures Non-GAAP measures like EBITDA and Adjusted EBITDA are presented, with Q1 2025 Adjusted EBITDA at $4.3 million, down from Q1 2024 - The company uses EBITDA and Adjusted EBITDA as supplemental performance measures, with Adjusted EBITDA defined before share-based compensation, impairment, and gain on asset sales[21] Reconciliation of Net Income to Adjusted EBITDA (in thousands) | | Three Months Ended March 31, | | | :--- | :--- | :--- | | | 2025 | 2024 | | Net income | $140 | $773 | | Income tax expense | $76 | $0 | | Depreciation, depletion, amortization and accretion | $3,346 | $3,485 | | EBITDA | $3,562 | $4,258 | | Share-based compensation | $475 | $475 | | Impairment of oil and gas properties | $232 | $0 | | Gain on sale of fixed asset | $0 | $(12) | | Adjusted EBITDA | $4,269 | $4,721 |