Pedevco Corp. (AMEX:PED) reported weaker-than-expected third-quarter financial results on Monday, yet its shares still advanced as investors focused on the company’s recent operational activity and upcoming integration of newly acquired assets.
The stock climbed 2.77% in pre-market trading, even as the energy producer posted breakeven earnings per share—falling short of the $0.01 profit analysts anticipated. Revenue totaled $7.0 million, missing the consensus estimate of $7.62 million and marking a 23% decline from the $9.1 million reported a year earlier. Average production slipped to 1,471 BOEPD, down 13% from 1,698 BOEPD in the third quarter of 2024.
Despite the softer results, Pedevco highlighted active development efforts in the D-J Basin, saying it has participated in several new wells, including eight long-lateral, non-operated wells that began producing during the fourth quarter.
The company’s cost profile moved higher during the period, with operating expenses increasing 12% compared with last year. That contributed to an operating loss of $834,000 for the quarter. Adjusted EBITDA came in at $4.3 million, down from $5.7 million in the same period of 2024.
Pedevco also reminded investors that its quarterly numbers do not yet include the impact of its recently completed merger with several portfolio companies backed by Juniper Capital Advisors, L.P.—a deal the company described as “transformative” in a November 3 update.