8-K: PEDEVCO Reports Robust Year-End 2025 Proved Reserves

PEDEVCO Corp. announced its year-end 2025 proved reserves evaluation, totaling 32.1 MMBoe with a PV-10 of $357.7 million, reflecting its post-merger asset base.

Summary

• Total proved reserves were 32.12 million barrels of oil equivalent (MMBoe) as of December 31, 2025.
• The total proved reserves consist of 22.99 million barrels (MMBbl) of oil, 28.78 billion cubic feet (Bcf) of natural gas, and 4.34 MMBbl of natural gas liquids (NGLs).
• Approximately 16.38 MMBoe were classified as proved developed reserves, while 15.74 MMBoe were classified as proved undeveloped reserves.
• The present value of future net cash flows discounted at 10% (PV-10) was approximately $357.7 million.
• Approximately $257.4 million, or 72%, of the PV-10 is attributable to proved developed reserves.
• Estimated future net cash flows before federal income taxes attributable to total proved reserves were approximately $674.8 million.
• SEC pricing as of December 31, 2025, was $65.34 per barrel of oil and $3.387 per MMBtu of natural gas.
• Net realized prices over the life of the proved properties were $62.92 per barrel of oil, $3.04 per Mcf of natural gas, and $25.77 per barrel of NGLs.
• Proved undeveloped reserves reflect a multi-year development plan, including 71 horizontal drilling locations (49 in Colorado, 17 in Wyoming, and 5 in New Mexico).
• There are also 11 proved developed non-producing locations (10 in Colorado and 1 in Wyoming) representing completed wells with capital costs fully paid.
• These year-end 2025 proved reserves represent the full scope of the company's current asset base following its business combination with certain portfolio companies controlled by Juniper Capital Advisors, L.P.

Sentiment

Score: 8

Explanation: StockSavvy.ai views this as a strong positive update, reflecting a significantly enhanced asset base and clear development runway post-merger, which should instill investor confidence in the company's future cash flow generation.

Positives

• A substantial PV-10 value of $357.7 million underscores the value of the company's asset base.
• A strong proved developed foundation accounts for 72% of the PV-10 ($257.4 million), indicating a significant portion of reserves are readily accessible.
• The asset base has been bolstered by a recent transformative merger, providing a new, authoritative baseline for reserves.
• A clearly defined future drilling inventory includes 71 horizontal drilling locations, providing a multi-year development runway.
• Management believes the company is well-positioned to generate consistent cash flow and long-term value for shareholders.

Risks

• Volatility of oil and natural gas prices.
• Uncertainty in discovering, estimating, developing, and replacing oil and natural gas reserves.
• Risks that operations may not be profitable or generate sufficient cash flow to meet obligations.
• Risks related to the status and availability of oil and natural gas gathering, transportation, and storage facilities.
• Changes in the legal and regulatory environment governing the oil and gas industry, including new or amended environmental legislation and regulatory initiatives.
• Crude oil production quotas or other actions imposed by the Organization of Petroleum Exporting Countries (OPEC) and other producing countries.
• Impact of technological advancements on the industry.
• Changing economic, regulatory, and political environments in the markets where the company operates, including the military conflict between Russia and Ukraine.
• Actions of competitors or regulators.
• Potential disruption or interruption of operations due to war, accidents, political events, severe weather, cyber threats, terrorist acts, or other natural or human causes beyond the company's control.
• Need for additional capital to complete future acquisitions, conduct operations, and fund the business, and the availability and cost of such funding.
• Limited control over activities on properties not operated by the company and the speculative nature of oil and gas operations in general.
• Risks associated with the uncertainty of drilling, completion, and enhanced recovery operations.
• Illiquidity and volatility of the company's common stock.
• Dependence upon present management.
• Significant beneficial ownership by Juniper Capital Advisors, L.P. and its affiliates, and Dr. Simon G. Kukes.
• Ability to maintain the listing of common stock on the NYSE American.
• Impacts from pandemics, governmental responses, economic downturns, and possible recessions.
• Inflationary risks and recent increased interest rates, and the risks of recessions and economic downturns caused thereby.
• Risks related to military conflicts in oil-producing countries.
• Limitations in the availability of, and costs of, supplies, materials, contractors, and services that may delay drilling or completion of wells or make them more expensive.
• Uncertainty regarding the amount and timing of future development costs.
• Availability and demand for alternative energy sources.
• Regulatory changes, including those related to carbon dioxide and greenhouse gas emissions.
• Risks related to the integration of assets, operations, and personnel acquired in connection with the recent merger with Juniper.
• Ability to service the debt assumed in the merger.
• Dilution caused by the conversion of convertible preferred shares issued in the merger.
• Certain board appointment rights provided in the merger.
• Potential lawsuits regarding the merger.
• Potential adverse reactions or changes to business relationships resulting from the completion of the merger.
• Uncertainty as to the long-term value of the common stock following the closing of the merger.

Future Outlook

Management expects the fortified asset base, substantial proved developed foundation, and clearly defined future drilling inventory to position PEDEVCO to generate consistent cash flow and long-term value for shareholders.

Management Comments

• "This independent reserve evaluation underscores the scale and multi-year runway of our newly fortified asset base."
• "With over $357 million in PV-10 value, a substantial proved developed foundation, and clearly defined future drilling inventory that has been bolstered by our recent merger, we believe PEDEVCO is well positioned to generate consistent cash flow and long-term value for our shareholders."

Industry Context

StockSavvy.ai notes that this reserve report is crucial for PEDEVCO, as it provides the first comprehensive look at the company's asset base following its transformative merger with Juniper Capital Advisors, L.P. The significant increase in proved reserves and PV-10 value positions PEDEVCO more competitively within the small-to-mid cap independent E&P sector, particularly in the Rockies and Permian Basins. The focus on a multi-year development plan with identified horizontal drilling locations aligns with broader industry trends of optimizing existing acreage through advanced drilling techniques.

Comparison to Industry Standards

• The filing does not provide specific comparable companies, projects, or results to benchmark against industry standards.
• However, the reported PV-10 of $357.7 million for 32.12 MMBoe, with 72% attributed to proved developed reserves, indicates a solid asset base for a company of PEDEVCO's size post-merger.
• The identified 71 horizontal drilling locations for proved undeveloped reserves suggest a robust future development pipeline, which is a positive indicator in the E&P sector.

Stakeholder Impact

• Shareholders: Potential for long-term value creation and consistent cash flow from a fortified asset base. Dilution risk from convertible preferred shares issued in the merger is noted as a forward-looking risk.
• Employees: Implied stability and potential growth opportunities due to expanded asset base and development plans.
• Creditors: Enhanced asset base and projected cash flows could improve creditworthiness, but the ability to service debt assumed in the merger is noted as a forward-looking risk.

Next Steps

• Execution of the multi-year development plan, including drilling 71 horizontal locations.
• Future reporting of the Standardized Measure of discounted future net cash flows in the Annual Report on Form 10-K for the fiscal year ended December 31, 2025.

Key Dates

Recommendation

The filing presents a robust and significantly expanded proved reserve base with a substantial PV-10 value following a transformative merger. The high proportion of proved developed reserves and a clear multi-year development plan with identified drilling locations indicate strong operational fundamentals and future growth potential. This update provides a solid, authoritative baseline for the company's valuation and future cash flow generation, making it an attractive investment for long-term growth in the E&P sector despite inherent industry risks.

Keywords

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