PEDEVCO Revenue Climbs 411% as Derivative Loss Drives Q3 Deficit

PEDEVCO’s revenue rose 411% year over year in the third quarter, but a $16.571 million loss on derivative contracts outweighed higher operating income and left the oil and gas company with an unaudited net loss of $9.242 million for the quarter ended Sept. 30.

The year-earlier quarter generated $6.961 million in revenue. The company posted a loss of $0.70 per share, versus a $0.07 loss per share and a $325,000 net loss a year earlier.

Of the derivative loss, $4.6 million came from realized settlements and $12 million from noncash valuation changes. PEDEVCO tied most of the unrealized charge to commodity prices rising from June 30 through Sept. 30.

Average production reached 5,850 barrels of oil equivalent per day. That was 298% higher than a year earlier but 14% below the second quarter of 2026. PEDEVCO attributed part of the annual increase to assets from its October 2025 merger with portfolio companies controlled by Juniper Capital Advisors, L.P. Production also fell sequentially amid temporary shut-ins and rod conversions, alongside the sale of acreage in the non-core Northern Powder River Basin. PEDEVCO said the affected wells had returned to production.

Adjusted EBITDA, a non-GAAP measure, rose 239% to $14.680 million from $4.325 million a year earlier. The company’s revised calculation excludes $2.1 million in severance costs. PEDEVCO reiterated its 2026 adjusted EBITDA guidance of $60 million to $70 million using that definition.

“We expect sequentially stronger production results in the fourth quarter,” said Reagan (R.T.) Dukes, PEDEVCO’s interim president, interim chief executive officer and chief operating officer.