On November 14, 2024, PEDEVCO Corp (PED, Financial) released its 8-K filing detailing the financial results for the third quarter of 2024. The company, an oil and gas entity focused on acquiring and developing strategic energy projects, reported significant growth in both revenue and net income, surpassing analyst estimates.
Company Overview
PEDEVCO Corp is engaged in the acquisition and development of oil and natural gas assets, particularly in areas where modern drilling and completion techniques have yet to be applied. The company focuses on legacy proved properties with long production histories, well-defined geology, and existing infrastructure. Its current properties are located in the San Andres formation of the Permian Basin in West Texas and eastern New Mexico, and in the Denver-Julesberg Basin in Colorado and Wyoming.
Performance Highlights
PEDEVCO Corp reported a Q3 2024 revenue of $9.1 million, exceeding the analyst estimate of $8.86 million. This marks a $1.7 million increase from Q3 2023. The company's net income rose to $2.9 million, or $0.03 per share, surpassing the estimated earnings per share of $0.02. This growth was driven by increased production and strategic participation in new wells.
Financial Achievements and Industry Impact
Operating income surged by 231% to $2.8 million compared to the previous year, highlighting the company's operational efficiency. The increase in revenue and net income is crucial for PEDEVCO Corp as it continues to leverage its strategic assets in the oil and gas industry, particularly in the high-potential Permian and D-J Basins.
Key Financial Metrics
PEDEVCO Corp's production averaged 1,698 barrels of oil equivalent per day (BOEPD) in Q3 2024, up from 1,376 BOEPD in Q3 2023. The company's adjusted EBITDA increased by 30% to $5.7 million, reflecting improved cash flow and profitability. The balance sheet remains strong with $7.2 million in cash and cash equivalents and zero debt, providing a solid foundation for future growth.
Operational Developments
The company reported strong results from thirteen non-operated wells in the D-J Basin and three operated wells in the Permian Basin. It also participated in six additional non-operated wells in the D-J Basin, with significant production impact anticipated in Q4 2024. These strategic developments are expected to enhance PEDEVCO Corp's production capacity and revenue streams.
J. Douglas Schick, President of the Company, stated, “Our Q3 2024 results continue to demonstrate consistently strong production, cashflow, earnings per share, and adjusted EBITDA growth, surpassing each metric when compared to Q3 2023, while continuing to maintain zero debt and flat G&A expenses.”
Conclusion
PEDEVCO Corp's Q3 2024 performance underscores its strategic positioning in the oil and gas sector, with robust financial results and promising operational developments. The company's focus on leveraging modern technologies in legacy fields continues to yield positive outcomes, positioning it well for future growth and shareholder value enhancement.
Explore the complete 8-K earnings release (here) from PEDEVCO Corp for further details.
