PEDEVCO (PED) Stock Forecast & Price Target

PEDEVCO Corp demonstrates a promising financial outlook by benefiting from lower non-cash depletion expenses, which are expected to enhance prior-period net income and improve the accuracy of current reporting. Since the appointment of CEO Doug Schick in January 2025, the company has maintained a streak of accepted earnings, indicating effective leadership and operational improvements. Although elevated lease operating expenses (LOE) have led to a break-even operating result of $150,000, these costs are tied to increased production volumes and well activity, reflecting the potential for revenue growth as operational efficiencies are realized.

PEDEVCO's production of 1,707 barrels per day (BPD) fell short of forecasts and indicated potential operational inefficiencies, despite revenue surpassing expectations at $8.7 million, reflecting only an 8% year-over-year growth. The firm's methodology for calculating reserves, which excluded prior year production numbers, led to an overstatement of depletion expenses and resulted in a significant understatement of net income, raising concerns about the accuracy of financial reporting. Although PEDEVCO currently holds no debt, it may need to tap into its available credit to finance future growth, which presents a potential liquidity risk given its projected EBITDA of approximately $20 million and cash balance of only $10 million.