Pedevco: Hedges Are Eating Into The Oil Price Upside

PEDEVCO is a standard U.S. oil producer with over 300,000 net acres across three basins, but recent results raise concerns. Despite Q2 oil sales at $94/barrel and surging production from a 2025 merger, PED posted a first-half loss due to hedging and non-recurring factors. Locked-in hedges through 2028 severely limit upside from higher oil prices, while operating costs have risen to $26.51/Boe post-merger.