PEDEVCO Corp. (PED) saw a decrease of 10.43% in the aftermarket. However, the last trading session concluded at $2.11 with an incline of 42.57%.
Second Quarter 2021 Financial Results
PED announced second-quarter 2021 financial results on 17th August 2021. Firstly, oil and gas output grew by 40% to 718 barrels of oil equivalent per day. The rise in output was largely due to production from the Company’s operated wells, which were shut-in for 42 days during the second quarter of 2020. This owed to a severe fall in price, as well as considerably wider differentials from lower demand due to the COVID-19 epidemic. Secondly, revenues grew by 470 percent to $3.74 million in the second quarter of 2021. A favorable pricing variation of $1.9 million, along with a favorable volume variance of $1.2 million, contributed to the rise in revenue.
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In the second quarter of 2021, the operational loss was $0.6 million, compared to $3.4 million the previous year. The $3.1 million raise in sales accounted for the majority of the increase in gross profit. Lastly, operating costs were $4.39 million in the second quarter of 2021, compared to $4.08 million in the same quarter the previous year. The increase was largely attributable to higher lease operating expenditures, owing to the above-mentioned COVID-19-related production shutdown.
New Wells and Adds $1.9 Million Cash through Sale of Non-Core Assets
On 23rd March 2021, PED announced the drilling and completion of two horizontal San Andres wells as part of its Phase II development program. It also stated the sale of certain non-core properties contributed approximately $1.9 million to the company’s financial sheet.
The company is happy to have top money for these non-core D-J Basin assets. They presume that they are under distinctive pressure to develop our assets, pursue investable merger or acquisition opportunities. Moreover, they have over $18.5 million in free cash, no debt, and considerable strongly drilling inventory. All of them intend to assertively leverage to develop our assets, pursue accretive merger and acquisition opportunities.
Launch of Proposed Underwritten Follow-on Offering of Common Stock by PED
PED declared its intention to sell its common stock in a public offering with a firm committed underwriter on 3rd February 2021. PED plans to provide the underwriter a 45-day option to acquire up to 15% of the Shares. The company is selling the shares under an effective shelf registration statement with the Securities and Exchange Commission.
The Sole Book Runner for the Offering is Kingswood Capital Markets, a subsidiary of Benchmark Investments, Inc. The offering is subject to price circumstances, and no guarantee can be given.
