PEDEVCO Lytham Partners Fall 2026 Investor Conference

Good day everyone, and thank you for joining us today for the Lytham Partners Fall 2026 Investor Conference. My name is Joe Dorame, managing partner at Lytham Partners. I would like to welcome PEDEVCO Corp, which trades on the NYSE American under the ticker PED. Today, R.T. Dukes, interim president and CEO, will be taking us through the company presentation. Let's get started. Welcome, R.T.

Thank you, Joe. R.T. Dukes, as Joe mentioned, interim CEO and COO, acting COO as well for PEDEVCO. I did just step into that role about a week ago. The board decided to make a change, and they will be going through a search for a full-time CEO through Q4. But we have a great team in place, so not a lot's going to change. Expect to hear more of the same in terms of, we think we have a PEDEVCO difference. That difference is we have a differentiated Rockies focus with substantial growth potential. I'll walk you through that today. First, normal disclaimers. Let's see here. Switch slides. Like you would expect, just want to remind you this presentation will include forward-looking statements which involve risk, uncertainty, and other factors that can differ or can be different from actual results materially.

Just want to make sure you're aware of that normal disclaimer for most public presentations. Then jumping into that PEDEVCO difference. I want to highlight a few things for you. We've been doing this most of the year and kind of leveraging the team that we do have in place that can execute upon our portfolio. We're excited to share more, and we will be sharing more in the coming months about our 2027 development plan as well. But we're a company that we believe has quality and depth. We have an established production base in the Rockies and about 300,000 net acres that we believe provide scale for long-term organic growth, with a clean balance sheet that we can also use in consolidation across the Rockies. I'll go into more detail on that a little bit later.

Just to put some numbers on that, over 1,000 gross identified locations. That is a large number for a company of our size. We have at currently, booked and unbooked PUDs, our probable resources stretch into the decades of potential development. So we're going to grow into right-sizing that. We have sustainable organic growth. We'll roll out more details on that in the coming months. But our existing inventory alone provides that drilling potential. In the second half of this year, you'll see us participate in and drill 15+ gross wells. That is across all of our assets from the DUC that we completed in the DJ up to we're drilling a Parkman well right now, in Wyoming and participating in some other wells, Sussex wells, and Niobrara wells later in the year.

As mentioned, we have the technical team and operating team in place that has worked on these assets for years, and knows these assets really well. We will be pushing forward our development plans going forward. The leadership transition is not going to be a crazy shift for PEDEVCO, but just continuity and a continued focus on execution is where we are now. Margin expansion and financial strength will continue to be an important part of our plans going forward. We will reiterate our plans to lower LOE between our program this year and next by over $10 million in annualized LOE savings. Really focus on maximizing our margins across each barrel. At a glance, just some high-level overview information that many of you would have seen from Q2. We will be reporting Q3 here in a few weeks.

Almost $37 million in EBITDA in the first half of the year, 6,800 BOE a day in Q2. 88% of that is liquids, so we are an oil-weighted Rockies company. Something to keep in mind. Very heavy liquids mix. We have a balance sheet that we think positions us well for consolidation or for being opportunistic. We are going to be smart about the investments we make. We are going to be conservative with the balance sheet that we want to target one times, somewhere around one times net debt to EBITDA. For opportunities, we will take that up a little bit as long as we know we can work it back down. We are going to keep a conservative balance sheet that allows us to make the most of the assets that we own. Those debt targets will hold fairly steady.

Reaffirm our pro forma 2026 EBITDA guidances, which is in that $60 million-$70 million range. Q2 financial highlights. I will not belabor these points because we will have Q3 numbers out soon, but 6,800 BOE a day, mentioned already. Revenue $46 million. Adjusted EBITDA almost $19 million. Capital of just $5 million that was really overhang from Q1 when we completed over 31 wells from Q4 into Q1. Some of that was overhanging into Q2. Net income of close to $18 million gets us to that almost $37 million EBITDA number I have already highlighted. Our Rockies asset base. The bulk of our production in the DJ today, where we have over 90,000 net acres and 5,500 BOE a day in that basin, largely from the Niobrara in Colorado and Codell in Wyoming.

We have pretty attractive infill wells that can be drilled across that portion of our position. In the Powder, which is really our long-term future, near and long-term future, where a little less than 1,000 BOE a day, 800 BOE a day average in Q2. A little over 200,000 acres. Those acreage positions have major operators developing all around us. We have a really fairly well proven position, over the near term to go develop. We have opportunities in the Parkman we are drilling now, the Turner that we will drill more into next year, Sussex that is also being developed now, Niobrara and Mowry. Some of the resource plays as well across our acreage. Stacked targets. If you're not new to the Powder, if you are, we have stacked pay that we think gives us long-term optionality that as we develop some of these reservoirs, we think we'll continue to see additional upside in others across the basin.

Reserves and valuation summary, I'll be quick on this, since it's year-end 2025. Ultimately, we're pretty conservative. You see that in our financials, but you see that in our reserves as well. We have a big acreage position that we have not been aggressive with booking our PDP or PUDs, or booking our PUD reserves. We'll delineate this position a lot over the next, call it, 18 months, and you'll see a considerable upside across our reserves. Inventory defined. Obviously you can down space heavily in the DJ Basin, and it gives us a lot of inventory there on the Colorado side and the Wyoming side, in the Codell, and then in the Powder, where we've developed less, but we think we have significant upside, and to a lesser extent, the Permian, where we still have attractive inventory, all at attractive breakevens that we're in a higher oil price environment right now that makes a lot of our inventory look very, very attractive, and you see that here when we have inventory that we'll chase at much lower oil prices.

You'll see us be a lot more consistent in developing those attractive breakevens and you'll see our. We'll go to proving our long runway in a multiyear runway of organic growth, over the next 12 to 18 months. Operating margin expansion. I've touched on this a little bit.

Through our 2024-2025 merger that created the PEDEVCO that you know today, significant G&A synergies, that's already been realized through this year. The LOE optimization that I mentioned, we're already over 50% of the way towards those targets, and we'll finish that program next year, and fully recognize that. The timeline of development, as mentioned, an experienced team already in place to execute on these assets. Ultimately, what that leads to, it leads to a G&A that's really one of the leading levels for our peers. It leads to margin expansion that you don't see very often in a company our size, and it leads to an annualized EBITDA uplift that can be material for us. We'll continue to push in all directions across the PEDEVCO portfolio to maximize margins and grow this portfolio. Accelerating development. Touched on this a little bit already.

The technical work that you've heard us talk about each quarter so far this year is complete. The go-forward development plan prioritizes our best risk-adjusted opportunities across the portfolio, and where we've mentioned we have a lot of optionality. We'll provide additional details in the coming months as we report Q3 and report on our 2027 plans.