PEDEVCO Corp. Lytham Partners Fall 2026 Investor Conference

Good day, everyone, and thank you for joining us today for the Litham Partners Fall 2026 Investor Conference. My name is Joe Dormay, Managing Partner at Litham 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. We did— 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, and that difference is we have a differentiated Rockies focus with substantial growth potential. So 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.

So just want to make sure you're aware of that. Normal disclaimer for most public presentations. And 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 in-depth. We have an established production base. In the Rockies, and about 300,000 net acres that we believe provides 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, you know, stretch into the decades of potential development. So we're going to grow into the 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 potential for— or that drilling potential. the second half of this year, you'll see us participate in and drill 15-plus gross wells. That is across all of our assets, from the duct that we completed in the DJ up to we're drilling apartment well right now in Wyoming and participating in some other wells, Sussex wells, and NIO 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. So we'll 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'll 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'll be reporting Q3 here in a few weeks.

But, you know, almost 37 million dollars in EBITDA in the first half of the year, 6,800 BOE a day in Q2, 88% of that is liquids. So we're 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're going to be a smart about the investments we make. We're going to be conservative with the balance sheet that we can, you know, we want to target one-times, somewhere around one-times net debt to EBITDA. You know, but for opportunities, we'll take that up a little bit as long as we know we can work it back down. So we're going to— we're 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. And then reaffirm our pro forma 2026 EBITDA guidance, which is in that 60 to 70 million dollar range. Q2 financial highlights. I won't belabor these points because we'll have Q3 numbers out soon. But 6,800 BOE a day, mentioned already. Revenue: 46 million adjusted EBITDA, almost 19 million.

Capital: just 5 million that was really overhang from Q1 when we completed over 31 wells, you know, from Q4 into Q1. Some of that was overhang into Q2. Then net income of close to 18 million dollars gets us to that almost 37 million dollar EBITDA number I've already highlighted. And then our Rockies asset base. So 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 Niagara and Colorado and Codell in Wyoming. We have pretty attractive infill wells that can be drilled across that portion of our position. And then 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. So we have a really fairly well-proven position over the near term to go develop. And so we have opportunities in the park when we're drilling now. The Turner, that we'll drill more into next year. Sussex, that's also being developed now. NIO and Mowry. So 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. You know, 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. So we'll delineate this position a lot over the next call at 18 months. And you'll see a considerable upside across our reserves. Inventory defined. You know, obviously you can down space heavily in the DJ basin, and it gives us a lot of inventory. There on the Colorado side. In the Wyoming side, in the Codell. And then in the powder, where we've developed less, but we think we have significant upside until a lesser extent the Permian, where we still have attractive inventory. All at attractive break-evens that we're in a— we're in the 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. And so you'll see us be a lot more consistent in developing those attractive break-evens and you'll see our— we'll go to proving our long runway in a multi-year runway of organic growth over the next 12 to 18 months. Operating margin expansion. I've touched on this a little bit. You know, through our 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. You know, I'm fully recognize that. You know, in the timeline of development, as mentioned, an experienced team already in place to execute on these assets. And then 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. And so 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 we've— 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. You know, 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. That 2026 program is overwhelmingly underway. With wells being drilled across the powder right now, with our parking well spud and that duck online, as of now, so that program grew to a little bit more than 15 gross wells that will be completed at some point in Q4 and into some will carry over into Q1 of 2027. LOE optimization. I've already touched on. And then just want to reiterate, we're a Rockies growth platform. Our capital is going to be directed towards that. Rockies development will be growing production cash flow and shareholder value, increasing shareholder value will be our primary focus going forward. On top of the organic opportunities we just touched on, you know, you have to look at our platform, or at least we do internally, and go, we're well positioned now with a strong balance sheet in a fragmented region where we think is ripe for consolidation.

And so we're already evaluating numerous opportunities across these basins that we operate in, and plus but we think the region is going to provide opportunities in the near and long term for consolidation. And we think we're well positioned for that. Really, what we're looking for, you know, things that are strategically compelling, you know, that we can go use our knowledge of this region and realize some of the upside in the valuations. And we're going to be financially disciplined as we go execute in that direction. Value creation priorities. Again, this is a common theme throughout, so just pull it out and summarize it for you. We're going to be a strong organic growth company focused in the Rockies. We're going to be proactive in consolidation. You know, on assets that are strategically compelling and that are a creative to our balance sheet long term and our valuation long term. We're going to continue to push in all directions and expand margins and then we're going to maintain our financial strength. You're not going to see us stretch. And then just to leave you with a wide PEDEVCO, you know, a few metrics here. But 6,500 BOE a day or more this year is our guidance.

Quality assets across the DJ and the powder river basins with more than 1,100 gross identified locations. We're going to be disciplined in targeting our best risk-adjusted growth opportunities while maintaining conservative leverage. We've got strong insider alignment between our two largest owners and management, controlling over 85% of this entity. And we'll be accelerating our value creation through organic development, supplemented by proactive and disciplined acquisitions. So with that, that's the summary for PEDEVCO today. And Joe, I'll turn it back over to you.

Great. Thanks for that presentation. R.T., we really appreciate your time today. And thanks to everyone for watching. If you have any questions or would like to schedule a meeting with PEDEVCO, send me an email at dor.amy@lithompartners.com. Thank you and have a good