PEDEVCO Targets H2 2027 DJ Basin Expansion and Late-2026 EBITDA Gains
PEDEVCO is reviewing assets for potential DJ Basin development in H2 2027 with quick rig mobilization capabilities and partner-operated projects. Permitting delays in Colorado leave one DSU ready and another due in six to nine months, while optimization projects aim to boost annualized EBITDA by late 2026.
1. DJ Basin Development Plans
PEDEVCO’s CFO indicated the company is conducting detailed asset reviews for DJ Basin development programs slated for the second half of 2027. Management highlighted flexibility to rapidly mobilize a rig if commodity prices remain elevated and noted significant partner-operated projects ready to commence in H2 2027.
2. Q1 2026 Production Forecast
Production is projected to peak during the first quarter of 2026 before declining as newly drilled wells enter their natural decline curves. The Q4 2025 results included only a partial contribution from recent asset acquisitions due to merger timing.
3. Permitting Timelines in Colorado and Wyoming
Permitting processes in Colorado are lengthier, with one drilling spacing unit already permitted and a second expected in six to nine months. In Wyoming, PEDEVCO plans to pursue infill drilling and leverage partner-operated developments without major permitting delays.
4. Optimization and M&A Outlook
Optimization initiatives began before the current year, with most projects slated for completion by Q3 or Q4 and expected to add annualized EBITDA by late 2026 or early 2027. The company remains opportunistic on acquisitions in the Powder River Basin to consolidate its public company presence in the Rockies.