(PED) PEDEVCO Corp. Business Model Canvas Research

PEDEVCO Corp.’s acreage is only as strong as its lease and title chain, so land, mineral, and royalty counterparties directly shape where it can drill, the terms it can use, and the cash it owes. In U.S. onshore oil and gas, royalty and surface agreements are standard, and they matter more as leasehold costs rise. U.S. crude output averaged about 13.2 million b/d in 2025.

• Lease and title control acreage access.

• Royalty terms set cash outflows.

• Surface deals affect operating pace.

State and federal regulators are a core partner for PEDEVCO Corp because drilling, completions, and ongoing production all depend on permits, inspections, and environmental compliance. In New Mexico and Colorado, plus federal agencies, rule changes can slow or stop well activity, so strong compliance helps keep assets online and producing cash flow.

• Permits gate drilling start
• Inspections protect operating uptime
• Rule changes can delay output

PEDEVCO Corp. uses workovers, artificial lift, and field tuning to slow decline, lift uptime, and keep wells near peak performance. That matters because even small downtime cuts sales volumes, so each barrel protected improves asset economics and extends field life.

• Reduce decline
• Protect uptime
• Restore well performance
• Improve unit economics

PEDEVCO Corp. turns produced oil and gas into cash by selling volumes into market channels, where nominations, pricing, measurement, and settlement set the final realized revenue. In a U.S. market that produced about 13.2 million barrels of crude per day in 2025, small pricing or volume differences can move cash fast.

• Sell barrels into market channels
• Nominate volumes and delivery timing
• Measure, price, and settle sales
• Convert production into revenue

PEDEVCO Corp. is based in Houston, Texas, which puts management near one of the largest U.S. energy hubs. That location helps the company tap energy talent, capital, and oilfield service markets, and it supports day-to-day oversight of U.S. upstream operations.

• Houston anchors U.S. energy deal flow.
• Proximity helps recruit industry talent.
• Local access supports upstream oversight.

PEDEVCO Corp. operates with SK Energy LLC as its subsidiary, and that ownership stack is a real strategic asset for funding, oversight, and lender confidence. In PEDEVCO Corp.'s latest public filings, this backing can lower perceived execution risk and make counterparties more comfortable with long-term contracts and capital support.

• Subsidiary structure supports oversight
• Can improve funding access
• Signals stronger counterparty confidence

PEDEVCO Corp. controls 44,450 net acres, and that land bank gives it a long drilling runway plus reserve-growth optionality. In upstream oil and gas, acreage control is a core value driver because it protects inventory, supports phased development, and can lift asset value as wells are added across the leasehold.

• 44,450 net acres under control
• Builds drilling runway and optionality
• Land control supports upstream value

PEDEVCO Corp. turns production into commodity-linked cash flow, so revenue rises or falls with oil and gas volumes sold into market channels. That gives investors direct exposure to realized prices and output, and operating leverage can lift margins fast when prices strengthen, because fixed costs don’t move as quickly as sales.

• Revenue tracks oil and gas volumes.
• Direct exposure to market prices.
• Higher prices can boost margins fast.

PEDEVCO Corp. keeps investor relations open through 10-Ks, 10-Qs, and 8-Ks, so shareholders can track acreage, wells, and operating results as they change. In a capital-heavy shale business, that transparency is how PEDEVCO supports access to equity and debt markets, and it matters even more when funding drilling programs.

• Quarterly 10-Q updates
• Annual 10-K reporting
• Well and acreage disclosure
• Supports capital market trust

PEDEVCO Corp. must keep service providers and working-interest partners aligned on well schedules, maintenance, and production fixes, because delays quickly raise downtime and cost overruns. In PEDEVCO Corp.'s 2025 reporting cycle, this coordination stayed central to field execution across operated assets.

• Keep schedules tight to cut downtime.
• Align maintenance with partner approvals.
• Fix production issues fast to control costs.

PEDEVCO Corp. uses SEC filings as its main investor channel, because 10-Ks, 10-Qs, and 8-Ks disclose acreage, wells, production results, and risk factors. For a listed E&P company, these public reports are the core source for tracking operating scale and quarterly performance.

• Discloses acreage and well counts
• Shows quarterly results and risks
• Main channel for listed investors

PEDEVCO Corp. relies on Houston-based industry and banking networks to widen deal flow and secure financing, since upstream oil and gas still runs on service firms, lenders, and advisers who know reserves, rigs, and midstream constraints. These ties help the company plan capital, line up partners, and move faster on operating decisions in a market where execution and access to credit still decide outcomes.

• Houston networks support deal sourcing.
• Banking ties improve financing access.
• Advisers help with capital planning.
• Service links speed field execution.

Midstream and processing counterparties move PEDEVCO Corp.'s oil and gas to market, and their pipe, plant, and takeaway capacity directly shapes volumes sold and fees earned. In PEDEVCO Corp.'s 2025 filings, access to third-party gathering and processing remains a sales-execution driver, because any bottleneck can delay volumes and cash flow.

• Move production to market
• Earn volume and fee revenue
• Capacity limits sales execution

Public equity investors fund PEDEVCO Corp.’s acreage, drilling, and operating spend by buying common stock, so the company can raise capital without relying only on debt. In FY2025, this matters because public-market access supports a more flexible capital structure while investors look for production growth, cash flow, and reserve value.

That trade-off is direct: if PEDEVCO grows output and proves asset value, equity holders can benefit; if drilling stalls, dilution risk rises. Public equity is still central because it gives the company a live funding channel for field activity and balance-sheet support.

• Funds acreage and drilling
• Seeks production and cash flow
• Supports flexible capital access

PEDEVCO Corp. keeps general and administrative expenses centered at its Houston headquarters, where staff, legal, accounting, and public-company reporting costs sit. This cost base is mostly fixed, so it does not move much with production swings and can pressure margins when output is volatile.

• Houston HQ concentrates overhead
• Staff, legal, accounting, SEC reporting
• Costs stay mostly fixed
• Margins move with production

That makes G&A a key control point in the Business Model Canvas: growth in barrels helps more when overhead is held flat. In a small producer like PEDEVCO Corp., every dollar of fixed G&A matters because it is spread across a limited production base.

Royalties, production taxes, and interest are built-in costs in PEDEVCO Corp.’s upstream model, and they directly cut wellhead revenue and netbacks. Royalty burdens reduce the share of each barrel or Mcf sold, while financing costs and production taxes tighten margins when commodity prices soften.

• Royalties lower well-level revenue.
• Production taxes cut operating margin.
• Interest expense raises financing drag.

Commodity hedge settlements on PEDEVCO Corp. often turn oil and gas price swings into realized gains or losses, but the aim is steadier cash flow. In upstream oil and gas, this matters when WTI and Henry Hub move fast; PEDEVCO uses hedges to protect near-term revenue, not to boost volume.

• Reduces cash-flow volatility
• Creates realized hedge gains or losses
• Common in upstream oil and gas

Partner reimbursements and other receipts are a small, secondary revenue stream for PEDEVCO Corp., used to recover shared lease, drilling, and operating costs from partners or joint-interest participants; they support asset-level economics, but core hydrocarbon sales still drive the business. In the latest reported period, this line stayed immaterial versus oil and gas revenue.

• Cost recovery, not core sales
• Shared with partners or joint-interest owners
• Helps offset asset-level spend