PEDEVCO (NYSEMKT-PED) Initiating Coverage

Date: 
Mon, 2014-01-06
Industry: 
Energy

Title: Strategic high-growth assets in the U.S. and Kazakhstan

Synopsis: We initiate coverage on PEDEVCO Corp. (NYSEMKT: PED) with a target price of $3.21 and an Overweight rating, offering a 43.2% upside to the current price of $2.24. PED operates with a strategy of acquiring high-growth potential assets, supported by stable cash flows from existing assets. PED acquires oil and gas assets in two ways: through direct ownership and under joint-venture relationships with its strategic partners. To date, PED owns ~19,000 gross acres and ~9,600 net acres of core assets, which include ~2,800 net acres in the Niobrara formation, ~6800 net acres in the Mississippian Lime Play, ~50 net acres in the Eagle Ford Shale, and a newly added 34% equity investment in a producing asset of ~380,000 gross acres in Kazakhstan (transaction pending).

Report length: 25 pages (excluding legal disclaimer)

Authors: 
Boris Miao