It’s an interesting time to be watching the energy sector as increase in demand sends oil prices to the highest point in years and companies prepare for the looming energy crisis. While microcap investing is often considered overly risky, one energy producer with a market cap of $171 million has recently attracted quite a bit of attention for the right reasons. PEDEVCO (NYSE:PED), a Houston, Texas-based oil and natural gas company has enjoyed an impressive season so far, despite some declines over the summer. PED stock has risen by 88.6% for the month. Additionally, despite an early October downtick, it is up 12.44% for the week. As of this writing, shares are up by 8.59% for the day despite some early turbulence.
Former hedge fund manager and current social media stock market influencer Will Meade has touted PED stock quite a bit recently, calling it “the best fundamental micro cap energy stock trading” and noting that the company has “almost $30 million in cash and zero debt.” In addition, as Meade noted, PEDEVCO Chief Executive Officer Simon Fukes has been on a buying spree lately, purchasing thousands of shares throughout September 2021 on different occasions.
What else should we know about this small company making big plays in the energy sector? Let’s find out.
What Investors Should Know About PED Stock
- The company’s name stems from its original title, Pacific Energy Development Corporation.
- Although PEDEVCO is know for energy plays, the company operates under an E&P (exploration and production) business model and focuses on the acquisition and development of assets in the fields of oil and natural gas.
- PEDEVCO’s current properties are located in oil basins located in or near west Texas, eastern New Mexico and eastern Colorado.
- Fukes joined the company after his firm SK Energy LLC made a strategic investment in PEDEVCO in 2018. This move saved it from losing its NYSE listing due to debt and lack of cashflow. He immediately began restructuring, simplifying the company’s balance sheet and helping reduce its considerable debt.
- Less than three months afterward, PEDEVCO acquired the Chaveroo and Milnesand fields in New Mexico’s Permian Basin. This added an additional 23,000 acres to its portfolio. The next year it added 22,000 acres through a leasehold agreement.
- September 2021 was a busy month for Fukes, who purchased $235,887 worth of shares on Sept. 11, $141,000 worth on Sept. 16 and $112,294 on Sept. 30. The collective total spent on shares is $489,181. The prices per share he paid on each occasion were $1.23, $1.41 and $1.46, respectively. PED stock’s recent performances indicates that his decision were well founded.
- Most recently, PEDEVCO announced the closing of a $7 million Registered Direct Offering of Common Stock. $70 million worth of common stock was sold in the transaction.
On the date of publication, Samuel O’Brient did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
