Upon recovering from the illness, Peppy San Badger was sold to the King Ranch of South Texas in 1977, where he remained a breeding stallion until his death.
Welch owned him for a year before agreeing to sell him back to King Ranch to become a part of their breeding program.
Peppy San Badger, with Welch riding again, won the NCHA Derby in 1978 and reached 10th place in that year's year-end standings.
[3] Peppy San Badger's success continued into the 1980s, being named the 1980 NCHA Reserve World Champion.
[2] Some of his notable offspring include: Dual Peppy, Dual Pep, Lil Ruf Peppy, who was the National Reining Horse Association’s (or NRHA) ninth $3 million sire,[7] Vintage Little Taris, inducted into the NRHA Hall of Fame in 2008,[8] and Little Tenina, who won the NCHA Futurity in 1991.