DENVER–(BUSINESS WIRE)–BKV Corporation (“BKV” or the “Company”) (NYSE: BKV) today reported financial and operational results for the third quarter of 2026, along with guidance for the fourth quarter of 2026. In addition, the Company is announcing an expanded scope for its Phase 1 modular power development in Temple, TX, supported by a Cost Reimbursement Agreement with a Leading Frontier AI Lab, and Verra carbon credit certification.
Third Quarter 2026 Highlights
- Net income attributable to BKV of $29.4 million or $0.27 per diluted share
- Adjusted Net Income attributable to BKV of $39.9 million or $0.36 per diluted share
- Adjusted EBITDAX attributable to BKV of $132.7 million
- Net cash provided by operating activities of $164.5 million
- Net cash provided by operating activities before working capital of $112.7 million
- Accrued capital expenditures of $77.8 million
- Adjusted Free Cash Flow before Power Growth attributable to BKV of $31.2 million
- Average net production of 981.2 MMcfe/d
- Total generation from the Power JV’s Temple plants of 2,317 GWh
- CCUS quarterly sequestration of approximately 55,200 metric tons of CO2 equivalent
- Net Leverage Ratio of 2.41x
- Completed $575.0 million Convertible Senior Notes Offering at an annual rate of 1.625%
Cost Reimbursement Agreement with a Leading Frontier AI Lab for Modular Power Development
BKV-BPP Power (“Power JV”) entered into a cost reimbursement agreement (“CRA”) with a Leading Frontier AI Lab supporting an increase in planned modular power generation at the Temple Energy Complex to 400 MW from 200 MW. If mutually agreeable offtake arrangements are not agreed to by November 18, 2026, the CRA covers up to approximately $179 million. The agreement contemplates an extension to December 21, 2026, and the ability to extend further, each on mutual agreement. The intended offtaker may elect to take assignment of the equipment supply contract, if not retained by the Power JV, in which case it would reimburse the Power JV for eligible costs, subject to an aggregate cap of $374.1 million. The CRA allows BKV to maintain its development schedule while advancing commercial discussions toward a long-term power purchase agreement (“PPA”).
Equipment Supply Agreement Backed by Agreement with a Leading Investment-Grade Hyperscaler
As previously announced in October, a wholly owned subsidiary of BKV entered into an equipment supply agreement with a Tier 1 supplier for the purchase of combined-cycle gas turbine (“CCGT”) power generation equipment for one of the Company’s prospective power generation projects in Texas representing approximately 1.2 GW. BKV also announced a backstop agreement with a leading investment-grade hyperscaler, under which the hyperscaler has agreed to reimburse a portion of BKV’s costs associated with the equipment and related project work. This investment-grade hyperscaler is also the intended offtaker for the prospective power generation project.
Verra Carbon Credit Certification Unlocks Carbon Sequestered Gas
BKV became the first company to receive carbon credit certification from Verra for CO₂ permanently sequestered through its CCUS operations. This milestone enables the Company to monetize carbon credits through its Carbon Sequestered Gas (“CSG”), a first-of-its-kind, third-party-verified carbon-neutral natural gas product. With verification complete, BKV can begin delivering CSG under its previously announced arrangements with Kiewit and Gunvor, while pursuing additional opportunities to market CSG to customers seeking reliable, lower-carbon energy solutions.
Strategic Barnett Shale Acquisition Highlights
As previously announced, on September 15, 2026, BKV completed the acquisition of upstream, midstream and carbon capture and sequestration (“CCS”) assets in the Barnett Shale, further strengthening its position as one of the basin’s leading operators. The acquisition added approximately 65 MMcfe/d of production (more than 50% liquids) and approximately 0.35 Tcfe of proved developed producing reserves. The acquired assets also include a cryogenic natural gas processing plant with 180 MMcf/d of capacity, approximately 340 miles of owned natural gas gathering infrastructure, 225 miles of owned water gathering infrastructure and two saltwater disposal wells. Additionally, the acquisition included an operating CCS facility that sequestered greater than 100,000 metric tons of CO₂ during the twelve months ended September 30, 2026.
“Our upstream business delivered another strong quarter, with continued operational outperformance providing a solid foundation as we advanced our strategic growth initiatives,” said Chris Kalnin, Chief Executive Officer of BKV. “We also made meaningful commercial progress in our power business, securing a cost reimbursement agreement for modular generation equipment and a previously announced backstop agreement with an investment-grade hyperscaler supporting our CCGT equipment commitments.”
“These milestones reflect our deliberate, disciplined approach to developing additional power generation capacity,” continued Kalnin. “We are encouraged by the progress of our commercial discussions and remain focused on securing long-term power purchase agreements that support our growth objectives. Combined with continued execution across our upstream and carbon capture businesses, we believe this progress positions BKV to advance its closed-loop strategy and create sustainable, long-term shareholder value.”
Financial Results
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
||||||||
|
($ Millions, except EPS) (1) |
|
2026 |
|
|
2025 |
|
|
2026 |
|
|
2025 |
|
Net income attributable to BKV |
$ |
29.4 |
|
$ |
83.5 |
|
$ |
149.3 |
|
$ |
109.3 |
|
Adjusted Net Income attributable to BKV, non-GAAP |
$ |
39.9 |
|
$ |
23.1 |
|
$ |
110.7 |
|
$ |
84.7 |
|
Adjusted EPS attributable to BKV, non-GAAP (2) |
$ |
0.36 |
|
$ |
0.27 |
|
$ |
1.03 |
|
$ |
1.00 |
|
Adjusted EBITDAX attributable to BKV, non-GAAP |
$ |
132.7 |
|
$ |
101.3 |
|
$ |
381.3 |
|
$ |
302.4 |
|
Net cash provided by operating activities |
$ |
164.5 |
|
$ |
109.1 |
|
$ |
346.2 |
|
$ |
214.8 |
|
Net cash provided by operating activities before working capital, non-GAAP |
$ |
112.7 |
|
$ |
94.0 |
|
$ |
339.6 |
|
$ |
228.5 |
|
Adjusted Free Cash Flow before Power Growth attributable to BKV, non-GAAP |
$ |
31.2 |
|
$ |
15.0 |
|
$ |
91.3 |
|
$ |
43.5 |
|
Capital expenditures (accrued) |
|
|
|
|
|
|
|
||||
|
Development (3) |
$ |
51.5 |
|
$ |
55.7 |
|
$ |
172.2 |
|
$ |
166.2 |
|
Power (4) |
$ |
6.8 |
|
$ |
0.2 |
|
$ |
30.3 |
|
$ |
0.6 |
|
CCUS and other |
$ |
19.5 |
|
$ |
24.0 |
|
$ |
66.3 |
|
$ |
50.2 |
|
Total capital expenditures (accrued) |
$ |
77.8 |
|
$ |
79.9 |
|
$ |
268.8 |
|
$ |
217.0 |
|
Deposits on fixed asset purchases (5), (6) |
$ |
109.7 |
|
$ |
15.0 |
|
$ |
268.2 |
|
$ |
15.0 |
|
____________________________________________________ |
|
(1) Adjusted Net Income attributable to BKV, Adjusted EPS attributable to BKV, Adjusted EBITDAX attributable to BKV, Net cash provided by operating activities before working capital, and Adjusted Free Cash Flow before Power Growth attributable to BKV are each non-GAAP financial measures. For a definition of each of these non-GAAP financial measures and reconciliations of such non-GAAP financial measures to their most directly comparable GAAP metrics, please see “Supplemental Non-GAAP Financial Measures” below. |
|
(2) Reflects Adjusted EPS attributable to BKV on a diluted basis. |
|
(3) Excludes asset retirement obligation expenditures of $0.6 million and $0.5 million for the three months ended September 30, 2026 and 2025, respectively, and $1.5 million and $0.6 million for the nine months ended September 30, 2026 and 2025, respectively. |
|
(4) Power maintenance was $0.6 million and $0.2 million for the three months ended September 30, 2026 and 2025, respectively, and $1.4 million and $0.6 million for the nine months ended September 30, 2026 and 2025, respectively. |
|
(5) These deposits are comprised of payments for turbines, modular generation equipment, and other long lead time items in Power included within our Strategic Power Growth capital expenditures and investments guidance. |
|
(6) Includes a $24.8 million deposit on property and equipment paid directly to the vendor by the lender of the Power Equipment Financing Facility. |
“Our strong upstream cash flow, disciplined capital commitments and recent capital markets transactions have further strengthened our financial position and provided substantial liquidity to support our strategic growth initiatives,” said David Tameron, Chief Financial Officer of BKV. “As we advance our phased power development strategy, we remain focused on preserving financial flexibility and maintaining a strong balance sheet.”
“The announced cost reimbursement agreement for modular generation equipment and the previously disclosed hyperscaler backstop for combined-cycle equipment reflect our disciplined approach to structuring capital commitments,” continued Tameron. “These arrangements provide important financial protections and flexibility as we advance commercial discussions, positioning us to pursue significant growth opportunities while prudently managing capital exposure and development risk.”
Business Segment Results
|
|
Three Months Ended September 30, 2026 |
||||||||||||||
|
($ Thousands) |
Upstream/ Midstream |
|
Power |
|
Corporate and Other |
|
Total |
||||||||
|
Net income (loss) |
$ |
25,736 |
|
|
$ |
26,673 |
|
|
$ |
(14,023 |
) |
|
$ |
38,386 |
|
|
Add back (subtract): |
|
|
|
|
|
|
|
||||||||
|
Depreciation, depletion, amortization, and accretion |
|
44,604 |
|
|
|
9,482 |
|
|
|
655 |
|
|
|
54,741 |
|
|
Exploration and impairment expense |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Unrealized (gains) losses on derivatives, net |
|
33,356 |
|
|
|
(21,646 |
) |
|
|
— |
|
|
|
11,710 |
|
|
Forward month gas settlement (1) |
|
(3,658 |
) |
|
|
— |
|
|
|
— |
|
|
|
(3,658 |
) |
|
Interest expense, net |
|
14,867 |
|
|
|
9,058 |
|
|
|
(309 |
) |
|
|
23,616 |
|
|
Interest expense, related parties |
|
— |
|
|
|
4,008 |
|
|
|
— |
|
|
|
4,008 |
|
|
Equity-based compensation expense |
|
2,662 |
|
|
|
967 |
|
|
|
1,189 |
|
|
|
4,818 |
|
|
Income tax expense |
|
— |
|
|
|
— |
|
|
|
3,018 |
|
|
|
3,018 |
|
|
Other nonrecurring transactions |
|
4,560 |
|
|
|
935 |
|
|
|
— |
|
|
|
5,495 |
|
|
Adjusted EBITDAX, non-GAAP |
|
122,127 |
|
|
|
29,477 |
|
|
|
(9,470 |
) |
|
|
142,134 |
|
|
(Deduct) add: Adjusted EBITDAX attributable to Noncontrolling Interests (2) |
|
— |
|
|
|
(8,504 |
) |
|
|
(962 |
) |
|
|
(9,466 |
) |
|
Adjusted EBITDAX attributable to BKV, non-GAAP |
$ |
122,127 |
|
|
$ |
20,973 |
|
|
$ |
(10,432 |
) |
|
$ |
132,668 |
|
|
|
Three Months Ended September 30, 2025 |
||||||||||||||
|
($ Thousands) |
Upstream/ Midstream |
|
Power |
|
Corporate and Other |
|
Total |
||||||||
|
Net income (loss) |
$ |
91,756 |
|
|
$ |
37,359 |
|
|
$ |
(34,224 |
) |
|
$ |
94,891 |
|
|
Add back (subtract): |
|
|
|
|
|
|
|
||||||||
|
Depreciation, depletion, amortization, and accretion |
|
37,344 |
|
|
|
9,546 |
|
|
|
538 |
|
|
|
47,428 |
|
|
Exploration and impairment expense |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Unrealized (gains) losses on derivatives, net |
|
(55,193 |
) |
|
|
(26,792 |
) |
|
|
— |
|
|
|
(81,985 |
) |
|
Forward month gas settlement (1) |
|
(6,981 |
) |
|
|
— |
|
|
|
— |
|
|
|
(6,981 |
) |
|
Interest expense, net |
|
6,441 |
|
|
|
10,322 |
|
|
|
(240 |
) |
|
|
16,523 |
|
|
Interest expense, related parties |
|
— |
|
|
|
5,024 |
|
|
|
— |
|
|
|
5,024 |
|
|
Equity-based compensation expense |
|
— |
|
|
|
— |
|
|
|
2,944 |
|
|
|
2,944 |
|
|
Income tax expense |
|
— |
|
|
|
— |
|
|
|
23,874 |
|
|
|
23,874 |
|
|
Other nonrecurring transactions |
|
— |
|
|
|
4,898 |
|
|
|
5,643 |
|
|
|
10,541 |
|
|
Adjusted EBITDAX, non-GAAP |
|
73,367 |
|
|
|
40,357 |
|
|
|
(1,465 |
) |
|
|
112,259 |
|
|
(Deduct) add: Adjusted EBITDAX attributable to Noncontrolling Interests (2) |
|
— |
|
|
|
(10,050 |
) |
|
|
(863 |
) |
|
|
(10,913 |
) |
|
Adjusted EBITDAX attributable to BKV, non-GAAP |
$ |
73,367 |
|
|
$ |
30,307 |
|
|
$ |
(2,328 |
) |
|
$ |
101,346 |
|
|
|
Nine Months Ended September 30, 2026 |
||||||||||||||
|
($ Thousands) |
Upstream/ Midstream |
|
Power |
|
Corporate and Other |
|
Total |
||||||||
|
Net income (loss) |
$ |
196,568 |
|
|
$ |
39,368 |
|
|
$ |
(68,376 |
) |
|
$ |
167,560 |
|
|
Add back (subtract): |
|
|
|
|
|
|
|
||||||||
|
Depreciation, depletion, amortization, and accretion |
|
128,116 |
|
|
|
30,838 |
|
|
|
1,605 |
|
|
|
160,559 |
|
|
Exploration and impairment expense |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Unrealized (gains) losses on derivatives, net |
|
(6,532 |
) |
|
|
(41,101 |
) |
|
|
— |
|
|
|
(47,633 |
) |
|
Forward month gas settlement (1), (3) |
|
(25,563 |
) |
|
|
— |
|
|
|
— |
|
|
|
(25,563 |
) |
|
Interest expense, net |
|
41,985 |
|
|
|
27,510 |
|
|
|
(1,864 |
) |
|
|
67,631 |
|
|
Interest expense, related parties |
|
— |
|
|
|
12,255 |
|
|
|
— |
|
|
|
12,255 |
|
|
Equity-based compensation expense |
|
8,077 |
|
|
|
3,019 |
|
|
|
4,028 |
|
|
|
15,124 |
|
|
Impairment of asset held for sale |
|
— |
|
|
|
— |
|
|
|
3,516 |
|
|
|
3,516 |
|
|
Income tax expense |
|
— |
|
|
|
— |
|
|
|
34,637 |
|
|
|
34,637 |
|
|
Other nonrecurring transactions |
|
9,678 |
|
|
|
8,972 |
|
|
|
825 |
|
|
|
19,475 |
|
|
Adjusted EBITDAX, non-GAAP (3) |
|
352,329 |
|
|
|
80,861 |
|
|
|
(25,629 |
) |
|
|
407,561 |
|
|
(Deduct) add: Adjusted EBITDAX attributable to Noncontrolling Interests (2) |
|
— |
|
|
|
(23,465 |
) |
|
|
(2,751 |
) |
|
|
(26,216 |
) |
|
Adjusted EBITDAX attributable to BKV, non-GAAP |
$ |
352,329 |
|
|
$ |
57,396 |
|
|
$ |
(28,380 |
) |
|
$ |
381,345 |
|
|
|
Nine Months Ended September 30, 2025 |
||||||||||||||
|
($ Thousands) |
Upstream/ Midstream |
|
Power |
|
Corporate and Other |
|
Total |
||||||||
|
Net income (loss) |
$ |
150,746 |
|
|
$ |
30,381 |
|
|
$ |
(60,532 |
) |
|
$ |
120,595 |
|
|
Add back (subtract): |
|
|
|
|
|
|
|
||||||||
|
Depreciation, depletion, amortization, and accretion |
|
114,479 |
|
|
|
28,709 |
|
|
|
1,417 |
|
|
|
144,605 |
|
|
Exploration and impairment expense |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Unrealized (gains) losses on derivatives, net |
|
(24,142 |
) |
|
|
(21,925 |
) |
|
|
— |
|
|
|
(46,067 |
) |
|
Forward month gas settlement (1) |
|
(10,200 |
) |
|
|
— |
|
|
|
— |
|
|
|
(10,200 |
) |
|
Interest expense, net |
|
16,909 |
|
|
|
31,070 |
|
|
|
(509 |
) |
|
|
47,470 |
|
|
Interest expense, related parties |
|
— |
|
|
|
15,123 |
|
|
|
— |
|
|
|
15,123 |
|
|
Equity-based compensation expense |
|
4,526 |
|
|
|
1,859 |
|
|
|
2,695 |
|
|
|
9,080 |
|
|
Impairment of asset held for sale |
|
2,446 |
|
|
|
— |
|
|
|
— |
|
|
|
2,446 |
|
|
Income tax expense |
|
— |
|
|
|
— |
|
|
|
22,449 |
|
|
|
22,449 |
|
|
Other nonrecurring transactions |
|
4,165 |
|
|
|
4,898 |
|
|
|
12,763 |
|
|
|
21,826 |
|
|
Adjusted EBITDAX, non-GAAP |
|
258,929 |
|
|
|
90,115 |
|
|
|
(21,717 |
) |
|
|
327,327 |
|
|
(Deduct) add: Adjusted EBITDAX attributable to Noncontrolling Interests (2) |
|
— |
|
|
|
(23,521 |
) |
|
|
(1,373 |
) |
|
|
(24,894 |
) |
|
Adjusted EBITDAX attributable to BKV, non-GAAP |
$ |
258,929 |
|
|
$ |
66,594 |
|
|
$ |
(23,090 |
) |
|
$ |
302,433 |
|
|
________________________________________________________ |
|
(1) Natural gas derivative contracts settle and are realized in the month prior to the production covered by the contract. This adjustment removes the timing difference between the settlement date and the underlying production month that is hedged. |
|
(2) Non-GAAP financial measure, see “Supplemental Non-GAAP Financial Measures” below for reconciliations to the most comparable financial measures in accordance with GAAP. |
|
(3) The nine months ended September 30, 2026 reflects the correction of $3.0 million previously reflected in Forward month gas settlement and impacting Adjusted EBITDAX for the six months ended June 30, 2026. The correction did not affect the Company’s GAAP financial statements or previously reported GAAP results. As a result, Adjusted EBITDAX for the nine months ended September 30, 2026 may not equal the sum of previously reported six months ended June 30, 2026 and three months ended September 30, 2026. |
Segment Operational Results – Third Quarter 2026
Power Segment
BKV has made tangible commercial progress toward securing long-term PPAs across its power development platform. The Company announced an equipment supply agreement for approximately 1.2 GW of CCGT capacity, supported by a backstop agreement with an investment-grade hyperscaler. The Power JV also entered into a cost reimbursement agreement with a leading Frontier AI Lab, supporting an increase in planned modular generation at the Temple Energy Complex to 400 MW from 200 MW. These agreements represent important commercial milestones as BKV advances discussions toward long-term PPAs. With the additional modular generation equipment, the Company’s existing and planned power generation assets now represent approximately 3.3 GW of potential capacity.
The Temple I and II facilities continued to demonstrate strong operational reliability during the quarter, achieving a combined capacity factor of 71.7% and total generation of 2,317 GWh. Plant availability remained high with an average equivalent availability factor of 96% reflecting continued operational execution across both facilities.
Despite record power demand across ERCOT during the quarter, wholesale power prices and spark spreads were below expectations, as increased renewable generation and battery storage moderated peak pricing. BKV remains confident in the long-term fundamentals of the ERCOT market, supported by a substantial backlog of large-load interconnection requests and anticipated demand growth.
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
||||||||||||
|
|
|
2026 |
|
|
|
2025 |
|
|
|
2026 |
|
|
|
2025 |
|
|
Temple I capacity factor |
|
75.9 |
% |
|
|
71.1 |
% |
|
|
69.9 |
% |
|
|
60.2 |
% |
|
Temple II capacity factor |
|
67.4 |
% |
|
|
67.5 |
% |
|
|
65.9 |
% |
|
|
58.8 |
% |
|
Total power generation (GWh) |
|
2,317 |
|
|
|
2,246 |
|
|
|
6,520 |
|
|
|
5,746 |
|
|
Average power price ($/MWh) (including derivatives) |
$ |
40.37 |
|
|
$ |
43.89 |
|
|
$ |
44.03 |
|
|
$ |
46.77 |
|
|
Average natural gas cost ($/Mcf) |
$ |
2.64 |
|
|
$ |
2.88 |
|
|
$ |
3.09 |
|
|
$ |
3.24 |
|
|
Average spark spread ($/MWh) |
$ |
21.18 |
|
|
$ |
23.32 |
|
|
$ |
21.88 |
|
|
$ |
23.73 |
|
|
|
|
|
|
|
|
|
|
||||||||
|
Summary of Power Operations |
|
|
|
|
|
|
|
||||||||
|
($ Millions) |
|
|
|
|
|
|
|
||||||||
|
Total revenues, net |
$ |
170.8 |
|
|
$ |
178.8 |
|
|
$ |
457.7 |
|
|
$ |
413.3 |
|
|
Depreciation and amortization |
$ |
9.5 |
|
|
$ |
9.5 |
|
|
$ |
30.8 |
|
|
$ |
28.7 |
|
|
Operating expenses |
$ |
122.8 |
|
|
$ |
117.2 |
|
|
$ |
350.4 |
|
|
$ |
311.9 |
|
|
Income from operations |
$ |
38.5 |
|
|
$ |
52.1 |
|
|
$ |
76.5 |
|
|
$ |
72.7 |
|
|
Interest expense, net |
$ |
(13.1 |
) |
|
$ |
(15.3 |
) |
|
$ |
(39.8 |
) |
|
$ |
(46.2 |
) |
|
Other income |
$ |
1.3 |
|
|
$ |
0.6 |
|
|
$ |
2.7 |
|
|
$ |
3.9 |
|
|
Net income |
$ |
26.7 |
|
|
$ |
37.4 |
|
|
$ |
39.4 |
|
|
$ |
30.4 |
|
|
Net income (loss) attributable to BKV |
$ |
18.4 |
|
|
$ |
26.8 |
|
|
$ |
23.3 |
|
|
$ |
20.1 |
|
Upstream-Midstream Segment
BKV’s Upstream-Midstream business had another strong quarter of operational performance. Production came in above the high end of the guidance range, excluding the contribution from the Barnett acquisition completed during the quarter, while development capital expenditures came in below the low end of the guided range. The production outperformance was primarily driven by continued new well development outperformance and peer-leading base decline management. Additionally, the Barnett acquisition completed on September 15, 2026, provided an incremental production contribution during the quarter. The Upstream-Midstream business continues to outperform on multiple levels and generate strong cash flow, while continued improvements in capital efficiency support disciplined investment across the Company’s broader platform.
The Company completed its first full quarter of internally marketing all of its natural gas production. Bringing marketing in-house expands BKV’s closed-loop strategy and creates potential margin opportunities through retention of previously outsourced marketing economics, optimization of delivery points, transportation and basis, enhanced commercial execution and, over time, power-linked optimization and decarbonization monetization levers.
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
||||||||||||
|
|
|
2026 |
|
|
|
2025 |
|
|
|
2026 |
|
|
|
2025 |
|
|
Production |
|
|
|
|
|
|
|
||||||||
|
Net production per day (MMcfe/d) |
|
981.2 |
|
|
|
828.5 |
|
|
|
961.7 |
|
|
|
800.4 |
|
|
Natural gas (MMcf) |
|
72,839 |
|
|
|
60,325 |
|
|
|
213,703 |
|
|
|
172,776 |
|
|
NGL (MBbls) |
|
2,861 |
|
|
|
2,621 |
|
|
|
8,001 |
|
|
|
7,498 |
|
|
Oil (MBbls) |
|
44 |
|
|
|
29 |
|
|
|
139 |
|
|
|
126 |
|
|
Total (MMcfe) |
|
90,269 |
|
|
|
76,225 |
|
|
|
262,543 |
|
|
|
218,520 |
|
|
Natural Gas ($/Mcf) |
|
|
|
|
|
|
|
||||||||
|
Average NYMEX Henry Hub price |
$ |
2.95 |
|
|
$ |
3.07 |
|
|
$ |
3.63 |
|
|
$ |
3.39 |
|
|
Differential |
$ |
(0.64 |
) |
|
$ |
(0.57 |
) |
|
$ |
(0.99 |
) |
|
$ |
(0.64 |
) |
|
Average realized prices, excluding derivatives |
$ |
2.31 |
|
|
$ |
2.50 |
|
|
$ |
2.64 |
|
|
$ |
2.75 |
|
|
Average realized prices, including derivatives |
$ |
2.90 |
|
|
$ |
2.81 |
|
|
$ |
2.94 |
|
|
$ |
2.83 |
|
|
NGLs ($/Bbl) |
|
|
|
|
|
|
|
||||||||
|
Average realized prices, excluding derivatives |
$ |
23.05 |
|
|
$ |
15.17 |
|
|
$ |
21.46 |
|
|
$ |
16.82 |
|
|
Average realized prices, including derivatives |
$ |
20.13 |
|
|
$ |
15.64 |
|
|
$ |
19.36 |
|
|
$ |
16.29 |
|
|
Oil ($/Bbl) |
|
|
|
|
|
|
|
||||||||
|
Average realized prices |
$ |
84.95 |
|
|
$ |
59.62 |
|
|
$ |
81.79 |
|
|
$ |
61.32 |
|
|
Average Operating Cash Costs per Mcfe |
|
|
|
|
|
|
|
||||||||
|
Lease operating and workover |
$ |
0.52 |
|
|
$ |
0.49 |
|
|
$ |
0.52 |
|
|
$ |
0.49 |
|
|
Taxes other than income |
$ |
0.12 |
|
|
$ |
0.15 |
|
|
$ |
0.15 |
|
|
$ |
0.16 |
|
|
Gathering and transportation costs |
$ |
0.78 |
|
|
$ |
0.81 |
|
|
$ |
0.79 |
|
|
$ |
0.83 |
|
|
Total |
$ |
1.42 |
|
|
$ |
1.45 |
|
|
$ |
1.46 |
|
|
$ |
1.48 |
|
Carbon Capture Utilization and Sequestration (“CCUS”)
During the third quarter, BKV expanded its operational CCUS portfolio to four projects following the acquisition of an additional injection facility as part of its upstream Barnett acquisition. Together, these projects represent an annual CO₂ sequestration run rate of approximately 350,000 metric tons. Since commencing initial injection at Barnett Zero in November 2023, BKV has significantly expanded its operating footprint and sequestration capacity in less than three years.
Total injection volumes for the third quarter were 55,200 metric tons of CO₂, including 15 days of injection volumes of 5,400 metric tons from the acquired CCS injection well.
The Company remains focused on developing its broader CCUS pipeline in collaboration with its joint venture partner, CIP, and working closely with the State of Louisiana on its Class VI permit applications. The Company remains on track to achieve its targeted annual injection run rate of 1.5 million metric tons in 2028.
Liquidity and Debt
As of September 30, 2026, BKV had cash and cash equivalents of $619.6 million and restricted cash of $16.3 million related to the Power segment Temple Term Loan Facility. Total principal debt as of September 30, 2026 was $2.0 billion, with total net debt of $1.4 billion. Total principal debt was made up of the 2031 Convertible Senior Notes of $575.0 million, the 2030 Senior Notes of $500.0 million, an RBL balance of $240.0 million, the Promissory Note of $46.0 million, and Power segment debt of $676.7 million. Power segment debt included $162.0 million of borrowings under the Temple I Loan Agreements, $370.3 million of borrowings under the Temple Term Loan Facility, Power Equipment Financing Facility of $84.4 million, and a Temple Revolving Facility balance of $60.0 million.
During the nine months ended September 30, 2026, BKV’s JV partners contributed an aggregate $78.8 million, comprised of $65.4 million from Banpu Power US Corporation (“BPPUS”) and $13.4 million from CIP. BKV expects continued contributions through year end.
As of September 30, 2026, total liquidity for BKV was $1.2 billion, which consisted of $619.6 million in cash and cash equivalents and $544.5 million available capacity under the Company’s RBL. RBL availability as of September 30, 2026, was based on the elected commitment amount of $800.0 million, less an outstanding balance of $240.0 million and $15.5 million of letters of credit.
Fourth Quarter 2026 Guidance
|
|
Q4 2026 |
|
Accrued Capital Expenditures and Net Production ($ Millions) |
|
|
Development (1) |
$55 – $75 |
|
Power – Strategic Capital & Investments + Maintenance (1), (2) |
$240 – $270 |
|
CCUS and other (2) |
$20 – $40 |
|
Total capital expenditures |
$315 – $385 |
|
|
|
|
Net production (MMcfe/d) |
1,010 – 1,030 |
|
|
|
|
Per Unit Operating Costs ($/Mcfe) |
|
|
Lease operating and workover |
$0.52 – $0.56 |
|
Gathering, compression, processing, and transport (GCPT) |
$0.75 – $0.79 |
|
Upstream general and administrative (excl. stock comp) |
$0.20 – $0.25 |
|
|
|
|
Other General and Administrative Costs ($ Millions) |
|
|
General and administrative (Power, CCUS, & Other) |
$15 – $19 |
|
General and administrative (stock comp) |
$4 – $6 |
|
|
|
|
Commodity Prices |
|
|
Average natural gas differential (3), (4) |
$(0.70) – $(0.80) |
|
NGL % of WTI |
~ 31% |
|
|
|
|
Power ($ Millions) |
|
|
Power Adjusted EBITDAX |
$10 – $30 |
|
____________________________________________ |
|
(1) 2026 maintenance capital: Upstream ~$200 million; Power ~$5 million. Before consideration of the Barnett acquisition completed on September 15, 2026. |
|
(2) Expecting $80 million – $100 million in JV partner capital contributions for the fourth quarter of 2026 collectively for Power and CCUS. |
|
(3) Differential includes $0.15/Mcfe – $0.20/Mcfe of gathering, compression, processing, and transport. |
|
(4) Differential includes $0.15/Mcfe – $0.25/Mcfe of ethane rejection impacts. |
Third Quarter 2026 Earnings Conference Call
The Company plans to host a conference call to discuss results today, November 5, 2026 at 10 AM ET.
Contacts
Investor Contacts:
Michael Hall
BKV Corporation
Vice President, Investor Relations
InvestorRelations@bkvcorp.com
Patrick Freeman
BKV Corporation
Senior Director, Investor Relations
InvestorRelations@bkvcorp.com
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