Financial Data and Key Metrics Changes - BKV reported a net income of $76.9 million for Q3 2025, or $0.90 per diluted share, with adjusted earnings of $0.50 per diluted share [24] - Combined adjusted EBITDA contributable to BKV, including the proportionate share of the Power JV adjusted EBITDA, was $91.8 million, representing a 50% increase from Q3 2024 [25] - Accrued capital expenditures totaled $79.6 million for the quarter, 6% below the midpoint of guidance [25] Business Line Data and Key Metrics Changes - The upstream business delivered a 9% year-over-year production growth, with volumes up 2% sequentially [12] - The power business's adjusted EBITDA was $20.4 million, with gross Power JV EBITDA at $40.9 million [24] - The carbon capture business is on track to achieve an injection rate of 1 million tons per annum by year-end 2027 [8][20] Market Data and Key Metrics Changes - Power prices averaged $46.29 per megawatt hour during the quarter, with natural gas costs averaging $2.87 per MMBTU, resulting in an average spark spread of $25.82 compared to $20.82 a year ago [24] - Texas continues to experience unprecedented load growth driven by AI data centers and industrial expansion [5][6] Company Strategy and Development Direction - The acquisition of a majority stake in the Power JV is seen as a critical step to advancing BKV's closed-loop strategy, enhancing growth flexibility [5][22] - The company aims to consolidate results and align strategy to create long-term value through controlling the Power JV [5][6] - BKV's closed-loop strategy combines gas, power, and carbon capture, positioning the company uniquely in the energy market [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the power business, citing strong fundamentals in the ERCOT market and ongoing discussions with hyperscalers and data centers [5][6] - The company anticipates strong free cash flow generation in 2026, driven by both upstream and power businesses [50][51] - Management highlighted the positive impact of Texas's Senate Bill 6 on streamlining interconnection processes and enhancing grid reliability [35][36] Other Important Information - BKV successfully closed the Bedrock acquisition, expanding its operational footprint in the Fort Worth Basin [9][10] - The company issued $500 million of 7.5% senior notes, marking a significant milestone in its capital market strategy [26] Q&A Session Summary Question: How will gaining control of the power unit change conversations with hyperscalers? - Management indicated that controlling the JV allows for seamless integration of energy solutions, enhancing discussions with hyperscalers and data centers [32] Question: How might SB6 impact conversations with hyperscalers? - Management noted that SB6 aims to streamline interconnection requests, which could positively impact discussions with hyperscalers and data centers [34][36] Question: Will the current market dynamics ease further consolidation in the Barnett? - Management agreed that current multiples and their position in the Barnett allow for continued accretive transactions [40][42] Question: How does the company plan to manage capital allocation across its closed-loop strategy? - Management highlighted significant free cash flow generation and flexibility in capital allocation for growth opportunities [49][50] Question: Are there additional projects in the works for CO2 sequestration? - Management confirmed that there are several projects in the pipeline that could contribute to exceeding the 1 million tons per year target by 2027 [53][55]

Company Performance & Strategy - BKV's corporate 1-year decline rate is 99% for all PDP reserves including impact from the Bedrock Acquisition[11] - BKV aims to increase ownership in Power JV to 75%[18] - BKV's assets are aligned with the fastest-growing energy markets in the US[16] - BKV is the largest producer in the Barnett with potential to expand[67] Financial Highlights (Q3 2025) - Combined Adjusted EBITDAX attributable to BKV was $918 million[35] - Total Accrued CAPEX was $796 million, against a guidance of $65-$105 million[35] - Adjusted Free Cash Flow Attributable to BKV was $(106) million[35] - Net Leverage was 132x as of September 30, 2025[35] CCUS Projects - Barnett Zero is operational with a projected annual average injection of 183 ktpy (kilotonnes per year)[148] - Eagle Ford Project is at FID (Final Investment Decision) stage with a projected annual average injection of 90 ktpy[148] - Cotton Cove is at FID stage with a projected annual average injection of 32 ktpy[148]

Core Insights - BKV reported quarterly earnings of $0.5 per share, significantly exceeding the Zacks Consensus Estimate of $0.13 per share, and showing a turnaround from a loss of $0.27 per share a year ago, resulting in an earnings surprise of +284.62% [1] - The company achieved revenues of $277.86 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 38.93% and increasing from $173.09 million year-over-year [2] - BKV has consistently surpassed consensus EPS estimates over the last four quarters, indicating strong performance [2] Financial Performance - The earnings surprise of +284.62% reflects a strong performance compared to the previous quarter's expected earnings of $0.15 per share, where the actual earnings were $0.39, resulting in a surprise of +160% [1] - The current consensus EPS estimate for the upcoming quarter is $0.13, with projected revenues of $266 million, while the estimate for the current fiscal year is $1.06 on revenues of $907 million [7] Market Position - BKV shares have increased by approximately 6.8% since the beginning of the year, underperforming compared to the S&P 500's gain of 14.4% [3] - The Zacks Rank for BKV is currently 2 (Buy), indicating expectations for the stock to outperform the market in the near future [6] Industry Context - The Alternative Energy - Other industry, to which BKV belongs, is currently ranked in the bottom 36% of over 250 Zacks industries, suggesting potential challenges ahead [8] - The performance of BKV's stock may be influenced by the overall outlook for the industry, as empirical research indicates a strong correlation between stock movements and earnings estimate revisions [5][8]

Financial Performance - Net income attributable to BKV for Q3 2025 was $76.9 million, or $0.90 per diluted share, compared to $12.9 million in Q3 2024[5]. - Adjusted Net Income for Q3 2025 was $42.5 million, with Combined Adjusted EBITDAX attributable to BKV at $91.8 million[8]. - Total revenues for Q3 2025 were $277.9 million, including realized hedging gains of $19.7 million[8]. - BKV Corporation reported total revenues of $277.9 million for the three months ended September 30, 2025, a 60.5% increase from $173.1 million in the same period of 2024[43]. - Natural gas, NGL, and oil sales reached $192.4 million in Q3 2025, up 51.6% from $127.0 million in Q3 2024[43]. - The company achieved a net income of $76.9 million for the three months ended September 30, 2025, compared to a net income of $12.9 million in the same period of 2024[43]. - Operating expenses totaled $195.6 million for Q3 2025, slightly up from $194.1 million in Q3 2024[43]. - Net income for the nine months ended September 30, 2025, was $103,782 thousand, a significant improvement from a net loss of $85,413 thousand in the same period of 2024[45]. - Total revenue for Q3 2025 reached $202,968,000, compared to $137,779,000 in Q3 2024, representing a year-over-year growth of 47.3%[70]. - Total revenue attributable to BKV for the first nine months of 2025 was $641,318,000, up from $437,056,000 in 2024, reflecting a growth of 46.6%[70]. Production and Operations - Average net production for Q3 2025 was 828.5 MMcfe/d, with guidance for Q4 2025 indicating a range of 885-935 MMcfe/d, reflecting a ~10% increase[5]. - Total hydrocarbon production for Q3 2025 was 828.5 MMcfe/d, an increase of 8.5% from 762.6 MMcfe/d in Q3 2024[25]. - Power JV's total generation from Temple plants was 2,246 GWh in Q3 2025, with an average power pricing of $46.29/MWh[16]. - Total power generation for Q3 2025 was 2,246 GWh, a decrease from 2,369 GWh in Q3 2024, with an average power price of $46.29/MWh compared to $35.30/MWh in Q3 2024[21]. - Temple I capacity factor for Q3 2025 was 71.1%, down from 73.2% in Q3 2024, while Temple II capacity factor was 67.5%, down from 72.3% in the same period[21]. Acquisitions and Investments - BKV closed the acquisition of Bedrock Energy Partners' Barnett Shale assets on September 29, 2025, and agreed to acquire an additional 25% interest in the Power JV, increasing ownership to 75%[5]. - BKV closed the acquisition of Bedrock Energy Partners' Barnett Shale assets, acquiring approximately 99,000 net acres and 108 MMcfe/d of production[27]. - The company executed a $500 million Senior Notes offering at 7.5% due in 2030, aimed at funding acquisitions and supporting integration efforts[5]. - BKV maintains FY25 Capex guidance of $290 - $350 million for Development, CCUS, and other initiatives[5]. Cash Flow and Liquidity - Net cash provided by operating activities for Q3 2025 was $74.5 million, with accrued capital expenditures of $79.6 million[5]. - As of September 30, 2025, total liquidity for BKV was $868.1 million, consisting of $83.1 million in cash and $785.0 million available under the RBL[32]. - Cash flows from investing activities showed a net outflow of $435,043 thousand, contrasting with a net inflow of $80,629 thousand in the previous year[47]. - The company reported net cash provided by financing activities of $329,972 thousand, compared to a net outflow of $289,156 thousand in the prior year[47]. - The company has significant derivative activities, with 22,567,367 MMBtu of natural gas swaps at an average price of $3.58, resulting in a fair value loss of $233 thousand[49]. Adjusted Metrics and Non-GAAP Measures - The company’s adjusted net income (loss) is defined as net income (loss) before certain non-cash and nonrecurring items, providing a clearer view of operational performance[53]. - Adjusted EPS is calculated based on adjusted net income (loss) divided by diluted weighted average common shares outstanding, allowing for better performance evaluation[54]. - The company has adjusted its non-GAAP measures to exclude the proportionate share of Adjusted EBITDAX and Adjusted Free Cash Flow attributable to noncontrolling interests starting from Q2 2025[52]. - Adjusted Free Cash Flow for Q3 2025 was $(16,239,000), a decline from $19,618,000 in Q3 2024[70]. - Adjusted Free Cash Flow Margin for Q3 2025 was (8.0)%, down from 14.2% in Q3 2024[70]. Environmental Initiatives - The Barnett Zero Project sequestered approximately 43,900 metric tons of CO2 equivalent in Q3 2025, contributing to a total of 286,500 metric tons since its start in November 2023[22]. - BKV forecasts an annual injection rate of 1 million metric tons of CO2 equivalent by the end of 2027, reinforcing its position in the CCUS sector[24].

Core Viewpoint - BKV Corporation has entered into a definitive purchase agreement to acquire a 50% interest in BKV-BPP Power, LLC from Banpu Power US Corporation, resulting in BKV owning 75% of the Power JV after the transaction closes [1]. Group 1 - BKV Corporation is acquiring half of Banpu Power US Corporation's interest in BKV-BPP Power, LLC [1]. - The transaction will increase BKV's ownership in the Power JV to 75% [1].

Core Insights - BKV Corporation's stock has increased by 19% over the past year, driven by strong business performance and a 23% rise in natural gas prices [1] Company Performance - The significant stock surge is attributed to the company's robust operational results [1] Market Context - The rally in natural gas prices, which increased by 23%, has positively impacted BKV Corporation's stock performance [1]

Core Viewpoint - BKV Corporation's share price experienced a significant decline of 14.95% from October 3 to October 10, 2025, amidst broader market downturns and rising trade tensions between the US and China [1][3]. Company Overview - BKV Corporation (NYSE:BKV) is engaged in the production and sale of natural gas, primarily operating in the Barnett Shale in Texas and the Marcellus Shale in Pennsylvania [2]. Recent Performance - The stock of BKV Corporation had previously surged over 14% due to a sharp increase in natural gas prices, but faced a heavy drop this week as part of a wider market decline [3]. - The recent downturn is attributed to profit-taking by investors amid concerns of an economic slowdown and a 6.5% drop in natural gas prices [4]. Financial Activities - BKV Corporation has filed a shelf registration prospectus to offer up to $1 billion in mixed securities and to register 63.88 million shares of common stock for sale by the selling stockholder [4].

Core Viewpoint - BKV is experiencing a bullish rebound, breaking past a new buy point as oil prices have rallied, indicating potential growth in the natural gas sector [1]. Company Overview - BKV is a Denver-based company focused on U.S. onshore natural gas exploration, development, and production [1]. - The company operates four business lines: natural gas production, natural gas gathering, processing, and transportation, and power generation [1]. Market Performance - BKV stock is featured on Investor's Business Daily's IPO Leaders screen, highlighting its strong market performance [1]. - The stock has received a technical rating upgrade, indicating rising relative price strength [4].

Core Viewpoint - BKV Corporation has announced the pricing of its private offering of $500 million in senior notes due 2030, indicating a strategic move to raise capital for future investments [1] Group 1: Offering Details - BKV Upstream Midstream, LLC, a wholly owned subsidiary of BKV, is the issuer of the $500 million aggregate principal of 7.500% senior notes [1] - The offering is expected to close on or about September 26, 2025, subject to customary closing conditions [1] Group 2: Use of Proceeds - The issuer intends to use the net proceeds from the offering for general corporate purposes [1]

[Executive Summary & Strategic Updates](index=1&type=section&id=Executive%20Summary%20%26%20Strategic%20Updates) BKV reported strong Q2 2025 results, updated FY guidance, and announced a strategic acquisition and CSG deal [Second Quarter 2025 Highlights](index=1&type=section&id=Second%20Quarter%202025%20Highlights) BKV reported strong Q2 2025 financial results, including net income of $104.6 million and combined Adjusted EBITDAX of $88.2 million, alongside operational achievements like 811.0 MMcfe/d average net production and significant carbon sequestration - Net income attributable to BKV: **$104.6 million** or **$1.23 per diluted share**[4](index=4&type=chunk) - Combined Adjusted EBITDAX attributable to BKV: **$88.2 million**[4](index=4&type=chunk) - Average net production: **811.0 MMcfe/d**[4](index=4&type=chunk) - Barnett Zero quarterly sequestration: **~30,400 metric tons of CO2 equivalent**[4](index=4&type=chunk) - Net leverage ratio: **0.63x**[4](index=4&type=chunk) [FY 2025 Updated Guidance Highlights](index=1&type=section&id=FY%202025%20Updated%20Guidance%20Highlights) BKV updated its full-year 2025 guidance, projecting increased net production and decreased capital expenditures at the mid-point, reflecting improved operational efficiency - Net production: **790-810 MMcfe/d**, reflecting a **4% increase** at the mid-point[4](index=4&type=chunk) - Capital expenditures: **$290-$350 million**, reflecting a **9% decrease** at the mid-point[4](index=4&type=chunk) [Strategic Barnett Shale Acquisition Highlights](index=1&type=section&id=Strategic%20Barnett%20Shale%20Acquisition%20Highlights) BKV announced a definitive agreement to acquire Bedrock Production, LLC's Barnett Shale assets for approximately $370 million, significantly expanding its acreage, production, and reserves in the region, with expected accretion to cash flow per share in 2026 - Acquisition value: Approximately **$370 million**[4](index=4&type=chunk) - Expected additions: **~97,000 net acres**, **~108 MMcfe/d** of production, **1,121 producing locations**, nearly **1 Tcfe** of 1P reserves, **~50 new drill locations**, **~80 refrac locations**[4](index=4&type=chunk) - Strategic benefits: **Extends BKV's lead in Barnett**, **improves inventory**, **enables longer laterals**, **potential for LOE reduction**[28](index=28&type=chunk) - Funding: Combination of cash and up to **$110.0 million** in BKV common stock, funded from cash on hand and existing RBL capacity[4](index=4&type=chunk)[5](index=5&type=chunk)[29](index=29&type=chunk) - Expected closing: **Early Q4 2025**[5](index=5&type=chunk)[29](index=29&type=chunk) [Carbon Sequestered Gas Deal Highlights](index=2&type=section&id=Carbon%20Sequestered%20Gas%20Deal%20Highlights) BKV signed a significant Carbon Sequestered Gas (CSG) deal with Gunvor, a leading commodities trader, committing Gunvor to purchase, market, and sell CSG, leveraging BKV's growing CCUS business for a premium carbon-neutral energy product - Partner: **Gunvor**, a leading commodities trader[5](index=5&type=chunk)[9](index=9&type=chunk) - Product: **Carbon Sequestered Gas (CSG)**, a differentiated, premium commodity market product supported by BKV's growing CCUS business[5](index=5&type=chunk)[9](index=9&type=chunk) - Commitment: Gunvor to purchase, market, and sell CSG, covering up to **10,000 MMbtu/d**[9](index=9&type=chunk) [Management Commentary](index=2&type=section&id=Management%20Commentary) CEO Chris Kalnin highlighted the advancement of BKV's closed-loop strategy, strong upstream performance, and strategic expansion through the Bedrock acquisition and the Gunvor CSG deal. CFO David Tameron emphasized financial discipline, free cash flow funding growth initiatives, and the company's position to capitalize on strong macroeconomic trends - CEO Chris Kalnin: "advancing our **differentiated closed loop strategy**, while also performing exceptionally well in each of our base businesses"[5](index=5&type=chunk) - CEO Chris Kalnin: Upstream business delivered **production ahead of plan** with **capital spend at the lower end of the guided range**, driven by drilling efficiencies and improved designs[5](index=5&type=chunk) - CFO David Tameron: "**Adjusted Free Cash Flow** from our upstream business fully funding our growth initiatives in CCUS and Power"[14](index=14&type=chunk) - CFO David Tameron: Company is positioned to "take advantage of the currently **strong macroeconomic backdrop** for natural gas, power, and CCUS"[14](index=14&type=chunk) [Financial Performance](index=2&type=section&id=Financial%20Performance) BKV achieved significant financial improvements in Q2 and YTD 2025, with revenue growth and positive net income [Second Quarter 2025 Financial Results](index=2&type=section&id=Financial%20Results_Q2_2025) BKV reported total revenues of $322.0 million and net income attributable to BKV of $104.6 million for Q2 2025, a significant improvement from a net loss in Q2 2024, primarily driven by unrealized hedging gains. Adjusted Net Income was $32.8 million - Total revenues and other operating income: **$322.0 million** (including **$9.3 million** realized hedging gains)[6](index=6&type=chunk) - Net income attributable to BKV: **$104.6 million** (**$1.23 per diluted share**), including **$102.9 million** unrealized hedging gains[6](index=6&type=chunk) - Adjusted Net Income: **$32.8 million**[6](index=6&type=chunk) - Combined Adjusted EBITDAX attributable to BKV: **$88.2 million**[6](index=6&type=chunk) - Average realized natural gas price (excluding derivatives): **$2.67/MMBtu**[7](index=7&type=chunk) - Average realized equivalent price (including derivatives): **$2.83/Mcfe**[7](index=7&type=chunk) [Year-to-Date 2025 Financial Results](index=2&type=section&id=Financial%20Results_YTD_2025) For the first six months of 2025, BKV's total revenues were $400.9 million, with net income attributable to BKV of $25.9 million, a substantial improvement from a net loss in the prior year period. Adjusted Net Income was $60.4 million - Total revenues and other operating income: **$400.9 million** (including **$8.9 million** realized hedging losses)[8](index=8&type=chunk) - Net income attributable to BKV: **$25.9 million** (**$0.30 per diluted share**), including **$31.1 million** unrealized hedging losses[8](index=8&type=chunk) - Adjusted Net Income: **$60.4 million**[8](index=8&type=chunk)[10](index=10&type=chunk) - Combined Adjusted EBITDAX attributable to BKV: **$188.9 million**[10](index=10&type=chunk) - Average realized natural gas price (excluding derivatives): **$2.88/MMBtu**[11](index=11&type=chunk) - Average realized equivalent price (including derivatives): **$2.86/Mcfe**[11](index=11&type=chunk) [Key Financial and Operational Metrics](index=3&type=section&id=Key%20Financial%20and%20Operational%20Metrics) The company demonstrated significant improvements in profitability metrics year-over-year for both Q2 and YTD 2025, with Net Income and Adjusted Net Income turning positive from losses. However, Adjusted Free Cash Flow attributable to BKV decreased compared to the prior year Key Financial and Operational Metrics | Metric | Q2 2025 ($M) | Q2 2024 ($M) | YTD 2025 ($M) | YTD 2024 ($M) | | :--------------------------------------- | :------ | :------ | :------- | :------- | | Net income (loss) attributable to BKV | 104.6 | (59.7) | 25.9 | (98.3) | | Adjusted Net Income (Loss) | 32.8 | (22.8) | 60.4 | (39.3) | | Adjusted EBITDAX | 70.8 | 61.7 | 161.7 | 108.8 | | Combined Adjusted EBITDAX attributable to BKV | 88.2 | 74.8 | 188.9 | 132.2 | | Net income (loss) per diluted share ($) | 1.23 | (0.90) | 0.30 | (1.48) | | Adjusted EPS ($) | 0.39 | (0.34) | 0.71 | (0.59) | | Adjusted Free Cash Flow attributable to BKV | 2.1 | 19.3 | 8.2 | 66.6 | | Total capital expenditures (accrued) | 78.8 | 14.9 | 136.8 | 32.9 | | Power JV Net income (loss) | 18.1 | (30.5) | (1.0) | (45.9) | | Power JV Adjusted EBITDA | 35.5 | 26.3 | 55.1 | 46.8 | [Operational Review](index=4&type=section&id=Operational%20Review) BKV's operational review highlights improved Power JV performance, strategic CCUS advancements, and strong upstream production bolstered by the Bedrock acquisition [Power JV Operations](index=4&type=section&id=Power%20JV) The Power JV's Temple