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].
Bkv Corporation(BKV) - 2025 Q3 - Quarterly Results