Financial Data and Key Metrics Changes - BKV reported a combined adjusted EBITDA of $109 million in Q4 2025 and $390 million for the full year, representing a 19% increase quarter-over-quarter and a 47% increase year-over-year [31] - Adjusted net income for Q4 2025 was $27 million or $0.29 per diluted share, while for the full year it totaled $122 million or $1.40 per diluted share [31] - Total debt at year-end was $500 million, with a net leverage ratio of 0.9x and cash and cash equivalents totaling $199 million, leading to total liquidity of $984 million, more than double the prior year [33] Business Line Data and Key Metrics Changes - The upstream business achieved an 8% exit-to-exit organic production growth, with production outperforming guidance at 940 million cubic feet equivalent per day [16][18] - The power business maintained a combined average capacity factor of 57% in Q4 2025 and 59% for the full year, generating over 7,600 GWh [29] - The carbon capture business is targeting a new CCUS injection goal of 1.5 million tons per annum by 2028, up from the previous target of 1 million tons [10][27] Market Data and Key Metrics Changes - Power prices averaged $49.69 per MWh in Q4 2025, with natural gas costs averaging $3.55 per MMBtu, resulting in an average quarterly spark spread of $24.54 per MWh [29] - The average spark spread for the full year was $25.36, reflecting a 15% increase compared to the prior year [29] Company Strategy and Development Direction - BKV's strategy integrates natural gas production, power generation, and carbon capture into a closed-loop platform, aiming to serve the evolving needs of the energy market [36] - The company is focused on establishing long-term fixed offtake agreements and enhancing its power generation capacity through strategic investments [12][36] - BKV is actively engaging with state regulators and stakeholders to ensure investments in power and energy yield beneficial outcomes for Texas [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's growth trajectory, highlighting the successful integration of the Bedrock assets and the expected strong performance from upstream operations in 2026 [22][37] - The management noted that the regulatory environment in Texas is favorable for infrastructure investments, particularly in data center development [55] Other Important Information - The company executed its first-ever bond issuance, improving its capital structure and liquidity [28] - BKV's flagship Barnett Zero facility has achieved cumulative CO2 injection of over 311,000 metric tons since November 2023 [9] Q&A Session Summary Question: Strategic power growth CapEx - The power investments are strategic, aimed at establishing a private use network setup, which requires investment in infrastructure that will be recovered over the life of contracts [41][42] Question: Financial implications of CCUS business - The CCUS business is expected to generate EBITDA in the range of $48 per ton, with a target of 1.5 million tons run rate by 2028 due to increased commercial interest [46][47] Question: Power network and ERCOT discussions - The private use network will connect back to the grid, optimizing capital expenditures and addressing transmission congestion issues [53][54] Question: Comstock deal and injection ramp - The injection at Comstock facilities is expected to commence in 2028, with CapEx primarily spent in the last 12 months before injection [59] Question: PPA structure and capacity - A PPA is expected to cover about half of the Temple plant's capacity, with the remainder sold into merchant markets, structured like long-term offtake agreements [66] Question: Upper Barnett Appraisal program - The company plans to test one to two wells in the Upper Barnett this year, with expectations to delineate and confirm 100 wells [76]

Financial Data and Key Metrics Changes - BKV reported a combined adjusted EBITDA of $109 million for Q4 2025 and $390 million for the full year, representing a 19% increase quarter-over-quarter and a 47% increase year-over-year [28] - Adjusted net income for Q4 2025 was $27 million or $0.29 per diluted share, while for the full year it totaled $122 million or $1.40 per diluted share [28] - Total debt at year-end was $500 million, with a net leverage ratio of 0.9 times and cash and cash equivalents totaling $199 million [30] Business Line Data and Key Metrics Changes - The upstream business achieved an 8% exit-to-exit organic production growth, with production outperforming guidance at 940 million cubic feet equivalent per day [14][17] - The carbon capture business secured a partnership with Copenhagen Infrastructure Partners for up to $500 million in investments and aims for a near-term CCUS injection target of 1.5 million tons per annum by 2028 [8][9] - The power business maintained a combined average capacity factor of 57% in Q4 2025 and 59% for the full year, generating over 7,600 gigawatt hours [25] Market Data and Key Metrics Changes - Power prices averaged $49.69 per megawatt hour in Q4 2025, with natural gas costs averaging $3.55 per MMBtu, resulting in an average quarterly spark spread of $24.54 per megawatt hour [26] - Average spark spreads for the full year increased over 15% compared to the prior year, reflecting growing power demand in ERCOT [26] Company Strategy and Development Direction - BKV's strategy focuses on a closed-loop model integrating natural gas production, power generation, and carbon capture to create premium margins [12][33] - The company is positioned to benefit from Texas's growing data center and industrial market, with plans to secure long-term fixed offtake agreements [12][33] - The integration of the Bedrock acquisition is expected to enhance upstream operations and production capabilities [20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to create long-term, risk-adjusted shareholder value, citing strong momentum and a clear line of sight to growth [34] - The company anticipates continued strong performance in upstream operations and is optimistic about the carbon capture business's growth potential [21][33] Other Important Information - BKV's Cotton Cove and Eagle Ford facilities are on track for startup in the first half of 2026 [10] - The company plans to drill additional wells in the Upper Barnett and expects to delineate and confirm 100 wells this year [76] Q&A Session Summary Question: Can you speak to the strategic power growth CapEx? - Management confirmed that the power investments are strategic and necessary for establishing a private use network to support long-term offtake agreements [37][38] Question: What are the financial implications of the CCS business? - The CCS business is expected to have solid economics with an EBITDA margin around $48 per ton, driven by increased commercial interest [43][44] Question: Can you clarify the structure of a potential PPA? - Management indicated that a PPA would likely cover about half of the Temple plant's capacity, with the remainder sold into merchant markets [61][62] Question: What is the status of the East Texas project? - The East Texas project has reached internal FID and is on track for further development [91]

Financial Data and Key Metrics Changes - BKV reported a combined adjusted EBITDA of $109 million for Q4 2025 and $390 million for the full year, representing a 19% increase quarter-over-quarter and a 47% increase year-over-year [28] - Adjusted net income for Q4 2025 was $27 million or $0.29 per diluted share, while for the full year it totaled $122 million or $1.40 per diluted share [28] - Total capital expenditures were $102 million for Q4 2025 and $319 million for the full year, which was below the low end of the original guidance [28][29] Business Line Data and Key Metrics Changes - The upstream business achieved an 8% exit-to-exit organic production growth, with production outperforming guidance at 940 million cubic feet equivalent per day in Q4 2025 [13][16] - The carbon capture business secured a partnership with Copenhagen Infrastructure Partners for up to $500 million in joint investment opportunities, with a target of 1.5 million tons of CO2 injection per annum by 2028 [6][8] - The power business maintained a combined average capacity factor of 57% in Q4 2025 and 59% for the full year, generating over 7,600 gigawatt hours [25] Market Data and Key Metrics Changes - Power prices averaged $49.69 per megawatt hour in Q4 2025, with natural gas costs averaging $3.55 per MMBtu, resulting in an average quarterly spark spread of $24.54 per megawatt hour [26] - The average spark spread for the full year was $25.36, up over 15% compared to the prior year, indicating growing power demand in ERCOT [26] Company Strategy and Development Direction - BKV's strategy integrates natural gas production, power generation, and carbon capture into a closed-loop platform, positioning the company to meet evolving energy market needs [33] - The company is focused on enhancing its power joint venture, which is expected to improve earnings and cash flow while pursuing long-term power purchase agreements (PPAs) [33] - BKV aims to leverage its position in Texas to attract significant investments in data centers and infrastructure, capitalizing on the growing demand for low-carbon energy solutions [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to create long-term, risk-adjusted shareholder value, citing strong momentum and a clear line of sight to growth [34] - The company anticipates continued strong performance from its upstream operations, supported by the integration of recently acquired assets [19][20] - Management highlighted the importance of regulatory developments in Texas, which are expected to promote investments in the power grid and enhance project viability [51][52] Other Important Information - BKV's total debt at year-end was $500 million, with a net leverage ratio of 0.9 times and cash and cash equivalents totaling $199 million [29] - The company is actively managing its gas marketing strategy, with plans to enhance margins as contracts expire over the next few years [85] Q&A Session Summary Question: Can you elaborate on the strategic power growth CapEx? - Management indicated that the power investments are strategic and necessary for establishing a private use network, which includes infrastructure investments that will be recovered over the life of contracts [36][37] Question: What are the financial implications of the CCS business? - Management noted that the CCS business is expected to generate EBITDA in the range of $48 per ton, with confidence in raising the CO2 injection target due to increased commercial interest [42][43] Question: How is the private use network setup impacting PPA discussions? - Management confirmed that the private use network is designed to connect back to the grid, optimizing capital expenditures and addressing transmission congestion issues [49][50] Question: What is the timeline for the Comstock deal and associated CapEx? - Management expects to begin injecting CO2 in 2028, with the majority of CapEx spent in the last 12 months before injection [55][56] Question: Can you clarify the structure of the PPA for the Temple plant? - Management explained that a PPA would likely cover about half of the Temple plant's capacity, with the remainder sold into merchant markets, structured similarly to long-term LNG contracts [62][63]

BKV Corporation Investor Presentation February 2026 Important Notice and Disclaimer BKV Corporation Forward-Looking Statements. This presentation includes "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements, which are not historical facts, include statements regarding BKV's strategy, future operations, financial position, estimated revenue and losses, projected costs, prospects, plans and objectives of management and often conta ...

Financial Data and Key Metrics Changes - The company reported a net income of $105 million or $1.23 per diluted share, with an adjusted basis of $0.39 per share [27] - Combined adjusted EBITDAX attributable to the company was $88 million, driven by strong production and lower than forecasted lease operating expenses [27] - Accrued capital expenditures in the second quarter were $79 million, which was 12% below the midpoint of guidance [27] Business Line Data and Key Metrics Changes - The upstream segment delivered net production of 811 million cubic feet equivalent per day, exceeding the high end of guidance [14] - The company increased its 2025 production guidance midpoint to 800 million cubic feet equivalent per day, a nearly 4% increase over the previous midpoint [17] - The power business achieved a combined average capacity factor of 59% with total generation exceeding 1,900 gigawatt hours [25] Market Data and Key Metrics Changes - The ERCOT power market is projected to grow over 20% between 2024 and 2026, driven by various sectors including AI and data centers [6] - The macro backdrop for natural gas remains bullish, with new LNG facilities coming online [5] - Power prices averaged $4,634 per megawatt hour, with an average natural gas cost of $2.98 per MMBtu, resulting in an average spark spread of $25.15 [26] Company Strategy and Development Direction - The company is focused on expanding its leadership position in the Barnett Shale through the acquisition of Bedrock's assets, which will enhance reserve life and production capacity [9] - Continued investment in carbon capture and utilization (CCUS) is a strategic priority, with multiple projects progressing towards final investment decisions [20] - The company aims to leverage its unique combination of gas, power, and carbon capture to create premium value in the Texas energy market [11] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the long-term strength of the ERCOT power market and the expected ramp in Gulf Coast natural gas demand [6] - The passage of the One Big Beautiful Bill Act, which solidifies the 45Q tax credit, is seen as a significant win for the company and the industry [21] - The company is confident in achieving a million tons per year of CO2 injection run rate by 2027 [22] Other Important Information - The company has signed definitive agreements to acquire Bedrock's Barnett Shale assets for $370 million, expected to close in the third or early fourth quarter [18] - The acquisition is anticipated to add over 100 million cubic feet equivalent per day of production and nearly one trillion cubic feet of 1P reserves [19] - The company has reserved manufacturing slots for natural gas turbines, enhancing its ability to meet power needs for large data center companies [10] Q&A Session Summary Question: Can you provide insights on the benefits of purchasing adjacent acreage? - The acquisition allows for lengthening laterals and improving economics, with 50 Tier one and 20 Tier two lateral additions expected [41] Question: How do you see cost per foot evolving with longer laterals? - The company has reduced cost per foot by 11% and expects further improvements through enhanced completion designs and data analytics [44] Question: What are the initial focus areas of the CIP partnership? - The partnership focuses on advancing CCUS projects and leveraging relationships with emitters for project sourcing [58] Question: Can you elaborate on the carbon sequestered gas deal with Gunvor? - The initial volume is structured to establish a market, with potential for significant scaling in the future [66] Question: How do you see the power business performing for the remainder of the year? - The company remains confident in its guidance despite a slow start to the third quarter, with strong long-term demand dynamics expected [77]