BKV (NYSE:BKV) Q4 2025 Earnings call February 25, 2026 10:00 AM ET Company ParticipantsBetty Jiang - Managing Director of US Integrateds and E&Ps Equities ResearchChris Kalnin - CEODavid Tameron - CFOEric Jacobsen - President of UpstreamJacob Roberts - DirectorJonathan Mardini - Equity Research AssociateMichael Furrow - VP of PEP ResearchMichael Hall - VP of Investor RelationsMichael Scialla - Managing DirectorPhu Pham - Equity Research AssociateScott Gruber - Director of Oilfield Services and Equipment Res ...

BKV (NYSE:BKV) Q4 2025 Earnings call February 25, 2026 10:00 AM ET Company ParticipantsBetty Jiang - Managing Director of US Integrateds and E&Ps Equities ResearchChris Kalnin - CEODavid Tameron - CFOEric Jacobsen - President of UpstreamJacob Roberts - DirectorJonathan Mardini - Equity Research AssociateMichael Furrow - VP of PEP ResearchMichael Hall - VP of Investor RelationsMichael Scialla - Managing DirectorPhu Pham - Equity Research AssociateScott Gruber - Director of Oilfield Services and Equipment Res ...

BKV (NYSE:BKV) Q4 2025 Earnings call February 25, 2026 10:00 AM ET Speaker8Good morning, everyone, and welcome to BKV's fourth quarter and full year 2025 earnings conference call. As a reminder, today's call is being recorded, and at this time, all participants are in a listen-only mode. A brief question and answer session will follow the formal presentation. I would now like to turn the call over to Mr. Michael Hall, Vice President of Investor Relations. Please go ahead.Speaker6Thank you, operator. Good mo ...

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]