Latest news with #BKV
Yahoo
12-05-2025
- Business
- Yahoo
BKV Corp (BKV) Q1 2025 Earnings Call Highlights: Strategic Growth Amidst Challenges
Revenue: Not explicitly mentioned in the transcript. Net Loss: $79 million or a loss of $0.93 per diluted share. Adjusted Net Income: $35 million or $0.41 per diluted share. Combined Adjusted EBITDAX: Just over $100 million, including $90 million from upstream and $10 million from power. Power JV Adjusted EBITDA: $20 million, with BKV's 50% share being $10 million. Development CapEx: $48 million, 26% below the midpoint of the guided range. Total CapEx: $58 million, significantly below the low end of the first quarter guidance range of $75 million. Net Production: 761 million cubic feet equivalent per day. Cash and Cash Equivalents: Approximately $15 million at the end of the first quarter. Net Leverage Ratio: Less than 0.7 times net debt to adjusted EBITDAX. Adjusted Free Cash Flow: $6 million, or $22 million excluding premiums paid. Hedging Position: 58% of natural gas hedged at $3.44 per MMBTU for 2025. Warning! GuruFocus has detected 4 Warning Signs with BKV. Release Date: May 09, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. BKV Corp (NYSE:BKV) is positioned to grow rapidly in multiple economic scenarios, leveraging megatrends in energy. The company is one of the largest natural gas producers in Texas, with robust domestic and global demand projections. BKV's carbon capture business is accelerating, supported by strong bipartisan backing for the 45Q tax credit. The company's power joint ventures in Texas are well-positioned to capitalize on growing power demand, particularly from data centers. BKV's four business linesupstream, midstream, carbon capture, and power generationcreate premium margins and differentiated products. The macroeconomic landscape presents challenges such as persistent inflation and potential tariff impacts. Despite strong performance, BKV reported a net loss of $79 million in the first quarter. There are concerns about the resilience of the 45Q tax credit, although BKV remains confident in its robustness. The company faces potential supply chain disruptions, although it projects minimal impact. BKV's CCS projects require significant capital investment, and the pace and scale of these investments may shift. Q: With the recent JV with CIP and Comstock projects, do you think the momentum behind CCS projects is picking up, especially for gas processing projects? A: Christopher Kalnin, CEO: The momentum for carbon capture, particularly in natural gas processing, is strong. The 45Q tax credit is robust, with bipartisan support, enhancing U.S. energy competitiveness. BKV is leading in carbon capture, crucial for decarbonizing power for data centers. Eric Jacobsen, President of Upstream, added that the momentum around natural gas processing plants remains strong, with robust project economics and BKV establishing itself as a leader in this space. Q: Why weren't the Cotton Cove and Comstock projects included in the JV? A: Eric Jacobsen, President of Upstream: The exclusion was due to timing criteria. The first two projects are in the JV, with more to come in the FID and pre-FID phases. Q: Can you explain the unchanged CapEx for CCUS despite the new JV? A: Eric Jacobsen, President of Upstream: The JV with CIP allows us to optimize capital spend in CCS and diversify across other sectors. While the aggregate amount remains robust, near-term timing may shift. We remain committed to delivering on FID projects and achieving a 1 million ton per year CO2 injection rate by 2027. Q: What is your inclination to grow production given the current strip pricing? A: Eric Jacobsen, President of Upstream: We maintain a disciplined capital investment framework based on commodity price ranges. With current strip prices, we are committed to 2-3% growth for 2025. We are monitoring macroeconomic conditions closely and have the opportunity set to invest further if conditions remain favorable. Q: Can you elaborate on the funding mechanism for the JV with CIP? A: David Tameron, CFO: While specific upfront capital details are confidential, the JV provides significant flexibility and a funding mechanism. Capital will be drawn down over 12 to 24 months as projects are deployed. Projects will be contributed to the JV based on board approval. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
Yahoo
10-05-2025
- Business
- Yahoo
BKV, CIP form JV with $500m investment to develop CCUS projects
BKV, in partnership with Copenhagen Infrastructure Partners (CIP), has established a carbon capture joint venture (JV) investment aimed at advancing carbon capture, utilisation and sequestration (CCUS) projects across the US. CIP, through its Energy Transition Fund I, will invest $500m for up to a 49% stake in the JV. The JV will capitalise on BKV's expertise as an early pioneer in CCUS projects, complemented by CIP's experience in developing low-carbon infrastructure. The collaboration is set to enhance BKV's existing portfolio of CCUS initiatives, with the Barnett Zero and Eagle Ford projects already integrated into the venture. BKV will maintain operational control of the JV's projects, holding a 51% interest. BKV's CCUS portfolio, which includes several projects at different stages of development, is expected to contribute further to the JV as they progress. BKV CEO Chris Kalnin said: 'This strategic partnership with CIP, a world-scale asset manager of low-carbon infrastructure projects, further strengthens the economics of BKV's CCUS business while enabling the acceleration of its growth. 'Together, we will expand our pipeline of carbon capture, utilisation and sequestration projects to help meet the increasing demand for low-carbon energy solutions. By combining BKV's technical and operating expertise in developing and scaling CCUS projects with CIP's expansive network, project portfolio and experience in infrastructure development, we are well positioned to grow our CCUS business. This partnership accelerates our efforts to expand into adjacent markets, industries and geographies.' The Barnett Zero Project in north Texas has already sequestered more than 200,000 tonnes of CO₂ equivalent since its inception in November 2023. The Eagle Ford Project in south Texas is projected to commence initial injection by the first half of 2026, pending all necessary permits and agreements. Jefferies led the financial advisory for the transaction, while BakerHostetler provided legal counsel to BKV. Earlier in the month, BKV also entered into a preliminary agreement with Comstock Resources to explore carbon capture initiatives, further solidifying BKV's commitment to CCUS solutions within the energy sector. "BKV, CIP form JV with $500m investment to develop CCUS projects" was originally created and published by Offshore Technology, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Washington Post
09-05-2025
- Business
- Washington Post
BKV: Q1 Earnings Snapshot
DENVER — DENVER — BKV Corp. (BKV) on Friday reported a loss of $78.7 million in its first quarter. The Denver-based company said it had a loss of 93 cents per share. Earnings, adjusted for one-time gains and costs, came to 41 cents per share. The natural gas producer posted revenue of $78.8 million in the period.
Business Wire
09-05-2025
- Business
- Business Wire
BKV Corporation Reports First Quarter 2025 Financial and Operational Results
DENVER--(BUSINESS WIRE)--BKV Corporation (NYSE: BKV) ('BKV' or the 'Company'), today reported financial and operational results for the first quarter of 2025, including guidance for the second quarter of 2025. First Quarter and Subsequent Highlights Announced a joint venture agreement with Copenhagen Infrastructure Partners ('CIP') to partner on the development of carbon capture, utilization, and sequestration ('CCUS') projects Net loss of $78.7 million or $(0.93) per diluted share Adjusted Net Income of $35.0 million or $0.41 per diluted share Adjusted EBITDAX of $90.9 million Combined Adjusted EBITDAX of $100.7 million (includes implied proportionate share of Power JV Adjusted EBITDA of $9.8 million) Net cash provided by operating activities of $22.6 million Adjusted Free Cash Flow of $6.1 million Barnett Zero quarterly sequestration of 38,787 metric tons of CO 2 equivalent; Barnett Zero life-to-date sequestration through March 31, 2025 of 212,112 metric tons of CO 2 equivalent Total generation of 1,588 GWh from the Power JV's Temple Plants; combined capacity factor of 50.0% Net debt of $184.7 million and net leverage ratio of 0.67x Total net production of 761.1 MMcfe/d 'Once again BKV has demonstrated our ability to deliver strong results across our core business lines while making significant strides in advancing our closed loop strategy,' said Chris Kalnin, Chief Executive Officer of BKV. 'Our performance across key first quarter guidance metrics was positive, with Power JV Adjusted EBITDA well above the high end of our quarterly projected range. In addition, we are excited to announce our strategic partnership with Copenhagen Infrastructure Partners —a key milestone in scaling our CCUS business. This partnership will allow us to accelerate our existing pipeline of CCUS projects as well as to help us meet increasing demand for low-carbon energy solutions with new partners and in new geographies. This momentum, paired with our operational and financial execution across the business, drives our continued growth and long-term value creation for our shareholders.' Financial Results First Quarter and Year-to-Date 2025 For the three months ended March 31, 2025, total revenues and other operating income for BKV was $78.8 million (including realized hedging losses of $18.2 million). BKV's net loss for the period was $78.7 million, or $(0.93) per diluted share (including unrealized hedging losses of $134.0 million and losses from equity affiliate of $9.6 million). Excluding these items and other non-recurring items, Adjusted Net Income for the first quarter was $35.0 million. Adjusted Free Cash Flow for the three months ended March 31, 2025 was $6.1 million. Average realized natural gas price for the first quarter of 2025 was $3.10/MMBtu, excluding the impact of derivatives. Including the impact of hedges, average realized price was $2.86/MMBtu. Three Months Ended March 31, ($ Millions, except EPS and Adjusted Free Cash Flow Margin) (1) 2025 2024 Net loss $ (78.7 ) $ (38.6 ) Adjusted Net Income (Loss), non-GAAP $ 35.0 $ (10.6 ) Adjusted EBITDAX, non-GAAP $ 90.9 $ 47.1 Combined Adjusted EBITDAX, non-GAAP $ 100.7 $ 57.4 Net loss per common share, diluted $ (0.93 ) $ (0.58 ) Adjusted EPS, non-GAAP $ 0.41 $ (0.16 ) Net cash provided by operating activities $ 22.6 $ 19.3 Adjusted Free Cash Flow, non-GAAP $ 6.1 $ 47.3 Adjusted Free Cash Flow Margin, non-GAAP 2.6 % 30.4 % Losses from equity affiliate $ (9.6 ) $ (7.7 ) Capital expenditures (accrued) Development (2) $ 47.9 $ 13.1 CCUS $ 3.7 $ 4.5 Other $ 6.4 $ 0.4 Total capital expenditures (accrued) $ 58.0 $ 18.0 Expand ____________________________________________________ (1) Adjusted Net Income (Loss), Adjusted EBITDAX, Combined Adjusted EBITDAX, Adjusted EPS, Adjusted Free Cash Flow and Adjusted Free Cash Flow Margin 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 comparable GAAP metrics, please see 'Supplemental Non-GAAP Financial Measures' below. (2) Excludes asset retirement obligation expenditures of $0.1 million for the three months ended March 31, 2025. Expand BKV-BPP Power's Income Statement (1) Three Months Ended March 31, ($ Millions) 2025 2024 Total revenues, net $ 97.6 $ 85.0 Depreciation and amortization 9.6 9.9 Operating expenses 94.1 73.3 Income (loss) from operations (6.1 ) 1.8 Interest expense (16.1 ) (18.2 ) Other income 3.0 1.0 Net loss $ (19.2 ) $ (15.4 ) Power JV Adjusted EBITDA $ 19.6 $ 20.5 Expand _____________________________________________________ (1) This table reflects the financial information of BKV-BPP Power LLC (the 'Power JV'). Amounts are obtained from its unaudited financial statements for the three months ended March 31, 2025 and 2024, as applicable. BKV owns a 50% interest in the Power JV. Amounts are based on the Power JV's unaudited financial statements. Expand 'Our first quarter results highlight our ability to execute with consistency, to do what we said we would do, and drive results,' said David Tameron, BKV's Chief Financial Officer. 'In response to favorable commodity pricing early in the year, BKV has maintained a steady development program, all while generating positive Adjusted Free Cash Flow and sustaining low net leverage. The combination of our disciplined hedging strategy, low-decline asset base, top-tier operational execution, and conservative financial approach, positions us well to navigate evolving commodity cycles and macroeconomic environments, capitalizing on positive macro trends where possible. As we move through the rest of 2025, we will remain focused on delivering solid performance in our upstream business, advancing our differentiated CCUS platform, and capitalizing on the asymmetric upside of our power assets—all of which offer a compelling value proposition to our investors.' Operational Results First Quarter 2025 Power JV For the first quarter 2025, the Temple I and II power plants (the 'Temple Plants') reported a capacity factor of 45.4% and 54.2%, respectively, with total power generation of 1,588 GWh. Average power pricing was $54.52/MWh and the average natural gas cost was $4.12/MMBtu, resulting in an average spark spread of $25.39/MWh. In the first quarter of 2025, spark spreads improved compared to the fourth quarter of 2024, driven in part by winter weather, including widespread freezing temperatures across Texas in February. In addition to favorable pricing dynamics, the Temple Plants operated at a higher capacity factor quarter-over-quarter, benefiting from reduced major maintenance activity and elevated demand resulting from the cold weather conditions. BKV's implied proportionate share of Power JV net loss for the three months ended March 31, 2025 was $9.6 million, compared to $7.7 million for the three months ended March 31, 2024. BKV's implied proportionate share of Power JV Adjusted EBITDA was $9.8 million for the three months ended March 31, 2025 compared to $10.3 million for the three months ended March 31, 2024. Power JV Adjusted EBITDA exceeded the high end of the guidance range for the quarter, primarily driven by colder-than-expected weather conditions during the quarter resulting in favorable pricing. Despite recent macroeconomic headwinds, BKV continues to see significant growth potential in its Power JV. The company remains optimistic about long-term demand trends in the ERCOT market, supported by the accelerating adoption of AI technologies and the ongoing expansion of the data center sector. Carbon Capture Utilization and Sequestration ('CCUS') As previously disclosed, BKV announced the formation of a strategic joint venture (the 'CCUS JV') between the Company's wholly-owned subsidiary, BKV dCarbon Ventures and the CI Energy Transition Fund ('CIP Energy Transition Fund') managed by CIP, to develop and expand BKV's portfolio of CCUS projects. CIP Energy Transition Fund has committed an initial $500 million for use by the CCUS JV in constructing and operating new CCUS projects across the United States in exchange for a 49% interest in the CCUS JV, which commitment may be increased to $1 billion upon mutual agreement of the parties. BKV has contributed to the CCUS JV its ownership of the Barnett Zero and Eagle Ford projects, and has committed to future contributions of certain CCUS projects, related assets, and/or cash in exchange for a 51% interest in the CCUS JV. Subject to certain exceptions, BKV intends to develop its CCUS projects exclusively through the CCUS JV. The CCUS JV will leverage BKV's standing as an early leader and first mover in developing CCUS projects while benefiting from CIP's significant expertise in developing low-carbon infrastructure projects. BKV and CIP expect to identify investment-ready projects for development by the CCUS JV. BKV will be responsible for day-to-day management and construction oversight of the CCUS JV. For additional information, please see our Current Report on Form 8-K filed on May 8, 2025. During the first quarter, BKV submitted a permit application for five Class VI injection wells to the Louisiana Department of Energy and Natural Resources for our High West Project. As previously disclosed, the State of Louisiana has assumed primacy for Class VI well permitting from the EPA and, in 2023, granted the High West Project the carbon storage and sequestration rights on approximately 21,000 acres of land in St. Charles and Jefferson Parishes. The recently-submitted permit application covers an estimated total CO 2 storage capacity of approximately 200 million metric tons over 20 years. Additionally, on May 1, 2025, BKV announced an exclusive, non-binding agreement with Comstock Resources, Inc. (NYSE: CRK) ('Comstock'), under which BKV and Comstock will explore opportunities to develop CCUS projects at two of Comstock's natural gas processing facilities in its Western Haynesville operating area. As part of the agreement, the companies plan to explore opportunities to develop CCUS injection wells to permanently sequester carbon dioxide waste produced at Comstock's Bethel and Marquez natural gas processing and production facilities in Texas, as well as other locations. The terms of the prospective projects are subject to further negotiation, the execution of one or more definitive agreements, and the receipt of all required permits. The Company's Barnett Zero Project sequestered 38,787 metric tons of CO 2 equivalent during the three months ended March 31, 2025. The Barnett Zero Project has sequestered approximately 212,112 metric tons of CO 2 equivalent since project start up in November 2023 through March 31, 2025. BKV's Cotton Cove project remains on track for first injection in the first half of 2026, subject to the receipt of all required permits. BKV's CCUS project to sequester CO 2 waste from a natural gas processing project in the Eagle Ford Shale (Freer, Texas) remains on track for first injection in the first quarter of 2026 (subject to receipt of all required permits and execution of the definitive agreements necessary to execute the project), and is forecasted to achieve an average sequestration rate of approximately 90,000 metric tons per year of CO 2 equivalent. Upstream & Midstream Total hydrocarbon production for the three months ended March 31, 2025 was 761.1 MMcfe/d, which consisted of 79% natural gas and 21% NGLs. This is compared to total production for the three months ended March 31, 2024 of 821.1 MMcfe/d, which consisted of 80% natural gas and 20% NGLs. First quarter production exceeded the mid-point of the previously guided range of 740-770 MMcfe/d for the quarter due to several factors, including better than forecasted well performance on new development, effective base decline management, and accelerated pace of new development. Production was impacted by winter weather during the quarter which resulted in approximately 0.7 Bcfe (approximately 7.8 MMcfe/d) lower production due to freezing. The slightly lower production was offset by robust pricing during the cold periods. The decrease in production volumes for the first quarter compared to the same period in 2024 is due to base production decline as a result of lower capital investment in 2023 and 2024. The decrease is also due to the sale of the Company's non-operated upstream assets in the Marcellus Shale in the Appalachian Basin of Northeastern Pennsylvania in the second quarter of 2024. The sale impacted first quarter volumes by approximately 31 MMcfe/d. (1) The impact of derivative prices excludes $13.3 million of gains on derivative contract terminations for the three months ended March 31, 2024. Expand Capital Expenditures Capital expenditures in the first quarter of 2025 were $58.0 million, which included $47.9 million for development capital, $3.7 million for CCUS, and $6.4 million for other expenditures. Capital expenditures for the same period in 2024 were $18.0 million, which included $13.1 million for development capital, $4.5 million for CCUS, and $0.4 million for other expenditures. Liquidity As of March 31, 2025, BKV had cash and cash equivalents of $15.3 million. Total debt as of March 31, 2025 was $200.0 million, which was made up solely of the amount outstanding under the Company's reserve-based lending agreement (the 'RBL'). Net debt as of March 31, 2025 was $184.7 million, and net leverage ratio was 0.67x. BKV's long-term net leverage target is to manage between 1.0x to 1.5x. As of March 31, 2025, total liquidity for BKV was $401.2 million, which consists of $15.3 million in cash and cash equivalents and $385.9 million available under the Company's RBL. RBL availability as of March 31, 2025, is based on the elected commitment amount of $600.0 million, less $200.0 million of draws, and $14.1 million of letters of credit. On May 6, 2025, the Company amended the RBL to increase the borrowing base by $100.0 million and the elected commitment amount by $65.0 million. As of May 9, 2025, the Company had $230.0 million of revolving borrowings and $420.9 million available under the RBL. 2025 Guidance First Quarter 2025 Earnings Conference Call The Company plans to host a conference call to discuss results today, May 9, 2025 at 10 AM EST. To access the conference call, participants may dial (877) 407-0779 (US) or (201) 389-0914 (international). Participants can also listen to a live webcast of the call by going to the Investors section on the BKV website at A replay will be available shortly after the live conference call and can be accessed on the Company's website or by dialing (844) 512-2921 (US) or (412) 317-6671 (international). The passcode for the replay is 13752676. The replay will be available for 60 days after the call. About BKV Corporation Headquartered in Denver, Colorado, BKV Corporation is a forward-thinking, growth-driven energy company focused on creating value for its stockholders. BKV's core business is to produce natural gas from its owned and operated upstream assets. BKV's overall business is organized into four business lines: natural gas production; natural gas gathering, processing and transportation; power generation; and carbon capture, utilization and sequestration. BKV (and its predecessor entity) was founded in 2015, and BKV and its employees are committed to building a different kind of energy company. BKV is one of the top 20 gas-weighted natural gas producers in the United States and the largest natural gas producer by gross operated volume in the Barnett Shale. BKV Corporation is the parent company for the BKV family of companies. For more information, visit the BKV website at Forward-Looking Statements This press release includes 'forward-looking statements' within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. 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 contain words such as 'expect,' 'project,' 'estimate,' 'believe,' 'anticipate,' 'intend,' 'budget,' 'plan,' 'seek,' 'aspire,' 'envision,' 'forecast,' 'target,' 'predict,' 'may,' 'should,' 'would,' 'could,' 'will,' and similar expressions. Actual results and future events could differ materially from those anticipated in such statements, and such forward-looking statements may not prove to be accurate. All forward-looking statements, expressed or implied, in this press release are based only on information currently available to BKV and speak only as of the date on which they are made. BKV undertakes no obligation to release publicly any update to any of these forward-looking statements except as required by federal securities laws. Forward-looking statements are based on management's current views and assumptions and involve risks and uncertainties that could cause actual results to differ materially from historical experience or our present expectations, including but not limited to assumptions, risks and uncertainties regarding our ability to successfully fund, pursue and develop our CCUS business; expected increase in demand for power and our ability to serve that demand from our power business, our ability to develop, market and sell our carbon sequestered gas product; and management's outlook guidance or forecasts of future events, including projected capital expenditures, production volumes, operating costs, pricing differentials, and Power JV Adjusted EBITDA. For further discussions of risks and uncertainties applicable to forward-looking statements, you should refer to BKV's filings with the Securities and Exchange Commission (the 'SEC'), including the 'Risk Factors' section of BKV's Annual Report on Form 10-K dated March 31, 2025. March 31, 2025 Assets Current assets Cash and cash equivalents $ 15,299 $ 14,868 Accounts receivable, net 61,258 54,435 Accounts receivable, related parties 11,725 11,414 Prepaid expenses 5,027 7,638 Inventory 6,079 6,255 Commodity derivative assets, current 194 — Asset held for sale 5,500 — Total current assets 105,082 94,610 Natural gas properties and equipment Developed properties 2,364,068 2,315,167 Undeveloped properties 10,863 10,757 Midstream assets 276,742 276,644 Accumulated depreciation, depletion, and amortization (747,720 ) (714,287 ) Total natural gas properties, net 1,903,953 1,888,281 Other property and equipment, net 94,781 97,300 Goodwill 18,417 18,417 Investment in joint venture 105,588 115,173 Commodity derivative assets 6,567 — Other noncurrent assets 16,619 17,307 Total assets $ 2,251,007 $ 2,231,088 Liabilities and stockholders' equity Current liabilities Accounts payable and accrued liabilities $ 105,471 $ 121,366 Contingent consideration payable — 20,000 Income taxes payable to related party 1,868 1,438 Commodity derivative liabilities, current 141,934 20,277 Other current liabilities 4,284 3,124 Total current liabilities 253,557 166,205 Asset retirement obligations 200,680 198,795 Commodity derivative liabilities 50,240 47,357 Deferred tax liability, net 59,069 88,688 Long-term debt, net 200,000 165,000 Other noncurrent liabilities 5,667 5,469 Total liabilities 769,213 671,514 Commitments and contingencies Stockholders' equity Common stock, $0.01 par value; 300,000 authorized shares; 84,708 and 84,600 shares issued and outstanding as of March 31, 2025 and December 31, 2024, respectively 1,513 1,512 Treasury stock, shares at cost; 214 shares and 214 shares as of March 31, 2025 and December 31, 2024, respectively (6,663 ) (6,663 ) Additional paid-in capital 1,448,556 1,447,671 Retained earnings 38,388 117,054 Total stockholders' equity 1,481,794 1,559,574 Total liabilities and stockholders' equity $ 2,251,007 $ 2,231,088 Expand BKV Corporation Condensed Consolidated Statements of Operations ($ thousands, except per share amounts) (Unaudited) Three Months Ended March 31, 2025 2024 Revenues and other operating income Natural gas, NGL, and oil sales $ 216,126 $ 141,687 Midstream revenues 2,771 4,128 Derivative losses, net (152,191 ) (3,679 ) Marketing revenues 6,485 4,921 Section 45Q tax credits 3,307 2,329 Related party revenues 426 1,101 Other 1,896 1,427 Total revenues and other operating income 78,820 151,914 Operating expenses Lease operating and workover 35,055 34,468 Taxes other than income 10,222 11,365 Gathering and transportation 55,793 59,066 Depreciation, depletion, amortization, and accretion 39,970 52,166 General and administrative 25,257 20,645 Other 6,226 8,567 Total operating expenses 172,523 186,277 Loss from operations (93,703 ) (34,363 ) Other income (expense) Gains on contingent consideration liabilities — 6,594 Losses from equity affiliate (9,585 ) (7,707 ) Interest expense (5,052 ) (16,083 ) Interest expense, related party — (1,973 ) Interest income 149 1,633 Other income 336 335 Loss before income taxes (107,855 ) (51,564 ) Income tax benefit 29,189 12,979 Net loss $ (78,666 ) $ (38,585 ) Net loss per common share: Basic $ (0.93 ) $ (0.58 ) Diluted $ (0.93 ) $ (0.58 ) Weighted average number of common shares outstanding: Basic 84,706 66,287 Diluted 84,706 66,287 Expand BKV Corporation Condensed Consolidated Statements of Cash Flows ($ thousands) (Unaudited) Three Months Ended March 31, 2025 2024 Cash flows from operating activities: Net loss $ (78,666 ) $ (38,585 ) Adjustments to reconcile net loss to net cash provided by operating activities: Depreciation, depletion, amortization, and accretion 40,063 52,259 Equity-based compensation expense 2,067 1,073 Deferred income tax benefit (29,619 ) (13,122 ) Unrealized losses on derivatives, net 133,985 40,143 Gains on contingent consideration liabilities — (6,594 ) Settlement of contingent consideration (20,000 ) (20,000 ) Proceeds from the sale of call options — 23,502 Payments for the purchase of put options (16,206 ) — Impairment of asset held for sale 2,446 — Losses from equity affiliate 9,585 7,707 Other, net (187 ) 743 Changes in operating assets and liabilities: Accounts receivable, net (6,823 ) (6,195 ) Accounts receivable, related party (311 ) (741 ) Accounts payable and accrued liabilities (16,523 ) (20,701 ) Other changes in operating assets and liabilities 2,809 (238 ) Net cash provided by operating activities 22,620 19,251 Cash flows from investing activities: Capital expenditures (57,374 ) (19,861 ) Proceeds from sales of assets 1,109 — Other investing activities, net 257 (23 ) Net cash used in investing activities (56,008 ) (19,884 ) Cash flows from financing activities: Proceeds under RBL Credit Agreement 170,000 — Payments on RBL Credit Agreement (135,000 ) — Proceeds from draws on credit facilities — 30,000 Payments on credit facilities — (31,000 ) Payments of deferred offering costs — (590 ) Net share settlements, equity-based compensation (1,181 ) — Net cash provided by (used in) financing activities 33,819 (1,590 ) Net increase (decrease) in cash, cash equivalents, and restricted cash 431 (2,223 ) Cash, cash equivalents, and restricted cash, beginning of period 14,868 165,069 Cash, cash equivalents, and restricted cash, end of period $ 15,299 $ 162,846 Expand Volume of Derivative Activities As of March 31, 2025, the Company's derivative activities based on volume and contract prices, categorized by primary underlying risk and related commodity, by year, were as follows: The following table represents natural gas commodity derivatives indexed to NYMEX Henry Hub pricing: The following table represents natural gas basis derivatives based on the applicable basis reference price listed below: The following table represents natural gas liquids commodity derivatives for contracts, by contract type, expiring through December 31, 2026 based on the applicable index listed below: Supplemental Non-GAAP Financial Measures Adjusted Net Income (Loss) and Adjusted EPS The Company defines Adjusted Net Income (Loss) as net income (loss) before (i) non-cash derivative gains (losses), (ii) earnings or losses from equity affiliate, (iii) gains (losses) on contingent consideration liabilities, (iv) certain equity-based compensation expense, (v) the portion of settlements paid (received) for early-terminated derivative contracts that relate to future periods, (vi) other nonrecurring transactions, and (vii) the tax impact on these adjustments using a 23% statutory rate. The Company defines Adjusted EPS as Adjusted Net Income (Loss) divided by dilutive weighted average common shares outstanding. We believe Adjusted Net Income (Loss) and Adjusted EPS are useful performance measures because they allow us to effectively evaluate our operating performance and results of operations from period to period and against our peers, without regard to our financing methods, corporate form, capital structure, or one-time events. We exclude the items listed above from net income (loss) in arriving at Adjusted Net Income (Loss) and Adjusted EPS because these amounts can vary substantially from company to company within our industry depending upon accounting methods and book values of assets, capital structures, and the method by which the assets were acquired. Our presentation of Adjusted Net Income (Loss) and Adjusted EPS should not be construed as an inference that our results will be unaffected by unusual or non-recurring items. Other companies, including other companies in our industry, may not use Adjusted Net Income (Loss) and Adjusted EPS or may calculate this measure differently than as presented in this release, limiting its usefulness as a comparative measure. The table below presents a reconciliation of Adjusted Net Income (Loss) to net income, our most directly comparable GAAP financial measure for the periods indicated. _________________________________________________ (1) Reflects total cash settlements during the period upon termination of certain natural gas commodity derivative swap and collar contracts prior to their contractual settlement date. (2) When evaluating our operating performance and results of operations, early settlements of derivative contracts are 'related to' the period that includes the underlying production month that was hedged. This adjustment removes the timing difference between the early termination date and the underlying production month that is hedged. (3) Net losses are prohibited from including potential common shares in the computation of diluted per share amounts. Therefore, we have utilized the basic shares outstanding to calculate both basic and diluted Adjusted Net Loss per common share. Expand Adjusted EBITDAX The Company defines Adjusted EBITDAX as net income (loss) attributable to BKV before (i) non-cash derivative gains (losses), (ii) depreciation, depletion, amortization, and accretion, (iii) exploration and impairment expense, (iv) gains (losses) on contingent consideration liabilities, (v) interest expense, (vi) interest expense, related party, (vii) income tax benefit (expense), (viii) equity-based compensation expense, (ix) bargain purchase gains, (x) earnings (losses) from equity affiliate, (xi) the portion of settlements paid (received) for early-terminated derivative contracts that relate to future periods and (xii) other nonrecurring transactions. The Company excludes the items listed above from net income (loss) in arriving at Adjusted EBITDAX because these amounts can vary substantially from company to company within our industry depending upon accounting methods and book values of assets, capital structures and the method by which the assets were acquired. Adjusted EBITDAX should not be considered as an alternative to, or more meaningful than, net income (loss) determined in accordance with GAAP. Certain items excluded from Adjusted EBITDAX are significant components in understanding and assessing a company's financial performance, such as a company's cost of capital and tax burden, as well as the historic costs of depreciable assets, none of which are reflected in Adjusted EBITDAX. Our presentation of Adjusted EBITDAX should not be construed as an inference that our results will be unaffected by unusual or non-recurring items. Other companies, including other companies in our industry, may not use Adjusted EBITDAX or may calculate this measure differently than as presented in this release, limiting its usefulness as a comparative measure. Adjusted EBITDAX is a supplemental non-GAAP financial measure that is used by our management and external users of our consolidated financial statements, such as industry analysts, investors, lenders, rating agencies and others to more effectively evaluate our operating performance and results of operations from period to period and against our peers. We believe Adjusted EBITDAX is a useful performance measure because it allows us to effectively evaluate our operating performance and results of operations from period to period and against our peers, without regard to our financing methods, corporate form or capital structure. The table below presents a reconciliation of Adjusted EBITDAX to net loss, our most directly comparable GAAP financial measure for the periods indicated. ________________________________________________ (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) Reflects total cash settlements during the period upon termination of certain natural gas commodity derivative swap and collar contracts prior to their contractual settlement date. (3) When evaluating our operating performance and results of operations, early settlements of derivative contracts are 'related to' the period that includes the underlying production month that was hedged. This adjustment removes the timing difference between the early termination date and the underlying production month that is hedged. Expand Adjusted Free Cash Flow and Adjusted Free Cash Flow Margin We define Adjusted Free Cash Flow as net cash provided by (used in) operating activities, excluding cash paid for contingent consideration and changes in operating assets and liabilities, less total cash paid for capital expenditures (excluding leasehold costs and acquisitions). Adjusted Free Cash Flow is not a measure of net cash flow provided by or used in operating activities as determined by GAAP. Adjusted Free Cash Flow is a supplemental non-GAAP financial measure that is used by our management and other external users of our financial statements, such as industry analysts, investors, lenders, rating agencies and others to assess our ability to internally fund our capital program, service or incur additional debt and to pay dividends. We believe Adjusted Free Cash Flow is a useful liquidity measure because it allows us and others to compare cash flow provided by operating activities across periods and to assess our ability to internally fund our capital program (including acquisitions), to reduce leverage, fund acquisitions and pay dividends to our stockholders. We define Adjusted Free Cash Flow Margin as the ratio of Adjusted Free Cash Flow for any period to total revenues, excluding derivative gains and losses, for such period. We use this metric to assess our liquidity relative to our revenues. Adjusted Free Cash Flow Margin illustrates the efficiency with which the Company generates Adjusted Free Cash Flow. Adjusted Free Cash Flow should not be considered as an alternative to, or more meaningful than, net income (loss) or net cash provided by (used in) operating activities determined in accordance with GAAP. Other companies, including other companies in our industry, may not use Adjusted Free Cash Flow or may calculate this measure differently than as presented in this release, limiting its usefulness as a comparative measure. The table below presents our reconciliation of Adjusted Free Cash Flow to net cash provided by operating activities, our most directly comparable GAAP financial measure for the periods indicated. __________________________________________ (1) Cash paid for contingent consideration is included as a deduction to arrive at net cash provided by (used in) operating activities and therefore, is added back for the purpose of computing Adjusted Free Cash Flow. (2) The early termination of derivative contracts increased Adjusted Free Cash Flow by $13.3 million for the three months ended March 31, 2024. In addition, Adjusted Free Cash Flows decreased by $16.2 million for the three months ended March 31, 2025 due to the net premium paid of $16.2 million from the purchase of a put option, and increased by $23.5 million for the three months ended March 31, 2024 due to the net premium received of $23.5 million from the sale of a call option. Expand Power JV Adjusted EBITDA We define Power JV Adjusted EBITDA as net income (loss) of BKV-BPP Power LLC (the ' Power JV') before (i) unrealized derivative gains/losses, (ii) depreciation and amortization, and (iii) interest expense. The items listed above are excluded from the Power JV's net income (loss) in arriving at Power JV Adjusted EBITDA because these amounts can vary substantially from company to company within the power industry depending upon accounting methods and book values of assets, capital structures and the method by which the assets were acquired. Power JV Adjusted EBITDA should not be considered as an alternative to, or more meaningful than, net income (loss) determined in accordance with GAAP. Other companies, including other companies in the power industry, may not use Adjusted EBITDA or may calculate this measure differently than as presented in this release, limiting its usefulness as a comparative measure. Power JV Adjusted EBITDA is a supplemental non-GAAP financial measure that is used by our management and external users of our consolidated financial statements, such as industry analysts, investors, lenders, rating agencies and others to more effectively evaluate our and the Power JV's operating performance and results of operations from period to period and against our peers. We believe our investment in the Power JV is a strategic differentiator for BKV's integrated energy solutions model. Investors in BKV may be interested in the results of the Power JV and the respective impact to BKV's financial results. We believe Power JV Adjusted EBITDA is a useful performance measure because it allows us to effectively evaluate the Power JV's operating performance and results of operations from period to period and against peers, without regard to financing methods, corporate form or capital structure. The table below presents our reconciliation of Power JV Adjusted EBITDA to the Power JV's net loss, the most directly comparable GAAP financial measure for the periods indicated. Combined Adjusted EBITDAX We define Combined Adjusted EBITDAX as our Adjusted EBITDAX plus 50% of Power JV Adjusted EBITDA. We use Combined Adjusted EBITDAX as a supplemental non-GAAP financial measure to present our implied proportionate share of Power JV EBITDA from our non-consolidated power business together with our Adjusted EBITDAX. Management uses this measure to more effectively evaluate our operating performance and results of operations taking into account the operations of our non-consolidated power business from period to period and against our peers, without regard to financing methods, corporate form or capital structure. Please see the reconciliations above of Adjusted EBITDAX to our net loss, our most directly comparable GAAP financial measure for the periods indicated, and of Power JV Adjusted EBITDA to the Power JV's net loss, the most directly comparable GAAP financial measure for the periods indicated.
Bloomberg
08-05-2025
- Business
- Bloomberg
CIP to Invest $500 Million in BKV Carbon Capture Joint Venture
BKV Corp. and a clean energy-focused investment fund of Copenhagen Infrastructure Partners have agreed to form a joint venture to expand carbon-capture projects in the US. Denmark-based CI Energy Transition Fund I has committed $500 million for up to a 49% stake in the venture. Denver-based BKV, a $1.6 billion market-cap firm owned by controlling shareholder Banpu Pcl, will roll two of its carbon capture projects into the venture, according to a statement reviewed by Bloomberg News.
