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BKV CEO Sees Start-Up of LNG Projects Lifting Gas Prices in 2026
BKV CEO Sees Start-Up of LNG Projects Lifting Gas Prices in 2026

Bloomberg

time4 days ago

  • Business
  • Bloomberg

BKV CEO Sees Start-Up of LNG Projects Lifting Gas Prices in 2026

BKV Corp., the largest natural gas producer in Texas' Barnett shale basin, expects strong gas demand in 2026 as liquefied natural gas export terminals come online, driving up prices for the fuel. The US-based gas-producing unit of Thailand's Banpu Pcl sees demand remaining solid for the rest of the year, despite higher-than-average inventory levels this summer, said Chief Executive Officer Christopher Kalnin.

BKV Corp (BKV) Q1 2025 Earnings Call Highlights: Strategic Growth Amidst Challenges
BKV Corp (BKV) Q1 2025 Earnings Call Highlights: Strategic Growth Amidst Challenges

Yahoo

time12-05-2025

  • 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

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