Nov 5, 2026, 7:05 AM ETEnergy

BKV — Q3 2026 Earnings Summary

BKVBKV CORP

Financial Performance

Net income attributable to BKV was $29.4 million ($0.27 per diluted share) for the three months ended September 30, 2026, compared to $83.5 million ($0.98 per diluted share) in the prior year period.
Adjusted net income attributable to BKV was $39.9 million ($0.36 per diluted share) for the quarter, up from $23.1 million ($0.27 per diluted share) in the prior year period.
Adjusted EBITDAX attributable to BKV was $132.7 million for the quarter, an increase from $101.3 million in the prior year period.
Net cash provided by operating activities was $164.5 million for the quarter, compared to $109.1 million in the prior year period.
Adjusted free cash flow before Power Growth attributable to BKV was $31.2 million for the quarter, up from $15.0 million in the prior year period.
Total capital expenditures (accrued) were $77.8 million for the quarter, down from $79.9 million in the prior year period.
Net leverage ratio was 2.41x as of September 30, 2026.
Total principal debt was $2.0 billion, with net debt of $1.4 billion.
Cash and cash equivalents were $619.6 million, with total liquidity of $1.2 billion.
For the nine months ended September 30, 2026, net income attributable to BKV was $149.3 million, and adjusted net income attributable to BKV was $110.7 million.

Q4 2026 accrued capital expenditures are guided to be between $315 million and $385 million, including $55–$75 million for development, $240–$270 million for Power strategic capital & investments + maintenance, and $20–$40 million for CCUS and other.
Q4 2026 net production is guided to be between 1,010 and 1,030 MMcfe/d.
Q4 2026 Power Adjusted EBITDAX is guided to be between $10 million and $30 million.
BKV expects to receive $80 million to $100 million in joint venture partner capital contributions for the fourth quarter of 2026 collectively for Power and CCUS.
The Company targets an annual CO₂ injection run rate of 1.5 million metric tons by 2028.
Management remains focused on securing long-term power purchase agreements (PPAs) to support growth objectives.

Upstream/Midstream: Average net production was 981.2 MMcfe/d for the quarter, up from 828.5 MMcfe/d in the prior year period. The segment completed the acquisition of upstream, midstream, and CCS assets in the Barnett Shale on September 15, 2026, adding approximately 65 MMcfe/d of production and 0.35 Tcfe of proved developed producing reserves.
Power: Total generation from the Power JV's Temple plants was 2,317 GWh for the quarter. The Temple I and II facilities achieved a combined capacity factor of 71.7%. The Power JV entered into a cost reimbursement agreement with a Leading Frontier AI Lab to increase planned modular power generation at the Temple Energy Complex to 400 MW from 200 MW.
CCUS: Quarterly sequestration was approximately 55,200 metric tons of CO₂ equivalent. BKV became the first company to receive Verra carbon credit certification for CO₂ permanently sequestered through its CCUS operations, enabling monetization of Carbon Sequestered Gas (CSG).
Strategic Power Growth: BKV entered into an equipment supply agreement for approximately 1.2 GW of combined-cycle gas turbine (CCGT) capacity, supported by a backstop agreement with an investment-grade hyperscaler.
Carbon Sequestered Gas (CSG): With Verra verification complete, BKV can begin delivering CSG under arrangements with Kiewit and Gunvor.

Wholesale power prices and spark spreads were below expectations during the quarter due to increased renewable generation and battery storage moderating peak pricing, despite record power demand across ERCOT.
BKV remains confident in long-term ERCOT market fundamentals supported by a substantial backlog of large-load interconnection requests.
BKV is one of the top 15 gas-weighted natural gas producers in the United States and the largest natural gas producer by gross operated volume in the Barnett Shale.

Forward-looking statements regarding future operations, financial position, and results are subject to risks and uncertainties, including commodity price volatility, regulatory actions, and the ability to secure long-term PPAs.
Actual results may differ materially from guidance and projections due to factors such as the timing of capital contributions from joint venture partners, the success of the Barnett acquisition integration, and the ability to operate and grow the CCUS business.
Risks include the potential for actual results to differ from forward-looking statements regarding projected capital expenditures, production volumes, operating costs, and pricing differentials.

CEO Chris Kalnin stated the upstream business delivered another strong quarter with operational outperformance, providing a solid foundation for strategic growth initiatives.
Kalnin highlighted meaningful commercial progress in the power business, citing the cost reimbursement agreement and hyperscaler backstop as reflections of a disciplined approach to developing power generation capacity.
CFO David Tameron noted that strong upstream cash flow and recent capital markets transactions strengthened the financial position and provided liquidity to support strategic growth initiatives.
Management emphasized a deliberate, disciplined approach to capital commitments, utilizing cost reimbursement and backstop agreements to preserve financial flexibility while advancing commercial discussions.

BKV completed a $575.0 million Convertible Senior Notes Offering at an annual rate of 1.625%.
The Company acquired an additional 25% ownership interest in the Power JV and consolidated it as of January 30, 2026, changing the presentation of non-GAAP measures.
BKV completed its first full quarter of internally marketing all of its natural gas production, expanding its closed-loop strategy.
JV partners contributed an aggregate $78.8 million during the nine months ended September 30, 2026, with $65.4 million from Banpu Power US Corporation and $13.4 million from CIP.
BKV announced an expanded scope for its Phase 1 modular power development in Temple, TX, with a cost reimbursement agreement covering up to approximately $179 million if offtake arrangements are not agreed to by November 18, 2026, with an aggregate cap of $374.1 million.