BKV Corporation Reports Third Quarter 2025 Financial and Operational Results

November 10, 2025

DENVER–(BUSINESS WIRE)–BKV Corporation (“BKV” or the “Company”) (NYSE: BKV), today reported financial and operational results for the third quarter of 2025, including guidance for the fourth quarter of 2025.

Third Quarter 2025 Highlights

Net income attributable to BKV of $76.9 million or $0.90 per diluted share
Adjusted Net Income of $42.5 million or $0.50 per diluted share
Combined Adjusted EBITDAX attributable to BKV of $91.8 million (includes implied proportionate share of Power JV Adjusted EBITDA of $20.4 million)
Net cash provided by operating activities of $74.5 million
Net cash provided by operating activities before working capital of $69.1 million
Accrued capital expenditures of $79.6 million
Adjusted Free Cash Flow attributable to BKV of $(10.6) million
Average net production of 828.5 MMcfe/d
Total generation from the Power JV’s Temple plants of 2,246 GWh
Barnett Zero quarterly sequestration of approximately 43,900 metric tons of CO₂ equivalent
Net leverage ratio of 1.32x
Closed the previously announced acquisition of Bedrock Energy Partners’ Barnett Shale assets on September 29, 2025
Executed a $500 million Senior Notes offering at 7.5% due in 2030

Strategic Power JV Acquisition Highlights

On October 29, 2025, BKV agreed to acquire one-half of Banpu Power US Corporation’s (“BPPUS”) interest in BKV-BPP Power, LLC (“Power JV”), increasing BKV’s ownership to 75%. The transaction is expected to close in the first quarter of 2026.
The acquisition strengthens BKV’s closed loop strategy and expands its control over a core growth platform.
BKV sees strong opportunity in its power business, supported by ERCOT load growth, rising AI and data-center demand, and available capacity at the Temple I and II plants.
Upon closing, BKV expects to consolidate Power JV results, improving transparency and highlighting cash flow contribution. Increased ownership and a simplified governance structure are expected to enhance control and support additional commercial growth.

Fourth Quarter 2025 Guidance Highlights

Net production of 885-935 MMcfe/d, reflecting a ~10% increase from 3Q25 production at the mid-point
Maintain FY25 Capex guidance of $290 – $350 million for Development, CCUS + other
Power JV Adjusted EBITDA (100% share of Power JV) of $10 – $30 million

“We continue to make significant progress advancing our closed loop energy strategy,” said Chris Kalnin, Chief Executive Officer of BKV. “During the quarter, we strengthened our position as a differentiated, lower-carbon energy producer with two major milestones—entry into a purchase agreement to expand our ownership in the Power JV through the acquisition of an additional 25% interest from BPPUS and closing the acquisition of Bedrock Energy Partners’ assets in the Barnett. The Power JV transaction will allow BKV to consolidate the joint venture, increase our share of net power generation capacity of our modern combined-cycle gas turbines to over 1 GW, enhance our strategic flexibility, and accelerate the potential for growth in our power business. The IPP market is fundamental to our long-term strategy, and our vision is for a single, clean platform to operate, build, and acquire power assets, with BKV-BPP Power serving as a consolidated vehicle for these future developments.

“As we integrate the Bedrock assets, we are rapidly applying the BKV playbook to enhance efficiencies and drive results, while continuing to advance our power platform with discipline and focus. Our team remains committed to securing long-term PPAs and delivering sustainable value through operational excellence. BKV sits at the intersection of multiple energy megatrends, and we have the right assets, people, and strategy in place to capture the opportunities ahead and drive long-term value for our shareholders.”

Financial Results

Third Quarter 2025

For the three months ended September 30, 2025, total revenues and other operating income for BKV were $277.9 million (including realized hedging gains of $19.7 million) and earnings from the Power JV were $21.1 million. Net income attributable to BKV for the period was $76.9 million, or $0.90 per diluted share (including unrealized hedging gains of $55.2 million). For the three months ended September 30, 2025, Adjusted Net Income was $42.5 million, Adjusted EBITDAX was $72.4 million, Combined Adjusted EBITDAX attributable to BKV was $91.8 million, and Adjusted Free Cash Flow attributable to BKV was negative $10.6 million.

Average realized natural gas price for the third quarter of 2025 was $2.50/MMBtu, excluding the impact of derivatives. Including the impact of cash settled hedges, average realized natural gas price was $2.81/MMBtu. Average realized NGL price for the third quarter of 2025 was $15.17/Bbl, excluding the impact of derivatives. Including the impact of cash settled hedges, average realized NGL price was $15.64/Bbl. On a natural gas equivalent basis, average realized price in the third quarter of 2025 was $2.52/Mcfe, excluding the impact of derivatives. Including the impact of cash settled hedges, average natural gas equivalent realized price was $2.78/Mcfe.

Year-to-Date 2025

For the nine months ended September 30, 2025, total revenues and other operating income for BKV were $678.7 million (including realized hedging gains of $10.8 million), and earnings from the Power JV were $20.6 million. Net income attributable to BKV for the period was $102.8 million, or $1.20 per diluted share (including unrealized hedging gains of $24.1 million). For the nine months ended September 30, 2025, Adjusted Net Income was $102.9 million, Adjusted EBITDAX was $234.1 million, Combined Adjusted EBITDAX attributable to BKV was $280.7 million, and Adjusted Free Cash Flow attributable to BKV was negative $2.4 million.

Average realized natural gas price for the nine months ended September 30, 2025, was $2.75/MMBtu, excluding the impact of derivatives. Including the impact of cash settled hedges, average realized natural gas price was $2.83/MMBtu. Average realized NGL price for the nine months ended September 30, 2025, was $16.82/Bbl, excluding the impact of derivatives. Including the impact of cash settled hedges, average realized NGL price was $16.29/Bbl. On a natural gas equivalent basis, average realized price for the nine months ended September 30, 2025, was $2.78/Mcfe, excluding the impact of derivatives. Including the impact of cash settled hedges, average natural gas equivalent realized price was $2.83/Mcfe.

	Three Months Ended September 30,						Nine Months Ended September 30,
($ Millions, except EPS and Adjusted Free Cash Flow Margin)⁽¹⁾		2025			2024			2025			2024
Net income (loss) attributable to BKV	$	76.9		$	12.9		$	102.8		$	(85.4	)
Adjusted Net Income (Loss), non-GAAP	$	42.5		$	20.3		$	102.9		$	(19.0	)
Adjusted EBITDAX, non-GAAP	$	72.4		$	51.0		$	234.1		$	159.8
Combined Adjusted EBITDAX attributable to BKV, non-GAAP	$	91.8		$	61.1		$	280.7		$	193.3
Net income (loss) per common share attributable to BKV, diluted	$	0.90		$	0.18		$	1.20		$	(1.28	)
Adjusted EPS, non-GAAP	$	0.50		$	0.29		$	1.21		$	(0.28	)
Adjusted Free Cash Flow attributable to BKV, non-GAAP	$	(10.6	)	$	19.6		$	(2.4	)	$	86.2
Adjusted Free Cash Flow Margin attributable to BKV, non-GAAP		(5.3	)%		14.2	%		(0.4	)%		19.7	%
Net income (loss)	$	77.7		$	12.9		$	103.8		$	(85.4	)
Net cash provided by operating activities	$	74.5		$	65.0		$	173.3		$	74.8
Adjusted Free Cash Flow, non-GAAP	$	(16.2	)	$	19.6		$	(12.1	)	$	86.2
Adjusted Free Cash Flow Margin, non-GAAP		(8.0	)%		14.2	%		(1.9	)%		19.7	%
Earnings from the Power JV	$	21.1		$	50.6		$	20.6		$	27.6
Capital expenditures (accrued)
Development ⁽²⁾	$	55.7		$	13.8		$	166.2		$	38.6
CCUS and other	$	23.9		$	10.6		$	50.2		$	18.7
Total capital expenditures (accrued)	$	79.6		$	24.4		$	216.4		$	57.3

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⁽¹⁾	Adjusted Net Income (Loss), Adjusted EBITDAX, Combined Adjusted EBITDAX attributable to BKV, Adjusted EPS, Adjusted Free Cash Flow, Adjusted Free Cash Flow Margin, Adjusted Free Cash Flow attributable to BKV, and Adjusted Free Cash Flow Margin attributable to BKV 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 most directly comparable GAAP metrics, please see “Supplemental Non-GAAP Financial Measures” below.
⁽²⁾	Excludes asset retirement obligation expenditures of $0.2 million and $0.8 million for the three and nine months ended September 30, 2025, respectively, and $1.0 million for the three and nine months ended September 30, 2024.

BKV-BPP Power’s Income Statement ⁽¹⁾	Three Months Ended September 30,						Nine Months Ended September 30,
($ Millions)		2025			2024			2025			2024
Total revenues, net	$	178.9		$	221.1		$	413.3		$	392.9
Depreciation and amortization		9.6			9.4			28.7			28.4
Operating expenses		112.5			93.0			301.2			256.6
Income from operations		56.8			118.7			83.4			107.9
Interest expense		(16.0	)		(18.5	)		(48.0	)		(55.4	)
Other income		1.3			0.9			5.7			2.7
Net income	$	42.1		$	101.1		$	41.1		$	55.2
Power JV Adjusted EBITDA	$	40.9		$	20.2		$	95.9		$	67.0

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⁽¹⁾

This table reflects the financial information of the Power JV. Amounts are obtained from and based on the Power JV’s unaudited financial statements for the three and nine months ended September 30, 2025 and 2024, as applicable. As of September 30, 2025, BKV owns a 50% interest in the Power JV.

“This was a pivotal quarter for BKV as we executed multiple strategic and financial milestones,” said David Tameron, Chief Financial Officer. “We successfully completed our inaugural bond offering with a $500 million note, which was met with strong investor demand and priced at a competitive rate — underscoring the debt market’s confidence in our strategy, disciplined execution, and differentiated business model. The proceeds were used to repay borrowings under our RBL, fund a portion of the purchase price for the Bedrock acquisition, which closed during the quarter, and to support the integration of the Bedrock assets.

“In addition, we announced the pending acquisition of additional interest in the Power JV, which is expected to further strengthen our alignment with key partners and advance our closed loop strategy. While leverage increased modestly following the closing of the Bedrock acquisition, we remain comfortably within our target range of 1.0x-1.5x and expect to deleverage through cash flow generation from our expanded, high-quality asset base. With a strong balance sheet, substantial liquidity, and a fully undrawn RBL at the close of the third quarter of 2025, BKV is well positioned to continue executing on its strategic growth objective and driving long-term shareholder value.”

Operational Results – Third Quarter 2025 and Year-to-Date 2025

Power JV

For the third quarter 2025, the Temple I and II power plants reported a capacity factor of 71.1% and 67.5%, respectively, with total power generation of 2,246 GWh. Average power pricing was $46.29/MWh and the average natural gas cost was $2.87/MMBtu, resulting in an average spark spread of $25.82/MWh.

In the third quarter of 2025, spark spreads improved only modestly compared to the second quarter of 2025, as ERCOT cooling degree days lagged the trailing 5 year average by roughly 15%. Despite this, the Temple plants operated at a higher capacity factor quarter-over-quarter, with limited unplanned downtime as they continued to serve strong regional load. Equivalent availability factor for Temple I and Temple II was 99.7% and 96.4%, respectively, for the third quarter, with Temple II experiencing only 3.5 days of unplanned downtime. Despite operational excellence, third quarter results were below guidance due to lower than anticipated spark spreads on cooler weather than forecast.

BKV’s implied proportionate share of Power JV net earnings for the three months ended September 30, 2025, was $21.1 million, compared to earnings of $50.6 million for the three months ended September 30, 2024, and $20.6 million for the nine months ended September 30, 2025, compared to earnings of $27.6 million for the nine months ended September 30, 2024.

BKV’s implied proportionate share of Power JV Adjusted EBITDA was $20.4 million for the three months ended September 30, 2025, compared to $10.1 million for the three months ended September 30, 2024, and $48.0 million for the nine months ended September 30, 2025, compared to $33.5 million for the nine months ended September 30, 2024.

BKV’s pending acquisition of an additional 25% interest in the Power JV, which is expected to close in the first quarter of 2026, subject to certain closing conditions, will take the Company’s interest in the JV to 75% and represents another step forward in executing BKV’s strategy to expand and integrate its power platform. BKV remains focused on securing a long-term PPA to enhance revenue visibility and optimize generation at its Temple plants. With power demand in the U.S. and ERCOT markets accelerating due to rapid data center growth and increasing electrification, BKV is well positioned to capitalize on these trends.

	Three Months Ended September 30,						Nine Months Ended September 30,
		2025			2024			2025			2024
Temple I capacity factor		71.1	%		73.2	%		60.2	%		62.8	%
Temple II capacity factor		67.5	%		72.3	%		58.8	%		63.2	%
Total power generation (GWh)		2,246			2,369			5,746			6,133
Average power price ($/MWh)	$	46.29		$	35.30		$	48.58		$	43.10
Average natural gas cost	$	2.87		$	2.07		$	3.23		$	2.51
Average spark spread	$	25.82		$	20.82		$	25.63		$	25.53

Carbon Capture Utilization and Sequestration (“CCUS”)

The Barnett Zero Project sequestered approximately 43,900 and 113,200 metric tons of CO₂ equivalent during the three and nine months ended September 30, 2025, respectively. Since start-up in November 2023, the project has sequestered approximately 286,500 metric tons of CO₂ equivalent through September 30, 2025.

BKV continues to advance its seven Class VI well permit applications (six in Louisiana, one in Texas), where all applications under review have been deemed administratively complete and are progressing through the review process. The Company believes its proposed High West project aligns with Louisiana’s carbon management goals and would deliver meaningful economic and environmental benefits. Regarding recent developments in Louisiana, the governor signed a temporary moratorium on the consideration of new CCUS project permits. BKV views this action as a constructive step toward improving clarity and focus in the permitting process. Importantly, the state has prioritized review of existing applications, which benefits credible developers like BKV that have already submitted technically robust and administratively complete permit applications, and BKV remains confident in the ultimate approval of its permit applications.

The development of the East Texas project, as announced last quarter, remains on track with a target FID date in 1H26. BKV forecasts approximately 70,000 metric tons per year of CO₂ equivalent could be captured from the project. If approved at FID, and assuming the Company is able to execute definitive agreements on the terms and timeline it believes are obtainable, BKV expects this project, which is the second project it is developing with a leading diversified midstream company, to be the fourth of its current modular line of identified potential natural gas processing projects, following the previously announced natural gas processing project in the Eagle Ford.

Development of the Eagle Ford and Cotton Cove projects also remains on schedule, with first injection targeted for 1Q26 and 1H26 respectively, subject to receipt of all required permits. These projects are expected to achieve a sequestration rate of approximately 90,000 and 32,000 metric tons per year of CO₂ equivalent, respectively. The Cotton Cove injection well was successfully drilled in September 2025, and both projects have received EPA approval of their monitoring, reporting, and verification (MRV) plans.

BKV is also in the process of commencing Front-End Loading (FEL-2) studies for post-combustion carbon capture on large existing and new power plants. Following completion of these studies, which is targeted for 1Q26, BKV will evaluate how these initiatives may advance the Company’s broader strategy to supply low-carbon energy across the portfolio.

BKV believes that the Barnett Zero Project, together with the Cotton Cove Project and South Texas Project that the Company has identified, have a combined annual forecasted sequestration volume of approximately 375,000 metric tons of CO₂ equivalent by the end of 2026. This total excludes proposed projects with Comstock Resources, for which forecasted volumes have yet to be announced. BKV remains on track to reach an annual injection rate of 1 million metric tons of CO₂ equivalent by the end of 2027, reinforcing its position as a leading independent operator in the CCUS sector.

Upstream & Midstream

Total hydrocarbon production for the three months ended September 30, 2025 was 828.5 MMcfe/d, which consisted of 79% natural gas and 21% NGLs. This compares to total production for the three months ended September 30, 2024 of 762.6 MMcfe/d, which consisted of 79% natural gas and 21% NGLs. Total hydrocarbon production for the nine months ended September 30, 2025 was 800.4 MMcfe/d, which consisted of 79% natural gas and 21% NGLs. This compares to total production for the nine months ended September 30, 2024, of 792.5 MMcfe/d, which consisted of 80% natural gas and 20% NGLs. Third quarter production exceeded the mid-point of the previously guided range of 805-835 MMcfe/d due to several factors, including better than forecasted well performance on new development, effective base decline management, and accelerated pace of new development.

The increase in production volumes for the third quarter 2025 compared to the same period in 2024 is due to increased development pace and scale on a year-on-year basis.

On September 29, 2025, BKV closed the previously announced acquisition of Bedrock Energy Partners’ Barnett Shale assets. BKV acquired approximately 99,000 net acres, ~108 MMcfe/d of production as of second quarter 2025 (approximately 63% natural gas), 1,121 producing locations, approximately 800 Bcfe of 1P reserves (>70% PDP) using NYMEX strip pricing, and ~50 new drill locations at an equivalent 10,000 foot lateral length with accretive natural gas price break-evens compared to the Company’s existing inventory, in addition to ~80 refrac locations.

	Three Months Ended September 30,						Nine Months Ended September 30,
		2025			2024			2025			2024
Production
Net production per day (MMcfe/d)		828.5			762.6			800.4			792.5
Natural gas (MMcf)		60,325			55,456			172,776			172,213
NGL (MBbls)		2,621			2,428			7,498			7,415
Oil (MBbls)		29			23			126			75
Total (MMcfe)		76,225			70,162			218,520			217,153
Natural Gas ($/Mcf)
Average NYMEX Henry Hub price	$	3.07		$	2.16		$	3.39		$	2.10
Differential	$	(0.57	)	$	(0.58	)	$	(0.64	)	$	(0.55	)
Average realized prices, excluding derivatives	$	2.50		$	1.58		$	2.75		$	1.55
Average realized prices, including derivatives ⁽¹⁾	$	2.81		$	2.21		$	2.83		$	2.06
NGLs ($/Bbl)
Average realized prices, excluding derivatives	$	15.17		$	15.44		$	16.82		$	16.47
Average realized prices, including derivatives ⁽¹⁾	$	15.64		$	17.03		$	16.29		$	17.16
Oil ($/Bbl)
Average realized prices	$	59.62		$	68.91		$	61.32		$	70.92
Average Operating Cash Costs per Mcfe
Lease operating and workover	$	0.49		$	0.48		$	0.49		$	0.47
Taxes other than income	$	0.15		$	0.15		$	0.16		$	0.15
Gathering and transportation costs	$	0.81		$	0.78		$	0.83		$	0.77
Total	$	1.45		$	1.41		$	1.48		$	1.39

⁽¹⁾

The impact of derivative prices excludes $13.3 million of gains on derivative contract terminations for the nine months ended September 30, 2024.

Capital Expenditures

Accrued capital expenditures in the third quarter of 2025 were $79.6 million, which included $55.7 million for development capital and $23.9 million for CCUS and other expenditures. Accrued capital expenditures for the same period in 2024 were $24.4 million, which included $13.8 million for development capital and $10.6 million for CCUS and other expenditures.

Year-to-date accrued capital expenditures for 2025 were $216.4 million, which included $166.2 million for development capital and $50.2 million for CCUS and other expenditures. Accrued capital expenditures for the same period in 2024 were $57.3 million, which included $38.6 million for development capital and $18.7 million for CCUS and other expenditures.

Liquidity

As of September 30, 2025, BKV had cash and cash equivalents of $83.1 million.

Total debt as of September 30, 2025 was $500 million, which was made up of the 2030 Senior Notes. Net debt as of September 30, 2025 was $416.8 million, and net leverage ratio was 1.32x. BKV’s long-term net leverage target is to manage between 1.0x to 1.5x.

As of September 30, 2025, total liquidity for BKV was $868.1 million, which consists of $83.1 million in cash and cash equivalents and $785.0 million available under the Company’s RBL. RBL availability as of September 30, 2025, is based on the elected commitment amount of $800.0 million, less $15.0 million of letters of credit. On September 22, 2025, BKV Upstream Midstream amended the RBL to increase the borrowing base by $150.0 million and the elected commitment amount by $135.0 million. As of November 10, 2025, BKV had a zero balance on its revolving borrowings and $15.0 million of letters of credit were outstanding under the RBL, leaving $785.0 million of available capacity thereunder for future borrowings and letters of credit.

2025 Guidance

Accrued Capital Expenditures and Net Production ($ Millions)	Q4 2025
Development	$65 – $85
CCUS and other	$25 – $45
Total capital expenditures	$90 – $130

Net production (MMcfe/d)	885 – 935

Per Unit Operating Costs ($/Mcfe)
Lease operating and workover	$0.50 – $0.54
Gathering and transportation	$0.81 – $0.85
General and administrative (excl. stock comp)	$0.35 – $0.39
General and administrative (stock comp)	$0.04 – $0.05

Natural Gas Price ($/Mcfe)
Average differential	$(0.55) – $(0.65)

Power ($ Millions)
Power JV Adjusted EBITDA	$10 – $30

Third Quarter 2025 Earnings Conference Call

The Company plans to host a conference call to discuss results today, November 10, 2025 at 10 AM ET. 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 www.ir.bkv.com. 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 13756033. 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.

Contacts

Investor Contacts:

Michael Hall

BKV Corporation

Vice President, Investor Relations

InvestorRelations@bkvcorp.com

Caldwell Bailey

ICR, Inc.

BKVIR@ircinc.com

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