BKV Corporation

Company at a glance

• BKV Corporation (BKV) is an energy company focused on:
  • Upstream natural gas production
  • Natural gas midstream gathering, processing, and transportation
  • Natural gas-fired power generation
  • Carbon capture, utilization, and sequestration (CCUS)
• Operating model: a closed-loop approach linking upstream, midstream, power, and CCUS to improve cost efficiency, commercial optimization, and reliability across the value chain.
• Strategic emphasis: growth through accretive acquisitions, disciplined capital deployment, and a net-zero emissions pathway (Scope 1–3) with CCUS as a core enabler.

Business lines

Natural Gas Production

• Core locations: Barnett Shale (Fort Worth Basin) and NEPA (Northeast Pennsylvania).
• As of 12/31/2025:
  • Total acreage: ~563,126 net acres.
  • Net daily production: 835.5 MMcfe/d (includes Bedrock Acquisition impact), composition ~80% natural gas and ~20% NGLs.
  • Proved reserves: 5,921 Bcfe; ~7.4% year-over-year base decline rate over the next 10 years.
• Barnett:
  • ~544,029 net acres.
  • Average daily production 742.0 MMcfe/d in 2025; ~77% natural gas, ~23% NGLs.
  • Operated wells: ~96.5% working interest; Effective NRI ~80.2%.
  • 2025 production: 270.8 Bcfe.
• NEPA:
  • ~19,097 net acres.
  • Average net daily production 93.6 MMcfe/d in 2025; 100% natural gas.
  • Operated wells: ~87.8% working interest.
  • 2025 production: 34.2 Bcfe.
• Bedrock Acquisition (9/29/2025):
  • Adds ~96,000 net acres and 1,121 producing locations.

  • 1 Tcfe proved reserves (mostly PDP).

  • Low 1- and 5-year base decline rates (~7%).
  • Production expected to increase by >100 MMcfe/d.

Natural Gas Midstream

• Purpose: gather, process, and transport gas to support upstream assets and third-party producers; enhance margins and provide development flexibility.
• Barnett midstream:
  • ~870 miles of gathering pipeline, 61 midstream compressors, one amine processing unit.
  • 2025: ~202 MMcf/d of gross production gathered/processed.
  • Majority of Barnett volumes gathered/transported under market-based arrangements.
• Regional arrangements:
  • Barnett: a mix of volumes gathered by BKV and third-party arrangements (e.g., ONEOK/Bridgeport).
  • NEPA: third-party gathering/treatment under contract with UGI Energy Services Midstream, Williams, and Energy Transfer.
  • MVCs: 82 MMcf/d MVC related to gathering/treating/transport as of 12/31/2025; terms generally 10–20 years; average remaining term ~3 years across contracts.

Power Generation

• 50% owned in BKV-BPP Power Joint Venture (Temple Plants) as of 12/31/2025.
• Temple I and Temple II: ~752 MW and ~747 MW nameplate capacity; serve ERCOT North, Texas.
• Plant performance:
  • Rapid response to demand.
  • Baseload heat rates ~6,904 and ~6,950 Btu/kWh (below ERCOT CCGT average).
• Retail marketing:
  • Since Feb 2023, BKV-BPP Power launched BKV Energy for retail electricity marketing in Texas.
  • As of 12/31/2025, BKV Energy serves over 58,000 customers in Texas.
• Ownership change:
  • Post-closing on 1/30/2026, BKV-BPP Power Joint Venture ownership becomes 75% BKV and 25% BPPUS.

CCUS (Carbon Capture, Utilization, and Sequestration)

• Objective: reduce GHG emissions by capturing CO2 from natural gas activities and sequestering geologically.
• Focus: offset Scope 1/2 emissions from owned upstream and midstream, with potential contribution to Scope 3.
• Project types and status:
  • Class II (NGP) projects:
    • Barnett Zero: operational since Nov 2023.
    • Eagle Ford: FID Dec 18, 2024; target ~90,000 metric tons CO2/year sequestration.
    • Cotton Cove: FID Oct 18, 2022; ~32,000 tpy; 51%/49% JV structure.
    • East Texas: FID Dec 11, 2025; ~70,000 tpy.
    • Additional pre-FID projects identified.
    • Class II forecast: 0.1 Mtpy actual in 2025 rising to 2.1 Mtpy in the early 2030s.
  • Class VI projects:
    • High West (Louisiana): ~21,000 acres pore space; Phase I potential ~10 Mt/yr sequestration with ~200 Mt storage capacity; permits filed; primacy granted to Louisiana.
    • Other locations in Louisiana and Texas under evaluation.
  • Combined forecast: total ~19.0 Mtpy CO2 in the early 2030s (Class II + Class VI contributions).
• Investments and financing:
  • Aggregate estimated capex for CCUS projects: ~$1.3–$1.6 billion through 2030.
  • External funding anticipated via joint ventures, project equity, debt, and grants; majority expected to be externally funded with remainder from cash flows.
  • Projects rely on Section 45Q tax credits (up to $85/ton CO2 stored, or $17/ton if wage/apprenticeship requirements aren’t satisfied); 12-year credits for facilities begun before 1/1/2033.
  • Project economics depend on external funding, permits, and 45Q credits; development can be scaled by selecting sequestration-only versus capture/transport/sequestration scopes.
• Governance:
  • BKV-CIP Joint Venture formed 5/8/2025 with a Class B Member.
  • BKV contributed CCUS assets (Barnett Zero, Eagle Ford, Cotton Cove-related assets) and accrued 45Q receivables.
  • Class B Member committed up to $500 million for a 49% equity stake.

Carbon Sequestered Gas (CSG)

• Product concept: bundle low-carbon natural gas with verifiable carbon credits to create a carbon-neutral or carbon-sequestered product.
• Certification and tracking:
  • Target third-party verification using ACR or Verra methodologies.
  • Plan to use a third-party blockchain ledger and tokens for tracking emissions attributes.
• Offtake and partners:
  • Contract with Kiewit Infrastructure South Co. for up to 100 MMBtu/d of CSG.
  • August 2025 agreement with Gunvor Group for up to 10,000 MMBtu/d to market and sell the product.
• Delivery contingent on certification (e.g., ACR) and third-party verification; product aims to access markets for low-carbon gas and associated carbon credits.

Customers and markets

• BKV Energy retail customers: over 58,000 in Texas as of 12/31/2025.
• CCUS, chemical, and power ventures include offtake and third-party processing arrangements with industrial and plant partners.

ESG position and certifications

• Certification:
  • Project Canary TrustWell: ~72% of NEPA production and ~46% of Barnett production certified; Gold/Silver ratings achieved.
  • TrustWell program to sunset in 2026; potential alignment with MiQ or OGMP 2.0 under consideration.
• Net-zero pathway:
  • Path to net-zero (Scope 1/2) relies on CCUS and operational measures.
  • Pad of the Future program reduced pneumatic-related emissions; 75%+ of pneumatic devices/conversions completed by 12/31/2025.
  • SRECs from the BKV-BPP solar facility expected to offset ~30% of Scope 2 emissions from owned upstream and midstream operations as of 12/31/2025.
  • Scope 3 (use of sold product): estimated ~17.0 Mtpy CO2e as of 2024, largely from Category 11 (Use of Sold Product).
  • Plan: offset Scope 1/2 emissions by the early 2030s and Scope 3 emissions by the late 2030s through CCUS and related initiatives.
• Emissions monitoring:
  • Leak detection and repair program with continuous monitoring, satellite/aerial surveys, and inspections.

Financial events and capital structure

• IPO (Sept 27, 2024):
  • Issued 15,000,000 shares at $18.00 per share.
  • Underwriters had a 30-day option to purchase up to 2,250,000 additional shares; 701,003 shares were purchased on Oct 28, 2024.
  • Net proceeds: $265.7 million (after $17.0 million in offering expenses).
• Use of IPO proceeds:
  • $200.0 million used to pay down a portion of outstanding borrowings under the RBL Credit Agreement.
  • $50.0 million used to repay the outstanding balance (including interest) under BNAC, a related-party loan with the sponsor.
  • Remaining proceeds used for growth capital expenditures and general corporate purposes.
• Ownership changes:
  • BKV-BPP Power Joint Venture ownership adjusted to 75% BKV / 25% BPPUS after the January 30, 2026 closing.

Notable assets and developments

• Bedrock Acquisition (9/29/2025): ~96,000 net acres, 1,121 producing locations, >1 Tcfe PDP reserves; expected >100 MMcfe/d production uplift.
• Eagle Ford CCUS: FID 12/18/2024; ≈90,000 tpy CO2 sequestration target.
• Cotton Cove CCUS: FID 10/18/2022; ≈32,000 tpy CO2 sequestration; 51%/49% JV.
• East Texas CCUS: FID 12/11/2025; ≈70,000 tpy CO2 sequestration.
• High West Class VI: Louisiana ~21,000 acres; Phase I with ~10 Mt/yr potential and ~200 Mt total storage capacity.

Key performance metrics (2025)

• Production volumes (2025):
  • Barnett: 270.8 Bcfe.
  • NEPA: 34.2 Bcfe.
  • Total Company: 305.0 Bcfe.
• Average sales prices (excluding derivative settlements) for 2025:
  • Barnett natural gas: $2.91/Mcf.
  • Barnett NGLs: $17.00/Bbl.
  • Barnett oil: $59.38/Bbl.
  • NEPA natural gas: $1.98/Mcf.
  • Total Company: $2.81/Mcfe.
• Average sales prices including derivatives (2025):
  • Natural gas: $2.75/Mcf.
  • NGLs: $16.84/Bbl.
  • Oil: $59.50/Bbl.
  • Total Company: $2.79/Mcfe.
• Average production cost per Mcfe (2025):
  • Barnett: $1.45.
  • NEPA: $0.29.
  • Total Company: $1.32.

Risk considerations

• CCUS program performance depends on external funding, permits, and eligibility for Section 45Q credits.
• Some projects are pre-FID or contingent on definitive agreements and external investment; timelines and volumes are subject to change.
• Net-zero commitments include potential use of environmental attributes; BKV may not retain all attributes for projects funded by third parties.
• Market and regulatory developments, including certification program changes, could influence ESG disclosures and market access.