BKV Corp Q3 FY25 Results

“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 1 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.”

“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 thepurchase 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 3 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.”