BKV (NYSE:BKV) executives used the company’s fourth-quarter and full-year 2025 earnings call to outline what they described as a “transformational year,” highlighting operational execution across upstream natural gas, carbon capture, and power generation, as well as a strengthened balance sheet and updated targets for 2026 and beyond.
Upstream: production growth, efficiency gains, and Bedrock integration
Chief Executive Officer Chris Kalnin said the company delivered approximately 8% exit-to-exit organic production growth in 2025 on upstream development capital “well within cash flow,” pointing to “top-tier” finding and development costs. President of Upstream Eric Jacobsen added that BKV beat and raised legacy production guidance twice during the year while staying within its initial development capital budget and holding lease operating expense at the midpoint of guidance.
The company also emphasized what it calls positive offset wells (POW), describing sustained uplift in parent well performance following new completions. Jacobsen said early analysis across about 30 new wells and their offsets showed roughly 22% uplift above type curve through the first 150 days, with about half attributed to POW.
In the fourth quarter, Jacobsen said BKV reported zero reportable safety incidents and production of 940 MMcfe/d, which he said outperformed the upper end of guidance. The company brought its first Northeast Pennsylvania (NEPA) well of the year online and drilled three additional wells with completions expected mid-to-late first quarter 2026.
BKV also discussed the integration of its Bedrock acquisition, which closed in the third quarter and expanded the company’s footprint in the Fort Worth Basin. Kalnin said the deal added more than 100 MMcfe/d of production and nearly 1 Tcfe of proved reserves. Jacobsen said integration was progressing ahead of pace and that value creation was exceeding underwriting assumptions, citing evaluation of over 60 equivalent 10,000-foot Tier 1 locations and more than 100 refrac candidates, compared with 50 and 80, respectively, that were underwritten.
For 2026, Jacobsen guided to full-year upstream production of 935 MMcfe/d on $240 million of development capital, “right in line” with the 2025 program. He said Winter Storm Fern caused “significant and unanticipated downtime,” but BKV still expects first-quarter production of 900–930 MMcfe/d and first-quarter development capital of $70 million–$100 million.
Carbon capture: expanded pipeline and higher injection target
Management highlighted increased activity in BKV’s carbon capture business in 2025, including a partnership with Copenhagen Infrastructure Partners (CIP), which committed up to $500 million for joint investment in carbon capture opportunities. Kalnin said the company’s Barnett Zero facility has injected more than 311,000 metric tons cumulatively since first injection in November 2023.
During the call, BKV announced a higher near-term target, refreshing its CCUS injection goal to a 1.5 million tons per year run rate within 2028. Jacobsen said BKV remains on track to start up its Cotton Cove and Eagle Ford facilities in the first half of 2026.
Executives also discussed CCUS agreements with Comstock Resources covering CO2 sequestration from Comstock’s Bethel and Marquez facilities in the Western Haynesville. Kalnin said BKV expects to commence commercial operations on those projects in 2028. In the Q&A, management did not provide a detailed volume ramp but said volumes should be multiples of BKV’s current injection amounts and that capital spending on such projects typically follows a construction “S curve,” with the majority spent in the final 12 months prior to injection.
Asked about economics, Jacobsen said BKV models CCUS project economics in the range of about $48 per ton of EBITDA. He also noted that BKV has filed seven Class VI permits—six in Louisiana—and referenced the High West project area as having significant nearby emissions. The company also said it has commissioned studies to evaluate post-combustion carbon capture technologies.
Power: Temple performance, JV consolidation, and PPA discussions
Chief Financial Officer David Tameron said the Temple Energy Complex delivered high availability and minimal unplanned downtime in 2025. The Temple plants posted a 57% combined average capacity factor in the fourth quarter and 59% for the full year, generating over 7,600 GWh. For the fourth quarter, management cited average power prices of $49.69/MWh and natural gas costs of $3.55/MMBtu, yielding an average spark spread of $24.54/MWh. For the full year, average power prices were $48.86/MWh and gas costs $3.31/MMBtu, producing an average spark spread of $25.36, which Tameron said was up more than 15% versus the prior year.
The Power JV generated adjusted EBITDA of $31 million in the fourth quarter and $127 million for the year, when BKV held a 50% interest. Following the January 30 close of a power JV transaction, Kalnin said BKV now owns 75% of the 1.5 GW Temple generation capacity and will consolidate the JV beginning in first-quarter 2026.
Tameron guided to first-quarter 2026 gross Power JV EBITDA of $25 million–$35 million, citing typical seasonality, storm-related power pricing capture, and strong operating performance. He said the Temple assets had no storm-related downtime during Winter Storm Fern. For full-year 2026, BKV guided to Power JV EBITDA of $135 million–$175 million.
Management said it continues to evaluate proposals from multiple potential long-term offtakers for the Temple complex, targeting a potential PPA in 2026 to early 2027. In the Q&A, Kalnin described expected PPA structures as potentially covering about half the complex’s capacity—similar to how the company hedges—allowing flexibility for maintenance and leaving remaining volumes merchant, including selling excess power to the grid.
Financial results, balance sheet, and 2026 capital plan
Tameron reported combined adjusted EBITDA attributable to BKV of $109 million in the fourth quarter and $390 million for full-year 2025, representing a 19% increase quarter-over-quarter and a 47% increase year-over-year. Adjusted net income was $27 million, or $0.29 per diluted share, in the fourth quarter, and $122 million, or $1.40 per diluted share, for the full year.
Capital expenditures totaled $102 million in the fourth quarter and $319 million for 2025, which Tameron said was below the low end of original guidance. He said BKV generated positive free cash flow for the year after funding capital investments across business lines, excluding any cash contribution from the Power JV.
At year-end, BKV reported total debt of $500 million, consisting of recently issued senior notes, with a 0.9x net leverage ratio. Cash and cash equivalents were $199 million, and total liquidity was $984 million, which the company said was more than double the prior year.
For 2026, BKV outlined a capital program with three components:
- Total growth CapEx of $410 million–$560 million, including $135 million of gross strategic power capital.
- On a net basis and excluding power growth capital, a targeted net capital investment midpoint of $324 million, described as effectively flat year over year.
- An expectation that total full-year net CapEx will be fully funded within cash flow at current strip prices.
On hedging, management said upstream hedges cover just over 60% of forecast 2026 production, with gas hedged at $3.85/MMBtu and NGLs at $22 per barrel. In power, BKV said it has hedged 40% of ERCOT generation capacity for 2026 via heat rate call options and has locked in fixed spark spreads on roughly 100 MW while retaining merchant exposure on the remainder.
In closing remarks, Kalnin said the company’s “closed-loop” strategy—linking natural gas production, power generation, and carbon capture—is operating today and aimed at serving evolving demand from hyperscalers, data center developers, and industrial customers. Management said it enters 2026 with momentum across upstream integration, power contracting efforts, and an expanding CCUS pipeline.
About BKV (NYSE:BKV)
BKV Corporation engages in the acquisition, operation, and development of natural gas and NGL properties. It is also involved in the gathering, processing, and transportation of natural gas. The company was founded in 2015 and is based in Denver, Colorado with additional offices in Tunkhannock, Pennsylvania and Fort Worth, Texas. BKV Corporation, LLC operates as a subsidiary of Banpu North America Corporation.
