BKV Corporation Reports Third Quarter 2025 Financial and Operational Results

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

Strategic Power JV Acquisition Highlights

Fourth Quarter 2025 Guidance Highlights

“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

____________________________________________________

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.

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

____________________________________________________

“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 CO 2 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 CO 2 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 CO 2 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 CO 2 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 CO 2 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 CO 2 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)

126

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

0.16

0.15

Gathering and transportation costs

0.81

0.78

0.83

0.77

Total

1.45

1.41

1.48

1.39

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. BKV (and its predecessor entity) was founded in 2015, and BKV and its employees are committed to building a different kind of energy company. BKV is one of the top 20 gas-weighted natural gas producers in the United States and the largest natural gas producer by gross operated volume in the Barnett Shale. BKV Corporation is the parent company for the BKV family of companies. For more information, visit the BKV website at www.bkv.com.

Forward-Looking Statements

This press release includes “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements, which are not historical facts, include statements regarding BKV’s strategy, future operations, financial position, estimated revenue and losses, projected costs, prospects, plans and objectives of management, and often contain words such as “expect,” “project,” “estimate,” “believe,” “anticipate,” “intend,” “budget,” “plan,” “seek,” “aspire,” “envision,” “forecast,” “target,” “predict,” “may,” “should,” “would,” “could,” “will,” and similar expressions. Actual results and future events could differ materially from those anticipated in such statements, and such forward-looking statements may not prove to be accurate. Such forward-looking statements include, but are not limited to, statements about the consummation and timing of the Power JV transaction, the anticipated benefits, opportunities and results with respect to the Power JV transaction and the Bedrock acquisition, including any expected value creation from the Power JV transaction or the Bedrock acquisition, and any reserves additions, midstream opportunities and other anticipated impacts from the Bedrock acquisition, anticipated efficiencies, power plant reliability and strategic growth and power purchase agreement opportunities relating to the Power JV and the Power JV Transaction, as well as guidance, projected or forecasted financial and operating results, future liquidity, leverage, results in certain basins, objectives, project timing, expectations and intentions, regulatory and governmental actions and other statements that are not historical facts. All forward-looking statements, expressed or implied, in this press release are based only on information currently available to BKV and speak only as of the date on which they are made. BKV undertakes no obligation to release publicly any update to any of these forward-looking statements except as required by federal securities laws. Forward-looking statements are based on management’s current views and assumptions and involve risks and uncertainties that could cause actual results to differ materially from historical experience or present expectations, including but not limited to assumptions, risks and uncertainties regarding the ability of the parties to consummate the Power JV transaction in the anticipated timeframe or at all; risks related to the satisfaction or waiver of the conditions to closing the Power JV transaction in the anticipated timeframe or at all; disruption from the Company’s acquisitions, including the Bedrock acquisition, making it more difficult to maintain business and operational relationships; significant transaction costs associated with the Company’s acquisitions, including the Power JV transaction and the Bedrock acquisition; the risk of litigation and/or regulatory actions related to the Company’s acquisitions, including the Power JV transaction and the Bedrock acquisition, as well as our ability to successfully fund, pursue and develop our CCUS business; fluctuation in spark spreads, expected increase in demand for power generation and our ability to serve that demand from our power business, our ability to develop, market and sell our carbon sequestered gas product; and management's outlook guidance or forecasts of future events, including projected capital expenditures, production volumes, operating costs, pricing differentials, and Power JV Adjusted EBITDA. For further discussions of risks and uncertainties applicable to forward-looking statements, you should refer to BKV’s filings with the Securities and Exchange Commission (the “SEC”), including the “Risk Factors” section of BKV’s most recent Annual Report on Form 10-K and any subsequent Quarterly Reports on Form 10-Q.

BKV Corporation

Condensed Consolidated Balance Sheets

($ thousands)

(Unaudited)

September 30, 2025

December 31, 2024

Assets

Current assets

Cash and cash equivalents

83,115

14,868

Accounts receivable, net

87,187

54,435

Accounts receivable, related parties

11,380

11,414

Prepaid expenses

3,509

7,638

Inventory

6,422

6,255

Commodity derivative assets, current

9,523

—

Other current assets

408

—

Total current assets

201,544

94,610

Natural gas properties

Developed properties

2,883,969

2,315,167

Undeveloped properties

10,830

10,757

Midstream assets

276,849

276,644

Accumulated depreciation, depletion, and amortization

(812,963

)

(714,287

)

Total natural gas properties, net

2,358,685

1,888,281

Other property and equipment, net

124,089

97,300

Goodwill

18,417

Investment in the Power JV

135,726

115,173

Commodity derivative assets

15,470

—

Other noncurrent assets

38,288

17,307

Total assets

2,892,219

2,231,088

Liabilities, mezzanine equity, and equity

Current liabilities

Accounts payable and accrued liabilities

215,501

121,366

Contingent consideration payable

—

20,000

Income taxes payable to related party

2,333

1,438

Commodity derivative liabilities, current

8,832

20,277

Other current liabilities

9,454

3,124

Total current liabilities

236,120

166,205

Asset retirement obligations

227,678

198,795

Commodity derivative liabilities

22,735

47,357

Deferred tax liability, net

106,496

88,688

Long-term debt, net

486,559

165,000

Other noncurrent liabilities

6,618

5,469

Total liabilities

1,086,206

671,514

Commitments and contingencies

Mezzanine equity

Noncontrolling interest

6,012

—

Stockholders' equity

Common stock, $0.01 par value; 500,000 authorized shares; 89,972 and 84,600 shares issued and outstanding as of September 30, 2025 and December 31, 2024, respectively

1,566

1,512

Treasury stock, shares at cost; 214 shares as of September 30, 2025 and December 31, 2024

(6,663

)

(6,663

)

Additional paid-in capital

1,579,307

1,447,671

Retained earnings

218,992

117,054

Total stockholders' equity

1,793,202

1,559,574

Noncontrolling interest

6,799

—

Total equity

1,800,001

1,559,574

Total liabilities, mezzanine equity, and equity

2,892,219

2,231,088

BKV Corporation

Condensed Consolidated Statements of Operations

($ thousands, except per share amounts)

(Unaudited)

Three Months Ended

September 30,

Nine Months Ended

September 30,

2025

2024

2025

2024

Revenues and other operating income

Natural gas, NGL, and oil sales

192,435

126,952

608,290

394,493

Midstream revenues

2,582

2,662

8,092

10,168

Derivative gains, net

74,890

35,308

34,907

24,143

Marketing revenues

1,650

1,738

9,507

8,705

Gain on sale of business

—

5,968

Section 45Q tax credits

3,740

4,281

9,621

10,254

Related party revenues

447

426

1,298

2,629

Other

2,114

1,720

7,007

4,839

Total revenues and other operating income

277,858

173,087

678,722

461,199

Operating expenses

Lease operating and workover

36,920

33,588

106,151

102,228

Taxes other than income

11,643

10,688

35,269

31,903

Gathering and transportation

61,822

54,705

180,641

167,810

Depreciation, depletion, amortization, and accretion

37,882

57,366

115,896

168,845

General and administrative

30,736

33,602

86,509

73,543

Other

16,559

4,126

37,265

15,402

Total operating expenses

195,562

194,075

561,731

559,731

Income (loss) from operations

82,296

(20,988

)

116,991

(98,532

)

Other income (expense)

Gains on contingent consideration liabilities

—

3,903

—

9,973

Earnings from the Power JV

21,050

50,562

20,553

27,602

Loss on early extinguishment of debt

—

(13,877

)

Interest expense

(6,475

)

(9,197

)

(16,985

)

(40,443

)

Interest expense, related party

—

(1,329

)

—

(5,181

)

Interest income

274

202

585

3,606

Other income

568

1,019

1,344

1,369

Income (loss) before income taxes

97,713

24,172

122,488

(115,483

)

Income tax benefit (expense)

(20,000

)

(11,303

)

(18,706

)

30,070

Net income (loss)

77,713

12,869

103,782

(85,413

)

Less: net income attributable to noncontrolling interest

863

—

1,026

—

Net income (loss) attributable to BKV

76,850

12,869

102,756

(85,413

)

Net income (loss) per common share attributable to BKV:

Basic

0.90

0.19

1.20

(1.28

)

Diluted

0.90

0.18

1.20

(1.28

)

Weighted average number of common shares outstanding:

Basic

84,776

68,023

84,731

66,891

Diluted

84,980

70,637

84,853

66,891

BKV Corporation

Condensed Consolidated Statements of Cash Flows

($ thousands)

(Unaudited)

Nine Months Ended September 30,

2025

2024

Cash flows from operating activities:

Net income (loss)

103,782

(85,413

)

Adjustments to reconcile net income (loss) to net cash provided by operating activities:

Depreciation, depletion, amortization, and accretion

116,176

169,111

Equity-based compensation expense

9,080

12,819

Deferred income tax (benefit) expense

17,808

(31,272

)

Unrealized (gains) losses on derivatives, net

(24,143

)

82,142

Gains on contingent consideration liabilities

—

(9,973

)

Settlement of contingent consideration

(20,000

)

(20,000

)

Proceeds from the sale of call options

—

23,502

Payments for the purchase of put options

(16,206

)

—

Write-off of capitalized software costs

5,643

—

(Gains) losses on sales of assets

1,772

(816

)

Gain on sale of business

—

(5,968

)

Transaction costs from sale of business

(397

)

(3,461

)

Earnings from the Power JV

(20,553

)

(27,602

)

Loss on early extinguishment of debt

—

13,877

Other, net

3,947

2,016

Changes in operating assets and liabilities:

Accounts receivable, net

(18,233

)

(3,412

)

Accounts receivable, related party

(10,784

)

Accounts payable and accrued liabilities

12,381

(30,841

)

Other changes in operating assets and liabilities

2,227

851

Net cash provided by operating activities

173,318

74,776

Cash flows from investing activities:

Asset acquisition

(220,283

)

—

Cash acquired in consolidation of BKV-BPP Cotton Cove

2,077

—

Capital expenditures

(208,969

)

(52,774

)

Deposit on fixed asset purchase

(15,000

)

—

Proceeds from sale of business

—

131,708

Proceeds from sales of assets

6,875

1,718

Other investing activities, net

257

(23

)

Net cash provided by (used in) investing activities

(435,043

)

80,629

Cash flows from financing activities:

Net proceeds on long-term debt

490,000

—

Proceeds from issuance of common stock in initial public offering, net of underwriting discounts and commissions

—

253,800

Payments on notes payable to related party

—

(75,000

)

Proceeds under RBL Credit Agreement

577,000

520,000

Payments on RBL Credit Agreement

(742,000

)

(330,000

)

Payment on term loan agreement

—

(456,000

)

Payment of debt issuance costs

(4,422

)

(8,054

)

Proceeds from draws on credit facilities

—

44,000

Payments on credit facilities

—

(171,000

)

Payments of deferred offering costs

—

(1,369

)

Debt extinguishment costs

—

(10,213

)

Redemption of common stock issued upon vesting of equity-based compensation and other

—

(2,081

)

Net share settlements, equity-based compensation

(1,644

)

(53,239

)

Cash contributions from noncontrolling interest

11,038

—

Net cash provided by (used in) financing activities

329,972

(289,156

)

Net increase (decrease) in cash, cash equivalents, and restricted cash

68,247

(133,751

)

Cash, cash equivalents, and restricted cash, beginning of period

14,868

165,069

Cash and cash equivalents end of period

83,115

31,318

Volume of Derivative Activities

As of September 30, 2025, the Company’s derivative activities based on volume and contract prices, categorized by primary underlying risk and related commodity, by year, were as follows:

The following table represents natural gas commodity derivatives indexed to NYMEX Henry Hub pricing:

Instrument

MMBtu

Weighted Average

Price (USD)

Weighted Average

Price Floor

Weighted

Average

Price

Ceiling

Fair Value as of

September 30, 2025

($ thousands)

2025

Swap

22,567,367

3.58

(233

)

Collars

2,488,343

3.71

4.14

571

2026

Swap

104,758,689

3.85

(3,892

)

Collars

28,499,328

3.56

4.23

2,034

Call options

36,500,000

5.00

(9,854

)

Put options

29,200,000

3.00

5,240

2027

Swap

67,050,383

4.04

5,711

Collars

37,662,319

3.57

4.00

(5,347

)

Call options

36,500,000

5.00

(13,619

)

Put options

36,500,000

3.00

9,332

2028

Swaps

26,375,323

4.06

6,894

The following table represents natural gas basis derivatives based on the applicable basis reference price listed below:

Instrument

Basis Reference Price

MMBtu

Weighted

Average Basis Differential

Fair Value as of

September 30, 2025

($ thousands)

2025

Swap

Transco Leidy Basis

3,220,000

(0.86

)

Swap

HSC Basis

7,360,000

(0.45

)

(1,190

)

Swap

Transco St 85 (Z4) Basis

5,980,000

0.45

(47

)

Swap

NGPL TXOK Basis

5,709,048

(0.37

)

(487

)

2026

Swap

Transco Leidy Basis

14,600,000

(0.03

)

(304

)

Swap

HSC Basis

18,250,000

(0.05

)

(332

)

Swap

NGPL TXOK Basis

25,308,643

(0.06

)

(1,615

)

2027

Swap

NGPL TXOK Basis

16,965,270

(0.09

)

(866

)

The following table represents natural gas liquids commodity derivatives for contracts, by contract type, expiring through December 31, 2027, based on the applicable index listed below:

Instrument

Commodity Reference Price

Gallons

Weighted Average Price (USD)

Fair Value as of September 30, 2025

($ thousands)

2025

Swap

OPIS Purity Ethane Mont Belvieu

39,621,038

0.26

(333

)

Swap

OPIS IsoButane Mont Belvieu Non-TET

2,943,023

0.85

(249

)

Swap

OPIS Normal Butane Mont Belvieu Non-TET

4,218,379

0.82

(322

)

Swap

OPIS Propane Mont Belvieu Non-TET

16,354,066

0.73

571

Swap

OPIS Natural Gasoline Mont Belvieu Non-TET

6,372,043

1.39

635

2026

Swap

OPIS Purity Ethane Mont Belvieu

142,691,481

0.25

(1,117

)

Swap

OPIS IsoButane Mont Belvieu Non-TET

10,075,218

0.83

(299

)

Swap

OPIS Normal Butane Mont Belvieu Non-TET

16,928,342

0.80

(223

)

Swap

OPIS Propane Mont Belvieu Non-TET

59,163,120

0.69

Swap

OPIS Natural Gasoline Mont Belvieu Non-TET

25,835,930

1.37

2,637

2027

Swap

OPIS Purity Ethane Mont Belvieu

79,965,970

0.28

405

Swap

OPIS IsoButane Mont Belvieu Non-TET

2,732,077

0.76

(94

)

Swap

OPIS Normal Butane Mont Belvieu Non-TET

4,873,274

0.74

(121

)

Swap

OPIS Propane Mont Belvieu Non-TET

15,478,884

0.64

(287

)

Swap

OPIS Natural Gasoline Mont Belvieu Non-TET

6,777,531

1.26

147

Supplemental Non-GAAP Financial Measures

This release includes the non-GAAP financial measures described below. These non-GAAP measures are intended to provide additional information only and should not be considered as alternatives to, or more meaningful than, net income attributable to BKV, diluted EPS, net income (loss), net cash provided by operating activities, or any other measure calculated in accordance with GAAP.

As a result of C Squared Solutions, Inc.’s noncontrolling equity interest in the CCUS JV that commenced on May 8, 2025, the Company has adjusted its non-GAAP measures of Combined Adjusted EBITDAX, Adjusted Free Cash Flow, and Adjusted Free Cash Flow Margin. Beginning in the second quarter of 2025, such non-GAAP measures will be adjusted to exclude the proportionate share of Adjusted EBITDAX and Adjusted Free Cash Flow attributable to the noncontrolling interested held by C Squared Solutions, Inc., and will be referred to as Combined Adjusted EBITDAX attributable to BKV, Adjusted Free Cash Flow attributable to BKV, and Adjusted Free Cash Flow Margin attributable to BKV. Such non-GAAP measures have been presented in this release for the comparative period have been calculated based on the updated definitions.

Adjusted Net Income (Loss) and Adjusted EPS

The Company defines Adjusted Net Income (Loss) as net income (loss) attributable to BKV before (i) non-cash derivative gains (losses), (ii) gains (losses) on contingent consideration liabilities, (iii) certain equity-based compensation expense, (iv) the portion of settlements paid (received) for early-terminated derivative contracts that relate to future periods, (v) other nonrecurring transactions, and (vi) the tax impact on these adjustments using a 23% statutory rate. The Company defines Adjusted EPS as Adjusted Net Income (Loss) divided by diluted weighted average common shares outstanding.

We believe Adjusted Net Income (Loss) and Adjusted EPS are useful performance measures because they allow us to effectively evaluate our operating performance and results of operations from period to period and against our peers, without regard to our financing methods, corporate form, capital structure, or one-time events. We exclude the items listed above from net income (loss) in arriving at Adjusted Net Income (Loss) and Adjusted EPS because these amounts can vary substantially from company to company within our industry depending upon accounting methods and book values of assets, capital structures, and the method by which the assets were acquired. Our presentation of Adjusted Net Income (Loss) and Adjusted EPS should not be construed as an inference that our results will be unaffected by unusual or non-recurring items. Other companies, including other companies in our industry, may not use Adjusted Net Income (Loss) and Adjusted EPS or may calculate this measure differently than as presented in this release, limiting its usefulness as a comparative measure.

The table below presents a reconciliation of Adjusted Net Income (Loss) to net income, our most directly comparable GAAP financial measure for the periods indicated.

Three Months Ended

September 30,

Nine Months Ended

September 30,

($ Thousands, except EPS)

2025

2024

2025

2024

Net income (loss) attributable to BKV

76,850

12,869

102,756

(85,413

)

Adjustment to net income (loss) attributable to BKV:

Net unrealized derivative (gains) losses

(55,193

)

3,042

(24,143

)

82,142

Change in contingent consideration

—

(3,903

)

—

(9,973

)

Acceleration of equity-based compensation due to IPO

—

10,508

—

10,508

Gain on sales of non-operated interest in proved reserves

—

(5,451

)

Impairment of asset held for sale

—

2,446

—

Loss on early extinguishment of debt

—

13,877

Other nonrecurring transactions

10,541

—

21,826

—

Early settlement of derivative contracts (1)

—

(13,250

)

Early settlements of derivative contracts related to the current period (2)

—

8,350

Total adjustments before taxes

(44,652

)

9,647

129

86,203

Tax effect of adjustments

10,270

(2,219

)

(30

)

(19,827

)

Total adjustments after taxes

(34,382

)

7,428

66,376

Adjusted Net Income (Loss)

42,468

20,297

102,855

(19,037

)

Adjusted Net Income (Loss) per basic share

0.50

0.30

1.21

(0.28

)

Adjusted Net Income (Loss) per diluted share

0.50

0.29

1.21

(0.28

)

Basic weighted-average shares of common stock outstanding

84,776

68,023

84,731

66,891

Add dilutive effects of TRSUs (3)

204

373

122

—

Add dilutive effects of PRSUs (3)

—

2,241

—

Diluted weighted-average common shares outstanding

84,980

70,637

84,853

66,891

____________________________________________________

Reflects total cash settlements during the period upon termination of certain natural gas commodity derivative swap and collar contracts prior to their contractual settlement date.

When evaluating our operating performance and results of operations, early settlements of derivative contracts are “related to” the period that includes the underlying production month that was hedged. This adjustment removes the timing difference between the early termination date and the underlying production month that is hedged.

Net losses are prohibited from including potential common shares in the computation of diluted per share amounts. Therefore, we have utilized the basic shares outstanding to calculate both basic and diluted Adjusted Net Income (Loss) per common share.

Adjusted EBITDAX and Combined Adjusted EBITDAX attributable to BKV

The Company defines Adjusted EBITDAX as net income (loss) before (i) non-cash derivative gains (losses), (ii) depreciation, depletion, amortization, and accretion, (iii) exploration and impairment expense, (iv) gains (losses) on contingent consideration liabilities, (v) interest expense, (vi) interest expense, related party, (vii) income tax benefit (expense), (viii) equity-based compensation expense, (ix) earnings (losses) from the Power JV, (x) the portion of settlements paid (received) for early-terminated derivative contracts that relate to future periods and (xi) other nonrecurring transactions. Combined Adjusted EBITDAX attributable to BKV is defined as Adjusted EBITDAX less Adjusted EBITDAX attributable to noncontrolling interest plus BKV’s 50% proportionate share of Power JV Adjusted EBITDA. Adjusted EBITDAX attributable to noncontrolling interest is defined as C Squared Solutions, Inc.’s 45% proportionate share of Adjusted EBITDAX attributable to the CCUS JV for the applicable period.

The Company excludes the items listed above from Net Income (Loss) in arriving at Adjusted EBITDAX because these amounts can vary substantially from company to company within our industry depending upon accounting methods and book values of assets, capital structures and the method by which the assets were acquired. Adjusted EBITDAX should not be considered as an alternative to, or more meaningful than, net income (loss) determined in accordance with GAAP. Certain items excluded from Adjusted EBITDAX are significant components in understanding and assessing a company’s financial performance, such as a company’s cost of capital and tax burden, as well as the historic costs of depreciable assets, none of which are reflected in Adjusted EBITDAX. Our presentation of Adjusted EBITDAX should not be construed as an inference that our results will be unaffected by unusual or non-recurring items. Other companies, including other companies in our industry, may not use Adjusted EBITDAX or may calculate this measure differently than as presented in this release, limiting its usefulness as a comparative measure.

Adjusted EBITDAX and Combined Adjusted EBITDAX attributable to BKV are supplemental non-GAAP financial measures that are used by our management and external users of our consolidated financial statements, such as industry analysts, investors, lenders, rating agencies and others to more effectively evaluate our operating performance and results of operations from period to period and against our peers. We believe Adjusted EBITDAX, and Combined Adjusted EBITDAX attributable to BKV are useful performance measures because they allow us to effectively evaluate our operating performance and results of operations from period to period and against our peers, without regard to our financing methods, corporate form or capital structure.

The table below presents a reconciliation of Adjusted EBITDAX and Combined Adjusted EBITDAX attributable to BKV to net income (loss), our most directly comparable GAAP financial measure for the periods indicated.

Three Months Ended

September 30,

Nine Months Ended

September 30,

($ Thousands)

2025

2024

2025

2024

Net income (loss)

77,713

12,869

103,782

(85,413

)

Add back (subtract):

Net unrealized derivative (gains) losses

(55,193

)

3,042

(24,143

)

82,142

Forward month gas settlement (1)

(6,981

)

(398

)

(10,200

)

(315

)

Depreciation, depletion, amortization, and accretion

37,975

57,461

116,176

169,111

Exploration and impairment expense

—

Change in contingent consideration

—

(3,903

)

—

(9,973

)

Interest expense

6,475

9,197

16,985

40,443

Interest expense, related party

—

1,329

—

5,181

Loss on early extinguishment of debt

—

13,877

Income tax expense (benefit)

20,000

11,303

18,706

(30,070

)

Equity-based compensation expense

2,944

10,674

9,080

12,819

Gain on sales of non-operated interest in proved reserves

—

(5,451

)

Impairment of asset held for sale

—

2,446

—

Earnings from the Power JV

(21,050

)

(50,562

)

(20,553

)

(27,602

)

Other nonrecurring transactions

10,541

—

21,826

—

Early settlement of derivative contracts (2)

—

(13,250

)

Early settlements of derivative contracts related to the current period (3)

—

8,350

Adjusted EBITDAX

72,424

51,012

234,105

159,849

Less: Adjusted EBITDAX attributable to noncontrolling interest (4)

(1,082

)

—

(1,387

)

—

Plus: 50% Power JV Adjusted EBITDA (4)

20,433

10,095

47,963

33,488

Combined Adjusted EBITDAX Attributable to BKV

91,775

61,107

280,681

193,337

____________________________________________________

Natural gas derivative contracts settle and are realized in the month prior to the production covered by the contract. This adjustment removes the timing difference between the settlement date and the underlying production month that is hedged.

Reflects total cash settlements during the period upon termination of certain natural gas commodity derivative swap and collar contracts prior to their contractual settlement date.

Non-GAAP financial measure, see below for a reconciliation of this non-GAAP financial measure to the most comparable financial measure in accordance with GAAP.

Adjusted EBITDAX Attributable to Noncontrolling Interest

We consolidate our noncontrolling interest in the CCUS JV. The table below reconciles the Adjusted EBITDAX attributable to noncontrolling interest to the net income (loss) attributable to noncontrolling interest, the most comparable financial measure in accordance with GAAP.

Three Months Ended

September 30,

Nine Months Ended

September 30,

($ Thousands)

2025

2024

2025

2024

Net income attributable to noncontrolling interest

863

—

1,026

—

Add back (subtract):

Depreciation and amortization (1)

219

—

361

—

Adjusted EBITDAX attributable to noncontrolling interest

1,082

—

1,387

—

____________________________________________________

Depreciation and amortization represents C Squared Solutions, Inc.’s proportionate share of income of 45% in the CCUS JV for the three and nine months ended September 30, 2025.

Adjusted Free Cash Flow, Adjusted Free Cash Flow Attributable to BKV, Adjusted Free Cash Flow Margin, and Adjusted Free Cash Flow Margin Attributable to BKV

We define Adjusted Free Cash Flow as net cash provided by operating activities, excluding cash paid for contingent consideration and changes in operating assets and liabilities, less total cash paid for capital expenditures (excluding leasehold costs and acquisitions). Adjusted Free Cash Flow attributable to BKV is defined as Adjusted Free Cash Flow less Adjusted EBITDAX attributable to noncontrolling interest, plus net contributions from noncontrolling interest.

Adjusted Free Cash Flow is not a measure of net cash flow provided by or used in operating activities as determined by GAAP. Adjusted Free Cash Flow is a supplemental non-GAAP financial measure that is used by our management and other external users of our financial statements, such as industry analysts, investors, lenders, rating agencies and others to assess our ability to internally fund our capital program, service or incur additional debt and to pay dividends. We believe Adjusted Free Cash Flow is a useful liquidity measure because it allows us and others to compare cash flow provided by operating activities across periods and to assess our ability to internally fund our capital program (including acquisitions), to reduce leverage, fund acquisitions and pay dividends to our stockholders. We define Adjusted Free Cash Flow Margin as the ratio of Adjusted Free Cash Flow for any period to total revenues, excluding derivative gains and losses, for such period. We use this metric to assess our liquidity relative to our revenues. Adjusted Free Cash Flow Margin illustrates the efficiency with which the Company generates Adjusted Free Cash Flow. We define Adjusted Free Cash Flow Margin attributable to BKV as the ratio of Adjusted Free Cash Flow attributable to BKV for any period to total revenues attributable to BKV, excluding derivative gains and losses and the 45% proportionate share of Adjusted Free Cash Flow attributable to C Squared Solutions, Inc.’s noncontrolling interest in the CCUS JV. Adjusted Free Cash Flow should not be considered as an alternative to, or more meaningful than, net income (loss) or net cash provided by (used in) operating activities determined in accordance with GAAP. Other companies, including other companies in our industry, may not use Adjusted Free Cash Flow or may calculate this measure differently than as presented in this release, limiting its usefulness as a comparative measure.

The table below presents our reconciliation of Adjusted Free Cash Flow and Adjusted Free Cash Flow attributable to BKV to net cash provided by operating activities, our most directly comparable GAAP financial measure for the periods indicated.

Three Months Ended

September 30,

Nine Months Ended

September 30,

($ Thousands)

2025

2024

2025

2024

Net cash provided by operating activities

74,535

64,994

173,318

74,776

Cash paid for contingent consideration (1)

—

20,000

Change in operating assets and liabilities

(5,474

)

(24,210

)

3,591

44,186

Cash paid for capital expenditures (excl. leasehold costs, acquisitions)

(85,300

)

(21,166

)

(208,969

)

(52,774

)

Adjusted Free Cash Flow (2)

(16,239

)

19,618

(12,060

)

86,188

Add back (subtract):

Adjusted EBITDAX attributable to noncontrolling interest

(1,082

)

—

(1,387

)

—

Net contributions from noncontrolling interest

6,685

—

11,038

—

Adjusted Free Cash Flow attributable to BKV (2)

(10,636

)

19,618

(2,409

)

86,188

Total revenue, excluding derivative gains and losses

202,968

137,779

643,815

437,056

Adjusted Free Cash Flow Margin (2)

(8.0

14.2

(1.9

19.7

Total revenue attributable to BKV, excluding derivative gains and losses, and the 45% proportionate share of revenue from the noncontrolling interest in CCUS JV

201,286

137,779

641,318

437,056

Adjusted Free Cash Flow Margin attributable to BKV (2)

(5.3

14.2

(0.4

19.7

____________________________________________________

Cash paid for contingent consideration is included as a deduction to arrive at net cash provided by (used in) operating activities and therefore, is added back for the purpose of computing Adjusted Free Cash Flow.

The early termination of derivative contracts increased Adjusted Free Cash Flow by $13.3 million for the nine months ended September 30, 2024. In addition, Adjusted Free Cash Flows decreased by $16.2 million for the nine months ended September 30, 2025 due to the net premium paid of $16.2 million from the purchase of a put option, and increased by $23.5 million for the nine months ended September 30, 2024 due to the net premium received of $23.5 million from the sale of a call option.

Power JV Adjusted EBITDA

We define Power JV Adjusted EBITDA as net income (loss) of the Power JV before (i) unrealized derivative gains/losses, (ii) depreciation and amortization, and (iii) interest expense.

The items listed above are excluded from the Power JV’s net income (loss) in arriving at Power JV Adjusted EBITDA because these amounts can vary substantially from company to company within the power industry depending upon accounting methods and book values of assets, capital structures and the method by which the assets were acquired. Power JV Adjusted EBITDA should not be considered as an alternative to, or more meaningful than, net income (loss) determined in accordance with GAAP. Other companies, including other companies in the power industry, may not use Adjusted EBITDA or may calculate this measure differently than as presented in this release, limiting its usefulness as a comparative measure.

Power JV Adjusted EBITDA is a supplemental non-GAAP financial measure that is used by our management and external users of our consolidated financial statements, such as industry analysts, investors, lenders, rating agencies and others to more effectively evaluate our and the Power JV’s operating performance and results of operations from period to period and against our peers. We believe our investment in the Power JV is a strategic differentiator for BKV’s integrated energy solutions model. Investors in BKV may be interested in the results of the Power JV and the respective impact to BKV’s financial results. We believe Power JV Adjusted EBITDA is a useful performance measure because it allows us to effectively evaluate the Power JV’s operating performance and results of operations from period to period and against peers, without regard to financing methods, corporate form or capital structure.

The table below presents our reconciliation of Power JV Adjusted EBITDA to the Power JV’s net income (loss), the most directly comparable GAAP financial measure for the periods indicated.

Three Months Ended

September 30,

Nine Months Ended

September 30,

($ Thousands)

2025

2024

2025

2024

Net income

42,100

101,124

41,106

55,204

Add back (subtract):

Unrealized derivative gains

(26,793

)

(108,858

)

(21,925

)

(72,053

)

Depreciation and amortization

9,547

9,487

28,710

28,439

Interest expense

16,013

18,437

48,035

55,386

Power JV Adjusted EBITDA

40,867

20,190

95,926

66,976

50% Power JV Adjusted EBITDA (BKV’s proportionate share)

20,433

10,095

47,963

33,488