BKV reported third-quarter 2026 results and highlighted new support for its power-development plans, including an agreement tied to an expansion at its Temple, Texas, complex. The company also completed a $575 million convertible-note offering and said it had received carbon-credit certification for carbon dioxide permanently stored through its carbon-capture operations.
Third-quarter performance
- BKV reported net income attributable to the company of $29.4 million, or $0.27 per diluted share. Adjusted net income was $39.9 million, or $0.36 per diluted share.
- Adjusted EBITDAX attributable to BKV was $132.7 million. Net cash from operating activities was $164.5 million, including $112.7 million before working-capital changes.
- Accrued capital expenditures were $77.8 million. Adjusted free cash flow before power growth attributable to BKV was $31.2 million.
- Average net production was 981.2 million cubic feet equivalent per day. The Temple plants operated by the Power JV generated 2,317 gigawatt-hours during the quarter.
- BKV’s carbon-capture, utilization and storage operations sequestered about 55,200 metric tons of carbon-dioxide equivalent. Its net leverage ratio was 2.41 times.
Temple power expansion and cost protection
- BKV-BPP Power, BKV’s power joint venture, agreed to reimburse costs connected with expanding the planned first phase of modular generation at the Temple Energy Complex to 400 megawatts from 200 megawatts. The agreement is with a leading frontier AI lab, which BKV did not name.
- If the parties do not reach mutually acceptable power-purchase arrangements by November 18, 2026, the agreement covers eligible costs of up to about $179 million. The parties can mutually agree to extend that date to December 21, and may agree to further extensions.
- The intended power buyer may instead choose to take over the equipment-supply contract if the Power JV does not keep it. In that case, the buyer would reimburse eligible costs, subject to an aggregate cap of $374.1 million.
- BKV said the cost coverage allows it to keep development on schedule while discussions continue toward a long-term power-purchase agreement. The agreement provides a reimbursement backstop; it does not itself establish the long-term power-sale terms.
Separate Texas project and carbon credits
- BKV also reiterated details of a separate prospective Texas power project of about 1.2 gigawatts. A BKV subsidiary has an equipment-supply agreement with a Tier 1 supplier for combined-cycle gas turbines.
- A leading investment-grade hyperscaler has agreed to backstop part of BKV’s costs for the equipment and related project work. The hyperscaler is also the intended buyer of the project’s power.
- BKV said it was the first company to receive Verra certification for carbon credits from CO₂ permanently sequestered through its carbon-capture operations. The certification enables BKV to monetize credits through its “Carbon Sequestered Gas” product, which it describes as third-party verified and carbon-neutral.
Financing
- BKV completed a $575 million offering of convertible senior notes with an annual interest rate of 1.625%. Convertible debt can result in share issuance if converted, but the release details provided here do not specify conversion terms.