BKV (BKV) Q2 2026 earnings summary

Executive summary

• Achieved net income attributable to shareholders of $75.8M for Q2 2026 and $119.9M for H1 2026, with record adjusted EBITDAX of $142M and adjusted net income of $51M, driven by strong operational execution across upstream, power, and carbon capture.

• Upstream production reached 978.3 MMcfe/d in Q2, at the high end of guidance, and power generation totaled 2,222 GWh, up 16% year-over-year.

• Brought two new carbon capture projects online, now operating three sites, and advanced commercial discussions for long-term power purchase agreements.

• Maintained disciplined capital allocation, balancing organic growth, strategic investments, and partner contributions, with robust liquidity and hedging.

• Positioned as the largest Barnett producer with an integrated gas, power, and CCUS platform, targeting multi-GW power growth and low-carbon solutions.

Financial highlights

• Total revenues for Q2 2026 were $465.5M, with adjusted EBITDAX of $142M, adjusted net income of $51M, and net income attributable to shareholders of $75.8M.

• Generated $40M in adjusted free cash flow before power growth, funding $126M in strategic power growth capital.

• Power segment produced 2,222 GWh in Q2, with a 70% capacity factor and $36M gross power adjusted EBITDA.

• Net cash from operating activities was $109.7M in Q2 and $181.7M for H1 2026; accrued capital expenditures totaled $191M for H1.

• Net leverage ratio stood at 1.78x as of June 30, 2026, with liquidity of $836.7M.

Outlook and guidance

• Full-year 2026 capital expenditures guided at $690M–$875M, with $400M–$475M for strategic power investments and $120M–$150M expected from joint venture partners.

• Net production guidance for FY 2026: 940–960 MMcfe/d, targeting 3–4% year-over-year growth.

• Power Adjusted EBITDAX guidance: $135M–$175M for FY 2026.

• Targeting 1.5 million tons per annum CO2 injection run rate by 2028 from carbon capture projects.

• Sufficient liquidity from operations, cash on hand, credit facilities, and equity proceeds to fund 2026 activities.