BKV (BKV) Q2 2026 earnings summary

Executive summary

• Achieved record Q2 2026 results with adjusted EBITDAX of $142 million, net income of $75.8 million, and all business lines meeting or exceeding plan; advanced power and CCUS projects to commercial scale.

• Upstream production reached 978.3 MMcfe/d, at the high end of guidance, and positioned as the largest Barnett producer with integrated gas, power, and CCUS platform.

• Brought two new carbon capture projects online, expanding the CCUS portfolio to three operating sites and commencing commercial sequestration at Eagle Ford and Cotton Cove.

• Power business demonstrated strong operational performance, with Temple facilities generating 2,222 GWh in Q2 (up 16% year-over-year) and significant progress at Temple and Jack County sites.

• Integrated platform of gas, power, and carbon capture continues to drive competitive advantages and value creation, targeting multi-GW power growth and low-carbon solutions.

Financial highlights

• Record adjusted EBITDAX of $142 million and adjusted net income of $51 million; net income attributable to shareholders was $75.8 million for Q2 2026.

• Generated $40 million in adjusted free cash flow, funding $126 million in strategic power growth capital; accrued capital expenditures totaled $72.4 million.

• Total revenues for Q2 2026 were $465.5 million, with operating income of $121.7 million.

• Temple facilities produced over 2,200 GWh, with a 70% capacity factor and $36 million gross power adjusted EBITDA.

• Net leverage ratio at 1.78x as of June 30, 2026; liquidity of $836.7 million.

Outlook and guidance

• Full-year 2026 capital expenditures guided at $690–$875 million, with $400–$475 million for strategic power investments.

• FY 2026 net production guidance: 940–960 MMcfe/d; targeting 3–4% year-over-year upstream production growth.

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

• Targeting 1.5 million tons per annum CO2 injection run rate by 2028.

• Expect to maintain strong liquidity and fund growth through free cash flow, project-level financing, and partner contributions.