BKV (BKV) Registration Filing summary

Company overview and business model

• Operates as a vertically integrated energy company with four business lines: natural gas production, midstream, power generation, and carbon capture, utilization, and sequestration (CCUS).

• Focuses on low-decline natural gas assets in the Barnett Shale (TX) and Marcellus Shale (NEPA), with 479,000 net acres as of June 30, 2024.

• Largest natural gas producer by gross operated volume in the Barnett, with 29% of total Barnett production as of January 2024.

• Pursues a “closed-loop” net zero strategy, aiming for net zero Scope 1 and 2 emissions by early 2030s and Scope 1, 2, and 3 by late 2030s.

• Owns 50% of two Temple, TX power plants (1,499 MW total) and operates a growing CCUS business with one operational project and 16 additional projects in development.

Financial performance and metrics

• For the six months ended June 30, 2024: revenues of $288.1M, net loss of $98.3M, and Adjusted EBITDAX of $108.8M.

• 2023: revenues of $978.0M, net income of $116.9M, Adjusted EBITDAX of $251.2M, and Adjusted Free Cash Flow of $19.1M.

• Production for 2023: 313.8 Bcfe, with average realized product price of $2.25/Mcfe (excluding derivatives).

• As of June 30, 2024: cash and cash equivalents of $9.2M, total assets of $2.25B, and total debt of $410M.

• Proved reserves as of December 31, 2023: 4.1 Tcfe, with a 10-year average base decline rate of 8.1%.

Use of proceeds and capital allocation

• Net proceeds from the IPO will be used to repay certain indebtedness (including $50M under the BNAC A&R Loan and outstanding borrowings under the RBL Credit Agreement), for growth capital expenditures, and for general corporate purposes, including CCUS expansion.

• Capital expenditures for 2024 are budgeted at $52M, with flexibility to adjust based on commodity prices.

• CCUS business expected to require $1.3–1.8B in investment through 2030, with up to 50% funded by third parties.