BKV (BKV) Registration Filing summary

Company overview and business model

• Operates as a growth-driven energy company focused on natural gas production, midstream operations, power generation, and carbon capture, utilization, and sequestration (CCUS).

• Vertically integrated across upstream, midstream, and power assets, with a closed-loop net zero emissions strategy.

• Largest natural gas producer by gross operated volume in the Barnett Shale, with significant assets in NEPA.

• Pursues CCUS projects to offset Scope 1, 2, and 3 emissions, aiming for net zero by the early 2030s (Scope 1 & 2) and late 2030s (Scope 1, 2 & 3).

• Owns a 50% interest in the BKV-BPP Power Joint Venture, which operates two modern gas-fired power plants in Texas.

Financial performance and metrics

• For the year ended December 31, 2023: revenues of $978 million, net income attributable to common stockholders of $117 million, and Adjusted EBITDAX of $251 million.

• Net cash provided by operating activities was $123 million in 2023.

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

• Capital expenditures for natural gas properties in 2023 were $134 million; 2024 budget reduced to $13 million due to lower commodity prices.

• Maintains a conservative balance sheet, with a long-term net leverage ratio target of 1.0x to 1.5x.

Use of proceeds and capital allocation

• Net proceeds from the IPO will be used to repay certain indebtedness, fund growth capital expenditures, and for general corporate purposes, including potential expansion of the CCUS business.

• As of July 5, 2024, $360 million of revolving borrowings and $9 million of letters of credit were outstanding under the RBL Credit Agreement.

• Expects to fund up to 50% of CCUS projects from external sources, with the remainder from operating cash flows.