BKV Reports Q3 2026 Results, Cost Reimbursement Agreement with Leading Frontier AI Lab, and Verra Carbon Credit Certification
BKV Corp (BKV) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 BKV Reports Q3 2026 Results, Cost Reimbursement Agreement with Leading Frontier AI Lab, and Verra Carbon Credit Certification DENVER, Colorado – November 5, 2026 – BKV Corporation (“BKV” or the “Company”) (NYSE: BKV) today reported financial and operational results f
How this was made
The 30-second read
Why it matters
The earnings release provides fresh guidance and financing details that were not previously public, offering traders new data points for valuation and risk assessment.
Market read
The filing delivers material earnings and financing news, likely prompting short‑term price movement and longer‑term sector implications.
What to watch
Potential regulatory risk around carbon credit verification and the reliance on a single hyperscaler off‑taker for the power project.
BKV Reports Q3 2026 Results, Cost Reimbursement Agreement with Leading Frontier AI Lab, and Verra Carbon Credit Certification
Upstream production, adjusted earnings, Adjusted EBITDAX and operating cash flow increased from the prior-year quarter, while GAAP net income, income from operations and Power revenue declined. The company also committed to a substantially higher fourth-quarter Power capital program while advancing equipment reimbursement and backstop arrangements.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenues and other operating income, three months ended September 30, 2026GAAP | $478.4M | – | – |
| Natural gas, NGL, and oil sales, three months ended September 30, 2026GAAP | $237.7M | – | – |
| Power revenues, three months ended September 30, 2026GAAP | $87.44M | – | – |
| Derivative gains, net, three months ended September 30, 2026GAAP | $84.87M | – | – |
| Marketing revenues, three months ended September 30, 2026GAAP | $65.12M | – | – |
| Section 45Q tax credits, three months ended September 30, 2026GAAP | $3.28M | – | – |
| Total operating expenses, three months ended September 30, 2026GAAP | $411.1M | – | – |
| Income from operations, three months ended September 30, 2026GAAP | $67.24M | – | – |
| Net income, three months ended September 30, 2026GAAP | $38.39M | – | – |
| Net income attributable to BKV, three months ended September 30, 2026GAAP | $29.4M | – | – |
| Basic net income per common share attributable to BKV, three months ended September 30, 2026GAAP | $ 0.27 | – | – |
| Diluted net income per common share attributable to BKV, three months ended September 30, 2026GAAP | $ 0.27 | – | – |
| Adjusted Net Income attributable to BKV, three months ended September 30, 2026non-GAAP | $39.9M | – | – |
| Adjusted EPS attributable to BKV, diluted, three months ended September 30, 2026non-GAAP | $ 0.36 | – | – |
| Adjusted EBITDAX attributable to BKV, three months ended September 30, 2026non-GAAP | $132.7M | – | – |
| Net cash provided by operating activities, three months ended September 30, 2026GAAP | $164.5M | – | – |
| Net cash provided by operating activities before working capital, three months ended September 30, 2026non-GAAP | $112.7M | – | – |
| Adjusted Free Cash Flow before Power Growth attributable to BKV, three months ended September 30, 2026non-GAAP | $31.2M | – | – |
| Development capital expenditures (accrued), three months ended September 30, 2026other | $51.5M | – | – |
| Power capital expenditures (accrued), three months ended September 30, 2026other | $6.8M | – | – |
| CCUS and other capital expenditures (accrued), three months ended September 30, 2026other | $19.5M | – | – |
| Total capital expenditures (accrued), three months ended September 30, 2026other | $77.8M | – | – |
| Deposits on fixed asset purchases, three months ended September 30, 2026other | $109.7M | – | – |
| Net production per day, three months ended September 30, 2026other | 981.2 MMcfe/d | – | – |
| Total power generation, three months ended September 30, 2026other | 2,317 GWh | – | – |
| Temple I capacity factor, three months ended September 30, 2026other | 75.9 % | – | – |
| Temple II capacity factor, three months ended September 30, 2026other | 67.4 % | – | – |
| Average power price (including derivatives), three months ended September 30, 2026other | $ 40.37 | – | – |
| Average natural gas cost, three months ended September 30, 2026other | $ 2.64 | – | – |
| Average spark spread, three months ended September 30, 2026other | $ 21.18 | – | – |
| Average realized natural gas prices, including derivatives, three months ended September 30, 2026other | $ 2.90 | – | – |
| Average realized NGL prices, including derivatives, three months ended September 30, 2026other | $ 20.13 | – | – |
| Average realized oil prices, three months ended September 30, 2026other | $ 84.95 | – | – |
| Total average operating cash costs per Mcfe, three months ended September 30, 2026other | $ 1.42 | – | – |
| CCUS quarterly sequestration, third quarter 2026other | approximately 55,200 metric tons of CO₂ equivalent | – | – |
| Net Leverage Ratio, as of September 30, 2026non-GAAP | 2.41x | – | – |
| Total revenues and other operating income, nine months ended September 30, 2026GAAP | $1.38B | – | – |
| Net income attributable to BKV, nine months ended September 30, 2026GAAP | $149.3M | – | – |
| Adjusted Net Income attributable to BKV, nine months ended September 30, 2026non-GAAP | $110.7M | – | – |
| Adjusted EPS attributable to BKV, diluted, nine months ended September 30, 2026non-GAAP | $ 1.03 | – | – |
| Adjusted EBITDAX attributable to BKV, nine months ended September 30, 2026non-GAAP | $381.3M | – | – |
| Net cash provided by operating activities, nine months ended September 30, 2026GAAP | $346.2M | – | – |
| Adjusted Free Cash Flow before Power Growth attributable to BKV, nine months ended September 30, 2026non-GAAP | $91.3M | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| PowerTemple I and II achieved a combined capacity factor of 71.7%, total generation of 2,317 GWh, and an average equivalent availability factor of 96%. Wholesale power prices and spark spreads were below expectations as increased renewable generation and battery storage moderated peak pricing. | $ 170.8 | – | – |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
Q4 2026 outlook
- NoteDevelopment accrued capital expenditures: $55 - $75
- NotePower - Strategic Capital & Investments + Maintenance accrued capital expenditures: $240 - $270
- NoteCCUS and other accrued capital expenditures: $20 - $40
- NoteTotal capital expenditures: $315 - $385
- NoteNet production: 1,010 - 1,030 MMcfe/d
- NoteLease operating and workover: $0.52 - $0.56
- NoteGathering, compression, processing, and transport (GCPT): $0.75 - $0.79
- NoteUpstream general and administrative (excl. stock comp): $0.20 - $0.25
- NoteGeneral and administrative (Power, CCUS, & Other): $15 - $19
- NoteGeneral and administrative (stock comp): $4 - $6
- NoteAverage natural gas differential: $(0.70) - $(0.80)
- NoteNGL % of WTI: ~ 31%
- NotePower Adjusted EBITDAX: $10 - $30
- Note2026 maintenance capital: Upstream ~$200 million; Power ~$5 million.
- NoteExpecting $80 million - $100 million in JV partner capital contributions for the fourth quarter of 2026 collectively for Power and CCUS.
Capital returns
- Repurchase of common stock: $ 35,000 during the nine months ended September 30, 2026.
- Payment for capped call transactions: $ 64,688 during the nine months ended September 30, 2026.
What drove it
- The Barnett acquisition completed on September 15, 2026 added approximately 65 MMcfe/d of production and approximately 0.35 Tcfe of proved developed producing reserves.
- The company said production outperformance was driven by continued new well development outperformance, peer-leading base decline management, and an incremental contribution from the Barnett 6 acquisition.
- BKV completed its first full quarter of internally marketing all of its natural gas production.
- The Power JV entered into a cost reimbursement agreement supporting an increase in planned modular generation at the Temple Energy Complex to 400 MW from 200 MW.
- BKV announced an equipment supply agreement for approximately 1.2 GW of CCGT capacity, supported by a backstop agreement with an investment-grade hyperscaler.
- Verra certified CO₂ permanently sequestered through BKV’s CCUS operations, enabling the company to begin delivering Carbon Sequestered Gas under its arrangements with Kiewit and Gunvor.
Concerns
- GAAP net income attributable to BKV was $29.4 million in the third quarter of 2026 versus $83.5 million in the third quarter of 2025.
- Income from operations was $ 67,237 in the third quarter of 2026 versus $ 139,144 in the third quarter of 2025.
- Wholesale power prices and spark spreads were below expectations despite record power demand across ERCOT during the quarter.
- The cost reimbursement agreement covers up to approximately $179 million if mutually agreeable offtake arrangements are not agreed to by November 18, 2026.
- The intended offtaker may elect to take assignment of the equipment supply contract, if not retained by the Power JV, subject to an aggregate reimbursement cap of $374.1 million.
- Fourth-quarter total capital-expenditure guidance is $315 - $385, including $240 - $270 for Power - Strategic Capital & Investments + Maintenance.
What to watch
- Whether mutually agreeable offtake arrangements are agreed to by November 18, 2026, and whether the CRA is extended to December 21, 2026 or further by mutual agreement.
- Progress toward long-term PPAs for the Temple modular generation project and the prospective approximately 1.2 GW CCGT project.
- Fourth-quarter net production against guidance of 1,010 - 1,030 MMcfe/d.
- Fourth-quarter Power Adjusted EBITDAX against guidance of $10 - $30.
- Fourth-quarter JV partner capital contributions expected at $80 million - $100 million collectively for Power and CCUS.
- Progress toward the targeted annual injection run rate of 1.5 million metric tons in 2028.
Balance sheet and cash flow
- Cash and cash equivalents: $619.6 million as of September 30, 2026.
- Restricted cash: $16.3 million as of September 30, 2026.
- Total liquidity: $1.2 billion as of September 30, 2026, consisting of $619.6 million in cash and cash equivalents and $544.5 million available capacity under the Company’s RBL.
- Total principal debt: $2.0 billion as of September 30, 2026.
- Total net debt: $1.4 billion as of September 30, 2026.
- 2031 Convertible Senior Notes: $575.0 million.
- 2030 Senior Notes: $500.0 million.
- RBL balance: $240.0 million.
- Promissory Note: $46.0 million.
- Power segment debt: $676.7 million.
- JV partners contributed an aggregate $78.8 million during the nine months ended September 30, 2026, comprised of $65.4 million from BPPUS and $13.4 million from CIP.
- Net cash used in investing activities: $ 858,746 for the nine months ended September 30, 2026.
- Net cash provided by financing activities: $ 884,074 for the nine months ended September 30, 2026.
Analysis
BKV reported $ 478,370 of total revenues and other operating income for the third quarter of 2026, compared with $ 456,274 in the third quarter of 2025. Natural gas, NGL, and oil sales were $ 237,722, Power revenues were $ 87,445, and marketing revenues were $ 65,117. Net income attributable to BKV was $29.4 million, compared with $83.5 million, while Adjusted Net Income attributable to BKV was $39.9 million, compared with $23.1 million. The gap between GAAP and adjusted results reflected, among other reconciling items, $ 11,710 of net unrealized derivative losses and $ 5,495 of other nonrecurring transactions.
Upstream-Midstream operations supplied the quarter’s core operating momentum. Net production per day was 981.2 MMcfe/d, compared with 828.5 MMcfe/d, and total average operating cash costs per Mcfe were $ 1.42, compared with $ 1.45. The company attributed production outperformance to new well development, base-decline management and the Barnett 6 acquisition. The September 15 acquisition added approximately 65 MMcfe/d of production and approximately 0.35 Tcfe of proved developed producing reserves. BKV also completed its first full quarter internally marketing all natural gas production, with marketing revenues of $ 65,117.
The Power business had strong plant operating statistics but lower pricing. Temple I and II generated 2,317 GWh, compared with 2,246 GWh, with a combined capacity factor of 71.7% and average equivalent availability factor of 96%. Average power price including derivatives was $ 40.37 versus $ 43.89, and average spark spread was $ 21.18 versus $ 23.32. Summary Power operations reported total revenues, net of $ 170.8 versus $ 178.8 and income from operations of $ 38.5 versus $ 52.1. Management said renewable generation and battery storage moderated peak pricing despite record ERCOT demand.
Cash generation and liquidity expanded alongside a substantial investment program. Net cash provided by operating activities was $164.5 million and Adjusted Free Cash Flow before Power Growth attributable to BKV was $31.2 million. Deposits on fixed asset purchases were $109.7 million for the quarter, while accrued Power capital expenditures were $6.8 million. At September 30, cash and cash equivalents were $619.6 million, total liquidity was $1.2 billion, total principal debt was $2.0 billion and the Net Leverage Ratio was 2.41x. The company also completed a $575.0 million Convertible Senior Notes Offering at an annual rate of 1.625%.
The fourth-quarter guide directs materially more capital to strategic power development, with total capital expenditures of $315 - $385 and $240 - $270 allocated to Power - Strategic Capital & Investments + Maintenance. The Power JV’s CRA supports a planned increase in Temple modular generation to 400 MW from 200 MW, and the prospective CCGT project is approximately 1.2 GW. These commercial arrangements offer reimbursement and backstop protections, but their next steps depend on offtake discussions and long-term PPAs. Separately, BKV reported quarterly CO₂ injection volumes of 55,200 metric tons and said its four CCUS projects represent an annual sequestration run rate of approximately 350,000 metric tons.
Management, verbatim
Our upstream business delivered another strong quarter, with continued operational outperformance providing a solid foundation as we advanced our strategic growth initiatives.
Chris Kalnin, Chief Executive Officer of BKV
We also made meaningful commercial progress in our power business, securing a cost reimbursement agreement for modular generation equipment and a previously announced backstop agreement with an investment-grade hyperscaler supporting our CCGT equipment commitments.
Chris Kalnin, Chief Executive Officer of BKV
Our strong upstream cash flow, disciplined capital commitments and recent capital markets transactions have further strengthened our financial position and provided substantial liquidity to support our strategic growth initiatives.
David Tameron, Chief Financial Officer of BKV
Not in the filing
stated, not guessed- Prior-quarter comparisons for reported third-quarter metrics were not provided.
- Gross profit and gross margin were not reported.
- Revenue, gross-margin, operating-expense and tax-rate guidance for Q4 2026 were not provided.
- Prior-quarter and prior-year Net Leverage Ratio comparisons were not provided.
- A previous earnings-release outlook was not provided, so no comparison with prior guidance can be made.
- No dividend declaration or dividend payment was reported.
- Upstream/Midstream segment revenue was not separately reported in the business segment results table. The table reports segment net income and Adjusted EBITDAX instead.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
BKV Corp filed a Form 8‑K announcing Q3 results, a new cost reimbursement agreement with a frontier AI lab, and Verra carbon credit certification.
Ticker impact
BKV reported Q3 2026 earnings, $575M convertible notes offering, and a $179M cost reimbursement agreement, providing fresh financial and operational data.
likely upward pressure as investors price in stronger earnings and financing terms
The disclosed net income, adjusted EBITDAX, and sizable convertible note raise improve balance sheet flexibility and support future power expansion, which should attract buying interest.
Market effects
Highlights growth in modular power and carbon capture, signaling potential upside for energy infrastructure and clean‑tech peers.
Strengthens the outlook for Texas‑based power projects and Barnett Shale operators.
BKV's carbon credit certification may influence broader carbon‑credit markets and ESG investment flows.
Counterpoint
The $179M cost reimbursement cap may limit upside if offtake negotiations stall, and the convertible note issuance could dilute equity.
Key entities
- companyBKV Corp
US‑listed energy and carbon capture firm reporting Q3 2026 results.
- partnerLeading Frontier AI Lab
Counterparty in the $179M cost reimbursement agreement for modular power development.
- certifierVerra
Organization that certified BKV's carbon credit product.
