Second Quarter 2026
Filed Aug 6, 2026BKV Corporation Reports Second Quarter 2026 Financial and Operational Results and Updated 2026 Guidance
Adjusted EBITDAX attributable to BKV, adjusted net income, operating cash flow, and adjusted free cash flow before Power Growth were higher than the prior-year quarter, while net income attributable to BKV was lower and capital deployment remained substantial.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net income attributable to BKVGAAP | $75.8 million | – | – |
| Diluted EPS attributable to BKVGAAP | $0.67 per diluted share | – | – |
| Adjusted Net Income attributable to BKVnon-GAAP | $50.7 million | – | – |
| Adjusted EPS attributable to BKVnon-GAAP | $0.46 | – | – |
| Adjusted EBITDAX attributable to BKVnon-GAAP | $142.0 million | – | – |
| Net cash provided by operating activitiesGAAP | $109.7 million | – | – |
| Net cash provided by operating activities before working capitalnon-GAAP | $117.6 million | – | – |
| Adjusted Free Cash Flow before Power Growth attributable to BKVnon-GAAP | $40.0 million | – | – |
| Development capital expenditures (accrued)other | $38.8 million | – | – |
| Power capital expenditures (accrued)other | $6.8 million | – | – |
| CCUS and other capital expenditures (accrued)other | $26.8 million | – | – |
| Total capital expenditures (accrued)other | $72.4 million | – | – |
| Deposits on fixed asset purchasesother | $125.5 million | – | – |
| Average net productionother | 978.3 MMcfe/d | – | – |
| Total generation from the Power JV’s Temple plantsother | 2,222 GWh | – | – |
| CCUS quarterly sequestrationother | approximately 35,900 metric tons of CO₂ equivalent | – | – |
| Net Leverage Ratioother | 1.78x | – | – |
| Upstream/Midstream Adjusted EBITDAX attributable to BKVnon-GAAP | $127,882 | – | – |
| Power Adjusted EBITDAX attributable to BKVnon-GAAP | $22,853 | – | – |
| Corporate and Other Adjusted EBITDAX attributable to BKVnon-GAAP | $(8,739) | – | – |
What drove it
- The second quarter of 2026 was characterized by strong power demand across ERCOT, which supported higher than expected dispatch at the Temple plants.
- BKV commenced commercial operations at the Cotton Cove and Eagle Ford CCUS projects, which combined are expected to sequester more than 120,000 metric tons of CO₂ waste annually.
- BKV remains engaged in commercial discussions with a select group of prospective counterparties toward a long-term power purchase agreement for a portion of the capacity of the Temple I and II combined-cycle facilities.
- The Company secured additional acreage adjacent to the Temple Energy Complex, expanding site control to approximately 1,100 acres, and received Phase 1 air permits for planned modular generation.
- BKV continued advancing the planned North Texas Energy Complex, with approximately 6,200 acres under site control and generation and load applications submitted.
Concerns
- Net income attributable to BKV was $75.8 million, compared with $107.8 million in the prior-year quarter.
- A long-term power purchase agreement remains under commercial discussion rather than executed.
- Development of planned power projects remains subject to execution of long-term power purchase agreements, financing, regulatory approvals, and commercial negotiations with counterparties.
- Deposits on fixed asset purchases were $125.5 million and were comprised of payments for turbines, modular generation equipment, and other long lead time items in Power.
What to watch
- Progress toward execution of a long-term power purchase agreement for Temple I and II capacity.
- Commercial progress, financing, regulatory approvals, and counterparty negotiations for the planned Temple and North Texas power projects.
- Power generation performance and dispatch at the Temple plants amid ERCOT demand conditions.
- Operational performance of the Cotton Cove and Eagle Ford CCUS projects following commencement of commercial operations.
- Third-quarter and full-year 2026 guidance figures, which are referenced in the filing headline but are not included in the provided filing text.
Balance sheet and cash flow
- Net cash provided by operating activities of $109.7 million
- Net cash provided by operating activities before working capital of $117.6 million
- Adjusted Free Cash Flow before Power Growth attributable to BKV of $40.0 million
- Net Leverage Ratio of 1.78x
Analysis
BKV reported second-quarter net income attributable to BKV of $75.8 million, compared with $107.8 million in the prior-year quarter. The reported GAAP result included $0.67 per diluted share. Non-GAAP earnings measures were stronger than the prior-year period: adjusted net income attributable to BKV was $50.7 million versus $24.1 million, adjusted EPS was $0.46 versus $0.28, and adjusted EBITDAX attributable to BKV was $142.0 million versus $96.5 million.
Operating cash generation also improved from the prior-year quarter. Net cash provided by operating activities was $109.7 million versus $89.3 million, while net cash provided by operating activities before working capital was $117.6 million versus $84.5 million. Adjusted Free Cash Flow before Power Growth attributable to BKV was $40.0 million versus $17.2 million. The company reported a Net Leverage Ratio of 1.78x.
The Upstream/Midstream business generated Adjusted EBITDAX attributable to BKV of $127,882, compared with $81,031 in the prior-year quarter. Power Adjusted EBITDAX attributable to BKV was $22,853, compared with $22,950. Operationally, BKV reported average net production of 978.3 MMcfe/d, total Temple Power JV generation of 2,222 GWh, and CCUS quarterly sequestration of approximately 35,900 metric tons of CO₂ equivalent. The company said strong ERCOT demand supported higher than expected dispatch at the Temple plants.
Capital allocation continued to favor growth projects. Accrued capital expenditures totaled $72.4 million, including $38.8 million for development, $6.8 million for Power, and $26.8 million for CCUS and other. Deposits on fixed asset purchases were $125.5 million for turbines, modular generation equipment, and other long lead time Power items. The company also brought Cotton Cove and Eagle Ford CCUS projects into commercial operation, while advancing Temple and North Texas power development.
The strategic focus remains the conversion of power capacity into contracted cash flows. BKV is in commercial discussions with prospective counterparties for a long-term PPA covering a portion of Temple I and II capacity, but the filing states that future projects remain subject to PPA execution, financing, regulatory approvals, and commercial negotiations. The filing says guidance was updated for the third quarter and full year of 2026, but the provided text does not include the numerical guidance ranges.
Management, verbatim
Our performance this quarter reflects the consistency of our execution. We met or exceeded our operating targets while advancing each of our strategic priorities. During the quarter, we brought two additional carbon capture projects into operation, delivered strong results across our upstream business, and advanced commercial discussions toward a long-term power purchase agreement.
Chris Kalnin, Chief Executive Officer of BKV
Our financial strategy is grounded in disciplined capital allocation, a strong balance sheet, and prudent liquidity management. During the quarter, we maintained substantial liquidity while continuing to invest in our phased power strategy and expanding our carbon capture platform.
David Tameron, Chief Financial Officer of BKV
Not in the filing
stated, not guessed- Total revenue
- Revenue by business segment
- Gross profit and gross margin
- Operating income or loss
- Operating expenses
- GAAP diluted EPS prior-year comparison
- Prior-quarter comparisons for reported second-quarter metrics
- Cash balance
- Debt balance
- Liquidity amount
- Capital returns, including share repurchases and dividends
- Third-quarter 2026 numerical guidance
- Full-year 2026 numerical guidance
- Prior outlook section for comparison of actual results with prior guidance
- Complete Power Segment operational-results narrative, which is truncated in the provided filing text
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.