Bkv Corporation · NYSE:BKV
Bkv — Q4 2024 Earnings Presentation
45 slides from Bkv's earnings presentation, Feb 26, 2025
Slide 1: BKV Corporation Investor Presentation
BKV Corporation Investor Presentation February 26, 2025
Slide 2: Agenda
03 Disclaimer 04 About BKV 10 Quarterly Highlights 12 Business Units Overview: Upstream & Midstream 18 Business Units Overview: CCUS 25 Business Units Overview: Power 31 Financial Overview 37 Appendix 2
Slide 3: Important Notice and Disclaimer
Important Notice and Disclaimer Forward-Looking Statements. This presentation includes may become involved; volatility in natural gas, NGL and oil Reserves. BKV’s proved reserves are those quantities of oil “forward-looking statements” within the meaning of the prices; our drilling plans and the tim
Slide 4: About BKV
BKV Corporation About BKV Natural gas production location 4 Wyoming County, Pennsylvania
Slide 5: BKV is an Energy Solutions Leader
BKV Corporation BKV is an Energy Solutions Leader • Closed Loop Strategy • Largest natural gas producer in the Barnett with complimentary assets in Northeast Pennsylvania (NEPA) • Energy solutions market growth potential at the confluence of significant trends e.g., AI Data Center Power Boom, Carbon
Slide 6: BKV Delivers Value Beyond the Sum of Its Parts
BKV Corporation BKV Delivers Value Beyond the Sum of Its Parts Natural Gas Upstream BKV Assets Twelve Months Ended As of Dec. 2024 Offer Unique, Integrated Platform with Significant Growth Potential Dec ’24 NYMEX 1P Dec. 2024 Avg. Net Reserves Tcfe2 Net Acres Production MMcfe/d1 Total 788 4.9 480,
Slide 7: BKV is the Largest Producer in the Barnett
BKV Corporation BKV is the Largest Producer in the Barnett and a Top 5 Gas Producer in Texas1 Top 10 Barnett Producers Gross Operated Production (MMcfe/d)2 BKV Barnett: Highly Contiguous Position, Opportunities for Growth 778 ~1.3 Bcf/d of production from other smaller 502 operators in play 131 121
Slide 8: BKV Has Taken an Early Lead in the CCUS Space
BKV Corporation BKV Has Taken an Early Lead in the CCUS Space Strategic White Space Niche & First Mover Advantage in Class II Well Opportunities P7 P8 • Proven technology and project playbook to quickly deliver HIGH P9 CCUS solutions CO2 Concentration1 • Organic and inorganic P10 operational and com
Slide 9: BKV-BPP Power Joint Venture Supplies Power to ERCOT Market
BKV Corporation BKV-BPP Power Joint Venture Supplies Power to ERCOT Market ERCOT Generation4, TWh +16% 446 383 2019 2023 Data Center Growth by Region5, MW N. Virginia 6,502 Texas6 4,958 Texas’s Rising Tide Phoenix 4,523 + #1 in population growth1 Las Vegas 3,450 #2 in commercial electricity + consum
Slide 10: Quarterly Highlights
BKV Corporation Quarterly Highlights 4Q 2024 Stakeholder tour at Barnett Zero 10 Wise County, Texas
Slide 11: Fourth Quarter Business Highlights
BKV Corporation Fourth Quarter Business Highlights Company Upstream Midstream Carbon Capture Power • Continued de-leveraging to • Production outperformance: • Continued safe operations • 44k tons of CO2 injected at • Completed planned major .65x net leverage1 as of 4Q actuals of 774.5 MMcfe/d with 1
Slide 12: Business Units Overview: Upstream & Midstream
BKV Corporation Business Units Overview Upstream & Midstream Drilling rig in the Barnett Shale 12 Denton County, Texas
Slide 13: BKV's Inventory Strength and Low PDP Decline
BKV Corporation BKV’s Inventory Strength and Low PDP Decline 12/31/24 NYMEX Proved Reserves1 Inventory Summary: NEPA + Barnett Gas Oil NGLS Total Refrac Locations2 % Gas (Bcf) (MMBbl) (MMBbl) (Bcfe) Horizontal Locations3 621 PD 2,767 1.0 153 3,693 75% Low development capex PUD 940 1.0 46 1,224 77%
Slide 14: Barnett: 15+ Years of Capital Efficient Inventory
BKV Corporation Barnett: 15+ Years of Capital Efficient Inventory Barnett Upper and Lower Inventory – Large, Contiguous Barnett – Robust Reserves Life and Solid Returns1 Acreage New Drill D&C Refracs Avg. Royalty 82% 82% Type Curve EUR 1.25 Bcfe / 1,000’ 1.05 Bcfe / job Average Lateral Length 9,700’
Slide 15: Barnett Position Presents Multiple Market Opportunities
BKV Corporation Barnett Position Presents Multiple Market Opportunities Well Positioned for LNG U.S. Gulf Coast LNG expected to exceed 20 Bcf/d by 2028, representing >2.0x compared to 2020 levels Favorable Barnett gas composition Infrastructure Access to strong basis pricing and midstream footprint
Slide 16: Northeast Pennsylvania (NEPA) – Asset Overview
BKV Corporation Northeast Pennsylvania (NEPA) – Asset Overview NEPA Asset Map NEPA Asset Summary • 19,096 net acres centrally located in the “Super Core” • BKV has lowered LOE by 36% since acquisition1 • Average 5-year PDP decline rate of 12.7% and 10-year of 10.9% • Proven Upper Marcellus inventory
Slide 17: BKV Midstream - Differentiated Access to End Customers
BKV Corporation BKV Midstream - Differentiated Access to End Customers BKV Midstream Asset Overview • Supports BKV upstream assets • Generates incremental revenue via gathering, processing, and transportation of third-party production (50% utilization today) • Positioned in the heart of Tarrant and
Slide 18: Business Units Overview: CCUS
BKV Corporation Business Units Overview CCUS Barnett Zero compressor facility 18 Wise County, Texas
Slide 19: CCUS Strategy: Target Quick Wins on NGP while Scaling Class VI
BKV Corporation CCUS Strategy1: Target Quick Wins on NGP while Scaling Class VI Projects Scaling CCS Business: Industrial Projects with Point Source Sequestration Today to End of The Decade 3 • Leading Reservoirs and Sinks High West, LA; expecting to submit Class VI permit • Longer Lead Time Donalds
Slide 20: BKV's CCUS Competitive Advantages
BKV Corporation BKV’s CCUS Competitive Advantages We know who we are… Category And we know who we are NOT… Point-Source – Focused on utilizing proven technology to Hub and Spoke – Majors have leaned towards single + quickly deliver bespoke CCS solutions to a wide range of Model x injectors with spid
Slide 21: Natural Gas Processing Plants
Natural Gas Processing Plants BKV Corporation BKV's near-term focus area for Class II CCUS projects There are 435 NGPs in the lower 48 emitting 50MM tpy CO2, with 12MM tpy of that being high-concentration acid gas removal unit emissions Lower 48 Natural Gas Processing Plants Key Points: • According
Slide 22: Carbon Capture Offers High Quality and Value Carbon Credits
BKV Corporation Carbon Capture Offers High Quality and Value Carbon Credits Carbon Credits - Pricing vs. Quality per CCQI BKV-modeled pricing Recent Pricing Datapoint 35 Ethanol CCS Direct Air Capture (DAC) 30 Assessment Criteria • Robust GHG impact High-price, direct removal options determination (
Slide 23: Flagship Project: Barnett Zero, Injecting Since November 2023
BKV Corporation Flagship Project: Barnett Zero, Injecting Since November 2023 Project Locator Map • Barnett Zero is BKV’s inaugural CCUS project, which began injection operations in November 2023 EnLink Midstream Processing Plant • Barnett Zero was one of the first purpose drilled, non- Compression
Slide 24: Reductions in Ambient CO2 Quantified by Monitoring at Barnett Zero
BKV Corporation Reductions in Ambient CO2 Quantified by Monitoring at Barnett Zero Pre Start-up October 2023 Post Start-up May 2024 Lines depict the drone monitoring path + + Bridgeport Gas Plant + Sequestration Site 24
Slide 25: Business Units Overview: Power
Business Units Overview Power Temple Power Plants 25 Bell County, Texas
Slide 26: Robust Power Portfolio in Texas: CCGT Plants & Solar
BKV Corporation Robust Power Portfolio in Texas: CCGT Plants & Solar TI & TII CCGT Power Plants – Temple, TX Ponder Solar Farm Location / Market Bell County, TX / ERCOT North 1 Capacity / Heat rate Temple I & II: ~750 MW each; 7,000 Btu/kWh 2.5MWac solar facility jointly owned through a JV with BPPU
Slide 27: Strategic JV with Significant Growth Potential in ERCOT
BKV Corporation Strategic JV with Significant Growth Potential in ERCOT Temple I and II • 50/50 JV with Banpu Power (BPP) leverages expertise and assets of both Banpu and BKV • Low heat rates ~7,000; below ERCOT avg. • Well positioned to take advantage of growing ERCOT and data center (AI) demand •
Slide 28: ERCOT Forecasts Substantial Demand Growth through 2030
BKV Corporation ERCOT Forecasts Substantial Demand Growth through 2030 ERCOT Contract and Officer Letter Growth Breakdown 160 148 GW 140 120 100 Oil & Gas Hydrogen/Industrial GW 80 Data Center Crypto 60 2024 Base Forecast 40 This graph includes an 20 assumption reduction to 15% LFL in the 2024 0 Bas
Slide 29: Data Center Demand & Growth in Texas is Accelerating
BKV Corporation Data Center Demand & Growth in Texas is Accelerating Data Center Capacity Growth, MW As of 1H 2024; Under Construction & Planned1 0 1,0002,0003,0004,0005,0006,0007,000 Northern Virginia 6,502 (24%) Phoenix 4,523 Las Vegas/Reno 3,450 + Dallas/Ft. Worth 3,430 (12%) Atlanta 2,590 Chicag
Slide 30: Power JV Strategically Positioned to Supply Power to Hyperscalers
BKV Corporation Power JV Strategically Positioned to Supply Power to Hyperscalers Data Center Market Highlights BKV’s Strategic Advantages As of 2024 hyperscalers accounted for ~40% of • Largest natural gas producer in the Barnett worldwide data center capacity, forecasted to with significant owned
Slide 31: Financial Overview
BKV Corporation Financial Overview 31
Slide 32: 4Q24 Financial Highlights
BKV Corporation 4Q24 Financial Highlights Category Gross Debt Reduction from 2022 - Present ($ in Millions) 4Q QTD FY 2024 Production (Mmcfe/d) 774.5 788.0 $729.0 Adjusted EBITDAX1 $71.9 $231.8 $654.0 Total Accrued CAPEX $60.3 $117.6 Adjusted Free Cash Flow1 $5.4 $91.6 -77.4% Adjusted Net Income (Lo
Slide 33: Financial Summary | Quarterly Historicals
BKV Corporation Financial Summary | Quarterly Historicals NYMEX Pricing ($/MMBtu)1 Cash Capital Expenditures ($MM) $6.26 $(11.7) $(19.9) $(21.2) $(26.4) $(35.7) $(40.6) $3.42 $(48.1) $2.88 $2.79 $2.55 $2.10 $2.24 $2.16 $1.89 $(84.7) $(89.9) Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3
Slide 34: Disciplined Growth, Financial Strategy and Shareholder Returns
BKV Corporation Disciplined Growth, Financial Strategy and Shareholder Returns Capital Use Prioritization Base Business: Opportunistic Investments: Illustrative Uses of Cash 1. Maintain low net leverage 3. Upstream/Midstream Strategic targeting a Net Leverage Organic Growth Capex 1 2 3 4 5 6 Ratio o
Slide 35: Compelling Investment Throughout the Commodity Cycle
BKV Corporation Compelling Investment Throughout the Commodity Cycle Cash Generating Growth Driven Margin Enhancing Generating Alpha Capital Efficient Fully Operational CCUS Power Exposed to Asymmetric Upside With Business with Deep Project ERCOT/Texas and AI Ability to Mitigate Downside Low Decline
Slide 36: Thank you. Questions?
BKV Corporation Thank you. Questions? 36
Slide 37: Appendix
BKV Corporation 37 Appendix
Slide 38: Non-GAAP & Other Definitions
Non-GAAP & Other Definitions This Presentation includes the following financial measures that are company's financial performance, such as a company's cost of Adjusted Free Cash Flow Margin: We define Adjusted Free not calculated in accordance with GAAP: (i) Adjusted EBITDAX capital and tax burden,
Slide 39: Adjusted EBITDAX Reconciliation
BKV Corporation Adjusted EBITDAX Reconciliation Three Months Ended December 31, Year Ended December 31, (in thousands) 2024 2023 2024 2023 Net income (loss) $(57,457) $37,540 $(142,870) $116,918 Add back (subtract): Unrealized derivative (gains) losses 64,537 (93,284) 146,679 (148,564) Forward month
Slide 40: Adjusted Net Income (Loss) Reconciliation
BKV Corporation Adjusted Net Income (Loss) Reconciliation Three Months Ended December 31, Year Ended December 31, (in thousands, except EPS) 2024 2023 2024 2023 Net income (loss) $(57,457) $37,540 $(142,870) $116,918 Adjustment to net income (loss): Unrealized derivative (gains) losses 64,537 (93,28
Slide 41: Adjusted Free Cash Flow Reconciliation
BKV Corporation Adjusted Free Cash Flow Reconciliation Three Months Ended December Year Ended December 31, 31, (in thousands) 2024 2023 2024 2023 Net cash provided by operating activities $43,762 $ 7,868 $118,538 $123,299 Cash paid for contingent consideration — — 20,000 65,000 Change in operating a
Slide 42: 2025 Guidance
BKV Corporation 2025 Guidance Accrued Capital Expenditures and Net Production (in millions) Q1 2025 FY 2025 Development $60 - $70 $205 - $235 CCUS and other $15 - $20 $115 - $145 Total capital expenditures $75 - $90 $320 - $380 Net production (MMcfe/d) 740 - 770 755 - 790 Per Unit Operating Costs ($
Slide 43: BKV's Planned Path To Net Zero (Scope 1, 2 & 3): Barnett and NEPA
BKV Corporation BKV’s Planned Path To Net Zero (Scope 1, 2 & 3): Barnett and NEPA Based on BKV owned and operated upstream and natural gas midstream emissions estimates in the Barnett and NEPA as of 12/31/23 1 Pad of the Future Scope 1 & 2 Reduction • Improve operations and environmental performance
Slide 44: Consistent and Methodical Hedging Philosophy
BKV Corporation Consistent and Methodical Hedging Philosophy As of BKV’s Hedging Philosophy Balance of 2025 Calendar 2026 Calendar 2027 Feb. 21, 2025 Strategically execute a financial hedge % of program to support natural gas and NGL Price Daily Price Daily Price Daily Commodity Forecasted ($)1 Volu
Slide 45: SEC Reserves Overview
BKV Corporation SEC Reserves Overview 12/31/24 SEC Proved Reserves YE23 to YE24 SEC Total Proved (Tcfe) Gas Oil NGLS Total PV-10 % Gas (Bcf) (MMBbl) (MMBbl) (Bcfe) ($MM) PD 2,060 0.9 134 2,869 72% 645 PUD 176 0.8 14 263 67% 57 2,091 Total Proved 2,236 1.7 148 3,132 71% 672 Reserves PDP Operated Decl