BKV — what changed in the latest 10-Q

Text added vs the prior filing · source: 10-Q · 2026-05-07

• •BKV-BPP Power Joint Venture Transaction. On January 30, 2026, we completed the previously announced acquisition of an additional 25% interest in the BKV-BPP Power Joint Venture for aggregate consideration consisting of $115.1 million in cash and 5,315,390 shares of our common stock. We funded the c…

• •2026 Equity Offering. On March 12, 2026, we completed the 2026 Equity Offering for net proceeds to the Company of $186.2 million, which were used for general corporate purposes, including working capital, operating expenses and capital expenditures. For additional information, see Note 9 - Stockhol…

• Below are some highlights of our operating and financial results for the three months ended March 31, 2026:

• •Production of natural gas, NGLs, and oil was 83.3 Bcfe, or 925.0 MMcfe/d, respectively.

• •Average realized product prices, excluding the impact of settled derivatives, was $3.46 per Mcfe.

Text removed vs the prior filing · source: 10-Q · 2025-11-10

• We are a forward thinking, growth driven energy company focused on creating value for our stockholders through the organic development of our properties as well as accretive acquisitions. Our core business is to produce natural gas from our owned and operated upstream businesses, which are supported…

• •BKV-BPP Power Joint Venture Transaction. On October 29, 2025, BKV entered into a membership interest purchase agreement with BPPUS to acquire one-half of the limited liability company interests of BPP-BPP Power currently held by BPPUS for aggregate consideration of (x) $376.0 million less (y) 25% o…

• •Bedrock Acquisition. On September 29, 2025, BKV Upstream Midstream completed the previously announced Bedrock Acquisition. Upon the closing of the Bedrock Acquisition, we acquired approximately 99,000 net acres, or 108 MMcfe/d of production (approximately 63% natural gas), 1,121 producing locations…

• •2030 Senior Notes. On September 26, 2025, BKV Upstream Midstream issued in a private placement $500.0 million of its 2030 Senior Notes due October 15, 2030. The 2030 Senior Notes were issued at par and resulted in proceeds of $490.0 million, after deducting underwriters’ discounts and commissions. …

• portion of the outstanding borrowings under the RBL Credit Agreement and fund a portion of the cash consideration for the Bedrock Acquisition. For additional information regarding the 2030 Senior Notes and the covenants contained therein, see Note 3 - Debt and under “Liquidity and Capital Resources …

Text added vs the prior filing · source: 10-Q · 2026-05-07

• We may enter into single hedge transactions with settlements up to 48 months. The aggregate notional volumes of these executed hedge instruments may not exceed certain limits without board of director approval of our forecasted production volumes. During the three months ended March 31, 2026, a hypo…

• Additionally, to reduce our exposure to fluctuations in the market price of power and natural gas, we enter into financially settled HRCOs, which are contracts for the financial purchase and sale of power based on a floating price of natural gas at a predetermined location using a predetermined conv…

• different pricing locations or under different terms. For example, when we enter into an HRCO, we hedge our power production at an agreed price, but physical power must be delivered into the market it serves, which may result in pricing differences. Accordingly, we are exposed to basis risk between …

• As of March 31, 2026, our primary exposure to interest rate risk was due to the balances on our Temple I Loan Agreements and the Temple Credit Facilities and our RBL Credit Agreement, which have floating interest rates. Changes in interest rates do not affect the amount of interest we pay on our fix…

Text removed vs the prior filing · source: 10-Q · 2025-11-10

• We may enter into single hedge transactions with settlements up to 48 months. The aggregation of these executed hedge instruments may not exceed certain limits without board of director approval of our forecasted production volumes. During the three months ended September 30, 2025 and 2024, a hypoth…

• Additionally, to reduce its exposure to fluctuations in the market price of electricity and natural gas, BKV-BPP Power enters into financially settled HRCOs, which are contracts for the financial purchase and sale of power based on a floating price of natural gas at a predetermined location using a …

• from increases in the power prices, which could have an adverse effect on our financial condition. Moreover, in the event BKV-BPP Power is not able to satisfy its obligations under the HRCO, it must purchase power at prevailing market prices to satisfy the HRCO. Likewise, increases in power pricing …

• As of September 30, 2025, we did not have primary exposure to interest rate risk due to the zero balance on our RBL Credit Agreement. Changes in interest rates do not affect the amount of interest we pay on our fixed-rate 2030 Senior Notes, but can affect their fair values. For more information on o…

Text added vs the prior filing · source: 10-Q · 2026-05-07

• Because of its inherent limitations, disclosure controls and procedures may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of …

• There were no changes in the Company's internal control over financial reporting during the quarter ended March 31, 2026 that have materially affected, or are reasonably likely to materially affect our internal controls over financial reporting.

Text removed vs the prior filing · source: 10-Q · 2025-11-10

• Material Weakness in Internal Control over Financial Reporting

• As of September 30, 2025, a material weakness continued to exist in our internal control over financial reporting. A “material weakness” is a deficiency, or combination of deficiencies, in internal control over financial reporting such that there is a reasonable possibility that a material misstatem…

• We did not design and maintain effective controls related to the accounting for income taxes, which were not designed at a sufficient level of precision or rigor to prepare and review the tax rate reconciliation, return to provision, income tax provision, related income tax assets and liabilities, a…

• Notwithstanding this material weakness, we believe our condensed consolidated financial statements fairly present, in all material respects, our financial condition, results of operations, and cash flows for the periods presented, in accordance with GAAP.

• We have taken steps towards remediating this material weakness primarily by designing and implementing additional internal controls, including those related to the preparation and review of the income tax rate reconciliation, return to provision, income tax provision, related income tax assets and l…