BKV Corp (BKV) Q1 2025 Earnings Call Highlights: Strategic Growth Amidst Challenges

GuruFocus News

Mon, May 12, 2025, 5:00 PM 4 min read

• Revenue: Not explicitly mentioned successful the transcript.

• Net Loss: $79 cardinal oregon a nonaccomplishment of $0.93 per diluted share.

• Adjusted Net Income: $35 cardinal oregon $0.41 per diluted share.

• Combined Adjusted EBITDAX: Just implicit $100 million, including $90 cardinal from upstream and $10 cardinal from power.

• Power JV Adjusted EBITDA: $20 million, with BKV's 50% stock being $10 million.

• Development CapEx: $48 million, 26% beneath the midpoint of the guided range.

• Total CapEx: $58 million, importantly beneath the debased extremity of the archetypal 4th guidance scope of $75 million.

• Net Production: 761 cardinal cubic feet equivalent per day.

• Cash and Cash Equivalents: Approximately $15 cardinal astatine the extremity of the archetypal quarter.

• Net Leverage Ratio: Less than 0.7 times nett indebtedness to adjusted EBITDAX.

• Adjusted Free Cash Flow: $6 million, oregon $22 cardinal excluding premiums paid.

• Hedging Position: 58% of earthy state hedged astatine $3.44 per MMBTU for 2025.

• Warning! GuruFocus has detected 4 Warning Signs with BKV.

Release Date: May 09, 2025

For the implicit transcript of the net call, delight notation to the full net telephone transcript.

• BKV Corp (NYSE:BKV) is positioned to turn rapidly successful aggregate economical scenarios, leveraging megatrends successful energy.

• The institution is 1 of the largest earthy state producers successful Texas, with robust home and planetary request projections.

• BKV's c seizure concern is accelerating, supported by beardown bipartisan backing for the 45Q taxation credit.

• The company's powerfulness associated ventures successful Texas are well-positioned to capitalize connected increasing powerfulness demand, peculiarly from information centers.

• BKV's 4 concern linesupstream, midstream, c capture, and powerfulness generationcreate premium margins and differentiated products.

• The macroeconomic scenery presents challenges specified arsenic persistent ostentation and imaginable tariff impacts.

• Despite beardown performance, BKV reported a nett nonaccomplishment of $79 cardinal successful the archetypal quarter.

• There are concerns astir the resilience of the 45Q taxation credit, though BKV remains assured successful its robustness.

• The institution faces imaginable proviso concatenation disruptions, though it projects minimal impact.

• BKV's CCS projects necessitate important superior investment, and the gait and standard of these investments whitethorn shift.

Q: With the caller JV with CIP and Comstock projects, bash you deliberation the momentum down CCS projects is picking up, particularly for state processing projects? A: Christopher Kalnin, CEO: The momentum for c capture, peculiarly successful earthy state processing, is strong. The 45Q taxation recognition is robust, with bipartisan support, enhancing U.S. vigor competitiveness. BKV is starring successful c capture, important for decarbonizing powerfulness for information centers. Eric Jacobsen, President of Upstream, added that the momentum astir earthy state processing plants remains strong, with robust task economics and BKV establishing itself arsenic a person successful this space.