BKV Corporation has reported its financial and operational results for the second quarter of 2025, as well as the updated guidance for the third quarter and full year of 2025. The company's net income attributable to BKV was $104.6 million or $1.23 per diluted share for the second quarter of 2025, marking a significant increase from the previous year's net loss of $59.7 million. Adjusted net income for the same period was $32.8 million or $0.39 per diluted share, compared to an adjusted net loss of $22.8 million in the second quarter of 2024.
The company's combined adjusted EBITDAX attributable to BKV was $88.2 million for the second quarter of 2025, a notable increase from the previous year's $74.8 million. Additionally, BKV reported a net leverage ratio of 0.63x, indicating a strong financial position.
In terms of operational highlights, BKV's total generation from the power JV's Temple plants was 1,913 GWh, with an average net production of 811.0 MMCFE/D. The company also achieved a Barnett Zero quarterly sequestration of approximately 30,400 metric tons of CO2 equivalent.
The strategic Barnett Shale acquisition is valued at approximately $370 million and is expected to increase BKV's low-declining PDP production base by over 100 MMCFE/D. The acquisition is anticipated to be accretive to BKV on a cash flow per share basis in 2026.
Furthermore, BKV entered into a carbon sequestered gas deal with Gunvor, a leading commodities trader, which provides a commitment for Gunvor to purchase, market, and sell carbon sequestered gas, subject to certain conditions.
In terms of financial performance, BKV's adjusted free cash flow attributable to BKV was $2.1 million for the second quarter of 2025, reflecting a significant improvement from the previous year's $19.3 million. The company's net cash provided by operating activities was $76.2 million, compared to a net cash used in operating activities of $9.5 million in the same period of 2024.
Looking at the power JV's performance, BKV's implied proportionate share of power JV net earnings for the three months ended June 30, 2025, was $9.1 million, marking a significant improvement from the loss of $15.3 million for the same period in 2024. The Temple I and II capacity factors for the second quarter of 2025 were 64.0% and 54.8%, respectively, with a total power generation of 1,913 GWh.
Following these announcements, the company's shares moved 0.3%, and are now trading at a price of $20.06. If you want to know more, read the company's complete 8-K report here.
