BKV Corporation increased its ownership of the BKV‑BPP Power joint venture from 50% to 75% by purchasing a 25% stake from Banpu Power US Corporation. The transaction is valued at $376 million net of 25% of the joint venture’s net indebtedness, which was approximately $581.8 million as of September 30 2025.
The consideration is split evenly between cash and BKV common stock. BKV paid $188 million in cash and issued 8,680,000 shares of its common stock at $21.6609 per share, totaling $188 million in equity.
The deal allows BKV to consolidate the joint venture’s financial results and gain majority control of the Temple I and Temple II combined‑cycle power plants in the ERCOT market. The plants have a combined capacity of 1,200 MW and are expected to generate $120 million in annual revenue under current market conditions.
BKV will fund the transaction with cash on hand and a $800 million reserve‑based lending facility that was amended on October 27 2025 to accommodate the Bedrock Energy Partners acquisition. The transaction is expected to close in the first quarter of 2026 pending regulatory approvals and shareholder votes.
The acquisition aligns with BKV’s closed‑loop energy strategy, which seeks to integrate upstream natural gas production, midstream gathering, and downstream power generation. By consolidating the joint venture, BKV can streamline operations, reduce transaction costs, and position itself to pursue additional power assets in Texas.
BKV’s Q3 2024 earnings showed a decline in total revenue and net income compared with Q3 2023, driven by lower natural gas prices and production volumes. The company’s gross margin remained above 30%, but operating margin contracted to 12% from 15% in the prior year. Management cited the acquisition as a means to offset margin pressure and enhance long‑term profitability.
Banpu Power US Corporation retained a 25% stake in the joint venture and will continue to participate in future growth. The divestiture is part of Banpu’s broader strategy to unlock capital for deleveraging and new growth opportunities.
BKV’s power generation segment, which previously accounted for 18% of total revenue, is expected to grow to 25% of revenue after the acquisition, reflecting the added capacity and revenue from the Temple plants.
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