BKV Corporation priced an underwritten public offering of 6 million shares of its common stock at $26.00 per share, generating gross proceeds of $156 million before underwriting discounts and fees. The offering is expected to close on December 3, 2025, subject to customary closing conditions.
The company will use the net proceeds, together with cash on hand, to pay the cash consideration for its previously announced acquisition of a controlling 75% stake in BKV‑BPP Power, LLC. The acquisition, announced on October 29, 2025, is valued at $376 million less 25% of BKV‑BPP Power’s net indebtedness, with 50% paid in cash and 50% in BKV common stock. The transaction is scheduled to close in the first quarter of 2026.
In addition to financing the acquisition, the equity raise provides BKV with liquidity to support its 2025 capital program, which includes upstream development and carbon‑capture, utilization, and sequestration (CCUS) initiatives. BKV’s CCUS portfolio, featuring projects such as Barnett Zero and Cotton Cove, is a key element of the company’s closed‑loop energy strategy.
BKV’s recent earnings report showed a third‑quarter 2025 revenue of $277.86 million and an adjusted EPS of $0.50, meeting analyst expectations. The company’s focus on cost discipline and strategic investments in high‑margin power and CCUS assets underpins its confidence in maintaining profitability while pursuing growth.
Management emphasized that the offering price of $26.00 per share represents a discount to the prevailing market price, a common practice to ensure a successful placement. The proceeds will be allocated primarily to the BKV‑BPP Power acquisition, with the remainder earmarked for capital expenditures in upstream development and CCUS projects.
The transaction aligns with BKV’s broader strategy to consolidate its power generation assets and expand its low‑carbon energy footprint. By securing additional capital, the company positions itself to accelerate the deployment of CCUS technology and strengthen its competitive stance in the ERCOT power market.
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