BKV Corporation reported strong financial and operational results for the second quarter of 2025, achieving a net income of $104.6 million, or $1.23 per diluted share, which included $102.9 million in unrealized hedging gains. Adjusted Net Income for the quarter was $32.8 million, with Adjusted Free Cash Flow at $2.1 million.
Operationally, total hydrocarbon production for the quarter was 811.0 MMcfe/d, exceeding the company's guidance. The Power JV also delivered strong performance, with BKV's implied proportionate share of net earnings at $9.1 million and Adjusted EBITDA of $17.7 million, both surpassing guidance due to favorable seasonal dynamics and pricing.
In a significant strategic move, BKV announced a proposed acquisition of Bedrock Energy Partners’ Barnett Shale assets for approximately $370 million. This acquisition is expected to add 97,000 net acres, 108 MMcfe/d of production, and approximately 800 billion cubic feet equivalent of proved reserves, enhancing BKV's core upstream business and is projected to be accretive to cash flow per share in 2026.
Further advancing its decarbonization strategy, BKV signed a seminal deal for Carbon Sequestered Gas with Gunvor, a leading commodities trader. This agreement, enabled by BKV's growing CCUS business, allows end-users to utilize carbon-neutral energy and commands a premium in the marketplace. The CCUS JV with Copenhagen Infrastructure Partners also received its initial contributions during the quarter, and EPA approved MRV plans for the Cotton Cove and Eagle Ford projects.
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