BKV Corporation (NYSE: BKV) is a Denver-based energy company predominantly engaged in natural gas production, midstream operations, carbon capture, utilization, and sequestration (CCUS), and power generation. BKV is recognized as one of the largest natural gas producers in Texas.

In the first quarter of 2025, BKV reported a net loss of $78.7 million, equating to $(0.93) per diluted share, compared to a net loss of $38.6 million, or $(0.58) per diluted share, in the same period of 2024. Adjusted net income for the quarter stood at $35 million, or $0.41 per diluted share, marking a significant turnaround from an adjusted net loss of $10.6 million during the first quarter of 2024.

The company recorded adjusted EBITDAX of $90.9 million for Q1 2025, up from $47.1 million in Q1 2024. Combined adjusted EBITDAX, which includes the company’s proportional share of its power joint venture’s performance, reached $100.7 million, surpassing prior guidance. BKV’s upstream production for the quarter was 761.1 million cubic feet equivalent per day (MMcfe/d), exceeding the midpoint of the previous guidance range of 740-770 MMcfe/d.

Capital expenditures for the first quarter amounted to $58 million, significantly lower than the low end of the guidance range of $75 million. This included $48 million for upstream development, and $3.7 million allocated for CCUS initiatives. Looking ahead to the second quarter, BKV anticipates total capital spending between $75 million and $100 million, with a significant portion directed toward upstream operations.

BKV’s power generation joint venture reported an adjusted EBITDA of $9.8 million for the first quarter, down slightly from $10.3 million in the same quarter of the previous year but exceeding guidance due to favorable pricing driven by colder weather during the quarter. Total generation from the power plants reached 1,588 gigawatt hours (GWh), with a combined capacity factor of 50%.

In terms of liquidity, BKV ended the first quarter with approximately $15 million in cash and cash equivalents and reported a net debt of $184.7 million. The net leverage ratio stood at 0.67x. Following a recent redetermination of its reserve-based lending, BKV increased its borrowing base to $850 million from $750 million.

BKV’s operational highlights for the quarter included the injection of nearly 39,000 metric tons of CO2 at its Barnett Zero facility. The company also reported significant milestones in its CCUS projects, including submitted permits for additional CO2 injection wells and the formation of a joint venture with Copenhagen Infrastructure Partners to facilitate further investments in its carbon capture initiatives.

Overall, BKV continues to demonstrate strong operational execution amid challenging market conditions, with management committed to delivering on its strategic growth initiatives across all business lines throughout 2025.