BKV (BKV) Q1 2026 earnings summary

Executive summary

• Entered 2026 with strong operational and financial momentum, reporting net income of $44.1 million and adjusted EBITDAX of $112 million, reversing a prior-year loss.

• Increased Power JV ownership to 75% through acquisition, consolidating results from Q1 2026 and advancing modular/grid-connected power solutions targeting data center and AI-driven demand.

• Advanced carbon capture platform with new projects, including first injection at Cotton Cove and Barnett Zero sequestering 35,800 metric tons CO2 in Q1.

• Raised $186.2 million in equity in March 2026, strengthening the balance sheet and supporting capital expenditures.

• Maintained capital discipline, evaluating portfolio optimization and non-core asset sales, and continued execution on strategic growth initiatives.

Financial highlights

• Q1 2026 net income of $44.1 million, adjusted EBITDAX of $112 million, and adjusted free cash flow before power growth of $20 million.

• Total revenues rose to $432.8 million, with operating cash flow of $72 million and accrued capital expenditures of $118.6 million.

• Net leverage ratio at quarter-end was 2.02x; total liquidity stood at $973.5 million, and cash and cash equivalents were $288.5 million.

• Working capital surplus of $135.4 million at quarter-end.

• Power segment generated 1,981 GWh with $20.4 million adjusted EBITDAX.

Outlook and guidance

• FY 2026 capital expenditures guidance: $570–$740 million; net BKV-funded capital investments projected at $485–$635 million after JV contributions.

• FY 2026 net production guidance: 915–955 MMcfe/d; Q2 2026: 925–975 MMcfe/d.

• Power Adjusted EBITDAX guidance for FY 2026: $135–$175 million.

• Power growth capital and investments forecasted at $280–$340 million, offset by $85–$105 million in partner capital.

• Expect to sign a PPA within 2026 to early 2027 and operationalize modular power units in 2027.