BKV (NYSE:BKV) Announces Quarterly Earnings Results, Misses Expectations By $0.02 EPS

Key Points

• BKV reported EPS of $0.36, missing consensus by $0.02, while revenue of $478.37 million exceeded estimates of $395.18 million.
• Adjusted EBITDAX rose to $133 million from $101 million a year earlier, and upstream production topped guidance; the Barnett acquisition lifted output above 1 Bcfe/d. BKV ended the quarter with $620 million in cash and $1.2 billion in total liquidity.
• BKV is negotiating exclusively with a leading AI lab and expanded its planned Temple project capacity to 400 MW, but the project’s power results fell short of expectations. The company targets a power purchase agreement in 2026 or early 2027 and expects higher Temple-related spending in the fourth quarter.

BKV (NYSE:BKV - Get Free Report) posted its quarterly earnings results on Thursday. The company reported $0.36 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.38 by ($0.02), FiscalAI reports. The business had revenue of $478.37 million during the quarter, compared to analyst estimates of $395.18 million. BKV had a net margin of 17.73% and a return on equity of 6.67%.

Here are the key takeaways from BKV's conference call:

• BKV delivered upstream production of 981 Mcfe/d, above guidance, with development capital below the low end of its range. The Barnett acquisition added more than 65 Mcfe/d, taking production above 1 Bcfe/d and increasing liquids exposure.
• At Temple, BKV is in exclusive commercial negotiations with a leading AI lab and has signed a cost reimbursement agreement supporting an increase in planned modular capacity to 400 MW. The company still targets a PPA in 2026 to early 2027, though it acknowledged regulatory changes could affect timing.
• Temple power results fell short of expectations, with adjusted EBITDA of $34 million as solar and battery additions weighed on peak pricing. BKV expects strategic power spending to rise to $240 million–$270 million in the fourth quarter, largely for the expanded Temple project.
• Adjusted EBITDAX increased to $133 million from $101 million a year earlier, and adjusted free cash flow was $31 million excluding strategic power spending. BKV ended the quarter with $620 million of cash and $1.2 billion of total liquidity, while net leverage was 2.4x.
• BKV now has four operating carbon capture projects, with injection running at about 350,000 tons annually and a target of 1.5 million tons in 2028. It also received Verra certification for carbon credits tied to sequestration from natural gas production, which management says could support premium Carbon Sequestered Gas sales.

BKV Stock Down 3.4%

NYSE BKV traded down $0.61 on Friday, reaching $17.48. The company had a trading volume of 2,021,919 shares, compared to its average volume of 2,030,342. The stock has a market capitalization of $1.91 billion, a P/E ratio of 8.28 and a beta of 1.13. The company's fifty day moving average is $22.61 and its 200 day moving average is $26.34. BKV has a 52-week low of $17.47 and a 52-week high of $32.81. The company has a quick ratio of 1.10, a current ratio of 1.15 and a debt-to-equity ratio of 0.45.

Insider Buying and Selling at BKV

In other BKV news, insider Lindsay Larrick sold 10,000 shares of BKV stock in a transaction on Friday, August 14th. The shares were sold at an average price of $26.16, for a total transaction of $261,600.00. Following the transaction, the insider directly owned 83,925 shares of the company's stock, valued at $2,195,478. The trade was a 10.65% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO David Tameron sold 4,321 shares of BKV stock in a transaction on Thursday, August 20th. The stock was sold at an average price of $26.56, for a total transaction of $114,765.76. Following the transaction, the chief financial officer directly owned 58,524 shares in the company, valued at $1,554,397.44. This represents a 6.88% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders have sold 40,578 shares of company stock worth $1,005,136. Corporate insiders own 2.51% of the company's stock.

Wall Street Analyst Weigh In

BKV has been the topic of a number of recent research reports. Susquehanna dropped their price objective on shares of BKV from $37.00 to $35.00 and set a "positive" rating on the stock in a research note on Tuesday, July 21st. Wall Street Zen cut shares of BKV from a "sell" rating to a "strong sell" rating in a report on Saturday, October 17th. Barclays decreased their target price on shares of BKV from $36.00 to $35.00 and set an "overweight" rating for the company in a research report on Tuesday, September 15th. Raymond James Financial set a $29.00 target price on shares of BKV in a report on Tuesday, September 15th. Finally, Zacks Research lowered shares of BKV from a "strong-buy" rating to a "hold" rating in a report on Wednesday. One research analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating and two have given a Hold rating to the company. Based on data from MarketBeat, BKV has an average rating of "Moderate Buy" and a consensus target price of $33.67.

BKV News Summary

Here are the key news stories impacting BKV this week:

• Positive Sentiment: BKV reported Q3 revenue of $478.37 million, well above the $395.18 million analyst consensus. The company also announced a cost-reimbursement agreement with a leading frontier AI lab, supporting its push to serve growing AI power demand. BKV Reports Q3 2026 Results
• Positive Sentiment: BKV is targeting 400 MW for the first phase of its Temple project and says it aims to secure a power purchase agreement (PPA) in 2026 or early 2027. This could create a meaningful growth opportunity, though the PPA is not yet secured. BKV targets 400 MW Temple phase 1
• Neutral Sentiment: The company also reported Verra carbon-credit certification, adding a credential to its carbon-management business, though the financial impact is not specified in the reports. BKV Reports Q3 2026 Results
• Negative Sentiment: Adjusted EPS was $0.36, missing the $0.38 consensus estimate. Zacks Research also cut its rating on BKV from “strong buy” to “hold,” which may add near-term pressure despite the revenue beat. Zacks downgrade report

BKV Company Profile

BKV Corporation is an independent energy company focused on the exploration, development and production of natural gas in the United States. The company's operations are centered on unconventional shale resources, with activities that include drilling, well completion, production and management of natural gas assets.

In addition to its upstream operations, BKV is developing complementary energy businesses, including natural gas power generation and carbon capture, utilization and storage.

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