BKV Corp (BKV) · Nov 5, 2026 · Earnings

BKV earnings miss as AI power plan doubles to 400 MW

Miss — Adjusted EPS $0.36 vs published consensus ~$0.44-$0.45

BKV’s third-quarter earnings missed consensus, while a new cost-reimbursement deal expands its Temple AI-power project and limits development risk.

BKV is transitioning from a gas producer with an operating power business into a broader closed-loop energy platform spanning upstream gas, power generation and carbon capture. Before this release, the market already knew about roughly 200 MW of modular equipment, a potential 1.2 GW CCGT project and ongoing PPA discussions; the Q2 outlook called for Q3 power Adjusted EBITDAX of $45-$65 million and total Q3 capital spending of $200-$285 million.

The quarter missed the earnings bar despite better operating cash flow. Adjusted diluted EPS was $0.36 versus a published consensus of roughly $0.44-$0.45, while Adjusted EBITDAX attributable to BKV rose to $132.7 million from $101.3 million and operating cash flow before working capital increased to $112.7 million from $94.0 million. The miss reflects a tougher power environment and higher interest expense rather than an operational collapse: power prices and spark spreads fell year over year, even as generation and plant reliability improved.

The strategic power story advanced, but it is still not contracted revenue. The new cost-reimbursement agreement supports expanding Temple modular generation to 400 MW from 200 MW and can reimburse up to approximately $179 million if offtake terms are not agreed by November 18, with a potential equipment-assignment reimbursement cap of $374.1 million. That meaningfully reduces BKV’s near-term exposure while it negotiates a long-term PPA, but the key commercial conversion—durable contracted cash flow—has not happened yet.

Upstream execution remains the ballast for the expansion. Production reached 981.2 MMcfe/d, above the prior Q3 guidance range of 935-965 MMcfe/d even before fully crediting the Barnett acquisition, while development spending was $51.5 million versus the prior $55-$75 million guide. The Barnett deal also added production, liquids exposure, midstream infrastructure and CCS capacity, strengthening the operating base but contributing to a much more capital-intensive growth plan.

CCUS delivered a genuine milestone, but monetization is still early. Verra certification means BKV can begin delivering its carbon-sequestered gas under previously announced arrangements with Kiewit and Gunvor, adding commercial validation to the carbon-capture platform. The company also says its four-project portfolio now has an approximately 350,000-metric-ton annual sequestration run rate.

Balance-sheet capacity improved, but leverage rose with the growth push. Cash and restricted cash reached $635.8 million and liquidity totaled $1.2 billion, yet net debt was $1.37 billion and the reported net leverage ratio was 2.41x, up from 1.78x at June 30. The company has funding flexibility for the projects, but the quarter shows that the AI-power strategy is requiring substantial deposits and debt before long-term PPAs are secured.

Bottom line: BKV’s underlying operating execution and commercial power progress were better than the headline EPS miss suggests, but the immediate earnings result fell short and the growth plan remains dependent on turning equipment commitments into contracted PPAs. This is a modestly negative quarter for the current story, not a reversal of it.

What to watch next

Long-term PPA negotiations; CRA decision deadline November 18

Original filing on SEC EDGAR

More BKV Corp news

• BKV signs power equipment contract with hyperscaler backstop
• BKV adopts broad executive severance plan, raising retention protection and payout exposure
• BKV formalizes convertible-note hedge, but filing leaves core economics blank
• BKV upsizes convertible debt to $500M, adding liquidity but future dilution risk
• Earnings release furnished, but the actual Q2 results are missing here