Achieved 8% exit-to-exit organic production growth in 2025 by leveraging AI and data-driven optimization to manage mid-tenured shale assets efficiently. Successfully integrated the Bedrock acquisition, which expanded the Barnett footprint and provided 'torque' through higher-than-underwritten inventory and refrac candidates. Maintained a 'fortress balance sheet' with 0.9x net leverage while fully funding all capital investments across business lines through operational cash flow. Advanced the 'close ...

BKV Corporation Investor Presentation February 2026 Important Notice and Disclaimer BKV Corporation Forward-Looking Statements. This presentation includes "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements, which are not historical facts, include statements regarding BKV's strategy, future operations, financial position, estimated revenue and losses, projected costs, prospects, plans and objectives of management and often conta ...

Core Viewpoint - Investors in BKV Corporation should closely monitor stock movements due to significant implied volatility in the options market, particularly for the Feb. 20, 2026 $20 Call option [1] Group 1: Implied Volatility - Implied volatility indicates the market's expectations for future price movements, with high levels suggesting potential significant price changes or upcoming events that could lead to a rally or sell-off [2] - The current high implied volatility for BKV options may signal a developing trading opportunity, as options traders often seek to sell premium on such options to benefit from time decay [4] Group 2: Analyst Insights - BKV currently holds a Zacks Rank 3 (Hold) in the Alternative Energy – Other industry, which is positioned in the bottom 35% of the Zacks Industry Rank [3] - Over the past week, the Zacks Consensus Estimate for BKV's current quarter earnings has increased from 27 cents per share to 32 cents per share [3]

Company Performance & Strategy - BKV's corporate 1-year decline rate is 99% for all PDP reserves including impact from the Bedrock Acquisition[11] - BKV aims to increase ownership in Power JV to 75%[18] - BKV's assets are aligned with the fastest-growing energy markets in the US[16] - BKV is the largest producer in the Barnett with potential to expand[67] Financial Highlights (Q3 2025) - Combined Adjusted EBITDAX attributable to BKV was $918 million[35] - Total Accrued CAPEX was $796 million, against a guidance of $65-$105 million[35] - Adjusted Free Cash Flow Attributable to BKV was $(106) million[35] - Net Leverage was 132x as of September 30, 2025[35] CCUS Projects - Barnett Zero is operational with a projected annual average injection of 183 ktpy (kilotonnes per year)[148] - Eagle Ford Project is at FID (Final Investment Decision) stage with a projected annual average injection of 90 ktpy[148] - Cotton Cove is at FID stage with a projected annual average injection of 32 ktpy[148]

Core Insights - Clearway Energy Inc. (CWEN) reported third-quarter 2025 earnings of $2.00 per share, significantly exceeding the Zacks Consensus Estimate of 32 cents by 525% [1] - The company’s total revenues for the quarter were $429 million, surpassing the Zacks Consensus Estimate of $422 million by 1.66%, but down 11.7% from $486 million in the same quarter last year [2] CWEN's Revenues - Total revenues of $429 million exceeded expectations but decreased by 11.7% year-over-year [2] Highlights of CWEN's Earnings Release - CWEN is positioned for long-term growth due to rising demand from data centers, with plans to invest in infrastructure and generation assets [3] - Adjusted EBITDA for the quarter was $385 million, an increase from $354 million in the previous year [3] Operating Costs and Expenses - Total operating costs and expenses were $317 million, up 2.9% from $308 million a year ago [4] - Interest expenses decreased to $98 million from $139 million in the prior year [4] Developments After Third-Quarter Close - Clearway Group signed a 20-year Power Purchase Agreement (PPA) for a 520 MW solar plus storage project, targeting a 2027 Commercial Operation Date (COD) [5] - The company also agreed to acquire a 613 MW operational solar portfolio from a third party [5] CWEN's Financial Position - Cash and cash equivalents were $251 million as of September 30, 2025, down from $332 million at the end of 2024 [6] - Total liquidity decreased to $834 million from $1.33 billion as of December 31, 2024 [6] - Long-term debt increased to $8.08 billion from $6.75 billion at the end of 2024 [6] Cash Flow - Net cash provided by operating activities for the first nine months of 2025 was $511 million, compared to $578 million in the same period last year [7] CWEN's Guidance - The new guidance for 2025 cash available for distribution (CAFD) is between $420 million and $440 million, tightening towards the upper end of the previous range [10] - Guidance for 2026 CAFD is projected between $470 million and $510 million [10] - Adjusted EBITDA projections for 2025 and 2026 are in the range of $1.235-$1.255 billion and $1.441-$1.481 billion, respectively [11]

Core Insights - BKV Corporation has acquired Bedrock Production for approximately $370 million, enhancing its presence in the Barnett Shale region [1][4] - The acquisition includes around 97,000 net acres, essential midstream infrastructure, and a production rate of approximately 108 million cubic feet equivalent per day, with 63% being natural gas [1][2] - The deal adds 800 billion cubic feet equivalent of proven reserves and 50 new drilling sites, improving natural gas price break-evens compared to BKV's existing inventory [3] Acquisition Details - The transaction encompasses 1,121 production sites with low base decline rates of around 7% over one and five years [2] - It includes 80 cost-effective refracturing sites, presenting significant future development opportunities [3] - BKV aims to strengthen its position as the dominant operator in the Barnett Shale through this strategic consolidation [4][5] Strategic Implications - The acquisition is viewed as a natural extension of BKV's operational excellence in the Barnett Shale, according to CEO Chris Kalnin [4] - BKV's strategy focuses on consolidating high-quality assets where it has proven expertise, maximizing operational synergies and capital efficiency [5] - The company is also involved in advancing a carbon capture and sequestration facility in south Texas, indicating a broader commitment to sustainable energy practices [6]

Summary of BKV Corporation Conference Call Company Overview - **Company Name**: BKV Corporation - **Industry**: Natural Gas Production - **Headquarters**: Denver, Colorado - **Core Operations**: Barnett Shale (North Texas) and Marcellus Shale (Pennsylvania) - **Largest Shareholder**: BAMPU, a global energy company focused on natural gas resource development [2][5] Core Strategies and Business Model - **Closed Loop Net Zero Strategy**: A unique approach to energy that emphasizes the importance of natural gas as a critical fuel for the future, rejecting the notion of it being merely a bridging fuel [5][6] - **Decarbonization Focus**: Plans to completely decarbonize its natural gas portfolio by the early 2030s through carbon capture, positioning BKV as a leader in low carbon energy solutions [8][9] - **Profitability from Decarbonization**: The company aims to charge a premium for decarbonized natural gas, expecting to generate higher revenues per unit of energy sold [11] Production and Financial Performance - **Production Capacity**: Currently producing approximately 900 million cubic feet per day, with a target of reaching 1 billion cubic feet per day [15] - **EBITDA Performance**: Reported EBITDA of $88 million against a CapEx of $78.8 million, indicating strong cash flow management [33] - **Upstream Business Decline Rate**: The upstream business has a natural decline rate of 10.8%, but BKV has been outperforming this, allowing for flexible capital expenditure [12] Growth Initiatives - **Acquisitions**: Recent acquisition of Bedrock assets for $370 million, enhancing production capacity and inventory [29][31] - **Carbon Capture Growth**: On track to inject over 300,000 tons of CO2 per annum by next year, with a goal of reaching 1 million tons by 2027 [17][56] - **Power Business Expansion**: Operates two combined cycle power plants with a capacity to serve the growing electricity demand in Texas, particularly from data centers [51][54] Market Positioning and Future Outlook - **Natural Gas Export Potential**: BKV emphasizes the importance of natural gas exports, potentially surpassing oil exports in the future [7] - **Barnett Shale Renaissance**: The company is leveraging advanced drilling technologies to revitalize the Barnett Shale, which has significant untapped potential [32][43] - **Strategic Partnerships**: Collaboration with Gunvor to offer carbon sequestered gas, which meets stringent carbon intensity standards, enhancing market competitiveness [45][47] Key Metrics and Performance Indicators - **Production Efficiency**: Achieved a 17% improvement in type curves and reduced drilling costs to $5.60 per lateral foot [37][38] - **Market Demand**: Positioned to meet increasing LNG demand, with the Barnett Shale capable of supporting additional production [44] Conclusion - BKV Corporation is strategically positioned in the natural gas industry with a focus on decarbonization, innovative production techniques, and strong financial performance. The company is well-equipped to capitalize on future market trends and growth opportunities in the energy sector [58]

Financial Data and Key Metrics Changes - The company reported a net income of $105 million or $1.23 per diluted share, with an adjusted basis of $0.39 per share [27] - Combined adjusted EBITDAX attributable to the company was $88 million, driven by strong production and lower than forecasted lease operating expenses [27] - Accrued capital expenditures in the second quarter were $79 million, which was 12% below the midpoint of guidance [27] Business Line Data and Key Metrics Changes - The upstream segment delivered net production of 811 million cubic feet equivalent per day, exceeding the high end of guidance [14] - The company increased its 2025 production guidance midpoint to 800 million cubic feet equivalent per day, a nearly 4% increase over the previous midpoint [17] - The power business achieved a combined average capacity factor of 59% with total generation exceeding 1,900 gigawatt hours [25] Market Data and Key Metrics Changes - The ERCOT power market is projected to grow over 20% between 2024 and 2026, driven by various sectors including AI and data centers [6] - The macro backdrop for natural gas remains bullish, with new LNG facilities coming online [5] - Power prices averaged $4,634 per megawatt hour, with an average natural gas cost of $2.98 per MMBtu, resulting in an average spark spread of $25.15 [26] Company Strategy and Development Direction - The company is focused on expanding its leadership position in the Barnett Shale through the acquisition of Bedrock's assets, which will enhance reserve life and production capacity [9] - Continued investment in carbon capture and utilization (CCUS) is a strategic priority, with multiple projects progressing towards final investment decisions [20] - The company aims to leverage its unique combination of gas, power, and carbon capture to create premium value in the Texas energy market [11] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the long-term strength of the ERCOT power market and the expected ramp in Gulf Coast natural gas demand [6] - The passage of the One Big Beautiful Bill Act, which solidifies the 45Q tax credit, is seen as a significant win for the company and the industry [21] - The company is confident in achieving a million tons per year of CO2 injection run rate by 2027 [22] Other Important Information - The company has signed definitive agreements to acquire Bedrock's Barnett Shale assets for $370 million, expected to close in the third or early fourth quarter [18] - The acquisition is anticipated to add over 100 million cubic feet equivalent per day of production and nearly one trillion cubic feet of 1P reserves [19] - The company has reserved manufacturing slots for natural gas turbines, enhancing its ability to meet power needs for large data center companies [10] Q&A Session Summary Question: Can you provide insights on the benefits of purchasing adjacent acreage? - The acquisition allows for lengthening laterals and improving economics, with 50 Tier one and 20 Tier two lateral additions expected [41] Question: How do you see cost per foot evolving with longer laterals? - The company has reduced cost per foot by 11% and expects further improvements through enhanced completion designs and data analytics [44] Question: What are the initial focus areas of the CIP partnership? - The partnership focuses on advancing CCUS projects and leveraging relationships with emitters for project sourcing [58] Question: Can you elaborate on the carbon sequestered gas deal with Gunvor? - The initial volume is structured to establish a market, with potential for significant scaling in the future [66] Question: How do you see the power business performing for the remainder of the year? - The company remains confident in its guidance despite a slow start to the third quarter, with strong long-term demand dynamics expected [77]

Company Overview - BKV is the largest natural gas producer in the Barnett Shale, with a corporate 1-year decline rate of 10.8%[10] - BKV has 1,500 MW of low heat rate power assets in Texas[10] - BKV's 2Q25 production was above high end of guidance at 811 MMcfe/d[34] Bedrock Acquisition - BKV announced the Bedrock acquisition for $370 million, targeting close in 4Q25[22, 29] - The Bedrock acquisition includes ~97,000 net acres and 1,121 gross operated wells[29] - Bedrock's 2Q25 production is ~108 MMcfe/d (~63% natural gas) with a low PDP decline of ~7% YOY[29] - Bedrock has nearly 1 Tcfe of 1P reserves (>70% PDP reserves)[29] Capital Expenditure and Production - Forecasted 2025 capital expenditures are between $290 million and $350 million[17] - BKV is targeting projects to reach a 1 Mtpy CO2 sequestration rate by 2027[17] CCUS Business - BKV's Barnett Zero project has been injecting since November 2023, with forecasted annual sequestration of 183 ktpy[105, 106] - BKV has injected ~242,000 tons through 6/30/25 at Barnett Zero[106]

Core Insights - APA Corporation has curtailed natural gas and NGL production in response to declining U.S. natural gas prices, reducing output by approximately 10 million cubic feet per day and 750 barrels per day respectively [1][9] - The company anticipates a significant drop in realized prices for natural gas and NGL in the second quarter, expecting $1 per thousand cubic feet and $19.80 per barrel, marking declines of about 50% and 29% from the previous quarter [2][9] - APA completed the sale of its New Mexico assets for $575 million, which resulted in a production decrease of around 1,800 barrels of oil equivalent per day, reflecting the company's strategy to streamline its portfolio [3][9] - The company's actions indicate a focus on capital discipline and asset optimization amid ongoing price volatility in the energy sector [4] Production and Pricing - U.S. natural gas prices faced pressure due to rising supply and subdued demand, leading to APA's production cuts [2] - The anticipated realized price for oil in the second quarter is $64.85 per barrel domestically, while international markets show stronger prices at $66.20 per barrel [2] Strategic Moves - The divestment of non-core assets is part of APA's strategy to concentrate capital in areas with higher returns [3] - The company's dual approach of cutting low-margin volumes and monetizing assets demonstrates its intent to remain resilient in changing market conditions [4]