BKV Corporation

Good morning, everyone, and welcome to BKV's fourth quarter and full year 2025 earnings conference call. As a reminder, today's call is being recorded, and at this time, all participants are in a listen-only mode. A brief question and answer session will follow the formal presentation. I would now like to turn the call over to Mr. Michael Hall, Vice President of Investor Relations. Please go ahead.

Thank you, Operator, and good morning, everyone. Thank you for joining BKV Corporation's fourth quarter and full year 2025 earnings conference call. With me today are Chris Kalman, Chief Executive Officer, Eric Jacobson, President of Upstream, and David Tamarin, Chief Financial Officer. Before we provide our prepared remarks, I would like to remind all participants that our comments today will include forward-looking statements which are subject to certain risks, uncertainties, and assumptions. Actual results could differ materially from those in any forward-looking statements. In addition, we may refer to non-GAAP measures for a more detailed discussion of the risks and uncertainties that could cause actual results to differ materially from any forward-looking statements, including those associated with the recently completed PowerJV transaction or the integration of recently acquired upstream assets, as well as the reconciliations of non-GAAP financial measures Please see the company's public filings included in the Form 8K filed today. I would also point listeners to the updated investor presentation posted this morning on our Investor Relations website. We encourage everyone listening to review those slides and our forthcoming annual report to be filed with the SEC for further information on our business, operations, results from the quarter and full year, and details on our 2026 guidance. I'd now like to turn the call over to our CEO, Chris Kalman.

Thank you, Michael, and thank you, everyone, for joining us to discuss our fourth quarter and full year 2025 results. As we close out 2025, I'm proud to report that BKV delivered a transformational year that exemplifies our said-did culture and positions the company for sustained, long-term profitable growth. We generated strong earnings, maintained a fortress balance sheet, and delivered strong growth. 2025 marked our first full year as a public company, and we executed across each pillar of our closed-loop strategies. Our business lines of upstream natural gas, natural gas midstream, carbon capture, and power deliver premium low-carbon energy solutions that are increasingly sought after in today's energy markets. In our upstream business, we exceeded expectations throughout the year, and our performance across the Barnett and Northeast Pennsylvania showcased the depth, durability, and competitiveness of our upstream assets with approximately 8% exit-to-exit organic production growth on upstream development capital well within cash flow and with top-tier F&D costs. The successful close of the bedrock acquisition in the third quarter was executed in line with our plan. The transaction materially expanded our footprint in the Fort Worth Basin and added high-quality assets. We added more than 100 million cubic feet equivalent per day of production and nearly one TCFE of approved reserves to our leading position in the basin. Our upstream business remains foundational to our growth strategy. We believe we have built a scalable, repeatable, and disciplined operating model for extracting value from mid-tenured shale basins. Our team is at the forefront of driving efficiency by leveraging technology, data, and AI to optimize development and performance across our portfolio. This is a model that we believe wins in mid-tenured gas basins over the long term. In our carbon capture business, we had meaningful progress in 2025. Earlier in the year, we secured a transformative partnership with Copenhagen Infrastructure Partners, or CIP, who committed up to $500 million for joint investment in carbon capture opportunities. We are working hand in hand with their team to scale this business profitably. Our flagship Barnett Zero facility continues to operate efficiently and has achieved cumulative injection of over 311,000 metric tons since first injection in November 2023. Further, we have announced multiple new projects during the year, including projects in Texas with a large midstream operator and Comstock Resources. We recently signed definitive agreements with Comstock Resources to sequester CO2 from their Bethel and Marquee facilities in the western Haynesville play. We expect to commence commercial operations in 2028. I would like to thank Jay and his team for their continued strong partnership in these projects. BKV has taken a clear leadership position in carbon capture. and materially advance the projects in our pipeline towards commerciality. On the back of that momentum, we are refreshing our near-term CCUS injection target to 1.5 million tons per annum within 2028. We believe this volume run rate will enable the business to contribute materially to our financials. Carbon capture remains a key growth driver in 2026 and beyond. We remain on track for the startup of our Cotton Cove and Eagle Ford facilities in the first half of 2026 and are excited about the future opportunities in this business. Our power business is a core growth engine within our closed-loop strategy. On the back of our recent PowerJV transaction, which closed on January 30th, We now hold a 75% majority ownership in the 1.5 gigawatts of low heat rate generation capacity at the Temple plants, which are located at the center of ERCOT's accelerating AI and data center boom. BKV's power assets performed well during winter storm fern. Within ERCOT, natural gas supplied nearly 60% of power generation through periods of peak load. This represents nearly four times the next closest source and reinforces the central role of natural gas in ensuring grid reliability. We are well positioned to deliver capital-efficient growth from these assets as we seek to secure long-term fixed offtake agreements in the form of power purchase agreements, or PPAs. In the second half of 2025, we continue to advance our structured and competitive process to secure a long-term off-taker for our Temple Energy Complex. We are currently evaluating proposals from multiple counterparties which have shown strong interest in our offerings. The broad participation in this process has reinforced our conviction that our Temple Energy Complex is uniquely positioned to provide near-term power solutions to some of the largest technology companies and infrastructure developers in the country. We remain confident in the timelines we previously outlined and continue to target a potential PPA in 2026 to early 2027. BKV's position in the state of Texas is ideally situated to benefit from the confluence of some of the biggest megatrends in energy. The Barnett Shale in the Fort Worth Basin sits underneath one of the fastest growing markets for power and industrial growth in the country. We believe Texas is set to attract significant investment dollars in data center and other infrastructure over the coming years. BKV is working closely with state regulators, policymakers, and stakeholders to ensure investments in power and other forms of energy generate win-win outcomes for the state. Our strategy is backed by a systematic investment approach, which combines the winning formula of gas, power, and carbon capture to generate premium margins from our energy portfolio. Our carbon sequester gas product, which we expect to hit the market this year, is a prime example of the unique energy products that BKV's closed loop strategy can bring to the market. BKV is excited about the future as we believe our differentiated strategy will create leading risk adjusted returns for our shareholders. With that, I'd like to hand a call over to BKB's President of Upstream, Eric Jacobson, to discuss our Upstream and CCUS operational performance for the quarter and full year.