BKV Corporation has authorized a two‑year share repurchase program that could buy back up to $100 million of its common stock. The program gives the company flexibility to repurchase shares through open‑market purchases, block trades, 10(b)(5) plans, or private negotiations, with timing and amount at management’s discretion based on market conditions, liquidity, and strategic priorities.
The decision comes after BKV reported Q3 2025 results that included net income attributable to BKV of $76.9 million, or $0.90 per diluted share, and adjusted net income of $42.5 million, or $0.50 per diluted share. The company said the results fell short of guidance because spark spreads were lower than expected, even as upstream production volumes rose 9 % year‑over‑year and 2 % sequentially. These figures underscore the company’s ability to generate cash while navigating commodity price volatility.
Management said the share buyback is funded through available cash or borrowings under its existing reserve‑based lending agreement, reflecting confidence in the company’s balance sheet. CEO Chris Kalnin emphasized that the program is part of BKV’s disciplined capital deployment strategy and signals the company’s belief in the strength of its closed‑loop energy solutions strategy, which integrates natural gas production, gathering, processing, transportation, power generation, and carbon capture.
BKV’s core natural‑gas business remains a key driver of its performance. The company is one of the top 20 gas‑weighted natural‑gas producers in the United States and the largest producer in the Barnett Shale. In addition, BKV is in the process of acquiring a controlling interest in BKV‑BPP Power, a move that will add more than 1.1 GW of generation capacity in ERCOT and is expected to close in Q1 2026. The recent public offering of 6.9 million shares, which raised approximately $170.3 million in net proceeds, provides additional liquidity to support the buyback and the acquisition.
The market reacted positively to the announcement, with investors viewing the program as a sign of management’s confidence in the company’s financial health and future prospects. The share repurchase program is a material capital‑structure change that will likely influence long‑term investors’ assessment of BKV’s capital allocation strategy.
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