BKV (BKV) Q2 2026 earnings summary

Executive summary

• Achieved record adjusted EBITDAX of $142 million and adjusted net income of $51 million in Q2 2026, with all business lines meeting or exceeding plan and strong operational execution across upstream, power, and CCUS segments.

• Net income attributable to shareholders was $75.8 million for Q2 2026, with strong cash flow from operations and robust production growth.

• Brought two new carbon capture projects online, expanding the CCUS portfolio to three operating sites and commencing commercial CO2 sequestration at Cotton Cove and Eagle Ford.

• Power business demonstrated strong operational performance, with Temple plants generating 2,222 GWh in Q2 2026, up 16% year-over-year, and significant progress at Temple and Jack County sites.

• Integrated platform of gas, power, and carbon capture continues to drive competitive advantages and value creation, positioning as the largest Barnett producer and targeting multi-GW power growth.

Financial highlights

• Adjusted EBITDAX was $142 million in Q2 2026; adjusted net income $51 million; net income attributable to shareholders $75.8 million; adjusted free cash flow before power growth $40 million.

• Total revenues for Q2 2026 were $465.5 million, with operating income of $121.7 million.

• Temple facilities produced 2,222 GWh in Q2, with a 70% capacity factor and $36 million gross power adjusted EBITDA.

• Net leverage ratio stood at 1.78x as of June 30, 2026; total liquidity was $836.7 million.

• Total capital expenditures for Q2 2026 were $198 million, with upstream CapEx at the low end of guidance.

Outlook and guidance

• Full-year 2026 capital expenditures guided at $690–$875 million, with $400–$475 million for strategic power investments and $120–$150 million expected from joint venture partners.

• Raised full-year production guidance to a midpoint of 950 MMcfe/d, with Q2 production at 978 MMcfe/d; expect 3–4% year-over-year production growth.

• Power Adjusted EBITDAX guidance: $135–$175 million for FY 2026.

• Targeting 1.5 million tons per annum CCUS injection run rate by 2028.

• Anticipate continued strong cash flow and liquidity to fund growth investments.