BKV's record quarter, new carbon capture site, and parent's $3B gas-and-AI push
Record Q2 profit and raised production outlook BKV posted record quarterly adjusted EBITDAX of $142 million and adjusted net income of $51 million, more than double the prior quarter, even with lower gas prices. It raised full-year production guidance to about 950 million cubic feet equivalent per day, signaling the core business is growing and more profitable.
This is the period's biggest new financial result and directly supports a higher stock price.
Earnings beat estimates by a wide margin Revenue of $465.5 million beat analyst estimates by 27%, and earnings per share of $0.67 far exceeded the $0.29 consensus. Management said production hit the high end of guidance while spending stayed low, showing the integrated gas, power, and carbon capture strategy is working.
A large earnings beat is new, concrete evidence that the company is outperforming expectations.
New Eagle Ford carbon capture facility starts up BKV began operating its Eagle Ford carbon capture site, its third commercial facility, which will store about 90,000 metric tons of CO2 yearly. This advances its goal of injecting 1.5 million tons annually by 2028 and strengthens the low-carbon side of the business.
This is a new operational milestone that adds a growth leg beyond oil and gas.
Parent Banpu commits $3B, mostly to gas and BKV Banpu unveiled a five-year plan with over $3 billion in spending, about 60% going to natural gas and BKV. It targets 960 million cubic feet equivalent per day of gas production in 2026 and is negotiating long-term power deals with data center operators for the Temple and Jack County plants.
The parent's capital commitment and AI-driven power demand give BKV a clear funding and demand tailwind.