Q4 operational execution highlighted a 22% uplift above type curve through 150 days across 30 new wells, with positive offset wells contributing roughly half of the gains. Completion efficiency improved, setting internal records over 22 hydraulic horsepower-hours per day and drilling the Barnett Shale’s longest lateral. Drill-and-complete costs dropped to $545 per lateral foot, and integration of the Bedrock acquisition added over 100 MMcfe/d of production ahead of schedule.

Q4 adjusted EBITDA reached $109 million, contributing to full-year EBITDA of $390 million. BKV ended 2025 with net leverage at 0.9x and $984 million in total liquidity. Upstream development capital for 2026 is guided at $410–$560 million, fully funded by cash flow, with an expected production run rate of 935 MMcfe/d.

Carbon capture efforts accelerated through a partnership committing up to $500 million, aiming for a 1.5 million ton/year injection run rate by 2028. The Barnett Zero facility has injected over 311,000 metric tons since November 2023, while Class VI permits have been filed for multiple projects. BKV models CCUS project economics around $48 of EBITDA per ton and plans first-half 2026 startups at Cotton Cove and Eagle Ford.

Power generation delivered strong availability, with a 57% capacity factor in Q4 and 59% for 2025, producing over 7,600 GWh. Average Q4 spark spread reached $24.54/MWh on $49.69/MWh power prices and $3.55/MMBtu gas costs, lifting full-year spark spreads by over 15%. Following a January transaction, BKV’s ownership in the Temple Energy Complex increased to 75%, with consolidation slated for Q1 2026.