BKV Corp. (BKV) Plans to Raise $300 Million in September 26th IPO

BKV Corp. (BKV) is planning to raise $300 million in an initial public offering on Thursday, September 26th, IPO Scoop reports. The company will be issuing 15,000,000 shares at $19.00-$21.00 per share.

In the last 12 months, BKV Corp. generated $813.1 million in revenue and had a net loss of $17.9 million. The company has a market-cap of $1.6 billion.

Citigroup, Barclays, Evercore ISI and Jefferies acted as the underwriters for the IPO and TPH&Co. and Susquehanna Financial Group were co-managers.

BKV Corp. provided the following description of their company for its IPO: “We are a forward-thinking (and) growth-driven energy company focused on creating value for our stockholders through the organic development of our properties as well as accretive acquisitions. (Incorporated in Delaware) Our core business is to produce natural gas from our owned and operated upstream businesses, which we expect to achieve net zero Scope 1 and Scope 2 emissions by the end of 2025. We maintain a “closed-loop” approach to our net zero emissions goal with our four business lines: natural gas production, natural gas gathering, processing and transportation (our “natural gas midstream business”), power generation and carbon capture, utilization and sequestration (“CCUS”). We are committed to building a vertically integrated business to reduce costs and improve overall commercial optimization of the full value chain. For instance, our natural gas production in the Barnett is gathered and transported through our midstream systems, and we are seeking to establish arrangements to supply our natural gas production directly to the BKV-BPP Power Joint Venture. We believe that our differentiated business model, net zero emissions focus, highly experienced management team and technology-driven approach to operating our business will enable us to create stockholder value. We are engaged in the acquisition, operation and development of natural gas and NGL properties primarily located in the Barnett Shale in the Fort Worth Basin of Texas (the “Barnett”) and in the Marcellus Shale in the Appalachian Basin of Northeastern Pennsylvania (“NEPA”). Our upstream assets are the core of our business and provide us with substantial Adjusted Free Cash Flow, which we expect will be sufficient to fund our capital expenditure program, enhance stockholder value and support future acquisitions across our four business lines while maintaining a conservative balance sheet. We have a balanced portfolio of low decline producing properties and undeveloped inventory, primarily in the Barnett. Additionally, our focus on operational efficiencies, access to BKV-owned and third-party midstream systems, and proximity to natural gas demand markets along the Gulf Coast and Northeast corridor allow us to generate high margins.   As of September 30, 2022, our total acreage position was approximately 505,000 net acres, 99% of which was held by production. As of September 30, 2022, our net daily production (after giving effect to the Exxon Barnett Acquisition) averaged 864 MMcfe/d, consisting of approximately 79% natural gas and approximately 21% NGLs.   **Note: Net income and revenue figures are for the 12 months that ended Sept. 30, 2023: Net income of $335.4 million on revenue of $1.19 billion ($1,188.80 million) for the 12 months that ended Sept. 30, 2023.   **Note: Net loss and revenue figures are for the 12 months that ended March 31, 2024.  (Note: BKV Corp. disclosed the terms for its IPO in an S-1/A filing dated Sept. 16, 2024: 15.0 million shares at a price range of $19.00 to $21.00 to raise $300.0 million, if priced at the $20.00 mid-point.)  (Note: BKV Corp. disclosed changes in its underwriting team in an S-1/A filing on Aug. 12, 2024, in which Wells Fargo Securities was no longer listed as a joint book-runner and Capital One Securities was no longer listed as a co-manager. The joint book-runners’ team shows these names, which have been there all along: Citigroup, Barclays, Evercore ISI and Jefferies. The  co-managers’ team consists of these names, which have been there all along: TPH & Co. and Susquehanna Financial Group. Background: BKV Corp. filed an S-1/A on July 5, 2024, without disclosing terms for its IPO. In that July 5, 2024, filing BKV Corp. updated its financial figures for the period through March 31, 2024, and disclosed that Capital One Securities has replaced SMBC Nikko as a co-manager. Background: BKV Corp. filed an S-1/A on Jan. 12, 2024, with updated financial statements for the period through Sept. 30, 2023. Background: BKV Corp. filed its S-1 on Nov. 18, 2022; it submitted confidential IPO documents to the SEC on Aug. 12, 2022.)   “.

BKV Corp. was founded in 2015 and has 356 employees. The company is located at 1200 17th Street, Suite 2100 Denver, Colorado 80202 and can be reached via phone at (720) 375-9680 or on the web at https://www.bkvcorp.com/.