BKV completes $370 million acquisition of Bedrock’s Barnett Shale assets

DENVER - BKV Corporation (NYSE:BKV), a $2.02 billion market cap natural gas producer whose stock has surged nearly 12% in the past week according to InvestingPro data, announced Monday it has completed the acquisition of Bedrock Energy Partners’ Barnett Shale assets for approximately $370 million, further solidifying its position as the largest natural gas producer in the basin.

The transaction adds approximately 97,000 net acres adjacent to BKV’s existing operations, along with midstream infrastructure and approximately 108 million cubic feet equivalent per day (MMcfed) of production. According to the company, about 63% of the acquired production consists of natural gas. This expansion comes as BKV demonstrates strong operational performance, with revenue growth of nearly 14% in the last twelve months.

The acquired assets include 1,121 producing locations with low decline rates of approximately 7% over one year and approximately 800 billion cubic feet equivalent of proved reserves, based on NYMEX strip pricing as of June 30, 2025.

"This strategic consolidation of high-quality Barnett Shale assets represents a natural extension of our proven operational excellence in this premier natural gas basin," said Chris Kalnin, Chief Executive Officer of BKV, in a press release statement.

The deal also provides BKV with approximately 50 new drill locations with 10,000-foot lateral lengths and 80 low-cost refrac locations, which the company states will provide future development opportunities.

BKV Corporation, headquartered in Denver, is among the top 20 gas-weighted natural gas producers in the United States. The company operates across four business segments: natural gas production, gas gathering and processing, power generation, and carbon capture.

The transaction was structured as an acquisition of all issued and outstanding equity interests of Bedrock Production, LLC.

In other recent news, BKV Corporation reported impressive second-quarter 2025 earnings, with an earnings per share (EPS) of $0.39, surpassing analyst expectations. The company also reported substantial revenue of $322.04 billion, highlighting its robust financial performance. In addition, BKV’s wholly owned subsidiary, BKV Upstream Midstream, LLC, announced a private offering of $500 million in 7.500% senior notes due 2030. The proceeds from this offering are intended to support the cash portion of BKV’s acquisition of Bedrock Production, LLC, repay part of its outstanding borrowings, and cover related expenses, with any remaining funds allocated for general corporate purposes.

Furthermore, Mizuho raised its price target for BKV Corp to $35.00 from $33.00, maintaining an Outperform rating, following the company’s stronger-than-expected free cash flow performance. These developments reflect the company’s strategic financial maneuvers and positive analyst sentiment.

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