BKV prices $500 million in senior notes at 7.500% due 2030

DENVER - BKV Corporation (NYSE:BKV), a natural gas producer with a market capitalization of $1.85 billion and annual revenues of approximately $757 million, announced Wednesday that its wholly owned subsidiary, BKV Upstream Midstream, LLC, has priced a private offering of $500 million in 7.500% senior notes due 2030. According to InvestingPro analysis, the company currently operates with a moderate level of debt.

The offering is expected to close around September 26, 2025, subject to customary closing conditions, according to a company press release.

The company plans to use the net proceeds to fund the cash portion of its previously announced acquisition of Bedrock Production, LLC, repay a portion of outstanding borrowings under its RBL Credit Agreement, and cover fees and expenses related to the offering. Any remaining funds will be directed toward general corporate purposes.

The notes offering is not contingent on completing the Bedrock Acquisition. However, if the acquisition is not completed by November 1, 2025, or if the purchase agreement is terminated before that date, the notes will be subject to a special mandatory redemption at 100% of the initial issue price plus accrued and unpaid interest.

The senior notes have not been registered under the Securities Act of 1933 and are being offered only to qualified institutional buyers under Rule 144A and to non-U.S. persons outside the United States under Regulation S.

BKV Corporation, headquartered in Denver, is among the top 20 gas-weighted natural gas producers in the United States and is the largest natural gas producer by gross operated volume in the Barnett Shale. Trading at $22.96, BKV’s stock appears slightly undervalued based on InvestingPro’s Fair Value analysis, with analysts maintaining a Strong Buy consensus and setting price targets up to $32 per share.

In other recent news, BKV Corporation reported its second-quarter 2025 earnings, surpassing market expectations with an earnings per share (EPS) of $0.39 and a substantial revenue of $322.04 billion. The company also announced plans for its subsidiary, BKV Upstream Midstream, LLC, to offer $500 million in senior unsecured notes due 2030. The proceeds from this offering are intended to fund the cash portion of BKV’s acquisition of Bedrock Production, LLC, repay part of its outstanding borrowings, and cover related expenses. Additionally, Mizuho raised its price target for BKV Corp to $35.00 from $33.00, maintaining an Outperform rating. This adjustment comes after BKV’s stronger-than-expected free cash flow performance, highlighted by a minimal $2 million outspend. These developments reflect ongoing strategic moves and financial performance that are noteworthy for investors.

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