BKV subsidiary to offer $500 million in senior notes

DENVER - BKV Corporation (NYSE:BKV), a natural gas producer with a market capitalization of $1.8 billion and annual revenues of approximately $757 million, announced Monday that its wholly owned subsidiary, BKV Upstream Midstream, LLC, plans to offer $500 million in aggregate principal of senior unsecured notes due 2030, subject to market conditions. According to InvestingPro data, the company currently operates with a moderate level of debt, maintaining a debt-to-equity ratio of 0.13.

The company intends to use the 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 offering-related expenses. Any remaining funds will be allocated for general corporate purposes. While the company’s current ratio of 0.56 indicates tight liquidity, detailed financial analysis available on InvestingPro suggests strong growth potential, with analysts forecasting profitability this year.

The offering is not contingent on closing 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 interest.

The senior notes will be guaranteed by BKV Corporation and all existing subsidiaries of the issuer, along with certain future subsidiaries. The securities 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 the largest natural gas producer by gross operated volume in the Barnett Shale, according to the press release statement. Analysts maintain a Strong Buy consensus on the stock, with price targets ranging from $25 to $32 per share, reflecting confidence in the company’s growth trajectory.

In other recent news, BKV Corp reported its second-quarter 2025 earnings, demonstrating a strong financial performance that exceeded market expectations. The company announced an earnings per share (EPS) of $0.39, which surpassed analysts’ forecasts, alongside a notable revenue of $322.04 billion. In light of these results, Mizuho raised its price target for BKV Corp to $35.00 from $33.00, while maintaining an Outperform rating. The price target adjustment was influenced by BKV’s stronger-than-expected free cash flow performance, with the company reporting only a $2 million outspend. These developments reflect a positive outlook for BKV Corp, as indicated by the recent analyst updates and financial disclosures.

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