BKV Announces Power Generation Equipment Supply Contract Backed by Agreement with a Leading Investment-Grade Hyperscaler

The backstop covers approximately 90% of equipment-contract payments through March 31, 2027, while power-purchase arrangements remain unresolved.

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DENVER--(BUSINESS WIRE)-- BKV Corporation (“BKV” or the “Company”) (NYSE: BKV) today announced that a wholly owned subsidiary of BKV has executed an equipment supply contract with a Tier 1 Supplier for the purchase of natural gas-fired power generation equipment for the Company’s prospective power generation project in Texas. BKV also announced a backstop agreement with a leading investment-grade hyperscaler, under which the hyperscaler has agreed to reimburse a portion of BKV’s costs associated with the equipment and related project work. This investment grade hyperscaler is also the intended off-taker for the prospective power generation project.

The backstop agreement supports BKV’s procurement of certain long-lead-time equipment including gas turbines, reheat steam turbines, reheat heat recovery steam generators and a plant distributed control system, along with related auxiliary equipment and services. If BKV and the investment grade hyperscaler have not reached mutually agreeable offtake arrangements by March 31, 2027, BKV may terminate the equipment supply contract at such time and have no further payment obligations thereunder. The backstop agreement covers approximately 90% of the payments owed by BKV through March 31, 2027 under the equipment supply contract. This supports BKV’s power growth strategy and closed-loop platform spanning natural gas production, power generation and carbon capture.

The equipment supply contract provides that the supplier will supply approximately 1,200 megawatts of power generation equipment, with deliveries beginning in September 2028.

“Securing long-lead-time generation equipment is an important step in advancing power projects on the scale and timelines customers require and is consistent with our disciplined approach to capital deployment,” said Chris Kalnin, Chief Executive Officer of BKV Corporation.

About BKV Corporation
BKV Corporation (NYSE: BKV) is a forward-thinking, growth-driven energy company focused on the sustainable development and delivery of low-carbon energy solutions and baseload power. As the largest natural gas producer by gross operated volume in the Barnett Shale, BKV is strategically expanding an end-to-end value chain that leverages its assets in upstream production, midstream infrastructure, natural gas-fired power generation and carbon capture, utilization and storage (CCUS). Through this innovative, closed-loop approach, BKV solves customers’ toughest energy challenges, meeting growing power demand and enabling sustainable growth for the future. Headquartered in Denver, Colorado, BKV is committed to driving long-term, risk adjusted shareholder value by optimizing and scaling our closed-loop energy platform for a carbon neutral future. For more information, visit the BKV website at www.bkv.com.

Forward Looking Statements
The information in this press release includes “forward-looking statements” within the meaning of the federal securities laws, including statements regarding the delivery timelines for the equipment under the supply contract, the timing and amount of payments under the supply contract, performance of the equipment being acquired under the supply contract, the performance of the Supplier under the supply contract, and the Company’s ability to enter into power offtake arrangements for its prospective power generation project by March 31, 2027, in each case as described above. Forward-looking statements, which are not historical facts, include statements regarding BKV’s strategy, future operations, financial position, estimated revenue and losses, projected costs, prospects, plans and objectives of management, and often contain words such as “expect,” “project,” “estimate,” “believe,” “anticipate,” “intend,” “budget,” “plan,” “seek,” “aspire,” “envision,” “forecast,” “target,” “predict,” “may,” “should,” “would,” “could,” “will,” the negative of these terms and similar expressions, which are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. Such forward-looking statements include, but are not limited to, statements about guidance, projected or forecasted financial and operating results, future liquidity, leverage, results in certain basins, objectives, project timing, expectations and intentions, regulatory and governmental actions and other statements that are not historical facts. Forward-looking statements are based on management’s current views and assumptions. Although we believe our estimates and assumptions to be reasonable, they are inherently uncertain and involve a number of risks and uncertainties that are beyond our control and are difficult to predict. In addition, management’s assumptions about future events may prove to be inaccurate. As a result, actual results could differ materially from those indicated in these forward-looking statements. When considering these forward-looking statements, you should keep in mind the risk factors and other cautionary statements discussed in BKV’s filings with the Securities and Exchange Commission (the “SEC”), including the risks and uncertainties addressed under the headings “Risk Factors” and “Cautionary Note Regarding Forward-Looking Statements” in BKV’s most recent Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and in BKV’s other filings with the SEC. BKV undertakes no obligation and does not intend to update these forward-looking statements to reflect events or circumstances occurring after this press release. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release.

View source version on businesswire.com: https://www.businesswire.com/news/home/20261007903228/en/

For BKV:

Media Contact:

Becky Escott
BKV Corporation
Vice President, Corporate Communications
media@bkvcorp.com

Investor Contacts:

Michael Hall
BKV Corporation
Vice President, Investor Relations
investorrelations@bkvcorp.com

Patrick Freeman
BKV Corporation
Senior Director, Investor Relations
investorrelations@bkvcorp.com

Source: BKV Corporation

Key Terms

off-taker financial

An off-taker is an entity that has entered a contractual agreement to buy the output of a project or producer—typically commodities, power, minerals, or manufactured goods—often under a forward purchase or "offtake" contract specifying quantities, prices or pricing formulas, and delivery terms. The role is contractual rather than merely prospective: the off-taker's commitment can provide predictable future revenue for the seller and is often used as the basis for project financing, but the obligation depends on the specific contract terms (for example, firm take-or-pay commitments versus optional purchase rights).

heat recovery steam generators technical

A heat recovery steam generator (HRSG) is an industrial heat exchanger that captures waste heat from a combustion turbine or other hot gas stream to produce steam. The captured heat passes through banks of tubes where water is converted to steam at one or more pressure levels; that steam can drive a steam turbine for additional electricity generation, be used for process heat, or be supplied to a steam system. HRSGs do not generate heat themselves but recover usable thermal energy from exhaust gases, and their performance depends on the temperature and flow of the incoming gas and the HRSG’s pressure arrangement and heat-transfer design.

distributed control system technical

A distributed control system is a network of small automated controllers placed throughout a factory, power plant or other industrial site that monitor sensors and operate equipment while feeding information to a central operator display. For investors, it matters because this architecture improves uptime, efficiency and safety like having many local traffic officers coordinated by a central dispatch—impacting production costs, capital spending, maintenance needs and exposure to cyber or upgrade risks.

investment-grade financial

Investment-grade describes bonds or other debt judged by credit agencies to have relatively low risk of failing to make promised interest and principal payments; think of it as a lender's report card showing financial stability. It matters to investors because these securities usually pay lower yields but reduce the chance of loss, affect portfolio risk and credit exposure, and influence how cheaply an issuer can borrow—similar to choosing a reliable car with lower repair risk over a cheaper, uncertain one.