BKV - Earnings call transcript Q4 2024

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Operator

Good morning, everyone, and welcome to BKV's Full Year and Fourth Quarter 2024 Earnings Conference Call.

As a reminder, today's call is being recorded. [Operator Instructions] I would now like to turn the call over to Mr. David Tameron, Vice President of Strategic Finance and Investor Relations.

David Tameron

Good morning, everyone, and thank you for joining BKV Corporation's fourth quarter and full year 2024 earnings conference call. Chris and Executive Officer. John are President Eric today Upstream; of Jimenez, me Kalnin, Officer; Chief Jacobsen, With Chief Financial

we results comments statements. remarks, all prepared to any certain statements, provide forward-looking like and subject materially Before remind assumptions. from uncertainties to in Actual which I are participants differ will today would our risks, include could forward-looking that our those

Additionally, non-GAAP we may refer measures. to

materially actual from the of forward-looking risks uncertainties results discussion to as detailed cause differ see the well non-GAAP more a as including company's For of public earlier filed financial any today. X-K please that statements and reconciliations filings, could any Form the measures,

investor We Chris our website. I'd on CEO, our to over have updated now to also Kalnin. posted presentation turn an like the call

Christopher Kalnin

us the and take operations. you, BKV transformational our by upstream XXXX you, discuss for full performance, driven our on joining to had impressive results. I XXXX. delivered quarter the want largely results Thank reflect truly everyone, fourth from to to year, and BKV year Throughout solid year business in moment thank a David,

gained data also sector. in We engaging business, center in customers our with prospective actively momentum the Power

I'd a across CCUS our York a joint upstream value energy the as integrated an that combining And Our of the like energy concept vectors. New with decarbonized the capture, are X FID energy all profitable. The businesses of to at of power and our marked stand-alone our on advance including carbon we and and maintained a in new by company trends additional milestone time, is key major in with end evolving deliver well by sheet, to making the power Exchange With we flexibility to year scalable, same particular, midstream, the BKV's markets, progressed project offer our of us generate some and that capture create formula venture with customers. balance as lines, significant Stock businesses carbon an on September. BKV business and shaping the win course, providing approaches securing initiatives towards At is rapidly, power, steps new combination strategy. financial around-the-clock solutions partner. strong a redefining debut traditional to value a sustainable highlight energy

XXX ERCOT's could Our market. across ERCOT for growth. and driver long-term is growth with a Power have capacity consumer growth forecast on reach for demand in accounting gigawatts, industrial center estimates XX including load and anchored key cycle and XXXX gas recent in a of demand ERCOT nearly for Temple, modern and U.S. in XXXX factors, efficient power data megawatts XXXX, are gigawatts growth is generative BKV. Rapid opportunity JV X,XXX business data given AI developments growth. half of the electrification, combined that Power X The generation by demand, power doubling approximately located forecast of load demand and this Texas. power natural by key several demand plants a Texas the overall represents compelling importantly, and the is the peak increasing center the driven generation ERCOT company in highly

activities, steam which new took steps we in cycle to involved operational quarter, of Texas JV proactive periods, demand have fourth Temple months. units. the the and on uptime during summer turbine our Through our and enhance peak especially we due the to to benign the the additions and weather turbines positioned readiness During maximize Power winter grid. during conditions near-term, prices to have renewable combined moderate ourselves seen complex, our maintenance these In

growth about growth supply is particularly demand projected to baseload bullish However, ERCOT's supply. we long-term additions, scarcity outpace as remain and demand overall, pricing

vectors multiple has business Power Our growth. of

our higher of First, assets the capacity for we power as have demand factors market. through existing the baseload in increase utilization ability the increases to

the transactions active for in years. M&A significant next expects is BKV and opportunities markets the Second, few in

Third, the Temple structural study there Power growth as BKV additional to have commissioned projected customers new a our plants power generation are similar to supply between demand on mismatch the and address baseload units explore model we from securing combined building cycle believe business focused unique to assets. BKV's in business. to industry, capture is carbon our to plants decarbonizing its future vital role recognizing ability bullish is natural in combust customers. feature the power our global gas we BKV current in transition unique XXQ enjoys important carbon decarbonize tax carbon that presidential partner the the bipartisan position This venture remains administrations. BKV to our administration. through business. continuing on Revenue economy. multiple a by are Code in our Further, resilience carbon across credit in capture The Internal this the strong including solidifying development, is in incentives project the such from is of pipeline execute. codified economic business. its have FID progress leadership investor Congress are a enacted become this In energy in to and evidence The capture driving that support, we demonstrated joint in exclusive U.S., with the as our negotiations and our global capture we

our a growth growth level a quarter to momentum at partner We are diligence of business. independently. talk part these same could the our to have our XXX CCUS we us will stand-alone At is believe agreements within time, to We in BKV's the drive complete about definitive the to As a accretively. Later, a business accelerate and business. drive a we overall to standard Eric negotiations, project timeline strong agreed days. next mutually we have position and business help finalize attractive in CCUS this upstream due we CCUS XX financial had believe

continues to the cash grow engine our across lines. our business ability be all business to upstream driving Our

did favorable of how these towards results aspirational At to is lower our extremely excited of team's highlight I'm performance, we with navigate our periods navigate business We goals. Overall, conditions also our from our and strategy the to quarter. positioned only We pleased and very decline remain same this are grow business and see execution are low capture we all about allowing solid rates, us pricing. able Not pricing. to reinvest, but with the results our strong value strategically last on delivering continued lines. the executing focused our performance across and to shareholders ability dynamic market production time, drive

over to I'd over hand Upstream, BKV's Jacobsen, to Now to the you. like for Eric the operational call quarter. to President specifics of discuss Eric,

Eric Jacobsen

Fourth teed the guidance delivered CapEx, and quarter, the million well with exceeding investing Thanks, up, than X%. which was million it of quarter theme investment and by was day, approximately range upstream And are of lower performance the development on very excited $XX cubic at program. pleased feet that production new curve. was forecasted. the better outperforming are our Across was by Chris. Chris amount XXX Building midpoint our XXXX per than or we type about quarter equivalent our fourth performance of fourth the forecasted upstream development

decline XQ upstream we several We of pace continued our development the resulted faster in online drilling of strong boost Simply highly we quarter which production, activity through cost management. had base and end we put, performance. and And trademark at the at wells forecasted. We the to fourth XXX than to effective daily completion lower timing inventory, brought delivered strong to more advantaged a at quarter, accelerated non-ops for featuring competitive overall environment. divestiture. day in rates approach average pro capital investment us to our to according million the decline forma price low our a asset showcase This cubic continue and annual of feet performance continues XXX base coupled total production robust NEPA or with base, equivalent systematic per enabling fourth

up CapEx spend the in long flexing Given we guidance in inventory of the is our reflected and developing year this drills. systematic this of we environment new approach, continuation through provide the The program for both XXXX. current are CapEx full refracs runway our

And continue feet refracs Our of guidance drills cubic development of million XXXX on to is equivalent XXX most a to our production expected that, per CapEx the day. full investment of million year new into through range XXX reflects back XXXX. and

that, guidance half year, of rising strip And a the in XQ winter with the weather production includes coincident in second quite impact. expect period. to same Our XXXX ramp realize that following favorably we pricing

a looking position several we that this fourth quarter. In with actively further production factors also multiple in LNG delivered export gas above Gulf attention in to to upstream, strong the of we differentiating quarter takeaway has latest fourth to As content specs. geographic being success, points percentage we outperformance inventory of of XXXX the updates, capacity the strong on we and Barnett and our sensitive injecting forward takeaway Barnett, even Zero. operations markets exit move capital with have Industrial become the we nitrogen gas terminals. XXXX, The starting with they will the CCUS into routes exit couple certain set ample up specifically including project, quarter anticipate advantaged are of increasingly Gulf downstream production, stage our and both caught success, as continued including Corridor development wrap our markets, our an To for Barnett efficiency Coast now building specific XXXX. I lower

November approximately XX% COX had had been tons fidelity injection. Barnett year As operation our high high XXX,XXX in rate and XXXX, of Zero metric has had for project an since XXXX project start-up. of The injected project year-end and through reliability a full incredibly

year XXX,XXX For of injection COX. XXX,XXX we expect to an XXXX, per volume range metric tons of

well in the previously Commission of and the metric reached November to forecasted reporting quarter on permit half U.S. at remains which Cotton in the project, by to XXXX. of Cove in EPA peak COX. or injection year injection third drilling per has XX,XXX first and Cotton the of XXXX. plan Railroad is Texas FID, the Cove II Class rate verification monitoring, first track MRV expected injection tons for was been submitted The Our commence approved XXXX with The

the company of currently natural fourth Ford BKV credits Class another operate will FID submitted and project and approved an the The also on COX tons expected located to MRV attributes NGP from largely Railroad partnerships. by Commission our a over ethanol. and capture own is the us the quarter, plans for associated with The have required Texas first reached year rate sequestration is yet COX. This the approval. environmental midstream of EPA all the forecasted for injection us II way XX,XXX and injection further well XXXX, project's to to processing injection an tons has CCUS plant million permits energy of receive area has X injecting CCUS goal and quarter paves project of announcement tax Shale. the in sight of the of at The receiving gas carbon the gives During and a average all metric permit the BKV accelerates NGP project. achieve facility compression facilities XXXX, initial been approximately and of Eagle line in project of additional with the CCUS our and progress leading and project Ford plan XXQ to end Eagle achieving the subject per operating to of

in and and X Class FIDs achieving administratively that injection confidence and by is Our to VI well X technical X II filed permits permit are this project carbon Class received date, X capture goal evaluation. applications our underpinned complete under filed deemed

XXXX projections we've additional our our the business to our presentation, period. in and beyond investor included the business updated For CCUS over for the for details of internal build-up CCUS information, from showing XXXX

made share to forward results and and I call formula. incredibly piece Power John the to winning JV, we've and BKV's are that, company another our We our are in looking of the our of Jimenez, from beyond. With business over CFO, key CCUS hand progress financials will XXXX to proud

John Jimenez

Thanks, Eric.

BKV the positioned share to Before years. announcement. not to I'm capacity talented accomplished my look they the to later year. And experienced X absolute remiss to acknowledge with that my the on most I and tenure, incredibly forward last advisory serve team of update BKV that retirement recent company's I'm as employees an power honor well to as be the move our successful And last team, process all for an for support confident even year. family take David heights future. this as my results, retirement include to in It's continuing notably, been leadership enjoy operations. will company and the I'm the to for CFO, soon now CFO power I'd IPO we've ready in forward. I proud my greater its an the this is

XX% gigawatt the resulted average fourth was which expected, moderate demand. major the of during the we in quarter for shoulder used The for power shoulder Temple season, X,XXX advantage was conduct characterized hours. downtime As was generation scheduled capacity Taking during this quarter factor and total to by plants the season, period the plants. maintenance,

For X,XXX total the factor the was full year, the average hours. XX% was capacity and gigawatt generation

averaged an spark natural with spread per prices megawatt resulting per per in of power megawatt average $XX.XX MMBtu, costs gas $XX.XX hour $X.XX hour. XQ, of During average

spread hour. about For during million, expense net megawatt and adjusted the $XX.XX share spark EBITDA JV's maintenance per Power proportionate was million. full year, the the $XX average BKV's QX of including loss implied was was $X.X major

year, adjusted full BKV's the and EBITDA. share was $XX million for $XX net the For income of JV's implied million

reminder, a non-consolidated. Beginning As with adjusted our XXXX the we our Power to EBITDAX. BKV's results, JV XQ JV's results within Power reflecting is begin reported portion expect of

renewable guidance approximately the EBITDA impact As combined hedge the in outlook Power pricing is JV the $XXX range of on XXX generation the forward XXXX, we hedged and towards megawatts Based of additional position, JV our gross look million $XXX million. short-term. lower of targeting generation. This adjusted XXXX pricing to current reflects Power with has the a

growth, BKV pricing periods the increased in long-term scarcity to of However, ERCOT still robust demand market. leading anticipates

financial to the rest shifting Now of performance. BKV's

underpins financial heard about You've BKV's framework, strategy. our which

our decline cash flow showcases another invest enabled strong our respond conditions, which us company, of fourth ability low while in below for $XX and drive ability market to CapEx quarter to Our only to for $X our also of is margin growth strategy. Accrued $XX our the the which but the quarter the CCUS. $XX end million expenditures execute This million, evidencing notably the included inventory, million, base is capital our our capital point supporting quarter future in ability continue of range this guidance while the were not development free efficiency. proof against fourth and low to to our disciplined to million

example discipline As serves capital alignment continued Eric a emphasized of as earlier, with managing clear in focus our conditions. to market on capital BKV's commitment expenditures

$XXX capital for expenditures for expenditures million, other. year million year-over-year. approximately capital $XX and represents CCUS accrued reduction million development Our XXXX and a XX% full This were accrued capital $XX including in

$XXX increase in We believe XXXX, and total XQ, $XXX other. Despite business. and that approximately million anticipating For to going in development elevated investment $XXX capital towards positive $XXX million land going CCUS adjusted we and flow an we're will expenditures continue upstream our approximately million delever with free development. the capital generated between and towards million cash

of X.XXx. As balance outstanding leverage $XXX representing ratio of was our million, year-end, RBL a net

as availability our approximately RBL, had Combined also with $XXX cash $XX of million. and of was year-end cash We million. our equivalents the on total liquidity

positive XX%, During adjusted strong free pricing included period cash of during overall development the more adjusted return XXXX, company generated the flow a quarter cash is year. robust with our in This $XX CCUS. result new of stronger million which investments the an free overall flow fourth anticipation into a considering of in going margin to our

$XX approximately net quarter or the had weeks to are our fruition net million $X.XX negative a share derivative stronger by for This We we an After trend loss per $XX or that adjusted diluted already come driven $X.XX was $X of early adjusting had positive seeing the loss losses per a in unrealized of income net in pricing heavily other of quarter XXXX. We share. and of non-recurring diluted losses million. of items, derivative the in income fourth million XXXX. net fourth

position per at XX and average $X.XX at BKV [ average our of are on For year-end hedge hedging non-recurring barrel. weighted to the loss an to PDP of per we at regards CALXX natural unrealized price for like our of XX% XXXX, MMBtu ], other months. NGLs reiterate an strategy, net items, an had after $XX.XX of $XX that full million. In of losses adjusting we have gas income hedged production adjusted for I'd we Based net year and hedge least for hedged

per I'd full guidance BKV have wrap our handful which to current refer press XXXX Chris going you I gas already. average providing guidance, on as over forward, ranges differential that, posted For quarter update year XXXX a back appropriate will it the up. turn is full and and XQ like complete year was things 'XX covered our basis. to in our this release that guidance operating can guidance, of we And to to a and costs and including price unit natural morning. With quarterly

Christopher Kalnin

John, congratulations your countries XX your retirement. travel pursue on to hearing has adventures about to you pleasure and Only forward your and life. next on your this forthcoming path to we you Thank retirement, life fullest your to you, in And chapter look go It during XXX. joy a been alongside as successes and its you. you a wish working more many I to of

I to the open want we key Before for a messages. emphasize few questions, call

of winning marketplace. natural will a we formula capture a offers premium production, power, and through attract the gas which the combination believe First, in BKV carbon

growth Second, business multiple BKV has across lines. all paths for our disciplined

We have and grow organizational the the to that organically growth. with and readiness the sheet to support balance inorganically ability both

performance our ability throughout deliver take to in strong value line shareholder with ready to XXXX Finally, questions. any that, operator, and in the we're aspirations. With quarter our fourth reinforces our

Operator

Instructions] first Citigroup. [Operator from Scott with comes question Gruber Our

Scott Gruber

lot Chris. the of on good power A color Texas market,

excess capacity are centers have facilities. Temple You getting Data at bigger. your

obviously how into curious, your system. ERCOT PPA with think opportunity, provide could to a large I'm a I'm to center plants, sure capacity but the the comes about of the you spare comfortable competitive given data market. power dedicating much not regulators X the you that ERCOT your how play would you capacity PPA? as be So that with interaction kind is would reduce of You a

on kind be comfortable the how PPA? your under can of level comfort you'd around you dedicating So some at shed plants just color capacity much

Christopher Kalnin

Yes, good question. Scott,

what people the across these grid or you of now Yes, call obviously take kind do off around it it's we hot how a at So to PUNs. able appreciate it. ERCOT, look use our private much is are to as if right networks topic

power megawatts. modern cycle we have For combined each about X plants, us, XXX

So to sort think if structure, PPA of want probably you those. on going go to more you're a about XXX than not

able to companies. to center of other that data redundancy for You're one the maintenance, these down keep is a take going running lot as be really important one to

XXX of about as around So these of of use you would sort think sort with network private options limit that is of we'd think when of about we comfortable and what deals. say, right us, I be behind-the-meter kind sort the about upper

Scott Gruber

possible progress agreement building latest the road. here then And what's starting the you think to 'XX? at that you're with front? on look color your is in additional plants down discussions And Do on you mentioned an

So are to focused look Are getting plants? Are opportunities the plants? those you're agreements on on you that separate new you agreement starting for existing pursuing both? at

Christopher Kalnin

existing Yes. the the that as Good imagine, the in have, Scott, for we mean, where pick have I right we of ERCOT that up. you X,XXX the undedicated. We're megawatts are think incredibly on power you unique market to plants, position I can heart state. an in

active and So to as said, forward look those we are discussions, I announcements.

in U.S. going imagine the in months, lot can market. the there's a broader to of XX You XX be and struck ERCOT then next to deals

certainly can think us, We're it. there. it's right We for decarbonize I active.

We have today. those assets

in about see producers gas feel excited us, and market, of momentum and that from we so the the not very other And we just but hearing you're power.

deals. out specific generation want power as new customers we what want pretty see activity seen to I mentioned, very, I the much. very grid. of we kind there XXX-day the study that about substantially taking They timeframe. With last, some the all sort that picking say, to And of regards new there's of actually see assets would doing XX, off So don't in be customers power plant as that's up want. that part that And

and think about both talk types a being strike super is that puts well. near-term and/or And really so being kind to of exciting, of customers kind of term longer after think to position balance see flexible, is strategy I agreements offer to sheet, we kind the them. us in to deals that's kind of great having where having I of some the both And our ability go as actually we when ability BKV compelling

Operator

Nitin comes question Kumar Mizuho from with Our Securities. next

Nitin Kumar

I side. on start the want CCUS to

here. on You you but had a Congratulations mentioned FID that. the potential one for JV,

about As I other. capital guidance, at CCUS of for $XXX the million you're look and guiding

around has a CapEx other Your run quarter. $XX million

expect So more? guidance this what's we guess, should baked I into spending? CCUS for capital

Eric Jacobsen

and expected of $XX within Thank This you Eric. question. the is of that Yes, the category spend. CCUS CCUS is $XXX million that other million, about for

and we'll So FIDs announced. we'll the these more to quite we develop coming. XXXX. start-up further projects develop there'll active And anticipate look for that in in be to hope FIDs be early have starting We

Nitin Kumar

just Got would as on it. And as This today? be XXX% clarification, you're not assuming CCUS CapEx of JV, right? a

Eric Jacobsen

That at the correct. million reported $XX would at Yes, XXX% be CapEx our range.

Nitin Kumar

timing follow-up, here production expected. on see a lot then just in I production to a It are And it. first that want quickly than taxes. reverse lower just Got looks and my that should Is like ask out the taxes impact we quarter?

John Jimenez

that assets. a line. quarter, Those little is on the the million couple delayed bit and in of This finalized those a hence, processes a $X personal than that their through assessed is in picking that for called vary, creating million. of tax. you're once assessed counties in of range production other change terms typically $X pricing percentage the were create the we was of one any those and taxes production other do components, volume that fourth X% the Actually, property seeing which and revenue. X the ad that in valorem. Nitin, value to a variance of assessed in essentially estate the that is values. had true-up the real of taxes which with the or happened taxes have up. although in quarter severance the year-to-date. What the sits percentage income to quarter Thanks, And tax, and the had comes That's around based of part finalizing the didn't are a were of And and It's

assessed But pretty the depressing but stays fluctuate severance quarter. what's ad will on valorem, the that's values the year-to-year, constant. So

David Tameron

Yes.

So it's Dave.

one-time back levels, it's fourth So of just just modeling hit a historical quarter. for was going forward to kind the assume purposes, in that for

Nitin Kumar

I one can sneak if in. And more Sure.

There you're leaning the stronger I here. be a sort obviously as what the upstream the level into gas seeing you're talk much yet. but growth there of bit prices activity? year, upstream current Just why and your look at some guidance side, been of about just you through have Could not the little should on upstream

Eric Jacobsen

Thanks sure. again the Nitin. Yes, there, for follow-up

I in included As we second is our have section that of the half and investment we'll through refracs additional and the months, flow. we'll quality committed and of investment focused and our invest Barnett upping finance we coming to a slide CapEx. investor 'XX XXXX, in see in that we've approach shared look systematic the in deck, on certainly the hard second 'XX. We remaining framework, both before Within would cash inventory, in of the -- new remain at the as prices drills and NEPA as CapEx remain if CapEx have to and free expect disciplined very strong available half in

So that's there.

to half So strong do of for we a a have is think I up over nice additional end in at really us very investing months, we'd should a the the expect And second of back 'XX, setting hard 'XX. the we'll so, 'XX. about look see what coming ramp

David Tameron

sorry, And a capital was roadshow, everybody just make else with consistent current told just is Dave to which and the clear, using guidance our we're you CapEx to are spend. the coming on that we analysts $X.XX get what deck just -- again, sure --

be. need prices as appropriate we'd stay as if So Eric strong, as indicated, revise

Operator

from comes Jiang Betty Barclays. with question next Our

Wei Jiang

market natural on additional to contract. margin retirement. great with about processing see to again additional power in? much you start carbon and offer the your is I this then low Barnett you you how really It's asking And the CCUS volume, Zero? congrats of that want that bake gas contract that start compared How in to your can CCUS once the contract. more economics to John, the rolling momentum once

Christopher Kalnin

question. you question with don't and take the margin power the I'll follow-up why Eric,

Eric Jacobsen

Sure. on the the CCUS business. you Betty, for thank question

we're excited forte third on with FID midstream and announce natural we operator. our with As this reputable very large a the mentioned, gas continuing processing very in space to about

Zero that we've this EBITDA we're the there announcement, with about margin right deal, sort this of realizing shared FID very think ton $XX the NGP in before what range. Barnett can You from at per line comparable, latest margin and

Christopher Kalnin

power. So on the Betty,

decarbonize know, you're going So as to with capture. carbon you the around clock

Our that Difficulty] Barnett at [Technical of XXX,XXX project Zero sort

Wei Jiang

power Chris, think there the off And XXXX, then I can EBITDA guidance a what we cutting for follow-up me, but I we in is light were got it and you I expecting in my came some, a think bit for out versus bit before. follow-up. were on

could bit what's So we assumption? underlying more power just spread? spark a your the on What's assumption maybe get and price color

Christopher Kalnin

Yes.

I the carried and saw megawatts X on the context of we regards into in market to 'XX, give into think hedges just summer about to with XXX that weeks Difficulty] over [Technical did layer 'XX.

X in 'XX, are That's pricing coming again, on amount overall in depressing is particular. of going there's we risk big, scarcity from to near-term. Positives in to then of the Betty, a think projects those market, years contracted online. a big some seeing see peak or I that's if out market. coming prices to there, to where are in the of legacy huge And degree. outlook 'XX which in moderate X we're kind 'XX, ago, the lot builds that hours ERCOT particular, demand That's happening look you the baseload the in

And so I positioned said, there's weather into near-term, ideally years assets we're a we as Difficulty] headwind, with In very the excited the to to market. of the X kind about our bit little for as [Technical X regards of next look being

Operator

with Bert Truist comes next Our Donnes from Securities. question

Bertrand Donnes

spread operators you gas congrats years the of but now see this into might your question, I profitable to now for consolidators higher widens. to strip. higher prices, slipped I and XX I all, willing first they're think you they of thinking of at be the price does Do rest widen conventional share bid-ask the could thoughts maybe Barnett I'm want a say spread? or on can just so sometimes behind that you, economic be bid-ask kind think improved this happy think weren't that looking as you. is maybe have how get John. First they And of category, maybe on the the maybe previously locations then that we some a might those

Christopher Kalnin

Yes, Bert. that's a good question,

and what I I see -- the what price, we expect in in think we think our stabilize more I you is should transactions. we last if shared earnings, this

on about I expectations bringing think strip. it's the together

I some strip years varying like. kind bid-ask pretty has on of of think spreads to couple views the had that last due what significant looks

X I of kind you that think base keep that a to we what triggers the agree the it looks like. can then because sort next, of it, I months, think transaction think of even lot around strip where if reserve in is call for today all can really and on X I

course, expectations your that point we the we But today I bit stabilize, to side. on kind think widen hang are of the again. year a even if higher, expect transactions, that that second half of where prices spread where of around Of if to bid-ask start we then I see we'll quite go particularly see that and gas the plays would

Bertrand Donnes

the And I you. in mean outside? you not imagine Got Barnett

Christopher Kalnin

as of I looking then Barnett, know course that decline our expand to well. portfolio in low always as you Coast access of I Gulf and basins think mean, kind Yes. we're to

Bertrand Donnes

result and if as I business. any expectations, but well pushed newer pointed success? Perfect. talk making thing Could maybe And as lever well upstream then about harder towards outperformed of It maybe second believe on decline. maybe the that a you're which changes as you same the performance one question, the our base you

Eric Jacobsen

new at It's on we did type on shared. for lines pleased the Burt, on of arresting that we're and pleased And the accelerated upstream Yes, expected. well than by driven quarter factors fourth earlier is the and our on quarter as execution fourth that even by and turn-in driven I would ours, industry-leading mostly One a performance wells, very our say TILs. performance in decline with the the trademark in quarter which very base drills curves production. new on largely performance further. And by thanks type new excellence we then drive we our performance which was is to continue with few low already as outperformance side. an wells. or above ability It curve driven was question the we're

of performance the we few I additional We've to mentioned executed with potentially think lessons drills, get lands And even earlier more our and CapEx decision in the how back that into certainly, Bert. and grow better we going pricing and to per then question beyond, we'll expect and the high refracs of coincident about lends to and learnings new carry of applied that next lot new a on that itself with drills to confidence into efficient whether 'XX continue continue we half on XXXX alike. months. the I and in But forward. decision-making how deploy performed in it strip second as our depending we our further that

David Tameron

-- just back we next to issue that up. If there missed. had if and get any the again. any you. free anybody you breaking were cover and take before anybody the Operator, queue has you anything question, happy we Operator, feel to some was to understand clarify back questions, We're in

Operator

great. Okay,

KeyBanc with Rezvan Tim from comes question Capital next Markets. Our

Timothy Rezvan

been My might answered. have question, some of them

as I you, I on had potential the for well JV timing. Chris. So just provided you the specificity appreciated capture as carbon the on one

with the been know maybe and now line is to Can a XXX-day confidence what it's window this on sort you finish consistent along of path? but frenetic getting I of about us comments over you the the middle new So are risks administration, the something about presidential provided that talk year. your kind of XX

Christopher Kalnin

mentioned With appreciate to I in I our getting Yes. I regards Tim. they're a over earlier the feel it, very deal the to with as discussion. Look, it. partner, committed line, regards to optimistic,

question big the folks policy. looks in this out And next to really terms that's are sort in with is sort days. how needed a the navigate know, lot XX the hammering regards to what you scenarios we that of have of to of XXX As of

I big I carbon big optimistic. think it's ag. side, tax oil, supported when incredibly red supported folks in bipartisan are incredibly you into by a on the This agenda. at think It's at look embedded states. where capture It's code. It's the is

there's lot so really And and position. taking is a that BKV momentum a around leadership of

factors lot it's that of number time, is those until nothing give say, would the confidence deal. a with a done I all. At me done you deal know So and with all a that same sharing you

in about and business date, enough and give stand-alone But confident market. are timeline happen. you and delivering way able the our that's we've that's you guided out when the guys a we and going come So we we're think excited to to

the that speaks So think I perspective overall on to matter. our

Timothy Rezvan

still, a that. think CapEx some of potentially those general appreciate guess, quick with just about provided kind And you've carry, to safe I Okay. parameters follow-up. about? general The I terms a are participation of sort XX%

Christopher Kalnin

Yes.

talked we've what with consistent before. it's about think I

Operator

from Our Pickering, next with question Roberts Co. Holt Tudor, & Jacob comes

Jacob Roberts

need perhaps XX. a wondering I I'm I And blanket focusing if FID be looking and we project-by-project Texas, projects? a could agreement follow-up regulatory on look or and in are geologic given map take or the of South think quick we multiple guys you on wanted maybe on where any to Slide the a question. to at aspects And Should partnership there's add for about Tim's down this if JV at just business? about expanding this to basis thinking a kind then potential

Eric Jacobsen

Sure.

I'll Jake, half to on take bet. JV. of second hand Chris question half the You the then that the on and first

referencing the oil are gas perspective. nice United most of Slide States. plants highlighted across gas are very yes, states So those the natural CCUS -- is -- that and an from favorable There the and and thing regulatory XX in we've processing

Texas we're of approved primacy, the has though concentration then indicative large EPA, If Commission. where II X and the our which like received doesn't that's permits. -- been Railroad all of Texas, which nice even regulatory Virginia, plants, already soul fourth permitting you and Wyoming, Class think the are where II recently have had primacy. in primacy a environment. States doesn't at did. success look pleased West just filed, those received of have NGPs of business. Dakota, the NGP And A from with states many we've We've very heart require received the are North states I there already concentrated Class it's Louisiana,

is those far framework of already of nice concentrated some So plants in the then states geology, geology are to yes, as some matters. states. And regulatory the where point those the we've we as question, your look at very had favorable in overall success with

what and have our states. is And geology we many of new the we lot close to is, don't Wyoming, space that concentration source of robust, we very BKV. in North of Part high think like but remember of on -- unique of or plants which build a philosophy, Texas, we infrastructure point many meaning Dakota. that to You'll pour favorable do is source build lot new is a many, ideally case these the right of those underneath Oklahoma, There's in emissions. infrastructure, the

for all, but largely not is. So there

So of again, you think, tons forte next gas and injection we we to grow gas natural the our the as in to million business X JV. CCUS ethanol this to processing one foundations the the of natural itself processing on back of that map years. Chris, of on lends and over few our some

Christopher Kalnin

on Jake, JV, a would the be the platform Yes, deal deal.

capital of there they be the amount that of them, that certain the a kind would platform partner. So would then give of us deploy JV that alongside and capital would to commit

or we're once kind that through you're own. either so your going And obviously you're re-upping on of then

you about So think it. that's should how

that being in capital of as think So our about committed. future that's it the does you deals of kind amount cover all

Jacob Roberts

power my That's helpful. of the things. then side And on one second

to types And an that's ERCOT build for new facility, of about I yes, missed out about I to thinking apologize Just this. Are outside potential things? it. a and if or inorganic opportunity those look the guess, I you willing

Christopher Kalnin

and a good Jake. absolutely It's of question, looking outside willing ERCOT currently well. as are We are Yes.

which you and scales model, about think across the that capture U.S. gas, scales our power, carbon and is As that

BKV active power. So around ability the offer positions, a clock to that involving have customers around believe obviously, decarbonized Texas, lot in of of in but the are our we that Texas. And outside in we're is discussions that that also their interest

BKV addition clearly, getting point. But multiple at data the when sense as you match of PJM going because other a markets active is are their you assets lot would of well. it that and the about very that's have issue market starting think ERCOT we're portfolios. we kind be exactly that great to make is certainly And to how in So in of about to a thinking places, Texas in looking prospective and think growth, center

Jacob Roberts

the part to second that actually of answer the be reminded these investments on Your predicated Would carbon? offset the me ability of question.

Christopher Kalnin

are depends. customers. There It certain

not that Those that part decarbonize. by are decade. the of other just power, market take sort zero can this for highly they me on that going as actually, have call quickly just can the it. There end -- what the commitments You of and can't brown to customers to And imagine their to net get how focused very sort in certain time are megawatts. Those made customers sensitive of to because are power is to less goals they strong of are brown customers decarbonize them ability the be sensitive critical customers it. you on your

looking talking a So accordingly. who it And really about what you're they're sort and price customer for. tale of the is we is of

for that. If and power you're market, you time looking price want to non-decarbonized point there's a for just

looking premium. bigger you're a for different If decarbonized point for around-the-clock power, there's that, a price

these either and who agendas it all can that what you're BKV as And talking they're you want. depends customer imagine, on different So they customers about. offer for pushing really have can

Operator

the I for this turn questions like time. There Chris back floor closing are further would no Kalnin to comments. to over at now

Christopher Kalnin

Well, continuing to had. a the job. excited know Thank of market. deliver promises energy the we're excited for we've future the does about to your we've had to goals interest. the have and as is the today Great. appreciate look winning on listen I John, forward Really going you discussion formula and time. our on about BKV David, our do your and everyone, everyone's and you're quarter congratulations We the year great retirement.

Operator

This concludes today's teleconference.

may Thank this your for at lines You time. participation. your disconnect you

BKV (BKV) 26 Feb 252024 Q4 Earnings call transcript