BKV Corp 2024年度报告

R E F L E C T I N GO N 2 0 2 4 Letter fromthe CEO It’s been a big year. And for BKV, that mightbe the understatement of the year. While much of 2024 was unpredictable, I canconfidently attribute our solid performance—along with the enviable position in which we findourselves—to our values. For too many companies,lofty but empty aspirations are a common currency.Here, we proudly deliver on our promises and havethe receipts to prove it. Chris Kalnin, CEOBKV Corporation Results live hereRobust results from our upstream operations fueled many of our initiatives, including CCUS. Our powerbusiness is gaining momentum as we engage withprospects in the energy-hungry data center sector.Maintaining a strong balance sheet gives us theflexibility to advance our business across all vectors. Did I mention we made our debut on the New YorkStock Exchange last September? With the successof our initial public offering, we opened a newchapter in BKV’s journey—one defined by greatervisibility, accountability and opportunity. Yes, 2024was truly transformational. Combining traditional natural gas production withinnovative decarbonization strategies, BKV isredefining the concept of what an energy company isand does. We believe our four core business lines—Upstream, Midstream, Power and CCUS—togethercreate a scalable and sustainable energy platform.As the world rapidly evolves, we are in a uniqueposition to capitalize. Solid to the coreAt BKV, we believe our “closed loop strategy” is the winning formula—anapproach that connects our natural gasproduction, midstream infrastructure, powergeneration and carbon capture capabilitiesin pursuit of a net-zero future. We arecommitted to vertically integrating portionsof our business to improve commercialoptimization across the full value chain,in turn creating scalable, long-term value.This model is designed to foster our ability toproduce Carbon Sequestered Gas (CSG),enable the sale of this premium carbon-neutral natural gas product and, ultimately,deliver decarbonized power. While we are still in the early phasesof executing this strategy at scale, ourfoundation is strong and strategically aligned.In 2024 we produced approximately788 MMcfe/d with more than 15 yearsof high-quality inventory. Our midstreamfootprint includes 778 miles of pipelineand 65 compressor stations. In power, wehold a 50% ownership stake in BKV-BPPPower, LLC, a joint venture anchored by twocombined-cycle natural gas power plantsin Temple, Texas. These plants boast a totalgeneration capacity of approximately 1,500megawatts, achieving a 57% averagecapacity factor and generating 7,360gigawatt hours of electricity in 2024. BKVsees substantial growth potential in its PowerJV, fueled by macroeconomic trends such asrising power demand in ERCOT, the rapidexpansion of the data center market, and theaccelerated adoption of AI. Upstream continued to serve as a cashengine for BKV in 2024, with particularlystrong fourth-quarter results underscoringour competitive low decline rates,operational efficiency, and robust inventory.We believe these attributes will supportdurable adjusted free cash flow throughout the commodity price cycle—allowing us toreinvest strategically, increase production,and capture favorable pricing. BKV is also securing a leadership positionin the CCUS business, which we believewill play a vital role in decarbonizing theglobal economy. In operation for more thana year, Barnett Zero achieved life-to-datesequestration of approximately 173,325metric tons of CO₂ through December 31,2024. With meaningful progress towardmultiple FIDs and a growing pipeline ofprojects, BKV is solidifying its leadership inthis space. reduction—demonstrating operationalefficiency with agility in responding to marketconditions. By year’s end, we had $436million in total liquidity with a net leverageratio of 0.65x, leaving us well-equippedfor investments and acquisitions in areas ofpromising long-term value such as CCUS andpower generation. Employing our proactive hedging strategy,we expect to hedge at least 50% of ourproduction for the next 24 months to mitigateexposure to commodity price fluctuations.All in all, we’re balancing immediate cash flowwith long-term returns, prioritizing governanceand shareholder engagement while ensuring aresilient foundation for future growth. Financial discipline and shareholderappreciationWith all this going on, BKV still managed to underspend its 2024 capital expenditureguidance—a 28% year-over-year Love the view from hereWe look forward to working with the new administration, which we believe is bullish onnatural gas and domestic power generation.Domestically, carbon capture enjoys strongbipartisan support and our business model alignsperfectly with those sentiments. Economic incentivesfor our initiatives, like the 45Q tax credit enactedby Congress and codified by the IRS, have beensupported across multiple administrations. While we can’t predict the future, we monitor theworld clo