Investing.com -- BKV Corporation (NYSE:BKV) reported better-than-expected first quarter earnings on Thursday, driven by strong performance from its power joint venture, sending shares up 4.3% in after-hours trading.
The oil and gas producer posted adjusted earnings of $0.41 per share for the first quarter of 2025. While the company did not provide a comparable analyst estimate, the results appeared to exceed expectations based on the positive stock reaction.
BKV’s power joint venture with Copenhagen Infrastructure Partners delivered Adjusted EBITDA of $19.6 million in Q1, well above the high end of the company’s guidance range. The strong performance was attributed to colder-than-expected weather conditions that led to favorable pricing.
"Our first quarter results highlight our ability to execute with consistency, to do what we said we would do, and drive results," said David Tameron, BKV’s Chief Financial Officer.
Total (EPA:TTEF) production averaged 761.1 million cubic feet equivalent per day (MMcfe/d) in Q1, exceeding the midpoint of guidance. This was down from 821.1 MMcfe/d in the same quarter last year, primarily due to natural production declines and asset sales.
The company generated $6.1 million in adjusted free cash flow during the quarter. Net debt stood at $184.7 million as of March 31, representing a low net leverage ratio of 0.67x.
For the second quarter, BKV expects production of 775-805 MMcfe/d and capital expenditures of $77-103 million. The company maintained its full-year 2025 production guidance of 755-790 MMcfe/d.
"As we move through the rest of 2025, we will remain focused on delivering solid performance in our upstream business, advancing our differentiated CCUS platform, and capitalizing on the asymmetric upside of our power assets," Tameron added.
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