BKV Corp

Previous wording

Our operating revenues and other income from operations include the activity from the sale of natural gas, NGLs, and oil, midstream revenues, gains and losses on our derivative contracts, marketing revenues, Section 45Q tax credits, related party revenues, and other income from operations. The following table provides information on our revenues and other operating income for the periods presented:

Current wording

Our operating revenues and other income from operations include the activity from the sale of natural gas, NGLs, and oil, midstream revenues, gains and losses on our derivative contracts and on the sale of our business, marketing revenues, Section 45Q tax credits, related party revenues, and other income from operations. The following table provides information on our revenues and other operating income for the periods presented:

Previous wording

Our oil revenues increased by approximately$1.5 million, or 79%, to$3.5 million for the three months ended March 31, 2025, from$1.9 million for the three months ended March 31, 2024. Theincrease was primarily due tohigher production volumes during thethree months ended March 31, 2025, which accounted for a $1.7 million increase in period-over-period revenues(calculated as the change in period-to-period volumes times the prior period average price). Theincrease was offset bythe impactof commodity price decreases, excluding the effect of derivative settlements, which accounted for a $0.2 million decrease in period-over-period revenues(calculated as the change in the period-to-period average price times current period production volumes).

Current wording

Our oil revenues increased by approximately$0.7 million, or 41%, to$2.5 million for the three months ended June 30, 2025, from$1.8 million for the three months ended June 30, 2024. Theincrease was primarily due tohigher production volumes during thethree months ended June 30, 2025, which accounted for a $1.5 million increase in period-over-period revenues(calculated as the change in period-to-period volumes times the prior period average price). Theincrease was offset bythe impactof commodity price decreases, excluding the effect of derivative settlements, which accounted for a $0.8 million decrease in period-over-period revenues(calculated as the change in the period-to-period average price times current period production volumes).

Previous wording

For the three months ended March 31, 2025, we had net realized and unrealized losses on derivative contracts of$152.2 million compared to net realized and unrealized losses on derivative contracts of$3.7 million for the three months ended March 31, 2024. Theincreased losses for thethree months ended March 31, 2025 were from our open derivative positions, which were in more of an unrealized loss position of $134.0 million compared to thethree months ended March 31, 2024 of$40.1 million. The increased losses on our derivative contracts were also due to realized losses of $18.2 million compared to realized gains of$36.5 million due to higher natural gas prices during this period compared to the same period in the prior year.

Current wording

For the three months ended June 30, 2025, we had net realized and unrealized gains on derivative contracts of$112.2 million compared to net realized and unrealized losses on derivative contracts of$7.5 million for the three months ended June 30, 2024. Theincrease in gains for thethree months ended June 30, 2025 were from our open derivative positions, which were in more of an unrealized gain position of $102.9 million compared to thethree months ended June 30, 2024, which was in an unrealized loss position of$39.0 million. The increase in unrealized gains during the current period was due to significant short-term declines in natural gas prices, and in the same period in the prior year, there were more contracts in a liability position. The increased gains on our derivative contracts were offset by a decrease in realized gains of $22.2 million to$9.3 million for thethree months ended June 30, 2025 compared to realized gains of$31.5 million in the same period in 2024, which weredue to higher natural gas prices in the current period compared to the same period in the prior year.

Previous wording

Our marketing revenues increased by approximately $1.6 million, or 32% to $6.5 million for thethree months ended March 31, 2025 from $4.9 million for thethree months ended March 31, 2024. Our marketing revenues are derived under our marketing agreement with a third party pursuant to which we receive a fixed percentage of all net income realized in the resale of our and other producers’ hydrocarbons. Theincrease in marketing revenues during thethree months ended March 31, 2025 was primarily due to a higher pricing environment compared to the same period in 2024.

Current wording

Our marketing revenues decreased by approximately $0.7 million, or 33% to $1.4 million for thethree months ended June 30, 2025 from $2.0 million for thethree months ended June 30, 2024. Our marketing revenues are derived under our marketing agreement with a third party pursuant to which we receive a fixed percentage of all net income realized in the resale of our and other producers’ hydrocarbons. Thedecrease in marketing revenues during thethree months ended June 30, 2025 was primarily due to a lower peak pricing environment compared to the same period in 2024.

Previous wording

Taxes other than income were $10.2 million, or $0.15 per Mcfe, for the three months ended March 31, 2025, which was a decrease of approximately $1.1 million, or 10%, from $11.4 million, or $0.15 per Mcfe, for the three months ended March 31, 2024. The decrease in taxes other than income during the three months ended March 31, 2025 compared to 2024 was due to decreases in ad valorem and property taxes associated with our operations in the Barnett and NEPA of $4.9 million and $0.2 million, respectively. This was offset by production taxes of $4.0 million in the Barnett. Certain ad valorem and production taxes are not applicable to our NEPA properties.

Current wording

Taxes other than income were $13.4 million, or $0.18 per Mcfe, for the three months ended June 30, 2025, which was an increase of approximately $3.6 million, or 36%, from $9.8 million, or $0.14 per Mcfe, for the three months ended June 30, 2024. The increase in taxes other than income during the three months ended June 30, 2025 compared to 2024 was due to increases in production taxes of $4.2 million in the Barnett. This was offset by decreases in ad valorem and property taxes associated with our operations in the Barnett and NEPA of $0.5 million and $0.1 million, respectively. Certain ad valorem and production taxes are not applicable to our NEPA properties.

Previous wording

Depreciation, depletion, amortization, and accretion was $40.0 million, or $0.58 per Mcfe, for thethree months ended March 31, 2025, which was a decrease of approximately $12.2 million, or 23%, from $52.2 million, or $0.70 per Mcfe, for thethree months ended March 31, 2024. The decrease in depreciation, depletion, amortization, and accretion during thethree months ended March 31, 2025 compared to thethree months ended March 31, 2024 was primarily due to a depletion rate adjustment in 2025.

Current wording

Depreciation, depletion, amortization, and accretion was $38.0 million, or $0.52 per Mcfe, for thethree months ended June 30, 2025, which was a decrease of approximately $21.3 million, or 36%, from $59.3 million, or $0.82 per Mcfe, for thethree months ended June 30, 2024. The decrease in depreciation, depletion, amortization, and accretion during thethree months ended June 30, 2025 compared to thethree months ended June 30, 2024 was primarily due to a depletion rate adjustment in 2025, which was driven by higher reserves.

Previous wording

General and administrative expenses were $25.3 million, or $0.37 per Mcfe, for the three months ended March 31, 2025, which was an increase of approximately $4.6 million, or 22%, from $20.6 million, or $0.28 per Mcfe, for the three months ended March 31, 2024. The increase in general and administrative expenses during the three months ended March 31, 2025 compared to the three months ended March 31, 2024 was due to increases from Company-wide growth initiatives of $2.6 million in employee bonuses, contract labor, employee-based compensation, and employee expenses, and $2.0 million in consulting and information technology-related expenses.

Current wording

General and administrative expenses were $30.5 million, or $0.41 per Mcfe, for the three months ended June 30, 2025, which was an increase of approximately $11.2 million, or 58%, from $19.3 million, or $0.27 per Mcfe, for the three months ended June 30, 2024. The increase in general and administrative expenses during the three months ended June 30, 2025 compared to the three months ended June 30, 2024 was due to increases from Company-wide growth initiatives of $6.7 million in contract labor, employee-based compensation, and employee expenses, $3.0 million in consulting expenses, and $1.8 million in severance costs, offset by a decrease of $0.3 million in information technology-related expenses.

Previous wording

Gains on contingent consideration liabilities. For the three months ended March 31, 2024, we recognized a gain on contingent consideration liabilities accruing as an earnout obligation under the purchase agreements executed in connection with the Devon Barnett Acquisition and the Exxon Barnett Acquisition. The gain on contingent consideration liabilities was$6.6 million for the three months ended March 31, 2024, and consisted of gains of$4.6 million and$2.0 million from the Devon Barnett Acquisition and the Exxon Barnett Acquisition, respectively. The contingent considerations under these purchase agreements expired in 2024.

Current wording

Gains (losses) on contingent consideration liabilities. For the three months ended June 30, 2024, we recognized a loss on contingent consideration liabilities accruing as an earnout obligation under the purchase agreements executed in connection with the Devon Barnett Acquisition and the Exxon Barnett Acquisition. The loss on contingent consideration liabilities was$0.5 million for the three months ended June 30, 2024, and consisted of a loss of$0.7 million and a gain of$0.2 million from the Devon Barnett Acquisition and the Exxon Barnett Acquisition, respectively. The contingent considerations under these purchase agreements expired in 2024.

Previous wording

Losses from equity affiliate. Losses from our equity affiliate were $9.6 million for thethree months ended March 31, 2025, which was a change of $1.9 million, from $7.7 million compared to thesame period in 2024. Losses from our equity affiliate are related to our investment in, and our proportionate share in the income or losses of the BKV-BPP Power Joint Venture.

Current wording

Earnings (losses) from equity affiliate. Earnings from our equity affiliate were $9.1 million for thethree months ended June 30, 2025, which was a change of $24.3 million, from $15.3 million oflosses from our equity affiliate during thethree months ended June 30, 2024. Earnings (losses) from our equity affiliate are related to our investment in, and our proportionate share in the income or losses of the BKV-BPP Power Joint Venture.

Previous wording

Interest expense. Interest expense was$5.1 million for thethree months ended March 31, 2025, which was a decrease of$11.0 million, from$16.1 million for the three months ended March 31, 2024. The decrease in interest expense during thethree months ended March 31, 2025 was primarily due to lower interest rates incurred during thethree months ended March 31, 2025 on our RBL Credit Facility, which we entered into on June 11, 2024, compared to the interest rates on our Term Loan Credit Agreement and Revolving Credit Facilities during thethree months ended March 31, 2024.

Current wording

Interest expense. Interest expense was$5.5 million for thethree months ended June 30, 2025, which was a decrease of$9.7 million, from$15.2 million for the three months ended June 30, 2024. The decrease in interest expense during thethree months ended June 30, 2025 was primarily due to lower interest rates incurred during thethree months ended June 30, 2025 on our RBL Credit Facility, which we entered into on June 11, 2024, compared to the interest rates on our Term Loan Credit Agreement and Revolving Credit Facilities during thethree months ended June 30, 2024.

Previous wording

Interest expense, related party. Interest expense from our related party borrowings with BNAC was$2.0 million for thethree months ended March 31, 2024, whichwas paid down in June 2024.

Current wording

Interest expense, related party. Interest expense from our related party borrowings with BNAC was$1.9 million for thethree months ended June 30, 2024, whichwas paid down in June 2024.

Previous wording

Interest income. Interest income was$0.1 million for the three months ended March 31, 2025, which was a decrease of $1.5 million, compared to $1.6 million for the same period in 2024. The decrease was primarily due to the cessation of interest earned on restricted cash following the repayment of the Term Loan Agreement in June 2024, which had previously funded the debt service reserve account.

Current wording

Interest income. Interest income was$0.2 million for the three months ended June 30, 2025, which was a decrease of $1.6 million, from $1.8 million for the three months ended June 30, 2024. The decrease was due to the cessation of interest earned on

Previous wording

Income tax benefit. For the three months ended March 31, 2025, we had an income tax benefit of $29.2 million, which was an increase of $16.2 million, from a $13.0 million in income tax benefit for the three months ended March 31, 2024. During the three months ended March 31, 2025, the increase in income tax benefit was due to higher net losses and excess tax benefits relating to the vesting of restricted shares.

Current wording

Income tax benefit (expense). For the three months ended June 30, 2025, we had an income tax expense of $27.9 million, which was a change of $56.3 million, from a $28.4 million in income tax benefit for the three months ended June 30, 2024. The period-over period change was primarily due to a pre-tax income for the three months ended June 30, 2025, compared to a pre-tax loss during the three months ended June 30, 2024.

Previous wording

Our natural gas revenues increased by approximately$71.6 million, or 74%, to$168.0 million for the three months ended March 31, 2025, from$96.3 million for the three months ended March 31, 2024. The impact of commodity price increases, excluding the effect of derivative settlements, provided an$80.6 million increase in period-over-period revenues(calculated as the change in the period-to-period average price times current period production volumes). Theincrease was offset by lower production volumes during the three months ended March 31, 2025, primarily from the assets in the Barnett and from the sale of Chaffee and certain non-operated assets held by Chelsea in June 2024, which collectively accounted for an$8.9 million decreasein period-over-period revenues(calculated as the change in period-to-period volumes times the prior period average price).

Current wording

Our natural gas revenues increased by approximately $144.4 million, or 81% to $323.5 million for the six months ended June 30, 2025, from $179.2 million for the six months ended June 30, 2024. The impact of commodity price increases, excluding the effect of derivative settlements, provided a $151.0 million increase in period-over-period revenues(calculated as the change in the period-to-period average price times current period production volumes). Theincrease was slightly offset by lower production volumes during the six months ended June 30, 2025, primarily from thesale of Chaffee and certain non-operated assets held by Chelsea, for a$6.6 million decrease in period-over-period revenues(calculated as the change in period-to-period volumes times the prior period average price).

Previous wording

Our midstream revenues decreased by approximately $1.4 million, or 33%, to $2.8 million for thethree months ended March 31, 2025, from $4.1 million for thethree months ended March 31, 2024. This decrease was primarily due to the divestiture of Chaffee of $1.2 million as we sold our Repsol Midstream Interest in connection with this sale. The remainder of the decrease was due to changes in deal structures that reduced midstream transportation revenue while increasing third party gas sales.

Current wording

Our midstream revenues decreased by approximately $2.0 million, or 27%to $5.5 million for the six months ended June 30, 2025, from $7.5 million for the six months ended June 30, 2024. This decrease was primarily due to the divestiture of Chaffee of $2.0 million as we sold our Repsol Midstream Interest in connection with this sale.

Previous wording

We generated $3.3 million in Section 45Q tax credits during the three months ended March 31, 2025 related to CO 2 waste sequestration activities under our Barnett Zero Project compared to $2.3 million during the three months ended March 31, 2024. The increase period over period was due to more CO 2 waste sequestered in 2025 compared to the prior period.

Current wording

We generated $5.9 million in Section 45Q tax credits during thesix months ended June 30, 2025 related to CO 2 waste sequestration activities under our Barnett Zero Project, compared to$6.0 million during the six months ended June 30, 2024. The decrease period-over-period was due to less CO 2 waste sequestered in 2025 compared to the prior period from operational maintenance in April and May 2025.

Previous wording

Other revenues includes the gain (loss) on the sale of assets and the sale of third-party natural gas. Other revenues were $1.9 million for the three months ended March 31, 2025 compared to $1.4 million for the three months ended March 31, 2024. The period-over-period increase was primarily due to an increase in third party gas sales of $2.5 million and an increase in the gain on sale of assets of $0.4 million, offset by the impairment on our asset held for sale of $2.4 million.

Current wording

Other revenues includes the impairment on the asset held for and the sale of third-party natural gas. Other revenues were $4.9 million for the six months ended June 30, 2025 compared to $3.1 million for the six months ended June 30, 2024. The period-over-period increase was due to an increase in third-party gas of $3.8 million, and an increase in the gain on sale of assets of $0.4 million, offset by the impairment on the asset held for sale of $2.4 million.

Previous wording

Lease operating and workover expenses were $35.1 million, or $0.51 per Mcfe, for thethree months ended March 31, 2025, which was an increase of approximately $0.6 million from $34.5 million, or $0.46 per Mcfe, for thethree months ended March 31, 2024. Theincrease in lease operating expenses during thethree months ended March 31, 2025 compared to the same period in 2024 was primarily driven by a credit received of $1.5 million for a water sharing agreement during the three months ended March 31, 2024. The increase was also due to increases in repairs and maintenance and timing of fees of $1.0 million and vehicle expense of $0.4 million during the three months ended March 31, 2025. This was offset by $1.4 million of less workover and operating activity due to winter storms and $1.0 million decreases in compression and water expenses due to well shut-ins during the three months ended March 31, 2025.

Current wording

Lease operating and workover expenses were $69.2 million, or $0.49 per Mcfe, for the six months ended June 30, 2025, which was an increase of approximately $0.6 million, or 1%, from $68.6 million, or $0.46 per Mcfe, for the six months ended June 30, 2024. The increase in lease operating andworkover expenses during the six months ended June 30, 2025 compared to the same period in 2024 was due to our Pad of the Future activity in 2025 of $1.6 million and vehicle expenses of $0.7 million. In addition, during thesix months ended June 30, 2024, we received a credit of $1.5 million for a water sharing agreement that related to 2023. This was offset by decreases in compression and water expenses of $1.8 million and materials and labor of $0.9 million, which were due to well shut ins and increased storms in the first quarter of 2025 resulting in a decrease in lease operating projects, and timing of inspection fees of $0.4 million.

Previous wording

Other operating expenses were $6.2 million, or $0.09 per Mcfe, for thethree months ended March 31, 2025, which was a decrease of approximately $2.3 million, or 27%, from $8.6 million, or $0.11 per Mcfe, for thethree months ended March 31, 2024. The decrease in other operating expenses during thethree months ended March 31, 2025 compared to the same period in 2024 was primarily due to $5.0 million of accrued waste emissions costs established by the Inflation Reduction Act recognized during the three months ended March 31, 2024. This was offset by an increase of $1.6 million in third-party natural gas purchases due to increased volumes and increased natural gas prices during the three months ended March 31, 2025 compared to the same period in 2024.

Current wording

Other operating expenses were $20.7 million, or $0.15 per Mcfe, for the six months ended June 30, 2025, which was an increase of approximately $9.4 million, or 84%, from $11.3 million, or 0.08 per Mcfe, for the six months ended June 30, 2024. The increase in other operating expenses during the six months ended June 30, 2025 compared to the same period in 2024 was due to an increase of $3.7 million in gas purchases due to increased volumes and natural gas prices, $3.1 million of costs related to the CCUS equity raise, $2.3 million in CCUS transaction fees,$2.1 million of a deficiency payment incurred under our minimum volume commitments on our midstream pipeline,$1.5 million in project write-offs, and $0.8 million in legal settlements. This was offset by $5.0 of accrued waste emissions costs established by the Inflation Reduction Act recognized during thesix months ended June 30, 2024, which were not accrued in 2025 due to the impacts of the new Trump Administration.

Previous wording

Our primary needs for cash are to fund our upstream development, midstream, power, and CCUS activities, fund operations and capital expenditures, acquisitions, and asset retirement obligations, cover any debt interest or minimum volume commitment obligations, pay down debt, and return capital to stockholders. Our primary use of cash during the three months ended March 31, 2025 and 2024 was to fund the development of our natural gas properties.

Current wording

Our primary needs for cash are to fund our upstream development, midstream, power, and CCUS activities, fund operations and capital expenditures, acquisitions, and asset retirement obligations, cover any debt interest or minimum volume commitment obligations, pay down debt, and return capital to stockholders. Our primary use of cash during the six months ended June 30, 2025 and 2024 was to fund the development of our natural gas properties.

Previous wording

During thethree months ended March 31, 2025 and 2024, cash paid for capital expenditures was $57.4 million and $19.9 million, respectively. Our current estimated budget for accrued capital expenditures in 2025 is approximately $320 million to $380 million. Capital expenditures for our operated properties are largely discretionary and within our control. We could choose to defer a portion of these planned capital expenditures depending on a variety of factors, including, but not limited to, the success of our drilling activities, prevailing and anticipated prices for natural gas and NGLs, the availability of equipment, infrastructure and capital, the receipt and timing of required regulatory permits and approvals, seasonal conditions, drilling and acquisition costs, and the level of participation by other interest owners. We will continue to monitor commodity prices and overall market conditions and can adjust our rig cadence up or down in response to changes in commodity prices and overall market conditions.

Current wording

During thesix months ended June 30, 2025 and 2024, cash paid for capital expenditures was $123.7 million and $31.6 million, respectively. Our current estimated budget for accrued capital expenditures in 2025 is approximately $290 million to $350 million. Capital expenditures for our operated properties are largely discretionary and within our control. We could choose to defer a portion of these planned capital expenditures depending on a variety of factors, including, but not limited to, the success of our drilling activities, prevailing and anticipated prices for natural gas and NGLs, the availability of equipment, infrastructure and capital, the receipt and timing of required regulatory permits and approvals, seasonal conditions, drilling and acquisition costs, and the level of participation by other interest owners. We will continue to monitor commodity prices and overall market conditions and can adjust our rig cadence up or down in response to changes in commodity prices and overall market conditions.

Previous wording

Historically, our primary sources of capital and liquidity have consisted of internally generated cash flows from operations, together with loans and capital contributions from our majority stockholder, BNAC. We also enter into financial instruments to reduce the impact of commodity price volatility and provide a level of certainty and stability around cash flows. We currently believe that our cash flows from operations, cash on hand, borrowings under our RBL Credit Agreement, and our commodity hedges in place will provide sufficient liquidity to fund our operations and our capital expenditures into 2025, excluding our CCUS business. We expect to fund up to 50% of our CCUS business from a variety of external sources, which may include joint ventures, project-based equity partnerships, debt financing, and federal grants with the remaining capital needs being funded with cash flows from operations.

Current wording

Historically, our primary sources of capital and liquidity have consisted of internally generated cash flows from operations, together with loans and capital contributions from our majority stockholder, BNAC. We also enter into financial instruments to reduce the impact of commodity price volatility and provide a level of certainty and stability around cash flows. We currently believe that our cash flows from operations, cash on hand, borrowings under our RBL Credit Agreement, and our commodity hedges in place will provide sufficient liquidity to fund our operations and our capital expenditures for the remainder of 2025, excluding our CCUS business. We expect to fund the majority of our CCUS business from a variety of external sources, which may include contributions from our joint venture with the Class B Member, project-based equity partnerships, debt financing, and federal grants, with the remaining capital needs being funded with cash flows from operations.

Previous wording

The following table summarizes our cash flows for the three months ended March 31, 2025 and 2024 (in thousands):

Current wording

The following table summarizes our cash flows for the six months ended June 30, 2025 and 2024 (in thousands):

Previous wording

Cash flows provided by operating activities. Net cash provided by operating activities was $22.6 million for the three months ended March 31, 2025, compared to $19.3 million for thethree months ended March 31, 2024. Net cash provided by operating activities increased during the three months ended March 31, 2025 compared to thethree months ended March 31, 2024 due to a $24.7 million increase in income from operations (excluding net unrealized gains (losses), depreciation, depletion, amortization, and accretion, equity-based compensation, and impairment of asset held for sale), resulting from higher natural gas prices compared to 2024, and a $20.4 million increase in working capital. These increases were offset by cash received in January 2024 for the sale of call options of $23.5 million, cash paid in February 2025 for the purchase of put options of $16.2 million, a decrease in interest income of $1.5 million, and a $0.5 million increase in cash paid for interest.

Current wording

Cash flows provided by operating activities. Net cash provided by operating activities was $98.8 million for the six months ended June 30, 2025, compared to $9.8 million for thesix months ended June 30, 2024. Net cash provided by operating activities increased during the six months ended June 30, 2025 compared to thesix months ended June 30, 2024 due to a $48.3 million increase in working capital, a $43.9 million increase in income from operations (excluding net unrealized gains (losses), depreciation, depletion, amortization, and accretion, equity-based compensation, and impairment of asset held for sale), resulting from higher natural gas prices in 2025 compared to 2024, a $35.4 million decrease in cash paid for interest, and $3.9 million in transaction costs paid in June 2024. These increases were offset by cash received in January 2024 for the sale of call options of $23.5 million, cash paid in February 2025 for the purchase of put options of $16.2 million, and lower interest income of $3.1 million.

Previous wording

Cash flows used in investing activities. Net cash used in investing activities was $56.0 million for the three months ended March 31, 2025, compared to net cash used in investing activities of $19.9 million for the three months ended March 31, 2024. The change was due to the increase of $39.7 million of capital expenditures (excluding CCUS activities) for the three months ended March 31, 2025 compared to the three months ended March 31, 2024. This was offset by the decrease of $2.2 million of expenditures on CCUS activities over the same period and additional cash proceeds on the sale of assets of $1.3 million.

Current wording

Cash flows provided by (used in) investing activities. Net cash used in investing activities was $129.7 million for the six months ended June 30, 2025, compared to net cash provided by investing activities of $101.6 million for the six months ended June 30, 2024. The change was due to the increase of $95.1 million of capital expenditures (excluding CCUS activities) and a deposit on fixed asset purchase of $7.5 million for the six months ended June 30, 2025 compared to the six months ended June 30, 2024. This was offset by the decrease of $3.0 million of expenditures on CCUS activities over the same period. Contributing to the cash inflow during the six months ended June 30, 2024 were the proceeds from the sale of Chaffee and Chelsea of $106.7 million and $25.0 million, respectively.

Previous wording

The following table presents our capital expenditures (excluding leasehold costs and acquisitions) on an accrual basis for thethree months ended March 31, 2025 and 2024 and reconciles to cash flows used for capital expenditures in the condensed consolidated statements of cash flows.

Current wording

The following table presents our capital expenditures (excluding leasehold costs and acquisitions) on an accrual basis for thesix months ended June 30, 2025 and 2024 and reconciles to cash flows used for capital expenditures in the condensed consolidated statements of cash flows.

Previous wording

Cash flows provided by (used in) financing activities. Net cash provided by financing activities was$33.8 million for thethree months ended March 31, 2025, which consisted of net borrowings on debt of $35.0 million, and was offset by payments of $1.2 million for taxes related to net share settlement of restricted stock units. For thethree months ended March 31, 2024, net cash used infinancing activities was$1.6 million, which was due to net payments on debt of $1.0 million and payments of deferred offering costs of $0.6 million.

Current wording

Cash flows provided by (used in) financing activities. Net cash provided by financing activities was$37.4 million for thesix months ended June 30, 2025, which consisted of net borrowings on debt of $35.0 million and cash contributions from noncontrolling interest of $4.4 million, which was offset by payments of $1.2 million for taxes related to net share settlement of restricted stock units and $0.7 million of debt issuance costs. For thesix months ended June 30, 2024, cash outflows were due to net payments on debt of $248.0 million, debt extinguishment costs of $10.2 million for the early retirement of the Term Loan Credit Agreement and the Revolving Credit Agreement, and $8.1 million of debt issuance costs on the RBL Credit Agreement.

Previous wording

As of March 31, 2025, we had cash and cash equivalents of$15.3 million, compared to $14.9 million of cash and cash equivalents as of December 31, 2024. Our net working capital deficit was $148.5 million as of March 31, 2025, compared to adeficit of $71.6 million as of December 31, 2024.

Current wording

As of June 30, 2025, we had cash and cash equivalents of$21.4 million, compared to $14.9 million of cash and cash equivalents as of December 31, 2024. Our net working capital deficit was $76.3 million as of June 30, 2025, compared to adeficit of $71.6 million as of December 31, 2024.

Previous wording

On June 11, 2024, BKV Corporation, as guarantor, and BKV Upstream Midstream, as borrower, entered into the RBL Credit Agreement with Citibank, N.A., as the administrative agent, and the financial institutions party thereto. The RBL Credit Agreement includes a maximum credit commitment of $1.5 billion. As of March 31, 2025, the RBL Credit Agreement had a borrowing base of $750.0 million, an elected commitment of $600.0 million, and the ability to issue up to $40.0 million in letters of credit. The loans may be borrowed, repaid, and reborrowed during the term of the RBL Credit Agreement. The RBL Credit Agreement will mature on June 12, 2028. The obligations under the RBL Credit Agreement are secured and guaranteed on a secured basis by BKV Corporation, BKV Upstream Midstream, and all of BKV Upstream Midstream’s current and future material restricted subsidiaries. Loans under the RBL Credit Agreement bear interest at one, three, or six-month term SOFR or ABR, as applicable, plus a credit spread adjustment of 0.10% for SOFR borrowings, plus an applicable margin per annum. Interest is payable on the last day of each interest period and at maturity. We are obligated to pay certain fees to the lenders and administrative agent under the RBL Credit Agreement, including commitment fees on the average daily amount of the undrawn portion of the commitments. On May 6, 2025, with the unanimous consent of our credit facility lenders, we amended the RBL Credit Agreement to, among other things, increase the borrowing base by $100.0 million and the elected commitment by $65.0 million. This amendment constituted the semiannual borrowing base redetermination. As of May 9, 2025, $230.0 million of revolving borrowings and $14.1 million of letters of credit were outstanding under the RBL Credit Agreement, leaving $420.9 million of available capacity thereunder for future borrowings and letters of credit.

Current wording

On June 11, 2024, BKV Corporation, as guarantor, and BKV Upstream Midstream, as borrower, entered into the RBL Credit Agreement with Citibank, N.A., as the administrative agent, and the financial institutions party thereto. The RBL Credit Agreement includes a maximum credit commitment of $1.5 billion. On May 6, 2025, with the unanimous consent of our credit facility lenders, we amended the RBL Credit Agreement to, among other things, increase the borrowing base by $100.0 million and the elected commitment by $65.0 million. This amendment constituted the semiannual borrowing base redetermination. As of June 30, 2025, the RBL Credit Agreement had a borrowing base of $850.0 million, an elected commitment of $665.0 million, and the ability to issue up to $40.0 million in letters of credit. The loans may be borrowed, repaid, and reborrowed during the term of the RBL Credit Agreement. The RBL Credit Agreement will mature on June 12, 2028. The obligations under the RBL Credit Agreement are secured and guaranteed on a secured basis by BKV Upstream Midstream and all of BKV Upstream Midstream’s current and future material restricted subsidiaries. Loans under the RBL Credit Agreement bear interest at one, three, or six-month term SOFR or ABR, as applicable, plus a credit spread adjustment of 0.10% for SOFR borrowings, plus an applicable margin per annum. Interest is payable on the last day of each interest period and at maturity. We are obligated to pay certain fees to the lenders and administrative agent under the RBL Credit Agreement, including commitment fees on the average daily amount of the

Previous wording

The RBL Credit Agreement contains various restrictive covenants that, among other things, limit BKV Upstream Midstream’s ability and the ability of its restricted subsidiaries to, subject to certain exceptions: (i) incur indebtedness; (ii) incur liens; (iii) acquire or merge with any other company; (iv) sell assets or equity interests of their subsidiaries; (v) make investments; (vi) pay dividends or make other restricted payments; (vii) change their lines of business; (viii) enter into certain hedge

Current wording

The RBL Credit Agreement contains various restrictive covenants that, among other things, limit BKV Upstream Midstream’s ability and the ability of its restricted subsidiaries to, subject to certain exceptions: (i) incur indebtedness; (ii) incur liens; (iii) acquire or merge with any other company; (iv) sell assets or equity interests of their subsidiaries; (v) make investments; (vi) pay dividends or make other restricted payments; (vii) change their lines of business; (viii) enter into certain hedge agreements; (ix) enter into transactions with affiliates; (x) own any subsidiary that is not organized in the United States; (xi) prepay any unsecured senior or subordinated indebtedness; (xii) engage in certain marketing activities; and (xiii) allow, on a net basis, gas imbalances, take-or-pay or other prepayments with respect to their proved oil and gas properties.

Previous wording

The RBL Credit Agreement generally includes customary events of default for a reserve-based credit facility, some of which allow for an opportunity to cure. If an event of default relating to bankruptcy or other insolvency events occurs, the revolving loans will immediately become due and payable; if any other event of default exists, the administrative agent or the requisite lenders will be permitted to accelerate the maturity of the revolving loans. The RBL Credit Agreement is secured by substantially all of the assets of BKV Corporation, BKV Upstream Midstream and its restricted subsidiaries that are guarantors, and upon an event of default the agent under the RBL Credit Agreement could commence foreclosure proceedings.

Current wording

The RBL Credit Agreement generally includes customary events of default for a reserve-based credit facility, some of which allow for an opportunity to cure. If an event of default relating to bankruptcy or other insolvency events occurs, the revolving loans will immediately become due and payable; if any other event of default exists, the administrative agent or the requisite lenders will be permitted to accelerate the maturity of the revolving loans. The RBL Credit Agreement is secured by substantially all of BKV Upstream Midstream's assets and those of the guarantors, and upon an event of default the agent under the RBL Credit Agreement could commence foreclosure proceedings.

Previous wording

Under the terms of the BKV-BPP Power LLC Agreement and BKV-BPP Cotton Cove LLC Agreement, we do not have the ability to unilaterally cause BKV-BPP Power or BKV-BPP Cotton Cove to make distributions. During the three months ended March 31, 2025 and 2024, no distributions were made by BKV-BPP Power or BKV-BPP Cotton Cove. In addition, we may be required to make additional capital contributions to one or both joint ventures to fund items approved in their respective annual budgets or other matters approved by their respective boards. Such additional capital contributions, which are not subject to any limit on the potential amount required, would reduce the amount of cash otherwise available to us. However, any additional capital contributionsto BKV-BPP Power must be approved by a majority of BKV-BPP Power's ten member board of managers, five of whom are appointed by us and five of whom are appointed by BPPUS. Similarly, any additional capital contributions to BKV-BPP Cotton Cove must receive the unanimous approval of BKV-BPP Cotton Cove, LLC's six member board of managers, four of whom are appointed by us and two of whom are appointed by BPPUS.

Current wording

Under the terms of the BKV-BPP Power LLC Agreement and BKV-BPP Cotton Cove LLC Agreement, we do not have the ability to unilaterally cause BKV-BPP Power or BKV-BPP Cotton Cove to make distributions. During the six months ended June 30, 2025 and 2024, no distributions were made by BKV-BPP Power or BKV-BPP Cotton Cove. In addition, we may be required to make additional capital contributions to one or both joint ventures to fund items approved in their respective annual budgets or other matters approved by their respective boards. Such additional capital contributions, which are not subject to any limit on the potential amount required, would reduce the amount of cash otherwise available to us. However, any additional capital contributionsto BKV-BPP Power must be approved by a majority of BKV-BPP Power's ten member board of managers, five of whom are appointed by us and five of whom are appointed by BPPUS. Similarly, any additional capital contributions to BKV-BPP Cotton Cove must receive the unanimous approval of BKV-BPP Cotton Cove, LLC's six member board of managers, four of whom are appointed by us and two of whom are appointed by BPPUS.

Previous wording

We may enter into off-balance sheet arrangements and transactions that could give rise to material off-balance sheet arrangements. As of March 31, 2025, our material off-balance sheet arrangements and transactions included volume commitments of $304.7 million and letters of credit of $14.1 million against the RBL Credit Agreement. For further information regarding these arrangements, see “Note 10 - Commitments and Contingencies” to our condensed consolidated financial statements and under “—Loan Agreements and Credit Facilities — RBL Credit Agreement.”

Current wording

We may enter into off-balance sheet arrangements and transactions that could give rise to material off-balance sheet arrangements. As of June 30, 2025, our material off-balance sheet arrangements and transactions included volume commitments of $287.6 million and letters of credit of $14.1 million against the RBL Credit Agreement. For further information regarding these arrangements, see Note 11 - Commitments and Contingencies to our condensed consolidated financial statements and under “—Loan Agreements and Credit Facilities — RBL Credit Agreement.”

Previous wording

Management’s discussion and analysis of our financial condition and results of operations are based upon our historical consolidated financial statements, which have been prepared in accordance with GAAP. The preparation of our financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the reported amounts of certain assets, liabilities, and related disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. For more information, see Note 1 - Business and Basis of Presentation to our condensed consolidated financial statements. As of March 31, 2025, there have been no material changes to our critical accounting policies and estimates as described in our 2024 Annual Report on Form 10-K for the year ended December 31, 2024.

Current wording

Management’s discussion and analysis of our financial condition and results of operations are based upon our historical consolidated financial statements, which have been prepared in accordance with GAAP. The preparation of our financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the reported amounts of certain