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February 26, 2025 BKV Corporation Investor Presentation
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Disclaimer About BKV Quarterly Highlights Business Units Overview: Upstream & Midstream Business Units Overview: CCUS Business Units Overview: Power Financial Overview Appendix 2 03 04 10 12 18 25 31 37
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Important Notice and Disclaimer 3 Forward-Looking Statements. This presentation includes “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward- looking statements, which are not historical facts, include statements regarding BKV’s strategy, future operations, financial position, estimated revenue and losses, projected costs, prospects, plans and objectives of management, and often contain words such as “expect,” “project,” “estimate,” “believe,” “anticipate,” “intend,” “budget,” “plan,” “seek,” “aspire,” “envision,” “forecast,” “target,” “predict,” “may,” “should,” “would,” “could,” “will,” and similar expressions. Actual results and future events could differ materially from those anticipated in such statements, and such forward- looking statements may not prove to be accurate. All forward-looking statements, expressed or implied, in this presentation are based only on information currently available to BKV and speak only as of the date on which they are made. BKV undertakes no obligation to release publicly any update to any of these forward-looking statements, except as required by federal securities laws. Forward-looking statements are based on management’s current views and assumptions and involve risks and uncertainties that could cause actual results to differ materially from historical experience or our present expectations, including but not limited to assumptions, risks and uncertainties regarding our business strategy; our reserves; our financial strategy, liquidity and capital required for our development programs; our relationship with Banpu, including future agreements with Banpu; actual and potential conflicts of interest relating to Banpu, its affiliates and other entities in which members of our officers and directors are or may become involved; volatility in natural gas, NGL and oil prices; our drilling plans and the timing and amount of future production of natural gas, NGL and oil; our hedging strategy and results; competition and government regulation; legal, regulatory or environmental matters; our ability to identify, complete and integrate acquired businesses and assets; costs of developing our properties and of conducting our operations; our plan to continue to expand our power generation and carbon capture, utilization and sequestration (“CCUS”) businesses; expected increase in demand for power and our ability to serve that demand from our power business; our ability to develop, produce and sell our carbon sequestered gas product; our ability to forecast annual sequestration rates for our CCUS projects; our ability to reach final investment decision and execute and complete any of our pipeline of identified CCUS projects; our ESG strategy and initiatives, including those relating to our plans to offset our Scope 1, Scope 2 and Scope 3 emissions from our owned and operated upstream and natural gas midstream businesses and the continuation of government tax incentives; the impact of epidemics, outbreaks or other public health events; cost inflation; our ability to service our indebtedness; the remediation of our material weaknesses; and management's outlook guidance or forecasts of future events. For further discussion of risks and uncertainties that could cause actual results to differ from those in such forward-looking statements, please read BKV’s filings with the Securities and Exchange Commission (the “SEC”), including the “Risk Factors” section of the prospectus filed by BKV with the SEC pursuant to Rule 424(b) of the Securities Act on September 26, 2024 (the “IPO Prospectus”). Reserves. BKV’s proved reserves are those quantities of oil and gas, which, by analysis of geoscience and engineering data, can be estimated with reasonable certainty to be economically producible — from a given date forward, from known reservoirs, and under existing economic conditions, operating methods, and government regulations — prior to the time at which contracts providing the right to operate expire, unless evidence indicates that renewal is reasonably certain, regardless of whether deterministic or probabilistic methods are used for the estimation. The accuracy of any reserve estimate depends on the quality of available data, the interpretation of such data and price and cost assumptions made by reservoir engineers. You should not assume that the present values referred to in this presentation represent the actual current market value of our oil, natural gas and NGL reserves. You are urged to consider closely the oil and gas disclosures in BKV’s filings with the SEC, including in the IPO Prospectus. Trademarks . This presentation contains trademarks, trade names and service marks of other companies, which are the property of their respective owners. We do not intend to, and our use of such marks should not, imply any relationship with, or endorsement or sponsorship of us by, these other parties. Non-GAAP Measures. This presentation contains financial measures that have not been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). Definitions and reconciliations of non-GAAP financial measures to the closest GAAP measure are provided in the Appendix.
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BKV Corporation 4 About BKV Natural gas production location Wyoming County, Pennsylvania
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BKV Corporation 5 • Closed Loop Strategy • Largest natural gas producer in the Barnett with complimentary assets in Northeast Pennsylvania (NEPA) • Energy solutions market growth potential at the confluence of significant trends e.g., AI Data Center Power Boom, Carbon Capture, Wave 2 LNG • Durable Adjusted Free Cash Flow 1 generated by low-decline assets and strong margins • Low reinvestment rate , backstopped by 10.8% corporate one-year decline rate2 1 Adjusted Free Cash Flow is not a financial measure calculated in accordance with GAAP. Please see Non-GAAP definition and a reconciliation to the most directly comparable GAAP measure in the Appendix. 2 Company-wide YE 2024 base decline rate for all PDP reserves. BKV is an Energy Solutions Leader
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BKV Corporation BKV Delivers Value Beyond the Sum of Its Parts February 21, 2025 6 Natural Gas Upstream As of Dec. 2024 Net Acres Dec ’24 NYMEX 1P Reserves Tcfe2 Twelve Months Ended Dec. 2024 Avg. Net Production MMcfe/d1 480,9074.9788Total Operated Midstream Midstream CompressorsPipeline MilesTwelve Months Ended Dec. 2024 Throughput MMcf/d3 65778188Barnett CCUS Initial Injection % of Forecasted Annual Upstream and Midstream Emission Reductions4 Forecasted Annual Sequestration Volumes MTCO2 Q4 20239%183KBarnett Zero5 1H 202662%32KCotton Cove5 Q1 202665%90KEagle Ford 5 Power Capacity MW+Heat Rate Btu/kWhLocation 7526,904Bell County, TXTemple I 7476,950Bell County, TXTemple II BKV Assets Offer Unique, Integrated Platform with Significant Growth Potential 1 Production metrics take the daily average of Jan-Dec. 2024. 2 Reserves and associated PV-10 calculated based on 12/31/2024 NYMEX strip. Based on reserve reports prepared by Ryder Scott Company. 3 Represents our own gross production volumes gathered and processed on our Barnett midstream system and excludes third-party volumes gathered and processed on our Barnett midstream system. 4 Relates to estimated Scope 1 and Scope 2 emissions from BKV’s owned and operated upstream and midstream businesses as of 12/31/2023. 5 Estimates based on FID reached in June and October 2022 for Barnett Zero and Cotton Cove, respectively, and in December 2024 for Eagle Ford. 6 Project timelines are forecasted / goals Natural Gas Upstream Power CCUS Midstream Barnett Assets Temple I & II CCUS Assets NEPA Assets Denver Headquarters
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BKV Corporation BKV is the Largest Producer in the Barnett and a Top 5 Gas Producer in Texas1 7 1 Source: Texas Railroad Commission 2023 ‘Texas Oil & Gas Producers by Rank’ report; Excludes casinghead gas. Public filings, FactSet, Enverus. 2 Based on November 2024 gas production information from Enverus, inclusive of all gas production. BKV production is as per company data. Peers include Total, Bedrock, Crescent, United Production Partners, Eagle Ridge, Diversified, EOG, Sage, and Lime Rock. 3 Purchase price does not include earnouts and other contingent payments as a part of the purchase agreement. 4 Metric adjusted for midstream valuation. Track Record of Consistent and Accretive Acquisitions $/Mcfe/dNet AcresPurchase Price3 ($MM) Announcement Date $1,5964165,000$6205/19/2022 $955289,000$57012/17/2019 BKV Barnett: Highly Contiguous Position, Opportunities for Growth Top 10 Barnett Producers Gross Operated Production (MMcfe/d)2 ~1.3 Bcf/d of production from other smaller operators in play P1 P2 P3 P4 P5 P6 P7 P8 P9 778 502 131 121 110 105 104 83 70 24
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BKV Corporation BKV Has Taken an Early Lead in the CCUS Space 8 Source: Press releases available on company websites, EPA, and DOE. 1 Low/Medium concentration indicates less than 80% purity CO2. High concentration indicates greater than 80% purity CO2. 2 Peers include Summit Carbon Solutions, Wolf Carbon Solutions, BP, Exxon, Chevron, Total Energies, Oxy, Tallgrass, Kinder Morgan, and California Resources POINT SOURCEHUB & SPOKE LOW/MEDIUM Strategic White Space Niche & First Mover Advantage in Class II Well Opportunities • Proven technology and project playbook to quickly deliver CCUS solutions • Organic and inorganic operational and commercial execution opportunities Lower Risk Capital & Faster Speed to Market • Flexible and agile approach allows BKV to compete through a variety of commercial models Capital Deployment Model CO2Concentration1 HIGH P1 P2 P3 P4 P6 P7 P8 P9 = CCUS Peers2 P10 P5
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BKV‐BPP Power Joint Venture Supplies Power to ERCOT Market 9 1 US Census Bureau: Net Immigration Drives Highest U.S. Population Growth in Decades 2 EIA, 2019-2023 – by GWh delivered 3 CBRE “Data Center Construction Quadruples in Central Texas as Cloud and Artificial Intelligence Providers Drive Demand” 8/21/24 4 EIA Daily Generation Data Texas’s Rising Tide #1 in population growth1 #2 in commercial electricity consumption growth2 ERCOT is the 2nd largest data center market, with plans to grow by 2x3 ERCOT Generation4, TWh 2019 2023 383 446 +16% 6,502 4,958 4,523 3,450 2,590 1,394 N. Virginia Texas 6 Phoenix Las Vegas Atlanta N. California Data Center Growth by Region5, MW 5 JLL “Rapid Expansion – Opportunities and challenges for the data center sector” 6 Includes DFW, Austin / San Antonio, Houston + + + BKV Corporation
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BKV Corporation 10 Quarterly Highlights 4Q 2024 Stakeholder tour at Barnett Zero Wise County, Texas
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BKV Corporation Fourth Quarter Business Highlights 11 Company • Continued de-leveraging to .65x net leverage 1 as of 12/31/24 • Significant growth opportunities being evaluated in each business line Upstream • Production outperformance: 4Q actuals of 774.5 MMcfe/d vs guidance of 720 – 750 MMcfe/d • 4Q capital expenditures below low-end of guidance range while delivering a greater activity set and better than forecasted production Midstream • Continued safe operations with 188 MMcf/d of natural gas transported through system as of 12/31/24 • Actively pursuing additional 3rd party volumes and in- basin gas sales Carbon Capture • 44k tons of CO 2 injected at Barnett Zero in 4Q 173k tons injected since start of operations Nov. 2023 – Dec. 2024 • Reached final investment decision on a new CCUS project to be developed in partnership with a leading diversified midstream energy company. Project is forecasted to inject ~90k tons annually starting in 2026. Power • Completed planned major maintenance readying both plants for peak winter months • Continuing to pursue organic and inorganic growth opportunities 1 Net leverage = Total debt less cash divided by Adjusted EBITDAX for the year ended 12/31/24 .
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BKV Corporation 12 Business Units Overview Upstream & Midstream Drilling rig in the Barnett Shale Denton County, Texas
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BKV Corporation 12/31/24 NYMEX Proved Reserves1 Inventory Summary: NEPA + Barnett Net Production from July 2022 Through December 2024 Barnett Inventory Summary BKV’s Inventory Strength and Low PDP Decline 13 1 Reserves and associated PV-10 calculated based on 12/31/2024 NYMEX strip pricing. Based on reserve reports prepared by Ryder Scott Company 2 Of the total refrac locations, 384 are proved locations 3 Of the total horizontal locations, 135 are proved locations 0 200 400 600 800 1,000 10-year Decline (%)5-year Decline (%)1-year Decline (%) 8.2%8.9%10.8% Q3 2022 Base Development Wedge Q1 2023 Q3 2023 Q1 2024 Production increased between July 2022 and March 2023 through development activity (+50 MMcfe/d) Flattened new well decline impacts via base optimization and data/analytics despite cutting capex in 2H23 and 1H24 MMcfe/d % GasTotal (Bcfe) NGLS (MMBbl) Oil (MMBbl) Gas (Bcf) 75%3,6931531.02,767PD 77%1,224461.0940PUD 75%4,9182002.03,707Total Proved Reserves Q3 2024 Inventory Count TotalUnprovedProved 420300120Lower Barnett 1051050Upper Barnett (Appraisal) 525 405120Total 15+ years of inventory life with low-cost refracs and new drills Low development capex and base decline Refrac Locations2 Horizontal Locations3 2,091 621 Barnett LOE Optimization • BKV has lowered LOE on Barnett by 12% since integration
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Barnett: 15+ Years of Capital Efficient Inventory 14 1 Economics based on 5-year inventory weighted averages, $3.50 gas, $22.50 NGLs, and $75 oil. 2 Of the total refrac locations, 384 are proved locations. Of the total New Drill D&C locations, 135 are proved locations based on YE24 Nymex Reserves. Barnett – Robust Reserves Life and Solid Returns1 RefracsNew Drill D&C 82%82%Avg. Royalty 1.05 Bcfe / job1.25 Bcfe / 1,000’Type Curve EUR -9,700’Average Lateral Length $525,000 / job$605 / lateral ftAverage Cost 58%45%Average 1st Year Decline 45%24%Liquids Content $0.50 / Mcfe$0.47 / Mcfe2023 Audited F&D Cost 2,097471Inventory2 Barnett Upper and Lower Inventory – Large, Contiguous Acreage Upper Barnett (Appraisal) BKV’s Competitive Edge for Barnett Development • No midstream constraints, in-basin or long haul • “Bought and paid for” infrastructure across Barnett • Optimal well spacing and modern frac designs • Strong reservoir recovery factors • Niche service sector within Barnett BKV Acreage Lower Barnett Drilling Inventory BKV Corporation
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Barnett Position Presents Multiple Market Opportunities 15 Well Positioned for LNG U.S. Gulf Coast LNG expected to exceed 20 Bcf/d by 2028, representing >2.0x compared to 2020 levels Favorable Barnett gas composition Infrastructure Access to strong basis pricing and midstream footprint generates additional in-basin revenue Attractive DFW Market Local customers in DFW provide enhanced margin opportunities Carbon Sequestered Gas Developing Scope 1, 2, and 3 carbon neutral natural gas product; announced agreement with Kiewit BKV Corporation
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Northeast Pennsylvania (NEPA) –A s s e t Overview 16 1 TTM 3/31/2019 compared to TTM 12/31/2024 NEPA Asset Summary • 19,096 net acres centrally located in the “Super Core” • BKV has lowered LOE by 36% since acquisition1 • Average 5-year PDP decline rate of 12.7% and 10-year of 10.9% • Proven Upper Marcellus inventory Strategic Rationale • Sufficient inventory to generate strong free cash flow for 7+ years • Development potential includes 96 operated locations • ~20% of BKV gas production has firm delivery to premium Northeast Markets • NEPA asset yields 100% lean natural gas NEPA Asset Map BKV Corporation
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BKV Midstream ‐ Differentiated Access to End Customers 17 BKV Midstream Asset Overview • Supports BKV upstream assets • Generates incremental revenue via gathering, processing, and transportation of third-party production (50% utilization today) • Positioned in the heart of Tarrant and Johnson counties with access to numerous 3 rd producers and end users Strategic Rationale • Midstream subsidiary optimizes compression, lowers pressures and drives accretion via flowing additional BKV equity volumes • Capacity to grow additional 3rd party volumes on system on top of existing volumes • Allows for direct sales in DFW including CSG Key Asset Metrics 778Operated Gas Pipeline Miles 200 MMcf/dUnutilized Capacity BKV Corporation
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BKV Corporation 18 Business Units Overview CCUS Barnett Zero compressor facility Wise County, Texas
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BKV Corporation CCUS Strategy1: Target Quick Wins on NGP while Scaling Class VI Projects 19 Scaling CCS Business: Today to End of The Decade High Concentration, Class II, Natural Gas Processing Projects High Concentration, Class VI, Ethanol & Other Natural Gas Processing Projects Industrial Projects with Point Source Sequestration High West, LA; expecting to submit Class IV permit Donaldsonville, LA Class VI permit application submitted Whites Bayou, SE TX Class VI permit application submitted Cotton Cove – BKV Midstream Eagle Ford – Public Midstream Provider Barnett Zero - EnLink Midstream Operational • Leading Reservoirs and Sinks • Longer Lead Time • Large Volume Potential through Combination of High and Medium Concentration CO2 1 2 3 • Modular & Scalable • Point Source: Minimize Infrastructure • Near Term Revenue Potential • Focus on Class II Wells • Modular & Scalable • Point Source: Minimize Infrastructure • Increased Revenue Potential from LCFS • Focus on Class VI Wells 1 Our Barnett Zero project is operational, and we have reached FID with respect to the Cotton Cove project and the Eagle Ford project. We are pursuing additional potential CCUS projects that we believe are commercially viable. However, we have not secured external financing, reached FID or entered into definitive agreements necessary to execute any of these additional potential projects.
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And we know who we are NOT…CategoryWe know who we are… Hub and Spoke – Majors have leaned towards single injectors with spider-web pipeline networkModel Point-Source – Focused on utilizing proven technology to quickly deliver bespoke CCS solutions to a wide range of industrial emitters Loss Leaders – Some peers allow for loss leaders for a season to command supply or hope for valuationReturns High Quality Returns – High concentration CO 2 projects with revenue from Section 45Q tax incentives (or fees for service projects). Additional upside potential for premium products bundled with environmental attributes (i.e. CSG). Mega Project Focus – Some peers have mega single project focus with extreme binary project riskFocus Deal Conveyor Belt – BKV’s track record of delivering project and commercial execution creates a larger number of opportunities to spread out risk – portfolio approach Narrow Deal Terms – Some peers have a single focus structure which rules out some emittersFlexibilityFlexible Approach – dCarbon can flex role between capturing CO 2, collecting 45Q, or fee for service Mismatched Experience – Some peers are making the leap to project development despite no clear skillsetExpertise Excellent Results without Shortcuts – 40+ member team, under shared-service model, with track record of delivering on time and on budget and using holistic risk management to deliver durable projects Enhanced Oil Recovery – EOR risks significant reputational issues and leakage/penetration risk, along with lower $/T 45Q credits Supply Natural Gas Processing CO 2 and Other High Concentration Sources – NGP allows for fast-tracking Class II Permanent Injection projects w/$85/T 45Q credtis Orphans – Some peers are not taken seriously because they have no incubation engine behind themRoadmapPath to Self Fund Stable FCF – Nimble balance from BKV incubation and line-of-site to cash flow independent BKV’s CCUS Competitive Advantages 20 + x + x + x + x + x + x + x BKV Corporation
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Natural Gas Processing Plants BKV's near‐term focus area for Class II CCUS projects 21 There are 435 NGPs in the lower 48 emitting 50MM tpy CO2, with 12MM tpy of that being high‐concentration acid gas removal unit emissions Key Points: • According to 2022 FLIGHT EPA data, there are 435 natural gas processing plants in lower 48 US that are emitting CO 2 • 50,395,555 tons per year total reported CO2 emissions; of that: • 12,028,219 tons per year are acid gas removal unit CO2 emissions • 32,849,161 tons per year stationary combustion CO2 emissions Of these natural gas processing plants: • 4 plants reported permanent sequestration of CO2 • 24 plants reported utilization of CO2 through enhanced oil recovery (EOR) or supply to other industries Lower 48 Natural Gas Processing Plants All emissions information from FLIGHT EPA 2022 Data BKV Corporation
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BKV Corporation Carbon Capture Offers High Quality and Value Carbon Credits 22 Carbon Credit Quality Initiative (CCQI) scores use seven quality criteria: Source: Carbon Credit Quality Initiative Scoring Tool, External Consultants Sources: Carbon Credit Quality Initiative Scoring Tool (https://carboncreditquality.org/scores.html), External Consultants Assessment Criteria • Robust GHG impact determination (Additionality) • Avoids double counting • Addresses non-permanence • Facilitates net zero transition • Strong institutional arrangements • Positive environmental & social impacts • Supports climate ambition of host country $100 600 0 20 25 30 35 300 0 200 Quality / CCQI Score Direct Air Capture (DAC) Carbon Credits - Pricing vs. Quality per CCQI Estimated Carbon Credit Price ($/CO 2e abated) High-price, direct removal options Balanced cost-quality options Lower CCQI quality options NGP CCS (CSG) Ethanol CCS RNG Forestry Recent Pricing Datapoint BKV-modeled pricing
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Flagship Project: Barnett Zero, Injecting Since November 2023 231 Project details based on current anticipated forecast of commercial terms, project timing and anticipated costs • Barnett Zero is BKV’s inaugural CCUS project, which began injection operations in November 2023 • Barnett Zero was one of the first purpose drilled, non- EOR Class II, commercial carbon sequestration wells injecting CO2 waste from a natural gas processing plant in the U.S. • BKV entered into an agreement with EnLink Midstream in June 2022 to geologically sequester CO2 waste generated from a natural gas processing in the Barnett in North Texas • BKV achieved FID in June 2022 and initiated first injection 18 months later, safely executing approximately 6 weeks ahead of schedule and on budget Project Summary1 183 ktpyForecasted Average Annual Sequestration Volume $36 MillionCapex 45QRevenue Structure ~173K tonsTotal Injection through 12/31/24 11/13/2023First Injected Date EnLink Midstream Processing Plant Compression Facility Injection Site High Pressure CO2 Transport Line Injection Well TX NM OK Project Locator Map + + BKV Corporation
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Reductions in Ambient CO2 Quantified by Monitoring at Barnett Zero 24 Bridgeport Gas Plant Pre Start-up October 2023 Post Start-up May 2024 Sequestration Site Lines depict the drone monitoring path + + + BKV Corporation
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25 Business Units Overview Power Temple Power Plants Bell County, Texas
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Robust Power Portfolio in Texas: CCGT Plants & Solar 26 2.5MWac solar facility jointly owned through a JV with BPPUS • Synergistic location is BKV owned and within BKV’s O&G operations footprint • ~6,500 MWh expected power generation in year 1 • IRS Investment Tax Credit (ITC) of 40% received upon COD in Q3 2024 • Eligible to receive SREC tax credits received for clean energy generated • Optionality for a Phase II project, with an additional 2.5MWac Ponder Solar Farm 1 Total capacity and heat rate depends on the weather and other factors (wet compression). At peak, both plants approximate a max output of 750 MW. Location / Market Bell County, TX / ERCOT North Capacity 1 / Heat rate Temple I & II: ~750 MW each; 7,000 Btu/kWh TI & TII CCGT Power Plants – Temple, TX BKV Corporation
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Strategic JV with Significant Growth Potential in ERCOT 27 • 50/50 JV with Banpu Power (BPP) leverages expertise and assets of both Banpu and BKV • Low heat rates ~7,000; below ERCOT avg. • Well positioned to take advantage of growing ERCOT and data center (AI) demand • Co-location of both facilities allows for operational and commercial synergies • ~2.8 Bcf of gas storage • Combined purchase price of ~$600/kW vs new construction rates of ~$1,500+/kW • Expect to be in position to sell power with the underlying carbon emissions offset by our growing CCUS business. Temple I and II BKV Corporation
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BKV Corporation ERCOT Forecasts Substantial Demand Growth through 2030 28Graph pulled from website on 1/15/2025; https://www.ercot.com/gridinfo/load/forecast 0 20 40 60 80 100 120 140 160 2024 2025 2026 2027 2028 2029 2030 Oil & Gas Hydrogen/Industrial Data Center Crypto 2024 Base Forecast This graph includes an assumption reduction to 15% LFL in the 2024 Base Forecast. ERCOT Contract and Officer Letter Growth Breakdown GW 148 GW
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900,000 sq. ft data center; 152 MWs capacity; target completion date of 2026 2 35-acre data center; 300 MWs capacity; completed in 2023 2 Data Center Demand & Growth in Texas is Accelerating 29 1JLL “Rapid Expansion – Opportunities and challenges for the data center sector” 2 Company websites 4,523 3,450 2,590 1,955 1,394 1,112 398 211 206 133 74 01 , 0 0 02,0003,0004,0005,0006,0007,000 Northern Virginia Phoenix Las Vegas/Reno Dallas/Ft. Worth Atlanta Chicago Austin/San Antonio Northern California Salt Lake City Northwest New Jersey Denver Los Angeles Houston New York Vancouver Boston 6,502 (24%) 3,430 (12%) 1,401 (5%) 127 PJM ERCOT CAISO MISO Southwest Southeast Pacific Northwest NYISO Data Center Capacity Growth, MW As of 1H 2024; Under Construction & Planned1 + + BKV Corporation +
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BKV Corporation Power JV Strategically Positioned to Supply Power to Hyperscalers 30 1 Synergy Research Group “Hyperscale Operators and Colocation Continue to Drive Huge Changes in Data Center Capacity Trends” 2 Company websites 3 CBRE North America Data Center Trends H1 2024H1 2024 Data Center Market Highlights BKV’s Strategic Advantages • Largest natural gas producer in the Barnett with significant owned midstream assets • 50% owner of 2 modern CCGT plants ideally situated in Temple, TX • Pipeline access/capacity to potentially deliver gas to owned power plants • Active and growing CCUS business generating environmental attributes that can be packaged to sell net zero power • Operating solar farm, with an option to double the size, to augment renewable power generation • Retail power business to deliver electricity to the end customer As of 2024 hyperscalers accounted for ~40% of worldwide data center capacity, forecasted to increase to 60% by 2029 1 Most hyperscalers including Microsoft, Google, AWS, Apple, and Meta, have made public announcements to be net zero and/or utilize carbon- free energy to power their data centers by 2030 2 Power availability, carbon emission goals, and natural gas prices continue to be key concerns and potential constraints on data center growth 3
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BKV Corporation 31 Financial Overview
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BKV Corporation 4Q24 Financial Highlights 32 Gross Debt Reduction from 2022 - Present 1 Adjusted EBITDAX, Adjusted Free Cash Flow, and Adjusted Net Income (Loss) are not financial measures calculated in accordance with GAAP. Please see definition on page 38 (Non-GAAP and Other Definitions), and a reconciliation to the most directly comparable GAAP measure in the appendix. 2 Net Debt as presented is calculated as total debt less cash and cash equivalents. 3 Net Leverage as presented is calculated as net debt divided by trailing twelve months Adjusted EBITDAX. 4 Considers RBL draws of $165.0MM on $600.0MM ECA; $14.1MM of LCs in place (undrawn) and $14.9MM of cash. FY 20244Q QTDCategory ($ in Millions) 788.0774.5Production (Mmcfe/d) $231.8$71.9Adjusted EBITDAX1 $117.6$60.3Total Accrued CAPEX $91.6$5.4Adjusted Free Cash Flow1 ($39.5)$0.8Adjusted Net Income (Loss)1 ($0.55)$0.01Adjusted Earnings (Loss) per Diluted Share1 $150.1Net Debt2 0.65xNet Leverage3 $435.8Liquidity4 $729.0 $654.0 $165.0 Q4 2022 Q4 2023 Q4 2024 -77.4%
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BKV Corporation Financial Summary | Quarterly Historicals 33 $6.26 $3.42 $2.55 $2.88 $2.24 $1.89 $2.16 $2.79 Q4 2022 Q1 2023 $2.10 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 $(89.9) $(84.7) $(40.6) $(35.7) $(26.4) $(19.9) $(11.7) $(21.2) $(48.1) Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 NYMEX Pricing ($/MMBtu)1 Cash Capital Expenditures ($MM) Average Quarterly Net Production (MMcfe/d) 917 876 881 845 838 821 794 763 775 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Adjusted Free Cash Flow Margin2 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 14.1% -6.7% 2.1% -6.2% 22.3% 30.5% 13.4% 14.2% Q4 2024 3.1% Source: Company disclosures. Factset. 1 Front of Month NYMEX settled prices 2 Represents company-wide Adjusted FCF Margin. Please see definition of Adjusted FCF Margin in the Appendix.
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Disciplined Growth, Financial Strategy and Shareholder Returns 34 Source: Company disclosures. 1 Please see definitions of Net Leverage Ratio and Maintenance Reinvestment Rate in the appendix (Non-GAAP and Other Definitions). 2 We currently do not pay a fixed cash dividend to holders of our common stock, and our existing debt agreements place certain restrictions on our ability to repurchase or pay cash dividends on our common stock. Our dividends policy is under consideration by our board of directors. Any future determination related to our dividend policy will be made at the sole discretion of our board of directors. Base Business: 1. Maintain low net leverage targeting a Net Leverage Ratio of <1.0 – 1.5x 2. Upstream/Midstream Maintenance Capex Target a -50% Maintenance Reinvestment Rate 1 3. Upstream/Midstream Strategic Organic Growth Capex Opportunistic incremental investment in the growth of our upstream and midstream business 4. CCUS & Power Strategic Growth Capex Opportunistic investment in the growth of our CCUS & power businesses 5. M&A Opportunities Inorganic growth through opportunistic value accretive M&A transactions across our business streams 6. Evaluate Shareholder Distributions 2 Opportunistic Investments: Capital Use Prioritization 1 2 3 4 5 6 Cash Uses for Base Business Illustrative Uses of Cash Upstream capital allocation is based on pricing environment Near-term focus: • Maintain low leverage • Maintain base production • Invest into CCUS business Next up: • Consider incremental organic growth • Opportunistic M&A • Evaluate shareholder distributions2Capital allocation varies with price ($/Mcfe) $2.50 - $3.50 $3.50+ $3.00 - $3.50 BKV Corporation
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BKV Corporation Compelling Investment Throughout the Commodity Cycle 35 Growth Driven Fully Operational CCUS Business with Deep Project Pipeline Margin Enhancing Power Exposed to ERCOT/Texas and AI Demand, While Midstream Benefits from Gulf Coast Demand Generating Alpha Asymmetric Upside With Ability to Mitigate Downside Cash Generating Capital Efficient Low Decline Asset Base Low Maintenance Reinvestment Rate 1 Durable Adjusted Free Cash Flow 1 See definition of Maintenance Reinvestment Rate in the Appendix
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BKV Corporation Thank you. Questions? 36
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BKV Corporation 37 Appendix
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Non‐GAAP & Other Definitions 38 This Presentation includes the following financial measures that are not calculated in accordance with GAAP: (i) Adjusted EBITDAX and (ii) Adjusted Free Cash Flow and (iii) Adjusted Free Cash Flow Margin. These non-GAAP financial measures are defined below and reconciled in the appendix to this presentation. Adjusted EBITDAX: We define Adjusted EBITDAX as net income (loss) attributable to BKV Corporation before non-cash derivative gains (losses), depreciation, depletion, amortization and accretion, exploration and impairment expense, gains (losses) on contingent consideration liabilities, interest expense, interest expense, related party, income tax benefit (expense), equity- based compensation expense, bargain purchase gains, earnings or losses from equity affiliate, the portion of settlements paid (received) for early-terminated derivative contracts that relate to future periods, and other nonrecurring transactions. Adjusted EBITDAX is a supplemental non-GAAP financial measure that is used by our management and external users of our consolidated financial statements, such as industry analysts, investors, lenders, rating agencies and others to more effectively evaluate our operating performance and results of operations from period to period and against our peers. We believe Adjusted EBITDAX is a useful performance measure because it allows us to effectively evaluate our operating performance and results of operations from period to period and against our peers, without regard to our financing methods, corporate form, or capital structure. We exclude the items listed above from net income (loss) in arriving at Adjusted EBITDAX because these amounts can vary substantially from company to company within our industry depending upon accounting methods and book values of assets, capital structures and the method by which the assets were acquired. Adjusted EBITDAX should not be considered as an alternative to, or more meaningful than, net income (loss) determined in accordance with GAAP. Certain items excluded from Adjusted EBITDAX are significant components in understanding and assessing a company's financial performance, such as a company's cost of capital and tax burden, as well as the historic costs of depreciable assets, none of which are reflected in Adjusted EBITDAX. Our presentation of Adjusted EBITDAX should not be construed as an inference that our results will be unaffected by unusual or non- recurring items. Other companies, including other companies in our industry, may not use Adjusted EBITDAX or may calculate this measure differently than as presented in this presentation, limiting its usefulness as a comparative measure. Adjusted Free Cash Flow: We define Adjusted Free Cash Flow as net cash provided by (used in) operating activities, excluding cash paid for contingent consideration and changes in operating assets and liabilities, less total cash paid for capital expenditures (excluding leasehold costs and acquisitions). Adjusted Free Cash Flow is not a measure of net cash flow provided by or used in operating activities as determined by GAAP. Adjusted Free Cash Flow is a supplemental non-GAAP financial measure that is used by our management and other external users of our financial statements, such as industry analysts, investors, lenders, rating agencies and others to assess our ability to internally fund our capital program, service or incur additional debt and to pay dividends. We believe Adjusted Free Cash Flow is a useful liquidity measure because it allow us and others to compare cash flow provided by operating activities across periods and to assess our ability to internally fund our capital program (including acquisitions), to reduce leverage, fund acquisitions and pay dividends to our stockholders. Adjusted Free Cash Flow should not be considered as an alternative to, or more meaningful than, net income (loss) or net cash provided by (used in) operating activities determined in accordance with GAAP. Other companies, including other companies in our industry, may not use Adjusted Free Cash Flow or may calculate this measure differently than as presented in this presentation, limiting its usefulness as a comparative measure. Adjusted Free Cash Flow Margin: We define Adjusted Free Cash Flow Margin as the ratio of Adjusted Free Cash Flow for any period to total revenues, excluding derivative gains and losses, for such period. We use this metric to assess our liquidity relative to our revenues. Adjusted Free Cash Flow Margin illustrates the efficiency with which the Company generates Adjusted Free Cash Flow. Other Definitions: Maintenance Reinvestment Rate: Maintenance Reinvestment Rate for any period refers to the maximum rate of our total capital expenditures accrued for the development of natural gas properties (excluding leasehold costs and acquisitions) for such period as a percentage of Adjusted EBITDAX for the same period that is necessary to hold our production for such period flat. Production Volume: Production Volume for any period is defined as the volume of natural gas, NGLs, or oil we extract from our Barnett and NEPA natural gas properties. We use this metric to monitor the efficiency and effectiveness of our upstream operations. Net Leverage Ratio: Total Net Leverage Ratio is the ratio of our total debt less cash and cash equivalents to annualized quarterly Adjusted EBITDAX. We use this metric to evaluate our total debt relative to our ability to generate cash through Adjusted EBITDAX. We target a Total Net Leverage Ratio of 1.0x to 1.5x to ensure adequate liquidity to meet debt obligations and a low debt burden to protect Adjusted Free Cash Flow. This metric also provides management with a benchmark of debt levels while considering growth opportunities and our ability to manage periods of commodity price volatility.
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Adjusted EBITDAX Reconciliation 39 Year Ended December 31,Three Months Ended December 31, 2023202420232024(in thousands) $1 16,91 8$(1 42,870)$37 ,540$(57,457)Net income (loss) Add back (subtract): (1 48,564)1 46,679(93,284)64,537Unrealized derivative (gains) losses (9,807)9,543(7 ,094)9,858Forward month gas settlement 224,427217, 8 9 293,03848,78 1Depreciation, depletion, amortization, and accretion ————Exploration and impairment expense (38,375)(9,676)(14,262)297Change in contingent consideration liabilities (earnout adjustment) —(5,269)—(5,269)Release of legal claims 69,94245,58215,4965,1 39Interest expense 7, 0785,1 8 11,995—Interest expense, related party —13 , 87 7——Loss on early extinguishment of debt 28,225(43,605)5,1 84(1 3,535)Income tax (benefit) expense 25,75616,3168,3643,497Equity-based compensation expense —(6,563)—(1,1 1 2)Gain on sales of non-operated interest in proved reserves (16,865)(10,423)17,92717,179(Earnings) losses from equity affiliate (46,701)(1 3,250)(7 ,577)—Early settlement of derivative contracts 39,1 248,35010,082—Early settlements of derivative contracts related to the current period $25 1,1 58$23 1,764 $67 ,409$7 1,91 5Adjusted EBITDAX BKV Corporation
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Adjusted Net Income (Loss) Reconciliation 40 Year Ended December 31,Three Months Ended December 31, 2023202420232024(in thousands, except EPS) $1 16,91 8$(1 42,870)$37 ,540$(57,457)Net income (loss) Adjustment to net income (loss): (1 48,564)1 46,679(93,284)64,537Unrealized derivative (gains) losses (16,865)(10,423)17,92717,179(Earnings) losses from equity affiliate (38,375)(9,676)(14,262)297Chane in contingent consideration —(5,269)—(5,269)Release of legal claims —10,508——Acceleration of equity-based compensation due to IPO —(6,563)—(1,1 1 2)Gain on sales of non-operated interest in proved reserves —13 , 87 7——Loss on early extinguishment of debt (46,701)(1 3,250)(7 ,577)—Early settlement of derivative contracts 39,1 248,35010,082—Early settlements of derivative contracts related to the current period $(2 1 1,38 1)$134,233$(87 ,1 1 4)$75,632Total adjustments before taxes 48,6 1 8(30,87 4)20,036(17 ,395)Tax effect of adjustments (162,763)103,359(67 ,078)58,237Total adjustments after taxes $(45,845)$(39,5 1 1)$(29,538)$780Adjusted Net Income (Loss) $(0.75)$(0.55)$(0.45)$0.01Adjusted net income (loss) per basic share $(0.75)$(0.55)$(0.45)$0.01Adjusted net income (loss) per diluted share 60,73071, 28 866,27684,387Basic weighted-average shares of common stock outstanding ———123Add dilutive effects of TRSUs (1) ————Add dilutive effects of PRSUs (1) 60,73071, 28 866,27684,510Dilutive weighted-average common shares outstanding BKV Corporation
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Adjusted Free Cash Flow Reconciliation 41 Year Ended December 31,Three Months Ended December 31, 2023202420232024(in thousands) $1 23,299$1 1 8,538$ 7 ,868$43,762Net cash provided by operating activities 65,00020,000——Cash paid for contingent consideration 18 , 4 3754,01060,4659,824Change in operating assets and liabilities (1 87 ,7 16)(100,916)(26,648)(48,1 42)Cash paid for capital expenditures (excl. leasehold costs, acquisitions) $19,020$91,632$41,685 $5,444Adjusted Free Cash Flow BKV Corporation
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BKV’s Planned Path To Net Zero (Scope 1, 2 & 3): Barnett and NEPA Based on BKV owned and operated upstream and natural gas midstream emissions estimates in the Barnett and NEPA as of 12/31/23 42 Pad of the Future Scope 1 & 2 Reduction • Improve operations and environmental performance • Asset consolidation and replacement • Emissions elimination • Highly economic program Emissions Monitoring and Solar Scope 1 & 2 Reduction • 4-tiered air monitoring plan: flyover, satellite, continuous monitoring, and LDAR • Up to 5 MW solar Carbon Capture, Utilization and Storage Scope 1, 2 & 3 Reduction • CCUS projects to achieve emission offsets • Balance of residual Scope 1 and all Scope 3 offset via CCUS 1 1POTF estimated to eliminate 34% of Scope 1 emissions, based CY2023 reported emissions; 2 Emissions Monitoring assumed to eliminate 10% of Scope 1 emissions based on CY2023 reported emissions; 3Based on 79 1 MMscfd gas to sales volume for 2023 Subpart W in the Barnett, 1 5 1 MMscfd gas to sales volume for 2023 BKV Subpart Wi n N E P A ; 4BKV planning to offset all Scope 3 emissions by late 2030s; 5Scope 3 emissions are based on an estimated gas and NGLs to sales volume as reported to US EPA for 2023 Subpart W; 6Scope 3 emissions are estimated assuming fuel based usage of all produced natural gas and NGLs. Approximately 58% of NGLs are assumed to be combusted for fuel while 100% of all gas produced is assumed to be combusted for fuel. 2 3 BKV Corporation As of 12/31/23
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Consistent and Methodical Hedging Philosophy 43 BKV’s Hedging Philosophy Strategically execute a financial hedge program to support natural gas and NGL prices at targeted levels and to manage our exposure to natural gas and NGL price fluctuations. These contracts may include commodity price swaps, whereby we will receive a fixed price and pay a variable market price to the contract counterparty, producer collars that set a floor and ceiling price for the hedged production, or basis differential swaps. Consistently hedge between 25 – 60% of forecasted volumes for 1 2 – 48-month future period utilizing investment grade counterparties. Note: Hedge Positions as of 2/24/2025 1 Strike price incorporates floors of executed collars. Figures exclude regional basis hedges and related volumetric exposures. 2 NRI volumes comprised of updated 2025 Budget Guidance and LRP projections for 2026+; NGLs converted to gas equivalent at a 6:1 basis. Calendar 2026Calendar 2026Balance of 2025 As of Feb. 21, 2025 Daily Volumes % of Total Price ($)1 Daily Volumes % of Total Price ($)1 Daily Volumes % of Total Price ($)1Commodity 180,000100%$3.23328,75084%$3.43355,50082%$3.43Natural Gas (MMBtu) ---10,75016%$0.5212,89518%$0.52NGLs (Bbl) 180,800267,900432,870 Total Hedged Production (Mcfe) 2 BKV Corporation
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BKV Corporation 12/31/24 SEC Proved Reserves YE23 to YE24 SEC Total Proved (Tcfe) SEC Reserves Overview 44 Total CorpBarnettNEPA% Decline 10.8%9.6%17.8%1-year 8.9%8.3%12.7%5-year 8.2%7.8%10.9%10-year PV-10 ($MM)% GasTotal (Bcfe) NGLS (MMBbl) Oil (MMBbl) Gas (Bcf) 64572%2,8691340.92,060PD 5767%263140.8176PUD 67271%3,1321481.72,236Total Proved Reserves 2,091 Note: Reserves and associated PV-10 calculated based on 12/31/2024 SEC pricing - $2.13 gas, $75.48 Oil, 29.25% of WTI NGL. Based on reserve reports prepared by Ryder Scott Company PDP Operated Decline Rates - YE24 SEC Reserves