| |
Delaware
(State or other jurisdiction of incorporation or organization) |
| |
1311
(Primary Standard Industrial Classification Code Number) |
| |
85-0886382
(I.R.S. Employer Identification Number) |
|
| |
Samantha H. Crispin
M. Preston Bernhisel Adorys Velazquez Baker Botts L.L.P. 2001 Ross Avenue, Suite 900 Dallas, Texas 75201 (214) 953-6500 |
| |
Michael Chambers
Monica E. White Latham & Watkins LLP 811 Main Street, Suite 3700 Houston, Texas 77002 (713) 546-5400 |
|
| |
Large accelerated filer
☐
|
| |
Accelerated filer
☐
|
|
| |
Non-accelerated filer
☒
|
| |
Smaller reporting company
☐
|
|
| | | | |
Emerging growth company
☒
|
|
| | | |
Page
|
| |||
| | | | | 1 | | | |
| | | | | 41 | | | |
| | | | | 93 | | | |
| | | | | 95 | | | |
| | | | | 96 | | | |
| | | | | 97 | | | |
| | | | | 99 | | | |
| | | | | 101 | | | |
| | | | | 114 | | | |
| | | | | 155 | | | |
| | | | | 157 | | | |
| | | | | 217 | | | |
| | | | | 225 | | | |
| | | | | 239 | | | |
| | | | | 241 | | | |
| | | | | 247 | | | |
| | | | | 255 | | | |
| | | | | 258 | | | |
| | | | | 260 | | | |
| | | | | 264 | | | |
| | | | | 271 | | | |
| | | | | 271 | | | |
| | | | | 272 | | | |
| | | | | F-1 | | | |
| | | |
Nine Months
Ended September 30, |
| |
Year Ended December 31,
|
| |
Pro Forma
Nine Months Ended September 30, 2022 |
| |
Pro Forma
Year Ended December 31, 2021 |
| ||||||||||||||||||||||||
| | | |
2022
|
| |
2021
|
| |
2021
|
| |
2020
|
| ||||||||||||||||||||||||
| | | |
(in thousands, except per share amounts)
|
| |||||||||||||||||||||||||||||||||
| Revenues and other operating income | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Natural gas sales
|
| | | $ | 969,525 | | | | | $ | 359,716 | | | | | $ | 597,050 | | | | | $ | 101,758 | | | | | | * | | | | | | * | | |
|
NGL sales
|
| | | | 247,404 | | | | | | 151,165 | | | | | | 225,135 | | | | | | 11,952 | | | | | | * | | | | | | * | | |
|
Oil sales
|
| | | | 7,544 | | | | | | 5,491 | | | | | | 7,560 | | | | | | 1,333 | | | | | | * | | | | | | * | | |
|
Natural gas, NGL and oil sales
|
| | | | 1,224,473 | | | | | | 516,372 | | | | | | 829,745 | | | | | | 115,043 | | | | | | 1,443,705 | | | | | | 1,137,725 | | |
|
Midstream revenues
|
| | | | 6,080 | | | | | | 5,529 | | | | | | 6,917 | | | | | | 7,458 | | | | | | 9,701 | | | | | | 13,161 | | |
|
Derivative gains (losses), net
|
| | | | (720,312) | | | | | | (500,604) | | | | | | (383,847) | | | | | | 20,755 | | | | | | (720,312) | | | | | | (383,847) | | |
|
Marketing revenues
|
| | | | 7,197 | | | | | | 51,246 | | | | | | 52,616 | | | | | | — | | | | | | 7,197 | | | | | | 52,616 | | |
|
Other
|
| | | | 2,008 | | | | | | — | | | | | | 251 | | | | | | 33 | | | | | | 2,256 | | | | | | 518 | | |
|
Total revenues and other operating income
|
| | | | 519,446 | | | | | | 72,543 | | | | | | 505,682 | | | | | | 143,289 | | | | | | 742,547 | | | | | | 820,173 | | |
| | | |
Nine Months
Ended September 30, |
| |
Year Ended
December 31, |
| |
Pro Forma
Nine Months Ended September 30, 2022 |
| |
Pro Forma
Year Ended December 31, 2021 |
| ||||||||||||||||||||||||
| | | |
2022
|
| |
2021
|
| |
2021
|
| |
2020
|
| ||||||||||||||||||||||||
| | | |
(in thousands, except per share amounts)
|
| |||||||||||||||||||||||||||||||||
| Operating expenses | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Lease operating and workover
|
| | | | 86,870 | | | | | | 64,244 | | | | | | 88,105 | | | | | | 31,260 | | | | | | 145,046 | | | | | | 185,853 | | |
|
Taxes other than income
|
| | | | 86,164 | | | | | | 28,453 | | | | | | 45,650 | | | | | | 5,151 | | | | | | 96,860 | | | | | | 67,317 | | |
|
Gathering and transportation
|
| | | | 153,281 | | | | | | 124,287 | | | | | | 173,587 | | | | | | — | | | | | | 178,602 | | | | | | 223,382 | | |
|
Accretion of asset retirement obligations
|
| | | | 8,874 | | | | | | 7,439 | | | | | | 10,030 | | | | | | 3,211 | | | | | | 10,647 | | | | | | 13,616 | | |
|
Depreciation, depletion, and amortization
|
| | | | 68,606 | | | | | | 61,219 | | | | | | 81,986 | | | | | | 83,388 | | | | | | 93,248 | | | | | | 141,718 | | |
|
Exploration and impairment
|
| | | | — | | | | | | 34 | | | | | | 34 | | | | | | 560 | | | | | | — | | | | | | 34 | | |
|
General and administrative
|
| | | | 107,341 | | | | | | 62,653 | | | | | | 85,740 | | | | | | 29,442 | | | | | | 102,241 | | | | | | 91,860 | | |
|
Accretion of right of use liabilities(1)
|
| | | | 190 | | | | | | 167 | | | | | | 227 | | | | | | 184 | | | | | | 190 | | | | | | 227 | | |
|
Total operating expenses
|
| | | | 511,326 | | | | | | 348,496 | | | | | | 485,359 | | | | | | 153,196 | | | | | | 626,834 | | | | | | 724,007 | | |
|
Income (loss) from operations
|
| | | | 8,120 | | | | | | (275,953) | | | | | | 20,323 | | | | | | (9,907) | | | | | | 115,713 | | | | | | 96,166 | | |
| Other income and expense | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Loss on contingent consideration liabilities(2)
|
| | | | (31,089) | | | | | | (193,350) | | | | | | (194,968) | | | | | | 7,135 | | | | | | (31,089) | | | | | | (194,968) | | |
|
Interest expense
|
| | | | (22,334) | | | | | | (314) | | | | | | (2,134) | | | | | | (1,713) | | | | | | (44,225) | | | | | | (51,018) | | |
|
Other income
|
| | | | 1,051 | | | | | | 628 | | | | | | 872 | | | | | | — | | | | | | 1,051 | | | | | | 872 | | |
|
Bargain purchase gain
|
| | | | 163,653 | | | | | | — | | | | | | — | | | | | | — | | | | | | 163,653 | | | | | | — | | |
|
Gain on settlement of litigation
|
| | | | 16,866 | | | | | | — | | | | | | — | | | | | | — | | | | | | 16,866 | | | | | | — | | |
|
Income from equity affiliates
|
| | | | 14,486 | | | | | | — | | | | | | 910 | | | | | | — | | | | | | 14,486 | | | | | | 910 | | |
|
Interest income
|
| | | | 382 | | | | | | 2 | | | | | | 8 | | | | | | 121 | | | | | | 382 | | | | | | 8 | | |
|
Income (loss) before income taxes
|
| | | | 151,135 | | | | | | (468,987) | | | | | | (174,989) | | | | | | (4,364) | | | | | | 236,837 | | | | | | (148,030) | | |
|
Income tax benefit (expense)
|
| | | | 2,989 | | | | | | 107,918 | | | | | | 40,526 | | | | | | (38,982) | | | | | | (16,722) | | | | | | 34,325 | | |
|
Net income (loss) and comprehensive income (loss) attributable to BKV Corporation
|
| | | | 154,124 | | | | | | (361,069) | | | | | | (134,463) | | | | | | (43,346) | | | | | | 220,115 | | | | | | (113,705) | | |
|
Less accretion of preferred stock to redemption value
|
| | | | — | | | | | | (3,545) | | | | | | (3,745) | | | | | | — | | | | | | — | | | | | | (3,745) | | |
|
Less preferred stock dividends
|
| | | | — | | | | | | (9,900) | | | | | | (9,900) | | | | | | (460) | | | | | | — | | | | | | (9,900) | | |
|
Less deemed dividend on redemption of preferred stock
|
| | | | — | | | | | | (1,353) | | | | | | (22,606) | | | | | | — | | | | | | — | | | | | | (22,606) | | |
|
Net income (loss) and comprehensive income (loss) attributable to common
stockholders |
| | | | 154,124 | | | | | | (375,867) | | | | | | (170,714) | | | | | | (43,806) | | | | | | 220,115 | | | | | | (149,956) | | |
|
Net income (loss) and comprehensive income (loss)
per common share |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Basic
|
| | | $ | 1.31 | | | | | $ | (3.21) | | | | | $ | (1.46) | | | | | $ | (0.42) | | | | | $ | 1.88 | | | | | $ | (1.28) | | |
|
Diluted
|
| | | $ | 1.24 | | | | | $ | (3.21) | | | | | $ | (1.46) | | | | | $ | (0.42) | | | | | $ | 1.77 | | | | | $ | (1.28) | | |
|
Weighted average number of common shares outstanding
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Basic
|
| | | | 117,316 | | | | | | 117,027 | | | | | | 116,904 | | | | | | 105,275 | | | | | | 117,316 | | | | | | 116,904 | | |
|
Diluted
|
| | | | 124,597 | | | | | | 117,027 | | | | | | 116,904 | | | | | | 105,275 | | | | | | 124,597 | | | | | | 116,904 | | |
| Balance Sheet Information (at period end): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Restricted Cash(3)
|
| | | $ | 17,473 | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | | ** | | | | | | ** | | |
|
Cash & cash equivalents
|
| | | $ | 167,143 | | | | | $ | 86,245 | | | | | $ | 134,667 | | | | | $ | 17,445 | | | | | | ** | | | | | | ** | | |
|
Total natural gas properties, net
|
| | | $ | 2,203,766 | | | | | $ | 1,149,303 | | | | | $ | 1,176,117 | | | | | $ | 1,169,297 | | | | | | ** | | | | | | ** | | |
|
Total assets
|
| | | $ | 2,748,365 | | | | | $ | 1,585,858 | | | | | $ | 1,620,828 | | | | | $ | 1,342,492 | | | | | | ** | | | | | | ** | | |
|
Total liabilities
|
| | | $ | 1,811,085 | | | | | $ | 973,679 | | | | | $ | 865,889 | | | | | $ | 262,424 | | | | | | ** | | | | | | ** | | |
|
Total mezzanine equity
|
| | | $ | 159,230 | | | | | $ | 137,992 | | | | | $ | 83,847 | | | | | $ | 137,212 | | | | | | ** | | | | | | ** | | |
|
Total stockholders’ equity
|
| | | $ | 778,050 | | | | | $ | 474,187 | | | | | $ | 671,092 | | | | | $ | 942,856 | | | | | | ** | | | | | | ** | | |
| | | |
Nine Months
Ended September 30, |
| |
Year Ended
December 31, |
| |
Pro Forma
Nine Months Ended September 30, 2022 |
| |
Pro Forma
Year Ended December 31, 2021 |
| ||||||||||||||||||||||||
| | | |
2022
|
| |
2021
|
| |
2021
|
| |
2020
|
| ||||||||||||||||||||||||
| | | |
(in thousands, except per share amounts)
|
| |||||||||||||||||||||||||||||||||
| Statement of Cash Flows Information | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Net cash provided by (used in) operating activities
|
| | | $ | 231,076 | | | | | $ | 274,489 | | | | | $ | 358,133 | | | | | $ | (7,405) | | | | | | ** | | | | | | ** | | |
|
Net cash used in investing activities
|
| | | $ | (756,333) | | | | | $ | (74,868) | | | | | $ | (161,858) | | | | | $ | (513,992) | | | | | | ** | | | | | | ** | | |
|
Net cash (used in) provided by financing activities
|
| | | $ | 575,206 | | | | | $ | (130,820) | | | | | $ | (79,053) | | | | | $ | 442,723 | | | | | | ** | | | | | | ** | | |
| Other Financial Data (unaudited)(4) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Adjusted EBITDAX
|
| | | $ | 437,105 | | | | | $ | 247,748 | | | | | $ | 281,024 | | | | | $ | 65,147 | | | | | $ | 571,113 | | | | | $ | 420,185 | | |
|
Upstream Reinvestment Rate
|
| | | | 29% | | | | | | 9% | | | | | | 24% | | | | | | 16% | | | | | | ** | | | | | | ** | | |
|
Adjusted Free Cash Flow(5)
|
| | | $ | 142,970 | | | | | $ | 89,109 | | | | | $ | 165,090 | | | | | $ | 56,604 | | | | | | ** | | | | | | ** | | |
|
Adjusted Free Cash Flow Margin
|
| | | | 12% | | | | | | 16% | | | | | | 19% | | | | | | 46% | | | | | | ** | | | | | | ** | | |
|
Total Net Leverage Ratio(6)
|
| | | | 1.00x | | | | | | 0x | | | | | | 0.11x | | | | | | 0.10x | | | | | | ** | | | | | | ** | | |
| | | |
Nine Months Ended September 30,
|
| |
Year Ended December 31,
|
| |
Pro Forma
Nine Months Ended September 30, 2022 (in thousands) |
| |
Pro Forma
Year Ended December 31, 2021 (in thousands) |
| ||||||||||||||||||||||||
| | | |
2022
|
| |
2021
|
| |
2021
|
| |
2020
|
| ||||||||||||||||||||||||
| | | |
(in thousands)
|
| |
(in thousands)
|
| | | | | | | | | | | | | ||||||||||||||||||
|
Net income (loss) and
comprehensive income (loss) attributable to BKV Corp |
| | | $ | 154,124 | | | | | $ | (361,069) | | | | | $ | (134,463) | | | | | $ | (43,346) | | | | | $ | 220,115 | | | | | $ | (113,705) | | |
|
Unrealized derivative loss
(gain) |
| | | | 158,735 | | | | | | 377,035 | | | | | | 115,161 | | | | | | (10,329) | | | | | | 158,735 | | | | | | 115,161 | | |
|
Forward month gas derivative
settlement(1) |
| | | | 35,316 | | | | | | 49,967 | | | | | | 15,406 | | | | | | (5,489) | | | | | | 35,316 | | | | | | 15,406 | | |
|
Accretion of asset retirement obligation
|
| | | | 8,874 | | | | | | 7,439 | | | | | | 10,030 | | | | | | 3,211 | | | | | | 10,647 | | | | | | 13,616 | | |
|
Accretion of right of use liabilities
|
| | | | 480 | | | | | | 249 | | | | | | 330 | | | | | | 336 | | | | | | 480 | | | | | | 330 | | |
|
Depreciation, depletion, and amortization
|
| | | | 76,677 | | | | | | 65,509 | | | | | | 88,473 | | | | | | 86,644 | | | | | | 101,319 | | | | | | 148,205 | | |
|
Exploration and impairment expense
|
| | | | — | | | | | | 34 | | | | | | 34 | | | | | | 560 | | | | | | — | | | | | | 34 | | |
|
Change in contingent consideration liabilities
|
| | | | 31,089 | | | | | | 193,350 | | | | | | 194,968 | | | | | | (7,135) | | | | | | 31,089 | | | | | | 194,968 | | |
| | | |
Nine Months Ended September 30,
|
| |
Year Ended December 31,
|
| |
Pro Forma
Nine Months Ended September 30, 2022 (in thousands) |
| |
Pro Forma
Year Ended December 31, 2021 (in thousands) |
| ||||||||||||||||||||||||
| | | |
2022
|
| |
2021
|
| |
2021
|
| |
2020
|
| ||||||||||||||||||||||||
| | | |
(in thousands)
|
| |
(in thousands)
|
| | | | | | | | | | | | | ||||||||||||||||||
|
Interest expense
|
| | | | 22,334 | | | | | | 314 | | | | | | 2,134 | | | | | | 1,713 | | | | | | 44,225 | | | | | | 51,018 | | |
|
Income tax (benefit)
expense |
| | | | (2,989) | | | | | | (107,918) | | | | | | (40,526) | | | | | | 38,982 | | | | | | 16,722 | | | | | | (34,325) | | |
|
Equity-based compensation expense
|
| | | | 29,320 | | | | | | 22,838 | | | | | | 30,387 | | | | | | — | | | | | | 29,320 | | | | | | 30,387 | | |
|
Bargain purchase gain
|
| | | | (163,653) | | | | | | — | | | | | | — | | | | | | — | | | | | | (163,653) | | | | | | — | | |
|
Income from equity affiliates
|
| | | | (14,486) | | | | | | — | | | | | | (910) | | | | | | — | | | | | | (14,486) | | | | | | (910) | | |
|
Early settlement of derivative contracts
|
| | | | 101,284 | | | | | | — | | | | | | — | | | | | | — | | | | | | 101,284 | | | | | | — | | |
|
Adjusted EBITDAX
|
| | | $ | 437,105 | | | | | $ | 247,748 | | | | | $ | 281,024 | | | | | $ | 65,147 | | | | | $ | 571,113 | | | | | $ | 420,185 | | |
| | |||||||||||||||||||||||||||||||||||||
| | | |
Nine Months Ended
September 30, |
| |
Year Ended
December 31, |
| | ||||||||||||||||||||
| | | |
2022
|
| |
2021
|
| |
2021
|
| |
2020
|
| | ||||||||||||||
| | | |
(in thousands)
|
| ||||||||||||||||||||||||
|
Net cash provided by (used in) operating activities
|
| | | $ | 231,076 | | | | | $ | 274,489 | | | | | $ | 358,133 | | | | | $ | (7,405) | | | | ||
|
Changes in operating assets and liabilities
|
| | | | (8,380) | | | | | | (162,671) | | | | | | (126,862) | | | | | | 74,536 | | | | ||
|
Cash paid for capital expenditures and settlement of contingent considerations (excluding leasehold costs and acquisitions)
|
| | | | (79,726) | | | | | | (22,709) | | | | | | (66,181) | | | | | | (10,527) | | | | ||
|
Adjusted Free Cash Flow(1)
|
| | | $ | 142,970 | | | | | $ | 89,109 | | | | | $ | 165,090 | | | | | $ | 56,604 | | | | ||
| | | |
September 30,
2022 |
| |
December 31,
|
| ||||||||||||
| | | |
2021
|
| |
2020
|
| ||||||||||||
| Estimated proved developed reserves: | | | | | | | | | | | | | | | | | | | |
|
Natural gas (MMcf)
|
| | | | 3,857,807 | | | | | | 2,494,926 | | | | | | 1,893,161 | | |
|
Producing
|
| | | | 3,466,758 | | | | | | 2,346,712 | | | | | | 1,893,161 | | |
|
Non-producing
|
| | | | 391,049 | | | | | | 148,214 | | | | | | 0 | | |
|
Natural gas liquids (MBbls)
|
| | | | 177,692 | | | | | | 151,433 | | | | | | 107,234 | | |
|
Producing
|
| | | | 163,830 | | | | | | 142,961 | | | | | | 107,234 | | |
|
Non-producing
|
| | | | 13,862 | | | | | | 8,472 | | | | | | 0 | | |
|
Oil (MBbls)
|
| | | | 1,123 | | | | | | 867 | | | | | | 723 | | |
|
Producing
|
| | | | 1,019 | | | | | | 876 | | | | | | 723 | | |
|
Non-producing
|
| | | | 104 | | | | | | 0 | | | | | | 0 | | |
|
Total estimated proved developed reserves (MMcfe)
|
| | | | 4,930,696 | | | | | | 3,408,723 | | | | | | 2,540,901 | | |
|
Producing
|
| | | | 4,455,853 | | | | | | 3,209,679 | | | | | | 2,540,901 | | |
|
Non-producing
|
| | | | 474,843 | | | | | | 199,044 | | | | | | 0 | | |
|
Standardized Measure (millions)
|
| | | $ | 6,150 | | | | | $ | 2,119 | | | | | $ | 504 | | |
|
PV-10 (millions)(2)(3)
|
| | | $ | 7,844 | | | | | $ | 2,672 | | | | | $ | 552 | | |
| Estimated proved undeveloped reserves: | | | | | | | | | | | | | | | | | | | |
|
Natural gas (MMcf)
|
| | | | 1,140,466 | | | | | | 950,359 | | | | | | 92,373 | | |
| | | |
September 30,
2022 |
| |
December 31,
|
| ||||||||||||
| | | |
2021
|
| |
2020
|
| ||||||||||||
|
Natural gas liquids (MBbls)
|
| | | | 42,896 | | | | | | 13,722 | | | | | | ― | | |
|
Oil (MBbls)
|
| | | | 620 | | | | | | 58 | | | | | | ― | | |
|
Total estimated proved undeveloped reserves (MMcfe)(4)(5)
|
| | | | 1,401,561 | | | | | | 1,033,040 | | | | | | 92,373 | | |
|
Standardized Measure (millions)
|
| | | $ | 1,498 | | | | | $ | 294 | | | | | $ | 6 | | |
|
PV-10 (millions)(2)(6)
|
| | | $ | 1,974 | | | | | $ | 403 | | | | | $ | 9 | | |
| Estimated proved reserves: | | | | | | | | | | | | | | | | | | | |
|
Natural gas (MMcf)
|
| | | | 4,998,273 | | | | | | 3,445,285 | | | | | | 1,985,534 | | |
|
Natural gas liquids (MBbls)
|
| | | | 220,587 | | | | | | 165,155 | | | | | | 107,234 | | |
|
Oil (MBbls)
|
| | | | 1,743 | | | | | | 925 | | | | | | 723 | | |
|
Total estimated proved reserves (MMcfe)
|
| | | | 6,332,257 | | | | | | 4,441,763 | | | | | | 2,633,274 | | |
|
Standardized Measure (millions)
|
| | | $ | 7,648 | | | | | $ | 2,413 | | | | | $ | 510 | | |
|
PV-10 (millions)(2)(7)
|
| | | $ | 9,818 | | | | | $ | 3,074 | | | | | $ | 561 | | |
| Estimated probable developed reserves: | | | | | | | | | | | | | | | | | | | |
|
Natural gas (MMcf)
|
| | | | 360,211 | | | | | | ― | | | | | | ― | | |
|
Natural gas liquids (MBbls)
|
| | | | 25,886 | | | | | | ― | | | | | | ― | | |
|
Oil (MBbls)
|
| | | | ― | | | | | | ― | | | | | | | | |
|
Total estimated probable developed reserves (MMcfe)(5)(8)
|
| | | | 515,527 | | | | | | ― | | | | | | ― | | |
|
Standardized Measure (millions)
|
| | | $ | 303 | | | | | $ | ― | | | | | $ | ― | | |
|
PV-10 (millions)(2)(9)
|
| | | $ | 401 | | | | | $ | ― | | | | | $ | ― | | |
| Estimated probable undeveloped reserves: | | | | | | | | | | | | | | | | | | | |
|
Natural gas (MMcf)
|
| | | | 580,321 | | | | | | 522,422 | | | | | | 61,884 | | |
|
Natural gas liquids (MBbls)
|
| | | | 41,231 | | | | | | 31,227 | | | | | | ― | | |
|
Oil (MBbls)
|
| | | | 1,625 | | | | | | 486 | | | | | | ― | | |
|
Total estimated probable undeveloped reserves (MMcfe)(5)(8)
|
| | | | 837,462 | | | | | | 712,725 | | | | | | 61,884 | | |
|
Standardized Measure (millions)
|
| | | $ | 548 | | | | | $ | 146 | | | | | $ | ― | | |
|
PV-10 (millions)(2)(10)
|
| | | $ | 725 | | | | | $ | 202 | | | | | $ | ― | | |
| Estimated probable reserves: | | | | | | | | | | | | | | | | | | | |
|
Natural gas (MMcf)
|
| | | | 940,532 | | | | | | 522,442 | | | | | | 61,884 | | |
|
Natural gas liquids (MBbls)
|
| | | | 67,117 | | | | | | 31,227 | | | | | | — | | |
|
Oil (MBbls)
|
| | | | 1,625 | | | | | | 486 | | | | | | — | | |
|
Total estimated probable reserves (MMcfe)(5)(8)
|
| | | | 1,352,989 | | | | | | 712,725 | | | | | | 61,884 | | |
|
Standardized Measure (millions)
|
| | | $ | 851 | | | | | $ | 146 | | | | | $ | — | | |
|
PV-10 (millions)(2)(11)
|
| | | $ | 1,126 | | | | | $ | 202 | | | | | $ | — | | |
| Estimated possible developed reserves: | | | | | | | | | | | | | | | | | | | |
|
Natural gas (MMcf)
|
| | | | 107,126 | | | | | | — | | | | | | — | | |
|
Natural gas liquids (MBbls)
|
| | | | 9,999 | | | | | | — | | | | | | — | | |
|
Oil (MBbls)
|
| | | | — | | | | | | — | | | | | | | | |
|
Total estimated possible developed reserves (MMcfe)(5)(8)
|
| | | | 167,119 | | | | | | — | | | | | | — | | |
|
Standardized Measure (millions)
|
| | | $ | 73 | | | | | $ | — | | | | | $ | — | | |
|
PV-10 (millions)(2)(12)
|
| | | $ | 96 | | | | | $ | — | | | | | $ | — | | |
| Estimated possible undeveloped reserves: | | | | | | | | | | | | | | | | | | | |
|
Natural gas (MMcf)
|
| | | | 445,442 | | | | | | 381,941 | | | | | | — | | |
| | | |
September 30,
2022 |
| |
December 31,
|
| ||||||||||||
| | | |
2021
|
| |
2020
|
| ||||||||||||
|
Natural gas liquids (MBbls)
|
| | | | 25,122 | | | | | | 32,047 | | | | | | — | | |
|
Oil (MBbls)
|
| | | | 1,364 | | | | | | 1,841 | | | | | | — | | |
|
Total estimated possible undeveloped reserves (MMcfe)(5)(8)
|
| | | | 604,358 | | | | | | 585,269 | | | | | | — | | |
|
Standardized Measure (millions)
|
| | | $ | 252 | | | | | $ | 51 | | | | | $ | — | | |
|
PV-10 (millions)(2)(13)
|
| | | $ | 336 | | | | | $ | 75 | | | | | $ | — | | |
| Estimated possible reserves: | | | | | | | | | | | | | | | | | | | |
|
Natural gas (MMcf)
|
| | | | 552,568 | | | | | | 381,941 | | | | | | — | | |
|
Natural gas liquids (MBbls)
|
| | | | 35,121 | | | | | | 32,047 | | | | | | — | | |
|
Oil (MBbls)
|
| | | | 1,364 | | | | | | 1,841 | | | | | | — | | |
|
Total estimated possible reserves (MMcfe)(5)(8)
|
| | | | 771,477 | | | | | | 585,269 | | | | | | — | | |
|
Standardized Measure (millions)
|
| | | $ | 325 | | | | | $ | 51 | | | | | $ | — | | |
|
PV-10 (millions)(2)(14)
|
| | | $ | 432 | | | | | $ | 75 | | | | | $ | — | | |
| | | |
September 30,
2022 |
| |
December 31,
|
| ||||||||||||
| | | |
2021
|
| |
2020
|
| ||||||||||||
|
PV-10 (millions)
|
| | | $ | 7,844 | | | | | $ | 2,672 | | | | | $ | 552 | | |
|
Present value of future income taxes discounted at 10%
|
| | | | (1,694) | | | | | | (553) | | | | | | (48) | | |
|
Standardized Measure
|
| | | $ | 6,150 | | | | | $ | 2,119 | | | | | $ | 504 | | |
| | | |
September 30,
2022 |
| |
December 31,
|
| ||||||||||||
| | | |
2021
|
| |
2020
|
| ||||||||||||
|
PV-10 (millions)
|
| | | $ | 1,974 | | | | | $ | 403 | | | | | $ | 9 | | |
|
Present value of future income taxes discounted at 10%
|
| | | | (476) | | | | | | (108) | | | | | | (3) | | |
|
Standardized Measure
|
| | | $ | 1,498 | | | | | $ | 294 | | | | | $ | 6 | | |
| | | |
September 30,
2022 |
| |
December 31,
|
| ||||||||||||
| | | |
2021
|
| |
2020
|
| ||||||||||||
|
PV-10 (millions)
|
| | | $ | 9,818 | | | | | $ | 3,074 | | | | | $ | 561 | | |
|
Present value of future income taxes discounted at 10%
|
| | | | (2,170) | | | | | | (661) | | | | | | (51) | | |
|
Standardized Measure
|
| | | $ | 7,648 | | | | | $ | 2,413 | | | | | $ | 510 | | |
| | | |
September 30,
2022 |
| |
December 31,
|
| ||||||||||||
| | | |
2021
|
| |
2020
|
| ||||||||||||
|
PV-10 (millions)
|
| | | $ | 401 | | | | | $ | — | | | | | $ | — | | |
|
Present value of future income taxes discounted at 10%
|
| | | | (98) | | | | | | — | | | | | | — | | |
|
Standardized Measure
|
| | | $ | 303 | | | | | $ | — | | | | | $ | — | | |
| | | |
September 30,
2022 |
| |
December 31,
|
| ||||||||||||
| | | |
2021
|
| |
2020
|
| ||||||||||||
|
PV-10 (millions)
|
| | | $ | 725 | | | | | $ | 202 | | | | | $ | — | | |
|
Present value of future income taxes discounted at 10%
|
| | | | (177) | | | | | | (56) | | | | | | — | | |
|
Standardized Measure
|
| | | $ | 548 | | | | | $ | 146 | | | | | $ | — | | |
| | | |
September 30,
2022 |
| |
December 31,
|
| ||||||||||||
| | | |
2021
|
| |
2020
|
| ||||||||||||
|
PV-10 (millions)
|
| | | $ | 1,126 | | | | | $ | 202 | | | | | $ | — | | |
|
Present value of future income taxes discounted at 10%
|
| | | | (275) | | | | | | (56) | | | | | | — | | |
|
Standardized Measure
|
| | | $ | 851 | | | | | $ | 146 | | | | | $ | — | | |
| | | |
September 30,
2022 |
| |
December 31,
|
| ||||||||||||
| | | |
2021
|
| |
2020
|
| ||||||||||||
|
PV-10 (millions)
|
| | | $ | 96 | | | | | $ | — | | | | | $ | — | | |
|
Present value of future income taxes discounted at 10%
|
| | | | (23) | | | | | | — | | | | | | — | | |
|
Standardized Measure
|
| | | $ | 73 | | | | | $ | — | | | | | $ | — | | |
| | | |
September 30,
2022 |
| |
December 31,
|
| ||||||||||||
| | | |
2021
|
| |
2020
|
| ||||||||||||
|
PV-10 (millions)
|
| | | $ | 336 | | | | | $ | 75 | | | | | $ | — | | |
|
Present value of future income taxes discounted at 10%
|
| | | | (85) | | | | | | (24) | | | | | | — | | |
|
Standardized Measure
|
| | | $ | 252 | | | | | $ | 51 | | | | | $ | — | | |
| | | |
September 30,
2022 |
| |
December 31,
|
| ||||||||||||
| | | |
2021
|
| |
2020
|
| ||||||||||||
|
PV-10 (millions)
|
| | | $ | 432 | | | | | $ | 75 | | | | | $ | — | | |
|
Present value of future income taxes discounted at 10%
|
| | | | (107) | | | | | | (24) | | | | | | — | | |
|
Standardized Measure
|
| | | $ | 325 | | | | | $ | 51 | | | | | $ | — | | |
| | | |
September 30,
2022 |
| |||
| Estimated proved developed reserves at NYMEX Strip Pricing: | | | | | | | |
|
Natural gas (MMcf)
|
| | | | 3,664,049 | | |
|
Producing
|
| | | | 3,275,209 | | |
|
Non-producing
|
| | | | 388,839 | | |
|
Natural gas liquids (MBbls)
|
| | | | 167,260 | | |
|
Producing
|
| | | | 153,398 | | |
|
Non-producing
|
| | | | 13,862 | | |
|
Oil (MBbls)
|
| | | | 1,059 | | |
|
Producing
|
| | | | 955 | | |
|
Non-producing
|
| | | | 104 | | |
|
Total estimated proved developed reserves (MMcfe)
|
| | | | 4,673,960 | | |
|
Producing
|
| | | | 4,201,327 | | |
|
Non-producing
|
| | | | 472,633 | | |
|
Standardized Measure (millions)
|
| | | | 3,846 | | |
|
PV-10 (millions)(1)
|
| | | | 4,847 | | |
| Estimated proved undeveloped reserves at NYMEX Strip Pricing: | | | | | | | |
|
Natural gas (MMcf)
|
| | | | 1,139,781 | | |
|
Natural gas liquids (MBbls)
|
| | | | 42,895 | | |
|
Oil (MBbls)
|
| | | | 620 | | |
|
Total estimated proved undeveloped reserves (MMcfe)(2)(3)
|
| | | | 1,400,871 | | |
|
Standardized Measure (millions)
|
| | | | 717 | | |
|
PV-10 (millions)(4)
|
| | | | 960 | | |
| Estimated proved reserves at NYMEX Strip Pricing: | | | | | | | |
|
Natural gas (MMcf)
|
| | | | 4,803,830 | | |
|
Natural gas liquids (MBbls)
|
| | | | 210,155 | | |
|
Oil (MBbls)
|
| | | | 1,679 | | |
|
Total estimated proved reserves (MMcfe)
|
| | | | 6,074,831 | | |
|
Standardized Measure (millions)
|
| | | $ | 4,563 | | |
|
PV-10 (millions)(5)
|
| | | $ | 5,807 | | |
| Estimated probable developed reserves at NYMEX Strip Pricing: | | | | | | | |
|
Natural gas (MMcf)
|
| | | | 349,341 | | |
|
Natural gas liquids (MBbls)
|
| | | | 25,819 | | |
|
Oil (MBbls)
|
| | | | | | |
|
Total estimated probable developed reserves (MMcfe)(3)(6)
|
| | | | 504,256 | | |
|
Standardized Measure (millions)
|
| | | $ | 122 | | |
|
PV-10 (millions)(7)
|
| | | $ | 167 | | |
| Estimated probable undeveloped reserves at NYMEX Strip Pricing: | | | | | | | |
|
Natural gas (MMcf)
|
| | | | 573,946 | | |
|
Natural gas liquids (MBbls)
|
| | | | 40,845 | | |
|
Oil (MBbls)
|
| | | | 1,605 | | |
|
Total estimated probable undeveloped reserves (MMcfe)(3)(6)
|
| | | | 828,644 | | |
|
Standardized Measure (millions)
|
| | | $ | 184 | | |
|
PV-10 (millions)(8)
|
| | | $ | 256 | | |
| | | |
September 30,
2022 |
| |||
| Estimated probable reserves at NYMEX Strip Pricing: | | | | | | | |
|
Natural gas (MMcf)
|
| | | | 923,286 | | |
|
Natural gas liquids (MBbls)
|
| | | | 66,664 | | |
|
Oil (MBbls)
|
| | | | 1,605 | | |
|
Total estimated probable reserves (MMcfe)(3)(6)
|
| | | | 1,332,901 | | |
|
Standardized Measure (millions)
|
| | | $ | 306 | | |
|
PV-10 (millions)(9)
|
| | | $ | 423 | | |
| Estimated possible developed reserves at NYMEX Strip Pricing: | | | | | | | |
|
Natural gas (MMcf)
|
| | | | 105,234 | | |
|
Natural gas liquids (MBbls)
|
| | | | 9,999 | | |
|
Oil (MBbls)
|
| | | | — | | |
|
Total estimated possible developed reserves (MMcfe)(3)(6)
|
| | | | 165,227 | | |
|
Standardized Measure (millions)
|
| | | $ | 33 | | |
|
PV-10 (millions)(10)
|
| | | $ | 44 | | |
| Estimated possible undeveloped reserves at NYMEX Strip Pricing: | | | | | | | |
|
Natural gas (MMcf)
|
| | | | 416,309 | | |
|
Natural gas liquids (MBbls)
|
| | | | 20,700 | | |
|
Oil (MBbls)
|
| | | | 1,128 | | |
|
Total estimated possible undeveloped reserves (MMcfe)(3)(6)
|
| | | | 547,281 | | |
|
Standardized Measure (millions)
|
| | | $ | 66 | | |
|
PV-10 (millions)(11)
|
| | | $ | 95 | | |
| Estimated possible reserves at NYMEX Strip Pricing: | | | | | | | |
|
Natural gas (MMcf)
|
| | | | 521,542 | | |
|
Natural gas liquids (MBbls)
|
| | | | 30,699 | | |
|
Oil (MBbls)
|
| | | | 1,128 | | |
|
Total estimated possible reserves (MMcfe)(3)(6)
|
| | | | 712,508 | | |
|
Standardized Measure (millions)
|
| | | $ | 99 | | |
|
PV-10 (millions)(12)
|
| | | $ | 139 | | |
| | | |
September 30,
2022 |
| |||
|
PV-10 (millions)
|
| | | $ | 4,847 | | |
|
Present value of future income taxes discounted at 10%
|
| | | | (1,001) | | |
|
Standardized Measure
|
| | | $ | 3,846 | | |
| | | |
September 30,
2022 |
| |||
|
PV-10 (millions)
|
| | | $ | 960 | | |
|
Present value of future income taxes discounted at 10%
|
| | | | (243) | | |
|
Standardized Measure
|
| | | $ | 717 | | |
| | | |
September 30,
2022 |
| |||
|
PV-10 (millions)
|
| | | $ | 5,807 | | |
|
Present value of future income taxes discounted at 10%
|
| | | | (1,244) | | |
|
Standardized Measure
|
| | | $ | 4,563 | | |
| | | |
September 30,
2022 |
| |||
|
PV-10 (millions)
|
| | | $ | 167 | | |
|
Present value of future income taxes discounted at 10%
|
| | | | (45) | | |
|
Standardized Measure
|
| | | $ | 122 | | |
| | | |
September 30,
2022 |
| |||
|
PV-10 (millions)
|
| | | $ | 256 | | |
|
Present value of future income taxes discounted at 10%
|
| | | | (72) | | |
|
Standardized Measure
|
| | | $ | 184 | | |
| | | |
September 30,
2022 |
| |||
|
PV-10 (millions)
|
| | | $ | 423 | | |
|
Present value of future income taxes discounted at 10%
|
| | | | (117) | | |
|
Standardized Measure
|
| | | $ | 306 | | |
| | | |
September 30,
2022 |
| |||
|
PV-10 (millions)
|
| | | $ | 44 | | |
|
Present value of future income taxes discounted at 10%
|
| | | | (11) | | |
|
Standardized Measure
|
| | | $ | 33 | | |
| | | |
September 30,
2022 |
| |||
|
PV-10 (millions)
|
| | | $ | 95 | | |
|
Present value of future income taxes discounted at 10%
|
| | | | (29) | | |
|
Standardized Measure
|
| | | $ | 66 | | |
| | | |
September 30,
2022 |
| |||
|
PV-10 (millions)
|
| | | $ | 139 | | |
|
Present value of future income taxes discounted at 10%
|
| | | | (40) | | |
|
Standardized Measure
|
| | | $ | 99 | | |
| | | |
As of September 30, 2022
|
| |||||||||
| | | |
Actual
|
| |
As Adjusted
|
| ||||||
| | | |
(in thousands)
|
| |||||||||
|
Cash and cash equivalents, including restricted cash(1)
|
| | | $ | 184,616 | | | | | $ | | | |
| Debt: | | | | | | | | | | | | | |
|
Notes payable to related party(2)
|
| | | $ | 75,000 | | | | | $ | | | |
|
Term Loan Credit Agreement
|
| | | | 563,703 | | | | | | | | |
|
Credit facilities
|
| | | | 130,000 | | | | | | | | |
|
Total debt(3)
|
| | | $ | 768,703 | | | | | $ | | | |
| Mezzanine equity(4): | | | | | | | | | | | | | |
|
Common stock-minority ownership puttable shares
|
| | | $ | 68,102 | | | | | $ | | | |
|
Equity-based compensation
|
| | | | 91,128 | | | | | | | | |
|
Total mezzanine equity
|
| | | $ | 159,230 | | | | | $ | | | |
| Stockholders’ equity: | | | | | | | | | | | | | |
|
Common stock, par value $.01 per share; 300,000,000 authorized shares;
117,325,797 shares issued and outstanding, actual; and shares issued and outstanding, as adjusted(5) |
| | | $ | 1,132 | | | | | $ | | | |
|
Treasury stock, shares at cost; 386,000 shares
|
| | | | (3,974) | | | | | | | | |
|
Additional paid-in capital
|
| | | | 886,460 | | | | | | | | |
|
Accumulated deficit
|
| | | | (105,568) | | | | | | | | |
|
Total stockholders’ equity
|
| | | $ | 778,050 | | | | | $ | | | |
|
Total capitalization
|
| | | $ | 1,890,599 | | | | | $ | | | |
| |
Assumed initial public offering price per share
|
| | | | | | | | | $ | | | |
| |
Net tangible book value per share as of September 30, 2022
|
| | | $ | | | | | | | | | |
| |
Increase in net tangible book value per share attributable to new investors in this offering
|
| | | | | | | | | | | | |
| |
Less: As adjusted net tangible book value per share of common stock after giving effect to this offering
|
| | | | | | | | | | | | |
| |
Dilution in as adjusted net tangible book value per share to new investors from this offering
|
| | | | | | | | | $ | | | |
| | | |
SHARES
|
| |
TOTAL CONSIDERATION
|
| |
AVERAGE
PRICE PER SHARE |
| |||||||||||||||||||||
| | | |
NUMBER
|
| |
PERCENT
|
| |
AMOUNT
|
| |
PERCENT
|
| ||||||||||||||||||
|
Existing stockholders
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Existing common stock stockholders
|
| | | | | | | | | | % | | | | | | | | | | | | % | | | | | $ | | | |
|
Existing mezzanine equity stockholders(1)
|
| | | | | | | | | % | | | | | | | | | | | % | | | | | $ | | | |||
|
Total existing stockholders
|
| | | | | | | | | | % | | | | | | | | | | | | % | | | | | $ | | | |
|
New investors
|
| | | | | | | | | | % | | | | | | | | | | | | % | | | | | | | | |
|
Total
|
| | | | | | | | | | 100% | | | | | $ | | | | | | 100% | | | | | $ | | | | |
| | | |
For the
Nine Months Ended September 30, 2022 |
| |
For the
Six Months Ended June 30, 2022 |
| | | | | | | |||||||||||||||||||||||||||
| | | |
BKV
Corporation Historical |
| |
2022 Barnett
Assets Historical |
| |
Transaction
Accounting Adjustments(1) |
| | | | |
Financing
Adjustments |
| | | | |
Pro Forma
Combined |
| | |||||||||||||||||
| Revenues and other operating income / Revenues | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Natural gas, NGL and oil sales
|
| | | $ | 1,224,473 | | | | | $ | — | | | | | $ | 219,232 | | | |
(aa)
|
| | | $ | — | | | | | | | | $ | 1,443,705 | | | | | |
|
Midstream revenues
|
| | | | 6,080 | | | | | | — | | | | | | 3,621 | | | |
(aa)
|
| | | | — | | | | | | | | | 9,701 | | | | | |
|
Derivative losses, net
|
| | | | (720,312) | | | | | | — | | | | | | — | | | | | | | | | — | | | | | | | | | (720,312) | | | | | |
|
Marketing revenues
|
| | | | 7,197 | | | | | | — | | | | | | — | | | | | | | | | — | | | | | | | | | 7,197 | | | | | |
|
Other
|
| | | | 2,008 | | | | | | — | | | | | | 248 | | | |
(aa)
|
| | | | — | | | | | | | | | 2,256 | | | | | |
|
Oil and condensate, gas and NGL sales
|
| | | | — | | | | | | 219,232 | | | | | | (219,232) | | | |
(aa)
|
| | | | — | | | | | | | | | — | | | | | |
|
Midstream operating revenues
|
| | | | — | | | | | | 3,621 | | | | | | (3,621) | | | |
(aa)
|
| | | | — | | | | | | | | | — | | | | | |
|
Other revenues
|
| | | | — | | | | | | 248 | | | | | | (248) | | | |
(aa)
|
| | | | — | | | | | | | | | — | | | | | |
|
Total revenues and other operating income / Total revenues
|
| | | | 519,446 | | | | | | 223,101 | | | | | | — | | | | | | | | | — | | | | | | | | | 742,547 | | | | | |
| Operating expenses / Direct operating expenses | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Lease operating and workover
|
| | | | 86,870 | | | | | | — | | | | | | 58,176 | | | |
(aa)
|
| | | | — | | | | | | | | | 145,046 | | | | | |
|
Taxes other than income
|
| | | | 86,164 | | | | | | — | | | | | | 10,696 | | | |
(aa)
|
| | | | — | | | | | | | | | 96,860 | | | | | |
|
Gathering and transportation
|
| | | | 153,281 | | | | | | — | | | | | | 25,321 | | | |
(aa)
|
| | | | — | | | | | | | | | 178,602 | | | | | |
|
Accretion of asset retirement obligation
|
| | | | 8,874 | | | | | | — | | | | | | 1,773 | | | |
(dd)
|
| | | | — | | | | | | | | | 10,647 | | | | | |
|
Depreciation, depletion and amortization
|
| | | | 68,606 | | | | | | — | | | | | | 24,642 | | | |
(cc)
|
| | | | — | | | | | | | | | 93,248 | | | | | |
|
General and administrative
|
| | | | 107,341 | | | | | | — | | | | | | (5,100) | | | |
(bb)
|
| | | | — | | | | | | | | | 102,241 | | | | | |
|
Accretion of right of use liabilities
|
| | | | 190 | | | | | | — | | | | | | — | | | | | | | | | — | | | | | | | | | 190 | | | | | |
|
Lease operating expense
|
| | | | — | | | | | | 47,456 | | | | | | (47,456) | | | |
(aa)
|
| | | | — | | | | | | | | | — | | | | | |
|
Overhead costs
|
| | | | — | | | | | | 10,720 | | | | | | (10,720) | | | |
(aa)
|
| | | | — | | | | | | | | | — | | | | | |
|
Cost of goods sold
|
| | | | — | | | | | | 25,321 | | | | | | (25,321) | | | |
(aa)
|
| | | | — | | | | | | | | | — | | | | | |
|
Production and property taxes
|
| | | | — | | | | | | 10,696 | | | | | | (10,696) | | | |
(aa)
|
| | | | — | | | | | | | | | — | | | | | |
|
Total operating expenses / Total direct operating expenses
|
| | | | 511,326 | | | | | | 94,193 | | | | | | 21,315 | | | | | | | | | — | | | | | | | | | 626,834 | | | | | |
|
Income (loss) from operations / Revenues in excess of direct operating expenses
|
| | | | 8,120 | | | | | | 128,908 | | | | | | (21,315) | | | | | | | | | — | | | | | | | | | 115,713 | | | | | |
| Other income and expense | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Loss on contingent consideration liabilities
|
| | | | (31,089) | | | | | | — | | | | | | — | | | | | | | | | — | | | | | | | | | (31,089) | | | | | |
|
Interest expense
|
| | | | (22,334) | | | | | | — | | | | | | — | | | | | | | | | (21,891) | | | |
(ee)
|
| | | | (44,225) | | | | | |
|
Other income
|
| | | | 1,051 | | | | | | — | | | | | | — | | | | | | | | | — | | | | | | | | | 1,051 | | | | | |
|
Bargain purchase gain
|
| | | | 163,653 | | | | | | — | | | | | | — | | | | | | | | | — | | | | | | | | | 163,653 | | | | | |
|
Gain on settlement of litigation
|
| | | | 16,866 | | | | | | — | | | | | | — | | | | | | | | | — | | | | | | | | | 16,866 | | | | | |
|
Earnings from equity affiliate
|
| | | | 14,486 | | | | | | — | | | | | | — | | | | | | | | | — | | | | | | | | | 14,486 | | | | | |
|
Interest income
|
| | | | 382 | | | | | | — | | | | | | — | | | | | | | | | — | | | | | | | | | 382 | | | | | |
|
Income (loss) from continuing operations before income taxes
|
| | | | 151,135 | | | | | | 128,908 | | | | | | (21,315) | | | | | | | | | (21,891) | | | | | | | | | 236,837 | | | | | |
|
Income tax benefit (expense)
|
| | | | 2,989 | | | | | | — | | | | | | (24,746) | | | |
(ff)
|
| | | | 5,035 | | | |
(gg)
|
| | | | (16,722) | | | | | |
|
Net income (loss) and comprehensive income (loss) attributable to BKV Corporation
|
| | | | 154,124 | | | | | | 128,908 | | | | | | (46,061) | | | | | | | | | (16,856) | | | | | | | | | 220,115 | | | | | |
|
Less accretion of preferred stock redemption value
|
| | | | — | | | | | | — | | | | | | — | | | | | | | | | — | | | | | | | | | — | | | | | |
|
Less preferred stock dividends
|
| | | | — | | | | | | — | | | | | | — | | | | | | | | | — | | | | | | | | | — | | | | | |
|
Less deemed dividend on redemption of preferred stock
|
| | | | — | | | | | | — | | | | | | — | | | | | | | | | — | | | | | | | | | — | | | | | |
|
Net income (loss) and comprehensive income (loss) attributable to common stockholders
|
| | | $ | 154,124 | | | | | $ | 128,908 | | | | | $ | (46,061) | | | | | | | | $ | (16,856) | | | | | | | | $ | 220,115 | | | | | |
|
Net income (loss) and comprehensive income (loss) per common share:
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Basic
|
| | | $ | 1.31 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | $ | 1.88 | | | |
(hh)
|
|
|
Diluted
|
| | | $ | 1.24 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | $ | 1.77 | | | |
(hh)
|
|
| Weighted average number of common shares outstanding: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Basic
|
| | | | 117,316 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 117,316 | | | | | |
|
Diluted
|
| | | | 124,597 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 124,597 | | | | | |
| | | |
BKV
Corporation Historical |
| |
2022 Barnett
Assets Historical |
| |
Transaction
Accounting Adjustments(1) |
| | | | |
Financing
Adjustments |
| | | | |
Pro Forma
Combined |
| | | | |||||||||||||||
| Revenues and other operating income / Revenues | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Natural gas, NGL and oil sales
|
| | | $ | 829,745 | | | | | $ | — | | | | | $ | 307,980 | | | |
(aa)
|
| | | $ | — | | | | | | | | $ | 1,137,725 | | | | | |
|
Non-operated midstream revenues
|
| | | | 6,917 | | | | | | — | | | | | | 6,244 | | | |
(aa)
|
| | | | — | | | | | | | | | 13,161 | | | | | |
|
Derivative (losses) gains, net
|
| | | | (383,847) | | | | | | — | | | | | | — | | | | | | | | | — | | | | | | | | | (383,847) | | | | | |
|
Marketing revenues
|
| | | | 52,616 | | | | | | — | | | | | | — | | | | | | | | | — | | | | | | | | | 52,616 | | | | | |
|
Other
|
| | | | 251 | | | | | | — | | | | | | 267 | | | |
(aa)
|
| | | | — | | | | | | | | | 518 | | | | | |
|
Oil and condensate, gas and NGL sales
|
| | | | — | | | | | | 307,980 | | | | | | (307,980) | | | |
(aa)
|
| | | | — | | | | | | | | | — | | | | | |
|
Midstream operating revenues
|
| | | | — | | | | | | 6,244 | | | | | | (6,244) | | | |
(aa)
|
| | | | — | | | | | | | | | — | | | | | |
|
Other revenues
|
| | | | — | | | | | | 267 | | | | | | (267) | | | |
(aa)
|
| | | | — | | | | | | | | | — | | | | | |
|
Total revenues and other operating income / Total revenues
|
| | | | 505,682 | | | | | | 314,491 | | | | | | — | | | | | | | | | — | | | | | | | | | 820,173 | | | | | |
|
Operating expenses / Direct operating expenses
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Lease operating and workover
|
| | | | 88,105 | | | | | | — | | | | | | 97,748 | | | |
(aa)
|
| | | | — | | | | | | | | | 185,853 | | | | | |
|
Taxes other than income
|
| | | | 45,650 | | | | | | — | | | | | | 21,667 | | | |
(aa)
|
| | | | — | | | | | | | | | 67,317 | | | | | |
|
Gathering and transportation
|
| | | | 173,587 | | | | | | — | | | | | | 49,795 | | | |
(aa)
|
| | | | — | | | | | | | | | 223,382 | | | | | |
|
Accretion of asset retirement obligation
|
| | | | 10,030 | | | | | | — | | | | | | 3,586 | | | |
(dd)
|
| | | | — | | | | | | | | | 13,616 | | | | | |
|
Depreciation, depletion and amortization
|
| | | | 81,986 | | | | | | — | | | | | | 59,732 | | | |
(cc)
|
| | | | — | | | | | | | | | 141,718 | | | | | |
|
Exploration and impairment
|
| | | | 34 | | | | | | — | | | | | | — | | | | | | | | | — | | | | | | | | | 34 | | | | | |
|
General and administrative
|
| | | | 85,740 | | | | | | — | | | | | | 6,120 | | | |
(bb)
|
| | | | — | | | | | | | | | 91,860 | | | | | |
|
Accretion of right of use liabilities
|
| | | | 227 | | | | | | — | | | | | | — | | | | | | | | | — | | | | | | | | | 227 | | | | | |
|
Lease operating expense
|
| | | | — | | | | | | 76,922 | | | | | | (76,922) | | | |
(aa)
|
| | | | — | | | | | | | | | — | | | | | |
|
Overhead costs
|
| | | | — | | | | | | 20,826 | | | | | | (20,826) | | | |
(aa)
|
| | | | — | | | | | | | | | — | | | | | |
|
Cost of goods sold
|
| | | | — | | | | | | 49,795 | | | | | | (49,795) | | | |
(aa)
|
| | | | — | | | | | | | | | — | | | | | |
|
Production and property taxes
|
| | | | — | | | | | | 21,667 | | | | | | (21,667) | | | |
(aa)
|
| | | | — | | | | | | | | | — | | | | | |
|
Total operating expenses / Total direct operating expenses
|
| | | | 485,359 | | | | | | 169,210 | | | | | | 69,438 | | | | | | | | | — | | | | | | | | | 724,007 | | | | | |
|
Income (loss) from operations / Revenues in excess of direct operating expenses
|
| | | | 20,323 | | | | | | 145,281 | | | | | | (69,438) | | | | | | | | | — | | | | | | | | | 96,166 | | | | | |
| Other income and expense | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
(Loss) gain on contingent consideration liabilities
|
| | | | (194,968) | | | | | | — | | | | | | — | | | | | | | | | — | | | | | | | | | (194,968) | | | | | |
|
Interest expense
|
| | | | (2,134) | | | | | | — | | | | | | — | | | | | | | | | (48,884) | | | |
(ee)
|
| | | | (51,018) | | | | | |
|
Other income
|
| | | | 872 | | | | | | — | | | | | | — | | | | | | | | | — | | | | | | | | | 872 | | | | | |
|
Income from equity affiliates
|
| | | | 910 | | | | | | — | | | | | | — | | | | | | | | | — | | | | | | | | | 910 | | | | | |
|
Interest income
|
| | | | 8 | | | | | | — | | | | | | — | | | | | | | | | — | | | | | | | | | 8 | | | | | |
|
Income (loss) from continuing operations before income taxes
|
| | | | (174,989) | | | | | | 145,281 | | | | | | (69,438) | | | | | | | | | (48,884) | | | | | | | | | (148,030) | | | | | |
|
Income tax benefit (expense)
|
| | | | 40,526 | | | | | | — | | | | | | (17,444) | | | |
(ff)
|
| | | | 11,243 | | | |
(gg)
|
| | | | 34,325 | | | | | |
|
Net income (loss) and comprehensive income (loss) attributable to BKV Corporation
|
| | | | (134,463) | | | | | | 145,281 | | | | | | (86,882) | | | | | | | | | (37,641) | | | | | | | | | (113,705) | | | | | |
|
Less accretion of preferred stock redemption value
|
| | | | (3,745) | | | | | | — | | | | | | — | | | | | | | | | — | | | | | | | | | (3,745) | | | | | |
|
Less preferred stock dividends
|
| | | | (9,900) | | | | | | — | | | | | | — | | | | | | | | | — | | | | | | | | | (9,900) | | | | | |
|
Less deemed dividend on redemption of preferred stock
|
| | | | (22,606) | | | | | | — | | | | | | — | | | | | | | | | — | | | | | | | | | (22,606) | | | | | |
|
Net income (loss) and comprehensive income (loss) attributable to common stockholders
|
| | | $ | (170,714) | | | | | $ | 145,281 | | | | | $ | (86,882) | | | | | | | | $ | (37,641) | | | | | | | | $ | (149,956) | | | | | |
| Net income (loss) and comprehensive income (loss) per common share: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Basic
|
| | | $ | (1.46) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | $ | (1.28) | | | |
(hh)
|
|
|
Diluted
|
| | | $ | (1.46) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | $ | (1.28) | | | |
(hh)
|
|
| Weighted average number of common shares outstanding: | | | | | | | | | | |||||||||||||||||||||||||||||||
|
Basic
|
| | | | 116,904 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 116,904 | | | | | |
|
Diluted
|
| | | | 116,904 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 116,904 | | | | | |
| |
Cash
|
| | | $ | 627,527 | | |
| |
Contingent consideration
|
| | | | 17,150 | | |
| |
Total consideration
|
| | | $ | 644,677 | | |
| | Assets acquired and liabilities assumed: | | | | | | | |
| |
Inventory
|
| | | | 150 | | |
| |
Natural gas properties-developed
|
| | | | 664,665 | | |
| |
Midstream assets
|
| | | | 254,813 | | |
| |
Other property and equipment
|
| | | | 8,907 | | |
| |
Property taxes
|
| | | | (9,039) | | |
| |
Deferred tax liability
|
| | | | (49,789) | | |
| |
Revenues payable
|
| | | | (16,612) | | |
| |
Asset retirement obligations
|
| | | | (44,765) | | |
| |
Total identifiable net assets
|
| | | $ | 808,330 | | |
| |
Bargain purchase gain
|
| | | $ | (163,653) | | |
| | | |
Useful Life
|
|
|
Pipelines
|
| |
40 years
|
|
|
Compressors
|
| |
25 years
|
|
|
Buildings
|
| |
39 years
|
|
|
Furniture, fixtures, equipment, vehicles and other
|
| |
5 years
|
|
|
Computer hardware and software
|
| |
3 – 5 years
|
|
|
(in thousands)
|
| |
Nine Months
Ended September 30, 2022 |
| |
Year Ended
December 31, 2021 |
| ||||||
| Term Loan Credit Agreement | | | | | | | | | | | | | |
|
Interest expense calculated for the period
|
| | | $ | 32,119 | | | | | $ | 42,943 | | |
|
Less: Actual interest expense included in historical financial statements
|
| | | | (11,648) | | | | | | — | | |
|
Adjustment related to incremental interest expense(1)
|
| | | $ | 20,471 | | | | | $ | 42,943 | | |
| $75 Million Loan Agreement | | | | | | | | | | | | | |
|
Interest expense calculated for the period
|
| | | $ | 3,014 | | | | | $ | 4,030 | | |
|
Less: Actual interest expense included in historical financial statements
|
| | | | (2,197) | | | | | | — | | |
|
Adjustment related to incremental interest expense
|
| | | $ | 817 | | | | | $ | 4,030 | | |
| | | |
Nine Months
Ended September 30, 2022 |
| |
Year Ended
December 31, 2021 |
| ||||||
| Pro forma basic EPS | | | | ||||||||||
| Numerator | | | | | | | | | | | | | |
|
Basic combined pro forma net income (loss) attributable to Company common stockholders
|
| | | $ | 220,115 | | | | | $ | (149,956) | | |
| Denominator | | | | | | | | | | | | | |
|
Historical basic weighted average Company shares outstanding
|
| | | | 117,316 | | | | | | 116,904 | | |
|
Pro forma basic weighted average Company shares outstanding
|
| | | | 117,316 | | | | | | 116,904 | | |
|
Pro forma basic net income (loss) per share attributable to Company common stockholders
|
| | | $ | 1.88 | | | | | $ | (1.28) | | |
| Pro forma diluted EPS | | | | | | | | | | | | | |
| Numerator | | | | | | | | | | | | | |
|
Diluted combined pro forma net income (loss) attributable to Company common stockholders
|
| | | $ | 220,115 | | | | | $ | (149,956) | | |
| Denominator | | | | | | | | | | | | | |
|
Historical diluted weighted average Company shares outstanding
|
| | | | 124,597 | | | | | | 116,904 | | |
|
Pro forma diluted weighted average Company shares outstanding
|
| | | | 124,597 | | | | | | 116,904 | | |
|
Pro forma diluted net income (loss) per share attributable to common Company stockholders
|
| | | $ | 1.77 | | | | | $ | (1.28) | | |
| | | |
Natural Gas
|
| |||||||||||||||||||||
| | | |
BKV Corporation
Historical (MMcf) |
| |
2022 Barnett Assets
Historical (MMcf) |
| |
Pro Forma
Combined (MMcf) |
| |
Pro Forma
Combined (MMcfe) |
| ||||||||||||
|
Balance December 31, 2020
|
| | | | 1,985,532 | | | | | | 661,897 | | | | | | 2,647,429 | | | | | | 2,647,429 | | |
|
Revision for previous estimates
|
| | | | 828,360 | | | | | | 359,153 | | | | | | 1,187,513 | | | | | | 1,187,513 | | |
|
Extensions and discoveries
|
| | | | 645,338 | | | | | | — | | | | | | 645,338 | | | | | | 645,338 | | |
|
Purchase of minerals in place
|
| | | | 19,511 | | | | | | — | | | | | | 19,511 | | | | | | 19,511 | | |
|
Improved recoveries
|
| | | | 152,597 | | | | | | — | | | | | | 152,597 | | | | | | 152,597 | | |
|
Production
|
| | | | (186,055) | | | | | | (74,076) | | | | | | (260,131) | | | | | | (260,131) | | |
|
Balance December 31, 2021
|
| | | | 3,445,283 | | | | | | 946,974 | | | | | | 4,392,257 | | | | | | 4,392,257 | | |
| Proved developed reserves as of: | | | | | | | | | | | | | | | | | | | | | |||||
|
December 31, 2020
|
| | | | 1,893,158 | | | | | | 661,897 | | | | | | 2,555,055 | | | | | | 2,555,055 | | |
|
December 31, 2021
|
| | | | 2,494,925 | | | | | | 946,974 | | | | | | 3,441,899 | | | | | | 3,441,899 | | |
| Proved undeveloped reserves as of: | | | | | | | | | | | | | | | | | | | | | |||||
|
December 31, 2020
|
| | | | 92,374 | | | | | | — | | | | | | 92,374 | | | | | | 92,374 | | |
|
December 31, 2021
|
| | | | 950,358 | | | | | | — | | | | | | 950,358 | | | | | | 950,358 | | |
| | | |
NGL
|
| |||||||||||||||||||||
| | | |
BKV Corporation
Historical (MBbls) |
| |
2022 Barnett Assets
Historical (MBbls) |
| |
Pro Forma
Combined (MBbls) |
| |
Pro Forma
Combined (MMcfe) |
| ||||||||||||
|
Balance December 31, 2020
|
| | | | 107,234 | | | | | | 12,827 | | | | | | 120,061 | | | | | | 720,366 | | |
|
Revision for previous estimates
|
| | | | 45,234 | | | | | | 6,807 | | | | | | 52,041 | | | | | | 312,246 | | |
|
Extensions and discoveries
|
| | | | 13,722 | | | | | | — | | | | | | 13,722 | | | | | | 82,332 | | |
|
Purchase of minerals in place
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | |
|
Improved recoveries
|
| | | | 8,794 | | | | | | — | | | | | | 8,794 | | | | | | 52,764 | | |
|
Production
|
| | | | (9,829) | | | | | | (1,283) | | | | | | (11,112) | | | | | | (66,672) | | |
|
Balance December 31, 2021
|
| | | | 165,155 | | | | | | 18,351 | | | | | | 183,506 | | | | | | 1,101,036 | | |
| Proved developed reserves as of: | | | | | | | | | | | | | | | | | | | | | |||||
|
December 31, 2020
|
| | | | 107,234 | | | | | | 12,827 | | | | | | 120,061 | | | | | | 720,366 | | |
|
December 31, 2021
|
| | | | 151,433 | | | | | | 18,351 | | | | | | 169,784 | | | | | | 1,018,704 | | |
| Proved undeveloped reserves as of: | | | | | | | | | | | | | | | | | | | | | |||||
|
December 31, 2020
|
| | | | — | | | | | | — | | | | | | — | | | | |||||
|
December 31, 2021
|
| | | | 13,722 | | | | | | — | | | | | | 13,722 | | | | | | 82,332 | | |
| | | |
Oil
|
| |||||||||||||||||||||
| | | |
BKV Corporation
Historical (MBbls) |
| |
2022 Barnett Assets
Historical (MBbls) |
| |
Pro Forma
Combined (MBbls) |
| |
Pro Forma
Combined (MMcfe) |
| ||||||||||||
|
Balance December 31, 2020
|
| | | | 723 | | | | | | 125 | | | | | | 848 | | | | | | 5,088 | | |
|
Revision for previous estimates
|
| | | | 258 | | | | | | 77 | | | | | | 335 | | | | | | 2,010 | | |
|
Extensions and discoveries
|
| | | | 58 | | | | | | — | | | | | | 58 | | | | | | 348 | | |
|
Purchase of minerals in place
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | |
|
Improved recoveries
|
| | | | 9 | | | | | | — | | | | | | 9 | | | | | | 54 | | |
|
Production
|
| | | | (123) | | | | | | (18) | | | | | | (141) | | | | | | (846) | | |
|
Balance December 31, 2021
|
| | | | 925 | | | | | | 184 | | | | | | 1,109 | | | | | | 6,654 | | |
| Proved developed reserves as of: | | | | | | | | | | | | | | | | | | | | | |||||
|
December 31, 2020
|
| | | | 723 | | | | | | 125 | | | | | | 848 | | | | | | 5,088 | | |
|
December 31, 2021
|
| | | | 867 | | | | | | 184 | | | | | | 1,051 | | | | | | 6,306 | | |
| Proved undeveloped reserves as of: | | | | | | | | | | | | | | | | | | | | | |||||
|
December 31, 2020
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | |
|
December 31, 2021
|
| | | | 58 | | | | | | — | | | | | | 58 | | | | | | 348 | | |
| | | |
Pro Forma Combined (MMcfe)
|
| |||||||||||||||||||||
| | | |
Natural Gas
|
| |
NGL
|
| |
Oil
|
| |
Total
|
| ||||||||||||
|
Balance December 31, 2020
|
| | | | 2,647,429 | | | | | | 720,366 | | | | | | 5,088 | | | | | | 3,372,883 | | |
|
Revision for previous estimates
|
| | | | 1,187,513 | | | | | | 312,246 | | | | | | 2,010 | | | | | | 1,501,769 | | |
|
Extensions and discoveries
|
| | | | 645,338 | | | | | | 82,332 | | | | | | 348 | | | | | | 728,018 | | |
|
Purchase of minerals in place
|
| | | | 19,511 | | | | | | — | | | | | | — | | | | | | 19,511 | | |
|
Improved recoveries
|
| | | | 152,597 | | | | | | 52,764 | | | | | | 54 | | | | | | 205,415 | | |
|
Production
|
| | | | (260,131) | | | | | | (66,672) | | | | | | (846) | | | | | | (327,649) | | |
|
Balance December 31, 2021
|
| | | | 4,392,257 | | | | | | 1,101,036 | | | | | | 6,654 | | | | | | 5,499,947 | | |
| Proved developed reserves as of: | | | | | | | | | | | | | | | | | | | | | | | | | |
|
December 31, 2020
|
| | | | 2,555,055 | | | | | | 720,366 | | | | | | 5,088 | | | | | | 3,280,509 | | |
|
December 31, 2021
|
| | | | 3,441,899 | | | | | | 1,018,704 | | | | | | 6,306 | | | | | | 4,466,909 | | |
| Proved undeveloped reserves as of: | | | | | | | | | | | | | | | | | | | | | | | | | |
|
December 31, 2020
|
| | | | 92,374 | | | | | | — | | | | | | — | | | | | | 92,374 | | |
|
December 31, 2021
|
| | | | 950,358 | | | | | | 82,332 | | | | | | 348 | | | | | | 1,033,038 | | |
| | | |
For the Year Ended December 31, 2021
|
| |||||||||||||||
|
(in thousands)
|
| |
BKV Corporation
Historical |
| |
2022 Barnett Assets
Historical |
| |
Pro Forma
Combined |
| |||||||||
|
Future cash inflows
|
| | | $ | 15,029,839 | | | | | $ | 2,724,244 | | | | | $ | 17,754,083 | | |
|
Future production costs
|
| | | | (6,840,969) | | | | | | (1,190,931) | | | | | | (8,031,900) | | |
|
Future development costs(1)
|
| | | | (1,051,911) | | | | | | (121,966) | | | | | | (1,173,877) | | |
|
Income tax expense
|
| | | | (1,501,984) | | | | | | (14,302) | | | | | | (1,516,286) | | |
|
Future net cash flows
|
| | | | 5,634,975 | | | | | | 1,397,045 | | | | | | 7,032,020 | | |
|
10% annual discount for estimated timing of cash flows
|
| | | | (3,222,086) | | | | | | (688,067) | | | | | | (3,910,153) | | |
|
Standardized Measure of discounted future net cash flows related to proved reserves
|
| | | $ | 2,412,889 | | | | | $ | 708,978 | | | | | $ | 3,121,867 | | |
| | | |
For the Year Ended December 31, 2021
|
| |||||||||||||||
|
(in thousands)
|
| |
BKV Corporation
Historical |
| |
2022 Barnett Assets
Historical |
| |
Pro Forma
Combined |
| |||||||||
|
Beginning of period
|
| | | $ | 510,410 | | | | | $ | 26,375 | | | | | $ | 536,785 | | |
|
Net change in sales and transfer prices and in
production (lifting) costs related to future production |
| | | | 1,768,893 | | | | | | 574,114 | | | | | | 2,343,007 | | |
|
Changes in estimated future development costs
|
| | | | (393,235) | | | | | | 148 | | | | | | (393,087) | | |
|
Sales and transfers of natural gas, NGLs and oil produced during the period
|
| | | | (522,403) | | | | | | (188,565) | | | | | | (710,968) | | |
|
Net change due to extensions, discoveries and improved
recovery |
| | | | 183,332 | | | | | | — | | | | | | 183,332 | | |
|
Purchase of minerals in place
|
| | | | 19,050 | | | | | | — | | | | | | 19,050 | | |
|
Net change due to revisions in quantity estimates
|
| | | | 1,266,086 | | | | | | 278,939 | | | | | | 1,545,025 | | |
|
Previously estimated development costs incurred during
the period |
| | | | 60,406 | | | | | | — | | | | | | 60,406 | | |
|
Net change in future income taxes
|
| | | | (611,031) | | | | | | (4,558) | | | | | | (615,589) | | |
|
Accretion of discount
|
| | | | 56,096 | | | | | | 2,815 | | | | | | 58,911 | | |
|
Changes in timing and other
|
| | | | 75,285 | | | | | | 19,710 | | | | | | 94,995 | | |
|
End of period
|
| | | $ | 2,412,889 | | | | | $ | 708,978 | | | | | $ | 3,121,867 | | |
| | | |
Nine Months Ended September 30,
|
| |
Year Ended December 31,
|
| ||||||||||||||||||
| | | |
2022
|
| |
2021
|
| |
2021
|
| |
2020
|
| ||||||||||||
|
Natural gas sales
|
| | | | 79% | | | | | | 70% | | | | | | 72% | | | | | | 89% | | |
|
NGL sales
|
| | | | 20% | | | | | | 29% | | | | | | 27% | | | | | | 10% | | |
|
Oil sales
|
| | | | 1% | | | | | | 1% | | | | | | 1% | | | | | | 1% | | |
| | | |
Nine Months Ended September 30,
|
| |
Year Ended December 31,
|
| ||||||||||||||||||
| | | |
2022
|
| |
2021
|
| |
2021
|
| |
2020
|
| ||||||||||||
| Production data | | | | | | | | | | | | | | | | ||||||||||
|
Natural gas (MMcf)
|
| | | | 151,721 | | | | | | 138,326 | | | | | | 186,055 | | | | | | 96,159 | | |
|
NGLs (MBbls)
|
| | | | 7,529 | | | | | | 6,545 | | | | | | 9,829 | | | | | | 2,565 | | |
|
Oil (MBbls)
|
| | | | 82 | | | | | | 93 | | | | | | 123 | | | | | | 29 | | |
|
Total volumes (MMcfe)
|
| | | | 197,386 | | | | | | 178,154 | | | | | | 245,767 | | | | | | 111,722 | | |
|
Average daily total volumes (MMcfe/d)
|
| | | | 723.0 | | | | | | 652.6 | | | | | | 673.3 | | | | | | 306.1 | | |
| | | |
For the Nine Months Ended
September 30, |
| |
For the Year Ended
December 31, |
| ||||||||||||||||||
| | | |
2022
|
| |
2021
|
| |
2021
|
| |
2020
|
| ||||||||||||
| Average prices: | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Natural gas (Mcf):
|
| | | | | | | | | | | | | | | | | | | | | | | | |
|
Average NYMEX Henry Hub Price
|
| | | $ | 6.74 | | | | | $ | 3.61 | | | | | $ | 3.84 | | | | | $ | 2.08 | | |
|
Average Natural Gas Realized Price (excluding derivatives)
|
| | | $ | 6.39 | | | | | $ | 2.60 | | | | | $ | 3.21 | | | | | $ | 1.06 | | |
|
Average Natural Gas Realized Price (including derivatives)
|
| | | $ | 3.56 | | | | | $ | 2.01 | | | | | $ | 2.29 | | | | | $ | 1.17 | | |
|
Differential to NYMEX Henry Hub
|
| | | $ | (0.35) | | | | | $ | (1.01) | | | | | $ | (0.63) | | | | | $ | (1.02) | | |
|
NGLs (Bbl):
|
| | | | | | | | | | | | | | | | | | | | | | | | |
|
Average NYMEX WTI Price
|
| | | $ | 98.96 | | | | | $ | 65.05 | | | | | $ | 67.92 | | | | | $ | 39.40 | | |
|
Average NGL Realized Price (excluding derivatives)
|
| | | $ | 32.86 | | | | | $ | 23.10 | | | | | $ | 22.90 | | | | | $ | 4.66 | | |
|
Average NGL Realized Price (including derivatives)
|
| | | $ | 28.71 | | | | | $ | 16.65 | | | | | $ | 16.03 | | | | | $ | 4.66 | | |
|
Differential to NYMEX WTI
|
| | | $ | (66.10) | | | | | $ | (41.95) | | | | | $ | (45.02) | | | | | $ | (34.74) | | |
|
Oil (Bbl):
|
| | | | | | | | | | | | | | | | | | | | | | | | |
|
Average NYMEX WTI Price
|
| | | $ | 98.96 | | | | | $ | 65.05 | | | | | $ | 67.92 | | | | | $ | 39.40 | | |
|
Average Oil Realized Price (excluding derivatives)
|
| | | $ | 92.24 | | | | | $ | 58.82 | | | | | $ | 61.46 | | | | | $ | 46.67 | | |
|
Average Oil Realized Price (including derivatives)
|
| | | $ | 92.24 | | | | | $ | 58.82 | | | | | $ | 61.46 | | | | | $ | 46.67 | | |
|
Differential to NYMEX WTI
|
| | | $ | (6.72) | | | | | $ | (6.23) | | | | | $ | (6.46) | | | | | $ | 7.27 | | |
| High and low NYMEX prices: | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Oil (Bbl):
|
| | | | | | | | | | | | | | | | | | | | | | | | |
|
High
|
| | | $ | 123.64 | | | | | $ | 75.54 | | | | | $ | 84.65 | | | | | $ | 63.27 | | |
|
Low
|
| | | $ | 75.99 | | | | | $ | 47.47 | | | | | $ | 47.62 | | | | | $ | (37.63) | | |
|
Natural gas (Mcf):
|
| | | | | | | | | | | | | | | | | | | | | | | | |
|
High
|
| | | $ | 9.85 | | | | | $ | 23.86 | | | | | $ | 23.86 | | | | | $ | 3.35 | | |
|
Low
|
| | | $ | 3.73 | | | | | $ | 2.43 | | | | | $ | 2.43 | | | | | $ | 1.48 | | |
|
Instrument
|
| |
MMBtu
|
| |
Weighted
Average Price (USD) |
| |
Weighted
Average Price Sub Floor |
| |
Weighted
Average Price Floor |
| |
Weighted
Average Price Ceiling |
| |
Weighted
Average Price Sub Ceiling |
| |
Fair Value as of
September 30, 2022 (in thousands) |
| |||||||||||||||||||||
| 2022 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Swap
|
| | | | 11,209,000 | | | | | $ | 4.41 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | $ | (27,462) | | |
|
Enhanced three-way
collars |
| | | | 8,235,000 | | | | | | | | | | | $ | 2.51 | | | | | $ | 2.54 | | | | | $ | 2.91 | | | | | $ | 3.18 | | | | | $ | (64,581) | | |
|
Collars
|
| | | | 305,000 | | | | | | | | | | | | | | | | | $ | 2.75 | | | | | $ | 3.30 | | | | | | | | | | | $ | (1,077) | | |
| 2023 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Swap
|
| | | | 52,674,600 | | | | | $ | 3.90 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | $ | (67,647) | | |
|
Enhanced three-way
collars |
| | | | 9,125,000 | | | | | | | | | | | | | | | | | $ | 2.45 | | | | | $ | 3.15 | | | | | $ | 3.15 | | | | | $ | (41,317) | | |
|
Collars
|
| | | | 41,250,000 | | | | | | | | | | | | | | | | | $ | 2.85 | | | | | $ | 3.75 | | | | | | | | | | | $ | (55,843) | | |
|
Instrument
|
| |
Commodity Reference Price
|
| |
Volumes
|
| |
Weighted Average
Price (USD) |
| |
Fair Value at
September 30, 2022 (In thousands) |
| |||||||||
| 2022 | | | | | | | | | | | | | | | | | | | | | | |
|
Swap
|
| | OPIS Purity Ethane Mont Belvieu | | | | | 34,385,400 | | | | | $ | 0.34 | | | | | $ | (1,925) | | |
|
Swap
|
| | OPIS IsoButane Mont Belvieu Non-TET | | | | | 966,000 | | | | | $ | 0.99 | | | | | $ | (96) | | |
|
Swap
|
| |
OPIS Normal Butane Mont Belvieu Non-TET
|
| | | | 1,932,000 | | | | | $ | 0.98 | | | | | $ | (11) | | |
|
Swap
|
| | OPIS Pentane Mont Belvieu Non-TET | | | | | 1,932,000 | | | | | $ | 1.46 | | | | | $ | (183) | | |
|
Swap
|
| | OPIS Propane Mont Belvieu Non-TET | | | | | 5,796,000 | | | | | $ | 0.86 | | | | | $ | (93) | | |
| 2023 | | | | | | | | | | | | | | | | | | | | | | |
|
Swap
|
| | OPIS Purity Ethane Mont Belvieu | | | | | 38,325,000 | | | | | $ | 0.23 | | | | | $ | (4,289) | | |
|
Swap
|
| | OPIS IsoButane Mont Belvieu Non-TET | | | | | 3,832,500 | | | | | $ | 0.80 | | | | | $ | (571) | | |
|
Swap
|
| |
OPIS Normal Butane Mont Belvieu Non-TET
|
| | | | 3,832,500 | | | | | $ | 0.80 | | | | | $ | (384) | | |
|
Swap
|
| | OPIS Pentane Mont Belvieu Non-TET | | | | | 7,665,000 | | | | | $ | 1.28 | | | | | $ | (1,522) | | |
|
Swap
|
| | OPIS Propane Mont Belvieu Non-TET | | | | | 22,995,000 | | | | | $ | 0.72 | | | | | $ | (2,004) | | |
| | | |
Nine Months Ended
September 30, |
| |||||||||
|
(In thousands)
|
| |
2022
|
| |
2021
|
| ||||||
| Revenues and other operating income | | | | | | | | | | | | | |
|
Natural gas sales
|
| | | $ | 969,525 | | | | | $ | 359,716 | | |
|
NGL sales
|
| | | | 247,404 | | | | | | 151,165 | | |
|
Oil sales
|
| | | | 7,544 | | | | | | 5,491 | | |
|
Midstream revenues
|
| | | | 6,080 | | | | | | 5,529 | | |
|
Derivative losses, net
|
| | | | (720,312) | | | | | | (500,604) | | |
|
Marketing revenues
|
| | | | 7,197 | | | | | | 51,246 | | |
|
Other
|
| | | | 2,008 | | | | | | — | | |
|
Total revenues and other operating income
|
| | | | 519,446 | | | | | | 72,543 | | |
| Operating expenses | | | | | | | | | | | | | |
|
Lease operating and workover
|
| | | | 86,870 | | | | | | 64,244 | | |
|
Taxes other than income
|
| | | | 86,164 | | | | | | 28,453 | | |
|
Gathering and transportation
|
| | | | 153,281 | | | | | | 124,287 | | |
|
Accretion of asset retirement obligations
|
| | | | 8,874 | | | | | | 7,439 | | |
|
Depreciation, depletion and amortization
|
| | | | 68,606 | | | | | | 61,219 | | |
|
Exploration and impairment
|
| | | | — | | | | | | 34 | | |
|
General and administrative
|
| | | | 107,341 | | | | | | 62,653 | | |
|
Accretion of right of use liabilities
|
| | | | 190 | | | | | | 167 | | |
|
Total operating expenses
|
| | | | 511,326 | | | | | | 348,496 | | |
|
Income (loss) from operations
|
| | | | 8,120 | | | | | | (275,953) | | |
| Other income and expense | | | | | | | | | | | | | |
|
Loss on contingent consideration liabilities
|
| | | | (31,089) | | | | | | (193,350) | | |
|
Interest expense
|
| | | | (22,334) | | | | | | (314) | | |
|
Other income
|
| | | | 1,051 | | | | | | 628 | | |
|
Bargain purchase gain
|
| | | | 163,653 | | | | | | — | | |
|
Gain on settlement of litigation
|
| | | | 16,866 | | | | | | — | | |
|
Earnings from equity affiliates
|
| | | | 14,486 | | | | | | — | | |
|
Interest income
|
| | | | 382 | | | | | | 2 | | |
|
Income (loss) before income taxes
|
| | | | 151,135 | | | | | | (468,987) | | |
|
Income tax benefit
|
| | | | 2,989 | | | | | | 107,918 | | |
|
Net income (loss) and comprehensive income (loss) attributable to BKV Corp
|
| | | $ | 154,124 | | | | | $ | (361,069) | | |
|
Less accretion of preferred stock to redemption value
|
| | | | — | | | | | | (3,545) | | |
|
Less preferred stock dividends
|
| | | | — | | | | | | (9,900) | | |
|
Less deemed dividend on redemption of preferred stock
|
| | | | — | | | | | | (1,353) | | |
|
Net income (loss) and comprehensive income (loss) attributable to common stockholders
|
| | | $ | 154,124 | | | | | $ | (375,867) | | |
| | | |
Year Ended December 31,
|
| |||||||||
|
(In thousands)
|
| |
2021
|
| |
2020
|
| ||||||
| Revenues and other operating income | | | | | | | | | | | | | |
|
Natural gas sales
|
| | | $ | 597,050 | | | | | $ | 101,758 | | |
|
NGL sales
|
| | | | 225,135 | | | | | | 11,952 | | |
|
Oil sales
|
| | | | 7,560 | | | | | | 1,333 | | |
|
Non-operated midstream revenues, net
|
| | | | 6,917 | | | | | | 7,458 | | |
|
Derivative (losses) gains, net
|
| | | | (383,847) | | | | | | 20,755 | | |
|
Marketing revenues
|
| | | | 52,616 | | | | | | — | | |
|
Other
|
| | | | 251 | | | | | | 33 | | |
|
Total revenues and other operating income
|
| | | | 505,682 | | | | | | 143,289 | | |
| Operating expenses | | | | | | | | | | | | | |
|
Lease operating and workover
|
| | | | 88,105 | | | | | | 31,260 | | |
|
Taxes other than income
|
| | | | 45,650 | | | | | | 5,151 | | |
|
Gathering and transportation
|
| | | | 173,587 | | | | | | — | | |
|
Accretion of asset retirement obligations
|
| | | | 10,030 | | | | | | 3,211 | | |
|
Depreciation, depletion, and amortization
|
| | | | 81,986 | | | | | | 83,388 | | |
|
Exploration and impairment
|
| | | | 34 | | | | | | 560 | | |
|
General and administrative
|
| | | | 85,740 | | | | | | 29,442 | | |
|
Accretion of right of use liabilities
|
| | | | 227 | | | | | | 184 | | |
|
Total operating expenses
|
| | | | 485,359 | | | | | | 153,196 | | |
|
Income (loss) from operations
|
| | | | 20,323 | | | | | | (9,907) | | |
| Other income and expense | | | | | | | | | | | | | |
|
(Loss) gain on contingent consideration liabilities
|
| | | | (194,968) | | | | | | 7,135 | | |
|
Interest expense
|
| | | | (2,134) | | | | | | (1,713) | | |
|
Other income
|
| | | | 872 | | | | | | — | | |
|
Income from equity affiliates
|
| | | | 910 | | | | | | — | | |
|
Interest income
|
| | | | 8 | | | | | | 121 | | |
|
Loss before income taxes
|
| | | | (174,989) | | | | | | (4,364) | | |
|
Income tax benefit (expense)
|
| | | | 40,526 | | | | | | (38,982) | | |
|
Net loss and comprehensive loss attributable to BKV Corporation
|
| | | $ | (134,463) | | | | | $ | (43,346) | | |
|
Less accretion of preferred stock to redemption value
|
| | | | (3,745) | | | | | | — | | |
|
Less preferred stock dividends
|
| | | | (9,900) | | | | | | (460) | | |
|
Less deemed dividend on redemption of preferred stock
|
| | | | (22,606) | | | | | | — | | |
|
Net loss and comprehensive loss attributable to common stockholders
|
| | | $ | (170,714) | | | | | $ | (43,806) | | |
| | | |
Nine Months Ended September 30,
|
| | | | | | | | | | | | | |||||||||
|
(In thousands, other than percentages)
|
| |
2022
|
| |
2021
|
| |
$ Change
|
| |
% Change
|
| ||||||||||||
| Revenues | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Natural gas revenues
|
| | | $ | 969,525 | | | | | $ | 359,716 | | | | | $ | 609,809 | | | | | | 170% | | |
|
NGL revenues
|
| | | | 247,404 | | | | | | 151,165 | | | | | $ | 96,239 | | | | | | 64% | | |
|
Oil revenues
|
| | | | 7,544 | | | | | | 5,491 | | | | | $ | 2,053 | | | | | | 37% | | |
|
Midstream revenues
|
| | | | 6,080 | | | | | | 5,529 | | | | | $ | 551 | | | | | | 10% | | |
|
Derivative (losses) gains, net
|
| | | | (720,312) | | | | | | (500,604) | | | | | $ | (219,708) | | | | | | 44% | | |
|
Marketing revenues
|
| | | | 7,197 | | | | | | 51,246 | | | | | $ | (44,049) | | | | | | (86)% | | |
|
Other
|
| | | | 2,008 | | | | | | — | | | | | $ | 2,008 | | | | | | * | | |
|
Total revenues and other operating income
|
| | | $ | 519,446 | | | | | $ | 72,543 | | | | | | | | | | | | | | |
| | | |
Nine Months Ended September 30,
|
| | | | | | | | | | | | | |||||||||
|
(In thousands, other than percentages and average costs)
|
| |
2022
|
| |
2021
|
| |
$ Change
|
| |
% Change
|
| ||||||||||||
| Operating Expense | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Lease operating and workover
|
| | | $ | 86,870 | | | | | $ | 64,244 | | | | | $ | 22,626 | | | | | | 35% | | |
|
Taxes other than income
|
| | | | 86,164 | | | | | | 28,453 | | | | | $ | 57,711 | | | | | | * | | |
|
Gathering and transportation costs
|
| | | | 153,281 | | | | | | 124,287 | | | | | $ | 28,994 | | | | | | 23% | | |
|
Accretion of asset retirement obligations
|
| | | | 8,874 | | | | | | 7,439 | | | | | $ | 1,435 | | | | | | 19% | | |
|
Depreciation, depletion, and amortization
|
| | | | 68,606 | | | | | | 61,219 | | | | | $ | 7,387 | | | | | | 12% | | |
|
Exploration and impairment
|
| | | | — | | | | | | 34 | | | | | $ | (34) | | | | | | * | | |
|
General and administrative
|
| | | | 107,341 | | | | | | 62,653 | | | | | $ | 44,688 | | | | | | 71% | | |
|
Accretion of right of use liabilities
|
| | | | 190 | | | | | | 167 | | | | | $ | 23 | | | | | | 14% | | |
|
Total operating expense
|
| | | $ | 511,326 | | | | | $ | 348,496 | | | | | | | | | | | | | | |
| | | |
Nine Months Ended September 30,
|
| | | | | | | | | | | | | |||||||||
|
(In thousands, other than percentages and average costs)
|
| |
2022
|
| |
2021
|
| |
$ Change
|
| |
% Change
|
| ||||||||||||
| Average Costs per Mcfe | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Lease operating and workover
|
| | | $ | 0.44 | | | | | $ | 0.36 | | | | | $ | 0.08 | | | | | | 22% | | |
|
Taxes other than income
|
| | | | 0.44 | | | | | | 0.16 | | | | | $ | 0.28 | | | | | | * | | |
|
Gathering and transportation costs
|
| | | | 0.78 | | | | | | 0.70 | | | | | $ | 0.08 | | | | | | 11% | | |
|
Accretion of asset retirement obligations
|
| | | | 0.04 | | | | | | 0.04 | | | | | $ | — | | | | | | * | | |
|
Depreciation, depletion, and amortization
|
| | | | 0.35 | | | | | | 0.34 | | | | | $ | 0.01 | | | | | | 3% | | |
|
Exploration and impairment
|
| | | | — | | | | | | — | | | | | $ | — | | | | | | * | | |
|
General and administrative
|
| | | | 0.54 | | | | | | 0.35 | | | | | $ | 0.19 | | | | | | 54% | | |
|
Total
|
| | | $ | 2.59 | | | | | $ | 1.95 | | | | | | | | | | | | | | |
| | |||||||||||||||||||||||||
| | | |
Nine Months Ended September 30,
|
| | | | | | | | | | | | | |||||||||||||||||||||
| | | |
2022
|
| |
2021
|
| |
$ Change
|
| |
% Change
|
| ||||||||||||||||||||||||
|
(In thousands, other than percentages and average costs)
|
| |
Amount
|
| |
Per Mcfe
|
| |
Amount
|
| |
Per Mcfe
|
| | | | | | | | | | | | | ||||||||||||
|
Lease operating expenses
|
| | | $ | 81,994 | | | | | $ | 0.42 | | | | | $ | 60,887 | | | | | $ | 0.34 | | | | | $ | 21,107 | | | | | | 35% | | |
|
Workover expenses
|
| | | | 4,876 | | | | | $ | 0.02 | | | | | | 3,357 | | | | | $ | 0.02 | | | | | $ | 1,519 | | | | | | 45% | | |
|
Total lease operating and workover expense
|
| | | $ | 86,870 | | | | | $ | 0.44 | | | | | $ | 64,244 | | | | | $ | 0.36 | | | | | $ | 22,626 | | | | | | 35% | | |
| | | |
Year Ended December 31,
|
| |||||||||||||||||||||
|
(In thousands)
|
| |
2021
|
| |
2020
|
| |
$ Change
|
| |
% Change
|
| ||||||||||||
| Revenues | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Natural gas revenues
|
| | | $ | 597,050 | | | | | $ | 101,758 | | | | | $ | 495,292 | | | | | | * | | |
|
NGL revenues
|
| | | | 225,135 | | | | | | 11,952 | | | | | $ | 213,183 | | | | | | * | | |
|
Oil revenues
|
| | | | 7,560 | | | | | | 1,333 | | | | | $ | 6,227 | | | | | | * | | |
|
Non-operated midstream revenues, net
|
| | | | 6,917 | | | | | | 7,458 | | | | | $ | (541) | | | | | | (7)% | | |
|
Derivative (losses) gains, net
|
| | | | (383,847) | | | | | | 20,755 | | | | | $ | (404,602) | | | | | | * | | |
|
Marketing revenues
|
| | | | 52,616 | | | | | | — | | | | | $ | 52,616 | | | | | | * | | |
|
Other
|
| | | | 251 | | | | | | 33 | | | | | $ | 218 | | | | | | * | | |
|
Total revenues and other operating income
|
| | | $ | 505,682 | | | | | $ | 143,289 | | | | | | | | | | | | | | |
| | | |
Year Ended December 31,
|
| |||||||||||||||||||||
|
(In thousands, other than percentages and average costs)
|
| |
2021
|
| |
2020
|
| |
$ Change
|
| |
% Change
|
| ||||||||||||
| Operating Expense | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Lease operating and workover
|
| | | $ | 88,105 | | | | | $ | 31,260 | | | | | $ | 56,845 | | | | | | 182% | | |
|
Taxes other than income
|
| | | | 45,650 | | | | | | 5,151 | | | | | $ | 40,499 | | | | | | * | | |
|
Gathering and transportation costs
|
| | | | 173,587 | | | | | | — | | | | | $ | 173,587 | | | | | | * | | |
|
Accretion of asset retirement obligations
|
| | | | 10,030 | | | | | | 3,211 | | | | | $ | 6,819 | | | | | | 212% | | |
|
Depreciation, depletion, and amortization
|
| | | | 81,986 | | | | | | 83,388 | | | | | $ | (1,402) | | | | | | (2)% | | |
|
Exploration and impairment
|
| | | | 34 | | | | | | 560 | | | | | $ | (526) | | | | | | (94)% | | |
|
General and administrative
|
| | | | 85,740 | | | | | | 29,442 | | | | | $ | 56,298 | | | | | | 191% | | |
|
Accretion of right of use liabilities
|
| | | | 227 | | | | | | 184 | | | | | $ | 43 | | | | | | 23% | | |
|
Total operating expense
|
| | | $ | 485,359 | | | | | $ | 153,196 | | | | | | | | | | | | | | |
| Average Costs per Mcfe | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Lease operating and workover
|
| | | $ | 0.36 | | | | | $ | 0.28 | | | | | $ | 0.08 | | | | | | 28% | | |
|
Taxes other than income
|
| | | | 0.19 | | | | | | 0.05 | | | | | $ | 0.14 | | | | | | * | | |
|
Gathering and transportation costs
|
| | | | 0.71 | | | | | | — | | | | | $ | 0.71 | | | | | | * | | |
|
Accretion of asset retirement obligations
|
| | | | 0.04 | | | | | | 0.03 | | | | | $ | 0.01 | | | | | | 42% | | |
|
Depreciation, depletion, and amortization
|
| | | | 0.33 | | | | | | 0.75 | | | | | $ | 0.41 | | | | | | (55)% | | |
|
Exploration and impairment
|
| | | | — | | | | | | 0.01 | | | | | $ | — | | | | | | (97)% | | |
|
General and administrative
|
| | | | 0.35 | | | | | | 0.26 | | | | | $ | 0.09 | | | | | | 32% | | |
|
Accretion of right of use liabilities
|
| | | | — | | | | | | — | | | | | $ | — | | | | | | (44)% | | |
|
Total
|
| | | $ | 1.98 | | | | | $ | 1.38 | | | | | | | | | | | | | | |
| | | |
Years Ended December 31,
|
| |||||||||||||||||||||||||||||||||
| | | |
2021
|
| |
2020
|
| |
$ Change
|
| |
% Change
|
| ||||||||||||||||||||||||
| | | |
Amount
|
| |
Per Mcfe
|
| |
Amount
|
| |
Per Mcfe
|
| ||||||||||||||||||||||||
| | | |
(In thousands)
|
| | | | | | | |
(In thousands)
|
| | | | | | | |
(In thousands)
|
| | | | | | | |||||||||
|
Lease operating expenses
|
| | | $ | 84,303 | | | | | $ | 0.34 | | | | | $ | 30,130 | | | | | $ | 0.27 | | | | | $ | 54,173 | | | | | | 179% | | |
|
Workover expenses
|
| | | | 3,802 | | | | | | 0.02 | | | | | | 1,130 | | | | | | 0.01 | | | | | | 2,672 | | | | | | 236% | | |
|
Total lease operating and workover expense
|
| | | $ | 88,105 | | | | | $ | 0.36 | | | | | $ | 31,260 | | | | | $ | 0.28 | | | | | | 56,845 | | | | | | 182% | | |
| |
2022
|
| | | $ | 11,241 | | |
| |
2023
|
| | | | 947 | | |
| |
2024
|
| | | | 959 | | |
| |
2025
|
| | | | 972 | | |
| |
2026
|
| | | | 848 | | |
| |
Thereafter
|
| | | | 1,664 | | |
| |
Total undiscounted future lease payments
|
| | | $ | 16,631 | | |
| |
Present value adjustment
|
| | | | (1,226) | | |
| |
Net operating lease liabilities
|
| | | $ | 15,405 | | |
| | | |
Nine Months Ended September 30,
|
| |
Year Ended December 31,
|
| ||||||||||||||||||
| | | |
2022
|
| |
2021
|
| |
2021
|
| |
2020
|
| ||||||||||||
|
Net cash provided by (used in) operating activities
|
| | | $ | 231,075 | | | | | | 274,488 | | | | | $ | 358,133 | | | | | $ | (7,405) | | |
|
Net cash (used in) investing activities
|
| | | | (756,333) | | | | | | (74,868) | | | | | | (161,858) | | | | | | (513,992) | | |
|
Net cash provided by (used in) financing activities
|
| | | | 575,206 | | | | | | (130,820) | | | | | | (79,053) | | | | | | 442,723 | | |
|
Net increase (decrease) in cash and cash equivalents
|
| | | $ | 49,948 | | | | | $ | 68,800 | | | | | $ | 117,222 | | | | | $ | (78,674) | | |
| | | |
September 30, 2022
|
| |||||||||||||||||||||||||||||||||||||||||||||
| | | |
Estimated Total Proved Reserves
|
| | | | | | | | | | | | | | | | | | | | | | | | | |||||||||||||||||||||
|
Operating Region
|
| |
Natural Gas
(MMcf) |
| |
Natural
Gas Liquids (MMBbls) |
| |
Oil
(MMBbls) |
| |
Total
(MMcfe) |
| |
Average
Net Daily Production (MMcfe/d)(1) |
| |
Average
Reserve Life (years) |
| |
Producing
Wells |
| |
Net Acres
|
| ||||||||||||||||||||||||
|
Barnett
|
| | | | 4,073,171 | | | | | | 220,587 | | | | | | 1,743 | | | | | | 5,407,155 | | | | | | 730.6 | | | | | | 20.3 | | | | | | 6,975 | | | | | | 467,925 | | |
|
NEPA
|
| | | | 925,102 | | | | | | — | | | | | | — | | | | | | 925,102 | | | | | | 133.3 | | | | | | 19.0 | | | | | | 408 | | | | | | 36,978 | | |
|
Total
|
| | | | 4,998,273 | | | | | | 220,587 | | | | | | 1,743 | | | | | | 6,332,257 | | | | | | 863.9 | | | | | | 20.1 | | | | | | 7,383 | | | | | | 504,904 | | |
| | | |
September 30, 2022
|
| |||||||||||||||||||||||||||||||||
|
Operating Region
|
| |
Estimated
Total Proved Reserves (MMcfe) |
| |
% Natural
Gas |
| |
% Natural
Gas Liquids |
| |
% Oil
|
| |
Weighted
Average Annual PDP Decline(1) |
| |||||||||||||||||||||
| |
Five
Year |
| |
Ten
Year |
| ||||||||||||||||||||||||||||||||
|
Barnett
|
| | | | 5,407,155 | | | | | | 75.3% | | | | | | 24.5% | | | | | | 0.2% | | | | | | 7.3% | | | | | | 6.5% | | |
|
NEPA
|
| | | | 925,102 | | | | | | 100% | | | | | | 0% | | | | | | 0% | | | | | | 12.8% | | | | | | 9.9% | | |
|
Total
|
| | | | 6,332,257 | | | | | | 78.9% | | | | | | 20.9% | | | | | | 0.2% | | | | | | 8.1% | | | | | | 7.0% | | |
| | | |
December 31, 2021
|
| |||||||||||||||||||||||||||||||||
|
Operating Region
|
| |
Estimated
Total Proved Reserves (MMcfe) |
| |
% Natural
Gas |
| |
% Natural
Gas Liquids |
| |
% Oil
|
| |
Weighted Average
Annual PDP Decline(1) |
| |||||||||||||||||||||
| |
Five
Year |
| |
Ten
Year |
| ||||||||||||||||||||||||||||||||
|
Barnett
|
| | | | 3,496,235 | | | | | | 71.5% | | | | | | 28.3% | | | | | | 0.2% | | | | | | 7.0% | | | | | | 6.3% | | |
|
NEPA
|
| | | | 945,528 | | | | | | 100% | | | | | | 0% | | | | | | 0% | | | | | | 12.4% | | | | | | 9.9% | | |
|
Total
|
| | | | 4,441,763 | | | | | | 77.6% | | | | | | 22.3% | | | | | | 0.1% | | | | | | 8.3% | | | | | | 7.2% | | |
| | | |
Developed
|
| |
Undeveloped
|
| |
Total
|
| |||||||||||||||||||||||||||
|
Operating Region
|
| |
Gross
|
| |
Net
|
| |
Gross
|
| |
Net
|
| |
Gross
|
| |
Net
|
| ||||||||||||||||||
| Barnett(1) | | | | | 643,008 | | | | | | 428,269 | | | | | | 41,803 | | | | | | 39,656 | | | | | | 684,811 | | | | | | 467,925 | | |
|
NEPA
|
| | | | 61,971 | | | | | | 28,162 | | | | | | 20,890 | | | | | | 8,816 | | | | | | 82,862 | | | | | | 36,978 | | |
|
Total
|
| | | | 704,980 | | | | | | 456,432 | | | | | | 62,693 | | | | | | 48,472 | | | | | | 767,673 | | | | | | 504,904 | | |
| | | |
Developed
|
| |
Undeveloped
|
| |
Total
|
| |||||||||||||||||||||||||||
|
Operating Region
|
| |
Gross
|
| |
Net
|
| |
Gross
|
| |
Net
|
| |
Gross
|
| |
Net
|
| ||||||||||||||||||
| Barnett(1) | | | | | 453,584 | | | | | | 261,810 | | | | | | 32,120 | | | | | | 30,771 | | | | | | 485,704 | | | | | | 292,582 | | |
|
NEPA
|
| | | | 61,971 | | | | | | 28,162 | | | | | | 20,890 | | | | | | 8,816 | | | | | | 82,862 | | | | | | 36,978 | | |
|
Total
|
| | | | 515,555 | | | | | | 289,973 | | | | | | 53,010 | | | | | | 39,587 | | | | | | 568,566 | | | | | | 329,560 | | |
| | | |
Producing Natural
Gas Wells |
| |
Producing Oil Wells
|
| |
Total
|
| |
Average
Working Interest |
| ||||||||||||||||||||||||||||||
| | | |
Gross
|
| |
Net
|
| |
Gross
|
| |
Net
|
| |
Gross
|
| |
Net
|
| ||||||||||||||||||||||||
|
Barnett
|
| | | | 5,822 | | | | | | 5,597 | | | | | | 9 | | | | | | 9 | | | | | | 5,831 | | | | | | 5,606 | | | | | | 96.1% | | |
|
NEPA
|
| | | | 142 | | | | | | 126 | | | | | | 0 | | | | | | 0 | | | | | | 142 | | | | | | 1262 | | | | | | 88.9% | | |
|
Total
|
| | | | 5,964 | | | | | | 5,724 | | | | | | 9 | | | | | | 9 | | | | | | 5,973 | | | | | | 5,733 | | | | | | 96.0% | | |
| Non-operated Wells: | | | | | | | | | |||||||||||||||||||||||||||||||||||
|
Barnett
|
| | | | 1,122 | | | | | | 95 | | | | | | 22 | | | | | | 0.1 | | | | | | 1,144 | | | | | | 96 | | | | | | 9.9% | | |
|
NEPA
|
| | | | 266 | | | | | | 36 | | | | | | 0 | | | | | | 0 | | | | | | 266 | | | | | | 36 | | | | | | 14.3% | | |
|
Total
|
| | | | 1,388 | | | | | | 132 | | | | | | 22 | | | | | | .1 | | | | | | 1,410 | | | | | | 132 | | | | | | 10.8% | | |
| Total Wells: | | | | | | | | | |||||||||||||||||||||||||||||||||||
|
Barnett
|
| | | | 6,944 | | | | | | 5,693 | | | | | | 31 | | | | | | 9 | | | | | | 6,975 | | | | | | 5,702 | | | | | | 83.9% | | |
|
NEPA
|
| | | | 408 | | | | | | 163 | | | | | | 0 | | | | | | 0 | | | | | | 408 | | | | | | 163 | | | | | | 41.0% | | |
|
Total
|
| | | | 7,352 | | | | | | 5,855 | | | | | | 31 | | | | | | 9 | | | | | | 7,383 | | | | | | 5,864 | | | | | | 81.5% | | |
| | | |
Producing Natural
Gas Wells |
| |
Producing Oil Wells
|
| |
Total
|
| |
Average
Working Interest |
| ||||||||||||||||||||||||||||||
| | | |
Gross
|
| |
Net
|
| |
Gross
|
| |
Net
|
| |
Gross
|
| |
Net
|
| ||||||||||||||||||||||||
| Operated Wells: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Barnett
|
| | | | 3,950 | | | | | | 3,170 | | | | | | 8 | | | | | | 6 | | | | | | 3,958 | | | | | | 3,177 | | | | | | 97.8% | | |
|
NEPA
|
| | | | 138 | | | | | | 101 | | | | | | 0 | | | | | | 0 | | | | | | 138 | | | | | | 101 | | | | | | 88.9% | | |
|
Total
|
| | | | 4,088 | | | | | | 3,272 | | | | | | 8 | | | | | | 6 | | | | | | 4,096 | | | | | | 3,279 | | | | | | | | |
| Non-operated Wells: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Barnett
|
| | | | 838 | | | | | | 672 | | | | | | 8 | | | | | | 6 | | | | | | 846 | | | | | | 679 | | | | | | 3.5% | | |
|
NEPA
|
| | | | 256 | | | | | | 189 | | | | | | 0 | | | | | | 0 | | | | | | 256 | | | | | | 189 | | | | | | 13.9% | | |
|
Total
|
| | | | 1094 | | | | | | 861 | | | | | | 8 | | | | | | 6 | | | | | | 1102 | | | | | | 868 | | | | | | | | |
| Total Wells: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Barnett
|
| | | | 4,788 | | | | | | 3,843 | | | | | | 16 | | | | | | 12 | | | | | | 4,804 | | | | | | 3,856 | | | | | | 81.2% | | |
|
NEPA
|
| | | | 394 | | | | | | 291 | | | | | | 0 | | | | | | 0 | | | | | | 394 | | | | | | 291 | | | | | | 39.9% | | |
|
Total
|
| | | | 5,182 | | | | | | 4,134 | | | | | | 16 | | | | | | 12 | | | | | | 5,198 | | | | | | 4,147 | | | | | | | | |
| | | |
Nine Months Ended September 30,
|
| |||||||||
| | | |
2022
|
| |
2021
|
| ||||||
| Sales Volumes | | | | | | | | | | | | | |
| Barnett: | | | | | | | | | | | | | |
|
Natural gas (MMcf)
|
| | | | 115,339.7 | | | | | | 96,787.4 | | |
|
Natural gas liquids (MBbl)
|
| | | | 7,529.0 | | | | | | 6,544.5 | | |
|
Oil (MBbl)
|
| | | | 81.8 | | | | | | 93.4 | | |
|
Total Barnett (Bcfe)
|
| | | | 161.0 | | | | | | 136.6 | | |
| NEPA: | | | | | | | | | | | | | |
|
Natural gas (MMcf)
|
| | | | 36,381.6 | | | | | | 41,538.9 | | |
|
Natural gas liquids (MBbl)
|
| | | | — | | | | | | — | | |
|
Oil (MBbl)
|
| | | | — | | | | | | — | | |
|
Total NEPA (Bcfe)
|
| | | | 36.4 | | | | | | 41.5 | | |
|
Total Company (Bcfe)
|
| | | | 197.4 | | | | | | 178.2 | | |
| Average Sales Prices (excluding impact of derivative settlements) | | | | | | | | | | | | | |
| Barnett: | | | | | | | | | | | | | |
|
Natural gas
|
| | | $ | 6.79 | | | | | $ | 2.95 | | |
|
Natural gas liquids (MBbl)
|
| | | $ | 32.86 | | | | | $ | 23.10 | | |
|
Oil (MBbl)
|
| | | $ | 92.22 | | | | | $ | 58.79 | | |
| NEPA: | | | | | | | | | | | | | |
|
Natural gas (MMcf)
|
| | | $ | 5.12 | | | | | $ | 1.80 | | |
|
Natural gas liquids (MBbl)
|
| | | $ | — | | | | | $ | — | | |
|
Oil (MBbl)
|
| | | $ | — | | | | | $ | — | | |
|
Total Company (per Mcf)
|
| | | $ | 6.20 | | | | | $ | 2.90 | | |
| Average Sales Prices (Including the impact of derivative prices(1)) | | | | | | | | | | | | | |
| Barnett: | | | | | | | | | | | | | |
|
Natural gas
|
| | | $ | 3.07 | | | | | $ | 2.34 | | |
|
Natural gas liquids (MBbl)
|
| | | $ | 28.71 | | | | | $ | 16.65 | | |
|
Oil (MBbl)
|
| | | $ | 92.22 | | | | | $ | 58.79 | | |
| NEPA: | | | | | | | | | | | | | |
|
Natural gas (MMcf)
|
| | | $ | 5.12 | | | | | $ | 0.54 | | |
|
Natural gas liquids (MBbl)
|
| | | $ | — | | | | | $ | — | | |
|
Oil (MBbl)
|
| | | $ | — | | | | | $ | — | | |
|
Total Company (per Mcf)
|
| | | $ | 3.87 | | | | | $ | 2.20 | | |
| Average Production Cost (per Mcfe)(2) | | | | | | | | | | | | | |
|
Barnett
|
| | | $ | 1.42 | | | | | $ | 1.30 | | |
|
NEPA
|
| | | $ | 0.24 | | | | | $ | 0.23 | | |
|
Total Company
|
| | | $ | 1.67 | | | | | $ | 1.53 | | |
| | | |
Year Ended December 31,
|
| |||||||||
| | | |
2021
|
| |
2020
|
| ||||||
| Sales Volumes | | | | | | | | | | | | | |
| Barnett: | | | | | | | | | | | | | |
|
Natural gas (MMcf)
|
| | | | 129,960.0 | | | | | | 34,879.1 | | |
|
Natural gas liquids (MBbl)
|
| | | | 9,829.3 | | | | | | 2,565.2 | | |
|
Oil (MBbl)
|
| | | | 123.0 | | | | | | 28.6 | | |
|
Total Barnett (Bcfe)
|
| | | | 190.1 | | | | | | 50.4 | | |
| NEPA: | | | | | | | | | | | | | |
|
Natural gas (MMcf)
|
| | | | 56,095.1 | | | | | | 61,279.9 | | |
|
Natural gas liquids (MBbl)
|
| | | | 0.0 | | | | | | 0.0 | | |
|
Oil (MBbl)
|
| | | | 0.0 | | | | | | 0.0 | | |
|
Total NEPA (Bcfe)
|
| | | | 56.1 | | | | | | 61.3 | | |
|
Total Company (Bcfe)
|
| | | | 245.8 | | | | | | 111.7 | | |
| Average Sales Prices (excluding impact of derivative settlements) | | | | | | | | | | | | | |
| Barnett: | | | | | | | | | | | | | |
|
Natural gas (per Mcf)
|
| | | $ | 3.58 | | | | | $ | 1.62 | | |
|
Natural gas liquids (per Bbl)
|
| | | $ | 22.90 | | | | | $ | 4.66 | | |
|
Oil (per Bbl)
|
| | | $ | 61.46 | | | | | $ | 46.67 | | |
| NEPA: | | | | | | | | | | | | | |
|
Natural gas (per Mcf)
|
| | | $ | 2.34 | | | | | $ | 0.74 | | |
|
Natural gas liquids (per Bbl)
|
| | | $ | 0.00 | | | | | $ | 0.00 | | |
|
Oil (per Bbl)
|
| | | $ | 0.00 | | | | | $ | 0.00 | | |
|
Total Company (per Mcfe)
|
| | | $ | 3.38 | | | | | $ | 1.03 | | |
| Average Sales Prices (including impact of derivative settlements) | | | | | | | | | | | | | |
|
Natural gas (per Mcf)
|
| | | $ | 2.40 | | | | | $ | 1.87 | | |
|
Natural gas liquids (per Bbl)
|
| | | $ | 16.76 | | | | | $ | 12.57 | | |
|
Oil (per Bbl)
|
| | | $ | 61.46 | | | | | $ | 31.07 | | |
|
Total Company (per Mcfe)
|
| | | $ | 2.52 | | | | | $ | 1.90 | | |
| Average Production Cost (per Mcfe)(1) | | | | | | | | | | | | | |
|
Barnett
|
| | | $ | 1.31 | | | | | $ | 0.36 | | |
|
NEPA
|
| | | $ | 0.23 | | | | | $ | 0.22 | | |
|
Total Company
|
| | | $ | 1.06 | | | | | $ | 0.28 | | |
| | | | | | | | | |
December 31,
|
| |||||||||
| | | |
September 30,
2022 |
| |
2021
|
| |
2020
|
| |||||||||
| Estimated proved developed reserves: | | | | | | | | | | | | | | | | | | | |
|
Natural gas (MMcf)
|
| | | | 3,857,807 | | | | | | 2,494,926 | | | | | | 1,893,161 | | |
|
Producing
|
| | | | 3,466,758 | | | | | | 2,346,712 | | | | | | 1,893,161 | | |
|
Non-producing
|
| | | | 391,049 | | | | | | 148,214 | | | | | | 0 | | |
|
Natural gas liquids (MBbls)
|
| | | | 177,692 | | | | | | 151,433 | | | | | | 107,234 | | |
|
Producing
|
| | | | 163,830 | | | | | | 142,961 | | | | | | 107,234 | | |
|
Non-producing
|
| | | | 13,862 | | | | | | 8,472 | | | | | | 0 | | |
|
Oil (MBbls)
|
| | | | 1,123 | | | | | | 867 | | | | | | 723 | | |
|
Producing
|
| | | | 1,019 | | | | | | 876 | | | | | | 723 | | |
|
Non-producing
|
| | | | 104 | | | | | | 0 | | | | | | 0 | | |
|
Total estimated proved developed reserves (MMcfe)
|
| | | | 4,930,696 | | | | | | 3,408,723 | | | | | | 2,540,901 | | |
|
Producing
|
| | | | 4,455,853 | | | | | | 3,209,679 | | | | | | 2,540,901 | | |
|
Non-producing
|
| | | | 474,843 | | | | | | 199,044 | | | | | | 0 | | |
|
Standardized Measure (millions)
|
| | | $ | 6,150 | | | | | $ | 2,119 | | | | | $ | 504 | | |
|
PV-10 (millions)(2)(3)
|
| | | $ | 7,844 | | | | | $ | 2,672 | | | | | $ | 552 | | |
| Estimated proved undeveloped reserves: | | | | | | | | | | | | | | | | | | | |
|
Natural gas (MMcf)
|
| | | | 1,140,466 | | | | | | 950,359 | | | | | | 92,373 | | |
|
Natural gas liquids (MBbls)
|
| | | | 42,896 | | | | | | 13,722 | | | | | | — | | |
|
Oil (MBbls)
|
| | | | 620 | | | | | | 58 | | | | | | — | | |
|
Total estimated proved undeveloped reserves (MMcfe)(4)(5)
|
| | | | 1,401,561 | | | | | | 1,033,040 | | | | | | 92,373 | | |
|
Standardized Measure (millions)
|
| | | $ | 1,498 | | | | | $ | 294 | | | | | $ | 6 | | |
|
PV-10 (millions)(2)(6)
|
| | | $ | 1,974 | | | | | $ | 403 | | | | | $ | 9 | | |
| Estimated proved reserves: | | | | | | | | | | | | | | | | | | | |
|
Natural gas (MMcf)
|
| | | | 4,998,273 | | | | | | 3,445,285 | | | | | | 1,985,534 | | |
|
Natural gas liquids (MBbls)
|
| | | | 220,587 | | | | | | 165,155 | | | | | | 107,234 | | |
|
Oil (MBbls)
|
| | | | 1,743 | | | | | | 925 | | | | | | 723 | | |
|
Total estimated proved reserves (MMcfe)
|
| | | | 6,332,257 | | | | | | 4,441,763 | | | | | | 2,633,274 | | |
|
Standardized Measure (millions)
|
| | | $ | 7,648 | | | | | $ | 2,413 | | | | | $ | 510 | | |
|
PV-10 (millions)(2)(7)
|
| | | $ | 9,818 | | | | | $ | 3,074 | | | | | $ | 561 | | |
| | | | | | | | | |
December 31,
|
| |||||||||
| | | |
September 30,
2022 |
| |
2021
|
| |
2020
|
| |||||||||
| Estimated probable developed reserves: | | | | | | | | | | | | | | | | | | | |
|
Natural gas (MMcf)
|
| | | | 360,211 | | | | | | ― | | | | | | ― | | |
|
Natural gas liquids (MBbls)
|
| | | | 25,886 | | | | | | ― | | | | | | ― | | |
|
Oil (MBbls)
|
| | | | ― | | | | | | ― | | | | | | | | |
|
Total estimated probable developed reserves (MMcfe)(5)(8)
|
| | | | 515,527 | | | | | | ― | | | | | | ― | | |
|
Standardized Measure (millions)
|
| | | $ | 303 | | | | | $ | ― | | | | | $ | ― | | |
|
PV-10 (millions)(2)(9)
|
| | | $ | 401 | | | | | $ | ― | | | | | $ | ― | | |
| Estimated probable undeveloped reserves: | | | | | | | | | | | | | | | | | | | |
|
Natural gas (MMcf)
|
| | | | 580,321 | | | | | | 522,422 | | | | | | 61,884 | | |
|
Natural gas liquids (MBbls)
|
| | | | 41,231 | | | | | | 31,227 | | | | | | ― | | |
|
Oil (MBbls)
|
| | | | 1,625 | | | | | | 486 | | | | | | ― | | |
|
Total estimated probable undeveloped reserves (MMcfe)(5)(8)
|
| | | | 837,462 | | | | | | 712,725 | | | | | | 61,884 | | |
|
Standardized Measure (millions)
|
| | | $ | 548 | | | | | $ | 146 | | | | | $ | ― | | |
|
PV-10 (millions)(2)(10)
|
| | | $ | 725 | | | | | $ | 202 | | | | | $ | ― | | |
| Estimated probable reserves: | | | | | |||||||||||||||
|
Natural gas (MMcf)
|
| | | | 940,532 | | | | | | 522,442 | | | | | | 61,884 | | |
|
Natural gas liquids (MBbls)
|
| | | | 67,117 | | | | | | 31,227 | | | | | | ― | | |
|
Oil (MBbls)
|
| | | | 1,625 | | | | | | 486 | | | | | | ― | | |
|
Total estimated probable reserves (MMcfe)(5)(8)
|
| | | | 1,352,989 | | | | | | 712,725 | | | | | | 61,884 | | |
|
Standardized Measure (millions)
|
| | | $ | 851 | | | | | $ | 146 | | | | | $ | ― | | |
|
PV-10 (millions)(2)(11)
|
| | | $ | 1,126 | | | | | $ | 202 | | | | | $ | ― | | |
| Estimated possible developed reserves: | | | | | | | | | | | | | | | | | | | |
|
Natural gas (MMcf)
|
| | | | 107,126 | | | | | | — | | | | | | — | | |
|
Natural gas liquids (MBbls)
|
| | | | 9,999 | | | | | | — | | | | | | — | | |
|
Oil (MBbls)
|
| | | | — | | | | | | — | | | | | | | | |
|
Total estimated possible developed reserves (MMcfe)(5)(8)
|
| | | | 167,119 | | | | | | — | | | | | | — | | |
|
Standardized Measure (millions)
|
| | | $ | 73 | | | | | $ | — | | | | | $ | — | | |
|
PV-10 (millions)(2)(12)
|
| | | $ | 96 | | | | | $ | — | | | | | $ | — | | |
| Estimated possible undeveloped reserves: | | | | | | | | | | | | | | | | | | | |
|
Natural gas (MMcf)
|
| | | | 445,442 | | | | | | 381,941 | | | | | | — | | |
|
Natural gas liquids (MBbls)
|
| | | | 25,122 | | | | | | 32,047 | | | | | | — | | |
|
Oil (MBbls)
|
| | | | 1,364 | | | | | | 1,841 | | | | | | — | | |
|
Total estimated possible undeveloped reserves (MMcfe)(5)(8)
|
| | | | 604,358 | | | | | | 585,269 | | | | | | — | | |
|
Standardized Measure (millions)
|
| | | $ | 252 | | | | | $ | 51 | | | | | $ | — | | |
|
PV-10 (millions)(2)(13)
|
| | | $ | 336 | | | | | $ | 75 | | | | | $ | — | | |
| Estimated possible reserves: | | | | | | | | | | | | | | | | | | | |
|
Natural gas (MMcf)
|
| | | | 552,568 | | | | | | 381,941 | | | | | | ― | | |
|
Natural gas liquids (MBbls)
|
| | | | 35,121 | | | | | | 32,047 | | | | | | ― | | |
|
Oil (MBbls)
|
| | | | 1,364 | | | | | | 1,841 | | | | | | ― | | |
|
Total estimated possible reserves (MMcfe)(5)(8)
|
| | | | 771,477 | | | | | | 585,269 | | | | | | ― | | |
|
Standardized Measure (millions)
|
| | | $ | 325 | | | | | $ | 51 | | | | | $ | ― | | |
|
PV-10 (millions)(2)(14)
|
| | | $ | 432 | | | | | $ | 75 | | | | | $ | ― | | |
| | | |
September 30,
2022 |
| |
December 31,
|
| ||||||||||||
| | | |
2021
|
| |
2020
|
| ||||||||||||
|
PV-10 (millions)
|
| | | $ | 7,844 | | | | | $ | 2,672 | | | | | $ | 552 | | |
|
Present value of future income taxes discounted at 10%
|
| | | | (1,694) | | | | | | (553) | | | | | | (48) | | |
|
Standardized Measure
|
| | | $ | 6,150 | | | | | $ | 2,119 | | | | | $ | 504 | | |
| | | |
September 30,
2022 |
| |
December 31,
|
| ||||||||||||
| | | |
2021
|
| |
2020
|
| ||||||||||||
|
PV-10 (millions)
|
| | | $ | 1,974 | | | | | $ | 403 | | | | | $ | 9 | | |
|
Present value of future income taxes discounted at 10%
|
| | | | (476) | | | | | | (108) | | | | | | (3) | | |
|
Standardized Measure
|
| | | $ | 1,498 | | | | | $ | 294 | | | | | $ | 6 | | |
| | | |
September 30,
2022 |
| |
December 31,
|
| ||||||||||||
| | | |
2021
|
| |
2020
|
| ||||||||||||
|
PV-10 (millions)
|
| | | $ | 9,818 | | | | | $ | 3,074 | | | | | $ | 561 | | |
|
Present value of future income taxes discounted at 10%
|
| | | | 2,170 | | | | | | (661) | | | | | | (51) | | |
|
Standardized Measure
|
| | | $ | 7,648 | | | | | $ | 2,413 | | | | | $ | 510 | | |
| | | |
September 30,
2022 |
| |
December 31,
|
| ||||||||||||
| | | |
2021
|
| |
2020
|
| ||||||||||||
|
PV-10 (millions)
|
| | | $ | 401 | | | | | $ | — | | | | | $ | — | | |
|
Present value of future income taxes discounted at 10%
|
| | | | (98) | | | | | | — | | | | | | — | | |
|
Standardized Measure
|
| | | $ | 303 | | | | | $ | — | | | | | $ | — | | |
| | | |
September 30,
2022 |
| |
December 31,
|
| ||||||||||||
| | | |
2021
|
| |
2020
|
| ||||||||||||
|
PV-10 (millions)
|
| | | $ | 725 | | | | | $ | 202 | | | | | $ | — | | |
|
Present value of future income taxes discounted at 10%
|
| | | | (177) | | | | | | (56) | | | | | | — | | |
|
Standardized Measure
|
| | | $ | 548 | | | | | $ | 146 | | | | | $ | — | | |
| | | |
September 30,
2022 |
| |
December 31,
|
| ||||||||||||
| | | |
2021
|
| |
2020
|
| ||||||||||||
|
PV-10 (millions)
|
| | | $ | 1,126 | | | | | $ | 202 | | | | | $ | — | | |
|
Present value of future income taxes discounted at 10%
|
| | | | (275) | | | | | | (56) | | | | | | — | | |
|
Standardized Measure
|
| | | $ | 851 | | | | | $ | 146 | | | | | $ | — | | |
| | | |
September 30,
2022 |
| |
December 31,
|
| ||||||||||||
| | | |
2021
|
| |
2020
|
| ||||||||||||
|
PV-10 (millions)
|
| | | $ | 96 | | | | | $ | — | | | | | $ | — | | |
|
Present value of future income taxes discounted at 10%
|
| | | | (23) | | | | | | — | | | | | | — | | |
|
Standardized Measure
|
| | | $ | 73 | | | | | $ | — | | | | | $ | — | | |
| | | |
September 30,
2022 |
| |
December 31,
|
| ||||||||||||
| | | |
2021
|
| |
2020
|
| ||||||||||||
|
PV-10 (millions)
|
| | | $ | 336 | | | | | $ | 75 | | | | | $ | — | | |
|
Present value of future income taxes discounted at 10%
|
| | | | (85) | | | | | | (24) | | | | | | — | | |
|
Standardized Measure
|
| | | $ | 252 | | | | | $ | 51 | | | | | $ | — | | |
| | | |
September 30,
2022 |
| |
December 31,
|
| ||||||||||||
| | | |
2021
|
| |
2020
|
| ||||||||||||
|
PV-10 (millions)
|
| | | $ | 432 | | | | | $ | 75 | | | | | $ | — | | |
|
Present value of future income taxes discounted at 10%
|
| | | | (107) | | | | | | (24) | | | | | | — | | |
|
Standardized Measure
|
| | | $ | 325 | | | | | $ | 51 | | | | | $ | — | | |
| | | |
September 30,
2022 |
| |||
| Estimated proved developed reserves at NYMEX Strip Pricing: | | | | | | | |
|
Natural gas (MMcf)
|
| | | | 3,664,049 | | |
|
Producing
|
| | | | 3,275,209 | | |
|
Non-producing
|
| | | | 388,839 | | |
|
Natural gas liquids (MBbls)
|
| | | | 167,260 | | |
|
Producing
|
| | | | 153,398 | | |
|
Non-producing
|
| | | | 13,862 | | |
|
Oil (MBbls)
|
| | | | 1,059 | | |
|
Producing
|
| | | | 955 | | |
|
Non-producing
|
| | | | 104 | | |
|
Total estimated proved developed reserves (MMcfe)
|
| | | | 4,673,960 | | |
|
Producing
|
| | | | 4,201,327 | | |
| | | |
September 30,
2022 |
| |||
|
Non-producing
|
| | | | 472,633 | | |
|
Standardized Measure (millions)
|
| | | | 3,846 | | |
|
PV-10 (millions)(1)
|
| | | | 4,847 | | |
| Estimated proved undeveloped reserves at NYMEX Strip Pricing: | | | | | | | |
|
Natural gas (MMcf)
|
| | | | 1,139,781 | | |
|
Natural gas liquids (MBbls)
|
| | | | 42,895 | | |
|
Oil (MBbls)
|
| | | | 620 | | |
|
Total estimated proved undeveloped reserves (MMcfe)(2)(3)
|
| | | | 1,400,871 | | |
|
Standardized Measure (millions)
|
| | | | 717 | | |
|
PV-10 (millions)(3)(4)
|
| | | | 960 | | |
| Estimated proved reserves at NYMEX Strip Pricing: | | | | | | | |
|
Natural gas (MMcf)
|
| | | | 4,803,830 | | |
|
Natural gas liquids (MBbls)
|
| | | | 210,155 | | |
|
Oil (MBbls)
|
| | | | 1,679 | | |
|
Total estimated proved reserves (MMcfe)
|
| | | | 6,074,831 | | |
|
Standardized Measure (millions)
|
| | | $ | 4,563 | | |
|
PV-10 (millions)(5)
|
| | | $ | 5,807 | | |
| Estimated probable developed reserves at NYMEX Strip Pricing: | | | | | | | |
|
Natural gas (MMcf)
|
| | | | 349,341 | | |
|
Natural gas liquids (MBbls)
|
| | | | 25,819 | | |
|
Oil (MBbls)
|
| | | | | | |
|
Total estimated probable developed reserves (MMcfe)(3)(6)
|
| | | | 504,256 | | |
|
Standardized Measure (millions)
|
| | | $ | 122 | | |
|
PV-10 (millions)(7)
|
| | | $ | 167 | | |
| Estimated probable undeveloped reserves at NYMEX Strip Pricing: | | | | | | | |
|
Natural gas (MMcf)
|
| | | | 573,946 | | |
|
Natural gas liquids (MBbls)
|
| | | | 40,845 | | |
|
Oil (MBbls)
|
| | | | 1,605 | | |
|
Total estimated probable undeveloped reserves (MMcfe)(3)(6)
|
| | | | 828,644 | | |
|
Standardized Measure (millions)
|
| | | $ | 184 | | |
|
PV-10 (millions)(8)
|
| | | $ | 256 | | |
| Estimated probable reserves at NYMEX Strip Pricing: | | | | | | | |
|
Natural gas (MMcf)
|
| | | | 923,286 | | |
|
Natural gas liquids (MBbls)
|
| | | | 66,664 | | |
|
Oil (MBbls)
|
| | | | 1,605 | | |
|
Total estimated probable reserves (MMcfe)(3)(6)
|
| | | | 1,332,901 | | |
|
Standardized Measure (millions)
|
| | | $ | 306 | | |
|
PV-10 (millions)(9)
|
| | | $ | 423 | | |
| Estimated possible developed reserves at NYMEX Strip Pricing: | | | | | | | |
|
Natural gas (MMcf)
|
| | | | 105,234 | | |
|
Natural gas liquids (MBbls)
|
| | | | 9,999 | | |
|
Oil (MBbls)
|
| | | | — | | |
|
Total estimated possible developed reserves (MMcfe)(3)(6)
|
| | | | 165,227 | | |
|
Standardized Measure (millions)
|
| | | $ | 33 | | |
|
PV-10 (millions)(10)
|
| | | $ | 44 | | |
| Estimated possible undeveloped reserves at NYMEX Strip Pricing: | | | | | | | |
| | | |
September 30,
2022 |
| |||
|
Natural gas (MMcf)
|
| | | | 416,309 | | |
|
Natural gas liquids (MBbls)
|
| | | | 20,700 | | |
|
Oil (MBbls)
|
| | | | 1,128 | | |
|
Total estimated possible undeveloped reserves (MMcfe)(3)(6)
|
| | | | 547,281 | | |
|
Standardized Measure (millions)
|
| | | $ | 66 | | |
|
PV-10 (millions)(11)
|
| | | $ | 95 | | |
| Estimated possible reserves at NYMEX Strip Pricing: | | | | | | | |
|
Natural gas (MMcf)
|
| | | | 521,542 | | |
|
Natural gas liquids (MBbls)
|
| | | | 30,699 | | |
|
Oil (MBbls)
|
| | | | 1,128 | | |
|
Total estimated possible reserves (MMcfe)(3)(6)
|
| | | | 712,508 | | |
|
Standardized Measure (millions)
|
| | | $ | 99 | | |
|
PV-10 (millions)(12)
|
| | | $ | 139 | | |
| | | |
September 30,
2022 |
| |||
|
PV-10 (millions)
|
| | | $ | 4,847 | | |
|
Present value of future income taxes discounted at 10%
|
| | | | (1,001) | | |
|
Standardized Measure
|
| | | $ | 3,846 | | |
| | | |
September 30,
2022 |
| |||
|
PV-10 (millions)
|
| | | $ | 960 | | |
|
Present value of future income taxes discounted at 10%
|
| | | | (243) | | |
|
Standardized Measure
|
| | | $ | 717 | | |
| | | |
September 30,
2022 |
| |||
|
PV-10 (millions)
|
| | | $ | 5,807 | | |
|
Present value of future income taxes discounted at 10%
|
| | | | (1,244) | | |
|
Standardized Measure
|
| | | $ | 4,563 | | |
| | | |
September 30,
2022 |
| |||
|
PV-10 (millions)
|
| | | $ | 167 | | |
|
Present value of future income taxes discounted at 10%
|
| | | | (45) | | |
|
Standardized Measure
|
| | | $ | 122 | | |
| | | |
September 30,
2022 |
| |||
|
PV-10 (millions)
|
| | | $ | 256 | | |
|
Present value of future income taxes discounted at 10%
|
| | | | (72) | | |
|
Standardized Measure
|
| | | $ | 184 | | |
| | | |
September 30,
2022 |
| |||
|
PV-10 (millions)
|
| | | $ | 423 | | |
|
Present value of future income taxes discounted at 10%
|
| | | | (117) | | |
|
Standardized Measure
|
| | | $ | 306 | | |
| | | |
September 30,
2022 |
| |||
|
PV-10 (millions)
|
| | | $ | 44 | | |
|
Present value of future income taxes discounted at 10%
|
| | | | (11) | | |
|
Standardized Measure
|
| | | $ | 33 | | |
| | | |
September 30,
2022 |
| |||
|
PV-10 (millions)
|
| | | $ | 95 | | |
|
Present value of future income taxes discounted at 10%
|
| | | | (29) | | |
|
Standardized Measure
|
| | | $ | 66 | | |
| | | |
September 30,
2022 |
| |||
|
PV-10 (millions)
|
| | | $ | 139 | | |
|
Present value of future income taxes discounted at 10%
|
| | | | (40) | | |
|
Standardized Measure
|
| | | $ | 99 | | |
|
Name
|
| |
Age
|
| |
Current Position(s) with the Company
|
|
| Christopher P. Kalnin | | |
45
|
| |
Chief Executive Officer and Director
|
|
| John T. Jimenez | | |
53
|
| | Chief Financial Officer | |
| Eric S. Jacobsen | | |
52
|
| | Chief Operating Officer | |
| Barry S. Turcotte | | |
52
|
| | Chief Accounting Officer | |
| Brid C. Kealey | | |
59
|
| | Chief Human Resources Officer | |
| Lindsay B. Larrick | | |
40
|
| | Chief Legal Officer | |
| Ethan Ngo | | |
41
|
| | Chief Technical Services Officer | |
| Chanin Vongkusolkit | | |
70
|
| | Chairman of the Board | |
| Somruedee Chaimongkol | | |
61
|
| | Director | |
| Joseph R. Davis | | |
72
|
| | Director | |
| Akaraphong Dayananda | | |
63
|
| | Director | |
| Carla S. Mashinski | | |
60
|
| | Director | |
| Thiti Mekavichai | | |
61
|
| | Director | |
| Charles C. Miller III | | |
70
|
| | Director | |
| Sunit S. Patel | | |
61
|
| | Director | |
| Anon Sirisaengtaksin | | |
70
|
| | Director | |
| Sinon Vongkusolkit | | |
32
|
| | Director | |
|
Name and Position
(as of December 31, 2021) |
| |
Year
|
| |
Salary
($) |
| |
Bonus
($)(1) |
| |
Stock awards
($)(2) |
| |
Nonequity
incentive plan compensation ($)(3) |
| |
All other
compensation ($)(4) |
| |
Total ($)
|
|
|
Christopher Kalnin
Chief Executive Officer(5) |
| |
2021
|
| |
501,923
|
| |
—
|
| |
16,896,074
|
| |
795,000
|
| |
11,928
|
| |
18,204,925
|
|
|
John Jimenez
Chief Financial Officer(6) |
| |
2021
|
| |
250,385
|
| |
250,000
|
| |
8,009,952
|
| |
120,204
|
| |
31,339
|
| |
8,661,880
|
|
|
Eric Jacobsen
Chief Operating Officer |
| |
2021
|
| |
401,539
|
| |
—
|
| |
9,591,205
|
| |
224,190
|
| |
22,340
|
| |
10,239,274
|
|
| | | |
Company 401(k)
Contribution ($)(a) |
| |
Life Insurance
Premiums ($)(b) |
| |
Relocation
($)(c) |
| |||||||||
|
Christopher Kalnin
|
| | | | 11,808 | | | | | | 120 | | | | | | — | | |
|
John Jimenez
|
| | | | 16,956 | | | | | | 120 | | | | | | 14,263 | | |
|
Eric Jacobsen
|
| | | | 22,220 | | | | | | 120 | | | | | | — | | |
| | | |
Stock Awards
|
| |||||||||||||||||||||
|
Name
|
| |
Number of
shares or units of stock that have not vested (#) |
| |
Market value of
shares or units of stock that have not vested ($) |
| |
Equity incentive
plan awards: Number of unearned shares, units or other rights that have not vested (#) |
| |
Equity incentive
plan awards: Market or payout value of unearned shares, units or other rights that have not vested ($) |
| ||||||||||||
|
Christopher Kalnin
|
| | | | — | | | | | | — | | | | | | 912,520(1) | | | | | | 10,722,110 | | |
|
Christopher Kalnin
|
| | | | 73,328(2) | | | | | | 861,604 | | | | | | — | | | | | | — | | |
|
John Jimenez
|
| | | | — | | | | | | — | | | | | | 432,600(1) | | | | | | 5,083,050 | | |
|
John Jimenez
|
| | | | 34,763(3) | | | | | | 408,465 | | | | | | — | | | | | | — | | |
|
Eric Jacobsen
|
| | | | — | | | | | | — | | | | | | 518,000(1) | | | | | | 6,086,500 | | |
|
Eric Jacobsen
|
| | | | 41,625(2) | | | | | | 489,094 | | | | | | — | | | | | | — | | |
|
Name(1)
|
| |
2021 Fees earned
or paid in cash ($)(2) |
| |
Total($)
|
| ||||||
|
Chanin Vongkusolkit
|
| | | | — | | | | | | — | | |
|
Somruedee Chaimongkol
|
| | | | — | | | | | | — | | |
|
Joseph R. Davis
|
| | | | 57,500 | | | | | | 57,500 | | |
|
Akaraphong Dayananda
|
| | | | — | | | | | | — | | |
|
Thiti Mekavichai
|
| | | | — | | | | | | — | | |
|
Charles C. Miller III
|
| | | | 57,500 | | | | | | 57,500 | | |
|
Anon Sirisaengtaksin
|
| | | | — | | | | | | — | | |
| | | |
Beneficial Ownership
Before the Offering |
| |
Beneficial Ownership
After the Offering |
| |||||||||||||||||||||
| | | |
Common
Stock |
| |
Total
Voting Power Before the Offering |
| |
Common
Stock |
| |
Total
Voting Power After the Offering |
| |||||||||||||||
|
Name of Beneficial Owner
|
| |
Shares
|
| |
%
|
| |
%
|
| |
Shares
|
| |
%
|
| |
%
|
| |||||||||
| Named Executive Officers and Directors: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Christopher P. Kalnin
|
| | | | 3,599,306(1) | | | | | | 3.1% | | | | | | 3.1% | | | | | | | | | | | |
|
John T. Jimenez
|
| | | | 24,202(2) | | | | | | * | | | | | | * | | | | | | | | | | | |
|
Eric S. Jacobsen
|
| | | | 54,283(3) | | | | | | * | | | | | | * | | | | | | | | | | | |
|
Barry S. Turcotte
|
| | | | — | | | | | | —% | | | | | | —% | | | | | | | | | | | |
|
Somruedee Chaimongkol
|
| | | | — | | | | | | —% | | | | | | —% | | | | | | | | | | | |
|
Joseph R. Davis
|
| | | | 46,000 | | | | | | * | | | | | | * | | | | | | | | | | | |
|
Akaraphong Dayananda
|
| | | | — | | | | | | —% | | | | | | —% | | | | | | | | | | | |
|
Carla S. Mashinski
|
| | | | — | | | | | | —% | | | | | | —% | | | | | | | | | | | |
|
Thiti Mekavichai
|
| | | | 37,000 | | | | | | * | | | | | | * | | | | | | | | | | | |
|
Charles C. Miller III
|
| | | | 175,000 | | | | | | * | | | | | | * | | | | | | | | | | | |
|
Sunit S. Patel
|
| | | | — | | | | | | —% | | | | | | —% | | | | | | | | | | | |
|
Anon Sirisaengtaksin
|
| | | | — | | | | | | —% | | | | | | —% | | | | | | | | | | | |
|
Chanin Vongkusolkit
|
| | | | — | | | | | | —% | | | | | | —% | | | | | | | | | | | |
|
Sinon Vongkusolkit
|
| | | | — | | | | | | —% | | | | | | —% | | | | | | | | | | | |
|
All executive officers and directors as a group (17 persons)
|
| | | | 4,292,460 | | | | | | 3.7% | | | | | | 3.7% | | | | | | | | | | | |
| 5% Stockholders: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Banpu North America Corporation(4)
|
| | | | 112,755,229 | | | | | | 96.1% | | | | | | 96.1% | | | | | | | | | | | |
|
Underwriter
|
| |
Number
of Shares |
| |||
|
Credit Suisse Securities (USA) LLC
|
| | | | | | |
|
BofA Securities, Inc.
|
| | | | | | |
|
Barclays Capital Inc.
|
| | | | | | |
|
Citigroup Global Markets Inc.
|
| | | | | | |
|
Evercore Group L.L.C.
|
| | | | | | |
|
Jefferies LLC
|
| | | | | | |
|
Tudor, Pickering, Holt & Co. Securities, LLC
|
| | | | | | |
|
Susquehanna Financial Group, LLLP
|
| | | | | | |
|
SMBC Nikko Securities America, Inc.
|
| | | | | | |
|
Total
|
| | | | | | |
| | | |
Per Share
|
| |
Total
|
| ||||||||||||||||||
| | | |
Without
Over-allotment |
| |
With
Over-allotment |
| |
Without
Over-allotment |
| |
With
Over-allotment |
| ||||||||||||
|
Underwriting discounts and commissions payable by us
|
| | | $ | | | | | $ | | | | | $ | | | | | $ | | | ||||
| | | | | | F-2 | | | |
| | | | | | F-3 | | | |
| | | | | | F-5 | | | |
| | | | | | F-6 | | | |
| | | | | | F-8 | | | |
| | | | | | F-9 | | | |
| | Unaudited Condensed Consolidated Financial Statements | | | | | | | |
| | | | | | F-53 | | | |
| | | | | | F-55 | | | |
| | | | | | F-57 | | | |
| | | | | | F-59 | | | |
| | | | | | F-61 | | | |
| | EXXONMOBIL BARNETT ASSETS | | | | | | | |
| | | | | | F-83 | | | |
| | | | | | F-85 | | | |
| | | | | | F-86 | | | |
| | | | | | F-88 | | |
| | | |
December 31,
|
| |||||||||
| | | |
2021
|
| |
2020
|
| ||||||
| Assets | | | | | | | | | | | | | |
|
Current assets
|
| | | | | | | | | | | | |
|
Cash and cash equivalents
|
| | | $ | 134,667 | | | | | $ | 17,445 | | |
|
Accounts receivable, net
|
| | | | 104,143 | | | | | | 79,454 | | |
|
Accounts receivable, related parties
|
| | | | 3,498 | | | | | | — | | |
|
Prepaid expenses
|
| | | | 4,109 | | | | | | 3,770 | | |
|
Inventory
|
| | | | 4,975 | | | | | | 2,878 | | |
|
Commodity derivative assets
|
| | | | 9,986 | | | | | | 15,484 | | |
|
Total current assets
|
| | | | 261,378 | | | | | | 119,031 | | |
|
Natural gas properties and equipment
|
| | | | | | | | | | | | |
|
Developed properties
|
| | | | 1,378,629 | | | | | | 1,297,112 | | |
|
Undeveloped properties
|
| | | | 16,835 | | | | | | 13,265 | | |
|
Midstream assets
|
| | | | 55,363 | | | | | | 55,313 | | |
|
Accumulated depreciation, depletion, and amortization
|
| | | | (274,710) | | | | | | (196,393) | | |
|
Total natural gas properties, net
|
| | | | 1,176,117 | | | | | | 1,169,297 | | |
|
Other property and equipment, net
|
| | | | 22,124 | | | | | | 23,168 | | |
|
Commodity derivative assets
|
| | | | — | | | | | | 15 | | |
|
Right of use assets
|
| | | | 14,233 | | | | | | 9,860 | | |
|
Goodwill
|
| | | | 18,417 | | | | | | 18,417 | | |
|
Investment in joint venture
|
| | | | 89,320 | | | | | | — | | |
|
Deferred tax asset
|
| | | | 35,504 | | | | | | — | | |
|
Other noncurrent assets
|
| | | | 3,735 | | | | | | 2,704 | | |
|
Total assets
|
| | | $ | 1,620,828 | | | | | $ | 1,342,492 | | |
| Liabilities, mezzanine equity and stockholders’ equity | | | | | | | | | | | | | |
|
Current liabilities
|
| | | | | | | | | | | | |
|
Accounts payable and accrued liabilities
|
| | | $ | 166,836 | | | | | $ | 16,930 | | |
|
Right of use liabilities
|
| | | | 10,713 | | | | | | 6,534 | | |
|
Contingent consideration payable
|
| | | | 65,000 | | | | | | — | | |
|
Commodity derivative liabilities
|
| | | | 91,156 | | | | | | — | | |
|
Income taxes payable to related party
|
| | | | 30,660 | | | | | | 1,217 | | |
|
Notes payable to related party
|
| | | | 166,000 | | | | | | 24,000 | | |
|
Total current liabilities
|
| | | | 530,365 | | | | | | 48,681 | | |
|
Asset retirement obligations
|
| | | | 158,968 | | | | | | 148,826 | | |
|
Contingent consideration
|
| | | | 142,533 | | | | | | 12,565 | | |
|
Other contingent liabilities
|
| | | | 5,669 | | | | | | 5,329 | | |
|
Commodity derivative liabilities
|
| | | | 23,662 | | | | | | 5,170 | | |
|
Right of use liabilities
|
| | | | 4,692 | | | | | | 4,604 | | |
|
Deferred tax liability
|
| | | | — | | | | | | 37,249 | | |
|
Total liabilities
|
| | | | 865,889 | | | | | | 262,424 | | |
| | | |
December 31,
|
| |||||||||
| | | |
2021
|
| |
2020
|
| ||||||
|
Commitments and contingencies (Note 15)
|
| | | | | | | | | | | | |
|
Mezzanine equity
|
| | | | | | | | | | | | |
|
Preferred stock, $10 par value; 80,000 authorized shares; 0 and 9,900 shares
issued and outstanding at December 31, 2021 and 2020, respectively |
| | | | — | | | | | | 94,924 | | |
|
Common stock – Minority ownership puttable shares, 4,357 authorized shares; 4,357 and 4,229 shares issued and outstanding at December 31, 2021 and 2020, respectively
|
| | | | 49,841 | | | | | | 42,288 | | |
|
Equity-based compensation
|
| | | | 34,006 | | | | | | — | | |
|
Total mezzanine equity
|
| | | | 83,847 | | | | | | 137,212 | | |
|
Stockholders’ equity
|
| | | | | | | | | | | | |
|
Common stock, $.01 par value; 300,000 authorized shares; 112,745 and 112,855 shares issued and outstanding at December 31, 2021 and 2020, respectively
|
| | | | 1,132 | | | | | | 1,129 | | |
|
Treasury stock, shares at cost; 385 and 0 shares at December 31, 2021 and 2020, respectively
|
| | | | (3,970) | | | | | | — | | |
|
Additional paid-in capital
|
| | | | 933,622 | | | | | | 968,500 | | |
|
Accumulated deficit
|
| | | | (259,692) | | | | | | (26,773) | | |
|
Total stockholders’ equity
|
| | | | 671,092 | | | | | | 942,856 | | |
|
Total liabilities, mezzanine equity and stockholders’ equity
|
| | | $ | 1,620,828 | | | | | $ | 1,342,492 | | |
| | |||||||||||||
| | | |
Year Ended December 31,
|
| |||||||||
| | | |
2021
|
| |
2020
|
| ||||||
| Revenues and other operating income | | | | | | | | | | | | | |
|
Natural gas, NGL and oil sales
|
| | | $ | 829,745 | | | | | $ | 115,043 | | |
|
Non-operated midstream revenues
|
| | | | 6,917 | | | | | | 7,458 | | |
|
Derivative (losses) gains, net
|
| | | | (383,847) | | | | | | 20,755 | | |
|
Marketing revenues
|
| | | | 52,616 | | | | | | — | | |
|
Other
|
| | | | 251 | | | | | | 33 | | |
|
Total revenues and other operating income
|
| | | | 505,682 | | | | | | 143,289 | | |
| Operating expenses | | | | | | | | | | | | | |
|
Lease operating and workover
|
| | | | 88,105 | | | | | | 31,260 | | |
|
Taxes other than income
|
| | | | 45,650 | | | | | | 5,151 | | |
|
Gathering and transportation
|
| | | | 173,587 | | | | | | — | | |
|
Accretion of asset retirement obligations
|
| | | | 10,030 | | | | | | 3,211 | | |
|
Depreciation, depletion and amortization
|
| | | | 81,986 | | | | | | 83,388 | | |
|
Exploration and impairment
|
| | | | 34 | | | | | | 560 | | |
|
General and administrative
|
| | | | 85,740 | | | | | | 29,442 | | |
|
Accretion of right of use liabilities
|
| | | | 227 | | | | | | 184 | | |
|
Total operating expenses
|
| | | | 485,359 | | | | | | 153,196 | | |
|
Income (loss) from operations
|
| | | | 20,323 | | | | | | (9,907) | | |
| Other income and expense | | | | | | | | | | | | | |
|
(Loss) gain on contingent consideration liabilities
|
| | | | (194,968) | | | | | | 7,135 | | |
|
Interest expense
|
| | | | (2,134) | | | | | | (1,713) | | |
|
Other income
|
| | | | 872 | | | | | | — | | |
|
Income from equity affiliates
|
| | | | 910 | | | | | | — | | |
|
Interest income
|
| | | | 8 | | | | | | 121 | | |
|
Loss before income taxes
|
| | | | (174,989) | | | | | | (4,364) | | |
|
Income tax benefit (expense)
|
| | | | 40,526 | | | | | | (38,982) | | |
|
Net loss and comprehensive loss attributable to BKV Corporation
|
| | | | (134,463) | | | | | | (43,346) | | |
|
Less accretion of preferred stock to redemption value
|
| | | | (3,745) | | | | | | — | | |
|
Less preferred stock dividends
|
| | | | (9,900) | | | | | | (460) | | |
|
Less deemed dividend on redemption of preferred stock
|
| | | | (22,606) | | | | | | — | | |
|
Net loss and comprehensive loss attributable to common stockholders
|
| | | $ | (170,714) | | | | | $ | (43,806) | | |
| Net loss and comprehensive loss per common share: | | | | | | | | | | | | | |
|
Basic and diluted
|
| | | $ | (1.46) | | | | | $ | (0.42) | | |
| Weighted average number of common shares outstanding: | | | | | | | | | | | | | |
|
Basic and diluted
|
| | | | 116,904 | | | | | | 105,275 | | |
| | | |
Year Ended December 31,
|
| |||||||||
| | | |
2021
|
| |
2020
|
| ||||||
| Cash flows from operating activities: | | | | | | | | | | | | | |
|
Net loss
|
| | | $ | (134,463) | | | | | $ | (43,346) | | |
|
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
|
| | | | | | | | | | | | |
|
Depreciation, depletion and amortization
|
| | | | 88,473 | | | | | | 86,644 | | |
|
Equity-based compensation expense
|
| | | | 30,387 | | | | | | — | | |
|
Accretion of asset retirement obligations
|
| | | | 10,030 | | | | | | 3,211 | | |
|
Accretion of right of use liabilities
|
| | | | 330 | | | | | | 336 | | |
|
Deferred income tax (benefit) expense
|
| | | | (72,753) | | | | | | 37,750 | | |
|
Unrealized derivative losses (gains), net
|
| | | | 115,161 | | | | | | (10,329) | | |
|
Loss (gain) on contingent consideration liabilities
|
| | | | 194,968 | | | | | | (7,135) | | |
|
Income from equity affiliates
|
| | | | (910) | | | | | | — | | |
|
Loss on the sale of assets
|
| | | | 48 | | | | | | — | | |
|
Changes in operating assets and liabilities, net of effect of business acquired:
|
| | | | | | | | | | | | |
|
Accounts receivable, net
|
| | | | (19,568) | | | | | | (38,991) | | |
|
Accounts receivable, related parties
|
| | | | (3,498) | | | | | | — | | |
|
Prepaid expenses
|
| | | | (339) | | | | | | (1,628) | | |
|
Inventory
|
| | | | (2,097) | | | | | | (95) | | |
|
Other noncurrent assets
|
| | | | (1,030) | | | | | | 92 | | |
|
Accounts payable and accrued liabilities
|
| | | | 94,299 | | | | | | (25,221) | | |
|
Commodity derivative settlements payable/receivable
|
| | | | 38,130 | | | | | | (5,489) | | |
|
Right of use liabilities
|
| | | | (7,313) | | | | | | (3,910) | | |
|
Income taxes payable to related party
|
| | | | 29,443 | | | | | | 1,217 | | |
|
Payable to related party
|
| | | | — | | | | | | (511) | | |
|
Asset retirement expenditures
|
| | | | (1,165) | | | | | | — | | |
|
Net cash provided by (used in) operating activities
|
| | | | 358,133 | | | | | | (7,405) | | |
| Cash flows from investing activities: | | | | | | | | | | | | | |
|
Investment in joint venture
|
| | | | (88,410) | | | | | | — | | |
|
Acquisition of natural gas properties
|
| | | | (2,528) | | | | | | (501,712) | | |
|
Business combination, net of cash acquired
|
| | | | — | | | | | | 311 | | |
|
Acquisition of undeveloped natural gas properties
|
| | | | (5,024) | | | | | | (2,064) | | |
|
Investment in other property and equipment
|
| | | | (2,249) | | | | | | (1,187) | | |
|
Development of natural gas properties
|
| | | | (63,932) | | | | | | (9,340) | | |
|
Proceeds from the sale of other property and equipment
|
| | | | 285 | | | | | | — | | |
|
Net cash used in investing activities
|
| | | | (161,858) | | | | | | (513,992) | | |
| | | |
Year Ended December 31,
|
| |||||||||
| | | |
2021
|
| |
2020
|
| ||||||
| Cash flows from financing activities: | | | | | | | | | | | | | |
|
Proceeds from notes payable from related party
|
| | | | 166,000 | | | | | | 129,000 | | |
|
Payments on notes payable to related party
|
| | | | (24,000) | | | | | | (105,000) | | |
|
Proceeds from the issuance of common stock and other equity contributions
|
| | | | — | | | | | | 323,799 | | |
|
Proceeds from the issuance of preferred stock
|
| | | | — | | | | | | 94,924 | | |
|
Redemption of minority ownership puttable shares
|
| | | | (2,754) | | | | | | — | | |
|
Issuance of minority ownership puttable shares
|
| | | | 3,177 | | | | | | — | | |
|
Dividends paid to preferred stock shareholders
|
| | | | (10,330) | | | | | | — | | |
|
Redemption of preferred stock
|
| | | | (121,275) | | | | | | — | | |
|
Dividends paid to common stock shareholders
|
| | | | (88,126) | | | | | | — | | |
|
Redemption of common stock
|
| | | | (1,106) | | | | | | — | | |
|
Purchase of common stock issued through equity-based compensation plan
|
| | | | (110) | | | | | | — | | |
|
Net share settlements, equity-based compensation
|
| | | | (529) | | | | | | — | | |
|
Net cash (used in) provided by financing activities
|
| | | | (79,053) | | | | | | 442,723 | | |
|
Net increase (decrease) in cash, cash equivalents and restricted cash
|
| | | | 117,222 | | | | | | (78,674) | | |
|
Cash and cash equivalents, beginning of period
|
| | | | 17,445 | | | | | | 96,119 | | |
|
Cash and cash equivalents, end of period
|
| | | $ | 134,667 | | | | | $ | 17,445 | | |
| Supplemental cash flow information: | | | | | | | | | | | | | |
|
Cash payments for:
|
| | | | | | | | | | | | |
|
Interest
|
| | | $ | 393 | | | | | $ | 1,523 | | |
|
Non-cash investing and financing activities:
|
| | | | | | | | | | | | |
|
Increase (decrease) in accrued capital expenditures
|
| | | $ | 12,297 | | | | | $ | (1,377) | | |
|
Additions to asset retirement obligations
|
| | | $ | 923 | | | | | $ | 772 | | |
|
Additions to operating assets and liabilities for business combination, net of cash acquired
|
| | | $ | — | | | | | $ | 19,689 | | |
|
Additions to right of use assets and liabilities
|
| | | $ | 11,249 | | | | | $ | 7,093 | | |
|
Adjustment of minority ownership puttable shares to redemption value
|
| | | $ | 7,042 | | | | | $ | — | | |
|
Adjustment of equity-based compensation to redemption value
|
| | | $ | 4,236 | | | | | $ | — | | |
|
Impact of redemption of minority interest puttable shares on additional paid-in capital, common stock and treasury stock
|
| | | $ | 2,754 | | | | | $ | — | | |
|
Accretion of preferred stock to redemption value
|
| | | $ | 3,745 | | | | | $ | — | | |
| | | |
Stockholders’ Equity and Partners’ Capital
|
| |
Mezzanine Equity
|
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | | |
Common Stock
|
| |
Treasury
|
| |
Additional
Paid-in Capital |
| |
Accumulated
Deficit |
| |
Total
Stock-holders’ Equity |
| |
Total
Partners’ Capital |
| |
Preferred
Stock |
| |
Common Stock
|
| |
Equity-based
compensation |
| |
Total
Mezzanine Equity |
| ||||||||||||||||||||||||||||||||||||||||||
| | | |
Shares
|
| |
Amount
|
| |
Shares
|
| |
Amount
|
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Balances, January 1, 2020
|
| | | | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 684,190 | | | | | $ | — | | | | | | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
|
Contributed capital
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 100,000 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
|
Net loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (26,773) | | | | | | (26,773) | | | | | | (16,573) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
|
Corporatization
|
| | | | 90,471 | | | | | | 905 | | | | | | — | | | | | | 744,424 | | | | | | — | | | | | | 745,329 | | | | | | (767,617) | | | | | | — | | | | | | 2,229 | | | | | | 22,288 | | | | | | — | | | | | | 22,288 | | |
|
Shares issued in business combination
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 2,000 | | | | | | 20,000 | | | | | | — | | | | | | 20,000 | | |
|
Issuance of common stock
|
| | | | 22,384 | | | | | | 224 | | | | | | — | | | | | | 223,575 | | | | | | — | | | | | | 223,799 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
|
Issuance of preferred stock
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 94,924 | | | | | | — | | | | | | — | | | | | | — | | | | | | 94,924 | | |
|
Other, net
|
| | | | — | | | | | | — | | | | | | — | | | | | | 501 | | | | | | — | | | | | | 501 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
|
Balances, December 31, 2020
|
| | | | 112,855 | | | | | $ | 1,129 | | | | | $ | — | | | | | $ | 968,500 | | | | | $ | (26,773) | | | | | $ | 942,856 | | | | | $ | — | | | | | $ | 94,924 | | | | | | 4,229 | | | | | $ | 42,288 | | | | | $ | — | | | | | $ | 137,212 | | |
|
Net loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (134,463) | | | | | | (134,463) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
|
Dividend declared, preferred stock shareholders ($0.25 per share)
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (10,330) | | | | | | (10,330) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
|
Accretion of preferred stock to redemption value
|
| | | | — | | | | | | — | | | | | | — | | | | | | (3,745) | | | | | | — | | | | | | (3,745) | | | | | | — | | | | | | 3,745 | | | | | | — | | | | | | — | | | | | | — | | | | | | 3,745 | | |
|
Deemed dividend, preferred stock
shareholders |
| | | | — | | | | | | — | | | | | | — | | | | | | (22,606) | | | | | | — | | | | | | (22,606) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
|
Redemption of preferred stock
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (98,669) | | | | | | — | | | | | | — | | | | | | — | | | | | | (98,669) | | |
|
Redemption of common stock
|
| | | | (100) | | | | | | — | | | | | | (1,106) | | | | | | — | | | | | | — | | | | | | (1,106) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
|
Purchase of vested equity-based compensation award shares of common stock
|
| | | | (10) | | | | | | — | | | | | | (110) | | | | | | — | | | | | | — | | | | | | (110) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
|
Redemption of minority ownership puttable common stock shares
|
| | | | — | | | | | | 3 | | | | | | (2,754) | | | | | | 2,751 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (275) | | | | | | (2,754) | | | | | | — | | | | | | (2,754) | | |
|
Dividend declared ($0.75 per share)
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (88,126) | | | | | | (88,126) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
|
Issuance of common stock from employee stock purchase
plan |
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 287 | | | | | | 3,265 | | | | | | — | | | | | | 3,265 | | |
|
Adjustment of minority ownership puttable shares to redemption value
|
| | | | — | | | | | | — | | | | | | — | | | | | | (7,042) | | | | | | — | | | | | | (7,042) | | | | | | — | | | | | | — | | | | | | — | | | | | | 7,042 | | | | | | — | | | | | | 7,042 | | |
|
Issuance of common stock upon vesting of equity-based compensation awards
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 116 | | | | | | — | | | | | | — | | | | | | — | | |
|
Impact of modification of equity-based compensation plan
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 25,342 | | | | | | 25,342 | | |
|
Capital contribution from modification of equity-based compensation plan
|
| | | | — | | | | | | — | | | | | | — | | | | | | 780 | | | | | | — | | | | | | 780 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
|
Equity-based compensation
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 3,648 | | | | | | 3,648 | | |
|
Adjustment of equity-based compensation to redemption value
|
| | | | — | | | | | | — | | | | | | — | | | | | | (5,016) | | | | | | — | | | | | | (5,016) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 5,016 | | | | | | 5,016 | | |
|
Balances, December 31, 2021
|
| | | | 112,745 | | | | | $ | 1,132 | | | | | $ | (3,970) | | | | | $ | 933,622 | | | | | $ | (259,692) | | | | | $ | 671,092 | | | | | $ | — | | | | | $ | — | | | | | | 4,357 | | | | | $ | 49,841 | | | | | $ | 34,006 | | | | | $ | 83,847 | | |
| | | |
Useful Life
|
|
|
Buildings
|
| |
39 years
|
|
|
Furniture, fixtures, equipment, vehicles and other
|
| |
5 years
|
|
|
Computer hardware and software
|
| |
3 – 5 years
|
|
|
Leasehold improvements
|
| |
7 – 10 years
|
|
| | | |
As of December 31, 2020
|
| |||||||||||||||
|
(in thousands)
|
| |
As Reported
|
| |
Adjustment
|
| |
As Adjusted
|
| |||||||||
|
Preferred Stock – mezzanine equity
|
| | | $ | 396 | | | | | $ | 94,528 | | | | | $ | 94,924 | | |
|
Additional paid in capital – permanent equity
|
| | | $ | 1,063,028 | | | | | $ | (94,528) | | | | | $ | 968,500 | | |
| | | |
As of December 31,
|
| |||||||||
|
(in thousands)
|
| |
2021
|
| |
2020
|
| ||||||
|
Compressor station
|
| | | $ | 6,831 | | | | | $ | 6,831 | | |
|
Meter station
|
| | | | 654 | | | | | | 654 | | |
|
Pipelines
|
| | | | 47,878 | | | | | | 47,828 | | |
|
Total
|
| | | | 55,363 | | | | | | 55,313 | | |
|
Accumulated depreciation
|
| | | | (7,417) | | | | | | (6,069) | | |
|
Midstream assets, net
|
| | | $ | 47,946 | | | | | $ | 49,244 | | |
| | | |
As of December 31,
|
| |||||||||
|
(in thousands)
|
| |
2021
|
| |
2020
|
| ||||||
|
Buildings
|
| | | $ | 12,675 | | | | | $ | 12,675 | | |
|
Furniture, fixtures, equipment and vehicles
|
| | | | 6,555 | | | | | | 4,046 | | |
|
Computer software
|
| | | | 4,715 | | | | | | 4,901 | | |
|
Leasehold improvements
|
| | | | 1,571 | | | | | | 1,119 | | |
|
Land
|
| | | | 3,090 | | | | | | 3,090 | | |
|
Total
|
| | | | 28,606 | | | | | | 25,831 | | |
|
Accumulated depreciation
|
| | | | (6,482) | | | | | | (2,663) | | |
|
Other property and equipment, net
|
| | | $ | 22,124 | | | | | $ | 23,168 | | |
|
(in thousands)
|
| | | | | | |
| Assets acquired | | | | | | | |
|
Developed properties
|
| | | $ | 624,914 | | |
|
Other property and equipment
|
| | | | 14,264 | | |
|
Inventory
|
| | | | 2,784 | | |
| Liabilities assumed | | | | | | | |
|
Contingencies and contingent payments
|
| | | | (19,700) | | |
|
Asset Retirement Obligations
|
| | | | (120,550) | | |
|
Total
|
| | | $ | 501,712 | | |
| | | |
As of December 31, 2021
|
| |||||||||||||||||||||
| | | |
Fair Value Measurements Using:
|
| | | | | | | |||||||||||||||
|
(in thousands)
|
| |
Quoted Prices
in Active Markets (Level 1) |
| |
Significant
Other Observable Inputs (Level 2) |
| |
Significant
Unobservable Inputs (Level 3) |
| |
Total
|
| ||||||||||||
| Financial assets | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Derivative instruments
|
| | | | — | | | | | | 9,986 | | | | | | — | | | | | | 9,986 | | |
|
Financial liabilities
|
| | | | | | | | | | | | | | | | | | | | | | | | |
|
Derivative instruments
|
| | | | — | | | | | | 114,818 | | | | | | — | | | | | | 114,818 | | |
|
Contingent Consideration
|
| | | | — | | | | | | — | | | | | | 142,533 | | | | | | 142,533 | | |
| Mezzanine equity | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Minority ownership puttable shares
|
| | | | — | | | | | | — | | | | | | 49,841 | | | | | | 49,841 | | |
|
Equity-based compensation
|
| | | | — | | | | | | — | | | | | | 34,006 | | | | | | 34,006 | | |
| | | |
As of December 31, 2020
|
| |||||||||||||||||||||
| | | |
Fair Value Measurements Using:
|
| | | | | | | |||||||||||||||
|
(in thousands)
|
| |
Quoted Prices
in Active Markets (Level 1) |
| |
Significant
Other Observable Inputs (Level 2) |
| |
Significant
Unobservable Inputs (Level 3) |
| |
Total
|
| ||||||||||||
| Financial assets | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Derivative instruments
|
| | | | — | | | | | | 15,499 | | | | | | — | | | | | | 15,499 | | |
|
Financial liabilities
|
| | | | | | | | | | | | | | | | | | | | | | | | |
|
Derivative instruments
|
| | | | — | | | | | | 5,170 | | | | | | — | | | | | | 5,170 | | |
|
Contingent Consideration
|
| | | | — | | | | | | — | | | | | | 12,565 | | | | | | 12,565 | | |
| Mezzanine equity | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Minority ownership puttable shares
|
| | | | — | | | | | | — | | | | | | 42,288 | | | | | | 42,288 | | |
|
(in thousands, except per share amounts)
|
| |
Fair Value
|
| |
Valuation
Technique |
| |
Unobservable
Input |
| |
Range or Actual
|
| |||
|
Common stock – per share – as of May 1, 2020(1)
|
| | | $ | 10.00 | | | |
Enterprise value
|
| |
Discount rate
|
| |
8.9 – 10%
|
|
|
Common stock – per share – as of December 31, 2020(1)
|
| | | $ | 10.00 | | | |
Enterprise value
|
| |
Discount rate
|
| |
8.9 – 10%
|
|
|
Contingent Consideration – as of December 31, 2020
|
| | | $ | 12,565 | | | |
Monte Carlo
Simulation |
| |
Risk free Rate
|
| |
0.3%
|
|
| | | | | | | | | | | | |
Credit Spread
|
| |
6.7%
|
|
| | | | | | | | | | | | |
Discount Rate
|
| |
7.0%
|
|
|
Contingent consideration – as of December 31, 2021
|
| | | $ | 142,533 | | | |
Monte Carlo
Simulation |
| |
Risk Free Rate
|
| |
1.0%
|
|
| | | | | | | | | | | | |
Credit Spread
|
| |
4.0%
|
|
| | | | | | | | | | | | |
Discount Rate
|
| |
5.0%
|
|
|
Market condition equity-based compensation per share – as of October 31, 2021
|
| | | $ | 10.72 | | | |
Monte Carlo
Simulation |
| |
Performance
period dividends |
| |
3% equity
capital, annually |
|
|
Market condition equity-based compensation per share – as of December 31, 2021
|
| | | $ | 13.77 | | | |
Monte Carlo
Simulation |
| |
Performance
period dividends |
| |
3% equity
capital, annually |
|
|
Common stock – per share value – as
of October 31, 2021(1) |
| | | $ | 11.06 | | | |
Enterprise value
|
| |
Discount rate
|
| |
10.0%
|
|
|
Common stock – per share value – as
of December 31, 2021(1) |
| | | $ | 11.75 | | | |
Enterprise value
|
| |
Discount rate
|
| |
7.7 – 9.5%
|
|
| | | |
Year ended December 31,
|
| |||||||||
|
(in thousands)
|
| |
2021
|
| |
2020
|
| ||||||
|
Fair value, beginning of period
|
| | | $ | 54,853 | | | | | $ | — | | |
|
Contingent consideration-additions through asset acquisition (Note 3)
|
| | | | — | | | | | | 19,700 | | |
|
Contingent consideration – settlement (Note 15)
|
| | | | (65,000) | | | | | | — | | |
|
Minority ownership puttable share activity (Note 12)
|
| | | | 511 | | | | | | 42,288 | | |
|
Grant date fair value of equity-based compensation (Note 11)
|
| | | | 28,990 | | | | | | — | | |
|
Change in fair market value (all instruments)
|
| | | | 207,026 | | | | | | (7,135) | | |
|
Fair value, end of period
|
| | | $ | 226,380 | | | | | $ | 54,853 | | |
| | | |
As of December 31, 2021
|
| |||||||||||||||
|
(in thousands)
|
| |
Gross Amounts
of Assets and Liabilities |
| |
Offset
Adjustments |
| |
Net amounts of
assets/liabilities |
| |||||||||
|
Current derivative assets
|
| | | $ | 9,986 | | | | | | — | | | | | $ | 9,986 | | |
|
Noncurrent derivative assets
|
| | | $ | — | | | | | | — | | | | | $ | — | | |
|
Current derivative liabilities
|
| | | $ | 91,156 | | | | | | — | | | | | $ | 91,156 | | |
|
Noncurrent derivative liabilities
|
| | | $ | 23,662 | | | | | | — | | | | | $ | 23,662 | | |
| | | |
As of December 31, 2020
|
| |||||||||||||||
|
(in thousands)
|
| |
Gross Amounts
of Assets and Liabilities |
| |
Offset
Adjustments |
| |
Net amounts of
assets/liabilities |
| |||||||||
|
Current derivative assets
|
| | | $ | 27,680 | | | | | | (12,196) | | | | | $ | 15,484 | | |
|
Noncurrent derivative assets
|
| | | $ | 15 | | | | | | — | | | | | $ | 15 | | |
|
Current derivative liabilities
|
| | | $ | 12,196 | | | | | | (12,196) | | | | | $ | — | | |
|
Noncurrent derivative liabilities
|
| | | $ | 5,170 | | | | | | — | | | | | $ | 5,170 | | |
|
(in thousands)
|
| |
Year Ended December 31,
|
| |||||||||
| |
2021
|
| |
2020
|
| ||||||||
|
Total gain (loss) on settled derivative instruments
|
| | | $ | (268,686) | | | | | $ | 10,427 | | |
|
Total gain (loss) on unsettled derivative instruments
|
| | | | (115,161) | | | | | | 10,329 | | |
|
Total gain (loss) on derivative instruments
|
| | | $ | (383,847) | | | | | $ | 20,756 | | |
|
Instrument
|
| |
MMBTU
|
| |
Weighted
Average Price (USD) |
| |
Weighted
Average Price Sub Floor |
| |
Weighted
Average Price Floor |
| |
Weighted
Average Price Ceiling |
| |
Weighted
Average Price Sub Ceiling |
| |
Fair Value as of
December 31, 2021 (In thousands) |
| |||||||||||||||||||||
| 2022 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Swap
|
| | | | 28,700,000 | | | | | $ | 3.74 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | $ | 2,302 | | |
|
Enhanced three-way collars
|
| | | | 52,185,000 | | | | | | | | | | | $ | 2.51 | | | | | $ | 2.57 | | | | | $ | 3.14 | | | | | $ | 3.17 | | | | | $ | (75,589) | | |
|
Collars
|
| | | | 6,320,000 | | | | | | | | | | | | | | | | | $ | 2.82 | | | | | $ | 3.63 | | | | | | | | | | | $ | (4,018) | | |
| 2023 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Swap
|
| | | | 3,340,000 | | | | | $ | 2.81 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | $ | (1,512) | | |
|
Three-way collars
|
| | | | 8,350,000 | | | | | | | | | | | | | | | | | $ | 2.45 | | | | | $ | 3.15 | | | | | $ | 3.15 | | | | | $ | (7,587) | | |
|
Collars
|
| | | | 50,100,000 | | | | | | | | | | | | | | | | | $ | 2.85 | | | | | $ | 3.75 | | | | | | | | | | | $ | (3,097) | | |
|
Instrument
|
| |
Commodity Reference Price
|
| |
GAL
|
| |
Weighted
Average Price (USD) |
| |
Fair Value at
December 31, 2021 (In thousands) |
| |||||||||
| 2022 | | | | | | | | | | | | | | | | | | | | | | |
|
Swap
|
| | OPIS Purity Ethane Mont Belvieu | | | | | 38,325,000 | | | | | $ | 0.27 | | | | | $ | (1,244) | | |
|
Swap
|
| | OPIS IsoButane Mont Belvieu Non-TET | | | | | 3,832,500 | | | | | $ | 0.99 | | | | | $ | (736) | | |
|
Swap
|
| |
OPIS Normal Butane Mont Belvieu Non-TET
|
| | | | 7,665,000 | | | | | $ | 0.98 | | | | | $ | (1,554) | | |
|
Swap
|
| | OPIS Pentane Mont Belvieu Non-TET | | | | | 7,665,000 | | | | | $ | 1.46 | | | | | $ | (1,698) | | |
|
Swap
|
| | OPIS Propane Mont Belvieu Non-TET | | | | | 22,995,000 | | | | | $ | 0.86 | | | | | $ | (3,830) | | |
| 2023 | | | | | | | | | | | | | | | | | | | | | | |
|
Swap
|
| | OPIS Purity Ethane Mont Belvieu | | | | | 38,325,000 | | | | | $ | 0.23 | | | | | $ | (984) | | |
|
Swap
|
| | OPIS IsoButane Mont Belvieu Non-TET | | | | | 3,832,500 | | | | | $ | 0.80 | | | | | $ | (501) | | |
|
Swap
|
| |
OPIS Normal Butane Mont Belvieu Non-TET
|
| | | | 3,832,500 | | | | | $ | 0.80 | | | | | $ | (504) | | |
|
Swap
|
| | OPIS Pentane Mont Belvieu Non-TET | | | | | 7,665,000 | | | | | $ | 1.28 | | | | | $ | (1,568) | | |
|
Swap
|
| | OPIS Propane Mont Belvieu Non-TET | | | | | 22,995,000 | | | | | $ | 0.72 | | | | | $ | (2,714) | | |
|
Instrument
|
| |
MMBTU
|
| |
Weighted Average
Price (USD) |
| ||||||
|
2022 Swaps
|
| | | | 14,919,000 | | | | | $ | 4.98 | | |
|
2023 Swaps
|
| | | | 56,587,000 | | | | | $ | 3.99 | | |
|
Instrument
|
| |
Commodity Reference Price
|
| |
GAL
|
| |
Weighted
Average Price (USD) |
| |
Weighted
Average Price Floor |
| |
Weighted
Average Price Ceiling |
| ||||||||||||
| 2022 | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Swap
|
| | OPIS Purity Ethane Mont Belvieu Non-TET | | | | | 56,019,600 | | | | | $ | 0.37 | | | | | | | | | | | | | | |
|
Collar
|
| | OPIS IsoButane Mont Belvieu Non-TET | | | | | 2,318,400 | | | | | | | | | | | $ | 1.25 | | | | | $ | 1.42 | | |
|
Collar
|
| |
OPIS Normal Butane Mont Belvieu Non-TET
|
| | | | 3,733,800 | | | | | | | | | | | $ | 1.25 | | | | | $ | 1.55 | | |
|
Collar
|
| | OPIS Pentane Mont Belvieu Non-TET | | | | | 5,665,800 | | | | | | | | | | | $ | 1.80 | | | | | $ | 2.18 | | |
|
Collar
|
| | OPIS Propane Mont Belvieu Non-TET | | | | | 15,582,000 | | | | | | | | | | | $ | 1.14 | | | | | $ | 1.30 | | |
| | | |
Year ended December 31,
|
| |||||||||
|
(In thousands)
|
| |
2021
|
| |
2020
|
| ||||||
|
Asset retirement obligations, beginning of period
|
| | | $ | 148,826 | | | | | $ | 24,293 | | |
|
Additions through asset acquisition (Note 3)
|
| | | | — | | | | | | 120,550 | | |
|
Liabilities incurred
|
| | | | 923 | | | | | | 772 | | |
|
Liabilities settled
|
| | | | (811) | | | | | | — | | |
|
Accretion of discount
|
| | | | 10,030 | | | | | | 3,211 | | |
|
Asset retirement obligations, end of period
|
| | | | 158,968 | | | | | | 148,826 | | |
|
Less current portion
|
| | | | — | | | | | | — | | |
|
Asset retirement obligation, long-term
|
| | | $ | 158,968 | | | | | $ | 148,826 | | |
| | | |
Year ended December 31, 2021
|
| |||||||||||||||
|
(in thousands)
|
| |
Pennsylvania
|
| |
Texas
|
| |
Total
|
| |||||||||
|
Natural gas
|
| | | $ | 131,207 | | | | | $ | 465,843 | | | | | $ | 597,050 | | |
|
Natural gas liquids
|
| | | | — | | | | | | 225,135 | | | | | | 225,135 | | |
|
Oil
|
| | | | — | | | | | | 7,560 | | | | | | 7,560 | | |
|
Total production revenues
|
| | | $ | 131,207 | | | | | $ | 698,538 | | | | | $ | 829,745 | | |
|
Marketing revenues
|
| | | | — | | | | | | 52,616 | | | | | | 52,616 | | |
|
Non-operated midstream revenues
|
| | | | 6,917 | | | | | | — | | | | | | 6,917 | | |
|
Total
|
| | | $ | 138,124 | | | | | $ | 751,154 | | | | | $ | 889,278 | | |
| | | |
Year ended December 31, 2020
|
| |||||||||||||||
|
(in thousands)
|
| |
Pennsylvania
|
| |
Texas
|
| |
Total
|
| |||||||||
|
Natural gas
|
| | | $ | 45,102 | | | | | $ | 56,656 | | | | | $ | 101,758 | | |
|
Natural gas liquids
|
| | | | — | | | | | | 11,952 | | | | | | 11,952 | | |
|
Oil
|
| | | | — | | | | | | 1,333 | | | | | | 1,333 | | |
|
Total production revenues
|
| | | $ | 45,102 | | | | | $ | 69,941 | | | | | $ | 115,043 | | |
|
Non-operated midstream revenues
|
| | | | 7,458 | | | | | | — | | | | | | 7,458 | | |
|
Total
|
| | | $ | 52,560 | | | | | $ | 69,941 | | | | | $ | 122,501 | | |
| | | |
As of December 31,
|
| |||||||||
|
(in thousands)
|
| |
2021
|
| |
2020
|
| ||||||
|
Accounts payable
|
| | | $ | 32,237 | | | | | $ | 8,706 | | |
|
Commodity derivative settlements payable
|
| | | | 43,252 | | | | | | — | | |
|
Commodity derivative monetizations payable
|
| | | | 23,175 | | | | | | | | |
|
Revenues payable
|
| | | | 29,871 | | | | | | 4,333 | | |
|
Other accrued liabilities
|
| | | | 38,301 | | | | | | 3,891 | | |
|
Total
|
| | | $ | 166,836 | | | | | $ | 16,930 | | |
|
(in thousands, except per share amounts)
|
| |
Shares
|
| |
Weighted-Average
Grant Date Fair Value |
| ||||||
|
Unvested PRSU’s at January 1, 2021
|
| | | | — | | | | | $ | — | | |
| Granted(1) | | | | | 12,257 | | | | | $ | 10.90 | | |
| Forfeited(1) | | | | | (668) | | | | | $ | (10.90) | | |
|
Unvested PRSU’s as of December 31, 2021
|
| | | | 11,589 | | | | | $ | 10.90 | | |
| | | | | | | | | |
Performance Conditions
|
| ||||||
| | | |
Weight
|
| |
Minimum
Threshold (0%) |
| |
Target
Threshold (50%) |
| |
Maximum
Threshold (100%) |
| |||
|
TSR
|
| | | | 60% | | | |
5%
|
| |
12.5%
|
| |
20%
|
|
|
ROCE
|
| | | | 20% | | | |
—%
|
| |
7%
|
| |
14%
|
|
|
IPO readiness (capability dates)
|
| | | | 20% | | | |
12/31/2024
|
| |
12/31/2023
|
| |
12/31/2022
|
|
|
(in thousands, except per share amounts)
|
| |
Shares
|
| |
Weighted-Average
Grant Date Fair Value |
| ||||||
|
Unvested TRSU’s at January 1, 2021
|
| | | | — | | | | | $ | — | | |
| Granted(1) | | | | | 2,626 | | | | | $ | 11.06 | | |
|
Vested
|
| | | | (164) | | | | | $ | — | | |
|
Forfeited
|
| | | | (134) | | | | | $ | (11.06) | | |
|
Unvested TRSU’s as of December 31, 2021
|
| | | | 2,328 | | | | | $ | 11.06 | | |
|
Balance Sheet
(in thousands) |
| |
December 31,
2021 |
| |||
|
Current assets
|
| | | $ | 35,957 | | |
|
Noncurrent assets
|
| | | | 454,333 | | |
|
Total assets
|
| | | $ | 490,290 | | |
|
Current liabilities
|
| | | $ | 24,067 | | |
|
Noncurrent liabilities
|
| | | | 290,440 | | |
|
Total liabilities
|
| | | | 314,507 | | |
|
Members’ equity
|
| | | | 175,783 | | |
|
Total liabilities and members’ equity
|
| | | $ | 490,290 | | |
|
Income Statement
(in thousands) |
| |
Period
beginning November 1, 2021 through December 31, 2021 |
| |||
|
Revenues
|
| | | $ | 20,186 | | |
|
Variable operating expenses
|
| | | | 13,388 | | |
|
Gross Profit
|
| | | | 6,798 | | |
|
Operating expenses
|
| | | | 9,659 | | |
|
Loss from operations
|
| | | | (2,861) | | |
|
Net income
|
| | | $ | 1,819 | | |
|
(in thousands)
|
| |
2022
|
| |
2023
|
| |
2024
|
| |
2025
|
| |
2026
|
| |
Thereafter
|
| |
Total
|
| |||||||||||||||||||||
|
Notes payable to related party
|
| | | $ | 166,000 | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 166,000 | | |
|
Interest on notes
|
| | | | 1,787 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 1,787 | | |
|
Capital commitment
|
| | | | 3,500 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 3,500 | | |
|
Volume commitments
|
| | | | 56,786 | | | | | | 52,663 | | | | | | 36,339 | | | | | | 19,382 | | | | | | 14,782 | | | | | | 76,211 | | | | | | 256,163 | | |
|
Total
|
| | | $ | 228,073 | | | | | $ | 52,663 | | | | | $ | 36,339 | | | | | $ | 19,382 | | | | | $ | 14,782 | | | | | $ | 76,211 | | | | | $ | 427,450 | | |
| | | |
Year ended December 31,
|
| |||||||||
|
(in thousands)
|
| |
2021
|
| |
2020
|
| ||||||
|
Depreciation, depletion and amortization
|
| | | $ | 389 | | | | | $ | 360 | | |
|
Lease operating and workover expense
|
| | | | 6,876 | | | | | | 3,145 | | |
|
Total
|
| | | $ | 7,265 | | | | | $ | 3,505 | | |
| |
2022
|
| | | $ | 11,241 | | |
| |
2023
|
| | | | 947 | | |
| |
2024
|
| | | | 959 | | |
| |
2025
|
| | | | 972 | | |
| |
2026
|
| | | | 848 | | |
| |
Thereafter
|
| | | | 1,664 | | |
| |
Total undiscounted future lease payments
|
| | | $ | 16,631 | | |
| |
Present value adjustment
|
| | | | (1,226) | | |
| |
Net operating lease liabilities
|
| | | $ | 15,405 | | |
| | | |
Year ended December 31,
|
| |||||||||
|
(in thousands)
|
| |
2021
|
| |
2020
|
| ||||||
| Current tax expense | | | | | | | | | | | | | |
|
United States federal income tax
|
| | | $ | 29,051 | | | | | $ | 1,232 | | |
|
Various state income taxes
|
| | | | 3,176 | | | | | | — | | |
|
Total current income tax expense
|
| | | | 32,227 | | | | | | 1,232 | | |
| Deferred tax (benefit) expense | | | | | | | | | | | | | |
|
United States federal income tax
|
| | | | (66,362) | | | | | | 37,750 | | |
|
Various state taxes
|
| | | | (6,391) | | | | | | — | | |
|
Total deferred income tax expense
|
| | | | (72,753) | | | | | | 37,750 | | |
|
Provision for income taxes
|
| | | $ | (40,526) | | | | | $ | 38,982 | | |
| | | |
Year ended December 31,
|
| |||||||||
|
(in thousands)
|
| |
2021
|
| |
2020
|
| ||||||
|
Loss before income taxes
|
| | | $ | 174,989 | | | | | $ | 4,364 | | |
|
Statutory rate
|
| | | | 21.0% | | | | | | 21.0% | | |
|
Income tax recovery based on statutory rate
|
| | | $ | (36,748) | | | | | $ | (916) | | |
| (Increase) decrease in income taxes resulting from: | | | | | | | | | | | | | |
|
State tax benefit, net of federal benefit
|
| | | | (4,114) | | | | | | (148) | | |
|
Change in state tax rate, net of federal effect
|
| | | | 227 | | | | | | (8,793) | | |
|
Deferred tax activity
|
| | | | (520) | | | | | | 45,627 | | |
|
Other, including tax credits
|
| | | | 629 | | | | | | 3,212 | | |
|
Income tax (benefit) expense
|
| | | $ | (40,526) | | | | | $ | 38,982 | | |
| | | |
As of December 31,
|
| |||||||||
|
(in thousands)
|
| |
2021
|
| |
2020
|
| ||||||
| Deferred tax assets | | | | | | | | | | | | | |
|
Fair value of derivative financial instruments
|
| | | $ | 31,318 | | | | | $ | — | | |
|
Asset retirement obligations
|
| | | | 36,680 | | | | | | 1,346 | | |
|
Stock compensation
|
| | | | 6,592 | | | | | | — | | |
|
Contingent consideration
|
| | | | 49,193 | | | | | | — | | |
|
Other
|
| | | | 3,482 | | | | | | 862 | | |
|
Total deferred tax asset
|
| | | $ | 127,265 | | | | | $ | 2,208 | | |
| Deferred tax liabilities | | | | | | | | | | | | | |
|
Property and equipment
|
| | | $ | (87,554) | | | | | $ | (37,040) | | |
|
Investment in joint venture
|
| | | | (668) | | | | | | — | | |
|
Fair value of derivative financial instruments
|
| | | | — | | | | | | (2,371) | | |
|
Other
|
| | | | (3,539) | | | | | | (46) | | |
|
Total deferred tax liability
|
| | | $ | (91,761) | | | | | $ | (39,457) | | |
|
Net deferred tax asset (liability)
|
| | | $ | 35,504 | | | | | $ | (37,249) | | |
| |
Total consideration
|
| | | $ | 20,000 | | |
| | Assets acquired and liabilities assumed: | | | | | | | |
| |
Cash
|
| | | $ | 311 | | |
| |
Accounts receivable
|
| | | | 526 | | |
| |
Other assets
|
| | | | 753 | | |
| |
Prepaid expenses
|
| | | | 383 | | |
| |
Other fixed assets
|
| | | | 2,445 | | |
| |
Right-of-use assets
|
| | | | 3,980 | | |
| |
Accounts payable and accrued expenses
|
| | | | (1,488) | | |
| |
Right-of-use liabilities
|
| | | | (5,327) | | |
| |
Total identifiable net assets
|
| | | $ | 1,583 | | |
| |
Goodwill
|
| | | $ | 18,417 | | |
| | | |
As of December 31,
|
| |||||||||
|
(in thousands)
|
| |
2021
|
| |
2020
|
| ||||||
|
Equity-based compensation – TRSU
|
| | | | 2,328 | | | | | | — | | |
|
Equity-based compensation – PRSU non-market condition(1)
|
| | | | 4,635 | | | | | | — | | |
|
Equity-based compensation – PRSU market condition(1)
|
| | | | 6,953 | | | | | | — | | |
|
Preferred shares
|
| | | | — | | | | | | 34,849 | | |
| | | |
As of December 31,
|
| |||||||||
|
(In thousands)
|
| |
2021
|
| |
2020
|
| ||||||
|
Developed properties
|
| | | $ | 1,378,629 | | | | | | 1,297,144 | | |
|
Undeveloped properties
|
| | | | 16,835 | | | | | | 13,265 | | |
|
Total capitalized costs
|
| | | | 1,395,464 | | | | | | 1,310,409 | | |
|
Less: Accumulated depreciation, depletion, and amortization
|
| | | | (267,293) | | | | | | (190,356) | | |
|
Net capitalized costs
|
| | | $ | 1,128,171 | | | | | $ | 1,120,053 | | |
| | | |
As of December 31,
|
| |||||||||
|
(In thousands)
|
| |
2021
|
| |
2020
|
| ||||||
|
Undeveloped property acquisition costs
|
| | | $ | 3,569 | | | | | | 2,064 | | |
|
Acquisitions
|
| | | | 2,928 | | | | | | 624,914 | | |
|
Development costs
|
| | | | 77,634 | | | | | | 10,711 | | |
|
Total cost incurred
|
| | | | 84,131 | | | | | | 637,689 | | |
|
Asset retirement obligations
|
| | | | 923 | | | | | | 772 | | |
|
Total costs incurred including asset retirement obligations
|
| | | $ | 85,054 | | | | | $ | 638,461 | | |
| | | |
Natural Gas
(MMcf) |
| |
NGL
(MBbls) |
| |
Oil
(MBbls) |
| |
Total
(MMcfe) |
| ||||||||||||
|
January 1, 2020
|
| | | | 948,801 | | | | | | — | | | | | | — | | | | | | 948,801 | | |
|
Revision of previous estimates
|
| | | | (382,366) | | | | | | (21) | | | | | | (3) | | | | | | (382,510) | | |
|
Extensions and discoveries
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | |
|
Purchase of minerals in place
|
| | | | 1,515,255 | | | | | | 109,820 | | | | | | 755 | | | | | | 2,178,705 | | |
|
Improved recoveries
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | |
|
Production
|
| | | | (96,158) | | | | | | (2,565) | | | | | | (29) | | | | | | (111,722) | | |
|
December 31, 2020
|
| | | | 1,985,532 | | | | | | 107,234 | | | | | | 723 | | | | | | 2,633,274 | | |
|
Revision of previous estimates
|
| | | | 828,360 | | | | | | 45,234 | | | | | | 258 | | | | | | 1,101,312 | | |
|
Extensions and discoveries
|
| | | | 645,338 | | | | | | 13,722 | | | | | | 58 | | | | | | 728,018 | | |
|
Purchase of minerals in place
|
| | | | 19,511 | | | | | | — | | | | | | — | | | | | | 19,511 | | |
|
Improved recoveries
|
| | | | 152,597 | | | | | | 8,794 | | | | | | 9 | | | | | | 205,415 | | |
|
Production
|
| | | | (186,055) | | | | | | (9,829) | | | | | | (123) | | | | | | (245,767) | | |
|
December 31, 2021
|
| | | | 3,445,283 | | | | | | 165,155 | | | | | | 925 | | | | | | 4,441,763 | | |
| | | |
Natural Gas
(MMcf) |
| |
NGL
(MBbls) |
| |
Oil
(MBbls) |
| |
Total
(MMcfe) |
| ||||||||||||
| Proved developed reserves as of: | | | | | | | | | | | | | | | | | | | | | | | | | |
|
January 1, 2020
|
| | | | 523,240 | | | | | | — | | | | | | — | | | | | | 523,240 | | |
|
December 31, 2020
|
| | | | 1,893,158 | | | | | | 107,234 | | | | | | 723 | | | | | | 2,540,900 | | |
|
December 31, 2021
|
| | | | 2,494,925 | | | | | | 151,433 | | | | | | 867 | | | | | | 3,408,725 | | |
| Proved undeveloped reserves as of: | | | | | | | | | | | | | | | | | | | | | | | | | |
|
January 1, 2020
|
| | | | 425,561 | | | | | | — | | | | | | — | | | | | | 425,561 | | |
|
December 31, 2020
|
| | | | 92,374 | | | | | | | | | | | | | | | | | | 92,374 | | |
|
December 31, 2021
|
| | | | 950,358 | | | | | | 13,722 | | | | | | 58 | | | | | | 1,033,038 | | |
| | | |
As of December 31,
|
| |||||||||
|
(in thousands)
|
| |
2021
|
| |
2020
|
| ||||||
|
Future cash inflows
|
| | | $ | 15,029,839 | | | | | $ | 4,414,787 | | |
|
Future production costs
|
| | | | (6,840,969) | | | | | | (2,954,242) | | |
|
Future development costs(1)
|
| | | | (1,051,911) | | | | | | (333,804) | | |
|
Income tax expense
|
| | | | (1,501,984) | | | | | | (98,882) | | |
|
Future net cash flows
|
| | | | 5,634,975 | | | | | | 1,027,859 | | |
|
10% annual discount for estimated timing of cash flows
|
| | | | (3,222,086) | | | | | | (517,449) | | |
|
Standardized measure of discounted future net cash flows related to
proved reserves |
| | | $ | 2,412,889 | | | | | $ | 510,410 | | |
| | | |
For the Years Ended December 31,
|
| |||||||||
|
(in thousands)
|
| |
2021
|
| |
2020
|
| ||||||
|
Balance, beginning of period
|
| | | $ | 510,410 | | | | | $ | 406,824 | | |
|
Net change in sales and transfer prices and in production (lifting) costs related to future production
|
| | | | 1,768,893 | | | | | | (284,282) | | |
|
Changes in estimated future development costs
|
| | | | (393,235) | | | | | | 114,330 | | |
|
Sales and transfers of natural gas, NGLs and oil produced during the
period |
| | | | (522,403) | | | | | | (83,783) | | |
|
Net change due to extensions, discoveries and improved recovery
|
| | | | 183,332 | | | | | | — | | |
|
Purchase of minerals in place
|
| | | | 19,050 | | | | | | 513,183 | | |
|
Net change due to revisions in quantity estimates
|
| | | | 1,266,086 | | | | | | (161,762) | | |
|
Previously estimated development costs incurred during the period
|
| | | | 60,406 | | | | | | 13,540 | | |
|
Net change in future income taxes
|
| | | | (611,031) | | | | | | (50,548) | | |
|
Accretion of discount
|
| | | | 56,096 | | | | | | 40,682 | | |
|
Changes in timing and other
|
| | | | 75,285 | | | | | | 2,226 | | |
|
Total discounted cash flow as end of period
|
| | | $ | 2,412,889 | | | | | $ | 510,410 | | |
| | | |
September 30, 2022
|
| |
December 31, 2021
|
| ||||||
| Assets | | | | | | | | | | | | | |
|
Current assets
|
| | | | | | | | | | | | |
|
Cash and cash equivalents
|
| | | $ | 167,143 | | | | | $ | 134,667 | | |
|
Restricted cash
|
| | | | 17,473 | | | | | | — | | |
|
Accounts receivable, net
|
| | | | 174,039 | | | | | | 104,143 | | |
|
Accounts receivable, related parties
|
| | | | 380 | | | | | | 3,498 | | |
|
Inventory
|
| | | | 7,684 | | | | | | 4,975 | | |
|
Commodity derivative assets
|
| | | | 1,466 | | | | | | 9,986 | | |
|
Other current assets
|
| | | | 4,552 | | | | | | 4,109 | | |
|
Total current assets
|
| | | | 372,737 | | | | | | 261,378 | | |
|
Natural gas properties and equipment
|
| | | | | | | | | | | | |
|
Developed properties
|
| | | | 2,216,617 | | | | | | 1,378,629 | | |
|
Undeveloped properties
|
| | | | 17,125 | | | | | | 16,835 | | |
|
Midstream assets
|
| | | | 310,259 | | | | | | 55,363 | | |
|
Accumulated depreciation, depletion, and amortization
|
| | | | (340,235) | | | | | | (274,710) | | |
|
Total natural gas properties, net
|
| | | | 2,203,766 | | | | | | 1,176,117 | | |
|
Other property and equipment, net
|
| | | | 31,615 | | | | | | 22,124 | | |
|
Right of use assets
|
| | | | 7,069 | | | | | | 14,233 | | |
|
Goodwill
|
| | | | 18,417 | | | | | | 18,417 | | |
|
Investment in joint venture
|
| | | | 103,878 | | | | | | 89,320 | | |
|
Deferred tax asset
|
| | | | — | | | | | | 35,504 | | |
|
Other noncurrent assets
|
| | | | 10,883 | | | | | | 3,735 | | |
|
Total assets
|
| | | $ | 2,748,365 | | | | | $ | 1,620,828 | | |
| Liabilities, mezzanine equity and stockholders’ equity | | | | | | | | | | | | | |
|
Current liabilities
|
| | | | | | | | | | | | |
|
Accounts payable and accrued liabilities
|
| | | $ | 318,518 | | | | | $ | 166,836 | | |
|
Right of use liabilities
|
| | | | 3,916 | | | | | | 10,713 | | |
|
Commodity derivative liabilities
|
| | | | 214,658 | | | | | | 91,156 | | |
|
Notes payable to related party
|
| | | | — | | | | | | 166,000 | | |
|
Credit facilities
|
| | | | 130,000 | | | | | | — | | |
|
Current portion of long-term debt, net
|
| | | | 111,950 | | | | | | — | | |
|
Other current liabilities
|
| | | | 104,710 | | | | | | 95,660 | | |
|
Total current liabilities
|
| | | | 883,752 | | | | | | 530,365 | | |
|
Asset retirement obligations
|
| | | | 212,172 | | | | | | 158,968 | | |
|
Commodity derivative liabilities
|
| | | | 50,374 | | | | | | 23,662 | | |
|
Note payable to related party
|
| | | | 75,000 | | | | | | — | | |
|
Long-term debt, net
|
| | | | 451,754 | | | | | | — | | |
|
Other noncurrent liabilities
|
| | | | 138,033 | | | | | | 152,894 | | |
|
Total liabilities
|
| | | | 1,811,085 | | | | | | 865,889 | | |
| | | |
September 30, 2022
|
| |
December 31, 2021
|
| ||||||
|
Commitments and contingencies (Note 14)
|
| | | | | | | | | | | | |
|
Mezzanine equity
|
| | | | | | | | | | | | |
|
Common stock – Minority ownership puttable shares; 4,581 authorized shares; 4,581 and 4,357 shares issued and outstanding at September 30, 2022 and December 31, 2021, respectively
|
| | | | 68,102 | | | | | | 49,841 | | |
|
Equity-based compensation
|
| | | | 91,128 | | | | | | 34,006 | | |
|
Total mezzanine equity
|
| | | | 159,230 | | | | | | 83,847 | | |
|
Stockholders’ equity
|
| | | | | | | | | | | | |
|
Common stock, $.01 par value; 300,000 authorized shares; 117,326 and 112,745 shares issued and outstanding at September 30, 2022 and December 31, 2021, respectively
|
| | | | 1,132 | | | | | | 1,132 | | |
|
Treasury stock, shares at cost; 386 shares and 385 shares at September 30, 2022 and December 31, 2021, respectively
|
| | | | (3,974) | | | | | | (3,970) | | |
|
Additional paid-in capital
|
| | | | 886,460 | | | | | | 933,622 | | |
|
Accumulated deficit
|
| | | | (105,568) | | | | | | (259,692) | | |
|
Total stockholders’ equity
|
| | | | 778,050 | | | | | | 671,092 | | |
|
Total liabilities, mezzanine equity and stockholders’ equity
|
| | | $ | 2,748,365 | | | | | $ | 1,620,828 | | |
| | |||||||||||||
| | | |
Three Months
Ended September 30, |
| |
Nine Months
Ended September 30, |
| ||||||||||||||||||
| | | |
2022
|
| |
2021
|
| |
2022
|
| |
2021
|
| ||||||||||||
| Revenues and other operating income | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Natural gas, NGL and oil sales
|
| | | $ | 568,037 | | | | | $ | 227,029 | | | | | $ | 1,224,473 | | | | | $ | 516,372 | | |
|
Midstream revenues
|
| | | | 2,737 | | | | | | 1,557 | | | | | | 6,080 | | | | | | 5,529 | | |
|
Derivative losses, net
|
| | | | (269,529) | | | | | | (322,329) | | | | | | (720,312) | | | | | | (500,604) | | |
|
Marketing revenues
|
| | | | 1,869 | | | | | | 950 | | | | | | 7,197 | | | | | | 51,246 | | |
|
Other
|
| | | | 680 | | | | | | — | | | | | | 2,008 | | | | | | — | | |
|
Total revenues and other operating income (loss)
|
| | | | 303,794 | | | | | | (92,793) | | | | | | 519,446 | | | | | | 72,543 | | |
| Operating expenses | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Lease operating and workover
|
| | | | 41,537 | | | | | | 23,730 | | | | | | 86,870 | | | | | | 64,244 | | |
|
Taxes other than income
|
| | | | 45,165 | | | | | | 11,756 | | | | | | 86,164 | | | | | | 28,453 | | |
|
Gathering and transportation
|
| | | | 54,524 | | | | | | 47,531 | | | | | | 153,281 | | | | | | 124,287 | | |
|
Accretion of asset retirement obligations
|
| | | | 3,554 | | | | | | 2,535 | | | | | | 8,874 | | | | | | 7,439 | | |
|
Depreciation, depletion and amortization
|
| | | | 31,808 | | | | | | 20,377 | | | | | | 68,606 | | | | | | 61,219 | | |
|
Exploration and impairment
|
| | | | — | | | | | | — | | | | | | — | | | | | | 34 | | |
|
General and administrative
|
| | | | 55,833 | | | | | | 24,664 | | | | | | 107,341 | | | | | | 62,653 | | |
|
Accretion of right of use liabilities
|
| | | | 55 | | | | | | 61 | | | | | | 190 | | | | | | 167 | | |
|
Total operating expenses
|
| | | | 232,476 | | | | | | 130,654 | | | | | | 511,326 | | | | | | 348,496 | | |
|
Income (loss) from operations
|
| | | | 71,318 | | | | | | (223,447) | | | | | | 8,120 | | | | | | (275,953) | | |
| Other income and expense | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Gain (loss) on contingent consideration liabilities
|
| | | | 826 | | | | | | (78,005) | | | | | | (31,089) | | | | | | (193,350) | | |
|
Interest expense
|
| | | | (15,636) | | | | | | — | | | | | | (22,334) | | | | | | (314) | | |
|
Other income
|
| | | | 535 | | | | | | 567 | | | | | | 1,051 | | | | | | 628 | | |
|
Bargain purchase gain
|
| | | | — | | | | | | — | | | | | | 163,653 | | | | | | — | | |
|
Gain on settlement of litigation
|
| | | | — | | | | | | — | | | | | | 16,866 | | | | | | — | | |
|
Earnings from equity affiliate
|
| | | | 38,444 | | | | | | — | | | | | | 14,486 | | | | | | — | | |
|
Interest income
|
| | | | 253 | | | | | | — | | | | | | 382 | | | | | | 2 | | |
|
Income (loss) before income taxes
|
| | | | 95,740 | | | | | | (300,885) | | | | | | 151,135 | | | | | | (468,987) | | |
|
Income tax benefit (expense)
|
| | | | (21,915) | | | | | | 69,270 | | | | | | 2,989 | | | | | | 107,918 | | |
|
Net income (loss) and comprehensive income (loss) attributable to BKV Corp
|
| | | | 73,825 | | | | | | (231,615) | | | | | | 154,124 | | | | | | (361,069) | | |
|
Less accretion of preferred stock to redemption
value |
| | | | — | | | | | | (1,209) | | | | | | — | | | | | | (3,545) | | |
|
Less preferred stock dividends
|
| | | | — | | | | | | — | | | | | | — | | | | | | (9,900) | | |
|
Less deemed dividend on redemption of preferred stock
|
| | | | — | | | | | | — | | | | | | — | | | | | | (1,353) | | |
|
Net income (loss) and comprehensive income (loss) attributable to common stockholders
|
| | | $ | 73,825 | | | | | $ | (232,824) | | | | | $ | 154,124 | | | | | $ | (375,867) | | |
| | | |
Three Months
Ended September 30, |
| |
Nine Months
Ended September 30, |
| ||||||||||||||||||
| | | |
2022
|
| |
2021
|
| |
2022
|
| |
2021
|
| ||||||||||||
|
Net income (loss) and comprehensive income (loss) per common share:
|
| | | | | | | | | | | | | | | | | | | | | | | | |
|
Basic
|
| | | $ | 0.63 | | | | | $ | (1.99) | | | | | $ | 1.31 | | | | | $$ | (3.21) | | |
|
Diluted
|
| | | $ | 0.58 | | | | | $ | (1.99) | | | | | $ | 1.24 | | | | | $ | (3.21) | | |
|
Weighted average number of common shares outstanding:
|
| | | | | | | | | | | | | | | | | | | | | | | | |
|
Basic
|
| | | | 117,326 | | | | | | 116,978 | | | | | | 117,316 | | | | | | 117,027 | | |
|
Diluted
|
| | | | 127,344 | | | | | | 116,978 | | | | | | 124,597 | | | | | | 117,027 | | |
| | | |
Nine Months
Ended September 30, |
| |||||||||
| | | |
2022
|
| |
2021
|
| ||||||
| Cash flows from operating activities: | | | | | | | | | | | | | |
|
Net income (loss)
|
| | | $ | 154,124 | | | | | $ | (361,069) | | |
|
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
|
| | | | | | | | | | | | |
|
Depreciation, depletion and amortization
|
| | | | 76,677 | | | | | | 65,509 | | |
|
Equity-based compensation expense
|
| | | | 29,320 | | | | | | 22,838 | | |
|
Accretion of asset retirement obligations
|
| | | | 8,874 | | | | | | 7,439 | | |
|
Accretion of right of use liabilities
|
| | | | 480 | | | | | | 249 | | |
|
Amortization of debt issuance costs
|
| | | | 356 | | | | | | — | | |
|
Deferred income tax benefit
|
| | | | (13,520) | | | | | | (193,579) | | |
|
Unrealized loss on derivatives
|
| | | | 158,735 | | | | | | 377,035 | | |
|
Loss on contingent purchase liabilities
|
| | | | 31,089 | | | | | | 193,350 | | |
|
Settlement of contingent consideration
|
| | | | (45,300) | | | | | | — | | |
|
Gain on bargain purchase
|
| | | | (163,653) | | | | | | — | | |
|
Gain from equity affiliates
|
| | | | (14,486) | | | | | | — | | |
|
Loss on the sale of assets
|
| | | | — | | | | | | 46 | | |
|
Changes in operating assets and liabilities:
|
| | | | | | | | | | | | |
|
Accounts receivable
|
| | | | (68,927) | | | | | | (16,757) | | |
|
Accounts receivable, related parties
|
| | | | 3,118 | | | | | | — | | |
|
Accounts payable and accrued liabilities
|
| | | | 30,577 | | | | | | 41,523 | | |
|
Income taxes payable to related party
|
| | | | 10,037 | | | | | | 85,609 | | |
|
Commodity derivative settlements payable/receivable
|
| | | | 45,499 | | | | | | 58,288 | | |
|
Other changes in assets and liabilities
|
| | | | (11,924) | | | | | | (5,992) | | |
|
Net cash provided by operating activities
|
| | | | 231,076 | | | | | | 274,489 | | |
| Cash flows from investing activities: | | | | | | | | | | | | | |
|
Business combination
|
| | | | (627,527) | | | | | | — | | |
|
Investment in joint venture
|
| | | | (72) | | | | | | (43,327) | | |
|
Development of natural gas properties
|
| | | | (125,026) | | | | | | (22,709) | | |
|
Other investing activities
|
| | | | (3,708) | | | | | | (8,833) | | |
|
Net cash used in investing activities
|
| | | | (756,333) | | | | | | (74,869) | | |
| Cash flows from financing activities: | | | | | | | | | | | | | |
|
Proceeds from notes payable from related party
|
| | | | 75,000 | | | | | | — | | |
|
Payments on notes payable to related party
|
| | | | (166,000) | | | | | | (24,000) | | |
|
Proceeds under term loan agreement
|
| | | | 570,000 | | | | | | — | | |
|
Payment of debt issuance costs
|
| | | | (7,738) | | | | | | — | | |
|
Draws on credit facilities
|
| | | | 190,000 | | | | | | — | | |
|
Payments on credit facility
|
| | | | (60,000) | | | | | | — | | |
| | | |
Nine Months
Ended September 30, |
| |||||||||
| | | |
2022
|
| |
2021
|
| ||||||
|
Settlement of contingent consideration
|
| | | | (19,700) | | | | | | — | | |
|
Payments of deferred offering costs
|
| | | | (5,253) | | | | | | — | | |
|
Redemption of minority ownership puttable shares
|
| | | | — | | | | | | (2,226) | | |
|
Issuance of minority ownership puttable shares
|
| | | | 78 | | | | | | — | | |
|
Dividends paid to preferred stock shareholders
|
| | | | — | | | | | | (10,330) | | |
|
Redemption of preferred stock
|
| | | | — | | | | | | (6,138) | | |
|
Dividends paid to common stock shareholders
|
| | | | — | | | | | | (88,126) | | |
|
Redemption of common stock issued through equity-based compensation
plan |
| | | | (4) | | | | | | — | | |
|
Net share settlements, equity-based compensation
|
| | | | (1,177) | | | | | | — | | |
|
Net cash provided by (used in) financing activities
|
| | | | 575,206 | | | | | | (130,820) | | |
|
Net increase in cash, cash equivalents and restricted cash
|
| | | | 49,949 | | | | | | 68,800 | | |
|
Cash, cash equivalents and restricted cash, beginning of period
|
| | | | 134,667 | | | | | | 17,445 | | |
|
Cash, cash equivalents and restricted cash, end of period
|
| | | $ | 184,616 | | | | | $ | 86,245 | | |
| Supplemental cash flow information: | | | | | | | | | | | | | |
|
Cash payments for:
|
| | | | | | | | | | | | |
|
Interest
|
| | | $ | 8,958 | | | | | $ | 360 | | |
|
Income tax
|
| | | $ | 400 | | | | | $ | — | | |
|
Non-cash investing and financing activities:
|
| | | | | | | | | | | | |
|
Increase in accrued capital expenditures
|
| | | $ | 47,999 | | | | | $ | 9,011 | | |
|
Additions to asset retirement obligations
|
| | | $ | 298 | | | | | $ | 923 | | |
|
Additions to right of use assets and liabilities
|
| | | $ | 1,218 | | | | | $ | 1,692 | | |
|
Deferred offering costs included in accounts payable and accrued liabilities
|
| | | $ | 986 | | | | | $ | — | | |
|
Fair value of contingent consideration from business combination
|
| | | $ | 17,150 | | | | | $ | — | | |
|
Adjustment of minority ownership puttable shares to redemption value
|
| | | $ | 18,183 | | | | | $ | 4,246 | | |
|
Adjustment of equity-based compensation to redemption value
|
| | | $ | 28,983 | | | | | $ | — | | |
|
Impact of redemption of minority interest puttable shares on additional paid-in capital, common stock and treasury stock
|
| | | $ | 4 | | | | | $ | 2,218 | | |
|
Accretion of preferred stock to redemption value
|
| | | $ | — | | | | | $ | 3,544 | | |
| | | |
Stockholders’ Equity
|
| |
Mezzanine Equity
|
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | | |
Common Stock
|
| |
Treasury
|
| |
Additional
Paid-In Capital |
| |
Accumulated
Deficit |
| |
Total
Stockholders’ Equity |
| |
Common Stock
|
| |
Equity-based
Compensation |
| |
Total
Mezzanine Equity |
| ||||||||||||||||||||||||||||||||||||
| | | |
Shares
|
| |
Amount
|
| |
Shares
|
| |
Amount
|
| ||||||||||||||||||||||||||||||||||||||||||||||||
|
Balances, December 31, 2021
|
| | | | 112,745 | | | | | $ | 1,132 | | | | | $ | (3,970) | | | | | $ | 933,622 | | | | | $ | (259,692) | | | | | $ | 671,092 | | | | | | 4,357 | | | | | $ | 49,841 | | | | | $ | 34,006 | | | | | $ | 83,847 | | |
|
Net loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (192,349) | | | | | | (192,349) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
|
Issuance of common stock upon vesting of equity-based compensation awards, net of shares withheld for income taxes
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 200 | | | | | | — | | | | | | (1,054) | | | | | | (1,054) | | |
|
Adjustment of minority ownership puttable shares to redemption value
|
| | | | — | | | | | | — | | | | | | — | | | | | | (14,956) | | | | | | — | | | | | | (14,956) | | | | | | — | | | | | | 14,956 | | | | | | — | | | | | | 14,956 | | |
|
Adjustment of equity-based compensation to redemption value
|
| | | | — | | | | | | — | | | | | | — | | | | | | (25,218) | | | | | | — | | | | | | (25,218) | | | | | | — | | | | | | — | | | | | | 25,218 | | | | | | 25,218 | | |
|
Equity-based compensation
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 11,425 | | | | | | 11,425 | | |
|
Balances, March 31, 2022
|
| | | | 112,745 | | | | | $ | 1,132 | | | | | $ | (3,970) | | | | | $ | 893,448 | | | | | $ | (452,041) | | | | | $ | 438,569 | | | | | | 4,557 | | | | | $ | 64,797 | | | | | $ | 69,595 | | | | | $ | 134,392 | | |
|
Net income
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 272,648 | | | | | | 272,648 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
|
Issuance of common stock from employee stock purchase plan
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 5 | | | | | | 78 | | | | | | — | | | | | | 78 | | |
|
Issuance of common stock upon vesting of equity-based compensation awards, net of shares withheld for income taxes
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 18 | | | | | | — | | | | | | (118) | | | | | | (118) | | |
|
Adjustment of minority ownership puttable shares to redemption value
|
| | | | — | | | | | | — | | | | | | — | | | | | | (6,411) | | | | | | — | | | | | | (6,411) | | | | | | — | | | | | | 6,411 | | | | | | — | | | | | | 6,411 | | |
|
Adjustment of equity-based compensation to redemption value
|
| | | | — | | | | | | — | | | | | | — | | | | | | (3,271) | | | | | | — | | | | | | (3,271) | | | | | | — | | | | | | — | | | | | | 3,271 | | | | | | 3,271 | | |
|
Equity-based compensation
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 8,829 | | | | | | 8,829 | | |
|
Balances, June 30, 2022
|
| | | | 112,745 | | | | | $ | 1,132 | | | | | $ | (3,970) | | | | | $ | 883,766 | | | | | $ | (179,393) | | | | | $ | 701,535 | | | | | | 4,580 | | | | | $ | 71,286 | | | | | $ | 81,577 | | | | | $ | 152,863 | | |
|
Net income
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 73,825 | | | | | | 73,825 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
|
Redemption of common stock issued upon vesting of equity-based compensation
|
| | | | — | | | | | | — | | | | | | (4) | | | | | | 4 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (4) | | | | | | (4) | | |
|
Issuance of common stock upon vesting of equity-based compensation awards, net of shares withheld for income taxes
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 1 | | | | | | — | | | | | | (5) | | | | | | (5) | | |
|
Adjustment of minority ownership puttable shares to redemption value
|
| | | | — | | | | | | — | | | | | | — | | | | | | 3,184 | | | | | | — | | | | | | 3,184 | | | | | | — | | | | | | (3,184) | | | | | | — | | | | | | (3,184) | | |
|
Adjustment of equity-based compensation to redemption value
|
| | | | — | | | | | | — | | | | | | — | | | | | | (494) | | | | | | — | | | | | | (494) | | | | | | — | | | | | | — | | | | | | 494 | | | | | | 494 | | |
|
Equity-based compensation
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 9,066 | | | | | | 9,066 | | |
|
Balances, September 30, 2022
|
| | | | 112,745 | | | | | $ | 1,132 | | | | | $ | (3,974) | | | | | $ | 886,460 | | | | | $ | (105,568) | | | | | $ | 778,050 | | | | | | 4,581 | | | | | $ | 68,102 | | | | | $ | 91,128 | | | | | $ | 159,230 | | |
| | | |
Stockholders’ Equity
|
| |
Mezzanine Equity
|
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | | |
Common Stock
|
| |
Treasury
|
| |
Additional
Paid-In Capital |
| |
Accumulated
Deficit |
| |
Total
Stockholders’ Equity |
| |
Preferred
Stock |
| |
Common Stock
|
| |
Total
Mezzanine Equity |
| ||||||||||||||||||||||||||||||||||||
| | | |
Shares
|
| |
Amount
|
| |
Shares
|
| |
Amount
|
| ||||||||||||||||||||||||||||||||||||||||||||||||
|
Balances, December 31, 2020
|
| | | | 112,855 | | | | | $ | 1,129 | | | | | | — | | | | | $ | 968,500 | | | | | $ | (26,773) | | | | | $ | 942,856 | | | | | $ | 94,924 | | | | | | 4,229 | | | | | $ | 42,288 | | | | | $ | 137,212 | | |
|
Net Income
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 11,886 | | | | | | 11,886 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
|
Redemption of minority ownership puttable shares
|
| | | | — | | | | | | 2 | | | | | | (1,560) | | | | | | 1,558 | | | | | | — | | | | | | — | | | | | | — | | | | | | (156) | | | | | | (1,560) | | | | | | (1,560) | | |
|
Accretion of preferred stock to redemption value
|
| | | | — | | | | | | — | | | | | | — | | | | | | (1,154) | | | | | | — | | | | | | (1,154) | | | | | | 1,154 | | | | | | — | | | | | | — | | | | | | 1,154 | | |
|
Balances, March 31, 2021
|
| | | | 112,855 | | | | | | 1,131 | | | | | | (1,560) | | | | | | 968,904 | | | | | | (14,887) | | | | | | 953,588 | | | | | | 96,078 | | | | | | 4,073 | | | | | | 40,728 | | | | | | 136,806 | | |
|
Net loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (141,340) | | | | | | (141,340) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
|
Dividend declared, preferred stock shareholders ($0.25 per share)
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (10,330) | | | | | | (10,330) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
|
Dividend declared ($0.75 per share)
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (88,126) | | | | | | (88,126) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
|
Redemption of minority ownership puttable shares
|
| | | | — | | | | | | 6 | | | | | | (666) | | | | | | 660 | | | | | | — | | | | | | — | | | | | | — | | | | | | (67) | | | | | | (666) | | | | | | (666) | | |
|
Redemption of preferred stock
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (4,785) | | | | | | — | | | | | | — | | | | | | (4,785) | | |
|
Deemed dividend, preferred stock shareholders
|
| | | | — | | | | | | — | | | | | | — | | | | | | (1,353) | | | | | | — | | | | | | (1,353) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
|
Accretion of preferred stock to redemption
value |
| | | | — | | | | | | — | | | | | | — | | | | | | (1,181) | | | | | | — | | | | | | (1,181) | | | | | | 1,181 | | | | | | — | | | | | | — | | | | | | 1,181 | | |
|
Balances, June 30, 2021
|
| | | | 112,855 | | | | | $ | 1,137 | | | | | $ | (2,226) | | | | | $ | 967,030 | | | | | $ | (254,683) | | | | | $ | 711,258 | | | | | $ | 92,474 | | | | | | 4,006 | | | | | $ | 40,062 | | | | | $ | 132,536 | | |
|
Net loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (231,615) | | | | | | (231,615) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
|
Adjustment of minority ownership puttable shares to redemption value
|
| | | | — | | | | | | — | | | | | | — | | | | | | (4,247) | | | | | | — | | | | | | (4,247) | | | | | | — | | | | | | — | | | | | | 4,247 | | | | | | 4,247 | | |
|
Accretion of preferred stock to redemption value
|
| | | | — | | | | | | — | | | | | | — | | | | | | (1,209) | | | | | | — | | | | | | (1,209) | | | | | | 1,209 | | | | | | — | | | | | | — | | | | | | 1,209 | | |
|
Balances, September 30, 2021
|
| | | | 112,855 | | | | | $ | 1,137 | | | | | $ | (2,226) | | | | | $ | 961,574 | | | | | $ | (486,298) | | | | | $ | 474,187 | | | | | $ | 93,683 | | | | | | 4,006 | | | | | $ | 44,309 | | | | | $ | 137,992 | | |
| | | |
As of September 30,
|
| |||||||||
|
(in thousands)
|
| |
2022
|
| |
2021
|
| ||||||
|
Cash and cash equivalents
|
| | | | 167,143 | | | | | | 86,245 | | |
|
Restricted cash
|
| | | | 17,473 | | | | | | — | | |
|
Total cash, cash equivalents and restricted cash
|
| | | $ | 184,616 | | | | | $ | 86,245 | | |
| |
Cash
|
| | | $ | 627,527 | | |
| |
Contingent consideration
|
| | | | 17,150 | | |
| |
Total consideration
|
| | | $ | 644,677 | | |
| | Assets acquired and liabilities assumed: | | | | | | | |
| |
Inventory
|
| | | $ | 150 | | |
| |
Natural gas properties – developed
|
| | | | 664,665 | | |
| |
Midstream assets
|
| | | | 254,813 | | |
| |
Other property and equipment
|
| | | | 8,907 | | |
| |
Property taxes
|
| | | | (9,039) | | |
| |
Deferred tax liability
|
| | | | (49,789) | | |
| |
Revenues payable
|
| | | | (16,612) | | |
| |
Asset retirement obligations
|
| | | | (44,765) | | |
| |
Total identifiable net assets
|
| | | $ | 808,330 | | |
| |
Bargain purchase gain
|
| | | $ | (163,653) | | |
| | | |
Three Months Ended September 30,
|
| |
Nine Months Ended September 30,
|
| ||||||||||||||||||
|
(in thousands)
|
| |
2022
|
| |
2021
|
| |
2022
|
| |
2021
|
| ||||||||||||
|
Revenues and other operating income (loss)
|
| | | $ | 303,794 | | | | | $ | (6,188) | | | | | $ | 742,547 | | | | | $ | 279,344 | | |
|
Net income (loss) and comprehensive income (loss) attributable to BKV Corp.
|
| | | $ | 77,752 | | | | | $ | (220,284) | | | | | $ | 220,115 | | | | | $ | (364,707) | | |
|
(in thousands)
|
| |
September 30, 2022
|
| |
December 31, 2021
|
| ||||||
|
Compressor station
|
| | | $ | 37,851 | | | | | $ | 6,831 | | |
|
Meter station
|
| | | | 654 | | | | | | 654 | | |
|
Pipelines
|
| | | | 271,754 | | | | | | 47,878 | | |
|
Total
|
| | | | 310,259 | | | | | | 55,363 | | |
|
Accumulated depreciation
|
| | | | (9,965) | | | | | | (7,417) | | |
|
Midstream assets, net
|
| | | $ | 300,294 | | | | | $ | 47,946 | | |
|
(in thousands)
|
| |
September 30, 2022
|
| |
December 31, 2021
|
| ||||||
|
Buildings
|
| | | $ | 16,789 | | | | | $ | 12,675 | | |
|
Furniture, fixtures, equipment and vehicles
|
| | | | 14,483 | | | | | | 6,555 | | |
|
Computer software
|
| | | | 4,844 | | | | | | 4,715 | | |
|
Leasehold improvements
|
| | | | 1,627 | | | | | | 1,571 | | |
|
Land
|
| | | | 3,090 | | | | | | 3,090 | | |
|
Total
|
| | | | 40,833 | | | | | | 28,606 | | |
|
Accumulated depreciation
|
| | | | (9,218) | | | | | | (6,482) | | |
|
Other property and equipment, net
|
| | | $ | 31,615 | | | | | $ | 22,124 | | |
| | | |
As of September 30, 2022
|
| |||||||||||||||||||||
| | | |
Fair Value Measurements Using:
|
| | | | | | | |||||||||||||||
|
(in thousands)
|
| |
Quoted Prices
in Active Markets (Level 1) |
| |
Significant Other
Observable Inputs (Level 2) |
| |
Significant
Unobservable Inputs (Level 3) |
| |
Total
|
| ||||||||||||
| Financial assets | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Derivative instruments
|
| | | $ | — | | | | | $ | 1,466 | | | | | $ | — | | | | | $ | 1,466 | | |
| Financial liabilities | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Derivative instruments
|
| | | $ | — | | | | | $ | 265,032 | | | | | $ | — | | | | | $ | 265,032 | | |
|
Contingent consideration
|
| | | $ | — | | | | | $ | — | | | | | $ | 190,773 | | | | | $ | 190,773 | | |
| Mezzanine equity | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Minority ownership puttable shares
|
| | | $ | — | | | | | $ | — | | | | | $ | 68,102 | | | | | $ | 68,102 | | |
|
Equity-based compensation
|
| | | $ | — | | | | | $ | — | | | | | $ | 91,128 | | | | | $ | 91,128 | | |
| | | |
As of December 31, 2021
|
| |||||||||||||||||||||
| | | |
Fair Value Measurements Using:
|
| | | | | | | |||||||||||||||
|
(in thousands)
|
| |
Quoted Prices
in Active Markets (Level 1) |
| |
Significant Other
Observable Inputs (Level 2) |
| |
Significant
Unobservable Inputs (Level 3) |
| |
Total
|
| ||||||||||||
| Financial assets | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Derivative instruments
|
| | | $ | — | | | | | $ | 9,986 | | | | | $ | — | | | | | $ | 9,986 | | |
| Financial liabilities | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Derivative instruments
|
| | | $ | — | | | | | $ | 114,818 | | | | | $ | — | | | | | $ | 114,818 | | |
|
Contingent consideration
|
| | | $ | — | | | | | $ | — | | | | | $ | 142,533 | | | | | $ | 142,533 | | |
| Mezzanine equity | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Minority ownership puttable shares
|
| | | $ | — | | | | | $ | — | | | | | $ | 49,841 | | | | | $ | 49,841 | | |
|
Equity-based compensation
|
| | | $ | — | | | | | $ | — | | | | | $ | 34,006 | | | | | $ | 34,006 | | |
|
(in thousands, except per share amounts)
|
| |
Fair Value
|
| |
Valuation
Technique |
| |
Unobservable
Input |
| |
Range or Actual
|
| |||
|
Common stock per share value – as of September 30, 2021(1)
|
| | | $ | 11.06 | | | |
Enterprise
value |
| |
Discount rate
|
| |
10%
|
|
|
Market condition equity-based
compensation per share value – as of September 30, 2021 |
| | | $ | 11.01 | | | |
Monte Carlo
Simulation |
| |
Performance
period dividends |
| |
50.0% of projected
annual net income |
|
|
Contingent consideration – as of December 31, 2021
|
| | | $ | 142,533 | | | |
Monte Carlo
Simulation |
| |
Risk Free Rate
|
| |
1.0%
|
|
| | | | | | | | | | | | |
Credit Spread
|
| |
4.0%
|
|
| | | | | | | | | | | | |
Discount Rate
|
| |
5.0%
|
|
|
Market condition equity-based
compensation per share value – as of December 31, 2021 |
| | | $ | 13.77 | | | |
Monte Carlo
Simulation |
| |
Performance
period dividends |
| |
3.0% equity capital,
annually |
|
|
Common stock per share value – as of December 31, 2021(1)
|
| | | $ | 11.75 | | | |
Enterprise value
|
| |
Performance
period dividends |
| |
7.7-9.5%
|
|
|
Market condition equity-based
compensation per share value – as of March 31, 2022 |
| | | $ | 24.25 | | | |
Monte Carlo
Simulation |
| |
Performance
period dividends |
| |
3.0% equity capital,
annually |
|
|
Common stock per share value – as of March 31, 2022(1)
|
| | | $ | 15.28 | | | |
Enterprise value
|
| |
Discount rate
|
| |
8.0-12.0%
|
|
|
Market condition equity-based
compensation per share value – as of June 30, 2022 |
| | | $ | 20.04 | | | |
Monte Carlo
Simulation |
| |
Performance
period dividends |
| |
3.0% equity capital,
annually |
|
|
Common stock per share value – as of June 30, 2022(1)
|
| | | $ | 16.79 | | | |
Enterprise value
|
| |
Discount rate
|
| |
8.0-12.0%
|
|
|
Market condition equity-based
compensation per share value – as of September 30, 2022 |
| | | $ | 18.78 | | | |
Monte Carlo
Simulation |
| |
Performance
period dividends |
| |
3.0% equity capital,
annually |
|
|
Common stock per share value – as of September 30, 2022(1)
|
| | | $ | 16.04 | | | |
Enterprise value
|
| |
Discount rate
|
| |
8.0-12.0%
|
|
|
Contingent consideration – as of September 30, 2022
|
| | | $ | 190,773 | | | |
Monte Carlo
Simulation |
| |
Risk Free Rate
|
| |
4.0%
|
|
| | | | | | | | | | | | |
Credit Spread
|
| |
4.5%
|
|
| | | | | | | | | | | | |
Discount Rate
|
| |
8.5%
|
|
|
(in thousands)
|
| |
September 30, 2022
|
| |
December 31, 2021
|
| ||||||
|
Balance beginning of period
|
| | | $ | 226,380 | | | | | $ | 54,853 | | |
|
Contingent consideration-additions from business combination
|
| | | | 17,150 | | | | | | — | | |
|
Contingent consideration – settlement
|
| | | | — | | | | | | (65,000) | | |
|
Minority ownership puttable share activity
|
| | | | 78 | | | | | | 511 | | |
|
Grant date fair value of equity-based compensation
|
| | | | 28,139 | | | | | | 28,990 | | |
|
Change in fair market value (all instruments)
|
| | | | 78,255 | | | | | | 207,026 | | |
|
Balance end of period
|
| | | $ | 350,002 | | | | | $ | 226,380 | | |
| | | |
As of September 30, 2022
|
| |||||||||||||||
|
(in thousands)
|
| |
Gross Amounts
of Assets and Liabilities |
| |
Offset
Adjustments |
| |
Net Amounts of
Assets and Liabilities |
| |||||||||
|
Current derivative assets
|
| | | $ | 5,429 | | | | | | (3,963) | | | | | $ | 1,466 | | |
|
Noncurrent derivative assets
|
| | | $ | 112 | | | | | | (112) | | | | | $ | — | | |
|
Current derivative liabilities
|
| | | $ | 218,622 | | | | | | (3,963) | | | | | $ | 214,658 | | |
|
Noncurrent derivative liabilities
|
| | | $ | 50,486 | | | | | | (112) | | | | | $ | 50,374 | | |
| | | |
As of December 31, 2021
|
| |||||||||||||||
|
(in thousands)
|
| |
Gross Amounts
of Assets and Liabilities |
| |
Offset
Adjustments |
| |
Net Amounts of
Assets and Liabilities |
| |||||||||
|
Current derivative assets
|
| | | $ | 9,986 | | | | | | — | | | | | $ | 9,986 | | |
|
Noncurrent derivative assets
|
| | | $ | — | | | | | | — | | | | | $ | — | | |
|
Current derivative liabilities
|
| | | $ | 91,156 | | | | | | — | | | | | $ | 91,156 | | |
|
Noncurrent derivative liabilities
|
| | | $ | 23,662 | | | | | | — | | | | | $ | 23,662 | | |
| | | |
Three Months Ended
September 30, |
| |||||||||
|
(in thousands)
|
| |
2022
|
| |
2021
|
| ||||||
|
Total loss on settled derivative instruments
|
| | | $ | (310,930) | | | | | $ | (101,512) | | |
|
Total gain (loss) on unsettled derivative instruments
|
| | | | 41,401 | | | | | | (220,817) | | |
|
Total loss on derivative instruments
|
| | | $ | (269,529) | | | | | $ | (322,329) | | |
| | | |
Nine Months Ended
September 30, |
| |||||||||
|
(in thousands)
|
| |
2022
|
| |
2021
|
| ||||||
|
Total loss on settled derivative instruments
|
| | | $ | (561,578) | | | | | $ | (123,570) | | |
|
Total loss on unsettled derivative instruments
|
| | | | (158,734) | | | | | | (377,034) | | |
|
Total loss on derivative instruments
|
| | | $ | (720,312) | | | | | $ | (500,604) | | |
|
Instrument
|
| |
MMBTU
|
| |
Weighted
Average Price (USD) |
| |
Weighted
Average Price Sub Floor |
| |
Weighted
Average Price Floor |
| |
Weighted
Average Price Ceiling |
| |
Weighted
Average Price Sub Ceiling |
| |
Fair Value as of
September 30, 2022 (in thousands) |
| |||||||||||||||||||||
| 2022 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Swap
|
| | | | 11,209,000 | | | | | $ | 4.41 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | $ | (27,462) | | |
|
Enhanced three-way collars
|
| | | | 8,235,000 | | | | | | | | | | | $ | 2.51 | | | | | $ | 2.54 | | | | | $ | 2.91 | | | | | $ | 3.18 | | | | | $ | (64,581) | | |
|
Collars
|
| | | | 305,000 | | | | | | | | | | | | | | | | | $ | 2.75 | | | | | $ | 3.30 | | | | | | | | | | | $ | (1,077) | | |
| 2023 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Swap
|
| | | | 52,674,600 | | | | | $ | 3.90 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | $ | (67,647) | | |
|
Enhanced three-way collars
|
| | | | 9,125,000 | | | | | | | | | | | | | | | | | $ | 2.45 | | | | | $ | 3.15 | | | | | $ | 3.15 | | | | | $ | (41,317) | | |
|
Collars
|
| | | | 41,250,000 | | | | | | | | | | | | | | | | | $ | 2.85 | | | | | $ | 3.75 | | | | | | | | | | | $ | (55,843) | | |
|
Instrument
|
| |
Basis
Reference Price |
| |
MMBTU
|
| |
Weighted
Average Basis Differential |
| |
Fair Value at
September 30, 2022 (in thousands) |
| |||||||||
| 2022 | | | | | | | | | | | | | | | | | | | | | | |
|
Swap
|
| |
Transco 85
|
| | | | 9,200,000 | | | | | $ | 0.46 | | | | | $ | 1,862 | | |
| 2023 | | | | | | | | | | | | | | | | | | | | | | |
|
Swap
|
| |
Transco 85
|
| | | | 9,000,000 | | | | | $ | 0.46 | | | | | $ | (1,798) | | |
|
Swap
|
| |
TETCO M3
|
| | | | 590,000 | | | | | $ | 10.68 | | | | | $ | 1,466 | | |
|
Instrument
|
| |
Commodity Reference Price
|
| |
Gallons
|
| |
Weighted
Average Price (USD) |
| |
Fair Value at
September 30, 2022 (in thousands) |
| |||||||||
| 2022 | | | | | | | | | | | | | | | | | | | | | | |
|
Swap
|
| | OPIS Purity Ethane Mont Belvieu | | | | | 34,385,400 | | | | | $ | 0.34 | | | | | $ | (1,925) | | |
|
Swap
|
| | OPIS IsoButane Mont Belvieu Non-TET | | | | | 966,000 | | | | | $ | 0.99 | | | | | $ | (96) | | |
|
Swap
|
| |
OPIS Normal Butane Mont Belvieu Non-TET
|
| | | | 1,932,000 | | | | | $ | 0.98 | | | | | $ | (11) | | |
|
Swap
|
| | OPIS Pentane Mont Belvieu Non-TET | | | | | 1,932,000 | | | | | $ | 1.46 | | | | | $ | (183) | | |
|
Swap
|
| | OPIS Propane Mont Belvieu Non-TET | | | | | 5,796,000 | | | | | $ | 0.86 | | | | | $ | (93) | | |
| 2023 | | | | | | | | | | | | | | | | | | | | | | |
|
Swap
|
| | OPIS Purity Ethane Mont Belvieu | | | | | 38,325,000 | | | | | $ | 0.23 | | | | | $ | (4,289) | | |
|
Swap
|
| | OPIS IsoButane Mont Belvieu Non-TET | | | | | 3,832,500 | | | | | $ | 0.80 | | | | | $ | (571) | | |
|
Swap
|
| |
OPIS Normal Butane Mont Belvieu Non-TET
|
| | | | 3,832,500 | | | | | $ | 0.80 | | | | | $ | (384) | | |
|
Swap
|
| | OPIS Pentane Mont Belvieu Non-TET | | | | | 7,665,000 | | | | | $ | 1.28 | | | | | $ | (1,522) | | |
|
Swap
|
| | OPIS Propane Mont Belvieu Non-TET | | | | | 22,995,000 | | | | | $ | 0.72 | | | | | $ | (2,004) | | |
|
Instrument
|
| |
Commodity Reference Price
|
| |
Gallons
|
| |
Weighted
Average Price Floor |
| |
Weighted
Average Price Ceiling |
| |
Fair Value
as of September 30, 2022 (in thousands) |
| ||||||||||||
| 2022 | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Collars
|
| | OPIS IsoButane Mont Belvieu Non-TET | | | | | 2,318,400 | | | | | $ | 1.25 | | | | | $ | 1.42 | | | | | $ | 316 | | |
|
Collars
|
| |
OPIS Normal Butane Mont Belvieu Non-TET
|
| | | | 1,545,600 | | | | | $ | 1.25 | | | | | $ | 1.42 | | | | | $ | 211 | | |
|
Collars
|
| | OPIS Pentane Mont Belvieu Non-TET | | | | | 5,922,000 | | | | | $ | 1.80 | | | | | $ | 2.19 | | | | | $ | 839 | | |
|
Collars
|
| | OPIS Propane Mont Belvieu Non-TET | | | | | 15,968,400 | | | | | $ | 1.14 | | | | | $ | 1.31 | | | | | $ | 2,150 | | |
| 2023 | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Collars
|
| | OPIS IsoButane Mont Belvieu Non-TET | | | | | 9,198,000 | | | | | $ | 0.95 | | | | | $ | 1.09 | | | | | $ | 393 | | |
|
(in thousands)
|
| |
September 30, 2022
|
| |
December 31, 2021
|
| ||||||
|
Asset retirement obligations, beginning of period
|
| | | $ | 158,968 | | | | | $ | 148,826 | | |
|
Additions through business combination
|
| | | | 44,765 | | | | | | — | | |
|
Liabilities incurred
|
| | | | 298 | | | | | | 923 | | |
|
Liabilities settled
|
| | | | (115) | | | | | | (811) | | |
|
Accretion of discount
|
| | | | 8,874 | | | | | | 10,030 | | |
|
Asset retirement obligations, end of period
|
| | | | 212,790 | | | | | | 158,968 | | |
|
Less current portion
|
| | | | (618) | | | | | | — | | |
|
Asset retirement obligations, long-term
|
| | | $ | 212,172 | | | | | $ | 158,968 | | |
|
(in thousands)
|
| |
September 30, 2022
|
| |||
| Credit facilities | | | | | | | |
|
Facility I
|
| | | $ | 45,000 | | |
|
Facility II
|
| | | | 10,000 | | |
|
Facility III
|
| | | | 75,000 | | |
|
Term loan
|
| | | | | | |
|
Current portion of Term Loan Credit Agreement
|
| | | | 114,000 | | |
|
Current portion of unamortized debt issuance costs
|
| | | | (2,050) | | |
|
Total current debt, net
|
| | | | 241,950 | | |
|
Long-term portion of Term Loan Credit Agreement
|
| | | | 456,000 | | |
|
Long-term portion of unamortized debt issuance costs
|
| | | | (4,246) | | |
|
Total long-term debt, net
|
| | | | 451,754 | | |
|
Total debt, net
|
| | | $ | 693,704 | | |
| | | |
Three Months Ended September 30, 2022
|
| |||||||||||||||
|
(in thousands)
|
| |
Pennsylvania
|
| |
Texas
|
| |
Total
|
| |||||||||
|
Natural gas
|
| | | $ | 74,614 | | | | | $ | 406,693 | | | | | $ | 481,307 | | |
|
Natural gas liquids
|
| | | | — | | | | | | 84,306 | | | | | | 84,306 | | |
|
Oil
|
| | | | — | | | | | | 2,424 | | | | | | 2,424 | | |
|
Total production revenues
|
| | | $ | 74,614 | | | | | $ | 493,423 | | | | | $ | 568,037 | | |
|
Marketing revenues
|
| | | | — | | | | | | 1,869 | | | | | | 1,869 | | |
|
Midstream revenues
|
| | | | 1,345 | | | | | | 1,392 | | | | | | 2,737 | | |
|
Total
|
| | | $ | 75,959 | | | | | $ | 496,684 | | | | | $ | 572,643 | | |
| | | |
Three Months Ended September 30, 2021
|
| |||||||||||||||
|
(in thousands)
|
| |
Pennsylvania
|
| |
Texas
|
| |
Total
|
| |||||||||
|
Natural gas
|
| | | $ | 33,282 | | | | | $ | 125,942 | | | | | $ | 159,224 | | |
|
Natural gas liquids
|
| | | | — | | | | | | 66,371 | | | | | | 66,371 | | |
|
Oil
|
| | | | — | | | | | | 1,434 | | | | | | 1,434 | | |
|
Total production revenues
|
| | | $ | 33,282 | | | | | $ | 193,747 | | | | | $ | 227,029 | | |
|
Marketing revenues
|
| | | | — | | | | | | 950 | | | | | | 950 | | |
|
Midstream revenues
|
| | | | 1,557 | | | | | | — | | | | | | 1,557 | | |
|
Total
|
| | | $ | 34,839 | | | | | $ | 194,697 | | | | | $ | 229,536 | | |
| | | |
Nine Months Ended September 30, 2022
|
| |||||||||||||||
|
(in thousands)
|
| |
Pennsylvania
|
| |
Texas
|
| |
Total
|
| |||||||||
|
Natural gas
|
| | | $ | 186,244 | | | | | $ | 783,281 | | | | | $ | 969,525 | | |
|
Natural gas liquids
|
| | | | — | | | | | | 247,404 | | | | | | 247,404 | | |
|
Oil
|
| | | | — | | | | | | 7,544 | | | | | | 7,544 | | |
|
Total production revenues
|
| | | $ | 186,244 | | | | | $ | 1,038,229 | | | | | $ | 1,224,473 | | |
|
Marketing revenues
|
| | | | — | | | | | | 7,197 | | | | | | 7,197 | | |
|
Midstream revenues
|
| | | | 4,688 | | | | | | 1,392 | | | | | | 6,080 | | |
|
Total
|
| | | $ | 190,932 | | | | | $ | 1,046,818 | | | | | $ | 1,237,750 | | |
| | | |
Nine Months Ended September 30, 2021
|
| |||||||||||||||
|
(in thousands)
|
| |
Pennsylvania
|
| |
Texas
|
| |
Total
|
| |||||||||
|
Natural gas
|
| | | $ | 74,608 | | | | | $ | 285,108 | | | | | $ | 359,716 | | |
|
Natural gas liquids
|
| | | | — | | | | | | 151,165 | | | | | | 151,165 | | |
|
Oil
|
| | | | — | | | | | | 5,491 | | | | | | 5,491 | | |
|
Total production revenues
|
| | | $ | 74,608 | | | | | $ | 441,764 | | | | | $ | 516,372 | | |
|
Marketing revenues
|
| | | | — | | | | | | 51,246 | | | | | | 51,246 | | |
|
Midstream revenues
|
| | | | 5,529 | | | | | | — | | | | | | 5,529 | | |
|
Total
|
| | | $ | 80,137 | | | | | $ | 493,010 | | | | | $ | 573,147 | | |
|
(in thousands)
|
| |
September 30, 2022
|
| |
December 31, 2021
|
| ||||||
|
Accounts payable
|
| | | $ | 71,846 | | | | | $ | 32,237 | | |
|
Commodity derivative settlements payable
|
| | | | 89,719 | | | | | | 43,252 | | |
|
Commodity derivative monetizations payable
|
| | | | 70,200 | | | | | | 23,175 | | |
|
Revenues payable
|
| | | | 22,899 | | | | | | 29,871 | | |
|
Other accrued liabilities
|
| | | | 63,854 | | | | | | 38,301 | | |
|
Total
|
| | | $ | 318,518 | | | | | $ | 166,836 | | |
|
(in thousands, except per share amounts)
|
| |
Shares
|
| |
Weighted
Average Grant Date Fair Value |
| ||||||
|
Unvested PRSUs at January 1, 2022
|
| | | | 11,589 | | | | | $ | 10.90 | | |
| Granted(1) | | | | | 466 | | | | | $ | 14.67 | | |
| Forfeited(1) | | | | | (204) | | | | | $ | 10.98 | | |
|
Unvested PRSUs as of September 30, 2022
|
| | | | 11,851 | | | | | $ | 11.09 | | |
| | | |
Performance Conditions
|
| |||||||||||||||||||||
| | | |
Weight
|
| |
Minimum
Threshold (0%) |
| |
Target
Threshold (50%) |
| |
Maximum
Threshold (100%) |
| ||||||||||||
|
TSR
|
| | | | 60% | | | | | | 5% | | | | | | 12.5% | | | | | | 20% | | |
|
ROCE
|
| | | | 20% | | | | | | —% | | | | | | 7% | | | | | | 14% | | |
|
IPO readiness (capability dates)
|
| | | | 20% | | | |
12/31/2024
|
| |
12/31/2023
|
| |
12/31/2022
|
| |||||||||
|
(in thousands, except per share amounts)
|
| |
Shares
|
| |
Weighted-
Average Grant Date Fair Value |
| ||||||
|
Unvested TRSUs at January 1, 2022
|
| | | | 2,328 | | | | | $ | 11.06 | | |
| Granted(1) | | | | | 100 | | | | | $ | 13.08 | | |
|
Vested
|
| | | | (317) | | | | | $ | 11.11 | | |
|
Forfeited
|
| | | | (37) | | | | | $ | 11.33 | | |
|
Unvested TRSUs as of September 30, 2022
|
| | | | 2,074 | | | | | $ | 11.16 | | |
|
Income Statement
(in thousands) |
| |
Nine Months Ended
September 30, 2022 |
| |||
| | | |
(unaudited)
|
| |||
|
Revenues
|
| | | $ | 249,605 | | |
|
Variable operating expenses
|
| | | | 154,474 | | |
|
Gross profit
|
| | | | 95,131 | | |
|
Operating expenses
|
| | | | 39,404 | | |
|
Income from operations
|
| | | | 55,727 | | |
|
Net income
|
| | | $ | 28,972 | | |
|
(in thousands)
|
| |
2022
|
| |
2023
|
| |
2024
|
| |
2025
|
| |
2026
|
| |
Thereafter
|
| |
Total
|
| |||||||||||||||||||||
|
Term loan payments
|
| | | $ | — | | | | | $ | 114,000 | | | | | $ | 114,000 | | | | | $ | 114,000 | | | | | $ | 114,000 | | | | | $ | 114,000 | | | | | $ | 570,000 | | |
|
Credit facilities
|
| | | | 130,000 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 130,000 | | |
|
Interest payable
|
| | | | 12,057 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 12,057 | | |
|
Notes payable to related party
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 75,000 | | | | | | 75,000 | | |
|
Interest on related party notes
|
| | | | 2,795 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 2,795 | | |
|
BKVerde management fees
|
| | | | 2,000 | | | | | | 8,000 | | | | | | 1,333 | | | | | | — | | | | | | — | | | | | | — | | | | | | 11,333 | | |
|
Lease payments
|
| | | | 2,952 | | | | | | 1,517 | | | | | | 1,029 | | | | | | 972 | | | | | | 848 | | | | | | 1,664 | | | | | | 8,982 | | |
|
Capital commitment
|
| | | | 3,500 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 3,500 | | |
|
Volume commitments
|
| | | | 16,531 | | | | | | 58,002 | | | | | | 42,112 | | | | | | 22,323 | | | | | | 20,538 | | | | | | 82,544 | | | | | | 242,050 | | |
|
Total
|
| | | $ | 169,835 | | | | | $ | 181,519 | | | | | $ | 158,474 | | | | | $ | 137,295 | | | | | $ | 135,386 | | | | | $ | 273,208 | | | | | $ | 1,055,717 | | |
| | | |
Three Months Ended
September 30, |
| |
Nine Months Ended
September 30, |
| ||||||||||||||||||
|
(in thousands)
|
| |
2022
|
| |
2021
|
| |
2022
|
| |
2021
|
| ||||||||||||
|
Basic weighted average common shares outstanding
|
| | | | 117,326 | | | | | | 116,978 | | | | | | 117,316 | | | | | | 117,027 | | |
|
Add: dilutive effect of TRSUs
|
| | | | 806 | | | | | | — | | | | | | 654 | | | | | | — | | |
|
Add: dilutive effect of PRSUs
|
| | | | 9,212 | | | | | | — | | | | | | 6,627 | | | | | | — | | |
|
Diluted weighted average of common shares outstanding
|
| | | | 127,344 | | | | | | 116,978 | | | | | | 124,597 | | | | | | 117,027 | | |
|
Weighted average number of outstanding securities excluded
from the calculation of diluted loss and comprehensive loss per share |
| | | | | | | | | | | | | | | | | | | | | | | | |
|
TRSUs
|
| | | | — | | | | | | 83 | | | | | | — | | | | | | 395 | | |
|
PRSUs
|
| | | | — | | | | | | 2,519 | | | | | | — | | | | | | 1,389 | | |
|
Preferred stock
|
| | | | — | | | | | | 33,109 | | | | | | — | | | | | | 33,927 | | |
| | | |
Year Ended
December 31, |
| |
Six Months Ended
June 30, |
| ||||||||||||||||||
|
(in U.S. Dollars)
|
| |
2021
|
| |
2020
|
| |
2022
|
| |
2021
|
| ||||||||||||
| | | | | | | | | | | | | | | |
(Unaudited)
|
| |||||||||
| REVENUES | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Oil and condensate, gas and NGL sales
|
| | | | 307,980,127 | | | | | | 183,587,740 | | | | | | 219,232,387 | | | | | | 117,279,977 | | |
|
Midstream operating revenues
|
| | | | 6,243,524 | | | | | | 6,400,076 | | | | | | 3,620,836 | | | | | | 2,788,135 | | |
|
Other revenues
|
| | | | 267,540 | | | | | | 395,570 | | | | | | 247,704 | | | | | | 127,602 | | |
|
Total Revenues
|
| | | | 314,491,191 | | | | | | 190,383,386 | | | | | | 223,100,927 | | | | | | 120,195,714 | | |
| DIRECT OPERATING EXPENSES | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Lease operating expense
|
| | | | 76,921,954 | | | | | | 83,055,070 | | | | | | 47,456,160 | | | | | | 36,713,078 | | |
|
Overhead costs
|
| | | | 20,826,466 | | | | | | 20,523,594 | | | | | | 10,720,051 | | | | | | 10,442,276 | | |
|
Cost of goods sold
|
| | | | 49,794,678 | | | | | | 50,306,855 | | | | | | 25,320,736 | | | | | | 22,616,152 | | |
|
Production and property taxes
|
| | | | 21,667,036 | | | | | | 17,056,948 | | | | | | 10,696,307 | | | | | | 4,262,571 | | |
|
Total Direct Operating Expenses
|
| | | | 169,210,134 | | | | | | 170,942,467 | | | | | | 94,193,254 | | | | | | 74,034,077 | | |
|
REVENUES IN EXCESS OF DIRECT OPERATING EXPENSES
|
| | | | 145,281,057 | | | | | | 19,440,919 | | | | | | 128,907,673 | | | | | | 46,161,637 | | |
| | | |
Natural Gas
(MMcf) |
| |
NGL
(MBbls) |
| |
Oil
(MBbls) |
| |
Total
(MMcfe) |
| ||||||||||||
|
January 1, 2020
|
| | | | 965,033 | | | | | | 18,703 | | | | | | 189 | | | | | | 1,078,385 | | |
|
Revision of previous estimates(1)
|
| | | | (217,748) | | | | | | (4,441) | | | | | | (45) | | | | | | (244,664) | | |
|
Production
|
| | | | (85,388) | | | | | | (1,435) | | | | | | (19) | | | | | | (94,112) | | |
|
December 31, 2020
|
| | | | 661,897 | | | | | | 12,827 | | | | | | 125 | | | | | | 739,609 | | |
|
Revision of previous estimates(2)
|
| | | | 359,153 | | | | | | 6,807 | | | | | | 77 | | | | | | 400,457 | | |
|
Production
|
| | | | (74,076) | | | | | | (1,283) | | | | | | (18) | | | | | | (81,882) | | |
|
December 31, 2021
|
| | | | 946,974 | | | | | | 18,351 | | | | | | 184 | | | | | | 1,058,184 | | |
|
Future cash flows
(in thousands) |
| |
As of December 31,
|
| |||||||||
| |
2021
|
| |
2020
|
| ||||||||
|
Future estimated revenues(1)
|
| | | $ | 2,724,244 | | | | | $ | 686,798 | | |
|
Future estimated production costs(2)
|
| | | | (1,190,931) | | | | | | (508,748) | | |
|
Future estimated development costs(2)
|
| | | | (121,966) | | | | | | (122,467) | | |
|
Future income tax expense(3)
|
| | | | (14,302) | | | | | | (3,606) | | |
|
Future net cash flows
|
| | | | 1,397,045 | | | | | | 51,977 | | |
|
10% annual discount for estimated timing of cash flows
|
| | | | (688,067) | | | | | | (25,602) | | |
|
Standardized measure of discounted future net cash flows related to proved reserves
|
| | | $ | 708,978 | | | | | $ | 26,375 | | |
| | | |
For the Years Ended
December 31, |
| |||||||||
|
(in thousands)
|
| |
2021
|
| |
2020
|
| ||||||
|
Balance, beginning of period
|
| | | $ | 26,375 | | | | | $ | 341,528 | | |
|
Net change in sales and transfer prices and in production (lifting) costs related to future production
|
| | | | 574,114 | | | | | | (179,269) | | |
|
Changes in estimated future development costs
|
| | | | 148 | | | | | | (782) | | |
|
Sales and transfers of natural gas, NGLs and oil produced during the period
|
| | | | (188,565) | | | | | | (62,952) | | |
|
Net change due to revisions in quantity estimates
|
| | | | 278,939 | | | | | | (104,659) | | |
|
Net change in future income taxes
|
| | | | (4,558) | | | | | | 2,402 | | |
|
Accretion of discount
|
| | | | 2,815 | | | | | | 34,571 | | |
|
Changes in timing and other
|
| | | | 19,710 | | | | | | (4,464) | | |
|
Total discounted cash flow as end of period
|
| | | $ | 708,978 | | | | | $ | 26,375 | | |
| |
SEC registration fee
|
| | | $ | 11,020 | | |
| |
FINRA filing fee
|
| | | | 15,500 | | |
| |
NYSE listing fees
|
| | | | * | | |
| |
Transfer agent and registrar fees and expenses
|
| | | | * | | |
| |
Printing fees and expenses
|
| | | | * | | |
| |
Legal fees and expenses
|
| | | | * | | |
| |
Accounting fees and expenses
|
| | | | * | | |
| |
Miscellaneous
|
| | | | * | | |
| |
Total
|
| | | $ | * | | |
| |
Exhibit
Number |
| |
Description
|
|
| | 1.1* | | | Form of Underwriting Agreement | |
| | 2.1**+‡ | | | | |
| | 2.2**+ | | | First Amendment to Purchase and Sale Agreement, dated April 13, 2020, among Devon Energy Production Company, L.P., BKV Barnett, LLC and, solely with respect to the sections listed therein, BKV Oil & Gas Capital Partners, L.P. | |
| | 2.3**+ | | | | |
| | 3.1** | | | | |
| | 3.2** | | | | |
| | 3.3** | | | | |
| | 3.4** | | | | |
| | 4.1** | | | | |
| | 5.1* | | | Opinion of Baker Botts L.L.P. as to the legality of the securities being registered | |
| | 10.1**+ | | | | |
| | 10.2** | | | | |
| | 10.3** | | | | |
| | 10.4**+ | | | Revolving Credit Agreement, dated August 24, 2022, among BKV Corporation, the lenders party thereto and Bangkok Bank Public Company Limited, New York Branch | |
| | 10.5** | | | | |
| | 10.6** | | | | |
| | 10.7**†‡ | | | | |
| | 10.8**† | | | | |
| | 10.9**†‡ | | | | |
| | 10.10**† | | | | |
| | 10.11**† | | | | |
| | 10.12**† | | | | |
| | 10.13**† | | | | |
| | 10.14**† | | | | |
| | 10.15**†‡ | | | |
| |
Exhibit
Number |
| |
Description
|
|
| | 99.3** | | | | |
| | 99.4** | | | | |
| | 99.5** | | | | |
| | 99.6** | | | | |
| | 99.7** | | | | |
| | 99.8** | | | | |
| | 99.9** | | | | |
| | 99.10** | | | | |
| | 99.11** | | | | |
| | 99.12** | | | | |
| | 99.13** | | | | |
| | 99.14** | | | Ryder Scott Company, L.P., Summary of Reserves at September 30, 2022 (NYMEX Strip Pricing) (BKV Barnett, LLC) | |
| | 99.15** | | | Ryder Scott Company, L.P., Summary of Reserves at September 30, 2022 (NYMEX Strip Pricing) (BKV Chaffee Corners, LLC) | |
| | 99.16** | | | Ryder Scott Company, L.P., Summary of Reserves at September 30, 2022 (NYMEX Strip Pricing) (BKV Chelsea, LLC) | |
| | 99.17** | | | Ryder Scott Company, L.P., Summary of Reserves at September 30, 2022 (NYMEX Strip Pricing) (BKV Operating, LLC) | |
| | 99.18** | | | | |
| | 107** | | | |
| |
Name
|
| |
Title
|
| |
Date
|
|
| |
/s/ Christopher P. Kalnin
Christopher P. Kalnin
|
| |
Chief Executive Officer and Director
(Principal Executive Officer) |
| |
December 22, 2022
|
|
| |
*
John T. Jimenez
|
| |
Chief Financial Officer
(Principal Financial Officer) |
| |
December 22, 2022
|
|
| |
*
Barry S. Turcotte
|
| |
Chief Accounting Officer
(Principal Accounting Officer) |
| |
December 22, 2022
|
|
| |
*
Chanin Vongkusolkit
|
| |
Chairman of the Board
|
| |
December 22, 2022
|
|
| |
*
Somruedee Chaimongkol
|
| |
Director
|
| |
December 22, 2022
|
|
| |
*
Joseph R. Davis
|
| |
Director
|
| |
December 22, 2022
|
|
| |
*
Akaraphong Dayananda
|
| |
Director
|
| |
December 22, 2022
|
|
| |
*
Carla S. Mashinski
|
| |
Director
|
| |
December 22, 2022
|
|
| |
*
Thiti Mekavichai
|
| |
Director
|
| |
December 22, 2022
|
|
| |
*
Charles C. Miller III
|
| |
Director
|
| |
December 22, 2022
|
|
| |
*
Sunit S. Patel
|
| |
Director
|
| |
December 22, 2022
|
|
| |
Name
|
| |
Title
|
| |
Date
|
|
| |
*
Anon Sirisaengtaksin
|
| |
Director
|
| |
December 22, 2022
|
|
| |
*
Sinon Vongkusolkit
|
| |
Director
|
| |
December 22, 2022
|
|
| |
*By:
/s/ Christopher P. Kalnin
Christopher P. Kalnin
Attorney-in-fact |
| | | ||||
Exhibit 10.31
KalninVentures
November 14, 2022
PERSONAL & CONFIDENTIAL
Barry Turcotte
Denver, CO 80211
| Re: | Offer of Employment |
Dear Barry:
Kalnin Ventures, LLC (“Company”) is pleased to offer you the position of Chief Accounting Officer, with an anticipated start date of November 28, 2022. This offer of employment is conditioned on your satisfactory completion of certain requirements, as more fully explained in this letter. You will report to John Jimenez, Chief Financial Officer. Your primary office location will be in Denver, Colorado, subject to business travel as needed. Your position will be exempt, which means that you will not be eligible for overtime compensation in accordance with Company policy. Your primary duties and responsibilities are included in the attached job description. We also attached Colorado Overtime and Minimum Pay Standards Order 36.
Base Compensation
You will be paid a salary in accordance with the Company’s regular payroll practices. Your bi-weekly rate of pay will be $10,000.00 (equivalent to $260,000.00 on an annualized basis), less lawful deductions and withholdings, for all hours worked.
Bonus
| · | Short-term Incentive: |
During your employment, you may also, in the Company’s sole discretion, be eligible to receive a short-term incentive (STI) bonus each calendar year in addition to your base compensation. We anticipate that your STI bonus will have a target percentage of 30% of your annual base compensation.
The availability of any STI bonus will be determined based upon the Company’s performance and will take into account your individual effort and satisfactory achievement of established performance goals. You must remain continuously employed through the STI bonus payment date and meet all of the program requirements to be eligible to receive any STI bonus.
| · | Sign-on Bonus: |
You will be paid a signing bonus of thirty thousand dollars ($30,000). The bonus will be paid in one lump sum in a separate check on the next regularly scheduled pay date after you start employment with the Company. The signing bonus is taxable and all appropriate payroll taxes will be withheld. In the event you leave the Company within two (2) years of your date of hire, without the Company’s prior agreement you will be responsible for reimbursing the Company. By your signature on this offer, you authorize the Company to withhold the amount of thirty thousand dollars ($30,000) less taxes previously withheld from any severance and other final pay you would receive upon termination of employment.
KalninVentures.com Oil & Gas Investment Company | 1200 17th Street, Suite 2100 | Denver, CO 80202
KalninVentures
LTIP
| · | Long term Incentive: |
The role is also eligible to participate in the Company’s Long-Term Incentive Plan (LTIP) in 2023 subject to meeting and exceeding performance expectations, final requisite management Compensation Committee approval and the availability of awards as set forth in the LTIP plan document.
As with the STI bonus, the availability of any grant of LTIP, will be determined based upon the Company’s performance and will consider your individual effort and satisfactory achievement of established performance goals.
PTO
You will accrue thirty (30) days of paid time off (“PTO”) per year during your first year of employment. PTO is accrued on a pro-rata basis throughout the year. We request that you schedule vacation in advance and receive approval from your manager to take vacation time. Unused, accrued PTO will carry over into the new calendar year. Unused, accrued PTO will be paid out upon your separation from employment.
Benefits
As a regular, full-time employee, you will be eligible to participate in our benefits package including health (medical, dental, vision, short & long-term disability, group life and AD&D) and flexible spending accounts. These benefits will be effective on your first day of employment. We also offer a 401k, which currently offers up to a 6% company match. Please understand that the Company reserves the right to modify, supplement and discontinue all benefit plans and programs at any time in its sole discretion.
Our offer assumes that you are legally authorized to work in the United States. As a condition to your employment offer, you will be required to complete an I-9 form and to provide appropriate documents, which establish employment authorization and identity in accordance with the Immigration Reform and Control Act.
This offer is contingent upon your satisfactory completion of all Company pre-employment background checks, including but not limited to its reference check and drug testing. You will receive background check notices and authorization forms to enable the Company to conduct these background checks.
As a condition to your employment with the Company, you agree to follow the rules and regulations of the Company. Attached is a Confidential Information and Non-Solicitation Agreement and an Arbitration Agreement for you to sign and return to us. Further, please understand that the Company reserves the right to modify, supplement and discontinue all policies, rules, and regulations at any time in its sole discretion.
KalninVentures.com Oil & Gas Investment Company | 1200 17th Street, Suite 2100 | Denver, CO 80202
KalninVentures
By signing this letter below and accepting our offer of employment, you represent and acknowledge that you are not aware of any obligations, contractual or otherwise, relating to a prior employer or any other entity that would prevent or prohibit you from fully performing your duties and responsibilities for the Company now or in the future. The Company will not be liable for any potential breaches of contract and other commitments arising from your previous employment. We understand that no such commitments exist which would prevent you from acting on our behalf, now or in the future. Therefore, this offer is based on the expectation that on the date you join us, you are free of all other engagements and obligations. We also direct you not to share with the Company or any of its employees any trade secrets and confidential and proprietary information of your former employers. If you are not sure whether information that you possess and plan to use at the Company constitutes trade secrets and/or confidential and proprietary information of your former employers, we direct you to refrain from using and/or sharing it.
Your employment with the Company will be on an at-will basis, meaning that you and the Company may end your employment at any time, with or without cause or notice. Your at-will employment relationship cannot be changed by any oral representation, written document, or other conduct unless such change is specifically acknowledged in writing by an authorized executive of the Company. This letter is merely a summary of the principal terms of our employment offer and is not a contract of employment or a guarantee of employment for any definite period of time.
We request you to sign this letter below to acknowledge your understanding and agreement to its terms. We look forward to working with you.
Very truly yours,
| /s/ John Jimenez | ||
| KalninVentures, LLC | ||
| By: | John Jimenez, Chief Financial Officer | |
Encs.:
Job Description
Confidential Information and Non-Solicitation Agreement
COMPS Order 36
Arbitration Agreement
I have read, understand, and agree to the terms of this letter.
| /s/ Barry Turcotte | |
| Barry Turcotte |
| 11/16/2022 | |
| Date |
KalninVentures.com Oil & Gas Investment Company | 1200 17th Street, Suite 2100 | Denver, CO 80202
CONFIDENTIALITY AND NON-SOLICITATION AGREEMENT
This Confidentiality And Non-Solicitation Agreement (“Agreement”) is made by and between BKV Barnett, LLC, a Colorado limited liability company, with offices at 1200 17th Street, Suite 2100, Denver CO 80202 (together with its direct or indirect parent organizations, subsidiaries, divisions and associated and affiliated entities, if any, the “Company”), and Barry Turcotte (“Employee”).
WHEREAS: This Agreement is incidental to an offer letter between the Company and Employees, the Company provides investment opportunities in natural gas and oil exploration and development; Employee desires to become employed by the Company as Chief Accounting Officer; and the employment relationship will involve the Company providing the Employee substantial trade secrets, confidential information and important opportunities and benefits including, but not limited to, specialized training and access to clients and contacts. In consideration of the employment/continued employment of Employee by the Company, and other good and valuable consideration to Employee, the receipt and sufficiency of which is acknowledged by Employee, the parties agree as follows:
1. Intention. Employee acknowledges that Employee and the Company have entered a confidential relationship of trust. Employee will serve the Company faithfully, devote Employee’s best efforts to carry out Employee’s responsibilities on behalf of the Company, and will not engage in any employment activity for others (for compensation or otherwise), or other activities competitive with the Company except as described below. Also, as discussed below, Employee has been provided, will be provided, and will develop Confidential Information while employed by the Company. The obligations set forth below are intended to protect the Company’s Confidential Information in order to maximize the Company’s economic advantage in the Company’s business.
2. Confidential Information. The term “Confidential Information” means any proprietary or business-sensitive information, which is not generally known to the public and which, if released to unauthorized persons, would be detrimental to the reputation or business interests of the Company, its affiliates or parties with which it does business, or would permit such unauthorized persons to improperly benefit. Employee and the Company agree Confidential Information includes but is not limited to: (i) financial information; (ii) customer information, including but not limited to customer/client names, telephone numbers, addresses, any compilations of past, existing or prospective customers, customer account information, pricing information, proposals for customers, or prospective customers; (iii) information related to investment opportunities in natural gas and oil exploration and development; (iv) supply and service information; (v) research and marketing information; (vi) personnel information, including, without limitation, salaries, bonuses, benefits and relative skills and abilities; (vii) business operations information; (viii) any formula, pattern, device or compilation of information which is used in the company’s business and which gives the Company an advantage over its competitors; (ix) specialized training; and (x) Trade Secrets as described below. The Company will provide Employee with access to Confidential Information that the Company deems necessary for Employee to perform Employee’s job functions, during the term of Employee’s employment. Employee recognizes that such Confidential Information is the property of the Company, and Employee shall not disclose to others (except as required in Employee’s duties to the Company), nor will Employee use for Employee’s or another’s benefit any such Confidential Information, either during Employee’s employment with the Company or thereafter. Excluded from the definition of Confidential information is any confidential information that Employee possessed prior to and unrelated to his employment with the Company. Notwithstanding the foregoing, nothing in this Agreement is intended to prevent Employee from engaging in activity protected by the National Labor Relations Act, including engaging in discussion of concerns about working conditions or other concerted activities.
3. Trade Secrets. The term “Trade Secrets” means any scientific or technical information, design, process, procedure, formula, pattern, device or compilation of information or improvement which is used in the Company’s business and the business of its Employees, which gives the Company an economic advantage over its competitors, which is not known to the Company’s competitors, and which the Company treat as confidential. Trade Secrets shall include, without limitation and without regard to form, any formula, pattern, business data compilation, program, device, method, technique, design, diagram, drawing, invention, plan, procedure, prototype or process that (a) relates to investment opportunities in natural gas and oil exploration and development; (b) derives independent economic value, actual or potential, from not being generally known to, and not being readily ascertainable by proper means by, other persons who can obtain economic value from its disclosure or use, and (c) is the subject of efforts that are reasonable under the circumstances to maintain its secrecy. Excluded from the definition of Trade Secrets is any trade secrets that Employee possessed prior to and unrelated to his/her employment with the Company.
4. Return of Records. Employee shall immediately upon termination of Employee’s employment with the Company, for any reason, or at any other time the Company so requests, deliver to the Company all records, reports, data, memoranda, notes, models, drafts and equipment of any nature prepared or acquired in Employee’s course of employment with the Company, including but not limited to all Confidential Information, which are in the possession of or under the control of Employee. Employee shall not take any such records, reports, customer documents, data, memoranda, notes, models, or equipment, or copies or reproductions thereof, that relate to the business activities of the Company and/or to parties in a contract relationship with the Company.
5. Inventions, Ideas, and Other Intellectual Developments. In view of the purposes of the Company and the need to secure for the Company and/or “Interested Parties” (defined below) their right to Intellectual Developments (defined below) related to the business of the Company and/or such Interested Party, Employee understands that the Company must be in a position to use, assign, and otherwise dispose of Intellectual Developments made by its employees. Accordingly, except for those items excluded by Paragraph 10 below, Employee shall promptly disclose to the Company and, when requested, furnish to the Company a complete record of every discovery, invention, improvement, innovation, design, analysis, reports, drawings, copyright, intellectual property right and other definite and useful idea or compilation of information of value (individually and collectively an “Intellectual Development”), which Employee may make or originate, individually or with others, at any time during the term of Employee’s employment by the Company. Employee hereby assigns to the Company or its nominee the entire rights throughout the world to such Intellectual Developments which relate to the current or potential business or activities of the Company or any Interested Parties or which results from Employee’s work with the Company. The term “Interested Parties” means any person having a business relationship with the Company where the relationship gives rise to a claim by that person to some interest in Intellectual Developments made by employees of the Company or its affiliates.
2
6. Cooperation. Employee shall fully cooperate with the Company or its designees in securing, in the name of the Company or its designees, rights with respect to the Intellectual Developments described in Paragraph 5 above, in all countries. Employee shall promptly execute all proper documents presented for signature and do all things reasonably required to enable the Company or its designees to accomplish the above, at any time during or after Employee’s employment.
7. Shop Rights and Holdover. Employee agrees that the Company or its designees shall be entitled to shop rights to any Intellectual Developments conceived or made by Employee that is not related to the Company’s Trade Secrets and/or Confidential Information but conceived or made on Company time or with the use of the Company’s facilities or materials. Employee further agrees that any Intellectual Developments related to the Company’s Trade Secrets and/or Confidential Information described by Employee in a patent, service mark, trademark, or copyright application, disclosed by Employee in any manner to a third person, or created by Employee or Employee’s affiliates or any person with whom Employee has any business, financial or confidential relationship, within one (1) year after cessation of Employee’s employment with the Company for any reason, was conceived or made by Employee during Employee’s employment with the Company and is therefore the sole property of the Company or its designees.
8. Information and Testimony. For a period of time up to five years from the Employee’s last date of employment with the Company, Employee shall, without expense to Employee, give such true information and testimony at reasonable times and places upon prior notice, under oath if requested, as may be requested by the Company or its designees relative to any Intellectual Development described in Paragraph 5 above.
9. Interest of the Employee. As to inventions, applications for patents, and copyrightable material in which the Employee presently holds an interest, and which are not subject to this Agreement:
Check One: x Employee has no such property.
x Employee has described all such property in Paragraph 10, below.
10. Description of Inventions, Applications for Patents and Copyright Material Exempted in Paragraph 9.
In-progress children's book related to diversity
| By: | /s/ Barry Turcotte | on | 11/16/2022 | |
| Barry Turcotte | Date |
3
11. Non-Solicitation/Non-Interference. Employee acknowledges that but for Employee’s employment with the Company, Employee would not have had access to, or possess Confidential Information and information regarding the Company’s customers, suppliers, consultants, vendors or leads for and “Potential Customers” (defined to mean those with which the Company has expended dedicated resources to secure), suppliers, vendors or employees. Employee agrees that during the course of Employee’s employment and for a period of one (1) year after the cessation of Employee’s employment for any reason, Employee shall not, directly or indirectly, solicit on Employee’s behalf or on behalf of any of the Company’s competitors or potential competitors, or directly or indirectly, assist any of the Company’s competitors or potential competitors in soliciting: (a) any current customer as of the date of termination of Employee’s employment with the Company, with which Employee had contact or access to Confidential Information about during the final twelve months of the Employee’s employment with the Company; (b) any lead or Potential Customer as of the date of termination of Employee’s employment with the Company about which Employee learned or contacted or to which Employee was given access during the last year of the Employee’s employment with the Company; (c) any employees of the Company to leave the employ or in any other way modify or alter their respective employment or business relationship with the Company; or (d) any vendors or suppliers with whom the Company conducts business or planned to conduct business during the final twelve months of the Employee’s employment with the Company. Employee further shall not induce or attempt to induce any customer or Potential Customer, supplier, consultant, vendor, or other person or entity with whom the Company has done business or sought to do business within the last twelve (12) months to cease, limit, or reduce business with the Company, or in any way interfere with the existing or prospective business relationship between any such person or entity and the Company. The prohibition in this Paragraph shall not restrict Employee’s ability to communicate with a customer or a Potential Customer of the Company wholly unrelated to and not competitive with the nature of the Company’s business of creating and managing investment opportunities in natural gas and oil exploration and development, the Confidential Information and the Trade Secrets.
12. Non-Disparagement. The Employee agrees that at any time during his/her employment with the Company and at any time thereafter, the Employee shall not, except in the good faith commission of his/her duties and responsibilities, make, or cause or assist any other person to make, any statement or other communication that impugns or attacks, or is otherwise critical to the reputation, business or character of the Company or any of its officers, directors, members, managers, employees, products or services.
13. DTSA. In accordance with the Defend Trade Secrets Act (“DTSA”), an employee will not be held criminally or civilly liable under any federal or state trade secret law if an employee discloses a trade secret in confidence to federal, state, or local government officials, to his/her attorney solely for the purpose of reporting or investigating a suspected violation of law, or in a sealed complaint or other document filed in a lawsuit or other proceeding. Further, an employee who files a lawsuit alleging retaliation by an employer for reporting a suspected violation of law may disclose the trade secret to his or her attorney and use the trade secret information in the court proceeding if the individual: (a) files the document containing the trade secret in a sealed court document and (b) does not disclose the trade secret, except pursuant to court order. The DTSA does not, however, offer protection from liability for individuals who access trade secrets by unlawful means.
4
14. Reasonableness of Restraints, Irreparable Harm. Employee acknowledges that: (a) the agreements and covenants contained herein are reasonably necessary to protect the goodwill, Confidential Information, Trade Secrets, and other business interests of the Company; (b) any breach of the covenants contained herein will cause the Company immediate irreparable harm for which injunctive relief would be necessary; (c) the covenants contained herein are essential and material elements of this Agreement and the Company would not have entered into this Agreement or permitted Employee to obtain employment or remain employed without those covenants being included in this Agreement; (d) Employee has had the opportunity to consult with and be advised by legal counsel concerning the reasonableness and propriety of the covenants contained herein; and (e) in the event of any violation or attempted violation of the covenants contained herein, the Company shall be entitled to a temporary restraining order, temporary or permanent injunctions, and other injunctive relief, without any showing of irreparable harm or damage or any need to post a bond, in addition to any other rights or remedies which may then be available to the Company. In addition to, but not instead of, any other legal or equitable remedies available to the Company, Employee hereby agrees to reimburse the Company for reasonable attorneys’ fees and costs incurred by the Company in the event the Company is successful in showing a violation or attempted violation of this Agreement as determined by a court of competent jurisdiction.
15. Tolling. In the event that Employee violates the terms of this Agreement, the restrictions set forth in Sections 11 (as applicable to each violation) of this Agreement shall be tolled and extended for the period of time that employee violates the Agreement up to a period of six (6) months for each violation. In the event of multiple violations, the six-month extensions of the restrictions set forth herein shall run consecutively.
16. Waiver of Breach. The Company’s waiver of a breach of any provision of this Agreement by Employee does not waive any subsequent breach by Employee, nor does the Company’s failure to take action against any other employee for similar breaches operate as a waiver by the Company of a breach.
17. Employee’s Representation and Warranties. Employee represents that Employee is not subject to any agreement or restriction limiting in any way the scope of this Agreement, or in any way inconsistent with any of the promises made by Employee in this Agreement. Employee also understands that the Company expects Employee not to disclose to the Company or use at or for the Company any secret or confidential information, intellectual property, or trade secret that the Employee obtained from any of his/her former employers, which is not publicly available. Employee agrees not to use at or for the Company any such trade secrets, intellectual property, or confidential information, or property belonging to any of Employee’s former employers or any other third parties, without proper authorization from them. Employee agrees to indemnify and hold the Company harmless from any and all claims, judgments, or liabilities that this Agreement and/or employment of Employee by the Company, as determined by a court of competent jurisdiction, violate the rights of any third party or parties, and from any costs and expenses, including attorneys’ fees, incurred by the Company in the defense thereof.
5
18. Assignment. Employee’s obligations under this Agreement shall not be assignable by Employee, although the Company shall have the right to assign this Agreement. This Agreement shall be binding upon Employee and shall inure to the benefit of the Company and its successors and assigns. All Company subsidiaries, affiliates and parent companies, and successors in interest of or to the Company are intended to be third party beneficiaries of this Agreement. The Company, its subsidiaries, affiliates and parent companies and/or their successors and assigns may enforce the covenants of this Agreement.
19. Disclosures of this Agreement. Within twelve (12) months of Employee’s termination of employment with the Company for any reason or until the restrictions expire as set forth in any court order, or pursuant to any extension of the restrictions as set forth in this Agreement, Employee shall deliver a copy of the Agreement to each person or firm that Employee seeks to join and which operates a business that competes with the Company by providing investment opportunities in natural gas and oil exploration and development like that of the Company.
20. Employment At-Will. The Company hereby employs or continues to employ Employee as an employee of the Company. Employee acknowledges that Employee’s employment relationship with the Company is at-will and that either party may terminate the relationship, for any reason, with or without cause and without notice.
21. Renewal of Employment. This Agreement shall, without express mention, be deemed to continue during any periods of renewal of employment of Employee, including but not limited to, periods of employment following promotions or transfers, or during any subsequent re-employment of Employee by the Company.
22. Survival. No change in Employee’s duties or salary shall affect, alter, or otherwise release Employee from the restrictive covenants of this Agreement. All covenants, agreements, representations, and warranties made by Employee shall survive Employee’s cessation of employment with the Company for any reason, in accordance with their respective terms and conditions.
23. Forum and Law Selection. This Agreement shall be construed in accordance with and governed for all purposes by the law of the State of Colorado, without regard to its conflict of law provisions. The parties consent and agree that any action or proceeding between them arising from this Agreement shall be brought exclusively in the state or federal courts of the State of Colorado, and Employee hereby expressly consents to the personal jurisdiction thereof.
24. Miscellaneous. This Agreement supersedes any and all prior understandings and agreements between the parties concerning Employee’s ability to compete with the Company, and/or to solicit its customers, leads, potential customers and employees, and/or maintain the secrecy of the Company’s Confidential Information. To the extent any portion of this Agreement, or any portion of any provision of this Agreement is held to be invalid or unenforceable, it is the parties’ express intent it shall be construed by severing, limiting and reducing it so as to be enforceable to the extent compatible with applicable law. All remaining provisions, and/or portions thereof, shall remain in full force and effect. This Agreement may not be altered or amended except in writing, signed by Employee and an authorized representative of the Company, wherein specific reference is made to this Agreement, provided, however, no such signed writing will be required for a modification of the covenants by a court to make them enforceable to the extent compatible with applicable law. The headings of each paragraph of this Agreement are for convenience only and shall not affect the meaning or intent of any provision of this Agreement. The rights and remedies in this Agreement shall be deemed cumulative, and the exercise of one such remedy shall not operate to bar the exercise of any other rights and remedies reserved to the Company or available at law or in equity. This Agreement shall be binding upon and inure to the benefit of the Company and its successors and assigns, related or associated entities, and Employee.
6
IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement on the date first above mentioned.
| KALNIN VENTURES, LLC | EMPLOYEE | |||
| By: | /s/ John Jimenez | /s/ Barry Turcotte | ||
| John Jimenez, CFO | Barry Turcotte | |||
| Dated: | 11/14/2022 | Dated: | 11/16/2022 | |
7
MUTUAL AGREEMENT TO ARBITRATE CLAIMS
This Mutual Agreement to Arbitration Claims (“Arbitration Agreement”) is made by and between Kalnin Ventures, LLC, a Colorado limited liability company, with offices at 1200 17th Street, Suite 2100, Denver CO 80202 (together with its direct or indirect parent organizations, subsidiaries, divisions and associated and affiliated entities, if any, the “Company”), and Barry Turcotte (“Employee”).
1. Voluntary Agreement to Arbitrate.
a. Employee and the Company agree that, to the fullest extent permitted by law, any and all claims, controversies, or disputes between Employee and the Company (including its present or former officers, directors, agents, employees, corporate parents, subsidiaries, or other affiliated entities, successors, and assigns) relating in any manner to Employee’s hiring, employment, or termination of employment, whether voluntary or involuntary, will be submitted to final and binding arbitration as the exclusive remedy for such claims, controversies, or disputes pursuant to this Arbitration Agreement. For clarity, disputes over arbitrability of the claim or the arbitrator’s jurisdiction, including any objections to the existence, scope, or validity of this Arbitration Agreement, will be resolved by the arbitrator. Nothing in this Arbitration Agreement modifies the at-will nature of Employee’s employment. Also, this Agreement is being signed as a condition of Employee’s employment with the Company and as a separate agreement between the Company and Employee that cannot be altered by the Company's employee handbook; the Agreement may be altered only by a written agreement signed by Employee and the President of the Company.
b. The Company and Employee have mutually and voluntarily agreed to enter into the terms of this Arbitration Agreement. Unless stated otherwise in this Arbitration Agreement, the parties understand and agree to voluntarily waive their rights to bring in court any claim or dispute (including joining a class action lawsuit) covered by or in any way related to the employment relationship between the parties. The parties waive such rights knowingly, voluntarily, intelligently, and without coercion or duress. The parties agree that this Arbitration Agreement is made upon inception of employment, and that by providing the arbitration protections set out in this Arbitration Agreement, by mutually promising and agreeing to submit any disputes covered by this Arbitration Agreement to final and binding arbitration, and by Employee’s employment with the Company and receipt of compensation, pay, and other benefits, each has provided good, valuable, and sufficient consideration for the enforceability of this Arbitration Agreement.
2. Covered Claims.
a. Arbitrable Claims covered by this Arbitration Agreement include all disputes, including but not limited to statutory and common law claims and penalties, fees, costs, or other expenses including attorneys’ fees, whether under state, federal, or local law, including, but not limited to, theories arising under breach of contract, wrongful termination, negligence, defamation, infliction of emotional distress, misrepresentation, personal injury, public policy, tort, data privacy, wage and hour claims, violations of Title VII of the Civil Rights Act of 1964, as amended, the Americans with Disabilities Act (ADA), the Age Discrimination in Employment Act (ADEA), the Older Workers Benefit Protection Act, the Worker Adjustment and Retraining Notification Act, the Family and Medical Leave Act (FMLA), the Fair Labor Standards Act (FLSA), all Federal, state and local wage and hour laws, all Federal, state and local fair employment laws, and any other dispute between the parties under federal, state, local law, or any other applicable laws of the state in which the Company employs Employee, including disputes the Company may have with the Employee.
b. CLAIMS FOR WORKERS’ COMPENSATION BENEFITS, UNEMPLOYMENT INSURANCE, ANY CLAIM UNDER THE NATIONAL LABOR RELATIONS ACT, AND ANY OTHER CLAIMS WHERE MANDATORY ARBITRATION IS PROHIBITED BY A VALID NON-PREEMPTED LAW, ARE EXPLICITLY EXCLUDED FROM THIS ARBITRATION AGREEMENT.
c. Employee understands and acknowledge that this Arbitration Agreement is not intended to, and shall not, prohibit or restrict Employee from filing a charge with a government agency or entity (such as the U.S. Equal Employment Opportunity Commission, the National Labor Relations Board, or the U.S. Securities and Exchange Commission), testifying, assisting, or otherwise participating in an investigation with any such government agency or entity in connection with Employee’s employment with the Company, or reporting possible violations of federal, state, or local law or regulation as protected under applicable whistleblower provisions to any such government agency or entity; provided that, to the fullest extent permitted by law.
d. Employee understands and agrees that this Agreement shall not cover any claim that may arise and/or be asserted under the Confidentiality and Non-Solicitation Agreement, other similar restrictive covenant agreements between Employee and the Company or related to a claim for which the Company may be able to obtain injunctive or equitable relief, all of which the Company may seek relief through a court of competent jurisdiction in the State of Colorado. Nothing in this Arbitration Agreement will prevent either party from seeking a preliminary injunction (or other provisional remedy) in court to preserve the status quo before the arbitrator issues his/her award.
3. Arbitration Procedure.
a. Employee and the Company agree that Arbitrable Claims shall be decided exclusively by binding arbitration conducted by a neutral, single arbitrator and administered in accordance with the Employment Arbitration Rules and Mediation Procedures of the American Arbitration Association (“AAA”), as be amended from time to time, with the following additional provisions: the arbitrator will be selected either by mutual agreement or by alternatively striking names from a panel of AAA arbitrators experienced in employment disputes with the party demanding arbitration striking the first name; the proceedings will be transcribed by a court reporter and the parties may submit post-hearing briefs. The decision or award of the arbitrator shall be final and binding upon the parties. The arbitrator shall have the power to award any types of legal or equitable relief available in a court of competent jurisdiction, including, but not limited to, attorney’s fees and costs, to the extent such relief is available under law. Any arbitration award may be entered as a judgment or order in any court of competent jurisdiction. Employee agrees that any relief or recovery to which Employee is entitled from any Arbitrable Claims arising out of her/his employment, cessation of employment, or any Arbitrable Claim of unlawful discrimination shall be limited to that awarded by the arbitrator. Any judgment upon the award rendered by the arbitrator may be entered in any court having jurisdiction thereof. BY AGREEING TO BINDING AND MUTUAL ARBITRATION OF OUR INDIVIDUAL CLAIMS UNDER THIS AGREEMENT, BOTH EMPLOYEE AND THE COMPANY GIVE UP ALL RIGHTS TO TRIAL BY JURY.
2
b. Employee understands that the Employment Arbitration Rules and Mediation Procedures of the American Arbitration Association are available at https://www.adr.org/sites/default/files/EmploymentRules_Web.pdf. Employee further understand that Employee may contact the AAA to request a copy of these rules at 150 East 42nd Street, Floor 17, New York, NY 10017, telephone no. (212) 484-4188, fax no. (212) 286-0383.
4. Discovery. The AAA Rules regarding discovery shall apply to arbitration under this Agreement. The Arbitrator selected according to this Agreement shall decide all discovery disputes.
5. No Class Or Collective Arbitrations. ARBITRABLE CLAIMS IN ARBITRATION SHALL BE FILED AND MAINTAINED ONLY ON AN INDIVIDUAL BASIS. THIS MEANS THE EMPLOYEE MUST FILE AND MAINTAIN CLAIMS IN ARBITRATION ONLY ON BEHALF OF EMPLOYEE, AND THE COMPANY MUST FILE AND MAINTAIN CLAIMS IN ARBITRATION ONLY ON BEHALF OF THE COMPANY. EMPLOYEE MAY NOT FILE OR MAINTAIN ANY CLAIM IN ARBITRATION ON BEHALF OF OTHER EMPLOYEES, COLLECTIVELY WITH OTHER EMPLOYEES, OR AS A NAMED PLAINTIFF/CLAIMANT OR MEMBER IN ANY PURPORTED CLASS, COLLECTIVE, OR REPRESENTATIVE PROCEEDING. THE ARBITRATOR MAY NOT CONSOLIDATE MORE THAN ONE PARTY’S CLAIMS, AND MAY NOT OTHERWISE PRESIDE OVER ANY FORM OF A COLLECTIVE, CLASS, OR REPRESENTATIVE ARBITRATION PROCEEDING.
6. Arbitration Costs. The Company will pay the AAA administrative fees and the fees and expenses for the arbitrator. Each party will pay its own costs and attorneys’ fees, if any. If any party prevails on a statutory or contractual claim that affords the prevailing party attorneys’ fees, the arbitrator may award attorneys’ fees to the prevailing party to the extent permitted by law.
| 7. | Choice Of Law, Statute of Limitations, Venue, And Severability. |
a. This Arbitration Agreement will in all respects be subject to and governed by Federal Arbitration Act and the substantive law of the State of Colorado but only to the extent such law has not been preempted by the Federal Arbitration Act. The parties agree that any arbitration proceeding under this Arbitration Agreement will be subject to all applicable statutes of limitation. The parties agree that, to the extent any action is ever filed in relation to this Arbitration Agreement, the action will be filed exclusively in the location where the Employee was last employed by the Company.
3
b. If any provision of this Arbitration Agreement is adjudged to be void or otherwise unenforceable, in whole or in part, such adjudication will not affect the validity of the remainder of the Arbitration Agreement, which will remain in full force and effect. This agreement to arbitrate all claims and disputes will apply regardless of when any such dispute or claim arises and regardless of whether Employee is employed with the Company at the time the claim or dispute arises.
8. Employee’s Acknowledgment. Employee acknowledges that (i) she/he has had the opportunity to consult with independent legal counsel of his/her own choice concerning this Arbitration Agreement and has been advised to do so by the Company, (ii) she/he has read and understands this Arbitration Agreement and is fully aware of its legal effect, (iii) she/he has received good and adequate consideration in exchange for the promises made herein, and (iv) she/he has voluntarily entered into this Arbitration Agreement freely based on his/her own sound judgment.
| KALNIN VENTURES, LLC | EMPLOYEE | |||
| By: | /s/ John Jimenez | /s/ Barry Turcotte | ||
| John Jimenez, CFO | Barry Turcotte | |||
| Dated: | 11/14/2022 | Dated: | 11/16/2022 | |
4
Exhibit 23.1
CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
We hereby consent to the use in this Registration Statement on Form S-1 of BKV Corporation of our report dated August 12, 2022 relating to the financial statements of BKV Corporation, which appears in this Registration Statement. We also consent to the reference to us under the heading “Experts” in such Registration Statement.
/s/ PricewaterhouseCoopers LLP
Denver, Colorado
December 22, 2022
Exhibit 23.2
CONSENT OF INDEPENDENT AUDITORS
We hereby consent to the use in this Registration Statement on Form S-1 of BKV Corporation of our report dated September 12, 2022 relating to the statements of revenues and direct operating expenses of the Barnett Assets of XTO Energy Inc. and Barnett Gathering, LLC, which appears in this Registration Statement. We also consent to the reference to us under the heading “Experts” in such Registration Statement.
/s/ PricewaterhouseCoopers LLP
Dallas, Texas
December 22, 2022
Exhibit 23.3
|
||
| TBPELS REGISTERED ENGINEERING FIRM F-1580 | ||
| 633 17TH STREET SUITE 1700 | DENVER, COLORADO 80202 | TELEPHONE (303) 339-8110 |
CONSENT OF INDEPENDENT PETROLEUM ENGINEERS
We hereby consent to the references to our firm in this Registration Statement on Form S-1 for BKV Corporation, and to the use of information from, and the inclusion of, our reports, (i) dated October 21, 2022, with respect to the estimates of proved reserves, future production and income attributable to certain leasehold and royalty interests of Kalnin Ventures, LLC referred to as the Barnett Assets as of December 31, 2020, (ii) dated October 21, 2022, with respect to the estimates of proved reserves, future production and income attributable to certain leasehold interests of Kalnin Ventures, LLC referred to as the Chaffee Corners Assets as of December 31, 2020, (iii) dated October 21, 2022, with respect to the estimates of proved and probable reserves, future production and income attributable to certain leasehold interests of Kalnin Ventures, LLC referred to as the Chelsea Assets as of December 31, 2020, (iv) dated October 21, 2022, with respect to the estimates of proved and probable reserves, future production and income attributable to certain leasehold interests of Kalnin Ventures, LLC referred to as the BKV Assets as of December 31, 2020, (v) dated October 21, 2022, with respect to the estimates of proved, probable and possible reserves, future production and income attributable to certain leasehold and royalty interests of BKV Corporation referred to as the Barnett Assets as of December 31, 2021, (vi) dated October 21, 2022, with respect to the estimates of proved, probable and possible reserves, future production and income attributable to certain leasehold interests of BKV Corporation referred to as the Chaffee Corners Assets as of December 31, 2021, (vii) dated October 21, 2022, with respect to the estimates of proved, probable and possible reserves, future production and income attributable to certain leasehold interests of BKV Corporation referred to as the Chelsea Assets as of December 31, 2021, (viii) dated October 21, 2022, with respect to the estimates of proved, probable and possible reserves, future production and income attributable to certain leasehold interests of BKV Corporation referred to as the BKV Assets as of December 31, 2021, (ix) dated October 20, 2022, with respect to the estimates of proved, probable and possible reserves, future production and income attributable to certain leasehold and royalty interests of BKV Corporation referred to as the Barnett Assets as of September 30, 2022, (x) dated October 20, 2022, with respect to the estimates of proved, probable and possible reserves, future production and income attributable to certain leasehold interests of BKV Corporation referred to as the Chaffee Corners Assets as of September 30, 2022, (xi) dated October 20, 2022, with respect to the estimates of proved, probable and possible reserves, future production and income attributable to certain leasehold interests of BKV Corporation referred to as the Chelsea Assets as of September 30, 2022, (xii) dated October 20, 2022, with respect to the estimates of proved, probable and possible reserves, future production and income attributable to certain leasehold interests of BKV Corporation referred to as the BKV Assets as of September 30, 2022, (xiii) dated October 20, 2022, with respect to the estimates of proved and probable reserves, future production and income attributable to certain leasehold and royalty interests of BKV Corporation acquired from XTO Energy Inc. and referred to as Project Europa as of September 30, 2022, (xiv) dated October 21, 2022, with respect to the estimates of proved, probable and possible reserves, future production and income attributable to certain leasehold and royalty interests of BKV Corporation referred to as the Barnett Assets, using a NYMEX Alternate Pricing Scheme, as of September 30, 2022, (xv) dated October 21, 2022, with respect to the estimates of proved, probable and possible reserves, future production and income attributable to certain leasehold interests of BKV Corporation referred to as the Chaffee Corners Assets, using a NYMEX Alternate Pricing Scheme, as of September 30, 2022, (xvi) dated October 21, 2022, with respect to the estimates of proved, probable and possible reserves, future production and income attributable to certain leasehold interests of BKV Corporation referred to as the Chelsea Assets, using a NYMEX Alternate Pricing Scheme, as of September 30, 2022, (xvii) dated October 21, 2022, with respect to the estimates of proved, probable and possible reserves, future production and income attributable to certain leasehold interests of BKV Corporation referred to as the BKV Assets, using a NYMEX Alternate Pricing Scheme, as of September 30, 2022, and (xviii) dated October 21, 2022, with respect to the estimates of proved and probable reserves, future production and income attributable to certain leasehold and royalty interests of BKV Corporation acquired from XTO Energy Inc. and referred to as Project Europa, using a NYMEX Alternate Pricing Scheme, as of September 30, 2022, each in this Registration Statement. We further consent to the reference to our firm under the heading “Experts” in this Registration Statement and related prospectus.
| /s/ Ryder Scott Company, L.P. | |
| RYDER SCOTT COMPANY, L.P. | |
| TBPELS Firm Registration No. F-1580 |
Denver, Colorado
December 22, 2022
| 1100 LOUISIANA, SUITE 4600 | HOUSTON, TEXAS 77002-5294 | TEL (713) 651-9191 | FAX (713) 651-0849 |
| SUITE 2800, 350 7TH AVENUE, S.W. | CALGARY, ALBERTA T2P 3N9 | TEL (403) 262-2799 |
Exhibit 24.2
BKV CORPORATION
POWER OF ATTORNEY
KNOW ALL PERSONS BY THESE PRESENTS, that the undersigned constitutes and appoints Christopher P. Kalnin and Lindsay B. Larrick, and each of them, his true and lawful attorneys-in-fact and agents, each with full power of substitution and resubstitution, for him and in his name, place and stead, in any and all capacities, to sign any and all amendments, including post-effective amendments, to the registration statement on Form S-1 of BKV Corporation (File No. 333-268469), and any registration statement relating to the offering covered by such registration statement and filed pursuant to Rule 462(b) under the Securities Act of 1933, and to file the same, with exhibits thereto and other documents in connection therewith, with the Securities and Exchange Commission, granting unto said attorneys-in fact and agents, and each of them, full power and authority to do and perform each and every act and thing requisite and necessary to be done, as fully to all intents and purposes as he might or could do in person, hereby ratifying and confirming all that each of said attorney-in-fact and agents or their substitute or substitutes may lawfully do or cause to be done by virtue hereof.
IN WITNESS WHEREOF, the undersigned has caused this Power of Attorney to be executed as of the 22nd day of December, 2022.
| /s/ Barry S. Turcotte | |
| Barry S. Turcotte |