With the year-end just around the corner, the IPO market continues to experience low activity. But there has been an increase in the number of energy companies seeking to go public, even as oil prices keep increasing. BKV Corporation, the latest energy firm to file papers with the Securities and Exchange Commission, is preparing for a $100-million IPO. The company is yet to reveal the details, including the number of shares being offered and the offer price.
The IPO will be managed by a group of underwriters led by Credit Suisse, BofA Securities, and Barclays. The management has applied to list the stock on the New York Stock Exchange under the symbol BKV. It intends to use net proceeds from the offering mainly to repay a $75-million loan. Meanwhile, the board of directors is expected to adopt a written dividend policy, at or prior to the closing of the offering, to pay regular dividends to stockholders.
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BKV was founded in 2015 by energy veteran Christopher Kalnin, who has been serving as the chief executive officer since then. Eric Jacobsen and John Jimenez serve as the chief operating officer and chief financial officer, respectively.
BKV is an energy company focused on the production of natural gas from its owned-and-operated upstream businesses. The company said it is committed to building a vertically integrated business to reduce costs and improve the overall commercial optimization of the value chain. It is looking to achieve net zero emissions by the end of 2025, through the business segments of natural gas production, natural gas gathering, processing & transportation, power generation & carbon capture, and utilization & sequestration.
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In October 2020, BKV entered the Barnett Shale in the Fort Worth Basin of Texas, with the acquisition of more than 289,000 net acres and 3,850 producing operated wells and related upstream assets from Devon Energy Corporation. Later, the company further scaled its position in the area through additional acquisitions, to become the largest natural gas producer in the Barnett by gross operated volume.
As of September 2022, BKV’s total acreage position was around 505,000 net acres — 99% of that was held by production. Net daily production averaged 864 MMcfe/d, consisting of around 79% natural gas and about 21% NGLs. In the first nine months of the year, revenues and other operating income totaled $519.4 million, which is sharply higher than the prior-year number. On a per-share basis, net income and comprehensive income were $1.24, compared to a loss of $3.21 in the nine months that ended September 2021.
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