| Reportable Segments |
Note 19 - Reportable Segments Effective January 30, 2026, the Company completed the acquisition of an additional 25% ownership interest in the BKV-BPP Power Joint Venture from BPPUS in a transaction between entities under common control. As a result, the Company retrospectively adjusted its consolidated financial statements in accordance with ASC 805-50 to reflect the BKV-BPP Power Joint Venture as if it had been consolidated for all periods presented. Consequently, the Company revised its reportable segments and retrospectively recast prior-period segment information to conform to the current presentation. The Company’s natural gas production, natural gas midstream, and power generation business lines, all of which are located within the United States, are organized into two reportable segments for financial reporting purposes: (i) Upstream/Midstream and (ii) Power. In addition, the Company has an “All Other” category, which includes its Corporate and Other operating segment. The Corporate and Other operating segment includes the Company’s remaining non-reportable segment operations consisting primarily of its CCUS business line and general corporate expenses not allocated to its reportable segments. The CODM evaluates the financial results of each of the reportable segments, primarily segment revenues, significant segment expenses, and other segment items, and allocates resources, manages liquidity, and assesses overall Company performance relative to budget. The CODM also monitors total assets and capital expenditures by segment. The Company’s Upstream/Midstream segment is engaged in the acquisition, operation, exploration, development, and production of natural gas, NGLs, and oil in the Barnett and NEPA, and the commercial and midstream services such as gathering and transportation, marketing services, and commodity risk management activities. The Company’s Power segment is engaged in electricity generation, wholesale energy sales and purchases, and retail marketing operations. These activities are conducted through the BKV-BPP Power Joint Venture in which the Company holds a 75% ownership interest. Subsidiaries of the BKV-BPP Power Joint Venture own the Temple Plants, which are modern combined-cycle gas and steam turbine power plants located in the ERCOT North Zone in Temple, Texas, and operate a retail marketing business throughout the deregulated portions of Texas. The Company’s Corporate and Other operating segment includes BKV Corp, shared services, and the results of the Company’s carbon capture and sequestration business, which focuses on reducing GHG emissions by capturing CO2 from Company-owned and third-party operations, as well as other energy and industrial sources. Transactions between reportable segments are primarily related to administrative services provided under intercompany service agreements and are recorded based on the costs specified in those agreements. Intercompany eliminations are included within the Corporate and Other segment for purposes of segment reporting. The following tables present the Company’s segment revenues and other operating income, significant segment operating expenses, and segment income (loss) from operations: | | | | | | | | | | | | | | | | | | Year Ended December 31, 2025 | | | | | | | | | Total | | | | | | | | | Upstream/ | | | | | Reportable | | Corporate | | | | (in thousands) | | Midstream | | Power | | Segments | | and Other | | Total | Revenues and other operating income | | | | | | | | | | | | | | | | Natural gas, NGL, and oil sales | | $ | 857,597 | | $ | — | | $ | 857,597 | | $ | — | | $ | 857,597 | Power revenues | | | — | | | 248,752 | | | 248,752 | | | — | | | 248,752 | Midstream revenues | | | 10,456 | | | — | | | 10,456 | | | — | | | 10,456 | Derivative gains (losses), net | | | 105,081 | | | 274,788 | | | 379,869 | | | — | | | 379,869 | Marketing revenues | | | — | | | — | | | — | | | 12,304 | | | 12,304 | Section 45Q tax credits | | | — | | | — | | | — | | | 11,752 | | | 11,752 | Loss on sales of assets | | | (1,798) | | | — | | | (1,798) | | | (7) | | | (1,805) | Other | | | 11,664 | | | — | | | 11,664 | | | — | | | 11,664 | Total revenues and other operating income | | $ | 983,000 | | $ | 523,540 | | $ | 1,506,540 | | $ | 24,049 | | $ | 1,530,589 | Operating expenses | | | | | | | | | | | | | | | | Lease operating and workover | | | 152,873 | | | — | | | 152,873 | | | — | | | 152,873 | Fuel commodity costs | | | — | | | 180,364 | | | 180,364 | | | — | | | 180,364 | Purchased power | | | — | | | 113,968 | | | 113,968 | | | — | | | 113,968 | Taxes other than income | | | 50,761 | | | 15,645 | | | 66,406 | | | 1 | | | 66,407 | Gathering and transportation | | | 250,849 | | | — | | | 250,849 | | | — | | | 250,849 | Depreciation, depletion, amortization, and accretion | | | 155,713 | | | 38,273 | | | 193,986 | | | 1,751 | | | 195,737 | General and administrative | | | 68,944 | | | 19,999 | | | 88,943 | | | 42,629 | | | 131,572 | Power operating and maintenance | | | — | | | 78,435 | | | 78,435 | | | — | | | 78,435 | Other operating expenses | | | 29,034 | | | 8,296 | | | 37,330 | | | 19,344 | | | 56,674 | Total operating expenses | | | 708,174 | | | 454,980 | | | 1,163,154 | | | 63,725 | | | 1,226,879 | Income (loss) from operations | | $ | 274,826 | | $ | 68,560 | | $ | 343,386 | | $ | (39,676) | | $ | 303,710 | Capital expenditures | | $ | 258,549 | | $ | 4,954 | | $ | 263,503 | | $ | 41,616 | | $ | 305,119 |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Year Ended December 31, 2024 | | | | | | | | | Total | | | | | | | | | Upstream/ | | | | | Reportable | | Corporate | | | | (in thousands) | | Midstream | | Power | | Segments | | and Other | | Total | Revenues and other operating income | | | | | | | | | | | | | | | | Natural gas, NGL, and oil sales | | $ | 557,570 | | $ | — | | $ | 557,570 | | $ | — | | $ | 557,570 | Power revenues | | | — | | | 218,268 | | | 218,268 | | | — | | | 218,268 | Midstream revenues | | | 12,560 | | | — | | | 12,560 | | | — | | | 12,560 | Derivative gains (losses), net | | | (34,152) | | | 241,612 | | | 207,460 | | | — | | | 207,460 | Marketing revenues | | | — | | | — | | | — | | | 10,668 | | | 10,668 | Section 45Q tax credits | | | — | | | — | | | — | | | 14,021 | | | 14,021 | Gain on sale of business | | | 7,080 | | | — | | | 7,080 | | | — | | | 7,080 | Gain on sales of assets | | | 3,523 | | | — | | | 3,523 | | | — | | | 3,523 | Other | | | 6,631 | | | — | | | 6,631 | | | — | | | 6,631 | Total revenues and other operating income | | $ | 553,212 | | $ | 459,880 | | $ | 1,013,092 | | $ | 24,689 | | $ | 1,037,781 | Operating expenses | | | | | | | | | | | | | | | | Lease operating and workover | | | 136,991 | | | — | | | 136,991 | | | — | | | 136,991 | Fuel commodity costs | | | — | | | 118,662 | | | 118,662 | | | — | | | 118,662 | Purchased power | | | — | | | 108,327 | | | 108,327 | | | — | | | 108,327 | Taxes other than income | | | 34,961 | | | 12,843 | | | 47,804 | | | 48 | | | 47,852 | Gathering and transportation | | | 222,391 | | | — | | | 222,391 | | | — | | | 222,391 | Depreciation, depletion, amortization, and accretion | | | 215,541 | | | 37,967 | | | 253,508 | | | 1,992 | | | 255,500 | General and administrative | | | 59,417 | | | 14,524 | | | 73,941 | | | 36,090 | | | 110,031 | Power operating and maintenance | | | — | | | 81,071 | | | 81,071 | | | — | | | 81,071 | Other operating expenses | | | 12,647 | | | 1,809 | | | 14,456 | | | 6,738 | | | 21,194 | Total operating expenses | | | 681,948 | | | 375,203 | | | 1,057,151 | | | 44,868 | | | 1,102,019 | Loss from operations | | $ | (128,736) | | $ | 84,677 | | $ | (44,059) | | $ | (20,179) | | $ | (64,238) | Capital expenditures | | $ | 88,384 | | $ | 4,445 | | $ | 92,829 | | $ | 12,532 | | $ | 105,361 |
| | | | | | | | | | | | | | | | | | Year Ended December 31, 2023 | | | | | | | | | Total | | | | | | | | | Upstream/ | | | | | Reportable | | Corporate and | | | | (in thousands) | | Midstream | | Power | | Segments | | Other | | Total | Revenues and other operating income | | | | | | | | | | | | | | | | Natural gas, NGL, and oil sales | | $ | 706,151 | | $ | — | | $ | 706,151 | | $ | — | | $ | 706,151 | Power revenues | | | — | | | 274,623 | | | 274,623 | | | — | | | 274,623 | Midstream revenues | | | 16,168 | | | — | | | 16,168 | | | — | | | 16,168 | Derivative gains (losses), net | | | 238,743 | | | 51,981 | | | 290,724 | | | — | | | 290,724 | Marketing revenues | | | — | | | — | | | — | | | 8,710 | | | 8,710 | Section 45Q tax credits | | | — | | | — | | | — | | | 701 | | | 701 | Gain on sales of assets | | | 2,162 | | | — | | | 2,162 | | | 45 | | | 2,207 | Other | | | 3,957 | | | — | | | 3,957 | | | — | | | 3,957 | Total revenues and other operating income | | $ | 967,181 | | $ | 326,604 | | $ | 1,293,785 | | $ | 9,456 | | $ | 1,303,241 | Operating expenses | | | | | | | | | | | | | | | | Lease operating and workover | | | 150,647 | | | — | | | 150,647 | | | — | | | 150,647 | Fuel commodity costs | | | — | | | 94,213 | | | 94,213 | | | — | | | 94,213 | Purchased power | | | — | | | 27,769 | | | 27,769 | | | — | | | 27,769 | Taxes other than income | | | 72,290 | | | 8,827 | | | 81,117 | | | — | | | 81,117 | Gathering and transportation | | | 248,990 | | | — | | | 248,990 | | | — | | | 248,990 | Depreciation, depletion, amortization, and accretion | | | 223,165 | | | 31,752 | | | 254,917 | | | 205 | | | 255,122 | General and administrative | | | 65,852 | | | 27,917 | | | 93,769 | | | 39,805 | | | 133,574 | Power operating and maintenance | | | — | | | 56,365 | | | 56,365 | | | — | | | 56,365 | Other operating expenses | | | 12,353 | | | 1,671 | | | 14,024 | | | 272 | | | 14,296 | Total operating expenses | | | 773,297 | | | 248,514 | | | 1,021,811 | | | 40,282 | | | 1,062,093 | Income from operations | | $ | 193,884 | | $ | 78,090 | | $ | 271,974 | | $ | (30,826) | | $ | 241,148 | Capital expenditures | | $ | 137,085 | | $ | 13,797 | | $ | 150,882 | | | 50,631 | | $ | 201,513 |
The following table reconciles total segment income (loss) from operations to consolidated income before income taxes | | | | | | | | | | | | Year Ended December 31, | (in thousands) | | 2025 | | 2024 | | 2023 | Total segment operating income (loss) | | $ | 343,386 | | $ | (44,059) | | $ | 271,974 | Unallocated amounts: | | | | | | | | | | Corporate and Other revenues and other operating income | | | 24,049 | | | 24,689 | | | 9,456 | Corporate and Other taxes other than income | | | (1) | | | (48) | | | — | Corporate and Other depreciation, depletion, amortization, and accretion | | | (1,751) | | | (1,992) | | | (205) | Corporate and Other general and administrative | | | (42,629) | | | (36,090) | | | (39,805) | Corporate and Other other operating expenses | | | (19,344) | | | (6,738) | | | (272) | Gains on contingent consideration liabilities | | | — | | | 9,676 | | | 38,375 | Interest expense, net | | | (87,876) | | | (116,369) | | | (122,820) | Loss on extinguishment of debt | | | — | | | (13,877) | | | — | Other income | | | 9,335 | | | 8,995 | | | 5,443 | Income (loss) before income taxes | | $ | 225,169 | | $ | (175,813) | | $ | 162,146 |
The following table presents total assets by reportable segment reconciled to total consolidated assets: | | | | | | | | | December 31, | (in thousands) | | 2025 | | 2024 | Upstream/Midstream | | $ | 2,670,434 | | $ | 2,016,352 | Power | | | 939,981 | | | 983,356 | Total reportable segments | | | 3,610,415 | | | 2,999,708 | Corporate and Other | | | 328,842 | | | 99,069 | Total consolidated assets | | $ | 3,939,257 | | $ | 3,098,777 |
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