Note 21 - Supplemental Oil and Gas Disclosures (unaudited)

The Company’s operating natural gas properties are located solely in the United States.

Net Capitalized Costs Relating to Oil and Gas Producing Activities

The following table shows the capitalized costs of natural gas properties and the related accumulated depreciation, depletion, and amortization:

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Costs Incurred in Natural Gas and Oil Exploration and Development

The table below sets forth capitalized costs incurred in natural gas property acquisition, exploration, and development activities:

The Company’s oil and gas producing activities are included within its Upstream/Midstream reportable segment. The results of operations from natural gas and oil producing activities are not materially different from the applicable amounts presented within the consolidated financial statements and related segment disclosures. Accordingly, no supplemental disclosure information for the results of operations from natural gas and oil producing activities is included herein.

Natural Gas, NGL, and Oil Reserve Quantities

Estimates of the Company’s total proved reserves are based on studies performed by the Company’s internal engineering function and services provided by Ryder Scott, the Company’s independent third-party reserve engineer. As of and for the years ended December 31, 2025, 2024, and 2023, the Company’s estimates of total proved reserves are based on reserve reports prepared by Ryder Scott. Pricing for natural gas, NGLs, and oil is computed using the 12-month average index price, calculated as the unweighted arithmetic average for the first day of the month price for each month during the respective year. The process of estimating quantities of “proved” and “proved developed” and “proved undeveloped” natural gas, NGL, and oil reserves is very complex, requiring significant subjective decisions in the evaluation of all available geological, engineering, and economic data. The Company’s reserve reports also include estimates of asset retirement obligations for all properties for which an asset retirement obligation exists. Estimates for asset retirement obligations include all costs associated with abandonment after salvage. The data used in the Company’s reserve reports may change substantially over time as a result of numerous factors including, but not limited to, additional development activity, evolving production history, and continual reassessment of the viability of production under varying economic conditions. As a result, reserve estimates are subject to periodic revision. Although every reasonable effort is made to ensure that reserve estimates reported represent the most accurate assessments possible, the subjective decisions and variances in available data make these estimates generally less precise than other estimates included within the consolidated financial statements.

The following tables illustrate the changes in the Company’s quantities of net proved reserves:

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2025 Activity

During the year ended December 31, 2025, the Company’s proved reserves increased by 2,789.1 Bcfe. The increase in proved reserves was primarily attributable to increased commodity pricing and drilling activity, which resulted in total upward revisions of 2,201.0 Bcfe. In addition, in September 2025, BKV Upstream Midstream acquired 100% of the equity interests of BKV Barnett II (formerly known as Bedrock Production, LLC), increasing reserves by 743.0 Bcfe. Extensions and discoveries and improved recoveries experienced by the Company in 2025 also resulted in net increases to proved reserves of 129.6 Bcfe and 20.6 Bcfe, respectively. The Company produced 305.0 Bcfe during the year ended December 31, 2025.

Revisions of previous estimates — Primarily consisted of upward revisions to proved developed reserves and proved undeveloped reserves of 915.8 Bcfe and 679.2 Bcfe, respectively, as a result of higher average pricing during 2025 for natural gas, NGLs, and oil. Additional upward revisions were made to proved undeveloped reserves of 599.2 Bcfe due to increases in capital spend and drilling activity during 2025. Changes to the Company’s drilling schedule added 86.0 gross (81.2 net) proved locations in NEPA and the Barnett to be developed within the next five years. The drilling schedule changes reflect the Company’s ongoing commitment to optimize the long-term plan to best develop its assets, maximize cash flow, and produce economic returns.

Extensions and discoveries — Added 129.6 Bcfe of proved undeveloped reserves across 11.0 gross (8.9 net) locations driven by the Company’s optimized capital allocation and enhanced drilling program, which reduced costs and extended lateral lengths during the year ended December 31, 2025.

Improved recoveries — Added 20.6 Bcfe of proved developed reserves achieved through the continued enhancement of recovery techniques applied to producing wells during the year ended December 31, 2025.

Purchases of minerals in place — Consisted of 494.6 Bcfe and 248.4 Bcfe of acquired proved developed reserves and proved undeveloped reserves, respectively, from the Bedrock Acquisition, which represented 1,002.0 gross (877.6 net) locations in the Barnett.

Conversions of proved undeveloped reserves to proved developed reserves — Consisted of 211.8 Bcfe related to the completion of 34.0 gross (31.0 net) wells during the year ended December 31, 2025 that were converted to proved developed wells, previously classified as proved undeveloped. Estimated future development costs relating to the development of the Company’s proved undeveloped reserves were $1.0 billion for the year ended December 31, 2025.

2024 Activity

During the year ended December 31, 2024, the Company’s proved reserves decreased by 961.9 Bcfe. The decrease in proved reserves was primarily attributable to decreased commodity pricing and changes in the Company’s planned drilling activity, which resulted in total downward revisions of 714.9 Bcfe. In addition, in June 2024, the Company sold its wholly-owned subsidiary, Chaffee, and certain of its non-operated upstream assets in Chelsea, decreasing reserves by 150.0 Bcfe. As discussed below, these decreases were partially offset by extensions and discoveries and improved recoveries experienced by the Company in 2024, which resulted in net increases to proved reserves of 139.2 Bcfe and 52.2 Bcfe, respectively. The Company produced 288.4 Bcfe during the year ended December 31, 2024.

Revisions of previous estimates — Primarily consisted of downward revisions to proved developed reserves and proved undeveloped reserves of 235.6 Bcfe and 213.7 Bcfe, respectively, as a result of lower average pricing during 2024 for natural gas, NGLs, and oil. Additional downward revisions were made to proved undeveloped reserves of 265.6 Bcfe due to lower capital spend and the resulting reduction in drilling activity during 2024. Changes to the Company’s drilling schedule moved the development of 38.0 gross (35.1 net) locations in NEPA and the Barnett beyond the SEC requirement of developing PUD reserves five years from initial booking. These 38.0 gross (35.1 net) locations remain in inventory of unproved locations to be developed outside of the next five years. The drilling schedule changes reflect the Company’s ongoing commitment to optimize the long-term plan to best develop its assets, maximize cash flow, and produce economic returns.

Extensions and discoveries — Primarily consisted of 139.2 Bcfe of proved undeveloped reserves across 16.0 gross (14.4 net) locations, driven by the Company’s optimized capital allocation and enhanced drilling program, which reduced costs and extended lateral lengths during the year ended December 31, 2024.

Improved recoveries — Consisted of 52.2 Bcfe of proved developed reserves achieved through the continued enhancement of recovery techniques applied to producing wells during the year ended December 31, 2024.

Sales of minerals in place — Consisted of 103.9 Bcfe and 46.1 Bcfe of divested proved developed reserves and proved undeveloped reserves, respectively, of Chaffee assets and certain non-operated upstream assets in Chelsea, both sold in June 2024, which represented 330.0 gross (39.6 net) locations in NEPA.

Conversions of proved undeveloped reserves to proved developed reserves — Consisted of 57.6 Bcfe related to the completion of 8.0 gross (7.9 net) wells during the year ended December 31, 2024 that were converted to proved developed wells, previously classified as proved undeveloped.

2023 Activity

During the year ended December 31, 2023, the Company’s proved reserves decreased by 2,042.1 Bcfe. The decrease in proved reserves was primarily attributable to decreased commodity pricing and changes in the Company’s drilling activity, which resulted in total downward revisions of 1,986.3 Bcfe. As discussed below, these decreases were partially offset by extensions and discoveries and improved recoveries in 2023, which resulted in net increases to proved reserves of 227.8 Bcfe and 30.2 Bcfe, respectively. The Company produced 313.8 Bcfe during the year ended December 31, 2023.

Revisions of previous estimates — Consisted of downward revisions to proved developed reserves and proved undeveloped reserves of 1,191.9 Bcfe and 273.1 Bcfe, respectively, as a result of lower average pricing during 2023 for natural gas, NGLs, and oil. Additional downward revisions were made to proved undeveloped reserves of 521.3 Bcfe due to lower capital spend and the resulting reduction in drilling activity during 2023. Changes to the Company’s drilling schedule moved the development of 112.0 gross (104.8 net) locations in NEPA and the Barnett beyond the SEC requirement of developing PUD reserves five years from initial booking. These 112.0 gross (104.8 net) locations remain in inventory of unproved locations to be developed outside of the next five years. The drilling schedule changes reflect the Company’s ongoing commitment to optimize its long-term plan to best develop its assets, maximize cash flow, and produce economic returns.

Extensions and discoveries — Primarily consisted of 226.5 Bcfe of proved undeveloped reserves, of which 197.8 Bcfe was attributable to 22.0 gross (21.2 net) locations recognized as a result of the Company’s optimized drilling program, which reduced costs and extended lateral lengths. In addition, 28.7 Bcfe was attributable to extensions related to 3.0 gross (1.1 net) locations in NEPA. The Company’s unitization and combination of acreage with Repsol resulted in the three additional locations.

Improved recoveries — Consisted of 30.2 Bcfe of proved developed reserves recognized as a result of the application of improved recovery techniques to producing wells during the year ended December 31, 2023.

Conversions of proved undeveloped reserves to proved developed reserves — Consisted of 31.9 Bcfe related to the completion of 22.0 gross (8.1 net) wells during the year ended December 31, 2023 that were converted to proved developed wells, previously classified as proved undeveloped.

Standardized Measure of Discounted Future Net Cash Flows

The following information has been developed based on natural gas, NGL, and oil reserve cash flows, including production volumes from the Company’s reserve reports. It can be used for some comparisons but should not be the only method used to evaluate the Company or its performance. Further, the information in the following table may not represent realistic assessments of future cash flows, nor should the Standardized Measure of Discounted Future Net Cash Flows Relating to Proved Natural Gas Reserves (“Standardized Measure”) be viewed as representative of the current value of the Company.

The following table details the Standardized Measure related to proved reserves as of the periods presented:

The following table summarizes the changes in the Standardized Measure:

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