BKV Corporation Closes Barnett Shale Acquisition of Production, Midstream Infrastructure, and Operated Carbon Capture Project

BKV Corporation has completed the acquisition of upstream, midstream, and carbon capture and sequestration assets in the Barnett Shale, the Denver-based company announced on September 15, 2026. The transaction closed the same day following the satisfaction of customary closing conditions and was funded through a combination of cash on hand and borrowings under the company's revolving credit facility. Financial terms of the deal were not disclosed.

Production and Reserves Added Through the Deal

The acquired assets bring more than 65 MMcfe per day of production to BKV's existing Barnett Shale operations, with liquids accounting for more than 50 percent of that output. The package also includes approximately 0.35 Tcfe of proved developed producing reserves, which the company characterized as carrying a low PDP decline rate. The assets span approximately 117,000 net acres located primarily in Montague County and encompass roughly 1,000 gross operated wells.

Chief Executive Officer Chris Kalnin said the assets align closely with BKV's existing operations. "These assets are a strong operational fit for BKV, and the acquisition builds on our disciplined approach to growth in the Barnett, adding low-decline production and reserves that align directly with our existing operations and infrastructure," Kalnin said. "By acquiring high-quality assets at an attractive value and further integrating upstream, midstream and carbon capture in a basin where we are already the leader, we are creating additional scale and long-term value for our shareholders."

Midstream Infrastructure Included in Transaction

The deal brings a substantial midstream footprint into BKV's portfolio. The acquired infrastructure includes a gas plant with processing capacity of 180 MMcf per day and approximately 340 miles of owned gas gathering lines.

The midstream package also includes approximately 225 miles of an owned water gathering system and two saltwater disposal wells. BKV said the addition of this operated midstream infrastructure is expected to enhance operational and capital efficiencies through greater scale and shared infrastructure across its Barnett position.

The company noted the expanded gas volumes from the transaction will serve demand centers in the Dallas-Fort Worth area and along the Gulf Coast, extending the commercial reach of BKV's Barnett production base.

Carbon Capture Project Expands BKV's CCUS Platform

Among the acquired assets is an operated carbon capture and sequestration project that has captured more than 100,000 metric tons of carbon dioxide over the trailing twelve months through the first quarter of 2026.

The CCS project draws carbon from three compressors and a gas plant and includes an operated CO2 pipeline and injection well. The addition of this operated CCS asset is central to BKV's stated closed-loop energy strategy, which seeks to integrate upstream production, midstream infrastructure, natural gas-fired power generation, and carbon capture, utilization, and storage within a single platform. The company describes this approach as designed to meet growing power demand while targeting a carbon-neutral future.

Strategic Fit Within BKV's Barnett Shale Leadership Position

BKV already holds the position of the largest natural gas producer by gross operated volume in the Barnett Shale, according to the company. The acquisition is designed to reinforce that standing by consolidating additional high-quality, low-decline assets within a basin where BKV already operates significant upstream and midstream infrastructure.

The company said the transaction advances its broader strategy of scaling an end-to-end energy value chain that spans production through carbon management. The Barnett Shale, located in the Fort Worth Basin of north Texas, has long been a foundational producing region for BKV.

The addition of approximately 117,000 net acres primarily concentrated in Montague County deepens BKV's geographic footprint within that basin and adds operated wells that the company expects to integrate with its current infrastructure.

Funding and Transaction Structure

BKV drew on its revolving credit facility and existing cash reserves to fund the acquisition. No seller was identified in the company's announcement, and no purchase price was disclosed. The transaction closed following the satisfaction of customary closing conditions, the company said, without specifying what those conditions entailed beyond noting the standard closing requirements had been met. BKV Corporation trades on the New York Stock Exchange under the ticker symbol BKV and is headquartered in Denver, Colorado.