Natgas producer BKV falls on $156 mln stock offering for acquisition

BKV

02/12/2025 12:44

** Natural gas producer BKV Corp's BKV.N shares down 6.7% before the bell at $26.33 after $156 mln M&A-related follow-on priced

    ** Denver, Colorado-based BKV late Mon sold 6 mln shares at $26, a 7.9% discount to last sale

    ** Co intends to use net offering proceeds to fund the purchase price for previously announced acquisition of a controlling interest in BKV-BPP Power, LLC

    ** If closing of that joint venture transaction doesn't occur, it will use proceeds for general corp purposes

** Citigroup, Barclays and Mizuho leading the offering

** BKV shares on Mon rose about 2% and notched a record high close of $28.22, extending YTD gain to about 19%

** Co, which has about 90 mln shares outstanding, went public in Sept 2024 IPO priced at $18

    ** All 7 analysts covering BKV are bullish; median PT of $32 up from $27 a month ago, per LSEG data

(Lance Tupper is a Reuters market analyst. The views expressed are his own)

((lance.tupper@tr.com 1-646-279-6380))