Natgas producer BKV falls on pricing $262 mln stock offering

Royal Bank of Canada

11/03/2026 11:51

** Natural gas producer BKV Corp's BKV.N shares down 7.7% before the bell at $26.72 after follow-on offering prices

** Denver, Colorado-based BKV announces ~9.7 mln shares for gross proceeds of ~$261.7 mln with RBC as sole underwriter

** Offering price equates to $27, a 6.7% discount to stock's last close

** BKV sells 5.55 mln shares and Bedrock Energy Partners (BEP) offloads ~4.1 mln shares

** Co to use net offering proceeds for general corp purposes, including working capital, operating expenses and capex

** With its sale, BEP fully divests its holdings in BKV, per the prospectus

** BKV has ~102.4 mln shares outstanding. Co in Sept completed its $370 mln acquisition of BEP's Barnett Shale assets

** BKV shares fell ~5% on Tues, cutting YTD gain to 6.6%. Stock hit record intraday high of $32.81 on Mar 2

** All 10 analysts are bullish on the shares, including 4 "strong buy" ratings; median PT $35.50, per LSEG data

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

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