EXHIBIT 99.4
Published on September 22, 2025
Exhibit 99.4
BKV Corporation Unaudited Pro Forma Condensed
Combined Statement of Operations
For the Twelve Months Ended June 30, 2025
(dollars in thousands, except per share data)
| BKV Corporation |
Bedrock Energy Partners, LLC |
Conforming and Reclassification Adjustments(1) |
Financing and Acquisition Adjustments |
Pro Forma Combined BKV Corporation |
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| Revenues and other operating income | ||||||||||||||||||||||
| Natural gas, NGL, and oil sales | $ | 705,884 | $ | — | $ | 128,262 | (a) | $ | — | $ | 834,146 | |||||||||||
| Natural gas | — | 67,695 | (67,695 | ) | (a) | — | — | |||||||||||||||
| Natural gas liquids | — | 57,763 | (57,763 | ) | (a) | — | — | |||||||||||||||
| Oil | — | 2,804 | (2,804 | ) | (a) | — | — | |||||||||||||||
| Midstream revenues | 10,564 | — | — | — | 10,564 | |||||||||||||||||
| Derivative losses, net | (62,970 | ) | — | (4,117 | ) | (a) | — | (67,087 | ) | |||||||||||||
| Marketing revenues | 11,558 | — | — | — | 11,558 | |||||||||||||||||
| Gain on sale of business | 1,112 | — | — | — | 1,112 | |||||||||||||||||
| Section 45Q tax credits | 13,929 | — | — | — | 13,929 | |||||||||||||||||
| Related party revenues | 1,728 | — | — | — | 1,728 | |||||||||||||||||
| Other | 11,928 | 385 | — | — | 12,313 | |||||||||||||||||
| Total revenues and other operating income | 693,733 | 128,647 | (4,117 | ) | — | 818,263 | ||||||||||||||||
| Operating expenses | ||||||||||||||||||||||
| Lease operating and workover | 137,582 | — | 41,470 | (a) | — | 179,052 | ||||||||||||||||
| Lease operating expense | — | 39,245 | (39,245 | ) | (a) | — | — | |||||||||||||||
| Workover expense | — | 2,225 | (2,225 | ) | (a) | — | — | |||||||||||||||
| Taxes other than income | 37,420 | — | 8,444 | (a) | — | 45,864 | ||||||||||||||||
| Production taxes | — | 6,573 | (6,573 | ) | (a) | — | — | |||||||||||||||
| Ad valorem taxes | — | 1,871 | (1,871 | ) | (a) | — | — | |||||||||||||||
| Gathering and transportation | 228,105 | — | 35,245 | (a) | — | 263,350 | ||||||||||||||||
| Gas gathering, transportation, marketing, and procurement | — | 35,245 | (35,245 | ) | (a) | — | — | |||||||||||||||
| Depreciation, depletion, amortization, and accretion | 184,068 | — | 24,655 | (a) | (1,750 | ) | (b) | 206,973 | ||||||||||||||
| Asset retirement obligation accretion expense | — | 1,225 | (1,225 | ) | (a) | — | — | |||||||||||||||
| Depreciation, depletion, and amortization | — | 23,430 | (23,430 | ) | (a) | — | — | |||||||||||||||
| General and administrative | 120,305 | 6,935 | 739 | (a) | — | 127,979 | ||||||||||||||||
| Incentive unit compensation | — | 739 | (739 | ) | (a) | — | — | |||||||||||||||
| Other | 28,815 | — | — | — | 28,815 | |||||||||||||||||
| Total operating expenses | 736,295 | 117,488 | — | (1,750 | ) | 852,033 | ||||||||||||||||
| Income (loss) from operations | (42,562 | ) | 11,159 | (4,117 | ) | 1,750 | (33,770 | ) | ||||||||||||||
| Other income (expense) | ||||||||||||||||||||||
| Gains on contingent consideration liabilities | 3,606 | — | — | — | 3,606 | |||||||||||||||||
| Earnings from equity affiliate | 32,886 | — | — | — | 32,886 | |||||||||||||||||
| Interest expense | (24,846 | ) | (17,541 | ) | — | (11,148 | ) | (c) | (53,535 | ) | ||||||||||||
| Interest expense, related party | (1,329 | ) | — | — | — | (1,329 | ) | |||||||||||||||
| BKV Corporation |
Bedrock Energy Partners, LLC |
Conforming and Reclassification Adjustments(1) |
Financing and Acquisition Adjustments |
Pro Forma Combined BKV Corporation |
||||||||||||||||||
| Interest income | 766 | — | — | — | 766 | |||||||||||||||||
| Other income | 9,434 | 1,136 | — | — | 10,570 | |||||||||||||||||
| Gain (loss) on derivative contracts, net | — | (4,117 | ) | 4,117 | (a) | — | — | |||||||||||||||
| Loss before income taxes | (22,045 | ) | (9,363 | ) | — | (9,398 | ) | (40,806 | ) | |||||||||||||
| Income tax benefit (expense) | 3,526 | (65 | ) | — | 2,227 | (d) | 5,688 | |||||||||||||||
| Net loss | $ | (18,519 | ) | $ | (9,428 | ) | $ | — | $ | (7,171 | ) | $ | (35,118 | ) | ||||||||
| Less: net income (loss) attributable to noncontrolling interest | 163 | — | — | — | 163 | |||||||||||||||||
| Net income (loss) attributable to BKV | $ | (18,682 | ) | $ | (9,428 | ) | $ | — | $ | (7,171 | ) | $ | (35,281 | ) | ||||||||
| Net income (loss) per common share attributable to BKV: | ||||||||||||||||||||||
| Basic | $ | (0.24 | ) | $ | (0.42 | ) | ||||||||||||||||
| Diluted | $ | (0.24 | ) | $ | (0.42 | ) | ||||||||||||||||
| Weighted average number of common shares outstanding: | ||||||||||||||||||||||
| Basic | 80,421 | — | — | 5,233 | (e) | 85,654 | ||||||||||||||||
| Diluted | 80,421 | — | — | 5,233 | (e) | 85,654 | ||||||||||||||||
| (1) | Management did not identify any differences in accounting policies that would have a material impact on the unaudited pro forma combined consolidated financial information. |
Adjustments to Unaudited Pro Forma Combined Consolidated Financial Statements
(a) The following reclassifications were made as a result of the Bedrock Acquisition to conform to our presentation:
| · | Reclassification of $67.7 million from natural gas, $57.8 million from natural gas liquids, and $2.8 million from oil to natural gas, NGL, and oil sales; |
| · | Reclassification of $4.1 million from loss on derivative contracts, net in other income (expense) to derivative losses, net in total other revenues and other operating income; |
| · | Reclassification of $39.2 million from lease operating expense and $2.2 million from workover expense to lease operating and workover; |
| · | Reclassification of $6.6 million from production taxes and $1.9 million from ad valorem taxes to taxes other than income; |
| · | Reclassification of $35.2 million from gas gathering, transportation, marketing, and procurement to gathering and transportation; and |
| · | Reclassification of $23.4 million from depreciation, depletion, and amortization and $1.2 million from accretion expenses to depreciation, depletion, amortization, and accretion. |
(b) Reflects the pro forma adjustments to record the depletion and accretion expenses calculated in accordance with BKV Corporation’s depletion rate.
(c) Increase of $11.1 million was comprised of (i) $41.2 million interest expense on BKV's $500 million 5-year Senior Notes with a weighted average interest rate of 8.25% (the difference between the effective rate and the stated rate is not significant as of June 30, 2025) and (ii) $2.4 million estimated fees, less (iii) $17.5 million of interest expense on Bedrock Energy Partners' debt that is not part of the Bedrock Acquisition, and (iv) $15.0 million interest expense savings from paying down $200.0 million on the RBL balance.
(d) Income tax benefit increase of $2.7 million was comprised of (i) $2.7 million tax benefit impact on the financing and acquisition adjustments using a statutory rate of 23% and (ii) elimination of Bedrock Energy Partners' income tax expense of an immaterial amount.
(e) Reflects the issuance of 5.2 million shares of BKV Corporation’s common stock to the holders of the Bedrock Interests to partially finance the Bedrock Acquisition at $21.37 per share, for total stock consideration of $111.8 million. A $1.00 increase in BKV Corporation’s common stock price would increase the stock consideration received by the holders by $5.2 million, and a $1.00 decrease in BKV Corporation’s common stock price would decrease the stock consideration received by the holders by $5.2 million.