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Commitments and Contingencies | 6 Months Ended
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Jun. 30, 2026
Commitments and Contingencies Disclosure [Abstract] |
Commitments and Contingencies | Note 11 - Commitments and Contingencies The Company may be subject to various claims, title matters, and legal proceedings arising in the ordinary course of business, including environmental contamination claims, personal injury and property damage claims, claims related to joint interest billings and other matters under natural gas operating agreements, and other contractual disputes. The Company maintains general liability and other insurance to cover some of these potential liabilities. The Company accrues for a loss contingency when it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. If a loss is probable or reasonably possible, but the loss or range of loss cannot be reasonably estimated, the Company discloses the nature of the contingency, but does not accrue for the loss until a reasonable estimate or range becomes available. As of June 30, 2026, the Company has recorded an aggregate accrual for loss contingencies of approximately $0.6 million, which is included in other current liabilities in the condensed consolidated balance sheets. While the outcome and impact on the Company cannot be predicted with certainty, results may change in future periods. For the periods presented in the condensed consolidated financial statements, the Company believes that its ultimate liability, with respect to any such matters, will not have a significant impact or material adverse effect on its financial position, results of operations, or cash flows. Results of operations and cash flows, however, could be significantly impacted in the reporting periods in which such matters are resolved. As a part of the consideration paid for the Devon Barnett Acquisition, additional cash consideration was paid by the Company when certain thresholds were met for average Henry Hub natural gas and WTI crude oil prices for each of the calendar years during the period beginning January 2021 through December 31, 2024. As of December 31, 2024, the final portion of the arrangement was considered to be settled, resulting in a settlement of $20.0 million, which was paid on January 8, 2025. The Company has volume commitments in the form of gathering, processing, and transportation agreements with various third parties that require delivery of 758,715,797 dekatherms of natural gas. The significant majority of the agreements terminate by 2029, with one agreement extending through 2036. As of June 30, 2026, the aggregate undiscounted future payments required under these contracts total $224.8 million. BKV-BPP Power has commitment agreements to support the operation, fuel supply, and commercialization of its power generation assets. These agreements include energy management, fuel transportation and storage, operations and maintenance, and administrative service arrangements with terms expiring through 2028. On January 14, 2026, the Company entered into a manufacturing reservation agreement related to a planned power generation project. Under the agreement, the Company is committed to pay up to an aggregate of $80.0 million in reservation fees, scheduled in phases during 2026, to secure future manufacturing capacity through 2028 for turbines with up to approximately 1,230 MW in total generation capacity. During the six months ended June 30, 2026, the Company paid $60.0 million of the reservation fees. Amounts paid are generally non-refundable and will be credited against the purchase price if a definitive supply agreement is executed. On March 25, 2026 and May 15, 2026, the Company entered into two separate equipment supply contracts related to a planned power generation project. Under the agreements, the Company is committed to pay up to an aggregate of $248.2 million in purchase payments, scheduled in phases from 2026 through 2027, to secure the manufacture of modular power generation equipment. During the six months ended June 30, 2026, the Company paid $96.8 million of the purchase payments, and on July 17, 2026, made an additional purchase payment on each contract, each in the amount of $24.8 million, for aggregate payments of $49.6 million. If the Company terminates the contracts before manufacturing of the equipment begins, the Company would be required to pay 60% of the contract price, and if the Company terminates the contracts after manufacturing of the equipment begins, the Company would be required to pay 100% of the contract price. On February 4, 2026 and June 19, 2026, the Company entered into two separate parental guarantees for certain wholly-owned subsidiaries under commercial agreements with third-party counterparties. The aggregate maximum potential future payments under these guarantees are $1.5 million, excluding certain enforcement costs under one agreement. As of June 30, 2026, no amounts had been drawn under the guarantees. In addition, the Company evaluated the guarantees under ASC 460, Guarantees, and determined that the fair value of its obligations was immaterial as of June 30, 2026. On June 22, 2026, the Company entered into a master agreement for software licensing, maintenance, and hosting services for a term of 48 months. As of June 30, 2026, the aggregate undiscounted future payments required under these contracts total $3.8 million. A summary of the Company's commitments as of June 30, 2026, is provided in the following table:
(in thousands) | 2026 |  | 2027 |  | 2028 |  | 2029 |  | 2030 |  | Thereafter |  | Total
RBL Credit Agreement | $ | — |  |  | $ | — |  |  | $ | 100,000 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 100,000 |
2030 Senior Notes (7.50%) | — |  |  | — |  |  | — |  |  | — |  |  | 500,000 |  |  | — |  |  | 500,000 |
Promissory Note | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 46,000 |  |  | 46,000 |
Temple Term Loan Facility | 10,000 |  |  | 10,000 |  |  | 361,998 |  |  | — |  |  | — |  |  | — |  |  | 381,998 |
Temple Revolving Facility | — |  |  | — |  |  | 60,000 |  |  | — |  |  | — |  |  | — |  |  | 60,000 |
Interest payable | 9,041 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 9,041 |
BKV-BPP Power commitment agreements | 2,789 |  |  | 4,891 |  |  | 401 |  |  | — |  |  | — |  |  | — |  |  | 8,081 |
Temple I Loan Agreements | 176,000 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 176,000 |
Interest payable on Temple I Loan Agreements | 2,662 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 2,662 |
Manufacturing reservation agreement | 20,000 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 20,000 |
Equipment supply contract | 81,354 |  |  | 70,012 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 151,366 |
Operating lease payments | 3,373 |  |  | 1,816 |  |  | 1,383 |  |  | 1,303 |  |  | 1,345 |  |  | 5,627 |  |  | 14,847 |
Transportation commitments | 35,433 |  |  | 62,224 |  |  | 53,909 |  |  | 34,257 |  |  | 5,913 |  |  | 33,032 |  |  | 224,768 |
Software commitments | 950 |  |  | 950 |  |  | 950 |  |  | 950 |  |  | — |  |  | — |  |  | 3,800 |
Total | $ | 341,602 |  |  | $ | 149,893 |  |  | $ | 578,641 |  |  | $ | 36,510 |  |  | $ | 507,258 |  |  | $ | 84,659 |  |  | $ | 1,698,563 |

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