BKV Corp, a US natural gas producer operating in the Barnett and Marcellus Shale, raised $270 million by offering 15 million shares at $18, below the range of $19 to $21. At pricing, the company raised 10% less in proceeds than anticipated.
BKV is being carved out of Thailand-based energy company Banpu (SET: BANPU). As of June 30, 2024, it had a total acreage position of approximately 479,000 net acres, 99% of which was held by production. For the six months ended June 30, 2024, net daily production averaged 807.6 MMcfe/d, consisting of approximately 80% natural gas and approximately 20% NGLs. As of December 31, 2023, its total proved reserves of 4,094 Bcfe had an estimated 8.1% year-over-year average base decline rate over the next 10 years.
The Denver, CO-based company plans to list on the NYSE on Thursday under the symbol BKV. Citi, Barclays, Evercore ISI, Jefferies, and Mizuho Securities acted as joint bookrunners on the deal.
