BKV Secures 1,200 MW Gas Turbine Supply Deal Backed by Hyperscaler
BKV is trading near its 52-week low of $20.08 (9.9% above the low).
Summary
BKV signed an $800.0 million equipment supply contract on October 2, 2026, for approximately 1,200 MW of natural gas-fired power generation equipment, including two turbines and related equipment, with deliveries between September 2028 and May 2029. The contract includes gas turbines, reheat steam turbines, reheat heat recovery steam generators, and a plant distributed control system, with $80.0 million in reservation fees credited and about $200.0 million due by March 31, 2027, and the remainder payable in installments from October 2026 through December 2028. A backstop agreement with an investment-grade hyperscaler covers about 90% of payments owed through March 31, 2027, and the hyperscaler is the intended off-taker for the Texas project. If no offtake agreement is reached by March 31, 2027, BKV can terminate the supply contract without further payment obligations. This advances BKV's closed-loop strategy spanning gas production, power generation, and carbon capture, and follows the recent $575M convertible notes offering that strengthened its balance sheet for growth projects.
Updated with an SEC 8-K filing · What changed
Updates
· SEC 8-K — On October 2, 2026, a BKV subsidiary entered an $800.0 million equipment supply contract for two turbines and related equipment, with $80.0 million in reservation fees credited and about $200.0 million due by March 31, 2027.
- Contract Terms — On October 2, 2026, a wholly owned subsidiary of BKV Corporation entered into an equipment supply contract with a Tier 1 supplier for two turbines, balance of plant equipment, auxiliary equipment, and related services. The remainder of the contract price is payable in installments from October 2026 through December 2028.
- Delivery — Equipment delivery will occur between September 2028 and May 2029.
- Backstop Agreement — The backstop agreement involves reimbursement of BKV's costs for equipment and related project work, covering approximately 90% of payments owed through March 31, 2027.
All 9 details
- The equipment supplier is a Tier 1 supplier.
- The equipment includes gas turbines, reheat steam turbines, reheat heat recovery steam generators, and a plant distributed control system.
- The remainder of the contract price is payable in installments from October 2026 through December 2028.
- Equipment delivery will occur between September 2028 and May 2029.
- The equipment supply contract was entered into on October 2, 2026.
- A wholly owned subsidiary of BKV Corporation entered into the contract.
- The equipment purchased includes two turbines.
- The equipment supply contract includes two turbines, balance of plant equipment, auxiliary equipment, and related services.
- The backstop agreement involves reimbursement of BKV's costs for equipment and related project work, covering approximately 90% of payments owed through March 31, 2027.
At the time of this announcement, BKV was trading at $22.06 on NYSE in the Energy & Transportation sector, with a market capitalization of approximately $2.4B. The 52-week trading range was $20.08 to $32.81. This news item was assessed with positive market sentiment and an importance score of 7 out of 10. Source: BusinessWire.