BKV Corp (NYSE: BKV)

Sector: Energy Industry: Oil & Gas E&P CIK: 0001838406
Market Cap 2.83 Bn
P/B 1.58
P/E 62.42
P/S 3.54
ROIC (Qtr) 2.37
Div Yield % 0.00
Rev 1y % (Qtr) 60.53
Total Debt (Qtr) 486.56 Mn
Debt/Equity (Qtr) 0.27
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About

Investment thesis

Bull case

  • Operating cash flow of 118.64M provides exceptional 115.63x coverage of minority interest expenses 1.03M, showing strong core operations.
  • Strong tangible asset base of 2.87B provides 5.91x coverage of total debt 486.56M, indicating robust asset backing and low credit risk.
  • Tangible assets of 2.87B provide robust 139.38x coverage of other current liabilities 20.62M, indicating strong asset backing.
  • Cash position of 83.11M provides exceptional 81.01x coverage of minority interest expenses 1.03M, indicating strong liquidity.
  • Retained earnings of 218.99M provide strong 10.62x coverage of other current liabilities 20.62M, indicating earnings quality.

Bear case

  • Cash reserves of 83.11M provide limited coverage of acquisition spending of 132.35M, which is 0.63x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • High receivables of 98.57M relative to inventory of 6.42M (15.35 ratio) suggests aggressive credit terms or collection difficulties, potentially masking revenue quality issues.
  • Free cash flow of 17.55M provides weak coverage of capital expenditures of 101.09M, with a 0.17 ratio suggesting additional external financing needs for growth initiatives.
  • Operating earnings of 72.59M show weak coverage of depreciation charges of 217.84M, with a 0.33 ratio indicating high capital intensity and potential reinvestment needs.
  • High financing cash flow of (304.19M) relative to working capital of (34.58M), which is 8.80x suggests concerning dependence on external funding for operational needs.

Peer comparison

Companies in the Oil & Gas E&P
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 COP Conocophillips 136.62 Bn 17.10 2.22 23.44 Bn
2 CNQ Canadian Natural Resources Ltd 85.21 Bn 17.67 3.04 12.51 Bn
3 EOG Eog Resources Inc 66.33 Bn -60.48 8.67 8.13 Bn
4 FANG Diamondback Energy, Inc. 49.64 Bn -2,818.83 314.47 16.24 Bn
5 OXY Occidental Petroleum Corp /De/ 37.18 Bn 15.36 2.56 22.88 Bn
6 WDS Woodside Energy Group Ltd 34.64 Bn 11.73 2.51 -
7 TPL Texas Pacific Land Corp 29.74 Bn 126.16 78.66 0.02 Bn
8 DVN Devon Energy Corp/De 18.80 Bn 3.24 1.91 8.55 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 1.04 1.02
EV to Cash from Ops. EV/CFO 25.34 18.21
EV to Debt EV to Debt 6.18 54.57
EV to EBIT EV/EBIT 41.41 29.98
EV to EBITDA EV/EBITDA 10.79 19.64
EV to Free Cash Flow [EV/FCF] EV/FCF 171.29 39.33
EV to Market Cap EV to Market Cap 1.06 1.57
EV to Revenue EV/Rev 3.76 11.47
Price to Book Value [P/B] P/B 1.58 2.97
Price to Earnings [P/E] P/E 62.42 -25.98
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 26.80
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 31.86
Dividend per Basic Share Div per Share (Qtr) 0.00 0.78
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 1.05
Interest Coverage Int. cover (Qtr) 3.28 -4.97
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 47.48 -533.65
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 165.39 52.06
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 -5.45
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 1,126.82 6.14
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 51.14 105.89
EBIT Growth (1y) % EBIT 1y % (Qtr) 852.74 75.94
EBT Growth (1y) % EBT 1y % (Qtr) 169.37 17.44
EPS Growth (1y) % EPS 1y % (Qtr) 167.61 3.07
FCF Growth (1y) % FCF 1y % (Qtr) 125.27 -43.36
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 7.94 149.32
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.28 0.33
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.07
Cash Ratio Cash Ratio (Qtr) 0.35 1.32
Current Ratio Curr Ratio (Qtr) 0.85 2.37
Debt to Equity Ratio Debt/Equity (Qtr) 0.27 0.34
Interest Cover Ratio Int Coverage (Qtr) 3.28 -4.97
Times Interest Earned Times Interest Earned (Qtr) 3.28 -4.97
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 36.40 16.19
EBIT Margin % EBIT Margin % (Qtr) 9.09 -16.83
EBT Margin % EBT Margin % (Qtr) 6.32 -24.06
Gross Margin % Gross Margin % (Qtr) 52.90 58.92
Net Profit Margin % Net Margin % (Qtr) 5.70 -28.75