BKV said a wholly owned subsidiary signed an equipment supply contract for about 1,200 megawatts of natural gas-fired power generation equipment for a prospective Texas project, with deliveries set to begin in September 2028.
The company also disclosed a backstop agreement with a leading investment-grade hyperscaler, which is intended to be the project’s off-taker. Under that arrangement, the hyperscaler will reimburse a portion of BKV’s costs tied to the equipment and related project work.
The backstop covers about 90% of the payments BKV owes through March 31, 2027 under the equipment supply contract. If BKV and the hyperscaler do not reach mutually agreeable offtake terms by that date, BKV can terminate the equipment supply contract and have no further payment obligations under it.
The contract includes long-lead items such as gas turbines, reheat steam turbines, reheat heat recovery steam generators, a plant distributed control system, and related auxiliary equipment and services. The market has reacted to these announcements by moving the company's shares 1.19% to a price of $22.05. If you want to know more, read the company's complete 8-K report here.
