Last Friday, Denver-based BKV Corporation signed a purchase and sale agreement in partnership with Banpu Power U.S. Corporation. Accordingly, this deal consists of purchasing all of the equity interests in Temple Generation Intermediate Holdings II, LLC.
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About the acquisition of Temple I
Particularly, through its subsidiary Temple Generation I, LLC, this entity owns the Temple 1 power plant in Temple, Texas. Indeed, the transaction is valued at $430 million and is still subject to customary closing conditions.
Worth noting, BKC, and Banpu Power expect the purchase to reach closure in the fourth quarter of 2021.
In fact, Temple Generation I built and equipped this facility with modern, flexible, and efficient combined cycle turbines. Thus, the power generation facility currently features advanced emissions-control technology.
This aspect makes it one of the cleanest natural gas-fueled power plants in the U.S. Hence, Temple 1 was one of the few power plants that operated throughout Storm Uri.
Accordingly, the facility provided the desperately needed power to the ERCOT grid during the storm’s peak in February. The plant also provides enough energy to power 750,000 homes across central Texas. Lastly, it is strategically located on 250 acres adjacent to the Interstate-35 corridor.
Reception at BKV and Banpu
Indeed, Temple Generation I, LLC operated the facility since it entered service in 2014. Specifically, in 2018, the company successfully reorganized in partnership with prominent financial institutions; including, for instance, funds managed by (i) affiliates of Fortress Investment Group LLC, (ii) Kennedy Lewis Investment Management, and (iii) the Infrastructure and Power strategy of Ares Management.
In this sense, Chris Kalnin, CEO of BKV, commented in a media release; “Indeed, we’re excited about this acquisition, and the strategic steps we are taking to position BKV; specifically, as a leading integrated energy company with cleaner, greener energy.”
Also, “by extending our natural gas business into a power business, we can deliver to unprecedented grid reliability,” continued Kalnin. All of this, “while also creating industry-leading ESG standards because we can directly certify our emissions footprint at each step in the value chain; from underground molecule to burner tip.”
Worth noting, BKV is a top-20 natural gas producer in the U.S. Currently, the company has natural gas operating assets in the northeast Marcellus Shale in Pennsylvania and the Barnett Shale in North Texas.
Similarly, it is a privately held natural gas exploration and production company. Particularly, it seeks to invest in attractive upstream oil and gas opportunities in North America. Besides, it has the goal of creating long-term sustainable value in the energy industry.
