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Eric S. Jacobsen

President – Upstream at BKV
Executive

About Eric S. Jacobsen

Eric S. Jacobsen is President — Upstream at BKV, appointed February 3, 2025 after serving as Chief Operating Officer since the company’s formation in May 2020; he previously held senior operating roles at Extraction Oil & Gas, Noble Energy, and BP across US and international upstream operations. He is 54 years old and holds a BS in Environmental Engineering and an MS in Petroleum Engineering from Montana Tech University . BKV’s long-term incentives tie payouts to annualized TSR, relative TSR vs a benchmark group, and average ROCE, with PRSUs granted post-IPO featuring a 30% aTSR, 30% rTSR, and 40% ROCE weighting and cliff vesting in late 2026 or 2027; company PRSUs under the prior plan achieved thresholds for TSR (136%), ROCE (131%), and IPO readiness (200%) for the 2021–2023 period, supporting pay-for-performance linkage .

Past Roles

OrganizationRoleYearsStrategic Impact
BKVChief Operating OfficerMay 2020 – Feb 2025Led operational scaling through IPO readiness and upstream development; transitioned to Upstream-focused presidency to align with strategic growth .
Kalnin VenturesChief Operating OfficerFeb 2020 – May 2020Operated pre-BKV formation platform, bridging into BKV’s COO role .
Extraction Oil & Gas (NASDAQ: XOG)Senior Vice PresidentOct 2016 – Dec 2019Oversaw upstream operations at a Rockies-focused E&P, enhancing development execution .
Noble Energy (NASDAQ: NBL)Director of Planning & Development; Director of Exploration & Production; Well Engineering ManagerJan 2011 – Oct 2016Led large-scale DJ Basin shale development in Colorado; multi-disciplinary leadership in upstream planning and engineering .
BP, ARCO, VastarVarious roles (Operations Manager, OIM, Reservoir Engineer)Jun 1993 – Jan 2011International upstream leadership across US, Algeria, Azerbaijan, Gulf of Mexico; broad operational and reservoir expertise .

External Roles

OrganizationRoleYearsStrategic Impact
BKV-BPP Power Joint VentureBoard of Managers memberMar 2025 – PresentGovernance oversight of 50/50 gas power JV (Temple I), aligning upstream-midstream-power integration for BKV and Banpu affiliates .

Fixed Compensation

Year/AgreementBase Salary ($)Target Bonus (%)Actual Annual Bonus ($)Other Cash ($)Notes
2023 (COO agreement)425,000 95% of base 380,052 17,731 (401k + life) Discretionary performance-based; bonus paid post-year-end .
2024 (COO agreement)425,000 95% of base 533,596 27,060 (401k + life) Equity awards granted Sept 27, 2024 (see below) .
A&R Employment Agreement (effective Feb 3, 2025)525,000 Up to 95% 1,000,000 retention bonus (clawback if departure/breach before Feb 3, 2027) At-will; annual equity target ~$2,000,000 in 2025, subject to performance and committee approval .

Performance Compensation

Annual Bonuses (Actuals and Individual Multipliers)

YearCompany Bonus Paid ($)Individual MultiplierIndividual Goal Themes
2023380,052 1.08 (CEO recommendation; Board approved) Leadership, ESG/EHSR, CCUS growth, steering committee project development .
2024533,596 1.12 (CEO recommendation; Comp Committee approved) Leadership, ESG/EHSR, CCUS growth, operational initiatives .

Equity Awards and Vesting

Award TypeGrant DateQuantity (#)VestingPerformance MetricsNotes
TRSUs (2024 Plan)Sep 27, 202435,555 ~1/3 on Jan 1 of 2025, 2026, 2027; service-based N/AUnvested at 12/31/24: 23,704 units valued at $568,681 .
PRSUs (2024 Plan)Sep 27, 202453,333 target (max 106,666) 3-year performance period starting Jan 1, 2024; vest based on KPIs aTSR 30%, rTSR 30%, ROCE 40% Outstanding target PRSUs at 12/31/24 with payout value $1,268,259 .
Company PRSUs (post-IPO grants)2025Company grants: 663,596 PRSUs; cliff vest Dec 31, 2027 Cliff vest at Dec 31, 2027; performance period Jan 1, 2025–Dec 31, 2027 aTSR 30%, rTSR 30%, ROCE 40% Unrecognized comp expense $15.5M; WA amortization 1.8 years .

PRSU Valuation Parameters (Company-wide, for context)

  • Market-based components (aTSR, rTSR): risk-free 3.7%, volatility 40%, immaterial dividend yield; weighted average grant-date fair values for aTSR $15.78 (Q3) and $14.26 (9M), rTSR $29.30 (Q3) and $23.73 (9M) .
  • ROCE component treated as non-market; estimated performance varying by grant cohort; weighted average grant-date fair value ROCE $21.42 (Q3) and $19.75 (9M) .
  • Prior plan result: for 2021–2023 PRSU cohort, thresholds met for TSR (136%), ROCE (131%), and IPO readiness (200%), vesting in Feb 2024 .

Equity Treatment on Termination/Change in Control (2024 Grants)

Scenario2024 PRSUs (Jacobsen)2024 TRSUs (Jacobsen)
Death/DisabilityFull vesting at target payout Full vesting .
Termination without Cause (not CIC)If prior to final 6 months: pro-rata vesting at target; if during final 6 months: pro-rata portion remains outstanding and eligible based on actual performance Forfeit .
Termination without Cause or Resignation for Good Reason within 24 months after CIC (awards assumed)Performance deemed met at greater of target or determinable actual through CIC; such number will vest on termination Full vesting .
CIC where awards not assumedPRSUs vest based on greater of target or determinable actual through CIC TRSUs vest .

Equity Ownership & Alignment

ItemDetail
Beneficial ownership255,663 BKV shares; less than 1% of outstanding; address c/o BKV Denver .
Pledging/HedgingCompany prohibits hedging/pledging; executives have not pledged shares as of April 21, 2025 .
Outstanding equity (12/31/24)Unvested TRSUs: 23,704 ($568,681); Outstanding PRSUs (target): 53,333 ($1,268,259) .
Ownership guidelines4x base salary requirement for President — Upstream; three years to comply .
Compliance statusNot specifically disclosed for Jacobsen .

Employment Terms

  • Agreement: Amended and Restated Employment Agreement effective Feb 3, 2025; at-will employment; role President — Upstream based in Denver .
  • Compensation:
    • Base salary: $525,000; annual target bonus up to 95% of base .
    • One-time retention bonus: $1,000,000; clawback if departure/breach before Feb 3, 2027 (except Company termination without Cause) .
    • Annual equity target: ~$2,000,000 in 2025, subject to plan terms and approvals .
  • Severance economics:
    • If terminated without Cause or resigns for Good Reason (as defined), severance equals 24 months of base salary plus pro-rated target bonus for year of termination; paid 50% at six months and 50% at twelve months; any unpaid prior-year bonus paid on normal schedule; conditioned on release and covenant compliance .
    • Proxy summary: alternatively described as a fixed $2,000,000 plus pro-rated target bonus, paid on first and second anniversaries of termination, with restrictive covenant compliance and release .
  • Restrictive covenants:
    • Non-compete: 24 months post-termination across PA, CO, TX, LA, and any state where Company Group operates at termination; with broad competitive scope and 1% ownership exception .
    • Non-solicit (employees/customers), confidentiality, IP/shop rights, non-disparagement, invention assignment; post-termination information/testimony obligations up to five years .
  • Clawback: Dodd-Frank compliant clawback for executives covering prior three fiscal years upon restatement; effective at IPO (Sep 27, 2024) .
  • Ownership/compensation practices: No automatic base increases; awards granted post-earnings release; no options historically; independent consultants used; cybersecurity oversight by Audit & Risks Committee .

Investment Implications

  • Pay-for-performance alignment: Equity heavily tied to multi-year aTSR/rTSR/ROCE with significant PRSU weighting; TRSUs provide baseline retention and time-based value; change-in-control provisions provide pro-rata protections but maintain service conditions—neutral to slightly shareholder aligned vs full acceleration .
  • Retention and mobility: $1,000,000 retention bonus with clawback through Feb 2027 plus 24-month non-compete across core operating states reduces near-term attrition risk; severance of 24 months of base plus pro-rated bonus is sizable, indicating negotiated retention economics but may elevate fixed-cost risk in downturns .
  • Insider selling pressure: Scheduled TRSU vestings on Jan 1, 2026 and Jan 1, 2027 and PRSU cliff vesting on Dec 31, 2026/2027 can create supply events; however, anti-pledging/hedging policies and ownership guidelines temper misalignment risk; monitor Form 4 activity and post-vesting dispositions near these dates .
  • Execution track record: Deep operational pedigree across shale and global upstream enhances credibility for base production and CCUS initiatives cited in bonus narratives; prior PRSU plan’s achievement of TSR/ROCE/IPO readiness thresholds supports delivery against strategic KPIs, though future ROCE variance assumptions in 2025 grants suggest sensitivity to capital efficiency outcomes .
  • Governance context: Concentrated control by BNAC/Banpu, board designation rights, and JV interlocks warrant ongoing scrutiny for related-party dynamics; clawback and ownership policies mitigate some governance red flags .