Revenue Sources - Approximately 69.1% and 68.4% of operating revenues for the years ended December 31, 2024 and 2023, respectively, were derived from five project sites[139]. - RNG production at the Atascocita, Rumpke, McCarty, and Galveston facilities accounted for approximately 20.3%, 18.9%, 16.4%, and 11.0% of RNG revenues in 2024, respectively[139]. - Renewable Electricity production at the Bowerman facility accounted for approximately 92.2% of Renewable Electricity Generation revenues in 2024[139]. - 74% and 76% of the company's operating revenues for 2024 and 2023, respectively, were generated from the sale of Environmental Attributes[177]. - The RNG segment is the primary revenue driver, with sales of captured gas and Renewable Identification Numbers (RINs) being key components of revenue generation[410]. Financial Performance - Total operating revenues for 2024 were $175,736,000, a slight increase from $174,904,000 in 2023[398]. - Operating income decreased to $16,123,000 in 2024 from $23,640,000 in 2023, representing a decline of approximately 31.8%[398]. - Net income for 2024 was $9,734,000, down from $14,948,000 in 2023, reflecting a decrease of about 34.5%[398]. - Total current assets decreased to $57,224,000 in 2024 from $90,175,000 in 2023, a decline of approximately 36.5%[396]. - Total liabilities decreased to $91,598,000 in 2024 from $99,999,000 in 2023, a reduction of about 8.4%[396]. - Stockholders' equity increased to $257,417,000 in 2024 from $250,239,000 in 2023, an increase of approximately 2.9%[396]. - Basic income per share for 2024 was $0.07, down from $0.11 in 2023, a decrease of about 36.4%[398]. - Operating and maintenance expenses rose to $66,663,000 in 2024 from $59,762,000 in 2023, an increase of approximately 11.8%[398]. - The company reported an impairment loss of $1,586,000 in 2024, compared to $902,000 in 2023, indicating a significant increase in impairment[398]. - Net cash provided by operating activities increased to $43,795,000 in 2024 from $41,053,000 in 2023, reflecting a growth of 6.7%[404]. - Capital expenditures for 2024 were $62,323,000, slightly down from $63,091,000 in 2023[404]. - Cash paid for interest decreased to $4,300,000 in 2024 from $5,003,000 in 2023, a reduction of 14.0%[406]. Competition and Market Risks - The company faces intense competition in the renewable energy and waste-to-energy markets from various other companies[144]. - The company faces significant competition from larger competitors with more resources, which may hinder its ability to maintain or expand its business[145]. - Strategic partners may choose to manage biogas recovery independently, increasing competition and potentially limiting project viability[146]. - Long-term contracts for power sales are essential for success, but intense competition has led to downward pressure on pricing for Power Purchase Agreements (PPAs)[151]. - The company relies on technological innovation to maintain a competitive edge, but lacks exclusive rights to key technologies, exposing it to risks from competitors[147]. Regulatory and Environmental Challenges - Regulatory changes and market conditions could adversely affect the demand for renewable energy and the financial performance of projects[154]. - The company may face delays in obtaining necessary regulatory permits, which could impact project timelines and revenue generation[178]. - The company is required to register RNG projects with the EPA to generate Environmental Attributes, which involves a lengthy qualification process[197]. - Negative attitudes towards renewable energy from government and activists may hinder business operations and financial results[187]. - The EPA's recent regulations, including the 2024 Power Plant GHG Rule, could impact the company's ability to operate and construct renewable energy projects[189]. - Legal challenges and opposition from local populations may impede the company's ability to obtain necessary permits for renewable energy plants[192]. - Changes in regulations and policies could present barriers to the generation and use of renewable energy, potentially reducing demand for related credits[196]. Operational Risks - Severe weather events impacted production levels, resulting in fewer MMBTu and MWh produced in Q3 2023 compared to Q3 2022 due to dry weather and higher temperatures[137]. - The company is exposed to risks from production interruptions due to geographic concentration, with several projects located within 20 miles of each other near Houston, Texas[140]. - The company may experience delays and cost overruns in converting existing facilities to RNG production, impacting financial results[157]. - Extreme weather patterns and climate change could lead to operational disruptions and increased costs for the company[198]. - Cybersecurity threats pose risks to the company's IT infrastructure, potentially leading to operational disruptions and financial losses[204]. - Previous cyberattacks have not materially affected the company, but future incidents could have significant adverse effects on business and financial results[205]. Strategic Growth and Acquisitions - Future acquisitions and strategic relationships are crucial for growth, but the company may face challenges in identifying suitable candidates and securing financing[168]. - The company plans to expand its business through RNG recovery projects at landfills and livestock farms, but may struggle to identify suitable locations[164]. - The dairy farm project produces significantly less RNG than landfill facilities, making it more dependent on LCFS credits for commercial viability[165]. - The development cycle for new projects typically lasts 18 to 36 months, requiring significant resource commitments with no guaranteed success[163]. Financial Management and Capital Structure - The company is classified as an "emerging growth company," allowing it to take advantage of reduced reporting requirements[125]. - The company is required to maintain a fixed charge coverage ratio of at least 1.20 to 1.00 and a total leverage ratio of not more than 3.00 to 1.00 under the Amended Credit Agreement[216]. - The company expects to issue additional capital stock in the future, which may result in significant dilution of stockholders' ownership interests[230]. - The company may not be able to pay regular dividends on its common stock, as future payments will depend on various factors including earnings and financial condition[235]. - The company is exposed to credit risk due to reliance on a limited number of significant customers who do not post collateral[176]. - The company is exposed to credit risk due to concentration of RNG receivables with a limited number of significant customers, increasing the potential impact of customer insolvency on operations[383]. Accounting and Reporting - The company has adopted new accounting guidance in 2024 related to segment information disclosure, which was retrospectively applied to 2023 and 2022[390]. - The Company recognizes revenue from product sales when control is transferred, in accordance with ASC 606, with disclosures presented in Note 4[442]. - The Company accounts for equity-based compensation under ASC 718, recognizing costs over the requisite service period based on fair value[454]. - The Company evaluates long-lived assets for impairment whenever events indicate that the carrying amount may not be recoverable, as per ASC 360[438]. - The Company has recorded estimates for asset retirement obligations related to decommissioning and removal requirements for specific gas processing and distribution assets[441]. - The Company adopted ASU No. 2023-07 for segment reporting, effective for the Annual Report for the year ended December 31, 2024, enhancing disclosures about significant segment expenses[457]. - The Company assesses leases under ASU 2016-02, recognizing a right-of-use asset and lease liability for operating and finance leases[437]. - The Company recognizes accrued interest and penalties related to unrecognized tax benefits in income tax expense, following ASC 740[444].

Investor Presentation FULL YEAR 2024 RESULTS MARCH 13, 2025 Cautionary Statement Regarding Forward-Looking and non-GAAP Financial Information This presentation contains "forward-looking statements" within the meaning of U.S. federal securities laws. Such statements include those relating to estimated and projected financial condition, results of operations, costs and expenditures and objectives for future operations, growth, initiatives and strategies. They also include those related to the Montauk Ag proje ...

Core Viewpoint - Montauk Renewables, Inc. reported flat total revenues for 2024 compared to 2023, with significant challenges in RIN sales impacting profitability despite an increase in RNG production volumes [1][3][4]. Financial Performance - Total revenues for 2024 were $175.7 million, unchanged from $174.9 million in 2023 [3][4]. - Net income decreased by 34.9% to $9.7 million in 2024 from $14.9 million in 2023 [4][19]. - Average realized RIN price increased by 21.0% to $3.28 in 2024 from $2.71 in 2023 [3][4]. - Operating income fell by 31.3% to $16.1 million in 2024 compared to $23.6 million in 2023 [3][19]. - Non-GAAP Adjusted EBITDA decreased by 8.3% to $42.6 million in 2024 from $46.5 million in 2023 [4][25]. Operational Highlights - RNG production increased by 1.6% to approximately 5.6 million MMBtu in 2024 compared to 5.5 million MMBtu in 2023 [4][5]. - RINs sold decreased by 18.5% to 36.6 million in 2024, down from 45.1 million in 2023 [4][5]. - The company had 6.8 million unsold RINs at the end of 2024, an increase of 6.7 million from the previous year [4][5]. Development Projects - Montauk Ag Renewables development in North Carolina received approval for its New Renewable Energy Facility [2]. - The company has long-term agreements with farms to access waste from at least 200,000 hog spaces to support processing needs [2]. - A project to convert the existing Tulsa Renewable Electric Generation facility to an RNG facility is anticipated to require a capital investment of $25.0 million to $35.0 million, with a targeted commissioning date in 2027 [2]. Future Outlook - RNG revenues for 2025 are expected to range between $150 million and $170 million, with production volumes anticipated between 5.8 million and 6.0 million MMBtu [10]. - Renewable Electricity revenues are projected to be between $17.0 million and $18.0 million, with production volumes expected between 178,000 and 186,000 MWh [10].

Core Points - Montauk Renewables, Inc. will host a conference call and webcast on March 13, 2025, at 8:30 a.m. ET to discuss its financial results for the full year ended December 31, 2024 [1] - A press release reporting the financial results will be issued after the close of regular stock market trading hours on the day prior to the conference call [1] - The conference call will include a live Q&A session and will be available for replay after 11:30 a.m. ET on the same day through March 13, 2026 [3] Company Overview - Montauk Renewables, Inc. specializes in the management, recovery, and conversion of biogas into renewable natural gas (RNG) [4] - The company captures methane to prevent its release into the atmosphere and converts it into RNG or electrical power for the grid [4] - Headquartered in Pittsburgh, Pennsylvania, Montauk has over 30 years of experience in developing and managing landfill methane-fueled renewable energy projects [4] - The company operates 13 projects and has ongoing developments in multiple states including California, Idaho, Ohio, Oklahoma, Pennsylvania, North Carolina, South Carolina, and Texas [4] - Montauk sells RNG and Renewable Electricity, benefiting from Environmental Attribute premiums under federal and state policies [4]

Group 1 - Montauk Renewables is one of the largest producers of Renewable Natural Gas (RNG) in the US, with an expected annual output between 5.5 and 5.7 million MMBtu for FY24 [1] Group 2 - The focus of the articles will be on small companies with high growth and innovation capabilities, particularly in renewable energy and cutting-edge industrial innovation [1]

Core Insights - Montauk Renewables (MNTK) reported quarterly earnings of $0.12 per share, exceeding the Zacks Consensus Estimate of $0.08 per share, and showing an increase from $0.09 per share a year ago, resulting in a 50% earnings surprise [1] - The company generated revenues of $65.92 million for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 7.58% and up from $55.69 million year-over-year [2] - Montauk Renewables shares have declined approximately 40.6% year-to-date, contrasting with the S&P 500's gain of 25.8% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.12 on revenues of $66.2 million, and for the current fiscal year, it is $0.19 on revenues of $209.59 million [7] - The estimate revisions trend for Montauk Renewables is mixed, leading to a Zacks Rank 3 (Hold), indicating expected performance in line with the market [6] Industry Context - The Alternative Energy - Other industry, to which Montauk Renewables belongs, is currently ranked in the bottom 41% of over 250 Zacks industries, suggesting potential challenges ahead [8] - Another company in the same industry, Fluence Energy, Inc. (FLNC), is expected to report quarterly earnings of $0.23 per share, reflecting a significant year-over-year increase of 1050% [9]

Financial Data and Key Metrics Changes - Total revenues in Q3 2024 were $65.9 million, an increase of $10.2 million or 18.4% compared to $55.7 million in Q3 2023, primarily due to an increase in the number of RINs self-marketed and a 9.5% increase in realized RIN pricing [21] - General and administrative expenses were $10 million, an increase of $2.2 million or 27.9% compared to $7.8 million in Q3 2023, driven by increased employee-related costs [22] - Operating income for Q3 2024 was $22.7 million, an increase of $5.9 million or 35.3% compared to $16.8 million in Q3 2023 [37] - Adjusted EBITDA for Q3 2024 was $29.4 million, an increase of $7 million or 31.3% compared to $22.4 million in Q3 2023 [42] Business Line Data and Key Metrics Changes - Renewable natural gas (RNG) segment revenues in Q3 2024 were $61.8 million, an increase of $10.8 million or 21.2% compared to $50.9 million in Q3 2023 [26] - RNG production was approximately 1.4 million MMBtu, flat compared to Q3 2023, with production variances across facilities due to weather and operational factors [23] - Renewable electricity revenues decreased to $4.2 million, a decrease of $0.6 million or 12.3% compared to $4.8 million in Q3 2023, primarily due to the cessation of operations at a facility [34] Market Data and Key Metrics Changes - Average pricing realized on RIN sales during Q3 2024 was $3.34, an increase from $3.05 in Q3 2023, while the average D3 rent index price was $3.36, up from $3.01 [27] - The company self-marketed 15.8 million RINs, a 2 million increase or 14.5% compared to Q3 2023 [27] Company Strategy and Development Direction - The company is constructing its second Apex RNG facility, expected to be commissioned in 2025, driven by increased landfill waste intake [7] - The Blue Granite RNG project has faced delays due to utility remediation efforts from Hurricane Helene, shifting commissioning expectations to 2027 [8] - The company is also engaged in a swine waste-to-energy project in North Carolina, with regulatory approvals progressing [12] Management's Comments on Operating Environment and Future Outlook - Management noted that landfill-driven delays in wellfield projects are expected to impact RNG production volumes, projecting full-year production between 5.5 million and 5.7 million MMBtus [44] - The company does not provide guidance on market prices for environmental attributes but acknowledges recent trends may affect future revenue strategies [45] Other Important Information - The company recorded impairments of $0.5 million in Q3 2024, primarily related to obsolete RNG equipment [36] - As of September 30, 2024, the company had cash and cash equivalents of approximately $55 million and accounts receivable of approximately $19.2 million [41] Q&A Session Summary - No specific questions or answers were documented in the provided content, indicating a focus on closing comments and future engagement [45]

Investor Presentation THIRD QUARTER 2024 RESULTS NOVEMBER 12, 2024 Cautionary Statement Regarding Forward-Looking and non-GAAP Financial Information This presentation contains "forward-looking statements" within the meaning of U.S. federal securities laws. Such statements include, among others, those we make relating to our estimated and projected financial condition, results of operations, costs and expenditures and objectives for future operations, growth, initiatives and strategies. They also include tho ...

Operations and Projects - Montauk Renewables operates 12 RNG and two Renewable Electricity projects across eight states, making it one of the largest U.S. producers of RNG[83]. - The Second Apex RNG Facility is expected to contribute 2,100 MMBtu/day of production capacity, with an estimated capital expenditure of $30,000-$40,000, anticipated to commence operations in Q2 2025[88][89]. - The Bowerman RNG Project in California is projected to have a capacity of 3,600 MMBtu/day, with capital investment expected between $85,000 and $95,000, and commissioning anticipated in 2027[91]. - A contract for the delivery of 140 thousand tons per year of biogenic CO2 was signed, with delivery expected to begin in 2027 and capital investment estimated between $65,000 and $75,000[92][93]. - The first phase of the North Carolina development project is expected to require a capital investment of $140,000-$160,000, with sufficient capacity to satisfy the Duke REC agreement upon completion[95]. - The Turkey, NC facility is expected to begin generating revenues in 2025, with a rolling commissioning schedule for processing lines through the second half of 2025[98]. - A collaboration with Emvolon aims to transform methane emissions into green methanol, with a pilot project expected to produce up to 15 thousand gallons annually, potentially scaling to 2,400 gallons[101]. - The company is expanding into livestock farm projects, which are projected to provide a lucrative opportunity due to higher LCFS credit values compared to landfill projects[104]. - The company is exploring various strategic growth opportunities, including up to three LFG RNG and wastewater treatment RNG projects[170]. Financial Performance - Total revenues for Q3 2024 were $65,917, an increase of $10,229 (18.4%) compared to $55,688 in Q3 2023, primarily driven by an increase in self-marketed RINs[124]. - Renewable Natural Gas (RNG) total revenues reached $61,750 in Q3 2024, up by $10,815 (21.2%) from $50,935 in Q3 2023[122]. - Total operating revenues for the nine months ended September 30, 2024, were $148,042 million, an increase of $19,945 million (15.6%) compared to $128,097 million in the same period of 2023[140]. - Renewable Natural Gas segment revenues increased to $134,575 million, up $20,247 million (17.7%) from $114,328 million in the first nine months of 2023[143]. - Net income for Q3 2024 was $17,048, an increase of $4,114 (31.8%) compared to $12,934 in Q3 2023[123]. - Operating income for the first nine months of 2024 was $25,944 million, an increase of $9,773 million (60.4%) compared to $16,171 million in the same period of 2023[157]. - The company generated $43,071 in cash from operating activities for the first nine months of 2024, compared to $19,587 in the same period of 2023, marking a 119.9% increase[171]. Production and Sales Metrics - In Q1 2023, 11,215 RINs were available for sale, with 2,949 sold, resulting in a 26.3% sales rate; by Q4 2023, the sales rate increased to 99.0% with 10,796 sold out of 10,904 available[87]. - RNG production volumes for Q3 2024 were 1,392 MMBtu, a slight increase of 12 MMBtu (0.9%) compared to 1,380 MMBtu in Q3 2023[125]. - Current RIN generation for Q3 2024 was 12,374, a decrease of 524 (4.1%) from 12,898 in Q3 2023[122]. - Total RINs available for sale increased by 1,382 (9.5%) to 15,896 in Q3 2024 compared to 14,514 in Q3 2023[122]. Expenses and Income - Total operating expenses for Q3 2024 were $43,209, an increase of $4,302 (11.1%) compared to $38,907 in Q3 2023[123]. - General and administrative expenses rose to $10,037 in Q3 2024, up by $2,189 (27.9%) from $7,848 in Q3 2023[123]. - Operating and maintenance expenses for Renewable Electricity facilities in Q3 2024 were $2,703, an increase of $483 (21.8%) compared to $2,220 in Q3 2023[131]. - Impairment losses in Q3 2024 were $533, an increase of $482 (945.1%) compared to $51 in Q3 2023[133]. Market and Regulatory Environment - The demand for Renewable Natural Gas (RNG) is driven by regulatory initiatives, efficiency in operations, and increasing use of compressed natural gas (CNG) vehicles[102]. - The EPA set final volumes for cellulosic biofuel at 838 million D3 RINs for 2023, 1,090 million for 2024, and 1,376 million for 2025, indicating a growing market for RNG[106]. - The pricing of Environmental Attributes, including RINs, is subject to volatility, impacting overall revenue generation[116]. Capital Expenditures and Debt - Capital expenditures for the first nine months of 2024 totaled $53,334, with significant investments in Montauk Ag Renewables and the Bowerman RNG project[172]. - The company expects 2024 non-development capital expenditures to range between $14,000 and $16,000, while development capital expenditures are estimated between $55,000 and $65,000[169]. - As of September 30, 2024, total debt before debt issuance costs was $58,000, down from $64,000 at December 31, 2023[162]. - The term loan under the Amended Credit Agreement has an interest rate of 6.12% as of September 30, 2024, with quarterly installments of $2,000 through 2024[164]. - The company is in compliance with all applicable financial covenants under the Amended Credit Agreement as of September 30, 2024[167]. Impairment and Asset Evaluation - The company recorded impairment of $1,232 million and $777 million for the nine months ended September 30, 2024, and 2023, respectively[190]. - The recoverability of finite-lived and indefinite-lived intangible assets is assessed based on future cash flows associated with gas rights agreements, which are expected to exceed carrying amounts[189]. - The fair value of impaired assets is determined by the present value of expected future cash flows, which may vary significantly from actual results due to market conditions[188]. - The company evaluates its deferred tax assets at each reporting period, considering both positive and negative evidence for future realization[186]. - Intangible assets with finite useful lives are amortized on a straight-line basis and evaluated for impairment when circumstances indicate potential non-recoverability[187]. Accounting and Compliance - The company is classified as an emerging growth company, allowing it to delay the adoption of new accounting standards[191]. - There have been no material changes in market risk disclosures since the 2023 Annual Report[192].

Financial Performance - Revenues for Q3 2024 were $65.9 million, an increase of 18.4% compared to $55.7 million in Q3 2023[2] - Net income for Q3 2024 was $17.0 million, up 31.8% from $12.9 million in Q3 2023[2] - Total operating revenues for Q3 2024 reached $65,917, a 18.8% increase from $55,688 in Q3 2023[17] - Operating income for Q3 2024 was $22,708, up 35.4% from $16,781 in Q3 2023[17] - Net income for the nine months ended September 30, 2024, was $18,186, compared to $10,149 for the same period in 2023, reflecting an increase of 79.5%[18] - Adjusted EBITDA for the nine months ended September 30, 2024, was $45,863, an increase from $33,203 in 2023, representing a growth of 38.4%[21] Production and Sales - RINs sold reached 15.8 million, a 14.5% increase compared to Q3 2023[1] - RNG production was 1.4 million MMBtu, flat compared to Q3 2023, with an estimated loss of 50 thousand MMBtu due to Hurricane Beryl[3] - The company has entered into commitments to transfer RINs from Q4 2024 production at an average price of approximately $3.52[1] Revenue Guidance - Full year RNG revenue guidance is projected between $175 million and $185 million[4] - Renewable Electricity revenues are expected to range between $17.0 million and $18.0 million for the full year[4] Expenses and Liabilities - General and administrative expenses increased by 27.9% to $10.0 million in Q3 2024, primarily due to accelerated vesting of restricted share awards[2] - Total liabilities decreased slightly to $98,781 from $99,999, indicating a reduction of 1.2%[14] Assets and Equity - Total current assets decreased to $79,276 as of September 30, 2024, down from $90,175 as of December 31, 2023, a decline of 12.5%[14] - Cash and cash equivalents at the end of the period were $54,973, down from $73,811 at the end of 2023, a decrease of 25.5%[14] - The company reported a total stockholders' equity of $275,337 as of September 30, 2024, compared to $250,239 at the end of 2023, an increase of 10.0%[16] - The company’s total assets increased to $374,118 as of September 30, 2024, up from $350,238 at the end of 2023, a growth of 6.8%[14] Capital Expenditures - Capital expenditures for Q3 2024 amounted to $53,334, compared to $45,406 in Q3 2023, reflecting an increase of 17.5%[18] Operational Challenges - The company is experiencing delays in landfill host installations, impacting future production increases[4]