Montauk Renewables Announces Full Year 2024 Results

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].