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Investor Presentation THIRD QUARTER 2025 RESULTS NOVEMBER 6, 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 ...

Company Operations - Montauk Renewables operates 11 RNG and two Renewable Electricity projects across seven states, making it one of the largest U.S. producers of RNG[130]. - The Bowerman RNG Facility is expected to have a production capacity of approximately 3,600 MMBtu per day, with capital expenditures estimated between $85 million and $95 million, anticipated to commence operations in 2027[135][136]. - The Tulsa RNG project is expected to provide a production capacity of approximately 1,500 MMBtu per day, with commissioning targeted for 2027[138]. - The Montauk Ag Renewables project is projected to require total investment between $180 million and $220 million, with significant revenue generation activities expected to commence in the first quarter of 2026[142]. - The joint venture GreenWave aims to enhance RNG utilization for transportation, with capital investment estimated at approximately $4.5 million[145]. Financial Performance - Total operating revenues for Q3 2025 were $45,258, a decrease of $20,659 (31.3%) compared to $65,917 in Q3 2024, primarily due to a reduction in self-marketed RINs[177]. - Renewable Natural Gas (RNG) total revenues in Q3 2025 were $39,883, down $21,867 (35.4%) from $61,750 in Q3 2024, with average realized RIN price dropping 31.4% to $2.29[179]. - Total revenues for the first nine months of 2025 were $132,988, a decrease of $15,054 (10.2%) compared to $148,042 in the first nine months of 2024[199]. - Renewable Natural Gas revenues decreased by $15,413 (11.5%) to $119,162 in the first nine months of 2025 compared to $134,575 in the same period of 2024[202]. - Operating income for Q3 2025 was $4,448, down $18,260 (80.4%) from $22,708 in Q3 2024[176]. - Operating income decreased by $23,443 (90.4%) to $2,501 in the first nine months of 2025 compared to $25,944 in the same period of 2024[217]. - Consolidated EBITDA for the first nine months of 2025 was $24,135, a decrease of $20,363 (45.8%) compared to $44,498 in the first nine months of 2024[220]. Revenue Recognition and RINs - Revenue is recognized when performance obligations are satisfied, with consideration expected to be received recorded net of allowances and customer discounts[240][241]. - The company generates D3 RINs through the production and sale of RNG, with revenue recognized upon agreement to monetize the credits[243]. - The company generates RECs through the conversion of landfill methane into Renewable Electricity, with revenue recognized similarly to RINs[244]. Regulatory Environment - Regulatory changes, including the EPA's final rules for RFS volume requirements, set cellulosic biofuel volumes at 838, 1,090, and 1,376 RINs for 2023, 2024, and 2025 respectively, influencing RNG project economics[148]. - The final 2024 cellulosic biofuel volume requirement was reduced from 1,090 million to 1,010 million D3 RINs, based on actual volumes generated in 2024[151]. - The proposed cellulosic biofuel volume requirements for 2026 and 2027 are 1,300 million and 1,360 million D3 RINs, respectively[152]. - The company has registered all facilities under the BRRR provisions and obtained Q-RIN status for RIN generation starting January 1, 2025[150]. Operating Expenses - Total operating expenses for Q3 2025 were $40,810, a decrease of $2,399 (5.6%) compared to $43,209 in Q3 2024[176]. - General and administrative expenses decreased to $6,511 in Q3 2025, down $3,526 (35.1%) from $10,037 in Q3 2024, mainly due to accelerated vesting of restricted share awards[183]. - Operating expenses for Renewable Natural Gas increased by $4,892 (7.7%) to $68,727 in the first nine months of 2025 compared to $63,835 in the same period of 2024[199]. - Operating and maintenance expenses for RNG facilities increased by $6,341 (16.4%) to $44,970 in the first nine months of 2025 compared to $38,629 in the same period of 2024[207]. - Royalties, transportation, gathering, and production fuel expenses for RNG facilities decreased by $1,449 (5.7%) to $23,757 in the first nine months of 2025 compared to $25,206 in the same period of 2024[208]. Cash Flow and Debt - Cash and cash equivalents, net of restricted cash, decreased to $6,766 as of September 30, 2025, from $54,973 as of September 30, 2024[221]. - Total debt before debt issuance costs increased to $67,000 as of September 30, 2025, compared to $56,000 at December 31, 2024[222]. - Net cash provided by operating activities was $29,997 for the first nine months of 2025, down from $43,071 in the same period of 2024[229]. - Net cash flows provided by financing activities increased to $10,421 in the first nine months of 2025, up by $18,176 compared to $7,755 in the same period of 2024[232]. Impairments and Valuation - The company recorded impairments of $48 and $533 for the three months ended September 30, 2025 and 2024, respectively, and $2,472 and $1,232 for the nine months ended September 30, 2025 and 2024, respectively[252]. - The company evaluates deferred tax assets based on future taxable income and considers changes in facts or circumstances for adjustments to the valuation allowance[247]. Market Conditions - Average commodity pricing for natural gas in Q3 2025 was $3.07 per MMBtu, which is 42.1% higher than in Q3 2024[179]. - The pricing of Environmental Attributes, which accounts for a substantial portion of revenues, is subject to volatility based on regulatory actions and commodity pricing[167]. - Quality and availability of biogas from site partners are critical, with variations potentially affecting RNG production levels[170]. - The company expects increased production at certain existing projects as landfills take in additional waste, although delays in new projects could impact production volumes[170].

Financial Performance - Total revenues for Q3 2025 were $45.3 million, a decrease of $20.6 million (31.3%) compared to $65.9 million in Q3 2024[5] - Operating income in Q3 2025 was $4.4 million, a decrease of $18.3 million (80.4%) compared to $22.7 million in Q3 2024[5] - Net income for Q3 2025 was $5.2 million, a decrease of $11.8 million (69.5%) compared to $17.0 million in Q3 2024[5] - Total operating revenues for Q3 2025 were $45,258, a decrease of 31.4% from $65,917 in Q3 2024[19] - Operating income for Q3 2025 was $4,448, down 80.4% from $22,708 in Q3 2024[19] - Net income for Q3 2025 was $5,205, compared to $17,048 in Q3 2024, reflecting a decline of 69.5%[19] - Non-GAAP Adjusted EBITDA for Q3 2025 was $12.8 million, a decrease of 56.4% year-over-year[7] - Adjusted EBITDA for the nine months ended September 30, 2025, was $26,643, compared to $45,863 for the same period in 2024, a decrease of 42%[23] Production and Sales - RNG production in Q3 2025 was approximately 1.4 million MMBtu, an increase of 3.8% compared to Q3 2024[7] - RINs sold in Q3 2025 totaled 12.4 million, a decrease of 3.3 million (21.2%) year-over-year[7] Guidance and Expectations - Full year RNG revenues are expected to range between $150 million and $170 million, unchanged from previous guidance[9] - Full year RNG production volumes are expected to range between 5.8 million and 6.0 million MMBtu, unchanged from previous guidance[9] - REG revenues are expected to range between $17 million and $18 million, unchanged from previous guidance[9] Assets and Liabilities - Total current assets decreased to $17,969 as of September 30, 2025, from $57,224 as of December 31, 2024[17] - Total liabilities increased to $122,580 as of September 30, 2025, from $91,598 as of December 31, 2024[17] - Cash and cash equivalents at the end of Q3 2025 were $6,766, down from $45,621 at the end of 2024[17] Capital Expenditures and Cash Flow - Capital expenditures for the nine months ended September 30, 2025, were $75,106, up from $53,334 in 2024[21] - The company reported a net cash provided by operating activities of $29,997 for the nine months ended September 30, 2025, down from $43,071 in 2024[21] Share Information - The weighted-average common shares outstanding for Q3 2025 were 143,126,354, compared to 142,410,940 in Q3 2024[19] Price Information - Average realized RIN price in Q3 2025 was $2.29, a decrease of approximately 31.4% from $3.34 in Q3 2024[5]

Core Insights - Montauk Renewables, Inc. reported a significant decline in financial performance for the third quarter of 2025, with total revenues of $45.3 million, down 31.3% from $65.9 million in the same quarter of 2024 [3][5] - The decrease in revenues is attributed to a reduction in the number of Renewable Identification Numbers (RINs) self-marketed from 2025 RNG production, alongside a notable drop in average realized RIN prices [2][3] - The company produced approximately 1.4 million Metric Million British Thermal Units (MMBtu) of RNG, reflecting a slight increase of 3.8% compared to the third quarter of 2024 [4][5] Financial Performance - Total revenues for Q3 2025 were $45.3 million, a decrease of $20.6 million (31.3%) compared to Q3 2024 [3] - Average realized RIN price in Q3 2025 was $2.29, down approximately 31.4% from $3.34 in Q3 2024 [3][5] - Operating income fell to $4.4 million, a decrease of 80.4% from $22.7 million in Q3 2024 [3] - Net income for Q3 2025 was $5.2 million, down 69.5% from $17.0 million in Q3 2024 [3] Operational Highlights - RNG production in Q3 2025 was approximately 1.4 million MMBtu, an increase of 53 thousand MMBtu compared to the same period in 2024 [4] - The Rumpke facility contributed to increased production due to higher feedstock gas availability [4] - The company sold 12.4 million RINs in Q3 2025, a decrease of 3.3 million RINs (21.2%) year-over-year [5] Cost and Expenses - Operating and maintenance expenses for RNG facilities increased to $13.9 million, up 10.6% from $12.6 million in Q3 2024 [3] - General and administrative expenses decreased to $6.5 million, down 35.1% from $10.0 million in Q3 2024, primarily due to accelerated vesting of restricted share awards [3] Future Outlook - The company expects RNG revenues to range between $150 million and $170 million for the full year, with production volumes anticipated between 5.8 million and 6.0 million MMBtu [11] - Renewable Electricity Generation (REG) revenues are projected to be between $17 million and $18 million, with production volumes expected between 175 thousand and 180 thousand MWh [11]

Core Points - Montauk Renewables, Inc. will host a conference call and webcast on November 6, 2025, at 8:30 a.m. Eastern time to discuss its financial results for Q3 2025 [1] - A press release detailing the financial results will be issued after the close of regular stock market trading hours on the day prior to the conference call [1] Conference Call and Webcast Details - The conference call and webcast will take place on November 6, 2025, at 8:30 a.m. ET [2] - Participants must register in advance using a provided link, which will also give access to dial-in numbers and a unique access pin [2] - A live Q&A session will be included, and a replay will be available after 11:30 a.m. ET on the same day through November 6, 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 renewable electricity for the grid [4] - Headquartered in Pittsburgh, Pennsylvania, Montauk has over 30 years of experience in landfill methane-fueled renewable energy projects, operating 13 projects across several states [4]

Core Insights - The article emphasizes a long-only investment strategy that evaluates companies from an operational and buy-and-hold perspective, focusing on long-term earnings potential rather than market-driven dynamics [1] - Quipus Capital's approach involves holding companies regardless of future price movements, with most recommendations being holds, indicating a selective buying strategy [1] - The article aims to provide valuable information for future investors and encourages skepticism in a generally bullish market [1] Company Evaluation - The focus is on understanding the operational aspects and competitive dynamics of the industries in which companies operate, rather than short-term price fluctuations [1] - The strategy suggests that only a small fraction of companies should be considered for purchase at any given time, highlighting a disciplined investment approach [1] Market Perspective - The article reflects a cautious stance towards the market, advocating for a healthy skepticism amidst prevailing bullish sentiments [1]

Group 1 - The core investment strategy focuses on long-only investment, evaluating companies from an operational and buy-and-hold perspective [1] - The approach emphasizes understanding the long-term earnings potential of companies and the competitive dynamics within their industries [1] - The majority of recommendations will be holds, indicating a cautious stance in a bullish market [1] Group 2 - The articles aim to provide valuable information for future investors while maintaining a healthy skepticism towards market trends [1] - A very small fraction of companies are considered suitable for a buy recommendation at any given time [1]

Financial Performance - Total operating revenues for the three months ended June 30, 2025 were $45127 thousand, compared to $43338 thousand in 2024[7] - Net loss for the three months ended June 30, 2025 was $5487 thousand, compared to a net loss of $712 thousand in 2024[7] - Total operating expenses for the three months ended June 30, 2025 were $47482 thousand, compared to $42470 thousand in 2024[7] - For the six months ended June 30, 2025, the company's Adjusted EBITDA was $13820 thousand, compared to $16434 thousand in 2024[34] Operational Results - Renewable Natural Gas (RNG) production volumes increased by 31 MMBtu for the quarter ended June 30, 2025[8, 10] - Renewable Electricity Generation (REG) production decreased by 3 MWh for the quarter ended June 30, 2025[8] - The average realized price per RIN decreased by $070 for the quarter ended June 30, 2025[9, 10] - RINs available for sale decreased by 3549 thousand in the second quarter of 2025 compared to the second quarter of 2024[10, 15] Business Development - The Second Apex RNG Facility was commissioned in June 2025[20] - Capital investment for Montauk Ag Renewables project increased to a range of $180000 to $220000 thousand, with commercial operations expected in 2026[25] - A contract was signed to deliver 140 tons of biogenic carbon dioxide from Texas facilities under a 15-year contract with European Energy North America, with total revenues ranging from $170000 to $201000 thousand and commissioning expected in 2027[28]

Montauk Renewables Q2 2025 Earnings Report [Second Quarter Highlights](index=1&type=section&id=Second%20Quarter%20Highlights) The company advanced strategic projects but faced profitability headwinds from regulatory delays and lower RIN prices - Key operational and strategic developments in Q2 2025 include the completion of the **second Apex RNG facility**, a **10-year power purchase agreement** for the Montauk Ag project, and the formation of the **GreenWave Energy Partners JV**[3](index=3&type=chunk) - Regulatory actions by the EPA temporarily impacted RIN timing, leaving approximately **3.0 million RINs unseparated** and unavailable for sale as of June 30, 2025[4](index=4&type=chunk)[6](index=6&type=chunk) - The EPA proposed new RFS Standards and a partial waiver for 2025 Cellulosic Biofuel Volume, citing limitations in RNG transportation usage[4](index=4&type=chunk) [Second Quarter Financial Results](index=1&type=section&id=Second%20Quarter%20Financial%20Results) Revenues grew slightly due to contract timing, but higher operating expenses led to a net loss and a decline in Adjusted EBITDA Q2 2025 Key Financial Metrics (vs. Q2 2024) | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Total Revenues | $45.1M | $43.3M | +4.1% | | Operating (Loss) Income | ($2.4M) | $0.8M | - | | Net Loss | ($5.5M) | ($0.7M) | Increased Loss | | Non-GAAP Adjusted EBITDA | $5.0M | $6.96M | -27.7% | | Average Realized RIN Price | $2.42 | $3.12 | -22.4% | - The increase in total revenues was primarily related to the timing of revenues recognized under a short-term fixed-price contract, which offset the negative impact of lower RIN prices[5](index=5&type=chunk) - Operating expenses increased due to a **$3.1 million (22.0%) rise in RNG O&M** from maintenance programs and a **$0.3 million (3.5%) increase in General & Administrative costs** from stock-based compensation[5](index=5&type=chunk) [Second Quarter Operational Results](index=2&type=section&id=Second%20Quarter%20Operational%20Results) RNG production was flat year-over-year while Renewable Electricity generation saw a slight decrease due to preventative maintenance timing Q2 2025 Production Volumes (vs. Q2 2024) | Product | Q2 2025 Production | Q2 2024 Production | Change | | :--- | :--- | :--- | :--- | | RNG | 1.4 million MMBtu | 1.4 million MMBtu | Flat | | Renewable Electricity | 42 thousand MWh | 45 thousand MWh | -3 thousand MWh | - The flatness in RNG production was a result of a **67 MMBtu increase at the Rumpke facility**, offset by the absence of production from the Southern facility which was sold in Q4 2024[7](index=7&type=chunk) [Reaffirmed 2025 Full Year Outlook](index=2&type=section&id=Reaffirmed%202025%20Full%20Year%20Outlook) The company reaffirmed its full-year 2025 guidance for revenues and production volumes across both its RNG and REG segments Full Year 2025 Guidance (Unchanged) | Category | Metric | Expected Range | | :--- | :--- | :--- | | **RNG** | Revenues | $150 - $170 million | | | Production Volumes | 5.8 - 6.0 million MMBtu | | **REG** | Revenues | $17 - $18 million | | | Production Volumes | 178 - 186 thousand MWh | Financial Statements [Consolidated Balance Sheets](index=5&type=section&id=CONSOLIDATED%20BALANCE%20SHEETS) Total assets and liabilities increased, driven by capital investments and higher debt, while cash and cash equivalents decreased Balance Sheet Summary (as of June 30, 2025 vs. Dec 31, 2024) | Account | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $29.1 million | $45.6 million | | Total current assets | $42.6 million | $57.2 million | | Property, plant and equipment, net | $294.6 million | $252.3 million | | **Total assets** | **$382.5 million** | **$349.0 million** | | Total current liabilities | $55.5 million | $33.5 million | | Long-term debt | $57.8 million | $43.8 million | | **Total liabilities** | **$127.8 million** | **$91.6 million** | | **Total stockholders' equity** | **$254.7 million** | **$257.4 million** | [Consolidated Statements of Operations](index=6&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS) The company reported a wider net loss for the quarter as growth in operating expenses outpaced the increase in revenues Q2 2025 Income Statement Highlights (in thousands) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | Total operating revenues | $45,127 | $43,338 | | Total operating expenses | $47,482 | $42,470 | | Operating (loss) income | $(2,355) | $868 | | Net (loss) income | $(5,487) | $(712) | | Diluted (loss) per share | $(0.04) | $(0.01) | YTD 2025 Income Statement Highlights (in thousands) | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Total operating revenues | $87,730 | $82,125 | | Total operating expenses | $89,676 | $78,889 | | Operating (loss) income | $(1,946) | $3,236 | | Net (loss) income | $(5,951) | $1,138 | | Diluted (loss) per share | $(0.04) | $0.01 | [Consolidated Statements of Cash Flows](index=7&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS) Cash from operations increased slightly, while significant capital expenditures were funded by new debt and cash on hand Cash Flow Summary (Six Months Ended June 30) | Cash Flow Activity (in thousands) | 2025 | 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $17,346 | $14,485 | | Net cash used in investing activities | $(47,446) | $(41,555) | | Net cash provided (used) in financing activities | $13,614 | $(4,427) | | **Net decrease in cash** | **$(16,486)** | **$(31,497)** | | Cash at end of period | $29,518 | $42,745 | - Capital expenditures were the primary use of cash, totaling **$45.3 million** for the six-month period, an increase from $40.8 million in the prior year[21](index=21&type=chunk) Supplementary Information [Reconciliation of Non-GAAP Financial Measures](index=8&type=section&id=NON-GAAP%20FINANCIAL%20MEASURES) Adjusted EBITDA decreased in Q2 2025 compared to the prior year, reflecting the period's operating loss Reconciliation of Net Loss to Adjusted EBITDA (in thousands) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net loss | $(5,487) | $(712) | | Depreciation, depletion and amortization | $7,029 | $5,823 | | Interest expense | $1,216 | $1,286 | | Income tax expense | $1,876 | $344 | | **Consolidated EBITDA** | **$4,634** | **$6,741** | | Adjustments (Impairment, etc.) | $398 | $220 | | **Adjusted EBITDA** | **$5,032** | **$6,961** | [Conference Call Information](index=3&type=section&id=Conference%20Call%20Information) The company will host a conference call on August 7, 2025, to discuss its second quarter financial and operational results - A conference call to discuss Q2 2025 results is scheduled for **August 7, 2025, at 8:30 a.m. ET**[10](index=10&type=chunk) [About Montauk Renewables, Inc.](index=3&type=section&id=About%20Montauk%20Renewables%2C%20Inc.) The company is an experienced renewable energy firm specializing in converting biogas into valuable energy products - The company specializes in managing, recovering, and converting biogas into **RNG and Renewable Electricity**[13](index=13&type=chunk) [Safe Harbor Statement](index=4&type=section&id=Safe%20Harbor%20Statement) This report contains forward-looking statements that are subject to substantial risks and uncertainties affecting future results - The report includes forward-looking statements concerning future performance, which are subject to **significant risks and uncertainties** detailed in the company's SEC filings[14](index=14&type=chunk)[15](index=15&type=chunk)