FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2025 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 For the transition period from to Commission File Number: 001-39919 MONTAUK RENEWABLES, INC. (Exact name of registrant as specified in its charter) Delaware 85-3189583 (St ...

[Montauk Renewables First Quarter 2025 Results](index=1&type=section&id=Montauk%20Renewables%20Announces%20First%20Quarter%202025%20Results) [First Quarter Highlights & Business Updates](index=1&type=section&id=First%20Quarter%20Highlights%20%26%20Business%20Updates) Montauk's Q1 2025 was marked by delayed RIN sales, a planned Rumpke facility relocation, and an impairment loss on the Blue Granite project - The company's ability to sell Renewable Identification Numbers (RINs) from current year production was delayed by approximately one month due to the new EPA Biogas Regulatory Reform Rule, though all 2024 RINs have been sold[3](index=3&type=chunk) - The Rumpke RNG facility will be relocated with estimated capital expenditures between **$80 million and $110 million**, targeting a 2028 commissioning date[4](index=4&type=chunk) - An impairment loss was recorded for the Blue Granite project after the utility partner withdrew its commitment to accept RNG[4](index=4&type=chunk) [First Quarter Financial Results](index=1&type=section&id=First%20Quarter%20Financial%20Results) Total revenues increased to $42.6 million due to 2024 RIN monetization, but profitability declined to a net loss of $0.5 million Q1 2025 Key Financial Metrics (vs. Q1 2024) | Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | Total Revenues | $42.6 million | $38.8 million | +9.8% | | Operating Income | $0.4 million | $2.4 million | -82.7% | | Net (Loss) Income | ($0.5 million) | $1.9 million | -125.1% | | Non-GAAP Adjusted EBITDA | $8.8 million | $9.5 million | -7.2% | | RINs Sold | 9.9 million | 7.9 million | +25.3% | - Revenue growth was primarily driven by 2024 RIN sales, despite a **24.3% decrease** in average realized RIN price to **$2.46**[5](index=5&type=chunk) - Operating and maintenance expenses for RNG facilities increased by **$2.0 million (16.1%)**, alongside a **$1.1 million (46.2%)** rise in Renewable Electricity O&M expenses[5](index=5&type=chunk) [First Quarter Operational Results](index=2&type=section&id=First%20Quarter%20Operational%20Results) Operational output was mixed, with flat RNG production at 1.4 million MMBtu and a 14.8% decrease in Renewable Electricity generation Q1 2025 Production Volumes (vs. Q1 2024) | Product | Q1 2025 Production | Q1 2024 Production | Change | | :--- | :--- | :--- | :--- | | RNG | 1.4 million MMBtu | 1.4 million MMBtu | Flat | | Renewable Electricity | 46 thousand MWh | 54 thousand MWh | -14.8% | - RNG production at the Apex facility decreased by **57 MMBtu** due to cold weather, wellfield extraction factors, and equipment failures[7](index=7&type=chunk) - Renewable Electricity production fell by **8 thousand MWh**, primarily due to ceasing operations at the Security facility[7](index=7&type=chunk) [2025 Full Year Outlook](index=2&type=section&id=2025%20Full%20Year%20Outlook) The company projects full-year 2025 RNG revenues of $150-$170 million and REG revenues of $17-$18 million Full Year 2025 Guidance | Metric | Expected Range | | :--- | :--- | | RNG Revenues | $150 - $170 million | | RNG Production Volumes | 5.8 - 6.0 million MMBtu | | REG Revenues | $17 - $18 million | | REG Production Volumes | 178 - 186 thousand MWh | [Consolidated Financial Statements](index=5&type=section&id=Consolidated%20Financial%20Statements) This section presents the company's consolidated balance sheets, statements of operations, and cash flows for the period [Consolidated Balance Sheets](index=5&type=section&id=CONSOLIDATED%20BALANCE%20SHEETS) Total assets increased to $354.2 million, while total liabilities rose to $96.0 million and cash decreased to $40.1 million Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $40,111 | $45,621 | | Total current assets | $52,179 | $57,224 | | Property, plant and equipment, net | $259,678 | $252,288 | | **Total assets** | **$354,226** | **$349,015** | | Total current liabilities | $40,954 | $33,528 | | Total long-term debt | $40,796 | $43,763 | | **Total liabilities** | **$96,039** | **$91,598** | | **Total stockholders' equity** | **$258,187** | **$257,417** | [Consolidated Statements of Operations](index=6&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS) The company reported $42.6 million in revenue, resulting in an operating income of $0.4 million and a net loss of $0.5 million Consolidated Statement of Operations (in thousands) | Account | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Total operating revenues | $42,603 | $38,787 | | Total operating expenses | $42,193 | $36,419 | | Operating income | $410 | $2,368 | | Net (loss) income | $(464) | $1,850 | | Diluted (loss) income per share | $(0.00) | $0.01 | [Consolidated Statements of Cash Flows](index=7&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS) Net cash from operations decreased to $9.1 million, with a net decrease in cash and cash equivalents of $5.5 million for the quarter Consolidated Statement of Cash Flows (in thousands) | Account | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $9,140 | $14,292 | | Net cash used in investing activities | $(11,632) | $(22,786) | | Net cash used in financing activities | $(3,018) | $(2,020) | | Net decrease in cash and cash equivalents | $(5,510) | $(10,514) | | Cash and cash equivalents at end of period | $40,494 | $63,728 | [Non-GAAP Financial Measures](index=3&type=section&id=NON-GAAP%20FINANCIAL%20MEASURES) This section provides a reconciliation of net income to EBITDA and Adjusted EBITDA, key non-GAAP financial metrics [Reconciliation of Net (Loss) Income to EBITDA and Adjusted EBITDA](index=8&type=section&id=Reconciliation%20of%20Net%20(Loss)%20Income%20to%20EBITDA%20and%20Adjusted%20EBITDA) Adjusted EBITDA for Q1 2025 was $8.8 million, a decrease from $9.5 million in Q1 2024, starting from a net loss Reconciliation to Adjusted EBITDA (in thousands) | Account | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Net (loss) income | $(464) | $1,850 | | Depreciation, depletion and amortization | 6,264 | 5,434 | | Interest expense | 1,243 | 1,165 | | Income tax (benefit) expense | (317) | 413 | | **Consolidated EBITDA** | **6,726** | **8,862** | | Impairment loss | 2,047 | 528 | | Other adjustments | 15 | 83 | | **Adjusted EBITDA** | **$8,788** | **$9,473** | [Additional Information](index=3&type=section&id=Additional%20Information) This section includes conference call details, a business overview, and a Safe Harbor statement on forward-looking risks - The company will host a conference call on **May 9th, 2025, at 8:30 a.m. Eastern time** to discuss quarterly results[10](index=10&type=chunk) - Montauk Renewables specializes in converting biogas into **RNG or Renewable Electricity**, operating **13 projects** across eight states[13](index=13&type=chunk) - The report includes a Safe Harbor Statement, cautioning that forward-looking statements are subject to substantial risks and uncertainties[14](index=14&type=chunk)

PITTSBURGH, May 08, 2025 (GLOBE NEWSWIRE) -- Montauk Renewables, Inc. (“Montauk” or “the Company”) (NASDAQ: MNTK), a renewable energy company specializing in the management, recovery, and conversion of biogas into renewable natural gas (“RNG”), today announced financial results for the first quarter ended March 31, 2025. First Quarter Highlights: • Revenues of $42.6 million, increased 9.8% compared to the first quarter of 2024 • Net loss of $0.5 million, compared to net income of $1.9 million for the firs ...

PITTSBURGH, April 29, 2025 (GLOBE NEWSWIRE) -- Montauk Renewables, Inc. ("Montauk” or “the Company") (NASDAQ: MNTK), a renewable energy company specializing in the management, recovery and conversion of biogas into renewable natural gas (“RNG”), will host a conference call and webcast on Friday, May 9, 2025, at 8:30 a.m. Eastern time to discuss its financial results for the first quarter ended March 31, 2025. The Company will issue a press release reporting the financial results after the close of regular s ...

Core Viewpoint - Montauk Renewables, Inc. has authorized a share repurchase program to buy back up to $5 million of its common stock, effective immediately with no specified termination date [1]. Group 1: Share Repurchase Program - The repurchase may occur through open market transactions, privately negotiated transactions, or other methods in compliance with federal securities laws [2]. - A Repurchase Committee, consisting of Board members and management, will determine the timing, number, and purchase price of shares repurchased under the program [2]. - The program can be suspended, terminated, or modified at any time due to various factors such as market conditions, repurchase costs, and liquidity [3]. Group 2: Company Overview - Montauk Renewables, Inc. specializes in the management, recovery, and conversion of biogas into Renewable Natural Gas (RNG) and electrical power [4]. - The company captures methane to prevent its release into the atmosphere and has over 30 years of experience in renewable energy projects related to landfill methane [4]. - Montauk operates 13 projects across several states, including California, Idaho, Ohio, Oklahoma, Pennsylvania, North Carolina, South Carolina, and Texas, and sells RNG and Renewable Electricity [4].

Core Viewpoint - Montauk Renewables, Inc. has initiated a Renewable Natural Gas (RNG) landfill gas project in Tulsa, Oklahoma, marking a significant step in its growth strategy and partnership with American Environmental Landfill, Inc. [1][2][3] Project Details - The project involves an extension of the existing gas rights and lease agreement with AEL, with a new RNG facility designed to have a production capacity of approximately 1,500 MMBtu per day [2][3]. - The capital investment for the project is expected to range between $25 million to $35 million, with a targeted commissioning date in the first quarter of 2027 [3]. Company Background - Montauk Renewables specializes in the management, recovery, and conversion of biogas into RNG, capturing methane to prevent atmospheric release [4]. - The company has over 30 years of experience in developing and managing landfill methane-fueled renewable energy projects across multiple states in the U.S. [4].

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 ...

Financial Performance - Total revenues for 2024 were $175.7 million, flat compared to $174.9 million in 2023[4] - Net income for 2024 was $9.7 million, a decrease of 34.9% year over year[5] - Non-GAAP Adjusted EBITDA for 2024 was $42.6 million, down 8.3% from the previous year[4] - Operating income decreased to $16,123 in 2024 from $23,640 in 2023, a decline of 31.8%[19] - Net income for 2024 was $9,734, down 35% from $14,948 in 2023[19] - Adjusted EBITDA for 2024 was $42,616, down from $46,451 in 2023, a decrease of 8.0%[24] Revenue Sources - RNG revenues for 2025 are expected to range between $150 million and $170 million[9] - Renewable Electricity revenues for 2025 are projected to range between $17.0 million and $18.0 million[9] - Total operating revenues for 2024 increased to $175,736, up from $174,904 in 2023, representing a growth of 0.47%[19] Production and Sales - RNG production in 2024 was 5.6 million MMBtu, an increase of 1.6% compared to 5.5 million MMBtu in 2023[6] - RINs sold in 2024 totaled 36.6 million, a decrease of 8.3 million or 18.5% year over year[4] - Unsold RINs as of December 31, 2024, were 6.8 million, an increase of 6.7 million year over year[4] - Average realized RIN price in 2024 was $3.28, up approximately 21.0% from $2.71 in 2023[4] Expenses and Assets - Operating and maintenance expenses for RNG facilities in 2024 were $53.4 million, an increase of 11.5% compared to $47.9 million in 2023[4] - Total current assets decreased to $57,224 in 2024 from $90,175 in 2023, a reduction of 36.5%[17] - Cash and cash equivalents at the end of 2024 were $45,621, down from $73,811 in 2023, a decrease of 38.1%[21] - Capital expenditures for 2024 were $62,323, slightly lower than $63,091 in 2023[21] Liabilities and Debt - Total liabilities decreased to $91,598 in 2024 from $99,999 in 2023, a decline of 8.4%[17] - The current portion of long-term debt increased to $11,853 in 2024 from $7,886 in 2023, an increase of 50.5%[17] Shareholder Information - The company reported a total of 142,279,079 basic weighted-average common shares outstanding for 2024, compared to 141,727,905 in 2023[19]

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].