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]

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].

Core Insights - Montauk Renewables, Inc. reported strong financial results for Q3 2024, with significant increases in revenues and net income compared to the same period in 2023 [1][2][3] Financial Performance - Total revenues for Q3 2024 were $65.9 million, an increase of $10.2 million (18.4%) from $55.7 million in Q3 2023 [2] - Net income for Q3 2024 was $17.0 million, up $4.1 million (31.8%) from $12.9 million in Q3 2023 [2] - Non-GAAP Adjusted EBITDA reached $29.4 million, reflecting a 31.3% increase compared to Q3 2023 [1] - RINs sold amounted to 15.8 million, a 14.5% increase from the previous year [1] Operational Highlights - RNG production was stable at 1.4 million MMBtu, unchanged from Q3 2023, but impacted by Hurricane Beryl, which caused an estimated production loss of 50 thousand MMBtu [1][3] - The Pico facility saw an increase in production by 27 thousand MMBtu due to a digestion expansion project [3] - Renewable Electricity production decreased to approximately 41 thousand MWh, down 7 thousand MWh from Q3 2023 [3] Future Outlook - The company expects RNG revenues for the full year 2024 to range between $175 million and $185 million, with production volumes projected between 5.5 and 5.7 million MMBtu [4] - Renewable Electricity revenues are anticipated to be between $17 million and $18 million, with production volumes expected to be between 180 and 185 thousand MWh [4] - Delays in landfill host installations may impact future production increases, with expectations for these trends to continue into 2025 [4] Environmental Initiatives - Montauk was selected for a pilot project to recover and convert biogas into green methanol, aiming to create carbon-negative fuel [1] - The company is committed to reducing landfill-based emissions and enhancing its environmental sustainability efforts [1]

Core Viewpoint - Montauk Renewables, Inc. will host a conference call and webcast on November 12, 2024, to discuss its financial results for Q3 2024, with a press release to be issued after market hours on the same day [1]. Group 1: Conference Call Details - The conference call and webcast are scheduled for November 12, 2024, at 5:00 p.m. Eastern time [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 8:00 p.m. Eastern time on the same day through November 12, 2025 [3]. Group 2: Company Overview - Montauk Renewables, Inc. specializes in the management, recovery, and conversion of biogas into renewable natural gas (RNG) and has over 30 years of experience in landfill methane-fueled renewable energy projects [4]. - The company operates 14 projects across several 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].

Financial Performance - Revenue for the six months ended June 30, 2024, was $82,125,000, representing a 13% increase from $72,409,000 in the same period of 2023[1] - EBITDA for the same period was $15,603,000, a significant increase of 57% compared to $9,921,000 in the prior year[1] - Headline earnings for the six months ended June 30, 2024, were $1,601,000, a turnaround from a loss of $2,056,000 in the same period of 2023, marking a 178% improvement[1] - Earnings per share for the six months ended June 30, 2024, was $0.01, compared to a loss of $0.02 per share in the same period of 2023, reflecting a 150% increase[1] - The company reported a net income attributable to common shareholders of $1,138,000 for the six months ended June 30, 2024, compared to a loss of $2,785,000 in the same period of 2023[3] Asset and Shareholder Information - The net asset value per common share increased to $1.80, up 12% from $1.61 in the previous year[1] - The weighted-average common shares outstanding increased to 142,028,000 for the six months ended June 30, 2024, compared to 141,633,000 in the same period of 2023[3] Dividend Policy - The company has decided not to declare a final dividend to focus financial resources on the continued development of its operations portfolio[2] Adjustments and Impairments - Adjustments included a loss on disposal of plant and equipment of $43,000 and an impairment of plant and equipment totaling $420,000 for the six months ended June 30, 2024[3] Future Announcements - The full financial results announcement will be accessible from August 12, 2024, via the JSE link and the SEC's website[4]

Montauk Renewables (MNTK) came out with a quarterly loss of $0.01 per share versus the Zacks Consensus Estimate of $0.06. This compares to earnings of $0.01 per share a year ago. These figures are adjusted for nonrecurring items. This quarterly report represents an earnings surprise of -116.67%. A quarter ago, it was expected that this renewable energy company would post a loss of $0.02 per share when it actually produced earnings of $0.01, delivering a surprise of 150%. Over the last four quarters, the com ...

Please register for the conference call and webcast using the above link in advance of the call start time. The webcast platform will register your name and organization as well as provide dial-in numbers and a unique access pin. Please contact Gateway Group at (949) 574-3860 if you experience technical difficulties. About Montauk Renewables, Inc. Investor Relations Contact: | --- | --- | |---------------------|------------------------------------------------------------------------------------| | Date: | S ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 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, 2024 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 (IRS Employer Identification No.) (State or Other Jurisdiction of Incorporation or Organization) ...