Montauk energy(MNTK) - 2025 Q1 - Quarterly Results

Montauk Renewables First Quarter 2025 Results First Quarter Highlights & Business Updates 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] - The Rumpke RNG facility will be relocated with estimated capital expenditures between $80 million and $110 million, targeting a 2028 commissioning date[4] - An impairment loss was recorded for the Blue Granite project after the utility partner withdrew its commitment to accept RNG[4] First Quarter Financial Results 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] - 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] First Quarter Operational Results 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] - Renewable Electricity production fell by 8 thousand MWh, primarily due to ceasing operations at the Security facility[7] 2025 Full Year Outlook 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 This section presents the company's consolidated balance sheets, statements of operations, and cash flows for the period Consolidated Balance Sheets 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 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 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 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 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 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] - Montauk Renewables specializes in converting biogas into RNG or Renewable Electricity, operating 13 projects across eight states[13] - The report includes a Safe Harbor Statement, cautioning that forward-looking statements are subject to substantial risks and uncertainties[14]