Montauk energy(MNTK) - 2025 Q2 - Quarterly Results

Montauk Renewables Q2 2025 Earnings Report Second Quarter Highlights 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] - 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][6] - The EPA proposed new RFS Standards and a partial waiver for 2025 Cellulosic Biofuel Volume, citing limitations in RNG transportation usage[4] Second Quarter Financial Results 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] - 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] Second Quarter Operational Results 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] Reaffirmed 2025 Full Year Outlook 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 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 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 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] Supplementary Information Reconciliation of Non-GAAP Financial Measures 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 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] About Montauk Renewables, Inc. 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] Safe Harbor Statement 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][15]