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 ...

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]

Core Insights - Montauk Renewables reported Q2 2025 financial results with revenue of $45.1 million, exceeding analyst expectations, but faced profitability challenges with an EPS of $(0.04) due to higher operating expenses and lower RIN prices [1][5][7] Financial Performance - Revenue (GAAP) increased by 4.1% year-over-year from $43.3 million in Q2 2024 to $45.1 million in Q2 2025, surpassing the estimate of $44.4 million [2][5] - Adjusted EBITDA declined by 27.7% to $5.0 million from $7.0 million in Q2 2024 [7] - The company sold 11.1 million RINs, an increase of 10.5% from 10.0 million in Q2 2024, but the average realized price per RIN fell by 22.4% to $2.42 from $3.12 in Q2 2024 [5][6] Operational Highlights - RNG production remained stable at 1.4 million MMBtu, showing no growth compared to the previous year [6] - Operating and maintenance costs for RNG facilities rose by 22.0% to $17.0 million, attributed to scheduled maintenance and operational improvements [6] - Total operating expenses increased by 11.8%, leading to an operating loss of $(2.4) million and a net loss of $(5.5) million compared to $(0.7) million in Q2 2024 [7] Regulatory and Market Challenges - Revenue recognition delays occurred due to the EPA's new Biogas Regulatory Reform Rule, affecting the sale of approximately 3.0 million RINs [8] - The Renewable Electricity Generation segment produced 42,000 megawatt hours, down from 45,000 in Q2 2024, with operating costs nearly flat year-over-year [8] Strategic Developments - Montauk completed construction of a second RNG processing facility at its Apex site, enhancing future capacity [9] - A 10-year power purchase agreement was signed for the North Carolina agricultural RNG project, securing an average price of $48 per megawatt hour [9] - A new joint venture, GreenWave Energy Partners, LLC, was established to facilitate future RNG transportation and utilization [9] Future Guidance - The company reaffirmed its full-year 2025 guidance, expecting RNG revenue between $150 million and $170 million and RNG production between 5.8 million and 6.0 million MMBtu [10]

Financial Data and Key Metrics Changes - Total revenues in Q1 2025 were $42.6 million, an increase of $3.8 million or 9.8% compared to $38.8 million in Q1 2024 [13] - Adjusted EBITDA for Q1 2025 was $8.8 million, a decrease of $700,000 or 7.2% compared to $9.5 million for Q1 2024 [24] - EBITDA for Q1 2025 was approximately $6.7 million, a decrease of $2.1 million or 24.1% compared to $8.9 million for Q1 2024 [24] - Net loss for Q1 2025 was $500,000, a decrease of $2.3 million compared to net income of $1.9 million for Q1 2024 [24] Business Line Data and Key Metrics Changes - Renewable Natural Gas (RNG) segment revenues in Q1 2025 were $38.5 million, an increase of $4.5 million or 13.1% compared to $34 million in Q1 2024 [16] - RNG production during Q1 2025 was approximately 1.4 million MMBtu, flat compared to Q1 2024 [15] - Revenues from renewable electricity facilities in Q1 2025 were $4.2 million, a decrease of $600,000 or 13.5% compared to $4.8 million in Q1 2024 [18] Market Data and Key Metrics Changes - Average realized RIN price in Q1 2025 was $2.46, a decrease of 24.3% compared to $3.25 in Q1 2024 [16] - Average commodity pricing for natural gas in Q1 2025 was 62.9% higher than the prior year period [16] Company Strategy and Development Direction - The company is focused on expanding its RNG production capabilities, particularly in North Carolina, with expectations to commence significant production and revenue generation activities in 2026 [7] - The company is negotiating with utilities for Renewable Energy Credits (RECs) from expected 2026 production [8] - The company is also developing a project to convert methane emissions from waste stream biogas into high-value carbon-negative fuel [10] Management's Comments on Operating Environment and Future Outlook - Management noted that regulatory uncertainty continues to impact the renewable natural gas industry, but the company believes its financial position and operational practices will maintain stability [7] - The company reaffirmed its full-year 2025 outlook, expecting RNG production volumes to range between 5.8 million and 6 million MMBtus, with corresponding RNG revenues between $150 million and $170 million [26] Other Important Information - The company reported impairments of $2 million in Q1 2025, an increase of $1.5 million compared to $500,000 in Q1 2024, primarily related to RNG equipment design at the Blue Granite project [20] - Operating and maintenance expenses for the RNG facility in Q1 2025 were $14.1 million, an increase of $1.9 million or 16.1% compared to $12.1 million in Q1 2024 [17] Q&A Session Summary Question: Could you provide more color on the RNG project at American Environmental Landfill? - Management confirmed the construction of an RNG processing facility at the American Environmental Landfill in Tulsa, Oklahoma, driven by increased gas feedstock availability [29] Question: Do you have any more details on why you're having to relocate your Rumpke site? - Management explained that the relocation is due to a contractual requirement associated with gas rights, but it will not disrupt production as the technology will be consolidated into a new facility [31] Question: Did you record any 45z credits in the first quarter? - Management confirmed that no 45z credits were recorded as of yet [33] Question: Are you seeing any slowdown in RNG at any landfills or customers? - Management noted a slowdown in some acquisition opportunities due to regulatory uncertainties, but they remain cautiously optimistic about ongoing development projects [36][37] Question: Can you provide clarity on the North Carolina swine project compared to dairy projects? - Management highlighted that the North Carolina project is unique, with a broader collaboration with the farming community and potential for significant expansion, making it an exciting opportunity [40][42]

Financial Data and Key Metrics Changes - Total revenues in Q1 2025 were $42.6 million, an increase of $3.8 million or 9.8% compared to $38.8 million in Q1 2024 [13] - Adjusted EBITDA for Q1 2025 was $8.8 million, a decrease of $700,000 or 7.2% compared to $9.5 million for Q1 2024 [26] - EBITDA for Q1 2025 was approximately $6.7 million, a decrease of $2.1 million or 24.1% compared to $8.9 million for Q1 2024 [26] - Net loss for Q1 2025 was $500,000, a decrease of $2.3 million compared to net income of $1.9 million for Q1 2024 [26] Business Line Data and Key Metrics Changes - Renewable Natural Gas (RNG) segment revenues in Q1 2025 were $38.5 million, an increase of $4.5 million or 13.1% compared to $34 million in Q1 2024 [16] - RNG production during Q1 2025 was approximately 1.4 million MMBtu, flat compared to Q1 2024 [14] - Revenues from renewable electricity facilities in Q1 2025 were $4.2 million, a decrease of $600,000 or 13.5% compared to $4.8 million in Q1 2024 [20] Market Data and Key Metrics Changes - Average realized RIN price in Q1 2025 was $2.46, a decrease of 24.3% compared to $3.25 in Q1 2024 [16] - Average commodity pricing for natural gas in Q1 2025 was 62.9% higher than the prior year period [16] Company Strategy and Development Direction - The company is focused on expanding its RNG production capabilities, particularly in North Carolina, with expectations to commence significant production and revenue generation activities in 2026 [6][7] - The company is also developing a project to convert methane emissions from waste stream biogas into high-value carbon-negative fuel [9] - The company is prioritizing the Atascocita location for biogenic CO2 projects and is progressing with plans to incorporate food-grade CO2 processing at the Rumke RNG project [9] Management's Comments on Operating Environment and Future Outlook - Management noted that regulatory uncertainty continues to impact the renewable natural gas industry, but the company believes its financial position and operational practices will maintain stability [6] - The company reaffirmed its full-year 2025 outlook, expecting RNG production volumes to range between 5.8 million and 6 million MMBtu, with corresponding revenues between $150 million and $170 million [29] Other Important Information - The company reported impairments of $2 million in Q1 2025, an increase compared to $500,000 in Q1 2024, primarily related to RNG equipment design at the Blue Granite project [22] - Operating and maintenance expenses for the RNG facility in Q1 2025 were $14.1 million, an increase of $1.9 million or 16.1% compared to $12.1 million in Q1 2024 [17] Q&A Session Summary Question: Could you provide more color on the RNG project at American Environmental Landfill? - Management confirmed the construction of an RNG processing facility at the American Environmental Landfill, which will have dual capacity for different production commodities [32] Question: Do you have any more details on why you're having to relocate your Rumpke site? - Management explained that the relocation is due to a contractual requirement associated with gas rights, and there will be no interruptions in production during the transition [34] Question: Did you record any 45z credits in the first quarter? - Management confirmed that no 45z credits were recorded as of yet [35] Question: Are you seeing any slowdown in RNG at any landfills or customers? - Management acknowledged a slowdown in some acquisition opportunities due to regulatory uncertainties but remains cautiously optimistic about ongoing development projects [37] Question: Could you provide clarity on the North Carolina swine project compared to dairy projects? - Management highlighted that the North Carolina swine project is unique and offers significant opportunities for expansion and diversification compared to traditional dairy projects [41]

Financial Performance - Total operating revenues increased to $42603 thousand in Q1 2025 from $38787 thousand in Q1 2024[7] - Net loss was $464 thousand in Q1 2025, compared to a net income of $1850 thousand in Q1 2024[7] - Basic and diluted loss per share was $000 in Q1 2025, compared to earnings per share of $001 in Q1 2024[7] - Adjusted EBITDA decreased to $8788 thousand in Q1 2025 from $9473 thousand in Q1 2024[32] Operational Results - RNG production volumes decreased by 22 MMBtu, a 16% decrease[8, 10] - Renewable Electricity Generation production decreased by 8 MWh, a 148% decrease[8, 10] - Renewable Natural Gas Total Revenues increased by $4463 thousand or 131%[10] - Renewable Electricity Generation Total Revenues decreased by $647 thousand or 135%[10] RIN Metrics - RINs available for sale increased by 2561 thousand, a 228% increase[10] - RINs sold increased by 1996 thousand, a 253% increase[9, 10] - Average realized price per RIN decreased by $079, a 243% decrease[9, 10] - RIN inventory increased by 565 thousand, a 169% increase[9, 10] Business Development - Second Apex RNG Facility commissioning is expected to be complete in the second quarter of 2025[20] - The Blue Granite RNG Facility project faces uncertainty as the utility will no longer accept RNG into its distribution system[21]