Montauk energy(MNTK) - 2024 Q3 - Earnings Call Transcript

Financial Data and Key Metrics Changes - Total revenues in Q3 2024 were $65.9 million, an increase of$10.2 million or 18.4% compared to $55.7 million in Q3 2023, primarily due to an increase in the number of RINs self-marketed and a 9.5$10 million, an increase of $2.2 million or 27.9$7.8 million in Q3 2023, driven by increased employee-related costs [22] - Operating income for Q3 2024 was $22.7 million, an increase of$5.9 million or 35.3% compared to $16.8 million in Q3 2023 [37] - Adjusted EBITDA for Q3 2024 was$29.4 million, an increase of $7 million or 31.3$22.4 million in Q3 2023 [42] Business Line Data and Key Metrics Changes - Renewable natural gas (RNG) segment revenues in Q3 2024 were $61.8 million, an increase of$10.8 million or 21.2% compared to $50.9 million in Q3 2023 [26] - RNG production was approximately 1.4 million MMBtu, flat compared to Q3 2023, with production variances across facilities due to weather and operational factors [23] - Renewable electricity revenues decreased to$4.2 million, a decrease of $0.6 million or 12.3$4.8 million in Q3 2023, primarily due to the cessation of operations at a facility [34] Market Data and Key Metrics Changes - Average pricing realized on RIN sales during Q3 2024 was $3.34, an increase from$3.05 in Q3 2023, while the average D3 rent index price was $3.36, up from$3.01 [27] - The company self-marketed 15.8 million RINs, a 2 million increase or 14.5% compared to Q3 2023 [27] Company Strategy and Development Direction - The company is constructing its second Apex RNG facility, expected to be commissioned in 2025, driven by increased landfill waste intake [7] - The Blue Granite RNG project has faced delays due to utility remediation efforts from Hurricane Helene, shifting commissioning expectations to 2027 [8] - The company is also engaged in a swine waste-to-energy project in North Carolina, with regulatory approvals progressing [12] Management's Comments on Operating Environment and Future Outlook - Management noted that landfill-driven delays in wellfield projects are expected to impact RNG production volumes, projecting full-year production between 5.5 million and 5.7 million MMBtus [44] - The company does not provide guidance on market prices for environmental attributes but acknowledges recent trends may affect future revenue strategies [45] Other Important Information - The company recorded impairments of $0.5 million in Q3 2024, primarily related to obsolete RNG equipment [36] - As of September 30, 2024, the company had cash and cash equivalents of approximately$55 million and accounts receivable of approximately $19.2 million [41] Q&A Session Summary - No specific questions or answers were documented in the provided content, indicating a focus on closing comments and future engagement [45]