• Total Revenue: $175.7 million in 2024, compared to $174.9 million in 2023.
• Net Income: $9.7 million in 2024, a decrease from $14.9 million in 2023.
• Adjusted EBITDA: $42.6 million in 2024, down from $46.5 million in 2023.
• EBITDA: $41 million in 2024, compared to $45.3 million in 2023.
• Operating Profit: $16.1 million in 2024, down from $23.6 million in 2023.
• RNG Production: 5.6 million MMBtu in 2024, up from 5.5 million in 2023.
• RNG Revenue: $158 million in 2024, up from $156.5 million in 2023.
• Renewable Electricity Production: 186,000 megawatt hours in 2024, down from 194,000 megawatt hours in 2023.
• Renewable Electricity Revenue: $17.8 million in 2024, down from $18.4 million in 2023.
• General and Administrative Expenses: $36.3 million in 2024, up from $34.4 million in 2023.
• Operating and Maintenance Expenses (RNG): $53.4 million in 2024, up from $47.9 million in 2023.
• Operating and Maintenance Expenses (Renewable Electricity): $12.8 million in 2024, up from $11.7 million in 2023.
• Capital Expenditures: $62.3 million in 2024, compared to $63.1 million in 2023.
• Cash from Operating Activities: $43.8 million in 2024, up from $41.1 million in 2023.
• Average Realized RIN Price: $3.28 in 2024, up from $2.71 in 2023.

• Warning! GuruFocus has detected 1 Warning Sign with MNTK.

Release Date: March 13, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Montauk Renewables Inc (NASDAQ:MNTK) successfully sold all of its 2024 vintage D3 RINs, mitigating exposure to market volatility.
• The company reported a 70% increase in production from its Pico facility in 2024 compared to 2023.
• Montauk Renewables Inc (NASDAQ:MNTK) is expanding its feedstock diversification strategy, with a new swine waste energy project in North Carolina set to commission in 2026.
• The company is prioritizing product diversification, including renewable power generation and biogenic carbon dioxide sales, to enhance revenue streams.
• Montauk Renewables Inc (NASDAQ:MNTK) maintained a strong cash position with $45.6 million in cash and cash equivalents as of December 31, 2024.

Negative Points

• The company experienced a decrease in operating profit by 31.8% in 2024 compared to 2023.
• Montauk Renewables Inc (NASDAQ:MNTK) faced challenges with market conditions, leading to a decision not to market 6.8 million RINs in the fourth quarter of 2024.
• Operating and maintenance expenses for RNG facilities increased by 11.5% in 2024 compared to 2023.
• The company reported a net income decrease of 34.9% in 2024 compared to 2023.
• Montauk Renewables Inc (NASDAQ:MNTK) faced delays in its Blue Granite project due to interconnection utility issues, leading to indefinite delays in COD and capital spend.

Q & A Highlights

Q: With your RNG facilities, how are you looking at opportunities from the data center side? A: Sean McClain, President and CEO, explained that Montauk is exploring opportunities with data centers and other high-volume users interested in colocating. The focus is on leveraging renewable electric credits and diversifying product sales, especially amid volatility in federal and state attribute markets.

Q: Regarding the 2025 RNG revenue guidance of $150 million to $170 million, does this assume all RINs will be monetized in 2025? Will you continue to receive a premium to benchmark RIN prices? A: Kevin Van Asdalan, CFO, stated that Montauk expects to continue achieving premiums over the existing D3 index price. The guidance assumes RINs will be transferred up to the next quarter available. Regulatory reforms may impact the timing of RIN sales.

Q: Can you comment on the landfill operators' delay impact and the average RIN price transfer? A: Sean McClain noted that landfill operators are cautious about allowing access to waste areas, impacting wellfield initiatives. The average RIN price transfer was $2.45, but future pricing remains uncertain due to regulatory factors and market conditions.

Q: What are you seeing in the voluntary market in terms of demand and pricing? A: Kevin Van Asdalan highlighted challenges in obtaining reliable data from the voluntary market. Montauk has flexibility to divert volumes from transportation to voluntary markets as needed, but ongoing regulatory uncertainties impact decision-making.

Q: Would there be any impact to Montauk from the 45B production tax credit? A: Kevin Van Asdalan mentioned that Montauk already benefits from production tax credits for its electric generation portfolio. The company is evaluating the applicability of the expanded 45B tax credit under the IRA Act.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.