Release Date: March 13, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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.
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