Montauk Renewables Announces Third Quarter 2024 Results
Montauk Renewables (NASDAQ: MNTK) reported strong Q3 2024 financial results with revenues of $65.9 million, up 18.4% year-over-year. Net income increased 31.8% to $17.0 million, while Adjusted EBITDA grew 31.3% to $29.4 million. RINs sold increased 14.5% to 15.8 million. RNG production remained flat at 1.4 million MMBtu, impacted by Hurricane Beryl in Texas. The company revised its 2024 outlook, expecting RNG revenues between $175-185 million and production volumes of 5.5-5.7 million MMBtu. Management noted challenges with landfill hosts delaying infrastructure installations and higher pathway provider sharing arrangements.
Montauk Renewables (NASDAQ: MNTK) ha riportato risultati finanziari solidi per il terzo trimestre 2024, con ricavi di 65,9 milioni di dollari, in crescita del 18,4% rispetto all'anno precedente. L'utile netto è aumentato del 31,8%, raggiungendo i 17,0 milioni di dollari, mentre l'EBITDA rettificato è cresciuto del 31,3%, toccando i 29,4 milioni di dollari. Le vendite di RIN sono aumentate del 14,5%, raggiungendo i 15,8 milioni. La produzione di RNG è rimasta stabile a 1,4 milioni di MMBtu, influenzata dall'uragano Beryl in Texas. L'azienda ha rivisto le sue previsioni per il 2024, aspettandosi ricavi da RNG tra i 175 e i 185 milioni di dollari e volumi di produzione tra 5,5 e 5,7 milioni di MMBtu. La direzione ha segnalato sfide con i gestori delle discariche che ritardano le installazioni delle infrastrutture e maggiori accordi di condivisione con i fornitori di percorso.
Montauk Renewables (NASDAQ: MNTK) reportó resultados financieros sólidos para el tercer trimestre de 2024, con ingresos de 65,9 millones de dólares, un aumento del 18,4% en comparación con el año anterior. El ingreso neto aumentó un 31,8%, alcanzando los 17,0 millones de dólares, mientras que el EBITDA ajustado creció un 31,3% hasta los 29,4 millones de dólares. Las RINs vendidas aumentaron un 14,5%, alcanzando los 15,8 millones. La producción de RNG se mantuvo estable en 1,4 millones de MMBtu, afectada por el huracán Beryl en Texas. La empresa revisó sus previsiones para 2024, esperando ingresos por RNG entre 175 y 185 millones de dólares y volúmenes de producción de 5,5 a 5,7 millones de MMBtu. La gerencia comentó sobre los desafíos con los anfitriones de los vertederos que retrasan las instalaciones de infraestructura y mayores acuerdos de participación con proveedores de vías.
Montauk Renewables (NASDAQ: MNTK)는 2024년 3분기 강력한 재무 결과를 보고하며 수익이 6,590만 달러로, 지난해 대비 18.4% 증가했다고 발표했습니다. 순이익은 31.8% 증가하여 1,700만 달러에 달했고, 조정 EBITDA는 31.3% 성장하여 2,940만 달러로 증가했습니다. 판매된 RIN은 14.5% 증가한 1,580만 개에 달했습니다. RNG 생산은 텍사스에서 허리케인 베릴의 영향으로 140만 MMBtu로 제자리 걸음을 했습니다. 회사는 2024년 전망을 수정하면서 RNG 수익이 1억 7,500만에서 1억 8,500만 달러 사이가 될 것으로 예상하고, 생산량은 550만에서 570만 MMBtu에 이를 것으로 보았습니다. 경영진은 인프라 설치를 지연시키는 매립지 호스트와 더 높은 경로 제공자 공유 협정에 대한 어려움을 언급했습니다.
Montauk Renewables (NASDAQ: MNTK) a annoncé des résultats financiers solides pour le troisième trimestre 2024, avec des revenus de 65,9 millions de dollars, en hausse de 18,4 % par rapport à l'année précédente. Le revenu net a augmenté de 31,8 %, atteignant 17,0 millions de dollars, tandis que l'EBITDA ajusté a crû de 31,3 %, atteignant 29,4 millions de dollars. Les RIN vendues ont augmenté de 14,5 %, atteignant 15,8 millions. La production de RNG est restée stable à 1,4 million de MMBtu, impactée par l'ouragan Beryl au Texas. L'entreprise a revu ses prévisions pour 2024, s'attendant à des revenus de RNG compris entre 175 et 185 millions de dollars et des volumes de production de 5,5 à 5,7 millions de MMBtu. La direction a noté des défis avec les hôtes de décharges qui retardent les installations d'infrastructures et des accords de partage avec les fournisseurs de chemin plus élevés.
Montauk Renewables (NASDAQ: MNTK) berichtete über starke Finanzzahlen für das dritte Quartal 2024, mit Einnahmen von 65,9 Millionen Dollar, was einem Anstieg von 18,4% im Jahresvergleich entspricht. Der Nettogewinn stieg um 31,8% auf 17,0 Millionen Dollar, während das bereinigte EBITDA um 31,3% auf 29,4 Millionen Dollar wuchs. Die verkauften RINs erhöhten sich um 14,5% auf 15,8 Millionen. Die RNG-Produktion blieb mit 1,4 Millionen MMBtu aufgrund des Hurrikans Beryl in Texas stabil. Das Unternehmen überarbeitete seine Prognose für 2024 und erwartet RNG-Einnahmen zwischen 175 und 185 Millionen Dollar sowie Produktionsvolumen von 5,5 bis 5,7 Millionen MMBtu. Das Management wies auf Herausforderungen mit Abfallentsorgungsbetrieben hin, die die Infrastrukturanlagen verzögern, sowie auf höhere Vereinbarungen zur Verteilung mit Dienstleistern.
- Revenue increased 18.4% YoY to $65.9 million
- Net income grew 31.8% YoY to $17.0 million
- Adjusted EBITDA rose 31.3% YoY to $29.4 million
- RINs sold increased 14.5% YoY to 15.8 million
- RIN pricing increased 9.5% compared to Q3 2023
- RNG production remained flat YoY at 1.4 million MMBtu
- Operating expenses increased 5.6% to $12.6 million
- General and administrative expenses rose 27.9%
- Hurricane Beryl caused production loss of 50,000 MMBtu
- Landfill hosts delaying infrastructure installations affecting future production
Insights
The Q3 2024 results show strong financial performance with notable improvements across key metrics.
However, several concerns emerge: Hurricane-related disruptions impacted production for the second consecutive quarter and landfill host delays in infrastructure installation could affect future growth. The company's warning about higher pathway provider sharing arrangements and potential shift toward more fixed-price contracts suggests margin pressure ahead. The revised 2024 guidance and hesitancy to provide 2025 RNG outlook beyond production metrics indicate increasing market uncertainties.
The flat RNG production of 1.4 million MMBtu, despite operational challenges, demonstrates operational resilience. The new green methanol pilot project signals strategic diversification into carbon-negative fuel production, though near-term financial impact is minimal. The emerging trend of landfill hosts delaying collection infrastructure installations is particularly concerning, as it could significantly impact feedstock availability and production growth through 2025.
The company's RIN pricing improved by
PITTSBURGH, Nov. 12, 2024 (GLOBE NEWSWIRE) -- Montauk Renewables, Inc. (“Montauk” or “the Company”) (NASDAQ: MNTK), a renewable energy company specializing in the management, recovery, and conversion of biogas into renewable natural gas (“RNG”), today announced financial results for the third quarter ended September 30, 2024.
Third Quarter Financial Highlights:
- RINs Sold of 15.8 million, increased
14.5% compared to the third quarter of 2023
- Revenues of
$65.9 million , increased18.4% compared to the third quarter of 2023
- Net Income of
$17.0 million , increased31.8% compared to the third quarter of 2023
- Non-GAAP Adjusted EBITDA of
$29.4 million , increased31.3% compared to the third quarter of 2023
- RNG production of 1.4 million MMBtu, flat compared to the third quarter of 2023
Our production was significantly impacted by Hurricane Beryl which caused widespread and multi-day power outages in the Houston, Texas region. We estimate that our 2024 third quarter production was unfavorably impacted by approximately 50 thousand MMBtu. This marks the second consecutive quarter in 2024 that our results were impacted by utility outages driven by major weather events in the Houston, Texas region. We have entered into commitments to transfer a portion of the Renewable Identification Numbers (“RINs”) we expect to generate from 2024 fourth quarter production at an average price of approximately
Third Quarter Financial Results
Total revenues in the third quarter of 2024 were
Third Quarter Operational Results
We produced approximately 1.4 million MMBtu of RNG in the third quarter of 2024, flat compared to 1.4 million in the third quarter of 2023. For the second consecutive quarter, our Texas facilities were impacted by severe weather causing widespread, multi-day utility power outages and we estimate the loss in production was approximately 50 thousand MMBtu in the third quarter of 2024. Our Pico facility produced 27 thousand MMBtu more in the third quarter of 2024 as compared to the third quarter of 2023 due to the commissioning of our digestion expansion project. We produced approximately 41 thousand megawatt hours (“MWh”) in Renewable Electricity in the third quarter of 2024, a decrease of 7 thousand MWh compared to 48 thousand MWh produced in the third quarter of 2023. Our Security facility produced approximately 5 thousand MWh less in the third quarter of 2024 compared to the third quarter of 2023 due to the first quarter of 2024 sale of the gas rights back to the landfill host.
Revised 2024 Full Year Outlook
- RNG revenues are expected to range between
$175 and$185 million
- RNG production volumes are expected to range between 5.5 and 5.7 million MMBtu
- Renewable Electricity revenues are expected to range between
$17.0 and$18.0 million
- Renewable Electricity production volumes are expected to range between 180 and 185 thousand MWh
In the third quarter of 2024, we began to experience trends with several of our landfill hosts delaying their installation of or delaying our ability to install wellfield collection infrastructure in active waste placement areas, a practice historically common and critical to our projections of feedstock gas and, therefore, production. These landfill-driven delays will impact the timing of collection system enhancement installations and the resulting timing of our production increases. We expect these trends to continue through 2025.
We record revenues from the production and sale of RNG and the generation and sale of the Environmental Attributes derived from RNG, such as RINs and LCFS credits. Our RNG revenues from Environmental Attributes are recorded net of a portion of Environmental Attributes shared with off-take counterparties as consideration for such counterparties using the RNG as a transportation fuel. We have certain pathway provider sharing arrangements expiring at the end of 2024. While we have not experienced a significant increase in Environmental Attributes shared with pathway providers related to our current renewals in 2024, our current pathway renewals have been at higher percentages than our historical counterparty share percentages. We are seeing current proposed pathway renewals for percentages significantly higher than our historical arrangements. Historically, we have monetized less than
Given the recent heightened level of uncertainty regarding attribute generation pathways, we are considering limiting our near-term 2025 RNG outlook guidance to production only.
Conference Call Information
The Company will host a conference call today at 5:00 p.m. ET to discuss results. Access for the conference call will be available via the following link:
Please register for the conference call and webcast using the above link in advance of the call start time. The webcast platform will register your name and organization as well as provide dial-ins numbers and a unique access pin. The conference call will be broadcast live and be available for replay at https://edge.media-server.com/mmc/p/wz7u4uaz/ and on the Company’s website at https://ir.montaukrenewables.com after 8:00 p.m. Eastern time on the same day through November 12, 2025.
Use of Non-GAAP Financial Measures
This press release and the accompanying tables include references to EBITDA and Adjusted EBITDA, which are Non-GAAP financial measures. We present EBITDA and Adjusted EBITDA because we believe the measures assist investors in analyzing our performance across reporting periods on a consistent basis by excluding items that we do not believe are indicative of our core operating performance.
In addition, EBITDA and Adjusted EBITDA are financial measurements of performance that management and the board of directors use in their financial and operational decision-making and in the determination of certain compensation programs. EBITDA and Adjusted EBITDA are supplemental performance measures that are not required by or presented in accordance with GAAP. EBITDA and Adjusted EBITDA should not be considered alternatives to net (loss) income or any other performance measure derived in accordance with GAAP, or as an alternative to cash flows from operating activities or a measure of our liquidity or profitability.
About Montauk Renewables, Inc.
Montauk Renewables, Inc. (NASDAQ: MNTK) is a renewable energy company specializing in the management, recovery and conversion of biogas into RNG. The Company captures methane, preventing it from being released into the atmosphere, and converts it into either RNG or electrical power for the electrical grid (“Renewable Electricity”). The Company, headquartered in Pittsburgh, Pennsylvania, has more than 30 years of experience in the development, operation and management of landfill methane-fueled renewable energy projects. The Company has operations at 14 projects and ongoing development projects located in California, Idaho, Ohio, Oklahoma, Pennsylvania, North Carolina, South Carolina, and Texas. The Company sells RNG and Renewable Electricity, taking advantage of Environmental Attribute premiums available under federal and state policies that incentivize their use. For more information, visit https://ir.montaukrenewables.com
Company Contact:
John Ciroli
Chief Legal Officer (CLO) & Secretary
investor@montaukrenewables.com
(412) 747-8700
Investor Relations Contact:
Georg Venturatos
Gateway Investor Relations
MNTK@gateway-grp.com
(949) 574-3860
Safe Harbor Statement
This release contains “forward-looking statements” within the meaning of U.S. federal securities laws that involve substantial risks and uncertainties. All statements other than statements of historical or current fact included in this report are forward-looking statements. Forward-looking statements refer to our current expectations and projections relating to our financial condition, results of operations, plans, objectives, strategies, future performance, and business. Forward-looking statements may include words such as “anticipate,” “assume,” “believe,” “can have,” “contemplate,” “continue,” “strive,” “aim,” “could,” “design,” “due,” “estimate,” “expect,” “forecast,” “goal,” “intend,” “likely,” “may,” “might,” “objective,” “plan,” “predict,” “project,” “potential,” “seek,” “should,” “target,” “will,” “would,” and other words and terms of similar meaning in connection with any discussion of the timing or nature of future operational performance or other events. For example, all statements we make relating to our future results of operations, financial condition, expectations and plans, including those related to the Montauk Ag project in North Carolina, the Second Apex RNG Facility, the Blue Granite RNG Facility, the Bowerman RNG Facility, the delivery of biogenic carbon dioxide volumes to European Energy, the Emvolon collaboration and pilot project, the resolution of gas collection issues at the McCarty facility, the delays and cancellations of landfill host wellfield expansion projects, the mitigation of wellfield extraction environmental factors at the Rumpke and Apex facilities, how we may monetize RNG production and weather-related anomalies are forward-looking statements. All forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those that we expect and, therefore, you should not unduly rely on such statements. The risks and uncertainties that could cause those actual results to differ materially from those expressed or implied by these forward-looking statements include but are not limited to: our ability to develop and operate new renewable energy projects, including with livestock farms, and related challenges associated with new projects, such as identifying suitable locations and potential delays in acquisition financing, construction, and development; reduction or elimination of government economic incentives to the renewable energy market, whether as a result of the new presidential administration or otherwise; the inability to complete strategic development opportunities; widespread manmade, natural and other disasters (including severe weather events), health emergencies, dislocations, geopolitical instabilities or events, terrorist activities, international hostilities, government shutdowns, political elections, security breaches, cyberattacks or other extraordinary events that impact general economic conditions, financial markets and/or our business and operating results; taxes, tariffs, duties or other assessments on equipment necessary to generate or deliver renewable energy or continued inflation could raise our operating costs or increase the construction costs of our existing or new projects; rising interest rates could increase the borrowing costs of future indebtedness; the potential failure to attract and retain qualified personnel of the Company or a possible increased reliance on third-party contractors as a result, and the potential unenforceability of non-compete clauses with our employees; the length of development and optimization cycles for new projects, including the design and construction processes for our renewable energy projects; dependence on third parties for the manufacture of products and services and our landfill operations; the quantity, quality and consistency of our feedstock volumes from both landfill and livestock farm operations; reliance on interconnections with and access to electric utility distribution and transmission facilities and gas transportation pipelines for our Renewable Natural Gas and Renewable Electricity Generation segments; our ability to renew pathway provider sharing arrangements at historical counterparty share percentages; our projects not producing expected levels of output; potential benefits associated with the combustion-based oxygen removal condensate neutralization technology; concentration of revenues from a small number of customers and projects; our outstanding indebtedness and restrictions under our credit facility; our ability to extend our fuel supply agreements prior to expiration; our ability to meet milestone requirements under our power purchase agreements; existing regulations and changes to regulations and policies that effect our operations, whether as a result of the new presidential administration or otherwise; expected benefits from the extension of the Production Tax Credit and other tax credit benefits under the Inflation Reduction Act of 2022; decline in public acceptance and support of renewable energy development and projects, or our inability to appropriately address environmental, social and governance targets, goals, commitments or concerns, including climate-related disclosures; our expectations regarding Environmental Attribute volume requirements and prices and commodity prices; our expectations regarding the period during which we qualify as an emerging growth company under the Jumpstart Our Business Startups Act (“JOBS Act”); our expectations regarding future capital expenditures, including for the maintenance of facilities; our expectations regarding the use of net operating losses before expiration; our expectations regarding more attractive carbon intensity scores by regulatory agencies for our livestock farm projects; market volatility and fluctuations in commodity prices and the market prices of Environmental Attributes and the impact of any related hedging activity; regulatory changes in federal, state and international environmental attribute programs and the need to obtain and maintain regulatory permits, approvals, and consents; profitability of our planned livestock farm projects; sustained demand for renewable energy; potential liabilities from contamination and environmental conditions; potential exposure to costs and liabilities due to extensive environmental, health and safety laws; impacts of climate change, changing weather patterns and conditions, and natural disasters; failure of our information technology and data security systems; increased competition in our markets; continuing to keep up with technology innovations; concentrated stock ownership by a few stockholders and related control over the outcome of all matters subject to a stockholder vote; and other risks and uncertainties detailed in the section titled “Risk Factors” in our latest Annual Report on Form 10-K and as otherwise disclosed in our filings with the SEC.
We make many of our forward-looking statements based on our operating budgets and forecasts, which are based upon detailed assumptions. While we believe that our assumptions are reasonable, we caution that it is very difficult to predict the impact of known factors, and it is impossible for us to anticipate all factors that could affect our actual results. All forward-looking statements attributable to us are expressly qualified in their entirety by these cautionary statements as well as others made in our Securities and Exchange Commission filings and public communications. You should evaluate all forward-looking statements made by us in the context of these risks and uncertainties. The forward-looking statements included herein are made only as of the date hereof. We undertake no obligation to publicly update or revise any forward-looking statement as a result of new information, future events, or otherwise, except as required by law.
| MONTAUK RENEWABLES, INC. | |||||||
| CONSOLIDATED BALANCE SHEETS | |||||||
| (Unaudited) | |||||||
| (in thousands, except per share data) | |||||||
| ASSETS | as of September 30, 2024 | as of December 31, 2023 | |||||
| Current assets: | |||||||
| Cash and cash equivalents | $ | 54,973 | $ | 73,811 | |||
| Accounts and other receivables | 19,217 | 12,752 | |||||
| Current restricted cash | 82 | 8 | |||||
| Current portion of derivative instruments | 428 | 785 | |||||
| Prepaid expenses and other current assets | 4,576 | 2,819 | |||||
| Total current assets | $ | 79,276 | $ | 90,175 | |||
| Non-current restricted cash | $ | 374 | $ | 423 | |||
| Property, plant and equipment, net | 249,845 | 214,289 | |||||
| Goodwill and intangible assets, net | 18,460 | 18,421 | |||||
| Deferred tax assets | 33 | 2,076 | |||||
| Non-current portion of derivative instruments | 179 | 470 | |||||
| Operating lease right-of-use assets | 4,054 | 4,313 | |||||
| Finance lease right-of-use assets | 129 | 36 | |||||
| Related party receivable | 10,168 | 10,138 | |||||
| Other assets | 11,600 | 9,897 | |||||
| Total assets | $ | 374,118 | $ | 350,238 | |||
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
| Current liabilities: | |||||||
| Accounts payable | $ | 10,154 | $ | 7,916 | |||
| Accrued liabilities | 15,763 | 12,789 | |||||
| Income tax payable | 1,584 | 313 | |||||
| Current portion of operating lease liability | 457 | 420 | |||||
| Current portion of finance lease liability | 71 | 26 | |||||
| Current portion of long-term debt | 10,868 | 7,886 | |||||
| Total current liabilities | $ | 38,897 | $ | 29,350 | |||
| Long-term debt, less current portion | 46,719 | 55,614 | |||||
| Non-current portion of operating lease liability | 3,849 | 4,133 | |||||
| Non-current portion of finance lease liability | 58 | 10 | |||||
| Asset retirement obligations | 6,226 | 5,900 | |||||
| Other liabilities | 3,032 | 4,992 | |||||
| Total liabilities | $ | 98,781 | $ | 99,999 | |||
| STOCKHOLDERS’ EQUITY | |||||||
| Common stock, | 1,425 | 1,420 | |||||
| Treasury stock, at cost, 1,315,403 and 984,762 shares September 30, 2024 and December 31, 2023, respectively | (12,882 | ) | (11,173 | ) | |||
| Additional paid-in capital | 222,994 | 214,378 | |||||
| Retained earnings | 63,800 | 45,614 | |||||
| Total stockholders' equity | 275,337 | 250,239 | |||||
| Total liabilities and stockholders' equity | $ | 374,118 | $ | 350,238 | |||
| MONTAUK RENEWABLES, INC. | |||||||||||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||
| (Unaudited) | |||||||||||||||
| (in thousands, except per share data) | For the three months ended September 30, | For the nine months ended September 30, | |||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Total operating revenues | $ | 65,917 | $ | 55,688 | $ | 148,042 | $ | 128,097 | |||||||
| Operating expenses: | |||||||||||||||
| Operating and maintenance expenses | 15,484 | 14,212 | 48,596 | 43,614 | |||||||||||
| General and administrative expenses | 10,037 | 7,848 | 28,202 | 26,069 | |||||||||||
| Royalties, transportation, gathering and production fuel | 11,107 | 11,450 | 26,702 | 25,588 | |||||||||||
| Depreciation, depletion and amortization | 6,048 | 5,346 | 17,305 | 15,792 | |||||||||||
| Impairment loss | 533 | 51 | 1,232 | 777 | |||||||||||
| Transaction costs | - | - | 61 | 86 | |||||||||||
| Total operating expenses | $ | 43,209 | $ | 38,907 | $ | 122,098 | $ | 111,926 | |||||||
| Operating income | $ | 22,708 | $ | 16,781 | $ | 25,944 | $ | 16,171 | |||||||
| Other expenses (income): | |||||||||||||||
| Interest expense | $ | 1,835 | $ | 1,295 | $ | 4,285 | $ | 3,681 | |||||||
| Other income | (140 | ) | (256 | ) | (1,249 | ) | (340 | ) | |||||||
| Total other expenses | $ | 1,695 | $ | 1,039 | $ | 3,036 | $ | 3,341 | |||||||
| Income before income taxes | $ | 21,013 | $ | 15,742 | $ | 22,908 | $ | 12,830 | |||||||
| Income tax expense | 3,965 | 2,808 | 4,722 | 2,681 | |||||||||||
| Net income | $ | 17,048 | $ | 12,934 | $ | 18,186 | $ | 10,149 | |||||||
| Income per share: | |||||||||||||||
| Basic | $ | 0.12 | $ | 0.09 | $ | 0.13 | $ | 0.07 | |||||||
| Diluted | $ | 0.12 | $ | 0.09 | $ | 0.13 | $ | 0.07 | |||||||
| Weighted-average common shares outstanding: | |||||||||||||||
| Basic | 142,410,940 | 141,717,612 | 142,156,540 | 141,661,790 | |||||||||||
| Diluted | 142,620,332 | 142,299,875 | 142,331,541 | 142,000,827 | |||||||||||
| MONTAUK RENEWABLES, INC. | |||||||
| CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||
| (Unaudited) | |||||||
| (in thousands): | |||||||
| For the nine months ended September 30, | |||||||
| 2024 | 2023 | ||||||
| Cash flows from operating activities: | |||||||
| Net income | $ | 18,186 | $ | 10,149 | |||
| Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
| Depreciation, depletion and amortization | 17,305 | 15,792 | |||||
| Provision for deferred income taxes | 2,044 | 1,786 | |||||
| Stock-based compensation | 8,616 | 5,995 | |||||
| Derivative mark-to-market adjustments and settlements | 648 | (160 | ) | ||||
| Net loss on sale of assets | 72 | 37 | |||||
| (Decrease) increase in earn-out liability | (1,744 | ) | 959 | ||||
| Accretion of asset retirement obligations | 333 | 304 | |||||
| Liabilities associated with properties sold | (225 | ) | — | ||||
| Amortization of debt issuance costs | 270 | 276 | |||||
| Impairment loss | 1,232 | 777 | |||||
| Changes in operating assets and liabilities: | |||||||
| Accounts and other receivables and other current assets | (9,997 | ) | (18,123 | ) | |||
| Accounts payable and other accrued expenses | 6,331 | 1,795 | |||||
| Net cash provided by operating activities | $ | 43,071 | $ | 19,587 | |||
| Cash flows from investing activities: | |||||||
| Capital expenditures | $ | (53,334 | ) | $ | (45,406 | ) | |
| Asset acquisition | (820 | ) | — | ||||
| Cash collateral deposits | 25 | 2 | |||||
| Net cash used in investing activities | $ | (54,129 | ) | $ | (45,404 | ) | |
| Cash flows from financing activities: | |||||||
| Repayments of long-term debt | $ | (6,000 | ) | $ | (6,000 | ) | |
| Common stock issuance | $ | 5 | $ | - | |||
| Treasury stock purchase | $ | (1,709 | ) | $ | - | ||
| Finance lease payments | (51 | ) | (54 | ) | |||
| Net cash used in financing activities | $ | (7,755 | ) | $ | (6,054 | ) | |
| Net decrease in cash and cash equivalents and restricted cash | $ | (18,813 | ) | $ | (31,871 | ) | |
| Cash and cash equivalents and restricted cash at beginning of period | $ | 74,242 | $ | 105,606 | |||
| Cash and cash equivalents and restricted cash at end of period | $ | 55,429 | $ | 73,735 | |||
| Reconciliation of cash, cash equivalents, and restricted cash at end of period: | |||||||
| Cash and cash equivalents | $ | 54,973 | $ | 73,304 | |||
| Restricted cash and cash equivalents - current | 82 | 22 | |||||
| Restricted cash and cash equivalents - non-current | 374 | 409 | |||||
| $ | 55,429 | $ | 73,735 | ||||
| Supplemental cash flow information: | |||||||
| Cash paid for interest | $ | 3,895 | $ | 3,713 | |||
| Cash paid for income taxes | 1,407 | 1,034 | |||||
| Accrual for purchase of property, plant and equipment included in accounts payable and accrued liabilities | 6,928 | 2,595 | |||||
| MONTAUK RENEWABLES, INC. | |||||||
| NON-GAAP FINANCIAL MEASURES | |||||||
| (Unaudited) | |||||||
| (in thousands): | |||||||
| The following table provides our EBITDA and Adjusted EBITDA, as well as a reconciliation to net income which is the most directly comparable GAAP measure for the three and nine months ended September 30, 2024 and 2023, respectively: | |||||||
| For the three months ended September 30, | |||||||
| 2024 | 2023 | ||||||
| Net income | $ | 17,048 | $ | 12,934 | |||
| Depreciation, depletion and amortization | 6,048 | 5,346 | |||||
| Interest expense | 1,835 | 1,295 | |||||
| Income tax expense | 3,965 | 2,808 | |||||
| Consolidated EBITDA | 28,896 | 22,383 | |||||
| Impairment loss | 533 | 51 | |||||
| Net loss on sale of assets | 1 | — | |||||
| Adjusted EBITDA | $ | 29,430 | $ | 22,434 | |||
| For the nine months ended September 30, | |||||||
| 2024 | 2023 | ||||||
| Net income | $ | 18,186 | $ | 10,149 | |||
| Depreciation, depletion and amortization | 17,305 | 15,792 | |||||
| Interest expense | 4,285 | 3,681 | |||||
| Income tax expense | 4,722 | 2,681 | |||||
| Consolidated EBITDA | 44,498 | 32,303 | |||||
| Impairment loss | 1,232 | 777 | |||||
| Net loss on sale of assets | 72 | 37 | |||||
| Transaction Costs | 61 | 86 | |||||
| Adjusted EBITDA | $ | 45,863 | $ | 33,203 | |||
FAQ
What was Montauk Renewables (MNTK) revenue in Q3 2024?
How many RINs did MNTK sell in Q3 2024?
What is MNTK's RNG production guidance for 2024?
How did Hurricane Beryl affect MNTK's Q3 2024 production?
