Montauk Renewables Reports Q2 2026 Results: Full Earnings Call Transcript

Montauk Renewables (NASDAQ: MNTK ) held its second-quarter earnings conference call on Thursday. Below is the complete transcript from the call. This transcript is brought to you APIs. For real-time access to our entire catalog, please visit for a consultation.

0 million for Q2 2026, driven by environmental attribute revenues, notably RIN sales. The company completed power generation installations at its Turkey, North Carolina facility, aiming to enhance REC generation and power production by mid-August. Long-term agreements have been secured with over 50 farming locations for feedstock collection, with a capital investment expectation of $200 million for the first phase. 5 million in RINs, aligning with strategic initiatives to expand RNG transportation pathways.

3 million, reflecting improved operational efficiency and strategic investments. 0 million MMBtu, with projected revenues between $175 and $190 million. Full Transcript OPERATOR Good day everyone, and thank you for participating in the Montauk Renewables second quarter 2026 conference call today. I'd like to turn the call over to Mr.

John Ciroli, Chief Legal Officer and Corporate Secretary, as he provides some important cautions regarding forward-looking statements and non-GAAP financial measures contained in the earnings materials made on this call. John, please go ahead. John Ciroli, Chief Legal Officer & Corporate Secretary Thank you, and good day everyone. Welcome to Montauk Renewables' earnings conference call to review the second quarter 2026 financial and operating results and developments.

I'm John Ciroli, Chief Legal Officer and Corporate Secretary at Montauk. Joining me today are Sean McClain, Montauk's President and Chief Executive Officer, to discuss business developments, and Kevin Van Asdalan, Chief Financial Officer, to discuss our second quarter 2026 financial and operating results. At this time, I would like to direct your attention to our forward-looking disclosure statement.

During this call, certain comments we make constitute forward-looking statements and, as such, involve a number of assumptions, risks, and uncertainties that could cause the Company's actual results or performance to differ materially from those expressed in or implied by such forward-looking statements. These risk factors and uncertainties are detailed in Montauk Renewables' SEC filings. Our remarks today may also include non-GAAP financial measures.

We present EBITDA and Adjusted EBITDA metrics 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. These non-GAAP financial measures are not prepared in accordance with Generally Accepted Accounting Principles. com. After our remarks we will open the call to analyst questions.

We ask that you please keep one question to accommodate as many questions as possible, and with that I will turn the call over to Sean. Sean McClain, President and Chief Executive Officer Thank you, John. Good day everyone, and thank you for joining our call. In July 2026, we began generating power for sale from our Turkey, North Carolina facility.

This production of power is expected to be eligible to generate both swine RECs and enhanced RECs in subsequent months. As we work to increase the volumes of power and RECs that are able to be generated from our volume of produced syngas, we have identified specific programming modifications to our installed electrical switchgear. The installation of these modifications will provide for both the increase in production volumes as well as enhanced protection for our processing equipment and electrical transformers. We expect to have all programming completed by mid-August and consistently generate power and RECs from all available collected feedstock volumes.

We continue to progress negotiations with entities that are required to purchase RECs under the North Carolina Clean Energy and Portfolio Standard. In addition to our existing REC contract with Duke, we also continue to progress our installation of feedstock collection at our contracted farming locations. As of the end of July, we have entered into long-term agreements with over 50 separate farming locations providing us access to over 350,000 of the 400,000 to 450,000 hog spaces we are targeting to fully supply our first phase of development.

We are currently able to collect for more than 250,000 hog spaces and will continue farm site collection equipment installations during the second half of 2026. Our capital investment expectation for the first phase of this project remains unchanged at $200 million, and we continue to expect a ramp-up in production volumes throughout 2026 directly related to additional feedstock collection. Our joint venture, Greenwave, continues to address the limited capacity of RNG utilization for transportation by offering third-party RNG volumes access to unique and proprietary transportation pathways.

Greenwave matches available dispensing capacity with available third-party volumes and separates and distributes RINs to the partners of Greenwave. 5 million in separated RINs distributed from Greenwave in the second quarter of 2026. While our recent development focus has been prioritized on achieving and increasing production and revenue at our Turkey, North Carolina facility, we continue thoughtful and measured progress with our other announced development opportunities and expect to share those progress updates throughout the second half of 2026. And with that I will turn the call over to Kevin.

Kevin Van Asdalan, Chief Financial Officer Thank you, Sean. I will be discussing our second quarter 2026 financial and operating results. Please refer to our earnings press release, Form 10-Q, and the supplemental slides that have been posted to our website for additional information. Our profitability is highly dependent on the market price of environmental attributes, including the market price for RINs, as we self-market a significant portion of our RINs.

A decision not to commit to transfer available RINs during a period will impact our revenue and operating profit. 66. 64. 1 million in the second quarter of 2025.

4 million from RINs sold related to the distribution of RINs from our Greenwave joint venture and RINs related to pathway dispensing. We had no RINs distributed and sold from Greenwave in the second quarter of 2025. Our second quarter of 2026 RNG volumes sold under fixed floor price contracts decreased approximately 80% as compared to our second quarter of 2025. 7%.

1%. 4% as a result of the transition to the Biogas Regulatory Reform Rule in 2025. 6 million from certain restricted share awards in 2025 due to the termination of an employee. Turning to our segment operating metrics, I'll begin by reviewing our renewable natural gas segment.

4 million MMBtu during the second quarter of 2025. Our McCarty facility produced 53,000 MMBtu more in the second quarter of 2026 compared to the second quarter of 2025 as a result of landfill host well field operational and collection system enhancements. Our APEX facility produced 39,000 MMBtu more in the second quarter of 2026 as compared to the second quarter of 2025 as a result of increased feedstock gas from our improvements related to the landfill collection system.

Our Galveston facility produced 26,000 MMBtu fewer in the second quarter of 2026 compared to the second quarter of 2025 as a result of the landfill host assuming responsibility of well field operations and maintenance beginning in 2026. Our Atascocita facility produced 37,000 fewer MMBtu in the second quarter of 2026 compared to the second quarter of 2025 as a result of landfill host well field operational collection system enhancement project timing as well as planned facility maintenance. 8 million during the second quarter of 2025. 7% lower than the second quarter of 2025.

1 million RINs self-marketed during the second quarter of 2025. 2%. 6% higher than the average D3 index price for the second quarter of 2025. 1 million RINs generated but unseparated, and no RINs separated and unsold.

1 million RINs separated and unsold. 0 million during the second quarter of 2025. 9 million, primarily related to the timing of maintenance related to gas processing equipment. 5 million, primarily related to timing of the gas processing preventative maintenance.

8%, compared to 42,000 megawatt hours during the second quarter of 2025. Our Bowerman facility produced approximately 3,000 megawatt hours more in the second quarter of 2026 compared to the second quarter of 2025. The increase is primarily related to increased gas flows due to landfill host well field improvements. 3 million in the second quarter of 2025.

The increase was primarily driven by the increase in production volumes. 8 million during the second quarter of 2025. 2 million at our Montauk AG Renewables project in Turkey, North Carolina. 7 million, primarily related to decreased well field operational costs and timing of gas processing preventative maintenance.

3 million in the second quarter of 2026 related to the cost of RINs distributed from Greenwave when sold and the cost related to pathway dispensing associated with the dispensing of RNG. There were no such expenses incurred during the second quarter of 2025. 4 million in the second quarter of 2025. The increase relates specifically to identified discrete or non-operable assets.

We did not record any impairments during the second quarter of 2026 related to our estimate of future cash flows. 4 million for the second quarter of 2025. 2 million for the second quarter of 2025. 3 million for the second quarter of 2025.

3 million in the second quarter of 2025. 8 million in income related to our joint venture investment in Greenwave. There was no such income reported during the second quarter of 2025. 5 million in RINs distributed from Greenwave.

8 million. Additional information on Greenwave can be found in the supplemental slides that have been posted to our website. Turning to the balance sheet: At June 30, 2026, $155 million was outstanding under our new senior credit facility with Hazy. Our financial debt covenants commenced June 30, 2026, and as of June 30, 2026, we are in compliance with all applicable financial covenants under this facility.

6 million were related to our ongoing development of Montauk AG Renewables and our Bowerman RNG facility, respectively. 3 million in capital expenditures included within our accounts payable or accrued liabilities at June 30, 2026. 8 million. Our new senior credit facility with Hazy requires us to meet quarterly liquidity balances as defined in the underlying agreement.

6 million as of June 30, 2026. We do not believe we have any collectability issues within our receivables balances. As of June 30, 2026, we held no RINs distributed from Greenwave in inventory on our balance sheet. 0 million for the second quarter of 2025.

6 million for the second quarter of 2025. 5 million for the second quarter of 2025. I'll now turn the call back over to Sean. Sean McClain, President and Chief Executive Officer Thank you, Kevin.

In closing, and although we don't provide guidance as to our internal expectations on the market price of environmental attributes, including the market price of D3 RINs, we would like to provide our full year 2026 outlook. 0 million MMBtu, with corresponding RNG revenues to range between $175 and $190 million. We expect our renewable electricity production volumes to range between 185,000 and 195,000 megawatt hours, with corresponding renewable electricity revenues to range between $23 and $26 million, which is reflective of our current expectations of production at our Montauk AG Renewables facility in Turkey, North Carolina.

And with that we will pause for any questions. OPERATOR Thank you. At this time we will conduct the question-and-answer session. As a reminder, to ask a question, you will need to press star 11 on your telephone and wait for your name to be announced.

To withdraw your question, please press star 11 again. Please stand by while we compile the Q&A roster. Our first question comes from Tim Moore from Clear Street. Your line is now open.

Tim Moore, Analyst at Clear Street Thanks. Congratulations on the progress. RIN pricing seems to have stabilized the past six or seven months. It was nice to hear your commentary on the sequential increase in the third quarter.

Can you, just from your own visibility and what you're seeing, is there improved transparency in the marketplace for that compared to last year?