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Sep 30, 2024
Montauk Renewables Q3 2024 Earnings Report
Montauk Renewables reported an increase in revenue and net income for the third quarter of 2024.
Key Takeaways
Montauk Renewables announced strong third-quarter results, with an 18.4% increase in revenues to $65.9 million and a 31.8% increase in net income to $17.0 million compared to the third quarter of 2023. The company's RNG production remained flat at 1.4 million MMBtu, while RINs sold increased by 14.5%.
RINs sold increased by 14.5% compared to Q3 2023, reaching 15.8 million.
Revenues increased by 18.4% to $65.9 million compared to Q3 2023.
Net Income increased by 31.8% to $17.0 million compared to Q3 2023.
Non-GAAP Adjusted EBITDA increased by 31.3% to $29.4 million compared to Q3 2023.
Montauk Renewables
Montauk Renewables
Forward Guidance
Montauk Renewables provided its revised full year outlook for 2024.
Positive 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
- The company is considering entry into multiple short term contracts throughout 2025 to mitigate recent market trends.
Challenges Ahead
- Landfill hosts are delaying installation of wellfield collection infrastructure, impacting feedstock gas and production.
- These landfill-driven delays are expected to continue through 2025.
- Current pathway renewals have been at higher percentages than historical counterparty share percentages.
- Proposed pathway renewals are for percentages significantly higher than historical arrangements.
- The company is considering limiting its near-term 2025 RNG outlook guidance to production only due to uncertainty regarding attribute generation pathways.