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Dec 31, 2024
Montauk Renewables Q4 2024 Earnings Report
Montauk Renewables reported a slight increase in full-year revenues, a decrease in net income, and a decrease in adjusted EBITDA for the year ended December 31, 2024.
Key Takeaways
Montauk Renewables experienced a flat revenue year-over-year at $175.7 million, a 34.9% decrease in net income to $9.7 million, and an 8.3% decrease in Non-GAAP Adjusted EBITDA to $42.6 million for the full year 2024. RNG production increased by 1.6% to 5.6 million MMBtu, while RINs sold decreased by 18.5%.
Revenues remained flat year-over-year at $175.7 million.
Net income decreased by 34.9% to $9.7 million.
Non-GAAP Adjusted EBITDA decreased by 8.3% to $42.6 million.
RNG production increased by 1.6% to 5.6 million MMBtu.
Montauk Renewables
Montauk Renewables
Forward Guidance
Montauk Renewables anticipates RNG revenues between $150 million and $170 million, and RNG production volumes between 5.8 million and 6.0 million MMBtu for the full year 2025. Renewable Electricity revenues are expected to be between $17.0 million and $18.0 million, with production volumes between 178 thousand and 186 thousand MWh.
Positive Outlook
- RNG revenues are expected to range between $150 million and $170 million.
- RNG production volumes are expected to range between 5.8 million and 6.0 million MMBtu.
- Renewable Electricity revenues are expected to range between $17.0 million and $18.0 million.
- Renewable Electricity production volumes are expected to range between 178 thousand and 186 thousand MWh.
- Second facility at Apex site expected to be commissioned during Q2 2025.
Challenges Ahead
- No specific negative forward guidance was provided in the report beyond general market and regulatory risks.
- The D3 RIN index volatility and EPA regulatory uncertainty impacted RIN sales in 2024, which could persist.
- Profitability is highly dependent on the market price of environmental attributes, including RINs.
- The company's decision not to commit to transfer available RINs during certain periods can impact revenue and operating profit.
- The Tulsa facility project, with a targeted commissioning date in 2027, will require significant capital investment ranging from $25.0 million to $35.0 million.