Montauk Renewables, Inc. Q2 FY2025 earnings call

• EPA released partial waiver of 2024 cellulosic biofuel volume requirement, and proposed rules for 2025, 2026, 2027. The final 2024 cellulosic biofuel volume requirement was reduced. - Entered into joint venture GreenWave Energy Partners with Pioneer Renewables Energy Marketing to address limited RNG utilization capacity for transportation. - Continue development in North Carolina, expect to commence production and revenue generation in early 2026, refined focus on swine waste and electricity generation. - Successfully completed construction and commissioning of second RNG processing facility at Apex landfill. - Signed contract for annual delivery of biogenic carbon dioxide, estimate total revenues under 15-year term to range between $170 million to $201 million. - Collaboration with Emvolon to transform biogas into green methanol, initial pilot exceeded expectations, plan to deploy portfolio of biogas sites by 2030.

Renewable Natural Gas segment: Revenues were $40.8 million in the second quarter of 2025, an increase of $2.0 million or 5.1% compared to $38.8 million in the second quarter of 2024. Produced 1.4 million MMBtu of RNG, flat compared to the second quarter of 2024. Operating and maintenance expenses were $17.0 million, an increase of $3.1 million or 22% compared to $13.9 million in the second quarter of 2024. Renewable Electricity segment: Revenues were $4.3 million in the second quarter of 2025, a decrease of $0.2 million or 4.5% compared to $4.5 million in the second quarter of 2024. Produced approximately 42,000 megawatt hours in renewable electricity, a decrease of approximately 3,000 megawatt hours or 6.7% compared to the second quarter of 2024. Operating and maintenance expenses were $4.8 million, an increase of $0.1 million or 2% compared to $4.7 million in the second quarter of 2024.

• Reaffirm full year 2025 outlook provided in May 2025. - Expect RNG production volumes to range between 5.8 million and 6 million MMBtus with corresponding RNG revenues to range between $150 million and $170 million. - Expect 2025 Renewable Electricity production volumes to range between 178,000 and 186,000 megawatt hours with corresponding revenues to range between $17 million and $18 million.

• EPA rule making associated with implementation of BRRR K2 separation and extension of 2024 RIN compliance period may impact RIN pricing. - Uncertainty regarding cellulosic RIN generation from biogas, CNG, LNG during 2026 to 2030 constrained by transportation fuel usage capacity. - Project execution uncertainties in North Carolina and other development projects.

Q: When might you get a better understanding of the expansion potential in the North Carolina Ag swine project? And what are you most excited about in the company's projects?

A: Sean F. McClain said the project has directional flexibility with economy of scale potential, and is working with local municipalities for tax credit/incentive opportunities. He is excited about all projects including landfill RNG conversion, electric gen opportunities, biogenic CO2 production, and methanol production projects.