Montauk Renewables, Inc. Q1 FY2026 earnings call

• Galveston facility produced 41,000 MMBTU fewer in Q1 2026 vs Q1 2025 due to landfill host assuming ops and maintenance. Atascosita facility produced 43,000 MMBTU more in Q1 2026 vs Q1 2025 due to landfill host well-filled operational collection system enhancement. APEX facility produced 37,000 MMBTU more in Q1 2026 vs Q1 2025 due to second facility commissioning and feedstock gas increase. McCarty facility produced 88,000 MMBTU fewer in Q1 2026 vs Q1 2025 due to wellfield bifurcation and collection system changes. - On March 9, 2026, entered into a five-year new security credit facility with HAZI for up to $200 million in senior indebtedness, used to repay outstanding debt. - Capital expenditures in first three months of 2026 were $38.6 million, with $33.1 million and $1.8 million related to Montauk Ag Renewables and Bowerman R&G facility respectively.

Renewable Natural Gas Segment: In Q1 2026, revenues were 38.1 million, a decrease of 0.4 million or 1% compared to Q1 2025. Average commodity pricing for natural gas was 38.1% higher. Self-marketed 12.4 million RINs, a 2.5 million increase or 25.5% vs 9.9 million in Q1 2025. Average RIN sales price was $2.42 vs $2.46 in Q1 2025, a decrease of 1.6%. Operating and maintenance expenses were 14.4 million, an increase of 0.3 million or 1.8% vs 14.1 million in Q1 2025. Renewable Electricity Segment: Produced approximately 43,000 megawatt hours in Q1 2026, a decrease of approximately 3,000 megawatt hours or 6.5% vs 46,000 megawatt hours in Q1 2025. Revenues were $4.1 million, a decrease of $0.1 million or 0.8% vs $4.2 million in Q1 2025. Operating and maintenance expenses were $4.5 million, an increase of $1.1 million or 33.8% vs $3.4 million in Q1 2025.

• Reaffirming RNG production volumes to range between 5.8 and 6 million MMVTU, with corresponding RNG revenues to range between 175 and 190 million. - Reaffirming renewable electricity production volumes to range between 195 and 207,000 megawatt hours, with updated corresponding renewable electricity revenues to range between 33 and 37 million.

Q: Talk a little bit about the fixed price contract that appeared to have rolled off and prospect for renewing it.

A: Rolling off of the fixed price contract is consistent with moving R&G volumes into transportation markets, with quarter-over-quarter reduction in RINs shared with counterparties, yielding increases in RINs sold in 2026 over 2025.

Q: Talk about Montauk Ag Renewables and revenue generation pushed out by about a month.

A: Adjustment to revenue guidance is solely attributed to the timing of commissioning completed at the end of April instead of end of first quarter with revenue commencement activities starting in May instead of April.

Q: Talk about ramp profile of North Carolina project coming online.

A: Ramp throughout 2026 is contingent upon getting caught up and meeting internal expectations associated with on-farm installation related to feedstock collection and transportation to production facility, with weather delays delaying some installation of farm collection equipment and dewatering equipment