MNTK

Investors might want to bet on Montauk Renewables (MNTK), as earnings estimates for this company have been showing solid improvement lately. The stock has already gained solid short-term price momentum, and this trend might continue with its still improving earnings outlook. Analysts' growing optimism on the earnings prospects of this renewable energy company is driving estimates higher, which should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. Our stock rating tool -- the Zacks Rank -- is principally built on this insight. The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Strong Buy) to a Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record of outperformance, with Zacks #1 Ranked stocks generating an average annual return of +25% since 2008. Consensus earnings estimates for the next quarter and full year have moved considerably higher for Montauk Renewables, as there has been strong agreement among the covering analysts in raising estimates. The chart below shows the evolution of forward 12-month Zacks Consensus EPS estimate: The earnings estimate of $0.05 per share for the current quarter represents a change of +25.0% from the number reported a year ago. Over the last 30 days, the Zacks Consensus Estimate for Montauk Renewables has increased 25% because one estimate has moved higher compared to no negative revisions. The company is expected to earn $0.12 per share for the full year, which represents a change of +1,100.0% from the prior-year number. The revisions trend for the current year also appears quite promising for Montauk Renewables, with one estimate moving higher over the past month compared to no negative revisions. The consensus estimate has also received a boost over this time frame, increasing 20%. Thanks to promising estimate revisions, Montauk Renewables currently carries a Zacks Rank #1 (Strong Buy). The Zacks Rank is a tried-and-tested rating tool that helps investors effectively harness the power of earnings estimate revisions and make the right investment decision.You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Our research shows that stocks with Zacks Rank #1 (Strong Buy) and 2 (Buy) significantly outperform the S&P 500. Montauk Renewables shares have added 24.6% over the past four weeks, suggesting that investors are betting on its impressive estimate revisions. So, you may consider adding it to your portfolio right away to benefit from its earnings growth prospects. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Montauk Renewables, Inc. (MNTK) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Image source: The Motley Fool. Thursday, Aug. 6, 2026 at 8:30 a.m. ET Chief Legal Officer and Secretary - John Ciroli President and Chief Executive Officer - Sean McClain Chief Financial Officer - Kevin Van Asdalan 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 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: 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 Secretary of 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. Additional details regarding these non-GAAP financial measures, including reconciliations to the most directly comparable GAAP financial measures can be found in our slide presentation and our second quarter 2026 earnings press release and Form 10-Q issued and filed on August 5, 2026, and which is available on our website at ir.montaukrenewables.com. After our remarks, we will open the call to analyst questions. We ask that you please keep to 1 question to accommodate as many questions as possible. And with that, I will turn the call over to Sean. Sean McClain: 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 switch gear. 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 in 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 in 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 farms -- 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 offering by third-party RNG volumes access to unique and proprietary transportation pathways. GreenWave matches is available dispensing capacity with available third-party volumes and separates and distribute RINs to the partners of GreenWave. As a result, we received approximately 1.5 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: 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. We have entered into commitments to transfer the majority of RINs generated and available for sale from our expected 2026 3rd quarter RNG production at an average RIN of $2.66. This compares to the average D3 index price for the month of July 2026 of $2.64. Total revenues in the second quarter of 2026 were $54.0 million, an increase of $8.9 million or 19.7% compared to $45.1 million in the second quarter of 2025. The increase is primarily related to environmental attribute revenues of approximately $8.4 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 lower-price contracts decreased approximately 80% as compared to our second quarter of 2025 as a result of the expiration of these contracts. Our RNG commodity revenue decreased approximately 63.7%. These decreases were offset by an increase in RINs sold of 29.1%. Our RINs generated and unseparated decreased approximately 95.4% as a result of the transition to the biogas regulatory reform rule in 2025. Total general and administrative expenses were $7.7 million for the second quarter of 2026. A decrease of $1.3 million or 15.2% compared to $9.0 million in the second quarter of 2025, driven primarily by a onetime accelerated vesting of approximately $1.6 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. We produced 1.5 million MMBtu of RNG during the second quarter of 2026, an increase of 43,000 or 3% compared to 1.4 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 wellfield 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 and as a result of landfill host -- as a result of the landfill host assuming responsibility of wellfield operations and maintenance beginning in 2026. Our Atascocita facility produced 37,000 MMBtu in the second quarter of 2026 compared to the second quarter of 2025 as a result of landfill host wellfield operational and collection system enhancement project timing as well as planned facility maintenance. Revenues from the Renewable Natural Gas segment during the second quarter of 2026 were $40.9 million, an increase of $0.1 million or 0.3% compared to $40.8 million during the second quarter of 2025. Average commodity pricing for natural gas for the second quarter of 2026 was 15.7% lower than the second quarter of 2025. In the second quarter of 2026, we self marketed 14.3 million RINs, representing a $3.2 million increase or 29.1% compared to 11.1 million RINs self marketed during the second quarter of 2025. Average pricing realized on RIN sales during the second quarter of 2026 was $2.45 as compared to $2.42 during the second quarter of 2025, an increase of 1.2%. This compares to the average D3 RIN index price for the second quarter of 2026 of $2.54 being approximately 7.6% higher than the average D3 index price for the second quarter of 2025 of $2.36. At June 30, 2026, we had approximately 0.4 million MMBtu available for RIN generation, 0.1 million RINs generated but unseparated and no RINs separated and unsold. At June 30, 2025, we had approximately 0.3 million MMBtu available for RIN generation, 3.0 million RINs generated but unseparated, and 0.1 million RINs separated and unsold. Our operating and maintenance expenses for our RNG facilities during the second quarter of 2026 were $15.6 million, a decrease of $1.4 million or 8.2% compared to $17.0 million during the second quarter of 2025. Our McCarty facility operating and maintenance expenses decreased approximately $0.9 million, primarily related to the timing of maintenance related to gas processing equipment. Our Apex facility operating and maintenance expenses decreased approximately $0.5 million primarily related to timing of the gas processing preventative maintenance. We produced approximately 44,000 megawatt hours in renewable electricity during the second quarter of 2026, an increase of approximately 2,000 megawatt hours or 4.8% 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 wellfield improvements. Revenues from renewable electricity facilities during the second quarter of 2026 were $4.5 million, an increase of $0.2 million or 4.8% compared to $4.3 million in the second quarter of 2025. The increase was primarily driven by the increase in production volumes. Our renewable electricity generation operating and maintenance expenses during the second quarter of 2026 were $5.1 million, an increase of $0.3 million or 5.3% compared to $4.8 million during the second quarter of 2025. The increase was driven by an increase in non-capitalizable costs of approximately $1.2 million at our Montauk Ag Renewables project in Turkey, North Carolina. Our Bowerman facility operating and maintenance expenses decreased approximately $0.7 million, primarily related to decreased wellfield operational costs and timing of gas processing preventative maintenance. We recorded within operating and maintenance expenses, approximately $8.3 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. During the second quarter of 2026, we recorded impairments of $0.7 million, an increase of $0.3 million compared to $0.4 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. Operating loss for the second quarter of 2026 was $75,000, a decrease of $2.3 million or 96.8% compared to an operating loss of $2.4 million for the second quarter of 2025. RNG operating income for the second quarter of 2026 was $9.6 million, an increase of $0.4 million or 4.5% compared to operating income of $9.2 million for the second quarter of 2025. Renewable Electricity generation operating loss for the second quarter of 2026 was $2.1 million, a decrease of $0.2 million or 9.2% compared to an operating loss of $2.3 million for the second quarter of 2025. Other income in the second quarter of 2026 was $2.3 million, an increase of $3.6 million compared to other expenses of $1.3 million in the second quarter of 2025. In the second quarter of 2026, we recorded approximately $3.8 million in income related to our joint venture investment in GreenWave. There was no such income reported during the second quarter of 2025. We received approximately 1.5 million in RIN distributed from GreenWave in the second quarter of 2026. We sold approximately 1.9 million RIN and recorded revenues from those RINs sold of approximately $4.8 million. Additional information on GreenWave can be found in the supplemental slides that have been posted to our website. Turning to the balance sheet. June 30, 2026, $155 million was outstanding under our new senior credit facility with HASI. Our financial debt covenant commenced June 30, 2026, and as of June 30, 2026, we are in compliance with all applicable financial covenants under this facility. For the first 6 months of 2026, our capital expenditures were $61.3 million, of which $49.8 million and $3.6 million were related to our ongoing development of Montauk Ag Renewables and our Bowerman RNG facility, respectively. We had approximately $17.3 million in capital expenditures included within our accounts payable or accrued liabilities at June 30, 2026. As of June 30, 2026, we had cash and cash equivalents net of restricted cash of approximately $15.8 million. Our new senior credit facility with HASI requires us to meet quarterly liquidity balances as defined in the underlying agreement. We had accounts and other receivables of approximately $5.6 million as of June 30, 2026. We do not believe we have any collectibility issues within our receivables balances. As of June 30, 2026, we held no RINs distributed from GreenWave inventory on our balance sheet. Adjusted EBITDA for the second quarter of 2026 was $12.3 million, an increase of $7.3 million or 144.5% compared to adjusted EBITDA of $5.0 million for the second quarter of 2025. EBITDA for the second quarter of 2026 was $11.7 million, an increase of $7.1 million or 151.4% compared to EBITDA of $4.6 million for the second quarter of 2025. Net income for the second quarter of 2026 was $0.2 million, an increase of $5.7 million as compared to a net loss of $5.5 million for the second quarter of 2025. I'll now turn the call back over to Sean. Sean McClain: Thank you, Kevin. In closing, and although we don't provide guidance as to our internal expectation on the market price of environmental attributes, including the market price of D3 RINs, we would like to provide our full year 2026 outlook. We are reaffirming our RNG production volumes to range between 5.8 million and 6 million MMBtus with corresponding RNG revenues to range between $175 million and $190 million. We expect our renewable electricity production volumes to range between 185,000 and 195,000 megawatt hours with corresponding revenue -- electricity revenues to range between $23 million 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: [Operator Instructions] Our first question comes from Tim Moore from Clear Street. Timothy Michael Moore: Congratulations on the progress. RINs pricing seems to have stabilized in the past 6 or 7 months. It was nice to hear your commentary on the sequential increase in the third quarter. Can you just -- just from your own visibility and what you're seeing, is there just improved transparency in the marketplace for that compared to last year? I know the EPA website stopped posting in January last year, but just kind of what are you seeing and kind of the behaviors around RIN purchases? Kevin Van Asdalan: Yes, Tim, I'll handle the first section, and then maybe Sean can offer some guidance -- or not guidance, some clarity in regards to our obligated party process. But while we have seen some RINs stability here in the first, call it, 5 or 6 months, we think some of that stability was coming through -- there was an extended year settlement for 2025 that completed itself in the second quarter. And I believe getting on the other side of sort of completing the 2025 vintage period and moving into 2026 with a, I guess, a settled RVO and obligated parties getting into their 2026 obligated purchases, we believe that's contributed to the historical path of RIN lack of volatility here in 2026. Sean McClain: And Tim, what I can offer is obviously reaffirming our strategy when we self-market these RINs rather than marketing them to anyone that is willing to purchase in the short term, we do emphasize and focus on obligated parties to ensure that as many of our generated RIN volumes are purchased by those that have the intention to retire for compliance purposes. I do see an increase in the predominance of those obligated parties stepping into the marketplace and buy more regularly earlier on in the compliance year than we've seen in previous years. So that does tie well into some of the comments that Kevin made. Timothy Michael Moore: That's great. Nice to see the -- a little bit more buying regular behavior. I have one more question, and I'll save the rest for offline for a catch-up later today. So the revenue guidance for RNG for $175 million to $190 million reiterated, does that include the GreenWave related revenues, such as you receive distributed RINs sold. I'm just kind of curious because that was a contribution, I guess, in the quarter. Kevin Van Asdalan: Yes. The contribution, we include GreenWave in our forecasts for what we expect to receive from the third-party volumes that we're distributing through that pathway. But yes, so there would be expectations of inclusion of RIN revenues from GreenWave. And we do expect some wellfield enhancement and investments large in the second half of the year to support the production guidance that we have for our RNG segment. Timothy Michael Moore: No, that's a great clarification, Kevin. I'm including that in my model now. Operator: This concludes the question-and-answer session. I would now like to turn it back to Sean McClain, CEO, for closing remarks. Sean McClain: Thank you for taking the time to join us on the conference call today. We look forward to speaking with you when we present our third quarter 2026 results. Operator: Thank you for your participation in today's conference. This does conclude the program. You may now disconnect. Before you buy stock in Montauk Renewables, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Montauk Renewables wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $403,337!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,334,946!* Now, it’s worth noting Stock Advisor’s total average return is 958% — a market-crushing outperformance compared to 214% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of August 12, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Montauk Renewables (MNTK) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Interested in Montauk Renewables, Inc.? Here are five stocks we like better. Montauk Renewables returned to profitability in Q2 2026: Revenue rose 19.7% year over year to $54.0 million, net income reached $0.2 million versus a $5.5 million loss, and adjusted EBITDA increased 144.5% to $12.3 million. RIN activity was the key earnings driver. Environmental-attribute revenue contributed approximately $8.4 million, while self-marketed RIN volume increased 29.1% to 14.3 million, helping offset lower natural-gas commodity pricing and a sharp decline in commodity revenue. The company reaffirmed its 2026 outlook and advanced its Turkey, North Carolina project: It expects 5.8–6.0 million MMBtu of RNG production and $175–$190 million in RNG revenue, while power generation at the Turkey facility began in July and is expected to ramp through 2026. Montauk Renewables (NASDAQ:MNTK) reported higher second-quarter revenue and a return to net income, supported by renewable identification number, or RIN, sales associated with its GreenWave Energy Partners joint venture and pathway dispensing activities. The company also reaffirmed its full-year production and revenue outlook while advancing its agricultural renewable electricity project in Turkey, North Carolina. Total revenue for the second quarter of 2026 rose 19.7% to $54.0 million from $45.1 million a year earlier. Chief Financial Officer Kevin Van Asdalan said the increase was primarily driven by approximately $8.4 million in environmental-attribute revenue from RINs sold through GreenWave Energy Partners and RINs related to pathway dispensing. → 3 Drone Stocks That Should Soar After the Summer Slump The company reported net income of $0.2 million, compared with a net loss of $5.5 million in the second quarter of 2025. Adjusted EBITDA increased 144.5% to $12.3 million, while EBITDA rose 151.4% to $11.7 million. Operating loss narrowed to $75,000 from $2.4 million in the prior-year period. Montauk received approximately $1.5 million in separated RINs distributed by its GreenWave Energy Partners joint venture during the quarter. It sold about 1.9 million RINs from the venture, recording roughly $4.8 million of related revenue, according to Van Asdalan. The company also recorded approximately $3.8 million of income from its joint-venture investment in GreenWave during the period. → Meta’s Earnings Drop Shows Wall Street Wants More Than Ad Growth GreenWave seeks to address limited renewable natural gas, or RNG, transportation utilization capacity by matching third-party RNG volumes with available dispensing capacity, then separating and distributing the resulting RINs to its partners, President and CEO Sean McClain said. Montauk self-marketed 14.3 million RINs in the second quarter, up 29.1% from 11.1 million a year earlier. Average realized RIN pricing was $2.45, up from $2.42 in the prior-year quarter, though below the average D3 RIN index price of $2.54 during the 2026 second quarter. → Jersey Mike's Serves Fresh Gains After IPO Stumble For the third quarter, the company has entered commitments to transfer the majority of RINs expected to be generated and available for sale from its RNG production at an average price of $2.66. That compares with an average D3 index price of $2.64 in July. During the call, Van Asdalan said RIN prices appeared to have shown less volatility in 2026 following completion of the 2025 vintage settlement period and after obligated parties moved into their 2026 compliance purchases. McClain added that Montauk focuses its self-marketing efforts on obligated parties that intend to retire RINs for compliance purposes. RNG production rose 3% year over year to 1.5 million MMBtu in the second quarter. Production increased at the McCarty and Apex facilities, reflecting landfill host wellfield operations and collection-system enhancements. Those gains were partly offset by lower output at the Galveston and Atascocita facilities. RNG segment revenue totaled $40.9 million, essentially unchanged from $40.8 million a year ago. Montauk said natural-gas commodity pricing averaged 15.7% lower than the prior-year quarter. Meanwhile, RNG volume sold under fixed, lower-priced contracts declined about 80% after the contracts expired, and RNG commodity revenue fell 63.7%. Higher RIN sales offset those declines. RNG operating income increased 4.5% to $9.6 million. Operating and maintenance expense for RNG facilities declined 8.2% to $15.6 million, largely due to maintenance timing at the McCarty and Apex facilities. Renewable electricity production rose 4.8% to approximately 44,000 MWh, while renewable electricity revenue increased 4.8% to $4.5 million. Electricity-generation operating loss narrowed to $2.1 million from $2.3 million, despite higher non-capitalizable costs at the company’s Montauk Ag Renewables project in Turkey, North Carolina. McClain said Montauk began generating power for sale at its Turkey, North Carolina facility in July. The power is expected to become eligible for both swine renewable energy certificates, or RECs, and enhanced RECs in subsequent months. The company identified programming modifications needed for installed electrical switchgear to increase production volumes and strengthen protection for processing equipment and transformers. Montauk expects the work to be completed by mid-August and to then consistently generate power and RECs from all available collected feedstock volumes. Montauk continued REC-purchase negotiations with entities obligated under North Carolina’s Renewable Energy and Energy Efficiency Portfolio Standard, in addition to its existing REC contract with Duke Energy. As of the end of July, the company had long-term agreements with more than 50 farming locations, giving it access to more than 350,000 of the 400,000 to 450,000 hog spaces targeted to fully supply the project’s first development phase. It can currently collect feedstock from more than 250,000 hog spaces and expects continued collection-equipment installations during the second half of 2026. The company maintained its $200 million capital-investment expectation for the first phase of the Turkey project and expects production to ramp through 2026 as additional feedstock collection comes online. Montauk reaffirmed its full-year 2026 outlook, calling for RNG production of 5.8 million to 6.0 million MMBtu and corresponding RNG revenue of $175 million to $190 million. Van Asdalan said the revenue outlook includes expected RIN revenue from GreenWave Energy Partners. Renewable electricity production outlook: 185,000 to 195,000 MWh Renewable electricity revenue outlook: $23 million to $26 million First-half 2026 capital expenditures: $61.3 million Capital spending for Montauk Ag Renewables: $49.8 million Cash and cash equivalents, net of restricted cash, at June 30: approximately $15.8 million Outstanding borrowings under HASI senior credit facility: $155 million Montauk said it was in compliance with all applicable financial covenants under its HASI senior credit facility as of June 30. The company said it expects wellfield enhancement investments during the second half to support its RNG production outlook. Montauk Renewables Holdings, Inc is a renewable energy company headquartered in Irving, Texas, specializing in the capture and conversion of landfill gas into clean energy products. The company’s core operations focus on the design, development and operation of landfill gas collection systems that extract methane and other biogases generated by municipal solid waste. Montauk processes this gas into renewable natural gas (RNG) suitable for pipeline injection and also generates electricity for sale to utilities and commercial consumers. Through its subsidiaries, Montauk provides a suite of environmental and waste‐management services across the United States and Canada. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Montauk Renewables Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Montauk Renewables (MNTK) reported break-even quarterly earnings per share versus the Zacks Consensus Estimate of a loss of $0.02. This compares to a loss of $0.04 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +100.00%. A quarter ago, it was expected that this renewable energy company would post a loss of $0.02 per share when it actually produced break-even earnings, delivering a surprise of +100%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Montauk Renewables, which belongs to the Zacks Alternative Energy - Other industry, posted revenues of $54.02 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 11.98%. This compares to year-ago revenues of $45.13 million. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Montauk Renewables shares have added about 1.8% since the beginning of the year versus the S&P 500's gain of 13%. While Montauk Renewables has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Montauk Renewables was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.04 on $59.18 million in revenues for the coming quarter and $0.10 on $218.88 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Alternative Energy - Other is currently in the bottom 35% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Constellation Energy Corporation (CEG), another stock in the same industry, has yet to report results for the quarter ended June 2026. The results are expected to be released on August 6. This company is expected to post quarterly earnings of $2.36 per share in its upcoming report, which represents a year-over-year change of +23.6%. The consensus EPS estimate for the quarter has been revised 7% lower over the last 30 days to the current level. Constellation Energy Corporation's revenues are expected to be $7.47 billion, up 22.4% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Montauk Renewables, Inc. (MNTK) : Free Stock Analysis Report Constellation Energy Corporation (CEG) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

This article first appeared on GuruFocus. Total Revenues: $54.0 million in Q2 2026, up 19.7% from $45.1 million in Q2 2025. Net Income: $0.2 million in Q2 2026, an increase of $5.7 million compared to a net loss of $5.5 million in Q2 2025. Adjusted EBITDA: $12.3 million in Q2 2026, up 144.5% from $5.0 million in Q2 2025. EBITDA: $11.7 million in Q2 2026, up 151.4% from $4.6 million in Q2 2025. Operating Loss: $75,000 in Q2 2026, a 96.8% improvement from a $2.4 million operating loss in Q2 2025. RNG Segment Revenue: $40.9 million in Q2 2026, up 0.3% from $40.8 million in Q2 2025. Renewable Electricity Revenue: $4.5 million in Q2 2026, up 4.8% from $4.3 million in Q2 2025. RNG Production: 1.5 million MMBtu in Q2 2026, up 3% from 1.4 million MMBtu in Q2 2025. Renewable Electricity Production: 44,000 megawatt hours in Q2 2026, up 4.8% from 42,000 megawatt hours in Q2 2025. RINs Self-Marketed: 14.3 million RINs in Q2 2026, up 29.1% from 11.1 million RINs in Q2 2025. Average RIN Price Realized: $2.45 in Q2 2026, up 1.2% from $2.42 in Q2 2025. General and Administrative Expenses: $7.7 million in Q2 2026, down 15.2% from $9.0 million in Q2 2025. Capital Expenditures: $61.3 million for the first six months of 2026. Cash and Cash Equivalents: Approximately $15.8 million as of June 30, 2026. Debt: $155 million outstanding under the new senior credit facility with HASI as of June 30, 2026. Warning! GuruFocus has detected 4 Warning Signs with MNTK. Is MNTK fairly valued? Test your thesis with our free DCF calculator. Release Date: August 06, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Montauk Renewables Inc (NASDAQ:MNTK) began generating power for sale from its Turkey, North Carolina facility in July 2026, which is expected to be eligible for both swine RECs and enhanced RECs. The company has secured long-term agreements with over 50 farming locations, providing access to over 350,000 of the 400,000 to 450,000 hog spaces targeted for the first phase of its Turkey project. Total revenues increased 19.7% year-over-year to $54.0 million in Q2 2026, driven by a $8.4 million increase in environmental attribute revenues, including RINs from the GreenWave joint venture. Adjusted EBITDA surged 144.5% to $12.3 million in Q2 2026, and the company swung to a net income of $0.2 million from a net loss of $5.5 million in the prior year quarter. The company has committed to selling the majority of its expected Q3 2026 RINs at an average price of $2.66, which is above the July 2026 average D3 index price of $2.64. RNG production volumes increased 3% year-over-year to 1.5 million MMBtu in Q2 2026, driven by improvements at the McCarty and Apex facilities. Montauk Renewables Inc (NASDAQ:MNTK) is experiencing a ramp-up phase at its Turkey, North Carolina facility, with programming modifications to electrical switch gear not expected to be completed until mid-August 2026, limiting current production volumes. RNG commodity revenue decreased 63.7% in Q2 2026 due to the expiration of fixed lower-price contracts, and average natural gas commodity pricing was 15.7% lower year-over-year. The company's RINs generated and unseparated decreased 95.4% in Q2 2026 due to the transition to the biogas regulatory reform rule in 2025. Operating and maintenance expenses at the Montauk Ag Renewables project in Turkey, North Carolina increased by approximately $1.2 million due to non-capitalizable costs. The company's cash and cash equivalents net of restricted cash were only $15.8 million as of June 30, 2026, and it must meet quarterly liquidity balances under its new senior credit facility with HASI. Production at the Galveston and Atascocita facilities decreased in Q2 2026 due to landfill host wellfield operational changes and maintenance timing. Q: Can you provide insight into the stability of RINs pricing and the behavior of RIN purchases in the marketplace?A: Kevin Van Asdalan, CFO, noted that RINs pricing has stabilized over the first five to six months of 2026, attributing this to the completion of the extended 2025 vintage settlement and obligated parties moving into their 2026 purchase cycle with a settled RVO. Sean McClain, CEO, added that the company's strategy of self-marketing RINs to obligated parties (those intending to retire them for compliance) has resulted in these parties entering the marketplace more regularly and earlier in the compliance year than in previous years. Q: Does the reiterated RNG revenue guidance of $175 million to $190 million include revenues from the GreenWave joint venture, such as the distributed RINs sold?A: Kevin Van Asdalan, CFO, confirmed that the guidance includes expectations for RIN revenues from GreenWave's third-party volumes distributed through its pathway. He also noted that the company expects to make significant wellfield enhancements and investments in the second half of the year to support the RNG production guidance. Q: What is the current status of the Turkey, North Carolina facility, and what are the next steps for ramping up production?A: Sean McClain, CEO, stated that the facility began generating power for sale in July 2026, which is expected to be eligible for both swine RECs and enhanced RECs. The company has identified programming modifications to the installed electrical switch gear to increase production volumes and enhance equipment protection. These modifications are expected to be completed by mid-August, allowing for consistent power and REC generation from all available collected feedstock volumes. Q: What is the progress on feedstock collection and long-term agreements for the Turkey facility?A: Sean McClain, CEO, reported that as of the end of July, the company has entered into long-term agreements with over 50 separate farming locations, providing access to over 350,000 of the 400,000 to 450,000 hog spaces targeted for the first phase. They are currently collecting from more than 250,000 hog spaces and will continue installations during the second half of 2026. The capital investment expectation remains unchanged at $200 million. Q: What was the financial contribution from the GreenWave joint venture in the second quarter of 2026?A: Kevin Van Asdalan, CFO, explained that the company received approximately 1.5 million RINs distributed from GreenWave in Q2 2026. They sold approximately 1.9 million RINs, recording revenues of approximately $4.8 million. The company also recorded approximately $3.8 million in income related to its joint venture investment in GreenWave, with no such income reported in the same quarter of 2025. Q: Can you explain the significant decrease in RNG commodity revenue and the increase in RINs sold?A: Kevin Van Asdalan, CFO, attributed the 63.7% decrease in RNG commodity revenue to the expiration of fixed lower-price contracts, with Q2 2026 volumes sold under these contracts decreasing approximately 80% compared to Q2 2025. This was offset by a 29.1% increase in RINs sold. The decrease in RINs generated and unseparated (95.4%) was a result of the transition to the biogas regulatory reform rule in 2025. Q: What were the key drivers behind the changes in RNG production volumes across the company's facilities?A: Kevin Van Asdalan, CFO, detailed that total RNG production increased 3% to 1.5 million MMBtu. The McCarty facility produced 53,000 MMBtu more due to wellfield enhancements, and the Apex facility produced 39,000 MMBtu more from improved landfill collection systems. These gains were partially offset by decreases at the Galveston facility (26,000 MMBtu fewer) due to the landfill host taking over wellfield operations, and the Atascocita facility (37,000 MMBtu fewer) due to enhancement project timing and planned maintenance. Q: What is the company's full-year 2026 outlook for production and revenue?A: Sean McClain, CEO, reaffirmed the full-year 2026 outlook, expecting RNG production volumes between 5.8 million and 6 million MMBtus with corresponding revenues between $175 million and $190 million. For renewable electricity, the company expects production volumes between 185,000 and 195,000 megawatt hours with revenues between $23 million and $26 million, reflecting current expectations for the Turkey, North Carolina facility. Q: What were the main drivers of the increase in adjusted EBITDA for the second quarter?A: Kevin Van Asdalan, CFO, reported that adjusted EBITDA increased by $7.3 million, or 144.5%, to $12.3 million in Q2 2026. This significant increase was primarily driven by the revenue from RINs sold related to the GreenWave joint venture distribution and pathway dispensing, which contributed approximately $8.4 million in environmental attribute revenues, with no comparable revenue in the prior year period. Q: Can you provide details on the company's capital expenditures and liquidity position?A: Kevin Van Asdalan, CFO, stated that capital expenditures for the first six months of 2026 were $61.3 million, with $49.8 million related to the Montauk Ag Renewables project and $3.6 million for the Bowerman RNG facility. As of June 30, 2026, the company had cash and cash equivalents of approximately $15.8 million and $155 million outstanding under its new senior credit facility with HASI. The company is in compliance with all applicable financial covenants under this facility. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Began power generation at the Turkey, North Carolina facility in July 2026, marking a critical milestone for the swine-waste-to-energy development phase. Identified and initiated electrical switchgear programming modifications to increase production volumes and enhance protection for processing equipment and transformers. Secured long-term agreements with over 50 farming locations, providing access to approximately 350,000 hog spaces toward a target of 400,000 to 450,000. Leveraged the GreenWave joint venture to bypass limited third-party RNG transportation capacity, resulting in 1.5 million distributed RINs in Q2 2026. Reaffirmed the existing strategy of self-marketing RINs to obligated parties. that prioritizes direct sales to obligated parties to ensure more consistent compliance-driven purchasing behavior. Managed RNG production fluctuations across the portfolio, with gains at McCarty and Apex facilities driven by landfill host wellfield and collection system enhancements. Experienced a significant decrease in RNG commodity revenue due to the expiration of legacy fixed-price contracts and a 15.7% decline in average natural gas pricing. Reaffirmed full-year 2026 RNG production guidance of 5.8 to 6.0 million MMBtus, supported by planned second-half wellfield enhancements and investments. Expects a ramp-up in production volumes throughout the remainder of 2026 as additional feedstock collection equipment is installed at contracted farming locations. Anticipates completing all electrical programming modifications by mid-August to enable consistent power and REC generation from all available feedstock. Committed to transferring the majority of expected Q3 2026 RIN production at an average price of $2.66, slightly above the July index average. Continues negotiations with entities required to purchase RECs under the North Carolina Clean Energy and Portfolio Standard to diversify revenue beyond the existing Duke contract. Recorded approximately $8.3 million in operating and maintenance expenses related to both the cost of RINs distributed from GreenWave when sold and pathway dispensing costs associated with RNG. Reported a $1.3 million decrease in G&A expenses, primarily because the prior year included a one-time $1.6 million charge for accelerated share vesting. Noted a 95.4% decrease in unseparated RINs generated as a result of the 2025 transition to the biogas regulatory reform rule. Recognized $0.7 million in impairments related to discrete or non-operable assets, though management noted no impairments related to future cash flow estimates. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management attributed recent price stability to the completion of the 2025 vintage settlement period and the establishment of a settled Renewable Volume Obligation (RVO). Noted that obligated parties are entering the marketplace to make regular purchases earlier in the compliance year than observed in previous cycles. Confirmed that the reaffirmed RNG revenue guidance of $175 million to $190 million includes expected RIN revenues from the GreenWave joint venture. Clarified that these revenues are derived from distributing third-party volumes through proprietary transportation pathways.

PITTSBURGH, Aug. 05, 2026 (GLOBE NEWSWIRE) -- Montauk Renewables, Inc. (“Montauk” or “the Company”) (NASDAQ: MNTK), a renewable energy company specializing in the management, recovery, and conversion of biogas into renewable natural gas (“RNG”), today announced financial results for the second quarter ended June 30, 2026. Second Quarter Highlights: Revenues of $54.0 million, increased 19.7 % year-over-year Net income of $0.2 million, increased 104.1% year-over-year Non-GAAP Adjusted EBITDA of $12.3 million, increased 144.5% year-over-year RNG production of 1.5 million MMBtu, increased 3% year-over-year RINs from operations sold of 14.3 million, increased 29.1% year-over-year 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 enhance protection of 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 with our installation of feedstock collection at our targeted 400 thousand to 450 thousand hog spaces. As of the end of July, we have entered into long term agreements with over fifty separate farming locations providing us access to at least 350 thousand hog spaces. We are currently able to collect from more than 250 thousand hog spaces and will continue farm site collection equipment installations during the second half of 2026. Second Quarter Financial Results Total revenues in the second quarter of 2026 were $54.0 million, an increase of $8.9 million (19.7%) compared to $45.1 million in the second quarter of 2025. The increase is primarily related to environmental attribute revenues from RINs sold related to the distribution of RINs from our GreenWave joint venture, which had no RINs distributed and sold in the second quarter of 2025. Our second quarter of 2026 RNG volumes sold under fixed/floor-price contracts decreased approximately 80.0% compared to the second quarter of 2025 due to the expiration of fixed price pathway contracts. Our RNG commodity revenue decreased approximately 63.7% which was offset by an increase in RINs sold of 29.1%. Our RINs generated and unseparated decreased approximately 95.4% as a result of the transition to the Biogas Regulatory Reform Rule in 2025. Operating and maintenance expenses for our RNG facilities in the second quarter of 2026 were $15.6 million, a decrease of $1.4 million (8.2%) compared to $17.0 million in the second quarter of 2025. Our McCarty facility operating and maintenance expenses decreased approximately $0.9 million primarily due to the timing of maintenance of gas processing equipment. Our Apex facility operating and maintenance expenses decreased approximately $0.5 million primarily due to timing of gas processing preventative maintenance. Our Renewable Electricity Generation operating and maintenance expenses in the second quarter of 2026 were $5.1 million, an increase of $0.3 million (5.3%) compared to $4.8 million in the second quarter of 2025. The increase was primarily driven by an increase in non-capitalizable costs of $1.2 million for our Montauk Ag Renewables project. Our Bowerman facility operating and maintenance expenses decreased approximately $0.7 million, primarily driven by the decreased wellfield operational costs and timing of gas processing preventative maintenance. We recorded approximately $8.3 million of expenses in the second quarter of 2026 related to the cost of RINs distributed from GreenWave and the costs related to pathway dispensing associated with our dispensing RNG in exclusive unique and proprietary pathways. Total general and administrative expenses were $7.7 million in the second quarter of 2026, a decrease of $1.4 million (15.2%) compared to $9.1 million in the second quarter of 2025, driven by one-time accelerated vesting of $1.6 million from certain restricted share awards in 2025. Operating loss in the second quarter of 2026 was $0.1 million compared to $2.4 million in the second quarter of 2025. We recognized income of $3.8 million from our GreenWave joint venture in the second quarter of 2026. Net income in the second quarter of 2026 was $0.2 million compared to a net loss of $5.5 million in the second quarter of 2025. Second Quarter Operational Results We produced 1.5 million Metric Million British Thermal Units (“MMBtu”) of RNG during the second quarter of 2026, an increase of 43 thousand (3.0%) compared to 1.4 million MMBtu produced in the second quarter of 2025. Our McCarty facility produced 53 thousand MMBtu more in the second quarter of 2026 compared to the second quarter of 2025 as a result of landfill host wellfield operational and collection system enhancements. Our Apex facility produced 39 thousand MMBtu more in the second quarter of 2026 as compared to 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 thousand 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 wellfield operations and maintenance in 2026. Our Atascocita facility produced 37 thousand MMBtu fewer in the second quarter of 2026 compared to the second quarter of 2025 as a result of landfill host wellfield operational and collection system enhancement project timing and planned facility maintenance. We produced approximately 44 thousand megawatt hours (“MWh”) in Renewable Electricity in the second quarter of 2026, an increase of 2 thousand MWh compared to 42 thousand MWh produced in the second quarter of 2025. Our Bowerman facility produced approximately 3 thousand MWh 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 wellfield improvements. 2026 Full Year Outlook RNG revenues are expected to range between $175 and $190 million (unchanged) RNG production volumes are expected to range between 5.8 and 6.0 million MMBtu (unchanged) REG revenues are expected to range between $23 and $26 million REG production volumes are expected to range between 185 and 195 thousand MWh The reduction in REG revenues and volumes outlook relates to our current expectations on the commencement of revenue and REG generation at our Montauk Ag Renewables facility. Conference Call Information The Company will host a conference call August 6, 2026 at 8:30 a.m. Eastern time to discuss results. The registration for the conference call will be available via the following link: https://register-conf.media-server.com/register/BI0c92589308504408b2dab7f3408891bf Please register for the conference call and webcast using the above link in advance of the call start time. The webcast platform will register your name and organization as well as provide dial-ins numbers and a unique access pin. The conference call will be broadcast live and be available for replay at https://edge.media-server.com/mmc/p/6xvvvg5h/ and on the Company’s website at https://ir.montaukrenewables.com after 11:30 a.m. Eastern time on the same day through August 6, 2027. Use of Non-GAAP Financial Measures This press release and the accompanying tables include references to EBITDA and Adjusted EBITDA, which are Non-GAAP financial measures. We present EBITDA and Adjusted EBITDA 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. In addition, EBITDA and Adjusted EBITDA are financial measurements of performance that management and the board of directors use in their financial and operational decision-making and in the determination of certain compensation programs. EBITDA and Adjusted EBITDA are supplemental performance measures that are not required by or presented in accordance with GAAP. EBITDA and Adjusted EBITDA should not be considered alternatives to net income (loss) or any other performance measure derived in accordance with GAAP, or as an alternative to cash flows from operating activities or a measure of our liquidity or profitability. About Montauk Renewables, Inc. Montauk Renewables, Inc. (NASDAQ: MNTK) is a renewable energy company specializing in the management, recovery and conversion of biogas into RNG. The Company captures methane, preventing it from being released into the atmosphere, and converts it into either RNG or electrical power for the electrical grid (“Renewable Electricity”). The Company, headquartered in Pittsburgh, Pennsylvania, develops, operates and manages landfill methane-fueled renewable energy projects. The Company has current operations at 13 operating projects and on going development projects located in California, Idaho, Ohio, Oklahoma, Pennsylvania, North Carolina, South Carolina, and Texas. The Company sells RNG and Renewable Electricity, taking advantage of Environmental Attribute premiums available under federal and state policies that incentivize their use. For more information, visit https://ir.montaukrenewables.com Company Contact: John CiroliChief Legal Officer (CLO) & Secretary [email protected] (412) 747-8700 Investor Relations Contact: Georg VenturatosGateway Investor Relations [email protected] (949) 574-3860Safe Harbor Statement This release contains “forward-looking statements” within the meaning of U.S. federal securities laws that involve substantial risks and uncertainties. All statements other than statements of historical or current fact included in this report are forward-looking statements. Forward-looking statements refer to our current expectations and projections relating to our financial condition, results of operations, plans, objectives, strategies, future performance, and business. Forward-looking statements may include words such as “anticipate,” “assume,” “believe,” “can have,” “contemplate,” “continue,” “strive,” “aim,” “could,” “design,” “due,” “estimate,” “expect,” “forecast,” “goal,” “intend,” “likely,” “may,” “might,” “objective,” “plan,” “predict,” “project,” “potential,” “seek,” “should,” “target,” “will,” “would,” and other words and terms of similar meaning in connection with any discussion of the timing or nature of future operational performance or other events. For example, all statements we make relating to our future results of operations, financial condition, expectations and plans, including those related to the Montauk Ag project in North Carolina, the GreenWave joint venture, the Bowerman RNG Facility, the development of a biogenic carbon dioxide facility and the related offtake, the Emvolon collaboration and pilot project, the Rumpke RNG Relocation project, the Tulsa facility project, the resolution of gas collection issues at the McCarty facility, the delays and cancellations of landfill host wellfield expansion projects, the mitigation of wellfield extraction environmental factors at the Rumpke and Apex facilities, how we may monetize RNG production and weather-related anomalies are forward-looking statements. All forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those that we expect and, therefore, you should not unduly rely on such statements. The risks and uncertainties that could cause those actual results to differ materially from those expressed or implied by these forward-looking statements include but are not limited to: our ability to develop and operate new renewable energy projects, including with livestock farms, and related challenges associated with new projects, such as achieving anticipated levels of energy output on a sustained basis on the announced timeline, identifying suitable locations, obtaining and refinancing or otherwise repaying acquisition financing and unexpected delays in construction and development; reduction or elimination of government loans, subsidies and other economic incentives to the renewable energy market, as a result of the current presidential administration and otherwise; the inability to complete strategic development opportunities; widespread manmade, natural and other disasters (including severe weather events), health emergencies, dislocations, geopolitical instabilities or events (including the current unrest in the Middle East), domestic protests and other forms of civil unrest, terrorist activities, international hostilities, government shutdowns, political elections, security breaches, cyberattacks or other extraordinary events that impact general economic conditions, energy markets, financial markets and/or our business and operating results; taxes, tariffs, duties or other assessments on equipment necessary to generate or deliver renewable energy or continued inflation that raise our operating costs and increase the construction costs of our existing or new projects; rising interest rates increase the borrowing costs of indebtedness; the failure to attract and retain qualified personnel or a possible increased reliance on third-party contractors as a result, and the potential unenforceability of non-compete clauses with our employees; the length of development and optimization cycles for new projects, including the design and construction processes for our livestock farm and other renewable energy projects; dependence on third parties for the manufacture of products and services and our landfill operations; the quantity, quality and consistency of our feedstock volumes from both landfill and livestock farm operations; reliance on interconnections with and access to electric utility distribution and transmission facilities and gas transportation pipelines for our Renewable Natural Gas and Renewable Electricity Generation segments; our ability to renew pathway provider sharing arrangements at historical counterparty share percentages; our projects not producing expected levels of output; potential benefits associated with the combustion-based oxygen removal condensate neutralization technology; concentration of revenues from a small number of customers and projects; our outstanding indebtedness, ability to refinance indebtedness at acceptable rates or at all and restrictions under existing and future indebtedness; our ability to extend our fuel supply agreements prior to expiration; our ability to meet milestone requirements under our power purchase agreements; existing regulations and changes to regulations and policies that effect our operations; expected impacts of the Production Tax Credit and other tax credit benefits under the Inflation Reduction Act of 2022; decline in public acceptance and support of renewable energy development and projects; our expectations regarding Environmental Attribute volume requirements and prices and commodity prices; our expectations regarding the period during which we qualify as an emerging growth company under the Jumpstart Our Business Startups Act (“JOBS Act”); our expectations regarding future capital expenditures, including for the maintenance of facilities; our expectations regarding the use of net operating losses before expiration; our expectations regarding more attractive carbon intensity scores by regulatory agencies for our livestock farm projects; market volatility and fluctuations in commodity prices and the market prices of Environmental Attributes and the impact of any related hedging activity; regulatory changes in federal, state and international environmental attribute programs and the need to obtain and maintain regulatory permits, approvals, and consents; profitability of our planned livestock farm projects; sustained demand for renewable energy; potential liabilities from contamination and environmental conditions; potential exposure to costs and liabilities due to extensive environmental, health and safety laws; impacts of climate change, extreme and changing weather patterns and conditions and natural disasters; failure of our information technology and data security systems; increased competition in our markets; ability to keep up with technology innovations; concentrated stock ownership by a few stockholders and related control over the outcome of all matters subject to a stockholder vote; and other risks and uncertainties detailed in the section titled “Risk Factors” in our latest Annual Report on Form 10-K and our other filings with the SEC. We make many of our forward-looking statements based on our operating budgets and forecasts, which are based upon detailed assumptions. While we believe that our assumptions are reasonable, we caution that it is very difficult to predict the impact of known factors, and it is impossible for us to anticipate all factors that could affect our actual results. All forward-looking statements attributable to us are expressly qualified in their entirety by these cautionary statements as well as others made in our Securities and Exchange Commission filings and public communications. You should evaluate all forward-looking statements made by us in the context of these risks and uncertainties. The forward-looking statements included herein are made only as of the date hereof. We undertake no obligation to publicly update or revise any forward-looking statement as a result of new information, future events, or otherwise, except as required by law.

Interested in Montauk Renewables, Inc.? Here are five stocks we like better. Montauk Ag Renewables commissioned: The North Carolina facility is producing syngas and Montauk expects the production and sale of renewable electricity to begin in May 2026, with first-phase targets of about 47,000 MWh and 120,000 RECs and capital investment for phase one unchanged at $200 million. Q1 results mixed: Total revenue rose to $46.4 million (up 9% y/y) while operating loss was $1.6 million, but adjusted EBITDA increased to $10.8 million (up 22.8%); GreenWave RIN activity contributed receipts and sales (≈$1.4M received, ~$2.4M recognized) even as RNG commodity revenue declined amid a roll-off of fixed-price contracts. Financing and outlook: Montauk closed a new five-year, up-to-$200 million senior secured facility (≈$155M outstanding) and reaffirmed full-year 2026 volume and revenue ranges while updating renewable electricity revenue guidance to $33–$37 million reflecting Montauk Ag expectations. Montauk Renewables (NASDAQ:MNTK) detailed first-quarter 2026 results and provided an update on major projects, including commissioning progress at its Montauk Ag Renewables facility in North Carolina and developments at its GreenWave joint venture. President and CEO Sean McClain said the company has commissioned the Montauk Ag Renewables project in Turkey, North Carolina and is producing syngas. McClain said Montauk expects the “production and sale of renewable electricity from our syngas to commence in May 2026,” with revenue starting after calibration of the sales meter by the interconnection utility. → Insider Sales: Top AST SpaceMobile Insider Cuts Postion Over 30% McClain said the company has operated “the full production line” as part of commissioning and expects the project’s first phase to reach targeted annual output of 47,000 megawatts and 120,000 renewable energy credits (RECs) using about 50% of installed reactor capacity. He added that the capital investment expectation for the first phase “remains unchanged at $200 million.” He also said production volumes are expected to ramp throughout 2026, tied to additional feedstock collection. In the Q&A, CFO Kevin Van Asdalan said the company’s updated renewable electricity revenue outlook reflects a one-month shift in timing. “The adjustment to the revenue guidance is solely attributed to the timing of the commissioning that was completed at the end of April as opposed to the end of the first quarter, with revenue commencement activity starting in May, instead of April,” Van Asdalan said. → Light Speed Returns: Corning Cashes In on NVIDIA Growth Asked about the ramp profile, Van Asdalan said weather delays affected some on-farm equipment installation and dewatering equipment assembly. He said the 2026 ramp is “contingent upon us getting caught up” on installations related to feedstock collection and transportation to the production facility. McClain said the company’s joint venture, GreenWave, is focused on addressing limited transportation utilization capacity for renewable natural gas (RNG) by offering third-party volumes access to “exclusive, unique, and proprietary transportation pathways.” During the first quarter, he said GreenWave matched dispensing capacity with third-party RNG volumes, separated Renewable Identification Numbers (RINs), and distributed RINs to partners. → Years in the Making, AMD’s Upside Movement Has Just Begun McClain said Montauk received approximately $1.4 million in separated RINs distributed from GreenWave in the first quarter. Van Asdalan later added that of the $1.4 million in distributed RINs, about $0.4 million remained unsold at quarter end. He also said the company sold about 1 million RINs associated with GreenWave activity and recorded roughly $2.4 million in revenue from those sales. McClain said Montauk terminated its contract with European Energy North America (EENA) for delivery of biogenic carbon dioxide. “The termination was due to EENA's failure to provide certain contractual assurances and notices related to the construction of their Texas-based eMethanol facility,” he said. McClain said the company is exploring alternative offtake arrangements for its Atascocita location, and that the timing of capital expenditures will be “synchronous with the finalization of replacement offtake agreements.” He said the company continues to anticipate capital investment of $30 million to $40 million related to this effort. McClain reviewed the U.S. Environmental Protection Agency’s final rules for the Renewable Fuel Standard (RFS) for 2026 and 2027, issued March 27, 2026. He said the 2025 cellulosic volume requirement was reduced to 1,210 million D3 RINs from 1,376 million, and that cellulosic waiver credits were made available for 2025 compliance. For 2026 and 2027, McClain said final cellulosic biofuel volume requirements were set at 1,360 million and 1,430 million D3 RINs, respectively—an increase of 60 million and 70 million from preliminary renewable volume obligations (RVOs). McClain said the final volumes reflect the EPA’s assessment of expected RIN generation capacity and pathway constraints tied to end-use demand for CNG and LNG transportation fuels derived from biogas. He also noted the EPA did not provide reallocations of D3 RINs in the final rule, citing statutory conditions. Van Asdalan said total revenue in the first quarter of 2026 was $46.4 million, up $3.8 million, or 9%, from $42.6 million in the first quarter of 2025. He attributed the increase to environmental attribute revenue of about $4.2 million related to RINs sold from GreenWave distributions and pathway dispensing activity, noting there were no comparable RINs in the year-ago quarter. He also said RNG volumes sold under fixed floor price contracts fell about 82.1% year over year due to the expiration of fixed price pathway contracts, and that RNG commodity revenue declined about 49.3%, which he said was offset by a 25.5% increase in RINs sold. In response to a question about the roll-off of fixed price contracts, Van Asdalan described a shift “away from fixed pricing into a more commodity and merchant availability,” tied to dispensing volumes in the transportation market and retaining more RINs for sale. General and administrative expenses were $8.0 million, down $0.7 million, or 8.4%, from $8.7 million, which Van Asdalan said was primarily due to the vesting of certain restricted share awards in 2025. Operating loss was $1.6 million in the first quarter of 2026, compared to operating income of $0.4 million a year earlier. Van Asdalan said the company recorded $4.2 million of costs in the quarter tied to RINs distributed from GreenWave when sold and costs related to pathway dispensing; there were no such expenses in the first quarter of 2025. Net income was $5,000, compared to a net loss of $0.5 million in the year-ago quarter. Adjusted EBITDA was $10.8 million, up 22.8% from $8.8 million, while EBITDA was $9.4 million, up 40.3% from $6.7 million. Segment highlights RNG production: 1.4 million MMBtu in Q1 2026, flat year over year. RNG segment revenue: $38.1 million, down 1% from $38.5 million. RINs self-marketed: 12.4 million, up 25.5% from 9.9 million. Average realized RIN price: $2.42 vs. $2.46 in Q1 2025. Renewable electricity production: ~43,000 MWh, down 6.5% from ~46,000 MWh. Renewable electricity revenue: $4.1 million, down 0.8% from $4.2 million. Van Asdalan cited facility-level factors behind production changes, including lower output at Galveston after the landfill host assumed responsibility for wellfield operations and maintenance in Q1 2026, higher output at Atascocita tied to wellfield and collection system enhancements, and higher output at Apex following the June 2025 commissioning of a second facility and landfill collection improvements. McCarty production declined due to landfill host wellfield bifurcation and changes to the collection system. Renewable electricity operating and maintenance expenses rose to $4.5 million from $3.4 million, which Van Asdalan said was primarily driven by $0.8 million of increased non-capitalizable costs at the Montauk Ag Renewables project, along with timing-related maintenance items. Van Asdalan said Montauk entered into a new five-year senior secured credit facility on March 9, 2026 with a wholly owned subsidiary of Hannon Armstrong Capital LLC, consisting of up to $200 million in senior indebtedness. He said the proceeds were used to repay all outstanding debt, and that the company recorded $1.0 million in debt extinguishment costs in the quarter. The facility matures in March 2031, and Van Asdalan said the company is required to make interest payments during the first two years. As of March 31, 2026, Montauk had $155 million outstanding under the new facility, and cash and cash equivalents net of restricted cash of about $25.9 million. Capital expenditures were $38.6 million during the first three months of 2026, including $33.1 million related to Montauk Ag Renewables and $1.8 million related to the Bowerman RNG facility. Van Asdalan also noted about $19.6 million of capital expenditures were included in accounts payable at quarter end. McClain said the company does not provide guidance on environmental attribute prices such as D3 RINs, but reaffirmed its full-year 2026 outlook for volumes and revenue ranges: RNG production: 5.8 to 6.0 million MMBtu; RNG revenue: $175 million to $190 million Renewable electricity production: 195,000 to 207,000 MWh; renewable electricity revenue: $33 million to $37 million McClain said the updated renewable electricity revenue outlook reflects the company’s current expectations for production at the Montauk Ag Renewables facility in North Carolina. Montauk Renewables Holdings, Inc is a renewable energy company headquartered in Irving, Texas, specializing in the capture and conversion of landfill gas into clean energy products. The company’s core operations focus on the design, development and operation of landfill gas collection systems that extract methane and other biogases generated by municipal solid waste. Montauk processes this gas into renewable natural gas (RNG) suitable for pipeline injection and also generates electricity for sale to utilities and commercial consumers. Through its subsidiaries, Montauk provides a suite of environmental and waste‐management services across the United States and Canada. The article "Montauk Renewables Q1 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for May 2026.

Image source: The Motley Fool. Thursday, May 7, 2026 at 8:30 a.m. ET President and Chief Executive Officer — Sean McClain Chief Financial Officer — Kevin Van Asdalan Sean McClain, Montauk's President and Chief Executive Officer, to discuss business developments; and Kevin Van Asdalan, Chief Financial Officer, to discuss our first 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 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. Additional details regarding these non-GAAP financial measures, including reconciliations to the most directly comparable GAAP financial measures can be found in our slide presentation and our first quarter 2026 earnings press release and Form 10-Q issued and filed on May 6, 2026. These are available on our website at ir.montaukrenewables.com. After our remarks, we will open the call to investor questions. We ask that you please keep the one question to accommodate as many questions as possible. And with that, I will turn the call over to Sean. Sean McClain: Thank you, John. Good day, everyone, and thank you for joining our call. I am pleased to announce that we have commissioned our Montauk Ag renewables project in Turkey, North Carolina and are producing gas. We expect the production and sale of renewable electricity from our syngas to commence in May 2026 with revenue generation triggered upon the calibration of the sales meter from the interconnection utility. We have operated the full production line as part of the commissioning process and expect to be able to produce our targeted first phase of 47,000 megawatts, and 120,000 recs annually with approximately 50% of our installed reactor capacity. Our capital investment expectation for this first phase of the project remains unchanged at $200 million. We 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 R&G utilization for transportation by offering third-party RNG volumes, access to exclusive, unique and proprietary transportation pathways. During the first quarter of 2026, GreenWave's matched available dispensing capacity with available third-party R&D volumes, separated RINs and distributed RINs to the partners of GreenWave. We received approximately $1.4 million in separated RINs and distributed from GreenWave in the first quarter of 2026. In April 2026 we sent a letter confirming termination of our contract with European Energy North America, EENA, for the delivery of biogenic carbon dioxide. The termination was due to EENA failure to provide certain contractual assurances and notices related to the construction of their Texas-based methanol facility. We are currently exploring alternative offtake arrangements with interested parties at our [indiscernible] location. The timing of capital expenditures will be [indiscernible] with the finalization of replacement offtake agreements. We continue to anticipate a capital investment of between $30 million and $40 million. While we continue to diversify the company, our production of renewable energy from landfill feedstock remains a priority focus. The U.S. EPA issued the final rules for the 2026 and 2027 renewal fuel standard on March 27, 2026. The 2025 cellulosic volume requirement was reduced from $1.376 billion to $1.210 billion D3 rents with cellulosic waiver credits also having been made available for 2025 compliance. Hinocellulosic biofuel volume requirements for 2026 and 2027 were established at $1.360 billion and $1.430 billion D3 RINs, respectively. These volumes also represent an increase of $60 million and $70 million, respectively, from the preliminary RVO previously issued by the EPA. These volumes reflect the EPA's assessment of expected regeneration capacity and the related pathway and strengths of the end-use demand for CNG LNG transportation fuels derived from biogas. The EPA did not provide reallocations of D3 RINs as part of the 2026 and 2027 RVO in the final rule. This is primarily due to the statutory conditions on cellulosic biofuel volume requirements which do not allow the EPA to set the total applicable volume of cellulosic biofuel at a volume that is greater than the projected volume available, which necessarily excludes carryover cellulosic rents. And with that, I will turn the call over to Kevin. Kevin Van Asdalan: Thank you, Sean. I will be discussing our first quarter 2026 financial and operating results. Please refer to our earnings press release Form 10-Q in 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 sell market a significant portion of our RINs, a decision not to commit the transfer of their low RINs during a period will impact our revenue and operating profit. . We sold all of our 3.9 million RINs generated and available for sale from our 2025 RNG production in the first quarter of 2026 at a realized price of approximately $2.42. We will not be impacted by the EPA making available cellulosic waiver credits from 2025 production. We have entered into commitments to sell approximately 60% of our expected RIN volumes in the 2026 second quarter. Total revenues in the first quarter of 2026 were $46.4 million, an increase of $3.8 million or 9% compared to $42.6 million in the first quarter of 2025. The increase is related to environmental attribute revenue of approximately $4.2 million from RINs sold related to RINs distributed from Green Wave and the RINs related to pathway dispensing. We had no such RINs in the first quarter of 2025. Our first quarter of 2026 RNG volumes sold under fixed floor price contracts decreased approximately 82.1% as compared to first quarter of 2025 as a result of the expiration of fixed-price pathway contracts. Our RNG commodity revenue decreased approximately 49.3%, which was offset by an increase in RINs sold of 25.5%. Total general and administrative expenses were $8 million in the first quarter of 2026, a decrease of $0.7 million or 8.4% compared to $8.7 million in the first quarter of 2025. The decrease was primarily driven by vesting of certain restricted share awards in 2025. Turning to our segment operating metrics. I'll begin by reviewing our renewable natural gas segment. We produced MMBtu during the first quarter of 2026, flat compared to 1.4 million MMBtu during the first quarter of 2025. Our Galveston facility produced 41,000 MMBtu fewer in the first quarter of 2026 compared to the first quarter of 2025 as a result of the landfill host assuming responsibility of wellfield operations and maintenance beginning in the first quarter of 2026. Our [indiscernible] facility produced 43,000 MMBtu more in the first quarter of 2026 compared to the first quarter of 2025 as a result of landfill host well food operational and collection system enhancements. Our Apex facility produced 37,000 MMBtu more in the first quarter of 2026 as compared to the first quarter of 2025 as a result of the June 2025 commissioning of our second Apex facility and increased feedstock gas from improvements we are making to the landfill collection system. Our McCarty facility produced 88,000 MMBtu fewer in the first quarter of 2026 compared to the first quarter of as a result of landfill host well-filled bifurcation and changes to the wellfield collection system. Revenues from the Renewable Natural Gas segment during the first quarter of 2026 were $38.1 million, a decrease of $0.4 million or 1% compared to $38.5 million during the first quarter of 2025. Average commodity pricing for natural gas for the first quarter of 2026 was 38.1% higher than the first quarter of 2025. In the first quarter of 2026, we self marketed 12.4 million RINs, representing a $2.5 million increase or 25.5% compared to 9.9 million RIN self marketed during the first quarter of 2025. Average pricing realized on RIN sales during the first quarter of 2026 was $2.42 compared to $2.46 during the first quarter of 2025, a decrease of 1.6%. This compares to the average D3 RIN index price for the first quarter of 2026 of $2.41 being approximately 0.6% lower than the average D3 RIN index price for the first quarter of 2025 of $2.43. At March 31, 2026, we had approximately $0.4 million MMBtu available for RIN generation, 0.2 million RINs generated but unseparated to 79,000 RINs separated and unsold. At March 31, 2025, we had approximately 0.3 million MMBtu available for RIN generation, 1.5 million RINs generated but unseparated and 3.9 million RINs separated and unsold. Our operating and maintenance expenses for our RNG facilities during the first quarter of 2026 were $14.4 million, an increase of $0.3 million or 1.8% compared to $14.1 million during the first quarter of 2025. Our Rumpke facility operating and maintenance expenses, operating and maintenance expenses increased approximately $0.4 million, primarily related to preventive maintenance media changes. Our Apex facility operating and maintenance expenses increased approximately $0.3 million, primarily related to increased utility expense, which was partially offset by decreased preventative maintenance media changes. Our Itasca site facility operating and maintenance expenses increased approximately $0.2 million, primarily related to wellfield operational enhancements. Our Dowerston facility operating and maintenance expenses decreased approximately $0.6 million, which was primarily related to the timing of maintenance of gas processing equipment and preventative maintenance media changes. We produced approximately 43,000 megawatt hours in renewable electricity during the first quarter of 2026, a decrease of approximately 3,000 megawatt hours or 6.5% compared to 46,000 megawatt hours during the first quarter of 2025. Our PECO facility produced approximately 2,000 megawatt hours fewer in the first quarter of 2026 compared to the first quarter of 2025. The decrease is primarily related to the decommissioning of one of our engines in the second quarter of 2025 due to the shift towards boiler heat digestion process. Our Bowerman facility produced approximately 1,000 megawatt hours fewer in the first quarter of 2026 compared to the first quarter of 2025. The decrease is primarily related to original equipment manufacturer required life cycle maintenance of 1 hour engines beginning in the first quarter of 2026. Revenues from renewable electricity facilities during the first quarter of 2026 were $4.1 million, a decrease of $0.1 million or 0.8% compared to $4.2 million in the first quarter of 2025. The decrease was primarily driven by the decrease in production volumes. Our renewable electricity generation operating and maintenance expenses during the first quarter of 2026 were $4.5 million, an increase of $1.1 million or 33.8% compared to $3.4 million during the first quarter of 2025. The increase is primarily driven by an increase in noncapitalizable costs of $0.8 million at our Montauk Ag renewables project. Our [indiscernible] facility operating and maintenance expenses increased approximately $0.4 million, which was related to the timing of gas processing preventive maintenance. We recorded approximately $4.2 million in the first 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 R&D. There were no such expenses incurred during the first quarter of 2025. During the first quarter of we recorded impairments of $0.4 million, a decrease of $1.6 million compared to $2.0 million in the first quarter of 2025. The decrease primarily relates to the first quarter of 2025 impairment of an R&D development project for which the local utility no longer accepted RNG into its distribution system. We did not record any impairments related to our assessment of future cash flows. Operating loss for the first quarter of 2026 was $1.6 million compared to operating income of $0.4 million in the first quarter of 2025. R&D operating income for the first quarter of 2026 was $8.7 million, a decrease of $1.7 million or 15.7% compared to $10.4 million for the first quarter of 2025. Renewable electricity generation operating loss for the first quarter of 2026 was $2.2 million, an increase of $1.2 million compared to $1 million for the first quarter of 2025. Other income in the first quarter of 2026 was $1.3 million, an increase of $2.5 million compared to the first -- compared to other expenses of $1.2 million in the first quarter of 2025. In the first quarter of 2026, we recorded approximately $3.3 million in income related to our joint venture investment in GreenWave. There was no such income reported during the first quarter of 2025. We received approximately $1.4 million in RINs distributed from GreenWave in the first quarter of 2026, of which approximately $0.4 million remain unsold. We sold approximately 1 million RINs in recorded revenues from those RINs sold of approximately $2.4 million. Additional information on GreenWave can be found in the supplemental slides that have been posted to our website. On March 9, 2026, we entered into a 5-year new security credit facility with a wholly owned subsidiary, Hannon Armstrong Capital LLC, HASI that consists of up to $200 million in senior indebtedness. These proceeds were used to repay all our outstanding debt. We expect to have an additional $45 million in proceeds drawn upon the conclusion of certain engineering review and operational requirements of our Montauk Ag renewables project in North Carolina. As a result of this refinancing in the first quarter of 2026, we recorded debt extinguishment cost of $1 million. We are only required to make interest payments during the first 2 years of the agreement, which matures in March 2031. We expect to work with has in the future to secure additional project-based financing for our current and future development projects. Turning to the balance sheet. On March 31, 2026, $155 million was outstanding on our new security credit facility with [indiscernible]. For the first 3 months of 2026, our capital expenditures were $38.6 million, of which $33.1 million and $1.8 million, respectively, were related to the ongoing development of Montauk Ag Renewables and our Bauerman-RNG facility. We had approximately $19.6 million in capital expenditures included within our accounts payable at March 31, 2026. As of March 31, 2026, we had cash and cash equivalents net of restricted cash of approximately $25.9 million. Our new senior credit facility with [indiscernible] requires us to meet liquidity and have quarterly minimum cash balances as defined in the agreement. We had accounts and other receivables of approximately $5.2 million. We do not believe we have any collectibility issues within our receivables balance. As of March 31, 2026, we held approximately [indiscernible] distributed from GreenWave in inventory on our balance sheet. Adjusted EBITDA for the first quarter of 2026 was $10.8 million, an increase of $2 million or 22.8% compared to adjusted EBITDA of $8.8 million for the first quarter of 2025. EBITDA for the first quarter of 2026 was $9.4 million, an increase of $2.7 million or 40.3% compared to EBITDA of $6.7 million in the first quarter of 2025. Net income for the first quarter of 2026 was $5,000, an increase of $0.5 million as compared to a net loss of $0.5 million for the first quarter of 2025. The difference in effective tax rates between the first quarter of 2026 and the first quarter of 2025, primarily relate to the change in our pretax book loss for the first 3 months of 2026 as compared to the first 3 months of 2025. I'll now turn the call back over to Sean. Sean McClain: Thank you, Kevin. In closing, and though we don't provide guidance as to our internal expectations in the market price of environmental attributes, including the market price of D3 RINs we would like to provide a full year 2026 outlook. We are reaffirming our RNG production volumes to range between $5.8 and $6 million MMBtu with corresponding R&D revenues to range between $175 million and $190 million. We are reaffirming our renewable electricity production volumes to range between 195,000 and 207,000 megawatt hours, with updated corresponding renewable electricity revenues to range between $33 million and $37 million. that reflects our current expectations of production at our Montauk renewables facility in Turkey, North Carolina. And with that, we will pause for any questions. Operator: [Operator Instructions] Our first question comes from Matthew Blair at TPH. Matthew Blair: I was hoping you could talk a little bit about this fixed price contract that appears to have rolled off. And I think there was a mention of that in the release is there any prospects for renewing that contract? And can you say if that contract was above current market rates? Like should we think of that roll off as being dilutive to your ongoing margins? Kevin Van Asdalan: Thanks, Matthew. In short, if you -- I'm going to point you to our operating highlights table within our 10-Q the rolling off of the fixed price contract is consistent with our moving and our ability to find homes for our RNG volumes in the transportation market. It's in concert with a quarter-over-quarter reduction in RINs that we're sharing with counterparties through our pathway. That has come down in the first quarter of 2026 yielding increases in RINs sold in 2026 over 2025. That's sort of a general understanding of a product mix moving away from fixed pricing into a more commodity and merchant availability of RINs generated from the production that we're getting as we are dispensing volumes in the transportation space and retaining more RINs and able to sell more RINs related to the roll-off of those fixed price contracts. Operator: Our next question comes from Betty Zhang at Scotiabank. Y. Zhang: Can you talk about the Montauk ag renewables? It looks like the revenue generation seems to be pushed out by about a month and that's also factored into your annual guidance. Can you just speak to what may have contributed to that? Sean McClain: Yes. Thanks, Betty. The adjustment to the revenue guidance is solely attributed to the timing of the commissioning that was completed at the end of April as opposed to the end of the first quarter with revenue commencement activity starting in May instead of April. So that's the month shift that's reflected in that updated guidance. Operator: Our next question comes from [indiscernible] at UBS. Unknown Analyst: With the North Carolina project coming online and production expected to begin this month. Can you help us think about the ramp profile from here? I know you mentioned in your opening remarks and in the press release that you expect ramp up in production volumes throughout 2026. But can you give us additional color into that? Kevin Van Asdalan: Thanks, Richard. As we've alluded, we have a certain amount of hog spaces that we're targeting to support our production expectations under a first year. We had announced that there were some weather delays on our call in our first -- at the end of the year in March. Some weather delays have delayed some installation of the own arm collection equipment as well as delaying some of our ability to timely assemble our dewatering equipment related to those sort of weather delays in installment of our feedstock collection and dewatering equipment. Our ramp throughout 2026 is contingent upon us getting caught up and meeting some internal expectations associated with our own farm installation related to feedstock collection and transportation to our production facility. Operator: Okay. I'm showing no further questions at this time. I would now like to turn it back to Sean for closing remarks. Sean McClain: Thank you, and thank you for taking the time to join us on the conference call today. We look forward to speaking with you again when we present our second quarter 2026 results. Operator: Thank you for your participation in today's conference. This does conclude the program. You may now disconnect. 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This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Montauk (MNTK) Q1 2026 Earnings Call Transcript was originally published by The Motley Fool