MNTK

Good day, everyone. Thank you for participating in today's conference call. I would like to turn the call over to Mr. John Ciroli, as he provides some important cautions regarding forward-looking statements and non-GAAP financial measures contained in the earnings materials or made on this call. John, please go ahead.

Thank you, good day, everyone. Welcome to Montauk Renewables Earnings Conference Call to review the Q1 2026 financial and operating results and developments. I'm John Ciroli, Chief Legal Officer and Secretary at 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 Q1 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 in our Q1 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 to one question to accommodate as many questions as possible. With that, I will turn the call over to Sean.

Thank you, John. Good day, everyone. 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 syngas. 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 RNG utilization for transportation by offering third-party RNG volumes access to exclusive, unique, and proprietary transportation pathways. During the Q1 of 2026, GreenWave matched available dispensing capacity with available third-party RNG 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 Q1 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's failure to provide certain contractual assurances and notices related to the construction of their Texas-based eMethanol facility. We are currently exploring alternative offtake arrangements with interested parties at our Atascocita location.

The timing of capital expenditures will be synchronous 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 Renewable Fuel Standard on March 27, 2026. The 2025 cellulosic volume requirement was reduced from 1,376 million to 1,210 million D3 RINs, with cellulosic waiver credits also having been made available for 2025 compliance. Final cellulosic biofuel volume requirements for 2026 and 2027 were established at 1,360 million and 1,430 million 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 RIN generation capacity and the related pathway constraints 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 RINs. With that, I will turn the call over to Kevin.

Thank you, Sean. I will be discussing our Q1 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 sold all of our 3.9 million RINs generated and available for sale from our 2025 RNG production in the Q1 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 Q1 of 2026 were $46.4 million, an increase of $3.8 million or 9% compared to $42.6 million in the Q1 of 2025. The increase is related to environmental attribute revenue of approximately $4.2 million from RINs sold related to the RINs distributed from GreenWave and the RINs related to pathway dispensing. We had no such RINs in the Q1 of 2025. Our first quarter of 2026 RNG volumes sold under fixed floor price contracts decreased approximately 82.1% as compared to Q1 of 2025 as a result of the expiration of fixed price pathway contracts.

Our RNG commodity revenue decreased approximately 49.3%, which is offset by an increase in RINs sold of 25.5%. Total general and administrative expenses were $8 million in the Q1 of 2026, a decrease of $0.7 million or 8.4% compared to $8.7 million in the Q1 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 1.4 million MMBtu during the Q1 of 2026, flat compared to 1.4 million MMBtu during Q1 of 2025.

Our Galveston facility produced 41,000 MMBtu fewer in Q1 of 2026 compared to Q1 of 2025 as a result of the landfill host assuming responsibility of wellfield operations and maintenance beginning in Q1 of 2026. Our Atascocita facility produced 43,000 MMBtu more in Q1 of 2026 compared to the Q1 of 2025 as a result of landfill host wellfield operational and collection system enhancements. Our Apex facility produced 37,000 MMBtu more in Q1 of 2026 as compared to Q1 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 Q1 of 2026 compared to Q1 of 2025 as a result of landfill host wellfield bifurcation and changes to the wellfield collection system. Revenues from the renewable natural gas segment during Q1 of 2026 were $38.1 million, a decrease of $0.4 million or 1% compared to $38.5 million during Q1 of 2025. Average commodity pricing for natural gas for Q1 of 2026 was 38.1% higher than Q1 of 2025. In Q1 of 2026, we self-marketed 12.4 million RINs, representing a 2.5 million increase or 25.5% compared to 9.9 million RINs self-marketed during Q1 of 2025.

Average pricing realized on RIN sales during the Q1 of 2026 was $2.42 compared to $2.46 during the Q1 of 2025, a decrease of 1.6%. This compares to the average D3 RIN index price for the Q1 of 2026 of $2.41, being approximately 0.6% lower than the average D3 RIN index price for the Q1 of 2025 of $2.43. On March 31, 2026, we had approximately 0.4 million MMBtu available for RIN generation, 0.2 million RINs generated but unseparated, and 79,000 RINs separated and unsold.

On 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 Q1 of 2026 were $14.4 million, an increase of $0.3 million or 1.8% compared to $14.1 million during Q1 of 2025. Our Rumpke facility operating and maintenance expenses increased approximately $0.4 million primarily related to preventative 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 Atascocita facility operating and maintenance expenses increased approximately $0.2 million primarily related to wellfield operational enhancements. Our Galveston 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 Q1 of 2026, a decrease of approximately 3,000 megawatt hours or 6.5% compared to 46,000 megawatt hours during Q1 of 2025. Our Pico facility produced approximately 2,000 megawatt hours fewer in Q1 of 2026 compared to Q1 of 2025.

The decrease is primarily related to the decommissioning of one of our engines in Q2 of 2025 due to the shift towards boiler heat for digestion process. Our Bowerman facility produced approximately 1,000 MWh fewer in Q1 of 2026 compared to Q1 of 2025. The decrease is primarily related to original equipment manufacturer required lifecycle maintenance of all Jenbacher engines beginning in Q1 of 2026. Revenues from renewable electricity facilities during Q1 of 2026 were $4.1 million, a decrease of $0.1 million or 0.8% compared to $4.2 million in Q1 of 2025. The decrease is primarily driven by the decrease in production volumes.

Our renewable electricity generation operating and maintenance expenses during Q1 of 2026 were $4.5 million, an increase of $1.1 million or 33.8% compared to $3.4 million during Q1 of 2025. The increase is primarily driven by an increase in non-capitalizable cost of $0.8 million at our Montauk Ag Renewables project. Our Bowerman facility operating and maintenance expenses increased approximately $0.4 million, which was related to the timing of gas processing preventative maintenance. We recorded approximately $4.2 million in Q1 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 Q1 of 2025.

During the Q1 of 2026, we recorded impairments of $0.4 million, a decrease of $1.6 million compared to $2.0 million in the Q1 of 2025. The decrease primarily relates to the first quarter of 2025 impairment of an RNG 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 Q1 of 2026 was $1.6 million compared to operating income of $0.4 million in the Q1 of 2025. RNG operating income for the Q1 of 2026 was $8.7 million, a decrease of $1.7 million or 15.7% compared to $10.4 million for the Q1 of 2025.

Renewable electricity generation operating loss for the Q1 of 2026 was $2.2 million, an increase of $1.2 million compared to $1 million for the Q1 of 2025. Other income in Q1 of 2026 was $1.3 million, an increase of $2.5 million compared to other expenses of $1.2 million in Q1 of 2025. In Q1 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 Q1 of 2025. We received approximately $1.4 million in RINs distributed from Green Wave in Q1 of 2026, of which approximately $0.4 million remain unsold.

We sold approximately 1 million RINs and recorded revenues from those RINs sold of approximately $2.4 million. Additional information on Green Wave 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 Q1 of 2026, we recorded debt extinguishment costs of $1 million.

We are only required to make interest payments during the first two years of the agreement, which matures in March 2031. We expect to work with HASI in the future to secure additional project-based financing for our current and future development projects. Turning to the balance sheet, on March 31st, 2026, $155 million was outstanding on our new security credit facility with HASI. 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 Bowerman RNG facility. We had approximately $19.6 million in capital expenditures included within our accounts payable at March 31st, 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 HASI requires us to meet liquidity and have quarterly minimum cash balances as defined in the agreement. We had accounts and others 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 0.4 million RINs distributed from GreenWave in inventory on our balance sheet. Adjusted EBITDA for the Q1 of 2026 was $10.8 million, an increase of $2 million or 22.8% compared to adjusted EBITDA of $8.8 million for the Q1 of 2025.

EBITDA for the Q1 of 2026 was $9.4 million, an increase of $2.7 million or 40.3% compared to EBITDA of $6.7 million in the Q1 of 2025. Net income for the Q1 of 2026 was $5,000, an increase of $0.5 million as compared to a net loss of $0.5 million for the Q1 of 2025. The difference in effective tax rates between the Q1 of 2026 and the Q1 of 2025 primarily relate to the change in our pre-tax book loss for the first three months of 2026 as compared to the first three months of 2025. I'll now turn the call back over to Sean.

Thank you, Kevin. In closing, 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 RNG revenues to range between $175 million and $190 million. We are reaffirming our renewable electricity production volumes to range between 195 and 207 thousand 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 Ag Renewables facility in Turkey, North Carolina. With that, we will pause for any questions.

Thank you. At this time, we will conduct the question and answer session. As a reminder, to ask a question, you will need to press star one one on your telephone and wait for your name to be announced. To withdraw your question, please press star one one again. Please stand by while we compile the Q&A roster. Our first question comes from Matthew Blair at TPH&Co..

Thank you and good morning. I was hoping you could talk a little bit about this fixed price contract that appears to have rolled off. I think there was a mention of that in the release. You know, is there any prospect for renewing that contract? Can you say if that contract was above, you know, current market rates? Like, should we think of that roll-off as being dilutive to your ongoing margins? Thank you.

Thanks, Matthew. In short, I'm gonna 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 Q1 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.

Our next question comes from Betty Zhang at Scotiabank.

Thanks. Good morning. Can you talk about the Montauk Ag Renewables? It looks like the revenue generation seemed to be pushed out by about a month, that's also factored into your annual guidance. Can you just speak to what may have contributed to that?

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. That's the month shift that's reflected in that updated guidance.

Our next question comes from Richard DeDios at UBS.

Hi. Thanks for taking our question. 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? Thank you.

Thanks, Richard. As we've alluded, you know, we have a certain amount of hog spaces that we're targeting to support our production expectations under a 1st year. We had announced that there were some weather delays on our call at the end of the year in March, that some weather delays have delayed some installation of the on-farm collection equipment, as well as delaying some of our ability to timely assemble our dewatering equipment. Related to those sort of weather delays and 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 on-farm installation related to feedstock collection and transportation to our production facility.

Okay. I'm showing no further questions at this time. I would now like to turn it back to Sean for closing remarks.

Thank you. 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 Q2 2026 results.

Thank you for your participation in today's conference. This does conclude the program. You may now disconnect.

Good day, everyone, and thank you for participating in today's conference call. I would like to turn the call over to Mr. John Ciroli 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.

Thank you, and good day, everyone. Welcome to Montauk Renewables Earnings Conference Call to review the full year 2025 financial and operating results and development. 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 full year 2025 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 further 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 the generally accepted accounting principles. Additional details regarding these non-GAAP financial measures, including reconciliations to the most direct comparable GAAP financial measures can be found in our slide presentation and in our full year 2025 earnings press release issued and filed March 11, 2026, which is available on our website at ir.montaukrenewables.com. After our remarks, we will open the call to questions from analysts. We ask that you please keep to one question to accommodate as many questions as possible. And with that, I will turn the call over to Sean.

Thank you, John. Good day, everyone, and thank you for joining our call. I am pleased to report that despite the sale of one of our RNG facilities in 2024, we achieved growth in our 2025 RNG production. During 2025, our Pico project received its final tranche of increased contractual feedstock. Processed through our expanded digestion capacity, inlet feedstock averaged approximately 458,000 gallons per day, 17% in excess of our contractual minimum. Given these higher inlet averages, we are currently evaluating additional development expansion opportunities to ensure the beneficial processing of all available feedstock volumes. 2025 RNG production from our expanded redesigned facility was approximately 31.8% higher when compared to the previous year. To maximize the economic benefit from our increased production and from future development opportunities, we have negotiated the termination of the earn-out obligation related to the acquisition of the Pico facility. During 2025, we successfully completed the construction and commissioning of our second RNG processing facility at the Apex landfill. Though we continue to have excess available capacity with the second facility commissioned as the landfill host increases its waste intake, we produced approximately 7.8% more RNG in 2025 as compared to the previous year. Our GreenWave Energy Partners joint venture continues to address the limited capacity of RNG utilization for transportation by offering third-party RNG volumes access to exclusive, unique and proprietary transportation pathways. During 2025, GreenWave matched available dispensing capacity with available third-party RNG volumes, separated RINs and distributed RINs to the partners of GreenWave. Through our ownership percentage of GreenWave, we received 706,000 RINs and recorded income of $1.5 million during 2025. In September 2025, a joint motion was filed with the North Carolina Utilities Commission by various entities seeking to modify and delay certain aspects of the Clean Energy Portfolio Standards, specifically the portfolio standards relating to Swine RECs. In October 2025, Montauk filed response comments to the joint motion with the NCUC requesting that they grant modifications or delays only to individual power suppliers that have demonstrated need require power suppliers that have not achieved 100% compliance in 2025 to apply any cumulatively acquired swine RECs to the suppliers' unsatisfied 2025 pro rata obligation and modify the swine REC set aside for 2026 and beyond to match the requirement originally set by North Carolina in 2018. In January 2026, the NCUC denied the request for waivers and determined that the parties must use banked RECs to meet 2025 compliance targets with the ability to use soar RECs to fill any of the compliance shortage. Additionally, the compliance obligations for those utilities filing the September 2025 joint motion continue to increase through 2029. We are pleased to report that we have begun the commissioning of our Turkey, North Carolina facility. At first phase capacity, we anticipate the ability to process feedstock from approximately 400,000 to 450,000 hog spaces, which equates to approximately 35,000 tons of annual waste collection. We have entered into long-term agreements with over 40 separate farming locations to provide access to waste in support of our expected processing needs of our first phase of the project. We continue to install collection equipment at these separate farms to access the waste and intend to contract with additional farms to secure feedback sources for future expansion. We currently expect the first phase capital investment to be approximately $200 million and expect our production and revenue generation activities to commence in April 2026. In advance of our commercial operations, feedstock collection has begun with transportation to our facility for pelletization and storage. We are also pleased to announce that during March 2026, we completed a $200 million senior credit facility with HASI. This new facility restructures our existing debt, enables the completion of the first phase of our Turkey, North Carolina project and provides for future growth initiatives. Also during March 2026, we successfully negotiated a 5-year gas rights extension for our Raeger RNG facility. And with that, I will turn the call over to Kevin.

Thank you, Sean. I will be discussing our full year 2025 financial and operating results. Please refer to our earnings press release 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 all RINs from 2025 RNG production, which generated RINs that were separated in 2026. In 2026, we have transferred approximately 3.9 million RINs from the 2025 compliance year at an average realized price of approximately $2.41. Additionally, we have entered into commitments to transfer approximately 2.5 million RINs generated and available for sale from our 2026 RNG production at an average realized price of approximately $2.42. Total revenues in 2025 were $176.4 million, flat compared to $175.7 million in 2024. There was an increase in the number of RINs we self-marketed during 2025 due to a decision not to commit 6.8 million RINs in the fourth quarter of 2024. The 2025 average realized RIN price of $2.33 decreased approximately 29% compared to $3.28 in 2024. Natural gas index price increased approximately 51.1% during 2025, moving from $2.27 in 2024 to $3.43 in 2025. Total general and administrative expenses were $31.7 million for 2025, a decrease of $4.6 million or 12.5% compared to $36.3 million in 2024. Employee-related costs, including stock-based compensation were $18.4 million in 2025, a decrease of $4.7 million or 20.5% compared to $23.1 million in 2024. The decrease was primarily related to the accelerated vesting of certain restricted share awards as the result of the termination of employee in 2024 and other stock vesting time lines. Also, our corporate insurance fees decreased approximately $0.8 million or 15.4% in 2025 compared to 2024. Related to our investment in our joint venture, GreenWave, we have contributed $4 million in 2025. With our ownership of 51%, we account for this joint venture as an equity method investment. Related to the RIN separation services provided to third-party RNG producers, GreenWave records noncash related revenues from these separation activities. During 2025, GreenWave distributed approximately 706,000 RINs to us as a result of these activities. We sold these RINs and included approximately $1.6 million in our revenues in 2025. Additionally, when distributed, we recorded the fair value of these RINs as RIN inventory were approximately $1.7 million. Finally, from our ownership of GreenWave, we recorded $1.5 million as noncash income from our share of the results of GreenWave. We do not include within our operating highlights table the RINs, revenue from distributed RINs or the cost of the RIN inventory as we present in our operating highlights table various business metrics for the results of our core operations. Turning to our segment operating metrics. I'll begin by reviewing our Renewable Natural Gas segment. We reported growth in production in 2025, even after considering our 2024 fourth quarter sale of our Southern facility, which produced 85,000 MMBtu in 2024. We produced approximately 5.6 million MMBtu of RNG during 2025 compared to 5.6 million in 2024. Our Rumpke facility produced 218,000 MMBtu more in 2025 compared to 2024 as a result of increased volumes of feedstock gas. Our McCarty facility produced 76,000 MMBtu less in 2025 compared to 2024. Decrease is related to the landfill host wellfield bifurcation and changes to the wellfield collection system. Revenues from the Renewable Natural Gas segment in 2025 were $155.7 million, a decrease of $2.3 million or 1.4% compared to $158 million in 2024. Average commodity pricing for natural gas for 2025 was 51.1% higher than the prior year. During 2025, we self-marketed approximately 44.1 million RINs, representing a 7.5 million increase or 20.5% compared to 36.6 million in 2024. The increase was primarily related to market conditions as a decision -- and a decision to not self-market 6.8 million RINs generated and available for sale in the fourth quarter of 2024. Average realized pricing on RIN sales during 2025 was $2.33 as compared to $3.28 in 2024, a decrease of approximately 29%. This compares to the average D3 RIN index price for 2025 of $2.34 being approximately 24.9% lower than the average D3 RIN index price in 2024 of $3.12. At December 31, 2025, we had approximately 354,000 MMBtu available for RIN generation, 190,000 RINs generated and unseparated and no RINs generated and unsold. At December 31, 2024, we had approximately 291,000 MMBtu available for RIN generation and had approximately 6.8 million RINs generated and unsold. We have entered into commitments and transferred all of our RINs related to our 2025 RNG production. Operating and maintenance expenses for our RNG facilities in 2025 were $59.1 million, an increase of $5.7 million or 10.7% compared to $53.4 million in 2024. Our Apex facility operating and maintenance expenses increased approximately $2.3 million, primarily driven by increased utility expense, the timing of maintenance related to gas processing equipment, increased media change-outs and disposal costs as well as a wellfield operational enhancement program. Our Atascocita facility operating and maintenance expenses increased approximately $1.5 million, primarily driven by gas processing equipment maintenance, a wellfield operational enhancement program, media change-outs and utility expense. Our Rumpke facility operating and maintenance expenses increased approximately $1.3 million as a result of a wellfield operational enhancement program and increased utility expense. Our Raeger facility operating and maintenance expenses increased approximately $0.9 million as a result of a wellfield operational enhancement program and increased media change-outs and disposal costs. We also recorded approximately $3.4 million in environmental attribute expense related to the cost of RINs distributed from GreenWave and the costs related to dispensing associated with our RNG being dispensed through exclusive unique and proprietary transportation pathways, which are not included within our operating metrics table. There were no such environmental attribute expenses incurred during 2024 included with our operating and maintenance expenses for our RNG facilities. We produced 177,000 megawatt hours in renewable electricity in 2025, a decrease of approximately 9,000 megawatt hours or 4.8% compared to 186,000 megawatt hours in 2024. Our security facility produced 6,000 megawatt hours less in 2025 compared to 2024 as a result of us ceasing operations in connection with the first quarter of 2024 sale of the gas rights back to the landfill host. Our Bowerman facility produced approximately 2,000 fewer megawatt hours in 2025 compared to 2024, primarily related to the planned preventative engine maintenance that was completed in 2025. Revenues from renewable electricity facilities in 2025 were $17.2 million, a decrease of $0.6 million or 2.9% compared to $17.8 million in 2024. The decrease was primarily driven by the decrease in our security facility production volumes. Operating and maintenance expenses for our Renewable Electricity facilities in 2025 were $14.7 million, an increase of $1.9 million or 15.3% compared to $12.8 million in 2024. The primary driver of the increase were operating and maintenance expenses related to the Montauk Ag Renewables development project, which increased approximately $1.7 million as a result of the noncapitalizable costs. We calculated and recorded impairment losses of $3.2 million for 2025, an increase of $1.6 million compared to $1.6 million for 2024. The impairment losses in 2025 primarily relate to our Blue Granite development project for which the local utility is no longer accepting RNG into its distribution system. We continue to have the payment for the gas rights agreement award recorded for this RNG site, but we have paused development activities while we review alternatives for the site. The impairment losses in 2024 primarily related to the remaining book value of assets at the security facility, various RNG equipment that was deemed obsolete for current operations and RNG assets that were impacted under initial start-up testing for one of our REG construction work in process sites. We did not record any impairments related to our assessment of future cash flows. Other expenses in 2025 were $3.3 million, a decrease of $0.6 million or 15.4% compared to $3.9 million in 2024. The primary driver of the decrease was decreased interest expense of $0.5 million. In 2025, we recorded $1.5 million in income related to our joint venture investment in GreenWave. In 2024, we recorded proceeds of $1 million from the sale of our gas rights ahead of the fuel supply agreement expiration of our security facility. Operating profit in 2025 was $0.9 million, a decrease of $15.2 million compared to $16.1 million in 2024. RNG operating profit for 2025 was $38.2 million, a decrease of $17.8 million or 31.9% compared to $56 million in 2024. Renewable electricity generation operating loss for 2025 was $4.8 million, an increase of $2 million or 72.5% compared to $2.8 million in 2024. Turning to the balance sheet. At December 31, 2025, $44 million was outstanding under our term loan and $85 million was outstanding under our revolving credit facility. As we reported in our 2025 10-K, we completed a refinancing of our existing debt with a new lender on March 9, 2026. Under applicable accounting guidance, as we have the ability and intent to refinance our debt, we have classified $2.7 million as current debt and $126 million as noncurrent debt as of December 31, 2025. Our new senior credit facility consists of up to $200 million in senior indebtedness, of which $155 million is outstanding as of March 11, 2026. These proceeds were used to repay all outstanding debt of the company at the date of closing. Subject to various requirements as defined in the underlying agreement, the company expects to have an additional $25 million in proceeds drawn upon the conclusion of an engineering review over its Montauk Ag Renewables acquisition, our Turkey, North Carolina project. Also subject to various requirements as defined in the underlying agreement, the company expects the final proceeds to be dispensed at the commissioning and operation of its Montauk Ag Renewables Ag acquisition. Our new senior credit facility includes similar covenants as our old syndication, but our total net leverage ratio has increased to 4:1 from 3:1. This affords us the flexibility to continue our growth, and we expect our new lender to assist us with securing additional project-based financing for our in-progress development projects or new projects. The new senior credit facility has a 24-month availability period during which we only have to make quarterly interest payments. After the availability period, we will be subject to quarterly principal payments equal to 1.25% of the total outstanding principal balance. The facility has a fixed interest rate of 10.25% and matures in 2031. As of March 11, 2026, we had approximately $155 million outstanding under the new senior credit facility. New senior credit facility is subject to customary financial covenants and customary event of default as defined in the underlying agreement. Related to our Pico facility earn-out, we settled the earn-out obligation in December 2025, resulting in a payment of $4 million. We previously paid in July 2025 $0.2 million under this arrangement. As Sean mentioned, the settlement and termination of this earn-out will benefit us from continued improvement in growth at this facility. This is recorded through our RNG segment royalty expense. During 2025, our capital expenditures were approximately $116.5 million, of which $81 million was for Montauk Ag Renewables, $8.7 million was for the Rumpke RNG relocation project and $7.7 million was for the second Apex facility. For 2024, our capital expenditures were approximately $62.3 million, of which $27.8 million was for Montauk Ag Renewables, $12.6 million was for the second Apex facility and $8.8 million was for the Bowerman RNG project. For 2025, we expect our nondevelopment 2026 capital expenditures to range between $20 million and $25 million. The increase in our 2026 nondevelopment capital expenditures relate to our original equipment manufacturer required life cycle expenditures on our engines at our Bowerman Electric facility. We expect the original equipment manufacturer required life cycle expenditures to continue through 2027. Additionally, we currently estimate that our existing 2026 development capital expenditures could range between $100 million and $150 million. As of December 31, 2025, we had cash and cash equivalents of approximately $23.8 million and accounts and other receivables of approximately $9.2 million. We do not believe we have any collectibility issues within our receivables balance. Adjusted EBITDA for 2025 was $35.6 million, a decrease of $7 million or 16.5% compared to $42.6 million for 2024. EBITDA for 2025 was $32.3 million, a decrease of $8.7 million or 21.2% compared to EBITDA of $41 million in 2024. Net income for 2025 was $1.7 million, a decrease of $8 million or 84.5% compared to $9.7 million in 2024. Related to our old credit agreement, which was refinanced on March 9, 2026, on December 31, 2025, we entered into the sixth amendment to the agreement with Comerica Bank and certain other financial institutions. Under the old Amended Credit Agreement, we were required to maintain a total net leverage ratio of not more than 3.5:1 as of December 31, 2025. As of December 31, 2025, we were in compliance with all financial covenants related to the old credit agreement, which we refinanced on March 9, 2026. With that, I'll now turn the call back over to Sean.

Thank you, Kevin. In closing, while we don't provide guidance as to our internal expectations on the market price of environmental attributes, including the market price of D3 RINs, we would like to provide our 2026 outlook. It's important to note that our guidance ranges include internal assumptions that may or may not align with current market trends. We expect our RNG production volumes to range between 5.8 million and 6.1 million MMBtu and corresponding RNG revenues to range between $175 million and $190 million. We expect renewable electricity production volumes to range between 195,000 and 207,000 megawatt hours and corresponding renewable electricity revenues to range between $35 million and $41 million. Included within our Renewable Electricity segment are our expectations of production and revenues related to the Turkey, North Carolina development project. And with that, we will pause for any questions from analysts.

[Operator Instructions] And our first question will be coming from the line of Betty Zhang of Scotiabank.

Would you be able to discuss what's built into your 2026 RNG production outlook? Specifically, where is the growth coming from? And are you expecting to see any additional volumes from the 15-liter engines?

Thanks, Betty, for the question. Generally, across our portfolio, we're seeing increases across all of our RNG sites related to our expectations of landfill improvements in our existing wellfield automation initiatives. And it's a portfolio increase. It's an increase across all the sites of our portfolio.

Betty indicated in our spend for 2025, there were a number of projects that we took on regarding nonlinear maintenance activities, wellfield investments, commissioning of facilities that when you look on a full year basis, the majority of the growth that you get year-over-year is the full year realization of those initiatives that are not only already complete and paid for, but are also already starting to show benefits as you get into the Q4 period of 2025.

And our next question will be coming from the line of Tim Moore Clear Street.

I appreciate it and great job closing out the fourth quarter. I'm attempting to just triangulate your adjusted EBITDA potential growth. I know you don't specifically guide on it, but do you think it could grow at twice the percentage rate of revenue growth? Because you are lapping a lot of those CapEx, operating maintenance, preventative maintenance, wellfield enhancements, engines. And then you're going to have the RECs inflow from North Carolina and then -- if D3 pricing hangs in there. Just kind of trying to triangulate maybe how much of that one-off operating kind of preventative maintenance CapEx won't be repeated at the same amount this year?

Thanks, Tim. Obviously, we provide guidance expectations around production and revenues for our 2 main operating segments. We don't provide external guidance around EBITDA. With the commissioning of our North Carolina Turkey project in the second quarter of this year, next -- beginning next month, there will be a significant uplift in EBITDA coming from that location. And we do -- while we do have wellfield enhancement initiatives that were started in 2025 at some of our sites that will continue through 2026, there's always that timing and consistency of nonlinear spend that as items roll off in 2025 and aren't replicated in 2026, there will be some new spend in 2026 that wasn't in 2025. However, I did want to highlight that though with the increase in our nondevelopment capital expenditures, specifically at our Bowerman location, it's a 0 hour of all the engines and an entire capital expense as opposed to operating expenses related to normal original equipment manufacturer recommended expenses that won't be incurred in 2026.

I think, Tim, if I understand the question, definitively, you'll see an uptick in cash flows because a number of the initiatives that you're hearing that are nonlinear are capitalized as opposed to embedded in your G&A and your operating expense. The areas that are expensed, both from OpEx and administrative costs, the areas that you would see things disproportionate as you head into this year, EBITDA was artificially suppressed in '25 because you had a mismatch between noncapitalizable costs that were in your Turkey, North Carolina development, but you didn't have any corresponding production in revenue. The other piece of it is there were a number that we called out throughout the year, a number of non-repeated noncash, primarily stock-based compensation adjustments that went through your administrative line associated with a number of employee matters that are not going to repeat themselves in 2026. Significant enough that you would see that disproportionate pickup in EBITDA.

[Operator Instructions] Our next question will be coming from the line of Ryan Pfingst of B. Riley Securities.

I wanted to ask a follow-up on guidance. For RNG revenues, does the $15 million range primarily reflect potential RIN price outcomes? Or are there other initiatives on the production side or elsewhere that could drive you towards the higher end of that range?

Yes. Thanks for the question. At the beginning of the year, we're trying to cover off various expectations, not just from our production. But to your point, a potential range of RIN pricing. While we're not -- while we won't have a 2025 RIN hangover as we've already committed and transferred our vintage 2025 RINs and we're moving into 2026 commitments, we would anticipate potentially an elongated 2026 period that there's 2025 settlement of RINs from last year given the shutdown that occurred in the federal government last year. So we're trying to manage outcomes of our production ranges as well as though the RIN prices held steady over the last handful of months for either '25 vintage RINs or '26 vintage RINs, we're trying to accommodate a wide range of RIN pricing sitting here with the vast majority of our 2026 RIN availability not yet committed at pricing.

And I would now like to turn the call back to Sean for closing remarks.

Thank you all for the questions, and thank you all for taking the time to join us on the conference call today. We look forward to speaking with you throughout 2026.

And this concludes today's program. Thank you for participating. You may now disconnect.