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Montauk Renewables Announces Second Quarter 2023 Results
PITTSBURGH, Aug. 09, 2023 (GLOBE NEWSWIRE) -- Montauk Renewables, Inc. (“Montauk” or “the Company”) (NASDAQ: MNTK), a renewable energy company specializing in
About this update from Montauk Renewables, Inc.
[{"type":"text","content":"PITTSBURGH, Aug. 09, 2023 (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, 2023. Second Quarter Financial Highlights: Revenues of $53.3 million, decreased 21.5% as compared to the second quarter of 2022Net Income of $1.0 million, decreased 94.8% as compared to the second quarter of 2022Non-GAAP Adjusted EBITDA of $19.2 million, decreased 30.4% as compared to the second quarter of 2022RNG production of 1.4 million MMBtu, decreased 2.6% as compared to the second quarter of 2022 On June 21, 2023, the Environmental Protection Agency announced final rules for the Renewable Fuel Standard for the period 2023 through 2025. The final rules did not finalize the eRIN program but did set final volumes for cellulosic biofuel at 838, 1,090, and 1,376 million RINs for the years 2023, 2024 and 2025, respectively. We sold a significant amount of RINs as a result of the rise in the index price of D3 RINs following the announcement of the final rules. In the second quarter of 2023, we announced a planned development of a renewable natural gas landfill project in Irvine, CA at the Frank R. Bowerman Landfill. The project is anticipated to process the large and growing volumes of biogas in excess of the existing capacity of the REG facility. With a targeted commissioning date in 2026, we currently expect the capital investment to range between $85 - $95 million, which is anticipated to have production nameplate capacity of approximately 3,600 MMBtu per day. Second Quarter Financial Results Total revenues in the second quarter of 2023 were $53.3 million, a decrease of $14.6 million (21.5%) compared to $67.9 million in the second quarter of 2022. The decrease is primarily related to a decrease in pricing of gas commodity indices and average realized RIN pricing during the second quarter of 2023 compared to the second quarter of 2022. Gas commodity indices decreased 70.7% during the second quarter of 2023 compared to the second quarter of 2022. Realized RIN pricing of $2.16 in the second quarter of 2023 decreased 36.1% when compared to $3.38 in the second quarter of 2022. Operating and maintenance expenses for our ...