Montauk Renewables, Inc. · NASDAQ:MNTK
Montauk Renewables — Montauk Energy — Investor Presentation (June 2019)
30 slides from Montauk Renewables's investor presentation, June 2019
Slide 1: Montauk Energy Investment Presentation, June 2019
("MNK" - Johannesburg Stock Exchange) June, 2019
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains, and oral statements made from time to time by the Company’s representatives may contain, “forward-looking statements.” Forward-looking statements include statements regarding the Company’s plans, strategies, intentions and beliefs concerning the
Slide 3: Section I Executive Summary
Section I Executive Summary 3 M O N T AR Ue Kn eEwN Ea Rb Gl eY E l e c t r i c i t y G e n e r a t i o n P r o j e c t , I r v i n e , C A PRIVATE & CONFIDENTIAL
Slide 4: Montauk Energy Overview
Montauk Energy Overview Montauk Energy’s Mission is to Advance Responsible Renewable Energy Projects that Increase the Sustainability of Human and Environmental Health • Montauk is a leading renewable energy Operating Footprint company providing a fully integrated solution for the management, recove
Slide 5: The Montauk Energy Model
The Montauk Energy Model Providing an End-to-End Solution Benefitting All Parties Involved Biogas Site Hosts Montauk Energy Customers Fuel Supply Renewable Energy Production End-Use Consumption Gas Customers RNG & Access to Environmental gas under Attributes under long-term medium-term agreements co
Slide 6: How Landfill Projects Work
How Landfil Projects Work Overview • As organic waste biologically decomposes in a landfill, it emits Pipeline CNG Station Biogas, which is a mixture of primarily carbon dioxide and methane gas • Biogas is collected by a series of interconnected wells and delivered to an on-site plant, where it is p
Slide 7: How Anaerobic Digestion Projects Work
How Anaerobic Digestion Projects Work Overview • Manure from livestock is collected and either flushed or scraped into an Waste Source anaerobic digester • The digester produces Biogas, which is captured and transported via pipe to a gas treatment system for moisture and hydrogen sulfide removal • B
Slide 8: Diversified Portfolio of Scale
Diversified Portfolio of Scale Diversified Operations Across The Largest States Near Key Population Areas Bettencourt Monroeville Jerome, ID Monroeville, PA In Development 2004 Valley Harrison City, PA 2004 Bowerman Power Raeger Mountain Irvine, CA Johnstown, PA 2016 2006 Tulsa / AEL Monmouth Sand S
Slide 9: Section II Business Overview
Section II I I Business Overview 9 M O N T A U K ERNeE Rn GeYw a b l e N a t u r a l G a s P r o j e c t , H u m b l e , T X PRIVATE & CONFIDENTIAL
Slide 10: Montauk Energy Background
Montauk Energy Background • Montauk Energy has an established operating platform of large scale renewable energy projects in the United States where the Company currently owns and operates 15 renewable energy facilities (with 3 new RNG sites under development). • The Company’s expertise and experien
Slide 11: One-Stop Shop Service Provider
One-Stop Shop Service Provider Trusted Partner with Diversified Expertise Across Value Chain • Renewable natural gas and renewable Available Beneficial electricity generation address pressing End Uses environmental challenges • Well-understood systems with significant Proven Commercial operating exp
Slide 12: Premier Operating Platform
Premier Operating Platform 30+ Years of Operational Excellence Combined with Unique Expertise in Wellfield Management and Project Development Wellfield Management Environmental Attribute Conversion Capabilities Expertise Capabilities Design, Build, Own & Wellfield Tuning Regulatory & Compliance Oper
Slide 13: Management Biographies
Management Biographies Marty Ryan, Chief Executive Officer & President ▪ Mr. Marty Ryan has over 25 years of transactional, compliance and management experience. ▪ Prior to joining Montauk, he held senior management positions with Duquesne Light Company, and practiced law with the firm of Doepken Ke
Slide 14: Safety and Environmental Compliance
Safety and Environmental Compliance ▪ Montauk Energy has a fully integrated Environmental Staff consisting of 5 full-time professionals possessing the knowledge and expertise in understanding the impacts of all media on the environment (air, water, solid waste) ▪ Montauk Energy has a strong track re
Slide 15: Why is RNG Valuable?
Why is RNG Valuable? Meets 3rd Party Regulatory Same as Natural Gas + + GHG Emission Reductions Requirements Meets fuel quality standards Fulfills landfill owner methane of geologic natural gas Fully fungible in existing and emissions requirements Fulfills refiner RFS 60% Lifecycle GHG emission redu
Slide 16: Investment Considerations
Investment Considerations ✓ Fully integrated renewable energy company with a proven track record of growth Established Platform with ✓ Positioned as a platform for continued growth via acquisitions and greenfield developments Meaningful Scale ✓ Strong portfolio consisting of 15 projects with an addi
Slide 17: Section III Environmental Attribute Overview
Section III Environmental Attribute Overview 17 M O N T A URKe EnNeEwR Ga Yb l e N a t u r a l G a s P r o j e c t , C i n c i n n a t i , O H PRIVATE & CONFIDENTIAL
Slide 18: RINs: Overview
RINs: Overview ▪ The EPA Renewable Fuel Standard (“RFS”) mandates that diesel and gasoline refiners and importers either blend renewable fuels into the U.S. supply of transportation fuel or buy renewable fuel credits to meet a minimum percentage of renewable fuel production annually, known as the re
Slide 19: D3 RIN Pricing Fundamentals
D3 RIN Pricing Fundamentals ▪ Production of cellulosic biofuels has not developed at the pace envisioned in the RFS, creating a shortage in the supply of cellulosic D3 RINs to meet the blending requirements. ▪ When production volumes do not meet mandated volume obligations, instead of blending cellu
Slide 20: State Low Carbon Initiatives Overview
State Low Carbon Initiatives Overview State-Level Policy Further Incentivizes the Use of Low-Carbon Fuels Low Carbon Initiatives Overview How These Programs Work: • State-level programs that incentivize the production of lower- • California carbon transportation fuels by requiring producers of petro
Slide 21: Environmental Impact
Environmental Impact In Fiscal Year 2019, Montauk Energy captured In Fiscal Year 2019, Montauk Energy captured 3,285,442 tons of carbon dioxide equivalent (CO2e) 3,285,442 tons of carbon dioxide equivalent (CO2e) from anthropogenic methane sources. from anthropogenic methane sources. Put into Perspe
Slide 22: Section IV Development Opportunities Overview
Section IV Development Opportunities Overview 22 M O N T AR UeKn EeNwE aR Gb Yl e N a t u r a l G a s P r o j e c t , A m s t e r d a m , O H PRIVATE & CONFIDENTIAL
Slide 23: Demonstrated Success using Multiple Growth Channels
Demonstrated Success using Multiple Growth Channels Well-Positioned for Future Growth Through Multi-Pronged Strategy and Clear Development Pipeline Target Waste Source Example Projects LFG Dairy Convert existing electric sites to RNG sites Atascocita Coastal Plains Existing Expand production at exis
Slide 24: In-Development RNG Projects
In-Development RNG Projects Galveston Coastal Plains Bettencourt Acquisition of Dairy Digester & Growth Landfill RNG Greenfield Landfill Electricity-to-RNG Electric Generation Facility / Vertical Development Conversion / Optimization Electricity-to-RNG Conversion Expected FY 2020 FY 2020 FY 2020 COD
Slide 25: Organic Growth In Production
Organic Growth In Production Montauk Sizes Projects to Account for Increase in Biogas Supply Curve Over Time RNG Production Grows with Waste in Place Production grows for several years Production after Landfill eventually Closing declines Production increases while landfill continues to accept waste
Slide 26: REG-to-RNG Conversion
Reg-to-RNG Conversion As Market Leader in RNG Production, Montauk is Competitively Positioned to Execute Conversion Projects Converting to RNG Increases Project Returns Current Conversions Existing REG Project Converted RNG Project Fully merchant or approaching PPA expiry Contracted offtake agreemen
Slide 27: Near-term Landfill Market Opportunities
Near-term Landfil Market Opportunities Montauk is Geographically Positioned to Take Advantage of Highest Potential Sites 472 Candidate Landfill sites OR 4 WA 7 MT 2 3 ND 1 3 MN 5 3 VT 1 (1) 2 ME (1) ID NY NH 7 3 17 4 6 5 25 3 SD MA (1) 1 4 1 26 2 1 WI 32 14 RI WY CT 3 IA MI PA CA 2 NV NE 5 32 9 3 2
Slide 28: Section V Financial Overview
Section V Financial Overview 28 M O N T A U K RE eN En ReGwY a b l e N a t u r a l G a s P r o j e c t , H o u s t o n , T X PRIVATE & CONFIDENTIAL
Slide 29: EBITDA Calculation
EBITDA Calculation Historical Revenue & EBITDA $140.0 $120.0 $100.0 $80.0 $60.0 $40.0 $20.0 $- 2015A 2016A 2017A 2018A 2019A Total Sales EBITDA (Unadjusted) All $ amounts in millions 2015A 2016A 2017A 2018A 2019A Environmental Attribute Sales 5.4 32.6 50.6 64.4 78.5 Gas Commodity Sales 15.1 11.8 26.
Slide 30: Condensed Consolidated Balance Sheet
Condensed Consolidated Balance Sheet CON DEN SED CON SOL IDATED B AL AN CE SH EET As on March 31, All $ amounts in millions 2015A 2016A 2017A 2018A 2019A AS S ETS C URREN T AS S ETS Cash and short-term investments 15.9 17.2 23.2 29.2 47.8 Accounts receivable 3.2 3.3 8.8 8.0 11.5 Inventories 0.9 1.1