Montauk Renewables, Inc. · NASDAQ:MNTK
Montauk Renewables — Investor Presentation (January 2021)
27 slides from Montauk Renewables's investor presentation, January 2021
Slide 1: Montauk Renewables, Inc. Investor Presentation
Montauk Renewables, Inc. Investor Presentation January 2021
Slide 2: Disclaimers and Confidentiality
2 Disclaimers and Confidentiality This presentation shall not constitute an offer to sell or the solicitation of an offer to buy any securities of the Company in any state or jurisdiction, domestic or foreign, in which such offer, solicitation or sale would be unlawful prior to registration or quali
Slide 3: Disclaimers and Confidentiality (cont.)
3 Disclaimers and Confidentiality (cont.) Forward-Looking Statements This presentation, as well as other written or oral communications made from time to time by the Company, may contain certain forward-looking information. All statements other than statements of historical or current fact included
Slide 4: Experienced Management Team
4 Experienced Management Team Sean McClain, Chief Executive Officer & President ▪ Over 25 years of business and financial management experience ▪ Previously at BPL Global Limited, Bayer A.G., Dick’s Sporting Goods, Inc and Arthur Andersen LLP ▪ Certified Public Accountant (Pennsylvania); BS in Accou
Slide 5: Company Overview
5 Company Overview ▪ Montauk Renewables, Inc. headquartered in Pittsburgh, PA, is a fully integrated renewable energy company specializing in the management, recovery, and conversion of biogas into renewable energy Public Stockholders Montauk Renewables, Inc. (Nasdaq:MNTK; JSE:MKR) Montauk Montauk E
Slide 6: Investment Highlights
6 Investment Highlights ▪ 30+ years of experience in Renewable Natural Gas (“RNG”) projects One of the Largest US Producers of RNG ▪ Current operating portfolio of 12 RNG and three Renewable Electricity projects across six states ▪ The biogas serves as a beneficial alternative for fossil fuels used
Slide 7: Company History
7 Company History ▪ February - Acquires portfolio of ▪ June - Acquires portfolio ▪ October - Galveston RNG five Renewable Electricity of three operating RNG facility commences projects in TX from Viridis projects in Johnstown, commercial operation Energy PA from Leaf Energy ▪ June - Signs Gas Rights
Slide 8: Renewable Natural Gas (RNG) Addresses Multiple Issues
8 Renewable Natural Gas (RNG) Addresses Multiple Issues Add Transportation related pic Making Beneficial Use of Detrimental Displacing Fossil Fuels in Significant Environmental Factors Methane Transportation & Power Production ▪ Methane is the primary component of ▪ Lower environmental impact than ▪
Slide 9: RNG Industry Growth
9 RNG Industry Growth ▪ Driven by a variety of incentives, landfill gas has been used to generate electricity and as a transportation fuel replacement Landfill Gas Project Data by State ▪ The number of RNG projects in the US grew at a 14.6% CAGR between 2014 and 2019 ▪ Diverse and long-term availabi
Slide 10: Montauk Business Model
10 Montauk Business Model ▪ Montauk develops, owns, and operates RNG projects to recover and process biogas from landfills and other non-fossil fuel sources, which is then converted into RNG or used to produce Renewable Electricity ▪ Montauk team has decades of experience with all of the proven comm
Slide 11: Biogas Conversion and Monetization
11 Biogas Conversion and Monetization ▪ As organic waste biologically decomposes in an oxygen-poor environment (“anaerobic”), it emits “biogas”, which is a mixture of carbon dioxide and hydrocarbons, primarily methane gas (i.e., natural gas) ▪ The biogas is then collected and delivered to an on-site
Slide 12: Environmental Attributes
12 Environmental Attributes ▪ When used as a transportation fuel or used to produce electricity, RNG can generate additional revenue streams through US federal, state and local government incentives (collectively, “Environmental Attributes”) ▪ These Environmental Attributes are provided for under a
Slide 13: D3 RIN Pricing Fundamentals
13 D3 RIN Pricing Fundamentals Cellulosic biofuel RIN (D3) Annual Average D3 RIN Pricing(1) • Blending ethanol made from cellulosic material (eg. biogas) into gasoline Biomass based diesel RIN (D4) Year D3 RIN Pricing Value per MMBtu(2) CWC • Blending diesel made from soybean oil or animal fats into
Slide 14: 15 Projects Across Six States
14 15 Projects Across Six States 12 Renewable Natural Gas Projects Capacity Site COD(1) Source (MMBtu/day)(2) Rumpke 1986 7,271 Landfill Cincinnati, OH Atascocita 2002*/ 5,570 Landfill Humble, TX 2018 McCarty 1986 4,415 Landfill Houston, TX Apex 2018 2,673 Landfill Amsterdam, OH Monroeville 2004 2,3
Slide 15: Project Operation Highlights
15 Project Operation Highlights 73% 18 Years of Expected 2020 RNG Production 12 Average number of years with current project site owners Has been monetized under fuel supply agreements with RNG Projects expiration dates more than 15 years from 09/30/2020 3 14 Years* Renewable Electricity Projects Av
Slide 16: Customers & Partnerships
16 Customers & Partnerships Montauk has strong relationships throughout the industry supply chain, from technology and equipment providers to feedstock owners and RNG off-takers RNG & RINs Renewable Electricity & REC Feedstock Suppliers Off-takers Customers Examples Landfill owners Local utilities D
Slide 17: Renewable Natural Gas Project Case Study: Rumpke Landfill
Renewable Natural Gas Project Case Study Rumpke Landfill ▪ Landfill project with over 62 million tons of waste, receives approximately 10,000 tons of waste per day ▪ Montauk owns and operates a 15 million standard cubic feet per day RNG processing facility with three processing plants ▪ Qualified fa
Slide 18: Renewable Electricity Project Case Study: Bowerman Power
Renewable Electricity Project Case Study Bowerman Power ▪ Landfill project with over 54 million tons of waste, receives approximately 6,800 tons of waste per day ▪ Montauk owns and operates a 19.6 MW (net) electricity generation facility which consists of seven CAT CG-260-16 reciprocating engine gen
Slide 19: Growth Opportunities
19 Growth Opportunities 1) Expanding Operations at Existing Project Sites Six newly developed projects in last five years ▪ Exploring at various sites ▪ Three greenfield landfill gas (“LFG”) projects 2) Expanding Through Acquisition ▪ Two LFG-to-electricity conversions to RNG ▪ The RNG industry is h
Slide 20: Financial Performance – Income Statement/Balance Sheet
20 Financial Performance – Income Statement/Balance Sheet (in thousands) (1) See Appendix – EBITDA Reconciliation
Slide 21: Financial Performance – Operating Metrics
21 Financial Performance – Operating Metrics
Slide 22: Appendix
Appendix
Slide 23: The Renewable Fuel Standard
23 The Renewable Fuel Standard ▪ The EPA Renewable Fuel Standard (“RFS”) mandates that diesel and gasoline refiners and importers either blend renewable fuels into the US supply of transportation fuel or buy renewable fuel credits to meet a minimum percentage of renewable fuel production annually, k
Slide 24: D3 RIN Pricing Fundamentals
24 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 cel
Slide 25: State Renewable Vehicle Fuels Programs
25 State Renewable Vehicle Fuels Programs ▪ Low carbon fuel standard (“LCFS”) programs, such as the California Low Carbon Fuel Standard (“CALCFS”), are policy tools designed to encourage decarbonization of the transportation sector within a given jurisdiction ▪ These policies set annual carbon inten
Slide 26: Company Commitment to Health, Safety and the Environment
26 Company Commitment to Health, Safety and the Environment ▪ Montauk has on-staff professionals responsible for managing all aspects of its Health & Safety Program ▪ Montauk’s goal is to ensure that all employees and visitors to their operations and offices are afforded the highest level of protect
Slide 27: EBITDA Reconciliation
EBITDA Reconciliation The following table is a reconciliation of Montauk USA's net income from continuing operations to Adjusted EBITDA for the years ended December 31, 2019 and 2018 and the nine months ended September 30, 2020 and 2019: Nine months ended Year ended December 31, September 30, 2019 2
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