NASDAQ$MNTK

Montauk Renewables Inc · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

Montauk Renewables reported an increase in revenue and net income for the third quarter of 2024.

Montauk Renewables announced strong third-quarter results, with an 18.4% increase in revenues to $65.9 million and a 31.8% increase in net income to $17.0 million compared to the third quarter of 2023. The company's RNG production remained flat at 1.4 million MMBtu, while RINs sold increased by 14.5%.

  • RINs sold increased by 14.5% compared to Q3 2023, reaching 15.8 million.
  • Revenues increased by 18.4% to $65.9 million compared to Q3 2023.
  • Net Income increased by 31.8% to $17.0 million compared to Q3 2023.
  • Non-GAAP Adjusted EBITDA increased by 31.3% to $29.4 million compared to Q3 2023.

Headline financials

Total Revenue

$65.9M

Previous: $55.7M+18.4%
EPS

$0.12

Previous: $0.09+33.3%
Adjusted EBITDA

$29.4M

No prior period
RNG Production (MMBtu)

1.4M

Previous: 1.4M+0.0%
RINs Sold

15.7M

Previous: 15.8+99366988.6%
Average Realized RIN Price

$3.34

No prior period
Renewable Electricity Production (MWh)

41.0K

No prior period
Average D3 RIN Index Price

$3.36

No prior period
Capital Expenditures

-$12.6M

Previous: -$15.8M+20.5%
Free Cash Flow

$4.48M

Previous: -$2.89M+255.2%
Net Income

$17M

Previous: $12.9M+31.8%
Operating Income

$22.7M

Previous: $16.8M+35.3%
Gross Profit

$28.9M

Previous: $22.4M+29.1%
Cash & Equivalents

$55M

Previous: $73.3M-25.0%
Total Assets

$374M

Previous: $346M+8.2%
Stock-Based Comp

$4.28M

Previous: $2.5M+71.1%

Revenue & EPS history

Montauk Renewables · Revenue · Quarterly

$65.9M

Q3 2024+18.4%vs Q3 2023
Beat estimate in 8 of 15 quarters(53%)
ActualEstimate

Forward guidance

Montauk Renewables provided its revised full year outlook for 2024.

Tailwinds

  • RNG revenues are expected to range between $175 and $185 million
  • RNG production volumes are expected to range between 5.5 and 5.7 million MMBtu
  • Renewable Electricity revenues are expected to range between $17.0 and $18.0 million
  • Renewable Electricity production volumes are expected to range between 180 and 185 thousand MWh
  • The company is considering entry into multiple short term contracts throughout 2025 to mitigate recent market trends.

Headwinds

  • Landfill hosts are delaying installation of wellfield collection infrastructure, impacting feedstock gas and production.
  • These landfill-driven delays are expected to continue through 2025.
  • Current pathway renewals have been at higher percentages than historical counterparty share percentages.
  • Proposed pathway renewals are for percentages significantly higher than historical arrangements.
  • The company is considering limiting its near-term 2025 RNG outlook guidance to production only due to uncertainty regarding attribute generation pathways.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2024

Historical avgQ3 2024

-4.7%

Avg return

Earnings day

-3.0%

Avg return

5 days after

-1.8%

Avg return

30 days after

38%

8 / 21 earnings

Positive

+15.0%

Q1 2024

Best reaction

-35.9%

Q3 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-5.2%-6.5%+7.8%
Q4 2025+4.4%-1.8%-12.1%
Q3 2025-16.1%+1.5%-12.3%
Q1 2025-9.0%-4.7%-13.3%
Q4 2024-12.6%-16.5%-16.5%
Q3 2024-22.3%-22.1%-22.7%
Q2 2024+2.1%+2.6%+2.3%
Q1 2024+15.0%+18.5%+29.1%
Q4 2023-12.1%-17.2%-16.4%
Q3 2023-35.9%-10.7%-14.6%
Q2 2023+10.7%+10.7%+10.4%
Q1 2023-4.7%+5.0%+19.5%
Q4 2022-9.6%-8.2%-20.3%
Q3 2022-11.8%-7.0%-14.8%
Q2 2022+9.5%+14.5%+30.3%
Q1 2022+0.4%+11.7%+34.3%
Q4 2021+10.8%+9.5%+1.7%
Q3 2021-2.3%-17.7%-6.8%
Q2 2021-13.3%-15.0%+24.8%
Q1 2021-2.5%-9.6%-29.2%
Q4 2020+5.9%+0.7%-19.7%
Q3 2020
Q2 2020
Q1 2020
Q4 2019

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