Montauk Renewables Files Q3 2024 10-Q

TL;DR

Montauk Renewables filed its Q3 2024 10-Q, detailing financial performance and equity compensation.

AI Summary

Montauk Renewables, Inc. filed its 10-Q for the period ending September 30, 2024. The company reported its financial results, including details on its equity and incentive compensation plan and transactions related to its common stock. Key financial data points and operational metrics for the third quarter and the year-to-date period were disclosed.

Why It Matters

This filing provides investors with crucial financial and operational updates for Montauk Renewables, enabling informed investment decisions regarding the company's performance in the renewable energy sector.

Risk Assessment

Risk Level: medium — The filing contains standard financial disclosures for a public company, but the nature of the renewable energy sector and specific financial instruments mentioned can introduce moderate risk.

Key Numbers

• 2024-09-30 — Period End Date (The end of the reporting quarter)
• 2024-07-01 — Quarter Start Date (The beginning of the reporting quarter)
• 2024-01-01 — Year-to-Date Start Date (The beginning of the year for YTD reporting)

Key Players & Entities

• Montauk Renewables, Inc. (company) — Filer of the 10-Q
• 0000950170-24-125582 (other) — Accession Number for the filing
• 20240930 (date) — Period of report
• 20241112 (date) — Filing date
• Montauk Energy, Inc. (company) — Former company name
• Montauk Renewables Inc Equity and Incentive Compensation Plan (other) — Compensation plan mentioned
• Mnk and Hosken Consolidated Investments Limited (company) — Investment entity mentioned

FAQ

Key Financial Figures

• $0.01 — ch registered Common Stock, par value $0.01 per share MNTK The Nasdaq Capital M

Filing Documents

• mntk-20240930.htm (10-Q) — 2897KB
• mntk-ex10_14.htm (EX-10.14) — 1666KB
• mntk-ex31_1.htm (EX-31.1) — 13KB
• mntk-ex31_2.htm (EX-31.2) — 13KB
• mntk-ex32_1.htm (EX-32.1) — 7KB
• mntk-ex32_2.htm (EX-32.2) — 7KB
• 0000950170-24-125582.txt ( ) — 13586KB
• mntk-20240930.xsd (EX-101.SCH) — 1228KB
• mntk-20240930_htm.xml (XML) — 2688KB

FINANCIAL INFORMATION

PART I FINANCIAL INFORMATION 6 ITEM 1.

FINANCIAL STATEMENTS (UNAUDITED)

FINANCIAL STATEMENTS (UNAUDITED) 6 ITEM 2.

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 27 ITEM 3.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 49 ITEM 4.

CONTROLS AND PROCEDURES

CONTROLS AND PROCEDURES 49

OTHER INFORMATION

PART II OTHER INFORMATION 50 ITEM 1.

LEGAL PROCEEDINGS

LEGAL PROCEEDINGS 50 ITEM 1A.

RISK FACTORS

RISK FACTORS 50 ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS 50 ITEM 3. DEFAULTS UPON SENIOR SECURITIES 50 ITEM 4. MINE SAFETY DISCLOSURES 50 ITEM 5. OTHER INFORMATION 50 ITEM 6. EXHIBITS 51

SIGNATURES

SIGNATURES 52 Table of Contents ``` Glossary of Key Terms This Quarterly Report on Form 10-Q uses several terms of art that are specific to our industry and business. For the convenience of the reader, a glossary of such terms is provided here. Unless we otherwise indicate, or unless the context requires otherwise, any references in this Quarterly Report on Form 10-Q to: " ADG " refers to anaerobic digested gas. " CARB " refers to the California Air Resource Board. " CNG " refers to compressed natural gas. " CI " refers to carbon intensity. " D3 " refers to cellulosic biofuel with a 60% GHG reduction requirement. " EPA " refers to the U.S. Environmental Protection Agency. " Environmental Attributes " refer to federal, state and local government incentives in the United States, provided in the form of RINs, RECs, LCFS credits, rebates, tax credits and other incentives to end users, distributors, system integrators and manufacturers of renewable energy projects, that promote the use of renewable energy. " FERC " refers to the U.S. Federal Energy Regulatory Commission. " GHG " refers to greenhouse gases. " JSE " refers to the Johannesburg Stock Exchange. " LCFS " refers to Low Carbon Fuel Standard. " LFG " refers to landfill gas. "MMBtu" refers to Metric Million British Thermal Unit. " PPAs " refers to power purchase agreements. " RECs " refers to Renewable Energy Credits. " Renewable Electricity " or "REG" refers to electricity generated from renewable sources. " RFS " refers to the EPA's Renewable Fuel Standard. " RINs " refers to Renewable Identification Numbers. " RNG " refers to renewable natural gas. " RVOs " refers to renewable volume obligations. 3 Table of Contents Cautionary Note Regarding Forward-Looking Statements This Quarterly Report on Form 10-Q contains "forward-looking statements" within the meaning of U.S. federal securities laws that involve substantial risks and uncertainties. All statements

FINANCIAL INFORMATION

PART I FINANCIAL INFORMATION

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS Page Montauk Renewables, Inc . Unaudited condensed consolidated financial statements Unaudited consolidated balance sheets 7 Unaudited consolidated statements of operations 8 Unaudited consolidated statements of stockholders' equity 9 Unaudited consolidated statements of cash flows 10 Condensed notes to unaudited consolidated financial statements 11 6 Table of Contents MONTAUK RENEWABLES, INC. CONSOLID ATED BALANCE SHEETS (Unaudited) (in thousands, except share data): as of September 30, as of December 31, ASSETS 2024 2023 Current assets: Cash and cash equivalents $ 54,973 $ 73,811 Accounts and other receivables 19,217 12,752 Current restricted cash 82 8 Current portion of derivative instruments 428 785 Prepaid expenses and other current assets 4,576 2,819 Total current assets $ 79,276 $ 90,175 Non-current restricted cash $ 374 $ 423 Property, plant and equipment, net 249,845 214,289 Goodwill and intangible assets, net 18,460 18,421 Deferred tax assets 33 2,076 Non-current portion of derivative instruments 179 470 Operating lease right-of-use assets 4,054 4,313 Finance lease right-of-use assets 129 36 Related party receivable 10,168 10,138 Other assets 11,600 9,897 Total assets $ 374,118 $ 350,238 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 10,154 $ 7,916 Accrued liabilities 15,763 12,789 Income tax payable 1,584 313 Current portion of operating lease liability 457 420 Current portion of finance lease liability 71 26 Current portion of long-term debt 10,868 7,886 Total current liabilities $ 38,897 $ 29,350 Long-term debt, less current portion $ 46,719 $ 55,614 Non-current portion of operating lease liability 3,849 4,133 Non-current portion of finance lease liability 58 10