Montauk Renewables, Inc.

Previous wording

Our profitability is highly dependent on the market price of Environmental Attributes, including the market price for RINs. As we self-market a significant portion of our RINs, a decision not to commit to transfer available RINs during a period will impact our revenue and operating profit. The impact of EPA actions associated with implementation of BRRR K2 separation and the extension of the 2024 RIN compliance period has temporarily impacted the commitment timing of the Company. We had approximately 3,009 RINs generated but unseparated at June 30, 2025 which reduced the amount of RINs available for sale as of June 30, 2025. We expect this timing between RINs generated but unseparated and RINs available for sale to only impact 2025 which is the year BRRR became effective. We had approximately 108 RINs in inventory from 2025 RNG production as of June 30, 2025. These RINs were transferred in July under a commitment entered into in June 2025 at a price of $2.42. The average D3 RIN index price for the second quarter of 2025 was approximately $2.36. The following table summarizes select historical data related to RINs generated, RINs sold, and RINs generated but unsold. As we self-market a significant portion of our RINs and as the RFS is based on annual compliance, any strategic decision to not monetize available RINs in a quarter could impact the timing of operating revenues recognized during a fiscal year. Realized prices for Environmental Attributes monetized in a year may not correspond directly to index prices due to the forward selling of commitments. The timing of RIN transfers can vary year over year and by period within a year and is contingent on various factors including, but not limited to: (a) the Company’s expectations on RIN index price, (b) operational needs of the Company, (c) obligated parties purchase needs, or (d) the type of customer among other matters.

Current wording

Our profitability is highly dependent on the market price of Environmental Attributes, including the market price for RINs. As we self-market a significant portion of our RINs, a decision not to commit to transfer available RINs during a period will impact our revenue and operating profit. The impact of EPA actions associated with implementation of BRRR K2 separation and the extension of the 2024 RIN compliance period has temporarily impacted the commitment timing of the Company. We had approximately 749 RINs generated but unseparated at September 30, 2025 which reduced the amount of RINs available for sale as of September 30, 2025. We expect this timing between RINs generated but unseparated and RINs available for sale to only impact 2025 which is the year BRRR became effective. We had approximately 10 RINs in inventory from 2025 RNG production as of September 30, 2025. The average D3 RIN index price for the third quarter of 2025 was approximately $2.19. The following table summarizes select historical data related to RINs generated, RINs sold, and RINs generated but unsold. As we self-market a significant portion of our RINs and as the RFS is based on annual compliance, any strategic decision to not monetize available RINs in a quarter could impact the timing of operating revenues recognized during a fiscal year. Realized prices for Environmental Attributes monetized in a year may not correspond directly to index prices due to the forward selling of commitments. The timing of RIN transfers can vary year over year and by period within a year and is contingent on various factors including, but not limited to: (a) the Company’s expectations on RIN index price, (b) operational needs of the Company, (c) obligated parties purchase needs, or (d) the type of customer among other matters.

Previous wording

In 2024, we signed a contract for the delivery of 140 tons per year of biogenic carbon dioxide (“CO2”). We intend to capture, clean and liquefy CO2 at select Texas facilities, at which point it will be transported to EE North America (“EENA”), a Texas-based e-methanol facility. The delivery term is expected to last at least 15 years with first delivery expected to begin in 2027. During the period prior to commissioning, we have been recognizing an exclusivity fee related to the minimum tons of CO2. The annual price per ton under the contract is adjusted annually by the U.S. consumer price index. The agreement with EENA includes a 50% sharing component of any available tax attributes generated by us under code section 45Q, Carbon dioxide sequestration credit, in the Inflation Reduction Act, as applicable. There are other revenue sharing components under the agreement to the extent we are able to produce CO2 prior to EENA accepting delivery. Excluding any estimate of tax attributes and including a U.S. consumer price index range between 2.5 – 3.0% annually, we estimate that the total revenues under this 15 year term to annually provide a minimum of 140 tons of CO2 will range between $170,000 – $201,000 in total. We have completed the initial site surveys related to location of the CO2 processing equipment, evaluated equipment suppliers, and started engineering design. We continue to target a commissioning start in 2027 and began incurring capital expenditures for long lead items and design engineering in the second quarter of 2025.

Current wording

In 2024, we signed a contract for the delivery of 140 tons per year of biogenic carbon dioxide (“CO2”). We intend to capture, clean and liquefy CO2 at select Texas facilities, at which point it will be transported to EE North America (“EENA”), a Texas-based e-methanol facility. The delivery term is expected to last at least 15 years with first delivery expected to begin in 2027. During the period prior to commissioning, we have been recognizing an exclusivity fee related to the minimum tons of CO2. The annual price per ton under the contract is adjusted annually by the U.S. consumer price index. The agreement with EENA includes a 50% sharing component of any available tax attributes generated by us under code section 45Q, Carbon dioxide sequestration credit, in the Inflation Reduction Act, as applicable. The Tax Reconciliation Act signed into law on July 4, 2025 has potentially impacted the manner in which EENA will use offtake associated with its business development. We continue to expect to develop CO2 at select Texas facilities and are in discussions with EENA regarding our agreement. We have completed the initial site surveys related to location of the CO2 processing equipment, evaluated equipment suppliers, and started engineering design. We continue to target a commissioning start in 2027 and continue incurring capital expenditures for long lead items and design engineering.

Previous wording

In 2025, we announced the conversion of our Tulsa, Oklahoma Renewable Electric Generation facility to RNG project. The project will offer a variable inlet capacity providing production capacity of approximately 1,500 MMBtu per day and designed to beneficially process all of the available inlet gas feedstock from its landfill host. We expect to target a commissioning start in 2027 and began incurring capital expenditures for long lead items in the second quarter of 2025.

Current wording

In 2025, we announced the conversion of our Tulsa, Oklahoma Renewable Electric Generation facility to RNG project. The project will offer a variable inlet capacity providing production capacity of approximately 1,500 MMBtu per day and designed to beneficially process all of the available inlet gas feedstock from its landfill host. We expect to target a commissioning start in 2027 and continue incurring capital expenditures for long lead items.

Previous wording

We continue to develop the opportunities with Montauk Ag Renewables and can give no assurances that our plans related to this acquisition will meet our expectations. Utility interconnection, both inbound to and outbound from our centralized Turkey, NC processing facility is dependent on factors outside of our control. Regulatory development and offtake negotiations could delay our ability to fully optimize or meet the timing expectations related to revenue producing activities. Our current construction timeline and costs are subject to delays or costs increases, respectively. We continue to design and plan for the development of the Turkey, NC facility to be used for commercial production. We expect the Magnolia, NC location to be used for various feedstock processing needs. Based on our current development timeline expectations, we expect to commence significant revenue generating activities in 2026. We intend to contract with additional farms to secure feedstock sources for future production processes. We expect the Montauk Ag Renewables project to generate tax attributes once placed into service consisting of a mix of investment tax, production tax, or accelerated depreciation. We are reviewing the Tax Reconciliation Act passed in July 2025 to determine what, if any, impacts there are to these expectations.

Current wording

We continue to develop the opportunities with Montauk Ag Renewables and can give no assurances that our plans related to this acquisition will meet our expectations. Utility interconnection, both inbound to and outbound from our centralized Turkey, NC processing facility is dependent on factors outside of our control. Regulatory developments and offtake negotiations could delay our ability to fully optimize or meet the timing expectations related to revenue producing activities. Our current construction timeline and costs are subject to delays or costs increases, respectively. We continue to design and plan for the development of the Turkey, NC facility to be used for commercial production. We expect the Magnolia, NC location to be used for various feedstock processing needs. Based on our current development timeline, we expect to commence significant revenue generating activities in 2026. We intend to contract with additional farms to secure feedstock sources for future production processes. We expect the Montauk Ag Renewables project to generate tax attributes once placed into service consisting of a mix of investment tax, production tax, or accelerated depreciation. We are reviewing the Tax Reconciliation Act passed in July 2025 to determine what, if any, impacts there are to these expectations.

Previous wording

In the first quarter of 2025, we, through our wholly-owned subsidiary Pesta Energy, LLC, entered into an agreement with Pioneer Renewables Energy Marketing, LLC to form a joint venture, GreenWave Energy Partners, LLC (“Greenwave”). The primary goal of the joint venture is to help address the limited capacity of RNG utilization for transportation by offering third party RNG volumes access to exclusive unique and proprietary transportation pathways. We expect to act as the RIN separator for the joint venture and expect to receive separated RINs as distributions from the joint venture. Our capital investment in the joint venture is estimated to be up to approximately $4,500 subject to various and certain requirements as defined in the underlying agreements.

Current wording

In the first quarter of 2025, we, through our wholly-owned subsidiary Pesta Energy, LLC, entered into an agreement with Pioneer Renewables Energy Marketing, LLC to form a joint venture, GreenWave Energy Partners, LLC (“Greenwave”). The primary goal of the joint venture is to help address the limited capacity of RNG utilization for transportation by offering third party RNG volumes access to exclusive unique and proprietary transportation pathways. In the third quarter of 2025, Greenwave began matching available RNG capacity to dispensing opportunities through Greenwaves's transportation pathways. The venture has matched capacity and has separated RINs for a limited amount of volumes. We expect increased benefits from Greenwave in the fourth quarter of 2025 and have not directly recognized any significant share of profits. Our capital investment in the joint venture is estimated to be up to approximately $4,500 subject to various and certain requirements as defined in the underlying agreements.

Previous wording

Impact of Higher Selling, General and Administrative Expenses Prior to the Commencement of a Project’s Operation: We incur significant expenses in the development of new RNG projects. Under the Biogas Regulatory Reform Rule, effective July 1, 2024, theoretical storage of RNG for future RIN generation prior to receiving EPA registration is no longer permitted and the receipt of RINs will no longer be delayed after injecting into a pipeline. We expect the elimination of theoretical storage, when combined with more timely EPA registration, to not materially impact the commencement of RIN revenue generation after pipeline injection.

Current wording

Impact of Higher Selling, General and Administrative Expenses Prior to the Commencement of a Project’s Operation: We incur significant expenses in the development of new RNG projects.

Previous wording

Regulatory, environmental and social factors are key drivers that incentivize the development of RNG and Renewable Electricity projects and influence the economics of these projects. We are subject to the possibility of legislative and regulatory changes to certain incentives, such as RINs, RECs and GHG initiatives. On July 12, 2023, the EPA issued final rules in the Federal Register for the RFS volume requirements for 2023-2025. Final volumes for cellulosic biofuel were set at 838, 1,090 and 1,376 RINs for the three years 2023, 2024 and 2025, respectively. The final rule also included significant changes to the existing RFS program, referred to as BRRR, that will require the RNG industry to modify how all RINs are generated. On January 1, 2025, all RFS participants must comply with BRRR provisions. We have registered all of our facilities under the BRRR provisions and have obtained Q-RIN status for RIN generation starting January 1, 2025. Under the BRRR provisions, the EPA finalized a limitation that biogas from one facility has a single use under the RFS as proposed (i.e., biointermediate, RNG or CNG/LNG via biogas closed distribution system). The EPA clarified that this does not preclude non-RFS uses at same facility.

Current wording

Regulatory, environmental and social factors are key drivers that incentivize the development of RNG and Renewable Electricity projects and influence the economics of these projects. We are subject to the possibility of legislative and regulatory changes to certain incentives, such as RINs, RECs and GHG initiatives. On July 12, 2023, the EPA issued final rules in the Federal Register for the RFS volume requirements for 2023-2025. Final volumes for cellulosic biofuel were set at 838, 1,090 and 1,376 RINs for the three years 2023, 2024 and 2025, respectively. The final rule also included significant changes to the existing RFS program, referred to as BRRR, that required the RNG industry to modify how all RINs are generated as of January 1, 2025. We have registered all of our facilities under the BRRR provisions and have obtained Q-RIN status for RIN generation starting January 1, 2025. Under the BRRR provisions, the EPA finalized a limitation that biogas from one facility has a single use under the RFS as proposed (i.e., biointermediate, RNG or CNG/LNG via biogas closed distribution system). The EPA clarified that this does not preclude non-RFS uses at same facility.

Previous wording

In December 2023, CARB released the formal proposal for new LCFS rules. The proposed rules will increase the stringency of CI reduction targets from 20% to 30% in 2030 and 90% by 2045. This reduction would have the potential impact of reducing the number of net credits in the program. CARB approved these new rules in November 2024, however in February 2025, the California Office of Administrative Law disapproved the changes because the regulations were not written in a way that persons directly affected by them could easily understand. CARB believes this disapproval to be routine and indicated its intention to resubmit the rules, which it has until June 2025 to do. CARB submitted a third notice of proposed regulations for amendments on April 11, 2025. On July 1, 2025, CARB’s amended LCFS rules officially took effect setting the aggressive carbon intensity reduction targets listed above. The industry may see gradual increases in LCFS credit prices over the next year. The rules also phase out avoided methane crediting for dairy and swine manure pathways by 2040 for CNG usage and through 2045 for RNG used to produce hydrogen. The RNG deliverability/book and claim provisions for out-of-region projects are eliminated for all projects that break ground after 2030. These projects will be required to demonstrate physical deliverability requirements beginning in 2041. Changes to the LCFS program require annual verification of the CI score assigned to a project. Annual verification could significantly affect the profitability of a project, particularly in the case of a livestock farm project. In June 2025, California lawmakers introduced California Senate Bill SB-237, which includes a potential cap on LCFS credit prices of approximately $75/ton.

Current wording

In December 2023, CARB released the formal proposal for new LCFS rules. The proposed rules will increase the stringency of CI reduction targets from 20% to 30% in 2030 and 90% by 2045. This reduction would have the potential impact of reducing the number of net credits in the program. On July 1, 2025, CARB’s amended LCFS rules officially took effect setting the aggressive carbon intensity reduction targets listed above. The industry may see gradual increases in LCFS credit prices over the next year. The rules also phase out avoided methane crediting for dairy and swine manure pathways by 2040 for CNG usage and through 2045 for RNG used to produce hydrogen. The RNG deliverability/book and claim provisions for out-of-region projects are eliminated for all projects that break ground after 2030. These projects will be required to demonstrate physical deliverability requirements beginning in 2041. Changes to the LCFS program require annual verification of the CI score assigned to a project. Annual verification could significantly affect the profitability of a project, particularly in the case of a livestock farm project. In June 2025, California lawmakers introduced California Senate Bill SB-237, which includes a potential cap on LCFS credit prices of approximately $75/ton.

Previous wording

Renewable Electricity Generation Revenues: We record revenues from the production and sale of Renewable Electricity and the generation and sale of the Environmental Attributes, such as RECs, derived from Renewable

Current wording

Renewable Electricity Generation Revenues: We record revenues from the production and sale of Renewable Electricity and the generation and sale of the Environmental Attributes, such as RECs, derived from Renewable Electricity. All of our Renewable Electricity production is monetized under fixed-price PPAs from our existing operating projects.

Previous wording

Related to our gas rights agreement with our landfill host at our Rumpke RNG location, in 2025, we began the process of the relocation of our existing Rumpke RNG facility. The timing of this project and requirement to relocate the facility coincides with the landfills filling practices to move into the existing area of our now current Rumpke RNG facility and is contractually obligated. We began to incur capital expenditures for long lead time equipment in the second quarter of 2025 and expect to target a commissioning in 2028. Depending on the timing of capital expenditures and potential other production capabilities based on market acceptance in addition to RNG production related to the full design, we estimate capital expenditures to range between $70,000 - $90,000. While we have incurred capital expenditures for this project, we don’t anticipate significant 2025 capital expenditures.

Current wording

Related to our gas rights agreement with our landfill host at our Rumpke RNG location, in 2025, we began the process of the relocation of our existing Rumpke RNG facility. The timing of this project and requirement to relocate the facility coincides with the landfills filling practices to move into the existing area of our now current Rumpke RNG facility and is contractually obligated. We began to incur capital expenditures for long lead time equipment in the second quarter of 2025 and expect to target a commissioning in 2028. Depending on the timing of capital expenditures and potential other production capabilities based on market acceptance in addition to RNG production related to the full design, we estimate capital expenditures to range between $70,000 -

Previous wording

Similar wellfield extraction environmental factors continue to impact gas extraction at our Apex site. We are collaborating with the landfill to mitigate these impacts and expect these mitigation efforts to continue in 2025.

Current wording

Similar wellfield extraction environmental factors continue to impact gas extraction at our Apex site. We are collaborating with the landfill to mitigate these impacts and these mitigation efforts have continued in 2025. These wellfield extraction environmental factors could impact and lengthen the period during which we have excess available combined production capacity at our Apex site.

Previous wording

The sale of RINs, which is subject to market price fluctuations, accounts for a substantial portion of our revenues. We manage against the risk of these fluctuations through forward sales of RINs, although currently we only sell RINs in the calendar year they are generated. We have subsequently entered into commitments to transfer the majority of our RINs in inventory as of June 30, 2025. We believe the impacts of the EPA BRRR reform and the 2024 proposed partial waiver of the 2024 RVO have temporarily impacted 2025 RIN purchase activity of RFS obligated parties. Realized prices for Environmental Attributes monetized in a year may not correspond directly to index prices due to the forward selling of commitments.

Current wording

The sale of RINs, which is subject to market price fluctuations, accounts for a substantial portion of our revenues. We manage against the risk of these fluctuations through forward sales of RINs, although typically we sell RINs in the calendar year they are separated. We believe the impacts of the EPA BRRR reform and the 2024 proposed partial waiver of the 2024 RVO have temporarily impacted 2025 RIN purchase activity of RFS obligated parties. Realized prices for Environmental Attributes monetized in a year may not correspond directly to index prices due to the forward selling of commitments.

Previous wording

Production of Environmental Attributes: We monetize Environmental Attributes derived from our production of RNG and Renewable Electricity. We carry-over a portion of the RINs generated from RNG production to the following year and monetize the carried over RINs in such following calendar year. A majority of our Renewable Natural Gas segment Environmental Attributes are self-monetized. A majority of our Renewable Electricity Generation segment Environmental Attributes are monetized as a component of our fixed-price PPAs.

Current wording

Production of Environmental Attributes: We monetize Environmental Attributes derived from our production of RNG and Renewable Electricity. We may carry-over a portion of the RINs generated or separated from RNG production to the following year and monetize the carried over RINs in such following calendar year. A majority of our Renewable Natural Gas segment Environmental Attributes are self-monetized. A majority of our Renewable Electricity Generation segment Environmental Attributes are monetized as a component of our fixed-price PPAs.

Previous wording

The following table summarizes our revenues, expenses and net loss for the periods set forth below:

Current wording

The following table summarizes our revenues, expenses and net income for the periods set forth below:

Previous wording

We produced 1,413 MMBtu of RNG during the second quarter of 2025, an increase of 31 MMBtu (2.2%) compared to 1,382 MMBtu produced in the second quarter of 2024. Our Rumpke facility produced 67 MMBtu more in the second quarter of 2025 compared to the second quarter of 2024 as a result of a previously disclosed reduced feedstock inlet and process equipment failures which occurred in the second quarter of 2024. Offsetting the increase was the fourth quarter of 2024 sale of our Southern facility which produced 22 MMBtu in the second quarter of 2024.

Current wording

We produced 1,445 MMBtu of RNG during the third quarter of 2025, an increase of 53 MMBtu (3.8%) compared to 1,392 MMBtu produced in the third quarter of 2024. Our Rumpke facility produced 50 MMBtu more in the third quarter of 2025 compared to the third quarter of 2024 as a result of higher feedstock gas. Our Apex facility produced 25 MMBtu more in the third quarter of 2025 as a result of the June 2025 commissioning of the second Apex RNG facility. Offsetting the increase was the fourth quarter of 2024 sale of our Southern facility which produced 69 MMBtu in the first nine months of 2024.

Previous wording

Revenues from the Renewable Natural Gas segment in the second quarter of 2025 were $40,829, an increase of $1,991 (5.1%) compared to $38,838 in the second quarter of 2024. Average commodity pricing for natural gas for the second quarter of 2025 was $3.44 per MMBtu, 82.0% higher than the second quarter of 2024. During the second quarter of 2025, we self-marketed 11,050 RINs, representing a 1,050 increase (10.5%) compared to 10,000 in the second quarter of 2024. Average pricing realized on RIN sales during the second quarter of 2025 was $2.42 as compared to $3.12 in the second quarter of 2024, a decrease of 22.4%. Average D3 RIN index price for the second quarter of 2025 was $2.36 compared to $3.20 in the second quarter of 2024, a decrease of approximately 26.1%. At June 30, 2025, we had approximately 309 MMBtu available for RIN generation, 3,009 RINs generated and unseparated, and 108 RINs generated and unsold. At June 30, 2024, we had approximately 357 MMBtu available for RIN generation and 4,707 RINs generated and unsold. There were no RINS generated and unseparated at June 30, 2024.

Current wording

Revenues from the Renewable Natural Gas segment in the third quarter of 2025 were $39,883, a decrease of $21,867 (35.4%) compared to $61,750 in the third quarter of 2024. Average commodity pricing for natural gas for the third quarter of 2025 was $3.07 per MMBtu, 42.1% higher than the third quarter of 2024. During the third quarter of 2025, we self-marketed 12,410 RINs, representing a 3,340 decrease (21.2%) compared to 15,750 in the third quarter of 2024. Average pricing realized on RIN sales during the third quarter of 2025 was $2.29 as compared to $3.34 in the third quarter of 2024, a decrease of 31.4%. Average D3 RIN index price for the third quarter of 2025 was $2.19 compared to $3.36 in the third quarter of 2024, a decrease of approximately 34.8%. At September 30, 2025, we had approximately 331 MMBtu available for RIN generation, 749 RINs generated and unseparated, and 10 RINs generated and unsold. At September 30, 2024, we had approximately 308 MMBtu available for RIN generation and 146 RINs generated and unsold. There were no RINS generated and unseparated at September 30, 2024.

Previous wording

We produced approximately 42 MWh in Renewable Electricity in the second quarter of 2025, a decrease of 3 MWh (6.7%) from 45 MWh in the second quarter of 2024. Our Bowerman facility produced approximately 2 MWh less in the second quarter of 2025 compared to the second quarter of 2024. The decreased is primarily related to the timing of preventative engine maintenance that was completed in the second quarter of 2025.

Current wording

We produced approximately 44 MWh in Renewable Electricity in the third quarter of 2025, an increase of 3 MWh (7.3%) from 41 MWh in the third quarter of 2024. Our Bowerman facility produced approximately 2 MWh more in the third quarter of 2025 compared to the third quarter of 2024. The increase is primarily related to the timing of processing equipment maintenance in the third quarter of 2024.

Previous wording

Revenues from Renewable Electricity facilities in the second quarter of 2025 were $4,298, a decrease of $202 (4.5%) compared to $4,500 in the second quarter of 2024. The decrease was primarily driven by the decrease in our Bowerman facility production volumes.

Current wording

Revenues from Renewable Electricity facilities in the third quarter of 2025 were $4,246, an increase of $79 (1.9%) compared to $4,167 in the third quarter of 2024. The increase was primarily driven by the increase in our Bowerman facility production volumes.

Previous wording

In the second quarter of 2025, 100.0% of Renewable Electricity Generation segment revenues were derived from the monetization of Renewable Electricity at fixed prices associated with underlying PPAs, as compared to 100.0% in the second quarter of 2024. This provides us with certainty of price resulting from our Renewable Electricity sites.

Current wording

In the third quarter of 2025, 100.0% of Renewable Electricity Generation segment revenues were derived from the monetization of Renewable Electricity at fixed prices associated with underlying PPAs, as compared to 100.0% in the third quarter of 2024. This provides us with certainty of price resulting from our Renewable Electricity sites.

Previous wording

Operating and maintenance expenses for our RNG facilities in the second quarter of 2025 were $16,955, an increase of $3,052 (22.0%) as compared to $13,903 in the second quarter of 2024. Of the increase, we do not anticipate approximately $1,780 of non-linear discrete expenses will recur in the second half of 2025 as they relate primarily to annual preventative maintenance and gas processing maintenance. Our Apex facility operating and maintenance expenses increased approximately $786 primarily related timing of gas processing preventative maintenance. Our McCarty facility operating and maintenance expenses increased approximately $772 primarily related to the timing of maintenance related to gas processing equipment. Our Rumpke facility operating and maintenance expenses increased approximately $759 primarily related to preventative maintenance media changes and wellfield operational enhancements. Our Atascocita facility operating and maintenance expenses increased approximately $546 primarily related to the timing of maintenance related to gas processing equipment.

Current wording

Operating and maintenance expenses for our RNG facilities in the third quarter of 2025 were $13,924, an increase of $1,338 (10.6%) as compared to $12,586 in the third quarter of 2024. Our Rumpke facility operating and maintenance expenses increased approximately $538 primarily related to preventative maintenance media changes and wellfield operational enhancements. Our Atascocita facility operating and maintenance expenses increased approximately $422 primarily related to the timing of maintenance related to gas processing equipment and increased utility expense. Our Apex facility operating and maintenance expenses increased approximately $275 primarily related to increased utility expense.

Previous wording

Royalties, transportation, gathering and production fuel expenses for our RNG facilities for the second quarter of 2025 were $8,669, an increase of $101 (1.2%) compared to $8,568 in the second quarter of 2024. We recorded an increase to our Pico facility earnout of approximately 26.3% during the second quarter of 2025. Royalties, transportation, gathering and production fuel expenses decreased as a percentage of RNG revenues to 21.2% for the second quarter of 2025 from 22.1% in the second quarter of 2024.

Current wording

Royalties, transportation, gathering and production fuel expenses for our RNG facilities for the third quarter of 2025 were $7,975, a decrease of $2,665 (25.0%) compared to $10,640 in the third quarter of 2024. We recorded an increase to our Pico facility earnout of approximately 7.6% during the third quarter of 2025. Royalties, transportation, gathering and production fuel expenses increased as a percentage of RNG revenues to 20.0% for the third quarter of 2025 from 17.2% in the third quarter of 2024.

Previous wording

Royalties, transportation, gathering and production fuel expenses for our Renewable Electricity facilities for the second quarter of 2025 were $499, a decrease of $9 (1.8%) compared to $508 in the second quarter of 2024. Royalties, transportation, gathering and production fuel expenses increased as a percentage of Renewable Electricity revenues to 11.6% for the second quarter of 2025 from 11.3% in the second quarter of 2024.

Current wording

Royalties, transportation, gathering and production fuel expenses for our Renewable Electricity facilities for the third quarter of 2025 were $458, a decrease of $9 (1.9%) compared to $467 in the third quarter of 2024. Royalties, transportation, gathering and production fuel expenses decreased as a percentage of Renewable Electricity revenues to 10.8% for the third quarter of 2025 from 11.2% in the third quarter of 2024.

Previous wording

Royalties, transportation, gathering, and production fuel expenses in the second quarter of 2025 were $9,168, an increase of $91 (1.0%) compared to $9,077 in the second quarter of 2024. We make royalty payments to our fuel supply site partners on the commodities we produce and the associated Environmental Attributes. These royalty payments are typically structured as a percentage of revenue subject to a cap, with fixed minimum payments when Environmental Attribute prices fall below a defined threshold. To the extent commodity and Environmental Attributes’ prices fluctuate, our royalty payments may fluctuate upon renewal or extension of a fuel supply agreement or in connection with new projects. Our fuel supply agreements are typically structured as 20-year contracts, providing long-term visibility into the margin impact of future royalty payments.

Current wording

Royalties, transportation, gathering, and production fuel expenses in the third quarter of 2025 were $8,433, a decrease of $2,674 (24.1%) compared to $11,107 in the third quarter of 2024. We make royalty payments to our fuel supply site partners on the commodities we produce and the associated Environmental Attributes. These royalty payments are typically structured as a percentage of revenue subject to a cap, with fixed minimum payments when Environmental Attribute prices fall below a defined threshold. To the extent commodity and Environmental Attributes’ prices fluctuate, our royalty payments may fluctuate upon renewal or extension of a fuel supply agreement or in connection with new projects. Our fuel supply agreements are typically structured as 20-year contracts, providing long-term visibility into the margin impact of future royalty payments.

Previous wording

Depreciation and amortization in the second quarter of 2025 was $7,029, an increase of $1,206 (20.7%) compared to $5,823 in the second quarter of 2024. The increase was primarily driven by the timing of wellfield and maintenance capital investments placed into service and our Second Apex RNG Facility project being placed into service.

Current wording

Depreciation and amortization in the third quarter of 2025 was $8,341, an increase of $2,293 (37.9%) compared to $6,048 in the third quarter of 2024. The increase was primarily driven by the timing of wellfield and maintenance capital investments placed into service and our Second Apex RNG Facility project being placed into service.

Previous wording

We calculated and recorded impairment losses of $377 in the second quarter of 2025, an increase of $206 (120.5%) compared to $171 in the second quarter of 2024. The increase primarily relates to specifically identified assets deemed obsolete or non-operable.

Current wording

We calculated and recorded impairment losses of $48 in the third quarter of 2025, a decrease of $485 (91.0%) compared to $533 in the third quarter of 2024. The decrease primarily relates to specifically identified assets deemed obsolete or non-operable in third quarter of 2024 compared to the third quarter of 2025.

Previous wording

The effective tax rate of (52)% for the three months ended June 30, 2025 was lower than the rate for the three months ended June 30, 2024 of (93.5)% primarily due to discrete events related to the vesting of restricted grants on stock compensation during the three months ended June 30, 2025 as compared to the six months ended June 30, 2025 pre-tax book loss.

Current wording

The effective tax rate of (54.9)% for the three months ended September 30, 2025 was lower than the rate for the three months ended September 30, 2024 of 18.9% primarily due to the change in our pre-tax income (loss) for the three months ended September 30, 2025 as compared to the three months ended September 30, 2024.

Previous wording

Operating loss in the second quarter of 2025 was $2,355, a decrease of $3,223 (371.3%) compared to operating income of $868 in the second quarter of 2024. RNG operating income for the second quarter of 2025 was $9,228, a decrease of $2,487 (21.2%) compared to $11,715 in the second quarter of 2024. Renewable Electricity Generation operating loss for the second quarter of 2025 was $2,348, an increase of $379 (19.2%) compared to $1,969 for the second quarter of 2024.

Current wording

Operating income in the third quarter of 2025 was $4,448, a decrease of $18,260 (80.4%) compared to $22,708 in the third quarter of 2024. RNG operating income for the third quarter of 2025 was $11,036, a decrease of $22,580 (67.2%) compared to $33,616 in the third quarter of 2024. Renewable Electricity Generation operating loss for the third quarter of 2025 was $166, a decrease of $452 (73.1%) compared to $618 for the third quarter of 2024.

Previous wording

Total revenues in the first six months of 2025 were $87,730, an increase of $5,605 (6.8%) compared to $82,125 in the first six months of 2024. Total RNG commodity revenues increased $10,820 in the first six months of 2025 as compared to the first six months of 2024. Offsetting this increase is a decrease of $8,996 in recognized RIN revenues. Our counterparty margin share revenues also increased $1,056 in the first six months of 2025 as compared to the first six months of 2024. Also offsetting the increase was a decrease in realized RIN pricing of approximately 23.9% during the first six months of 2025 compared to the first six months of 2024.

Current wording

Total revenues in the first nine months of 2025 were $132,988, a decrease of $15,054 (10.2%) compared to $148,042 in the first nine months of 2024. Our total RNG attribute revenues decreased approximately $30,169 in the first nine months of 2025 as compared to the first nine months of 2024. Our realized RIN pricing decreased approximately 28.0% during the first nine months of 2025 compared to the first nine months of 2024. Total RNG commodity revenues increased $13,395 in the first nine months of 2025 as compared to the first nine months of 2024. Our counterparty margin share revenues also increased $1,460 in the first nine months of 2025 as compared to the first nine months of 2024.

Previous wording

We produced 2,802 MMBtu of RNG during the first six months of 2025, an increase of 8 MMBtu (0.3%) over the 2,794 MMBtu produced in the first six months of 2024. Our Rumpke facility produced 106 MMBtu more in the first six months of 2025 compared to the first six months of 2024 as a result of previously disclosed plant processing equipment failures that occurred in the first six months of 2024. Our Apex facility produced 61 MMBtu fewer in the first six months of 2025 compared to the first six months of 2024 as a result of cold weather conditions impacting gas feedstock availability, wellfield extraction environmental factors, as well as plant processing equipment failures. Offsetting the increase was the fourth quarter of 2024 sale of our Southern facility which produced 45 MMBtu in the first six months of 2024.

Current wording

We produced 4,247 MMBtu of RNG during the first nine months of 2025, an increase of 59 MMBtu (1.4%) compared to the 4,188 MMBtu produced in the first nine months of 2024. Our Rumpke facility produced 156 MMBtu more in the first nine months of 2025 compared to the first nine months of 2024 as a result of previously disclosed plant processing equipment failures that occurred in the first nine months of 2024. Our Apex facility produced 36 MMBtu fewer in the first nine months of 2025 compared to the first nine months of 2024 as a result of cold weather conditions impacting gas feedstock availability, wellfield extraction environmental factors, as well as plant processing equipment failures. Also offsetting the increase was the fourth quarter of 2024 sale of our Southern facility which produced 69 MMBtu in the first nine months of 2024.

Previous wording

Revenues from the Renewable Natural Gas segment in the first six months of 2025 were $79,280, an increase of $6,455 (8.9%) compared to $72,825 in the first six months of 2024. Average commodity pricing for natural gas for the first six months of 2025 was $3.55 per MMBtu, 71.5% higher than the first six months of 2024. During the first six months of 2025, we self-monetized 20,935 RINs, representing a 3,046 increase (17.0%) compared to 17,889 in the first six months of 2024. Average pricing realized on RIN sales during the first six months of 2025 was $2.42 as compared to $3.18 in the first six months of 2024, a decrease of 23.9%. This compares to the average D3 RIN index price for the first six months of 2025 of $2.39 as compared to $3.16 in the first six months of 2024, a decrease of approximately 24.4%. At June 30, 2025, we had approximately 309 MMBtu available for RIN generation, 3,009 RINs generated and unseparated, and 108 RINs generated and unsold. At June 30, 2024, we had approximately 357 MMBtu available for RIN generation and 4,707 RINs generated and unsold. There were no RINS generated and unseparated at June 30, 2024.

Current wording

Revenues from the Renewable Natural Gas segment in the first nine months of 2025 were $119,162, a decrease of $15,413 (11.5%) compared to $134,575 in the first nine months of 2024. Average commodity pricing for natural gas for the first nine months of 2025 was $3.39 per MMBtu, 61.4% higher than the first nine months of 2024. During the first nine months of 2025, we self-monetized 33,345 RINs, representing a 294 RIN decrease (0.9%) compared to 33,639 RINs in the first nine months of 2024. Average pricing realized on RIN sales during the first nine months of 2025 was $2.34 as compared to $3.25 in the first nine months of 2024, a decrease of 28.0%. This compares to the average D3 RIN index price for the first nine months of 2025 of $2.32 as compared to $3.22 in the first nine months of 2024, a decrease of approximately 28.0%. At September 30, 2025, we had approximately 331 MMBtu available for RIN generation, 749 RINs generated and unseparated, and 10 RINs generated and unsold. At September 30, 2024, we had approximately 308 MMBtu available for RIN generation and 146 RINs generated and unsold. There were no RINS generated and unseparated at September 30, 2024.

Previous wording

We produced approximately 88 MWh in Renewable Electricity in the first six months of 2025, a decrease of 11 MWh (11.1%) from 99 MWh in the first six months of 2024. Our Security facility produced approximately 6 fewer MWh in the first six months of 2025 compared to the first six months of 2024 as a result of ceasing operations in connection with the first quarter of 2024 sale. Our Bowerman facility produced approximately 5 fewer MWh in the first six months of 2025 compared to the first six months of 2024 primarily related to the planned preventative engine maintenance that was completed in the first six months of 2025.

Current wording

We produced approximately 132 MWh in Renewable Electricity in the first nine months of 2025, a decrease of 8 MWh (5.7%) from 140 MWh in the first nine months of 2024. Our Security facility produced approximately 6 fewer MWh in the first nine months of 2025 compared to the first nine months of 2024 as a result of ceasing operations in connection with the first quarter of 2024 sale. Our Bowerman facility produced approximately 2 fewer MWh in the first nine months of 2025 compared to the first nine months of 2024 primarily related to the planned preventative engine maintenance that was completed in the first nine months of 2025.

Previous wording

Revenues from Renewable Electricity facilities in the first six months of 2025 were $8,450, a decrease of $850 (9.1%) compared to $9,300 in the first six months of 2024. The decrease is primarily driven by the decrease in our Bowerman facility production volumes and the cessation of operation at our Security facility.

Current wording

Revenues from Renewable Electricity facilities in the first nine months of 2025 were $12,697, a decrease of $770 (5.7%) compared to $13,467 in the first nine months of 2024. The decrease is primarily driven by the decrease in our Bowerman facility production volumes and the cessation of operation at our Security facility.

Previous wording

In the first six months of 2025, 100.0% of Renewable Electricity Generation segment revenues were derived from the monetization of Renewable Electricity at fixed prices associated with underlying PPAs, as compared to 100.0% in the first six months of 2024. This provides us with certainty of price resulting from our Renewable Electricity sites.

Current wording

In the first nine months of 2025, 100.0% of Renewable Electricity Generation segment revenues were derived from the monetization of Renewable Electricity at fixed prices associated with underlying PPAs, as compared to 100.0% in the first nine months of 2024. This provides us with certainty of price resulting from our Renewable Electricity sites.

Previous wording

Operating and maintenance expenses for our RNG facilities in the first six months of 2025 were $31,045, an increase of $5,002 (19.2%) as compared to $26,043 in the first six months of 2024. Our Apex facility operating maintenance expenses increased approximately $1,449 primarily related to the timing of maintenance related to gas processing equipment as well as a wellfield operational enhancement program. Our McCarty facility operating maintenance expenses increased approximately $1,080 primarily related to timing of maintenance related to gas processing equipment as well as a wellfield operational enhancement program. Our Rumpke facility operating maintenance expenses increased approximately $980 primarily related to a wellfield operational enhancement program. Our Atascocita facility operating maintenance expenses increased approximately $746 primarily due to gas processing equipment maintenance as well as a wellfield operational enhancement program. Our Raeger facility operating maintenance expenses increased approximately $453 primarily related to media change outs and disposal costs.

Current wording

Operating and maintenance expenses for our RNG facilities in the first nine months of 2025 were $44,970, an increase of $6,341 (16.4%) as compared to $38,629 in the first nine months of 2024. Our Apex facility operating maintenance expenses increased approximately $1,724 primarily related to increased utility expense, the timing of maintenance related to gas processing equipment, increased media change outs, as well as a wellfield operational enhancement program. Our Rumpke facility operating maintenance expenses increased approximately $1,518 primarily related to a wellfield operational enhancement program, increased media change outs, and increased utility expense. Our Atascocita facility operating maintenance expenses increased approximately $1,168 primarily due to gas processing equipment maintenance, timing of media change outs, a wellfield operational enhancement program, and increased utility expense. Our McCarty facility operating maintenance expenses increased approximately $776 primarily related to increased media change outs, timing of maintenance related to gas processing equipment as well as a wellfield operational enhancement program. Our Coastal facility operating maintenance expenses increased approximately $498 primarily related to media change outs. Our Monroeville facility operating maintenance expenses increased approximately $224 primarily related to a process equipment failure.

Previous wording

Royalties, transportation, gathering and production fuel expenses for our RNG facilities for the first six months of 2025 were $15,783, an increase of $1,218 (8.4%) compared to $14,565 in the first six months of 2024. We recorded an increase to our Pico facility earnout of approximately 10.6% during the first six months of 2025. Royalties, transportation, gathering and production fuel expenses decreased as a percentage of RNG revenues to 19.9% for the first six months of 2025 from 20.0% in the first six months of 2024.

Current wording

Royalties, transportation, gathering and production fuel expenses for our RNG facilities for the first nine months of 2025 were $23,757, a decrease of $1,449 (5.7%) compared to $25,206 in the first nine months of 2024. We recorded an increase to our Pico facility earnout of approximately 13.4% during the first nine months of 2025. Royalties, transportation, gathering and production fuel expenses increased as a percentage of RNG revenues to 19.9% for the first nine months of 2025 from 18.7% in the first nine months of 2024.

Previous wording

Operating and maintenance expenses for our Renewable Electricity facilities in the first six months of 2025 were $8,160, an increase of $1,151 (16.4%) compared to $7,009 in the first six months of 2024. The increase was primarily driven by an increase in non-capitalizable costs at our Montauk Ag Renewables projects.

Current wording

Operating and maintenance expenses for our Renewable Electricity facilities in the first nine months of 2025 were $10,748, an increase of $1,036 (10.7%) compared to $9,712 in the first nine months of 2024. The increase was primarily driven by an increase in non-capitalizable costs at our Montauk Ag Renewables projects.

Previous wording

Royalties, transportation, gathering and production fuel expenses for our Renewable Electricity facilities for the first six months of 2024 were $956, a decrease of $74 (7.2%) compared to $1,030 in the first six months of 2024. As a percentage of Renewable Electricity Generation segment revenues, royalties, transportation, gathering and production fuel expenses increased to 11.3% from 11.1%.

Current wording

Royalties, transportation, gathering and production fuel expenses for our Renewable Electricity facilities for the first nine months of 2025 were $1,414, a decrease of $82 (5.5%) compared to $1,496 in the first nine months of 2024. As a percentage of Renewable Electricity Generation segment revenues, royalties, transportation, gathering and production fuel expenses remained unchanged at 11.1%.

Previous wording

Depreciation and amortization in the first six months of 2025 was $13,293, an increase of $2,036 (18.1%) compared to $11,257 in the first six months of 2024. The increase was primarily driven by the timing of wellfield and maintenance capital investments placed into service and our Second Apex RNG Facility project being placed into service.

Current wording

Depreciation and amortization in the first nine months of 2025 was $21,634, an increase of $4,329 (25.0%) compared to $17,305 in the first nine months of 2024. The increase was primarily driven by the timing of wellfield and maintenance capital investments placed into service and our Second Apex RNG Facility project being placed into service.

Previous wording

We calculated and recorded impairment losses of $2,424 in the first six months of 2025, an increase of $1,725 (246.8%) compared to $699 in the first six months of 2024. The impairment losses in the first six months of 2025 primarily relate to a development project RNG interconnection for which the local utility is no longer accepting RNG into its distribution system. All associated costs related to the interconnection were impaired and specifically identified assets deemed obsolete or non-operable. The impairment losses in the first six months of 2024 primarily relate to the remaining book value of assets at the Security facility and various RNG equipment that was deemed obsolete for current operations.

Current wording

We calculated and recorded impairment losses of $2,472 in the first nine months of 2025, an increase of $1,240 (100.6%) compared to $1,232 in the first nine months of 2024. The impairment losses in the first nine months of 2025 primarily relate to a development project RNG interconnection for which the local utility is no longer accepting RNG into its distribution system. All associated costs related to the interconnection were impaired and specifically identified assets deemed obsolete or non-operable. The impairment losses in the first nine months of 2024 primarily relate to the remaining book value of assets at the Security facility and various RNG equipment that was deemed obsolete for current operations.

Previous wording

Other expenses in the first six months of 2025 was $2,446, a decrease of $1,105 (82.4%) compared to $1,341in the first six months of 2024. The decrease is primarily related to proceeds received from the sale of gas rights ahead of the fuel supply agreement expiration of our Security facility in the first six months of 2024.

Current wording

Other expenses in the first nine months of 2025 was $3,533, an increase of $497 (16.4%) compared to $3,036 in the first nine months of 2024. The increase is primarily related to proceeds received from the sale of gas rights ahead of the fuel supply agreement expiration of our Security facility in the first nine months of 2024 which is offset by decreased interest expense of $752.