Montauk Renewables, Inc.
For the period ended Mar 31, 2026. Filed May 6, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2026 · Filed May 6, 2026
MNTK$2.72+12.9%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-09-30; filed 2025-11-05.
0001193125-25-267126
Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSCurrent report: 10-Q
Period ended 2026-03-31; filed 2026-05-06.
0001193125-26-209250
Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 222 previous paragraphs and 186 current paragraphs.
94 unchanged; 55 reworded; 36 added; 62 removed; 11 previous and 1 current paragraphs rearranged.
Tables are not compared: 10 previous and 7 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (36)
Current report
With the change in REC generation passed by the state of North Carolina in 2024, we continue our negotiations with other utility users to provide swine RECs from our expected first phase production of MWh. We expect the annual REC capacity of the Turkey, NC location to be approximately 120 RECs and have signed a REC agreement with Duke Energy for annual sales of 47 RECs, which represents approximately 45% of the set-aside compliance volumes for swine under North Carolina’s Renewable Energy and Energy Efficiency Portfolio Standard. We continue to optimize our monetization strategies for the currently uncontracted portion of annually generated RECs and are in various stages of negotiation and responses to requests from obligated purchasers. Many of these agreements contain competitive details and, while there remains a limited active swine REC market in North Carolina, we believe the prices we are negotiating will be market based. We believe our average achievable price per swine REC could fall within the range of $200 to $400 per REC.
Current report
We have commissioned our Montauk Ag Renewables project and are producing syngas. We expect our production and sale of renewable electricity from our syngas to commence in May 2026, with revenue generation triggered upon the calibration of the sales meter from the interconnection utility. We have operated the full production line as part of the commissioning process and expect to be able to produce our targeted first phase of 47 MWh and 120 RECs annually with approximately 50 percent of our installed reactor capacity. Our capital investment expectation for this first phase of the project remains unchanged at $200,000. We expect a ramp-up in production volumes throughout 2026 directly related to additional feedstock collection.
Current report
Raeger Gas Rights Extension
Current report
In March 2026, we successfully negotiated a five-year gas rights extension at our Raeger facility. The extension secures our access to biogas feedstock at the site through 2031, supporting the continued operation of the facility.
Current report
On March 9, 2026, , we entered into a five year New Senior Credit Facility with HASI that consists of up to $200,000 in senior indebtedness, of which $155,000 is outstanding as of March 31, 2026. We used this facility to refinance our existing outstanding debt and have $45,000 available to borrow subject to terms of the agreement.
Current report
In April 2026, we sent a letter confirming termination of our contract with European Energy North America (“EENA”) for the delivery of biogenic carbon dioxide (“CO2”). The termination was due to EENA’s failure to provide certain contractual assurances and notices related to the construction of their Texas-based e-methanol facility. We are currently exploring alternative offtake arrangements with interested parties at our Atascocita location. The timing of capital expenditures will be synchronous with the finalization of replacement offtake agreements. We continue to anticipate a capital investment between $30,000 and $40,000.
Current report
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. Our business is dependent on federal and state programs that support renewable fuels, including RIN, RECs and greenhouse gas reduction initiatives. These programs are subject to legislative and regulatory changes that could impact the timing and level of incentives available to our projects.
Current report
On June 13, 2025, the EPA issued a final rule partially waiving the 2024 cellulosic biofuel volume requirement, reducing the requirement from 1,090 to 1,010 D3 RINs based on actual production levels. In connection with this action, the EPA made Cellulosic Waiver Credits (“CWCs”) available to obligated parties as an additional compliance mechanism.
Current report
On March 27, 2026, the EPA finalized RFS standards for 2026 and 2027, as well as a partial waiver of the 2025 cellulosic biofuel volume requirement. The 2025 cellulosic volume requirement was reduced from 1,376 to 1,210 D3 RINs, with CWCs also made available for 2025 compliance. Final cellulosic biofuel volume requirements for 2026 and 2027 were established at 1,360 and 1,430 D3 RINs, respectively. These volumes reflect the EPA’s assessment of expected RIN generation capacity and the related pathway constraints of the end-use demand for CNG/LNG transportation fuels derived from biogas.
Current report
On August 22, 2025, the EPA issued decisions on 175 Small Refinery Exemption (“SRE”) petitions, granting full exemptions to 63 petitions and partial exemptions to 77 petitions for the 2023 and 2024 compliance years. Additional SRE exemptions were granted by EPA on November 7, 2025. Full exemptions were granted to 2 petitions, 12 petitions were granted partial exemptions and 2 petitions were denied. These exemptions reduced renewable fuel blending obligations for affected parties and increased the availability of RINs in the market. In conjunction with these actions, the EPA finalized a reallocation mechanism as part of the 2026 and 2027 RFS rulemaking to redistribute a significant portion of exempted volumes into future RVOs. This reallocation is intended to partially offset the impact of prior exemptions by increasing future compliance requirements. The EPA, however, did not provide any reallocations of D3 RINs as part of the 2026 and 2027 RVO in the final rule issued March 27, 2026. This is primarily due to the statutory conditions on cellulosic biofuel volume requirements, which do not allow EPA to set the total applicable volume of cellulosic biofuel at a volume that is greater than the projected volume available, and which necessarily excludes cellulosic carryover RINs.
Current report
We continue to monitor regulatory developments related to the RFS and other low-carbon fuel programs. Changes in regulatory requirements, including the implementation of BRRR, adjustments to RVOs, the availability of CWCs, and the treatment of SREs, may affect the supply-demand balance for RINs and the overall economics of our projects.
Current report
Income Tax and Tax Attributes
Current report
Included within our deferred tax assets are various energy-related federal tax credits totaling $17,339. This total is primarily comprised of approximately $14,663 in IRC code section 45 production tax credits from our applicable facilities. We also have recorded approximately $923 and estimated $1,753 in IRC code section 48 investment tax credits from our previous Pico digestion expansion and second Apex RNG facility, respectively, although our conclusions on the tax credits from our second Apex RNG facility are not finalized.
Current report
When placed into service, Montauk Ag Renewables will generate primarily a mix federal investment tax and production tax credits and North Carolina state tax attributes. Based on past experience with other large and qualifying projects, we believe that 50-75% of project capital will quality for IRC code section 48 investment tax credits and, depending on a variety of factors for projects started within various safe harbor guidelines, the tax benefits could be up to 30%. For qualifying projects that do not meet the various safe harbor guidelines, we expect the tax benefits to range between 6-12% for qualifying assets. As it relates to our capital expenditures and future electric power production, we estimate IRC code section 48 investment tax credits and section 45 production tax credits could range between $6,000 - $20,000, collectively. We give no assurances that our estimates on tax attributes for our Montauk Ag Renewables project will meet these expectations but expect to begin reviews of federal tax attributes and continue our review for North Carolina state income and property tax attributes in 2026.
Current report
The evaluation of deferred tax assets requires judgment in assessing the likely future tax consequences of events that have been recognized in our financial statements or tax returns and forecasting future profitability by tax jurisdiction. We complete a full analysis annually of our deferred tax assets and liabilities. We expect our New Senior Credit Facility could generate additional tax attributes related to interest expense limitations under applicable IRC code section 163(j). We continue to review our future tax planning including but not limited to the ability to stack tax attributes, limitation on deductibility and expiration, but we do not currently expect to transfer, as applicable, any tax attributes generated.
Current report
Total revenues in the first quarter of 2026 were $46,428, an increase of $3,825 (9.0%) compared to $42,603 in the first quarter of 2025. The increase is related to environmental attribute revenues of approximately $4,236 from RINs sold related to the distribution of RINs from our GreenWave joint venture which had no RINs distributed and sold in the first quarter of 2025. Our first quarter of 2026 RNG volumes sold under fixed/floor-price contracts decreased approximately 82.1% as compared to first quarter of 2025 as a result of the expiration of fixed price pathway contract expiration. Our RNG commodity revenue decreased approximately 49.3% which was offset by an increase in RINs sold of 25.5%.
Current report
We produced 1,354 MMBtu of RNG during the first quarter of 2026, a decrease of 35 MMBtu (2.5%) compared to 1,389 MMBtu produced in the first quarter of 2025. Our Galveston facility produced 41 MMBtu fewer in the first quarter of 2026 compared to the first quarter of 2025 as a result of landfill host assuming responsibility of wellfield operations and maintenance beginning in the first quarter of 2026. Our McCarty facility produced 88 MMBtu fewer in the first quarter of 2026 compared to the first quarter of 2025 as a result of landfill host wellfield bifurcation and changes to the wellfield collection system. Our Atascocita facility produced 43 MMBtu more in the first quarter of 2026 compared to the first quarter of 2025 as a result of landfill host wellfield operational and collection system enhancements. Our Apex facility produced 37 MMBtu more in the first quarter of 2026 as compared to first quarter of 2025 as a result of the June 2025 commissioning of our second Apex facility and increased feedstock gas from improvements we are making to the landfill collection system.
Current report
We produced approximately 43 MWh in Renewable Electricity in the first quarter of 2026, a decrease of 3 MWh (6.5%) from 46 MWh in the first quarter of 2025. Our Pico facility produced approximately 2 MWh fewer in the first quarter of 2026 compared to the first quarter of 2025. The decrease is primarily related to decommissioning of one our engines in the second quarter of 2025 due to the shift towards boiler heat for our digestion process. Our Bowerman facility produced approximately 1 MWh fewer in the first quarter of 2026 compared to the first quarter of 2025. The decrease is primarily related to original equipment manufacturer required lifecycle maintenance on our engines, beginning in the first quarter of 2026.
Current report
General and Administrative Revenues
Current report
We recorded approximately $4,236 in the first quarter of 2026 related to RINs distributed from our joint venture, GreenWave. We sold approximately 1,755 RINs distributed from GreenWave and the RINs related to pathway dispensing, which are not included within our operating metrics table.
Current report
Total general and administrative expenses in the first quarter of 2026 were $8,019, a decrease of $735 (8.4%) compared to $8,754 in the first quarter of 2025. The decrease is primarily related to the vesting of certain restricted share awards in 2025. Our corporate insurance fees decreased approximately $261 in first quarter of 2026 as compared to first quarter of 2025
Current report
Operating and Maintenance Expenses
Current report
Total operating and maintenance expenses in the first quarter of 2026 were $23,155, an increase of $5,598 (31.9%) compared to $17,557 in the first quarter of 2025.
Current report
We recorded approximately $4,247 in the first quarter of 2026 related to the cost of RINs distributed from GreenWave and the costs related to pathway dispensing associated with our dispensing RNG in exclusive unique and proprietary pathways, which are not included within our operating metrics table. There were no such expenses incurred during the first quarter of 2025.
Current report
Other (Income) Expenses
Current report
Other income in the first quarter of 2026 was $1,306, an increase of $2,497 (209.7%) compared to other expenses of $1,191 in the first quarter of 2025. In the first quarter of 2026, we recorded approximately $3,320 in income related to our joint venture investment in GreenWave. There was no such income reported during the first quarter of 2025. Also in the first quarter of 2026, we recorded approximately $944 in debt extinguishment costs from refinancing our credit agreement.
Current report
Income Tax Benefit
Current report
On March 9, 2026, we entered into a five year New Senior Credit Facility with HASI that provides up to $200,000 in senior indebtedness. The New Senior Credit Facility has a 24 month availability period during which only interest is payable quarterly. After the availability period, we will be subject to quarterly principal payments equal to 1.25% of the total outstanding principal balance. The New Senior Credit Facility has an interest rate of 10.25% and matures in 2031.
Current report
The New Senior Credit Facility is subject to customary financial covenants. The New Senior Credit Facility is subject to customary events of default and contemplates that we would be in default if, for any fiscal quarter (x) the average monthly D3 RIN price is less than $1.00 per RIN and (y) the consolidated average quarterly trailing EBITDA over the previous four quarters is less than $10,000. The New Senior Credit Facility includes various affirmative and negative covenants that require us to meet specified financial ratios and financial tests, as defined in the underlying agreement.
Current report
Total Net Leverage Ratio of not more than 4.00 to 1.00,
Current report
Various other financial covenants or mandatory prepayments
Current report
The New Senior Credit Facility financial debt covenants commence June 30, 2026.
Current report
Under the prior amended credit agreement, as of December 31, 2025, $44,000 was outstanding under the term loan and we had $85,000 of outstanding borrowings under the revolving credit facility. The proceeds from the New Senior Credit Facility were used to repay all outstanding debt as of March 9, 2026.
Current report
As of March 9, 2026, $155,000 was outstanding under the New Senior Credit Facility.
Current report
Renewables in North Carolina and Bowerman RNG, respectively. Our capital expenditure cash payments were $30,867. The variance is primarily driven by the timing differences related to capital expenditures in accounts payable.
Current report
We are an emerging growth company, as defined in the JOBS Act. We will lose our emerging growth company status on December 31, 2026. As a result, we will no longer be permitted to take advantage of certain reduced disclosure and other requirements applicable to emerging growth companies, including the ability to delay the adoption of new or revised accounting standards.
Removed paragraphs (62)
Previous report
Bowerman RNG Project
Previous report
In 2023, we announced a planned development of a renewable natural gas landfill project in Irvine, CA at the Frank R. Bowerman Landfill to process the large and growing volumes of biogas in excess of the existing capacity of the REG facility. We expect facility commissioning in 2027 and expect the capital investment to range between $85,000 - $95,000. As part of the agreement to develop the RNG plant, we agreed to work with the landfill host on the landfill's management of its wellfield and flare facility permit requirements and this work remains ongoing. The project is anticipated to have production nameplate capacity of approximately 3,600 MMBtu per day, assuming currently forecasted biogas feedstock volumes projected to be available from the host landfill at the time of commissioning. We continue to incur capital expenditures for this project.
Previous report
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 report
Tulsa REG Conversion to RNG
Previous report
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 report
With the limited swine REC market in North Carolina, we have been negotiating our REC agreements individually. Many of these agreements contain competitive details and, while there remains a limited active swine REC market in North Carolina, we believe the prices we are negotiating will be market based. While we believe these prices will not be based on solar REC prices seen in other US markets, those indices are more illustrative of our expectations of North Carolina swine REC prices than US market wind REC prices. Depending on a variety of factors, we believe our negotiated swine REC prices could fall into the ranges experienced by solar REC indices at $200 to $450 per REC.
Previous report
We continue our development efforts in North Carolina and continue to expect our production and revenue generation activities to commence in the first quarter of 2026. Alongside our construction efforts for the first phase, for which total investment continues to be projected between $180 million and $220 million, we continue to progress our negotiations with obligated utilities to monetize all remaining uncontracted Renewable Energy Credits (or RECs) from our projected first phase production volumes.
Previous report
Waste-stream Biogas Recovery
Previous report
In 2024, we announced a collaboration with Emvolon to transform methane emissions from waste stream biogas into high-value carbon negative fuel. The initial pilot project at our Atascocita facility in Houston, TX has exceeded its anticipated results. Following a successful field demonstration project, together with Emvolon, we plan to deploy a portfolio of biogas-based sites with an aggregate annual production capacity of up to 50 metric tons of green methanol by 2030. We do not expect short term financial benefits from this joint development venture nor a disruption to our operations.
Previous report
Blue Granite RNG Project
Previous report
In the first quarter of 2025, we received notice from the utility that it will no longer accept RNG into its distribution system, which was in opposition of the letter of intent that was issued when we were awarded the gas rights to the site. As a result, we impaired the capital associated with the early design of RNG equipment. We continue to review various alternatives related to interconnection opportunities as part of our considerations for offtake options with the understanding those alternatives may differ from initial development project assumptions, including physical and virtual and fixed interconnections. We are also reviewing alternatives for this site around producing energy other than RNG. We have paused further capital expenditures related to this site while we consider all alternatives and continue discussions with the landfill host.
Previous report
On June 13, 2025, the EPA released both the Partial Waiver of the 2024 Cellulosic Biofuel Volume Requirement (Final Rule) and RFS Standards for 2026 and 2027, Partial Waiver of 2025 Cellulosic Biofuel Volume Requirement, and Other Changes (Proposed Rule). The final 2024 cellulosic biofuel volume requirement was reduced from 1,090 to 1,010 million D3 RINs. This reduction was based on actual volumes of D3 RINs generated in 2024. In addition, the EPA is making Cellulosic Waiver Credits ("CWCs") available for 2024 as an additional compliance flexibility for obligated parties.
Previous report
In the EPA’s proposed rule released on June 13, 2025, the cellulosic biofuel volumes for 2025 were proposed to be reduced from 1,376 to 1,190 RINs and make CWCs available for 2025. The proposed cellulosic biofuel volume requirements for 2026 and 2027 are 1,300 and 1,360 D3 RINs, respectively. These volumes are less than the EPA had previously finalized for 2025 and are based on their belief that cellulosic RIN generation from biogas-derived CNG/LNG during 2026-2030 will be constrained by the total usage capacity of CNG/LNG as transportation fuel. These proposed rules are subject to comment periods prior to finalization.
Previous report
On August 22, 2025, EPA issued decisions on 175 Small Refinery Exemption (SRE) petitions. EPA granted full exemption (100%) to 63 petitions and partial exemptions (50%) to 77 petitions. The SRE decisions exempted corresponding volumes of gasoline and diesel for the 2023 and 2024 compliance years, and increased the number of RINs available for obligated parties to use for compliance with their RFS obligations. Taking into consideration the expected impacts of the SRE decisions on the RFS market, on September 16, 2025, EPA co-proposed a Supplemental Rule that provides additional volumes in 2026 and 2027 RVOs that will represent complete (100%) reallocation or partial (50%) reallocation for SREs granted in full or in part, respectively, for 2023 and 2024, as well as those projected to be granted for 2025.
Previous report
EPA has indicated an intention to finalize the Supplemental Rule & the RVOs for 2025, 2026 and 2027 by the end of 2025, however, the duration of the US federal government shut down and any residual impacts on EPA staffing after the shutdown concludes may extend finalization of these items into 2026.
Previous report
Despite collaboration with the landfill host at our Rumpke facility on our gas collection efforts, wellfield extraction environmental factors continue to impact gas extraction at the site. While the landfill continues to expand its waste intake and we continue to expand wellfield collection, our volumes were impacted during 2024. Mitigation efforts related to wellfield environmental factors continue in 2025 as the benefits from 2024 efforts did not achieve anticipated results.
Previous report
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 report
$90,000. While we have incurred capital expenditures for this project, we don’t anticipate significant 2025 capital expenditures.
Previous report
Total revenues in the third quarter of 2025 were $45,258, a decrease of $20,659 (31.3%) compared to $65,917 in the third quarter of 2024. The decrease is related to a decrease in the number of RINs we self-marketed from 2025 RNG production in the third quarter of 2025. In addition, realized RIN pricing decreased approximately 31.4% during the third quarter of 2025 compared to the third quarter of 2024.
Previous report
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 report
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 report
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 report
Total general and administrative expenses in the third quarter of 2025 were $6,511, a decrease of $3,526 (35.1%) compared to $10,037 for the third quarter of 2024. The decrease is primarily related to the accelerated vesting of certain restricted share awards as a result of the termination of an employee in the third quarter of 2024.
Previous report
Operating and maintenance expenses for our Renewable Electricity facilities in the third quarter of 2025 were $2,588, a decrease of $115 (4.3%) compared to $2,703 in the third quarter of 2024. The decrease is primarily driven by our Tulsa facility operating and maintenance expenses which decreased approximately $106 primarily related to timing of annual engine maintenance.
Previous report
Other Expenses
Previous report
Other expenses in the third quarter of 2025 was $1,088, a decrease of $607 (35.8%) compared to $1,695 the third quarter of 2024. The decrease is related to a reduction in interest expense in the third quarter of 2025 compared to the third quarter of 2024.
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Income Tax Expense
Previous report
Comparison of Nine Months Ended September 30, 2025 and 2024
Previous report
Revenues for the Nine Months Ended September 30, 2025 and 2024
Previous report
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 report
Renewable Natural Gas Revenues
Previous report
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 report
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 report
Renewable Electricity Generation Revenues
Previous report
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 report
Expenses for the Nine Months Ended September 30, 2025 and 2024
Previous report
General and Administrative Expenses
Previous report
Total general and administrative expenses were $24,310 for the first nine months of 2025, a decrease of $3,892 (13.8%) compared to $28,202 for the first nine months of 2024. The decrease was primarily related to the accelerated vesting of certain restricted share awards as a result of the termination of an employee in the first nine months of 2024.
Previous report
Renewable Natural Gas Expenses
Previous report
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.
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Reworded paragraphs (55)
Previous wording
Montauk Renewables is a renewable energy company specializing in the recovery and processing of biogas from landfills and other non-fossil fuel sources for beneficial use as a replacement to fossil fuels. We develop, own, and operate RNG projects, using proven technologies that supply RNG into the transportation industry and use RNG to produce Renewable Electricity. We are one of the largest U.S. producers of RNG, having participated in the industry for over 30 years. We established our operating portfolio of 11 RNG and two Renewable Electricity projects through self-development, partnerships, and acquisitions that span seven states.
Current wording
Montauk Renewables is a renewable energy company specializing in the recovery and processing of biogas from landfills and other non-fossil fuel sources for beneficial use as a replacement to fossil fuels. We develop, own, and operate RNG projects, using proven technologies that supply RNG into the transportation industry and use RNG to produce Renewable Electricity. We are one of the largest U.S. producers of RNG. We established our operating portfolio of 11 RNG and two Renewable Electricity projects through self-development, partnerships, and acquisitions that span seven states.
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 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.
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 and as the RFS is based on annual compliance, a decision not to commit to transfer and monetize available RINs during a period will impact the timing of our operating revenues and operating profit recognized during a period. We sold all 3,903 D3 RINs generated and available for sale from our 2025 RNG production in the first quarter of 2026. We had approximately 165 RINs generated but unseparated at March 31, 2026. The average D3 RIN index price for the first quarter of 2026 was approximately $2.41. The following table summarizes select historical data related to RINs generated, RINs sold, and RINs generated but unsold. Realized prices for Environmental Attributes monetized in a year may not correspond directly to index prices due to the forward selling of commitments. The results related to our GreenWave joint venture are excluded from the table below. 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 2021, through a wholly-owned subsidiary Montauk Ag Renewables, we completed an asset purchase related to developing technology and a centralized processing location to recover residual natural resources from the waste streams of modern agriculture and to refine and recycle such waste products through proprietary and other processes in order to produce high quality renewable natural gas and recapture nitrogen, and micronutrient organic fertilizer alternatives (the “Montauk Ag Renewables Acquisition”).
Current wording
In 2021, Montauk Ag Renewables purchased technology and assets (the “Montauk Ag Renewables Acquisition”) to recover residual natural resources from swine waste and to refine and recycle such waste products through proprietary and other processes to produce high quality renewable electricity, North Carolina swine RECs, and micronutrient organic fertilizer alternatives. Upon completion of the first phase of the project, we expect that it will annually produce 41 MWh of electric power, approximately 120 RECs and 8.7 tons of organic fertilizer alternative.
Previous wording
With the change in REC generation passed by the state of North Carolina in 2024, we are in negotiations with other utility users to provide swine RECs from our expected first phase production of MWh. We expect our annual REC capacity to be approximately 120 RECs, of which the Duke REC agreement is for 47 RECs. In September 2025, a joint motion was filed with the North Carolina Utility Commission (“NCUC”) by various entities seeking to modify and delay the 2025 requirements of certain aspects of the North Carolina Clean Energy and Portfolio Standard, specifically, the portfolio standards relating to swine RECs. We note this filing is not dissimilar to historical annual filings in response to the historically limited swine REC market in North Carolina. In October 2025, we filed response comments to the joint motion with the NCUC requesting they grant modifications or delays only to individual power supplies that have demonstrated need, require power suppliers that have not achieved 100% compliance in 2025 to apply any cumulatively acquired swine RECs to the suppliers unsatisfied 2025 pro rata obligation, and modify the swine REC set-aside for 2026 and beyond to match the requirement originally set by North Carolina in 2018.
Current wording
In September 2025, a joint motion was filed with the North Carolina Utility Commission (“NCUC”) by various entities seeking to modify and delay the 2025 requirements of certain aspects of the North Carolina Clean Energy and Portfolio Standard, specifically, the portfolio standards relating to swine RECs. We note this filing is consistent with historical annual filings in response to the historically limited swine REC market in North Carolina. In October 2025, we filed response comments to the joint motion with the NCUC requesting they grant modifications or delays only to individual power supplies that have demonstrated need, require power suppliers that have not achieved 100% compliance in 2025 to apply any cumulatively acquired swine RECs to the suppliers unsatisfied 2025 pro rata obligation, and modify the swine REC set-aside for 2026 and beyond to match the requirement originally set by North Carolina in 2018. In January 2026, the NCUC denied the request for waivers and determined that parties must use banked RECs to meet 2025 compliance targets. The compliance obligations for those utilities filing the September 2025 joint motion continue to increase through 2029.
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 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.
Current wording
We continue to develop opportunities with Montauk Ag Renewables and can give no assurances that our plans related to this acquisition will meet our expectations. We estimate our Montauk Ag Renewables project to potentially generate tax attributes once placed into service consisting mainly of a mix of federal investment tax and production tax credits and North Carolina state tax attributes. We give no assurances that our estimates on tax attributes for our Montauk Ag Renewables project will meet 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. 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.
Current wording
Through our wholly-owned subsidiary Pesta Energy, LLC, we entered into an agreement with Pioneer Renewables Energy Marketing, LLC to form a joint venture, GreenWave Energy Partners, LLC. 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 pathways. We recorded income from GreenWave of approximately $3,320 in the first quarter of 2026. We also received 1,398 in separated RINs distributed from GreenWave of which we have 425 available for sale as of March 31, 2026. 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
Shifts in Revenue Composition for Projects from New Fuel Sources: As we expand into livestock farm projects, our revenue composition from Environmental Attributes will change. We believe that livestock farms offer us a lucrative opportunity, as the value of LCFS credits for dairy farm projects, for example, are a multiple of those realized from landfill projects due to the significantly more attractive CI score of livestock farms.
Current wording
Shifts in Revenue Composition for Projects from New Fuel Sources: As we expand into agriculture projects, our revenue composition from Environmental Attributes will change. We believe that agriculture offers us a lucrative opportunity, as the value of LCFS credits for dairy farm projects, for example, are a multiple of those realized from landfill projects due to the significantly more attractive CI scoring.
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 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.
Current wording
On July 12, 2023, the EPA issued final rules establishing Renewable Fuel Standard (“RFS”) volume requirements for 2023 through 2025. Final cellulosic biofuel volumes were set at 838, 1,090 and 1,376 D3 RINs for 2023, 2024 and 2025, respectively. The rule also included significant changes to the RFS program, referred to as the biogas regulatory reform rule (“BRRR”), which modified the manner in which RINs are generated beginning January 1, 2025. We have registered all of our facilities under the BRRR provisions and have obtained Q-RIN status for RIN generation commencing January 1, 2025. Under these provisions, biogas from a single facility is limited to a single qualifying use under the RFS (e.g., as a biointermediate, RNG, or CNG/LNG via a biogas closed distribution system), although non-RFS uses at the same facility remain permissible.
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. 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 could 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
On March 15, 2025, the Full-Year Continuing Appropriations and Extensions Act, 2025 was signed into law. In May 2025, we were informed that the law eliminated the United States Department of Agriculture Advanced Biofuel Payment Program. We received approximately $200 annually since 2021 under this program.
Current wording
On March 15, 2025, the Full-Year Continuing Appropriations and Extensions Act, 2025 was signed into law. In May 2025, we were informed that the law eliminated the United States Department of Agriculture Advanced Biofuel Payment Program. We received approximately $200 annually since 2021 under this program. In 2025, we received notice that the program was reinstated and that retroactive payments would be issued for the missed quarters while the program was closed. In the first quarter of 2026, we recorded approximately $265 related to the quarters for which the program was closed.
Previous wording
The BRRR requires that all unseparated K3 RINs generated by the RNG producer on RNG volumes injected into the commercial pipeline distribution system only become valid for sale once they are separated with the support of dispensing statements by a registered dispenser or RIN separator. This process could result in delays to the RNG producer's receipt of the separated K2 RINs from the dispenser. This rule change could also result in a RNG producer's failure to generate K3 RINs for a given gas flow month if the registered biogas producer negligently fails to generate the necessary biogas tokens before the end of the subsequent gas flow month. We expect this initial year impact of the EPA BRRR rule will increase our RINs unsold at the end of 2025.
Current wording
The BRRR requires that all unseparated K3 RINs generated by the RNG producer on RNG volumes injected into the commercial pipeline distribution system only become valid for sale once they are separated with the support of dispensing statements by a registered dispenser or RIN separator. This process could result in delays to the RNG producer's receipt of the separated K2 RINs from the dispenser. This rule change could also result in a RNG producer's failure to generate K3 RINs for a given gas flow month if the registered biogas producer negligently fails to generate the necessary biogas tokens before the end of the subsequent gas flow month.
Previous wording
We report revenues from two operating segments: Renewable Natural Gas and Renewable Electricity Generation. Corporate relates to additional discrete financial information for the corporate function; primarily used as a shared service center for maintaining functions such as executive, accounting, treasury, legal, human resources, tax, environmental, engineering, and other operations functions not otherwise allocated to a segment. As such, the Corporate segment is not determined to be an operating segment but is discretely disclosed for purposes of reconciliation to the Company’s consolidated financial statements.
Current wording
We report revenues from two operating segments: Renewable Natural Gas and Renewable Electricity Generation. Corporate relates to additional discrete financial information for the corporate function; primarily used as a shared service center for maintaining functions such as executive, accounting, treasury, legal, human resources, tax, environmental, engineering, and other operations functions not otherwise allocated to a segment. Corporate also includes revenues from RINs distributed from GreenWave which are not included in our operating metrics table. As such, the Corporate segment is not determined to be an operating segment but is discretely disclosed for purposes of reconciliation to the Company’s consolidated financial statements.
Previous wording
Renewable Natural Gas Revenues: We record revenues from the production and sale of RNG and the generation and sale of the Environmental Attributes derived from RNG, such as RINs and LCFS credits. Our RNG revenues from Environmental Attributes are recorded net of a portion of Environmental Attributes shared with off-take counterparties as consideration for such counterparties using the RNG as a transportation fuel. We had certain pathway provider sharing arrangements expiring throughout 2024 and in 2025. While we have not yet experienced a significant increase in Environmental Attributes shared with pathway providers in our renewals, our most recent pathway renewals have been at higher percentages than our historical percentages. We have entered into pathway renewals beginning in the third quarter of 2025 for certain volumes at percentages consistent with our historical percentages. Historically, we have monetized less than 25% of our RNG volumes under these fixed-price agreements. We continue to have certain contracts coming for renewal throughout 2025 which we could renew under short-term fixed price contracts to provide time for mitigation of these recent market trends.
Current wording
Renewable Natural Gas Revenues: We record revenues from the production and sale of RNG and the generation and sale of the Environmental Attributes derived from RNG, such as RINs and LCFS credits. Our RNG revenues from Environmental Attributes are recorded net of a portion of Environmental Attributes shared with off-take counterparties as consideration for such counterparties using the RNG as a transportation fuel. We entered into pathway renewals in the third quarter of 2025 for certain volumes at percentages consistent with our historical percentages. Historically, we have monetized less than 25% of our RNG volumes under these fixed-price agreements.
Previous wording
Corporate Revenues: Corporate reports realized and unrealized gains or losses under our gas hedge programs. The Company does not have any active gas hedge programs. Corporate also relates to additional discrete financial information for the corporate function; primarily used as a shared service center for maintaining functions such as executive, accounting, treasury, legal, human resources, tax, environmental, engineering and other operations functions not otherwise allocated to a segment.
Current wording
Corporate and other revenues: Corporate reports realized and unrealized gains or losses under our gas hedge programs. We do not have any active gas hedge programs. Corporate also relates to additional discrete financial information for the corporate function; primarily used as a shared service center for maintaining functions such as executive, accounting, treasury, legal, human resources, tax, environmental, engineering and other operations functions not otherwise allocated to a segment. Includes revenues from RINs distributed from GreenWave which are not included in our operating metrics table.
Previous wording
In the third quarter of 2024, we began to experience trends with several of our landfill hosts delaying their installation of or delaying our ability to install wellfield collection infrastructure in active waste placement areas, a practice historically common and critical to our projections of feedstock gas and, therefore, production. These landfill-driven delays impact the timing of collection system enhancement installations and the resulting timing of our production increases. We expect these trends to continue through 2025.
Current wording
In 2024, we began to experience trends with several of our landfill hosts delaying their installation of or delaying our ability to install wellfield collection infrastructure in active waste placement areas, a practice historically common and critical to our projections of feedstock gas and, therefore, production. These landfill-driven delays impact the timing of collection system enhancement installations and the resulting timing of our production increases. We expect these trends to continue throughout 2026.
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 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.
Current wording
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 2026. 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
Changes made by the landfill host to the wellfield collection system at the McCarty facility have contributed to elevated nitrogen in the feedstock received by our facility. Additionally, the landfill host modified the wellfield bifurcation approach which has reduced the quantity of feedstock received at our facility. We are working with the landfill host but continue to have lower volumes of feedstock available to be processed at the McCarty facility.
Current wording
Changes made by the landfill host to the wellfield collection system at the McCarty facility have contributed to elevated nitrogen in the feedstock received by our facility. Additionally, the landfill host modified the wellfield bifurcation approach which has reduced the quantity of feedstock received at our facility. We are working with the landfill host but continue to have lower volumes of feedstock available to be processed at the McCarty facility. We expect these trends to continue through 2026.
Previous wording
Quality of Biogas: We are reliant upon the quality and availability of biogas from our site partners. The quality of the waste at our landfill project sites is subject to change based on the volume and type of waste accepted. Variations in the quality of the biogas could affect our RNG production levels. At three of our projects, we operate the wellfield collection system, which allows greater control over the quality and consistency of the collected biogas. At two of our projects, McCarty and Galveston, we have operating and management agreements by which we earn revenue for managing the wellfield collection systems. Additionally, our dairy farm project benefits from the consistency of feedstock and controlled environment of collection of waste to improve biogas quality.
Current wording
Quality of Biogas: We are reliant upon the quality and availability of biogas from our site partners. The quality of the waste at our landfill project sites is subject to change based on the volume and type of waste accepted. Variations in the quality of the biogas could affect our RNG production levels. At three of our projects, we operate the wellfield collection system, which allows greater control over the quality and consistency of the collected biogas. At our McCarty project, we have an operating and management agreement by which we earn revenue for managing the wellfield collection system. Additionally, our dairy farm project benefits from the consistency of feedstock and controlled environment of collection of waste to improve biogas quality.
Previous wording
RNG Production from Our Growth Projects: We anticipate increased production at certain of our existing projects as open landfills continue to take in additional waste and the amount of gas available for collection increases. Delays in commencement of production or extended commissioning issues at a new project or a conversion project, such as those we are currently experiencing at Blue Granite as described above, would delay any realization of production from that project.
Current wording
RNG Production from Our Growth Projects: We anticipate increased production at certain of our existing projects as open landfills continue to take in additional waste and the amount of gas available for collection increases. Delays in commencement of production or extended commissioning issues at a new project or a conversion project, such as those we are currently experiencing at Blue Granite, would delay any realization of production from that project.
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 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.
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 currently we only sell RINs in the calendar year they are separated. We have entered into commitments to transfer a significant portion of RINs generated and available for sale from 2026 RNG production at an average price of $2.42. 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
Project Operating and Maintenance Expenses: Operating and maintenance expenses primarily consist of expenses related to the collection and processing of biogas, including biogas collection system operating and maintenance expenses, biogas processing, operating and maintenance expenses, and related labor and overhead expenses. At the project level, this includes all labor and benefit costs, ongoing corrective and proactive maintenance, project level utility charges, rent, health and safety, employee communication, and other general project level expenses. Unanticipated feedstock processing or gas conditioning equipment failures occurring outside our planned preventative maintenance program can increase project operating and maintenance expenses and reduce production volumes. The timing of gas conditioning and process equipment preventative maintenance intervals could impact the timing and amount of our operating and maintenance expenses within a given quarter.
Current wording
Operating and Maintenance Expenses: Operating and maintenance expenses primarily consist of expenses related to the collection and processing of biogas, including biogas collection system operating and maintenance expenses, biogas processing, operating and maintenance expenses, and related labor and overhead expenses. At the project level, this includes all labor and benefit costs, ongoing corrective and proactive maintenance, project level utility charges, rent, health and safety, employee communication, and other general project level expenses. Unanticipated feedstock processing or gas conditioning equipment failures occurring outside our planned preventative maintenance program can increase project operating and maintenance expenses and reduce production volumes. The timing of gas conditioning and process equipment preventative maintenance intervals could impact the timing and amount of our operating and maintenance expenses within a given quarter. Expenses from RINs distributed from GreenWave and the costs related to pathway dispensing are not included in our operating metrics table but are recorded within Operating and Maintenance Expenses.
Previous wording
General and Administrative Expenses: General and administrative expenses primarily consist of corporate expenses and unallocated support functions for our operating facilities, including personnel costs for executive, finance, accounting, investor relations, legal, human resources, operations, engineering, environmental registration and reporting, health and safety, IT and other administrative personnel and professional fees and general corporate expenses. From time to time, we may be parties to legal proceedings arising in the normal course of business which could increase our legal expenses. We continue to expect increased general and administrative expenses associated with our ongoing development of Montauk Ag Renewables in 2025. We account for share-based compensation related to grants made through its equity and incentive compensation plan under FASB ASC 718. In April 2025, we accelerated the vesting of certain restricted share awards to non-executives which were unvested as of the first quarter of 2025 as a result of termination. We recognized $1,550 of one time non-cash stock compensation expense in April 2025 within general and administration expenses as a result of the termination which we do not anticipate will recur in the second half of 2025. For more information, see Note 15 to our unaudited condensed consolidated financial statements related to share-based compensation.
Current wording
General and Administrative Expenses: General and administrative expenses primarily consist of corporate expenses and unallocated support functions for our operating facilities, including personnel costs for executive, finance, accounting, investor relations, legal, human resources, operations, engineering, environmental registration and reporting, health and safety, IT and other administrative personnel and professional fees and general corporate expenses. From time to time, we may be parties to legal proceedings arising in the normal course of business which could increase our legal expenses. We continue to expect increased general and administrative expenses associated with our ongoing development of Montauk Ag Renewables in 2026. We account for share-based compensation related to grants made through its equity and incentive compensation plan under FASB ASC 718. For more information, see Note 15 to our unaudited condensed consolidated financial statements related to share-based compensation.
Previous wording
The following table summarizes the key operating metrics described above, which are metrics we use to measure performance.
Current wording
The following table summarizes the key operating metrics described above, which are metrics we use to measure performance. Results related to our GreenWave joint venture are excluded from the table below.
Previous wording
The following table summarizes our revenues, expenses and net (loss) income for the periods set forth below:
Current wording
The following table summarizes our revenues, expenses and net income (loss) for the periods set forth below:
Previous 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.
Current wording
Revenues from the Renewable Natural Gas segment in the first quarter of 2026 were $38,075, a decrease of $376 (1.0%) compared to $38,451 in the first quarter of 2025. Average commodity pricing for natural gas for the first quarter of 2026 was $5.04 per MMBtu, 38.1% higher than the first quarter of 2025. During the first quarter of 2026, we self-marketed 12,403 RINs, representing a 2,518 increase (25.5%) compared to 9,885 in the first quarter of 2025. Average pricing realized on RIN sales during the first quarter of 2026 was $2.42 as compared to $2.46 in the first quarter of 2025, a decrease of 1.7%. Average D3 RIN index price for the first quarter of 2026 was $2.41 compared to $2.43 in the first quarter of 2025, a decrease of approximately 0.6%. At March 31, 2026, we had approximately 431 MMBtu available for RIN generation, 165 RINs generated and unseparated, and 79 RINs generated and unsold. At March 31, 2025, we had approximately 336 MMBtu available for RIN generation, 1,482 RINs generated and unseparated, and 3,916 RINs generated and unsold.
Previous 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.
Current wording
Revenues from Renewable Electricity facilities in the first quarter of 2026 were $4,117, a decrease of $35 (0.8%) compared to $4,152 in the first quarter of 2025. The decrease was primarily driven by the decrease in production volumes.
Previous 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.
Current wording
In the first quarter of 2026, 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 quarter of 2025. 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 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.
Current wording
Operating and maintenance expenses for our RNG facilities in the first quarter of 2026 were $14,353, an increase of $263 (1.9%) as compared to $14,090 in the first quarter of 2025. Our Rumpke facility operating and maintenance expenses increased approximately $397 primarily related to preventative maintenance media changes. Our Apex facility operating and maintenance expenses increased approximately $262 primarily related to increased utility expense which was partially offset by decreased preventative maintenance media changes. Our Atascocita facility operating and maintenance expenses increased approximately $246 primarily related to wellfield operational enhancements. Offsetting the increase was our Galveston facility operating and maintenance expenses which decreased approximately $580. The decrease is primarily due to the timing of maintenance of gas processing equipment and preventative maintenance media changes.
Previous 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.
Current wording
Operating and maintenance expenses for our Renewable Electricity facilities in the first quarter of 2026 were $4,484, an increase of $1,133 (33.8%) compared to $3,351 in the first quarter of 2025. The increase is primarily driven by an increase in non-capitalizable costs of approximately $808 at our Montauk Ag Renewables project. Our Bowerman facility operating and maintenance expenses increased approximately $371 primarily related to timing of gas processing preventative maintenance.
Previous 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.
Current wording
Royalties, transportation, gathering, and production fuel expenses in the first quarter of 2026 were $8,037, an increase of $466 (6.2%) compared to $7,571 in the first quarter of 2025. 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
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.
Current wording
Royalties, transportation, gathering and production fuel expenses for our RNG facilities for the first quarter of 2026 were $7,581, an increase of $467 (6.6%) compared to $7,114 in the first quarter of 2025. There was a reduction to our Pico earnout that was recorded in the first quarter of 2025. We settled the Pico earnout obligation in fourth quarter of 2025. Royalties, transportation, gathering and production fuel expenses increased as a percentage of RNG revenues to 19.9% for the first quarter of 2026 from 18.5% in the first quarter of 2025.
Previous 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.
Current wording
Royalties, transportation, gathering and production fuel expenses for our Renewable Electricity facilities for the first quarter of 2026 were $456, a decrease of $1 (0.2%) compared to $457 in the first quarter of 2025. Royalties, transportation, gathering and production fuel expenses increased as a percentage of Renewable Electricity revenues to 11.1 % for the first quarter of 2026 from 11.0% in the first quarter of 2025.
Previous 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.
Current wording
Depreciation and amortization in the first quarter of 2026 was $8,373, an increase of $2,109 (33.7%) compared to $6,264 in the first quarter of 2025. 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 $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.
Current wording
We calculated and recorded impairment losses of $443 in the first quarter of 2026, a decrease of $1,604 (78.4%) compared to $2,047 in the first quarter of 2025. The decrease primarily relates to the impairment of an RNG development project for which the local utility no longer accepted RNG into its distribution system in specifically identified assets deemed obsolete or non-operable.
Previous wording
Income tax expense for the three months ended September 30, 2025 was calculated using an estimated effective tax rate which differs from the U.S. federal statutory rate of 21.0% primarily related to the adjustment of Production Tax Credits, Investment Tax Credits as well as stock based compensation vesting.
Current wording
Income tax benefit for the three months ended March 31, 2026 was calculated using an estimated effective tax rate which differs from the U.S. federal statutory rate of 21.0% primarily related to the adjustment of Production Tax Credits as well as stock based compensation.
Previous 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.
Current wording
The effective tax rate of 101.4% for the three months ended March 31, 2026 was higher than the rate for the three months ended March 31, 2025 of 40.6% primarily due to the change in our pre-tax book loss for the three months ended March 31, 2026 as compared to the three months ended March 31, 2025.
Previous wording
Operating (Loss) Income for the Nine Months Ended September 30, 2025 and 2024
Current wording
Operating (Loss) Income for the Three Months Ended March 31, 2026 and 2025
Previous 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.
Current wording
Operating loss in the first quarter of 2026 was $1,599 compared to operating income of $410 in the first quarter of 2025. RNG operating income for the first quarter of 2026 was $8,745, a decrease of $1,624 (15.7%) compared to $10,369 in the first quarter of 2025. Renewable Electricity Generation operating loss for the first quarter of 2026 was $2,171, an increase of $1,150 (112.6%) compared to $1,021 for the first quarter of 2025.
Previous wording
The following table presents EBITDA and Adjusted EBITDA, non-GAAP financial measures, for each of the periods presented below. We present EBITDA and Adjusted EBITDA because we believe the measures assist investors in analyzing our performance across reporting periods on a consistent basis by excluding items that we do not believe are indicative of our core operating performance. In addition, EBITDA and Adjusted EBITDA are financial measurements of performance that management and the board of directors use in their financial and operational decision-making and in the determination of certain compensation programs. EBITDA and Adjusted EBITDA are supplemental performance measures that are not required by or presented in accordance with GAAP. EBITDA and Adjusted EBITDA should not be considered alternatives to net (loss) income or any other performance measure derived in accordance with GAAP, or as an alternative to cash flows from operating activities or a measure of our liquidity or profitability.
Current wording
The following table presents EBITDA and Adjusted EBITDA, non-GAAP financial measures, for each of the periods presented below. We present EBITDA and Adjusted EBITDA because we believe the measures assist investors in analyzing our performance across reporting periods on a consistent basis by excluding items that we do not believe are indicative of our core operating performance. In addition, EBITDA and Adjusted EBITDA are financial measurements of performance that management and the board of directors use in their financial and operational decision-making and in the determination of certain compensation programs. EBITDA and Adjusted EBITDA are supplemental performance measures that are not required by or presented in accordance with GAAP. EBITDA and Adjusted EBITDA should not be considered alternatives to net income (loss) or any other performance measure derived in accordance with GAAP, or as an alternative to cash flows from operating activities or a measure of our liquidity or profitability.
Previous wording
The following table provides our EBITDA and Adjusted EBITDA for the periods presented, as well as a reconciliation to net income, which is the most directly comparable GAAP measure, for the three months ended September 30, 2025 and 2024:
Current wording
The following table provides our EBITDA and Adjusted EBITDA for the periods presented, as well as a reconciliation to net income (loss), which is the most directly comparable GAAP measure, for the three months ended March 31, 2026 and 2025:
Showing the first 40 of 55 pairs. Open the source sections for the rest.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
Our net deferred tax asset position is a result of NOLs, fixed assets, intangibles, and various tax credit carryforwards. The realization of deferred tax assets is dependent upon our ability to generate sufficient future taxable income during the periods in which those temporary differences become deductible, prior to the expiration of the tax attributes. We generally complete our review for new tax attributes from assets when applicable, but generally as new assets are placed into service.
Rearranged previous paragraphs (11)
Previous report — wording carried elsewhere
The following table summarizes our revenues, expenses and net income for the periods set forth below:
Previous report — wording carried elsewhere
Operating Income for the Three Months Ended September 30, 2025 and 2024
Previous report — wording carried elsewhere
The following table summarizes the key operating metrics described above, which are metrics we use to measure performance.
Previous report — wording carried elsewhere
RINs are generated in the month that the gas is dispensed to generate RINs, which occurs the month after the gas is produced. Volumes under fixed/floor-price arrangements generate RINs which we do not self-market. K3 RIN separation occurs after the gas is dispensed (RINs generated but unseparated).
Previous report — wording carried elsewhere
One MMBtu of RNG has the same energy content as 11.6935 gallons of ethanol, and thus may generate 11.6935 RINs under the RFS program.
Previous report — wording carried elsewhere
Represents RINs available to be self-marketed by us during the reporting period.
Previous report — wording carried elsewhere
Represents gas production which has not been dispensed to generate RINs.
Previous report — wording carried elsewhere
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 report — wording carried elsewhere
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 report — wording carried elsewhere
Income tax expense for the nine months ended September 30, 2025 was calculated using an estimated effective tax rate which differs from the U.S. federal statutory rate of 21.0% primarily due to the benefit from production tax credits.
Previous report — wording carried elsewhere
The following table provides our EBITDA and Adjusted EBITDA for the periods presented, as well as a reconciliation to net (loss) income, which is the most directly comparable GAAP measure, for the nine months ended September 30, 2025 and 2024: