Montauk Renewables, Inc.

Previous wording

In addition to historical financial information, the following discussion and analysis contains forward-looking statements that involve risks, uncertainties, and assumptions. Our actual results may differ materially from those anticipated in these forward-looking statements as a result of many factors, including those discussed under “Cautionary Note Regarding Forward-Looking Statements,” “Item 1A.–Risk Factors” of our 2025 Annual Report, and elsewhere in this report.

Current wording

In addition to historical financial information, the following discussion and analysis contains forward-looking statements that involve risks, uncertainties, and assumptions. Our actual results may differ materially from those anticipated in these forward-looking statements as a result of many factors, including those discussed under “Cautionary Note Regarding Forward-Looking Statements” and elsewhere in this report, “Item 1A.–Risk Factors” of our 2025 Annual Report, and in our other SEC filings.

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 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.

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 had approximately 137 RINs generated but unseparated at June 30, 2026. The average D3 RIN index price for the second quarter of 2026 was approximately $2.54. The following table summarizes select historical data related to RINs generated, RINs sold, and RINs generated but unsold from our RNG operations. 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 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.

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

Previous wording

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 wording

Our capital investment expectation for this first phase of the project remains unchanged at $200,000. We continue to expect a ramp-up in production volumes throughout 2026 directly related to additional feedstock collection.

Previous 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.

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 $7,092 in the first six months of 2026. We also received 2,909 in separated RINs distributed from GreenWave. 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

Carbon Dioxide Beneficial Use Opportunity

Current wording

Atascocita Carbon Dioxide Beneficial Use Opportunity

Previous wording

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 wording

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 continue to explore 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, however our 2026 development capital range does not include additional capital outlay for this CO2 project.

Previous 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.

Current wording

Shifts in Revenue Composition for Projects from New Fuel Sources: We believe that agriculture offers us a lucrative opportunity For example, the value of LCFS credits for dairy farm projects, are a multiple of those realized from landfill projects due to the significantly more attractive CI scoring. Additionally, we believe that REC generation from swine farm projects, increases revenues from regulatory frameworks other than the RFS. As we expand into agriculture projects, our revenue composition from Environmental Attributes will change.

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. 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.

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 2026, we recorded approximately $327 related to the Advanced Biofuel Payment Program.

Previous wording

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 wording

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 to 75% of project capital will qualify for IRC 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 and 12% for qualifying assets. As it relates to our capital expenditures and future electric power production, we estimate IRC Section 48 investment tax credits and section 45 production tax credits could range between $6,000 and $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 to review federal tax attributes and continue our review for North Carolina state income and property tax attributes in 2026.

Previous wording

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 wording

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 IRC Section 163(j). We continue to review our future tax planning including 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.

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 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.

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 fixed-price agreements.

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, 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 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 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.

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 the majority of RINs generated and available for sale from our expected 2026 third quarter RNG production at an average price of $2.66. 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

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.

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. We do not believe the May 2026 restricted stock unit awards granted by the Board of Directors will significantly increase share-based compensation expense for the second half of 2026. For more information, see Note 15 to our unaudited condensed consolidated financial statements related to share-based compensation.

Previous wording

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 wording

Total revenues in the second quarter of 2026 were $54,020, an increase of $8,893 (19.7%) compared to $45,127 in the second quarter of 2025. The increase is primarily related to environmental attribute revenues of approximately $8,402 from RINs sold related to the distribution of RINs from our GreenWave joint venture which had no RINs distributed and sold in the second quarter of 2025. Our second quarter of 2026 RNG volumes sold under fixed/floor-price contracts decreased approximately 80.0% as compared to second quarter of 2025 as a result of the expiration of fixed price pathway contracts. Our RNG commodity revenue decreased approximately 63.7% which was offset by an increase in RINs sold of 29.1%. Also, our RINs generated and unseparated decreased approximately 95.4% as a result of the transition to BRRR in 2025.

Previous wording

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 wording

We produced 1,456 MMBtu of RNG during the second quarter of 2026, an increase of 43 MMBtu (3.0%) compared to 1,413 MMBtu produced in the second quarter of 2025. Our McCarty facility produced 53 MMBtu more in the second quarter of 2026 compared to the second quarter of 2025 as a result of landfill host wellfield operational and collection system enhancements. Our Apex facility produced 39 MMBtu more in the second quarter of 2026 as compared to second quarter of 2025 as a result of increased feedstock gas from our improvements related to the landfill collection system. Our Galveston facility produced 26 MMBtu fewer in the second quarter of 2026 compared to the second quarter of 2025 as a result of landfill host assuming responsibility of wellfield operations and maintenance beginning in 2026. Our Atascocita facility produced 37 MMBtu fewer in the second quarter of 2026 compared to the second quarter of 2025 as a result of landfill host wellfield operational and collection system enhancement project timing as well as planned facility maintenance.

Previous 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.

Current wording

Revenues from the Renewable Natural Gas segment in the second quarter of 2026 were $40,936, an increase of $107 (0.3%) compared to $40,829 in the second quarter of 2025. Average commodity pricing for natural gas for the second quarter of 2026 was $2.90 per MMBtu, 15.7% lower than the second quarter of 2025. During the second quarter of 2026, we self-marketed 14,265 RINs, representing a 3,215 increase (29.1%) compared to 11,050 in the second quarter of 2025. Average pricing realized on RIN sales during the second quarter of 2026 was $2.45 as compared to $2.42 in the second quarter of 2025, an increase of 1.2%. Average D3 RIN index price for the second quarter of 2026 was $2.54 compared to $2.36 in the second quarter of 2025, an increase of approximately 7.6%. At June 30, 2026, we had approximately 429 MMBtu available for RIN generation, 137 RINs generated and unseparated, and 0 RINs generated and unsold. 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.

Previous 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.

Current wording

In both the second quarter of 2026 and 2025, 100.0% of Renewable Electricity Generation segment revenues were derived from the monetization of Renewable Electricity at fixed prices associated with underlying PPAs. This provides us with certainty of price resulting from our Renewable Electricity sites.

Previous wording

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 wording

Total general and administrative revenues in the second quarter of 2026 were $8,579. We recorded approximately $8,402 in the second quarter of 2026 related to RINs distributed from our joint venture, GreenWave. We sold approximately 3,387 RINs distributed from GreenWave and the RINs related to pathway dispensing, which are not included within our operating metrics table. There were no such revenues incurred during the second quarter of 2025.

Previous wording

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 wording

Total operating and maintenance expenses in the second quarter of 2026 were $29,061, an increase of $7,197 (32.9%) compared to $21,864 in the second quarter of 2025.

Previous wording

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 wording

We recorded approximately $8,348 in the second 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 second quarter of 2025.

Previous 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.

Current wording

Operating and maintenance expenses for our RNG facilities in the second quarter of 2026 were $15,568, a decrease of $1,387 (8.2%) as compared to $16,955 in the second quarter of 2025. Our McCarty facility operating and maintenance expenses decreased approximately $891 primarily related to the timing of maintenance related to gas processing equipment. Our Apex facility operating and maintenance expenses decreased approximately $451 primarily related to timing of gas processing preventative maintenance.

Previous 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.

Current wording

Operating and maintenance expenses for our Renewable Electricity facilities in the second quarter of 2026 were $5,062, an increase of $253 (5.3%) compared to $4,809 in the second quarter of 2025. The increase is driven by an increase in non-capitalizable costs of approximately $1,162 at our Montauk Ag Renewables project. Our Bowerman facility operating and maintenance expenses decreased approximately $716 primarily related to decreased wellfield operational costs and timing of gas processing preventative maintenance.

Previous 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.

Current wording

Royalties, transportation, gathering, and production fuel expenses in the second quarter of 2026 were $8,814, a decrease of $354 (3.9%) compared to $9,168 in the second 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 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.

Current wording

Royalties, transportation, gathering and production fuel expenses for our Renewable Electricity facilities for the second quarter of 2026 were $521, an increase of $22 (4.4%) compared to $499 in the second quarter of 2025. Royalties, transportation, gathering and production fuel expenses decreased as a percentage of Renewable Electricity revenues to 11.5% for the second quarter of 2026 from 11.7% in the second quarter of 2025.

Previous 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.

Current wording

Depreciation and amortization in the second quarter of 2026 was $7,904, an increase of $875 (12.4%) compared to $7,029 in the second quarter of 2025. The increase was primarily driven by our Second Apex RNG Facility project being placed into service.

Previous 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.

Current wording

Income tax expense for the three months ended June 30, 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 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.

Current wording

The effective tax rate of 89.8% for the three months ended June 30, 2026 was higher than the rate for the three months ended June 30, 2025 of (52.0%) primarily due to the change in our pre-tax book loss for the three months ended June 30, 2026 as compared to the three months ended June 30, 2025.

Previous 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.

Current wording

Operating loss in the second quarter of 2026 was $75, a decrease of $2,280 (96.8%) compared to $2,355 in the second quarter of 2025. RNG operating income for the second quarter of 2026 was $9,643, an increase of $415 (4.5%) compared to $9,228 in the second quarter of 2025. Renewable Electricity Generation operating loss for the second quarter of 2026 was $2,132, a decrease of $216 (9.2%) compared to $2,348 for the second quarter of 2025.

Previous wording

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 wording

We produced approximately 87 MWh in Renewable Electricity in the first six months of 2026, a decrease of 1 MWh (1.1%) compared to 88 MWh in the first six months of 2025. Our Pico facility produced approximately 2 fewer MWh in the first six months of 2026 compared to the first six months of 2025 which is primarily related to decommissioning of one of our engines in 2025 due to the shift towards boiler heat for our digestion process. Our Bowerman facility produced approximately 2 MWh more in the first six months of 2026 compared to the first six months of 2025 which is primarily related to increased gas flows due to landfill host wellfield improvements.

Previous wording

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 wording

Total general and administrative expenses in the first six months of 2026 were $15,686, a decrease of $2,112 (11.9%) compared to $17,798 in the first six months of 2025. The decrease is primarily related to a one-time accelerated vesting of $1,550 from certain restricted share awards in the first six months of 2025 due to the termination of an employee and the vesting of share awards of approximately $942. Our professional fees increased approximately $514 driven by integrated audit fees.

Previous 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.

Current wording

Royalties, transportation, gathering and production fuel expenses for our RNG facilities for the first six months of 2026 were $15,875, an increase of $92 (0.6%) compared to $15,783 in the first six months of 2025. Royalties, transportation, gathering and production fuel expenses increased as a percentage of RNG revenues to 20.1% for the first six months of 2026 from 19.9% in the first six months of 2025.

Previous 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.

Current wording

We calculated and recorded impairment losses of $1,093 in the first six months of 2026, a decrease of $1,331 (54.9%) compared to $2,424 in the first six months of 2025. The impairment losses in the first six months of 2026 primarily relate to various RNG equipment that was deemed obsolete for current operations. 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.

Previous wording

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 wording

Other income in the first six months of 2026 was $3,598, an increase of $6,044 (247.1%) compared to other expenses of $2,446 the first six months of 2025. In the first six months of 2026, we recorded approximately $7,092 in income related to our joint venture investment in GreenWave. There was no such income from GreenWave in the first six months of 2025. We recorded approximately $944 in debt extinguishment costs in the first six months of 2026 related to our refinancing of our credit agreement.

Previous wording

Operating (Loss) Income for the Three Months Ended March 31, 2026 and 2025

Current wording

Operating (Loss) Income for the Six Months Ended June 30, 2026 and 2025

Previous wording

We recorded impairment losses of $443 and $2,047 for the three months ended March 31, 2026 and 2025, respectively. The impairment losses recorded in first three months of 2026 relate to specifically identified assets deemed obsolete or non-operable. The impairment losses recorded in first three months of 2025 primarily relate to an RNG interconnection impairment at our Blue Granite RNG project.

Current wording

We recorded impairment losses of $650 and $377 for the three months ended June 30, 2026 and 2025, respectively. The impairment losses recorded in the three months ended June 30, 2026 relate to specifically identified assets deemed obsolete or non-operable. The impairment losses recorded in the three months ended June 30, 2025 primarily relate to an RNG interconnection impairment.

Previous wording

At March 31, 2026 and March 31, 2025, our cash and cash equivalents, net of restricted cash, was $25,947 and $40,111, respectively. We intend to fund development projects using cash flows from operations and borrowings under our revolving credit facility. We believe that we will have sufficient cash flows from operations and borrowing availability under our credit facility to meet our debt service obligations and anticipated required capital expenditures (including for projects under development) for the next 12 to 24 months. However, we are subject to business and operational risks that could adversely affect our cash flows and liquidity.

Current wording

At June 30, 2026 and June 30, 2025, our cash and cash equivalents, net of restricted cash, was $15,757 and $29,133, respectively. We intend to fund development projects using cash flows from operations and borrowings under our revolving credit facility. We believe that we will have sufficient cash flows from operations and borrowing availability under our credit facility to meet our interest-only debt service obligations and anticipated required capital expenditures (including for projects under development) for the next 12 to 24 months. However, we are subject to business and operational risks that could adversely affect our cash flows and liquidity.

Previous wording

At March 31, 2026, we had debt before debt issuance costs of $155,000, compared to debt before debt issuance costs of $56,000 at December 31, 2025.

Current wording

At June 30, 2026, we had debt before debt issuance costs of $155,000, compared to debt before debt issuance costs of $129,000 at December 31, 2025.

Previous wording

Under the New Senior Credit Facility, we are required to maintain the following as defined in the underlying agreement:

Current wording

The New Senior Credit Facility financial debt covenants commenced June 30, 2026 and we are required to maintain the following as defined in the underlying agreement: