Montauk: 2022 revenues up on higher RNG, RIN pricing

By Erin Voegele | March 20, 2023

Montauk Renewables Inc. released fourth quarter results on March 16, reporting that full-year revenues were up in 2022 due to increased renewable natural gas (RNG) and renewable identification number (RIN) pricing. RNG production was down slightly, but renewable power production increased.

Montauk produced 5.5 MMBtu of RNG last year, down slightly from 5.7 MMBtu in 2021. RNG production company’s landfill gas-to-RNG project at the Atascocita Landfill in Humble, Texas, was down 0.2 MMBtu last year due to process equipment failure. Production was also down 0.1 MMBtu at Montauk’s Rumpke project in Cincinnati, Ohio, due to lower inlet flow coming off the wellfield. RNG production at the Apex landfill in Amsterdam, Ohio, was also down 0.1 MMBtu due to landfill filling pattern changes that resulted in lower production. RNG production at Montauk’s Pico Energy LLC manure digester project in Jerome, Idaho was up 0.1 MMBtu. The increase is attributed to improvements related to the existing digester process at the facility. RNG production at the company’s landfill gas project in Galveston, Texas, was also up 0.1 MMBtu due to wellfield changes and efficiency optimization of the plant’s process equipment.

In addition to RNG, Montauk also produced 190 MWh of renewable electricity last year, up from 183 MWh in 2021. The company’s Security project in Houston, Texas, produced 10 MWh in 2022, compared to no production in 2021 as the result of an engine restoration project. Electricity production at Montauk’s Tulsa project in Sand Springs, Oklahoma, was down 3 MWh due to reduced feedstock availability at the landfill.

The company last year consolidated its Montauk Ag Renewable location in Magnolia, North Carolina, to Turkey, North Carolina. During a fourth quarter earnings call, Montauk President and CEO Sean McClain said the company began the process of relocating the existing Magnolia reactor to the Turkey location during the fourth quarter of last year. Commercial operations are expected to begin in 2024. That project will generate electricity from swine waste. McClain said Montauk continues to engage with regulatory agencies in North Carolina to confirm eligibility of the project to generate renewable energy credits under the state’s renewable portfolio standard (RPS).

McClain also discussed the ongoing capacity expansion project at the company’s Pico facility in Idaho. Design work related to the capacity increase was completed during the third quarter of last year. The expanded facility is expected to begin commercial operations during the third quarter of 2023.

In addition, Montauk last year announced plans to construct a second RNG processing facility at the Apex landfill in Ohio. The project is expected to boost RNG processing capacity by 40 percent and be operational in 2024.

Montauk reported $205.6 million in revenues for 2022, up 38.8 percent when compared to 2021. Net income was $35.2 million, up 877.3 percent. Non-GAAP adjusted EBITDA was $70.5 million in 2022, up 152.4 percent when compared to 2021.

Moving into 2023, Montauk expects RNG production volumes to range between 5.7 and 6.1 million MMBtu. Renewable electricity production is expected to range between 195 and 205 thousand MWh.