Thu, May 8, 8:56 PM (9 days ago)
**Montauk Renewables, Inc. (MNTK) Q1 2025 Financial Summary** **Financial Health & Performance:** - **Revenue:** $42.6 million, up 9.8% YoY, driven by RIN monetization. - **Net Income:** $(464,000), down from $1.85 million YoY, due to impairment losses and lower RIN prices. - **Operating Income:** $410,000, down 82.7% YoY. - **Cash Flow from Operations:** $9.14 million, down from $14.29 million YoY. - **Cash & Equivalents:** $40.11 million, down from $63.28 million YoY. **Profit Margins & Cash Flow:** - **Operating Margin:** 0.96%, down from 6.11% YoY. - **Net Margin:** -1.09%, down from 4.77% YoY. - **Free Cash Flow:** $(2.47 million), down from $3.78 million YoY. **Earnings Changes & Trends:** - **RIN Prices:** Average realized RIN price down 24.3% to $2.46. - **Production:** RNG production down 1.6% to 1,389 MMBtu. - **Expenses:** Operating expenses up 15.9% to $42.19 million, driven by maintenance and impairment losses. **Quarterly Performance Discussion:** - **RNG Segment:** Revenues up 13.1% to $38.45 million, but operating income down 10.5% to $10.37 million. - **REG Segment:** Revenues down 13.5% to $4.15 million, with an operating loss of $1.02 million. - **Corporate:** Reported a loss of $8.94 million. **Uncertainties & Future Operations Impact:** - **Regulatory:** EPA BRRR rule and LCFS changes impact RIN generation and pricing. - **Operational:** Wellfield extraction issues and landfill host delays affect production. - **Development:** Ongoing projects like Second Apex, Bowerman, and Montauk Ag face uncertainties in timing and costs. **Key Metrics:** - **RNG Production:** 1,389 MMBtu, down 1.6% YoY. - **RINs Sold:** 9,885, up 25.3% YoY. - **RIN Inventory:** 3,916, up 16.9% YoY. **Liquidity & Capital Resources:** - **Debt:** $53 million, down from $56 million YoY. - **Credit Facility:** $117.82 million available under revolving credit facility. - **Capital Expenditures:** $11.63 million in Q1, with $100-150 million expected for 2025 development projects.