Q2 2026 Montauk Renewables Inc Earnings Call Transcript
Key Points
- Montauk Renewables Inc (MNTK) began generating power for sale from its Turkey, North Carolina facility in July 2026, which is expected to be eligible for both swine RECs and enhanced RECs.
- The company has secured long-term agreements with over 50 farming locations, providing access to over 350,000 of the 400,000 to 450,000 hog spaces targeted for the first phase of its Turkey project.
- Total revenues increased 19.7% year-over-year to $54.0 million in Q2 2026, driven by a $8.4 million increase in environmental attribute revenues, including RINs from the GreenWave joint venture.
- Adjusted EBITDA surged 144.5% to $12.3 million in Q2 2026, and the company swung to a net income of $0.2 million from a net loss of $5.5 million in the prior year quarter.
- The company has committed to selling the majority of its expected Q3 2026 RINs at an average price of $2.66, which is above the July 2026 average D3 index price of $2.64.
- RNG production volumes increased 3% year-over-year to 1.5 million MMBtu in Q2 2026, driven by improvements at the McCarty and Apex facilities.
- Montauk Renewables Inc (MNTK) is experiencing a ramp-up phase at its Turkey, North Carolina facility, with programming modifications to electrical switch gear not expected to be completed until mid-August 2026, limiting current production volumes.
- RNG commodity revenue decreased 63.7% in Q2 2026 due to the expiration of fixed lower-price contracts, and average natural gas commodity pricing was 15.7% lower year-over-year.
- The company's RINs generated and unseparated decreased 95.4% in Q2 2026 due to the transition to the biogas regulatory reform rule in 2025.
- Operating and maintenance expenses at the Montauk Ag Renewables project in Turkey, North Carolina increased by approximately $1.2 million due to non-capitalizable costs.
- The company's cash and cash equivalents net of restricted cash were only $15.8 million as of June 30, 2026, and it must meet quarterly liquidity balances under its new senior credit facility with HASI.
- Production at the Galveston and Atascocita facilities decreased in Q2 2026 due to landfill host wellfield operational changes and maintenance timing.
Good day, everyone, and thank you for participating in the Montauk Renewables second quarter 2026 conference call today.
I'd like to turn the call over to Mr. John Ciroli, Chief Legal Officer and Secretary as he provides some important cautions regarding forward-looking statements and non-GAAP financial measures contained in the earnings materials made on this call. John, please go ahead.
Thank you, and good day, everyone. Welcome to Montauk Renewables earnings conference call to review the second quarter 2026 financial and operating results and developments. I'm John Ciroli, Chief Legal Officer and Secretary of Montauk. Joining me today are Sean McClain, Montauk's President and Chief Executive Officer, to discuss business developments and Kevin Van Asdalan, Chief Financial Officer, to discuss our second quarter 2026 financial and operating results.
At this time, I would like to direct your attention to our forward-looking disclosure
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