Montauk Renewables, Inc.

Good day, everyone, and thank you for participating in today's conference call. I would like to turn the call over to Mr. John Cerulli as he provides some important cautions regarding forward-looking statements and non-GAAP financial measures contained in the earnings materials or made on this call. John, please go ahead.

Thank you, and good day, everyone. Welcome to Montauk Renewable's earnings conference call to review the full-year 2024 financial and operating results and developments. I'm John Cirolli, Chief Legal Officer and Secretary at Montauk. We are changing the cadence of our SEC filings and earnings calls, beginning with our full-year 2024 earnings, to better align our primary NASDAQ and secondary JSC markets. Joining me today are Sean McClain, Montauk's President and Chief Executive Officer, to discuss market and business developments. and Kevin Van Asselen, Chief Financial Officer, to discuss our full year 2024 financial and operating results. At this time, I would like to direct your attention to our forward-looking disclosure statement. During this call, certain comments we make constitute forward-looking statements and, as such, involve a number of assumptions, risks, and uncertainties that could cause the company's actual results or performance to differ materially from those expressed in or implied by such forward-looking statements. These risk factors and uncertainties are further detailed in Montauk Renewable's SEC filings. Our remarks today might also include non-GAAP financial measures. We present EBITDA and adjusted EBITDA metrics 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. These non-GAAP financial measures are not prepared in accordance with generally accepted accounting principles. Additional details regarding these non-GAAP financial measures, including reconciliation to the most directly comparable GAAP financial measures, can be found in our slide presentation in our full-year 2024 earnings press release issued and filed March 13, 2025, which is also available on our website at httpsirmontaukrenewables.com. After our remarks, we will open the call to questions. We ask that you please keep one question to accommodate as many questions as possible. With that, I will turn the call over to Sean.

Thank you, John. Good day, everyone, and thank you for joining our call. On March 7, 2025, the EPA announced its delay of the 2024 RIN compliance deadline for all categories. The EPA has yet to decide on a proposed partial waiver of the 2024 cellulosic biofuel volume requirements or the timing of its decision on this matter since its origination in their December 5th, 2024 EPA announcement. Montauk has sold 100% of its 2024 D3 RINs, and it has zero exposure to the timing and resolution of this issue. We ended 2024 with approximately 6.8 million 2024 vintage RINs unsold. During the fourth quarter of 2024, The D3 RIN market exhibited measurable price volatility, with indices ranging from a high of $3.50 to a low of $2.08, and significantly muted purchasing activity by obligated parties. Though these market conditions contributed to our decision to hold a higher balance of D3 RINs at the end of the year, all 2024 vintage D3 RINs have been subsequently sold as obligated parties reentered the market during the first quarter of 2025. Volatility continues to impact the renewable natural gas industry in a variety of ways. Montauk's strategy remains steady to seek out and invest in projects with quality host businesses that exhibit feedstock growth potential, to diversify our sources of feedstock, our product offerings, and our monetization structures, and to ensure the long-term economic viability of our projects in a wide range of production and pricing scenarios. In 2018, Montauk took its first significant stride towards feedstock diversification through our PECO acquisition. We continue to leverage that diversification through our PECO digestion capacity increase and feedstock amendment with a high-quality, high-volume dairy agriculture host. Our feedstock diversification strategy is poised to further expand in 2026 with the commissioning of our swine waste energy project in Turkey, North Carolina. Our North Carolina development initiative not only demonstrates our commitment to feedstock diversification, but also our commitment to product diversification. The majority of our production revenue from this project will be derived from renewable power generation, which, when combined with state-based renewable electricity credits, will meaningfully increase our existing REG business segment. In addition to a rebalancing of power generation in our portfolio, Our North Carolina development project increases our revenue from commodity-based products, whose market value is not directly influenced by traditional federal or state attribute programs. The biochar commodity produced by our patented reactor process will help insulate the company from volatility experienced in markets underpinned by federal and state programs, such as the Renewable Fuel Standard and California's Low Carbon Fuel Standard. Montauk's commitment to diversification through its product offerings is further illustrated in its previously announced agreement with European Energy North America for sales of biogenic carbon dioxide. This initiative is being prioritized across our portfolio as the company seeks to extract increased value from its existing projects along the rising demand for and the market price of industrial and food-grade CO2. We believe our historical discipline of seeking out and investing in projects with quality host businesses combined with these diversification initiatives will position Montauk to successfully navigate the continually changing landscape of the renewable natural gas industry. With its commissioning in 2024, this will be one of our last updates regarding our PECO digestion capacity increase. In 2025, will receive the third and final increase in feedstock under the amendment to our feedstock agreement and we expect to make that final payment related to this amendment during 2025. we are pleased to report that the production from our pico facility during 2024 delivered an increase of over 70 percent versus 2023. we anticipate commissioning of our second facility at our apex site during the second quarter of 2025. As previously discussed, throughout 2024, we continue to expect a period where we have excess production capacity while the landfill host increases available feedstock. With our previously announced Blue Granite project, during February 2025, we received notice from the interconnection utility of their intention to not accept RNG into their distribution system from any project. As a result, We have indefinitely delayed COD and corresponding capital spend as we both work with the host landfill and prospective stakeholders to evaluate alternative RNG interconnection strategies, both physical and virtual, as well as alternative commodity production opportunities from traditional RNG production. We are pleased to announce our initiative to convert our Tulsa, Oklahoma renewable electric generation facility project through the design and construction of a renewable natural gas facility. With a variable inlet capacity design and a corresponding average nameplate capacity of approximately 1,500 MMBUs a day, this new facility will be designed to beneficially process all of the available and growing inlet gas feedstock from its host landfill. We expect that project capital investment to range between $25 and $35 million and a targeted commissioning date in the first quarter of 2027. We have prioritized the first of our biogenic CO2 projects related to our previously announced agreement with European Energy and expect to commission a facility at our Atascocita project during the second quarter of 2027. we expect to begin monetization of approximately 60,000 metric tons per year of food grade CO2 in advance of the commencement of our offtake agreements at commodity prices. We continue to progress with our design and equipment selection and construction plans at our other Houston facilities to meet our requirements with European Energy North America to supply their biogenic CO2. Additionally, We are progressing with our design and construction plans to incorporate food-grade CO2 processing into our Rumpke RNG project with an expected commissioning of Q3 2027 and expected volumes of approximately 50,000 metric tons per year of food-grade CO2. In December 2024, the state of North Carolina approved a change in laws governing the generation of RECs from swine waste under its Renewable Energy Portfolio Standards. For qualifying projects meeting specific eligibility criteria, swine rec generation is enhanced by awarding an additional two enhanced swine credit recs for each swine rec generated, a ratio of three to one for a period of eight years, followed by a ratio of two to one for a subsequent six-year period. The company is in various stages of negotiations with other obligated parties to expand rec sales beyond our previously announced agreement with Duke Energy. We now have over 40 separate farming locations secured under long-term agreements to provide access to waste from no less than 200,000 hog spaces in support of our expected processing needs for the first phase of our Turkey, North Carolina facility commissioning in early 2026. And with that, I will turn the call over to Kevin.