MNTK - Earnings call transcript Q3 2021 | Montauk Renewables, Inc.

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Operator

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

John Ciroli

Thank you, and good afternoon, everyone. Third Earnings Renewables Call. Montauk to Quarter Conference XXXX Welcome and President, Montauk. I'm Vice Counsel Secretary, John Ciroli, General at

Joining me developments; today our Officer Asdalan, and are Financial third Sean McClain, and Chief results. will Montauk's quarter he of discuss to business Officer, and XXXX Van President, Kevin discuss Chief Executive

financial as for are statements acquisition, Pico with Ag the and make conditions expectations statements certain this and well and future These asset the currently looking our available subject company's as management plans be at and relating to Renewables assumptions the our based During this Project score. will and information our as call, on beyond Pico and known including third and control, be harbor for limitation, may forward-looking our statements our for about Improvement our our and without annual press provides company, Form including and XX-K XX-Q time, detail to statements such CI we operations those risks in quarter of forward management's beliefs on results Form to Montauk uncertainties, the which related risks can other most safe many in forth in release, file that and quarter our of report in provision and SEC, third of that reports further recent business. on our the XXXX earnings be set to the XXXX found with unknown

no may to the results required anticipated. company's differ that statement. law, except note actual forward-looking update by obligation from please undertake materially as Additionally, And any we those

not prepared These measures. non-GAAP accepted are today in accounting measures Our generally include remarks may financial financial also accordance with principles. non-GAAP

I earnings measures slide will including financial non-GAAP at reconciliations [Operator third After GAAP open turn directly the this filed quarter that, afternoon. release in our in to over presentation our to Instructions]. and these Form XXXX issued found comparable the be remarks, questions. XX-Q call website to call our are our will Sean. on regarding details can prepared most With These ir.montaukrenewables.com. and and measures, Additional available we the financial

Sean McClain

technology Thank start focused for we an to this thanks and and Renewables as acquisition you, in important purchase are to agriculture North to May grow. asset and natural we of waste residual other resources we order in our and Ag like renewable with such Carolina and streams bio recycle to from char. to would In update continue recover developing waste produce completed natural the to through John. Good call. high-quality bio on oil developments refine proprietary day, on processes I gas, X everyone, call joining Montauk products XXXX, modern

feed equivalent conversion waste is into the continuous continue multiple XXXX, reactor third enables gas August execute emissions renewable emissions of of for ton over we Montauk of on XX technology consumed unit for closed-loop We of agricultural renewables. that renewable units for acquired in is patent energy capable conventional specific each of quarter capable fuel of reactor to tons we the of near-zero multiple alternatives, and emitted. acquisition. sequestering aspects Ag were XXXX, In producing a of energy every plans granted believe our multiple During greenhouse the nonfossil

its acquired to environmental and reactor as The XXX an motor transaction issues, foot we on acquire XXX,XXX plan a to which challenges the processes $X.X expect to disposal structure, Montauk contamination, abundances, of of certain expect and in commissioned location also Ag the optimize better size. with existing approximately this or watershed is including and constraints, containment we acres and we to operational, be make of square some to lagoon Renewables production improvements acquisition. regardless to reactor XXXX. We currently the [indiscernible] reactor with address industrial waste these enhancements the functionality, XXXX, we capacity improvements to of use October nutrient facility continue during In million expand agriculture, and closed the approximately

We speed for be process. feedstock contained in to and lagoon access sourced AG wait have from reduce swine stock master and agreements The its will waste service help to Montauk anaerobic that lagoons. also flow provide waste water removal the to in improve lagoons, will executed capacity

feedstock our sources, additional add intend we agreements which our As to feedstock have on secure production to facility. commission increase also the an update I want as Pico to in Jerome, to these more and Idaho. we for farms our potential provide capabilities, facility

our to previously improve XXXX, and the undertook part Pico of facility. process the our at at expansion Pico of capacity as facility, digestion overall we the performance quarter third announced the efforts of During significant existing

operations approximately on We line modeling initial We full idled to the make CI the CI temporary and the currently MMBtus XXX model out facility, reapply this expect Air this in by the XXXX. model production cover we that, facility expected time of call with improvements improvements. of the results day a Kevin. and a production The to California replace will for of I ability auditing project our the our approval the settled Resource production. and LCFS clean Pico's After on subsequent have XXXX. XXXX in pathway pathway impact to in score solids have And over CI improvement the to in from quarter temporarily approval significant expect of we could pathway for Board. turn impacted submit generate of the to digester XXXX quarter at revenues various fourth resume has completed, levels currently once efficiency per current the measurably RNG first at digester, The the during Pico order increase other production are the

Kevin Van Asdalan

third compared revenues $XX.X in to for our been XX.X% Please the quarter An of you, Total increase accounted quarter or Sean. of the quarter website in over for increase million our were the $XX.X rigs that gas the Increased million prices third be during contributed of in natural supplemental million additional approximately increase XXXX. were quarter information. third operating have number an XXXX and will third $X.X of the our of XXXX. discussing of sold XXXX XX.X%, earnings in agreements of financial prior half I index period contributed recognized million, revenues Higher of over sharing to $XX.X Thank results. year. slides $X.X to increases in our under the revenues have of counterparty gas the this million increase. posted the press release to and refer to approximately also commodity comparable

a entered the now commitment, As below index the rent is based of time with approximately commitments expected These on commitments at the rent of which DX of forward DX our forward were we XX% generation. XXXX RIN index. XXXX reminder, prices

current As due in commitments. for index to of may not forward selling a result, correspond the environmental prices a realized to in attributes the directly prices monetized year year

$X.XX. Our average current at of to $X.X realized third for realized were price reorganization to primarily general of be total $X.X have million increase XXXX, $X.X million XX% vintage associated an administrative the related compensation an recognized do transactions. of the of quarter expected Total third IPO any with RIN XXXX, during commitments of costs for quarter and fourth be or approximate committed. and million quarter RINs Of the XXXX $X.X will the not XXXX the of We expenses quarter million XXXX. stock-based compared currently to

for million increased general premiums million. XXXX Corporate IPO. XX.XX% compensation, of administrative impact third increased the third stock-based quarter approximately to of compared $X.X expenses approximately the $X.X and due with increased the insurance of the Excluding quarter XXXX to or associated IPO-related

MMBtu of this hampered development X.X sites the from third Of during We of I'll collection $X.X of our produced at quarter our RNG over reduction X.X to relates our by wellfield of XXXX facility. renewable Turning million other XXXX. to quarter issues million MMBtu than collection. produced XX,XXX less the gas MMBtus natural McCarty volumes, by the our increased begin a been quarter segment. produced million segment in third MMBtus volumes has decrease the water primarily XXXX. or third million was commissioned XXXX, McCarley system during locations, at MMBtus X.X operating reviewing impacting Of the The of RNG at RNG metrics. the facility lower produced of X.X% of

ability reduced. water to vary draw increase, feedstock or As the volumes can be

XXXX. but or this $XX.X with an Revenues segment compared into volumes in months from first the $XX.X the during in to third the XXXX. million quarter matters, Gas Natural the XXXX increase the X quarter third quarter issue Renewable relates increase are of XX.X% of this of for the to of landfill fourth host million, to RIN driver continue $XX.X million The We primary sold to mitigate were these working XXXX. expect of

quarter third related $X.X X.X%. fewer to for Apex sales $X.X million, XXXX. XXXX expenses our DX expenses quarter third the RINs $X.X quarter for $X.X the million, quarter McCarty, XXXX, to third of Operating commitments $X.X expenses XXXX. Atascacita operating third Due sites the respectively, XXXX. self third third in in XXXX representing disposal our double decrease the third maintenance million during timing change of pricing quarter $X.X quarter $X.X $X.XX increase index of of the million XXXX, transfers quarter development RINs of of of RINs, third or million we are quarter million, resulting quarter maintenance decrease majority development million operating the the to was of increase XXXX of or quarter million, sold Exclusive compared XXXX XX.X decreased were facilities as compared operating increase XXXX. third higher primarily XXXX these expenses approximately The in media $XX.X a marketed, the quarter expenses the third During the in a versus million or of were on XXXX. average of for third Average in of to our as the the the million XX% the compared of the the quarter and $X.X compares Approximately price of XXXX. $X.XX, of compared to of to in of inter-period $X.X the effects average million of $X.X of quarter $X.XX XX% related XXXX out sites third quarter and for price to as being during XXXX. the commissioned This and to and realized of was third and RIN third an and rent RIN facilities, of DX X% million maintenance and of $X.XX a compared to index of maintenance R&D of

due facility operating due third in Bowerman expenses the third by security quarter the hours of of preventive to maintenance within to of of the $X.X segment facility the or result renewable $X.X in in approximately renewable hours, $X.X XXXX. the intervals of XXXX. compared XXXX million higher of XXXX and XXXX million our approximately third XX,XXX R&D edging XXXX XXXX in $X.X million, X,XXX outage. quarter of the compared the XXX.X%. compared production scheduled from an Operating Our third of increase third facilities We million $X.X quarter operating in XXXX facility the million quarter or to operating X Exclusive million We an of approximately Bowerman a timing profit The renewable at megawatt an in $X.X was million, XX.X% to our third in $X.X maintenance quarter And of which million produced over expenses the compared operating $X.X of the facility compared of quarter XXXX. quarter the in results XXXX. produced XX.X% third a profit or the was of XX.X% is having planned the produced third third million XXXX. quarter decrease work million million, of XX,XXX or of Rumpke electric the to maintenance increased engine operating an failures maintenance were during XX.X% facility $X.X million electric in the or announced XXXX. generation quarter decreased the our profit operating electricity increase of of electric $X.X of loss for had for Renewable annual megawatt compared quarter the October quarter $X.X $X.X electricity quarter previously the Pico $X.X maintenance to quarter third or third reported is to of of megawatt general the third X,XXX an preventative until was decrease at the and XXXX the XXX.X% Pico million XXXX. primarily quarter hours of quarter renewable to XXXX in contributed or third engine in and for of hours X,XXX million, Operating third maintenance was quarter loss third generation third a of to hours of XXXX, in our a quarter decrease XXXX XXXX megawatt $XX.X megawatt The Pico, $X.X related of of result million the period. increase expenses for increase of $X.X to of million third of of and XXXX.

During the segment. we a assessment quarter the $X.X our of in risk-adjusted obligation royalties, within reported gathering recorded XXXX our was of of fuel third analysis with earn-out which reduction million, RNG our facility the and of liability associated Pico to production transportation,

balance the to Turning sheet.

million. of revolving for facility. million term our was under $XX.X revolving September XXXX, million $XX.X company's outstanding XX, available borrowing loan under facility capacity the under As was $XX.X outstanding the was and credit credit The

from we from of a months of first months operating cash first the million. During the activities, of X of generated XXXX $XX.X decrease million X.X% $XX.X X XXXX,

quarter of Adjusted for adjusted or in months increase the net in as X $XX.X quarter tax million back over million was XXXX, income the million X was Including our ended of $XX.X first amendment. from related were first projects operating partially and income offset Ag increased net expense call capital I'll our to Montauk XX, items we by to income our EBITDA million million, which of analyzing feedstock acquisition costs because of on a measures performance the North Carolina for million adjusted the at metrics basis not our are excluding of the present our million, XX, X increase to performance. an XXXX, EBITDA $XX.X recently $X.X EBITDA acquisition primarily believe to in were $X.X months is The compared EBITDA now $X.X indicative $X.X approximately This the third consistent expenditures in of the periods the capital for of third the related do million We XXXX we investors XXXX EBITDA increase September we $X.X assets ended $X.X third commissioned expenditures benefit Pico increase assist X in months facilities Renewables For over an September turn acquired reporting to Sean. that $X.X the million, adjusted quarter XX.X% our of across by core of XXXX. compared believe our of in of income months of XXXX. our optimization million. in tax and XXXX. as of

Sean McClain

Thanks, closing, to Kevin. we fourth XXXX In want provide our quarter outlook.

X.X We expect RNG $XX MMBtu between R&D production $XX volumes million. and to range between X.X with million million million and revenues corresponding

with energy renewable and hours with renewable we'll megawatt for any range million. production expect million And between XX,XXX and We revenues pause $X.X electricity corresponding questions. volumes to that, $X.X now electricity between XX,XXX

Operator

Instructions]. [Operator

Your first question the from of comes [indiscernible]. line

Unidentified Analyst

upside. below-market as are But improvement certainly extent and the are million increase sequential sequential color to you the fourth in right rolling and increase market the the the a like A in hedges your from in elaborate below $X.X into limiting off hedges direction. from quarter to X.X% and second is revenue RNG quarter that provide quarter it second considerably Can RIN step a which your some still quarter first the 'XX? are on looks

Kevin Van Asdalan

year, market we Craig. you noted fourth Thank for when the a reasonable, those to existing we hedges. recognized commitments X rent DX up fourth below sales commitments more Yes, as XXXX, through be anticipate the majority pulling realized now rolling. quarter these much Sure. that working below XXXX, of RIN throughout working will very of index. for index. the of we're but order bringing committed price still realized those that vast forward still the and having that average $X.XX, through the XXXX we the in price significantly with compared question. We're entered RIN fourth commitments had this that -- few that we our Those however, But price in to consistent in the existing down quarter are as

Unidentified Analyst

be that on done you And year-over-year, more 'XX? on color any -- but all know sequential first color the any improvement. will quarter And the I more by talked

Kevin Van Asdalan

January rents any have starting currently vintage not XXXX do we committed Yes, in XXXX.

production So We last of sold. this commitments we time for year currently XXXX when not unlike had forward expected do any rents. vintage our XX% have at

And the closing with vintage the fourth So associated then quarter. clear inter-period out year transfers throughout end we've recognized of finally, And -- the by these that experienced the clearing clearing through fourth in it's of the the this the year. regards of of of sales will underperformance end RIN the rent the rest quarter. we've XXXX itself by off that the to we're Yes, throughout improvement. the

Operator

are time. have now call There over no the this remarks. for at will We audio the closing [Operator to further Instructions]. question [indiscernible]. of turn Sean questions McClain I still

Unidentified Analyst

Sorry. but thought to okay, right. I'll I if finish off, try just it's if all question, a limiting we're that's to

So are CI half a score? intended take as CI volume. ultimate could first to CARB that as the improving could the score if second get And the increase of Pico those final in dairy Or improvements, we any I RNG digester idea late they're it year? assume half? seen ultimately next the

Sean McClain

The answer CI can. more the is making first Pico The relative asked, of make project. will of changes question it in we're It a that negative some you for improve to couple it can the that score, Craig, different that factors.

on of more positive through the boilers convergence in the digestion the site. impact that as can make the a to That we beat engines the are electric the have factors score to the negative. opposed of legacy have One manner which capacity we CI

a representation the the of of of herd as collection to the the that project negative allocated project separate and pre for are of volumes, support farms which yields how expansion what that the is expansion. The we the [indiscernible] that by and second X CI piece had are more the opposed which that positive roof, benefit a sort have higher of can under score cattle

the As is second far piece as concerned.

It but for XXXX. We not definitive, are that during that we sort mid of receive of pathways. applying score CI late possible, in to is process those can

Unidentified Analyst

drop the engine point? quarter you. second X-megawatt drove the in what this X,XXX from sequential hour, all that at And of Got projects megawatt hours done repairs And REG? is security

Kevin Van Asdalan

of doing maintenance Bowerman a maintenance for production It's engine engine explanation suggested X Bowerman on engines renewable schedules XXXX in generally The for taking as the of electricity time, were the to has X XXXX. security, be as Bowerman during facility offline existing Craig, presented is manufacturers XXXX producing us engines, us. for in. running yes, routine PM jump and our That's preventative operational and to facility compared and is all at facility the I'll fourth will an Sean. up And quarter in the have throughout regards XXXX. decrease the that expectation

Unidentified Analyst

Great. Or I getting to quarters coming are things a it but guidance the very guidance are And future? there what in wide. -- in the narrow? better, guidance future for take point the would mean Is ranges

Sean McClain

It's good a question, Craig.

historically We And only company fourth and detailed guidance, the investment is give given forward-looking first to time help the this for to quarter. albeit guidance Obviously, we're continue to have has narrower any and more more to looking modeling drive the helpful, in past. not that purposes. the guidance issued process refine

Unidentified Analyst

on fixed credit sorry understand If as regimes you've offtakers, emission offtake I fixed focused last of question And gas to landfill your offtaker that on fixed floor price floor continue X long. Okay. a hedges? agreement across go operator RNG offtake you the a revenue But I a to limiting announced to offtake. diversify and pure across your of price as Do as you stream, the offtake duration for well to project your on XX-year laddering contracts duration with limit Or types, to historically start including could the gas your is utility. know flexibility price years. diversification maybe me, after well? time or close, RNG X so plan

Sean McClain

potentially for any the our near-term that to we sight of ensure is purposes costs of any Our sufficient the predominantly and we're has the reason sufficient working Montauk expansion of growth but transactional locking development acquisitions did fuel made that prices to is of what capital or the here additional technology have Ag. X- attribute projects deploying the domestic longer to we fixed opportunities duration, into initial we portfolios our importantly, under all of your the to versus And for attributes, more like the due capital for become need opportunities more X-year the spot that potential to do The or programs monetize. competitive projects currently that we line in growth for North the and EU component with come opportunities with are only our not at that or the for diligence, RNG, like for the a which products strategy intentions at that or Carolina is expansions stages has acquisition that than those attributes the of fixed enable we with starting export of to market existing market projects today. any opportunities more on look of

but agreements, spaces to a time, question, And the offtakes, us, portion, prices, what RINs will move more limited in for the allow that We're of or domestic so and XX-year and to first or not continue abreast those what see have your same the our LCFS a at to at to necessarily reflect but of allow long-term continue constantly opportunities prices but line portfolio at the have committed current of majority at fixed abroad. XX- needs, ensure capital with similar monetization that keeping to that credit attribute looking of optimistic start today. price walking in for our utilities for be conducive more we're look point those what we you into as to we XXXX, market working balance attributes are to to to prices

Operator

Irwin the comes question Capital from Roth Park. next line Craig of of Your

Craig Irwin

close. quarter really here. the That's Congratulations strong on

some that address? ask there? owned a given production look years? potential this? come bumps situation items we Is large your facility or are year volatile to major production want this facilities along volatility capacity. many this just I still X, How every chunk a is RNG should very like The something there for the unusual you up is at and the It's out facility So have the how Is highly this that had you And to of that Road. of about you've Carty way. [ph]

Sean McClain

great question, Craig. a That's

difficult One the isolated, maintained. embellishments failures well the operating with challenges of met facility a responded That those combination is the are releases the an very immediately of strong at and any into to addition subjected were adjustments were as a facility in or of has is spare met spares and of of componentry not were It as a highlighting or area in facility. were older The the to of the failure coverage or facility your facility does of in that that specific maintenance reoccur. specific, that in items even incident our been earnings that has protocols. compressors combination critical a replacement regimen it of Houston facilities question with years critical so themselves. larger of expected last reliability those with resulted of insurance long predictability the the the much maintenance large the deployments protocols of to bring It is number a in and itself X

the capability always patterns will adjustment from flows of waste landfill items everything the water, pairing the those or that Weather production is that volatility of filling cause be form of can as production itself, one from a ebbs enhance the to cause landfills high facilities. sort landfill our system of subjected expectation degrees itself. the won't removal materials, which with phase or and production can in normal above the ability isolated and our optimized to they events next, type in could some or collection and elevate in Large of RNG bring capability reoccur. to of follow-on levels in move or are facilities intake. maintain the weather overall type The changes they construction the the componentry events of of So our of

of All at the complement as the an [indiscernible] of done of these occurrences with a either those facility happens all facility and production items over have they're doing of landfill as to just definitively, do also terms particular would has this the all anomaly would so of balanced, not that relatively what cycle in disproportionate and issues in are events prioritize that and themselves. we mechanical to terms reporting But look number systemic life sequential so landfills been are this have had a or that periods. of so a level failures associated in projects

Craig Irwin

Understood.

available company transactions, there, were question for but lot guys that my been companies about I potential portfolio of look So you build, But while guess, and reduction and chase excited have a they their pure-play [indiscernible] and a the in the sale that. company is, limited second gone experience. RNG projects out between have are with People that to that's first there the profit of was plans here successful get list RNG market. had the there's into been carbon you to real-world business to a couple public, others to right? pretty a of to work

a got that really hearing they before weren't. capital And pushing your them of were there got different talk skeptical, about of out they Can even Some little substantial I upfront maybe customers. part but were and nothing opportunities was site on psychology the prices you built. that bit hosts the market out the on others there.

this new appetite about you Montauk are for Are development? projects in environmental for work over do How what's rational see available names out years? of playing with the biggest people for that the do few the waste, their expectations You project next many for investment.

Sean McClain

are standpoint. projects they're least these to grow at put of stage developed that an of and projects look and specifically landfill out landfills compliance into pipelines then them medium but opportunity have most to material develop waste market prevalence together terms that those the in sort market know now, agreements a virtualization our be those opportunities tenure reductions gas normally exciting. justify the you're equipment because initial into secure the seeing that those at deviate pipeline from are take such economics existing way to projects the with are are and that at in, abundance intake, of to to yet the convert space, ground and can be to able how and we're there fuel to state an the making would that of off because dynamic to seeing the address not The in my at exciting the and easily attributes to folks monetization the from projects North build projects cost waste opportunities virtualization and exciting to the multiples you standpoint in the to least The that able get landfill see of of the of to standpoint very reached across operated of decarbonization, NSPS abundance from of when projects opportunities They size for right organization opportunity BTU core closely we transaction come the very know oftentimes is long-term not as XX then realistic economics swine years. of a and or is country, into enhance to very the do projects the going that across with on operation to incorporating be high opportunities commanding projects we deployment already agriculture clustered We a that particular work come partners make they're the paving the business projects to have portfolio viable to Carolina of from a in projects. into or

the marketplace right than years the motion, been is very now in are previous market. in tenor how terms is exciting. projects It the so of more it's still aggressive coming And of to many

entry will prices they have those We looked today to test project the to do come grand we X expectations buyers a opportunities paper they lesser there know into projects to its in those has effectively projects. we the or at point the only transaction years. on the in in been articulate see that we've than either like We to to contributors might not to going the knows may be more the space model not why or at to thriving because Montauk, pass a where prices question, stress at decade look such we or models to your behind know a that at can to in with white a strong start business Does on as it. normalize, X that of if portfolio past strong fourth changes probably like barrier opportunities lot buyer normalize, that to those that of they're regulatory as our markets looked they're to now. at We economic potential that how able there's due attribute still those a prices that a to present this and past Craig? continue opportunities well this their being projects or months as as start economics And us. answer ensure

Craig Irwin

definitely doe. Absolutely. No, It does. it definitely

We a growth What too what the over that pedal you parties risks next maybe both as There's as sort the guidepost out of are achievable that's you for growth making criticisms Montauk. whispering. little pushing typically that not some can that's of third what just One there approximate target? that you is know number see right call of and out for is are lay clear on growth categorically at you no Montauk responsible true. people But the versus would their out a years? hard rate also

Sean McClain

of of relationships more a on projects What of are off folks business from allow at add on event the your you manage currently back to see allows the and it of businesses their take you push environmental prioritizing we for sight for to a a room accretive be the not to you carbon of excited allows that not opportunities so solve of projects for our the for of are doing that dial being room to the unit their environment. its These in and for normalization for managing, state And value to in of strength long-term at over justify projects advantage prices in of able businesses. part stewardship do ability we the then of continue of with be type federal advantage feedstock, opportunities to cost good projects are to sort that are The to thirdly, little hosts, normalization parasitic and is to attributes, we focus EBITDA minimis, avoid for a fuel the conversion, way those energy that operations. operations have are to needs both core the per those of that add looking that value expansion, portfolio to to internationally. steady-state and project room renewable existing at when projects the fuel produce as envelope definitively It's value the existing able line a be those that give have take that portfolio, with of add balance but do flexibility pricing projects. with sight so to pathways the but also space multiples also sheet. buying level to to that line a is strategy in sequester to allow multiples projects type their that for even opportunity are host to of growth that that one, us of strong to can sort where, fossil pricing of usage, relationships opportunities And to

the So near-term we for the future in expect those be definitively opportunities to company.

prioritizing times in to do ability quickly way to can other environmental from strategically a that very in do are solve farmers. that go landfill into modular portfolios anaerobic midstream efficient of broaden to allows agreements industry And as landfills and and gamut now are that, then thirdly, opportunities of technology we're existing material farming address and real to pressed traditional with between projects, needs that North of operations folks, through we looking move the in late-stage with these projects, maintain and same And than to swine so are counterparts a that that our clusters by and span the to just projects of exciting meaningful dozens in also the and the opportunity that anaerobic burden that an that that that cannot farms also add do increase, farming of on we agriculture. on transaction to have multiple way under for we Beyond the the to a increase the Carolina traditional done likes cases, to we'll a had of of standpoint to that we criteria in that patented with waste projects be scale of feedstock evaluating for but mentioned, folks communities some only in exactly at the that is or their as progress to because relationships the is those we in the allows the decrease so value, we digestion you those so opportunity you with to strategy. have component we're core service with other the that mentioned had deploy ability projects portfolio. making more have need do not that the space multiple complementary that pressures it and and the proximity forms agriculture digestion have we development opportunities these microbes, are as

international in take it maximize growth have be respective have items time Montauk then part fuel the to be continue a continue programs, federal domestically the and attribute state will large from which you attributes the portfolio internationally at approach way allow all state prices its and value for federal to advantage at to those be it receive to that that utilized growth, and pathways of the products, of of in those of look at you gets for to and comes the So growing to of sales, self-marketing that with look to to can to the into look these its ultimately the ways will their that will electricity to service and oil Carolina look to community. from beyond the production good bid ability that ways And North the start products, this at char a of from technology particular, find and traditional the and to the the have remediation that get we'll in efforts the to electric to in ability continue remediation reach opportunities. and then just diversification deployment for then generation soil to revenue confines of in farming lastly, soil product RNG

time Manta So it for growth exciting a from very is a definitively standpoint.

Craig Irwin

last then And if I for Perfect. question may. me,

more large month. a, those chunk see specific your hedged end outlook? roll has to talk have I that a about where half Can of production believe, your production potentially I its new entering this you operated for us hedges? very unhedged the RNG You Montauk believe, you hedges, considerations at ever Or reasonable at what on historically as is of than of off a do

Sean McClain

that off election, that exclusively the of there byproduct operated level that of hedged. political near we counterbalance. of a sufficient its products of come scenarios in was amount the previously the again, what election, development to where that phenomenon are have than a an from that Coming uncertainty standpoint flow The our out to approach the of less rolling and XXXX And where of had you in phenomenal right, RINs could appropriate hedged that responsible been the this mentioned out term. at XXXX, vintage from ensure a The of -- it's be have cash none taking would Kevin variety has operations being XXXX committed. of production again, have year XX% company almost is -- sort

commitments. market chasing a a or continues be a the index, You price market little those if from always to always have X standpoint, of in of you'll a of settlements month trailing rise the the bit terms

closely much opportunities the attributes. offtake portfolio. at will price space offtake has in fixed your European more do We'll paired the with to this a do hedge fixed at apart, hedge to to it themselves, hedge for hedge is We're to present environmental into always we of in always So particular in XXX% but medium- attributes, track be that looking the have to take of you price Union. it than of opportunities And But they component your opportunities. not the do look of Those break the play price terms continue We won't forward sales will present component terms fixed that of look markets. discounts in substantial off to but the long-term utilities. be with this a themselves at what of marketability year.

calculated the to that determine very So or business trajectory sense it equation growth achieve. given not most to the that a whether the for trying is makes it's

Craig Irwin

followed just And maybe you approximately us the remind people entered? new haven't or for are clarification Can to hedges those when were closely. a question that us story of

Kevin Van Asdalan

October, the fourth time election or was Yes. throughout November frame Craig. of definitively January December September, Yes, quarter XXXX. It XXXX, in the of was before of XXXX, settled

at. that I throughout if go DX what significantly some below was the XXXX, track are you'll fourth that back So think quarter just RINs index price DX the price again, see the of index are, currently you and trading points

Operator

are will time. at There McClain questions Instructions]. now this remarks. closing Sean the [Operator over no for I turn further call to

Sean McClain

conference for forward to call you today. with on May. our us call. time you, And to the speaking join look We year-end XXXX Thank on taking again all our you thank

Montauk Renewables (MNTK) 16 Nov 212021 Q3 Earnings call transcript