Montauk Renewables Inc (MNTK) 2022 Q4 法說會逐字稿

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 and non-GAAP financial measures contained in the earnings materials are made on this call. John, please go ahead.

大家下午好，感謝您參加今天的電話會議。我想把電話轉給 John Ciroli 先生，因為他在這次電話會議上就收益材料中包含的前瞻性陳述和非 GAAP 財務措施提供了一些重要的警告。約翰，請繼續。

Thank you, and good afternoon, everyone. Welcome to Montauk Renewables earnings conference call to review fiscal 2022 financial and operating results and developments. I'm John Ciroli, Chief Legal Officer and Secretary at 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 2022 financial and operating results.

謝謝，大家下午好。歡迎參加 Montauk Renewables 財報電話會議，回顧 2022 財年的財務和經營業績及發展情況。我是 John Ciroli，Montauk 的首席法律官兼秘書。蒙托克總裁兼首席執行官肖恩麥克萊恩今天與我一起討論業務發展；和首席財務官 Kevin Van Asdalan 討論我們 2022 年的財務和經營業績。

At this time, I would like to direct your attention to our forward-looking disclosure statement. During this call, certain comments we may 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 detailed in Montauk Renewables SEC filings.

此時，我想請您注意我們的前瞻性披露聲明。在本次電話會議中，我們的某些評論可能構成前瞻性陳述，因此涉及許多假設、風險和不確定性，可能導致公司的實際結果或業績與此類前瞻性陳述中表達或暗示的結果或表現存在重大差異.這些風險因素和不確定性在 Montauk Renewables SEC 文件中有詳細說明。

Our remarks today may 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 reconciliations to the most directly comparable GAAP financial measures can be found in our slide presentation and in our fiscal 2022 earnings press release and Form 10-K issued and filed this afternoon. Both are available on our website at ir.montaukrenewables.com. After our prepared remarks, we will open the call to questions. We ask that you please keep to one question to accommodate as many questions as possible.

我們今天的評論可能還包括非 GAAP 財務指標。我們提供 EBITDA 和調整後的 EBITDA 指標，因為我們認為這些指標通過排除我們認為不代表我們核心經營業績的項目，有助於投資者在一致的基礎上分析我們在報告期間的業績。這些非 GAAP 財務措施不是根據公認的會計原則編制的。有關這些非 GAAP 財務指標的更多詳細信息，包括與最直接可比的 GAAP 財務指標的對賬，請參閱我們的幻燈片演示文稿、我們的 2022 財年收益新聞稿以及今天下午發布和提交的 10-K 表格。兩者都可以在我們的網站 ir.montaukrenewables.com 上找到。在我們準備好的發言之後，我們將開始提問。我們要求您只回答一個問題，以容納盡可能多的問題。

And with that, I will turn the call over to Sean.

有了這個，我會把電話轉給肖恩。

Thank you, John. Good day, everyone, and thank you for joining our call. I wanted to start this call with a summary of the major events for Montauk during 2022. First, as to our 2021 Montauk Ad Renewables acquisition, we continue to work with our engineer record through the optimization of improvements to the patented reactor technology. During the fourth quarter of 2022, we began to process of relocating our existing reactor at the Magnolia North Carolina facility to the Turkey, North Carolina facility in an effort to centralize future feedstock processes.

謝謝你，約翰。大家好，感謝您加入我們的電話會議。我想通過總結 2022 年蒙托克的重大事件來開始這次電話會議。首先，關於我們 2021 年蒙托克 Ad Renewables 的收購，我們將繼續通過優化改進專利反應器技術來與我們的工程師記錄合作。在 2022 年第四季度，我們開始著手將位於北卡羅來納州 Magnolia 工廠的現有反應堆遷至北卡羅來納州土耳其工廠，以集中未來的原料流程。

We continue to progress on our improvement and continue to expect reaching commercial operations in 2024. In parallel, we continue to engage with regulatory agencies in North Carolina related to the resulting power generation derived from swine waste to confirm its eligibility for the renewable energy credits under North Carolina's renewable energy portfolio standards in anticipation of commercial production. Our Turkey, North Carolina facility has been accepted into the Piedmont natural gas, renewable natural gas pilot program, which is a step towards obtaining the new renewable energy facility designation under the North Carolina Utilities Commission.

我們在改進方面繼續取得進展，並繼續期望在 2024 年實現商業運營。與此同時，我們繼續與北卡羅來納州的監管機構就豬糞產生的發電量進行接觸，以確認其是否有資格獲得可再生能源信用額度北卡羅來納州的可再生能源組合標準，以期實現商業生產。我們位於北卡羅來納州的土耳其設施已被納入皮埃蒙特天然氣、可再生天然氣試點計劃，這是朝著獲得北卡羅來納州公用事業委員會指定的新可再生能源設施邁出的一步。

Due to our consolidation of operations at the Turkey facility and based on our current expectations related to commercial operations, we have paused our registration process to obtain NREF status for the Turkey, North Carolina location. Next, I would like to provide an update on our Pico Dairy cluster project in Idaho. As part of our overall capacity expansion at the Pico facility, we undertook significant efforts to improve the performance of its existing digestion process. The performance we have made to date into both our existing digestion process efficiencies and to our water management improvements have enabled us to process the increased feedstock volumes we are receiving.

由於我們整合了土耳其工廠的運營，並根據我們目前對商業運營的預期，我們暫停了註冊流程以獲得北卡羅來納州土耳其工廠的 NREF 身份。接下來，我想介紹我們在愛達荷州的 Pico Dairy 集群項目的最新情況。作為 Pico 設施整體產能擴張的一部分，我們做出了重大努力來提高其現有消化過程的性能。迄今為止，我們在現有消化過程效率和水管理改進方面取得的成績使我們能夠處理我們收到的增加的原料量。

The dairy has delivery of the first 2 tranches of increased feedstock volumes, triggering the first 2 associated development payments to the dairy. We have completed the design of the digestion capacity increase in the third quarter of 2022 and began incurring capital expenditures related to the completed design of our digestion expansion construction of the project. We expect the digestion expansion project to begin to reach commercial operations during the third quarter of 2023. We expect the dairy to begin delivering the third and final tranche of increased feedstock in 2024.

乳製品公司交付了前兩批增加的原料量，觸發了對乳製品公司的前兩筆相關開發付款。我們已於 2022 年第三季度完成消化產能增加的設計，並開始產生與該項目消化擴建工程的完成設計相關的資本支出。我們預計消化擴建項目將在 2023 年第三季度開始商業運營。我們預計該乳製品將在 2024 年開始交付第三批也是最後一批增加的原料。

In the first quarter of 2023, the California Air Resource Board, CARB, finalized the engineering review of the Pico facility's provisional CI application and released it for public comments. The public comment period ended on March 24, 2023. We do not believe we received any significant public comments and expect to receive the certified provision of CI score before the end of the first quarter of 2023. During 2022, we announced our plans to construct a second RNG processing facility at the Apex landfill. This project is being driven by projections in biogas feedstock availability from the host landfill. We anticipate an approximate 40% increase in RNG processing capacity with the addition of the second facility.

2023 年第一季度，加州空氣資源委員會 (CARB) 完成了 Pico 設施臨時 CI 申請的工程審查，並發布以徵求公眾意見。公眾意見徵詢期於 2023 年 3 月 24 日結束。我們認為我們沒有收到任何重要的公眾意見，並希望在 2023 年第一季度末之前收到 CI 分數的認證提供。在 2022 年期間，我們宣布了我們的建設計劃Apex 垃圾填埋場的第二個 RNG 處理設施。該項目的推動因素是對來自垃圾填埋場的沼氣原料可用性的預測。我們預計，隨著第二個設施的加入，RNG 處理能力將增加約 40%。

This expansion is expected to increase daily production by approximately 2,100 MMBtus per day and expand the infrastructure for the conversion of LFG to RNG. We have begun to incur capital expenditures for this project and expect the project to be complete and become commercially operational in 2024. In June 2022, we completed our analysis for process facility improvements and our Board of Directors improved a capital improvement project to make upgrades to our regular facility that will increase production. This facility is currently being impacted by requirements to meet federal pipeline tariffs, which limit the oxygen content of product gas. The pipeline tariffs have resulted in limitations in our ability to process all existing feedstock. Construction on this capital project commenced during the third quarter of 2022, and we expect it will become commercially operational during the second half of 2023.

預計此次擴建將使日產量增加約 2,100 MMBtus，並擴大將 LFG 轉化為 RNG 的基礎設施。我們已經開始為該項目進行資本支出，預計該項目將於 2024 年完成並投入商業運營。2022 年 6 月，我們完成了對工藝設施改進的分析，我們的董事會改進了資本改進項目，以升級到我們的常規設施將增加產量。該設施目前受到滿足聯邦管道關稅的要求的影響，該關稅限制了產品氣體的氧含量。管道關稅導致我們處理所有現有原料的能力受到限制。該資本項目的建設於 2022 年第三季度開始，我們預計它將在 2023 年下半年投入商業運營。

Based on the current production of the Raeger facility, we anticipate an approximate increase of 50% of average daily production. Finally, and as Kevin will explain in more detail, we have decided not to commit to transfer RINs on 2023 production until the second quarter of 2023. The EPA's release of the RVO in December 2022 included RVO obligations for 3 years, 2023 through 2025, and included volume of RINs to be generated from renewable electricity and used in transportation fuel. We believe this rulemaking has introduced volatility in the price of D3 RINs during the first quarter of 2023. We plan to transfer during the first quarter of 2023, only RINs generated from 2022 production.

根據 Raeger 工廠目前的產量，我們預計平均日產量將增加約 50%。最後，正如 Kevin 將更詳細地解釋的那樣，我們決定在 2023 年第二季度之前不承諾在 2023 年的生產中轉移 RIN。EPA 在 2022 年 12 月發布的 RVO 包括 2023 年到 2025 年 3 年的 RVO 義務，並包括由可再生電力產生並用於運輸燃料的 RIN 數量。我們認為，這一規則制定在 2023 年第一季度引入了 D3 RIN 的價格波動。我們計劃在 2023 年第一季度轉移，僅轉移 2022 年生產產生的 RIN。

And with that, I will turn the call over to Kevin.

有了這個，我會把電話轉給凱文。

Thank you, Sean. I will be discussing our 2022 financial and operating results. Please refer to our earnings press release and the supplemental slides that have been posted to our website for additional information.

謝謝你，肖恩。我將討論我們 2022 年的財務和經營業績。請參閱我們的收益新聞稿和已發佈到我們網站的補充幻燈片以獲取更多信息。

Total revenues in 2022 were $205.6 million, an increase of $57.4 million or 38.8% compared to $148.1 million in 2021. The primary driver for this increase relates to an increase of 70.2% in realized RIN pricing during 2022 of $3.25 compared to $1.91 in 2021. Additionally, contributing to the increase was an increase in natural gas index pricing of 72.9% in 2022 of $6.64 compared to $3.84 in 2021. These increases were offset by lower counterparty sharing revenues of $13.2 million in 2022 compared to 2021 due to these arrangements ending.

2022 年的總收入為 2.056 億美元，與 2021 年的 1.481 億美元相比增加了 5740 萬美元或 38.8%。這一增長的主要驅動因素是與 2021 年的 1.91 美元相比，2022 年實現的 RIN 定價增長了 70.2%，為 3.25 美元。此外，天然氣指數定價從 2021 年的 3.84 美元上漲到 2022 年的 72.9%，漲幅為 6.64 美元，這也是推動這一增長的原因。由於這些安排的終止，2022 年的交易對手分享收入比 2021 年低 1320 萬美元，抵消了這些上漲。

We report the impact of our gas commodity hedge program within our corporate segment. Our gas commodity hedge program was priced at rates below actual index prices, and we recorded a loss of $7.8 million in 2022. Our gas commodity hedge expired in December 2022, and we have not currently entered into any gas commodity hedge programs for 2023.

我們報告我們的天然氣商品對沖計劃在我們的企業部門內的影響。我們的天然氣商品對沖計劃的價格低於實際指數價格，我們在 2022 年錄得 780 萬美元的虧損。我們的天然氣商品對沖於 2022 年 12 月到期，我們目前尚未參與任何 2023 年的天然氣商品對沖計劃。

Total general and administrative expenses were $34.1 million for 2022, a decrease of $8.4 million or 19.8% compared to $42.5 million for 2021. The employee-related costs, including stock-based compensation decreased approximately $10.6 million or 35.4% in 2022 compared to 2021. The decrease is primarily related to our accounting for cancellation of M&K options and the 2021 grants of restricted stock, nonqualified stock options and restricted stock units to the company's employees.

2022 年的一般和行政費用總額為 3410 萬美元，與 2021 年的 4250 萬美元相比減少了 840 萬美元或 19.8%。與 2021 年相比，2022 年與員工相關的成本（包括基於股票的薪酬）減少了約 1060 萬美元或 35.4%。減少主要與我們對取消 M&K 期權以及向公司員工授予 2021 年限制性股票、非合格股票期權和限制性股票單位的會計處理有關。

Offsetting this decrease is an increase in general and administrative expenses of approximately $3.6 million or 337.5% in 2022 as compared to 2021 associated with the Montauk Ag Renewables acquisition. Our corporate insurance premiums increased approximately $0.4 million, 6.8% during 2022 compared to 2021, primarily related to premium increases. Our Board of Directors approved payments of cash fees to nonemployee directors, resulting in increased fees of approximately $0.7 million in 2022 as compared to 2021.

與收購 Montauk Ag Renewables 相關的 2021 年相比，2022 年的一般和行政費用增加了約 360 萬美元或 337.5%，抵消了這一減少。與 2021 年相比，2022 年我們的公司保險保費增加了約 40 萬美元，增長了 6.8%，這主要與保費增加有關。我們的董事會批准向非僱員董事支付現金費用，導致 2022 年的費用比 2021 年增加約 70 萬美元。

Finally, excluding our Montauk Ag Renewables acquisition, our professional fees increased approximately $0.8 million or 19.2% in 2022 as compared to 2021. Turning to our segment operating metrics. I'll begin by reviewing our renewable natural gas segment. We produced approximately $5.5 million MMBtu of RNG during 2022, a decrease of $0.2 million compared to the number of MMBTUs produced in 2021.

最後，不包括我們對 Montauk Ag Renewables 的收購，與 2021 年相比，我們的專業費用在 2022 年增加了約 80 萬美元或 19.2%。轉向我們的部門運營指標。我將首先回顧我們的可再生天然氣部門。我們在 2022 年生產了約 550 萬美元的 RNG，與 2021 年生產的 MMBTU 數量相比減少了 20 萬美元。

Of the 2022 volumes, our Atascocita facility produced $0.2 million fewer MMBtu in 2022 compared to 2021 due to a temporary process equipment failure. Our Rumpke facility produced 0.1 million fewer MMBtu in 2022 compared to 2021 as a result of lower well field inlet fuel flow associated with the landfill host filling operations. Our Apex facility produced 0.1 million fewer MMBTU in 2022 compared to 2021 due to landfill billing pattern changes resulting in lower production.

在 2022 年的產量中，由於臨時工藝設備故障，我們的 Atascocita 工廠在 2022 年的 MMBtu 產量比 2021 年減少了 20 萬美元。與 2021 年相比，我們的 Rumpke 設施在 2022 年生產的 MMBtu 減少了 10 萬，這是因為與垃圾填埋場主機填充作業相關的井場入口燃料流量較低。與 2021 年相比，我們的 Apex 設施在 2022 年生產的 MMBTU 減少了 10 萬，這是由於垃圾填埋場計費模式的變化導致產量下降。

Offsetting these decreases were production volume increases at both our Pico and Galveston facilities. Our Pico facility produced 0.1 million MMBtu more in 2022 compared to 2021 as a result of improvements related to the existing digestment process and our water management practices. Our Galveston facility produced 0.1 million MMBtu more in 2022 compared to 2021 and as a result of higher inlet gas due to well field changes and plant efficiency optimization of process equipment.

我們的 Pico 和 Galveston 工廠的產量增加抵消了這些減少。由於與現有消化過程和我們的水管理實踐相關的改進，我們的 Pico 設施在 2022 年比 2021 年多生產了 10 萬百萬英熱單位。與 2021 年相比，我們的加爾維斯頓工廠在 2022 年的產量增加了 10 萬百萬英熱單位，這是由於井場變化和工藝設備的工廠效率優化導致進氣量增加。

Revenues from the Renewable Natural Gas segment in 2022 were $196.2 million, an increase of $64.4 million or 48.9% compared to $131.8 million in 2021. Average commodity pricing for natural gas for 2022 was 72.9% higher than the prior year. During 2022, we self-marketed approximately 43.8 million RINs, representing a 1.2 million increase or 2.9% compared to 42.6 million in 2021. The increase was primarily related to an offtake agreement change in 2021, providing for more RNG volumes available to self-market. Average pricing realized on RIN sales during 2022 was $3.25 as compared to $1.91 in 2021, an increase of 70.2%. This compares to the average D3 RIN index price for 2022 of $2.98 being approximately 1.7% lower than the average D3 RIN index price in 2021 of $3.03.

2022 年可再生天然氣部門的收入為 1.962 億美元，比 2021 年的 1.318 億美元增加 6440 萬美元或 48.9%。2022 年天然氣的平均商品價格比上年上漲 72.9%。 2022 年，我們自行銷售了約 4380 萬個 RIN，與 2021 年的 4260 萬個相比增加了 120 萬個或 2.9%。這一增長主要與 2021 年承購協議變更有關，為自我市場提供了更多的 RNG 數量. 2022 年 RIN 銷售實現的平均定價為 3.25 美元，而 2021 年為 1.91 美元，增長 70.2%。相比之下，2022 年 D3 RIN 指數平均價格為 2.98 美元，比 2021 年 D3 RIN 指數平均價格 3.03 美元低約 1.7%。

All of our RIN sales in 2022 and 2021 were priced generally on the D3 index with non-based own cellulosic waiver credit. At December 31, 2022, we had approximately 0.4 million MMBtus available for RIN generation and had approximately 0.7 million RINs generated and unsold. We had approximately 0.4 million MMBTUs available for RIN generation and approximately 0.1 million RINs generated and unsold at December 31, 2021. Our profitability is highly dependent on the market price of environmental attributes, including the market price for RINs. As we self-market a significant portion of our RINs, the decision not to commit to transfer available RINs during a period will impact our revenue and operating profit.

我們在 2022 年和 2021 年的所有 RIN 銷售通常根據 D3 指數定價，並具有非基於自身的纖維素豁免信用。截至 2022 年 12 月 31 日，我們有大約 40 萬 MMBtus 可用於生成 RIN，並且生成和未售出的 RIN 約為 70 萬。截至 2021 年 12 月 31 日，我們有約 40 萬個 MMBTU 可用於 RIN 生成，約有 10 萬個 RIN 已生成但未售出。我們的盈利能力在很大程度上取決於環境屬性的市場價格，包括 RIN 的市場價格。由於我們對很大一部分 RIN 進行自我營銷，因此在一段時間內不承諾轉讓可用 RIN 的決定將影響我們的收入和營業利潤。

In regard to recent developments, the industry has experienced volatile D3 RIN index prices since the EPA's release of the 2023 RVO in December of 2022. The average market price of D3 RIN since the 2023 RVO release was approximately $2.18, the market price declined as low as $1.88 in February 2023 from a D3 RIN index price of $2.43 on the day of the 2023 RVO release. We view this volatility in prices temporary, and accordingly, we determined not to transfer a significant amount of D3 RINs generated from 2023 production and available for transfer during the first quarter of 2023.

就近期發展而言，自2022年12月EPA發布2023 RVO以來，該行業經歷了D3 RIN指數價格的波動。自2023 RVO發布以來D3 RIN的平均市場價格約為2.18美元，市場價格下跌至低位2023 年 2 月的 D3 RIN 指數價格為 2.43 美元，2023 年 RVO 發布當天為 1.88 美元。我們認為這種價格波動是暫時的，因此，我們決定不轉移大量 2023 年生產中產生的、可在 2023 年第一季度轉移的 D3 RIN。

As a result, we had approximately 3.9 million RINs in inventory and available for sale from 2022 gas production and have approximately 7.3 million RINs in inventory and available for sale from 2023 gas production. We plan to transfer the 3.9 million RINs in inventory from 2022 gas production during the first quarter of 2023. We produced approximately 190,000 megawatt hours in renewable electricity during 2022, an increase of approximately 7,000 megawatt hours or 3.8% compared to 183,000 megawatt hours in 2021. In 2022, our security facility produced 10,000 megawatt hours in 2022 compared to 0 reduction in 2021 as a result of the prior period engine restoration project.

因此，從 2022 年的天然氣生產開始，我們有大約 390 萬個 RIN 庫存可供出售，從 2023 年天然氣生產開始，我們有大約 730 萬個 RIN 庫存可以出售。我們計劃在 2023 年第一季度從 2022 天然氣生產中轉移 390 萬 RIN 庫存。我們在 2022 年生產了約 190,000 兆瓦時的可再生電力，與 2021 年的 183,000 兆瓦時相比增加了約 7,000 兆瓦時或 3.8% . 2022 年，由於前期發動機修復項目，我們的安全設施在 2022 年產生了 10,000 兆瓦時，而 2021 年減少了 0。

Offsetting this increase was a decrease at our Tulsa facility that produced 3,000 megawatt hours left in 2022 compared to 2021 due to feedstock -- reduced feedstock availability at the landfill. Revenues from renewable electricity facilities in 2022 were $17.2 million, an increase of $1.7 million or 11.1% compared to $15.4 million in 2021. Our Bowerman facility contributed $1.2 million of the increase, which was primarily driven by a temporary shutdown of the facility in the fourth quarter of 2020 due to California wildfires resulting in $0.6 million in reduced environmental attribute revenues in 2021 compared to 2022.

與 2021 年相比，我們的塔爾薩工廠因原料減少而在 2022 年生產了 3,000 兆瓦時，抵消了這一增長——垃圾填埋場的原料可用性降低。 2022 年可再生電力設施的收入為 1720 萬美元，與 2021 年的 1540 萬美元相比增加了 170 萬美元或 11.1%。我們的 Bowerman 設施貢獻了 120 萬美元的增長，這主要是由於設施在第四季度臨時關閉所致2020 年第四季度，由於加州野火導致 2021 年環境屬性收入與 2022 年相比減少 60 萬美元。

Also contributing to the increase is our security facility engine restoration project resulting in $0.7 million in higher revenues for 2022 compared to 0 in 2021. During 2022, we recorded impairments of approximately $4.9 million, an increase of $3.7 million compared to $1.2 million in 2022. The primary driver for this increase relates to a third quarter 2022 impairment of approximately $2.1 million for our renewable electricity generation site wherein the forecasted future cash flows did not exceed the carrying value of the site's long-lived assets.

增加的另一個原因是我們的安全設施引擎修復項目導致 2022 年的收入增加 70 萬美元，而 2021 年為 0。在 2022 年期間，我們記錄的減值約為 490 萬美元，與 2022 年的 120 萬美元相比增加了 370 萬美元。這一增長的主要驅動因素與我們的可再生能源發電場 2022 年第三季度約 210 萬美元的減值有關，其中預測的未來現金流量不超過該場址長期資產的賬面價值。

As to the remaining long-lived asset groups, we concluded based on our annual cash flow assessment conducted for monitoring of potential impairment indicators at the cash flows to be generated are significantly in excess of the carrying values of our remaining operating sites, primarily due to the length of the underlying gas rights agreement, and we did not record any other impairments related to our cash flows assessments.

至於剩餘的長期資產組，我們根據我們為監測潛在減值指標而進行的年度現金流量評估得出的結論是，將產生的現金流量大大超過我們剩餘運營地點的賬面價值，這主要是由於基礎天然氣權利協議的期限，我們沒有記錄與我們的現金流量評估相關的任何其他減值。

Separate from our cash flow assessments, we identified discrete events and recorded impairment charges. A second renewable electricity generation site was impaired for $1.4 million due to a discrete conclusion that certain assets acquired in the May 2021 Montauk Ag Renewables acquisition would no longer be utilized. Also in 2022, we recorded an impairment at an R&D facility for approximately $1.1 million due to a specific identification of certain assets no longer being capable of being used as designed.

與我們的現金流量評估分開，我們識別離散事件並記錄減值費用。第二個可再生能源發電站減值 140 萬美元，原因是得出一個離散的結論，即在 2021 年 5 月收購 Montauk Ag Renewables 時獲得的某些資產將不再使用。同樣在 2022 年，由於特定資產不再能夠按設計使用，我們記錄了研發設施的減值約 110 萬美元。

Operating profit in 2022 was $44.6 million, an increase of $41.2 million compared to $3.3 million in 2021. R&G operating profit for 2022 was $94.4 million, an increase of $44 million or 87.6% compared to $50.4 million in 2021. The renewable electricity generation operating loss for 2022 was $7 million, an increase of $3.9 million or 127.2% compared to operating loss of $3.1 million in 2021.

2022 年營業利潤為 4460 萬美元，與 2021 年的 330 萬美元相比增加了 4120 萬美元。R&G 2022 年營業利潤為 9440 萬美元，與 2021 年的 5040 萬美元相比增加了 4400 萬美元或 87.6%。可再生能源發電營業虧損2022 年為 700 萬美元，與 2021 年 310 萬美元的營業虧損相比增加了 390 萬美元或 127.2%。

Turning to the balance sheet. In December 2021, we refinanced our credit facility and entered into the fourth amendment to the second amended and restated revolving credit and term loan agreement. The current credit agreement, which is secured by lean on substantially all assets of the company and certain of its subsidiaries, provides for a 5-year $80 million term loan and a $20 million revolving credit facility. As of December 31, 2022, and $72 million was outstanding under the term loan.

轉向資產負債表。 2021 年 12 月，我們對信貸額度進行再融資，並簽署了對第二次修訂和重述的循環信貸和定期貸款協議的第四次修訂。目前的信貸協議由 lean 公司及其某些子公司的幾乎所有資產擔保，提供 5 年期 8000 萬美元的定期貸款和 2000 萬美元的循環信貸額度。截至 2022 年 12 月 31 日，有期貸款未償還 7200 萬美元。

As of December 31, 2022, the company's capacity available for borrowing under the revolving credit facility was approximately $116.1 million. During 2022, we generated $81.8 million of cash from operating activities and 89.1% increase from the prior year ended December 31, 2021, of $42.9 million. For 2022, our capital expenditures were $22.3 million, of which, $6.9 million and $3.6 million were related to the Pico facility digestion capacity increase and the Montauk Ag renewables development in North Carolina, respectively. As of December 31, 2022, we had cash and cash equivalents of approximately $105.2 million.

截至2022年12月31日，該公司在循環信貸額度下的可藉貸能力約為1.161億美元。 2022 年，我們從經營活動中產生了 8180 萬美元的現金，比截至 2021 年 12 月 31 日的上一年的 4290 萬美元增長了 89.1%。 2022 年，我們的資本支出為 2230 萬美元，其中 690 萬美元和 360 萬美元分別與北卡羅來納州的 Pico 設施消化能力增加和 Montauk Ag 可再生能源開發有關。截至 2022 年 12 月 31 日，我們的現金和現金等價物約為 1.052 億美元。

Adjusted EBITDA for 2022 was $70.5 million, an increase of $43.6 million or 152.4% over adjusted EBITDA of $27.9 million for 2021. EBITDA for 2022 was $65.7 million, an increase of $40.3 million or 158.4% over EBITDA of $25.4 million for 2021. Net income for 2022 increased $39.7 million over net income for 2021. This increase was primarily related to increased operating revenues of $57.4 million or 38.8% to $205.6 million in 2022 as compared to operating revenues of $148.1 million in 2021.

2022 年調整後 EBITDA 為 7050 萬美元，比 2021 年調整後 EBITDA 2790 萬美元增加 4360 萬美元或 152.4%。2022 年 EBITDA 為 6570 萬美元，比 2021 年 2540 萬美元增加 4030 萬美元或 158.4%。淨收入2022 年的淨收入比 2021 年的淨收入增加 3970 萬美元。這一增長主要與 2022 年營業收入增加 5740 萬美元或 38.8% 至 2.056 億美元有關，而 2021 年的營業收入為 1.481 億美元。

I'll now turn the call back over to Sean.

我現在將電話轉回給肖恩。

Thank you, Kevin. In closing, we would like to provide our full year 2023 outlook. While we don't provide guidance on our expectations of future environmental attribute prices, volatility and index prices does impact our revenue expectations. We expect RNG production volumes to range between 5.7 million and 6.1 million MMBtu with corresponding R&D revenues between $137 million and $145 million. We expect renewable electricity production volumes to range between 195,000 and 205,000 megawatt hours with corresponding renewable electricity revenues between $18 million and $19 million.

謝謝你，凱文。最後，我們想提供我們的 2023 年全年展望。雖然我們沒有就我們對未來環境屬性價格的預期提供指導，但波動性和指數價格確實會影響我們的收入預期。我們預計 RNG 產量在 570 萬至 610 萬百萬英熱單位之間，相應的研發收入在 1.37 億美元至 1.45 億美元之間。我們預計可再生能源發電量在 195,000 至 205,000 兆瓦時之間，相應的可再生能源電力收入在 1800 萬至 1900 萬美元之間。

And with that, we will pause for any questions.

有了這個，我們將暫停任何問題。

(Operator Instructions)

（操作員說明）

Our first question is from William Blair with TPH.

我們的第一個問題來自 TPH 的 William Blair。

I had a 2-part question. So the first was on the 2023 RNG production. At the midpoint, it's about a 7% growth rate compared to your 2022 level. Is that a good number, it's kind of mid-single digits. Is that a good number to run with for the next 3 years or so? Because you did outline some compelling growth projects Apex-2, the work you're doing on the ag side. So I guess the question is, should we expect a step up in 2024 or is mid-single digit the right way to think about it going forward? And then the second question is, could you just clarify in your revenue guidance for 2023, what is your assumption on D3 RINs and LCFS prices that's embedded in that guidance? It kind of sounds like you expect D3 RINs to move up, but I just wanted to know what the actual embedded number was?

我有一個由兩部分組成的問題。所以首先是關於 2023 RNG 的生產。在中點，與 2022 年的水平相比，增長率約為 7%。這是一個很好的數字嗎，它是中等個位數。在接下來的 3 年左右，這個數字是否合適？因為你確實概述了一些引人注目的增長項目 Apex-2，你在 ag 方面所做的工作。所以我想問題是，我們應該期待在 2024 年有所提升，還是中等個位數是未來思考它的正確方式？然後第二個問題是，您能否在 2023 年的收入指南中澄清一下，您對該指南中嵌入的 D3 RIN 和 LCFS 價格的假設是什麼？聽起來您似乎希望 D3 RIN 向上移動，但我只是想知道實際嵌入的數字是多少？

Thank you, Matthew. I'll address the 2023 RNG production volumes first. Using the middle point for a growth rate from 2023 -- from 2022 would not include our expected volumes from the Apex project coming online in 2024. So we would anticipate a larger production volumes in 2024 as compared to that 2023 growth rate. And as it relates to the residual rest of 2023, I think as we were talking last year. There are some well field expansion projects as we monitor our well field expansion during the year as well as our landfill host during the year, we'll continue to monitor that 2023 production range and as we move throughout the year.

謝謝你，馬修。我將首先討論 2023 年的 RNG 產量。使用中間點作為 2023 年 - 從 2022 年開始的增長率將不包括我們預計 2024 年上線的 Apex 項目的產量。因此，與 2023 年的增長率相比，我們預計 2024 年的產量會更大。由於它與 2023 年剩餘時間有關，我認為正如我們去年所說的那樣。有一些油田擴建項目，因為我們在年內監控我們的油田擴建以及我們在年內的垃圾填埋場主機，我們將繼續監控 2023 年的生產範圍以及我們全年的移動。

And then just to reiterate, Sean's comments, we generally try to not opine on what our view of the RIN price is going to be in our embedded revenue guidance, just knowing that we have a view on what those D3 RIN indexes is going to look like for the rest of the year or the LCFS credit price as well.

然後重申一下，肖恩的評論，我們通常盡量不對我們對嵌入式收入指南中 RIN 價格的看法發表意見，只知道我們對那些 D3 RIN 指數的看法有看法就像今年剩餘時間或 LCFS 信貸價格一樣。

Our next question is from Manav Gupta with UBS.

我們的下一個問題來自瑞銀的 Manav Gupta。

I also have a 2-part question. And the first part here is that as I look at the revenue year-over-year, it looks like from the RNG side, you're going from about $196.2 million this year to about $137 million to $145 million, so let's say, $141 million, and I'm just trying to make sure is that apples-to-apples? And is that primarily driven by credit price differencing? And what I'm trying to really get here is there any reason why the EBITDA margin should be very different between the 2 years. So starting with a lower number, should I still assume a similar EBITDA margin for 2023, if I'm trying to benchmark my model versus 2022?

我還有一個由兩部分組成的問題。這裡的第一部分是，當我查看年同比收入時，從 RNG 方面來看，你今年的收入將從大約 1.962 億美元增加到大約 1.37 億美元到 1.45 億美元，比方說，141 美元百萬，我只是想確定這是同類產品嗎？這主要是由信貸價格差異驅動的嗎？我真正想要了解的是，為什麼 EBITDA 利潤率在 2 年之間應該有很大差異。因此，從較低的數字開始，如果我試圖將我的模型與 2022 年作為基準，我是否仍應假設 2023 年的 EBITDA 利潤率相似？

Okay, Manav. I can take that question. The guidance that we provided is it's reflective of the, call it, midpoint of the increase in production, it does reflect from a revenue perspective, the expectations of attribute pricing. The EBITDA margins, as you're calling them are expected to reflect changes with respect to tiered royalty structure that we have historically disclosed the business utilizes your cost of operations are not impacted in an increasing or a decreasing attribute scenario.

好的，馬納夫。我可以接受這個問題。我們提供的指導反映了產量增長的中點，它確實從收入的角度反映了屬性定價的預期。 EBITDA 利潤率，正如您所稱，預計將反映我們過去披露的分層特許權使用費結構的變化，業務利用您的運營成本不會在增加或減少的屬性情況下受到影響。

And our next question is from Craig Irwin with Roth.

我們的下一個問題來自 Craig Irwin 和 Roth。

It's Andrew on for Craig. So just a quick one for me here. You did touch on it on the prepared remarks, but I was just hoping you could provide some more color around the RVL proposal from the EPA and in particular, the introduction of RINs, proposed volumes of 600 million gallons in 2024 versus around 620 million gallons for D3 RINS treatments in 2023? So just I was wondering if you thought the proposed volumes were sufficient for the industry? And how has this shaped your thinking of RIN monetization in the near term?

這是克雷格的安德魯。所以在這裡對我來說只是一個快速的。你確實在準備好的評論中提到了它，但我只是希望你能圍繞 EPA 的 RVL 提議提供更多顏色，特別是引入 RIN，提議的 2024 年產量為 6 億加侖，而不是大約 6.2 億加侖2023 年的 D3 RINS 治療？所以我想知道您是否認為擬議的數量足以滿足該行業的需求？這如何影響了您對近期 RIN 貨幣化的看法？

Without giving a lot of speculation on our view of what RIN pricing will be, we do acknowledge that the compartmentalization of the RVO that was given by the EPA does sync up significantly closer to the run rate of RIN generation that's publicly available on the EPA site in relation to what the RVO has been compared to previous years. That compared with the allocation of future years for the onset of E-RINs, although is an exciting development. We do expect there to be a healthy discussion related to a large volume of commentary that's been submitted to the EPA since they released to those preliminary numbers.

在不對我們對 RIN 定價的看法進行大量猜測的情況下，我們確實承認 EPA 給出的 RVO 劃分確實同步得非常接近 EPA 網站上公開的 RIN 生成運行率關於 RVO 與前幾年的比較。與未來幾年為 E-RIN 的開始分配相比，這是一個令人興奮的發展。我們確實希望就 EPA 發布這些初步數據後提交給 EPA 的大量評論進行健康的討論。

And our next question is from Craig Shere with Tuohy Brothers.

我們的下一個問題來自 Craig Shere 和 Tuohy Brothers。

Given the weakness in environmental attribute pricing of late, LCFS somewhat steady over the past year plus and more recently, RINs. Is the fixed price institutional voluntary market looking more attractive? Or is the international opportunities to monetize environmental attributes looking more attractive? I know you participated in both of those.

鑑於最近環境屬性定價的疲軟，LCFS 在過去一年加上最近的 RIN 中有些穩定。固定價格的機構自願市場看起來更有吸引力嗎？還是將環境屬性貨幣化的國際機會看起來更有吸引力？我知道你參與了這兩件事。

That's a great question, Craig. The both the voluntary market as well as the international markets have continued to provide interesting opportunities to secure a relatively healthy baseline of revenue streams as an alternative to selling directly into the market. Our business model allows for us to divert volumes out of the RFS market to take advantage of those opportunities as they become available and the business routinely entertains and discusses with voluntary market offtakers as well as folks that participate even as obligated parties in the RFS that are looking for alternative structures beyond just a straight purchase of the D3 RIN attribute.

這是一個很好的問題，克雷格。自願市場和國際市場都繼續提供有趣的機會來確保相對健康的收入流基線，作為直接向市場銷售的替代方案。我們的商業模式允許我們將交易量轉移出 RFS 市場，以利用這些機會，因為這些機會變得可用，並且企業經常與自願的市場承購商以及參與 RFS 的義務方的人進行娛樂和討論除了直接購買 D3 RIN 屬性之外，尋找替代結構。

Thank you. And I'm showing no further questions at this time. I would now like to turn the conference back to Sean McClain for closing remarks.

謝謝。我現在沒有進一步提問。我現在想把會議轉回 Sean McClain 作閉幕詞。

Well, we thank you for taking the time to join us on the conference call today, and we look forward to speaking with you again on our 2023 first quarter conference call.

好吧，我們感謝您抽出時間參加我們今天的電話會議，我們期待在 2023 年第一季度電話會議上再次與您交談。

And this concludes today's conference call. Thank you for participating. You may now disconnect.

今天的電話會議到此結束。感謝您的參與。您現在可以斷開連接。