(MNTK) 2023 Q2 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 material or 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。我想將電話轉給約翰·西羅利先生，因為他對收益材料中或本次電話會議中包含的前瞻性陳述和非公認會計準則財務指標提出了一些重要警告。約翰，請繼續。

Thank you, and good afternoon, everyone. Welcome to Montauk Renewables earnings conference call to review the second quarter 2023 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 second quarter 2023 financial and operating results.

謝謝大家，大家下午好。歡迎參加蒙托克可再生能源公司的收益電話會議，回顧 2023 年第二季度的財務和運營業績及發展。我是蒙托克首席法律官兼秘書約翰·西羅利 (John Ciroli)。今天與我一起討論的是蒙托克總裁兼首席執行官肖恩·麥克萊恩(Sean McClain)，討論業務發展；首席財務官凱文·範·阿斯達蘭(Kevin Van Asdalan) 討論我們2023 年第二季度的財務和運營業績。

At this time, we 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 or implied by such forward-looking statements. These risk factors and uncertainties are detailed in Montauk Renewables' SEC filings.

目前，我們希望您注意我們的前瞻性披露聲明。在本次電話會議中，我們發表的某些評論構成前瞻性陳述，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明示或暗示的結果或業績存在重大差異。蒙托克可再生能源公司向美國證券交易委員會提交的文件中詳細介紹了這些風險因素和不確定性。

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.

我們今天的言論可能還包括非公認會計準則的財務指標。我們提出 EBITDA 和調整後的 EBITDA 指標，因為我們相信這些指標可以幫助投資者在一致的基礎上分析我們在報告期內的業績，排除我們認為不能反映我們核心經營業績的項目。這些非公認會計準則財務指標並非按照公認會計原則編制。

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 second quarter 2023 earnings press release and Form 10-Q issued and filed this afternoon, which are also available on our website, 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.

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 財務指標的調節表，請參閱我們的幻燈片演示以及我們今天下午發布和提交的2023 年第二季度收益新聞稿和10 -Q 表格，這些資料也可在我們的網站 ir.montaukrenewables.com 上獲取。在我們準備好發言後，我們將開始提問。我們要求您只提出一個問題，以容納盡可能多的問題。

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

然後，我會將電話轉給肖恩。

Thank you, John. Good day, everyone, and thank you for joining our call. On June 21, 2023, the Environmental Protection Agency announced final rules for the renewable fuel standard for the 2023 through 2025 years. While the final rules did not finalize the eRIN program, it did set final volumes for cellulosic biofuel at 838, 1,090 and 1,376 million RINs for the years 2023, 2024 and 2025 respectively. Though noting the delayed eRIN program, the finalization of the rules had an appreciable impact on the D3 RIN index price. The average D3 RIN index price from June 22 through June 30 was approximately 31% higher than the index price average from June 1 through June 21.

謝謝你，約翰。大家好，感謝您加入我們的通話。 2023 年 6 月 21 日，環境保護局宣布了 2023 年至 2025 年可再生燃料標準的最終規則。雖然最終規則並未最終確定 eRIN 計劃，但它確實將 2023 年、2024 年和 2025 年纖維素生物燃料的最終產量分別設定為 838、1,090 和 1,3.76 億 RIN。儘管注意到 eRIN 計劃的延遲，但規則的最終確定對 D3 RIN 指數價格產生了顯著影響。 6月22日至6月30日的D3 RIN指數平均價格比6月1日至6月21日的指數平均價格高出約31%。

As planned, we monetized a significant number of RINs after the announced final rules, prioritizing obligated parties and benefiting from the notable rise in D3 RIN index price. We monetized all RINs generated and unsold as of June 30, 2023 and committed the majority of our expected 2023 third quarter RIN generation. We have not yet entered into forward sale commitments beyond the fourth quarter of 2023 RIN generation.

按照計劃，我們在最終規則公佈後將大量 RIN 貨幣化，優先考慮義務方，並從 D3 RIN 指數價格的顯著上漲中受益。我們將截至 2023 年 6 月 30 日生成和未售出的所有 RIN 貨幣化，並承諾了我們預計 2023 年第三季度生成的大部分 RIN。我們尚未做出 2023 年第四季度 RIN 一代之後的遠期銷售承諾。

The average realized price of these July 2023 commitments were priced at or above the July 2023 average D3 RIN index price. The final rule also included significant changes to the existing RFS program referred to as biogas regulatory reform, requiring the RNG industry to modify how all RINs are generated. New RFS participating facilities that register on or after July 1, 2024, will have to meet the biogas regulatory reform provisions beginning July 1, 2024. Existing RFS participating facilities that registered prior to July 1, 2024, will have until January 1, 2025, to come into compliance with biogas regulatory reforms.

這些 2023 年 7 月承諾的平均實現價格等於或高於 2023 年 7 月 D3 RIN 指數平均價格。最終規則還包括對現有 RFS 計劃（稱為沼氣監管改革）的重大變更，要求 RNG 行業修改所有 RIN 的生成方式。在2024 年7 月1 日或之後註冊的新RFS 參與設施必須滿足自2024 年7 月1 日起的沼氣監管改革規定。在2024 年7 月1 日之前註冊的現有RFS 參與設施將在2025 年1 月1 日之前滿足沼氣監管改革規定。遵守沼氣監管改革。

For existing registrants, registration updates must be submitted by October 1, 2024. On January 1, 2025, all RFS participants must comply with biogas regulatory reform provisions. The EPA finalized a limitation that biogas from one facility has a single use under the RFS as proposed. The EPA clarified that this does not preclude non-RFS uses at the same facility.

對於現有註冊者，註冊更新必須在 2024 年 10 月 1 日之前提交。2025 年 1 月 1 日，所有 RFS 參與者必須遵守沼氣監管改革規定。 EPA 最終確定了一項限制，即根據提議的 RFS，來自一個設施的沼氣只能使用一次。 EPA 澄清，這並不排除在同一設施中進行非 RFS 用途。

Over the last few quarters, we have announced a series of development projects that, in the aggregate, are expected to materially contribute to the growth of the business. During the third quarter of 2022, we announced our second facility at the Apex site. We expect this plant to increase daily production by approximately 2,100 MMBtus per day at commissioning during the second half of 2024. During the first quarter of 2023, we announced our expansion into South Carolina with our planned Blue Granite RNG facility. We expect this plant to increase daily production by approximately 900 MMBtus a day at commissioning in 2025.

在過去的幾個季度中，我們宣布了一系列開發項目，總體而言，預計將為業務增長做出重大貢獻。 2022 年第三季度，我們宣佈在 Apex 站點建立第二個工廠。我們預計該工廠在 2024 年下半年投入運行後，日產量將增加約 2,100 MMBtus。2023 年第一季度，我們宣布將計劃的 Blue Granite RNG 工廠擴展到南卡羅來納州。我們預計該工廠在 2025 年投入運行時，日產量將增加約 900 MMBtus。

And last but not least, in June 2023, we announced our planned development of a landfill gas to RNG project in Irvine, California at the Frank R. Bowerman Landfill. This project is anticipated to process the large and growing volumes of biogas in excess of the existing capacity of our Renewable Electric Generation facility. With the targeted date in 2026, we currently expect the capital investment of the new RNG facility to range between $85 million and $95 million with a production nameplate capacity of approximately 3,600 MMBtus per day, assuming currently forecasted biogas feedstock volumes that are projected to be available from the host landfill at the time of commissioning.

最後但並非最不重要的一點是，2023 年 6 月，我們宣布計劃在加利福尼亞州歐文市的 Frank R. Bowerman 垃圾填埋場開發垃圾填埋氣至 RNG 項目。該項目預計將處理大量且不斷增長的沼氣，超過我們可再生髮電設施的現有容量。以 2026 年為目標日期，我們目前預計新 RNG 設施的資本投資將在 8500 萬美元至 9500 萬美元之間，假設當前預測的沼氣原料量預計可用，生產能力約為每天 3,600 MMBtus調試時來自主垃圾填埋場。

Next, I would like to provide an update on our Pico dairy cluster project in Idaho. As a result of the public comment period ending March 14, 2023, without any significant comments, CARB certified our Tier 2 application and certified CI value of minus 260.56. It will be used to report and generate LCFS credits. We released the remaining gas from storage in the second quarter of 2023.

接下來，我想介紹一下我們在愛達荷州的 Pico 乳製品集群項目的最新情況。公眾意見徵詢期截至 2023 年 3 月 14 日，沒有任何重大意見，CARB 認證了我們的 Tier 2 申請，並認證 CI 值為負 260.56。它將用於報告和生成 LCFS 學分。我們於 2023 年第二季度釋放了存儲中的剩余天然氣。

Related to our [Pete's] Pico feedstock amendment, which increases the amount of feedstock supplied to the facility for processing over a 3-year period, the dairy has delivered the first 2 increases in feedstock and we have made the corresponding contractual payments. The efficiencies and improvements to both our feedstock digestion and water management have enabled us to process the increased feedstock volumes from the dairy.

與我們的[Pete's] Pico 原料修正案相關，該修正案增加了在3 年內供應給工廠進行加工的原料數量，乳品廠已交付了前2 批增加的原料，並且我們已支付了相應的合同付款。原料消化和水管理的效率和改進使我們能夠處理乳製品中增加的原料量。

As we previously disclosed, we 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 continue to expect the digestion expansion project will be functionally complete during the third quarter of 2023. We also expect the dairy to begin delivering the third and final tranche of increased feedstock volumes in 2024.

正如我們之前披露的，我們於 2022 年第三季度完成了消化產能增加的設計，並開始產生與項目消化擴建建設完成設計相關的資本支出。我們仍然預計消化擴建項目將在 2023 年第三季度完成功能。我們還預計乳製品廠將於 2024 年開始交付第三批也是最後一批增加的原料量。

As to our swine waste to renewable energy development initiative in North Carolina, we continue to work with our engineer of record through the optimization and deployment of improvements to the patented reactor technology at our Turkey Creek, North Carolina location. In July 2023, we signed a renewable energy certificate agreement with Duke Energy, under which Duke will purchase the swine waste RECs from the conversion of swine waste feedstock into renewable energy at the Turkey Creek, North Carolina location.

至於我們在北卡羅來納州的豬糞轉化為可再生能源的開發計劃，我們將繼續與我們的記錄工程師合作，對北卡羅來納州土耳其溪工廠的專利反應器技術進行優化和部署改進。 2023 年 7 月，我們與杜克能源公司簽署了可再生能源證書協議，根據該協議，杜克公司將在北卡羅來納州土耳其溪工廠購買將豬廢物原料轉化為可再生能源的豬廢物 REC。

Once fully commissioned, we expect the facility to sell up to 47,000 RECs per year to Duke annually to meet the terms of that agreement. As a reminder, in the first quarter of 2023, we executed a receipt interconnection agreement with Piedmont Natural Gas for the Turkey Creek, North Carolina location. This agreement is structured to coincide with the development time line at the Turkey Creek, North Carolina location.

一旦全面投入使用，我們預計該設施每年將向杜克大學出售多達 47,000 個 REC，以滿足該協議的條款。提醒一下，2023 年第一季度，我們與 Piedmont Natural Gas 就北卡羅來納州土耳其溪地點簽署了收據互連協議。該協議的結構與北卡羅來納州土耳其溪地點的開發時間線一致。

Lastly, I would like to highlight a recent announcement regarding our potential development opportunity to create a beneficial use of otherwise waste biogenic carbon dioxide. In July 2023, we entered into a letter of intent with a North American subsidiary of Denmark-based European Energy, which reserves the use of the CO2 for our Texas facilities.

最後，我想強調最近發布的一項關於我們潛在的發展機會的公告，以創造對原本廢棄的生物二氧化碳的有益利用。 2023 年 7 月，我們與丹麥歐洲能源公司的北美子公司簽訂了一份意向書，該公司為我們德克薩斯州的工廠保留了二氧化碳的使用。

Under the terms of the LOI, we expect to contract CO2 volumes from facilities to European Energy, sufficient for their large-scale production of E-methanol. Upon final agreement execution, the delivery term is expected to last up to 15 years with first delivery in 2026. The LOI terms allow for our capital commitments to be based on choosing technology that is most suited for the optimal delivery of the CO2 volumes to European Energy. The planned delivery is expected to prevent critical amounts of biogenic CO2 from entering the atmosphere, put it to beneficial use and create a new fixed-price commodity revenue stream for Montauk.

根據意向書條款，我們預計將工廠的二氧化碳排放量減少到歐洲能源公司，足以滿足其大規模生產電子甲醇的需要。最終協議執行後，交付期限預計將持續長達 15 年，首次交付將於 2026 年進行。意向書條款允許我們的資本承諾基於選擇最適合以最佳方式向歐洲交付二氧化碳量的技術。活力。計劃中的交付預計將防止大量生物二氧化碳進入大氣，使其得到有益利用，並為蒙托克創造新的固定價格商品收入來源。

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

這樣，我會將電話轉給凱文。

Thank you, Sean. I will be discussing our second quarter of 2023 financial and operating results. Please refer to our earnings press release and the supplemental slides that have been posted through our website for additional information. Total revenues in the second quarter of 2023 were $53.3 million, a decrease of $14.6 million or 21.5% compared to $67.9 million in the second quarter of 2022. The decrease is primarily related to a decrease in pricing of gas commodity indices and average realized RIN pricing during the second quarter of 2023 compared to the second quarter of 2022.

謝謝你，肖恩。我將討論我們 2023 年第二季度的財務和運營業績。請參閱我們的收益新聞稿和通過我們的網站發布的補充幻燈片以了解更多信息。 2023 年第二季度的總收入為5330 萬美元，與2022 年第二季度的6790 萬美元相比，減少了1460 萬美元，即21.5%。這一下降主要與天然氣商品指數定價和平均實現RIN 定價的下降有關2023 年第二季度與 2022 年第二季度相比。

Gas commodity indices decreased 70.7% during the second quarter of 2023 compared to the second quarter of 2022. Realized RIN pricing decreased during the second quarter of 2023 to $2.16 as compared to $3.38 in the second quarter of 2022, which also contributed to the decrease in total revenues.

與 2022 年第二季度相比，2023 年第二季度天然氣商品指數下降了 70.7%。2023 年第二季度實現的 RIN 定價從 2022 年第二季度的 3.38 美元下降至 2.16 美元，這也導致了總收入。

Additionally, contributing to the decrease was the expiration of the gas commodity hedge and the elimination of our counterparty sharing agreements. We recognized gains in the second quarter of 2022 of $1.6 million related to a gas commodity hedge program. We reported the impacts of our gas commodity hedge program within our corporate segment. We have not currently entered into any gas commodity hedge programs for 2023. We also recognized revenues of approximately $1.1 million in the second quarter of 2022 under our previous counterparty sharing agreements.

此外，天然氣商品對沖到期和我們的交易對手共享協議的取消也導致了下降。我們確認 2022 年第二季度與天然氣商品對沖計劃相關的收益為 160 萬美元。我們報告了天然氣商品對沖計劃對我們企業部門的影響。我們目前尚未簽訂任何 2023 年天然氣商品對沖計劃。根據之前的交易對手共享協議，我們還在 2022 年第二季度確認了約 110 萬美元的收入。

Total general and administrative expenses for the second quarter of 2023 were $8.7 million, which was flat as compared to $8.7 million for the second quarter of 2022. Increased rental expense and stock-based compensation expense as a result of stock option grants to our executives in the second quarter of 2023 and the 2022 amendments to the Montauk Ag renewables acquisition stock awards were offset by the forfeiture of restricted stock and lower professional fees. The 2023 option awards invest ratably over a period of 3 to 5 years.

2023 年第二季度的一般和管理費用總額為 870 萬美元，與 2022 年第二季度的 870 萬美元持平。由於向我們的高管授予股票期權，導致租金費用和股票薪酬費用增加。 2023 年第二季度和2022 年Montauk Ag 可再生能源收購股票獎勵的修訂被限制性股票的沒收和專業費用的降低所抵消。 2023 年期權獎勵的投資期限為 3 至 5 年。

Turning to our segment operating metrics, I'll begin by reviewing our Renewable Natural Gas segment. We produced 1.4 million MMBtu of RNG during the second quarter of 2023, a decrease of less than $0.1 million compared to 1.4 million MMBtus produced in the second quarter of 2022.

談到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 2023 年第二季度生產了 140 萬 MMBtu 的 RNG，與 2022 年第二季度生產的 140 萬 MMBtu 相比，減少了不到 10 萬美元。

Our Rumpke facility produced approximately 0.1 million less MMBtu in the second quarter of 2023 compared to the second quarter of 2022 as a result of process equipment failure in the second quarter of 2023, which temporarily impacted production. The process equipment which failed has been repaired.

由於 2023 年第二季度工藝設備故障，暫時影響了生產，我們的倫普克工廠在 2023 年第二季度的產量比 2022 年第二季度減少了約 10 萬 MMBtu。發生故障的工藝設備已修復。

Our Pico facility produced approximately 0.1 million less MMBtu in the second quarter of 2023 compared to the second quarter of 2022 due to feedstock processing challenges. Our Galveston facility produced less than 0.1 million more MMBtus in the second quarter of 2023 compared to the second quarter of 2022 as a result of process equipment modifications.

由於原料加工方面的挑戰，我們的 Pico 工廠在 2023 年第二季度的產量比 2022 年第二季度減少了約 10 萬 MMBtu。由於工藝設備改造，我們的加爾維斯頓工廠在 2023 年第二季度比 2022 年第二季度多生產了不到 10 萬 MMBtus。

Revenues from the Renewable Natural Gas segment in the second quarter of 2023 were $48.6 million, a decrease of $16 million or 24.7% compared to $64.6 million in the second quarter of 2022. Average commodity pricing for natural gas for the second quarter of 2023 was $2.10 per MMBtu, 70.7% lower than the second quarter of 2022. During the second quarter of 2023, we self-monetized 17.4 million RINs, representing a 3 million RIN increase or 20.8% compared to 14.4 million RINs in the second quarter of 2022.

2023 年第二季度可再生天然氣部門的收入為4860 萬美元，與2022 年第二季度的6460 萬美元相比，減少了1600 萬美元，即24.7%。2023 年第二季度天然氣的平均商品定價為2.10 美元每MMBtu，比2022 年第二季度下降70.7%。2023 年第二季度，我們自行貨幣化了1,740 萬個RIN，與2022 年第二季度的1,440 萬個RIN 相比，增加了300 萬個RIN，增幅為20.8%。

Average realized pricing on RIN sales during the second quarter of 2023 was $2.16 as compared to $3.38 in the second quarter of 2022, a decrease of 36.1%. This compares to the average D3 RIN index price for the second quarter of 2023 of $2.16, being approximately 32.9% lower than the average D3 RIN index price in the second quarter of 2022.

2023 年第二季度 RIN 銷售的平均實現定價為 2.16 美元，而 2022 年第二季度為 3.38 美元，下降了 36.1%。相比之下，2023 年第二季度 D3 RIN 指數平均價格為 2.16 美元，比 2022 年第二季度 D3 RIN 指數平均價格低約 32.9%。

At June 30, 2023, we had approximately 0.4 million MMBtus available for RIN generation and had approximately 3 million RINs generated and unsold. At June 30, 2022, we had approximately 0.4 million MMBtus available for RIN generation and had approximately 1.1 million RINs generated and unsold.

截至 2023 年 6 月 30 日，我們有約 40 萬個 MMBtus 可用於 RIN 生成，並生成和未售出約 300 萬個 RIN。截至 2022 年 6 月 30 日，我們有約 40 萬個 MMBtus 可用於 RIN 生成，並生成和未售出約 110 萬個 RIN。

Our profitability is highly dependent on the market price of environmental attributes, including the market price for RINs. As a result, at June 30, 2023, we had approximately 3 million RINs in inventory, an increase of 167.5% compared to June 30, 2022. As Sean previously noted, we entered into commitments to transfer during July 2023 all of these RINs generated but unsold. Our average realized RIN price for these July '23 transfers were priced at or in excess of the July 2023 average D3 RIN index price of $3.06.

我們的盈利能力高度依賴於環境屬性的市場價格，包括 RIN 的市場價格。因此，截至2023 年6 月30 日，我們的庫存約為300 萬個RIN，與2022 年6 月30 日相比增加了167.5%。正如Sean 之前指出的，我們承諾在2023 年7 月期間轉移所有生成的RIN但未售出。我們這些 23 年 7 月轉賬的平均實現 RIN 價格等於或超過 2023 年 7 月平均 D3 RIN 指數價格 3.06 美元。

Our operating and maintenance expenses for our RNG facilities in the second quarter of 2023 were $11.7 million, an increase of $0.7 million or 6.5% compared to $11 million in the second quarter of 2022. The primary driver of this increase was related to the timing of preventative maintenance expenses during the second quarter of 2023 at our Apex and Atascocita facilities. Also contributing to the increase in the second quarter of 2023 were well-filled operational enhancements at our Atascocita and coastal facilities.

2023 年第二季度，我們的RNG 設施的運營和維護費用為1170 萬美元，與2022 年第二季度的1100 萬美元相比，增加了70 萬美元，增幅為6.5%。這一增長的主要原因與2023 年第二季度我們的 Apex 和 Atascocita 設施的預防性維護費用。我們的 Atascocita 和沿海設施的運營增強也對 2023 年第二季度的增長做出了貢獻。

We produced approximately 49,000 megawatt hours in renewable electricity during the second quarter of 2023, an increase of approximately 2,000 megawatt hours compared to 47,000 megawatt hours in the second quarter of 2022. Our security facility produced approximately 1,000 megawatt hours more in the second quarter of 2023 compared to the second quarter of 2022 due to engine maintenance completed in the second quarter of 2022.

2023 年第二季度，我們生產了約49,000 兆瓦時的可再生電力，與2022 年第二季度的47,000 兆瓦時相比，增加了約2,000 兆瓦時。我們的安全設施在2023 年第二季度生產了約1,000 兆瓦時與 2022 年第二季度相比，由於發動機維護於 2022 年第二季度完成。

Revenues from renewable electricity facilities in the second quarter of 2023 were $4.6 million, an increase of $0.3 million or 7.3% compared to $4.3 million in the second quarter of 2022. The increase is primarily driven by the increase in our renewable electricity production volumes.

2023 年第二季度可再生電力設施的收入為460 萬美元，與2022 年第二季度的430 萬美元相比增加了30 萬美元，即7.3%。這一增長主要是由於我們可再生電力產量的增加所致。

Our renewable electricity generation operating and maintenance expenses in the second quarter of 2023 were $3.4 million, a decrease of $0.4 million or 10% compared to $3.8 million in the second quarter of 2022. The decrease is primarily related to scheduled preventative maintenance at our Bowerman facility, which was approximately $0.7 million higher in the second quarter of 2022 compared to the second quarter of 2023. Our Turkey Creek facility operating and maintenance expenses increased approximately $0.2 million as a result of non-capitalizable costs for Montauk Ag renewables.

2023 年第二季度我們的可再生能源發電運營和維護費用為340 萬美元，與2022 年第二季度的380 萬美元相比減少了40 萬美元，即10%。這一減少主要與鮑爾曼工廠的定期預防性維護有關，與2023 年第二季度相比，2022 年第二季度增加了約70 萬美元。由於Montauk Ag 可再生能源的不可資本化成本，我們的土耳其溪設施運營和維護費用增加了約20 萬美元。

We calculated and recorded an impairment loss of $0.3 million in the second quarter of 2023, an increase of $0.2 million compared to $0.1 million in the second quarter of 2022. The impairments in the second quarter of 2023 were for specifically identified RNG machinery and equipment that were no longer in operational use. Other than these discrete events, we did not record any other impairments related to future cash flows.

我們計算並記錄了2023 年第二季度的減值損失為30 萬美元，與2022 年第二季度的10 萬美元相比增加了20 萬美元。2023 年第二季度的減值針對的是專門確定的RNG 機械和設備，不再投入運營。除這些離散事件外，我們沒有記錄與未來現金流量相關的任何其他減值。

Operating income in the second quarter of 2023 was $13.6 million, a decrease of $10.4 million or 43.4% compared to $24.0 million in the second quarter of 2022. RNG operating income for the second quarter of 2023 was $23 million, a decrease of $12.2 million or 34.7% compared to $35.2 million in the second quarter of 2022. Renewable electricity generation operating loss for the second quarter of 2023 was $0.6 million, a decrease of $0.8 million or 58.7% compared to $1.4 million in the second quarter of 2022.

2023 年第二季度營業收入為1360 萬美元，與2022 年第二季度的2400 萬美元相比減少了1040 萬美元，降幅為43.4%。RNG 2023 年第二季度營業收入為2300 萬美元，減少了1220 萬美元或與2022 年第二季度的3520 萬美元相比，下降了34.7%。2023 年第二季度的可再生能源發電運營虧損為60 萬美元，比2022 年第二季度的140 萬美元減少了80 萬美元，降幅為58.7%。

Turning to the balance sheet as of June 30, 2023, $68 million was outstanding under our term loan. Our capacity available for borrowing under the revolving credit facility was approximately $117.6 million. During the second quarter of 2023, we generated $6.1 million of cash from operating activities, a decrease of $20.7 million or 77.2% compared to $26.8 million of cash provided by operating activities in the second quarter of 2022.

截至 2023 年 6 月 30 日的資產負債表，我們的定期貸款未償還金額為 6800 萬美元。我們在循環信貸安排下的可用借款能力約為 1.176 億美元。 2023 年第二季度，我們從經營活動中產生了 610 萬美元的現金，與 2022 年第二季度經營活動產生的 2680 萬美元相比，減少了 2070 萬美元，即 77.2%。

In the second quarter of 2023, our capital expenditures were $29.6 million, of which approximately $9.8 million, $5 million, $6.7 million and $3 million were related to the ongoing Pico facility adjustment capacity increase, our Montauk Ag Renewables development in North Carolina, the second Apex RNG facility and the South Carolina Blue Granite RNG project respectively.

2023 年第二季度，我們的資本支出為2960 萬美元，其中約980 萬美元、500 萬美元、670 萬美元和300 萬美元與正在進行的Pico 設施調整產能增加有關，這是我們在北卡羅來納州的蒙托克農業可再生能源開發項目，第二個分別是 Apex RNG 設施和南卡羅來納州 Blue Granite RNG 項目。

As of June 30, 2023, we had cash and cash equivalents of approximately $78.1 million. On June 21, 2023, we've entered into the third amended and restated loan agreement and secured promissory note by and between Montauk and Montauk Holdings Limited, amending and restating in its entirety the second loan agreement and security promissory note as amended.

截至 2023 年 6 月 30 日，我們擁有現金和現金等價物約 7810 萬美元。 2023 年6 月21 日，我們與蒙托克控股有限公司簽訂了第三份經修訂和重述的貸款協議和擔保本票，對第二份貸款協議和經修訂的擔保本票進行了整體修改和重述。

The MNK amendment increases the principal amount of the loan from its current balance of $8.9 million to a total of $10 million in the aggregate and extends the maturity date of the loan from June 30, 2023, to December 31, 2023, and increases our security interest from 800,000 shares to 976,623 shares of common stock of Montauk owned by Montauk Holdings Limited.

MNK 修正案將貸款本金額從當前餘額 890 萬美元增加到總計 1000 萬美元，並將貸款到期日從 2023 年 6 月 30 日延長至 2023 年 12 月 31 日，並增強了我們的安全性Montauk Holdings Limited 擁有的Montauk 普通股權益從800,000 股變為976,623 股。

The terms of the MNK amendment are otherwise substantially similar to the MNK loan agreement. As previously disclosed, we entered into the MNK loan agreement in accordance with our obligations set forth in the transaction implementation agreement entered into by and among us Montauk Holdings Limited and other party in connection with our 2021 initial public offering.

MNK 修正案的條款在其他方面與 MNK 貸款協議基本相似。正如之前披露的，我們根據 Montauk Holdings Limited 與其他方就我們 2021 年首次公開募股簽訂的交易實施協議中規定的義務簽訂了 MNK 貸款協議。

Adjusted EBITDA for the second quarter of 2023 was $19.2 million, a decrease of $8.4 million or 30.4% compared to $27.6 million for the second quarter of 2022. EBITDA for the second quarter of 2023 was $18.9 million, a decrease of $10.2 million or 35.1% compared to $29.1 million for the second quarter of 2022.

2023 年第二季度調整後EBITDA 為1,920 萬美元，與2022 年第二季度的2,760 萬美元相比，減少840 萬美元，即30.4%。2023 年第二季度的EBITDA 為1,890 萬美元，減少1,020 萬美元，即35.1%相比之下，2022 年第二季度為 2910 萬美元。

Net income for the second quarter of 2023 decreased $18.1 million or 94.8% over the second quarter of 2022. This decrease was primarily related to a reduction of revenues due to a decrease in pricing of gas commodity indices and average realized RIN pricing.

2023 年第二季度淨利潤比 2022 年第二季度減少 1,810 萬美元，下降 94.8%。這一下降主要與天然氣商品指數定價和平均實現 RIN 定價下降導致收入減少有關。

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

我現在將把電話轉回給肖恩。

Thank you, Kevin. In closing, we would like to provide an updated full year 2023 outlook. While we don't provide guidance on our expectations of future environmental attribute pricing, volatility and index pricing does impact our revenue expectations. We continue to expect RNG production volumes to range between 5.7 million and 6.1 million MMBtus and have increased the corresponding RNG revenues to between $160 million and $175 million. We expect renewable electricity production volumes to range between 195,000 megawatt hours and 200,000 megawatt hours with corresponding renewable electricity revenues between $18 million and $19 million.

謝謝你，凱文。最後，我們希望提供更新後的 2023 年全年展望。雖然我們沒有對未來環境屬性定價的預期提供指導，但波動性和指數定價確實會影響我們的收入預期。我們仍然預計 RNG 產量將在 570 萬至 610 萬 MMBtus 之間，並將相應的 RNG 收入增加至 1.6 億至 1.75 億美元之間。我們預計可再生能源發電量將在 195,000 兆瓦時至 200,000 兆瓦時之間，相應的可再生電力收入將在 1800 萬美元至 1900 萬美元之間。

And with that, we will pause for any questions.

至此，我們將暫停回答任何問題。

(Operator Instructions) Our first question will come from Manav Gupta with UBS.

（操作員說明）我們的第一個問題將來自瑞銀集團的馬納夫·古普塔（Manav Gupta）。

Guys, I just want to say a lot of times we see companies trying to make trading decisions and they completely mess it up. Your decision to not sell RINs in 1Q was an absolute masterstroke. I have never seen a strategy executed so well. So congratulations on that.

伙計們，我只想說，很多時候我們看到公司試圖做出交易決策，但他們完全把事情搞砸了。你們決定在第一季度不出售 RIN 絕對是一個絕妙的決定。我從來沒有見過一個策略執行得如此之好。所以恭喜你。

My question here is you announced something very interesting in agreement with Duke Energy. Can you talk a little bit more about why it makes strategic sense, how it adds value over a period of time and the benefits of this agreement?

我的問題是，您宣布了與杜克能源公司達成一致的一些非常有趣的事情。您能否多談談為什麼它具有戰略意義、它如何在一段時間內增加價值以及該協議的好處？

Sure, Manav. One, thank you very much for the compliment regarding the RIN strategy. The company continues to focus its monetization strategy by prioritizing its sales directly to the obligated parties under the renewable fuel standard. And by doing that and synchronizing the timing at which they satisfy their obligations throughout the year, the timing of the release -- the favorable release of the obligations for 2023 through 2025 couldn't have been better matched with the timing of that demand side coming from the obligated parties. So thank you.

當然，馬納夫。一，非常感謝您對 RIN 戰略的讚揚。該公司繼續關注其貨幣化戰略，優先考慮直接向可再生燃料標準下的義務方銷售。通過這樣做，並同步他們全年履行義務的時間，釋放的時間——2023年至2025年義務的有利釋放與需求方即將到來的時間相匹配。來自義務方。所以謝謝。

With respect to the Duke agreement, it's highly beneficial in a number of ways. One, you start to see the advancement of sort of the regulatory environment in North Carolina that is starting to acknowledge and prioritize renewable electricity credits coming from the conversion of swine waste into renewable energy. The second and equally is important for that first project that we are developing with that newly patented reactor technology is the fact that it is a fixed commodity price.

就杜克協議而言，它在很多方面都非常有益。第一，你開始看到北卡羅來納州監管環境的進步，開始承認並優先考慮將豬排泄物轉化為可再生能源所獲得的可再生電力信用額。對於我們正在利用新獲得專利的反應堆技術開發的第一個項目來說，第二個同樣重要的事實是它是固定的商品價格。

Businesses, as you indicated through your comment initially, you end up at some measured degree of volatility in monetizing your attribute pricing, to be able to bolster a phenomenal project for the environment and for the diversification of our product suite to be able to do that under a fixed price contract further underpins the security or the revenue and the EBITDA streams to allow for us to continue our strategy on the floating piece of the business in the form of the timing and to who the offtakers are of our environmental attributes.

正如您最初在評論中指出的那樣，企業最終在將屬性定價貨幣化時會出現一定程度的波動，以便能夠支持一個非凡的環境項目，並實現我們產品套件的多樣化，從而能夠做到這一點根據固定價格合同，進一步鞏固了安全性或收入和EBITDA 流，使我們能夠以時間和承購商屬於我們的環境屬性的形式繼續我們的浮動業務戰略。

Our next question will come from Craig Shere with Tuohy Brothers.

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

I'd like to dig in a little more on your comments around the Duke REC agreement. If I recall correctly, the swine opportunity in North Carolina was envisioned as possibly 20 projects over 5 years. How does this kind of in terms of its size and chunkiness kind of fit into that?

我想進一步深入了解您對杜克 REC 協議的評論。如果我沒記錯的話，北卡羅來納州的養豬機會預計在 5 年內可能有 20 個項目。就其大小和厚重而言，這種情況是如何適應的？

Craig, yes, that's a great question. The Duke arrangement represents the first stage of not a 20-project deployment, but a deployment of up to 20 reactors. The primary focus is on the collection and the processing on a per ton basis of swine waste in and around those communities of Eastern North Carolina. The Duke arrangement allows for the first deployment of the tranche of reactors that we're continuing to optimize and increasing the throughput that will continue to create a diversity of environmental projects -- products in the form of biochar and natural gas, renewable natural gas and renewable electricity and in the RECs. And so it is an anchor arrangement that starts that monetization processing gives us a line of sight as to when the project will in turn contribute to EBITDA.

克雷格，是的，這是一個很好的問題。杜克大學的安排代表的第一階段不是部署 20 個項目，而是部署多達 20 個反應堆。主要重點是北卡羅來納州東部社區及其周邊地區每噸豬糞的收集和處理。杜克大學的安排允許首次部署一批反應堆，我們正在繼續優化和增加吞吐量，這將繼續創造各種環境項目——生物炭和天然氣、可再生天然氣和可再生電力和 REC。因此，這是一種錨定安排，貨幣化處理讓我們能夠了解該項目何時將為 EBITDA 做出貢獻。

We have a question from Matthew Blair with TPH.

我們有 TPH 的馬修·布萊爾 (Matthew Blair) 提出的問題。

Congrats on the strong results. I wanted to just dig in a little bit more on the details of the RIN monetization in Q2. I believe you said that 17.4 million RINs were monetized at the $2.16, I guess, price. Is your regular run rate on RIN generation per quarter, approximately $12 million -- so just doing the math there, the 17 minus 12 times the $2.16, should we think about that extra boost in Q2 at around $10 million, maybe $11 million of EBITDA?

祝賀取得的強勁成果。我想進一步深入了解第二季度 RIN 貨幣化的細節。我相信您說過 1740 萬個 RIN 以 2.16 美元的價格貨幣化，我猜，價格是這樣的。您每季度RIN 發電的常規運行率約為1200 萬美元嗎？只要計算一下，17 減12 乘以2.16 美元，我們是否應該考慮第二季度的額外增長，約為1000 萬美元，也許EBITDA 為1100 萬美元？

And then as we look into Q3, it sounded like the remaining 3 million of RIN inventory were sold at $3.06, so that would be roughly a $9 million boost as we look into Q3 on top of your regular operations. Is that the right way to think about those moving parts on the RIN inventory?

然後，當我們研究第三季度時，聽起來剩餘的 300 萬 RIN 庫存以 3.06 美元的價格出售，因此，當我們研究第三季度時，除了常規運營之外，這大約會增加 900 萬美元。這是考慮 RIN 庫存中那些移動部件的正確方法嗎？

Generally, Matthew, you can look at it that way. And also don't forget, you're going to have to account for the carryover RINs exiting the first quarter that would have been sold, recognizing revenues and monetized in the second quarter as well. Into the third quarter, we highlighted the D3 index price, but did make a comment that our third quarter commitments of the RINs generated and unsold in July of 2023, we're at or above net index price. So generally, how you're getting to your math of contribution from RIN pricing in the second quarter and the third quarter is generally geographically aligned to what we're trying to convey.

一般來說，馬修，你可以這樣看。另外不要忘記，您必須考慮第一季度退出的結轉 RIN，這些 RIN 本來會在第二季度出售、確認收入並貨幣化。進入第三季度，我們強調了 D3 指數價格，但確實發表評論稱，我們第三季度承諾的 RIN 於 2023 年 7 月生成並未售出，我們處於或高於淨指數價格。因此，一般來說，您如何計算第二季度和第三季度 RIN 定價的貢獻在地理上通常與我們試圖傳達的內容一致。

And our next question comes from Ryan Pfingst with B. Riley.

我們的下一個問題來自 Ryan Pfingst 和 B. Riley。

Congrats on all the recent developments here. Kind of a higher-level question around the RVO. With it being the first time we've had a multiyear RVO, can you talk about what that might mean for the industry and how it could benefit you guys in particular as a producer?

祝賀這裡最近的所有進展。這是一個關於 RVO 的更高級別的問題。這是我們第一次進行多年的 RVO，您能談談這對行業意味著什麼，以及它如何使你們特別是作為製片人受益？

In general, Ryan, we do not comment on pricing speculation for the attributes. But definitively, having a demand range of clarity for multiple years does and will likely shape the landscape of development opportunities, acquisition opportunities as folks are starting to determine the level of supply that will go across the industry. We are active participants in renewable natural gas coalition and that information is routinely aggregated for EPA comment as they go through the RVO. And so there's always a mindset where we are trying to determine what that supply/demand mechanic looks like, particularly in the absence of a formal cellulosic waiver credit. But beyond that, we typically don't focus on guidance or commentary associated with what the pricing outlook could look like for those attributes in this year and beyond.

總的來說，Ryan，我們不會對屬性的定價猜測發表評論。但可以肯定的是，隨著人們開始確定整個行業的供應水平，多年來明確的需求範圍確實並且可能會塑造發展機會和收購機會的格局。我們是可再生天然氣聯盟的積極參與者，並且在 EPA 通過 RVO 時會定期匯總這些信息以供其發表評論。因此，我們總是有一種心態，試圖確定供需機制是什麼樣的，特別是在沒有正式的纖維素豁免信用的情況下。但除此之外，我們通常不會關注與今年及以後這些屬性的定價前景相關的指導或評論。

Looks like we have a follow-up from Matthew Blair with TPH.

看起來我們有馬修·布萊爾 (Matthew Blair) 和 TPH 的後續報導。

On the swine RNG efforts, you seem to be making good progress and I would say Montauk is certainly a leader in this space. Could you just talk about what's your competitive edge on swine RNG? Is it technology? Is it people? Is it relationships or maybe something else?

在豬RNG方面，你們似乎取得了良好的進展，我想說蒙托克無疑是這個領域的領導者。能簡單談談你們在豬RNG上的競爭優勢是什麼嗎？是技術嗎？是人嗎？是關係還是其他什麼？

Sure, Matthew. As we have disclosed in previous quarters, our patented reactor technology allows for a very efficient processing of the swine waste in sort of a spoken hub type of fashion that allows for the optimal conversion of the swine waste into the various elements of biochar, renewable natural gas and renewable electricity. It is essentially an opportunity to do what traditional digestion methods do in a fraction of the time with a more compact, more reliable piece of technology and demonstrate that with folks like Duke Energy and with other folks as we look to monetize all of the commodity and attribute streams of that project. So in general, that would be our largest competitive advantage.

當然，馬修。正如我們在前幾個季度所披露的那樣，我們的專利反應器技術可以以一種語音中心類型的方式非常有效地處理豬廢物，從而可以將豬廢物最佳地轉化為生物炭、可再生天然物質的各種元素。天然氣和可再生電力。這本質上是一個機會，可以用更緊湊、更可靠的技術在很短的時間內完成傳統消化方法的工作，並與杜克能源等人以及其他人一起證明這一點，因為我們希望將所有商品和技術貨幣化。該項目的屬性流。所以總的來說，這將是我們最大的競爭優勢。

We have one more follow-up from Manav Gupta with UBS.

我們還收到了馬納夫·古普塔 (Manav Gupta) 與瑞銀 (UBS) 的進一步跟進。

Quickly on this carbon dioxide agreement with the European Energy. This is somewhat a newer concept for us. Help us understand some of the benefits of this. I understand the deliveries are starting in '26, but help us understand where this can take you and what are the real benefits of delivering this to this European Energy company?

盡快與歐洲能源公司達成二氧化碳協議。這對我們來說是一個較新的概念。幫助我們了解這樣做的一些好處。據我所知，交付將於 26 年開始，但請幫助我們了解這會給您帶來什麼以及向這家歐洲能源公司交付該產品的真正好處是什麼？

Sure, Manav. The opportunity for us to take a natural consequence of our operational facilities in the form of biogenic CO2 that is being destroyed in our thermal oxidizer has routinely only been available for the generation of tax credits requiring you to be able to utilize those tax credits coming out of the Inflation Reduction Act and the evolution of those credits that are also tradable, alongside of that has been the opportunity to actually monetize the CO2. And in this opportunity, partnering with an exemplary business that has been able to utilize that for the creation of E-methanol.

當然，馬納夫。我們有機會對我們的運營設施產生自然後果，即生物二氧化碳，這些二氧化碳在我們的熱氧化器中被破壞，通常只能用於產生稅收抵免，要求您能夠利用這些稅收抵免《減少通貨膨脹法案》的製定和可交易信用的演變，除此之外，還有將二氧化碳實際貨幣化的機會。藉此機會，與一家能夠利用這一機會來創造電子甲醇的模範企業合作。

The opportunity to look beyond this initial arrangement definitively exists across our entire portfolio and exists in the form of actual CO2 that is destroyed in our thermal oxidation process, but also exists in the form of CO2e, an avoidance that happens at projects similar to what we are doing in North Carolina, where the CO2e would be primarily focused on the generation of tax credits because the equivalent obviously, cannot be sold as a commodity.

超越這種初始安排的機會確實存在於我們的整個產品組合中，並且以實際二氧化碳的形式存在，這些二氧化碳在我們的熱氧化過程中被破壞，但也以二氧化碳當量的形式存在，這種避免發生在類似於我們的項目中。北卡羅來納州正在做的事情，那裡的二氧化碳排放量主要集中在稅收抵免的產生上，因為顯然，等價物不能作為商品出售。

All of our operating facilities are capturing and destroying carbon dioxide, which can be used as a commodity as we start to look across the portfolio. So we're very excited for this first opportunity. And again, the benefits to us similar to the Duke arrangement that we have done in North Carolina is bolstering the business with fixed price revenue streams and the ability to allow for a stronger, more patient ability to monetize our environmental attributes in the hands of the obligated parties and allow for that timing to unfold throughout the year.

我們所有的運營設施都在捕獲和銷毀二氧化碳，當我們開始審視整個產品組合時，二氧化碳可以用作商品。因此，我們對這第一個機會感到非常興奮。再說一遍，與我們在北卡羅來納州所做的杜克安排類似，我們的好處是通過固定價格收入流來支持業務，並允許更強大、更耐心的能力將我們的環境屬性貨幣化。義務各方並允許這一時間在全年展開。

And I'm showing no other questions in the queue. I'd like to turn the call back over to Sean McClain for any closing remarks.

我在隊列中沒有顯示其他問題。我想將電話轉回肖恩·麥克萊恩（Sean McClain）以供結束髮言。

Thank you, and thank you all for taking the time to join us on the conference call today. We look forward to speaking with you on our 2023 third quarter conference call.

謝謝大家，也感謝大家抽出時間參加我們今天的電話會議。我們期待在 2023 年第三季度電話會議上與您交談。

Thank you. This concludes today's conference call. You may now disconnect.

謝謝。今天的電話會議到此結束。您現在可以斷開連接。