Montauk Renewables Inc (MNTK) 2023 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. Johnson Rowley SE's provide 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。我想將電話轉給 Johnson Rowley SE 先生，他提供了一些有關前瞻性陳述的重要警告。收益材料中包含的非公認會計原則財務指標是在這次電話會議上製定的。約翰，請繼續。

Thank you, and good afternoon, everyone. Welcome to Montauk Renewables earnings conference call to review fiscal 2023 financial and operating results and developments. I'm John Raleigh, Chief Legal Officer and Secretary at Monster. Joining me today are Sean McLain on talks, President and Chief Executive Officer to discuss business development, and Kevin Van Azlan, Chief Financial Officer, to discuss our 2023 financial and operating results. At this time, I would like to direct your attention to our forward-looking disclosure statement. During this call, certain comments we make constitute forward-looking statements and as such involve a number of assumptions, risks and uncertainties that could cause the company's actual results or performance to differ materially from those expressed in or implied by such forward-looking statements. These risk factors and uncertainties are detailed in Montauk renewables, SEC filings.

謝謝大家，大家下午好。歡迎參加蒙托克再生能源公司的收益電話會議，回顧 2023 財年的財務和營運績效及發展。我是 John Raleigh，Monster 首席法務官兼秘書。今天與我一起演講的包括總裁兼執行長 Sean McLain，討論業務發展；財務長 Kevin Van Azlan，討論我們 2023 年的財務和營運業績。此時，我想請您注意我們的前瞻性揭露聲明。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中明示或暗示的結果或業績存在重大差異。這些風險因素和不確定性在蒙托克再生能源公司向美國證券交易委員會提交的文件中有詳細說明。

Our remarks today may also include non-GAAP financial measures. We present EBITDA and adjusted EBITDA metrics because we believe the majors 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 in our fiscal 2023 earnings press release and Form 10 K issued and filed this afternoon. Those are available also on our website at IR dot Montauk renewables.com. After our prepared remarks, we will open the call to questions and we ask that you please keep to one question to accommodate as many as possible. And with that, I will turn the call over to Sean.

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，各大公司可以透過排除我們認為不能反映我們核心經營績效的項目，幫助投資者在一致的基礎上分析我們在報告期間的績效。這些非公認會計準則財務指標並非依照公認會計原則編製。有關這些非 GAAP 財務指標的更多詳細信息，包括與最直接可比較的 GAAP 財務指標的調節表，請參閱我們 2023 財年收益新聞稿的幻燈片演示以及今天下午發布和提交的 10 K 表格。這些也可以在我們的網站 IR dot Montauk renewables.com 上找到。在我們準備好發言後，我們將開始提問，請您只提出一個問題，以便盡可能回答問題。然後，我會將電話轉給肖恩。

Thank you, John. Good day, everyone. And thank you for joining our call. I will begin by summarizing our announced series of development projects. We expect to materially contribute to Monotype's multifaceted growth strategy in December 2023, we finalized a contract for the delivery of 140,000 tons per year of biogenic carbon dioxide from our four Texas RNG facilities to a North American subsidiary of European energy. In satisfaction of this arrangement, we intend to capture clean and liquefy CO2, which will then be transported to a new Texas based E methanol facility of European energy for delivery term is expected to last at least 15 years with deliveries expected in 2027. We expect our capital investment to approximate $15 million per facility and anticipate that capital spend to begin during the second half of 2024 as we work to achieve our targeted 2027 COMMISSION.

謝謝你，約翰。今天是個好日子。感謝您加入我們的電話會議。我將首先總結我們宣布的一系列開發項目。我們預計將在2023 年12 月為Monotype 的多方面增長戰略做出重大貢獻，我們敲定了一份合同，每年從我們的四個德克薩斯州RNG 工廠向歐洲能源公司的北美子公司交付14萬噸生物二氧化碳。為了滿足這項安排，我們打算捕獲清潔並液化的二氧化碳，然後將其運送到歐洲能源位於德克薩斯州的新 E 甲醇設施，預計交付期限至少持續 15 年，預計於 2027 年交付。我們預計每個設施的資本投資約為 1500 萬美元，並預計資本支出將於 2024 年下半年開始，同時我們將努力實現 2027 年的佣金目標。

During 2023, we announced our planned entrance into South Carolina through the development of a new landfill gas to RNG facility, an opportunity one by monetizing through a competitive bidding process. The planned project is expected to contribute approximately 900 MMBTUs a day of production capacity upon commission. We are in the development phase of the project and have started to incur capital expenditures. While we continue to expect the utility interconnection specifically included in our development assumptions to accept our production from this facility. The utility will require certain distribution system upgrades. So those upgrades do not directly impact our interconnection they do extend our expectation of the completion of that interconnection and the commissioning of our new RNG facility into 2026.

2023 年，我們宣布計劃透過開發一個新的垃圾掩埋氣轉 RNG 設施來進入南卡羅來納州，這是一個透過競爭性招標流程獲利的機會。規劃項目投產後預計將貢獻約900 MMBTU/天的產能。我們正處於該專案的開發階段，並已開始產生資本支出。雖然我們仍然期望公用事業互連特別包含在我們的發展假設中，以接受我們從該設施生產的產品。該實用程式將需要某些分發系統升級。因此，這些升級不會直接影響我們的互連，但它們確實延長了我們對互連完成和新 RNG 設施調試到 2026 年的預期。

During 2023, we also announced our planned development of a landfill gas to RNG project in Irvine, California at the CHF, our Ballard landfill. This new RNG facility is anticipated to process a large and growing volumes of biogas in excess of the existing capacity of our existing renewable electric generation facility on the back of that landfill, which we intend to both retain and operate alongside the new R&D facility as previously disclosed, we continue to expect the capital investment to range between $85 million and $95 million and anticipate the fully commissioned facility in 2026 to contribute approximately 3,600 MMBTUs per day in production capacity, assuming currently forecasted bio stock feedstock volumes that are projected to be available from the host landfill at the time of commissioning in 2026.

2023 年，我們也宣布計畫在加州歐文市的巴拉德垃圾掩埋場 CHF 開發垃圾掩埋氣轉 RNG 計畫。這個新的RNG 設施預計將處理大量且不斷增長的沼氣，超過我們位於該垃圾掩埋場後面的現有可再生發電設施的現有容量，我們打算像以前一樣保留該設施並與新的研發設施一起營運據披露，我們繼續預計資本投資將在8500 萬美元至9500 萬美元之間，並預計2026 年全面投入使用的設施將每天貢獻約3,600 MMBTU 的產能（假設目前預測的生物原料原料量預計可從2026 年投入運作時的主垃圾掩埋場。

I will now shift to an update on our various ongoing growth development projects, starting with our digestion capacity expansion of our Pecos dairy cluster project in Idaho. As previously disclosed, our dairy house began delivering the first two of three feedstock increases identified in our feedstock amendment. The catalyst for the expansion project. Also as previously disclosed, three of the four development payments were made to our dairy hosts related to those achieved feedstock increases. Our dairy has informed us that they expect to deliver the final increase in feedstock volumes in 2025, at which time we will make the final development payment. California Air Resource Board approved after the public comment period ended in March 2023. Our provisional carbon intensity score application with a CI. score of negative 261.56. We released the remaining gas from storage in the second quarter of 2023 and recognized both rent and LCFS credit revenues related to those storage releases during 2023.

我現在將介紹我們正在進行的各種成長開發項目的最新情況，首先是愛達荷州 Pecos 乳製品集群計畫的消化能力擴張。如同先前所揭露的，我們的乳品廠開始交付我們的原料修正案中確定的三種原料增量中的前兩種。擴建工程的催化劑。此外，正如先前披露的那樣，四筆開發付款中的三筆是向我們的乳製品東道主支付的，這些付款與實現的原料增加有關。我們的乳品廠通知我們，他們預計將在 2025 年實現最終增加的原料量，屆時我們將支付最終的開發費用。加州空氣資源委員會在 2023 年 3 月公眾評議期結束後獲得批准。我們的臨時碳強度評分應用程式與 CI。分數為負261.56。我們於 2023 年第二季釋放了儲存中的剩餘天然氣，並確認了與 2023 年釋放的儲存相關的租金和 LCFS 信貸收入。

Regarding the physical commissioning of our peak of dairy digestion capacity increase project, we successfully commissioned the first of two new digesters as well as our new reception pit, both of which became operational during the third quarter of 2023, we immediately began using the increased reception pit capacity and have been working to increase gas availability through the additional digesting capacity. We continue to commission that the second and last of our new additional digesters expect to complete commissioning during the second quarter of 2024 and increase gas availability into the third quarter of 2024. We continue to expect our digestion capacity expansion project will allow us to take advantage of the excess capacity in our existing RNG facility at this location.

關於乳製品消化能力增加項目的實際調試，我們成功調試了兩個新消化器中的第一個以及我們的新接收坑，這兩個坑均於2023 年第三季度投入運營，我們立即開始使用增加的接收量坑容量，並一直致力於透過額外的消化能力來增加天然氣的可用性。我們繼續委託，我們的第二個也是最後一個新的沼氣池預計將在 2024 年第二季完成調試，並在 2024 年第三季增加天然氣供應量。我們繼續預計，我們的消化產能擴建計畫將使我們能夠利用該地點現有 RNG 設施的過剩產能。

I will now discuss the many developments we have had related to our North Carolina, swine waste energy developments, my talk at Renewables, we continue to work with our engineer of record through the optimization of improvements to our patented reactor technology during the first quarter of 2023, we completed the relocation of our existing reactor from its original location in Magnolia, North Carolina to our new Turkey, North Carolina facility. In an effort to centralize future feedstock processing. We executed a receipt interconnection agreement with Piedmont Natural Gas for our Turkey, North Carolina location related to our interconnection. We signed a lease agreement with Belmont natural gas to provide access to the Turkey North Carolina property during the construction of the interconnection.

我現在將討論我們與北卡羅來納州、豬廢物能源開發、我在可再生能源上的演講有關的許多進展，我們將繼續與我們的記錄工程師合作，在第一季度對我們的專利反應器技術進行優化改進。2023 年，我們完成了將現有反應爐從北卡羅來納州木蘭市的原址搬遷至北卡羅來納州土耳其的新工廠的工作。努力集中未來的原料加工。我們與 Piedmont Natural Gas 簽署了與我們的互連相關的北卡羅來納州土耳其地點的收據互連協議。我們與貝爾蒙特天然氣公司簽署了租賃協議，以便在互連建設期間提供土耳其北卡羅來納州資產的使用權。

In July 2023, we signed a renewable energy certificate record agreement with Duke Energy Duke, under which Duke will purchase the swine waste risks from the conversion of swine waste feedstock into renewable energy.

2023年7月，我們與杜克能源杜克公司簽署了再生能源證書備案協議，根據該協議，杜克公司將購買將生豬廢棄物原料轉化為再生能源的生豬廢棄物風險。

During the third quarter of 2023, our Board of Directors approved funding for the first phase of our development initiative in North Carolina. We continue to expect the first phase total capital investment to range between $140 million and $160 million, which includes approximately $33 million of cumulative expenditures through the end of 2023. We continue to expect the first of our eight processing lines of this first phase to be operational in the second quarter of 2024, and we are currently planning for a rolling commissioning schedule for the remaining processing lines beginning the second half of 2024 through the second half of 2025, with revenues beginning in 2025, our turkey North Carolina project location was approved to participate in the peak month natural gas renewable pilot program, which is a step towards obtaining the new renewable energy facility, and REP designation under the North Carolina Utilities Commission. The NCUC. in January 2024, we received notification from the NCUC. that our Turkey, North Carolina location was approved for both our MRF and a certificate of public convenience and necessity. This is a critical step towards obtaining the end rep designation and obtaining this designation could have an impact on the timing of utility infrastructure at our turkey North Carolina location.

2023 年第三季度，我們的董事會批准了為北卡羅來納州開發計畫第一階段提供資金。我們仍預期第一階段總資本投資將在 1.4 億美元至 1.6 億美元之間，其中包括到 2023 年底約 3,300 萬美元的累積支出。我們仍然預計第一階段的八條加工線中的第一條將於 2024 年第二季度投入運營，目前我們正在計劃從 2024 年下半年開始到下半年對其餘加工線進行滾動調試計劃到2025 年，從2025 年開始收入，我們的土耳其北卡羅來納州項目地點獲準參與高峰月天然氣可再生試點計劃，這是獲得新的可再生能源設施和北卡羅來納州公用事業委員會REP 指定的一步。NCUC。 2024年1月，我們收到NCUC的通知。我們位於北卡羅來納州土耳其的工廠已獲得 MRF 和公共便利和必要性證書的批准。這是獲得最終代表指定的關鍵一步，獲得此指定可能會對我們土耳其北卡羅來納州地點的公用事業基礎設施的時間產生影響。

In March 2024, we submitted an amendment to our ad rep designation to optimize its applicability to specific facility componentry for which we expect a decision on that amendment during 2024. Upon completion of our first full phase of the Turkey, North Carolina projects, we anticipate the ability to process feed stuff from over 140,000 hog faces per day, equating to over 200 tons of daily waste collection per day. We continue to expect to annually produce approximately 45,000 to 50,000 megawatt hour equivalents through the combination of 190,000 to 200,000 MMBTU and 25,000 to 30,000 megawatt hours. Additionally, we continue to estimate the first phase of this project will produce 17,000 to 20,000 tons of organic fertilizer alternatives annually.

2024 年 3 月，我們提交了對廣告代表指定的修訂，以優化其對特定設施組件的適用性，我們預計在 2024 年期間就該修訂做出決定。北卡羅來納州土耳其計畫的第一個完整階段完成後，我們預計每天能夠處理超過 14 萬頭豬的飼料，相當於每天收集超過 200 噸廢物。我們繼續預計，透過 190,000 至 200,000 MMBTU 和 25,000 至 30,000 兆瓦時的組合，每年可生產約 45,000 至 50,000 兆瓦時當量。此外，我們繼續估計該計畫第一階段每年將生產17,000至20,000噸有機肥料替代品。

During 2022, we announced our plans to construct a second RNG processing facility at the apex landfill. This project is being driven by projections of biogas feedstock availability from the host landfill as the landfill host continues to increase its waste intake. We believe that the additional 2,100 MMBTU per day of production capacity of our new facility will allow for us to process the landfill hose currently forecasted increases in biogas feedstock volumes related to their projected increases in waste intake. While the landfill host continues to increase waste intake, we expect there could be a period where we have excess available capacity after the second facilities commissioned. We currently expect commercial operations during the fourth quarter of 2024.

2022 年，我們宣布計劃在頂端垃圾掩埋場建造第二個 RNG 處理設施。隨著垃圾掩埋場東道主繼續增加廢物攝入量，預計主垃圾掩埋場的沼氣原料可用性將推動該計畫的發展。我們相信，我們的新設施每天額外增加 2,100 MMBTU 的產能，將使我們能夠處理垃圾掩埋場軟管，目前預測沼氣原料量的增加與廢物攝入量的預計增加有關。雖然垃圾掩埋場東道國繼續增加廢物攝取量，但我們預計，在第二個設施投入使用後，我們可能會在一段時間內出現可用容量過剩的情況。我們目前預計將於 2024 年第四季投入商業營運。

In 2024, we reached an agreement with one of our landfill hosts to sell back our gas rights in advance of their expiration impacting one of our smaller renewable electric generation operating facilities. The strategic decision to exit this facility was influenced by mid 2024 expiration of an above market power purchase agreement, the elimination of decommissioning asset removal or site restoration obligations, sale proceeds of $1 million being well in excess of the carrying value of this project. And the offer to extend our gas rates at two of our existing RNG operating facilities, the task I see that a coastal Plains for an additional five years each the effective date of this transaction will be October first, 2024.

2024 年，我們與其中一家垃圾掩埋場東主達成協議，在天然氣權到期之前售回我們的天然氣權，這將影響我們的一處規模較小的再生能源發電營運設施。退出該設施的策略決策受到以下因素的影響：高於市場的購電協議將於2024 年中期到期，取消退役資產清除或場地恢復義務，100 萬美元的銷售收益遠超過該項目的帳面價值。並提出延長我們現有的兩個 RNG 營運設施的天然氣費率，我認為沿海平原的任務是額外五年，該交易的生效日期將為 2024 年 10 月 1 日。

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

然後，我會將電話轉給加里。

Thank you, Sean, and I will be discussing our 2023 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. Total revenues in 2023 were $174.9 million, a decrease of $30.7 million or 14.9% compared to $205.6 million in 2022. The primary driver for this decrease relates to a decrease of approximately 16.6% in realized rent pricing during 2023 of $2.71 compared to $3.25 in 2022.

謝謝肖恩，我和我將討論我們 2023 年的財務和營運業績，請參閱我們的收益新聞稿和已發佈到我們網站上的補充幻燈片以獲取更多資訊。2023 年總收入為 1.749 億美元，比 2022 年的 2.056 億美元減少 3,070 萬美元，即 14.9%。造成這一下降的主要原因是 2023 年實現的租金價格下降約 16.6%，為 2.71 美元，而 2022 年為 3.25 美元。

Additionally, contributing to the decrease was a decrease in natural gas index pricing of approximately 58.7% in 2023 of $2.74 compared to $6.64 in 2022. Total general and administrative expenses were $34.4 million in 2023, an increase of $0.3 million or 0.8% compared to $34.1 million for 2022. Our general and administrative expenses for 2023 increased approximately $2.1 million compared to 2022 associated with the 2022 Montauk add renewable stock-based compensation amendments to restricted share awards.

此外，天然氣指數定價從 2022 年的 6.64 美元下降到 2023 年的 2.74 美元，下降約 58.7%，也是造成這一下降的原因。2023 年一般及管理費用總額為 3,440 萬美元，與 2022 年的 3,410 萬美元相比增加了 30 萬美元，即 0.8%。與 2022 年相比，我們 2023 年的一般和管理費用增加了約 210 萬美元，原因是 2022 年蒙托克對限制性股票獎勵添加了可更新的基於股票的薪酬修正案。

Partially offsetting this increase was the reversal of approximately $1.0 million in stock-based compensation expense related to forfeited stock awards. Our professional fees expense was $4.6 million in 2023, a decrease of $0.7 million or 12.5% compared to $5.3 million in 2022. Montauk add renewables. Professional fees for 2023 increased approximately $0.4 million compared to 2022, which is included in the aforementioned total 2023 increase of $2.1 million for Montauk add renewables on only our rent expense was $0.7 million in 2023, an increase of $0.3 million or 69.6% compared to $0.4 million in 2022.

與沒收股票獎勵相關的約 100 萬美元股票補償費用的逆轉部分抵消了這一增長。2023 年，我們的專業費用支出為 460 萬美元，與 2022 年的 530 萬美元相比，減少了 70 萬美元，即 12.5%。蒙托克添加再生能源。與2022 年相比，2023 年的專業費用增加了約40 萬美元，其中包含在上述蒙托克添加可再生能源2023 年總增加額210 萬美元中，僅我們的租金費用在2023 年為70 萬美元，與0.4 美元相比增加了30 萬美元，即69.6% 2022 年將達到 100 萬。

Turning to our segment operating metrics. I'll begin by reviewing our renewable natural gas segment. We produced 5.5 million MMBTU of RNG during 2023, flat compared to 5.5 million MMBTUs produced in 2020 to reduce preventative maintenance and wellfield optimization in 2023 at certain sites led to increased production, notably at our task to see the facility producing 84,000 MMBTU more in 2023 compared to 2022. Offsetting these improvements were unrelated wellfield quality issues at other sites and portfolio-wide weather anomalies, which lowered production that by our ramp, the facility producing 95,000 fewer MMBTU in 2023 compared to 2022.

轉向我們的部門營運指標。我將首先回顧我們的再生天然氣部門。2023 年，我們生產了550 萬MMBTU 的RNG，與2020 年生產的550 萬MMBTU 持平，以減少2023 年某些地點的預防性維護和井場優化，從而導致產量增加，特別是我們的任務是看到該設施在2023 年多生產84,000 MMBTU與 2022 年相比。其他地點不相關的井場品質問題和整個組合範圍的天氣異常抵消了這些改進，從而降低了我們的產量，該設施 2023 年的 MMBTU 產量比 2022 年減少了 95,000 個。

Revenues from the renewable natural gas segment in 2022 were $156.4 million, a decrease of $39.8 million or 20.3% compared to $196.2 million in 2022. Average commodity pricing for natural gas for 2023 was 58.7% lower than the prior year. During 2023, we self marketed 44.9 million RINS, representing a 1.1 million increase or 2.5% compared to 43.8 million RIN in 2022. The increase was primarily related to the prior period RIN volumes carried over into 2023 compared to 2022.

2022年再生天然氣部門的收入為1.564億美元，比2022年的1.962億美元減少3,980萬美元，即20.3%。2023 年天然氣平均商品價格較上年下降 58.7%。2023 年，我們自銷 4,490 萬個 RIN，與 2022 年的 4,380 萬個 RIN 相比增加了 110 萬個，即 2.5%。這一增長主要與上期結轉到 2023 年的 RIN 數量（與 2022 年相比）有關。

Average realized pricing on renewed sales during 2023 was $2.71 as compared to $3.25 in 2022, a decrease of 16.6%. This compares to the average Y three rent index price for 2023 of $2.63 being approximately 11.7% lower than the average the three rent index price in 2022 of $2.98. At December 31st, 2023, we had approximately 0.4 million MMBTUs available for RIN generation and had approximately 0.1 million RIN generated in unsold. We had approximately 0.4 million MMBTUs available for wind generation and approximately 0.7 million RIN generated and sold at December 31st, 2022.

2023 年續約銷售的平均實現價格為 2.71 美元，而 2022 年為 3.25 美元，下降了 16.6%。相較之下，2023 年 Y 三個租金指數平均價格為 2.63 美元，比 2022 年三個租金指數平均價格 2.98 美元低約 11.7%。截至 2023 年 12 月 31 日，我們有約 40 萬個 MMBTU 可用於 RIN 生成，並有約 10 萬個 RIN 未售出。截至 2022 年 12 月 31 日，我們擁有約 40 萬個 MMBTU 可用於風力發電，並生產和銷售了約 70 萬個 RIN。

Our operating and maintenance expenses for our R&D facilities in 2023 were $47.9 million, an increase of $4.2 million or 9.5% compared to $43.7 million in 2022. Our RNG facilities reported reduced total segment utility expenses of approximately $2.1 million in 2023 as compared to 2022. Other RNG operating and maintenance expenses increased approximately $6.3 million in 2023 compared to 2022 as a result of a facility preventative maintenance repairs, wellfield operational enhancements and non-cost capitalizable costs. Non-capitalizable costs were reported at our Pecos facility in connection with the digestion of capacity increase project.

2023 年我們研發設施的營運和維護費用為 4,790 萬美元，比 2022 年的 4,370 萬美元增加了 420 萬美元，即 9.5%。我們的 RNG 設施報告稱，與 2022 年相比，2023 年部門公用事業總支出減少了約 210 萬美元。與 2022 年相比，2023 年其他 RNG 營運和維護費用增加了約 630 萬美元，原因是設施預防性維護維修、井場營運增強和非成本資本化成本。我們的佩科斯工廠報告了與消化產能增加項目有關的不可資本化成本。

Our profitability is highly dependent on the market price of environmental attributes, including the market price for rents as we self market a significant portion of our rents, a decision not to commit to transfer available rents during a period will impact our revenue and operating profit, we strategically determined not to transfer a significant amount of the D3 RINs generated and available for transfer during the first quarter of 2024. Based on our internal expectations related to the price of D. three rents.

我們的獲利能力高度依賴環境屬性的市場價格，包括租金的市場價格，因為我們自行行銷很大一部分租金，決定在一段時間內不承諾轉讓可用租金將影響我們的收入和營業利潤，我們策略性地決定在2024 年第一季不轉移大量產生且可轉移的D3 RIN。基於我們對D.三層租金價格的內部預期。

As a result, we have approximately 2.9 million RINs remaining in inventory for 2020 from 2023 gas production of approximately 7.3 million RINS in inventory from 2024 gas production. As of this call, the average price of the D3 RINs through the end of February was approximately $3.06. We produced approximately 194,000 megawatt hours in renewable electricity during 2023, an increase of approximately 4,000 megawatt hours or 2.1% compared to 190,000 megawatt hours in 2022. Our security facility produced 5,000 megawatt hours more in 2023 compared to 2022 as a result of the prior period.

因此，我們在 2020 年的庫存中剩餘 2023 年天然氣產量的約 290 萬個 RIN，在 2024 年天然氣產量的庫存中剩餘約 730 萬個 RIN。截至本次電話會議，截至 2 月底 D3 RIN 的平均價格約為 3.06 美元。 2023 年，我們生產了約 194,000 兆瓦時的再生電力，與 2022 年的 190,000 兆瓦時相比，增加了約 4,000 兆瓦時，即 2.1%。與上一時期相比，我們的安全設施 2023 年發電量比 2022 年增加了 5,000 兆瓦時。

Engine revenues from renewable electricity facilities in 2023 were $18.4 million, an increase of $1.2 million or 7.4% compared to $17.2 million in 2022. The increase is primarily driven by the timing of generation and monetization of REX and PPA pricing step-ups at our apartment facility.

2023 年再生電力設施的引擎收入為 1,840 萬美元，比 2022 年的 1,720 萬美元增加 120 萬美元，成長 7.4%。這一增長主要是由我們公寓設施的 REX 和 PPA 定價上漲的生成時間和貨幣化推動的。

Our renewable electricity generation, operating and maintenance expenses in 2023 were $11.7 million, a decrease of $1.3 million or 10.2% compared to $13.1 million in 2022. The decrease is primarily due to timing of scheduled preventative maintenance intervals at our apartment facility.

2023 年我們的再生能源發電、營運和維護費用為 1,170 萬美元，比 2022 年的 1,310 萬美元減少 130 萬美元，即 10.2%。減少的主要原因是我們公寓設施的預定預防性維護間隔時間。

During 2023, we recorded impairments of $0.9 million, a decrease of $4.0 million or 81.4% compared to $4.9 million in 2022. In 2023, we recorded impairments of approximately $0.8 million for specifically identified RNG machinery and feedstock processing equipment that were no longer an operational use as well as $0.1 million in obsolete renewable electricity generation critical spares as to the remaining long-life asset groups we concluded based on our annual cash flow assessment conducted for monitoring potential indicators of impairment in 2023 that the cash flows to be generated are significantly in excess of their carrying values of our operating sites due primarily to the length of the underlying gas rights agreements, and we did not record any other impairments related to our cash flows assessment. This compares to a 2022 impairment of $2.1 million for a renewable electric generation site where into future forecast, cash flows did not exceed the carrying value of the sites, long-lived assets and other 2022, specifically identified impairments totaling approximately $2.5 million.

2023 年，我們記錄了 90 萬美元的減值，與 2022 年的 490 萬美元相比，減少了 400 萬美元，即 81.4%。2023 年，我們對不再用於營運用途的專門確定的RNG 機械和原料加工設備記錄了約80 萬美元的減值，以及我們根據我們得出的剩餘長壽命資產組的記錄，對過時的可再生能源發電關鍵備件記錄了約80 萬美元的減損。在我們為監測2023 年潛在減損指標而進行的年度現金流量評估中，我們發現，主要由於相關天然氣權協議的期限較長，將產生的現金流量大大超過了我們營運場地的帳面價值，而且我們沒有記錄與我們的現金流量評估相關的任何其他減損。相較之下，再生能源發電廠2022 年的減損為210 萬美元，在未來預測中，現金流量不會超過該站點、長期資產和其他2022 年具體確定的減損總額約為250 萬美元的帳面價值。

Operating profit in 2023 was $23.6 million, a decrease of $21.0 million or 47% compared to $44.6 million in 2022. RNG operating profit for 2023 was $59.3 million, a decrease of $35.1 million or 37.2% compared to $94.4 million in 2022. Renewable electricity generation operating loss for 2023 was $0.6 million, a decrease of $6.4 million or 91.5% compared to $7 million in 2022.

2023 年營業利潤為 2,360 萬美元，比 2022 年的 4,460 萬美元減少 2,100 萬美元，即 47%。RNG 2023 年營業利潤為 5,930 萬美元，比 2022 年的 9,440 萬美元減少 3,510 萬美元，降幅為 37.2%。2023 年再生能源發電營運虧損為 60 萬美元，比 2022 年的 700 萬美元減少 640 萬美元，成長 91.5%。

Turning to the balance sheet. In December 2023 -- Turning to the balance sheet. In December 2023, $66.0 million was outstanding under our term loan. As of December 31st, 2023, the Company's capacity available for borrowing under the revolving credit facility was $117.5 million. During 2023, we generated $41.1 million of cash from operating activities, a 49.4% decrease from the prior year ended December 31, 2022, to $81.8 million.

轉向資產負債表。2023 年 12 月－轉向資產負債表。2023 年 12 月，我們的定期貸款尚未償還 6,600 萬美元。截至 2023 年 12 月 31 日，公司循環信貸額度下的可用借款能力為 1.175 億美元。2023年，我們從經營活動中產生了4,110萬美元的現金，比截至2022年12月31日的上一年減少了49.4%，至8,180萬美元。

In December 2023, we entered into the Fourth Amended and Restated loan agreement and secured promissory notes. The M. and K. amendment I and between Monfalcone Montauk Holdings Limited, amending and restating in its entirety, the third loan agreement and secured promissory notes as amended. The balance of the loan remained unchanged at approximately $10 million. However, the amendment extended the maturity date to December 31st, 2033, in terms of the amendment are otherwise substantially similar to the original loan agreement.

2023 年 12 月，我們簽訂了第四次修訂和重述貸款協議並提供了擔保本票。M. 和 K. 修正案 I 以及 Monfalcone Montauk Holdings Limited 之間的修正案，對第三份貸款協議和經修訂的有擔保本票進行了整體修改和重述。貸款餘額維持在約1000萬美元不變。不過，修訂將到期日延長至2033年12月31日，修訂條款在其他方面與原貸款協議基本相似。

As previous as previously disclosed, we entered into the M&A loan agreement in accordance with our obligations set forth in a transaction implementation agreement entered into by and among MNK. and the other party thereto in connection with our 2021 initial public. Based on our estimate of the present value of our PGO. earn-out obligation, we reported an increase of approximately $1.3 million to the earn-out liability during 2023, an increase of $0.1 million or 12.8% compared to $1.1 million increase in 2022.

如前所述，我們根據 MNK 之間簽訂的交易實施協議中規定的義務簽訂了併購貸款協議。以及與我們 2021 年首次公開相關的另一方。基於我們對 PGO 現值的估計。就獲利義務而言，我們報告 2023 年獲利負債增加了約 130 萬美元，與 2022 年的 110 萬美元增加相比，增加了 10 萬美元，即 12.8%。

This increase was reported through our RNG segment royalty expense. For 2023, our capital expenditures were $63.1 million, of which $18.6 million, $13.7 million, and $13.1 million were related to the ongoing development of Montauk ag renewables peaker facility digesting capacity increase in the second Apex facility perspective.

這一增長是透過我們的 RNG 部門特許權費用報告的。2023 年，我們的資本支出為6,310 萬美元，其中1,860 萬美元、1,370 萬美元和1,310 萬美元與蒙托克股份公司再生能源高峰設施的持續開發有關，以消化第二個Apex 設施的能力增加。

As of December 31st, 2023, we had cash and cash equivalents of approximately $73.8 million. Adjusted EBITDA for 2023 was $46.5 million, a decrease of $24.0 million or 34.0% compared to adjusted EBITDA of $70.5 million for 2022. Ebitda for 2023 was $45.3 million, a decrease of $20.4 million or 31.1% compared to EBITDA of $65.7 million for 2022.

截至 2023 年 12 月 31 日，我們擁有現金及現金等價物約 7,380 萬美元。2023 年調整後 EBITDA 為 4,650 萬美元，與 2022 年調整後 EBITDA 7,050 萬美元相比，減少 2,400 萬美元，即 34.0%。2023 年的 EBITDA 為 4,530 萬美元，比 2022 年的 EBITDA 6,570 萬美元減少了 2,040 萬美元，即 31.1%。

Net income for 2023 decreased $20.3 million or 57.7% compared to net income for 2022. The decrease was primarily driven by price driven reductions to revenues of approximately $30.7 million that were offset through our tiered royalty structure which reduced our royalty expense in 2023 by approximately $9.3 million, leading to our $20.9 million reduction in 2023 operating income.

與 2022 年淨利相比，2023 年淨利減少 2,030 萬美元，即 57.7%。這一下降主要是由於價格驅動的收入減少了約3070 萬美元，這一減少通過我們的分級特許權使用費結構得到了抵消，該結構使我們2023 年的特許權使用費減少了約930 萬美元，導致2023 年營業收入減少了2,090 萬美元。

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

這樣，我現在將把電話轉回給肖恩。

Thank you, Kevin. In closing and though, we don't provide guidance as to our internal expectations on the market price of environmental attributes, including market price of D3 rents, we would like to provide our full year 2024 outlook. For 2024, we expect our RNG production volumes to range between 5.8 million and 6.1 million MMBTUs with corresponding RNG revenues to range between $195 million and $215 million. We expect our 2024 renewable electricity production volumes to range between 190,000 and 200,000 megawatt hours with corresponding renewable electricity revenues to range between $18 million and $19 million.

謝謝你，凱文。最後，儘管我們沒有就我們對環境屬性市場價格（包括 D3 租金的市場價格）的內部預期提供指導，但我們希望提供 2024 年全年展望。到 2024 年，我們預計我們的 RNG 產量將在 580 萬至 610 萬個 MMBTU 之間，相應的 RNG 收入將在 1.95 億美元至 2.15 億美元之間。我們預計 2024 年再生能源發電量將在 19 萬至 20 萬美元之間，相應的再生電力收入將在 1,800 萬至 1,900 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) [Samuel Jiang], UBS.

（操作員指令）[Samuel Jiang]，瑞銀。

I think you answered my question also for Slide 8 in the deck that was super helpful. I was wondering, do you have a long-term outlook regarding due to increasing LCFS pricing? Or how do you see potential COVID-19 continues?

我想你也回答了我關於幻燈片 8 的問題，這非常有幫助。我想知道，您對 LCFS 定價上漲有長期前景嗎？或者您如何看待潛在的 COVID-19 持續發展？

Excellent question. As we often times say, on these calls properties, but give guidance or our views on what the forward prices are for environmental attributes, particularly the three year ends. We do take note, however, of the three year guidance that has been provided by the EPA representing 30% increases in the demand for those attributes. And we do acknowledge based on available data, it is on the EPA's side for the renewable fuel standard, the relative monthly generation statistics, which do suggest a we're covering shortage of the generation of those attributes related to the run rate that would be more indicative of the demand that you will have for those three year RVO starting with 2024.

很好的問題。正如我們經常說的那樣，在這些電話屬性上，但要對環境屬性的遠期價格（特別是三年結束時的價格）給出指導或我們的看法。然而，我們確實注意到 EPA 提供的三年指導表明對這些屬性的需求增加了 30%。我們確實承認，根據現有數據，美國環保署支持可再生燃料標準，相對每月發電統計數據，這確實表明我們正在涵蓋與運行率相關的那些屬性的發電量短缺，這將是更能說明您對從2024 年開始的三年RVO 的需求。

Matthew Blair, Tudor, Pickering, Holt.

馬修布萊爾、都鐸、皮克林、霍爾特。

Thank you and good, good afternoon. I'm hoping you could talk a little bit more about the Q4 production if I'm doing the math correctly, it looks like Q4 RNG production was actually down a little bit from Q3, which I remember was impacted by some weather issues. So did those weather issues reoccur in Q4? And then what is your outlook for Q1? Would you expect things to bounce back?

謝謝你，下午好。如果我計算正確的話，我希望你能多談談第四季度的產量，看起來第四季度 RNG 的產量實際上比第三季度下降了一點，我記得第三季度受到了一些天氣問題的影響。那麼這些天氣問題在第四季再次出現了嗎？那麼您對第一季的展望是什麼？您預計事情會反彈嗎？

Thank you, Matthew. In regards to providing quarterly guidance, we continue to just provide annual guidance for which our guidance ranges are between 5.8 million and 6.1 million MMBTU in regards to the fourth quarter, weather contributed, but we also had some well of well, the host well field quality issues primarily at our large site in Cincinnati, Ohio, which impacted our expectations as we closed out the fourth quarter.

謝謝你，馬修。在提供季度指導方面，我們繼續只提供年度指導，第四季度我們的指導範圍在 580 萬至 610 萬 MMBTU 之間，天氣因素有所影響，但我們也有一些井，主井油田品質問題主要發生在我們位於俄亥俄州辛辛那提的大型工廠，這影響了我們第四季結束時的預期。

In regards to ongoing weather anomalies. I would similar to Sean, not wanting to predict the future rent prices. We tried to manage our expectations through weather. But as of right now, our existing guidance ranges of between 5.8 million and 6.1 million Mmbtu are contemplating all of our exit good contributions from our RNG portfolio across the year.

關於持續的天氣異常。我會像肖恩一樣，不想預測未來的租金價格。我們試圖透過天氣來管理我們的期望。但截至目前，我們現有的指導範圍在 580 萬至 610 萬 Mmbtu 之間，正在考慮我們全年 RNG 投資組合中的所有退出良好貢獻。

Craig Shere, Tuohy Brothers.

克雷格·謝爾，圖伊兄弟。

Hi, thanks. Thanks for the states and taking the question. Any thoughts specifically about the EBITDA margin in '24 and more generally, about the EBITDA ramp that might be expected through 27 as the North Carolina swine waste project is completed. Your Pico expansion has brought online yet your Apex expansion and you also have the our Blue Granite and government projects.

你好謝謝。感謝各州的提問。任何關於 24 年 EBITDA 利潤率的具體想法，以及更廣泛地說，隨著北卡羅來納州豬糞項目的完成，預計到 27 年 EBITDA 增長的任何想法。您的 Pico 擴充已上線，但您的 Apex 擴充已上線，您還擁有我們的 Blue Granite 和政府專案。

Thanks, Craig. Yes, we do anticipate our EBITDA increase in 2024 to follow, along with our increase of expect from our increase in expectations of volumes on rent price, notwithstanding up based on our internal assumptions in regards to the ramp in 2025, specifically related to our North Carolina operation. Based on our current expectations, we look to fill around half of our expected output under the Duke swine rec agreement with revenue starting around the second half of 2025 thereafter, the EBITDA contributions from a more recent project that we announced, the European energy from a volumetric and price standpoint, I think it would be fair to say from a top line revenue contribution from European energy. The pricing of that agreement is generally in line with some expected prices from a Tom carbon sequestration tax credit view. However, I do want to note that is not a tax credit play for us. It is a revenue driver on increasing and diversifying our top line revenues whenever we start to deliver our volumetric CO2 to European energy.

謝謝，克雷格。是的，我們確實預計2024 年EBITDA 會隨之增加，同時我們對租金價格預期的增加也會增加預期，儘管這是基於我們對2025 年漲幅的內部假設，特別是與我們的北方地區相關的假設。卡羅萊納行動。根據我們目前的預期，我們預計將在 2025 年下半年左右開始實現杜克養豬協議下預期產量的一半左右，其中 EBITDA 貢獻來自我們最近宣布的一個項目，即歐洲能源公司從體積和價格的角度來看，我認為從歐洲能源的收入貢獻來看是公平的。該協議的定價總體上符合湯姆碳封存稅收抵免觀點的一些預期價格。然而，我確實想指出，這對我們來說並不是稅收抵免。每當我們開始向歐洲能源輸送大量二氧化碳時，它就是我們收入成長和多樣化的收入驅動力。

Matthew Blair, TPH.

馬修·布萊爾，TPH。

Hey, thanks for taking my follow-up. I was going to ask about your 2024 spending plans some, but I'm actually seeing it in the K here, it looks like it's approximately $150 million to $167 million. Is that correct? And could you talk about what's driving the increase year over year?

嘿，謝謝你接受我的跟進。我本來想問一下你們2024年的支出計劃，但我實際上是在K中看到的，看起來大約是1.5億到1.67億美元。那是對的嗎？您能否談談是什麼推動了這逐年成長？

Yes, that is accurate, Matthew, thank you. More poignant Lee, our annual maintenance capital disaggregated, we expect that's going to be between $14 million and $17 million. Then our development project capital ranges between $135 million and $150 million. That's largely driven by our two larger products projects, the RNG build on the Frank, our arm and landfill in California, as well as our continued our development of the up to eight processing reactor lines at our North Carolina location.

是的，這是準確的，馬修，謝謝你。更令人心酸的是，我們的年度維護資本按分類計算，預計將在 1400 萬美元到 1700 萬美元之間。那麼我們的開發案資本就在 1.35 億美元到 1.5 億美元之間。這主要是由我們的兩個較大的產品項目推動的，即在弗蘭克、我們在加利福尼亞州的手臂和垃圾掩埋場上建造的RNG，以及我們在北卡羅來納州繼續開發多達8 條加工反應器生產線。

Thank you. I'm showing no, I'm showing no further questions in the queue. I would now like to turn the call back over to Sean for closing remarks.

謝謝。我顯示“否”，我在隊列中沒有顯示任何其他問題。我現在想將電話轉回給肖恩，讓他發表結束語。

Thank you. And thank you for taking the time to join us on the conference call today. We look forward to speaking with you on our 2024 first quarter conference call.

謝謝。感謝您今天抽空參加我們的電話會議。我們期待在 2024 年第一季電話會議上與您交談。

Ladies and gentlemen, this concludes today's conference call. Thank you for your participation. You may now disconnect.

女士們、先生們，今天的電話會議到此結束。感謝您的參與。您現在可以斷開連線。