Montauk Renewables Inc (MNTK) 2024 Q1 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 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 John Ciroli 先生，因為他在這次電話會議上對盈利材料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的警告。約翰，請繼續。

Thank you, and good afternoon, everyone. Welcome to Montauk Renewables earnings conference call to review the first quarter 2024 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 development; and Kevin Van Asdalan, Chief Financial Officer, to discuss our first quarter 2024 financial and operating results.

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 2024 年第一季的財務和營運績效及發展。我是蒙托克首席法律官兼秘書約翰·西羅利 (John Ciroli)。今天與我一起討論蒙托克總裁兼執行長 Sean McClain 的業務發展；和財務長 Kevin Van Asdalan 討論我們 2024 年第一季的財務和營運表現。

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's SEC filing.

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。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 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透過排除我們認為不能反映我們核心經營績效的項目，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。

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 first quarter 2024 earnings press release and Form 10 Q issued and filed this afternoon, which are available on our website at ir.montaukrenewables.com. After our remarks, we'll open the call to questions. We ask that you please keep to one question to accommodate as many questions as possible. And with that, I'll turn the call over to Sean.

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，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2024 年第一季度收益新聞稿和10 Q表格，這些資訊可在我們的網站為 ir.montaukrenewables.com。發言結束後，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。然後，我會將電話轉給肖恩。

Thank you, John. Good day, everyone, and thank you for joining our call. To begin with development, my comments will be focused on updates regarding our Pico's dairy digestion capacity increase and our Turkey North Carolina, Montauk ag renewables, swine waste energy project, both of which were also discussed during our 2023 year end call a short two months ago. As we ended 2023, we had commissioned the first of our two new digesters in our new expanded reception pit at our Pico's dairy [cluster] projects.

謝謝你，約翰。大家好，感謝您加入我們的通話。首先，我的評論將集中在有關我們Pico 乳製品消化能力增加和我們土耳其北卡羅來納州蒙托克股份公司可再生能源、豬廢物能源項目的最新動態，這兩個項目也在我們的2023 年年終電話會議上進行了短短兩個月的討論前。截至 2023 年底，我們已在筆克乳製品 [集群] 計畫新擴建的接收坑中調試了兩個新沼氣池中的第一個。

During the first quarter of 2024 we completed the commissioning of the second and final digester. With the digestion expansion project now fully commissioned we expect a continued ramp-up in production through the second quarter of 2024. The Pico's expansion project increased digestion capacity by approximately 60% to better match the unchanged processing capacity of the project's RNG facility. The new digesting capacity is expected to be fully utilized once the dairy provides our contractual third and final increase in feedstock volumes in 2025. In the first quarter of 2024 our RNG production at the Pico's facility increased approximately 39% compared to the first quarter of 2023.

2024 年第一季度，我們完成了第二個也是最後一個消化器的調試。隨著消化擴建計畫現已全面投產，我們預計到 2024 年第二季產量將持續增加。Pico 的擴建項目將消化能力提高了約 60%，以更好地匹配該項目 RNG 設施不變的處理能力。一旦乳品廠在 2025 年提供我們合約中第三次也是最後一次增加的原料量，預計新的消化能力將得到充分利用。2024 年第一季度，我們 Pico 工廠的 RNG 產量比 2023 年第一季成長了約 39%。

I will now provide an update regarding our North Carolina swine to waste energy developments Montauk ag renewables. We have substantially completed the engineering and are preparing to initiate the commissioning activities of our first reactor processing line at our Turkey, North Carolina, location. We expect commissioning to continue through the end of June 2024. Our development progress has positioned us to be able to enter into a full engineering, procurement, and construction contract related to the first phase full build-out to satisfy our Duke record grid.

我現在將提供有關北卡羅來納州生豬廢物能源開發 Montauk ag 可再生能源的最新資訊。我們已經基本完成了工程設計，並準備啟動我們位於北卡羅來納州土耳其工廠的第一條反應器加工線的調試活動。我們預計調試將持續到 2024 年 6 月底。我們的開發進度使我們能夠簽訂與第一階段全面擴建相關的完整工程、採購和施工合同，以滿足杜克大學創紀錄的電網要求。

We have also placed orders for various significant components, many of which have long lead times related to the construction of the additional reactors. We expect this new EPC contract to assist us in meeting our rolling commissioning schedule through late 2025. To support the first phase rolling commissioning schedule and ultimately [do] record [graphics], we continue to pursue feedstock agreements. During the first quarter of 2024 we have contracted with a pharming group in our late stage discussions with multiple others.

我們還訂購了各種重要零件，其中許多零件與額外反應器的建造相關的交貨時間很長。我們預計這份新的 EPC 合約將幫助我們在 2025 年底前完成滾動調試計劃。為了支援第一階段滾動調試計劃並最終[做]記錄[圖形]，我們繼續尋求原料協議。在 2024 年第一季度，我們在與其他多個公司進行後期討論時與一家製藥集團簽訂了合約。

We continue to thoughtfully bring partners under agreement targeting approximately 120,000 hogs bases to ultimately satisfy our Duke record agreement. A critical part of our development progress in North Carolina includes the continued optimization of our feedstock collection equipment and methodology. Our collection process includes installing equipment on our feedstock supplier partners, which are under long-term agreements as well as processes and equipment for processing waste through multiple phases of solids concentration on both the farm site as well as our centralized processing facility at Turkey, North Carolina.

我們將繼續深思熟慮地與合作夥伴簽訂針對約 12 萬頭生豬基地的協議，以最終滿足我們與杜克大學創紀錄的協議。我們在北卡羅來納州發展進展的關鍵部分包括持續優化我們的原料收集設備和方法。我們的收集流程包括在我們的原料供應商合作夥伴上安裝設備（這些合作夥伴簽訂了長期協議），以及透過在農場現場以及我們位於土耳其北部的集中處理設施進行多階段固體濃縮來處理廢物的流程和設備。

We continue to progress with an amendment to the new renewable energy facility, the (inaudible). Our project received late 2023 that can optimize the generation of REX. We expect a decision on this amendment in 2024, which is a critical path item in the timing of the utility infrastructure design, another balance of plant componentry at our Turkey, North Carolina facility. As discussed in our 2023 year-end results call in March 2024, we reached an agreement with one of our landfill owes to exit our gas rights in advance of their expiration impacting one of our smaller renewable electric generation operating facilities.

我們繼續對新的可再生能源設施的修正案取得進展，（聽不清楚）。我們的專案於 2023 年底收到，可以優化 REX 的生成。我們預計將於 2024 年就這項修正案做出決定，這是公用事業基礎設施設計時間的關鍵路徑項目，也是我們土耳其、北卡羅來納州工廠的工廠組件的另一個平衡。正如我們在2024 年3 月的2023 年年終業績電話會議中所討論的那樣，我們與我們的一個垃圾掩埋場達成協議，在天然氣權利到期之前退出我們的天然氣權利，這將影響我們的一個較小的再生能源發電營運設施。

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, the agreed consideration of proceeds of $1 million being well in excess of the carrying value of the project and the offer to extend our gas rates at two of our existing RNG operating facilities that has proceeded coastal plains for an additional five years each.

退出該設施的戰略決策受到以下因素的影響：上述市場購電協議將於 2024 年中期到期、退役資產清除或場地恢復義務取消、商定的 100 萬美元收益對價遠超該設施的賬面價值。項目以及延長我們兩個現有RNG 營運設施天然氣費率的提議，這些設施已在沿海平原各延長五年。

Through the contractual effective date of this agreement, though it is October first, 2024, in March 2024, we elected to cease operations at this facility as the electrical utility provider is performing upgrades, which would require us to invest additional capital. This decision is expected to have a positive effect on 2024 results due to a projected monthly loss on operations following the expiration of the project's power purchase agreement.

截至本協議的合約生效日期，雖然是 2024 年 10 月 1 日，但在 2024 年 3 月，我們選擇停止該設施的運營，因為電力供應商正在進行升級，這將需要我們投入額外的資本。由於專案購電協議到期後預計每月營運將出現虧損，預計這項決定將對 2024 年業績產生正面影響。

Finally, I'd like to highlight and outline what we view to be the strong underlying fundamentals of the Montauk, particularly in light of the share price volatility expressed experienced during 2024. I will not, however, comment on the stock price or its trading volumes. Nearly all of my talks portfolio of 14 operating projects nationwide are hosted by large and growing host businesses. Our integrated relationship approach with these host businesses helps us strategically to continue to secure recurring renewals of our gas rates at these facilities.

最後，我想強調並概述我們認為蒙托克強勁的基本面，特別是考慮到 2024 年經歷的股價波動。不過，我不會評論股價或其交易量。我在全國範圍內 14 個營運項目中幾乎所有的演講都是由大型且不斷增長的主辦企業主辦的。我們與這些東道國企業的綜合關係方法有助於我們從戰略上繼續確保這些設施的天然氣費率定期更新。

The company is winning new competitive project opportunities and is invited to participate in a diverse selection of new opportunities. We are focused on diversifying our comprehensive business model, including the feedstocks we process, the commodities we produce, the federal and state attributes we generate, the method by which we monetize our commodities and attributes, and the way in which we acquire our project feedstock requirements.

該公司正在贏得新的競爭性專案機會，並受邀參與各種新機會的選擇。我們專注於使我們的綜合業務模式多樣化，包括我們加工的原料、我們生產的商品、我們生成的聯邦和州屬性、我們將商品和屬性貨幣化的方法以及我們獲取項目原料的方式要求。

We have a demonstrated history of successful project execution and remain intently focused on attractive growth opportunities. Specifically, we have announced a series of committed development projects that are expected to increase our production capacity by 6,900 MMBTUs a day, 2.5 million MMBTUs annually and additional development projects that are expected to advance the benefit of our existing facilities through the monetization of biogenic carbon dioxide and further diversify our feedstock processing to include waste from industrialized, swine and [agriculture].

我們擁有成功執行專案的歷史，並始終專注於有吸引力的成長機會。具體來說，我們已經宣布了一系列承諾的開發項目，預計將我們的產能提高 6,900 MMBTU 每天，每年 250 萬 MMBTU，以及其他開發項目，預計將透過生物碳貨幣化提高我們現有設施的效益二氧化碳，並進一步使我們的原料加工多樣化，包括來自工業化、養豬和[農業]。

On an annual basis, we have been net income and operating cash flow positive since 2022. We maintain the financial discipline that provides us the opportunity to patiently enhance our profit from the sale of our rent attributes by placing them directly with large RFS obligated parties and synchronizing those transactions to the purchasing cadence of those large obligated parties.

自 2022 年以來，我們的年度淨利潤和經營現金流一直為正。我們維持財務紀律，這為我們提供了機會，透過將租賃屬性直接與大型RFS 義務方進行交易，並將這些交易與這些大型義務方的購買節奏同步，耐心地提高我們從出售租金屬性中獲得的利潤。

We ended the first quarter of 2024 with more than $60 million in cash on our balance sheet and undrawn revolving credit facility with $117.5 million of availability and a credit syndication to which we can approach the utilization of [accordion] finance options and which is separately project finance development. We remain fully integrated, operate and maintain examples of multiple commercially viable biomethane processing technologies and continue to build upon for decades of experience in optimizing the collection and beneficial use of processing of feedstocks through nationwide variability of host business practices, climate impacts and feedstock constituents.

截至2024 年第一季度，我們的資產負債表上有超過6000 萬美元的現金，未提取的循環信貸額度為1.175 億美元，還有一個信貸銀團，我們可以利用[手風琴]融資選項，這是單獨的專案金融發展。我們仍然完全整合、運營和維護多種商業上可行的生物甲烷加工技術的實例，並繼續利用數十年的經驗，透過全國範圍內東道主商業實踐、氣候影響和原料成分的變化來優化原料的收集和有益利用加工。

Montauk's focus has been and continues to be on maximizing long-term shareholder value. We continue to believe our development strategy supports that focus. Lastly, regarding the RFS, the EPA has set the RVO at [9 million 90] D3 RINs for 2024, implying a monthly D3 generation RIN rate higher than what the industry has achieved to date through 2024. We also note that the EPA has announced that it will not use waiver authority for the 2024 RVO. We believe those factors can support strong 2024 price levels for [instance]. And with that, I will turn the call over to Ken.

蒙托克的重點一直是並將繼續放在最大化長期股東價值。我們仍然相信我們的發展策略支持這一重點。最後，關於 RFS，EPA 將 2024 年的 RVO 設定為 [900 萬 90] D3 RIN，這意味著每月 D3 代 RIN 率高於該行業截至 2024 年迄今所達到的水平。我們也注意到，EPA 已宣布不會對 2024 年 RVO 使用豁免權。我們相信這些因素可以支撐 2024 年強勁的價格水平[實例]。然後，我會將電話轉給肯。

Thank you, Sean, and I will be discussing our first quarter 2024 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. Our profitability is highly dependent on the market price of environmental attributes, including the market price of rents. As we self-market a significant portion of our rent, a strategic decision not to commit to transfer available rents during a period will impact our revenue and operating profit.

謝謝 Sean，我和我將討論我們 2024 年第一季的財務和營運表現。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了解更多資訊。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。由於我們自行行銷很大一部分租金，因此在一段時間內不承諾轉讓可用租金的策略決策將影響我們的收入和營業利潤。

We strategically determined not to transfer all available D3 RINs generated and available for transfer during the first quarter of 2024 based on our internal expectations related to the price of D3 RINs. As a result, we have approximately 3.4 million RINs remaining in inventory from 2024 first quarter gas production. We did sell approximately 3.9 million RINs, representing all RINs from our 2023 gas production. We have not entered into commitments to transfer RINs in inventory or RINs expected to be generated from forecasted future production.

根據我們對 D3 RIN 價格的內部預期，我們策略性地決定不轉讓 2024 年第一季產生的和可轉讓的所有可用 D3 RIN。因此，從 2024 年第一季天然氣產量來看，我們的庫存剩餘約 340 萬個 RIN。我們確實售出了約 390 萬個 RIN，相當於我們 2023 年天然氣生產的所有 RIN。我們尚未承諾轉移庫存中的 RIN 或預計從預測的未來生產中產生的 RIN。

The average second quarter through the first few days of May, D3 RIN price was approximately $3.28. Total revenues in the first quarter of 2024 were $38.8 million, an increase of $19.6 million or 102.5% compared to $19.2 million in the first quarter of 2023. The primary driver for this increase relates to an increase of 4.9 million RINs sold in the first quarter of 2024 compared to the first quarter of 2023 due to our decision to not sell RINs in the first quarter of 2023 due to our belief that the first quarter of 2023 D3 RIN index volatility was temporary.

第二季到 5 月頭幾天的平均 D3 RIN 價格約為 3.28 美元。 2024 年第一季的總收入為 3,880 萬美元，與 2023 年第一季的 1,920 萬美元相比增加了 1,960 萬美元，增幅為 102.5%。這一成長的主要驅動因素是，與2023 年第一季相比，2024 年第一季銷售的RIN 增加了490 萬個，因為我們決定在2023 年第一季不銷售RIN，因為我們認為第一季度2023 年 D3 RIN 指數波動是暫時的。

Of the 7.9 million sold in the first quarter of 2024 4.0 million related to 2024 RNG production. Also contributing to the increase is an increase in realized RIN pricing during the first quarter of 2024 to $3.25 compared to $2.1 in the first quarter of 2023. Total general and administrative expenses were $9.4 million in the first quarter of 2024, flat compared to $9.5 million in the first quarter of 2023.

在 2024 年第一季售出的 790 萬台銷量中，有 400 萬台與 2024 年 RNG 生產相關。造成這一成長的另一個因素是 2024 年第一季實現的 RIN 定價從 2023 年第一季的 2.1 美元增至 3.25 美元。2024 年第一季的一般和管理費用總額為 940 萬美元，與 2023 年第一季的 950 萬美元持平。

Employee related costs, including stock-based compensation, from $5.7 million in the first quarter of 2024 an increase of $0.7 million or 14.6% compared to $5.0 million in the first quarter of 2023, our corporate insurance premiums increased approximately $0.2 million or 12.2% in the first quarter of 2024 compared to the first quarter of 2023. Our professional fees decreased approximately $1 million or 48.7% compared to the first quarter of 2023.

員工相關成本（包括股票薪酬）從2024 年第一季的570 萬美元增加了70 萬美元，比2023 年第一季的500 萬美元增加了14.6%，我們的企業保險費在2023 年第一季增加了約20 萬美元，即12.2%。與 2023 年第一季相比，我們的專業費用減少了約 100 萬美元，即 48.7%。

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 first quarter of 2024, an increase of less than 0.1 million or 4.4% as compared to 1.4 million during the first quarter of 2023. Our coastal facility produced 38,000 more MMBTU in the first quarter of 2024 compared to the first quarter of 2023 as a result of plant processing equipment improvement and well through an operational enhancements.

談到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。2024 年第一季度，我們生產了 140 萬個 RNG，與 2023 年第一季的 140 萬個相比，增加了不到 10 萬個，即 4.4%。由於工廠加工設備的改進和運作的增強，我們的沿海工廠在 2024 年第一季的產量比 2023 年第一季增加了 38,000 MMBTU。

Our McCarty facility produced 24,000 more MMBTU in the first quarter of 2024 as compared to the first quarter of 2023 as a result of wellfield enhancements are landed by our landfill hosts. Our Madison facility produced 19,000 MMBTU more in the first quarter of 2024 compared to the first quarter of 2023 as a result of a temporary reduction in feedstock inlet during modifications to process equipment in the first quarter of 2023. Our Pico's facility produced 9,000 MMBTU more in the first quarter of 2024 compared to the first quarter of 2023 as a result of commissioning our dairy digestion expansion project.

由於我們的垃圾掩埋場東方對井場進行了改進，我們的麥卡蒂工廠在 2024 年第一季比 2023 年第一季多生產了 24,000 MMBTU。由於 2023 年第一季製程設備改造期間原料入口暫時減少，我們的麥迪遜工廠在 2024 年第一季的產量比 2023 年第一季增加了 19,000 MMBTU。由於乳製品消化擴建計畫的投產，我們的 Pico 工廠在 2024 年第一季的產量比 2023 年第一季增加了 9,000 MMBTU。

Offsetting the improvements with our Rumpke facility, which produced 55,000 MMBTU less in the first quarter of 2024 compared to the first quarter of 2023. As a result of the process equipment failure that occurred during the first quarter of 2024. Revenues from the renewable natural gas segment during the first quarter of 2024 were $34.0 million, an increase of $19.2 million or 129.9% compared to $14.8 million during the first quarter of 2023.

我們的倫普克工廠抵消了這些改進，該工廠 2024 年第一季的產量比 2023 年第一季減少了 55,000 MMBTU。由於 2024 年第一季發生的製程設備故障。2024 年第一季可再生天然氣部門的收入為 3,400 萬美元，與 2023 年第一季的 1,480 萬美元相比增加了 1,920 萬美元，增幅為 129.9%。

Average commodity pricing for natural gas for the first quarter of 2024 was 34.5% lower than the prior year period. During the first quarter of 2024, we self-marketed 7.9 million RINs representing a 4.9 million increase for 167.5% compared to 2.9 million RINs self-marketed during the first quarter of 2023. Average pricing realized when RIN sales during the first quarter of 2024 was $3.25 as compared to $2.1 during the first quarter of 2023, an increase of 61.7%.

2024 年第一季天然氣平均商品價格較去年同期下降 34.5%。2024 年第一季度，我們自銷 790 萬個 RIN，與 2023 年第一季自銷的 290 萬個 RIN 相比，增加了 490 萬個 RIN，增幅為 167.5%。2024 年第一季 RIN 銷售額實現的平均定價為 3.25 美元，而 2023 年第一季為 2.1 美元，成長了 61.7%。

This compares to the average D3 RIN index price for the first quarter of 2024 of $3.12 being approximately 53.7% higher than the average D3 RIN index price for the first quarter of 2023 of $2.3. At March 31, 2024, we had approximately 0.4 million MMBTUs available for RIN generation and had approximately 3.4 million generated and unsold. We had approximately 0.4 million MMBTUs available for RIN generation and had approximately 8.3 million RINs generated and unsold at March 31, 2023.

相比之下，2024 年第一季 D3 RIN 指數平均價格為 3.12 美元，比 2023 年第一季 D3 RIN 指數平均價格 2.3 美元高出約 53.7%。截至 2024 年 3 月 31 日，我們有約 40 萬個 MMBTU 可用於 RIN 生成，並且已生成和未售出約 340 萬個 MMBTU。截至 2023 年 3 月 31 日，我們有約 40 萬個 MMBTU 可用於產生 RIN，並且已產生並未售出約 830 萬個 RIN。

Our operating and maintenance expenses for our RNG facilities during the first quarter of 2024 were $12.1 million an increase of $0.8 million or 7% compared to $11.3 million during the first quarter of 2023. Our RNG facilities reported increased total segment utility expenses of approximately $0.1 million during the first quarter of 2024 as compared to the first quarter of 2023. Other RNG, operating and maintenance expenses increased approximately $0.7 million during the first quarter of 2024 as compared to the first quarter of 2023, primarily as a result of timing related to annual facility preventative measures.

2024 年第一季度，我們的 RNG 設施的營運和維護費用為 1,210 萬美元，與 2023 年第一季的 1,130 萬美元相比，增加了 80 萬美元，即 7%。我們的 RNG 設施報告稱，與 2023 年第一季相比，2024 年第一季的分部公用事業總支出增加了約 10 萬美元。與 2023 年第一季相比，2024 年第一季的其他 RNG、營運和維護費用增加了約 70 萬美元，這主要是由於與年度設施預防措施相關的時間表所致。

We produced approximately 54,000 megawatt hours in renewable electricity during the first quarter of 2024 an increase of approximately 8,000 megawatt hours or 17.4% compared to 46,000 megawatt hours during the first quarter of 2023. Our security facility produced approximately 3,000 megawatt hours more in the first quarter of 2024 compared to the first quarter of 2023 as a result of the completion of prior period [engine] maintenance.

2024 年第一季度，我們生產了約 54,000 兆瓦時的再生電力，與 2023 年第一季的 46,000 兆瓦時相比，增加了約 8,000 兆瓦時，即 17.4%。由於完成了前期[引擎]維護，我們的安全設施在 2024 年第一季的發電量比 2023 年第一季增加了約 3,000 兆瓦時。

Our Bowerman facility produced approximately 3,000 megawatt hours more in the first quarter of 2024 compared to the first quarter of 2023, primarily related to the timing of original equipment manufacturer, preventative and engine mix. Revenues from the renewable electricity facilities during the first quarter of 2024 were $4.8 million, an increase of $0.4 million or 9.8% compared to $4.4 million during the first quarter of 2023. The increase is primarily driven by the increase in volumes.

與 2023 年第一季相比，當我們的鮑爾曼工廠 2024 年第一季的發電量增加了約 3,000 兆瓦時，這主要與原始設備製造商、預防性和引擎組合的時間安排有關。2024 年第一季可再生電力設施的收入為 480 萬美元，與 2023 年第一季的 440 萬美元相比增加了 40 萬美元，即 9.8%。這一增長主要是由銷量的增加所推動的。

Our renewable electricity generation operating and maintenance expenses during the first quarter of 2024 were $2.3 million, a decrease of $0.6 million or 19.9% compared to $2.9 million during the first quarter of 2023. Our Bowerman facility operating and maintenance expenses decreased approximately $0.3 million, which was primarily driven by the timing of annual OEM preventative maintenance expenses. Our security facility operating and maintenance expenses decreased approximately $0.3 million, which was driven by the nonrecurring reversal of our asset retirement obligation liability related to the sale of the site.

2024 年第一季我們的再生能源發電營運和維護費用為 230 萬美元，與 2023 年第一季的 290 萬美元相比減少了 60 萬美元，即 19.9%。我們的鮑爾曼工廠營運和維護費用減少了約 30 萬美元，這主要是由於年度 OEM 預防性維護費用的時間表所致。我們的安全設施營運和維護費用減少了約 30 萬美元，這是由於與出售場地相關的資產報廢義務負債的非經常性沖銷所致。

During the first quarter of 2024, we recorded impairments of $0.5 million, an increase of less than $0.1 million or 17.1% compared to $0.5 million in the first quarter of 2023. Specifically identified impairment losses in the first quarter of 2024 primarily relate to the remaining book value of assets due to our decision to cease operations at the security facility.

2024 年第一季度，我們記錄了 50 萬美元的減值，與 2023 年第一季的 50 萬美元相比，增加了不到 10 萬美元，增幅為 17.1%。2024 年第一季具體確定的減損損失主要與我們決定停止安全設施營運而導致的資產剩餘帳面價值有關。

We also impaired various R&D equipment that was deemed obsolete for current operations. The first quarter of 2023 impairment relates to specifically identified feedstock processing machine components at an R&D site that was not an operational use. We did not record any impairments related to our cash flow assessments.

我們也損壞了各種被認為對於當前營運來說已經過時的研發設備。2023 年第一季的減損與研發地點專門確定的非營運用途的原料加工機器組件有關。我們沒有記錄任何與現金流量評估相關的減損。

Operating income for the first quarter of 2024 was $2.4 million, an increase of $16.5 million or 116.7% compared to an operating loss of $14.2 million for the first quarter of 2023. RNG operating income for the first quarter of 2024 was $11.6 million, an increase of $15.9 million or 370.2% compared to an operating loss of $4.3 million for the first quarter of 2023. Renewable electricity generation operating income for the first quarter of 2024 was $0.4 million, an increase of $0.6 million compared to an operating loss of $0.2 million for the first quarter of 2023.

2024 年第一季的營業收入為 240 萬美元，與 2023 年第一季的營業虧損 1,420 萬美元相比，增加了 1,650 萬美元，增幅為 116.7%。RNG 2024 年第一季營業收入為 1,160 萬美元，與 2023 年第一季營業虧損 430 萬美元相比，增加了 1,590 萬美元，增幅為 370.2%。2024年第一季的再生能源發電營業收入為40萬美元，比2023年第一季的營業虧損20萬美元增加了60萬美元。

Turning to the balance sheet at March 31, 2024, $62.0 million was outstanding under our term loan as of March 31, 2024, the company's capacity available for borrowing under the revolving credit facility remained at $117.5 million. During the first quarter of 2024, we generated $14.3 million of cash from operating activities, 220.7% increase from the prior year fiscal quarter ended March 31, 2023, with cash used in operating activities of $11.8 million.

轉向 2024 年 3 月 31 日的資產負債表，截至 2024 年 3 月 31 日，我們的定期貸款尚未償還 6,200 萬美元，公司在循環信貸安排下的可用借款能力仍為 1.175 億美元。2024 年第一季度，我們從經營活動中產生了 1,430 萬美元的現金，比截至 2023 年 3 月 31 日的上一財季增長了 220.7%，經營活動使用的現金為 1,180 萬美元。

Based on our estimate of the present value of our PTO earn-out obligation, we recorded a decrease of $0.8 million for the liability at March 31, 2024. The decrease was recorded through our RNG segment royalty expense. In the first quarter of 2024 our capital expenditures were approximately $22.0 million, of which $12.0 million, $4.3 million, $1.7 million, $1.5 million and $1.3 million were related to the ongoing development of Montauk ag Renewables, our second test facility, Blue Granite RNG project, our Bowerman RNG project and the Pico digesting capacity increase, respectively.

根據我們對 PTO 獲利義務現值的估計，截至 2024 年 3 月 31 日，我們的負債減少了 80 萬美元。這一減少是透過我們的 RNG 部門特許權費用記錄的。2024 年第一季，我們的資本支出約為2,200 萬美元，其中1,200 萬美元、430 萬美元、170 萬美元、150 萬美元和130 萬美元與蒙托克股份公司再生能源公司（我們的第二個測試設施Blue Granite RNG 計畫）的持續開發有關，我們的Bowerman RNG計畫和Pico消化能力分別增加。

We also acquired approximately 42 acres of property in Turkey, North Carolina, which shares the property line of our existing property that we continued to strategically plan for the Montauk ag renewable development. As of March 31, 2024, we had cash and cash equivalents of approximately $63.3 million. Adjusted EBITDA for the first quarter of 2024 was $9.5 million, an increase of $17.9 million or 212.7% compared to adjusted EBITDA of a negative $8.4 million for the first quarter of 2023. EBITDA for the first quarter of 2024 was $8.9 million, an increase of $17.8 million compared to EBITDA of a negative $9.0 million for the first quarter of 2023.

我們還在北卡羅來納州土耳其收購了約 42 英畝的房地產，該房地產與我們繼續為 Montauk ag 可再生能源開發進行戰略規劃的現有房地產的房地產範圍相同。截至 2024 年 3 月 31 日，我們擁有現金及現金等價物約 6,330 萬美元。2024 年第一季調整後 EBITDA 為 950 萬美元，與 2023 年第一季調整後 EBITDA 負 840 萬美元相比，增加了 1,790 萬美元，即 212.7%。2024 年第一季的 EBITDA 為 890 萬美元，比 2023 年第一季的 EBITDA 負 900 萬美元增加了 1,780 萬美元。

Net income for the first fiscal quarter of 2024 increased $5.6 million or 148.8% compared to net income for the first quarter of 2023. Our income tax expense increased approximately $12.5 million or 103.4% for the first quarter of 2024 as compared to the first quarter of 2023. The difference in effective tax rates between the 2024 first quarter and the 2023 first quarter primarily relate to the increase in pretax income for the first quarter of 2024 as compared to the first quarter of 2023.

2024 年第一財季的淨利潤比 2023 年第一季的淨利潤增加了 560 萬美元，增幅為 148.8%。與 2023 年第一季相比，2024 年第一季我們的所得稅費用增加了約 1,250 萬美元，即 103.4%。2024年第一季與2023年第一季實際稅率的差異主要與2024年第一季稅前收入較2023年第一季增加有關。

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, and though, we don't provide guidance as to our internal expectations on the market price of environmental attributes, including the market price of D3 RINs, we are reaffirming our full year 2024 outlook provided in March 2024. For 2024, we expect our RNG production volumes to range between 5.8 million and 6.1 million MMBTU with corresponding RMG revenues to range between $195 million to $215 million. We expect our 2024 renewable electricity production volumes to range between 190,000 and 200,000 megawatt hours with corresponding renewable electricity revenue 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 RIN 的市場價格）的內部預期提供指導，但我們重申 2024 年 3 月提供的 2024 年全年展望。到 2024 年，我們預計 RNG 產量將在 580 萬至 610 萬個 MMBTU 之間，相應的 RMG 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) Paul Cheng, Scotiabank.

（操作員指示）Paul Cheng，豐業銀行。

Thank you, gentlemen. Maybe this is for John. I understand that from time to time you would make decision whether you want to sell all of the available RIN or not in the quarter, but from the outside is standing indicator -- or we're trying to understand the process how you go into come about making how much of the RIN you would decide to sell in a particular quarter. Is there any indicator from the outside that we should check? And based on that, we'll be able to have some kind of rule of thumb we can get that. What's that one it may look like?

謝謝你們，先生們。也許這是給約翰的。我知道，您有時會決定是否要在本季度出售所有可用的 RIN，但從外部來看，這是一個長期指標 - 或者我們正在嘗試了解您如何進入的過程關於您決定在特定季度出售多少 RIN。外部有什麼指標值得我們檢視嗎？在此基礎上，我們將能夠制定某種經驗法則。那它可能是什麼樣子的呢？

Thanks, Paul, good question. How we determine the volume of RINs that we sell is as closely as we can tie it to the cadence -- the purchasing cadence of the obligated parties. So rather than timing the market -- and obviously and all sales are subjected to as much analysis as we can place into publicly available information regarding the RFS, regarding waiver credits, regarding the possibility of any adjustments to the plan in general. We focus on the obligated parties as opposed to selling to any midstream intermediaries on a month to month or quarter to quarter basis.

謝謝，保羅，好問題。我們如何確定我們銷售的 RIN 數量，盡可能將其與節奏（義務方的購買節奏）聯繫起來。因此，我們不應該對市場進行計時——顯然，所有銷售都會受到盡可能多的分析，我們可以將這些分析放入有關 RFS、豁免積分、總體計劃任何調整的可能性的公開信息中。我們專注於義務方，而不是按月或按季度向任何中游中介機構出售。

So invariably it results in -- it's an annual program. So it ends up being heavier weighted from the midpoint of the year to the back half of the year. Volumes are typically purchased more thinly, particularly in the first quarter. But that's about all the guidance I can really provide in terms of really what drives those decisions. We tried to play very meaningfully into the RFS program. And the best way to do that is to get the RINs in the hands seamlessly into the obligated parties and have them retired as such.

所以它總是會導致——這是一個年度計劃。因此，從年中到下半年，它的權重最終會更大。購買量通常比較少，特別是在第一季。但這就是我真正能提供的所有關於推動這些決策的指導。我們嘗試在 RFS 計劃中發揮非常有意義的作用。實現這一目標的最佳方法是將手中的 RIN 無縫地交給義務方，並讓它們自行退役。

Samuel Jiang, UBS.

江塞繆爾，瑞銀集團。

Hi. Thanks guys. I know in the last quarter, you had mentioned that the second RNG facility (technical difficulty) in fourth quarter 2024. I guess what caused you guys to push that back to 2025?

你好。多謝你們。我知道在上個季度，您曾提到2024年第四季的第二個RNG設施（技術難度）。我猜是什麼原因導致你們把這個時間延後到 2025 年？

Primarily it was related around the timing of when we can get that site up and operational and just in the fourth quarter. In the fourth quarter, we noted that there were just some permits or components that were taking longer to get on site and operational to decommission than we were anticipating. We still do believe to have that commissioned in the first quarter of 2025. I do want to point out that it was a gas right agreement trigger that would -- pop -- triggered requiring the second facility to meet the capacity needs as the landfill host is bringing waste into the site, even after we expect that site to be commissioned.

主要與我們何時可以讓網站啟動並運行以及在第四季度相關。在第四季度，我們注意到，只有一些許可證或組件到達現場並運行到退役的時間比我們預期的要長。我們仍然相信該項目將在 2025 年第一季投入使用。我確實想指出，這是天然氣權利協議的觸發因素，當垃圾掩埋場東方將廢物帶入該場地時，該協議將觸發要求第二個設施滿足容量需求，即使我們預計該場地將被委託。

We're anticipating some excess capacity as the landfill continues to bring in new ways to the site for us to be able to utilize that full capacity. But mainly it was a combination of permitting and various other componentry related to the actual construction of that second facility that delayed us from commissioning into the first quarter of 2025. We don't anticipate that to materially impact our production volumes for 2024.

我們預計，隨著垃圾掩埋場繼續引入新的方式，使我們能夠充分利用該垃圾掩埋場的容量，將會出現一些過剩的容量。但主要是由於許可證以及與第二座設施的實際建設相關的各種其他因素的綜合作用，導致我們無法將調試推遲到 2025 年第一季。我們預計這不會對我們 2024 年的產量產生重大影響。

Matthew Blair, Tudor, Pickering, Holt and Company.

馬修布萊爾、都鐸、皮克林、霍爾特公司。

Thanks and good afternoon. I was hoping you could share a little bit more about the -- I think the process equipment failure at Rumpke in the first quarter. Has that been fixed? And if not, when would you expect that to be fixed? And what kind of impact might that have had on Q1 and potentially into the Q2 production?

謝謝，下午好。我希望你能分享更多關於第一季倫普克製程設備故障的資訊。問題解決了嗎？如果沒有，您預計什麼時候可以解決這個問題？這可能會對第一季並可能對第二季的生產產生什麼樣的影響？

Yes. Thanks, Matthew. Obviously, we're aware of the environmental collection matters that we had discussed in our fourth quarter at Rumpke as well. We're continuing to work through that. The unexpected process equipment failure was associated with efficiency at certain of our processing equipment, either in compression or some media that we had identified as we were going through the facility in the first quarter.

是的。謝謝，馬修。顯然，我們也意識到我們在倫普克第四季討論過的環境收集問題。我們正在繼續努力解決這個問題。意外的製程設備故障與我們某些處理設備的效率有關，無論是壓縮設備還是我們在第一季檢查該設施時發現的一些介質。

Of those two matters sustainably both of them we expect to be resolved in the second quarter. And as I noted that was a drag on our first quarter result that Rumpke on pulling the overall production period over period down [55,000] or so often when compared to the first quarter of 2023. But again, we expect to have that -- those failures remediated during the second quarter of 2024.

我們預計這兩個問題都將在第二季解決。正如我所指出的，與 2023 年第一季相比，Rumpke 經常將整個時期的總產量拉低 [55,000] 左右，這對我們第一季的業績造成了拖累。但我們再次預計這些故障將在 2024 年第二季得到修正。

Paul Cheng, Scotiabank.

Paul Cheng，豐業銀行。

John, do you have any kind of guidance for the full year OpEx for the RNG and the [OUG]?

約翰，你對 RNG 和[奧格]？

We generally Paul leave our guidance expectation on announcements to production and revenues. Historically, we haven't given guidance towards operating expenses for either segment or G&A, and I'll leave our commentary at that level at this point.

我們通常會對產量和收入的公告留下我們的指導預期。從歷史上看，我們沒有對任何一個部門或一般管理費用的營運費用給出指導，我將在這一點上留下我們的評論。

Matthew Blair, Tudor, Pickering, Holt & Company.

馬修·布萊爾，都鐸·皮克林·霍爾特公司。

Thanks for taking my follow-up. So I think that roughly one-fourth of your current portfolio is on fixed offtake. Getting like a fixed price rather than finance the transportation market and getting the D3 RIN. You mentioned that your growth projects -- I think it was 1.25 million MMBTU in the hopper. So as you continue to grow, do you anticipate keeping that roughly like one-fourth fixed ratio?

感謝您接受我的跟進。因此，我認為您目前投資組合的大約四分之一是固定承購的。採取固定價格，而不是為運輸市場提供資金並獲得 D3 RIN。你提到你的成長項目——我認為漏斗中有 125 萬 MMBTU。那麼，隨著您的不斷增長，您是否預計會保持大約四分之一的固定比率？

Or do you think that you'll move more into the spot market? And then could you also talk about any sort of trends you're seeing on the fixed pricing? Are utilities [paying] a higher amount for RNG given the strength of the D3 RIN market? Thanks.

或者您認為您會更多地進入現貨市場嗎？然後您能否談談您在固定定價方面看到的任何趨勢？鑑於 D3 RIN 市場的實力，公用事業公司是否為 RNG 支付更高的金額？謝謝。

I'm sure, Matthew. For sure, we're continuing to evaluate how we are going to contract the volumes that are coming through our development pipeline as these things are coming online. We have a fairly robust RFP process and we entertain, as we have previously, multiple forms of monetization. We're looking at fixed price opportunities. We're looking at those opportunities in the voluntary market.

我確信，馬修。當然，隨著這些東西上線，我們將繼續評估如何減少透過我們的開發管道產生的數量。我們有一個相當強大的 RFP 流程，而且像以前一樣，我們接受多種形式的貨幣化。我們正在尋找固定價格的機會。我們正在自願市場中尋找這些機會。

We have deployed in the past more margin share type agreements where we take it a base fixed price -- if we don't want to lock a higher percentage of our portfolio and lose the opportunity that the RFS provides. As you're selling those rents directly to the obligated parties you'll put a sharing mechanism in place beyond that fixed price floor has a component of upside.

如果我們不想鎖定更高比例的投資組合併失去 RFS 提供的機會，我們過去部署了更多保證金份額類型協議，其中我們採用基本固定價格。當您將這些租金直接出售給義務方時，您將建立一個共享機制，超出固定價格下限的上限。

All of these things have been in play. We continue to look at opportunities in the European market under the [RED two] directive for some of the volumes, and we're continuing to expand what it is that we are monetizing to allow for that flexibility. So with our development in North Carolina and the ability to take those volumes initially for this first phase under a fixed price, long-term agreement with Duke that will have power and [directs] you are able to allow for is call it the financial patients that is required to make sure that these RINs can be sold under existing structures that allows you to self-market and to do so directly to those obligated parties.

所有這些事情都在發揮作用。我們將繼續根據 [RED 2] 指令尋找歐洲市場中某些銷售的機會，並且我們將繼續擴大我們的貨幣化範圍，以實現這種靈活性。因此，隨著我們在北卡羅來納州的發展，以及能夠以固定價格在第一階段最初獲得這些數量，與杜克大學達成的長期協議將擁有權力並[指示]您能夠允許將其稱為金融患者這是確保這些RIN 可以在現有結構下出售所必需的，該結構允許您進行自我行銷並直接向這些義務方進行行銷。

And then just to tag on there, Matthew, through our RFP process, especially over the last handful of months, we've seen some movement in the voluntary market, and that's one of the tougher price points for us to nail balance. But some movement, but still generally in that, call it $18, $20, $23 or so range plus or minus is what we continue to see.

然後，馬修，透過我們的 RFP 流程，特別是在過去的幾個月裡，我們看到自願市場發生了一些變化，這對我們來說是更難確定平衡的價格點之一。但我們繼續看到一些變動，但總體上仍然是這樣，稱其為 18 美元、20 美元、23 美元左右的正負範圍。

So if it was $18 or $20, call it, six months ago, maybe we've seen some movement up to $20 or $22 within the last six months. But again, it's still basically been around at type of range. We haven't seen anything that is really driving a value from a, call it, plus $3 RIN at this point.

因此，如果六個月前是 18 美元或 20 美元，那麼我們可能會在過去六個月內看到價格上漲到 20 美元或 22 美元。但同樣，它基本上仍然在一定範圍內。目前，我們還沒有看到任何真正推動 a 價值的東西，稱之為，加上 3 美元的 RIN。

Paul Cheng, Scotiabank.

Paul Cheng，豐業銀行。

Hey (technical difficulty) Sean. Do you have a guidance that took away about cadence of the Pico [warrant] increase over the next second quarter? Some (technical difficulty) reached full capacity by 2025?

嘿（技術難度）肖恩。您是否有關於 Pico [認股權證] 在接下來的第二季度增加節奏的指導？到2025年有些（技術難度）達到滿載？

I think your question is in regards to the deployment of our more targeted renewables facilities. So we will have right now to complete the first phase -- first phase, defined as the Duke rec agreement. We will look to target the collection of waste from 120,000 [host] spaces and we will have seven reactor processing lines. The first of which is imminently starting commissioning and will be commissioning through the end of June. And then the cadence of those will be, I'd say, fairly linear between that point, all the way through late 2025.

我認為你的問題是關於我們更有針對性的再生能源設施的部署。因此，我們現在必須完成第一階段——第一階段，定義為杜克娛樂協議。我們的目標是從 120,000 個[主機]空間收集廢物，我們將擁有 7 條反應器處理線。第一個項目即將開始試運行，並將試運行到六月底。然後，我想說，從這一點到 2025 年底，這些的節奏將相當線性。

And thank you. And I'm showing no further questions. I would now like to turn the call back over to Sean for closing remarks.

謝謝你。我沒有再提出任何問題。我現在想將電話轉回給肖恩，讓他發表結束語。

Thank you. Thank you all for taking the time to join us on our conference call today. We look forward to speaking with you when we present our second quarter 2024 results.

謝謝。感謝大家抽空參加我們今天的電話會議。我們期待在公佈 2024 年第二季業績時與您交談。

This concludes today's conference call and thank you for participating. You may now disconnect. Thank you.

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。謝謝。