☒ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 85-3189583 | |||
(State or Other Jurisdiction of Incorporation or Organization) | (IRS Employer Identification No.) | |||
680 Andersen Drive, 5 th Floor Pittsburgh, Pennsylvania | 15220 | |||
(Address of Principal Executive Offices) | (Zip Code) | |||
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Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||
Common Stock, par value $0.01 per share | MNTK | The Nasdaq Capital Market |
Large accelerated filer | ☐ | Accelerated filer | ☐ | |||
Non-accelerated filer | ☒ | Smaller reporting company | ☐ | |||
Emerging growth company | ☒ |
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ITEM 3. | 34 | |||||
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As of March 31, 2021 | As of December 31, 2020 | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 22,643 | $ | 20,992 | ||||
Accounts and other receivables, net | 6,905 | 5,449 | ||||||
Prepaid expenses and other current assets | 1,901 | 6,044 | ||||||
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Total current assets | $ | 31,449 | $ | 32,485 | ||||
Restricted cash - non-current | $ | 572 | $ | 567 | ||||
Property, plant and equipment, net | 182,309 | 187,046 | ||||||
Related party receivable | 7,140 | — | ||||||
Goodwill and intangible assets, net | 13,742 | 14,033 | ||||||
Deferred tax assets | 13,756 | 14,822 | ||||||
Operating lease right-of-use assets | 515 | 586 | ||||||
Other assets | 3,879 | 3,817 | ||||||
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Total assets | $ | 253,362 | $ | 253,356 | ||||
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LIABILITIES AND STOCKHOLDERS’ AND MEMBERS’ EQUITY | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 5,520 | $ | 5,964 | ||||
Accrued liabilities | 9,555 | 11,539 | ||||||
Current portion of lease liability | 284 | 282 | ||||||
Income taxes payable | 75 | — | ||||||
Current portion of derivative instruments | 1,061 | 1,185 | ||||||
Current portion of long-term debt | 9,536 | 9,492 | ||||||
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Total current liabilities | $ | 26,031 | $ | 28,462 | ||||
Long-term debt, less current portion | $ | 53,863 | $ | 56,268 | ||||
Non-current portion of lease liability | 249 | 320 | ||||||
Non-current portion of derivative instruments | 781 | 1,075 | ||||||
Asset retirement obligation | 5,783 | 5,689 | ||||||
Other liabilities | 1,920 | 1,920 | ||||||
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Total liabilities | $ | 88,627 | $ | 93,734 | ||||
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STOCKHOLDERS’ AND MEMBERS’ EQUITY | ||||||||
Members’ equity | $ | — | $ | 159,622 | ||||
Common stock, $0.01 par value, authorized 690,000,000 shares; 142,157,835 shares issued at March 31, 2021; 141,015,213 shares outstanding at March 31, 2021 | 1,410 | — | ||||||
Treasury stock, at cost, 950,214 shares at March 31, 2021 | (10,813 | ) | — | |||||
Additional paid-in capital | 188,403 | — | ||||||
Retained deficit | (14,265 | ) | — | |||||
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Total stockholders’ and members’ equity | $ | 164,735 | $ | 159,622 | ||||
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Total liabilities and stockholders’ and members’ equity | $ | 253,362 | $ | 253,356 | ||||
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As of March 31, 2021 | As of December 31, 2020 | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 22,643 | $ | 20,992 | ||||
Accounts and other receivables, net | 6,905 | 5,449 | ||||||
Prepaid expenses and other current assets | 1,901 | 6,044 | ||||||
Total current assets | $ | 31,449 | $ | 32,485 | ||||
Restricted cash - non-current | $ | 572 | $ | 567 | ||||
Property, plant and equipment, net | 182,309 | 187,046 | ||||||
Related party receivable | 7,140 | — | ||||||
Goodwill and intangible assets, net | 13,742 | 14,033 | ||||||
Deferred tax assets | 13,756 | 14,822 | ||||||
Operating lease right-of-use | 515 | 586 | ||||||
Other assets | 3,879 | 3,817 | ||||||
Total assets | $ | 253,362 | $ | 253,356 | ||||
LIABILITIES AND STOCKHOLDERS’ AND MEMBERS’ EQUITY | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 5,520 | $ | 5,964 | ||||
Accrued liabilities | 9,555 | 11,539 | ||||||
Current portion of lease liability | 284 | 282 | ||||||
Income taxes payable | 75 | — | ||||||
Current portion of derivative instruments | 1,061 | 1,185 | ||||||
Current portion of long-term debt | 9,536 | 9,492 | ||||||
Total current liabilities | $ | 26,031 | $ | 28,462 | ||||
Long-term debt, less current portion | $ | 53,863 | $ | 56,268 | ||||
Non-current portion of lease liability | 249 | 320 | ||||||
Non-current portion of derivative instruments | 781 | 1,075 | ||||||
Asset retirement obligation | 5,783 | 5,689 | ||||||
Other liabilities | 1,920 | 1,920 | ||||||
Total liabilities | $ | 88,627 | $ | 93,734 | ||||
STOCKHOLDERS’ AND MEMBERS’ EQUITY | ||||||||
Members’ equity | $ | — | $ | 159,622 | ||||
Common stock, $0.01 par value, authorized 690,000,000 shares; 142,157,835 shares issued at March 31, 2021; 141,015,213 shares outstanding at March 31, 2021 | 1,410 | — | ||||||
Treasury stock, at cost, 950,214 shares at March 31, 2021 | (10,813 | ) | — | |||||
Additional paid-in capital | 188,403 | — | ||||||
Retained deficit | (14,265 | ) | — | |||||
Total stockholders’ and members’ equity | $ | 164,735 | $ | 159,622 | ||||
Total liabilities and stockholders’ and members’ equity | $ | 253,362 | $ | 253,356 | ||||
Three Months Ended March 31, | ||||||||
2021 | 2020 | |||||||
Total operating revenues | $ | 31,447 | $ | 18,403 | ||||
Operating expenses: | ||||||||
Operating and maintenance expenses | $ | 10,612 | $ | 9,836 | ||||
General and administrative expenses | 20,452 | 3,439 | ||||||
Royalties, transportation, gathering and production fuel | 6,218 | 2,941 | ||||||
Depreciation, depletion and amortization | 5,737 | 5,348 | ||||||
Gain on insurance proceeds | (82 | ) | (656 | ) | ||||
Impairment loss | 626 | 278 | ||||||
Transaction costs | 88 | — | ||||||
Total operating expenses | $ | 43,651 | $ | 21,186 | ||||
Operating loss | $ | (12,204 | ) | $ | (2,783 | ) | ||
Other expenses (income): | ||||||||
Interest expense | $ | 646 | $ | 2,214 | ||||
Other expense (income) | 33 | (26 | ) | |||||
Total other expenses | $ | 679 | $ | 2,188 | ||||
Loss before income taxes | $ | (12,883 | ) | $ | (4,971 | ) | ||
Income tax expense (benefit) | 1,382 | (10,787 | ) | |||||
Net income (loss) | $ | (14,265 | ) | $ | 5,816 | |||
Loss per share: | ||||||||
Basic | $ | (0.10 | ) | |||||
Diluted | $ | (0.10 | ) | |||||
Weighted-average common shares outstanding: | ||||||||
Basic | 141,015,213 | |||||||
Diluted | 141,015,213 |
Common Stock | Treasury Stock | Members’ Equity | Additional Paid-in Capital | Retained Earnings (Deficit) | Total Equity | |||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||||||||||||||||||
Balance at December 31, 2019 | — | $ | — | — | $ | — | $ | 154,257 | $ | — | $ | — | $ | 154,257 | ||||||||||||||||||
Net income | — | — | — | — | 5,816 | — | — | 5,816 | ||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | 230 | — | — | 230 | ||||||||||||||||||||||||
Balance at March 31, 2020 | — | $ | — | — | $ | — | $ | 160,303 | $ | — | $ | — | $ | 160,303 | ||||||||||||||||||
Balance at December 31, 2020 | — | $ | — | — | $ | — | $ | 159,622 | $ | — | $ | — | $ | 159,622 | ||||||||||||||||||
Effect of Reorganization Transactions | 138,312,713 | 1,383 | — | — | (159,622 | ) | 158,239 | — | — | |||||||||||||||||||||||
IPO common stock | 2,702,500 | 27 | — | — | — | 15,566 | — | 15,593 | ||||||||||||||||||||||||
Treasury stock | — | — | 950,214 | (10,813 | ) | — | — | — | (10,813 | ) | ||||||||||||||||||||||
Net loss | — | — | — | — | — | — | (14,265 | ) | (14,265 | ) | ||||||||||||||||||||||
Stock-based compensation | — | — | — | — | — | 14,598 | — | 14,598 | ||||||||||||||||||||||||
Balance at March 31, 2021 | 141,015,213 | $ | 1,410 | 950,214 | $ | (10,813 | ) | $ | — | $ | 188,403 | $ | (14,265 | ) | $ | 164,735 | ||||||||||||||||
Three Months Ended March 31, | ||||||||
2021 | 2020 | |||||||
Cash flows from operating activities: | ||||||||
Net income (loss) | $ | (14,265 | ) | $ | 5,816 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Depreciation, depletion and amortization | 5,737 | 5,334 | ||||||
Provision (benefit) for deferred income taxes | 1,066 | (10,787 | ) | |||||
Stock-based compensation | 14,598 | 230 | ||||||
Related party receivables | — | 164 | ||||||
Derivative mark-to-market and settlements | (418 | ) | 1,801 | |||||
Gain on property insurance proceeds | (82 | ) | — | |||||
Accretion of asset retirement obligations | 138 | 84 | ||||||
Amortization of debt issuance costs | 137 | 187 | ||||||
Impairment loss | 626 | 278 | ||||||
Changes in operating assets and liabilities: | ||||||||
Accounts and other receivables and other current assets | 2,634 | 735 | ||||||
Accounts payable and other accrued expenses | (2,402 | ) | (2,674 | ) | ||||
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Net cash provided by operating activities | $ | 7,769 | $ | 1,168 | ||||
Cash flows from investing activities | ||||||||
Capital expenditures | $ | (1,335 | ) | $ | (5,204 | ) | ||
Proceeds from insurance recovery | 82 | — | ||||||
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Net cash used in investing activities | $ | (1,253 | ) | $ | (5,204 | ) | ||
Cash flows from financing activities: | ||||||||
Borrowings of long-term debt | $ | — | $ | 8,500 | ||||
Repayments of long-term debt | (2,500 | ) | (2,500 | ) | ||||
Proceeds from initial public offering | 15,593 | — | ||||||
Treasury stock purchase | (10,813 | ) | — | |||||
Loan to Montauk Holdings Limited | (7,140 | ) | — | |||||
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Net cash (used in) provided by financing activities | $ | (4,860 | ) | $ | 6,000 | |||
Net increase in cash and cash equivalents and restricted cash | $ | 1,656 | $ | 1,964 | ||||
Cash and cash equivalents and restricted cash at beginning of period | $ | 21,559 | $ | 10,361 | ||||
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Cash and cash equivalents and restricted cash at end of period | $ | 23,215 | $ | 12,325 | ||||
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Reconciliation of cash, cash equivalents, and restricted cash at end of period: | ||||||||
Cash and cash equivalents | $ | 22,643 | $ | 11,738 | ||||
Restricted cash and cash equivalents - current | — | 20 | ||||||
Restricted cash and cash equivalents - non-current | 572 | 567 | ||||||
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$ | 23,215 | $ | 12,325 | |||||
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Three Months Ended March 31, | ||||||||
2021 | 2020 | |||||||
Cash flows from operating activities: | ||||||||
Net income (loss) | $ | (14,265 | ) | $ | 5,816 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Depreciation, depletion and amortization | 5,737 | 5,334 | ||||||
Provision (benefit) for deferred income taxes | 1,066 | (10,787 | ) | |||||
Stock-based compensation | 14,598 | 230 | ||||||
Related party receivables | — | 164 | ||||||
Derivative mark-to-market | (418 | ) | 1,801 | |||||
Gain on property insurance proceeds | (82 | ) | — | |||||
Accretion of asset retirement obligations | 138 | 84 | ||||||
Amortization of debt issuance costs | 137 | 187 | ||||||
Impairment loss | 626 | 278 | ||||||
Changes in operating assets and liabilities: | ||||||||
Accounts and other receivables and other current assets | 2,634 | 735 | ||||||
Accounts payable and other accrued expenses | (2,402 | ) | (2,674 | ) | ||||
Net cash provided by operating activities | $ | 7,769 | $ | 1,168 | ||||
Cash flows from investing activities | ||||||||
Capital expenditures | $ | (1,335 | ) | $ | (5,204 | ) | ||
Proceeds from insurance recovery | 82 | — | ||||||
Net cash used in investing activities | $ | (1,253 | ) | $ | (5,204 | ) | ||
Cash flows from financing activities: | ||||||||
Borrowings of long-term debt | $ | — | $ | 8,500 | ||||
Repayments of long-term debt | (2,500 | ) | (2,500 | ) | ||||
Proceeds from initial public offering | 15,593 | — | ||||||
Treasury stock purchase | (10,813 | ) | — | |||||
Loan to Montauk Holdings Limited | (7,140 | ) | — | |||||
Net cash (used in) provided by financing activities | $ | (4,860 | ) | $ | 6,000 | |||
Net increase in cash and cash equivalents and restricted cash | $ | 1,656 | $ | 1,964 | ||||
Cash and cash equivalents and restricted cash at beginning of period | $ | 21,559 | $ | 10,361 | ||||
Cash and cash equivalents and restricted cash at end of period | $ | 23,215 | $ | 12,325 | ||||
Reconciliation of cash, cash equivalents, and restricted cash at end of period: | ||||||||
Cash and cash equivalents | $ | 22,643 | $ | 11,738 | ||||
Restricted cash and cash equivalents - current | — | 20 | ||||||
Restricted cash and cash equivalents - non-current | 572 | 567 | ||||||
$ | 23,215 | $ | 12,325 | |||||
Three Months Ended March 31, 2021 | ||||||||||||
Goods transferred at a point in time | Goods transferred over time | Total | ||||||||||
Major Goods/Service Line: | ||||||||||||
Natural Gas Commodity | $ | 3,976 | $ | 6,695 | $ | 10,671 | ||||||
Natural Gas Environmental Attributes | 17,452 | — | 17,452 | |||||||||
Electric Commodity | — | 2,273 | 2,273 | |||||||||
Electric Environmental Attributes | 1,051 | — | 1,051 | |||||||||
$ | 22,479 | $ | 8,968 | $ | 31,447 | |||||||
Operating Segment: | ||||||||||||
RNG | $ | 21,428 | $ | 6,695 | $ | 28,123 | ||||||
REG | 1,051 | 2,273 | 3,324 | |||||||||
$ | 22,479 | $ | 8,968 | $ | 31,447 | |||||||
Three Months Ended March 31, 2020 | ||||||||||||
Goods transferred at a point in time | Goods transferred over time | Total | ||||||||||
Major Goods/Service Line: | ||||||||||||
Natural Gas Commodity | $ | 1,476 | $ | 5,245 | $ | 6,721 | ||||||
Natural Gas Environmental Attributes | 7,024 | — | 7,024 | |||||||||
Electric Commodity | — | 2,753 | 2,753 | |||||||||
Electric Environmental Attributes | 1,743 | — | 1,743 | |||||||||
$ | 10,243 | $ | 7,998 | $ | 18,241 | |||||||
Operating Segment: | ||||||||||||
RNG | $ | 8,500 | $ | 5,245 | $ | 13,745 | ||||||
REG | 1,743 | 2,753 | 4,496 | |||||||||
$ | 10,243 | $ | 7,998 | $ | 18,241 | |||||||
March 31, | December, 31 | |||||||
2021 | 2020 | |||||||
Accounts receivables | $ | 6,691 | $ | 5,264 | ||||
Other receivables | 179 | 164 | ||||||
Reimbursable expenses | 35 | 21 | ||||||
Accounts and Other Receivables, Net | $ | 6,905 | $ | 5,449 | ||||
March 31, | December, 31 | |||||||
2021 | 2020 | |||||||
Buildings and improvements | $ | 28,070 | $ | 28,065 | ||||
Machinery and equipment | 246,448 | 246,874 | ||||||
Gas mineral rights | 34,551 | 34,551 | ||||||
Construction work in progress | 5,565 | 4,485 | ||||||
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Total | 314,634 | 313,975 | ||||||
Less: Accumulated depreciation and amortization | (132,325) | (126,929 | ) | |||||
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Property, Plant & Equipment, Net | $ | 182,309 | $ | 187,046 | ||||
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March 31, | December, 31 | |||||||
2021 | 2020 | |||||||
Buildings and improvements | $ | 28,070 | $ | 28,065 | ||||
Machinery and equipment | 246,448 | 246,874 | ||||||
Gas mineral rights | 34,551 | 34,551 | ||||||
Construction work in progress | 5,565 | 4,485 | ||||||
Total | 314,634 | 313,975 | ||||||
Less: Accumulated depreciation and amortization | (132,325 | ) | (126,929 | ) | ||||
Property, Plant & Equipment, Net | $ | 182,309 | $ | 187,046 | ||||
March 31, | December 31, | |||||||
2021 | 2020 | |||||||
Goodwill | $ | 60 | $ | 60 | ||||
Intangible assets with indefinite lives: | ||||||||
Emissions allowances | $ | 777 | $ | 777 | ||||
Land use rights | 329 | 329 | ||||||
Total intangible assets with indefinite lives: | $ | 1,106 | $ | 1,106 | ||||
Intangible assets with finite lives: | ||||||||
Interconnection, net of accumulated amortization of $2,446 and $2,329 | $ | 11,834 | $ | 11,951 | ||||
Customer contracts, net of accumulated amortization of $16,541 and $16,367 | $ | 742 | $ | 916 | ||||
Total intangible assets with finite lives: | $ | 12,576 | $ | 12,867 | ||||
Total Goodwill and Intangible Assets | $ | 13,742 | $ | 14,033 | ||||
Three Months Ended March 31, 2021 | Year Ended December 31, 2020 | |||||||
Asset retirement obligations - beginning of period | $ | 5,689 | $ | 5,928 | ||||
Accretion expense | 119 | 320 | ||||||
New asset retirement obligations | — | 350 | ||||||
Decommissioning | (25 | ) | (909 | ) | ||||
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Asset retirement obligations - end of period | $ | 5,783 | $ | 5,689 | ||||
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Three Months Ended March 31, 2021 | Year Ended December 31, 2020 | |||||||
Asset retirement obligations - beginning of period | $ | 5,689 | $ | 5,928 | ||||
Accretion expense | 119 | 320 | ||||||
New asset retirement obligations | 0 | 350 | ||||||
Decommissioning | (25 | ) | (909 | ) | ||||
Asset retirement obligations - end of period | $ | 5,783 | $ | 5,689 | ||||
Three Months Ended | ||||||||||||
Derivative Instrument | Location | March 31, 2021 | March 31, 2020 | |||||||||
Commodity Contracts: | ||||||||||||
Realized Natural Gas | Gas commodity sales | $ | — | $ | 551 | |||||||
Unrealized Natural Gas | Other income | — | (388 | ) | ||||||||
Interest Rate Swaps | Interest expense | 418 | (1,413 | ) | ||||||||
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Net gain (loss) | $ | 418 | $ | (1,250 | ) | |||||||
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Three Months Ended | ||||||||||||
Derivative Instrument | Location | March 31, 2021 | March 31, 2020 | |||||||||
Commodity Contracts: | ||||||||||||
Realized Natural Gas | Gas commodity sales | $ | 0 | $ | 551 | |||||||
Unrealized Natural Gas | Other income | 0 | (388 | ) | ||||||||
Interest Rate Swaps | Interest expense | 418 | (1,413 | ) | ||||||||
Net gain (loss) | $ | 418 | $ | (1,250 | ) | |||||||
March 31, 2021 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Interest rate swap derivative liabilities | $ | — | $ | (1,842 | ) | $ | — | $ | (1,842 | ) | ||||||
Asset retirement obligations | — | — | (5,783 | ) | (5,783 | ) | ||||||||||
Pico earn-out liability | — | — | (1,920 | ) | (1,920 | ) | ||||||||||
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$ | — | $ | (1,842 | ) | $ | (7,703 | ) | $ | (9,545 | ) | ||||||
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December 31, 2020 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Interest rate swap derivative liabilities | $ | — | $ | (2,260 | ) | $ | — | $ | (2,260 | ) | ||||||
Asset retirement obligations | — | — | (5,689 | ) | (5,689 | ) | ||||||||||
Pico earn-out liability | — | — | (1,920 | ) | (1,920 | ) | ||||||||||
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$ | — | $ | (2,260 | ) | $ | (7,609 | ) | $ | (9,869 | ) | ||||||
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March 31, 2021 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Interest rate swap derivative liabilities | $ | 0 | $ | (1,842 | ) | $ | 0 | $ | (1,842 | ) | ||||||
Asset retirement obligations | 0 | 0 | (5,783 | ) | (5,783 | ) | ||||||||||
Pico earn-out liability | 0 | 0 | (1,920 | ) | (1,920 | ) | ||||||||||
$ | 0 | $ | (1,842 | ) | $ | (7,703 | ) | $ | (9,545 | ) | ||||||
December 31, 2020 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Interest rate swap derivative liabilities | $ | 0 | $ | (2,260 | ) | $ | 0 | $ | (2,260 | ) | ||||||
Asset retirement obligations | 0 | 0 | (5,689 | ) | (5,689 | ) | ||||||||||
Pico earn-out liability | 0 | 0 | (1,920 | ) | (1,920 | ) | ||||||||||
$ | 0 | $ | (2,260 | ) | $ | (7,609 | ) | $ | (9,869 | ) | ||||||
March 31, 2021 | December 31, 2020 | |||||||
Accrued expenses | $ | 3,613 | $ | 4,975 | ||||
Payroll and related benefits | 1,543 | 2,341 | ||||||
Royalty | 2,705 | 2,620 | ||||||
Utility | 1,063 | 1,147 | ||||||
Other | 631 | 456 | ||||||
Accrued Liabilities | $ | 9,555 | $ | 11,539 | ||||
March 31, 2021 | December 31, 2020 | |||||||
Term Loans | $ | 27,500 | $ | 30,000 | ||||
Revolving credit facility | 36,697 | 36,697 | ||||||
Less: current principal maturities | (10,000 | ) | (10,000 | ) | ||||
Less: debt issuance costs (on long-term debt) | (334 | ) | (429 | ) | ||||
Long-term Debt | $ | 53,863 | $ | 56,268 | ||||
Current Portion of Long- term Debt | 9,536 | 9,492 | ||||||
$ | 63,399 | $ | 65,760 | |||||
Three Months Ended | ||||||||
March 31, 2021 | March 31, 2020 | |||||||
Provision for income taxes | $ | 1,382 | $ | (10,787 | ) | |||
Effective tax rate | (10.7 | )% | 217.0 | % |
March 31, 2021 | ||||
Risk-free interest rate | 0.5 | % | ||
Expected volatility | 32.0 | % | ||
Expected option life (in years) | 5.5 | |||
Grant-date fair value | $ | 3.44 |
Restricted Shares | Restricted Stock Units | Options | ||||||||||||||||||||||
Number of Shares | Weighted Average Grant Date Fair Value | Number of Shares | Weighted Average Grant Date Fair Value | Number of Shares | Weighted Average Exercise Price | |||||||||||||||||||
End of period - December 31, 2020 | — | $ | — | — | $ | — | — | $ | — | |||||||||||||||
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Beginning of period - January 1, 2021 | — | $ | — | — | $ | — | — | $ | — | |||||||||||||||
Granted | 2,092,836 | 11.38 | 29,568 | 11.38 | 950,214 | 11.38 | ||||||||||||||||||
Vested | (950,214 | ) | 11.38 | — | — | — | — | |||||||||||||||||
Forfeited | — | — | (792 | ) | 11.38 | — | — | |||||||||||||||||
Exercised | — | — | — | — | — | — | ||||||||||||||||||
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End of period – March 31, 2021 | 1,142,622 | $ | 11.38 | 28,776 | $ | 11.38 | 950,214 | $ | 11.38 | |||||||||||||||
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Restricted Shares | Restricted Stock Units | Options | ||||||||||||||||||||||
Number of Shares | Weighted Average Grant Date Fair Value | Number of Shares | Weighted Average Grant Date Fair Value | Number of Shares | Weighted Average Exercise Price | |||||||||||||||||||
End of period - December 31, 2020 | — | $ | — | — | $ | — | — | $ | — | |||||||||||||||
Beginning of period - January 1, 2021 | 0 | $ | 0 | 0 | $ | 0 | 0 | $ | 0 | |||||||||||||||
Granted | 2,092,836 | 11.38 | 29,568 | 11.38 | 950,214 | 11.38 | ||||||||||||||||||
Vested | (950,214 | ) | 11.38 | — | — | 0 | 0 | |||||||||||||||||
Forfeited | — | — | (792 | ) | 11.38 | 0 | 0 | |||||||||||||||||
Exercised | — | — | — | — | — | — | ||||||||||||||||||
End of period – March 31, 2021 | 1,142,622 | $ | 11.38 | 28,776 | $ | 11.38 | 950,214 | $ | 11.38 | |||||||||||||||
Options | Restricted Stock | |||||||||||||||
Number of Shares | Weighted Average Exercise Price | Number of Shares | Weighted Average Grant Date Fair Value | |||||||||||||
End of period - December 31, 2019 | 1,872,534 | $ | 1.18 | 1,939,200 | $ | 0.95 | ||||||||||
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Beginning of period - January 1, 2020 | 1,872,534 | $ | 1.18 | 1,939,200 | $ | 0.95 | ||||||||||
Granted | — | — | — | — | ||||||||||||
Forfeited | — | — | — | — | ||||||||||||
Exercised | (50,000 | ) | 0.44 | — | — | |||||||||||
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End of period – March 31, 2020 | 1,822,534 | $ | 1.20 | 1,939,200 | $ | 0.95 | ||||||||||
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Options | Restricted Stock | |||||||||||||||
Number of Shares | Weighted Average Exercise Price | Number of Shares | Weighted Average Grant Date Fair Value | |||||||||||||
End of period - December 31, 2019 | 1,872,534 | $ | 1.18 | 1,939,200 | $ | 0.95 | ||||||||||
Beginning of period - January 1, 2020 | 1,872,534 | $ | 1.18 | 1,939,200 | $ | 0.95 | ||||||||||
Granted | — | — | — | — | ||||||||||||
Forfeited | — | — | — | — | ||||||||||||
Exercised | (50,000 | ) | 0.44 | 0 | 0 | |||||||||||
End of period – March 31, 2020 | 1,822,534 | $ | 1.20 | 1,939,200 | $ | 0.95 | ||||||||||
Three Months Ended March 31, 2021 | ||||||||||||||||
RNG | REG | Corporate | Total | |||||||||||||
Total Revenue | $ | 28,123 | $ | 3,324 | $ | — | $ | 31,447 | ||||||||
Net Income (Loss) | 10,561 | (2,241 | ) | (22,585 | ) | (14,265 | ) | |||||||||
EBITDA | 14,779 | (765 | ) | (20,514 | ) | (6,500 | ) | |||||||||
Adjusted EBITDA (1) | 14,779 | (139 | ) | (20,426 | ) | (5,786 | ) | |||||||||
Total Assets | 157,436 | 50,156 | 45,770 | 253,362 | ||||||||||||
Capital Expenditure | 1,306 | 23 | 6 | 1,335 |
Three Months Ended March 31, 2021 | ||||||||||||||||
RNG | REG | Corporate | Total | |||||||||||||
Net Income (loss) | $ | 10,561 | $ | (2,241 | ) | $ | (22,585 | ) | $ | (14,265 | ) | |||||
Depreciation and amortization | 4,218 | 1,474 | 45 | 5,737 | ||||||||||||
Interest expense | — | — | 646 | 646 | ||||||||||||
Income tax expense (benefit) | — | 2 | 1,380 | 1,382 | ||||||||||||
EBITDA | $ | 14,779 | $ | (765 | ) | $ | (20,514 | ) | $ | (6,500 | ) | |||||
Impairment loss | — | 626 | — | 626 | ||||||||||||
Transaction costs | — | — | 88 | 88 | ||||||||||||
Adjusted EBITDA | $ | 14,779 | $ | (139 | ) | $ | (20,426 | ) | $ | (5,786 | ) | |||||
Three Months Ended March 31, 2020 | ||||||||||||||||
RNG | REG | Corporate | Total | |||||||||||||
Total Revenue | $ | 13,425 | $ | 4,496 | $ | 482 | $ | 18,403 | ||||||||
Net Income (Loss) | 1,158 | (519 | ) | 5,177 | 5,816 | |||||||||||
EBITDA | 4,628 | 1,318 | (3,355 | ) | 2,591 | |||||||||||
Adjusted EBITDA (1) | 4,628 | 1,596 | (2,967 | ) | 3,257 | |||||||||||
Total Assets | 137,268 | 81,809 | 36,713 | 255,790 | ||||||||||||
Capital Expenditure | 4,105 | 1,060 | 39 | 5,204 |
Three Months Ended March 31, 2020 | ||||||||||||||||
RNG | REG | Corporate | Total | |||||||||||||
Net Income (loss) | $ | 1,158 | $ | (519 | ) | $ | 5,177 | $ | 5,816 | |||||||
Depreciation and amortization | 3,470 | 1,835 | 43 | 5,348 | ||||||||||||
Interest expense | — | — | 2,214 | 2,214 | ||||||||||||
Income tax expense (benefit) | — | 2 | (10,789 | ) | (10,787 | ) | ||||||||||
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EBITDA | $ | 4,628 | $ | 1,318 | $ | (3,355 | ) | $ | 2,591 | |||||||
Impairment loss | — | 278 | — | 278 | ||||||||||||
Non-cash hedging charges | — | — | 388 | 388 | ||||||||||||
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Adjusted EBITDA | $ | 4,628 | $ | 1,596 | $ | (2,967 | ) | $ | 3,257 | |||||||
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Three Months Ended March 31, 2020 | ||||||||||||||||
RNG | REG | Corporate | Total | |||||||||||||
Net Income (loss) | $ | 1,158 | $ | (519 | ) | $ | 5,177 | $ | 5,816 | |||||||
Depreciation and amortization | 3,470 | 1,835 | 43 | 5,348 | ||||||||||||
Interest expense | — | — | 2,214 | 2,214 | ||||||||||||
Income tax expense (benefit) | — | 2 | (10,789 | ) | (10,787 | ) | ||||||||||
EBITDA | $ | 4,628 | $ | 1,318 | $ | (3,355 | ) | $ | 2,591 | |||||||
Impairment loss | — | 278 | — | 278 | ||||||||||||
Non-cash hedging charges | — | — | 388 | 388 | ||||||||||||
Adjusted EBITDA | $ | 4,628 | $ | 1,596 | $ | (2,967 | ) | $ | 3,257 | |||||||
Three Months Ended March 31, 2021 | ||||||||||||||||
RNG | REG | Corporate | Total | |||||||||||||
Customer A | 13.1 | % | — | — | 13.1 | % | ||||||||||
Customer B | 10.0 | % | — | — | 10.0 | % | ||||||||||
Customer C | 11.0 | % | — | — | 11.0 | % | ||||||||||
Customer D | 26.2 | % | — | — | 26.2 | % | ||||||||||
Three Months Ended March 31, 2020 | ||||||||||||||||
RNG | REG | Corporate | Total | |||||||||||||
Customer A | — | 20.6 | % | — | 20.6 | % | ||||||||||
Customer B | 18.6 | % | — | — | 18.6 | % | ||||||||||
Customer C | 15.7 | % | — | — | 15.7 | % |
Three Months Ended March 31, 2021 | ||||||||||||||||
RNG | REG | Corporate | Total | |||||||||||||
Customer A | 13.1 | % | — | — | 13.1 | % | ||||||||||
Customer B | 10.0 | % | — | — | 10.0 | % | ||||||||||
Customer C | 11.0 | % | — | — | 11.0 | % | ||||||||||
Customer D | 26.2 | % | — | — | 26.2 | % | ||||||||||
Three Months Ended March 31, 2020 | ||||||||||||||||
RNG | REG | Corporate | Total | |||||||||||||
Customer A | — | 20.6 | % | 0— | 20.6 | % | ||||||||||
Customer B | 18.6 | % | — | — | 18.6 | % | ||||||||||
Customer C | 15.7 | % | — | — | 15.7 | % |
Three Months Ended March 31, | ||||||||
2021 | 2020 | |||||||
Cash paid for amounts included in the measurement of operating lease liabilities | $ | 76 | $ | 75 | ||||
Weighted average remaining lease term (in years) | 1.51 | 1.61 | ||||||
Weighted average discount rate | 5.00 | % | 5.00 | % |
Amount | ||||
Year Ending | ||||
Remainder of 2021 | $ | 227 | ||
2022 | 317 | |||
2023 | 8 | |||
2024 | 1 | |||
Interest | (20 | ) | ||
Total | $ | 533 | ||
Three Months Ended March 31, 2021 | ||||
Net loss | $ | (14,265 | ) | |
Basic weighted-average shares outstanding | 141,015,213 | |||
Dilutive effect of share-based awards | — | |||
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| |||
Diluted weighted-average shares outstanding | 141,015,213 | |||
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| |||
Basic loss per share | $ | (0.10 | ) | |
Diluted loss per share | $ | (0.10 | ) |
Three Months Ended March 31, 2021 | ||||
Net loss | $ | (14,265 | ) | |
Basic weighted-average shares outstanding | 141,015,213 | |||
Dilutive effect of share-based awards | 0 | |||
Diluted weighted-average shares outstanding | 141,015,213 | |||
Basic loss per share | $ | (0.10 | ) | |
Diluted loss per share | $ | (0.10 | ) |
ITEM 2. | MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
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(in thousands, unless otherwise indicated) | Three Months Ended March 31, | |||||||||||||||
2021 | 2020 | Change | Change % | |||||||||||||
Revenues | ||||||||||||||||
Renewable Natural Gas Total Revenues | $ | 28,123 | $ | 13,889 | $ | 14,234 | 102.5 | % | ||||||||
Renewable Electricity Generation Total Revenues | $ | 3,324 | $ | 4,461 | $ | (1,137 | ) | (25.5 | )% | |||||||
RNG Metrics | ||||||||||||||||
CY RNG production volumes (MMBtu) | 1,348 | 1,389 | (41 | ) | (3.0 | )% | ||||||||||
Less: Current period RNG volumes under fixed/floor-price contracts | (453 | ) | (554 | ) | (101 | ) | (18.2 | )% | ||||||||
Plus: Prior period RNG volumes dispensed in current period | 353 | 267 | 86 | 32.2 | % | |||||||||||
Less: Current period RNG production volumes not dispensed | (350 | ) | (374 | ) | (24 | ) | (6.4 | )% | ||||||||
Total RNG volumes available for RIN generation (1) | 898 | 728 | 170 | 23.4 | % | |||||||||||
RIN Metrics | ||||||||||||||||
Current RIN generation ( x 11.727) (2) | 10,534 | 8,538 | 1,996 | 23.4 | % | |||||||||||
Less: Counterparty share (RINs) | (1,147 | ) | (921 | ) | 226 | 24.5 | % | |||||||||
Plus: Prior period RINs carried into CY | 110 | 1,330 | (1,220 | ) | (91.7 | )% | ||||||||||
Less: CY RINs carried into next CY | — | — | — | — | ||||||||||||
Total RINs available for sale (3) | 9,497 | 8,947 | 550 | 6.1 | % | |||||||||||
Less: RINs sold | (8,875 | ) | (7,835 | ) | 1,040 | 13.3 | % | |||||||||
RIN Inventory | 622 | 1,112 | (490 | ) | (44.1 | )% | ||||||||||
RNG Inventory (volumes not dispensed for RINs) (4) | 350 | 374 | (24 | ) | (6.4 | )% | ||||||||||
Average Realized RIN price | $ | 1.91 | $ | 0.76 | $ | 1.15 | 151.3 | % | ||||||||
Operating Expenses | ||||||||||||||||
Renewable Natural Gas Operating Expenses | $ | 13,134 | $ | 9,415 | $ | 3,719 | 39.5 | % | ||||||||
Operating Expenses per MMBtu (actual) | $ | 9.74 | $ | 6.78 | $ | 2.96 | 43.7 | % | ||||||||
Renewable Electricity Generation Operating Expenses | $ | 3,393 | $ | 2,957 | $ | 436 | 14.7 | % | ||||||||
$/MWh (actual) | $ | 71.70 | $ | 56.50 | $ | 15.20 | 26.9 | % | ||||||||
Other Metrics | ||||||||||||||||
Renewable Electricity Generation Volumes Produced (MWh) | 47 | 52 | (5 | ) | (9.6 | )% | ||||||||||
Average Realized Price $/MWh (actual) | $ | 70.24 | $ | 85.24 | $ | (15.00 | ) | (17.6 | )% |
(1) | RINs are generated in the month that the gas is dispensed to generate RINs, which occurs the month after the gas is produced. Volumes under fixed/floor-price arrangements generate RINs which we do not self-market. |
(2) | One MMBtu of RNG has the same energy content as 11.727 gallons of ethanol, and thus may generate 11.727 RINs under the RFS program. |
(3) | Represents RINs available to be self-marketed by us during the reporting period. |
(4) | Represents gas production which has not been dispensed to generate RINs. |
(in thousands, except per share data) | Three Months Ended March 31, | |||||||||||||||
2021 | 2020 | Change | Change % | |||||||||||||
Total operating revenues | $ | 31,447 | $ | 18,403 | $ | 13,044 | 70.9 | % | ||||||||
Operating expenses: | ||||||||||||||||
Operating and maintenance expenses | 10,612 | 9,836 | 776 | 7.9 | % | |||||||||||
General and administrative expenses | 20,452 | 3,439 | 17,013 | 494.7 | % | |||||||||||
Royalties, transportation, gathering and production fuel | 6,218 | 2,941 | 3,277 | 111.4 | % | |||||||||||
Depreciation and amortization | 5,737 | 5,348 | 389 | 7.3 | % | |||||||||||
Gain on insurance proceeds | (82 | ) | (656 | ) | (574 | ) | (87.5 | )% | ||||||||
Impairment loss | 626 | 278 | 348 | 125.2 | % | |||||||||||
Transaction costs | 88 | — | 88 | |||||||||||||
Total operating expenses | 43,651 | 21,186 | 22,465 | 106.0 | % | |||||||||||
Operating loss | $ | (12,204 | ) | $ | (2,783 | ) | $ | (9,421 | ) | (338.5 | )% | |||||
Other expenses: | 679 | 2,188 | (1,509 | ) | (69.0 | )% | ||||||||||
Income tax expense (benefit) | 1,382 | (10,787 | ) | 12,169 | 112.8 | % | ||||||||||
Net income | $ | (14,265 | ) | $ | 5,816 | $ | (20,081 | ) | (345.3 | )% | ||||||
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Three Months Ended March 31, | ||||||||
2021 | 2020 | |||||||
Net income (loss) | $ | (14,265 | ) | $ | 5,816 | |||
Depreciation and amortization | 5,737 | 5,348 | ||||||
Interest expense | 646 | 2,214 | ||||||
Income tax expense (benefit) | 1,382 | (10,787 | ) | |||||
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Consolidated EBITDA | (6,500 | ) | 2,591 | |||||
Impairment loss (1) | 626 | 278 | ||||||
Transaction costs | 88 | — | ||||||
Non-cash hedging charges | — | 388 | ||||||
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Adjusted EBITDA | $ | (5,786 | ) | $ | 3,257 | |||
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Three Months Ended March 31, | ||||||||
2021 | 2020 | |||||||
Net income (loss) | $ | (14,265 | ) | $ | 5,816 | |||
Depreciation and amortization | 5,737 | 5,348 | ||||||
Interest expense | 646 | 2,214 | ||||||
Income tax expense (benefit) | 1,382 | (10,787 | ) | |||||
Consolidated EBITDA | (6,500 | ) | 2,591 | |||||
Impairment loss (1) | 626 | 278 | ||||||
Transaction costs | 88 | — | ||||||
Non-cash hedging charges | — | 388 | ||||||
Adjusted EBITDA | $ | (5,786 | ) | $ | 3,257 | |||
March 31, 2021 | December 31, 2020 | |||||||
Term Loans | $ | 27,500 | $ | 30,000 | ||||
Revolving Credit Facility | 36,697 | 36,697 | ||||||
Debt before debt issuance costs | $ | 64,198 | $ | 66,697 | ||||
Three Months Ended March 31, | ||||||||
2021 | 2020 | |||||||
Net cash flows provided by operating activities | $ | 7,769 | $ | 1,168 | ||||
Net cash flows used in investing activities | (1,253 | ) | (5,204 | ) | ||||
Net cash flows (used in) provided by financing activities | (4,860 | ) | 6,000 | |||||
Net increase in cash and cash equivalents | 1,656 | 1,964 | ||||||
Restricted cash, end of period | 572 | 587 | ||||||
Cash and cash equivalents and restricted, end of period | 23,215 | 12,325 |
ITEM 3. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK |
ITEM 4. | CONTROLS AND PROCEDURES |
ITEM 1. | LEGAL PROCEEDINGS |
ITEM 1A. | RISK FACTORS |
ITEM 2. | UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS |
Issuer Purchases of Equity Securities | ||||||||||||||||
Period | Total Number of Shares Purchased(1) | Average Price Paid Per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Maximum Number (or Approximate Dollar Value) of Shares That May Yet Be Purchased Under the Plans or Programs | ||||||||||||
Jan. 1, 2021 – Jan. 31, 2021 | 950,224 | $ | 11.38 | — | — | |||||||||||
Feb. 1, 2021 – Feb. 28, 2021 | — | — | — | — | ||||||||||||
March 1, 2021 – March 31, 2021 | — | — | — | — | ||||||||||||
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950,224 | $ | 11.38 | — | — | ||||||||||||
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Issuer Purchases of Equity Securities | ||||||||||||||||
Period | Total Number of Shares Purchased (1) | Average Price Paid Per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Maximum Number (or Approximate Dollar Value) of Shares That May Yet Be Purchased Under the Plans or Programs | ||||||||||||
Jan. 1, 2021 – Jan. 31, 2021 | 950,224 | $ | 11.38 | — | — | |||||||||||
Feb. 1, 2021 – Feb. 28, 2021 | — | — | — | — | ||||||||||||
March 1, 2021 – March 31, 2021 | — | — | — | — | ||||||||||||
950,224 | $ | 11.38 | — | — | ||||||||||||
(1) | On January 4, 2021, we redeemed 10 shares of our common stock, that were previously issued to Ms. Melissa Zotter in connection with our initial formation, for $10. On January 28, 2021, we withheld 950,214 shares of our common stock relating to restricted stock awards granted to our officers under the MRI EICP pursuant to their respective elections under Section 83(b) of the Code. |
ITEM 3. | DEFAULTS UPON SENIOR SECURITIES |
ITEM 4. | MINE SAFETY DISCLOSURES |
ITEM 5. | OTHER INFORMATION |
ITEM 6. | EXHIBITS |
| Description | |
2.1+ | ||
2.2 | ||
3.1 | ||
3.2 | ||
10.1^ | ||
10.2^ | ||
10.3^ | ||
10.4^ | ||
10.5^ | ||
10.6^ | ||
10.7^ | ||
10.8^ | ||
10.9 |
| Description | |
10.10 | ||
31.1 | ||
31.2 | ||
32.1 | ||
32.2 | ||
101.INS | Inline XBRL Instance Document | |
101.SCH | Inline XBRL Taxonomy Extension Schema Document | |
101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document | |
101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document | |
101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document | |
101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document | |
104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) |
^ | Exhibits marked with a (^) are management contracts or compensation plans or arrangements. |
+ | Exhibits marked with a (+) exclude certain immaterial schedules and exhibits pursuant to the provisions of Regulation S-K, Item 601(a)(5) or Item 601(a)(6). A copy of any of the omitted schedules and exhibits pursuant toRegulation S-K, Item 601(a)(5) will be furnished to the Securities and Exchange Commission upon request. |
MONTAUK RENEWABLES, INC. | ||||||
By: | /s/ SEAN F. MCCLAIN | |||||
Sean F. McClain | ||||||
President, Chief Executive Officer and Director (Principal Executive Officer) | ||||||
By: | /s/ KEVIN A. VAN ASDALAN | |||||
Kevin A. Van Asdalan | ||||||
Chief Financial Officer (Principal Financial and Accounting Officer) |