Montauk Renewables, Inc. Revenue Disclosure
NOTE 4—REVENUES FROM CONTRACTS WITH CUSTOMERS
The Company’s revenues are comprised of renewable energy and related Environmental Attribute sales provided under short, medium and long term contracts with its customers. All revenue is recognized when (or as) the Company satisfies its performance obligation(s) under the contract (either implicit or explicit) by transferring the promised product or service to its customer either when (or as) its customer obtains control of the product or service. A performance obligation is a promise in a contract to transfer a distinct product or service to a customer. A contract’s transaction price is allocated to each distinct performance obligation. The Company allocates the contract’s transaction price to each performance obligation using the product’s observable market standalone selling price for each distinct product in the contract. The Company's typical invoicing terms are payment due within 30 days.
Revenue is measured as the amount of consideration the Company expects to receive in exchange for transferring its products or services to customers. Revenue is recorded net of allowances and customer discounts. Transportation and gathering costs incurred by customers after the transfer of control of the commodities are netted from revenue, as the Company does not control these services and acts as an agent with respect to such costs. To the extent applicable, sales, value add and other taxes collected from customers and remitted to governmental authorities are accounted for on a net (excluded from revenues) basis. In certain cases, the Company's performance obligation under its sale of RNG contracts include variable components, whose consideration is based on subsequent monetization of environmental attribute credits by third parties. These variable components are recognized over time to the extent it is probable that a significant reversal will not occur.
The Company’s performance obligations related to the sale of renewable energy (i.e. RNG and Renewable Electricity) are generally satisfied over time. Revenue related to the sale of renewable energy is generally recognized over time using an output based upon the product quantity delivered to the customer. This measure is used to best depict the Company’s performance to date under the terms of the contract. Revenue from products transferred to customers over time accounted for 33%, 26% and 24% of revenue for the years ended December 31, 2025, 2024 and 2023, respectively.
The Company’s performance obligations related to the sale of Environmental Attributes are generally satisfied at a point in time and were 67%, 74% and 76% of revenue for the years ended December 31, 2025, 2024 and 2023, respectively. The Company recognizes Environmental Attribute revenue at the point in time in which the customer obtains control of the Environmental Attributes, which is generally when the title of the Environmental Attribute passes to the customer upon delivery. In limited cases, title does not transfer to the customer and revenue is not recognized until the customer has accepted the Environmental Attributes.
The following tables display the Company’s disaggregated revenue by major source, based on product type and timing of transfer of goods and services for the years ended December 31, 2025, 2024 and 2023:
|
|
Year Ended December 31, 2025 |
|
|||||||||
|
|
Goods transferred at a point in time |
|
|
Goods transferred over time |
|
|
Total |
|
|||
Major goods/Service line: |
|
|
|
|
|
|
|
|
|
|||
Natural gas commodity |
|
$ |
— |
|
|
$ |
48,530 |
|
|
$ |
48,530 |
|
Natural gas environmental attributes |
|
|
110,060 |
|
|
|
— |
|
|
|
110,060 |
|
Electric commodity |
|
|
— |
|
|
|
10,326 |
|
|
|
10,326 |
|
Electric environmental attributes |
|
|
7,466 |
|
|
|
— |
|
|
|
7,466 |
|
|
|
$ |
117,526 |
|
|
$ |
58,856 |
|
|
$ |
176,382 |
|
Operating segment: |
|
|
|
|
|
|
|
|
|
|||
RNG |
|
$ |
110,060 |
|
|
$ |
48,530 |
|
|
$ |
158,590 |
|
REG |
|
|
7,466 |
|
|
|
10,326 |
|
|
|
17,792 |
|
|
|
$ |
117,526 |
|
|
$ |
58,856 |
|
|
$ |
176,382 |
|
|
|
Year Ended December 31, 2024 |
|
|||||||||
|
|
Goods transferred at a point in time |
|
|
Goods transferred over time |
|
|
Total |
|
|||
Major goods/Service line: |
|
|
|
|
|
|
|
|
|
|||
Natural gas commodity |
|
$ |
— |
|
|
$ |
35,039 |
|
|
$ |
35,039 |
|
Natural gas environmental attributes |
|
|
122,463 |
|
|
|
— |
|
|
|
122,463 |
|
Electric commodity |
|
|
— |
|
|
|
10,648 |
|
|
|
10,648 |
|
Electric environmental attributes |
|
|
7,586 |
|
|
|
— |
|
|
|
7,586 |
|
|
|
$ |
130,049 |
|
|
$ |
45,687 |
|
|
$ |
175,736 |
|
Operating segment: |
|
|
|
|
|
|
|
|
|
|||
RNG |
|
$ |
122,463 |
|
|
$ |
35,039 |
|
|
$ |
157,502 |
|
REG |
|
|
7,586 |
|
|
|
10,648 |
|
|
|
18,234 |
|
|
|
$ |
130,049 |
|
|
$ |
45,687 |
|
|
$ |
175,736 |
|
|
|
Year Ended December 31, 2023 |
|
|||||||||
|
|
Goods transferred at a point in time |
|
|
Goods transferred over time |
|
|
Total |
|
|||
Major goods/Service line: |
|
|
|
|
|
|
|
|
|
|||
Natural gas commodity |
|
$ |
— |
|
|
$ |
30,207 |
|
|
$ |
30,207 |
|
Natural gas environmental attributes |
|
|
125,874 |
|
|
|
— |
|
|
|
125,874 |
|
Electric commodity |
|
|
— |
|
|
|
11,301 |
|
|
|
11,301 |
|
Electric environmental attributes |
|
|
7,522 |
|
|
|
— |
|
|
|
7,522 |
|
|
|
$ |
133,396 |
|
|
$ |
41,508 |
|
|
$ |
174,904 |
|
Operating segment: |
|
|
|
|
|
|
|
|
|
|||
RNG |
|
$ |
125,874 |
|
|
$ |
30,207 |
|
|
$ |
156,081 |
|
REG |
|
|
7,522 |
|
|
|
11,301 |
|
|
|
18,823 |
|
|
|
$ |
133,396 |
|
|
$ |
41,508 |
|
|
$ |
174,904 |
|
Practical expedients and remaining performance obligations
The Company recognizes the sale of natural gas and electric commodities using the right to invoice practical expedient. The Company determined that the revenues recognized as of period end correspond directly with the value transferred to customers and the Company's satisfaction of the performance obligations to date. Furthermore, with the application of the right to invoice practical expedient and in consideration that contracts related to future environmental attributes sales do not exceed one year, there are no remaining unsatisfied or partially satisfied performance obligations as of December 31, 2025.Want the next Montauk Renewables, Inc. revenue disclosure the moment it drops?
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Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 11, 2026 | Showing above |
| 2024 | Mar 14, 2025 | |
| 2023 | Mar 14, 2024 | |
| 2022 | Mar 16, 2023 | |
| 2021 | Mar 16, 2022 | |
About Revenue Disclosures
Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.
Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.