10 Worst Performing Utility Stocks in 2024

3. Montauk Renewables (NASDAQ:MNTK)  

YTD Performance as of October 15: -36.36%  

Market Cap as of October 15: $814.27 Million  

Number of Hedge Fund Investors: 13  

Montauk Renewables (NASDAQ:MNTK) is a leader in the green energy sector, specializing in converting waste into green energy. With over 30 years of experience, Montauk Renewables (NASDAQ:MNTK) has pioneered the landfill gas-to-energy industry, turning biogas from landfills into renewable natural gas (RNG) and electricity. The company has also expanded into the agricultural sector, focusing on anaerobic digestion (AD) technologies that convert waste from dairy and swine farms into RNG.

The demand for RNG is expected to grow, with a regulatory environment increasingly favorable to RNG producers. Programs like the California Low Carbon Fuel Standard (LCFS) and similar initiatives in Oregon, Washington, and New Mexico offer incentives for low-carbon fuel production. Montauk Renewables’ (NASDAQ:MNTK) dairy and swine RNG projects have exceptionally low carbon intensity (CI) scores, with dairy RNG averaging -340 gCO2e/MJ and swine RNG at -347 gCO2e/MJ.

The U.S. Environmental Protection Agency (EPA) estimates that over 8,000 U.S. farms could support biogas recovery systems, representing an energy potential of more than 170 million MMBtu per year. Montauk Renewables (NASDAQ:MNTK) is well-positioned to capture a significant portion of this market, especially in dairy and swine farm RNG production, as only a small fraction of farms currently produce RNG.

In the next 5-10 years, Montauk Renewables (NASDAQ:MNTK) is expected to capture an increasing share of the RNG market, driven by its low-CI projects and favorable regulatory landscape. The company’s focus on high-return projects further supports its long-term growth prospects, with potential cash paybacks on capital investments within 2-5 years. The company is forecasted to grow its earnings by  62.5% this year. Industry analysts have a consensus Buy rating on the stock, with an average price target of $6.31, indicating a potential 10.68% upside from current levels.