Montrose Environmental Wins $3M Contract for Emissions Monitoring

(Montrose Environmental Group)

Montrose Environmental Group Inc. of North Little Rock (NYSE: MEG) announced it has secured an emissions-monitoring contract valued at more than $3 million from an unnamed energy company.

Under the deal, Montrose will deploy its resources across three U.S. states and generate data to help the publicly traded, multinational firm optimize its regulatory reporting, Montrose said in a news release. The goal is to provide more accurate emissions inventories that inform operational decision-making, reduce costs, improve employee safety and safeguard the client’s reputation.

“With energy security more critical than ever, this partnership proves that powering the world and protecting the planet are not mutually exclusive,” Vijay Manthripragada, president and CEO of Montrose, said in the release. “Our field teams are deploying software, advanced optical gas imaging and engineering-driven inspection techniques to help clients minimize greenhouse gas emissions and reduce costs. Early results from these types of projects show an approximately 60% reduction in reported emissions compared to default EPA factors.”

The deal comes after Montrose landed a 10-year environmental services contract with the U.S. Department of Defense. The company is partnering with environmental consulting and remediation firm Tanaq Environmental LLC of Anchorage, Alaska, on various projects at Air Force installations around the world.

Montrose’s losses widened to $28.2 million in the fourth quarter, compared to $1.4 million in the same period the previous year. The company posted record revenue of $189.1 million in the fourth quarter. Montrose’s stock rose more than 33% to $23.13 on the results.

The stock has since fallen to $13.97 due to a combination of analyst downgrades, regulatory uncertainties and negative market sentiment.