OPAL Fuels Reports First Quarter 2024 Results

WHITE PLAINS, N.Y. , May 09 /Businesswire/ - OPAL Fuels Inc. (“OPAL Fuels” or the “Company”) (Nasdaq: OPAL), a vertically integrated leader in the capture and conversion of biogas into low carbon intensity renewable natural gas (RNG) and renewable electricity, today announced financial and operating results for the three months ended March 31, 2024.

"First quarter financial and operational results reflect the strength of our integrated business model and provide the foundation for what we view as an important year of progressive growth in production and earnings at OPAL Fuels," said co-CEO Adam Comora. "Benefiting from continuing industry tailwinds that support the capture of naturally occurring methane emissions and converting them into productive, low carbon intensity energy products, we remain well positioned to deliver on our financial and strategic goals over the balance of the year."

"Operationally, we continue to see strong results from our RNG assets," said co-CEO Jonathan Maurer. "Additionally, our business segments' performance is in-line with our expectations, a testament to our team's capabilities in managing our RNG portfolio production, dispensing network, and renewable power assets."

"Importantly, we are executing on our strategic priorities," stated Maurer. "We continue to move projects into construction and operation. We are very excited to announce that our ninth RNG facility, Prince William, has recently commenced operations and is expected to contribute meaningfully as it ramps production as we move through the year. Prince William brings our operating portfolio of RNG projects up to 7.0 million annual MMBtu design capacity."

"Our Sapphire and Polk RNG construction projects remain on track to commence operations in the third and fourth quarter, respectively, and, with these additions, we expect to end the year with 8.8 million annual MMBtu of design capacity. Importantly, we have also begun construction on our fifteenth RNG project, Cottonwood, which has 0.7 million annual MMBtu of design capacity, and brings our aggregate portfolio of operating and in-construction RNG projects to 10.3 million annual MMBtu of design capacity."

"We are encouraged by both the growth we've been able to deliver as well as the quality of our projects, which ramp-up quickly and operate at high levels of productivity," continued Comora. "Looking ahead, RNG fundamentals continue to be supportive of OPAL Fuels' business model and we remain well positioned to achieve our objectives."

Financial Highlights

• Revenue for the three months ended March 31, 2024, was $65.0 million, up 51%, compared to the same period last year.

• Net income for the three months ended March 31, 2024, was $0.7 million compared to a net loss of $7.3 million in the same period last year.

• Basic and diluted Net loss per share attributable to Class A common shareholders for the three months ended March 31, 2024 were $0.01.

• Adjusted EBITDA¹ for the three months ended March 31, 2024, was $15.2 million, up by $16.8 million compared to the same period last year.

• At March 31, 2024, RNG Pending Monetization totaled $20.7 million.

Operational Highlights

• RNG produced was 0.8 million MMBtu, for the three months ended March 31, 2024, up 33%, compared to the prior-year period.

• RNG sold as transportation fuel was 16.4 million GGEs for the three months ended March 31, 2024, up 98% compared to the prior-year period.

• The Fuel Station Services segment sold, dispensed, and serviced an aggregate of 35.0 million GGEs of transportation fuel for the three months ended March 31, 2024, a 8% increase compared to the prior-year period.

Construction Update

• The Prince William RNG project has recently completed construction and commenced the start-up phase of commercial operations. This project, owned 100% by OPAL Fuels, represents approximately 1.7 million MMBtu of annual design capacity.²

• The Sapphire RNG project continues to be on track to commence commercial operations in the third quarter of 2024. This project represents approximately 0.8 million MMBtu for OPAL Fuels’ 50% ownership share of annual design capacity.³

• The Polk County (Florida) RNG project continues to be on track to commence commercial operations in the fourth quarter of 2024. This project, owned 100% by OPAL Fuels, represents approximately 1.1 million MMBtu of annual design capacity.

• The Atlantic RNG project is expected to commence commercial operations in mid-2025. This project represents approximately 0.3 million MMBtu for OPAL Fuels’ 50% ownership share of annual design capacity.

• We recently commenced construction on the Cottonwood landfill RNG project. This project, owned 100% by OPAL Fuels, represents approximately 0.7 million MMBtu of annual design capacity.

<sup>____________________

1</sup> This is a non-GAAP measure. A reconciliation of non-GAAP financial measure to comparable GAAP measure has been provided in the financial tables included in this press release. An explanation of this measure and how it is calculated is also included below under the heading “Non-GAAP Financial Measures."

² Design capacity is the annual design output for each facility and may not reflect actual production from the projects, which depends on many variables including, but not limited to, quantity and quality of the biogas, operational up-time of the facility, and actual productivity of the facility.

³ Reflects OPAL Fuels' proportional share with respect to RNG projects owned with joint venture partners.

Results of Operations

⁽¹⁾ Excludes revenues from equity method investments.

⁽²⁾ This is a non-GAAP measure. A reconciliation of non-GAAP financial measure to comparable GAAP measure has been provided in the financial tables included in this press release. An explanation of this measure and how it is calculated is also included below under the heading “Non-GAAP Financial Measures."

Results of Operations from equity method investments

⁽¹⁾ Net income from equity method investments represents our portion of the net income from equity method investments including $1,430 of amortization expense related to basis differences for the three months ended March 31, 2024.

Landfill RNG Facility Capacity and Utilization Summary

⁽¹⁾ Design Capacity for RNG facilities is measured as the volume of feedstock biogas that the facility is capable of accepting at the inlet and processing during the associated period. Design Capacity is presented as OPAL’s ownership share (i.e., net of joint venture partners’ ownership) of the facility and is calculated based on the number of days in the period. New facilities that come online during a quarter are pro-rated for the number of days in commercial operation.

⁽²⁾ Inlet Design Capacity Utilization is measured as the Volume of Inlet Gas for a period, divided by the total Design Capacity for such period. The Volume of Inlet Gas varies over time depending on, among other factors, (i) the quantity and quality of waste deposited at the landfill, (ii) waste management practices by the landfill, and (iii) the construction, operations and maintenance of the landfill gas collection system used to recover the landfill gas. The Design Capacity for each facility will typically be correlated to the amount of landfill gas expected to be generated by the landfill during the term of the related gas rights agreement. The Company expects Inlet Design Capacity Utilization to be in the range of 75-85% on an aggregate basis over the next several years. Typically, newer facilities perform at the lower end of this range and demonstrate increasing utilization as they mature and the biogas resource increases at open landfills.

⁽³⁾ Utilization of Inlet Gas is measured as RNG Fuel Volume Produced divided by the Volume of Inlet Gas. Utilization of Inlet Gas varies over time depending on availability and efficiency of the facility and the quality of landfill gas (i.e., concentrations of methane, oxygen, nitrogen, and other gases) including the ramp up period for new projects. The Company generally expects Utilization of Inlet Gas to be in the range of 80% to 90%.

⁽⁴⁾ Data not available for the Company's dairy projects, i.e., Sunoma and Biotown.

⁽⁵⁾ Utilization of Inlet Gas % is lower for the three months ended March 31, 2024 primarily due to Emerald RNG project which is in the start up phase as it commenced operations in fourth quarter of 2023.

RNG Pending Monetization Summary

		Three Months Ended
(In 000's)		March 31, 2024
		RNG Fuel				Fuel Station Services				Total
Stored Gas Metrics (1)
Beginning balance Stored RNG as of December 31, 2023			236				58				294
Add: RNG production (MMBtus)			836				77				913
Less: Current period RNG volumes dispensed			(817	)			(87	)			(904	)
Ending Balance Stored RNG (MMBtus) as of March 31, 2024			255				48				303
Value of ending balance Stored RNG using quarter end price (1) (2)		$	13,153			$	5,720			$	18,873
RIN Metrics
Beginning balance as of December 31, 2023			—		Webcast, Conference Call, Earnings, New York, Other Energy, Utilities, Oil/Gas, Sustainability, Alternative Energy, Alternative Vehicles/Fuels, Energy, Automotive, Environment, Trucking, Green Technology, Transport, United States, North America, Back to top | Back to home page LIVE VIDEO EVERY SATURDAY Rev. Al Sharpton 9 to 11 am EST Rev. Jesse Jackson 10 to noon CST LIVE BROADCASTS Sounds Make the News ® Atlanta - WAOK-Urban Berkley / San Francisco - KPFA-Progressive Chicago - WVON-Urban Los Angeles - KJLH - Urban New York - WKDM-Mandarin Chinese New York - WADO-Spanish New York - WBAI - Progressive Washington - WOL-Urban To Reach Us Email: news@blackradionetwork.com news@minoritynews.net news@minoritynewsservice.com Address: Black Radio Network 375 Fifth Avenue New York, NY 10016 Phone Numbers: Ph # (212) 686-6850 Fx # (212) 686-7308 Advertiser Inquiries Welcomed © 2024 Black Radio Network, Inc. All rights reserved. About | Privacy Policy | Terms of Use | Archive