Slide 1: Third Quarter 2023 Earnings Presentation
Third Quarter 2023 Earnings Presentation November 2023
Slide 2: Disclaimer
Disclaimer For the purposes of this notice, the “presentation” that follows shall mean and include the slides that follow, the oral presentation of the slides by members of management of OPAL Fuels Inc. (the “Company” or “OPAL Fuels”) or any person on their behalf and the question-and-answer session
Slide 3: Disclaimer (Cont'd)
Disclaimer (Cont’d) Financial Information: The financial and operating forecasts contained in this presentation represent certain estimates of the Company as of the date thereof. The Company’s independent public accountants have not examined, reviewed or compiled the forecasts and, accordingly, do n
Slide 4: OPAL Fuels Overview
OPAL Fuels Overview
Slide 5: Leading End-to-End RNG Provider to the Transportation Market
Leading End-to-End RNG Provider to the Transportation Market Vertically-Integrated, Focused on Transportation Capture & Conversion Dispensing & Monetization RNG Development RNG Offtake Station Construction Credits Plant Construction Electricity Sales Station Servicing Monetization
Slide 6: Solving Climate with a Vertically Integrated Platform
Solving Climate with a Vertically Integrated Platform The Challenges Reducing methane emissions is the most immediate step to slow climate change Methane is more than 25 times as potent as carbon dioxide at trapping heat in the atmosphere The transportation sector is the number one gree
Slide 7: Successfully Executing in the RNG Value Chain for Over 25 Years
Successfully Executing in the RNG Value Chain for Over 25 Years OPAL Fuels has a 25-year successful track record of developing and operating landfill biogas projects and more than 12 years of building and operating a network of RNG/CNG fueling stations 5.2 million MMBtu of annual design capacity acr
Slide 8: Experienced Team with a History of Value Creation
Experienced Team with a History of Value Creation Name & Title Years in Industry Achievements Adam Comora Acquired, built and managed Co-CEO 11 dispensing & monetization projects since 2012 Acquired, built and managed Jonathan Maurer 30+ capture & conversion projects since 1989 Co-CEO Scott Contino
Slide 9: Proven Track Record of RNG Production & Dispensing Growth
Proven Track Record of RNG Production & Dispensing Growth The next phase of our construction pipeline is fully funded from the recently closed $500 million credit facility Dispensing capacity (number of stations) (1) 137 260 >260 68 12.0 Year-End Design Capacity of announced projects in operation (2
Slide 10: Executing Our Vertically Integrated Plan
Executing Our Vertically Integrated Plan Our Priorities Update Emerald has been added to our in-operation project portfolio this quarter. Emerald represents 1.3 million 1. Place RNG Projects into Operation MMBtu of annual design capacity(1) bringing our total to 5.2 million MMBtu across 8 operatin
Slide 11: Overview of Business Segments
Overview of Business Segments Only vertically integrated RNG company which operates in RNG fuels, Fuel Station Services, and Renewable Power RNG Fuel Segment Fuel Station Services Renewable Power 8 operating RNG 2nd largest fueling Established owner of Generation of RNG projects station networ
Slide 12: The OPAL Fuels' Investment Thesis
The OPAL Fuels’ Investment Thesis Significant Operational Platform and Sizeable Growth Pipeline. With 5.2 mm MMBtu design capacity in-operation, 4.4mm MMBtu design capacity in- construction and 7.9 mm MMBtu in our Advanced Development Pipeline, OPAL is at scale today and executing on visible growt
Slide 13: Financial Results
Financial Results
Slide 14: Third Quarter Summary Results
Third Quarter Summary Results $000's Three Months Ended Nine Months Ended September 30, September 30, 2023 2022 2023 2022 Revenue RNG Fuel $20,088 $18,293 $37,468 $48,815 Fuel Station Services 37,305 35,771 88,089 87,376 Renewable Power 13,708 12,486 43,543 32,623 Total Revenue $71,101 $66,550 $169,
Slide 15: Full Year 2023 Guidance Update
Full Year 2023 Guidance Update November 2023 Full Year 2023 Guidance RNG Production 2.7 – 2.9 million MMBtu RNG Delivered 45 – 50 million GGE (1) Estimated Adjusted EBITDA $60 - $63 million (2) Capex $160 million RNG Production reflects delays at Emerald, Prince William, and Sapphire. (3) Revise
Slide 16: RNG Pending Monetization
RNG Pending Monetization (000's execpt Mark et price) Three Months Ended Three Months Ended 9/30/2023 9/30/2022 RNG Fuel FSS Total RNG Fuel FSS Total (1) Stored Gas Metrics Beginning balance Stored RNG 232,434 38,861 271,295 91,681 35,386 127,067 Add: RNG production (MMBtus) 688,039 63,371 751,410 6
Slide 17: Liquidity Update
Liquidity Update • Liquidity of approximately $360 million (9/30/2023) o $327 million of availability under the credit facility o $33 million cash, cash equivalents, and short-term investments o Net debt of approximately $141 million • We believe our liquidity and anticipated cash flows from operati
Slide 18: Vertical Integration and Diversification Create Robust Earnings Profile
Vertical Integration and Diversification Create Robust Earnings Profile Strong operating profile and unit economics Very Attractive Returns across Segments Minimal Ongoing Capex Post Construction - High Conversion to Free Cash Flow Next Phase of Growth Funded with New Credit Facility, JV Partnership
Slide 19: Environmental and Regulatory Backdrop
Environmental and Regulatory Backdrop
Slide 20: Supportive Regulatory Framework – RFS
Supportive Regulatory Framework – RFS The Renewable Fuel Standard (“RFS”) is a federal mandate, enacted by Congress in 2005 with the Clean Air Act, to 1. incorporate renewable content into transportation fuels and is administered by the EPA. • The original RFS renewable volume obligations (“RVOs”)
Slide 21: Policy Support for Cellulosic Biofuels Used as Transportation Fuel
Policy Support for Cellulosic Biofuels Used as Transportation Fuel The EPA’s decision in June’s final Set Rule to increase cellulosic RVO’s to growth levels of 30% each year for the next three years is strong support for the RNG industry providing stability and predictability for D3 RIN prices thr
Slide 22: RNG for Class 8 Trucks – A Green Discount Product for Fleets
RNG for Class 8 Trucks – A Green Discount Product for Fleets RNG Transport Fuel Market Fundamentals Are Strong RNG Covers Less than 1% of the U.S. Heavy Duty Market Transportation fuel market demand for RNG is growing with significant opportunity to expand. BN GGE U.S. Heavy Duty Diesel / Gasoline
Slide 23: Non-Transportation Fuel RNG Demand Is Substantial and Expected to Grow
Non-Transportation Fuel RNG Demand Is Substantial and Expected to Grow RNG demand growth is bolstered by policy support from existing programs like the RFS and LCFS as well as increasing pressure on institutions to reduce their carbon footprint (ESG targets). The potential global addressable mar
Slide 24: Inflation Reduction Act's and Renewable Fuel Standard Benefits Are Significant
Inflation Reduction Act’s and Renewable Fuel Standard Benefits Are ● Significant Key Provisions Potential OPAL Impact • Tax credit of 30% or more of capex dependent on qualifying • Anticipated benefits starting in 2023 for RNG Investment projects following commencement of operations. factors and fut
Slide 25: RNG Fuel
RNG Fuel
Slide 26: RNG Fuels – Segment Highlights
RNG Fuels – Segment Highlights Long-term, contracted for 20-25 years, with assets generating significant cash flows with minimal maintenance capex 5.2 million 8 operating projects MMBtu 4.4 million 6 construction projects MMBtu 7.9 million 19 advanced development projects MMBtu Continue to pursue ad
Slide 27: 8 RNG facilities and 17 Renewable Power Plants Online Today
8 RNG facilities and 17 Renewable Power Plants Online Today 8 ~5.2 Million Operating RNG Assets RNG MMBtu(1) Landfill: Imperial Landfill: Greentree Dairy: Sunoma Landfill: Noble Road Location Pennsylvania Pennsylvania Arizona Ohio Type Landfill Landfill Dairy Landfill (2) Gas Rights Design Capacity
Slide 28: RNG Projects Utilization Summary
RNG Projects Utilization Summary Inlet design capacity utilization expected to grow organically via growth in open and operating landfills and improvements in gas collection Three Months Nine Months Ended 9/30/2023 9/30/2022 2023 2022 2023 2022 RNG Fuel Capacity and Utilization Design Capacity (Mill
Slide 29: RNG Projects In-Construction
RNG Projects In-Construction 6 ~4.4 Million In-Construction Projects Total MMBtu(1) Landfill: Prince William Landfill: Sapphire Landfill: Polk County Location Virginia North Carolina Florida Gas Rights Prince William County, VA Polk County, FL Ownership % 100% 100% 50% COD 1Q24 3Q24 4Q24 Design Capa
Slide 30: Fuel Station Services
Fuel Station Services
Slide 31: Fuel Station Services – Segment Highlights
Fuel Station Services – Segment Highlights Business segment supported by stable, long-term service and CNG tolling contracts with upside exposure to RIN and LCFS Second largest fueling network in the United States Nationwide construction and service platform OPAL market share is 35% - 40% of all new
Slide 32: OPAL is One of The Largest RNG Fuel Station Developers in the U.S.
OPAL is One of The Largest RNG Fuel Station Developers in the U.S. One stop shop, OPAL Fuels’ vertical integration provides reliable supply and dispensing for heavy duty fleet customers Recent Highlights 260+ stations in our RNG dispensing network (1) 50 OPAL Fuels owned stations including 18 in con
Slide 33: Dispensing and Monetization Integrated Solutions Represent a Distinct Competitive Advantage
OPAL Fuels' Dispensing and Monetization Integrated Solutions Represent a Distinct Competitive Advantage Vertical Integration + Complete Offering = Security of Offtake Building Stations… ...Operating and Servicing Stations… …and Supplying Top-Tier Customers(1) One stop shop for clients resulting
Slide 34: Renewable Power
Renewable Power
Slide 35: Renewable Power – Segment Highlights
Renewable Power – Segment Highlights Legacy business with 25-year history based on fixed price PPAs 17 projects / 4.2 million renewable power MMBtu Electric projects are largely contracted PPAs with investment grade offtakers for an average of 5 years Significant incremental revenue potential from e
Slide 36: Appendix
Appendix
Slide 37: Reconciliation of Q3 Adjusted EBITDA to GAAP Net Income
Reconciliation of Q3 Adjusted EBITDA to GAAP Net Income Below is Third Quarter and YTD 2023 Adjusted EBITDA. $000's Three Months Ended Nine Months Ended Setpember 30, 2023 Setpember 30, 2023 RNG Fuel FSS Ren. Power Corporate Total RNG Fuel FSS Ren. PowerCorporate Total Net income (loss) (1) $12,547
Slide 38: Reconciliation of Q3 Adjusted EBITDA to GAAP Net Income
Reconciliation of Q3 Adjusted EBITDA to GAAP Net Income Below is Third Quarter and YTD 2022 Adjusted EBITDA. $000's Three Months Ended Nine Months Ended September 30, 2022 September 30, 2022 RNG Fuel FSS Ren. Power Corporate Total RNG Fuel FSS Ren. Power Corporate Total Net income (loss) (1) $8,213