Slide 1: Fourth Quarter and Full Year 2023 Earnings Presentation
Fourth Quarter and Full Year 2023 Earnings Presentation March 2024
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 Vertically Integrated Biomethane Energy Company
Leading Vertically Integrated Biomethane Energy Company “Naturally Occurring Biogas” – Long Life, Stable and Predictable Resource with Proven Technology to Create Low Carbon Intensity Energy that are Drop-In Fuels to Existing Energy Infrastructure and Offtake Markets Capture & Conversion Dispensing
Slide 6: Solving Climate with a Vertically Integrated Platform
Solving Climate with a Vertically Integrated Platform The Challenges Reducing methane emissions, which are 80x more potent at trapping heat than carbon dioxide over the first 20 years, is the most immediate and important step to slow climate change Organic waste from landfills, livestock,
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 onl
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 12 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 (1) Dispensing capacity (number of stations) 137 298 >300 68 2021 2022 2023 2024 14.0 Year-End Design Capacity of announced RNG projects in (2) (3) operation 12.0 and construction (Million MMBtu) 11.6 In-Operation 2.0 In-Construction 10.0 9.6
Slide 10: Executing Our Vertically Integrated Plan
Executing Our Vertically Integrated Plan Our Priorities Update 1. Place RNG Projects into Operation OPAL has 5.2 million MMBtu of RNG annual design capacity in operation and expects to exit 2024 with 8.8 million MMBtu across 11 projects. Projects expected to come online in 2024 include Prince Will
Slide 11: Overview of Business Segments
Overview of Business Segments Leading vertically integrated biomethane energy company RNG Fuel Segment Fuel Station Services Renewable Power 8 RNG 2nd largest fueling Established owner of Generation of RNG projects in operation station network in the landfill gas to electric through capture of
Slide 12: The OPAL Fuels' Investment Thesis
The OPAL Fuels’ Investment Thesis Industry and Policy Tailwinds continue to strengthen the support for the capture and conversion of biogas into low carbon intensity energy products Significant Operational and In-Construction Platform. OPAL is at scale today with 9.6 million MMBtu of RNG design ca
Slide 13: Financial Results
Financial Results
Slide 14: Fourth Quarter and Full Year 2023 Summary Results
Fourth Quarter and Full Year 2023 Summary Results $000's Three Months Ended Twelve Months Ended December 31, December 31, 2023 2022 2023 2022 Revenue RNG Fuel $28,824 $24,343 $66,292 $73,158 Fuel Station Services 46,923 30,039 135,012 117,415 Renewable Power 11,261 12,335 54,804 44,958 Total Revenue
Slide 15: Full Year 2024 Guidance
Full Year 2024 Guidance We expect 2024 RNG production to range from 4.4 to 4.8 million MMBtu. RNG Production reflects production additions from Prince William, Sapphire, Polk, as well as expected growth at in-operation RNG facilities. (1) The Company currently estimates that Adjusted EBITDA for
Slide 16: Liquidity Update
Liquidity Update • Liquidity of approximately $348 million (12/31/2023) o $300 million of availability under the credit facility o $48 million cash, cash equivalents, and short-term investments o Net debt of approximately $151 million • We believe our liquidity and anticipated cash flows from operat
Slide 17: Environmental and Regulatory Backdrop
Environmental and Regulatory Backdrop
Slide 18: Policy Tailwinds to Support the Beneficial Use of Biomethane
Policy Tailwinds to Support the Beneficial Use of Biomethane (1) ~70% of Americans favor the United States taking the necessary steps to become carbon neutral by 2050 Renewable Fuel Standard • EPA set the cellulosic obligation to growth levels of 30% each year for the next three years – providing mo
Slide 19: 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 20: 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 21: 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 22: RNG Fuel
RNG Fuel
Slide 23: 8 RNG Facilities Online Today
8 RNG facilities 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 1.1 million MMBtu 1.1 million
Slide 24: Landfill Projects' Utilization Summary
Landfill 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 Twelve Months Ended 12/31 Ended 12/31 2023 2022 2023 2022 (1)(2)(3)(4) Landfill RNG Facility Capacity and U
Slide 25: RNG and LFGTE Projects In-Construction
RNG and LFGTE Projects In-Construction 7 ~4.4 Million RNG MMBtu; 2.4 MW LFGTE In-Construction Projects Total MMBtu(1) (2) Landfill: Prince William Landfill: Sapphire Landfill: Polk County Landfill: Atlantic Location Virginia North Carolina Florida New Jersey Gas Rights Prince William County, VA Polk
Slide 26: Fuel Station Services
Fuel Station Services
Slide 27: 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 28: 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 298 stations in our RNG dispensing network(1) 49 OPAL Fuels owned stations including 15 in const
Slide 29: OPAL Fuels' 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 30: Renewable Power
Renewable Power
Slide 31: Renewable Power – Segment Highlights
Renewable Power – Segment Highlights Legacy business with 25-year history based on fixed price PPAs 15 projects / 106 MW nameplate capacity in operation with 2.4 MW in construction Electric projects are largely contracted PPAs with investment grade offtakers Significant incremental revenue potential
Slide 32: Appendix
Appendix
Slide 33: Reconciliation of Adjusted EBITDA to GAAP Net Income (2023)
Reconciliation of Adjusted EBITDA to GAAP Net Income (2023) $000's Three Months Ended Twelve Months Ended December 31, 2023 December 31, 2023 RNG Fuel FSS Ren. Power Corporate Total RNG Fuel FSS Ren. Power Corporate Total Net income (loss) (1) $12,276 $10,479 $1,888 ($5,000) $20,093 $22,203 $17,908
Slide 34: Reconciliation Adjusted EBITDA to GAAP Net Income (2022)
Reconciliation Adjusted EBITDA to GAAP Net Income (2022) $000's Three Months Ended Twelve Months Ended December 31, 2022 December 31, 2022 RNG Fuel FSS Ren. Power Corporate Total RNG Fuel FSS Ren. Power Corporate Total Net income (loss) (1) $7,831 $4,521 $3,367 $16,300 $32,019 $32,114 $18,245 $4,681