Opal Fuels Inc. · NASDAQ:OPAL
Opal Fuels — Q2 2023 Earnings Presentation
19 slides from Opal Fuels's earnings presentation, August 2023
Slide 1: Second Quarter 2023 Earnings Presentation
Second Quarter 2023 Earnings Presentation August 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 at a Glance – The Vertically Integrated RNG Company
OPAL Fuels at a Glance – The Vertically Integrated RNG Company 2nd Largest US RNG Station Vertically Integrated Across RNG Value Operator; Substantial RNG Chain Production Existing Projects, Advanced Strong Existing Platform, with Visible Development Pipeline and Industry Embedded Growth Tailwinds E
Slide 5: Leader in the RNG Value Chain
Leader in the RNG Value Chain RNG Fuel Segment Fuel Station Services Renewable Power RNG Production Fuel Station Services Renewable Power Generation of RNG through Market share leading builder Established owner of landfill gas to capture of landfill emissions, and service provider of electric projec
Slide 6: Executing Our Vertically Integrated Plan
Executing Our Vertically Integrated Plan Our Priorities Update 1. Secure New Biogas Rights Advanced Development Pipeline(1) represents 8.1 million MMBtu across 18 projects. Additionally, we continue to review potential additional biogas projects in our pipeline. 2. Place New RNG Projects Into Cons
Slide 7: 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 throu
Slide 8: Demand for RNG by Class 8 Trucks Poised to Exceed Supply
Demand for RNG by Class 8 Trucks Poised to Exceed Supply RNG Transport Fuel Market Fundamentals Are Strong RNG Covers Less than 1% of the U.S. Heavy Duty Market BN GGE U.S. Heavy Duty Diesel / Gasoline and NG Commercial Fleet Transportation fuel market demand for RNG is expected 70.0 to accelerate
Slide 9: 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 10: Second Quarter 2023 Results
Second Quarter 2023 Results Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 Revenue RNG Fuel $ 16,431 $ 16,459 $ 28,625 $ 31,508 Fuel Station Services 29,956 26,730 50,784 51,604 Renewable Power 8,655 10,028 18,590 19,152 Total Revenue $ 55,042 $ 53,217 $ 97,999 $ 102,264 N
Slide 11: RIN and LCFS Inventory Summary
RIN and LCFS Inventory Summary (000's execpt Mark et price) Three Months Ended Three Months Ended 3/31/2023 6/30/2023 Environmental Attributes (1) RIN LCFS RIN LCFS Beginning Balance 3,428 111 8,074 126 Add: produced during the period 8,038 21 8,669 36 Less: sold during the period (3,392) (6) (5,719
Slide 12: 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 • Anticipated benefits starting in 2023 for RNG • Tax credit of 30% to 40% of capex dependent on qualifying factors and Investment projects following commencement of operations. Tax Cr
Slide 13: Liquidity Update
Liquidity Update • Strong Balance Sheet with approximately $99 million in net debt, representing ~1.1x 2Q23 Adjusted EBITDA annualized • Liquidity of approximately $44 million (6/30/2023) o $27 million in cash and cash equivalents including restricted cash o $17 million of short-term investments • T
Slide 14: Appendix
(1) Appendix
Slide 15: RNG Facilities and Renewable Power Plants Online Today
7 RNG facilities and 17 Renewable Power Plants Online Today 7 17 ~3.9 Million ~4.2 Million Operating Renewable Operating RNG Assets RNG MMBtu(1) Renewable Power MMBtu Power Assets RNG: Imperial RNG: Greentree RNG: Sunoma RNG: Noble Road Location Pennsylvania Pennsylvania Arizona Ohio Type Landfill L
Slide 16: RNG Projects In-Construction
RNG Projects In-Construction 6 ~5.4 Million In-Construction Projects Total MMBtu(1) Landfill: Emerald Landfill: Prince William Landfill: Sapphire Location Michigan Virginia North Carolina Gas Rights Prince William County, VA Ownership % 50% 100% 50% COD Q323 Q124 Mid-24 Dairy: Hilltop Dairy: Vander
Slide 17: Advanced Development Pipeline Approximately 8.1 Million MMBtu
Advanced Development Pipeline Approximately 8.1 Million MMBtu Advanced Development Pipeline (6/30/23)(1) 9.0 8.1 Million MMBtu Moved Polk County from ADP to In-Construction and placed our Northeast landfill RNG project 8.0 0.1 0.2 back into ADP as a potential electric project. 7.0 Not included in
Slide 18: OPAL is One of The Largest RNG Fuel Providers in the U.S.
OPAL is One of The Largest RNG Fuel Providers in the U.S. One stop shop, OPAL Fuels’ vertical integration provides reliable supply and dispensing for heavy duty fleet customers Fuel Station Services Highlights 260 stations in our RNG dispensing network(1) 48 OPAL Fuels owned stations including 17 in
Slide 19: Reconciliation of Q2 Adjusted EBITDA to GAAP Net Income
Reconciliation of Q2 Adjusted EBITDA to GAAP Net Income Below is Second Quarter and YTD 2023 Adjusted EBITDA compared with prior periods. Three Months Ended Six Months Ended June 30, 2023 June 30, 2023 RNG Fuel FSS Ren. Power Corporate Total RNG Fuel FSS Ren. Power Corporate Total (1) Net income $ 6