Opal Fuels Inc. · NASDAQ:OPAL
Opal Fuels — Q3 2024 Earnings Presentation
30 slides from Opal Fuels's earnings presentation, November 2024
Slide 1: Third Quarter Investor Presentation, November 2024
NOVEMBER2024 THIRD QUARTER INVESTOR PRESENTATION es
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 Biogas Energy Company
Leading Vertically Integrated Biogas Energy Company “Naturally Occurring Biogas” – Long Life, Stable and Predictable Resource with Proven Technology to Create Low Carbon Intensity Energy that is Drop-In Fuel to Existing Energy Infrastructure and Offtake Markets Capture & Conversion Dispensing & Mone
Slide 6: 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 7: Proven Track Record of RNG Production Capacity Growth
Proven Track Record of RNG Production Capacity Growth (1)(2) Anticipated Year-End Design Capacity of RNG projects in operation and construction (Million MMBtu) Represents 2024’s 2.0 million 14.0 MMBtu target into construction net of the Cottonwood, Burlington, and Kirby projects In-Operation 11.5 12
Slide 8: Executing Our Vertically Integrated Plan
Executing Our Vertically Integrated Plan Our Priorities Update 1. Place RNG Projects into Operation Prince William, Sapphire, and Polk have commenced commercial operations. OPAL has 8.8 million MMBtu of RNG annual design capacity in operation across 11 projects.(1) 2. Commence Construction on New
Slide 9: Overview of Business Segments
Overview of Business Segments Leading vertically integrated biomethane energy company RNG Fuel Segment Fuel Station Services Renewable Power 11 RNG 2nd largest fueling Established owner of Generation of RNG projects in operation station network in the landfill gas to electric through capture o
Slide 10: 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 11.5 million MMBtu of RNG design ca
Slide 11: Financial Results
Financial Results
Slide 12: Third Quarter 2024 Summary Results
Third Quarter 2024 Summary Results $000's Three Months Ended Nine Months Ended September 30, September 30, 2024 2023 2024 2023 Revenue RNG Fuel $25,864 $20,088 $63,036 $37,468 Fuel Station Services 45,395 37,305 121,794 88,089 Renewable Power 12,788 13,708 35,119 43,543 (1) Total Revenue $84,047 $71
Slide 13: 2024 Guidance
2024 Guidance Maintaining 2024 Full-Year Guidance (1) 2024 Adjusted EBITDA range between $90 and $100 million. RNG production to range between 4.0 and 4.4 million MMBtu. RNG projects placed into construction to be at least 2.0 million MMBtu. 2024 Capex guidance of approximately $230.0 millio
Slide 14: Liquidity Update
Liquidity Update Liquidity of approximately $285 million (9/30/2024) o Approximately $254 million of availability under the credit facility o Approximately $31 million in cash, cash equivalents, and short-term investments o Net debt of approximately $219 million We believe our liquidity and anti
Slide 15: Environmental and Regulatory Backdrop
Environmental and Regulatory Backdrop
Slide 16: 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 17: 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 18: 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. U.S. Heavy Duty Diesel / Gasoline and NG
Slide 19: RNG Fuel
RNG Fuel
Slide 20: 11 RNG Facilities Online Today
11 RNG facilities Online Today 11 8.8 Million Operating RNG Assets RNG MMBtu Annual Design Capacity(1) Landfill: Imperial Landfill: Greentree Dairy: Sunoma Landfill: Noble Road Landfill: New River Location Pennsylvania Pennsylvania Arizona Ohio Florida Type Landfill Landfill Dairy Landfill Landfill
Slide 21: 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 Nine Months Ended Ended 9/30 Ended 9/30 2024 2023 2024 2023 (1)(2)(3)(4) Landfill RNG Facility Capacity and
Slide 22: RNG and LFGTE Projects In-Construction
RNG and LFGTE Projects In-Construction 7 ~2.6 Million RNG MMBtu; 2.4 MW LFGTE In-Construction Projects (RNG +LFGTE) Total MMBtu(1) (2) Landfill: Atlantic Landfill: Cottonwood Dairy: Hilltop Dairy: Vander Schaaf Location New Jersey Illinois California California Gas Rights Private Dairy Private Dairy
Slide 23: Fuel Station Services
Fuel Station Services
Slide 24: 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 25: 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 26: Renewable Power
Renewable Power
Slide 27: 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 28: Appendix
Appendix
Slide 29: Reconciliation of Adjusted EBITDA to GAAP Net Income 2024
Reconciliation of Adjusted EBITDA to GAAP Net Income 2024 $000's Three Months Ended Nine Months Ended September 30, 2024 September 30, 2024 RNG Fuel FSS Ren. Power Corporate Total RNG Fuel FSS Ren. Power Corporate Total (1) Net income (loss) $6,116 $10,262 $4,393 ($3,664) $17,107 $18,873 $23,053 $6,
Slide 30: Reconciliation of Adjusted EBITDA to GAAP Net Income 2023
Reconciliation of Adjusted EBITDA to GAAP Net Income 2023 $000's Three Months Ended Nine Months Ended September 30, 2024 September 30, 2024 RNG Fuel FSS Ren. Power Corporate Total RNG Fuel FSS Ren. Power Corporate Total (1) Net income (loss) $12,547 $5,530 $983 ($18,833) $227 $9,477 $7,429 $10,584 $