Opal Fuels Inc. · NASDAQ:OPAL
Opal Fuels — FY2022 Earnings Presentation
21 slides from Opal Fuels's earnings presentation, March 2023
Slide 1: Fourth Quarter and Full-Year 2022 Earnings Presentation
Draft 1 02-24-23 Fourth Quarter and Full-Year 2022 Earnings Presentation Fourth Quarter and Full-Year 2022 Earnings Presentation March2023 March 2023 1
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; Access to Chain OPAL Fuels’ RNG Production Existing Projects, Advanced Strong Existing Platform, with Visible Development Pipeline and Industry Embedded Growth T
Slide 5: Leader in the RNG Value Chain
Leader in the RNG Value Chain Fuel Station Services / Renewable Power RNG Fuel Segment Segments RNG Production Fuel Station Services Generation of RNG through capture of landfill Market share leading builder and service provider of emissions, recycling of animal waste and wastewater alternative fuel
Slide 6: Executing Our Vertically Integrated Plan
Executing Our Vertically Integrated Plan Our Priorities Update Secure New Biogas Rights Advanced Development Pipeline(1) represents 8.3 million 1. MMBtu across 19 projects. We added 0.8 million MMBtu to the Pipeline since 3Q22 and continue to work with three nationally recognized waste management
Slide 7: Transportation Fuel Market Maximizes Value Today
Transportation Fuel Market Maximizes Value Today OPAL Fuels’ commercial strategy targeting transportation fuel markets maximizes the per MMBTU value of RNG and creates optionality for future biofuels incentives such as the 45Z or the pricing power to fleets. Fixed price contracts lack these potentia
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 is expected to 70.0 50.0 accelerate as
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: Fourth Quarter and Twelve Months 2022 Results
Fourth Quarter and Twelve Months 2022 Results Three Months Ended Twelve Months Ended December 31, December 31, 2022 2021 2022 2021 Revenue RNG Fuel $ 43,634 $ 33,294 $ 126,830 $ 70,360 Fuel Station Services 13,716 14,880 69,240 50,440 Renewable Power 9,367 12,982 39,461 45,324 Total Revenue $ 66,717
Slide 11: 2022 Results Showcase Operational and Financial Growth
2022 Results Showcase Operational and Financial Growth RNG Produced (Million MMBtu) Revenue ($MM) Adj. EBITDA(1) ($MM) ’21 – ’22 Growth: 38% ’21 – ’22 Growth: 42% ’21 – ’22 Growth: 49% $236 2.2 $61 $166 1.6 $41 2021 2022 2021 2022 2021 2022 Demonstrated strong growth between 2021 and 2022 underpinne
Slide 12: 2023 Full Year Guidance
2023 Full Year Guidance 2022 Actuals Full Year 2023 Estimates RNG Production 2.2 million MMBtu 3.2 – 3.6 million MMBtu RNG Delivered 31.5 million GGE 55 – 57 million GGE (1) Estimated Adjusted EBITDA $60.7 million $85 - $95 million Capex $108 million $220 million - $240 million RNG Production refl
Slide 13: Inflation Reduction Act's and Renewable Fuel Standard Benefits Are Significant
Inflation Reduction Act’s and Renewable Fuel Standard Benefits Are Significant Key Provisions Potential OPAL Impact • Anticipated benefits starting in 2023 for RNG • Tax credit of 6% to 30% of capex dependent on qualifying factors and Investment projects following commencement of operations. Tax Cre
Slide 14: Annual Earnings Power Growth Supported by Advanced Development Pipeline and Public Policy Initiatives
Annual Earnings Power(1) Growth Supported by Advanced Development Pipeline(2) and Public Policy Initiatives Annual Earnings Power ($MM) Additional Tailwinds Other Development / Identified Projects, eRIN Pathway, Pricing Power $565MM+ IRA Benefits for the Advanced Development Pipeline Fuel Stations S
Slide 15: Liquidity Update
Liquidity Update • Strong Balance Sheet with approximately $30 million in net debt, representing ~0.5x 2022 Adjusted EBITDA • Liquidity of approximately $257 million (12/31/2022) o $77 million in cash and cash equivalents including restricted cash o $65 million of short-term investments • $105 milli
Slide 16: Appendix
~ Appendi mPP IX \ \
Slide 17: RNG Facilities and Renewable Power Plants Online Today
7 RNG facilities and 18 Renewable Power Plants Online Today 7 19 ~4 Million Operating RNG Assets Operating Renewable Power Assets MMBtu(1) RNG: Imperial RNG: Greentree RNG: Sunoma RNG: Noble Road Location Pennsylvania Pennsylvania Arizona Ohio Type Landfill Landfill Dairy Landfill / (2) Gas Rights R
Slide 18: RNG Projects In-Construction
RNG Projects In-Construction 6 ~4.7 Million 0.6 Million In-Construction Projects Total MMBtu(1) MMBtu Dairy Landfill: Emerald Landfill: Prince William Landfill: Sapphire Location Michigan Virginia North Carolina Gas Rights Prince William County, VA Ownership % 50% 100% 50% COD Mid-2023 Q423 Q423 Dai
Slide 19: Advanced Development Pipeline Approximately 8.3 Million MMBtu Across 19 Projects
Advanced Development Pipeline Approximately 8.3 Million MMBtu Across 19 Projects Advanced Development Pipeline(1) 9.0 8.3 Million MMBtu Added 0.8 million MMBtu to our Advanced Development Pipeline for a total of 19 projects 8.0 0.1 0.2 7.0 We continue to evaluate new opportunities across feedsto
Slide 20: 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 Leading player to support large scale nationwide Recent Highlights fleet deployment 137 stations in our RNG dispen
Slide 21: Reconciliation of Q4 and 12/31/22 Adjusted EBITDA to GAAP Net Income
Reconciliation of Q4 and 12/31/22 Adjusted EBITDA to GAAP Net Income Below is Fourth Quarter 2022 and Year to Date Adjusted EBITDA compared with prior periods. Three Months Ended Twelve Months Ended December 31 December 31 2022 2021 2022 2021 Net income $ 32,019 $ 21,819 $ 32,579 $ 40,769 Adjustment