Slide 1: Third Quarter 2022 Earnings Presentation
Third Quarter 2022 Earnings Presentation November 2022 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: Demand for RNG by Class 8 Trucks Poised to Exceed Supply
Demand for RNG by Class 8 Trucks Poised to Exceed Supply RNG 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 • RNG demand growth is bolstered by policy support 50.0 (existing RFS/LCFS programs) and
Slide 7: Transportation Fuel Market Maximizes Value
Transportation Fuel Market Maximizes Value 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 potential upsi
Slide 8: Focused on Executing Our Vertically Integrated Plan
Focused on Executing Our Vertically Integrated Plan Our Priorities 3Q 2022 Update Secure New Biogas Rights RNG projects in our Advanced Development Pipeline(1) 1. represent more than 7 million MMBtu across 16 projects 2. Place New RNG Projects Into Construction Placed Northeast RNG project of 0.
Slide 9: Third Quarter and Nine Month 2022 Results
Third Quarter and Nine Month 2022 Results Three Months Ended Nine Months Ended September 30, September 30, 2022 2021 2022 2021 Revenue RNG Fuel $ 32,381 $ 17,892 $ 83,196 $ 37,066 Fuel Station Services 23,227 10,905 55,524 32,342 Renewable Power 10,942 18,387 30,094 35,560 Total Revenue $ 66,550 $ 4
Slide 10: 2022 Full Year Guidance
2022 Full Year Guidance Full Year 2022 Estimates Adjusted EBITDA(1) $60 million - $63 million RNG Production 2.2 – 2.3 million MMBtus • RNG Production reflects OPAL Fuels proportionate share with respect to RNG projects owned with joint venture partners. • Adjusted EBITDA guidance includes productio
Slide 11: New Regulatory Initiatives – Incremental to RINs and LCFS Credits
New Regulatory Initiatives – Incremental to RINs and LCFS Credits Key Provisions Potential OPAL Impact • Potential for significant increase in anticipated • Tax credit of 6% to 30% of capex dependent on qualifying factors and Investment benefits starting in 2023 for RNG projects Tax Credit future Tr
Slide 12: Annual Earnings Power Growth Supported by Advanced Development Pipeline and Public Policy
Annual Earnings Power(1) Growth Supported by Advanced Development Pipeline(2) and Public Policy Initiatives Annual Earnings Power ($MM) (1) Management defines Annual Earnings Power as the earnings power of RNG and renewable power projects in operation plus our RNG projects in construction at a point
Slide 13: Liquidity to Execute on Our Strategy
Liquidity to Execute on Our Strategy • Strong Balance Sheet with $3.4 million in net debt representing 0.1x Net Debt / 2022 Adjusted EBITDA(1) • Liquidity of approximately $329 million o $25 million in cash and cash equivalents o $46 million of restricted cash o $147 million of short-term investment
Slide 14: Appendix
~ Appendi mPP IX \ \
Slide 15: 6 RNG facilities and 18 Renewable Power Plants Online Today
6 RNG facilities and 18 Renewable Power Plants Online Today 6 18 ~3.9 Million Operating RNG Assets Operating Renewable Power Assets MMBtu(1) RNG: Imperial RNG: Greentree RNG: Sunoma RNG: Noble Road RNG: New River RNG: Pine Bend Location Pennsylvania Pennsylvania Arizona Ohio Florida Minnesota Type L
Slide 16: RNG Projects In-Construction
RNG Projects In-Construction 7 ~4.7 Million 0.6 Million In-Construction Projects Total MMBtu(1) MMBtu Dairy Dairy: Bio-Town Landfill: Emerald Landfill: Prince William Landfill: Sapphire Location Indiana Michigan Virginia North Carolina Gas Rights Private Dairies Prince William County, VA Ownership %
Slide 17: Advanced Development Pipeline Totaling 7.4 Million MMBtu Across 16 Projects
Advanced Development Pipeline Totaling 7.4 Million MMBtu Across 16 Projects Advanced Development Pipeline(1) Term sheets with a utility for a JV with OPAL’s production share expected to be 0.7 million MMBtu of landfill gas. Term sheets for acquisitions of dairy projects and food waste projects t
Slide 18: 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 123 stations in our RNG dispen
Slide 19: Reconciliation of Q3 and 9/30 2022 Adjusted EBITDA to GAAP Net Income
Reconciliation of Q3 and 9/30 2022 Adjusted EBITDA to GAAP Net Income Below is Third Quarter 2022 and Year to Date Adjusted EBITDA Three Months Ended Nine Months Ended September 30 September 30 2022 2021 2022 2021 Net income $ 5,369 $ 773 $ 560 $ 18,950 Adjustments to reconcile net income to Adjuste