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OPAL Fuels : Third Quarter 2025 Earnings Presentation (65c1e6)
OPAL Fuels : Third Quarter 2025 Earnings Presentation
About this update from Opal Fuels Inc.
Third Quarter 2025 Earnings Presentation September 2025 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 not express an opinion or other form of assurance with respect thereto. The forecasts should not be relied upon as being indicative of future results. Furthermore, none of the Company or its management team can give any assurance that the forecasts contained herein accurately represents the Company's future operations or financial condition. The assumptions and estimates underlying such financial forecast information are inherently uncertain and are subject to a wide variety of significant business, economic, competitive and other risks and uncertainties that could cause actual results to differ materially from those contained in the prospective financial information. Accordingly, there can be no assurance that the prospective results are indicative of the future performance of the Company or that actual results will not differ materially from those presented in these materials. Some of the assumptions upon which the forecasts are based inevitably will not materialize and unanticipated events may occur that could affect results. Inclusion of the prospective financial information in this presentation should not be regarded as a representation by any person that the results contained in the prospective financial information are indicative of future results or will be achieved. Non-GAAP Financial Measures: To supplement the Company's unaudited condensed consolidated financial statements presented in accordance with accounting principles generally accepted in the United States of America ("GAAP"), the Company uses a non-GAAP financial measure that it calls adjusted EBITDA ("Adjusted EBITDA"). This non-GAAP Measure adjusts net (loss) income for realized and unrealized gain on interest rate swaps, net loss attributable to non-redeemable non-controlling interests, transaction costs and one-time non-recurring charges, non-cash charges, major maintenance for renewable power, unrealized loss (gain) for derivative instruments, environmental credits associated with renewable biogas that has been produced and is in storage pending completion of certification of the relevant environmental attribute pathway(s) and Environmental Credits at quarter end market prices attributable to renewable biogas produced in the period but not yet sold or delivered. Management believes this non-GAAP measure provides meaningful supplemental information about the Company's performance, for the following reasons: (1) it allows for greater transparency with respect to key metrics used by management to assess the Company's operating performance and make financial and operational decisions; (2) the measure excludes the effect of items that management believes are not directly attributable to the Company's core operating performance and may obscure trends in the business; and (3) the measure is used by institutional investors and the analyst community to help analyze the Company's business. In future quarters, the Company may adjust for other expenditures, charges or gains to present non-GAAP financial measures that the Company's management believes are indicative of the Company's core operating performance. Non-GAAP financial measures are limited as an analytical tool and should not be considered in isolation from, or as a substitute for, the Company's GAAP results. The Company expects to continue reporting non-GAAP financial measures, adjusting for the items described below (and/or other items that may arise in the future as the Company's management deems appropriate), and the Company expects to continue to incur expenses, charges or gains like the non-GAAP adjustments described below. Accordingly, unless expressly stated otherwise, the exclusion of these and other similar items in the presentation of non-GAAP financial measures should not be construed as an inference that these costs are unusual, infrequent, or non-recurring. These Non-GAAP financial measures are not recognized terms under GAAP and do not purport to be alternatives to GAAP net income or any other GAAP measure as indicators of operating performance. Moreover, because not all companies use identical measures and calculations, the Company's presentation of Non-GAAP financial measures may not be comparable to other similarly titled measures used by other companies. We strongly encourage you to review all of our financial statements and publicly filed reports in their entirety and to not solely rely on any single non-GAAP financial measure. Trademarks: This presentation may contain trademarks, service marks, trade names and copyrights of other companies, which are the property of their respective owners, and the Company's use thereof does not imply an affiliation with, or endorsement by, the owners of such trademarks, service marks, trade names and copyrights. Solely for convenience, some of the trademarks, service marks, trade names and copyrights referred to in this presentation may be listed without the TM, © or ® symbols, but the Company and its affiliates will assert, to the fullest extent under applicable law, the rights of the applicable owners, if any, to these trademarks, service marks, trade names and copyrights. 2 Financial Results Third Quarter 2025 Results Summary Third Quarter 2025 Adjusted EBITDA of $19.5 Million and RNG Production of 1.3 Million MMBtu (1) 3Q25 RNG production growth of 30% compared to 3Q24 3Q25 Adjusted EBITDA 37% lower compared to 3Q24 driven by lower RIN prices and expiration of ISSC pathway FSS Adjusted EBITDA 4% lower compared to 3Q24 driven by lower RIN prices Maintain full year 2025 Guidance 4 Adjusted EBITDA is a non-GAAP financial measure. A reconciliation of the full year estimated Adjusted EBITDA to net income (loss), the closest GAAP measure, cannot be provided due to the inherent difficulty in quantifying certain amounts including but not limited to changes in fair value of the derivative instr uments and other items, due to a number of factors including the unpredictability of underlying price movements, which may be significant. See pages 22 and 23 of this presentation for an explanation of this measure and how it is calculated. Adjusted EBITDA: 3Q24 to 3Q25 Third Quarter 2025 Adjusted EBITDA Impacted by Lower D3 RIN Prices Across RNG Fuel and Fuel Station Services, and Discontinuation of ISSC Pathway in Renewable Power $11.9 Lower realized RIN price ($ in millions) ISSC pathway expiration $35.0 $31.1 $19.5 $6.6 $30.0 $25.0 $0.6 $20.0 Increased Production $15.0 Professional fees and compensation $2.4 $3.1 $10.0 $5.0 - Q3 2024 Actual Commodity Pricing RNG Fuel Fuel Station Services Renewable Power Corporate Q3 2025 Actual 5 Adjusted EBITDA: 3Q25 to 4Q25 2025 Adjusted EBITDA Guidance Implies Fourth Quarter 2025 Growth Factors driving fourth quarter and full-year expectations: Higher D3 RIN and Commodity Pricing 45Z Tax Credits Increased RNG Production Fuel Station Services Segment Performance 6 Liquidity Update As of September 30, 2025, our liquidity was $183.8 million, consisting of $138.4 million of unused capacity under our $450.0 million senior secured credit facility, $15.5 million of unused capacity under the associated revolver, and $29.9 million of cash and cash equivalents. We expect that our available cash together with our other assets, expected cash flows from operations, and access to expected sources of capital will be sufficient to meet our existing commitments for a period of at least twelve months from the date of this report. 7 OPAL Fuels Overview 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 Convert to Green Hydrogen Steam Methane Reforming Hydrogen RNG Capture & Conversion Dispensing & Monetization Multiple activities generate fugitive, methane-rich biogas Biogas capture systems secure RNG feedstock for the long term Biogas can be converted to create pipeline quality RNG Can also be used to generate renewable electricity OPAL distributes RNG as a transportation fuel to end users across its dispensing network of over 300 fueling stations Renewable electricity is sold into the grid or potentially be used as a transportation fuel RNG used as transportation fuel (US) generates environmental credits (LCFS and D3 RINs) commands a premium to voluntary markets Biogas RNG Sold to Other Natural Gas Users (e.g. Utilities) Sold as RNG for Transportation RINs (1) LCFS Voluntary Markets Landfill Biogas Conversion System Livestock Waste Organic Waste Anaerobic Digester Sold Into the Grid for Everyday Applications ? Renewable Power Generate Renewable Power Onsite (1) Renewable identification numbers ("RINs") are credits used for compliance and are the "currency" of the Renewable Fuel Standard program. Renewable fuel producers generate RINs, market participants trade RINs and obligated parties obtain and then ultimately retire RINs for compliance. 9 Attention : This is an excerpt of the original content. To continue reading it, access the original document here .