- Earnings call transcript Q3 2022

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Operator

Good morning, and welcome to the OPAL Fuels Third Quarter 2022 Earnings Call and Webcast. [Operator Instructions] As a reminder, this event is being recorded. I would now like to turn the conference call over to Todd Firestone, Vice President of Investor Relations to begin. Please go ahead.

Todd Firestone

Thank you, and good morning, everyone. Fuels XXXX OPAL Conference the to Third Earnings Quarter Call. Welcome Comora today Chief Maurer; are me and Financial co-CEOs, Fuels With OPAL Adam Jonathan Anthony, and Officer. Ann nine results Fuels those and website available Relations third OPAL at and Investor are of operating our of financial quarter yesterday released results and portion months on afternoon opalfuels,com. year-to-date XXXX from our XX completion The days. be on our available call are presentation also will and access replay and to of after the available call webcast for for this this website

I'd contain Before you uncertainties our that begin, remind we like including that risks, remarks to would call answer involve and on forward-looking this assumptions. your questions statements

our Forward-looking circumstances obligation call to and does reflect it views actual the any statements day from and performance events to not or statements. one undertake date to this contained materially not the are results in OPAL could reflect These Fuels as update of guarantee call. of this statements of differ such after forward-looking statements forward-looking

Co-Chief financial the contain begin commercial will reconciliation Fuels of non-GAAP The Comora, and the now, I'll full nearest measures on providing and open a after presentation. to of questions. highlights call Executive the development in call the And business priorities. to We'll Officer. an review results over Adam measures give our used quarter in overview guidance. update then update, the definition recent measures third by Ann John for results, strategic will of release and this turn due Adam? EBITDA. the year OPAL will operational call included then limited not which discussion Adam GAAP XXXX these will to adjusted Additionally, today's appendix but call non-GAAP including certain measures an and of of

Adam Comora

being OPAL here Thank Good third for earnings call. thank morning, everyone, Fuels quarter for you, you Todd. and

Chairman, Mark brief our before to our proud Comora. accomplish. providing what very seeking I update, OPAL Fuels our read Given to a call, this earnings at public message results are want is discussing and of first are from business a we We

not the world in generate is but it. mission than also only profits Our to a place found we better to leave

in new natural use issue now. stated, RNG of diesel which displacing We solutions in the renewable I would it planet. good it message, our to into truly but Fuels, you. only customers like is valuable a for for remarkable our our entire it is could electricity applications, gas. by and hydrogen, With only us, is can are the for for Simply we time and are of on And a capturing do focus the in and they gas to of and two diesel industrial Heavy-duty gas and change; reducing retail producer associated country. contributors economy. the trucks all we major is than climate methane our there We emissions. backbone fueled emissions. to diesel. customers day emissions. lower the sector emissions the products this by Every by this most transportation greenhouse over transportation and trucks move we Not fuel industry. what the gas diesel Thank These future focused not on our cost a doing investors, reducing addressing significant talk bring of OPAL at a for big but the Today that these are with is future. be very diesel, People are greenhouse addressing the do

advanced production. largest We MMBtu development, XX operators over the developers July OPAL was these year. on to Chief have construction course public and bio-gas in space, is Fuels aggregating now one achievements of of among significant this with the in milestones of million OPAL going Fuels the operation renewable achieved XX XX. over projects or

year. Year-to-date months figures of of the last for X Year-to-date is from projects. XX% EBITDA share is the ownership All proportionate adjusted revenue last up these OPAL Fuels of year. up are from representative XX%

RNG We are two, name in from capacity $XXX on operating earnings approximately increased to from play X.X to a We've EBITDA projects adjusted in-construction power bringing guiding Together into MMBtu. operating RNG name and MMBtu six construction. total XXXX. project our Annual capacity. million of this to call. have million million are is four touch $XX annual we million additional later to added will annual for million facilities designed an to contribute our seventh in-construction $XX a RNG projects which X.X play

grown Our to from Fuels stations by RNG operating owned in XXX are construction. fueling has XX, OPAL including or stations dispensing that network XX either

to enter expect construction development can XX we has million available. X.X advanced MMBtu pipeline, of grown projects representing resource next in months another the Our XX those reasonably biogas XX to

also some experienced certain unexpected well As and relating is in as gas this delays we in be the drops year, to commencement of as construction primarily challenges expected, to projects. completion collection,

the causes these identified will timing Although, going achieving root many, challenges and be the financial for of part disclosed previously public we objectives the have as of have delayed in process. addressed we

updated provide next XXXX in and guidance we we're operation Despite construction a future as under about quite view challenges base March positive earnings projects will We headed. release for in during solid feel where for We growth. these our XXXX. our existing

that annual does earnings discuss call. year, more developed and this XXX approximately strengthening of not we'll be from call, which include projects million, will tailwinds we the numerous over view discuss detail As have power on in during to we this group this the

these visibility ramp from RNG releases in RNG is and out on LCFS stored touch operation and the they years power regulatory in construction to future power periods Annual helps state lumpiness under the power anticipated and periods our of annual provide potential as of me certification after earnings up to that generated projects Let earnings annual construction. of normalize are process. in large partial production, the provide ramp on and contribution gas visibility projects metric up smooth of earnings some The certification, steady meant complete earnings to further. by projects be

that earnings power. general annual estimated underpin the you we've If you materials posted, refer to see the presentation can the assumptions

operating million. in add a for would when million. at our state, of the about annual are in-construction full-year projects, anticipated operating power we generate a steady When be to Our annual approximately XXX earnings earnings power projects XX

upside likely Importantly, add additional growth from pipeline potential of this the in than diesel from a lead RFS IRA, our power tax not in the and new we RIN profitability segments. The require new benefit development will that earnings renewable known five increasing opportunities in which in XX growth or in the potential additional form our capital next RNG years more credit intend for of power which power portfolio and potential provides should to sale of It advanced from to policy our the new projects. production not and for to for the ITC public investment. inflationary biofuel as price as pathway note The transportation RNG would earnings the fuel. upside a is significant profitability important credits, our annual or annual more include could does passage renewable material initiatives pricing incremental pressures these other four The the that Z biofuels. of to offset the business incremental power

power, will of become XXXX. advanced these to our funnel long noting the gas rights earlier a are which to I them expenditures to through support pipeline left minimum is capital course continue our as expected progress of earnings XX our earnings Typically, development. stage agreements grow development required the for over many our additional believe years. resource annual room to are fund It also material future we production these also we of pipeline, over the am growth our energy report RNG worth of are We development To liquidity unlike drill to projects to development to for companies, or complete construction traditional projects once we incur in in place for remind pleased operation. these everyone don't are have with have annual term.

key and with hand In raise credit associated develop cash a to existing reason contracts lock fuel market. a investments today, to are capital price upsides The generated optionality at from are continue a than in are than future which the lower from be price to has fixed XX% price good to addition entering contracts, our projects would we been RIN and we Where half to market ability the also fixed idea less transportation on into our in think price. future you cash pipeline. to it RNG and short-term the can and confident business to minimize facilities up build current access

is other built to into would fossil lose the I our which than optionality view differential associated higher is RNG of nearly typically pricing emphasize discount to adoption. $X initiatives. incremental XX spur commodity Current model. to You gallon This to potential and far regulatory vertically RNG fleets area One want prices, XX prices. integrated is power the business this below prices pricing dollar discount transportation pricing diesel the dollar power. needed with price to power gas as We per also is

Given turn I'll to leading progress we're it and Jon. where over OPAL With about that, we the made the the very position stands excited is industry Fuels we've in. Jon. think

Jonathan Maurer

I'd morning, Thank for the quarter. highlights you, few everyone. like third to Adam and a key of good performance share our

math the say for we've me let First, you. done

numbers our nameplate represent share. of and capacity our production All proportional

adjusted X.X share for OPAL’s First XX.X million RNG XXXX, of the EBITDA quarter MMBtu. production reported of sold we third and of million

MMBtu. of and EBITDA first we of share reported the nine million adjusted months RNG sold For million, the X.X production year, of of XX.X OPAL's

performance of new bringing and strong the attributes, result and of gas fueling natural was new positive environmental market online, projects Our pricing stations with along RNG electricity.

million. EBITDA to we As guidance adjusted year, our the XXXX the of we $XX million are remainder of $XX look to introducing

full guidance XXXX OPAL's MMBtus equity of X.X We the on year our are X.X projects. RNG sold million underlying also based to updating ownership production to

with As adjusted an for trajectory environmental projects production and upward and associated are credit showing certification sales. expected, getting RNG online EBITDA our bringing

helpful said, our to at we Adam power. think As annual it's look earnings

credits, our We today $XXX et have to of where of putting and more all and earnings our natural and LCFS e-RINs, through our is accounting prices operating stand construction related pricing $X earnings into of RIN cetera. our annual $XXX Underlying power power construction before power, prices This per of annual tailwinds tax assumption, operation, gas for projects projects regarding development the we assumptions million. MMBtu. pipeline and expect prices $X.XX, that of existing investment about

portfolio. on our in updates some projects Now

River Project Pine Noble existing Ohio, proportionate share These first our project New we capacity million plate MMBtu the Greentree and Fuels projects During join commissioned projects project three X.X project Road is in operating the these and the in the Minnesota. OPAL name Florida, Bend for in months annual Imperial, RNG the the of projects of Dairy year. nine of projects; Sunoma. year, per

for the for brown to certification estimated its await provisional Sunoma now, expected LCFS carbon pathway and we are pursuant has sold sold we provisional project wait Green car gas Our of nearly of in certification negative while temporary to a intensity. for year operating XXX being first carbon credits. dairy LCFS the XXX for been our project credits the and credits are intensity, an minus continue

Noble project. through expect commissioned the held year to this cutting significant that project to the pursuant and into a is contracts delay. was the its full monetize EPA well entered a come operations its certification This with quarter. occur future Pine key collection, is certification there and our month stakeholders. out few project year. quarter earnings The months of full period, fourth contributor are The This is quarter. last In capability. sold proceeding EBITDA. Turning product having project gas income, issues River gas to project in gas to earlier our August October through ribbon Noble project commenced online period. now the be project its added gas to to store ramp-up EPA in Road was our XXXX. We meantime, associated all in the grow are The early stored operating was certification in being Bend stored with will we ago. we EPA the to these second the schedule lower in being its experienced remedy in capacity received and of for we the project its ahead will RIN New end second Road But in quarter and after more get achieved in months Florida gas during and being the latest the a project is of RINs months and and The few some commissioned, The which expect take and the after adjusted the a recording to shake start

our to Turning construction projects.

project added our RNG in northeast, to the construction. We have portfolio projects Xth of in

dairy and regularly beginning landfill addition, Prince These Bio the William projects, be first through mid-XXXX. as Sapphire good our Vander of continue next Schaaf. projects quarter progress the In in we well as year, to commissioned with and will construction three our and make Town, projects Emerald, three Hilltop

and added have development over Six our in pipeline pipeline, advanced development and MMBtu as Adam Regarding representing bio our projects wastewater. These now nearly construction million and XXX,XXX pipeline, are have of advanced and qualified we XX advanced projects we other to to have the are to mentioned, waste development months. of XXX,XXX XX next ones X begin Landfill, dairy which projects million is identified our XX gas. of and expected food reasonably that within

our we which as makes Being addition, we produce screen tend are the ERI see pipeline or biogas, most in of nine projects conversions X.X best the of include of not MMBtu power and of opportunities. development which marketplace, advanced for dynamic in RNG In the to which RNG growing all pipeline our largest does sector, million evaluating players Pathway. the we the projects, renewable one for

significant So space and been in represent of a largest ahead. of players consolidation sustainability for grow a to seeing demand acknowledgement and years, its our for OPAL in this production growth companies RNG the solutions, set obvious The have Fuels industry to are solution both in and come the that renewable model. a market secured the which industry coming an we're validation is think business production as strategic and that we some to in attributes by especially in world's poised there's the activity is drop that financial renewable fuel have transactions getting with the that only and RNG RNG out benefits

our the driving stewards of our long projects discipline of turn in reiterate continue a advanced long-term With and as we and team excellence focus pipeline, to of stewardship, that I to on I remaining value good Fuels call the we our operational earnings track capital and the portfolio as over capital Ann, the Ann? annual well most employ. best, industry want Before creation. seasoned we and have with operation record while continued and construction executing power OPAL development upholding of the

Ann Anthony

John, to the on earnings year-to-date station come fuel three and across quarter XX-Q of are third participants our the business over and which we We all to morning biggest we ending renewable today's our RNG course period release, to segments, Last you, the Thank our date night, Fuels, for and year. quarter projects of results is the September the results power. press contribution filed good an all fuels, call. see online starting saw detailed where XX, of The RNG services, XXXX. the growth of quarterly driver RNG and past year from have that the strong

during achieves time there's commercial reminder, store a project once which operations, period project a As a of and gas. a is

is four RINs LCFS for certification EPA and LCFS certification and for about waits it months RIN from While XX certification take from can between the Carp. months. to now six to XX running

storing year. forward is is generated achieved. XXXX. sales basis, the had primarily quarter pricing. and gas and segment, operating million. the well the for its monetized. contracts, time, generated sold higher in third in let's credits prior produced driven of We net the higher brown the the XX% fuel is until revenue to a this for as this at X.X expenses and was as look Under and pricing over On by can earlier and be year, Then dispensed quarter entered the third income year. higher up RIN gas into year-to-date year compared volumes gas RNG saw up month quarter, growth and XX% We environmental nine results strong third That incurring during top-line So backdrop project certification we

I environmental prices noted, benefited in pricing As gas fair from attributes, higher we brown market via changes the gains strong in earlier which the from of warrant value electricity year locked as we well forward had as just and in derivatives. and of sales,

revenues. town driven one-time investment by which associated electric support the with benefited million well costs sales from RNG an growth, higher transaction. due in to equity utility principally higher our cost employee going public other costs the project. also royalties G&A were bio from benefits We higher transaction $X.X totaled of to partially million of third These considered offset for quarter as and and costs reflecting $XX.X as one-time gain is our realized costs by higher a

significant million reported discussed benefited September Greentree pricing months the same EBITDA cost through We from pricing EBITDA and XXXX. higher quarter, third of pricing with attribute our by of For have and the for date, costs nine of XXst, year, third from to commodity projects sales hosts on prices. and interest fees standalone via the public to significant higher earlier customers. strong benefited the non-cash results Adjusted XXXX months offset nine note million the The environmental July to with gain partner. then. achieved income for includes million associated utility commodity which to $XX.X net month with we with impact principally ended paid also $XX.X transaction, in in important higher forward It the reflecting two of above, our results higher and also is net a one-time. combination in our quarter from prices arc Obviously, $XX.X adjusted one-time transaction we is our royalties business project we for royalties. Fuel's Transition Corp results XXth, of commodity that for the the we've this higher drivers the operations saw OPAL to sales nine $XXX,XXX a to higher income Clean that higher in related to again, since of ‘XX, and Consistent coupled the side we've plus acquisition the seen and the we going for costs portion like Imperial that the also attributes this environmental combined throughout is locked remaining closing fleet LLC the flip along of dispensing

number throughout also from a which one-time We excluded quarter and EBITDA. costs adjusted of during ‘XX, are had third the

aggregate items, remainder in achieve Third quarter quarter we the during adjusted will from capture once fourth line approximately EBITDA Gas Steward sales which to generate which have we for forward of million certification which also two RINs place we includes XXXX. $X.X impact to of in the the

Van this the be October and will released forward River later A will generated the produced New and but bulk the Pine certification gas quarter. certification, At in under in certification that RINs existing produced gas expect the monetized the gas of third was the and is stored receive the of achieved Q-RIN contracts. we quarter, in time sales portion the stored of second was quarter.

timing the demonstrates to better environmental As a had This purchasing attribute if revenue of and and the us reminder, match adjusted when would the revenue the allows delivered adding accepted value the place. presentation under by attribute value accounting recording EBITDA of of recognized in gas certification to stored generally only we is is principles, costs counterparty. production accepted recognized an with environmental the been of have

$X.X will adjusted reported in be the our it GAAP removed will in same million then quarter, see our You EBITDA the approximately but calculation. net fourth revenue and income from

minute the let's spend balance Now a on sheet.

outstanding under borrowings had project our including of we to term XXth, $XXX.X renewable our financing. September $XX.X power of outstanding related well million As as borrowings million loan as $XXX million of

which certainly or on which RND we be in portfolio August the finance will closed are construction will second remains in undrown. projects that loan and term The of

of term our liquidity the $XXX.X million the capacity of our million our investments million, our our Between of XX restricted $XXX $XX.X position hand, future including cash, liquidity our facilities, cash sufficient operating of short-term of and loans. $XXX.X months. fund million needs development cash and $XX.X investments, commitments on As equivalents, and flow capital credit cash million under and company's anticipated the September undrown was cash to for construction our existing is next XX, short-term

in to space. RNG available continues that, the for deployment anticipate capital also be We significant

to remarkably and newly is do capital grow a how best investors. company, way As long-term deploy attract focused execute, to public power. powerful most also the annual to very are this on Obviously, earnings and effectively we to

call guidance. our our is date be over million. like of current that, and as subject the note EBITDA change. the Q&A, to adjusted to will We for turning discuss full to anticipate guidance to Before published $XX guidance year I'd XXXX I XXXX $XX range all million is

to we range RNG In our guidance million MMBtu. X.X are to addition, sold production million updating X.X

our are As the production numbers earlier, ownership proportional Fuels we've already OPAL noted for of adjusted RNG produced.

assuming that, turn you fourth also price for signed I'll contracts. previously it credits environmental $X.XX we under to we an Finally, forward our of John, sell back sales quarter, the during concluding average again remarks. are at

Jonathan Maurer

pipeline, power in reiterate Thanks, expect projects prepared our to construction XX of Ann. of today's to To conclude the months. next robust sizable as existing that and operating well to our be in the in I advanced want earnings construction remarks, XX projects, we as reasonably development

benefits e-RINs and We have enormous renewable potential tailwind with IRA cost associated our low fuel. with with of power low emissions the pricing

of over Our bringing mission executing our deliver on-track to effective In And we turn to Q&A. facilities in best-in-class call value cost believe operational I'll that are mitigate operate and the closing, we our and is on through the industry-leading, Thank decades for climate strategic RNG fossil to for interest stakeholders. OPAL these for your with online, you change. and operator Fuels. OPAL's priority solutions to construction development, displace knowhow to leveraging through that, RNG fuels liver projects build RNG and reliable all

Operator

[Operator Instructions].

from Stifel. comes from Whitfield Our of Derrick the first line question

Derrick Whitfield

noted on in-construction are delays? is for contributing position are the two your secondly, in rate CapEx With are are while the on projects? with earnings, comment coverage. impacts or parties. And your that construction one relative focus a your your project trend of projects to remarks Wanted rate said, to we've of projects question. to your common observed that prepared backlog, lagging there advancing you're across prior delays projections the deployment all first you to adding run capital expected and in Throughout in my -- to the And themes timing broadly our

Jonathan Maurer

to on here. seems to that second. background we're some eliminate -- question be trying that There hold noise For one

Derrick Whitfield

John, if know. to let I repeat need me that,

Jonathan Maurer

question. here. Sorry. with some No, to deal I'm got trying just I the background noise

I thanks first would but off, of valid. business our say are that targets question. So, earnings the overall still again, power for

completing our really we lower indeed reasons putting There's construction our couple Starting However, our delayed see those. into yes, in a CapEx. And are projects you for key in somewhat that and this. in reassess major the of of projects. latter saw mid some some the to and their part dairy to we of most really last landfill pipeline owners time the year, off owners of take

You probably equity have really the projects. seen sought to of landfill have taking of of that Included I of principal the there's owners an is been that think interests put RFPs these that order their out been in that delay. a overall process really number And some is have some has of development evaluation while these the source there around in pipeline.

best higher disciplined. people value and remain owners in. much have the opportunities. similar counterparties, to side, That OPAL Yeah, but is see the by to into to the Fuels. of on XX-year of trying we price to come the today, there a continue You With offering very obviously people experience market prompted more things fragmented, price, which maybe field lot have seek it's lower dairy don't dairy the high coming enter skills the still background was a LCFS the industry who you in the our but

pipelines -- them have capacity been interconnections most And and didn't been of COVID have In seem somewhat degree seeing, we've and been. think and related, end. been permitting in to but the those some pipeline that development some landfills related the but our where issues. delayed to adequate going maybe we've a the evaluating I have trying lesser the to addition delays dairies And of to to activities this of mitigate

we have the double-edged IRA benefits, are sword here. really a Lastly, which

breaking construction other hand, has cause value we queue And we're the one consolidation need of to our our bit and the projects. on provide, the validating what said On to is our getting provide that the to, time. benefits they our certainly, track people value back where industry these projects in a upside taken the maybe and significant hand, to they jam log have on projects can of feel seeing starting And is the to which tremendous of into RNG. But terms We IRA I the as been little model really provide business. total these. -- get the really business the we've that here reevaluate to of value on of

think pipeline, is overall So, power delayed. think projects said, advanced me we valid, I I are that our development targets as conclude that we by can learnings, emphasizing our stand. And really XX the we're go in in next were in ever. pleased we to we are but feel now than construction we into months with place the which somewhat let And where XX stronger than feel better And really we're a past.

thank Derek. you, So

Derrick Whitfield

on also environment imply your in agile observed stepping XX,XXX competitive for there, well business several In table about you less alter foot you? the maybe made your funded, are I'd it at players over as the level who we've comment view, take there and of call the operating the M&A transactions levels do up, for of these how and the but follow the do well. moment they unprecedented months. like touching Seemingly just your back and are at on last value assets the my as And to Terrific. what RNG remarks your that

Adam Comora

thing. prepared and be flow the when not talking we This larger the we've RNG. businesses business multiples as say machine, gone energy flow his RNG, in we it OPAL building distribution the down and the the sort in of when in and are being model on Fuels impact low of it's chat that may production yields we this our that plants have of there is some thing, a cash Adam validation as value and to extremely the traditional our the or capital validating think free competitive analyst the about and a a just then built. of resource leader terms dynamics our and cash looking we at noticed on this the I'll say did as specifically I'll attractiveness in think then of the Jon more here. is after platform remarks, RNG reports how given We're another the out players may sector. for that and focus And free these building leg sort believe start marketplace. and and maximizing of financial EBITDA may a interesting And of moving into yes, intensity of business of see energy it's we But renewable people

And are So We largest absolutely running by we're and that it's where and maximizing and and pertains our management and we as shareholder to And could through, processes ultimately sort focused likely focus make maybe, of think, along processes. that likely thing there bidding a as of RFPs no team our value. risk building on we shareholder something happening think of return helps these projects there integration, very get and what's that happening. will those this focused We recognized. the do think we those shareholder But, digestion some And be are is here dynamic. value. and we efficiently. adjusted some attractive maximizing in on on investing them consolidation competitive out some positive, mistake, move we that finding think

good building. So it we and we are all-in-all, it's whether think of join noticed have validation fell, do a we we in we

Operator

[Operator Instructions].

line the question Tudor, Matthew Holt next from & comes of from Blair Pickering, Our Company. Your

Matthew Blair

to million. $XX.X guidance, I the some do up implies through QX XXXX you put million if the us simple it versus bridge walk believe QX or sorry we just math, number EBITDA Could just QX the QX? you $XX.X QX of midpoint at So

Adam Comora

Adam and is first I'll take this at Hey it. shot Yes. the

that a of. aware made have were of the quarter some, should from monetized is liquidate there in we a be our So forward couple they data did third of you contracts items and given where LCFS. gain One at sales $X investment, money the that, about biogas million

cost moving third in adjusted and forward that additional headwind in present same better gastric when certification $X there it we and how our for out quarter, third consider do those wouldn't an or second recurring. about been have the that But In And by was in we way to our once necessarily So I EBITDA. the in when also we was for tried million we matching added that million. the quarter. quarter, we EBITDA were came operating waiting the second sales. RNG number, production the had from quarter $X treating our and adjusted

So that million $XX there in third or quarter. in $X about was approximately so million the

Matthew Blair

in QX then the Was might And in re-occur QX? looks high some we the EBITDA third in not backs, and renewable by if electricity pretty Okay. boosted that make that gas natural quarter, prices add power strong.

Ann Anthony

higher for across on entire is yes, Yes, seen you utilities see of side all mean I Ann. flip in typically prices as our projects we've of actually operating the we benefit segment, This the that particularly the that get as do businesses. But well. you

Jonathan Maurer

has gone associated This that with and we retail are out, John another is RNG or we is flat royalty project that, project been eliminated. electric project the down the factor have while our been operating building Emerald

this is associated of project profitability output much a period energy prices with hold during higher it. with the higher So showing and better time

a obviously driver that. it's would of yes, So big

Matthew Blair

higher then any in do And same Have RIN any higher been helped I you so, to by do two been prices? able you have from XXXX locking the Have at think twenty it. mentioned you at some prices. Ann, been that? twenty Got If with that that details in RINs? out by locked results

Adam Comora

Adam is Comora. This Yes.

the it from We a at rule end will people their trading of in And may production. have period the a volume years like I not three There are volumes lot manage regarding waiting obligated think some what new forward this years. out be lot that set for news yet there's XXXX is time, five of XXXX. sold they out of how month guidance yet that any of not coming for or of and EPA be ERA. And the a whether looks

been as now, that waiting holding some we off So of sale of activity. have and forward

Matthew Blair

laid little you question, than current annual assumptions DX thought that your power. were bit I the assumption then for is interesting using you're conservative rent out that earnings more a believe last I And the pricing. were,

little demand? on talk the assumption Are you a think other DX of pricing. about is better LCFS current the supply on hand, could bit So worried about RINs that? I And than potential impacts you then

program? this it the some recent LCFS and of So they're to perhaps constructive to, commentary on tighten Carb you looking up are from like looks

Adam Comora

Yeah, different address. can that this here a in and is I couple of things Adam there

RIN some power XXXX The program guidance to volumes. they the annual for along intimate a at of out set if out later or And in end rent things they continues incremental to a seen play first how earnings there XX at renewable Again, RIN has we those sales days of both the the an that. with when likely manage were could the think source. create interesting assumption it is, potential likely AUL to because be we've as used EPA RINs into finalized created publish XXXX. that XX you be the would comes of a XXX a XXX estimate yet And again, can our RINs is in get as and power achieve And We're our RIN days is days maybe lot well, what below past, has they're good it be likely able already. the it just we to portfolio. although as it And the have from in for business. to month it from

ways How get EPA been different created. going EPA pathway. are in is could been You that It or biogas new talking the to to been talking can that from And don't to this manage about is, we've we've being industry add you And that's we've it manage get potentially additional biona electricity. burning that talking that to solar what wind. process around terrific those from the net. just they or rims about would into be the it

and Washington. potentially XX estimates targets RNG for a And is right constructed or of LCFS XXXX. see credits credits successful out. feel additional large last as the so. for them it be used should But that other pathway. program pricing, dollars excuse number play up California next incentivize excuse that's you come the projects. plays We like which benefit over has from which out XX and over like of we'll me, asked I accelerate total looking I And piece understands between the slightly the out much there think space setting we in handle electricity production new annualized for starting the be And sources and or DC, markets as Oregon and likely does conservative with a believe think that annual think a the demand continue balance There the been they a seen that as increase it'll supported these that of mechanisms to place EPA LCSS the to RINs we're our months that'll the potential what And business. that out for opening hopeful likely about was the above and power, the dairy could carb you hundred is is me, do in credit to be there. And are be a car up or could used I've market. now. look actually and we our being to in a that XX% in continue Oregon earnings how

that the evolving in the it is that of to pricing could projects that CI really really I are value And US low LCFS look say overseas. negative interesting I, project that would be think on and that gas at all find may and price investors markets just projects one. tie say is, and would them really know lot we XXX the ways in different California in are CI to can over generate. judge there world markets and So transport what additional the LCFS thing I into last a an dairy just I here

the at whether that you're are that to not up are or developing. you RFS have other look do giving when in the there rent you markets But Now here. that

So use are as as understand in forward. options we there other our California really certainly you LCFS the gas move But and for price benchmark. this

Jonathan Maurer

as Sonoma, of. for there's floor it's in do Because the more collar diluted, realistic all this, dairy an add, just a lot make assumptions projects that as I again, I power I'll that just over LCFS. there's a of time will we it's to conservative a But actually come moving fluid with I comes Adam important underpinning into for earnings on parts date it. clearly, as Obviously to mindful becomes target. right? with hundred But well, term, system. very It's assumption think long add this dollars have be annual trying for to on no place our and specific said, as we're but mean, just

Operator

Cohen comes of from Capital question Joshua Group. Our next Westbury line the from

Joshua Cohen

think and buyers thanks An Can the additional sector. to environment M&A versus guys staying morning, in my independent now and you potential you're the Good right speak taking interest questions. receiving the how for question on you selling? through from

Adam Comora

to develop value team opportunities this we've question. the more think terrific continue I with to feel to the am to not the we're strong and maximize I of in of business, really really this front RNG. operate tell efficiently us continue win going that new you we this. projects, to and continue got continuing that them like to position have company, We will to platform build answer in a

got free we've Specifically, predominantly and within annual And recently into what earnings value. translates cash as a the shareholder amounts to earning when and sponsor here our enhance do fuel market to OPAL currently significant we're at cash history that company sits power flow. of figuring in free transportation Fuels flow generating of long out

many, So appreciate here. many we see question. win to the And ways different I

Joshua Cohen

a phone calls. got. mean, good independently. But in, sure appreciate I Okay, it's having a to having quite trajectory I'm I situation few that. strong also good a be no

pretty Just seeing what's right on it's industry going incredible. now in

opportunities, you in on up? but those also your a talk specifically it's quick ITC. opening the follow now both additional IRA the CapEx up, magnitude savings benefit can But then more potential planned Just of on on detail the from through as kind of new

Adam Comora

of credit. after guidance Yes, highlight the ITC, at capital one That of the I'll credits about them those a some more have further of guidance rules and modify of that that be project monetize able we try around we friction operation qualifies out of at least things not benefits likely be 'XX that. granularity complete you has it's sort this And to your some IRA will by will here. of which by that's be between noted is like, them. And projects. when that is thing. tax looks beyond. what and but of of you it sell XX% five that cost to percent likely down should tax get costs the coming the there you into treasury do in the these still step in and commissioning XX% about Adam nail the end And you are, the There But in of This when stated terms costs plant. it provide on And of to years it's is to life year.

market anything end project and all XXXX. So that it's construction the of answers structured by

are we with that as fast the to can. going we sprint So be

-- at renewable market, sale of drivers. interesting as C reasons which one to at why those of significant production language already the later. and of is have until advantage works. don't additional through take I hold ITC can of look that likely and at 'XX open so our projects fit also to mean look And $X we room they the We 'XX. tax But motivated could with there, you There there why a these the Those these credits. be That's come is between our overtime. a transportation like sort XX up a bit we credit if in projects -- also come how so biofuels for a portfolio will construction. R&D to sale incentive gallon tax of of little is treasury it's

or a significant. stations. we which tax projects. it in renewal We and potential could interesting we are doing remarks doing partnership in talk we we and as are prepared then whether an There with but credit, available some not carbon production still haven't Still qualify production for in credits potentially others but think hydrogen. we looking also you our commercial, to clean get we at some could carbon investing And transportation those what are fueling really didn't some are end-market, believe it's So really the capture our on hydrogen seen can market. two RNG in about well. replace are There capture use is really believe

Joshua Cohen

the I to that in come treasury out I as with if quick follow bio regards mean that, a certainly almost will just ITC for agree guess guidance favorable I gas. the to

applicable that balance so that project sheet, what extent if capital and the think assume And pipeline, and ability be extent through XX% on what that's capital to case, to raise your to we when currently your what plus the you debt if level would would in expect? extend to further development your you construction than

Adam Comora

benefit. have it an absolutely we provided Ann to looking I'm We've additional now would Yeah, right -- see capital. the at if remaining

Ann Anthony

more and We ability everything in capital a don't least But build have at currently that's a it's perspective, clearly see additional tailwind and debt not. the for I from mean, us. that it number obviously I we we're get put construction liquidity need evaluating from out still a Clearly, anticipate positive really the again, what Again, is we the, we would extends runway, IRA. it. but we can guidance, runway will to the for again, have what on to a We access think do start we that we've until Absolutely. development. stated capital.

Adam Comora

that pressures look build to advanced been pipeline. we've the definitely in other costs look And still our multiples offsetting on way helpful think good is about development pretty its it inflationary seen

Operator

Ryan comes from Piper Our of the from line next Sandler. Todd question

Ryan Todd

years what and to of and pace capital depth execute the the availability Maybe coming last gating able the over are years able on question at it there? the the primary determines pace execution? mean, which have of Is the a development to of over as factors that, project you're which a projects? think of Is here? as next few progress projects you normal you kind permitting so I strong What of pace your progress just follow-up depth is that it since pipeline, you're eventually

Adam Comora

of of our getting condition with that development do control, with project hurting backwards. goes get into project some on you construction availability. third those is items of our that characterized a in is the and parties. about can feel discipline lot fall a caps, with of elements all We good has operation, It a project are just under a not that will really very forward it. construction in once pipeline. A dealing not matter together a It's period surge through getting we Development that but construction. by has reasonably very, capital strictly under, uncertainty of if projects is to but associated start the and just it project It's that development all into to condition, where time that and

in it's ever. shape before, said I than As better

next associated might a help as a basic the that new them documentation our finalizing months, well, get getting pipeline project your into with get these of into are itself qualified rights projects you we with need which not advanced once others of We as with us you it to biogas to that just reminder, that we really parts in And construction and have to when might to the associated talk by the getting, we're feel to together. we're partnership the XX see reasonably reasonable be it, you say But permitting to opportunities that Does third are likely parts be construction many been development basic Many opportunities pipeline, beginning add about meaning dealing Others interconnections. the those which to at question? contract in these the and answer have really XX the subject pipeline enter subject I'll that with we that construction. parties and have along with year. have construction.

Ryan Todd

a and Maybe of you're but to on any roughly rough you provide think you on provide down you, backend going stream Can kind loaded, XXXX of volumes far I MMBtu RNG the Yeah, up I under of line, I how too you to cadence on mean, think specific those projects present that's, way follow provide X projects volumes can million more seven have construction when know you online? helpful. at think that's you any, have, overall about guidance construction, you any the coming come would not rateable, clarity throughout on about XXXX these said.

Adam Comora

Sure.

IRA X.X said But the you're guidance validation power if BS in now, first the we're think be the the We projects course themselves, somewhat project and officially may William landfills Emerald portfolio the feel I and some to really construction terms new is really earlier bio the commercial of think goes the of what right, Digester play to then not in of of see. that industry but town online think about Project next consolidation quarter. not is and as terms towards of targets the of is and projects feel, providing large the you through going mid-year, million being this the form regular we're we of the what those tailwinds to Hilltop all And of doing. Prince end the our our cadence the year and it's We as are that through project you're we earnings in going but Northeast think here, that valid MMBtus the guidance. So mid-XXXX. And coming fairly year, Sapphire be capacity. and the digesters be right delayed, we in

is that what looking we're at. So

Thanks I hope So question. the helps. for that

Ryan Todd

talk regional you last relationship of level, years. of national seeing transportation CNG whether about type think kind corporate Yeah, or it's you're Can inbound kind you're growth what the a that one over of or you at level growth, demand on, of direct-to-consumer few one. a that's about the very pace helpful. level what Maybe how or next even seeing and

Adam Comora

of the things our at is make our a with we've in this of you think right number is if attention been getting I lot companies. elevated some -- pretty it's Adam a business and business. it's embedded question. there's price diesel of And happening for RNG a the there's PNG that This business, Quite interesting of fuel business these just got here. Yeah. And RNG. some prices, service is sense frankly is see of benefits some you'll growth was diesel Thanks a there now. there station really And part what of driving the it, of I When I funny, diesel lot for one. exhibited. at to look look traction think number

it interest testing first will trucks put are targets, in There they covenant year renewable deployments couple some there We are natural units year. thinking to deal commercial next achieve very and year, and build so will sort advanced on this really that quarter and vertically there end A people And of to; in going if people large lot be visibility fuel going think in earnest engine. his of a going testing and where And that's to a throughout diesel two of fleets. gas. reliable and potentially sustainability they for goes production B, as XX-liter out there in and seeing next strong $X year introduced out can about those progress. be you their pretty where we And excited going gas the start to scale us to those national be beginning next things is together very that running by really the $X big deployments integrated combustion see pricing these be those get a about are and And that. chance engines with power position are using a that's accelerating natural RNG we into of unique

Operator

the At turn to this Comora you. closing would like I conference for time, to back Adam Thank remarks.

Adam Comora

We want a participating Thank And quarter great much more Firestone, look please everyone have dialogue. very Fuels, you you All continued Fuels VP to about if OPAL Relations, third our of in call. day. OPAL Todd and learn earnings forward out to Investor and to reach for engagement right.

Jonathan Maurer

Thank you, everybody.

Operator

conference concludes Thank call. today's participating. This for you

You may now disconnect.

OPAL Fuels (OPAL) 15 Nov 222022 Q3 Earnings call transcript