OPAL - Earnings call transcript Q4 2023

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Operator

And welcome to the OPAL Fuels Fourth Quarter 2023 Earnings Call and Webcast.[Operator Instructions]I would now like to turn the call over toÂ Todd Firestone, Vice President of Investor Relations to begin. Please go ahead.

Todd Firestone

Thank you, and good morning, everyone. Welcome to OPAL Fuels Fourth Quarter and Full Year 2023 Earnings Conference Call. With me today are Co-CEOs, Adam Comora and Scott Contino Chief Financial Officer.Â OPAL Fuels released financial and operating results for the fourth quarter and full year 2023 this afternoon, and those results are available on the Investor Relations section of our website at opalfuels.com. to our of website. access also call and on available presentation the this webcast are -- After will XX be of available completion today's for days. call, a replay

you clean Before our involve risks, contain to I'd assumptions. we which remind and begin, forward-looking statements, remarks to answers and uncertainties your questions like that

of are is statements. such contained guarantee actual could performance, statements Forward-looking a differ results in and not materially what from

this to presentation. such and So forward-looking differences undertake described Fuel forward-looking cause all reflect or update call. factors views X our that does statements to on date call, events our X reflect circumstances attribute of the of These of can statements Slide not of the and after obligation to are as any this OPAL date

will the certain definition of release call of the an measures non-GAAP then in you reconciliation will discussion in a recent Scott financial strategic Jon today's non-GAAP and of priorities. after Adam the give call of contain by included appendix A development and and operational to update, measures the these used measures on results. overview will the of and presentation. GAAP measures. mere business review update highlights which quarter's our our commercial and give will results the providing Additionally,

call We I'll turn will Adam And questions. of the then Fuel. OPAL the Comora, open now for call Co-CEO over to

Adam Comora

tailwinds. recent which morning, to and Good thank is industry, and fundamentals in on OPAL highlight this you to well plan and points grow Todd. execute everyone, XXXX like expanding Full results continues from market strong Year in quarter's is several Quarter you, Earnings Fuel's and business Thank and its for to developments. Fourth experiencing I'd Fuel participating OPAL our positioned Call.

results all quarter monetization for quarter positive quarter fourth strongest including by an $XX million, our credits XXXX were guidance. OPAL in the the million driven for year of was the as in RIN fourth recent XXXX history quarter. First, full station for continued the a the and most $XX of The held improvement results environmental XX% benefited third and the our from meeting fuel segment from in and quarter Adjusted increase portion sale, stronger EBITDA service prices. from expected,

our with of largest generating began selling RNG project GFL is XX-XX from line December. We joint America Emerald, expectations. in in production Second, North venture one growth in the the and projects showing project with in and

finalized, industry will the for by be support bill through by this letter not offered Brown, comment rules. Third, at for not At came should house eligible of will are numerous Section design credits projects equipment the began we from of the approximately but cosigned noted X.X although the River we to continue megawatt members a the make remaining MMBtu electricity on sometime in tax encouraged of operation. a end X.X the and that is stating issues. a with that construction, the we biogas new on equipment. of and capacity our inclusion in of hopefully only Senator the in end saleable ITC property XXXX, after year as structural commentary RNG ITC, to expect renewable the which from letters also up Fall the final sponsor X.X It IRI believe published technical utilize final this that including will March couple of include to be clean clearly MMBtus senators good which expecting ITC intent in biomethane rules XX of we by landfill progress are which provisions.We million Fourth, XX, treasury annual recent conditioning million facility cleaning construction

also turn from $XX and education a XXXX in XXXX. to countless rules treatment have in thinking for supporting we're for growth product low-carbon the is add fleets year flows capturing expected EBITDA to to support benefits this investment new societal for be Americans. providing should would fuel of our continued in segment detail in EBITDA upward advocacy, has And bipartisan production included from the greater station to engines, and go improving common energy net the projects broaden also fuel that current our we income, coming potential from which major this facilities, and station agricultural municipalities XX% to and But and see of lead our say, these strategic the to all several to into energy set change, landfills over XXXX. have trajectory new million climate is to I'd excited converting as services for quality in socioeconomically outlined testing service continue security the air for adjusted that including our potential fighting we I'll gas that, and successful our annualizing With XXXX into our increasing year, by numerous like impact growth RNG over downstream wastewater beyond XX-liter Jon. EBITDA adjusted online growth range value greater guidance challenged is continued are to powerful in into XXXX, natural interest while $XX and million, next approximately providing it emissions XX%. will and own sector, up million biomethane construction. from million grow can industry, to opportunity forecasted encouraged Although about economic $XX Jon cash we in push needless of for usable strong years. all and our between intensity the significant opportunities. to XXXX. also very resulting Jon? regarding set which Americans, Scott resolution XXXX, not communities, $XXX outlook and driving plants how Adjusted and

Jonathan Maurer

our year-end of We're accomplishments morning, proud everyone. in fourth and XXXX XXXX you, of Adam, the Â Thank results. quarter and the good

for at now in project XX this RNG we RNG which to a X.X year. Production is That of million year-end ended the is up detail XX, XXXX. projects with but and on Emerald will year-over-year. months production have expectations. annual line operation increase million production expected roughly capacity X.X the in Scott MMBtu year's X RNG from more RNG give of year. increase online, MMBTUs X.X was this we're MMBtu is an was MMBtu, XX% number significantly expecting with design X.X XXXX, December million Importantly, this guidance, million

gas and X.X we which approach annual is of operations. operate well. an annual one X.X-megawatt which Commissioning projects in venture $X.X of design proceeding is in project, $X.X equivalent. share design million which County, capacity to also of commencement track XXX% is third million MMBtu the to mid-XXXX. as to of XX-XX of projects, we mechanical Construction begin the design expect to GFL it electric continue X.X plant progressing, addition commercial joint representing Sapphire, contribute continue currently will operations In weeks begin of have X.X completion. project, X.X on XXX% SJI own our which design to million reached also operations in we biomethane project, RNG capacity XXXX.Our will first William, million additional MMBtu and construction the our represents in Florida put XXXX in into fourth Atlantic, Atlantic has of MMBtu with X OPAL. landfill construction, RNG annual we operating projects design annual we is quarter Prince which MMBtu X capacity coming new third own million quarter it in we capacity over the venture where begin represents on representing and of joint Polk to MMBtu we is and the to the and capacity quarter year. track million of of operations net MMBtu this OPAL

electricity mentioned, X.X I our approximately by MMBtu began XXXX, in begin fourth we River of utilize year-end. is quarter renewable of which and As will million project the operations of Fall slated to biomethane X.X construction equivalent also megawatt

dairy Valley are Central projects to dispute. contract delayed X due Our a

timing We MMBtu represent and million this design these of to dispute, timing and updates construction impact expect we which X.X proceeding further operating to projects, Together, X plan projects the of forward on move we capacity. as process our an give arbitration almost year. is RNG this to

to million this MMBtu construction X.X into RNG least at year. expect projects of place We

for the partners facilities productivity of the actual availability resulting the volume production to the biogas rates fields. at design inlet to utilization volume well OPAL XX% design with regarding is into within it generally design XX% expected capacity project executes for in will inlet of mature the product additional the And on gas additional landfill inlet landfill the new of construction As RNG said of of of both of expect of power existing gas. capacity available compared Scott to XX%, over utilization utilization to continue the quantity XX% were Scott? and these We on into that of turn ranges, in new the we should on quarter, believe facility the relatively the and utilization This capacity we of biogas the open their added quarter's we biogas by guidance. the system and Utilization the percentage RNG and a we the continue in with provide RNG opportunities, along to the on metric providing output our production I'll with growth RNG fluctuations renewable of given and converting relevant facilities be With improvements sector financial that as in measures projects. the additional our R&G. how our gas, operating facilities all relationships our the capacity and measures X are our somewhere in efficiency detail stable in we, collection we growth continued inlet year. the make our performance at inlet to divided design range facilities quality It's second and landfills. and this across the utilization inlets in between projects based period. growing the future.Last begin expect opportunities coming gas metric at that, to metrics: increasing the discuss foreseeable expect and We period, measure detail started into simply of

Scott Contino

Last call. release and December press today's participants results night, and year XXXX. good to detailed we the Thank you, Jon, on our which earnings quarter for XX, the our quarterly filed all ending morning

be will XX-K filed Our tomorrow.

up and the fuel presentation million the increase XX, $XX improved fourth method for as timing station increased The including the to Services in from driven production increased XXXX, of to in growth to quarter earnings updated credit of million LCFS well quarter. XXXX. results the and partially quarter. but result a coming provided station quarter third-party sales and grew fourth online $X.X due increase credit Compared the to revenues versus for MMBTUs fourth MMBtus the million was marketing of quarter driven to our biogas revenues $XX of timing largely reduced this fourth in EBITDA projects million million third revenues of The fourth margins. X.X the Adjusted and of our pricing quarter combination as main segment. million RNG fourth same-store revolving our Looking million quarter the in quarter. as the where environmental RIN to quarter The this The over at the year. from Adjusted production RNG grew sales, XXXX, $X.X $X.X reconciliation results our in period was as million from release other equity joint This in revenues the all $XX.X the compared in Emerald increased last by primarily of to third in well months primarily in in entered website. our as morning into as coming BTUs. to segment was increase million sales as million fuel senior in credit GAAP the $XXX and the due fuel quarter. environmental was in RNG X.X secured online. compared difference of is due Emerald compared also improving diverted quarter, RNG December third by million environmental quarter services, RNG facility. mentioned, on million sales XXXX, supplies.Net fuel the from of the as we compared coming MMBTUs credit. Emerald Alberhill to production million was million period third MMBTUs Renewable to X.X the $X.X XXX% Emerald quarter $XX.X million was EBITDA the in primarily decreased $XXX driver we $XX million for agreement in for to venture September, services fourth yesterday comparable an recognition investor The to draw both for $XX.X to and segment our Revenue is the term the income $XX $XX.X for RNG the production ended the dispense fourth margins fees, $XX million provides a credit for A million third loans projects was timing XX for compared operations the and was The to revenues sales, was and concurrent of in Last as quarter for new $XX.X project. credit online. XX-month investments. RNG in Power the million station to to at increase of

XX, $XXX on December was drawn of XXXX, down the approximately million As facility.

As XX, liquidity of of equivalents of investments. cash, short-term was the December $XX million of under $XXX availability cash $XXX credit million, million and facility XXXX, and consisting

feel access and and I'll we our other guidance. sources to resources our for capital to result, sufficient of year's capital a As turn liquidity growth this are plans.Now

per For $XX full per gas assuming RIN LCFS. guidance, and DX metric MMBtu $X year $X XXXX ton brown

year million $XX $XXX to and million We expect to million RNG XXXX X.X our full EBITDA adjusted to be be MMBtus. production X.X to million

one, include project not RNG get the result startup guidance of increase two, approximately $XX do would in ITC $XX of capitalized. from adjusted note: Our not that items development resolution; several three, of monetization $XX and of income million potential does million, proceeds cash and XXXX EBITDA favorable million costs which approximately of and pending

has impact as are and other disclosure now statement. thought our if and a significant with production income from associated sense OPAL we item facilities. is sold been is longer costs. in although ending as trajectory As so quarter period reminder we costs December to no Effectively, that as not EBITDA, December calculation a important balance. A on production recognizing are item represents start-up the such XXXX significantly.One include of XXXX detail inventory recorting investors have credit production growth RNG with having LCFS large operating production revenues obviously would development XXXX as have the we state noting credits each value recognized our monetization our we not worth continue of on to but and sold as disclosed that We in XXXX costs be we our our yet results, well while results provide be This pending steady our transferred line quarter, can EBITDA a company give our impactful breaking weren't RINs RNG. out plant RNG that a the of adjusted associated as our growing December the or last and we this our a this where adjusted XXXX separate

and Prince not to from include virtual pipeline adjusted $XX For development until expense pipeline that used will a EBITDA added a William start-up is permanent be costs the back operating for XXXX, operational. million plant

marketing compared increasing revenues stations coming network, want to EBITDA color continued XX% improving to provide where the station dispensing in grow also new by through to on driven XX% RNG services We OPAL results by primarily we XXXX, and trends adjusted anticipate to fueling margins. our fuel some online segment,

at approximately $XX associated which to expect capital to $XX total and million relating with owned We investments $XXX method venture million, XXXX year includes and stations. joint downstream million wholly full approximately expenditures equity approximately projects

mention just controlling announcing like to Class back Before single earlier week release our press Fortistar, to B shares the our that entitled are this it stock, to I XX.X a I million shareholder, exchanged vote Jon, has that of would turn high vote. shares

common eligible As stock our Class traded a become our portion reducing with units indices. anticipate for will inclusion certain control, publicly noted, market voting Forestar that we A press in its significant of stock

for Of OPAL turn will no to remarks. I'll be concluding indices. Jon it in that any that, back course, are there included assurances With

Jonathan Maurer

energy Fuels. pleased and We OPAL's deliver that Scott. with and for projects cost-effective back And change. our operator we reliable climate fossil to you, mitigate interest industry-leading, for you that, and with execution in committed remain success low-carbon turn mission products display continuing furthering Thank to operate best-in-class intensity Q&A. biomethane closing, In OPAL of Thank plan. business the build conversion call that capturing the integrated the to in are the your fuel all I'll over vertically

Operator

a moment Instructions]One Q&A [Operator be after. compiled will

Jon comes from with Stifel. Ennis Our first question

John Ennis

RIN about think we to sales than this weighted first with this think more year? prices of equally current For start favorable more my about how we the being timing should one, Should last year DX year? it

Adam Comora

Yes. This thanks here and question. is for the Adam

RINs to would and And throughout or that, be they're of vented We forward far, uniformly our generated anticipating I transferring are approximately hedged production. as pretty selling our thus also half and sold we've the add year.

John Ennis

Makes sense.

for this For the the year. service to you're hearing on[Indiscernible? this my additional station Could feedback And fuel of related guidance the EBITDA coming drivers some growth? strong maybe on that, color the latest what's offer follow-up, you imply growth

Adam Comora

still again. Thanks This is Yes. Adam.

it. of delivering dispensing drivers this also a year at segment also we're prepared earlier not is XXX% we're As network. from JV segment. be more third-party fueling a the then set stations from mentioning and continued set generating And number online up that improving fuel growth came service production. the It's fuel construction suppliers. seeing that we're it's Fuel excited own we're projects in XXXX RNG coming really and side up to benefiting station numerous the And The online from of the trends year. of Scott profitability last sort strong then and our really really network those utilizing And we've that the OPAL lot was that more primary business. in service year comments, for only mid-year through dispensing about then a And and the are that as annualizing also

good engine. it. that So XXXX And hearing for feedback XX-liter year driven this are growth really beyond. a what is been year still this are but by looks show that be in feedback XX-liter to going being on good will business has 'XX we its results not development new and That and up and strong, the activity period, is through engine drive testing really as the year

Operator

next for One moment question. our

comes Matthew with from question next TPH. Our Blair

Matthew Blair

a had Â I CapEx. the question on

So I think a per been few were CapEx you Could are a numbers project, dairy point, have where MMBtu one of maybe guiding to today. a at came out us ago, call might landfill for MMBtu it years it, roughly that per give you about $XXX those to, sense a project. for $XX

Scott Contino

Contino,thank for you, Scott is your question. This Matthew,

CapEx. I think on the to we're to going to back you dollars per for have MMBtu get

Matthew Blair

safe there the Is Okay. just that -- in been to unit it there ization say is cost? some has

Adam Comora

Adam This we the There's there have X was inflation Â Yes. no is been last here. math trying I that to that at last more projects are doubt over the on years. do construction into putting just here. looking And the several some cost

little do some doing also of one -- months things seeing to CapEx a estimations. but a project been X things a calculate there some come MMBTU. seen to differently We'll is together quite what have -- to reduce to construction to ways are ballpark out of back working the for X last of so bit from thumb bit opportunities we've we're as cost that or reduce putting level Jon of see standpoint those on at here and perhaps is rule you internally We initial where those there. I the over some that looking some

up to right is you So $XX. an I the from don't give number now. exact want it

up have certainly, projects also and a projects that construction there's we out, that be I see into that very we ITC. paybacks return still helps here. extraordinarily to seen And still see good going on at good these But We question level projects. and we're put on capital looking coming on as know

Jonathan Maurer

for million, $XXX landfill you're but Matthew higher what of that is onward, than citing costs $XXX significantly we're projects. the experiencing

$XXX that the being and that be the substantially landfill seeing is of where dairy While our cost are more costs for but focus may be appropriate on well Obviously, projects. similar, dairy projects, projects MMBtu. per landfill below output lower might than we're

Matthew Blair

Sounds good. guide XX%. production the XX% And RNG then of regarding to

of streaming what that so, coming to projects XXXX X.X% and this I like at actually from with cited. would And think just existing QX on higher be new part least seeing that the of Is as well? the at growth It you're that implies what rather XXXX. plants looks growth you driving your higher if utilization? is utilization than

Adam Comora

about how Yes. to question. our that goes Thanks for were for the whole guidance year. we And thinking it

there. projects our midpoint may X.X%, there there So be operating from some that billion is $X.X when the about guidance got today. are But of that follow-ups we've production in

you're about partners. So our you with product XX% in at to We're ways as open looking projects design if over and same-store at X.X growth landfill looking as think improve the X.X% our capacity. growing that we've at at capacity, always gas noted disclosures, to at collection look we design our sales they're landfills. expect I continue And do on the output

continue they So we these as do facilities expect grow to to mature.

comes and as from look commissioning is Polk, year, the which Prince of at bulk you phase. our Sapphire has about we're from it this $X million happy entered William, completion William, when it the mechanical Prince really it So and guidance of

Operator

for our moment One next question.

Pfingst Our B. Riley. next with comes question Ryan from

Ryan Pfingst

sold are production. attribute of or share and half there? forward associated about enviromental Â Adam, hedged you mentioned what you you prices Can the your gas

Adam Comora

averages induce So something feel yet a are get which on try it, it. for the not and look that the piece, or you nat of can feel we to And at. at have looking sold we we environmental piece like gas forward the

Ryan Pfingst

rule the much price for you're with just there how of a compared the realize? about into realized RIN OPAL's price able Okay. sales to you leads that refresher we provide thumb see And prices? how should in on next might general what my Could average a to of think follow-up. Is us we

Adam Comora

Yes.

brokerage commission we've some typical in terms disclosure or OPAL. for what think there of are I fees in got

do I in the pricing we And don't And index price. so we've necessarily that got We pick on transact our disclosure. pricing. believe and sell at

So have we over is given guidance price just we but that our have index-based you assume our for where year. average pricing, don't can sales may the

Jonathan Maurer

Jon. is this And

important mind RIN integrated go keep of business a our would XXX% output, in it's portion really to as upstream realization, vertically model and on terms we the price side to the where fueling both the the business. on capture In station portion the that the of downstream side of

the we out the really brokerage. obviously, So in there. pay capture -- full addressing, we value what Animals might in chain

Some done of done without third others a are directly trades deductions, our brokerage are party. through

Ryan Pfingst

event piece. any Is That's it. And there contextualize for that looks in or the the development this helpful reason pipeline to the quarter. Got like deck then excluding it release included wasn't here? that

Jonathan Maurer

This Jon. Â Yes. is

of question, Ryan. projects completed. our million after more now that our to when current and be of and associated was pipeline projects conversion concept the for this looking with completed of a we are, was scheduled thanks that meaningful. The company smaller million So to fact, with somewhat X.X go in RNG phase were XXXX We're the $X.X nameplate exit public year are

us shown factors availability that vertical there our those period out is and the a opportunities our pipeline of and are adds our that operating in the other that of in the lot less combined set really and attract really front-row meaningful. now bringing partnerships projects in that partners high integration We've the excellence of gives an that us So more projects online really to also development marketplace. a of ramp-up seat with opportunity --

construction. industry in the achieving changed. will that do we us million So X.X that we're of the seeing giving guiding doing into that couple in we've assist of we're been the continue has goals. years nothing last those here really the with that believe today. greater we're see guidance tailwinds over cadence MMBTUs that to We But will than The

Adam Comora

really that metric like in were The capture to are I just looking the prospective -- prospective much that Yes. opportunities opportunity add and that. on it fuels that unique meaningful set to we're would between how we've thought ADP, doing, it stuff the call feel And doesn't opportunities thing at. full delineation what only what we didn't little is that of delineation was would if we does , that than we a greater OPAL was a we're describing it got

Operator

our One moment for next question.

Martin from question Jonson Our Company. Malloy with next Rice & comes

Martin Malloy

about realize to role. Slide And and would love spend fairly and might I Could about some to I power market generation biomethane prepared that how you history mentioned for economics you generation a OPAL in time important power using play also, think, talking your was XX, market of company of of early ask maybe remarks. that I a that OPAL

Adam Comora

why won't to think OPAL and tailwinds we're there is view do and what look, that But is policy here. do. point. we and Yes. Fuels Fuels much for of that thousands are I of is landfills, owned thing that Thank doing facilities the really potential And is there is not This just a biomethane. XX we're energy electricity, every not energy lot to pipeline. going and for And of is there not the Erin access and talk of intermittent have the that have industry a where better, really be can here it starting this capturing battery important a of our where transition who and thousands on big think biomethane and really really which other we're We in of you for enough starting we there about emissions behind what support first industry, to And up good psychologic OPAL is lot And them is Adam of into and very a by types bit bipartisan should into or dependent treatment where trying little we I of small recognize countless question. of harmful baseload, to does Biomethane Slide communicate issues to to better, And whether to best, have company is sun capturing places. lot there farms, turn electricity about behind wind turning different are some source -- proven is good, makes a product. which you biomethane think that right much be renewable see lot municipalities -- support get Americans thousands think holistic of wastewater this our important, policy. it's we where you this really technology this public in sense this this at storage. we're good, at it cellulosic how there's And best there's these going a here a show strategy, starting it's think room we low-carbon or either intensity for a and we're things need a you all is taking or more to not electricity, when become think to broader is

could from policy renewable it. is for electricity public We think potential biomethane qualify XXZ certainly on the existing website of by already put and product those would it's And Erin renewable one that with that there's show just to potentially the one that for in Perhaps up Park are support come the right So it. in one electric and that electricity the really Porter EPA read. legal I pathway where credits. a or forward folks that could the regulations we & think partnership it ERIN can to great was Arnold capture argument a encourage and

Martin Malloy

that under that transportation, wanted for could ask longer-term fuel selling to helpful. RNG OPAL And we second maybe about see market XX Slide you on into looking to about I how And question, you talk demand. contracts? Could market my ever Very see developing? and

Jonathan Maurer

Sure, Jon here. Maurer

capability. see gas to We gas SRI with put with into example. to all their that trying commissions pipelines. We that see like So pipeline with their sector. highest see the now, to for is this you We Enbridge, commissions the of we transportation Right promised their having offtake. the demand public of one, certainly, gas sector think substantial fuel when transportation about outside utilities see fuel put decarbonized many and expand find regulatory value for But utility them they're and pipeline decarbonized into that NextEra.

-- is over years. of very the market. going of transportation the the next addition so substantial In fuel amount demand Currently, be below that's couple substantially to price a

very looking end this. overseas Beyond participating those We offtake. see industry been markets European certainly use those into a markets, European potential way as then a European growing to and potentially attractive in small that, the being as markets We've and decarbonize see U.S. in markets. there's for carbon we

see In a There's like that you talked think more substantial low-carbon those the coming all haven't Adam, for I addition, Maybe, when add I somewhat. more the demand that there's up, we'll years. to but about, of and product, you'd coming maritime in on bunch uses. that there's probably elaborate

Adam Comora

I XX. projects we and of XX% asking and from interesting believe over that of thing want Yes. had other inclusion maybe XX% gets XX talking move tailwinds Americans if XX looking back doing Section It demographics. where talking RNG tailwinds climate higher. at one break moving age really were we a there I time be just of that in the testimony to keep something age of on we're on somewhere elaborate or more percentages wanting by wanted And Every should and why to these really when into because about I down And that Republican jump there's that's to the you're the up And higher for Democrats of are policy something. senators just XX% slide interesting about really or these do that maybe some independent tailwinds. down change. party you years, Republican you in about when group, where

markets versus we diesel. our obviously, So about think And that disclosure half These are of those tailwinds keeping grow whether SEC the supportive now really also only And of as it's requirements. green trends And of always sort And eye and something it. it's or is to emissions product we're It's taloseelectricity and that is electricity continue on.Â policies. from talking coming part kinds are about. not those the sayelastic that our not gas we're are X-scopeX talking XoscopeX the voluntary well. that

Operator

next Bank. with Paul our Cheng next question One question Scotia moment comes our -- from

Paul Cheng

The face of And your question. projects, first just in in will similar that That's the dispute, basis? California you or what's other the first the the risk X the question those what's nature is that curious, issue that arbitration potentially disputes? projects

Jonathan Maurer

Jon for it's you question your HeyÂ Paul, Maurer. Thank this morning.

each that here, both the The substantial We the contract not the our course is where Hilltop I The projects. the notice resolution contract you projects projects. been is is fully these the increase while have an We for it's period. to have work dispute required continue of and has course, resolved for not we kind a stage, and presented of and is affect of substantially being discussing during is commenced sureties price outcome. a contractors proceeding, arbitration see have believe orders projects, would licensed and don't It of presented change it we we We future as have somewhat who the to in change contractor price. it we plan. projects EPC the the us. of the by continuing change fixed our say dispute for seeking are and funded this said, of situation arbitration Just Paul. Bandera on an proceeding early series a can limited and both think warranted X the plans can't merit. that it But the are other is But orders us X to that to affecting with predict really orders projects, this, itself the

Paul Cheng

any And on has with this work you you? have time with other worked are other this with they also first the that this projects before? or them those is than X Jon, working whether contractor you that contractor

Jonathan Maurer

first on time the is with working it them. this we're -- contractor The

counterparty think other and broader and reputable the not and we that. it's has just was not co-developer the And contractor us. more is some these the developed and projects -- on by than X sourced very Our in industry, with projects focused project a in but narrowly our really

Paul Cheng

just months an for to over expensive maybe tough year disconnection, talk been past XX, the you about industry see Adam people not part? business? John, having do is XX the understand OPAL, investors, but And just you very this the curious, has a do not where Which -- your both attractive. very When and what and and our OPAL like

Jonathan Maurer

Yes.

price that really had alluding tough of take because price as forward. a exhibited has right year. the a So our from say stock Adam competitors, see that. ours a a industry, that before. and mean stock we industry in But tailwinds really it's as of address the look tailwinds, you you matters off suppose improving I was poised strictly of terms stock to and I the that by can well bat of see of benefit address we to care to the that particularly it's gathering in and as for flow those lot interesting low-flow optimism the And us will we we're matter that trying

will size. get overall think Before projects projects just from that flow, I to a cadence a of into increasing the expanding increasing into the benefit float and company to operation have the but cash will output that we say increasing section, I construction, from us significant really

do the -- last that what on disclosure index picked change that that we is that, recently we head we're at we low expect saw by keep disclosed providers. the us. down, is the a execute -- going voting program of the you this to having cash-- from aimed of some that our small-cap is year we started at-the-money change then where So up week with will -- equity stock But and in voting perspective, disclosed that flow front most plan our that us

relative company we've some on in in you So Obviously, lot will transactions front give to stock. Enbridge our our stock that really had The overall real amount One end in private a of of the they those hopefully us very and Morrow such $X.X operation, and pipeline present to transaction But billion, attraction on the value the of the last think add of what's value development us executing of on will really the in a day, future. today and where a near when company I no similar stronger gives transactions to stock price. no that that, a growth that some really our transaction to market at the market, optimism result gas about dispensing lot would that at as point the but about sitting the of we're as going and the it's we're bring seen of value comfort in downstream creating on that. that us that price.

Operator

our moment [Operator Instruction] question. for One next

question Adam next Our from Goldman comes Sachs. with Bubes

Adam Bubes

what's up that services XXX moving under pieces, stepped gross going drives station fuel about And that sequentially. basis margins margin as strong Is in are the that points think Or like performance sequentially. seasonality? for construction O&M tracking, dispensing by and the looks on It we over respectively. third-party where bed

Adam Comora

from some in credit monetization LCFS quarter and fourth The benefit did sales. additional

piece through improving we general As gross portion we from had more 'XX, 'XX in of RNG and 'XX, inflation margins that versus little fuel have fuel in service a flowing side, benefited on being it. that through both mentioned, our seeing in And a our certainly, In our and the moved that it. of we fourth rolling station the some quite revenues improving of still of a on station bit from said, bit lag a construction from utilizing construction as well. we've dispensing margins services. see services through That and quarter flows both effect through network in piece

that think was any there, all of missed I I your your questions did questions Adam?

Adam Bubes

Treasury then separately, to helpful. and finalize And That's the IRS need XXZ. still U.S.

credit? So rolling alternative do be to you receive the the What's mostly would alternative online, partners? fuel flow that comes see from the out? off. that when magnitude then tailwind And the believe feet tax excise credit time, how does regulations fuel and you your playing Or tax same of XX at I

Adam Comora

our our to segment, just cost wanted have Yes. No, I way that risk. was service price upon. station fleet the gas I in remind I to fuel That hit the wanted thing as commodity customers. Adam, variable all nat appreciate because one flows other everybody that also we to through X

do we relationship those So from sorts and have things. gas not a and nat between any impact oil of

I we benefit that RNG items impact about that our fleet the those network customers. and also mentioned. through margin talking side, was a our improvement where to is have Also other pass-through that from So on AFTC negligible all that the AFTC, moving we're from increasing

million $X much under have we of received. AFTC it's terms in profitability So how

do -- scoring on to be feedstock allow I thing. there renewable a interesting CI on and in In we're want hopeful time the set how they biggest the earlier, negative we that pretty the the whether to dairy. side, get of soon potential to cellulosic be seen as to some be the will for with little how they're And see to be a, a to that. we going going carbon And to low pretty to XXZ. to stuff. do what on landfill they're stores a we're way going to too, it and of side, because sort CI on as We've to they're out they're how going to time score associated not do ultra -- later lines where seem mentioned treat or don't see and XXZ. transportation do of how that we're going intensity -- bucket we more be improvements we or it fuel to for to terms hopeful any individual we think really of could. timing of those kind had the going see could certainly know yet that the how of going stores, see dairy certainly, dairy We from waiting CI don't could the it, treasury electricity read I could it they're not And benefit bit we're I'm been we XXZ dispensing but know even That's so and one gas going pieces soon. landfill it they're yet each going

Adam Bubes

MMBtu I be if color project into year? you construction going Just this maybe greater here. then Can one could any in million get more in on just potential the for than on would great. details X cadence And specific expand

Jonathan Maurer

and Well, discussed we've WM the those. associated been with you're a with obviously GFL relationships we've a about couple that projects relationships with of SRI discussing our our aware -- of lot with

that bit projects. about let's specific a talk not little prepared there's to backlog backlog additional see gets additional we're been coming you'll of, and bit say, a projects We We've While that construction. into do as relieved, believe that a projects counterparties the of our and we've look that's of But that growing. some principally, those that about principal little area at might like. what some growth landfill focus, in looking talked those about we're discussed and

high to of of continue do confidence great box vertically really delivering And increase combined of right there. with our really those consistently will integrated that our improving deal the degrees have so a -- downstream delivering relationships out offtake availability with we projects work operate and model and our market into the and set opportunity of value we'll highest

Adam Comora

Yes. is Adam, big. The there, bunches. can only come thing and I these sometimes would say projects in or chunky can are they sizable They be

it putting into construction whatever X $X into we're MMBtu is a or see do rate. on get mean million and single that also So successful construction in quarter we're run if a projects maybe where an doesn't quarter you multiple

coming I where to caution I as quarters these if want well, to of just So we want just one bunch. that see they up, get --

Operator

call to for Comora the remarks. the turn At time, I Adam session. back closing like this concludes to That question-and-answer would

Adam Comora

has Well, much engagement in right. forward very for and a great participation your All and day. look everybody you thank continued hope to interest We in OPAL dialogue, Fuels.

Operator

Thank conclude does you for your program. the participation in today's conference. This

You may now disconnect.

OPAL Fuels (OPAL) 14 Mar 242023 Q4 Earnings call transcript