OPAL Fuels Reports Fourth Quarter and Full Year 2024 Results
WHITE PLAINS, N.Y.--(BUSINESS WIRE)--March 13, 2025--
OPAL Fuels Inc. ("OPAL Fuels" or the "Company") (Nasdaq: OPAL), a vertically integrated leader in the capture and conversion of biogas into low carbon intensity renewable natural gas $(RNG)$ and renewable electricity, today announced financial and operating results for the three and twelve months ended December 31, 2024.
"2024 was a solid year for OPAL Fuels, we made strong progress on our operational and strategic objectives and have positioned the company for continued success this year and for many years to come," said Adam Comora, co-CEO of OPAL Fuels. "We have continued to scale rapidly over the last twelve months. We brought online three large landfill RNG projects totaling 3.8 million MMBtu of annual design capacity and now have 11 in operation. Our total annual design capacity for RNG projects in operation and in construction is now 11.4 million MMBtu. Our disciplined execution and vertical integration continues to drive growth of our intrinsic value as we capitalize on the growing biofuels market."
"Since becoming a public company in 2022, we have, organically, more than tripled our operating production capacity and doubled EBITDA through a combination of converting existing biogas-to-electricity plants into RNG, new RNG projects, and strong growth in our fuel station services segment. Despite near term market volatility, 2025 is expected to be another year of solid growth for OPAL Fuels," continued Comora.
"We're proud of our position as one of the largest integrated RNG operators in the market." said co-CEO Jonathan Maurer. "OPAL Fuels is a leader in the space and our track record of success makes us a logical choice for feedstock suppliers seeking an operating partner, and fleet customers looking to deploy trucks that are Cleaner, Cheaper, Now."
"We're excited about our outlook for 2025, our guidance reflects our expectation of executing our business plan as we navigate challenging market conditions. We expect to continue to expand our RNG facility footprint and grow our Fuel Station Services segment," said co-CEO Jonathan Maurer. "The management team remains focused on disciplined execution to drive shareholder value."
Financial Highlights
-- Revenue for the three and twelve months ended December 31, 2024, was
$80.0 million and $300.0 million, respectively, 8% lower and 17% higher,
compared to same periods last year.
-- Net income (loss) for the three and twelve months ended December 31,
2024, was a net loss of $5.4 million and net income of $14.3 million,
respectively, compared to $20.1 million and $127.0 million net income, in
the comparable periods last year.1
-- Basic net earnings (loss) per share attributable to Class A common
shareholders for the three and twelve months ended December 31, 2024, was
$(0.05) and $0.02, respectively compared to $0.11 and $0.70 in the
comparable periods last year.1
-- Adjusted EBITDA2 for the three and twelve months ended December 31, 2024,
was $22.6 million and $90.0 million, respectively, compared to $32.0
million and $52.0 million in comparable periods last year.
-- At December 31, 2024, RNG Pending Monetization totaled $20.3 million.
Operational Highlights
-- We commenced operations at three landfill RNG projects in 2024, Prince
William, Sapphire, and Polk representing an aggregate annual design
capacity of 3.6 million MMBtu, increasing the aggregate annual design
capacity of our operating RNG projects to 8.8 million MMBtu at year end
2024. Including the projects currently in construction, aggregate annual
design capacity is 11.4 million MMBtu.3,4
-- RNG produced was 1.1 million and 3.8 million MMBtu, for the three and
twelve months ended December 31, 2024, an increase of 38% and 41%
compared to the prior-year periods.
-- The Fuel Station Services segment sold, dispensed, and serviced an
aggregate of 41.9 million and 150.2 million GGEs of transportation fuel
for the three and twelve months ended December 31, 2024, an increase of
19% and 13% compared to the prior-year periods. Of this amount, RNG
dispensed as a transportation fuel was 19.3 million and 74.0 million GGEs,
respectively an increase of 54% and 69% compared to the prior-year
periods.
____________________________
(1) Net income for the twelve months ended December, 2023 included a $122.9
million non-cash gain on deconsolidation of variable interest entities
("VIEs").
(2) This is a non-GAAP measure. A reconciliation of non-GAAP financial measure
to comparable GAAP measure has been provided in the financial tables included
in this press release. An explanation of this measure and how it is calculated
is also included below under the heading "Non-GAAP Financial Measures."
(3) Design capacity is the annual design output for each facility and may not
reflect actual production from the projects, which depends on many variables
including, but not limited to, quantity and quality of the biogas, operational
up-time of the facility, and actual productivity of the facility.
(4) Represents OPAL Fuels' proportional share with respect to RNG projects
owned with joint venture partners.
Construction Update
-- Three landfill RNG projects entered construction in 2024, Burlington,
Cottonwood, and Kirby, representing an aggregate annual design capacity
of 1.8 million MMBtu for OPAL's share.
-- The Atlantic RNG project is expected to commence commercial operations in
the third quarter of 2025. This project represents approximately 0.3
million MMBtu for OPAL Fuels' 50% ownership share of annual design
capacity.
-- Completion of construction at two dairy projects in California (Hilltop
and Vander Schaaf) continues to be delayed due to a dispute with the
Engineering, Procurement and Construction contractor over a series of
change order requests.5
-- At December 31, 2024 we had 47 stations under construction including 20
owned by OPAL.
____________________________________________
(5) For more information, please see the Company's Annual Report on Form 10-K
for the twelve months ended December 31, 2024.
2025 Guidance
-- The Company currently estimates that Adjusted EBITDA for the full year
2025 will range between $90 million and $110 million which assumes a
$2.60/gallon D3 RIN price.
-- Adjusted EBITDA is based on an RNG production range of 5.0 to 5.4 million
MMBtu.
-- We anticipate 2025 Adjusted EBITDA from our Fuel Station Services segment
to grow by 30%-50% compared to 2024.
-- We anticipate putting into construction approximately 2.0 million annual
MMBtu of RNG annual design capacity in 2025.
-- Adjusted EBITDA does not include approximately $50 million of anticipated
ITC sale proceeds from recent RNG projects, which would be included in
operating cash flow and net income in 2025.
Results of Operations
(in thousands of
dollars, except Three Months Ended Twelve Months Ended
RNG Fuel data) December 31, December 31,
------------------- ----------------------
2024 2023 2024 2023
------- ------ ------- -------
Revenue
RNG Fuel $ 25,384 $28,824 $ 88,420 $ 66,292
Fuel Station
Services 45,081 46,923 166,875 135,012
Renewable Power 9,558 11,261 44,677 54,804
------- ------ ------- -------
Total Revenue (1) $ 80,023 $87,008 $299,972 $256,108
======= ====== ======= =======
Cost of sales $ 52,394 $51,691 $199,851 $183,900
Project
development and
startup costs $ 8,586 $ 4,866 $ 19,109 $ 4,866
Other operating
expenses (2) $ 19,389 $ 9,072 $ 59,790 $ 60,302
Net income (3) $ (5,367) $20,093 $ 14,325 $127,024
Adjusted EBITDA
(4)
RNG Fuel (5) 18,035 23,280 74,478 48,703
Fuel Station
Services 12,650 12,034 40,261 22,847
Renewable Power 4,202 3,865 21,416 26,132
Corporate (12,288) (7,160) (46,150) (45,732)
------- ------ ------- -------
Consolidated
Adjusted EBITDA $ 22,599 $32,019 $ 90,005 $ 51,950
======= ====== ======= =======
RNG Fuel volume
produced (Million
MMBtus) 1.1 0.8 3.8 2.7
RNG Fuel volume
dispensed
(Million GGEs) 19.3 12.5 74.0 43.8
Total volumes
sold, dispensed,
and serviced
(Million GGEs) 41.9 35.3 150.2 133.2
(1) Excludes revenues from equity method investments.
(2) Includes selling, general and administrative expenses, depreciation and
amortization expenses, impairment and income (loss) from equity method
investments. Please refer to the Statement of Operations at the end of
the press release for additional information.
(3) Net income for twelve months ended December 31, 2023 included a $122.9
million non-cash gain on deconsolidation of variable interest entities
("VIEs").
(4) This is a non-GAAP financial measure. A reconciliation of this non-GAAP
financial measure to a comparable GAAP financial measure has been
provided in the financial tables included in this press release. An
explanation of this measure and how it is calculated is also included
below under the heading "Non-GAAP Financial Measures."
(5) Includes incremental virtual pipeline costs (i.e., actual costs less
anticipated operating costs of a permanent interconnection) on our
Prince William RNG project which are temporary in nature and expected
to be incurred until mid-2025 when the permanent interconnection is
expected to be operational.
Results of Operations from equity method investments
Three months ended Twelve months ended
December 31, December 31,
---------------------- -----------------------
(in thousands of
dollars) 2024 2023 2024 2023
-------- ------- --------- -------
Revenue $ 34,199 $ 26,147 $ 111,296 $ 50,074
Gross profit 13,991 13,457 45,803 12,065
Net income 9,521 4,689 36,100 6,323
OPAL's share of
revenues from
equity method
investments 12,193 11,278 45,917 21,856
OPAL's share of
gross profit
from equity
method
investments 3,832 6,625 19,826 9,145
OPAL's share of
net income from
equity method
investments (1) 1,407 4,092 13,235 5,525
-------- ------- --------- -------
OPAL's share of
Adjusted EBITDA
from equity
method
investments $ 4,243 $ 6,750 $ 24,954 $ 11,437
(1) Net income from equity method investments represents our portion of the
net income from equity method investments including $1.5 million and $5.8
million of amortization expense related to basis differences for the three and
twelve months ended December 31, 2024 and $1.4 million and $3.1 million for
the three and twelve months ended December 31, 2023.
Landfill RNG Facility Capacity and Utilization Summary
Three Months Ended Twelve Months Ended
December 31, December 31,
-------------------- ---------------------
2024 2023 2024 2023
--------- --------- ---------- ---------
Landfill RNG Facility
Capacity and
Utilization(1)(2)(3)(4)
Design Capacity (Million
MMBtus) 2.1 1.3 6.6 4.1
Volume of Inlet Gas
(Million MMBtus) 1.3 1.0 4.6 3.2
Inlet Design Capacity
Utilization % 67 % 80 % 73 % 79 %
RNG Fuel volume produced
(Million MMBtus) 1.1 0.7 3.7 2.6
Utilization of Inlet Gas % 78 % 79 % 81 % 83 %
(1) Design Capacity for RNG facilities is measured as the volume of feedstock
biogas that the facility is capable of accepting at the inlet and processing
during the associated period. Design Capacity is presented as OPAL's ownership
share (i.e., net of joint venture partners' ownership) of the facility and is
calculated based on the number of days in the period. New facilities that come
online during a quarter are pro-rated for the number of days in commercial
operation.
(2) Inlet Design Capacity Utilization is measured as the Volume of Inlet Gas
for a period, divided by the total Design Capacity for such period. The Volume
of Inlet Gas varies over time depending on, among other factors, (i) the
quantity and quality of waste deposited at the landfill, (ii) waste management
practices by the landfill, and (iii) the construction, operations and
maintenance of the landfill gas collection system used to recover the landfill
gas. The Design Capacity for each facility will typically be correlated to the
amount of landfill gas expected to be generated by the landfill during the
term of the related gas rights agreement. The Company expects Inlet Design
Capacity Utilization to be in the range of 75-85% on an aggregate basis over
the next several years. Typically, newer facilities perform at the lower end
of this range and demonstrate increasing utilization as they mature and the
biogas resource increases at open landfills.
(3) Utilization of Inlet Gas is measured as RNG Fuel Volume Produced divided
by the Volume of Inlet Gas. Utilization of Inlet Gas varies over time
depending on availability and efficiency of the facility and the quality of
landfill gas (i.e., concentrations of methane, oxygen, nitrogen, and other
gases). The Company generally expects Utilization of Inlet Gas to be in the
range of 80% to 90%.
(4) Data not available for the Company's dairy projects, i.e., Sunoma and
Biotown.
RNG Pending Monetization Summary
Three Months Ended
----------------------------------
(In 000's) December 31, 2024
----------------------------------
Fuel
RNG Station
Fuel Services Total
-------- ----------- -----------
Un-Monetized Environmental
Attributes (MMBtus) (1)
Beginning balance as of
September 30, 2024 280 57 337
Add: production 1,000 100 1,100
Less: Current period volumes
monetized (976) (109) (1,085)
------ ------ -------
Ending Balance as of
December 31, 2024 304 48 352
------ ------ -------
Value of ending balance
using quarter end price
(2) $ 6,156 $ 10,573 $ 16,729
------ ------ -------
RIN Metrics
Beginning balance as of
September 30, 2024 69 44 113
Add: Generated in current
period 9,776 137 9,913
Less: Sales (9,844) (180) (10,024)
------ ------ -------
Ending RIN credit balance
(Available for sale) as of
December 31, 2024 1 1 2
------ ------ -------
D3 price per RIN at quarter
end $ 2.45 $ 2.45 $ 2.45
------ ------ -------
Value of RINs using quarter
end price (2) $ 2 $ 2 $ 5
------ ------ -------
LCFS Metrics
Beginning balance (net
share) as of September 30,
2024 6 70 76
Add: Generated in current
period 13 29 42
Less: Sales (12) (3) (15)
------ ------ -------
Ending LCFS credit balance
(Available for sale) as of
December 31, 2024 7 96 103
------ ------ -------
LCFS credit price at quarter
end $ 75.25 $ 75.25 $ 75.25
------ ------ -------
Value of LCFSs using quarter
end price (2) $ 614 $ 2,910 $ 3,524
------ ------ -------
Value of RECs using quarter
end price -- -- $ 88
------ ------ -------
Other Metrics
Average realized sales price
- RIN -- -- $ 3.22
Average realized sales price
- LCFS -- -- $ 100.00
Total Value of RNG Pending
Monetization at quarter
end $ 6,772 $ 13,485 $ 20,346
====== ====== =======
(1) Reflects OPAL's ownership share of un-monetized environmental attributes
associated with our RNG production (i.e., net of joint venture partners'
ownership) including equity method investments
(2) Reflects OPAL's ownership share of RIN and LCFS credits (i.e., net of
joint venture partners' ownership) including equity method investments and
presented net of discounts and any direct transaction costs such as dispensing
fees, third-party royalties and transaction costs as applicable.
Liquidity
As of December 31, 2024, our liquidity was $223.6 million, consisting of $178.4 million of unused capacity under our $450 million senior secured credit facility, $20.9 million of unused capacity under the associated revolver, and $24.3 million of cash, cash equivalents, and short-term investments. In 2025 we expect approximately $50 million of cash proceeds from ITC sales bolstering both our earnings and operating cash flow to continue to fund our investments. As we disclosed in recent filings we agreed to a 12-month extension of the draw period on the credit facility.
We believe our liquidity, operating cash flows, and anticipated sources of capital are sufficient to meet our expected 2025 funding needs.
Capital Expenditures
During the twelve months ended December 31, 2024, OPAL Fuels invested $127.2 across RNG projects in construction and OPAL Fuels proprietary fueling stations in construction as compared to $113.8 million in the prior year.
In addition, for the twelve months ended December 31, 2024, the Company's portion of capital expenditures in unconsolidated entities was $35.2 million. This represents our share of capital expenditures incurred by equity method investments.
Earnings Call
A webcast to review OPAL Fuels' Fourth Quarter and Full Year 2024 results is being held tomorrow, March 14, 2024 at 11:00AM EDT.
Materials to be discussed in the webcast will be available before the call on the Company's website.
Participants may access the call at https://edge.media-server.com/mmc/p/49xbizz5. Investors can also listen to a webcast of the presentation on the company's Investor Relations website at https://investors.opalfuels.com/news-events/events-presentations.
_____________________
Glossary of terms
"Environmental Attributes" refer to federal, state, and local government incentives in the United States, provided in the form of Renewable Identification Numbers, Renewable Energy Credits, Low Carbon Fuel Standard credits, rebates, tax credits and other incentives to end users, distributors, system integrators and manufacturers of renewable energy projects that promote the use of renewable energy.
"GGE" refers to Gasoline gallon equivalent. The conversion ratio is 1 MMBtu of natural gas equal to 7.74 GGE.
"LFG" refers to landfill gas.
"MMBtu" refers to British thermal units.
"Renewable Power" refers to electricity generated from renewable sources.
"RNG" refers to renewable natural gas.
"D3" refers to cellulosic biofuel with a 60% GHG reduction requirement.
"RIN" refers to Renewal Identification Numbers.
"EPA" refers to Environmental Protection Agency.
About OPAL Fuels Inc.
OPAL Fuels Inc. (Nasdaq: OPAL) is a leader in the capture and conversion of biogas into low carbon intensity RNG and renewable electricity. OPAL Fuels is also a leader in the marketing and distribution of RNG to heavy duty trucking and other hard to de-carbonize industrial sectors. For additional information, and to learn more about OPAL Fuels and how it is leading the effort to capture North America's naturally occurring methane and decarbonize the economy, please visit www.opalfuels.com.
# # #
Forward-Looking Statements
Certain statements in this communication may be considered forward-looking statements within the meaning of the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements that are not historical facts and generally relate to future events or OPAL Fuels' (the "Company") future financial or other performance metrics. In some cases, you can identify forward-looking statements by terminology such as "believe," "may," "will," "potentially," "estimate," "continue," "anticipate," "intend," "could," "would," "project," "target," "plan," "expect," or the negatives of these terms or variations of them or similar terminology. Such forward-looking statements are subject to risks and uncertainties, which could cause actual results to differ materially from those expressed or implied by such forward-looking statements. New risks and uncertainties may emerge from time to time, and it is not possible to predict all risks and uncertainties. These forward-looking statements are based upon estimates and assumptions that, while considered reasonable by the Company and its management, as the case may be, are inherently uncertain and subject to material change. Factors that may cause actual results to differ materially from current expectations include various factors beyond management's control, including but not limited to general economic conditions and other risks, uncertainties and factors set forth in the sections entitled "Risk Factors" and "Forward-Looking Statements and Risk Factor Summary" in the Company's Annual Report on Form 10-K filed on March 17, 2025, and other filings the Company makes with the Securities and Exchange Commission. Nothing in this communication should be regarded as a representation by any person that the forward-looking statements set forth herein will be achieved or that any of the contemplated results of such forward-looking statements will be achieved. You should not place undue reliance on forward-looking statements in this communication, which speak only as of the date they are made and are qualified in their entirety by reference to the cautionary statements herein. The Company expressly disclaims any obligations or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company's expectations with respect thereto or any change in events, conditions, or circumstances on which any statement is based.
Disclaimer
This communication is for informational purposes only and is neither an offer to purchase, nor a solicitation of an offer to sell, subscribe for or buy, any securities, nor shall there be any sale, issuance or transfer or securities in any jurisdiction in contravention of applicable law. No offer of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended.
OPAL FUELS INC.
CONSOLIDATED BALANCE SHEETS
(In thousands of U.S. dollars, except per share data)
December 31, December 31,
2024 2023
--------------- ----------------
Assets
Current assets:
Cash and cash equivalents (includes
$358 and $166 at December 31, 2024
and December 31, 2023, respectively,
related to consolidated VIEs) $ 24,310 $ 38,348
Accounts receivable, net (includes
$435 and $33 at December 31, 2024
and December 31, 2023, respectively,
related to consolidated VIEs) 32,013 27,623
Accounts receivable, related party 14,522 18,696
Restricted cash - current (includes
$972 and $4,395 at December 31, 2024
and December 31, 2023, respectively,
related to consolidated VIEs) 972 4,395
Short term investments -- 9,875
Fuel tax credits receivable 5,639 5,345
Contract assets 11,075 6,790
Parts inventory (includes $29 and $29
at December 31, 2024 and December
31, 2023, respectively, related to
consolidated VIEs) 10,294 10,191
Convertible note receivable 760 --
Environmental credits held for sale 6,314 172
Prepaid expense and other current
assets (includes $144 and $107 at
December 31, 2024 and December 31,
2023, respectively, related to
consolidated VIEs) 11,051 6,005
Derivative financial assets, current
portion 238 633
---------- ---------
Total current assets 117,188 128,073
---------- ---------
Capital spares 4,380 3,468
Property, plant, and equipment, net
(includes $25,428 and $26,626 at
December 31, 2024 and December 31,
2023, respectively, related to
consolidated VIEs) 458,258 339,493
Operating right-of use assets 12,731 12,301
Investment in other entities 223,594 207,099
Note receivable - variable fee
component 2,509 2,302
Derivative financial assets,
non-current portion 448 --
Other long-term assets 2,085 1,162
Intangible assets, net 1,330 1,604
Restricted cash - non-current
(includes $2,315 and $1,850 at
December 31, 2024 and December 31,
2023, respectively, related to
consolidated VIEs) 3,946 4,499
Goodwill 54,608 54,608
---------- ---------
Total assets $ 881,077 $ 754,609
========== =========
Liabilities and Equity
Current liabilities:
Accounts payable (includes $22 and
$744 at December 31, 2024 and
December 31, 2023, respectively,
related to consolidated VIEs) 16,419 13,901
Accounts payable, related party
(includes $426 and $1,046 at
December 31, 2024 and December 31,
2023, respectively, related to
consolidated VIEs) 7,932 7,024
Fuel tax credits payable 4,422 4,558
Accrued payroll 9,580 9,023
Accrued capital expenses 23,238 15,128
Accrued environmental credit rebates 5,391 4,057
Accrued expenses and other current
liabilities (includes $974 and $647
at December 31, 2024 and December
31, 2023, respectively, related to
consolidated VIEs) 9,529 10,188
Contract liabilities 9,276 6,314
OPAL Term Loan, current portion 10,865 --
Sunoma loan, current portion
(includes $1,756 and $1,608 at
December 31, 2024 and December 31,
2023, respectively, related to
consolidated VIEs) 1,756 1,608
Derivative financial liability,
current portion 9 --
Operating lease liabilities - current
portion 780 638
Other current liabilities (includes
$-- and $92 at December 31, 2024 and
December 31, 2023, respectively,
related to consolidated VIEs) 1,595 92
Asset retirement obligation, current
portion 2,804 1,812
---------- ---------
Total current liabilities 103,596 74,343
---------- ---------
Asset retirement obligation,
non-current portion 5,082 4,916
OPAL Term Loan, net of debt issuance
costs 266,630 176,532
Sunoma loan, net of debt issuance
costs (includes $18,373 and $20,010
at December 31, 2024 and December
31, 2023, respectively, related to
consolidated VIEs) 18,373 20,010
Operating lease liabilities -
non-current portion 12,155 11,824
Earn out liabilities 304 1,900
Derivative liabilities - non-current
portion 63 --
Other long-term liabilities (includes
$2,495 and $211 at December 31, 2023
and December 31, 2022, respectively,
related to consolidated VIEs) 9,842 7,599
---------- ---------
Total liabilities 416,045 297,124
---------- ---------
Commitments and contingencies
Redeemable preferred non-controlling
interests 130,000 132,617
Redeemable non-controlling
interests 482,863 802,720
Stockholders' (deficit) equity
Class A common stock, $0.0001 par
value, 340,000,000 shares authorized
as of December 31, 2024; shares
issued: 30,065,260 and 29,701,146 at
December 31, 2024 and December 31,
2023, respectively; shares
outstanding: 28,429,477 and
28,065,363 at December 31, 2024 and
December 31, 2023, respectively 3 3
Class B common stock, $0.0001 par
value, 160,000,000 shares authorized
as of December 31, 2024; 71,500,000
and none issued and outstanding as of
December 31, 2024 and December 31,
2023 7 --
Class C common stock, $0.0001 par
value, 160,000,000 shares authorized
as of December 31, 2024; None issued
and outstanding as of December 31,
2024 and December 31, 2023 -- --
Class D common stock, $0.0001 par
value, 160,000,000 shares authorized
as of December 31, 2024; 72,899,037
and 144,399,037 issued and
outstanding at December 31, 2024 and
December 31, 2023 7 14
Additional paid-in capital -- --
Accumulated deficit (137,004) (467,195)
Accumulated other comprehensive
(loss) income 152 (15)
Class A common stock in treasury, at
cost; 1,635,783 and 1,635,783 shares
at December 31, 2024 and December
31, 2023 (11,614) (11,614)
---------- ---------
Total Stockholders' (deficit)
equity attributable to the
Company (148,449) (478,807)
---------- ---------
Non-redeemable non-controlling
interests 618 955
---------- ---------
Total Stockholders' (deficit)
equity (147,831) (477,852)
---------- ---------
Total liabilities, Redeemable
preferred, Redeemable
non-controlling interests and
Stockholders' (deficit) equity $ 881,077 $ 754,609
========== =========
OPAL FUELS INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands of U.S. dollars, except per unit data)
Twelve Months Ended
December 31,
----------------------------
2024 2023
---------- ----------
Revenues:
RNG fuel (includes revenues from
related party of $68,416 and $56,069
for the years ended December 31, 2024
and 2023, respectively) $ 88,420 $ 66,292
Fuel Station Services (includes
revenues from related party of
$38,841 and $28,468 for the years
ended December 31, 2024 and 2023,
respectively) 166,875 135,012
Renewable Power (includes revenues
from related party of $6,912 and
$6,614 for the years ended December
31, 2024 and 2023, respectively) 44,677 54,804
---------- ----------
Total revenues 299,972 256,108
---------- ----------
Operating expenses:
Cost of sales - RNG fuel 38,552 32,028
Cost of sales - Fuel Station Services 128,804 115,322
Cost of sales - Renewable Power 32,495 36,550
Project development and start up costs 19,109 4,866
Selling, general, and administrative 53,124 51,262
Depreciation, amortization, and
accretion 17,885 14,565
Impairment loss 2,016 --
Income from equity method investments (13,235) (5,525)
---------- ----------
Total expenses 278,750 249,068
---------- ----------
Operating income 21,222 7,040
---------- ----------
Other (expense) income:
Interest and financing expense, net (19,610) (9,306)
Change in fair value of derivative
instruments, net 1,596 7,346
Other income 2,211 124,472
Loss on debt extinguishment -- (2,190)
Loss on warrant exchange -- (338)
---------- ----------
Income before provision for income
taxes 5,419 127,024
---------- ----------
Income tax benefit 8,906 --
---------- ----------
Net income 14,325 127,024
---------- ----------
Net income attributable to redeemable
non-controlling interests 2,851 97,426
Net income (loss) attributable to
non-redeemable non-controlling
interests 443 (349)
Dividends on Redeemable preferred
non-controlling interests 10,470 11,011
---------- ----------
Net income attributable to Class A
common stockholders $ 561 $ 18,936
========== ==========
Weighted average shares
outstanding of Class A common
stock:
Basic 27,617,335 27,148,538
Diluted 27,694,650 27,494,016
Per share amounts:
Basic $ 0.02 $ 0.70
Diluted $ 0.02 $ 0.69
OPAL FUELS INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
In thousands of U.S. dollars)
Twelve Months Ended
December 31,
------------------------
2024 2023
-------- --------
Cash flows from operating activities:
Net income $ 14,325 $ 127,024
Adjustments to reconcile net income to net
cash provided by (used in) operating
activities:
Income from equity method investments (13,235) (5,525)
Gain from disposal of plant and equipment (311) --
Distributions from equity method
investments 14,336 12,242
Change in fair value of Convertible note
receivable (10) --
Impairment of property, plant and
equipment 2,016 --
Loss on warrant exchange -- 338
Depreciation and amortization 17,450 14,044
Amortization of deferred financing costs 1,094 1,720
Amortization of operating lease
right-of-use assets 679 643
Loss on debt extinguishment -- 2,190
Accretion expense related to asset
retirement obligation 435 521
Stock-based compensation 6,452 5,904
Provision for bad debts 85 518
Paid-in-kind interest income (207) $(360.AU)$
Change in fair value of commodity swaps 704 --
Change in fair value of Convertible Note
Payable -- 1,579
Change in fair value of the earnout
liabilities (1,596) (6,890)
Unrealized gain on derivative financial
instruments -- (270)
Gain on deconsolidation of VIEs -- (122,873)
Changes in operating assets and liabilities:
Accounts receivable (4,475) 2,942
Accounts receivable, related party 4,174 (6,275)
Fuel tax credits receivable (294) (1,201)
Capital spares (912) (25)
Parts inventory (103) (2,880)
Environmental credits held for sale (6,142) 1,502
Prepaid expense and other current and
long-term assets (5,312) 2,200
Contract assets (4,285) 2,981
Accounts payable 2,519 6,686
Accounts payable, related party 908 1,228
Fuel tax credits payable (136) 1,238
Accrued payroll 557 66
Accrued expenses 75 3,273
Operating lease liabilities - current and
non-current (636) (613)
Asset retirement obligations -- (49)
Other current and non-current liabilities 1,917 (1,910)
Contract liabilities 2,961 (1,699)
-------- --------
Net cash provided by operating activities 33,033 38,269
-------- --------
Cash flows from investing activities:
Purchase of property, plant, and equipment (127,239) (113,826)
Proceeds from disposal of plant and
equipment 828 --
Deconsolidation of VIEs, net of cash -- (11,947)
Proceeds from sale of short term
investments 9,875 55,101
Cash paid for investment in other entities (21,570) (8,314)
Cash paid for Notes receivable (750) --
Distributions received from equity method
investment 4,305 4,839
-------- --------
Net cash used in investing activities (134,551) (74,147)
-------- --------
Cash flows from financing activities:
Proceeds from OPAL Term Loan 100,000 196,617
Financing costs paid to other third
parties (629) (10,264)
Repayment of Senior Secured Credit
Facility -- (22,750)
Repayment of Convertible Note Payable -- (30,107)
Repayment of OPAL Term Loan -- (106,090)
Repayment of Sunoma Loan (1,621) $(546.SI)$
Repayment of Municipality loan -- (76)
Repayment of finance lease liabilities -- (993)
Proceeds from equipment loan -- 303
Proceeds from sale of non-redeemable
non-controlling interest -- 12,753
Reimbursement of financing costs by joint
venture partner -- 842
Payment of preferred dividends (13,086) (16,536)
Cash paid for taxes related to net share
settlement of equity awards (627) (896)
Cash paid for purchase of shares upon
exercise of put option -- (16,391)
Distribution to non-redeemable
non-controlling interest (703) (333)
Proceeds from issuance of shares of Class
A common stock under the ATM program,
net 170 366
-------- --------
Net cash provided by financing activities 83,504 5,899
-------- --------
Net decrease in cash, restricted cash, and
cash equivalents (18,014) (29,979)
Cash, restricted cash, and cash equivalents,
beginning of period 47,242 77,221
-------- --------
Cash, restricted cash, and cash equivalents,
end of period $ 29,228 $ 47,242
======== ========
Supplemental disclosure of cash flow
information
Income taxes paid $ 20 $ --
Interest paid, net of $3,212 and $5,475
capitalized, respectively $ 22,907 $ 6,929
Noncash investing and financing activities:
Fair value of Class A common stock issued
for redemption of Public and Private
warrants $ -- $ 338
Accrual for asset retirement obligation
included in Property, plant and equipment $ 723 $ --
Right-of-use assets arising from lease
modifications $ 1,109 $ --
Paid-in-kind dividend on redeemable
preferred non-controlling interests $ -- $ 2,617
Right-of-use assets for finance leases
included in Property, Plant and equipment,
net $ 2,403 $ 9,049
Accrual for purchase of Property, plant and
equipment included in Accounts payable and
Accrued capital expenses $ 23,238 $ 15,128
Non-GAAP Financial Measures (Unaudited)
This release includes various financial measures that are non-GAAP financial measures as defined under the rules of the Securities and Exchange Commission. We believe these measures provide important supplemental information to investors to use in evaluating ongoing operating results. We use these measures, together with accounting principles generally accepted in the United States ("GAAP" or "U.S. GAAP"), for internal managerial purposes and as a means to evaluate period-to-period comparisons. However, we do not, and you should not, rely on non-GAAP financial measures alone as measures of our performance. We believe that non-GAAP financial measures reflect an additional way of viewing aspects of our operations, that when taken together with GAAP results and the reconciliations to corresponding GAAP financial measures that we also provide give a more complete understanding of factors and trends affecting our business. We strongly encourage you to review all of our financial statements and publicly filed reports in their entirety and to not solely rely on any single non-GAAP financial measure.
Non-GAAP financial measures are limited as an analytical tool and should not be considered in isolation from, or as a substitute for, the Company's GAAP results. The Company expects to continue reporting non-GAAP financial measures, adjusting for the items described below (and/or other items that may arise in the future as the Company's management deems appropriate), and the Company expects to continue to incur expenses, charges or gains like the non-GAAP adjustments described below. Accordingly, unless expressly stated otherwise, the exclusion of these and other similar items in the presentation of non-GAAP financial measures should not be construed as an inference that these costs are unusual, infrequent, or non-recurring. These Non-GAAP financial measures are not recognized terms under GAAP and do not purport to be alternatives to GAAP net income or any other GAAP measure as indicators of operating performance. Moreover, because not all companies use identical measures and calculations, the Company's presentation of Non-GAAP financial measures may not be comparable to other similarly titled measures used by other companies. We strongly encourage you to review all of our financial statements and publicly filed reports in their entirety and to not solely rely on any single non-GAAP financial measure.
Adjusted EBITDA
To supplement the Company's unaudited condensed consolidated financial statements presented in accordance with GAAP, the Company uses a non-GAAP financial measure that it calls adjusted EBITDA ("Adjusted EBITDA"). This non-GAAP measure adjusts net income for interest and financing expense, net, loss on debt extinguishment, net (income) loss attributable to non-controlling interests, depreciation, amortization and accretion expense, adjustments to reflect Adjusted EBITDA from equity method investments, loss on warrant exchange, unrealized (gain) loss on derivative instruments, non-cash charges, one-time non-recurring expenses, major maintenance on renewable power RNG development and virtual pipeline costs, ITC proceeds and gain on deconsolidation of VIEs.
Management believes this non-GAAP measure provides meaningful supplemental information about the Company's performance, for the following reasons: (1) it allows for greater transparency with respect to key metrics used by management to assess the Company's operating performance and make financial and operational decisions; (2) the measure excludes the effect of items that management believes are not directly attributable to the Company's core operating performance and may obscure trends in the business; (3) the measure better aligns revenues with expenses; and (4) the measure is used by institutional investors and the analyst community to help analyze the Company's business. In future quarters, the Company may adjust for other expenditures, charges or gains to present non-GAAP financial measures that the Company's management believes are indicative of the Company's core operating performance.
Non-GAAP financial measures are limited as an analytical tool and should not be considered in isolation from, or as a substitute for, the Company's GAAP results. The Company expects to continue reporting non-GAAP financial measures, adjusting for the items described below (and/or other items that may arise in the future as the Company's management deems appropriate), and the Company expects to continue to incur expenses, charges or gains like the non-GAAP adjustments described below. Accordingly, unless expressly stated otherwise, the exclusion of these and other similar items in the presentation of non-GAAP financial measures should not be construed as an inference that these costs are unusual, infrequent, or non-recurring. Adjusted EBITDA is not a recognized term under GAAP and does not purport to be an alternative to GAAP net income or any other GAAP measure as an indicator of operating performance. Moreover, because not all companies use identical measures and calculations, the Company's presentation of Adjusted EBITDA may not be comparable to other similarly titled measures used by other companies.
The following table presents the reconciliation of our Net income to Adjusted EBITDA:
Reconciliation of GAAP Net income to Adjusted EBITDA
For the Three and Twelve Months Ended December 31, 2024 and 2023
(In thousands of dollars)
Three Months Ended December 31, 2024 Twelve Months Ended December 31, 2024
---------------------------------------------------- ------------------------------------------------------
Fuel Fuel
Station Renewable Station Renewable
RNG Fuel Services Power Corporate Total RNG Fuel Services Power Corporate Total
-------- -------- ----------- --------- -------- -------- -------- ----------- --------- ----------
Net income (loss)
(1) $(1,187) $10,459 $ 457 $(15,096) $(5,367) $17,686 $ 33,513 $ 7,065 $(43,939) $14,325
Adjustments to
reconcile net
income (loss) to
Adjusted EBITDA
Interest and
financing
expense, net 5,707 49 (21) (103) 5,632 20,134 168 (132) (560) 19,610
Net income
attributable to
non-redeemable
non-controlling
interests (115) -- -- -- (115) (443) -- -- -- (443)
Depreciation,
amortization and
accretion 2,770 1,428 1,010 -- 5,208 8,252 5,612 4,021 -- 17,885
Adjustments to
reflect Adjusted
EBITDA from
equity method
investments(3) 2,836 -- -- -- 2,836 11,719 -- -- -- 11,719
Unrealized (gain)
loss on
derivative
instruments -- -- 210 (138) 72 -- -- 704 (1,595) (891)
Non-cash
charges(5) -- 934 1,577 2,070 4,581 -- 968 1,577 6,734 9,279
One-time
non-recurring
charges (6) -- (220) -- 844 624 -- -- 400 1,723 2,123
RNG development
costs 2,276 -- -- -- 2,276 5,379 -- -- -- 5,379
Virtual pipeline
costs(7) 5,748 -- -- -- 5,748 11,751 -- -- -- 11,751
Major maintenance
for Renewable
Power -- -- 969 -- 969 -- -- 7,781 -- 7,781
ITC proceeds -
net -- -- -- 135 135 -- -- -- (8,513) (8,513)
------ ------ ------ ------- ------ ------ ------- ------ ------- ------
Adjusted EBITDA $18,035 $12,650 $ 4,202 $(12,288) $22,599 $74,478 $ 40,261 $ 21,416 $(46,150) $90,005
====== ====== ====== ======= ====== ====== ======= ====== ======= ======
Three Months Ended December 31, 2023 Twelve Months Ended December 31, 2023
------------------------------------------------------ --------------------------------------------------------
Fuel Fuel
Station Renewable RNG Station Renewable
RNG Fuel Services Power Corporate Total Fuel Services Power Corporate Total
-------- -------- ----------- ----------- -------- ------- -------- ----------- ---------- ------------
Net income (loss)
(1) $12,726 $10,479 $ 1,888 $ (5,000) $20,093 $22,203 $17,908 $ 12,472 $ 74,441 $ 127,024
Adjustments to
reconcile net
income (loss) to
Adjusted EBITDA
Interest and
financing
expense, net 4,352 (14) 20 466 4,824 8,968 (134) 280 192 9,306
Loss on debt
extinguishment
(2) -- -- -- (658) (658) -- -- -- 2,190 2,190
Net (income) loss
attributable to
non-redeemable
non-controlling
interests (182) -- -- -- (182) 349 -- -- -- 349
Depreciation,
amortization and
accretion 1,314 1,175 1,178 (36) 3,631 5,268 3,730 5,567 -- 14,565
Adjustments to
reflect Adjusted
EBITDA from
equity method
investments (3) 2,658 -- -- -- 2,658 5,912 -- -- -- 5,912
Loss on warrant
exchange -- -- -- -- -- -- -- -- 338 338
Unrealized (gain)
loss on
derivative
instruments (4) -- -- (30) (3,134) (3,164) -- -- (763) (7,140) (7,903)
Non-cash charges
(5) -- 174 -- 1,123 1,297 -- 174 -- 6,003 6,177
One-time
non-recurring
charges (6) 2,412 220 45 79 2,756 6,003 1,169 1,336 1,117 9,625
Major maintenance
for Renewable
Power -- -- 764 -- 764 -- -- 7,240 -- 7,240
Gain on
deconsolidation
of VIEs -- -- -- -- -- -- -- -- (122,873) (122,873)
------ ------ ------ ------ ------ ------ ------ ------ -------- --------
Adjusted EBITDA $23,280 $12,034 $ 3,865 $ (7,160) $32,019 $48,703 $22,847 $ 26,132 $ (45,732) $ 51,950
====== ====== ====== ====== ====== ====== ====== ====== ======== ========
(1) Net income (loss) by segment is included in our quarterly report
on Form 10 K.
(2) Loss on debt extinguishment relates to assignment of our senior
secured credit facility to Paragon and debt restructuring related to
OPAL Term Loan.
(3) Includes interest, depreciation, amortization and accretion
incurred on equity method investments.
(4) Unrealized (gain) loss on derivative instruments includes change
in fair value of interest rate swaps, commodity swaps, earnout
liabilities and put option on a forward purchase agreement.
(5) Non-cash charges include stock-based compensation expense, certain
expenses included in selling, general and administrative expenses
relating to employee benefit accruals, inventory write down charges
included in cost of sales - RNG fuel and loss on disposal of assets.
(6) One-time non-recurring charges include (i) certain expenses
related to development expenses on our RNG facilities such as lease
expenses and virtual pipeline costs (in 2023), incurred during
construction phase that could not be capitalized per GAAP.
(7) Relates to virtual pipeline costs on our Prince William facility.
These are temporary transportation costs incurred until a permanent
pipeline is completed, which we currently anticipate in the second
half of 2025. The costs are decreased by estimated costs of permanent
pipeline.
View source version on businesswire.com: https://www.businesswire.com/news/home/20250313180326/en/
CONTACT: Investors
Todd Firestone
Vice President Investor Relations & Corporate Development
914-705-4001
investors@opalfuels.com
ICR, Inc.
OPALFuelsPR@icrinc.com
(END) Dow Jones Newswires
March 13, 2025 18:00 ET (22:00 GMT)
免责声明：投资有风险，本文并非投资建议，以上内容不应被视为任何金融产品的购买或出售要约、建议或邀请，作者或其他用户的任何相关讨论、评论或帖子也不应被视为此类内容。本文仅供一般参考，不考虑您的个人投资目标、财务状况或需求。TTM对信息的准确性和完整性不承担任何责任或保证，投资者应自行研究并在投资前寻求专业建议。