OPAL Fuels Inc. (“OPAL Fuels” or the “Company”) (Nasdaq: OPAL), a leading vertically integrated producer and distributor of renewable natural gas (RNG), announced financial and operating results for the three and twelve months ended December 31, 2022.
Adam Comora, Co-CEO said:
OPAL Fuels has continued to execute on its strategic and operational goals.
“After bringing three RNG projects online in 2022, we now have seven in operation, six under construction and a growing Advanced Development Pipeline.
“RNG production in 2022 grew 38% compared to 2021, and we are forecasting production growth to accelerate to over 50% in 2023. We also expect accelerated production growth in 2024 as our projects in construction become operational. In addition, as projects continue to move into and through our Advanced Development Pipeline (ADP) and into construction, we are setting the foundation for meaningful production growth over the coming years.”
“The RNG industry continues to benefit from tailwinds as the potential benefits of the Inflation Reduction Act (IRA) become clearer. Additionally, new pathways under the Renewable Fuel Standard (RFS) such as eRINs are being considered and new offtake markets are developing.”
“More importantly, the flexibility of OPAL Fuels’ vertically integrated business platform continues to maximize value for stakeholders, reduces volatility from environmental credit pricing and provides optionality as public policy and markets continue to evolve.”
“We expect that in the second half of 2023 we will begin to see the benefits of the IRA’s Investment Tax Credits (ITC) provisions. Additionally, guidance on the 45Z production tax credits, and clarification on the proposed eRIN pathway under the RFS program should be available. This should add to the industry tailwinds, providing meaningful benefits to our vertically integrated business.”
Jonathan Maurer, Co-CEO said:
We anticipate putting at least 2.0 million MMBtu of RNG projects into construction this calendar year.
“We also continue to expand our Advanced Development Pipeline1. Recently we added 0.8 million MMBtu of anticipated nameplate capacity to ADP, and now have a total of approximately 8.3 million MMBtu, across 19 projects.
“In addition, as we continue to evaluate projects across the sector, we expect our pipeline of opportunities to grow. We are pleased that some of the development headwinds we experienced in 2022 have begun to subside.”
Financial Highlights
- Revenue for the three and twelve months ended December 31, 2022, was $66.7 million and $235.5 million, respectively, up 9% and 42%, compared to prior-year periods.
- Net income for the three and twelve months ended December 31, 2022, was $32.0 million and $32.6 million, respectively, compared to $21.8 million and $40.8 million, in the same period last year.
- Adjusted EBITDA2 for the three and twelve months ended December 31, 2022, was $20.2 million and $60.7 million, respectively, up 13% and 50%, compared to prior-year periods.
Operational Highlights
- Produced 0.6 million and 2.2 million MMBtu of RNG, for the three and twelve months ended December 31, 2022, up 49% and 38%, compared to prior-year periods.
- Fuel Station Services segment sold, dispensed, and serviced an aggregate of 33.3 million and 115.9 million GGEs of transportation fuel for the three and twelve months ended December 31, 2022, up 21% and 20%, compared to prior-year periods. This volume includes 8.9 million and 29.4 million GGEs of RNG dispensing for the three and twelve months ended December 31, 2022, up 33% and 41%, compared to prior-year periods.
- Recently renewed agreement with UPS to provide operations and maintenance services for 51 fueling stations for an additional ten years.
- During 2022, signed long-term agreements for sales of 10.6 million annual GGE for 17 new OPAL Fuels stations, which are now under construction.
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OPAL Fuels Reports Revenue of $235.5 million and 2.2 million MMBtu of RNG Produced in 2022, Representing 42% and 38% Annual Increases, WHITE PLAINS, N.Y., March 27, 2023
