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 months ended March 31, 2024.
"First quarter financial and operational results reflect the
strength of our integrated business model and provide the
foundation for what we view as an important year of progressive
growth in production and earnings at OPAL Fuels," said co-CEO Adam
Comora. "Benefiting from continuing industry tailwinds that support
the capture of naturally occurring methane emissions and converting
them into productive, low carbon intensity energy products, we
remain well positioned to deliver on our financial and strategic
goals over the balance of the year."
"Operationally, we continue to see strong results from our RNG
assets," said co-CEO Jonathan Maurer. "Additionally, our business
segments' performance is in-line with our expectations, a testament
to our team's capabilities in managing our RNG portfolio
production, dispensing network, and renewable power assets."
"Importantly, we are executing on our strategic priorities,"
stated Maurer. "We continue to move projects into construction and
operation. We are very excited to announce that our ninth RNG
facility, Prince William, has recently commenced operations and is
expected to contribute meaningfully as it ramps production as we
move through the year. Prince William brings our operating
portfolio of RNG projects up to 7.0 million annual MMBtu design
capacity."
"Our Sapphire and Polk RNG construction projects remain on track
to commence operations in the third and fourth quarter,
respectively, and, with these additions, we expect to end the year
with 8.8 million annual MMBtu of design capacity. Importantly, we
have also begun construction on our fifteenth RNG project,
Cottonwood, which has 0.7 million annual MMBtu of design capacity,
and brings our aggregate portfolio of operating and in-construction
RNG projects to 10.3 million annual MMBtu of design capacity."
"We are encouraged by both the growth we've been able to deliver
as well as the quality of our projects, which ramp-up quickly and
operate at high levels of productivity," continued Comora. "Looking
ahead, RNG fundamentals continue to be supportive of OPAL Fuels'
business model and we remain well positioned to achieve our
objectives."
Financial Highlights
- Revenue for the three months ended March 31, 2024, was $65.0
million, up 51%, compared to the same period last year.
- Net income for the three months ended March 31, 2024, was $0.7
million compared to a net loss of $7.3 million in the same period
last year.
- Basic and diluted Net loss per share attributable to Class A
common shareholders for the three months ended March 31, 2024 were
$0.01.
- Adjusted EBITDA1 for the three months ended March 31, 2024, was
$15.2 million, up by $16.8 million compared to the same period last
year.
- At March 31, 2024, RNG Pending Monetization totaled $20.7
million.
Operational Highlights
- RNG produced was 0.8 million MMBtu, for the three months ended
March 31, 2024, up 33%, compared to the prior-year period.
- RNG sold as transportation fuel was 16.4 million GGEs for the
three months ended March 31, 2024, up 98% compared to the
prior-year period.
- The Fuel Station Services segment sold, dispensed, and serviced
an aggregate of 35.0 million GGEs of transportation fuel for the
three months ended March 31, 2024, a 8% increase compared to the
prior-year period.
Construction Update
- The Prince William RNG project has recently completed
construction and commenced the start-up phase of commercial
operations. This project, owned 100% by OPAL Fuels, represents
approximately 1.7 million MMBtu of annual design capacity.2
- The Sapphire RNG project continues to be on track to commence
commercial operations in the third quarter of 2024. This project
represents approximately 0.8 million MMBtu for OPAL Fuels’ 50%
ownership share of annual design capacity.3
- The Polk County (Florida) RNG project continues to be on track
to commence commercial operations in the fourth quarter of 2024.
This project, owned 100% by OPAL Fuels, represents approximately
1.1 million MMBtu of annual design capacity.
- The Atlantic RNG project is expected to commence commercial
operations in mid-2025. This project represents approximately 0.3
million MMBtu for OPAL Fuels’ 50% ownership share of annual design
capacity.
- We recently commenced construction on the Cottonwood landfill
RNG project. This project, owned 100% by OPAL Fuels, represents
approximately 0.7 million MMBtu of annual design capacity.
____________________ 1 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." 2 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. 3
Reflects OPAL Fuels' proportional share with respect to RNG
projects owned with joint venture partners.
Results of Operations
($ thousands of dollars)
Three Months Ended
March 31,
2024
2023
Revenue
RNG Fuel
$
17,727
$
6,749
Fuel Station Services
37,142
20,828
Renewable Power
10,083
15,380
Total Revenue (1)
$
64,952
$
42,957
Net income (loss)
$
677
$
(7,346
)
Adjusted EBITDA
RNG Fuel
15,841
527
Fuel Station Services
7,018
1,313
Renewable Power
3,872
7,412
Corporate
(11,508
)
(10,857
)
Consolidated Adjusted EBITDA(2)
$
15,223
$
(1,605
)
RNG Fuel volume produced (Million
MMBtus)
0.8
0.6
RNG Fuel volume sold (Million GGEs)
16.4
8.3
Total volume delivered (Million GGEs)
35.0
32.4
(1) Excludes revenues from equity method investments.
(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."
Results of Operations from equity method investments
Three Months Ended
March 31,
($ thousands of dollars)
2024
2023
Revenue
$
25,407
$
7,539
Gross profit
11,094
1,651
Net income (loss)
10,704
(213
)
OPAL's share of revenues from equity
method investments
$
10,761
$
3,770
OPAL's share of gross profit from equity
method investments
$
5,186
$
826
OPAL's share of net income from equity
method investments (1)
$
4,206
$
705
OPAL's share of Adjusted EBITDA from
equity method investments
$
6,474
$
815
(1) Net income from equity method investments represents our
portion of the net income from equity method investments including
$1,430 of amortization expense related to basis differences for the
three months ended March 31, 2024.
Landfill RNG Facility Capacity and Utilization
Summary
Three Months Ended
March 31,
2024
2023
Landfill RNG Facility Capacity and
Utilization(1)(2)(3)(4)
Design Capacity (Million MMBtus)
1.3
0.9
Volume of Inlet Gas (Million MMBtus)
1.0
0.7
Inlet Design Capacity Utilization %
80
%
75
%
RNG Fuel volume produced (Million
MMBtus)
0.8
0.6
Utilization of Inlet Gas % (5)
81
%
86
%
(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) including the ramp
up period for new projects. 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.
(5) Utilization of Inlet Gas % is lower for the three months
ended March 31, 2024 primarily due to Emerald RNG project which is
in the start up phase as it commenced operations in fourth quarter
of 2023.
RNG Pending Monetization Summary
Three Months Ended
(In 000's)
March 31, 2024
RNG
Fuel
Fuel
Station
Services
Total
Stored Gas Metrics (1)
Beginning balance Stored RNG as of
December 31, 2023
236
58
294
Add: RNG production (MMBtus)
836
77
913
Less: Current period RNG volumes
dispensed
(817
)
(87
)
(904
)
Ending Balance Stored RNG (MMBtus) as of
March 31, 2024
255
48
303
Value of ending balance Stored RNG
using quarter end price (1) (2)
$
13,153
$
5,720
$
18,873
RIN Metrics
Beginning balance as of December 31,
2023
—
22
22
Add: Generated in current period
8,261
2,648
10,909
Less: Sales
(8,257
)
(2,574
)
(10,831
)
Ending RIN credit balance (Available for
sale) as of March 31, 2024
4
96
100
D3 price per RIN at quarter end
$
3.32
$
3.32
$
3.32
Value of RINs using quarter end price
(2)
$
12
$
83
$
95
LCFS Metrics
Beginning balance (net share) as of
December 31, 2023
—
1
1
Add: Generated in current period
12
24
36
Less: Sales
(12
)
(2
)
(14
)
Ending LCFS credit balance (Available for
sale) as of March 31, 2024
—
23
23
LCFS credit price at quarter end
$
67.00
$
67.00
$
67.00
Value of LCFSs using quarter end price
(2)
$
—
$
1,350
$
1,350
Value of RECs using quarter end
price
—
—
$
361
Other Metrics
Average realized sales price - RIN
—
—
$
3.02
Average realized sales price - LCFS
—
—
$
97.90
Total Value of RNG Pending Monetization
at quarter end
$
13,165
$
7,153
$
20,679
(1) Reflects OPAL’s ownership share of Stored RNG (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 March 31, 2024, we have drawn approximately $186.6
million, and utilized $13.6 million of our revolver availability to
issue letters of credit, under the $500 million senior secured
credit facility we entered into in September 2023.
As of March 31, 2024, our liquidity was $334.0 million,
consisting of $299.8 million of availability under the above
referenced credit facility, and $34.2 million of cash, cash
equivalents, and short-term investments.
We believe our liquidity and anticipated cash flows from
operations are sufficient to meet our existing funding needs.
Capital Expenditures
During the first quarter of 2024, OPAL Fuels invested $26.8
million across RNG projects in construction and OPAL Fuels
proprietary fueling stations in construction as compared to $38.8
million in the prior year.
In addition, for the three months ended March 31, 2024, the
Company's portion of capital expenditures in unconsolidated
entities was $10.9 million. This represents our share of capital
expenditures incurred for the Atlantic and Sapphire projects.
Earnings Call
A webcast to review OPAL Fuels’ First Quarter 2024 results is
being held tomorrow, May 10, 2023 at 11:00 AM Eastern Daylight
Time.
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/pychvfvq 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. It is used to
measure the total volume of RNG production that OPAL Fuels expects
to dispense each year. The conversion ratio is 1MMBtu equal to 7.74
GGE.
“LFG” refers to landfill gas.
“MMBtu” refers to million 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 the 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 renewable natural
gas (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. To learn more about
OPAL Fuels and how it is leading the effort to capture North
America’s harmful methane emissions and decarbonize the economy.
For additional information 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
“Cautionary Statement Regarding Forward-Looking Statements” in the
Company's annual report on Form 10-K filed on March 15, 2024, 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.
CONDENSED CONSOLIDATED BALANCE
SHEETS
(In thousands of U.S. dollars,
except share and per share data)
March 31,
2024
December 31,
2023
(Unaudited)
Assets
Current assets:
Cash and cash equivalents (includes $1,160
and $166 at March 31, 2024 and December 31, 2023, respectively,
related to consolidated VIEs)
$
28,207
$
38,348
Accounts receivable, net (includes $334
and $33 at March 31, 2024 and December 31, 2023, respectively,
related to consolidated VIEs)
22,805
27,623
Accounts receivable, related party
14,912
18,696
Restricted cash - current (includes $1,012
and $4,395 at March 31, 2024 and December 31, 2023, respectively,
related to consolidated VIEs)
1,012
4,395
Short term investments
5,975
9,875
Fuel tax credits receivable
4,212
5,345
Contract assets
8,997
6,790
Parts inventory (includes $29 and $29 at
March 31, 2024 and December 31, 2023, respectively, related to
consolidated VIEs)
11,135
10,191
Environmental credits held for sale
1,534
172
Prepaid expense and other current assets
(includes $113 and $107 at March 31, 2024 and December 31, 2023,
respectively, related to consolidated VIEs)
6,373
6,005
Derivative financial assets, current
portion
537
633
Total current assets
105,699
128,073
Capital spares
3,638
3,468
Property, plant, and equipment, net
(includes $26,254 and $26,626 at March 31, 2024 and December 31,
2023, respectively, related to consolidated VIEs)
359,369
339,493
Operating lease right-of-use assets
12,137
12,301
Investment in other entities
206,014
207,099
Note receivable - variable fee
component
2,369
2,302
Other long-term assets
1,651
1,162
Intangible assets, net
1,537
1,604
Restricted cash - non-current (includes
$1,957 and $1,850 at March 31, 2024 and December 31, 2023,
respectively, related to consolidated VIEs)
3,477
4,499
Goodwill
54,608
54,608
Total assets
$
750,499
$
754,609
Liabilities and Stockholders'
Deficit
Current liabilities:
Accounts payable (includes $11 and $744 at
March 31, 2024 and December 31, 2023, respectively, related to
consolidated VIEs)
10,815
13,901
Accounts payable, related party (includes
$802 and $1,046 at March 31, 2024 and December 31, 2023,
respectively, related to consolidated VIEs)
8,166
7,024
Fuel tax credits payable
4,551
4,558
Accrued payroll
10,422
9,023
Accrued capital expenses
10,743
15,128
Accrued expenses and other current
liabilities (includes $861 and $647 at March 31, 2024 and December
31, 2023, respectively, related to consolidated VIEs)
16,792
14,245
Contract liabilities
7,785
6,314
OPAL Term Loan, current portion
1,866
—
Sunoma Loan, current portion (includes
$1,652 and $1,608 at March 31, 2024 and December 31, 2023,
respectively, related to consolidated VIEs)
1,652
1,608
Operating lease liabilities - current
portion
656
638
Other current liabilities (includes $94
and $92 at March 31, 2024 and December 31, 2023, respectively,
related to consolidated VIEs)
94
92
Asset retirement obligation, current
portion
1,812
1,812
Total current liabilities
75,354
74,343
Asset retirement obligation, non-current
portion
5,068
4,916
OPAL Term Loan, net of debt issuance
costs
175,161
176,532
Sunoma Loan, net of debt issuance costs
(includes $19,609 and $20,010 at March 31, 2024 and December 31,
2023, respectively, related to consolidated VIEs)
19,609
20,010
Operating lease liabilities - non-current
portion
11,646
11,824
Earn out liabilities
1,497
1,900
Other long-term liabilities (includes
$1,297 and $211 at March 31, 2024 and December 31, 2023,
respectively, related to consolidated VIEs)
8,637
7,599
Total liabilities
296,972
297,124
Commitments and contingencies
Redeemable preferred non-controlling
interests
130,000
132,617
Redeemable non-controlling interests
705,190
802,720
Stockholders' deficit
Class A common stock, $0.0001 par value,
340,000,000 shares authorized as of March 31, 2024; 30,022,288 and
29,701,146 shares, issued and outstanding at March 31, 2024 and
December 31, 2023, respectively
3
3
Class B common stock, $0.0001 par value,
160,000,000 shares authorized as of March 31, 2024; 71,500,000 and
0 shares issued and outstanding as of March 31, 2024 and December
31, 2023, respectively
7
—
Class C common stock, $0.0001 par value,
160,000,000 shares authorized as of March 31, 2024; and None issued
and outstanding as of March 31, 2024 and December 31, 2023
—
—
Class D common stock, $0.0001 par value,
160,000,000 shares authorized as of March 31, 2024; 72,899,037 and
144,399,037 shares issued and outstanding at March 31, 2024 and
December 31, 2023, respectively
7
14
Additional paid-in capital
—
—
Accumulated deficit
(370,832
)
(467,195
)
Accumulated other comprehensive income
(loss)
42
(15
)
Class A common stock in treasury, at cost;
1,635,783 shares at March 31, 2024 and December 31, 2023
(11,614
)
(11,614
)
Total Stockholders' deficit attributable
to the Company
(382,387
)
(478,807
)
Non-redeemable non-controlling
interests
724
955
Total Stockholders' deficit
(381,663
)
(477,852
)
Total liabilities, Redeemable preferred
non-controlling interests, Redeemable non-controlling interests and
Stockholders' deficit
$
750,499
$
754,609
OPAL FUELS INC.
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS
(In thousands of U.S. dollars,
except share and per share data)
(Unaudited)
Three Months Ended
March 31,
2024
2023
Revenues:
RNG fuel (includes revenues from related
party of $15,495 and $4,715 for the three months ended March 31,
2024 and 2023, respectively)
$
17,727
$
6,749
Fuel station services (includes revenues
from related party of $8,669 and $1,493 for the three months ended
March 31, 2024 and 2023, respectively)
37,142
20,828
Renewable Power (includes revenues from
related party of $1,526 and $1,527 for the three months ended March
31, 2024 and 2023, respectively)
10,083
15,380
Total revenues
64,952
42,957
Operating expenses:
Cost of sales - RNG fuel
8,338
6,038
Cost of sales - Fuel station services
30,335
20,292
Cost of sales - Renewable Power
9,258
8,378
Project development and start up costs
785
1,883
Selling, general, and administrative
13,161
14,074
Depreciation, amortization, and
accretion
3,711
3,567
Income from equity method investments
(4,206
)
(705
)
Total expenses
61,382
53,527
Operating income (loss)
3,570
(10,570
)
Other income (expense):
Interest and financing expense, net
(3,961
)
(641
)
Change in fair value of derivative
instruments, net
403
3,933
Other income (expense)
665
(68
)
Income (loss) before provision for income
taxes
677
(7,346
)
Provision for income taxes
—
—
Net income (loss)
677
(7,346
)
Net loss attributable to redeemable
non-controlling interests
(1,627
)
(8,233
)
Net income (loss) attributable to
non-redeemable non-controlling interests
2
(297
)
Dividends on redeemable preferred
non-controlling interests
2,618
2,763
Net loss attributable to Class A common
stockholders
$
(316
)
$
(1,579
)
Weighted average shares outstanding of
Class A common stock:
Basic
27,368,204
27,383,562
Diluted
27,368,204
27,383,562
Per share amounts:
Basic
$
(0.01
)
$
(0.06
)
Diluted
$
(0.01
)
$
(0.06
)
OPAL FUELS INC.
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
(In thousands of U.S.
dollars)
(Unaudited)
Three Months Ended
March 31,
(in thousands)
2024
2023
Net cash provided by from operating
activities
$
13,718
$
4,171
Net cash used in from investing
activities
(21,626
)
(8,894
)
Net cash used in from financing
activities
(6,638
)
(32,676
)
Net decrease in cash, restricted cash, and
cash equivalents
$
(14,546
)
$
(37,399
)
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 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 loss
to Adjusted EBITDA:
Reconciliation of GAAP Net
income to Adjusted EBITDA
For the Three Months Ended
March 31, 2024 and 2023
(In thousands of
dollars)
Three Months Ended March 31,
2024
Three Months Ended March 31,
2023
RNG
Fuel
Fuel
Station
Services
Renewable
Power
Corporate
Total
RNG
Fuel
Fuel
Station
Services
Renewable
Power
Corporate
Total
Net income (loss) (1)
$
7,131
$
5,722
$
(73
)
$
(12,103
)
$
677
$
(3,563
)
$
41
$
4,542
$
(8,366
)
$
(7,346
)
Adjustments to reconcile net income (loss)
to Adjusted EBITDA
Interest and financing expense, net
4,175
(23
)
(60
)
(131
)
3,961
589
(10
)
264
(202
)
641
Net (income) loss attributable to
non-redeemable non-controlling interests
(2
)
—
—
—
(2
)
297
—
—
—
297
Depreciation, amortization and
accretion
1,392
1,319
1,000
—
3,711
1,309
790
1,452
16
3,567
Adjustments to reflect Adjusted EBITDA
from equity method investments (2)
2,268
—
—
—
2,268
110
—
—
—
110
Loss on warrant exchange
—
—
—
—
—
—
—
—
338
338
Unrealized (gain) loss on derivative
instruments (3)
—
—
96
(403
)
(307
)
—
—
(922
)
(3,933
)
(4,855
)
Non-cash charges (4)
—
—
—
1,048
1,048
—
—
—
1,065
1,065
One-time non-recurring charges (5)
877
—
—
81
958
1,785
492
—
225
2,502
Major maintenance for Renewable Power
—
—
2,909
—
2,909
—
—
2,076
—
2,076
Adjusted EBITDA
$
15,841
$
7,018
$
3,872
$
(11,508
)
$
15,223
$
527
$
1,313
$
7,412
$
(10,857
)
$
(1,605
)
(1) Net income (loss) by segment is included in our quarterly
report on Form 10 Q. Net loss for RNG Fuel includes our portion of
net income on our equity method investments.
(2) Includes interest, depreciation, amortization and accretion
on equity method investments.
(3) Unrealized (gain) loss on derivative instruments includes
change in fair value of commodity swaps, earnout liabilities and
put option on a forward purchase agreement.
(4) 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.
(5) One-time non-recurring charges include (i) certain expenses
related to development expenses on our RNG facilities such as lease
expenses and legal costs incurred during construction phase that
could not be capitalized per GAAP.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240509275563/en/
Investors Todd Firestone Vice President Investor
Relations & Corporate Development 914-705-4001
investors@opalfuels.com
Media Michelle Stein Vice President Corporate
Communications (914) 421-5314 mstein@opalfuels.com
Grafico Azioni OPAL Fuels (NASDAQ:OPAL)
Storico
Da Dic 2024 a Gen 2025
Grafico Azioni OPAL Fuels (NASDAQ:OPAL)
Storico
Da Gen 2024 a Gen 2025
