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- **RNG Production Surges**: 30% YoY growth to 1.3 million MMBtu, with record October output. 
- **Project Pipeline Expansion**: 12 operating RNG facilities (9.1 million MMBtu capacity) and 2.8 million MMBtu under construction. 
- **Financial Resilience**: $19.5 million adjusted EBITDA despite lower RIN prices, $43 million ITC proceeds YTD. 
- **2026 Growth Drivers**: Full-year 45Z tax credits, RNG production expansion, and downstream fuel station services diversification. 
- **Regulatory Watch**: EPA RVO delay impacts 2026 RIN pricing outlook, but RNG bipartisan support persists. 


**【CEO Summary Section】**
- **RNG Production Growth**: Q3 2025 RNG production reached 1.3 million MMBtu, up 30% YoY. October production set a record, aligning with full-year guidance. 
- **Project Expansion**: Brought Atlantic RNG project online (0.33 million MMBtu capacity) and started CMS RNG construction (1.0 million MMBtu). Total operating capacity now 9.1 million MMBtu. 
- **Financial Highlights**: Adjusted EBITDA $19.5 million (down 37% YoY due to lower RIN prices). Completed $17 million ITC monetization, total YTD $43 million. 
- **2026 Outlook**: Expect full-year 45Z tax credits contribution and RNG production growth driven by new projects. Fuel station services segment to support diversification. 

**【CFO Financial Commentary】**
- **Revenue & EBITDA**: Q3 revenue $83 million (down 1% YoY), adjusted EBITDA $19.5 million (down 37% YoY). Lower RIN prices ($2.15 vs $3.13 YoY) and expiring ISCC pathway impacted results. 
- **Liquidity**: $184 million total liquidity (cash $30 million, undrawn revolver $138 million). Capital expenditures $16.4 million for new projects. 
- **ITC Monetization**: On track for $50 million gross proceeds YTD, supporting capital deployment. 
- **45Z Credits**: Begin recognizing in Q4, contributing to 2026 EBITDA. 

**【Q&A Key Highlights】**
- **Production Trajectory**: Sequential growth of ~0.1 million MMBtu/Q, targeting 2.0 million MMBtu annual capacity additions in 2025. 
- **Regulatory Environment**: EPA RVO delay due to government shutdown, but bipartisan support for RNG. 2026 RIN pricing uncertain until rules finalized. 
- **Free Cash Flow**: Maintenance CapEx in OCF, new projects funded through ITC monetization and balance sheet. 2026 EBITDA expected to benefit from 45Z and higher RIN prices. 
- **Downstream Strategy**: Fuel station services segment (47 stations operational, 41 under construction) provides stable cash flow uncorrelated to RIN prices. 
- **Capital Allocation**: Disciplined approach to projects with 4-5 year payback periods. Refinancing of preferred equity with NextEra expected in 2026. 


OPAL Fuels Inc. (OPAL) Q3 2025 Earnings Call Transcript

- **RNG Production Growth**: 33% YoY increase to 1.2 million MMBtus, supporting Q2 EBITDA despite lower RIN prices.
- **Policy Win**: PTC extension through 2029 adds $2/MMBtu tax credits, boosting RNG project economics.
- **Fuel Station Expansion**: 45 stations under construction, 20 owned, driving 30% YoY EBITDA growth.
- **Liquidity Strength**: $203M liquidity supports 2025 construction starts of 2.0 million MMBtu RNG projects.
- **Guidance Confidence**: Maintained via forward RIN sales, project execution, and normalized expenses.

**【Management Opening Remarks】**
- Q2 2025 results were in line with expectations, maintaining full-year guidance despite a 23% YoY decline in adjusted EBITDA to $16.5 million.
- RNG production rose 33% YoY to 1.2 million MMBtus, while Fuel Station Services EBITDA increased 30% YoY to $11.2 million.
- Sold $16.7 million in Inflation Reduction Act tax credits, contributing to cash flow.
- Added to Russell 2000 indices, with <20% of companies included in both Growth and Value indexes.
- Achieved positive EPS for the first time, driven by RNG production ramp-up and policy clarity.
- Passage of the One Big Beautiful Bill Act extended PTCs through 2029, supporting RNG projects with $2/MMBtu tax credits.
- EPA's rollback of Phase III truck regulations reduced barriers for CNG/RNG adoption.

**【CEO Commentary】**
- RNG production ramp-up at Sapphire and Polk facilities, with Atlantic RNG nearing commercial operations.
- 2026 projects (Burlington, Cottonwood) and 2027 Kirby project add 1.8 million MMBtu capacity.
- Fuel Station Services segment benefits from policy clarity, with 45 stations under construction (20 OPAL-owned).
- National fleets increasingly favor CNG/RNG due to policy shifts, equipment availability, and sustainability targets.
- Competitive positioning strengthened by integrated RNG production and fueling station network.

**【CFO Financial Commentary】**
- Q2 revenue $80.5 million (+13% YoY), net income $7.6 million (+292% YoY).
- Lower RIN prices ($2.50 vs $3.13 YoY) and loss of ISCC carbon credits reduced EBITDA.
- $2 million nonrecurring G&A expenses for contract restructuring and advocacy investments.
- Liquidity of $203.2 million (including $138.4M undrawn credit facility) supports construction projects.
- Monetized $17M in tax credits Q2, expecting $50M+ for 2025.
- Maintaining guidance due to forward RIN sales, production ramp-up, and expense normalization.

**【Q&A Highlights】**
- Downstream demand growth driven by national fleets' CNG/RNG deployments, despite slower-than-expected X15 truck adoption.
- Guidance maintained via forward RIN sales, project execution, and normalized G&A expenses.
- M&A opportunities in fragmented RNG sector, with focus on risk-adjusted returns.
- Potential capital return plans to be discussed at Q4 Investor Day.
- Atlantic RNG project nearing commissioning, with 2026 projects on track.
- RNG project returns evaluated against risk-adjusted RIN price outlook, balancing upstream/downstream investments.

OPAL Fuels Inc. (OPAL) Q2 2025 Earnings Call Transcript

- **Q1 2025 Strong Growth**: Adjusted EBITDA up 30% YoY to $20.1M, RNG production +40% YoY to 1.1M MMBtu. 
- **2025 Guidance**: RNG production 5.0-5.4M MMBtu (+37% YoY), FSS EBITDA +30-50%. 
- **Key Drivers**: RNG project ramp (4 in construction), RNG-FSS vertical integration, cost control ($50M ITC sales). 
- **Risks & Opportunities**: Regulatory uncertainty (45Z, EPA), but long-term support for RNG in trucking. CNG adoption gaining traction with 15L engine availability. 
- **Liquidity**: $240M (cash + credit facilities), sufficient for growth. 


**【CEO & Co-CEO Overview】**
- Q1 2025 Adjusted EBITDA: $20.1M (+30% YoY), RNG production: 1.1M MMBtu (+40% YoY). Fuel Station Services EBITDA: $12.5M (+80% YoY). 
- RNG production guidance: 5.0-5.4M MMBtu (2025), +37% YoY. 4 projects in construction (2.1M MMBtu capacity) on track for 2026+ ramp. 
- Regulatory uncertainty (45Z, EPA waivers) may delay RNG adoption, but long-term support for RNG in heavy-duty trucking remains strong. 

**【CFO Financial Highlights】**
- Q1 2025 Revenue: $85.4M (+32% YoY), Net Income: $1.3M (+86% YoY). RNG share of EBITDA: $3.4M (vs $6.5M YoY, due to timing of RIN sales). 
- Capital Expenditures: $17M (Q1), 2025 ITC monetization: ~$50M. Liquidity: $240M (cash + undrawn credit facilities). 
- 2025 Guidance: Adjusted EBITDA $90-110M, RNG production 5.0-5.4M MMBtu. 

**【Q&A Key Takeaways】**
- **Production Growth**: Sequential RNG production growth expected, driven by new projects (e.g., Polk transitioning to direct connect). 2025 RNG EBITDA per MMBtu expected to stabilize as scale benefits offset lower RIN prices. 
- **Tariffs Impact**: No material impact on current projects; future projects will assess tariffs during FID. 
- **RIN Pricing**: Q1 RIN price: ~$2.71/gal, Q2+ expected lower (~$2.60/gal). 
- **Electric Power Segment**: Revenues down due to terminated ISCC contracts, but long-term opportunities in RNG conversion and REC markets. 
- **Shareholder Returns**: Free cash flow to be used for growth, M&A, or returns (buybacks/dividends) if growth slows. 
- **Policy Outlook**: Bipartisan support for RNG incentives (e.g., 45Z, RNG dispensing tax credits) expected in 2025 tax bill. 
- **CNG Adoption**: 15L Cummins engine production ramping; RNG 2% of diesel market, potential 7-10x growth. 


OPAL Fuels (OPAL)-9 May 25-2025 Q1 Earnings call transcript

- **Revenue Growth**: 2024 RNG production up 41% to 3.8 million MMBtu, FSS EBITDA +76%. 2025 RNG guidance 5.0-5.4 million MMBtu (+37%).
- **Financial Health**: 2024 adjusted EBITDA $90 million, 2025 guidance $90-110 million. ITC sales to add $50 million cash flow.
- **Market Dynamics**: RNG supply outpacing dispensing demand; 15-liter engine adoption lagging. EPA rule changes could accelerate RNG adoption.
- **Risk Management**: $2.60/D3 RIN price assumption; $0.10 price swing impacts EBITDA by $5-6 million. Hedged portion of 2025 RINs.


**【CEO Summary Section】**
- **2024 Performance**: Adjusted EBITDA of $90 million, up 76% in Fuel Station Services (FSS) segment. RNG production of 3.8 million MMBtu, 41% higher than 2023, though slightly below guidance due to project ramp-up delays.
- **2025 Outlook**: RNG production expected to grow 37% to 5.4 million MMBtu. FSS EBITDA to increase 30%-50%, driven by new stations and RNG adoption. Capital allocation prioritizes RNG projects with strong returns.
- **Strategic Moves**: Secured 12 new landfill RNG projects, bringing total to 17. Converted 5 renewable power projects to RNG, enhancing margins.

**【CFO Financial Commentary】**
- **Q4 2024 Results**: Revenue $80 million (-9% YoY), adjusted EBITDA $22.6 million (-32% YoY) due to delayed RIN sales. Full-year revenue $299.9 million (+17%), adjusted EBITDA $90 million (+75%).
- **2025 Guidance**: Adjusted EBITDA $90-110 million, assuming $2.60/D3 RIN price. RNG production 5.0-5.4 million MMBtu. ITC sales to contribute $50 million to cash flow.
- **Liquidity**: $223.6 million as of Q4, with $178.4 million available under credit facility.

**【Q&A Key Highlights】**
- **RIN Pricing**: 2025 guidance assumes $2.60/D3, down $0.50 from 2024. Every $0.10 shift impacts EBITDA by $5-6 million. Company has hedged a portion of 2025 RINs.
- **Regulatory Environment**: EPA's Phase 3 truck rule removal may accelerate RNG adoption. Advocating for stable D3 volumes and RFS reforms.
- **Dispensing Market**: Tightness due to slower 15-liter engine adoption. 20 new OPAL-owned stations expected in 2025, targeting Class 8 fleets.
- **Project Risks**: RNG project ramp-up timelines (e.g., Polk, Sapphire) caused Q4 underperformance. 2025 projects (Burlington, Cottonwood, Kirby) on track for 2026 completion.


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