Sep 30, 2023

Opal Fuels Q3 2023 Earnings Report

Opal Fuels reported solid operating and financial results, made progress on strategic growth plans, and closed a $500 million credit facility.

Key Takeaways

Opal Fuels reported a revenue increase of 7% to $71.1 million, a net income of $0.2 million, and an adjusted EBITDA of $16.5 million. The company's RNG production projects are performing well, and the Emerald RNG project commenced operations, adding approximately 1.3 million MMBtu of annual design capacity. A $500 million credit facility was secured to fund RNG production projects and fueling stations.

Revenues increased by 7% year-over-year to $71.1 million.

Net income reached $0.2 million.

Adjusted EBITDA was $16.5 million.

Emerald RNG project came online, adding 1.3 million MMBtu of annual design capacity.

Total Revenue
$71.1M
Previous year: $66.6M
+6.8%
EPS
-$0.01
Previous year: -$0.06
-83.3%
Total volume delivered
33.1
Previous year: 30.6
+8.2%
Gross Profit
$15M
Previous year: $66.6M
-77.5%
Cash and Equivalents
$34.3M
Previous year: $25.3M
+35.5%
Free Cash Flow
-$28.7M
Previous year: -$52.2M
-45.0%
Total Assets
$690M
Previous year: $656M
+5.2%

Opal Fuels

Opal Fuels

Opal Fuels Revenue by Segment

Forward Guidance

Opal Fuels provided estimates for full year 2023 Adjusted EBITDA to range between $60 and $63 million, RNG Pending Monetization between $20-22 million, approximately $8.5 million in ITC credits, full year 2023 capital expenditures to total approximately $135 million, RNG produced between 2.7 million MMBtu and 2.9 million MMBtu, and RNG sold as transportation fuel between 45 million GGEs and 50 million GGEs.

Positive Outlook

  • Adjusted EBITDA for the full year 2023 is estimated to range between $60 and $63 million.
  • RNG Pending Monetization is expected to range between $20-22 million at December 31, 2023.
  • Approximately $8.5 million in ITC credits are expected to be monetized in the fourth quarter.
  • RNG production is anticipated to range between 2.7 million MMBtu and 2.9 million MMBtu in 2023.
  • RNG sales as transportation fuel are anticipated to range between 45 million GGEs and 50 million GGEs in 2023.

Revenue & Expenses

Visualization of income flow from segment revenue to net income