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Dec 31, 2023
Opal Fuels Q4 2023 Earnings Report
Reported financial and operating results, aligning with guidance and achieving strategic initiatives.
Key Takeaways
Opal Fuels reported Q4 2023 revenue of $87.0 million and net income of $20.1 million. The company continues to progress on its strategic and operational goals, having more than doubled RNG production and significantly expanded its fueling station network. They exited 2023 with 5.2 million MMBtu of annual design capacity online at eight RNG facilities.
Revenue for Q4 2023 was $87.0 million, up 30% compared to the same period last year.
Net income for Q4 2023 was $20.1 million, compared to $32.0 million in the comparable period last year.
Adjusted EBITDA for Q4 2023 was $32.0 million, compared to $20.4 million in the comparable period last year.
RNG produced was 0.8 million MMBtu, an increase of 33% compared to the prior-year period.
Opal Fuels
Opal Fuels
Opal Fuels Revenue by Segment
Revenue by Segment
RNG Fuel Revenue
CapyFin.comFuel Station Services Revenue
CapyFin.comRenewable Power Revenue
CapyFin.com Forward Guidance
The Company currently estimates that Adjusted EBITDA for the full year 2024 will range between $90 million and $100 million.
Positive Outlook
- Adjusted EBITDA for the full year 2024 will range between $90 million and $100 million.
- Adjusted EBITDA does not include Approximately $40 million of potential ITC cash proceeds from Emerald and the three landfill RNG projects coming online this year, which would be included in net income in 2024.
- Adjusted EBITDA does not include An increase of approximately $15 million from RNG pending monetization in 2024, which represents the time lag between the recognition of RNG production costs compared with the associated revenues.
- Adjusted EBITDA does not include An adjustment for development and project start up expenses of approximately $12 million in 2024, which is predominantly the Prince William virtual pipeline expense.
- We anticipate Adjusted EBITDA from our Fuel Station Services segment to grow by 75%-90% compared to 2023.
Challenges Ahead
- Completion of construction at two dairy projects in California (Hilltop and Vander Schaaf) has been delayed due to a dispute with the Engineering, Procurement and Construction contractor over a series of change order requests.
- The Atlantic RNG project is expected to commence commercial operations in mid-2025.
- 2024 guidance assumes a weighted average annual price for D3 RINs of approximately $3.0/gallon.
- 2024 guidance assumes a natural gas price of $2.00/MMBtu.
- 2024 guidance assumes an LCFS credit price of $65.0/metric ton.
Revenue & Expenses
Visualization of income flow from segment revenue to net income