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Dec 30, 2024
Opal Fuels Q4 2024 Earnings Report
Opal Fuels reported its financial and operating results for the fourth quarter and full year ended December 31, 2024.
Key Takeaways
OPAL Fuels reported a solid year in 2024, achieving significant progress in operational and strategic objectives, including scaling rapidly by bringing three large landfill RNG projects online, increasing total annual design capacity to 11.4 million MMBtu, and more than tripling operating production capacity since becoming a public company in 2022.
Revenue for the three months ended December 31, 2024, was $80.0 million, an 8% decrease compared to the same period last year.
Net loss for the three months ended December 31, 2024, was $5.4 million, compared to a net income of $20.1 million in the comparable period last year.
Adjusted EBITDA for the three months ended December 31, 2024, was $22.6 million, compared to $32.0 million in the comparable period last year.
RNG produced for the three months ended December 31, 2024, was 1.1 million MMBtu, a 38% increase 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
OPAL Fuels anticipates continued growth in 2025, with Adjusted EBITDA projected to range between $90 million and $110 million, assuming a D3 RIN price of $2.60/gallon. The company expects to expand its RNG facility footprint and grow its Fuel Station Services segment.
Positive Outlook
- Adjusted EBITDA for the full year 2025 is estimated to range between $90 million and $110 million.
- Adjusted EBITDA is based on an RNG production range of 5.0 to 5.4 million MMBtu.
- 2025 Adjusted EBITDA from the Fuel Station Services segment is anticipated to grow by 30%-50% compared to 2024.
- Approximately 2.0 million annual MMBtu of RNG annual design capacity is expected to be put into construction in 2025.
- Approximately $50 million of anticipated ITC sale proceeds from recent RNG projects will be included in operating cash flow and net income in 2025.
Challenges Ahead
- Completion of construction at two dairy projects in California (Hilltop and Vander Schaaf) continues to be 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 the third quarter of 2025, which is not yet operational.
- Near term market volatility is acknowledged as a factor in 2025.
- The company is navigating challenging market conditions.
- No specific negative financial guidance metrics were provided beyond general market conditions and project delays.