WHITE PLAINS, N.Y.–(BUSINESS WIRE)–$OPAL–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 and twelve months ended December 31, 2024.

“2024 was a solid year for OPAL Fuels, we made strong progress on our operational and strategic objectives and have positioned the company for continued success this year and for many years to come,” said Adam Comora, co-CEO of OPAL Fuels. “We have continued to scale rapidly over the last twelve months. We brought online three large landfill RNG projects totaling 3.8 million MMBtu of annual design capacity and now have 11 in operation. Our total annual design capacity for RNG projects in operation and in construction is now 11.4 million MMBtu. Our disciplined execution and vertical integration continues to drive growth of our intrinsic value as we capitalize on the growing biofuels market.”

“Since becoming a public company in 2022, we have, organically, more than tripled our operating production capacity and doubled EBITDA through a combination of converting existing biogas-to-electricity plants into RNG, new RNG projects, and strong growth in our fuel station services segment. Despite near term market volatility, 2025 is expected to be another year of solid growth for OPAL Fuels,” continued Comora.

“We’re proud of our position as one of the largest integrated RNG operators in the market.” said co-CEO Jonathan Maurer. “OPAL Fuels is a leader in the space and our track record of success makes us a logical choice for feedstock suppliers seeking an operating partner, and fleet customers looking to deploy trucks that are Cleaner, Cheaper, Now.”

“We’re excited about our outlook for 2025, our guidance reflects our expectation of executing our business plan as we navigate challenging market conditions. We expect to continue to expand our RNG facility footprint and grow our Fuel Station Services segment,” said co-CEO Jonathan Maurer. “The management team remains focused on disciplined execution to drive shareholder value.”

Financial Highlights

Revenue for the three and twelve months ended December 31, 2024, was $80.0 million and $300.0 million, respectively, 8% lower and 17% higher, compared to same periods last year.

Net income (loss) for the three and twelve months ended December 31, 2024, was a net loss of $5.4 million and net income of $14.3 million, respectively, compared to $20.1 million and $127.0 million net income, in the comparable periods last year.¹

Basic net earnings (loss) per share attributable to Class A common shareholders for the three and twelve months ended December 31, 2024, was $(0.05) and $0.02, respectively compared to $0.11 and $0.70 in the comparable periods last year.¹

Adjusted EBITDA² for the three and twelve months ended December 31, 2024, was $22.6 million and $90.0 million, respectively, compared to $32.0 million and $52.0 million in comparable periods last year.

At December 31, 2024, RNG Pending Monetization totaled $20.3 million.

Operational Highlights

We commenced operations at three landfill RNG projects in 2024, Prince William, Sapphire, and Polk representing an aggregate annual design capacity of 3.6 million MMBtu, increasing the aggregate annual design capacity of our operating RNG projects to 8.8 million MMBtu at year end 2024. Including the projects currently in construction, aggregate annual design capacity is 11.4 million MMBtu.^3,4

RNG produced was 1.1 million and 3.8 million MMBtu, for the three and twelve months ended December 31, 2024, an increase of 38% and 41% compared to the prior-year periods.

The Fuel Station Services segment sold, dispensed, and serviced an aggregate of 41.9 million and 150.2 million GGEs of transportation fuel for the three and twelve months ended December 31, 2024, an increase of 19% and 13% compared to the prior-year periods. Of this amount, RNG dispensed as a transportation fuel was 19.3 million and 74.0 million GGEs, respectively an increase of 54% and 69% compared to the prior-year periods.

____________________________

¹Net income for the twelve months ended December, 2023 included a $122.9 million non-cash gain on deconsolidation of variable interest entities (“VIEs”).

²This 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.”

³ 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.

⁴ Represents OPAL Fuels’ proportional share with respect to RNG projects owned with joint venture partners.

Construction Update

Three landfill RNG projects entered construction in 2024, Burlington, Cottonwood, and Kirby, representing an aggregate annual design capacity of 1.8 million MMBtu for OPAL’s share.

The Atlantic RNG project is expected to commence commercial operations in the third quarter of 2025. This project represents approximately 0.3 million MMBtu for OPAL Fuels’ 50% ownership share of annual design capacity.

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.⁵

At December 31, 2024 we had 47 stations under construction including 20 owned by OPAL.

____________________________________________

⁵ For more information, please see the Company’s Annual Report on Form 10-K for the twelve months ended December 31, 2024.

2025 Guidance

The Company currently estimates that Adjusted EBITDA for the full year 2025 will range between $90 million and $110 million which assumes a $2.60/gallon D3 RIN price.

Adjusted EBITDA is based on an RNG production range of 5.0 to 5.4 million MMBtu.

We anticipate 2025 Adjusted EBITDA from our Fuel Station Services segment to grow by 30%-50% compared to 2024.

We anticipate putting into construction approximately 2.0 million annual MMBtu of RNG annual design capacity in 2025.

Adjusted EBITDA does not include approximately $50 million of anticipated ITC sale proceeds from recent RNG projects, which would be included in operating cash flow and net income in 2025.

Results of Operations

(in thousands of dollars, except RNG Fuel data)	Three Months Ended December 31,						Twelve Months Ended December 31,
		2024			2023			2024			2023
Revenue
RNG Fuel	$	25,384		$	28,824		$	88,420		$	66,292
Fuel Station Services		45,081			46,923			166,875			135,012
Renewable Power		9,558			11,261			44,677			54,804
Total Revenue ⁽¹⁾	$	80,023		$	87,008		$	299,972		$	256,108

Cost of sales	$	52,394		$	51,691		$	199,851		$	183,900
Project development and startup costs	$	8,586		$	4,866		$	19,109		$	4,866
Other operating expenses ⁽²⁾	$	19,389		$	9,072		$	59,790		$	60,302

Net income⁽³⁾	$	(5,367	)	$	20,093		$	14,325		$	127,024
Adjusted EBITDA⁽⁴⁾
RNG Fuel ⁽⁵⁾		18,035			23,280			74,478			48,703
Fuel Station Services		12,650			12,034			40,261			22,847
Renewable Power		4,202			3,865			21,416			26,132
Corporate		(12,288	)		(7,160	)		(46,150	)		(45,732	)
Consolidated Adjusted EBITDA	$	22,599		$	32,019		$	90,005		$	51,950

RNG Fuel volume produced (Million MMBtus)		1.1			0.8			3.8			2.7
RNG Fuel volume dispensed (Million GGEs)		19.3			12.5			74.0			43.8
Total volumes sold, dispensed, and serviced (Million GGEs)		41.9			35.3			150.2			133.2

⁽¹⁾		Excludes revenues from equity method investments.

⁽²⁾		Includes selling, general and administrative expenses, depreciation and amortization expenses, impairment and income (loss) from equity method investments. Please refer to the Statement of Operations at the end of the press release for additional information.

⁽³⁾		Net income for twelve months ended December 31, 2023 included a $122.9 million non-cash gain on deconsolidation of variable interest entities (“VIEs”).

⁽⁴⁾		This is a non-GAAP financial measure. A reconciliation of this non-GAAP financial measure to a comparable GAAP financial 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.”

⁽⁵⁾		Includes incremental virtual pipeline costs (i.e., actual costs less anticipated operating costs of a permanent interconnection) on our Prince William RNG project which are temporary in nature and expected to be incurred until mid-2025 when the permanent interconnection is expected to be operational.

Results of Operations from equity method investments

	Three months ended December 31,				Twelve months ended December 31,
(in thousands of dollars)		2024		2023		2024		2023
Revenue	$	34,199	$	26,147	$	111,296	$	50,074
Gross profit		13,991		13,457		45,803		12,065
Net income		9,521		4,689		36,100		6,323

OPAL’s share of revenues from equity method investments		12,193		11,278		45,917		21,856
OPAL’s share of gross profit from equity method investments		3,832		6,625		19,826		9,145
OPAL’s share of net income from equity method investments ⁽¹⁾		1,407		4,092		13,235		5,525

OPAL’s share of Adjusted EBITDA from equity method investments	$	4,243	$	6,750	$	24,954	$	11,437

⁽¹⁾Net income from equity method investments represents our portion of the net income from equity method investments including $1.5 million and $5.8 million of amortization expense related to basis differences for the three and twelve months ended December 31, 2024 and $1.4 million and $3.1 million for the three and twelve months ended December 31, 2023.

Landfill RNG Facility Capacity and Utilization Summary

	Three Months Ended December 31,		Twelve Months Ended December 31,
	2024	2023	2024	2023
Landfill RNG Facility Capacity and Utilization^(1)(2)(3)(4)
Design Capacity (Million MMBtus)	2.1	1.3	6.6	4.1
Volume of Inlet Gas (Million MMBtus)	1.3	1.0	4.6	3.2
Inlet Design Capacity Utilization %	67 %	80 %	73 %	79 %
RNG Fuel volume produced (Million MMBtus)	1.1	0.7	3.7	2.6
Utilization of Inlet Gas %	78 %	79 %	81 %	83 %

⁽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). 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.

RNG Pending Monetization Summary

	Three Months Ended
*(In 000’s)*	December 31, 2024
	RNG Fuel			Fuel Station Services			Total
Un-Monetized Environmental Attributes (MMBtus) ⁽¹⁾
Beginning balance as of September 30, 2024		280			57			337
Add: production		1,000			100			1,100
Less: Current period volumes monetized		(976	)		(109	)		(1,085	)
Ending Balance as of December 31, 2024		304			48			352

Value of ending balance using quarter end price⁽²⁾	$	6,156		$	10,573		$	16,729

RIN Metrics
Beginning balance as of September 30, 2024		69			44			113
Add: Generated in current period		9,776			137			9,913
Less: Sales		(9,844	)		(180	)		(10,024	)
Ending RIN credit balance (Available for sale) as of December 31, 2024		1			1			2
D3 price per RIN at quarter end	$	2.45		$	2.45		$	2.45
Value of RINs using quarter end price ⁽²⁾	$	2		$	2		$	5

LCFS Metrics
Beginning balance (net share) as of September 30, 2024		6			70			76
Add: Generated in current period		13			29			42
Less: Sales		(12	)		(3	)		(15	)
Ending LCFS credit balance (Available for sale) as of December 31, 2024		7			96			103
LCFS credit price at quarter end	$	75.25		$	75.25		$	75.25
Value of LCFSs using quarter end price ⁽²⁾	$	614		$	2,910		$	3,524

Value of RECs using quarter end price		—			—		$	88

Other Metrics

Average realized sales price – RIN		—			—		$	3.22
Average realized sales price – LCFS		—			—		$	100.00

Total Value of RNG Pending Monetization at quarter end	$	6,772		$	13,485		$	20,346

⁽¹⁾Reflects OPAL’s ownership share of un-monetized environmental attributes associated with our RNG production (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 December 31, 2024, our liquidity was $223.6 million, consisting of $178.4 million of unused capacity under our $450 million senior secured credit facility, $20.9 million of unused capacity under the associated revolver, and $24.3 million of cash, cash equivalents, and short-term investments. In 2025 we expect approximately $50 million of cash proceeds from ITC sales bolstering both our earnings and operating cash flow to continue to fund our investments. As we disclosed in recent filings we agreed to a 12-month extension of the draw period on the credit facility.

We believe our liquidity, operating cash flows, and anticipated sources of capital are sufficient to meet our expected 2025 funding needs.

Capital Expenditures

During the twelve months ended December 31, 2024, OPAL Fuels invested $127.2 across RNG projects in construction and OPAL Fuels proprietary fueling stations in construction as compared to $113.8 million in the prior year.

In addition, for the twelve months ended December 31, 2024, the Company’s portion of capital expenditures in unconsolidated entities was $35.2 million. This represents our share of capital expenditures incurred by equity method investments.

Earnings Call

A webcast to review OPAL Fuels’ Fourth Quarter and Full Year 2024 results is being held tomorrow, March 14, 2024 at 11:00AM EDT.

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/49xbizz5. 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. The conversion ratio is 1 MMBtu of natural gas equal to 7.74 GGE.

“LFG” refers to landfill gas.

“MMBtu” refers to 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 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 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. For additional information, and to learn more about OPAL Fuels and how it is leading the effort to capture North America’s naturally occurring methane and decarbonize the economy, 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 “Forward-Looking Statements and Risk Factor Summary” in the Company’s Annual Report on Form 10-K filed on March 17, 2025, 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.

CONSOLIDATED BALANCE SHEETS
(In thousands of U.S. dollars, except per share data)

	December 31, 2024			December 31, 2023
Assets
Current assets:
Cash and cash equivalents (includes $358 and $166 at December 31, 2024 and December 31, 2023, respectively, related to consolidated VIEs)	$	24,310		$	38,348
Accounts receivable, net (includes $435 and $33 at December 31, 2024 and December 31, 2023, respectively, related to consolidated VIEs)		32,013			27,623
Accounts receivable, related party		14,522			18,696
Restricted cash – current (includes $972 and $4,395 at December 31, 2024 and December 31, 2023, respectively, related to consolidated VIEs)		972			4,395
Short term investments		—			9,875
Fuel tax credits receivable		5,639			5,345
Contract assets		11,075			6,790
Parts inventory (includes $29 and $29 at December 31, 2024 and December 31, 2023, respectively, related to consolidated VIEs)		10,294			10,191
Convertible note receivable		760			—
Environmental credits held for sale		6,314			172
Prepaid expense and other current assets (includes $144 and $107 at December 31, 2024 and December 31, 2023, respectively, related to consolidated VIEs)		11,051			6,005
Derivative financial assets, current portion		238			633
Total current assets		117,188			128,073
Capital spares		4,380			3,468
Property, plant, and equipment, net (includes $25,428 and $26,626 at December 31, 2024 and December 31, 2023, respectively, related to consolidated VIEs)		458,258			339,493
Operating right-of use assets		12,731			12,301
Investment in other entities		223,594			207,099
Note receivable – variable fee component		2,509			2,302
Derivative financial assets, non-current portion		448			—
Other long-term assets		2,085			1,162
Intangible assets, net		1,330			1,604
Restricted cash – non-current (includes $2,315 and $1,850 at December 31, 2024 and December 31, 2023, respectively, related to consolidated VIEs)		3,946			4,499
Goodwill		54,608			54,608
Total assets	$	881,077		$	754,609
Liabilities and Equity
Current liabilities:
Accounts payable (includes $22 and $744 at December 31, 2024 and December 31, 2023, respectively, related to consolidated VIEs)		16,419			13,901
Accounts payable, related party (includes $426 and $1,046 at December 31, 2024 and December 31, 2023, respectively, related to consolidated VIEs)		7,932			7,024
Fuel tax credits payable		4,422			4,558
Accrued payroll		9,580			9,023
Accrued capital expenses		23,238			15,128
Accrued environmental credit rebates		5,391			4,057
Accrued expenses and other current liabilities (includes $974 and $647 at December 31, 2024 and December 31, 2023, respectively, related to consolidated VIEs)		9,529			10,188
Contract liabilities		9,276			6,314
OPAL Term Loan, current portion		10,865			—
Sunoma loan, current portion (includes $1,756 and $1,608 at December 31, 2024 and December 31, 2023, respectively, related to consolidated VIEs)		1,756			1,608
Derivative financial liability, current portion		9			—
Operating lease liabilities – current portion		780			638
Other current liabilities (includes $— and $92 at December 31, 2024 and December 31, 2023, respectively, related to consolidated VIEs)		1,595			92
Asset retirement obligation, current portion		2,804			1,812
Total current liabilities		103,596			74,343
Asset retirement obligation, non-current portion		5,082			4,916
OPAL Term Loan, net of debt issuance costs		266,630			176,532
Sunoma loan, net of debt issuance costs (includes $18,373 and $20,010 at December 31, 2024 and December 31, 2023, respectively, related to consolidated VIEs)		18,373			20,010
Operating lease liabilities – non-current portion		12,155			11,824
Earn out liabilities		304			1,900
Derivative liabilities – non-current portion		63			—
Other long-term liabilities (includes $2,495 and $211 at December 31, 2023 and December 31, 2022, respectively, related to consolidated VIEs)		9,842			7,599
Total liabilities		416,045			297,124
Commitments and contingencies
Redeemable preferred non-controlling interests		130,000			132,617
Redeemable non-controlling interests		482,863			802,720
Stockholders’ (deficit) equity
Class A common stock, $0.0001 par value, 340,000,000 shares authorized as of December 31, 2024; shares issued: 30,065,260 and 29,701,146 at December 31, 2024 and December 31, 2023, respectively; shares outstanding: 28,429,477 and 28,065,363 at December 31, 2024 and December 31, 2023, respectively		3			3
Class B common stock, $0.0001 par value, 160,000,000 shares authorized as of December 31, 2024; 71,500,000 and none issued and outstanding as of December 31, 2024 and December 31, 2023		7			—
Class C common stock, $0.0001 par value, 160,000,000 shares authorized as of December 31, 2024; None issued and outstanding as of December 31, 2024 and December 31, 2023		—			—
Class D common stock, $0.0001 par value, 160,000,000 shares authorized as of December 31, 2024; 72,899,037 and 144,399,037 issued and outstanding at December 31, 2024 and December 31, 2023		7			14
Additional paid-in capital		—			—
Accumulated deficit		(137,004	)		(467,195	)
Accumulated other comprehensive (loss) income		152			(15	)
Class A common stock in treasury, at cost; 1,635,783 and 1,635,783 shares at December 31, 2024 and December 31, 2023		(11,614	)		(11,614	)
Total Stockholders’ (deficit) equity attributable to the Company		(148,449	)		(478,807	)
Non-redeemable non-controlling interests		618			955
Total Stockholders’ (deficit) equity		(147,831	)		(477,852	)
Total liabilities, Redeemable preferred, Redeemable non-controlling interests and Stockholders’ (deficit) equity	$	881,077		$	754,609

Contacts

Investors
Todd Firestone

Vice President Investor Relations & Corporate Development

914-705-4001

[email protected]

ICR, Inc.

[email protected]

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Business Wire 13 March 2025

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