NASDAQ$OPAL

Opal Fuels Inc-A · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Opal Fuels reported solid second quarter results and remained on target to achieve 2024 financial objectives.

Opal Fuels reported revenue of $71.0 million and net income of $1.9 million for the second quarter of 2024. Adjusted EBITDA was $18.9 million, driven by growing RNG production, supportive RIN prices, and improved margins in the Fuel Stations Services segment. The company added the Burlington RNG facility to its in-construction portfolio, bringing the combined number of RNG projects in construction and operation to 16.

  • Revenue for the three months ended June 30, 2024, was $71.0 million, an increase of 29% compared to the same period last year.
  • Net income for the three months ended June 30, 2024, was $1.9 million, compared to $114.1 million in the same period last year.
  • Adjusted EBITDA for the three months ended June 30, 2024, was $18.9 million, an increase of $13.8 million compared to the same period last year.
  • RNG produced was 0.9 million MMBtu for the three months ended June 30, 2024, an increase of 50% compared to the prior-year period.

Headline financials

Total Revenue

$71M

Previous: $55M+28.9%
EPS (adj)

-$0.01

Previous: -$0.12+91.7%
Capital Expenditures

-$49.7M

Previous: -$72M+30.9%
Free Cash Flow

-$47.8M

Previous: $42M-213.8%
Net Income

$1.91M

Previous: $114M-98.3%
Operating Income

$5.69M

Previous: -$6.37M+189.3%
Gross Profit

$68.5M

Previous: $54.6M+25.5%
Cash & Equivalents

$19M

Previous: $21.6M-11.9%
Total Assets

$782M

Previous: $672M+16.4%
Stock-Based Comp

$1.84M

Previous: $1.88M-1.9%

Revenue & EPS history

Opal Fuels · Revenue · Quarterly

$71M

Q2 2024+28.9%vs Q2 2023
Beat estimate in 1 of 13 quarters(8%)
ActualEstimate

Revenue by segment

Opal Fuels · $71.1M total across 3 segments · Q3 2023

  • Fuel Station Services
    $37.3M
  • RNG Fuel
    $20.1M
  • Renewable Power
    $13.7M

Forward guidance

Opal Fuels is maintaining its 2024 Adjusted EBITDA guidance between $90 million and $100 million. RNG production is expected to range between 4.0 and 4.4 million MMBtu. Capex is maintained at $230.0 million for 2024. Growth in Fuel Station Services Adjusted EBITDA is maintained between 75-90% in 2024.

Tailwinds

  • Maintaining 2024 Adjusted EBITDA between $90 million and $100 million.
  • RNG projects placed into construction in 2024 is maintained to be at least 2.0 million MMBtu of annual design capacity.
  • Capex is maintained at $230.0 million for 2024.
  • Growth in Fuel Station Services Adjusted EBITDA is maintained between 75-90% in 2024
  • The Sapphire RNG project is mechanically complete and commercial operations are expected to begin in the third quarter.

Headwinds

  • RNG production is expected to range between 4.0 and 4.4 million MMBtu, compared with our previous guidance of 4.4-4.8 million MMBtu, primarily driven by slower than anticipated ramp up of our most recent facilities.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 14 quarterly earnings reports · overlaid with Q2 2024

Historical avgQ2 2024

-1.1%

Avg return

Earnings day

-3.6%

Avg return

5 days after

-0.7%

Avg return

30 days after

40%

6 / 15 earnings

Positive

+30.3%

Q4 2025

Best reaction

-12.9%

Q4 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-3.5%-14.5%
Q4 2025+30.3%-3.7%+15.0%
Q3 2025+4.0%+13.1%+30.2%
Q1 2025-7.5%-6.6%+33.2%
Q4 2024-12.9%-7.2%-26.4%
Q3 2024+0.0%-3.9%-4.7%
Q2 2024-2.4%-9.0%-14.9%
Q1 2024+2.4%-1.0%-7.3%
Q4 2023+1.9%+1.5%+0.4%
Q3 2023+0.9%+7.0%+0.3%
Q2 2023-5.1%-4.0%-9.5%
Q1 2023+0.5%+0.0%-5.0%
Q4 2022-3.4%-1.3%+7.5%
Q3 2022-10.4%-12.4%-16.5%
Q2 2022-10.9%-12.2%-12.9%

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