NASDAQ$OPAL

Opal Fuels Inc-A · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Reported financial and operating results, aligning with guidance and achieving strategic initiatives.

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.

Headline financials

Total Revenue

$87M

Previous: $66.7M+30.4%
EPS (adj)

$0.11

Previous: $0.18-38.9%
RNG Produced (MMBtu)

800.0K

No prior period
RNG Dispensed (GGEs)

12.5M

No prior period
Total Volumes Sold/Dispensed/Serviced (GGEs)

35.3M

Previous: 32.8+107621851.2%
Inlet Design Capacity Utilization

80.0%

No prior period
Utilization of Inlet Gas

79.0%

No prior period
Capital Expenditures

-$21.6M

Previous: $46.5M-146.4%
Net Income

$20.1M

Previous: $2.42M+729.9%
Operating Income

$7.04M

Previous: $2.42M+190.8%
Gross Profit

$87M

Previous: $66.7M+30.4%
Stock-Based Comp

$1.16M

Previous: $990K+16.9%

Revenue & EPS history

Opal Fuels · Revenue · Quarterly

$87M

Q4 2023+30.4%vs Q4 2022
Beat estimate in 1 of 14 quarters(7%)
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

The Company currently estimates that Adjusted EBITDA for the full year 2024 will range between $90 million and $100 million.

Tailwinds

  • 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.

Headwinds

  • 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.

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 Q4 2023

Historical avgQ4 2023

-1.1%

Avg return

Earnings day

-3.6%

Avg return

5 days after

-1.7%

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%-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%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro