Core Viewpoint - OPAL Fuels Inc. has experienced significant selling pressure, resulting in an 11.5% decline in stock price over the past four weeks, but analysts anticipate better earnings than previously expected, indicating potential for recovery [1]. Group 1: Technical Indicators - The stock is currently in oversold territory, with a Relative Strength Index (RSI) reading of 29.86, suggesting a possible reversal in trend [5]. - RSI is a momentum oscillator that helps identify whether a stock is overbought or oversold, with readings below 30 typically indicating an oversold condition [2][3]. Group 2: Fundamental Indicators - There has been a strong consensus among sell-side analysts to raise earnings estimates for OPAL, leading to a 37.7% increase in the consensus EPS estimate over the last 30 days, which often correlates with price appreciation [6]. - OPAL holds a Zacks Rank 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, further supporting the potential for a turnaround [7].

Core Viewpoint - OPAL Fuels Inc. is experiencing a positive trend in earnings estimates, which is likely to drive its stock price higher [1][2]. Earnings Estimates - Current quarter earnings are projected at $0.44 per share, reflecting a 300% increase from the previous year [4]. - The Zacks Consensus Estimate for the current quarter has risen by 195.24% over the last 30 days, with one estimate increasing and no negative revisions [4]. - For the full year, earnings are expected to be $0.80 per share, indicating a 15.94% increase from the prior year [5]. - The consensus estimate for the current year has increased by 37.68%, with one estimate moving higher and no negative revisions [5]. Zacks Rank - OPAL Fuels Inc. holds a Zacks Rank 1 (Strong Buy) due to favorable estimate revisions, which historically correlate with stock performance [6]. - Stocks with Zacks Rank 1 and 2 have shown significant outperformance compared to the S&P 500 [6]. Stock Performance - OPAL Fuels Inc. shares have increased by 5.4% over the past four weeks, indicating investor confidence in its earnings growth prospects [7].

Core Viewpoint - OPAL Fuels Inc. has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system is based on changes in earnings estimates, which are strongly correlated with near-term stock price movements [4][6]. - An increase in earnings estimates typically leads to higher fair value calculations by institutional investors, resulting in buying or selling pressure that affects stock prices [4]. Company Performance Indicators - OPAL Fuels Inc. is projected to earn $0.75 per share for the fiscal year ending December 2024, reflecting an 8.7% year-over-year increase [8]. - Over the past three months, the Zacks Consensus Estimate for OPAL has risen by 0.6%, indicating a positive trend in earnings expectations [8]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with only the top 20% receiving a 'Strong Buy' or 'Buy' rating [9][10]. - OPAL Fuels Inc.'s upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [10].

Group 1 - The focus is on private investors and former financial advisors who specialize in researching growth companies, particularly those with a market capitalization of up to $15 billion [1] - The articles will emphasize small companies that exhibit high growth potential and innovation capabilities, with a core focus on renewable energy and cutting-edge industrial innovation [1] Group 2 - The analysis is based on fundamental analysis and aims to provide insights into American and European companies [1] - The platform encourages open discussion and engagement from readers, promoting a respectful exchange of ideas [1]

Project Operations and Capacity - As of September 30, 2024, the company owned and operated 25 projects, including 10 RNG projects with a design capacity of 7.8 million MMBtus per year and 15 Renewable Power projects with a nameplate capacity of 105.8 MW per hour[185]. - The company is actively pursuing expansion of its RNG-generating capacity, with a portfolio of projects in construction and development, including six Renewable Power projects considered for conversion to RNG[185]. - The company has a total of 7,765,807 MMBtus of RNG projects in operation as of September 30, 2024[208]. - The company has 3,027,569 MMBtus of RNG projects currently under construction, with expected commercial operation dates in 2024 and 2025[208]. - The company's landfill RNG facility design capacity rose to 1.7 million MMBtus for the three months ended September 30, 2024, up from 1.0 million MMBtus in 2023, a 70% increase[204]. - The company expects inlet design capacity utilization to remain in the range of 75-85% over the next several years[204]. Revenue and Financial Performance - Total revenues for the three months ended September 30, 2024, reached $84.0 million, an increase of $12.9 million or 18% compared to $71.1 million in the same period of 2023[217]. - Revenue from RNG Fuel increased by $5.8 million or 29% for the three months ended September 30, 2024, compared to the same period in 2023, primarily due to higher sales volumes and pricing of RINs and LCFSs[218]. - Revenue from Fuel Station Services increased by $8.1 million or 22% for the three months ended September 30, 2024, driven by higher volumes and pricing in RIN and LCFS services[219]. - Revenue from Renewable Power decreased by $0.9 million or 7% for the three months ended September 30, 2024, primarily due to the conversion of two facilities into RNG facilities[222]. - Operating income for the three months ended September 30, 2024, was $12.3 million, a significant increase of $8.7 million or 242% compared to $3.6 million in the same period of 2023[217]. - Net income for the three months ended September 30, 2024, was $17.1 million, a substantial increase of $16.9 million compared to $0.2 million in the same period of 2023[217]. - The company reported a net income attributable to Class A common stockholders of $2.4 million for the three months ended September 30, 2024, compared to a loss of $0.4 million in the same period of 2023[217]. Costs and Expenses - Total expenses for the three months ended September 30, 2024, were $71.7 million, an increase of $4.2 million or 6% compared to $67.5 million in the same period of 2023[217]. - Cost of sales from RNG Fuel increased by $1.7 million or 21% for the three months ended September 30, 2024, primarily due to the Prince William facility coming online[223]. - Cost of sales from Fuel Station Services increased by $1.7 million or 5% for the three months ended September 30, 2024, mainly due to higher dispensing fees[224]. - Cost of sales from Renewable Power decreased by $3.3 million, or 30%, for the three months ended September 30, 2024 compared to the same period in 2023[225]. - Project development and startup costs increased by $5.8 million, or 598%, for the three months ended September 30, 2024 compared to the same period in 2023[227]. - Interest and financing expenses, net increased by $2.1 million, or 74%, for the three months ended September 30, 2024 compared to the same period in 2023[228]. Cash Flow and Capital Expenditures - Net cash provided by operating activities for the nine months ended September 30, 2024 was $31.9 million, an increase of $27.1 million compared to the same period in 2023[239]. - Net cash used in investing activities for the nine months ended September 30, 2024 was $86.5 million, an increase of $41.6 million compared to the same period in 2023[240]. - Net cash provided by financing activities for the nine months ended September 30, 2024 was $31.6 million, an increase of $47.1 million compared to the net cash used in financing activities for the same period in 2023[241]. - The company anticipates spending approximately $208.8 million in capital expenditures over the next 12 months for projects and fuel stations currently under construction[242]. - The capital expenditures primarily relate to the development and construction of new renewable energy facilities and the purchase of equipment for Fueling Station services and Renewable Power operations[242]. Regulatory and Market Influences - Demand for the company's RNG and associated Environmental Attributes is influenced by U.S. federal and state energy regulations, with transportation generating approximately 30% of overall CO₂ emissions in the U.S.[190]. - The company anticipates that regulatory changes in the European Union regarding ISCC Carbon Credits will lead to the termination of contracts governing sales of these credits by November 21, 2024[190]. - The Inflation Reduction Act, signed into law in August 2022, invests nearly $369 billion in energy and climate policies, which is viewed as favorable for the renewable energy industry, although uncertainties remain regarding its applicability to the company's projects[194]. - The company has completed applications for registration under the Biogas Regulatory Reform Rule, which requires compliance by January 1, 2025, for RIN generation from biogas[193]. - The company is exposed to commodity prices of natural gas and diesel, which can impact the demand for RNG[190]. Customer Concentration - Customer A accounted for 43% of consolidated revenues for the three months ended September 30, 2024, up from 24% in 2023[202].

Financial Data and Key Metrics Changes - Adjusted EBITDA for Q3 2024 was approximately $31 million, an increase from $16.5 million in Q3 2023, driven by contributions from the Prince William project and environmental credit sales [10][24] - Revenue for Q3 2024 was $84 million, compared to $71.1 million in Q3 2023, primarily due to increased production and environmental credit sales [22] - Net income for Q3 2024 was $17.1 million, significantly up from $0.2 million in Q3 2023, attributed to growth in fuel station services and the sale of investment tax credits [23] Business Line Data and Key Metrics Changes - RNG production increased to 1 million MMBtus in Q3 2024, a 40% year-over-year increase from 0.7 million MMBtus in Q3 2023 [21][18] - RNG fuel segment revenue was $25.9 million in Q3 2024, up from $20.1 million in Q3 2023, mainly due to the addition of the Prince William RNG facility [26] - Fuel station services segment revenue rose to $45.4 million in Q3 2024 from $37.3 million in Q3 2023, driven by increased RNG marketing fees and construction services [26] Market Data and Key Metrics Changes - The company has increased its share of nameplate design capacity in operation to 8.8 million MMBtus, up by 3.6 million MMBtus this year [9] - The company is currently constructing 6 projects, representing 2.6 million MMBtus of annual design capacity, in addition to the 11 operating projects [19] Company Strategy and Development Direction - The company aims to leverage its vertically integrated business model to maximize the value of RNG and gain market share [8] - OPAL Fuels is focused on developing new RNG projects and has recently commissioned the Sapphire and Polk projects, enhancing its operational capacity [9][11] - The company is optimistic about the potential for renewable power and baseload green electricity, particularly in light of increasing electricity demand [15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in meeting growth objectives and maintaining current guidance for 2024, citing strong visibility on full-year results [11][29] - The management believes that the election results will not negatively impact the RNG industry and may even provide opportunities for growth in fuel station services and renewable power [41][43] Other Important Information - The company reported the first monetization of ITC credits in Q3 2024, generating net cash proceeds of $8.6 million [12] - As of September 30, 2024, the company had liquidity of $285.3 million, consisting of $254.3 million in credit facility availability and $31 million in cash and equivalents [28] Q&A Session Summary Question: Risks to D3 RVO and ITC from election results - Management believes there is bipartisan support for strong D3 volumes and that the RNG industry will continue to receive support regardless of political changes [34][36] Question: Forward sales of RINs - All RINs for 2024 have been sold forward, locking in prices at the time of sale [45][46] Question: Voluntary markets and hyperscalers - The company sees potential in the voluntary markets and is optimistic about eRIN policies for renewable electricity [50][52] Question: M&A activity under new administration - Management is actively looking for M&A opportunities and believes the environment is favorable for consolidation in the industry [61][64] Question: Impact of Cummins' natural gas engine production - The company is excited about the potential for natural gas in heavy-duty trucking and is seeing increased customer interest [65][66] Question: LCFS market update - Management noted that while they primarily focus on RINs, improvements in LCFS pricing could benefit their downstream business [82][85] Question: RIN share dynamics - The company has observed a tightening of the dispensing market, leading to increased RNG marketing fees [88] Question: ITC monetization for next year - The company plans to continue monetizing ITC credits as more projects come online, with credits typically being 30% to 40% of CapEx costs [91][92] Question: Economics of 100% equity projects - Management indicated that while smaller projects have different economics, they are pleased with the performance of their 100% owned projects [98] Question: 2025 D3 RIN market outlook - Management expects prices for 2025 RINs to strengthen around the $3 mark as the year progresses [101][102]

Core Viewpoint - OPAL Fuels Inc. reported quarterly earnings of $0.09 per share, missing the Zacks Consensus Estimate of $0.18 per share, and compared to a loss of $0.01 per share a year ago, indicating a significant earnings surprise of -50% [1][2] Financial Performance - The company posted revenues of $84.05 million for the quarter ended September 2024, which was 5.35% below the Zacks Consensus Estimate and an increase from $71.1 million in the same quarter last year [2] - Over the last four quarters, OPAL Fuels has only surpassed consensus EPS estimates once [2] Stock Performance - OPAL Fuels shares have declined approximately 30.3% since the beginning of the year, contrasting with the S&P 500's gain of 24.3% [3] - The current Zacks Rank for OPAL Fuels is 4 (Sell), indicating expectations of underperformance in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.26 on revenues of $95.66 million, and for the current fiscal year, it is $0.75 on revenues of $324.41 million [7] - The trend for estimate revisions ahead of the earnings release was unfavorable, which may impact future stock performance [6] Industry Context - The Alternative Energy - Other industry, to which OPAL Fuels belongs, is currently ranked in the bottom 35% of over 250 Zacks industries, suggesting potential challenges for stocks in this sector [8]

FUELS Renewable Natural Gas Fuel for Vehicles AUGUST 2024 Second Quarter 2024 Investor Presentation Disclaimer 1 For the purposes of this notice, the "presentation" that follows shall mean and include the slides that follow, the oral presentation of the slides by members of management of OPAL Fuels Inc. (the "Company" or "OPAL Fuels") or any person on their behalf and the question-and-answer session that follows that oral presentation. By reading the presentation slides, you will be deemed to have (i) agree ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2024 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _______________ to ____________ Commission File Number: 001-40272 OPAL FUELS INC. (Exact name of registrant as specified in its charter) Delaware 98-1578357 ( ...

(1) 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. Quantities shown reflect OPAL Fuels' proportionate ownership. 9 Overview of Business Segments Leading vertically integrated biomethane energy company | --- | --- | --- | --- | |----------------------------------- ...