Financial Data and Key Metrics Changes - Third quarter revenue was $83 million, down from $84 million in the same period last year, while adjusted EBITDA was $19.5 million, compared to $31.1 million last year, primarily due to lower realized RIN pricing and the expiration of ISCC pathway [13][14][15] - Realized RIN price decreased to $2.15 from $3.13 year-over-year [14] - Total liquidity at the end of the quarter was $184 million, including $29.9 million in cash and short-term investments [15] Business Line Data and Key Metrics Changes - RNG production reached 1.3 million MMBTU, a 30% increase year-over-year, driven by improved uptime and ramp-up of existing projects [5][10] - The company now operates 12 RNG facilities with a combined annual design capacity of 9.1 million MMBTU, up from two facilities at the time of going public in 2022 [10] - The fuel station services segment is expected to meet the lower end of the 30%-50% segment EBITDA growth target despite a challenging logistics environment [12] Market Data and Key Metrics Changes - The company is seeing a growing need for energy infrastructure assets to support CNG and RNG adoption in heavy-duty trucking, which is being recognized as a cost-effective alternative to diesel [9] - The downstream fuel station services business is performing well, with 47 operating fueling stations and 41 under construction, enhancing the company's cash flow profile [12][53] Company Strategy and Development Direction - The company is focused on expanding its vertically integrated platform and investing in fuel station services as a key growth area [9][54] - The strategy includes advancing new project opportunities and maintaining a disciplined capital allocation framework to ensure alignment with returns and liquidity [11][49] - The company aims to achieve a balanced earnings profile by leveraging both upstream RNG production and downstream fuel distribution [52][54] Management's Comments on Operating Environment and Future Outlook - Management remains confident in achieving full-year guidance despite lower RIN prices, citing improvements in production and the expected recognition of 45Z production tax credits [8][16] - The company anticipates continued growth in 2026, supported by strong production and the full-year impact of 45Z credits [22][28] Other Important Information - The company completed its fourth investment tax credit monetization for the year, bringing total gross proceeds to $43 million year-to-date [6][15] - The company is working on refinancing its preferred equity with Nexterra to enhance its capital structure [16] Q&A Session Summary Question: What is the trajectory of RNG production growth? - Management confirmed that RNG production is expected to continue growing at a rate of approximately 0.1 million MMBTU per quarter, with strong sequential growth anticipated through year-end and into 2026 [21][22] Question: What are the expectations for the final RVO and D3 RVO? - Management indicated that the final RVO rules are impacted by the government shutdown, but they remain cautiously optimistic about bipartisan support for RNG [23][24] Question: How does the company balance growth spending with free cash flow generation? - Management clarified that maintenance CapEx is included in operating cash flow, while growth CapEx is focused on new projects, ensuring a disciplined approach to capital deployment [26][49] Question: What is the outlook for the natural gas vehicle market? - Management expressed optimism about the adoption of natural gas vehicles, highlighting ongoing improvements in equipment pricing and the potential for significant growth in the coming years [35][38] Question: Is the company considering opportunities in the voluntary market? - Management noted interest in the marine fuel market but emphasized that they have not yet found it advantageous to transact in voluntary markets due to regulatory uncertainties [41][43] Question: Has competition in the RNG project development space increased? - Management acknowledged that while there are new entrants, limited access to capital and offtake markets may constrain competitors' growth [47][48]

Financial Data and Key Metrics Changes - Adjusted EBITDA for Q1 2025 was $20.1 million, over 30% higher compared to the same period last year [7] - Revenue for the quarter was $85.4 million, compared to $64.9 million in Q1 2024 [13] - Net income increased to $1.3 million from $0.7 million in Q1 2024 [13] Business Segment Data and Key Metrics Changes - Fuel Station Services segment EBITDA was approximately $12.5 million, 80% higher versus Q1 2024 [7] - RNG fuel production for the quarter was 1.1 million MMBtus, up nearly 40% compared to the same period last year [8] - The company maintains its 2025 RNG production guidance of 5 million to 5.4 million MMBtus, representing a 37% increase versus 2024 [11] Market Data and Key Metrics Changes - The company is experiencing delays in investment decisions from customers due to recent trade policy uncertainties, but does not expect a material impact on guidance [9] - The regulatory outlook is shifting positively for RNG CNG powered heavy-duty trucking, which could expand adoption [10] Company Strategy and Development Direction - The company is focused on vertical integration to maximize the value of RNG produced and enhance cash flow stability [8] - There are ongoing construction projects for four landfill RNG projects, with expectations for commercial operations to commence in 2025 [11][12] - The company is maintaining its guidance for Fuel Station Services adjusted EBITDA growth of 30% to 50% versus 2024 [12] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the uncertain macro and regulatory environments but remains confident in long-term growth potential [9][10] - There is strong bipartisan support for American biofuels and investment in RNG, which is expected to bolster future growth [10] - The company is monitoring regulatory developments closely, including the implementation of 45Z and EPA rulings [10] Other Important Information - Capital expenditures for the quarter totaled $17 million, including $5.4 million related to equity method investments [15] - The company expects to monetize approximately $50 million in total ITC sales in 2025, enhancing operating cash flow [16] Q&A Session Summary Question: Production trajectory for the year - Management indicated that production was affected by an unusually cold winter and availability issues but expects sequential growth through the year [22][24] Question: Impact of tariffs on construction projects - Management stated that there are currently no cost increases due to tariffs, as equipment has already been ordered under fixed-price contracts [25][26] Question: RIN pricing and future expectations - The average realized RIN price was about $271 in Q1, with expectations for a lower price in Q2 [31][32] Question: Growth in Fuel Station Services - Growth is driven by higher volumes from new stations and improved margins due to a tighter dispensing market [33][35] Question: Capital return to shareholders - Management discussed the flexibility in capital deployment, including potential dividends or share buybacks as free cash flow increases [38][40] Question: Renewable power segment performance - The decrease in revenue was attributed to the termination of contracts related to the ISCC pathway [65][66] Question: Tax benefits from ITC credits - The $8 million income tax benefit was from the sale of ITC Section 48 tax credits, which is not included in EBITDA guidance [70][71] Question: Conversion of biofuel power projects to RNG - Management expressed excitement about the potential to accelerate conversion projects based on public policy outcomes [73][74] Question: Concerns about oil prices and natural gas - Management is not overly concerned about short-term oil price fluctuations, believing natural gas will remain cheaper than oil [76][78]