OPAL

Image source: The Motley Fool. Monday, Aug. 10, 2026 at 11:00 a.m. ET Vice President of Investor Relations - Todd Firestone Co-Chief Executive Officer - Adam Comora Co-Chief Executive Officer - Jonathan Maurer Chief Financial Officer - Kazi Hasan Operator: Ladies and gentlemen, thank you for standing by. Welcome to OPAL Fuels' Second Quarter 2020 Earnings Results Conference Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question and answer session. To ask a question during the session, you will need to press *11 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press *11 again. Please be advised that today's conference is being recorded. I would like now to turn the conference over to Todd Firestone, Vice President of Investor Relations. Please go ahead. Todd Firestone: Thank you, and good morning, everyone. Welcome to the OPAL Fuels Second Quarter 26 Earnings Conference Call. With me today are Co-CEOs, Adam Comora and Jonathan Maurer, as well as Kazi Hasan, OPAL's Chief financial officer. Opel Fuels released financial and operating results for the second quarter 2020 this morning. And those results are available on the Investor Relations section of our website at opalfuels.com. A presentation and access to the webcast for this call are also available on our website. After completion of today's call, a replay will be available for 90 days. Before we begin, I would like to remind you that our remarks including answers to your questions, contain forward looking statements. Which involve risks, uncertainties and assumptions, Forward looking statements are not a guarantee of performance and actual results could differ materially from what is contained in such statements. Several factors that could cause or contribute to such differences are described on slides 2 and 3 of our presentation. These forward looking statements reflect our views as of the date of this call and OPAL Fuels does not undertake any obligation to update forward looking statements to reflect events or circumstances after the date of this call. Additionally, this call will contain discussion of certain non-GAAP measures. A definition of non-GAAP measures used, and a reconciliation of these measures to the nearest GAAP measure, is included in the appendix of the release and presentation. Adam will begin today's call by providing an overview of the quarter's results and recent highlights. John will then give a commercial business development update. Afterwards, Kazi will review financial results. We will then open the call for questions. So now I will turn the call over to Adam J. Comora, Co-CEO of OPAL Fuels. Adam J. Comora: Thank you, Todd. Good morning, everyone, and thank you for participating in OPAL Fuels' second quarter 26 earnings call. We delivered solid second quarter financial results with adjusted EBITDA of $23.1 million increasing 40% from the second quarter of 25. With flat RIN pricing in the second quarter versus last year, growth was driven by 45z production tax credits, our Fuel Station Services segment and G and A cost savings. We are maintaining our annual guidance. Second quarter RNG production was 1.3 million MMBtus, approximately 8% higher from last year. While production performance was modestly below our expectations this quarter, We continue to see meaningful opportunities to grow volumes through our existing facilities and drive our second half results. It is important to note how powerful these plant improvement initiatives can be and they are not capital intensive. Operating leverage on our existing facilities is high. With almost all of the incremental production and revenues flowing down to EBITDA. Our primary variable cost is the royalty shared with our feedstock hosts. We are focused on capturing these opportunities as they would result in incremental production and EBITDA without having to invest significant capital. 1 example of these initiatives is using technology to improve gas collection and tuning of the wellfields. These improvements can take some time to install, and to coordinate with the landfill owners. I want to shift gears and discuss what gives us confidence in the stability of our cash flows and the macros driving the long term growth for OPAL Fuels. Over its 20 year history, the renewable fuel standard has become a fixture in the country's regulatory backdrop, much like the Clean Air Act and the Clean Water Act. Many industries are built around supporting these key laws. Such as water treatment and other environmental services. Similar to those examples, the biofuels industry is expected to continue to play a vital role in satisfying the goals of the renewable fuel standard mandated by law. Our industry is further supported by programs like the production tax credit and investment tax credit. These programs reflect increasing bipartisan support and seek to accelerate the growth and myriad benefits of capturing biogas, or waste in place energy and using it productively. Opal Fuels generate significant annual discretionary free cash flow today. Approximately $0.30 per share for the last 12 months. Which we are choosing to reinvest to lift the value of OPAL. Kazi will discuss a bit later about our capital expenditures and capital allocation plans for new RNG facilities and fueling station projects. As a reminder, all of our maintenance capital expenditures are on our existing assets is expensed. Our upstream segment growth over the next 12 to 24 months is anticipated to be driven by incremental volumes from our existing assets and the completion of our projects in construction. These initiatives show a pathway to increasing our discretionary free cash flow over the coming years. Future growth of our Downstream segment will be driven by the economics of fuel switching between diesel and natural gas. These economics are underpinned by the structural advantages of low cost natural gas. Natural gas versus diesel in North America. We have seen numerous industries take advantage of lower cost natural gas at the technology becomes available. We have seen it in chemicals, steel, power generation, and in heavy-duty transportation's case, the natural gas engine. Notably, the refuse sector, which has had the appropriate 9 and 12 liter engines for the last decade, is now at a 50% adoption rate of CNG trucks ordered versus diesel. The 15-liter engine is now poised to address the largest segment of the 44 billion gallon diesel market in The United States. For OPAL, we have the strategic advantage of selling RNG with the same compelling natural gas economics plus the added sustainability benefits to accelerate adoption. OPAL is positioned to be at the forefront of what is anticipated to be a long and large energy arbitrage opportunity. With that, I will turn it over to John for some additional comments before Kazi reviews the financial performance. Jonathan Gilbert Maurer: Thank you, Adam, and good morning, everyone. Execution remains our highest priority. On the upstream side, Adam mentioned our improvement initiatives that are expected to drive production growth at our existing facilities. In addition, we continue to advance construction across our RNG project portfolio. With over 2 million MMBtu of annual design capacity, expected to come online over the next 12 months. Cottonwood, followed by Burlington, and then our CMS RNG project we have visibility into near term production growth. As we look beyond the next 12 months, during the quarter, we announced the release of our general contractor for another 1 million MMBtu of annual design capacity at the Stones Throw and Grady Road projects. These GFL joint venture projects are slated to contribute to 2028 production and financial results. Together, all of these projects upon completion will increase our production by approximately 3 million MMBtu of annual design capacity coming online over the next 24 months. These upstream opportunities are supported by OPAL's vertical integration and fleet offtake generated by our downstream business development opportunities. Beyond these projects, OPAL continues to pursue development opportunities. Several of which are conversion candidates from our renewable power portfolio. We are disciplined in allocating capital between our upstream and downstream investment opportunities to achieve targeted risk adjusted returns and portfolio balance. Overall, as Adam mentioned, we are pleased with the progress we made in the second quarter and our ability to deliver financial results which kept us on track for the year. I will now turn the call over to Kazi to discuss the quarter's financial performance. Kazi? Kazi Kamrul Hasan: Thank you, John, and good morning, everyone. We delivered solid financial performance in the second quarter. With adjusted EBITDA increasing 40% year-over-year to $23.1 million driven by contributions from 45z production tax credits, growth in our fuel station services business, and G and A cost savings. Second quarter consolidated revenue increased 4% to $83.4 million. Driven primarily by growth in our FSS segment compared with the second quarter of 2025. Within RNG fuel segment, EBITDA increased to $18.6 million from $13.3 million last year. Reflecting 45Z tax credits and production growth amidst flat realized RIN prices. Fuel station services also delivered improved performance, with segment EBITDA increasing to $12.5 million from $10.9 million last year. As we anticipated, renewable power segment performed lower compared to the prior year period driven by lower production, and pricing. Adjusted EBITDA was $0.3 million for the second quarter compared to $2.2 million in the prior year. We expect to see lower contributions from this segment as we are converting renewable power assets into RNG plants. In addition, we had a noncash impairment this quarter from a renewable power project decommissioning in connection with our CMS RNG project. We continue to actively manage discretionary spending with G&A at $3.2 million lower versus the second quarter of 2025. As we move into third quarter, we expect SG and A to increase from the second quarter as certain professional services organizational investments, and transformation initiatives normalized. These costs are anticipated and remain fully incorporated within our full year plan. We ended the quarter with $162.2 million of liquidity, including $91.4 million of cash, $19.3 million of available revolver capacity, and $51.6 million of undrawn preferred capital commitments. During the first 6 months of the year, we invested more than $52 million in the RNG projects, under construction. OPAL owned fuel stations and financed transformation initiatives while maintaining significant financial flexibility. We expect that our available cash generated from operations and availability on the existing debt and preferred stock facilities, are sufficient to fund our projects that have entered construction. Finally, as Adam mentioned, the business is generating significant and growing discretionary free cash flow. We continue to be disciplined in our capital allocation strategy. Between new RNG project development and growing opportunity to invest in fueling infrastructure. These investments are expected to increase recurring earnings and cash flow improve returns on invested capital, and further differentiate OPAL's integrated business model. We are encouraged by our second quarter results and are maintaining our full year guidance. With that, I will turn the call back to John. Jonathan Gilbert Maurer: In closing, we remain well positioned for continued disciplined execution of our strategic growth objectives and the expansion of OPAL's vertically integrated platform, I will now turn the call over to the operator for Q and A. Thank you all for your interest in OPAL Fuels. Operator: Thank you. And wait for your name to be announced. And to withdraw your call, please press *11 again. And our first question will come from Derrick Whitfield with Texas Capital. Your line is open. Derrick Whitfield: Good morning, and thanks for your time. Jonathan Gilbert Maurer: Morning, Derek. Derrick Whitfield: Wanted to start on the plant improvement initiatives you highlighted in your opening comments. Could you elaborate on a couple of the more impactful initiatives you are pursuing? And help frame the upside you could achieve in production uplift or EBITDA expansion? Jonathan Gilbert Maurer: Sure. Hi, Derek. Sure, a couple of things. First off, I want to point out that we do have some seasonality in our production. Principally colder weather in the first quarter followed by drilling in the well fields during the second quarter. Usually results in improvements in the third and fourth quarter. In terms of ongoing improvements, we have the operations group who has continued their training and improvements within the operations of the existing projects. that is resulting in improved efficiency improved availability, and so combined with the inlet design capacity utilization improvements that we will see coming out, we will see increases in those areas as well. So a lot of that is just the team getting better at operating the projects and improving their capabilities. But, importantly, working with the landfills to improve collection. is 1 area that we have been focusing on significantly. Putting in place technology that can improve gas collection—not just quantity of gas collected, but quality as well. And both the quantity and the quality is what we are starting to see some of the improvements coming out. We have put some of this improvement in place at 2 of our projects, and we expect to see this rollout across more of our fleet during the remainder of the year and into next year. So all of that When it comes to you know, some of the improvements, when you think about the overall capacity that we have of 9 million MMBtu of nameplate and you add you know, 5% or 10% improvement on those combined with the from the collection of the gas to the improved availability and efficiency, you can understand how that can really have a significant impact on future results. And as Adam mentioned, that operating leverage that we have most of that improvement will fall to the bottom line. So we are very excited about the opportunity and working really hard and diligently to bring it across the line. Derrick Whitfield: Very helpful. Thanks, John. And as my follow-up, and this is perhaps for you, Adam, wanted to focus on the regulatory environment. Throughout earnings, we have heard some commentary from the larger refineries and ag companies on Set Rule 3. And while we are clearly far from legislation, I would appreciate your views on what the community would like to see in the policy and what is achievable in growth of the RVO mandate and potential for the EPA to revisit ERINs? Adam J. Comora: Yeah, thanks, Derek. You are right. Set Rule 3 is what people will be focused on, over the balance of the year. A little unclear on timing for when that proposed rule may come out. What we would like to see is the EPA to acknowledge the potential for the use of RNG as a transportation fuel Listen to some of the industry estimates out there in terms of the potential for the adoption curve, and incentivize growth in the cellulosic category as is the law mentioned in the statute. And we have been having discussions with the EPA, and you know, the interesting thing is I think there is a recognition amongst policy makers about how powerful a transition to gas for heavy duty transportation could be to support not only this administration's goals, but, you know, really bipartisan goals to drive energy dominance and help keep inflation in check. And I think there is an acknowledgment that renewable natural gas can play a catalyst to help accelerate that use of economical nat gas at home and perhaps export more of the, you know, the expensive oil that we are producing. And then, you know, you have got all those other investment and jobs and cleaner air benefits as well. So, we are focused on educating, the EPA. On, you know, how to support, you know, additional you know, RNG investment and acknowledging the adoption curve for natural gas vehicles. Derrick Whitfield: And, Adam, do you think we could revisit Eren's with this next legislation? Adam J. Comora: I feel like eREN pathways might be a little tougher. I do feel like, you know, in our discussions, people are getting educated. Educated and understand the benefits of natural gas and renewable natural gas. As a transportation fuel. eRINs, I am not sure about. I am not sure we are going to get a lot of, you know, pathway discussions in Set Rule 3. I think there is more of a focus on what to do about imported feedstocks. Again, everything we produce is domestically produced. We do not really have a horse in that race in what happens on the import side of things. I do feel like that is gonna be a key focus. To support domestically produced agricultural biofuels. And have not heard a lot of talk about expanded pathways and new pathways. Just yet. Derrick Whitfield: Terrific. Great update. Thanks, guys. Operator: Thank you. And our next question is gonna come from Matthew Blair with TPH. Your line is open. Matthew Blair: Thanks, and good morning. So you maintained your 2026 guidance which I think implies about $55 to $70 million of EBITDA in the second half of the year versus the $40 million in the first half of the Is it fair to say this guide implies both higher production as well as higher unit profitability. And if so, could you talk about the drivers and your overall level of confidence in each of those variables? Adam J. Comora: Thank you. Yeah, no, I appreciate that. And you know, I would say a couple of things there where there is still some puts and takes on where we land in our EBITDA range. Between a couple of things that we are doing on the commercial side and where we are on RIN pricing and the end of the year and that sort of thing. I will say that our confidence comes from, you know, when you look at the second half versus the first half, we do anticipate our production growth to continue to ramp as we move through the year. You know, RIN pricing has been a little stronger in the second half versus the first half, and we have been participating, along in the markets. And you know, production, you know, may trend towards the lower end of our of our original production guide. And feel confident that, you know, given our financial discipline and you know, what we are doing, around some of those other items, that will be in the guidance range that we provided in the beginning of the year. Matthew Blair: Sounds good. And then we note we noticed that your operating expenses in RNG fuel improved a little bit quarter over quarter in Q2. Was there anything notable to call out there? And could you also provide an update on the Prince William virtual pipeline? Is that set to roll off either in Q3 or Q4 this year? Adam J. Comora: Yeah. The virtual pipeline will not roll off in Q3 or Q4. This year. We are still rolling through the engineering of the permanent pipeline. We do feel like there is some opportunities to improve what we are doing on the virtual pipeline. And the operating expenses, I think we called out after our first quarter that the weather impacts did have not only some unplanned outages and higher operating expenses associated with it, But that was, you know, what was driving a little bit of the second quarter versus the first quarter. And I would highlight again just what John was mentioning, is the operating leverage in our business as well. where there is a meaningful contribution from additional MMBTUs that we are able to process through our existing facilities And, you know, operating leverage works the other way as well. where the vast majority of the costs are relatively fixed. So if you look at our operating costs on a per MMBtu basis, that is where there will be some impact as well based on that operating leverage. Matthew Blair: Sounds good. Thank you. Operator: Thank you. And our next question is going to come from Ryan Pfingst with B. Riley. Your line is open. Ryan Pfingst: Hey. Good morning, guys. Thanks for taking the questions. On renewable power plant conversions, can you just talk about the size of the candidate pipeline today? And can you remind us of any potential CapEx savings for a conversion project compared to something more greenfield? Jonathan Gilbert Maurer: Yeah. I will jump in. Hi, Ryan. So in terms of magnitude, as we look at our curve portfolio, obviously, the CMS RNG project was a conversion from an RNG from a renewable power project. And as part of our Q2 earnings, we did shut down 1 of the 2 power projects located there to make room for the construction. As we go about converting additional projects, there is not any particular capital cost savings that are available to us through that conversion. Instead, by being on the site and knowing the gas collection and the trash in place and being put in place, gives us an inside insight into what gas capability is possible from these projects as we look further towards converting, we have probably 3, 4, 5 additional projects in our portfolio that we are looking at converting I would say the next 3 or so that are top candidates would be over 4 million MMBtu of design capacity. And then some additional opportunities that we continue to advance could be another 1 or 2 million on top of that. So those are the opportunities that we see right now from that conversion. Of course, in addition to converting renewable power projects, there is continued opportunities with some of our landfill partners and other municipal entities to build out additional projects. So we are pretty encouraged by what we see in terms of our pipeline of growth. Going forward. And I think that will cover us for the next couple of years. Ryan Pfingst: Appreciate that. And then just given the recent commentary, from BP and Archaea, can you talk about what the market looks like from an M&A perspective and opportunities that you see for consolidation? Adam J. Comora: Yes. I did notice that news. I think they are really early in their process from what I can understand or from what I have read so far. And I think, you know, this industry still has a lot of room for consolidation, and, a lot of renewable electricity projects that have not been developed or converted over into RNG facilities. And you know, I think as we have said in the past, we really like what we are doing here at OPAL. We have a really good opportunity for organic growth within our own pipeline. Driving new fleet demand, and really, what we are laser focused on is improving the asset utilization that we have on our existing plants, which, you know, when you do the math on your operating leverage and what opportunities we see there, minimal capital investments. that is really exciting for us. And that is what we are really also laser focused on. But we do have an eye to see what else is going on in the market where 1 and 1 can equal 3. And, as our chairman likes to do that math. And, you know, we will evaluate as they are out there in the marketplace. And, we do expect that there will continue to be consolidation in M&A activity. Operator: Thank you. And the next question will come from Adam Bubes with Goldman Sachs. Your line is open. Adam Bubes: Hi. Good morning. I think looking at your production in the quarter of around 1.3 million MMBtu, if I just divide that by your nameplate capacity, it is somewhere in the high 50% range. How are you just thinking about the timing of how utilization scales with these newer plants over time and, you know, particularly in light of some of the production initiatives you spoke to? Adam J. Comora: Yeah, Adam. This is Adam here. And let me just be clear. We are not satisfied with where we are at currently in terms of the production from our existing facilities. And we have concrete plans to improve them at the facilities. And as far as the cadence of how quickly you realize that and how quickly it flows through, As we were chatting through earlier, it takes a little time on the front end to install some technology and coordinate with the landfill. Owners. And I think you get the most meaningful impact and largest and largest impact from those gas collection and gas quantity excuse me, quality improvement plans that you put in place. And as you look across our entire portfolio, there may be a single, or a couple of assets that drive it across the entire portfolio. And you try and roll them out as quickly as you can. So you know, we anticipate that we are going to start seeing those improvements here in the back half. We are trying to accelerate them as quickly as we can. And you know, we will be reporting back out on how successful and how quickly they ramp. Adam Bubes: Great. And then can you just update us on your forward contract arrangements What percent of D3 RIN contracts are locked in for 2026? And how early would you be able to start entering forward contracts for 2027? And just how do you think about, you know, puts and takes between locking in 2027 prices versus you know, leaving some flexibility in the spot market? Adam J. Comora: Yeah. Historically, we have seen trading open up in any sort of material manner towards the fourth sometime in the fourth quarter. So we have not seen a lot of volumes being traded yet in 2027. And, you know, I would say for our for our 2026 book, we never talk too granularly about how many we have sold and how many we have yet to sell. We are still 1 of the larger participants in the market. I would say we have been participating in the market, and continue to do so. And you know, I think 2027 in particular, you know, that RIN price will also be impacted by what happens in the volumes in 2028 and 2029. And you know, we think that you know, what we are saying is resonating in terms of the potential growth in with policymakers, acknowledging not only what the statute says, but the benefits that come with RNG for the country, that we are cautiously optimistic for 2028 and 2029 volumes when we start rolling through Set Rule 3. Adam Bubes: Great. Thanks so much. Operator: Thank you. And as a reminder, to ask, our next question comes from Richard DeDios with UBS. Your line is open. Richard DeDios: Hi. Thanks for taking our question. Now, focusing on the guide, this is kind of a follow-up but can you rank the biggest factors that determine whether you land at the midpoint versus landing at the upper end of the range? I know you mentioned the commercial side and RIN pricing to help you land within the guide. Can you dive deeper into what may help you in landing towards the upper end? Adam J. Comora: Yeah. That it would really be driven by production and RIN pricing and you know, I would say though in terms of the upper end of the guide, we would we would probably need to see, you know, stronger production growth and stronger RIN pricing. Than is currently in the market. I see Kazi has some additional comments. Kazi Kamrul Hasan: Yeah. I just I just want to make sure that you there are multiple levers that we work with as you know. We do have definitely we are expecting higher production as well as we are also very keenly managing the production cost too. Operating cost and, to some extent, SG and A's going forward. So there are a number of levers. In addition to we have the downstream the construction portfolio as well as the dispensing portfolio. So number of levers will contribute to that. Richard DeDios: Alright. Thank you for the color on that. And focusing on the project front, within your projects, what would you say is the biggest execution risk to date? You know, is it permitting equipment, etcetera. If you could share, that would be helpful. Jonathan Gilbert Maurer: Well, this is John. On our existing and construction projects that we have, once we release a contractor, which we have done for all of our projects, the risks are substantially transferred over to those contractors. So you know, while there is no certainty in life, I think that the front end risk of permitting and geotech and, you know, getting pipeline interconnections and electrical interconnections, etcetera, are substantially reduced. We still have pipeline interconnection risk on a couple of our projects. Notably CMS. But we have backup virtual pipeline interconnections for that, so it will not affect the timing. And that virtual pipeline interconnection you know, will be temporary and a time constraint. So when we look at Cottonwood Burlington, and CMS, all coming online, and the first half or into the middle part for CMS of 2027, Those construction time frames are holding well. And having released EPC contractor for Grady Road and Stones Throw on June 1st as we announced. We think that those timing factors are pretty well locked in as well. So, we see timing holding for the projects that we have in construction. Adam J. Comora: Yeah. And that is, this is Adam here. You know, we have now gone through first phase of construction and commissioning OPAL 1.0, if we wanna call it that. So, you know, we have we have good visibility on you know, the timing of the in construction projects. Thank you. Jonathan Gilbert Maurer: Let's I will turn it back. Operator: Thank you. I am showing no further questions at this time. I will now turn it back over for closing remarks. Adam J. Comora: Yeah, we appreciate everybody, logging in here today, and appreciate your interest in Opal Fuels and hope everybody has a good rest of the day. Thanks, everybody. Operator: This concludes today's conference call. Thank you for participating, and you may now disconnect. Before you buy stock in OPAL Fuels, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and OPAL Fuels wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. 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This article first appeared on GuruFocus. Adjusted EBITDA: $23.1 million, up 40% year over year. Revenue: $83.4 million, up 4% year over year. RNG Fuel Segment EBITDA: $18.6 million, up from $13.3 million in the prior year. Fuel Station Services Segment EBITDA: $12.5 million, up from $10.9 million in the prior year. Renewable Power Segment Adjusted EBITDA: $0.3 million, down from $2.2 million in the prior year. RNG Production: 1.3 million MMBtus, up approximately 8% year over year. G&A Expenses: $3.2 million lower versus the second quarter of 2025. Liquidity: $162.2 million, including $91.4 million in cash, $19.3 million in available revolver capacity, and $51.6 million in undrawn preferred capital commitments. Capital Expenditures: Over $52 million invested in RNG projects under construction, OPAL-owned fuel stations, and finance transformation initiatives during the first six months of the year. Warning! GuruFocus has detected 8 Warning Signs with OPAL. Is OPAL fairly valued? Test your thesis with our free DCF calculator. Release Date: August 10, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Adjusted EBITDA increased 40% year-over-year to $23.1 million, driven by 45Z production tax credits, Fuel Station Services growth, and G&A cost savings. RNG production grew 8% year-over-year to 1.3 million MMBtus, with plans for further improvements through low-capital initiatives like gas collection technology. Strong project pipeline with over 2 million MMBtu of annual design capacity expected online in the next 12 months (Cottonwood, Burlington, CMS) and additional projects for 2028. Significant discretionary free cash flow generation of approximately $0.30 per share over the last 12 months, providing flexibility for reinvestment. Fuel Station Services segment EBITDA increased to $12.5 million from $10.9 million, reflecting growth in downstream operations. Maintained full-year guidance with confidence, supported by expected production ramp and stronger RIN pricing in the second half. Liquidity remains strong at $162.2 million, including cash, revolver capacity, and undrawn preferred capital commitments. RNG production was modestly below expectations in Q2, with utilization at high 50% of nameplate capacity, indicating room for improvement. Renewable Power segment EBITDA declined to $0.3 million from $2.2 million, impacted by lower production and pricing, with further declines expected as assets convert. Non-cash impairment recorded in Q2 due to decommissioning of a renewable power project for the CMS RNG project. SG&A is expected to increase in Q3 due to professional services and organizational investments, though within full-year plan. RIN pricing remained flat year-over-year, and forward contracting for 2027 is limited, with market activity expected to pick up only in Q4. Execution risks remain on pipeline interconnections for projects like CMS, though backup virtual pipeline is in place. Production growth initiatives may take time to implement and coordinate with landfill owners, delaying potential benefits. Q: Can you elaborate on the plant improvement initiatives you're pursuing and help frame the upside you could achieve in production uplift or EBITDA expansion? A: Jon Maurer, Co-CEO, explained that improvements are focused on working with landfills to enhance gas collection technology, improving both the quantity and quality of gas captured. These initiatives, combined with better operational efficiency and availability, are being rolled out across the fleet. He noted that a 5% to 10% improvement on the 9 million MMBtu nameplate capacity would have a significant impact, and given the high operating leverage, most of that improvement would flow directly to the bottom line. Q: What are your views on the regulatory environment, specifically regarding Set 3 and what the RNG community would like to see in policy? A: Adam Comora, Co-CEO, stated that the focus is on educating the EPA to acknowledge RNG's potential as a transportation fuel and to incentivize growth in the cellulosic category as mandated by law. He highlighted bipartisan recognition of RNG's role in driving energy dominance and keeping inflation in check. Regarding eRINs, he noted they might be tougher to revisit, with more focus likely on imported feedstocks, an area where OPAL is not exposed as a domestic producer. Q: You maintained your 2026 guidance, which implies about $55 million to $70 million of EBITDA in the back half of the year versus $40 million in the first half. Is it fair to say this implies higher production and unit profitability? A: Adam Comora, Co-CEO, confirmed confidence in the guidance, citing anticipated production growth ramping through the year and stronger RIN pricing in the second half. He noted that production may trend towards the lower end of the original guide, but financial discipline and other initiatives should keep the company within the provided EBITDA range. Q: On renewable power plant conversions, can you talk about the size of the candidate pipeline and any potential capex savings compared to greenfield projects? A: Jon Maurer, Co-CEO, explained that while there are no direct capital cost savings from conversions, being on-site provides valuable insight into gas collection and trash-in-place capabilities. He identified three to five additional conversion candidates, with the next three representing over 4 million MMBtu of design capacity, plus additional opportunities for another 1 to 2 million MMBtu, providing a solid growth pipeline for the next couple of years. Q: Given recent commentary from BP and Archaea, what does the M&A market look like and what opportunities do you see for consolidation? A: Adam Comora, Co-CEO, acknowledged the early-stage processes of others and noted the industry still has room for consolidation, particularly with renewable electricity projects yet to be converted to RNG. He emphasized OPAL's focus on organic growth and improving asset utilization, but remains open to evaluating opportunities where "one and one can equal three," expecting continued M&A activity in the market. Q: Your production of 1.3 million MMBtu implies utilization in the high 50% range of nameplate. How are you thinking about the timing of utilization scaling with newer plants? A: Adam Comora, Co-CEO, stated the company is not satisfied with current production levels and has concrete plans to improve. He noted that installing technology and coordinating with landfill owners takes time, but the most meaningful impact comes from gas collection and quality improvements. The company anticipates seeing improvements in the back half of the year and is working to accelerate the rollout across the portfolio. Q: Can you update us on forward contract arrangements? What percent of D3 RIN contracts are locked for 2026, and how early can you start entering 2027 contracts? A: Adam Comora, Co-CEO, said trading typically opens up in the fourth quarter, so limited 2027 volumes have been traded. He declined to give granular details on the 2026 book but noted OPAL remains one of the larger market participants. He added that 2027 RIN prices will be impacted by Set Rule 3 volumes for 2028 and 2029, and the company is cautiously optimistic about future growth. Q: Can you rank the biggest factors that determine whether you land at the midpoint versus the upper end of the guidance range? A: Adam Comora, Co-CEO, stated that reaching the upper end would require stronger production growth and RIN pricing than currently in the market. Kazi Hasan, CFO, added that there are multiple levers, including managing production costs, operating costs, SG&A, and contributions from the downstream construction and dispensing portfolio. Q: What would you say is the biggest execution risk on your projects today, such as permitting or equipment? A: Jon Maurer, Co-CEO, explained that once contractors are released, front-end risks like permitting and geotech are substantially transferred. He noted remaining pipeline interconnection risk on a couple of projects, notably CMS, but backup virtual pipeline interconnections are in place to avoid timing delays. Construction timelines for Cottonwood, Burlington, and CMS are holding well, with CMS expected online mid-2027. Q: Can you provide an update on the Prince William virtual pipeline and the improvement in operating expenses in the RNG Fuel segment? A: Adam Comora, Co-CEO, clarified that the virtual pipeline will not roll off in Q3 or Q4 this year, as engineering for the permanent pipeline is still ongoing. He attributed the operating expense improvement to the absence of first-quarter weather-related outages and highlighted the operating leverage in the business, where additional MMBtu processed through existing facilities contributes meaningfully to the bottom line. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Interested in OPAL Fuels Inc.? Here are five stocks we like better. OPAL Fuels reported strong second-quarter results: Adjusted EBITDA rose 40% year over year to $23.1 million and revenue increased 4% to $83.4 million, supported by production tax credits, Fuel Station Services growth and lower G&A expenses. Management maintained full-year guidance despite RNG production falling modestly below internal expectations. OPAL produced 1.3 million MMBtus of RNG, plans operational improvements to boost existing-facility output and expects production to ramp in the second half. Growth investments remain substantial: More than 2 million MMBtus of annual RNG design capacity is expected online within 12 months, while the company had $162.2 million in liquidity at quarter-end and expects existing financing capacity to fund projects already under construction. Opal Fuels CEO on Steering the Future of Renewable Natural Gas OPAL Fuels (NASDAQ:OPAL) reported second-quarter 2026 adjusted EBITDA of $23.1 million, up 40% from the prior-year period, as production tax credits, fuel station services growth and lower general and administrative expenses helped offset flat Renewable Identification Number, or RIN, pricing. Co-CEO Adam Comora said the company maintained its full-year guidance despite renewable natural gas production coming in modestly below internal expectations during the quarter. OPAL produced 1.3 million MMBtus of RNG in the second quarter, an increase of about 8% from a year earlier. → MarketBeat Week in Review – 08/03 - 08/07 “We continue to see meaningful opportunities to grow volumes through our existing facilities and drive our second half results,” Comora said. He pointed to gas-collection technology, well-field tuning and operational improvements as initiatives that could increase output without requiring significant capital investment. Consolidated revenue rose 4% year over year to $83.4 million, primarily reflecting growth in the Fuel Station Services, or FSS, segment, Chief Financial Officer Kazi Hasan said. RNG Fuel segment EBITDA increased to $18.6 million from $13.3 million in the second quarter of 2025, supported by 45Z production tax credits and higher production. Fuel Station Services EBITDA increased to $12.5 million from $10.9 million a year earlier. Renewable power segment adjusted EBITDA declined to $0.3 million from $2.2 million, reflecting lower production and pricing. General and administrative costs were $3.2 million lower than in the prior-year quarter. → Quantum Earnings Week: Winners and Losers Are Finally Emerging Hasan said the company expects G&A expenses to rise from second-quarter levels in the third quarter as professional services, organizational investments and transformation initiatives normalize. Those costs remain included in OPAL’s full-year plan, he said. The company also recorded a non-cash impairment tied to the decommissioning of a renewable power project associated with its CMS RNG project. OPAL expects lower renewable power contributions as it converts renewable power assets into RNG plants. → Take-Two’s Q1 Results Leave GTA 6 Bulls Stuck in the Fog of War At quarter-end, OPAL had $162.2 million in liquidity, including $91.4 million in cash, $19.3 million of revolver availability and $51.6 million in undrawn preferred capital commitments. During the first six months of the year, the company invested more than $52 million in RNG projects under construction, company-owned fueling stations and finance transformation initiatives. Hasan said cash generated from operations and capacity under existing debt and preferred-stock facilities are expected to be sufficient to fund projects that have entered construction. Management said its production initiatives will focus on raising gas quantity and quality at existing facilities, improving equipment availability and increasing utilization of inlet design capacity. Co-CEO Jonathan Maurer said seasonality also affects production, with colder first-quarter weather and second-quarter well-field drilling generally setting up improvements in the third and fourth quarters. Maurer said OPAL has about 9 million MMBtu of nameplate capacity and that a 5% to 10% improvement across gas collection, availability and efficiency could have a significant impact on future results. The company has deployed collection-related improvements at two projects and expects to extend the work across more of its fleet through the remainder of 2026 and into 2027. Comora said the company is “not satisfied” with current production from its existing facilities, but has concrete improvement plans. He said the company expects to begin seeing benefits in the second half, although installing technology and coordinating with landfill owners takes time. OPAL expects more than 2 million MMBtu of annual design capacity to enter service over the next 12 months, beginning with Cottonwood, followed by Burlington and the CMS RNG project. Maurer said the company expects Cottonwood and Burlington, along with CMS later in the first half or middle of 2027, to remain on schedule. During the quarter, OPAL released the general contractor for the Stones Throw and Grady Road projects, which are part of its GFL joint venture. The projects represent another 1 million MMBtu of annual design capacity and are expected to contribute to 2028 production and financial results. Across the portfolio, OPAL expects approximately 3 million MMBtu of annual design capacity to come online over the next 24 months. Management also identified three to five renewable power projects as potential RNG conversion candidates. Maurer said the top roughly three candidates represent more than 4 million MMBtu of potential design capacity, with further opportunities potentially adding another 1 million to 2 million MMBtu. While power-to-RNG conversions do not necessarily provide capital-cost savings relative to greenfield development, Maurer said operating the existing sites provides insight into gas collection potential and landfill conditions. Management maintained its full-year outlook. Comora said production is expected to ramp in the second half, while RIN pricing has been somewhat stronger than in the first half. He added that production could trend toward the lower end of OPAL’s original production guidance, but said management remains confident it can deliver results within its stated financial guidance range through cost discipline and other commercial levers. Asked what could drive results toward the upper end of guidance, Comora cited stronger production growth and higher RIN prices than currently reflected in the market. Hasan added that operating costs, G&A, downstream construction activity and dispensing operations are additional factors affecting results. On regulatory policy, Comora said the company is focused on educating the Environmental Protection Agency about RNG’s potential in heavy-duty transportation as the agency develops Set Rule 3. He said OPAL would like the EPA to recognize the potential for RNG as a transportation fuel and support growth in the cellulosic category. He said expanded eRIN pathways may be more difficult to address in the upcoming rulemaking, while imported feedstocks appear to be a central policy topic. OPAL Fuels (NASDAQ: OPAL) is a publicly traded company headquartered in San Diego, California, specializing in the production, distribution and dispensing of renewable natural gas (RNG) for heavy-duty transportation. The company operates a network of RNG fueling stations across California, offering fleets of trucks, transit buses and logistics providers a low-carbon alternative to conventional diesel without requiring significant changes to existing vehicle technology or fueling infrastructure. OPAL Fuels sources organic byproducts from dairy farms, landfills and food-processing facilities, converting methane-rich biogas into pipeline-quality RNG through a series of anaerobic digestion and gas-upgrading processes. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "OPAL Fuels Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

WHITE PLAINS, N.Y., August 10, 2026--(BUSINESS WIRE)--OPAL Fuels ("OPAL Fuels" or the "Company") (Nasdaq: OPAL) today announced financial and operating results for the three and six months ended June 30, 2026. "Second quarter financial results were solid and in line with our expectations with adjusted EBITDA growth of 40% percent over the second quarter of last year," said Adam Comora, Co-Chief Executive Officer of OPAL Fuels. "Contribution from 45Z production tax credits, growth in our FSS segment, and G&A cost savings drove financial results in a flat RIN price environment versus last year. These results keep us on track to meet our annual guidance." "We continue to pursue opportunities to drive increased production and EBITDA at our existing operating facilities, which require minimal capital investment. In addition, we are advancing the construction of new RNG facilities that will expand our production capacity as they come online," said Jonathan Maurer, Co-Chief Executive Officer of OPAL Fuels. "Longer term growth for OPAL Fuels is underpinned by the structural economic advantage of natural gas versus diesel. Our vertically integrated model allows us to capitalize on this opportunity." Financial Highlights Adjusted EBITDA(1) for the three and six months ended June 30, 2026, was $23.1 million and $39.8 million compared to $16.5 million and $36.6 million for the comparable periods last year an increase of 40% and 9% respectively. Revenue for the three and six months ended June 30, 2026, was $83.4 million and $156.8 million respectively, an increase of 4% and a decrease of (5)% compared to the same periods last year. Net (loss) income for the three and six months ended June 30, 2026 was $(4.1) million and $(9.7) million, compared to $7.6 million and $8.8 million in the same periods last year. Basic and diluted net (loss) income per share attributable to Class A common shareholders for the three and six months ended June 30, 2026 were $(0.05) and $(0.14) compared to $0.03 and $0.02 in the comparable period last year. In April we entered into a $100 million Master Agreement establishing the key terms and conditions to monetize section 45Z Production Tax Credits. At June 30, 2026, RNG Pending Monetization totaled $16.3 million. Operational Highlights RNG produced was 1.3 million and 2.4 million MMBtu for the three and six months ended June 30, 2026, an increase of 4% and 6% compared to the prior-year period.(2) The Fuel Station Services segment sold, dispensed, and serviced an aggregate of 39.0 and 78.0 million GGEs of transportation fuel for the three and six months ended June 30, 2026, a decrease of 4% and 4% compared to the prior-year periods. Of this amount, RNG dispensed as transportation fuel was 20.9 and 38.8 million GGEs, an increase of 1% and a decrease of 3% compared to the prior-year periods. Guidance We maintain 2026 guidance. Results of Operations Results of Operations from equity method investments Landfill RNG Facility Capacity and Utilization Summary RNG Pending Monetization Summary Liquidity As of June 30, 2026, our liquidity was $162.3 million, consisting of $91.4 million of cash and cash equivalents, $19.3 million of unused capacity under the revolver, $51.6 million of undrawn preferred stock facility. Capital Expenditures During the six months ended June 30, 2026, OPAL Fuels invested $52.7 million across RNG projects in construction, OPAL Fuels owned fueling stations in construction and finance transformation as compared to $33.4 million in the prior year. As part of OPAL Fuels' accounting policy, maintenance capital on existing facilities is expensed. In addition, for the six months ended June 30, 2026, the Company's portion of capital expenditures in unconsolidated entities was $10.8 million compared to $12.7 million in the prior year. This represents our share of capital expenditures incurred by equity method investments. Earnings Call A webcast to review OPAL Fuels’ Second Quarter 2026 results is being held today, August 10, 2026 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/qp5g7dch/ Investors can also listen to a webcast of the presentation on the Company’s Investor Relations website at https://opalfuels.gcs-web.com/news-events/events-presentations Glossary of terms "D3" refers to cellulosic biofuel with a 60% GHG reduction requirement. "GGE" refers to gasoline gallon equivalent. The conversion ratio is 1 MMBtu of natural gas equal to 7.74 GGE. "LCFS" refers to Low Carbon Fuel Standard or similar types of federal and state programs. "MMBtu" refers to million British thermal units. "RECs" refers to renewable energy credits. "Renewable Power" refers to electricity generated from renewable sources. "RIN" refers to Renewable Identification Numbers. "RNG" refers to renewable natural gas. "VIEs" refers to variable interest entities. About OPAL Fuels OPAL Fuels (Nasdaq: OPAL) is a leader in the capture and conversion of biogas into low carbon intensity RNG and Renewable Power. OPAL Fuels is also a leader in the marketing and distribution of RNG to heavy duty trucking and other hard to decarbonize 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 the Company's 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 and quarterly reports on Form 10-Q, 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 of 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. Non-GAAP Financial Measures (Unaudited) This release includes various financial measures that are non-GAAP financial measures as defined under the rules of the Securities and Exchange Commission. We believe these measures provide important supplemental information to investors to use in evaluating ongoing operating results. We use these measures, together with accounting principles generally accepted in the United States ("GAAP" or "U.S. GAAP"), for internal managerial purposes and as a means to evaluate period-to-period comparisons. However, we do not, and you should not, rely on non-GAAP financial measures alone as measures of our performance. We believe that non-GAAP financial measures reflect an additional way of viewing aspects of our operations, that when taken together with GAAP results and the reconciliations to corresponding GAAP financial measures that we also provide, give a more complete understanding of factors and trends affecting our business. We strongly encourage you to review all of our financial statements and publicly filed reports in their entirety and to not solely rely on any single non-GAAP financial measure. Non-GAAP financial measures are limited as an analytical tool and should not be considered in isolation from, or as a substitute for, the Company's GAAP results. The Company expects to continue reporting non-GAAP financial measures, adjusting for the items described below (and/or other items that may arise in the future as the Company's management deems appropriate), and the Company expects to continue to incur expenses, charges or gains like the non-GAAP adjustments described below. Accordingly, unless expressly stated otherwise, the exclusion of these and other similar items in the presentation of non-GAAP financial measures should not be construed as an inference that these costs are unusual, infrequent, or non-recurring. These Non-GAAP financial measures are not recognized terms under GAAP and do not purport to be alternatives to GAAP net income or any other GAAP measure as indicators of operating performance. Moreover, because not all companies use identical measures and calculations, the Company's presentation of Non-GAAP financial measures may not be comparable to other similarly titled measures used by other companies. We strongly encourage you to review all of our financial statements and publicly filed reports in their entirety and to not solely rely on any single non-GAAP financial measure. Adjusted EBITDA To supplement the Company's unaudited condensed consolidated financial statements presented in accordance with GAAP, the Company uses a non-GAAP financial measure that it calls Adjusted EBITDA ("Adjusted EBITDA"). This non-GAAP financial measure adjusts net income for interest and financing expense, net, net income attributable to non-redeemable non-controlling interests, depreciation, amortization and accretion, adjustments to reflect Adjusted EBITDA from equity method investments, fair value changes and non-recurring charges, Stock-based compensation, major maintenance, RNG development costs, 45z generation and ITC proceeds, net. Management believes this non-GAAP financial measure provides meaningful supplemental information about the Company's performance, for the following reasons: (1) it allows for greater transparency with respect to key metrics used by management to assess the Company's operating performance and make financial and operational decisions; (2) the measure excludes the effect of items that management believes are not directly attributable to the Company's core operating performance and may obscure trends in the business; (3) the measure better aligns revenues with expenses; and (4) the measure is used by institutional investors and the analyst community to help analyze the Company's business. In future quarters, the Company may adjust for other expenditures, charges or gains to present non-GAAP financial measures that the Company's management believes are indicative of the Company's core operating performance. The following table presents the reconciliation of our net income to Adjusted EBITDA: View source version on businesswire.com: https://www.businesswire.com/news/home/20260810006655/en/ Contacts Investors Todd FirestoneVice President, Investor Relations and Corporate Development(914) [email protected] Media Harrison FeuerSenior Director, Communications and Public Policy(914) [email protected]

WHITE PLAINS, N.Y., July 27, 2026--(BUSINESS WIRE)--OPAL Fuels (Nasdaq: OPAL) a leader in the production, marketing, and distribution of renewable and compressed natural gas (RNG and CNG) used as a transportation fuel for heavy duty trucking, today announced that it will release its earnings results for the second quarter ended June 30, 2026, before market open on Monday, August 10, 2026. A conference call will take place on Monday, August 10, 2026 at 11:00 a.m. Eastern Time. A listen-only connection to the investor presentation will be accessible at https://edge.media-server.com/mmc/p/qp5g7dch. 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. About OPAL Fuels OPAL Fuels (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 decarbonize industrial sectors. For additional information, and to learn more about OPAL Fuels and how it is leading the effort to capture North America’s harmful methane emissions 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’s") 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 "Cautionary Statement Regarding Forward-Looking Statements" in the Company’s annual report on Form 10-K and quarterly reports on Form 10-Q, and other filings it 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. Except as required by law, 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. View source version on businesswire.com: https://www.businesswire.com/news/home/20260727415111/en/ Contacts InvestorsTodd FirestoneVice President, Investor Relations and Corporate Development(914) [email protected] MediaHarrison FeuerSenior Director, Communications and Public Policy(914) [email protected]

This article first appeared on GuruFocus. Adjusted EBITDA: $16.7 million in Q1 2026, down from $20.1 million in Q1 2025. Revenue: $73.3 million in Q1 2026, compared to $85.4 million in Q1 2025. RNG Production: 1.2 million MMBtu, up 9% year-over-year. Fuel Station Services EBITDA: $9.2 million in Q1 2026, down from $10.9 million in Q1 2025. Liquidity: Approximately $233 million, including $133 million in cash and short-term investments. Financing Transactions: Totaled $288 million, including $180 million of preferred stock facility. D3 RIN Prices: Declined $0.30 to $2.41 in Q1 2026 versus Q1 2025. Warning! GuruFocus has detected 7 Warning Signs with OPAL. Is OPAL fairly valued? Test your thesis with our free DCF calculator. Release Date: May 11, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. OPAL Fuels Inc (NASDAQ:OPAL) remains on track to meet its full-year guidance despite a challenging operating environment in the first quarter. The company is seeing increased engagement in business development activities for new CNG and RNG fleet deployments, driven by factors such as high diesel prices and regulatory clarity. RNG production increased by 9% year-over-year, reflecting enhanced execution by the operating team. OPAL Fuels Inc (NASDAQ:OPAL) completed several financing transactions totaling $288 million, enhancing its liquidity position. The company is making meaningful investments in personnel, technology, and artificial intelligence to support future performance improvements. Adjusted EBITDA decreased to $16.7 million from $20.1 million in Q1 2025, primarily due to lower RIN prices. First quarter revenue declined to $73.3 million from $85.4 million in the prior year period. The company faced operational challenges due to extraordinarily cold weather, impacting production and increasing operational expenses. Fuel Station Services segment EBITDA decreased by $1.7 million year-over-year due to lower construction revenues and RIN prices. The financial results for 2026 will not reflect the current business development activities, as it takes about 12 months to build new stations. Q: What factors are driving the momentum in fleet conversions to CNG and RNG, and when will this translate into higher dispensing volumes? A: Adam Comora, Co-CEO, explained that high and volatile diesel prices, regulatory clarity on combustion engines, and successful testing of the Cummins X15N engine are key factors driving fleet conversions. Initial deployments in large fleets are expected to begin in 2026, with contributions anticipated in 2027, paving the way for long-term industry conversion. Q: How did the extraordinary winter weather impact Q1, and what is the outlook for production ramp-up to meet 2026 guidance? A: Jonathan Maurer, Co-CEO, noted that the cold winter affected production due to freezing in collection systems and power outages. Despite this, production increased year-over-year. The company expects production growth in Q2 and Q3 as well field expansions occur, with accelerating production growth anticipated throughout the year. Q: What is the expected revenue or earnings cadence for the rest of 2026, and are there any potential challenges? A: Adam Comora, Co-CEO, stated that the company expects easier comps as the year progresses, particularly in Q3, due to RIN price improvements and other factors. While Q1 was challenging, the company anticipates growth and stability in earnings as the year continues. Q: Can you provide an update on the timelines for projects in construction and any challenges or positives in project development? A: Jonathan Maurer, Co-CEO, reported that the Cottonwood, Burlington, and CMS projects are progressing well, with expected completion towards the end of 2026 and into 2027. The company is also advancing multiple development opportunities and expects growth in OPAL-owned stations. Q: How are you approaching capital allocation, and what are your thoughts on M&A opportunities? A: Adam Comora, Co-CEO, highlighted that the company is evaluating M&A opportunities, particularly in the RNG sector, where some developers may struggle with execution. OPAL Fuels is disciplined in capital allocation, focusing on both upstream and downstream opportunities to ensure portfolio stability and diversification. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management attributes the first quarter's performance to a seasonally soft environment and extraordinarily cold weather, which impacted both production uptime and operational expenses. The 'logjam' for heavy-duty fleet conversions is reportedly breaking due to high diesel volatility, regulatory clarity for combustion engines, and successful testing of the Cummins X15N engine. Vertical integration is cited as a core competitive advantage, allowing the company to leverage its dispensing network to attract upstream partners while providing reliable RNG supply to downstream fleets. Operational improvements are focused on 'benchmarking' best practices across the 10-project landfill gas fleet to improve inlet gas utilization and debottleneck existing facilities. Management notes that while CNG/RNG currently holds only a 2% share of the 45 billion gallon diesel market, the industry is positioned for accelerating adoption in the untapped heavy-duty sector. The company is shifting its earnings profile to reduce sensitivity to commodity pricing by increasing contributions from contracted, volume-based tolling activity at OPAL-owned stations. Full-year 2026 guidance is maintained, with management expecting accelerating production growth and easier year-over-year comparisons starting in the second quarter. The company expects to bring online more than 2 million MMBtu of annual design capacity over the next year through the Cottonwood, Burlington, and CMS projects. Business development activity in 2026 is not expected to impact financial results until 2027 due to the 12-month lead time required for station construction after signing. Management anticipates allocating capital in 2026 toward new RNG projects and fueling station growth, supported by $233 million in current liquidity. Future growth in 2027 and beyond is expected to be driven by large-scale fleet deployments as equipment costs decrease and vendors scale production. A $3.4 million year-over-year decline in Adjusted EBITDA was primarily driven by a $0.30 decrease in realized D3 RIN prices. The company completed $288 million in financing transactions, including a $180 million preferred stock facility, to provide a runway for capital allocation. A $100 million multiyear agreement was finalized to monetize Section 45Z production tax credits, aimed at broadening the earnings base. Extraordinary winter weather caused freezing in collection systems and power outages, though RNG production still grew 9% year-over-year despite these headwinds. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management identified diesel price volatility and the proven performance of the 15-liter engine as the primary catalysts for large fleet decision-making. Initial contributions from these new deployments are expected to begin in 2027, starting as small percentages of very large fleets. The company is implementing technical fixes like heat tracing and insulation to mitigate future extreme weather impacts on landfill gas collection. Production is expected to grow quarter-over-quarter as waste intake at open landfills naturally increases the available biogas resource. Management currently prioritizes reinvesting capital into high-return upstream and downstream projects over dividends. A dividend policy would only be considered if the current pipeline of growth opportunities, including new RNG projects and OPAL-owned stations, were to diminish. Management is monitoring the M&A market for opportunistic acquisitions, noting that some RNG developers are struggling to execute their pipelines. The company views recent industry transactions as validation of attractive valuations for upstream RNG assets.

Image source: The Motley Fool. May 11, 2026, at 11 a.m. ET Co-Chief Executive Officer — Adam J. Comora Co-Chief Executive Officer — Jonathan Gilbert Maurer Chief Financial Officer — Kazi Kamrul Hasan Need a quote from a Motley Fool analyst? Email [email protected] Todd M. Firestone: Thank you, and good morning, everyone. Welcome to the OPAL Fuels Inc. first quarter 2026 earnings conference call. With me today are Co-CEOs, Adam J. Comora and Jonathan Gilbert Maurer, as well as Kazi Kamrul Hasan, OPAL’s chief financial officer. OPAL Fuels Inc. released financial and operating results for the first quarter 2026 this morning, and those results are available on the Investor Relations section of our website at opalfuels.com. The presentation and access to the webcast for this call are also available on our website. After completion of today’s call, a replay will be available for 90 days. Before we begin, I would like to remind you that our remarks, including answers to your questions, contain forward-looking statements, which involve risks, uncertainties, and assumptions. Forward-looking statements are not a guarantee of performance, and actual results could differ materially from what is contained in such statements. Several factors that could cause or contribute to such differences are described on slides 2 and 3 of our presentation. These forward-looking statements reflect our views as of the date of this call, and OPAL Fuels Inc. does not undertake any obligation to update forward-looking statements to reflect events or circumstances after the date of this call. Additionally, this call will contain discussion of certain non-GAAP measures. A definition of non-GAAP measures used and a reconciliation of these measures to the nearest GAAP measure is included in the appendix of the release and presentation. Adam will begin today’s call by providing an overview of the quarter’s results and recent highlights. Jonathan will give a commercial business development update, after which Kazi will review financial results. We will then open the call for questions. I will now turn the call over to Adam J. Comora, Co-CEO of OPAL Fuels Inc. Adam J. Comora: Thank you, and good morning, everyone. Thank you for participating in OPAL Fuels Inc.’s first quarter 2026 earnings call. Despite a challenging operating environment in the seasonally soft first quarter, we remain on track to meet our full-year guidance. Production is improving in line with our expectations, and we are encouraged by the firming of environmental credit pricing. In addition to the performance and growth in our operating platform, we are energized by the engagement we are seeing from our business development activities for new CNG/RNG fleet deployments in heavy-duty trucking. A variety of factors are leading to the logjam finally breaking for new CNG/RNG fleet deployments. High and volatile diesel pricing, regulatory clarity regarding combustion engines, and the successful tests of the Cummins X15N are moving fleets into decision-making mode for what we believe is a great product. CNG is a winning economic proposition for fleets. It supports their operations with minimal change and disruption, and the fact we deliver low carbon intensity RNG and its ancillary benefits makes it that much more compelling. We spent much of last week at ACT Expo, our industry’s flagship conference, and the excitement around RNG and CNG is real. In addition to the financial benefits, fleets also recognize the value of the sustainability benefits, whether it be achieving their ESG goals, building their brand equity, or the strategic value to win new business or, more importantly, remaining competitive and not losing business to other fleets that are deploying RNG. Natural gas in North America is abundant and is expected to remain cheaper than oil on an energy-equivalency basis for the foreseeable future. Many heavy-duty industries in the US such as steel, chemicals, and manufacturing have already shifted from oil and coal to gas to capitalize on this lower-cost energy. We believe heavy-duty trucking can be the next on that list. Diesel became the dominant fuel choice of heavy-duty trucking in the 1970s when the engine technology advanced with better fuel and cost efficiencies versus gasoline. The 9- and 12-liter natural gas engine has been in the market for about ten years and has seen strong adoption in the refuse and transit sectors after proving its cost effectiveness versus diesel. The largest refuse company in the US reports it is closing in on a 100% natural gas deployment for their fleet, and we estimate the broader refuse industry is approximately 30% natural gas deployment and growing. Now that the 15-liter natural gas engine has tested well for heavy-duty transportation, we anticipate accelerating adoption in this large and untapped market. CNG and RNG currently supply about 1 billion gallons of the 45 billion gallon diesel market, representing only a 2% market share at present. The industry and OPAL Fuels Inc. are ready to scale and begin capitalizing on this opportunity. As equipment suppliers and vendors continue to scale, they will take costs out, reducing the upfront premium on the tractors and expanding the market opportunity beyond the heaviest volume trucks. As we are energized by what we are seeing and hearing from fleet partners, keep in mind that, as we mentioned on our March call, this business development activity will not be reflected in our 2026 financial results as it takes us about 12 months to build the station after signing, and these initial deployments will likely begin as smaller percentages within very large fleets. Before turning it over to Jonathan, I would like to close by talking once again about the strength of our vertically integrated model and how we see its benefits on both the upstream side of new project development opportunities and on the downstream side when working with fleets. Our upstream partners like OPAL’s large and growing dispensing network. On the downstream side, our fleet partners not only appreciate our operational execution and low-cost fuel stations, but also our reliable, tangible, and growing RNG supply. OPAL Fuels Inc. is well positioned, with a proven track record both on the upstream and the downstream side of our business, to be a leader in the production of RNG and capitalize on what we believe is an extraordinary growth opportunity for its use as a transportation fuel in heavy-duty trucking. With that, I will turn it over to Jonathan. Jonathan? Jonathan Gilbert Maurer: Thank you, Adam, and good morning, everyone. We continue to see positive prospects for 2026 and beyond. Despite the extraordinarily cold winter in the first quarter, our upstream facilities performed well, producing more RNG compared with the comparable period in 2025. We generated yearly growth in the biogas resource. In addition, our team continues to make improvements to the performance of these facilities to better utilize that biogas. Together, these improvements give us confidence in our RNG production growth expectations. We continue to advance our in-construction portfolio, and we expect to bring online more than 2 million MMBtu of annual design capacity over the next year or so. We are also continuing to advance opportunities in our upstream development portfolio and anticipate announcing the allocation of capital in 2026 to new RNG projects as well as to fueling station growth. We are also making meaningful investments across our overall operating platform. These improvements include investments in personnel, technology, and introducing the adoption of artificial intelligence. These investments will support and augment future performance across our existing operating assets and give us confidence in improving results from executing on our business plan. We are seeing a strengthening RIN environment. Since our March call, the EPA released its final SET rule with updated 2026 and 2027 RVO targets, which were generally in line with industry expectations. The D4, D5, and D6 prices have moved up dramatically, rising to over $2. We are now beginning to see the D3 RIN participate with the broader biofuel market, with current pricing above $2.50 per RIN, and that may continue increasing over the balance of the year. The work we are doing today is positioning OPAL Fuels Inc. for meaningful growth over the coming years. While large-scale deployments will take time to fully translate into financial results, we expect growth in 2027 and beyond to be driven by the increasing recognition by fleet operators of crude oil and diesel’s sustained price volatility and the benefits of CNG and RNG. I will now turn the call over to Kazi to discuss the quarter’s financial performance. Kazi? Kazi Kamrul Hasan: Thank you, Jonathan, and good morning, everyone. Before walking through the details, I want to frame our Q1 performance around three themes. First, the platform investments we have been making are beginning to show up in our operational and financial results. Second, our financing transactions have created the runway to allocate capital. And third, our earnings profile is broadening to reduce sensitivity to commodity pricing over time. This morning, we issued our earnings press release, posted an updated investor presentation on our website, and filed our Form 10-Q. Adjusted EBITDA was $16.7 billion in the quarter compared to $20.1 million in 2025. The $3.4 million decline is primarily due to lower RIN prices. D3 realized prices declined $0.30 to $2.41 in Q1 2026 versus 2025, resulting in approximately $4 million of EBITDA impact. Operationally, the business performed as expected. First quarter revenue was $73.3 million compared to $85.4 million in the prior-year period. RNG production was 1.2 million MMBtu, up 9% year-over-year. The production improvement reflects enhanced execution by our operating team, which we expect to continue driving incremental production and efficiency gains. In our fuel station services segment, first quarter EBITDA was $9.2 million compared to $10.9 million in the prior-year period. The $1.7 million variance reflects a combination of lower construction revenues, lower RIN prices, and timing of maintenance expenses in servicing the stations. As we continue to grow OPAL-owned stations, we are seeing increasing contributions from the associated tolling activity, which is contracted and volume-based and therefore relatively lower exposure to RIN pricing. In these stations, the variable costs of gas, power, and taxes are passed through to our customers. We expect increasing growth of OPAL-owned stations to strengthen downstream earnings stability. We completed several financing transactions this quarter totaling $288 million, which included a $180 million preferred stock facility. In addition, we drew the remainder of our term loan facility with a net amount of $109 million. We ended the quarter with approximately $233 million of liquidity. This amount includes approximately $133 million of cash and short-term investments, $60 million of undrawn preferred stock facility commitments, and approximately $39 million of revolver availability. In the quarter, we sold $11.5 million of ITC credits from Atlantic. We also completed a $100 million multiyear agreement to monetize OPAL’s Section 45Z production tax credits. We maintain full-year 2026 guidance. Stepping back, our financial strategy is clear. Grow operating and free cash flow, broaden the earnings base to reduce commodity exposure, and allocate capital to the highest return opportunities in our pipeline. With $233 million of liquidity and internal cash generation, OPAL Fuels Inc. is well positioned to execute on our strategy. With that, I will now turn the call back over to Jonathan for closing remarks. Jonathan? Jonathan Gilbert Maurer: In closing, we remain well positioned for continued disciplined execution of our strategic growth objectives and the expansion of OPAL’s vertically integrated platform. We will now open the call for questions. I will now turn the call over to the operator for Q&A. Thank you all for your interest in OPAL Fuels Inc. Operator: As a reminder, to ask a question, please press 11 on your telephone and wait for your name to be announced. To withdraw your question, please press 11 again. Please wait while we assemble the roster. Our first question. Analyst: Good morning all, and thanks for taking my questions. For my first one, it seems like there is real momentum on fleet conversions. Can you provide color on some of the factors driving this? And then over what period do you see this converting into higher dispensing volumes? Adam J. Comora: Yes, good morning. This is Adam here, and I appreciate the question. It is a variety of factors that we think are going to start to translate into beginnings of fleet deployments. Clearly, diesel pricing—not only the high price of diesel, but the volatility of diesel—is one of the key catalysts to force fleets into looking at other alternatives. I think the regulatory clarity that combustion engines are going to be something that moves forward for heavy-duty trucking, and the successful testing of the X15N engine. So all three of those things have lined up for what we believe are going to be some initial deployments in very large fleets, and we think we will start to see some contributions in 2027. They are not going to be extraordinarily large numbers for what the initial set of stations and trucks may be, but we believe it is paving the way for a multiyear, really long-term conversion set for this industry and this sector. We are excited that we have been talking about how the math makes sense and how the logic makes sense, and we think it is finally going to translate into some actions on that side of things here in 2026. Analyst: Maybe for my follow-up, you highlighted difficult weather conditions in Q1. Can you help frame how much of an impact weather had during the quarter and your thoughts on the progression of the production ramp over the next three quarters to meet your 2026 guide? Jonathan Gilbert Maurer: Yes, this is Jonathan. I will jump in on this one. Clearly, winter across certainly east of the Rockies was extraordinary, from a cold and from an amount-of-snow standpoint. Despite that, we were able to increase our production compared to the comparable period in the prior year. When we get cold like this, it affects us in three ways. The first is that it causes issues in the collection system at the landfill itself, where water and the gas will freeze within the collection system. The second area that affects us is in our RNG projects directly; we get some freezing there. And then the third is that we have things outside of our control, such as power outages. All three of those affected us this year, but we were able to be resilient in our operations and rise to some of those challenges. We take actions whenever we see these things to try to add, for example, additional heat tracing or insulation or other things for our projects to add to that resilience, but it will continue to pop up on us when it is an extraordinary winter as it was. Now we are turning into the springtime, and we are seeing the timing when wellfield expansion projects take place so that we start to see annual gas growth occur in Q2 and Q3. In terms of the gas at the inlet, all of our projects are on open and growing landfills, so they continue to take in amounts of waste that result in our inlet gas amounts increasing, and that causes our resource to grow year over year. So there continues to be, in summary, good resiliency to these seasonal issues, and we expect to see growth quarter over quarter during the year as we put some of these additional amounts into the collection. Adam J. Comora: The only thing I would also add is that not only on the production side, the extraordinarily cold weather resulted in some higher OpEx as well associated with that cold weather, so it was really almost a double whammy with what we saw in the first quarter. Although we do not give production and earnings guidance by quarter, we do expect accelerating production growth starting in the second quarter and moving through the year. Operator: Thank you. Our next question comes from Ryan Finch of B. Riley Securities. Your line is open. Analyst: Good morning, and thanks for taking my questions. Maybe just a follow-up on that last one. Thinking about expected revenue or earnings cadence through the rest of this year, is there anything else to highlight or to look out for in terms of potential lumpiness, or are we expecting growth on a quarterly basis through 2026? Adam J. Comora: I would say certainly it feels like the comps are getting easier for us as we move through the year, where we were crossing over where the RIN price was in Q2 from last year into this year. We are through the tough quarter from a RIN price perspective and see those comps getting easier, particularly in Q3. I would also say we had in 2025 a higher LCFS credit sale in the first quarter of last year, which also impacted the comp when you are looking year over year, and some of our 45Z benefits were masked in the first quarter of this year versus an RNG sale from the first quarter of last year. So certainly it feels like the comps are going to get much easier as we move through the year. All of this was baked into our guidance. Then we have a couple of nits on the fuel station services side where construction revenues can be lumpy based on the timing of when that project work is done, and a little bit of timing in terms of when we had some maintenance costs. We really feel like the first quarter was the worst of all worlds, and a lot of those things are going to ease as we move through the year. Analyst: Appreciate that. And then curious if you could give us an update on timelines for projects in construction or perhaps more high-level commentary on any particular challenges or positives to highlight around project development more broadly? Jonathan Gilbert Maurer: Sure. We are progressing full-bore on our Cottonwood, Burlington, and CMS projects. We see these projects coming online towards the end of this year and into the first half of next year, so we are seeing that construction timeline advance towards completion. The Cottonwood and Burlington projects are in the field right now, with the construction contractors pouring cement at Cottonwood, and we are getting ready to do so at the Burlington project. CMS remains on track as well. On the development side of our business, we are progressing multiple opportunities. On a disciplined basis, we take into account our risk-adjusted capital as well as our dispensing availability, which Adam mentioned. We see some logjam breaking there and some potential growth. Certainly, on the downstream side of our business, we have 16 OPAL-owned stations that are in construction and progressing along. That is where our construction business stands today. Adam J. Comora: To go back to one of the other quarterly questions on cadence, our toughest comp is coming in the fourth quarter. We had a very low SG&A quarter in the fourth quarter of last year, so I would just highlight that our toughest quarter will be in the fourth coming up this year. Operator: Thank you. Our next question comes from Martin Whittier Malloy of Johnson Rice & Company. Your line is open. Martin Whittier Malloy: Good morning. My first question, I wanted to ask about some of the new engine introductions that Cummins has, the X15 and the new X15 and X10 in 2027. Could you maybe talk about the potential impact you see on the demand for CNG resulting from those? And then I was just curious if we could get your thoughts as you look out regarding potential return of capital to shareholders through a dividend? Adam J. Comora: Regarding the natural gas engines, the 15-liter has performed extraordinarily well and really stood up to the duty cycles and the operating requirements of the fleets. We think it has done extraordinarily well. On return of capital, we are still seeing very strong opportunities to deploy capital and reinvest in projects, both on the upstream and the downstream side. We think that is the right place to be investing and growing our business given those risk-adjusted returns. If those opportunities are no longer in front of us, then we will start looking at other ways to enhance shareholder value through a potential dividend policy or something else. Right now, we are really excited about some new upstream projects that we think we are going to be greenlighting soon, and also the potential for OPAL-owned fuel stations in these fleet deployments. Operator: Thank you. Our next question comes from Adam Samuel Bubes of Goldman Sachs. Your line is open. Adam Samuel Bubes: Hi, good morning. I know you talked about 2026 fuel station services being a year where business development activity sets the stage for future growth, but are we thinking about 2026 EBITDA down versus 2025, or should we still expect growth this year? And then, based on dialogue with customers and pipeline of projects, how much visibility do you have on how 2027 could shape up? Adam J. Comora: We are not expecting fuel station services necessarily to be down in 2026 versus 2025. It was a noisy quarter for fuel station services, particularly on the GGE volumes, which are not necessarily significantly impactful to how the profitability of that unit will be for the entire year. We called out on a previous conference call that we did have one short-term contract—about 1.5 million gallons per quarter—that we cycle through at the end of June. There is a little bit of GGE noise in there. To give you a flavor, we are always opportunistic in our dispensing network and have the ability to flex up or flex down. We had one large contract with a refuse customer that was looking for RNG supply from OPAL Fuels Inc. and some of our third-party suppliers as they were waiting for their projects to ramp and fill in their own dispensing capacity that we cycle through now in this second quarter. We do expect the business unit to perform well this year. We also said in our guidance that it was not necessarily an outsized year in terms of growth in that segment. For 2027, it is a little early for us to earmark how quick deployments are going to be and how many stations it means and what it means for gallons that flow through in 2027, but we expect some impact from some of these newer opportunities. Adam Samuel Bubes: Got it. Putting the pieces together for the reiterated guidance, I think the guidance at the midpoint embeds EBITDA up around $12 million year over year. 45Z is expected to contribute $15 million to $20 million, and I think RNG fuel production is also rising. If fuel station services is up year over year, I am just having trouble bridging the moving pieces. What is the delta there? Is that corporate expense inflation or anything I might be missing? Kazi Kamrul Hasan: Our corporate expense will be up year over year, and that could be one area, in the mid–single-digit million range. The RIN price variation on a year-on-year basis is also going to be one of the major impacts. Adam Samuel Bubes: Understood. And then last one from me. It sounds like you alluded to some new upstream projects in the pipeline, and in the past you have talked about a target to place 2 million MMBtu of landfill gas projects into construction annually. How are you thinking about the range of outcomes this year? Adam J. Comora: We will have some new RNG project growth in 2026. We have been telling folks that we are flexible in our thinking, and we are seeing a large opportunity in our downstream fuel station services segment. We are going to be disciplined in our capital allocation, and we are not going to give a specific target for how many new RNG projects from an MMBtu basis, but you should expect growth on both sides of our business. Operator: Our next question comes from UBS. Your line is open. Analyst: Hi, thanks for taking our question. You have increased your cash pile, and last earnings call you mentioned that you see opportunistic M&A opportunities. Can you walk us through how you are thinking about capital allocation, what you are seeing in the M&A market, and how it competes with potential projects? Thank you. Adam J. Comora: This quarter we saw the first transaction in our sector in quite some time with Ameresco’s transaction with HASI. I am not sure if people have looked through those numbers yet, but it was pretty intriguing to us in terms of valuations and that sort of thing on the upstream part of our business. We think it is an interesting sector with a lot of opportunities on the M&A side, particularly as many RNG developers may be struggling with executing on their pipeline. We are always evaluating and looking at other opportunities and do think our vertical integration puts us in a unique position on the upstream M&A side. Kazi Kamrul Hasan: Two things I would highlight. We are continuing to invest in our existing operating asset base and operating platform to continue to improve production as well as the financial results. We are very disciplined when it comes to capital allocation. We do have dry powder; some of that amount is not committed. We are going to invest in our existing construction projects, and on top of that, whatever is left, we are going to look at opportunities in both RNG projects as well as the downstream dispensing station platforms. We will look at where we should invest to support portfolio stability over the long term and diversify, avoiding too much exposure in one area versus another. Yes, we do have cash that we have ways to put in, and we want to make sure that we are being disciplined in capital allocation. Analyst: Switching to the operational side, given that this year’s guide is largely driven by operational improvements, and as you look to scale RNG production over time, what has been the biggest operational learning from your existing facilities, and how are those learnings being implemented for the development and execution of future projects? Jonathan Gilbert Maurer: We now have 10 landfill gas RNG projects, and as we have grown quite a bit over the last several years and put more into operation, we take lessons across the fleet in terms of what works at various projects and bring that across to our other comparable projects. In addition, we have upgraded personnel across our organization, both in terms of leading the RNG sector and the fuel station services sector as well as the employees within those groups. Lastly, some of the improvements that we are making are in the wellfield itself, putting in technology that helps to improve gas collection, and both gas quality and gas quantity can be improved through that effort. That will also serve to improve the availability of projects. In summary, you are seeing better people, better efficiencies and availabilities, and better gas collection. Adam J. Comora: To finish off Jonathan’s thought, we believe that is going to show up both in terms of our inlet design capacity utilization and our utilization of inlet gas, and it really goes all the way from the wellfield to operational availability and uptime to debottlenecking. It is leveraging where you are benchmarking your best facilities and bringing those best practices across the fleet. Operator: Thank you. I am showing no further questions at this time. I would like to turn it back to Adam J. Comora for closing remarks. Adam J. Comora: Thank you all for your interest in OPAL Fuels Inc. and for joining us today. We look forward to speaking with you again soon. Operator: This concludes today’s conference call. Thank you for participating, and you may now disconnect. Before you buy stock in OPAL Fuels, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and OPAL Fuels wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $471,827!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,319,291!* Now, it’s worth noting Stock Advisor’s total average return is 986% — a market-crushing outperformance compared to 207% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of May 11, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. OPAL Fuels (OPAL) Q1 2026 Earnings Transcript was originally published by The Motley Fool

Interested in OPAL Fuels Inc.? Here are five stocks we like better. OPAL Fuels said it remains on track to meet its full-year 2026 guidance even after a softer first quarter, as management pointed to improving RNG production, firmer environmental credit prices and growing interest from heavy-duty trucking fleets. First-quarter revenue fell to $73.3 million from $85.4 million a year ago, while adjusted EBITDA declined to $16.7 million from $20.1 million, mainly because of lower RIN prices. RNG production still rose 9% year over year to 1.2 million MMBtu. Management highlighted a strong project pipeline and balance sheet, including $233 million of liquidity, 16 OPAL-owned stations under construction and financing/tax-credit monetization activity that supports continued investment in upstream RNG projects and fueling stations. Opal Fuels CEO on Steering the Future of Renewable Natural Gas OPAL Fuels (NASDAQ:OPAL) said it remains on track to meet its full-year 2026 guidance despite lower first-quarter revenue and adjusted EBITDA, as management pointed to improving renewable natural gas production, stronger environmental credit pricing and growing interest from heavy-duty trucking fleets in compressed natural gas and renewable natural gas. Speaking on the company’s first-quarter earnings call, Co-Chief Executive Officer Adam Comora described the quarter as seasonally soft and marked by a challenging operating environment, but said production trends and credit markets were improving in line with expectations. → Beyond NVIDIA: Picks-and-Shovels AI Plays with Strong Momentum “Production is improving in line with our expectations, and we are encouraged by the firming of environmental credit pricing,” Comora said. He added that OPAL is seeing increased business development activity tied to new CNG and RNG fleet deployments in heavy-duty trucking. Chief Financial Officer Kazi Hasan said first-quarter revenue was $73.3 million, down from $85.4 million in the prior-year period. Adjusted EBITDA was $16.7 million, compared with $20.1 million in the first quarter of 2025. → 3 Ways to Target the Resources Powering AI and Data Centers Hasan attributed the $3.4 million adjusted EBITDA decline primarily to lower RIN prices. He said realized D3 prices declined by $0.30 to $2.41 in the first quarter of 2026 versus the year-earlier period, creating an approximately $4 million EBITDA impact. Operationally, Hasan said the business performed as expected. RNG production totaled 1.2 million MMBtu, up 9% year over year, reflecting improved execution by the operating team. → Quantum Earnings Season Is Ramping Up—What to Watch From 2 Major Players In the Fuel Station Services segment, first-quarter EBITDA was $9.2 million, compared with $10.9 million in the year-earlier period. Hasan said the decline reflected lower construction revenue, lower RIN prices and the timing of maintenance expenses. Management said the company’s earnings profile is broadening as it grows OPAL-owned stations. Hasan said associated tolling activity is contracted and volume-based, with relatively lower exposure to RIN pricing, and that variable costs including gas, power and taxes are passed through to customers. Comora said several factors are beginning to break what he called a “logjam” for CNG and RNG fleet deployments, including high and volatile diesel prices, regulatory clarity regarding combustion engines and successful testing of the Cummins X15N natural gas engine. He said CNG offers fleets a compelling economic proposition with limited operational disruption, while RNG adds sustainability benefits that fleets can use for ESG goals, brand value and competitive positioning. Comora noted that CNG and RNG currently supply about 1 billion gallons of the 45 billion-gallon diesel market, representing roughly 2% market share. He said the company believes heavy-duty trucking could follow other industrial sectors that have shifted toward natural gas because of cost advantages. However, Comora cautioned that current business development activity is not expected to materially affect 2026 financial results, because OPAL typically needs about 12 months to build a station after signing a customer, and initial deployments are likely to begin as smaller portions of very large fleets. In response to an analyst question, Comora said the company expects “some contributions in 2027” from new fleet deployments, but characterized the opportunity as a multiyear, long-term conversion for the sector. Co-Chief Executive Officer Jonathan Maurer said OPAL’s upstream facilities performed well despite an “extraordinarily cold winter” in the first quarter, producing more RNG than in the comparable period of 2025. Maurer said cold weather affected the business in three ways: freezing in landfill gas collection systems, freezing at RNG projects and external issues such as power outages. He said the company responded by adding measures such as heat tracing and insulation to improve resiliency. Comora added that the severe cold also increased operating expenses, creating “almost a double whammy” in the quarter. While OPAL does not provide quarterly production or earnings guidance, he said the company expects accelerating production growth beginning in the second quarter and continuing through the year. Maurer said OPAL continues to advance its construction portfolio and expects to bring online more than 2 million MMBtu of annual design capacity over the next year or so. He identified the Cottonwood, Burlington and CMS projects as progressing toward completion, with Cottonwood and Burlington in field construction and CMS remaining on track. He also said the company has 16 OPAL-owned stations under construction and continues to advance upstream development opportunities. Management expects to announce capital allocation in 2026 for new RNG projects as well as fueling station growth. Hasan said OPAL completed financing transactions totaling $288 million during the quarter, including a $180 million preferred stock facility and the remaining draw on its term loan facility, with net proceeds of $109 million. The company ended the quarter with approximately $233 million of liquidity, including about $133 million of cash and short-term investments, $60 million of undrawn preferred stock facility commitments and approximately $39 million of revolver availability. Hasan also said OPAL sold $11.5 million of investment tax credits from Atlantic during the quarter and completed a $100 million multiyear agreement to monetize Section 45Z production tax credits. Asked about capital returns to shareholders, Comora said OPAL continues to see strong opportunities to reinvest in upstream projects and downstream fuel stations. He said the company would consider other ways to enhance shareholder value, including a potential dividend policy, if those opportunities were no longer available. Maurer said the RIN market has strengthened since OPAL’s March call, following the Environmental Protection Agency’s final Set Rule with updated 2026 and 2027 renewable volume obligation targets. He said D4, D5 and D6 prices had risen to more than $2, while D3 RIN pricing was above $2.50 per RIN. Management reiterated OPAL’s full-year 2026 guidance. Comora said year-over-year comparisons should become easier after the first quarter, particularly as the company moves past difficult comparisons for RIN pricing and a higher LCFS credit sale in the first quarter of 2025. He also noted construction revenue and maintenance costs can create lumpiness in the Fuel Station Services segment. Hasan said OPAL’s financial strategy is to grow operating and free cash flow, broaden its earnings base to reduce commodity exposure and allocate capital to the highest-return opportunities in its pipeline. OPAL Fuels (NASDAQ: OPAL) is a publicly traded company headquartered in San Diego, California, specializing in the production, distribution and dispensing of renewable natural gas (RNG) for heavy-duty transportation. The company operates a network of RNG fueling stations across California, offering fleets of trucks, transit buses and logistics providers a low-carbon alternative to conventional diesel without requiring significant changes to existing vehicle technology or fueling infrastructure. OPAL Fuels sources organic byproducts from dairy farms, landfills and food-processing facilities, converting methane-rich biogas into pipeline-quality RNG through a series of anaerobic digestion and gas-upgrading processes. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "OPAL Fuels Q1 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for May 2026.

WHITE PLAINS, N.Y., May 11, 2026--(BUSINESS WIRE)--OPAL Fuels ("OPAL Fuels" or the "Company") (Nasdaq: OPAL) today announced financial and operating results for the three months ended March 31, 2026. "Despite a challenging operating environment in the seasonally soft first quarter, we remain on track to meet our full year guidance," said Adam Comora, Co-Chief Executive Officer of OPAL Fuels. "Production trends have improved, in line with our expectations, and we are encouraged by the recent firming in environmental credit prices." "Our business development efforts for new fleet conversions to CNG and RNG in the heavy-duty trucking sector are gaining traction. A variety of factors are contributing to this momentum - high and volatile diesel pricing, regulatory clarity regarding combustion engines, ongoing sustainability goals, and the successful tests of the Cummins X15N engine are moving fleets into decision making mode," continued Comora. Jonathan Maurer, Co-Chief Executive Officer of OPAL Fuels, said, "Given the difficult weather conditions, our RNG facilities performed well, producing more RNG compared with the first quarter of 2025. This performance is due to the meaningful improvements we are making across our operating platform. We expect to see these improvements continue throughout the year. In the quarter we completed several financing transactions which added clarity to our capital structure and sets us up for continued investment and growth in both our upstream and downstream segments. In addition, IRA Investment Tax credits, 45Z production tax credits, and EPA's issuance of Set Rule 2 demonstrate the supportive regulatory backdrop for our business." Financial Highlights This quarter's financial results saw improved production and the positive impact of 45Z production tax credits compared with the prior year quarter. These improvements were offset by a lower RIN price environment and last year's inclusion of additional RNG production sales in the first quarter of 2025 following the implementation of biogas regulatory reforms. Adjusted EBITDA(1) for the three months ended March 31, 2026, was $16.7 million compared to $20.1 million in the comparable period last year. Revenue for the three months ended March 31, 2026 and 2025, was $73.4 million and $85.4 million respectively, a decrease of (14)%, compared to the same period last year. Net (loss) income for the three months ended March 31, 2026 was $(5.6) million, compared to $1.3 million in the same period last year. Basic and diluted net loss per share attributable to Class A common shareholders for the three months ended months ended March 31, 2026 were $(0.09) compared to $(0.01) in the comparable period last year. At March 31, 2026, RNG Pending Monetization totaled $23.5 million. On March 6, 2026 we completed the refinancing of our outstanding Preferred Units with a new Preferred Stock Facility of $180 million of which $120 million was initially drawn. In the first quarter we completed our fifth sale of IRA Investment Tax Credits for $23 million for our Atlantic facility. In April we entered into a $100 million Master Agreement to monetize section 45Z Production Tax Credits. Operational Highlights RNG produced was 1.2 million MMBtu for the three months ended March 31, 2026, an increase of 9% compared to the prior-year period.(3) The Fuel Station Services segment sold, dispensed, and serviced an aggregate of 39.0 million GGEs of transportation fuel for the three months ended March 31, 2026, a decrease of 4% compared to the prior-year period. Of this amount, RNG dispensed as a transportation fuel was 17.9 million GGEs, a decrease of 8% compared to the prior-year period. Guidance We maintain 2026 guidance. Results of Operations Results of Operations from equity method investments Landfill RNG Facility Capacity and Utilization Summary RNG Pending Monetization Summary Liquidity As of March 31, 2026, our liquidity was $232.5 million, consisting of $133.2 million of cash and cash equivalents, $39.3 million of unused capacity under the revolver, $60.0 million of undrawn preferred stock facility. Capital Expenditures During the three months ended March 31, 2026, OPAL Fuels invested $24.4 million across RNG projects in construction and OPAL Fuels owned fueling stations in construction as compared to $11.6 million in the prior year. In addition, for the three months ended March 31, 2026, the Company's portion of capital expenditures in unconsolidated entities was $3.3 million compared to $5.4 million in the prior year. This represents our share of capital expenditures incurred by equity method investments. Earnings Call A webcast to review OPAL Fuels’ First Quarter 2026 results is being held today, March 11, 2026 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/yubhgs6w Investors can also listen to a webcast of the presentation on the Company’s Investor Relations website at https://opalfuels.gcs-web.com/news-events/events-presentations Glossary of terms "D3" refers to cellulosic biofuel with a 60% GHG reduction requirement. "GGE" refers to gasoline gallon equivalent. The conversion ratio is 1 MMBtu of natural gas equal to 7.74 GGE. "LCFS" refers to Low Carbon Fuel Standard or similar types of federal and state programs. "MMBtu" refers to million British thermal units. "RECs" refers to renewable energy credits. "Renewable Power" refers to electricity generated from renewable sources. "RIN" refers to Renewable Identification Numbers. "RNG" refers to renewable natural gas. "VIEs" refers to variable interest entities. About OPAL Fuels OPAL Fuels (Nasdaq: OPAL) is a leader in the capture and conversion of biogas into low carbon intensity RNG and Renewable Power. OPAL Fuels is also a leader in the marketing and distribution of RNG to heavy duty trucking and other hard to decarbonize 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 the Company's 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 and quarterly reports on Form 10-Q, 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 of 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. Non-GAAP Financial Measures (Unaudited) This release includes various financial measures that are non-GAAP financial measures as defined under the rules of the Securities and Exchange Commission. We believe these measures provide important supplemental information to investors to use in evaluating ongoing operating results. We use these measures, together with accounting principles generally accepted in the United States ("GAAP" or "U.S. GAAP"), for internal managerial purposes and as a means to evaluate period-to-period comparisons. However, we do not, and you should not, rely on non-GAAP financial measures alone as measures of our performance. We believe that non-GAAP financial measures reflect an additional way of viewing aspects of our operations, that when taken together with GAAP results and the reconciliations to corresponding GAAP financial measures that we also provide, give a more complete understanding of factors and trends affecting our business. We strongly encourage you to review all of our financial statements and publicly filed reports in their entirety and to not solely rely on any single non-GAAP financial measure. Non-GAAP financial measures are limited as an analytical tool and should not be considered in isolation from, or as a substitute for, the Company's GAAP results. The Company expects to continue reporting non-GAAP financial measures, adjusting for the items described below (and/or other items that may arise in the future as the Company's management deems appropriate), and the Company expects to continue to incur expenses, charges or gains like the non-GAAP adjustments described below. Accordingly, unless expressly stated otherwise, the exclusion of these and other similar items in the presentation of non-GAAP financial measures should not be construed as an inference that these costs are unusual, infrequent, or non-recurring. These Non-GAAP financial measures are not recognized terms under GAAP and do not purport to be alternatives to GAAP net income or any other GAAP measure as indicators of operating performance. Moreover, because not all companies use identical measures and calculations, the Company's presentation of Non-GAAP financial measures may not be comparable to other similarly titled measures used by other companies. We strongly encourage you to review all of our financial statements and publicly filed reports in their entirety and to not solely rely on any single non-GAAP financial measure. Adjusted EBITDA To supplement the Company's unaudited condensed consolidated financial statements presented in accordance with GAAP, the Company uses a non-GAAP financial measure that it calls Adjusted EBITDA ("Adjusted EBITDA"). This non-GAAP financial measure adjusts net income for interest and financing expense, net, net income attributable to non-redeemable non-controlling interests, depreciation, amortization and accretion, adjustments to reflect Adjusted EBITDA from equity method investments, fair value changes and non-recurring charges, Stock-based compensation, major maintenance, RNG development costs, 45z generation and ITC proceeds, net. Management believes this non-GAAP financial measure provides meaningful supplemental information about the Company's performance, for the following reasons: (1) it allows for greater transparency with respect to key metrics used by management to assess the Company's operating performance and make financial and operational decisions; (2) the measure excludes the effect of items that management believes are not directly attributable to the Company's core operating performance and may obscure trends in the business; (3) the measure better aligns revenues with expenses; and (4) the measure is used by institutional investors and the analyst community to help analyze the Company's business. In future quarters, the Company may adjust for other expenditures, charges or gains to present non-GAAP financial measures that the Company's management believes are indicative of the Company's core operating performance. The following table presents the reconciliation of our net income to Adjusted EBITDA: View source version on businesswire.com: https://www.businesswire.com/news/home/20260511601081/en/ Contacts Investors Todd Firestone Vice President, Investor Relations and Corporate Development (914) 705-4001 [email protected] Media Harrison Feuer Senior Director, Communications and Public Policy (914) 721-3723 [email protected]