OPAL

Good morning, and welcome to the OPAL Fuels first quarter 2026 earnings call and webcast. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question-and-answer session. To ask a question during the session, you will need to press star one one on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star one one again. As a reminder, this event is being recorded. I would now like to turn the call over to Todd Firestone, Vice President of Investor Relations, to begin. Please go ahead.

Thank you. Good morning, everyone. Welcome to the OPAL Fuels first quarter 2026 earnings conference call. With me today are Co-CEOs Adam Comora and Jonathan Maurer, as well as Kazi Hasan, OPAL's Chief Financial Officer. OPAL Fuels released financial and operating results for the first quarter of 2026 this morning. 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'd 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. 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 two and three of our presentation. These forward-looking statements reflect our views as of the date of this call. Opal Fuels does not undertake any obligation to update forward-looking statements to reflect events or circumstances after the date of this call. This call will contain discussion of certain non-GAAP measures. A definition of non-GAAP measures used in a reconciliation of these measures to the 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. Jon will give a commercial and business development update, after which Kazi will review financial results. We'll open the call for questions. I'll turn the call over to Adam Comora, Co-Chief Executive Officer of Opal Fuels.

Thank you, Todd, and good morning, everyone, and thank you for participating in OPAL Fuels 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 and 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 make 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 to oil on an energy equivalency value for the foreseeable future.

Many heavy-duty industries in the U.S., such as steel, chemicals, and manufacturing, have already shifted from oil and coal to natural 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 nine and 12-liter natural gas engine has been in the market for about 10 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 U.S. reports it is closing in on 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 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 our fleet partners, keep in mind, however, that as we mentioned on our March call, this business development activity will not get reflected in our 2026 financial results as it takes us about 12 months to build a station after signing, and these initial deployments will likely begin as smaller percentages within very large fleets. Before turning it over to John, 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 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 and heavy-duty trucking. With that, I'll turn it over to John. John?

Thank you, Adam. 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 generate 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're 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 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'll now turn the call over to Kazi to discuss the quarter's financial performance. Kazi?

Thank you, John, 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 is beginning to show up in our operational and financial results. Second, our financing transactions have created the runway to allocate capital. Third, our earnings profile is broadening to reduce sensitivity to commodity pricing over time. This morning, we issued our earnings press release and posted an updated investor presentation on our website and filed our Form 10-Q. Adjusted EBITDA was $16.7 million in the quarter compared to $20.1 million in Q1 of 2025. The $3.4 million decline is primarily due to lower RIN prices.

These three realized prices declined $0.30 to $2.41 in Q1 2026 versus Q1 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 price, 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 the increasing growth of OPAL-owned stations to strengthen downstream earnings stability. We completed several financing transactions this quarter totaling $288 million, which included $180 million of 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 Fuels' 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 is well positioned to execute on our strategy. With that, I'll now turn the call back over to John for closing remarks. John?

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'll now turn the call over to the operator for Q&A. Thank you all for your interest in OPAL Fuels.

Thank you. As a reminder, to ask a question, please press star one one on your telephone and wait for your name to be announced. To withdraw your question, please press star one one again. Please wait while we assemble the roster. Our first question comes from John Anders of Texas Capital. Your line is open.

Hey, good morning, all, and thanks for taking my questions. For my first one, it seems like there's real momentum on fleet conversions. Can you provide color on some of the factors driving this? Over what period do you see this converting into higher dispensing volumes?

Yeah. Good morning. This is Adam here, appreciate the question. You know, it's a variety of factors that we think are gonna start to translate into the beginnings of fleet deployments here. I think, you know, clearly diesel pricing, not only the high price of diesel, but the volatility of diesel is what may be one of the key catalysts to force fleets into looking at other alternatives. I think the regulatory clarity that combustion engines are gonna be something that moves forward for heavy-duty trucking, it was really, you know, successful testing of the X15N engine.

All three of those things have lined up for what we believe are gonna be some initial deployments here in very large fleets. You know, we think we will start to see some contributions in 2027. You know, they aren't gonna be, you know, extraordinarily large numbers for what the initial set of stations and trucks may be. We believe it's paving the way for a multiyear, you know, really long-term conversion set for this industry and this sector. We're excited that, you know, we've been talking about how the math makes sense and how the logic makes sense, we think it's finally gonna translate into some actions on that side of things here in 2026.

I appreciate that color. 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?

This is John. I'll jump in on this one. You know, clearly the winter across the 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 in the gas will freeze within the collection system. The second area that it affects us is in our RNG projects directly where we get some freezing there. 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 to our projects to add to that resilience. It will continue to pop up on us, particularly when it's an extraordinary winter as it was. Now we're turning into the springtime, and we're seeing the timing when well field expansion projects take place so that we start to see annual gas growth occur in Q2 and Q3 in terms of our, you know, the gas at the inlet.

All of our projects are on open and growing landfills, we 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. There continues to be, you know, in summary, good resiliency to these seasonal issues that we have and that we continue to see. We'll see growth, quarter-over-quarter, during the year as we put some of these additional amounts into the collection. Adam?

Yeah. The only thing I would also add there is not only on the production side that extraordinarily cold weather did result in some higher OpEx as well associated with that cold weather. You know, really almost a double whammy there with what we saw in the first quarter. Although we don't give production and earnings guidance by quarter, you know, we do expect accelerating production growth, you know, starting in second quarter and moving through the year.

Thanks all. I appreciate the time.

Thank you. Our next question comes from Ryan Pfingst of B. Riley Securities. Your line is open.

Hey, good morning, guys. Thanks for taking my questions. Maybe just to 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?

I would say this is Adam here. Certainly it feels like the comps are getting easier for us as we move through the year where we're crossing over where the RIN price was Q2 from last year into this year. We're sort of 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 the first quarter of 2025 a higher LCFS credit sale in the first quarter of last year, which also impacted the comp when you're looking year-over-year.

You know, some of our 45Z benefits were masked in the first quarter of this year versus, you know, an RNG sale from the first quarter of last year. Certainly it feels like the comps are gonna get much easier as we move through the year. All of this was baked into our guidance. 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, you know, timing in terms of when we had some maintenance costs. You know, we really feel like the first quarter was sort of the worst of all worlds.

A lot of those things are gonna ease as we move through the year.

Appreciate that. Secondly, 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.

Sure. I'll take that one. We're 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. 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're getting ready to do so at the Burlington project. CMS remains on track as well. On the development side of our business, we're 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 positive potential growth.

Certainly on the downstream side of our business, we have 16 OPAL-owned stations that are in construction and progressing along. That's kind of where our construction business stands today.

You know, sorry, just to go back to one of those other quarterly questions on cadence. Our toughest comp is coming in the fourth quarter, where we had a very low SG&A quarter in the fourth quarter of last year. I would just highlight that our toughest quarter will be in the fourth coming up this year.

I appreciate it, guys. Thanks.

Thank you. Our next question comes from Martin Malloy of Johnson Rice & Company. Your line is open.

Good morning. My first question, just wanted to ask about some of the new engine introductions that Cummins has, the X15 and the new X15 and X10 for 2027. Could you maybe talk about the potential impact you see on the demand for CNG resulting from those?

Are you talking about the diesel engine that they're introducing? Are you talking about the natural gas engines? Good morning, and thank you for your question.

The natural gas engines.

I think the 15-liter has performed extraordinarily well, really stood up to the duty cycles and the operating requirements of the fleets. You know, we think it's done extraordinarily well. Now you were asking about the X10?

Oh, I'm sorry. I misspoke there. It was the X15. I was just kind of curious if we could get your thoughts as you look out regarding potential return of capital to shareholders through a dividend.

We are still seeing very strong opportunities to deploy capital and reinvest in our projects, both on the upstream and the downstream side. We still think that is the right place to be investing and growing our business, given those risk-adjusted returns. If those opportunities no longer appear in front of us, then we will start to looking at other ways to enhance shareholder value through that, you know, a potential dividend policy or something else. Right now, though, you know, we're really excited about some new upstream projects that we think we're gonna be green-lighting soon, and also the potential for OPAL-owned fuel stations in these fleet deployments.

Great. Thank you. I'll turn it back.

Thank you. Our next question comes from Adam Bubes of Goldman Sachs. Your line is open.

Hi, good morning. I know you talked about 2026 Fuel Station Services is gonna be a year where biz dev 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? Based on dialogue with customers and pipeline of projects, how much visibility do you have on how 2027 could shape up?

This is Adam again. No, we're not expecting Fuel Station Services necessarily to be down in 2026 to 2025. It was a noisy quarter for Fuel Station Services. You know, particularly on the GGE volumes, which I know get called out, and are not necessarily significantly impactful to how the profitability of that unit will do for the entire year. I think we called out on a previous conference call, that we did have one short-term contract, which is about 2.5 million gallons per quarter that we cycle through at the end of June here. You know, there is a little bit of GGE noise in there.

To give you a flavor for that, you know, we're always opportunistic in our dispensing network, and have the abilities to flex up or flex down. We did have one large contract with a refuse customer that was looking for RNG supply from OPAL Fuels 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 cycled through now in this second quarter. You know, we do expect the business unit to perform well this year. I think we also said in our guidance that it wasn't necessarily, you know, an outsized year in terms of what the growth would be in that segment.

For 2027, it's a little early for us to really earmark, you know, how quick deployments are gonna be and how many stations it means and what it means for gallons that flow through in 2027. You know, we do expect some impact from some of these newer opportunities.

Got it. Then I just putting the pieces together for the reiterated guide, I think guidance at the midpoint embeds EBITDA up around $12 million year-over-year. 45Z is expected to contribute $15 million-$20 million, and I think RNG fuel production is also rising. If Fuel Station Services is up year-over-year, I'm just having trouble bridging the moving pieces. What's the delta there? Is that corporate expense inflation or anything I might be missing?

Yeah. I mean, our corporate expense will be up year-over-year. That could be one area, and that's in the mid-single digit million range.

Let me also add. I think, Adam, this is Kazi. The RIN price variation is also on a year-on-year basis going to be one of the major impacts.

Got it. Got it. Understood. Last one from me. It sounds like, Adam, you alluded to maybe some new upstream projects in the pipeline. In the past, you've 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?

Yeah. No. We, we will, we will have some new RNG project growth in 2026. Really, you know, what we've, what we've been telling folks is that, you know, we're flexible in our thinking and we're seeing a large opportunity in our downstream Fuel Station Services segment. You know, we're gonna be disciplined in our capital allocation. You know, we're not gonna give a specific target for how many new RNG projects from an MMBtu basis, but you should expect growth on both sides of our, you know, both sides of our business.

Great. Thanks so much.

Next question. Our next question comes from Richard DeDios of UBS. Your line is open.

Hi. Thanks for taking our question. You guys 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're thinking about capital allocation, like what you're seeing in the M&A market and how it competes with potential projects? Thank you.

Yeah. This is Adam again here. You know, it's pretty interesting. This quarter we saw the first transaction in our sector in quite some time with, you know, Ameresco's transaction with HASI. You know, I'm 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. You know, we think it's an interesting sector with a lot of opportunities on the M&A side, particularly as a lot of RNG developers may be struggling with executing on their pipeline.

You know, we're always, you know, evaluating and looking at other opportunities, and, do think our vertical integration puts us in a pretty unique position, you know, on that upstream M&A side of things.

Yeah. Can I take a sort of follow-up to that? There are two things that we will want to highlight. We are also continuing to invest in our existing operating asset base and operating platform to continue to improve the production as well as the whole results. The second thing that I wanna highlight is we are very disciplined in when it comes to capital allocation. We do have dry powder. Some of that amount is committed. Not committed, I think, we are going to invest in our existing construction projects. On top of that, whatever is left, we are going to look at our opportunities in both RNG projects as well as the downstream dispensing station platforms.

We will look at where we should invest to think about portfolio stability over the long term, and diversify, having too much exposure in one area versus other. Yes, we do have cash that we have place to put in. We want to make sure that we are being disciplined in capital allocation.

Thanks for the color on that. Switching to the operational side point of view, 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 learnings from your existing facilities, and how are those learnings being implemented for the development and execution of future projects?

Well, you know, we now have 10 landfill gas RNG projects, as we've grown quite a bit over the last several years and put more into operation, we really take lessons across the fleet in terms of what works at various projects and bringing that across to our other comparable projects. In addition, we've mentioned in the past how we've upgraded the 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're making are in the well field itself, putting in technology that helps to improve gas collection and both gas quality and gas quantity, you know, can be improved through that effort.

That will also serve to improve the availability of projects. You know, in summary, what you're seeing is better people, better efficiencies and availabilities and better gas collection, I think, in summary.

Yeah. Just to finish off on John's thought, like we believe that's gonna show up both in terms of our inlet design capacity utilization and our utilization of inlet gas. It really goes all the way from the well field to operational availability and uptime to de-bottlenecking. You know, we've really, you know, it's leveraging where you're benchmarking your best facilities and bringing those best practices across the fleet.

Thank you. I'll turn it back.

Thank you. I'm showing no further questions at this time. I'd like to turn it back to Adam Comora for closing remarks.

Thank you all for your interest in OPAL Fuels and joining us today, and we look forward to chatting with you again soon.

This concludes today's conference call. Thank you for participating, and you may now disconnect.

Good day. And thank you for standing by. Welcome to the OPAL Fuels Inc. Fourth Quarter and Full Year 2025 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 star 11 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 11 again. Please be advised that today’s conference is being recorded. I would now like to turn the conference over to your speaker for today, Todd M. Firestone, Vice President, Investor Relations. Please go ahead.

Thank you, and good morning, everyone. Welcome to the OPAL Fuels Inc. Fourth Quarter and Full Year 2025 Earnings Conference Call. With me today are our Co-CEOs, Adam J. Comora and Jonathan Gilbert Maurer, as well as Kazi Kamrul Hasan, OPAL Fuels Inc.’s Chief Financial Officer. OPAL Fuels Inc. released financial and operating results for the fourth quarter and full year 2025 this morning, and those results are available on the Investor Relations section of our website at investors.opalfuels.com. The presentation and access to the webcast for this call are also available on the 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 and 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 risk 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 measures are 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 then give a commercial and 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.

Good morning, everyone, and thank you for participating in OPAL Fuels Inc.’s Fourth Quarter and Full Year 2025 Earnings Call. We are pleased to be here today and look forward to discussing our 2025 results, our outlook and plans for 2026, and the current macro and regulatory environment. Starting with full-year and fourth-quarter results, we are pleased the year ended strongly and adjusted EBITDA finished at $90.2 million, within our guidance. On the surface, 2025 adjusted EBITDA was a flat year versus 2024; however, production grew 28%, which was masked in our financial results by several factors, including 22% lower RIN prices. Despite the macro headwinds faced by our Fuel Station Services segment throughout 2025, we are pleased we achieved strong growth in the segment. I will offer some high-level thoughts here at the top of the call regarding outlook for 2026, and Kazi will share more details later. For RNG production outlook in 2026, we continue to be encouraged by our improved operations team, new opportunities to improve gas collection, and greater efficiencies at our plants, all driving incremental production growth from our existing assets. For our Fuel Station Services segment, we are beginning to see improving macro conditions and other factors that could make 2026 an inflection point for new fleet adoption of CNG and RNG in heavy-duty trucking. It is important to note that these business development activities would not necessarily have a direct benefit to 2026 financial results. It typically takes us about a year to build a fueling station and begin selling fuel. So for 2026, this segment will still be feeling the effects of the sluggish 2025 business development activity, but we are hopeful new fleet deployments will begin setting the segment up for stronger growth in 2027 and beyond. I do want to comment on some policy developments as well. As many of you likely saw, on February 25, the EPA sent to OMB the final SET rule with updated 2026 and 2027 RVO targets. The rule is expected to be released shortly. Although we have seen strengthening bipartisan support of RNG, with proactive, positive tax policy from the Republican-led House and Senate—specifically, the extension of the 45Z tax credit through 2029—in our view, the cellulosic category within the RFS has not been as much a focus for policymakers as liquid agricultural biofuels. That being said, we do believe the recent relative stability in the D3 RIN market will continue and could have an upward bias with the broader biofuels complex. I also want to comment on our new $180 million preferred stock facility provided by Fortistar. The additional capital from this facility can be targeted for incremental infrastructure investments across the RNG value chain. Our vertically integrated business model—from producing RNG to providing access to transportation fuel offtake for CNG and RNG—drives advantaged project returns relative to market peers and helps unlock the value of OPAL Fuels Inc.’s project opportunities. In closing, I would remind listeners, since going public nearly four years ago, our compounded annual growth rate for RNG production and adjusted EBITDA is 32% and 22%, respectively. We are excited about where OPAL Fuels Inc. is positioned. Our integrated model is resilient, and our results demonstrate the value of controlling the product we sell from production through dispensing to our customers. I will now turn the call over to Jonathan.

Thank you, Adam, and good morning, everyone. 2025 and early 2026 were important periods for OPAL Fuels Inc. from an operational standpoint as well as in strengthening our capital structure and positioning the company for the next phase of growth. Recently, we successfully completed a $180 million Series A preferred facility, which allowed us to fully repay an existing $100 million preferred investment and further strengthen the company’s liquidity position. In addition, we drew approximately $128 million under our senior secured credit facility, which provides improved visibility to execute on our project portfolio. On the upstream side, our focus remains on improving performance across our existing operating assets while advancing the next wave of RNG projects currently in construction and development. Production from facilities commissioned late in 2024 significantly increased during 2025 and sets up a stronger 2026 operating position when compared to this time last year. I want to highlight that our upgraded operating teams have done well in bringing efficiencies to drive higher production. Despite an extraordinarily cold winter resulting in difficult operating conditions, same-facility sales growth has been meaningful, and we expect this trend to continue. Also contributing to our 2026 production growth is a full year of operations at our Atlantic facility, which came online in late 2025 and is performing well, ramping quicker compared with recent project experience, driven by higher gas flows at the landfill, allowing us to operate at higher production levels entering 2026. Looking ahead, we continue to progress our projects in construction, as we expect them to contribute to the next phase of growth for the company. On the downstream side, we continue to expand our Fuel Station Services platform, which supports RNG and CNG fueling infrastructure for heavy-duty trucking fleets. At year-end, we have grown to 61 OPAL Fuels Inc.-owned stations. While the trucking and logistics sector experienced macro softness during 2025, market fundamentals stabilized and have improved entering 2026. These improving macro fundamentals are supporting a reengagement by fleets on their deferred truck purchases. OPAL Fuels Inc. believes CNG and RNG are garnering more attention as a replacement for diesel due to lower and more stable fuel costs, regulatory clarity regarding combustion engines, and long-term tailwinds from sustainability initiatives. Many fleet operators remain highly focused on fuel cost stability and carbon reduction, and RNG and CNG continue to be among the most practical solutions for large-scale heavy-duty fleet decarbonization. As a reminder, CNG and RNG are fueling only 2% of the heavy-duty trucking market and represent a large growth opportunity. Our downstream platform provides critical services and infrastructure for the fleets as they transition. Expanding this infrastructure also supports the long-term economics of our RNG production platform by providing direct access to transportation fuel markets. While large-scale deployments will take time to fully translate into financial results, the work we are doing today is positioning OPAL Fuels Inc. for meaningful growth in this segment over the coming years. We continue allocating capital to the Fuel Station Services segment, positioning OPAL Fuels Inc. to deliver on our 2026 operating plan and beyond. I will now turn the call over to Kazi to discuss the quarter’s financial performance. Kazi?

Thank you, Jonathan, and good morning to everyone joining today’s call. This quarter showed continued operational progress across the platform. This morning, we issued our earnings press release, posted an updated investor presentation on our website, and filed our Form 10-Ks. Before walking through the details, I would frame our financial performance around three key points. First, the resilience of our earnings despite commodity headwinds in 2025. Second, continued operational growth across both our RNG and Fuel Station Services platforms. And third, the strengthening of our liquidity and capital position to support disciplined growth in 2026 and beyond. Our 2025 results demonstrate the strength of our platform. In the fourth quarter, revenue was $99.8 million and adjusted EBITDA was $34.2 million, compared with $80.0 million and $22.6 million in the same period last year, driven primarily by increased production and recognition of 45Z tax credits. For the full year, OPAL Fuels Inc. generated adjusted EBITDA of $90.2 million, essentially flat year over year despite declining environmental credit prices. D3 RIN pricing declined roughly $0.70—equivalent to approximately $33 million in adjusted EBITDA—with our realized RIN price averaging $2.45 in 2025 compared to $3.13 in 2024. This decline offset much of our operational progress achieved during the year. I would also remind listeners that the ISCC pathway, which expired in November 2024, contributed in excess of $10 million to adjusted EBITDA in 2024. Operational growth across the platform helped offset these headwinds. RNG production reached 4.9 million MMBtu in 2025, representing 28% growth year over year, with fourth-quarter production exceeding 1.3 million MMBtu, up approximately 24% from 2024. As recently commissioned facilities moved through their first full year of operation—including a full year of Atlantic in 2026—we began to see the benefits of scale and EBITDA flow-through embedded in the platform. Our Fuel Station Services segment continues to strengthen the stability of our earnings mix. In 2025, segment EBITDA increased to $46.7 million from $38.4 million in 2024, 22% higher than 2024. Although this segment exhibited strong growth in 2025, it was below our guidance, primarily due to deferred investment decisions by our fleet partners regarding new stations and new truck purchases. This quarter’s results also reflect the restatement of our G&A presentation, where facility-specific G&A is now allocated to operating segments rather than corporate. We restated 2024 for comparability and will apply this approach going forward, as we believe it better reflects segment economics. Turning to liquidity and capital deployment, we ended the year with $184 million of total liquidity, including approximately $30 million of cash and short-term investments, $138 million of undrawn capacity under our term facility, and $16 million of revolver availability. Capital expenditures and investments in joint venture projects for the quarter were approximately $16 million, primarily related to new RNG facilities and OPAL Fuels Inc.-owned fueling stations, and $90 million for full-year 2025. In 2025, we monetized approximately $43 million of investment tax credits. Our current liquidity is further bolstered by the recent closing of the $180 million Series A preferred facility, operating cash flow, and drawdown of the remaining $128 million of availability under our term loan facility. Looking ahead, we are providing 2026 adjusted EBITDA guidance of $95 million to $110 million, representing approximately 14% growth at the midpoint compared to 2025. We expect RNG production between 5.4 million and 5.8 million MMBtu, representing more than 14% growth versus 2025, driven primarily by improved performance from our existing asset base, continued ramp of recently commissioned projects, and marginal contributions from projects entering service during 2026. Our guidance also considers what has been a challenging winter to start 2026. Additionally, we are assuming approximately $15 million to $20 million of 45Z credits during the year. Stepping back, our financial strategy remains clear. We are focused on growing operating and free cash flow and allocating capital within the capacity of our operating cash flow, balance sheet strength, and access to capital markets. OPAL Fuels Inc. is generating an increasingly balanced and durable earnings base, with the flexibility to accelerate growth where returns justify it. With that, I will turn the call back over to Jonathan for closing remarks. Jonathan?

In closing, we remain well positioned for continued disciplined execution of our strategic growth objectives and the expansion of OPAL Fuels Inc.’s vertically integrated platform. I will now turn the call over to the operator for Q&A. Thank you all for your interest in OPAL Fuels Inc.

Thank you. As a reminder, if you would like to ask a question, please press 11 on your telephone. You will hear that automated message advising your hand is raised. We also ask that you please wait for your name and company to be announced before proceeding with your question. Our first question for today will be coming from the line of Derrick Whitfield of Texas Capital. Your line is open.

Good morning, all, and congrats on a strong year-end update.

Thanks, Derrick. Thanks, Derrick. Good morning.

Starting with liquidity and your growth outlook on slide six. With the preferred financing behind you, could you speak to what the next phase of growth looks like for OPAL Fuels Inc. beyond the projects that are currently in your development queue? And if you could also just comment on how much CapEx is required to bring those projects in your development queue online.

Yes, thanks, Derrick. This is Adam here. I will maybe start, and then if Kazi or Jonathan want to fill in. I think most, or hopefully most, saw that we updated our liquidity position on March 10 and currently have about $160 million of liquidity available to complete the projects that we had noted that are in construction. It is about 2.8 million MMBtu of in-construction projects, and some Fuel Station Services fueling stations as well. In addition to that liquidity position to complete what we have announced, we have also got $60 million unused drawn capacity on the preferred facility, plus operating cash flows that continue to grow and are also available for new capital deployment. We have a number of robust project opportunities between new biogas rights, conversion projects on our renewable power, and what we are really getting excited about is allocating more capital to the Fuel Station Services business. If you just look at what is in construction today and what that could contribute to EBITDA and cash flow, we always talk about rough guidance of $20 per MMBtu of EBITDA and cash flow from RNG production. If you do the math on what we have in construction and earmarked with that $160 million of liquidity that is available today, based on how these things come out of the gates, that could be another 2.0 million of production in the early days of production. We think we are in a really good spot to grow our EBITDA and operating cash flow from what we have announced so far. We have a number of projects on the upstream side that we think are really good candidates to deploy and invest capital. We are always going to be mindful of our balance sheet and making sure that our liquidity and leverage ratios stay lockstep with the cash flow generation of the business. You should expect us to talk about some new projects on the RNG production side, and we are really hopeful and optimistic that a larger part of our capital will be getting deployed into fuel stations. I know there will be some questions later on fleet conversions and what our outlook is there. You should think about OPAL Fuels Inc. as a growth company. If you look at our four-year track record, we think we have the capital in place and operating cash flow to continue to grow in those sorts of fashions as you look at us over the next several years.

Great. And then maybe perhaps for Jonathan. You have accomplished a nice increase in your inlet utilization levels in 4Q. Could you speak to some of the drivers and also highlight where you expect utilization levels to level out based on some of the capture opportunities Adam referenced in his prepared remarks.

Sure, and thanks for the question. We are really proud of the team that we have been building on the operations side. We have been growing our capabilities both on the upstream and downstream side, and I think this is reflected over the course of the year in terms of the operations of these projects, which we measure through the efficiency and availability of the projects, which has increased over the course of 2025 from the roughly 70% level closer to the 80% level now that we are seeing. So really strong kudos to the team for doing that. In terms of where we are headed with it and what the possibilities are, you really see the opportunity for continued improvement there, and we think about kind of an 85% to 86% utilization level as something that ought to be readily achievable. In certain instances, we are able to keep that as well. You combine that utilization with our open and growing landfills that our projects are located on, as well as the headroom for additional capacity—the projects are larger than the amount of gas coming out. As a result, we see growth not only from operating the projects better but also from the growth in the gas. That gives us a lot of optimism in 2026. You have hit on a focus of ours this year. We are going to be very focused on growing that utilization, growing the gas, and resulting in better output per project—for each of the projects and for the whole portfolio in total. We are looking forward to that. Thanks.

That is great, guys. Sounds like it is very capital-efficient growth for you in 2026.

Thank you. One moment for the next question. Our next question is coming from the line of Matthew Blair of TPH. Your line is open.

Thank you, and good morning, everyone. Maybe just to stack on to the last question, are there any specific examples of things that you are changing going forward to help improve operations, and are there any specific assets where you are really looking to improve the overall utilization? And then also, I think there was a comment that most of the growth is coming from the existing asset base, but just want to check, are Cottonwood and Burlington still expected to start up in 2026? I guess the idea would be that due to the ramp process that probably would not help out too much on 2026; that would really help out more in later years. Is that the right way to think about it? Thank you.

Yep. Thank you very much. First off, most of the growth in output that we are looking forward to this year is coming from the same-store sales. We have really incorporated very little from those projects into our guidance. While we do continue to focus on those projects in construction and bringing them online, as I said, I think our focus really is on operating efficiencies and availabilities for our existing projects. In terms of some specific examples, some of our projects, for example, have no nitrogen rejection units associated with them. In projects like that, we are focused on tuning gas to a higher quality—higher methane and lower amounts of nitrogen and oxygen. For other ones with nitrogen rejection, we are focused on increasing the amounts of the gas there. In terms of the teams themselves, we are really focused on training across the platform in each of the units. These are process-driven projects, and the processes require a balance across the quality of the gas, the quantity of the gas, the membrane CO2 rejection, the nitrogen rejection, PSAs, etc. Balancing that has been a bit of a learning process for the team over the last couple of years. That is why we are seeing the continued improvement there. Other projects that are closer to, or at, their nameplate capacity, in terms of gas, we are focused on improving the quality of the inlet gas so that for every unit of gas that comes in, if you have more methane in that unit of gas, then you will have greater output. We are focused on those aspects as well, and we just see that focus continuing during the course of the year with our output increasing.

I would just add there, this is Adam. There are no significant delays in either of those two projects. We just think it is best to be conservative in terms of the exact timing and the exact ramp. So we have focused our guidance around just improving the operations at the existing facilities.

Okay. Sounds good. Thanks for the color. And then could you talk about the relationship going forward with NextEra? They called the preferred, but I think they also have an equity ownership in OPAL Fuels Inc. and then a fairly extensive commercial relationship with you. Is anything changing on those fronts?

I will take that one. NextEra has been a terrific partner of ours for a long period of time, and we do still work with them quite closely on that environmental credit trading agreement that you referenced. They still are 50% owners in our Noble and Pine Bend projects. We continue to work with NextEra, continue to view them as a good partner. We advocate side by side with them on a lot of key issues and do not see anything really materially changing from that perspective at this point.

Sounds good. Thank you.

Thank you. One moment for the next question. Our next question will be coming from the line of Ryan James Pfingst of B. Riley Securities. Your line is open.

Just curious about a KPI you have referenced in the past. Do you have a goal for how much MMBtu capacity you would like to place into construction in 2026?

This is Adam here, and I appreciate the question. We do see a significant, strong pipeline of new project opportunities to place into construction, both from new greenfield biogas rights that we have secured and also renewable power conversion projects, which we have a few sizable ones in our portfolio. As I was trying to reference in an earlier question, we also see other opportunities in our Fuel Station Services segment to invest in fuel stations. We also see opportunistic M&A opportunities, and we will continue to invest capital in our business, being mindful of our balance sheet strength and liquidity. We feel that as we are allocating capital across those different segments, different opportunities may not be all on the production side. They may be in these other areas of our business, which, by the way, there are so many reasons why we like the Fuel Station Services segment—diversity of earnings stream, open-ended growth opportunity where we think diesel-to-CNG could be a really interesting, large growth potential, and a little diversity away from some of the regulatory policy out there. We do not think it is wise just to talk about one segment for where we are investing capital. We do expect to put more RNG projects into construction. We have a large RNG production growth profile just from what we have announced already. That is how we are thinking about it, but you should expect us to continue to invest in production assets.

Appreciate that color. And it leads up to my follow-up, which is around CapEx, and that number for 2026 looks like $154 million this year. Curious if you could give us a sense of the breakdown between RNG projects and fuel stations there.

Let me give you a bit of a carryover from what Adam just mentioned. The $154 million primarily includes most of the committed construction projects we have and a little bit of committed downstream dispensing station investments as well. So the lion’s share is production, and a smaller part is dispensing stations. I want to reiterate that, as you have heard from Adam, we would prefer not to provide guidance specifically around where we are going to make the most of our investments. Every investment will be competing for the dollar that is available from our capital, operating cash flow, and the future capital availability from the capital markets. We are going to be a little bit more judicious, so that is where I am going to end it.

Thank you. One moment for the next question, please. The next question will be coming from the line of Adam Samuel Bubes of Goldman Sachs. Your line is open.

Hi. Good morning. It sounds like you are seeing some green shoots in Fuel Station Services, but as you alluded to, because of the lag, it is maybe a 2027 story. What level of growth are you embedding in guidance for Fuel Station Services in 2026? And is low 20s the right way to think about margins in that segment on a sustained basis, or are there any levers for margin expansion?

Adam, this is Adam here. A couple of things. Yes, you are correct; there is always, just like on our RNG project investments that take 18 months or so on average, when you invest the capital and when you start recognizing revenues, EBITDA, and cash flow. Fuel Station Services has a slightly shorter cycle when we invest in new fuel stations, but we really think of 2026 as the business development activity that sets the stage for future growth. So in 2026, we are not anticipating the same levels of growth in Fuel Station Services that we have experienced after the next several, but we are really excited about some of those green shoots. We can go into what those macros are, where we see them alleviating, and some interesting market structure dynamics that we think we are breaking through there. As for margin expansion, from a margin perspective, it is a higher-margin business when we own fuel stations and dispense RNG at those stations versus typical construction and service margins. We do anticipate, as we own more fueling stations, that the margins will naturally move higher in that segment, and that is where we see a lot more of the growth coming.

When we do the Fuel Station Services capital investments, we definitely rely on a base level of dispensing volume, but in more cases than not, we see embedded growth in fuel dispensing—similar to the growth we have in production on the upstream side. We also see the throughput going through these stations in the downstream side as well. There are similar types of growth embedded there, and we do expect that to be realized.

You should also understand that there is certain inter-segment tightening in the dispensing market, which also assists in margins on the Fuel Station Services side.

And then maybe as the natural follow-up there, based on your conversations with customers and what you are seeing in the macro environment, what is giving you that underlying confidence and visibility for a potential inflection in 2027 and the potential rise in natural gas vehicle adoption?

I appreciate that question. It is something that I think about quite a bit as I look both to the U.S. market and what is happening overseas in places like China, which, by the way, I think is deploying about 30,000 natural gas engines, the X15, each year. China is on a path to have its heavy-duty trucking move up to 20% to 25% of its fuel mix. We have not gotten there yet in the U.S. We are at about 2%, which is really interesting when you think about it, given the position the U.S. has in natural gas as a commodity and the low cost and stable nature of that versus diesel and oil. Specifically in 2025, there were macro headwinds that were affecting some of our largest customers in the logistics and trucking space—tariffs, a continued freight recession, some overhang on combustion engines, and initial testing of the X15-liter engine. All of those factors delayed some investment decisions, either around deferred new truck purchases or new station purchases. As we are now moving into 2026, a lot of those fleets have started acclimating to the macro environment and started thinking about new truck purchases and reengaging. You have now moved through the X15 testing phase, so fleets are more comfortable with the technology and the performance. The volatility and absolute price that folks are starting to see in diesel and oil are really making natural gas a lot more attractive, and then you layer in the fact that it also assists those that are thinking about their sustainability metrics or emissions profiles. It is really setting up for what we think are investment decisions here in 2026 around this technology. CNG and RNG have proven themselves as something that works for fleets. Those are some of the things that have either alleviated or are new potential positive macros with what we have seen with diesel and oil prices. One thing that is interesting about the U.S. versus China is the market structure. Here in the U.S., you still have to work through not only the engine price, the OEMs, and the dealerships in order to get that product to market. We are encouraged that a lot of those things are starting to break through. One other interesting one here in the U.S. I will touch on is fuel surcharges, where the economics look good on paper, and then fleets have to think about how to deal with fuel surcharges and make sure that it does not disrupt how they are doing business. We are seeing movement across that whole spectrum of either macros or market structure here, and we are cautiously optimistic that the business development activity will accelerate in 2026 and then really provide some visibility into 2027 and beyond.

Very interesting. Thanks so much.

Thank you. If you would like to ask a question, please press 11 on your telephone. One moment for the next question. Our next question is coming from the line of Betty Zhang of Scotiabank. Your line is open.

Thanks. Good morning. Thanks for taking my question. In your opening remarks, you mentioned the RFS. I just wanted to get your take on the cellulosic side. Do you expect any impacts on D3 RINs, and what are your expectations there?

I appreciate that question. This is Adam again. As we had noted and people probably saw, the EPA did send their final rule over on 2026–2027 to OMB, and we hope that recent geopolitical events do not slow down the process, as we have seen a little bit of an oil price shock and that sort of thing. We hope that the EPA still sticks to ordinary course of business timing and it gets released pretty soon. What I would say about the cellulosic category is we feel really good about the bipartisan support that we have in Congress as it pertains to tax policy and how they view RNG in the spectrum of smart or pragmatic policy on where folks should invest. I would say it still feels like the cellulosic category is not getting the same level of attention as liquid agricultural biofuels, where it seems apparent there is clear focus to support those areas and really lean in. From the cellulosic category, it is not a lean-out; it is not a lean-in; it is business as usual. I do not think we are really expecting any real surprises there, and we think the cellulosic category remains stable. As I said in the prepared remarks, there could be an upward bias in the cellulosic category with the entire biofuels complex. It just does not feel like it is the area of focus, and there are other areas where the EPA may be trying to emphasize.

Great. Appreciate the detailed answer. For my follow-up, I wanted to ask on 2026 EBITDA guidance. Would you be able to share a bit more color between your different segments?

I am going to pass it over to Kazi in a moment here. We are not giving specific segment guidance because that will also be driven by where we invest capital and that sort of thing. One thing I do want to caution folks about is the challenging operating environment that we have experienced so far in the first quarter. I know there is another wave of storms that is rolling through right now. It was factored into our guidance, but there was a challenging start to the year with the snowstorms, which impact production a little bit and impact operating costs a little bit. We do not give specific quarterly guidance; I just wanted to caution folks on the first quarter. I will pass it over to Kazi.

Thanks, Adam. This is a great question. As Adam noted, we have had a hard winter. Obviously, it is going to have an impact on our upstream production and likely on how much we are dispensing through our dispensing network, too. For the year, think about the growth we have seen on upstream production—similar type of growth we can expect. Downstream, 2026, as Adam mentioned, is going to be a more pivoting year. Most likely, the growth would be more around 2027 or onwards. I will stay away from giving you specific guidance, but you can look at our existing breakdown; that should give you an understanding of what we are adding.

Thank you. I am not showing any more questions in the queue. I would like to turn the call back over to Adam J. Comora for closing remarks. Please go ahead.

We appreciate everybody logging in today for their interest in OPAL Fuels Inc., and we look forward to sharing more updates in the future.

This does conclude today’s programming. Thank you all for joining. You may now disconnect.