OPAL Fuels Q2 Earnings Call Highlights

• 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.

“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.

Financial Results and Liquidity

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.

Hasan said the company expects G 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.

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.

Production Improvement Efforts

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.

Project Pipeline and Growth Plans

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.

Guidance, RINs and Policy

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, 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.

About OPAL Fuels (NASDAQ:OPAL)

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.

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