OPAL Fuels (OPAL) 14 Nov 232023 Q3 Earnings call transcript

Good morning, and welcome to the OPAL Fuels Third Quarter 2023 Earnings Call and Webcast. [Operator Instructions] As a reminder, today's conference call is being recorded.I would now like to turn the call over to Todd Firestone, Vice President of Investor Relations.

Thank you, and good morning, everyone. Welcome to the OPAL Fuels third quarter 2023 earnings conference call. With me today are Co-CEOs, Adam Comora and Jonathan Maurer; Ann Anthony and Scott Contino, who will serve as OPAL's Interim Chief Financial Officer. our and afternoon, for available and Investor section financial of third on released Relations yesterday opalfuels.com. XXXX those of Fuels operating the results quarter the OPAL at website results are presentation available our also access call on the for website. webcast The this and are to assumptions. After completion contain including remarks, and will risks, answers your questions, a call, statements, be days.Before which XX uncertainties our for of you I'd begin, that today's forward-looking involve we like replay available to remind to

of Forward-looking guarantee what results contained obligation factors and undertake the statements this a disclosed could does not of circumstances update X events call. X differ contribute in to Fuels Several on call views actual are performance and are presentation.These our statements and date reflect OPAL any forward-looking statements or not of of statements. such this after cause our or to materially forward-looking is that differences Slide date to reflect the from could such as of

update, Additionally, results, by which overview providing development will of release strategic begin today's Scott will call and results. of non-GAAP the appendix included recent the the A the and measures. will financial presentation.Adam measures the the updates used operational of definition reconciliations discussion this John after an commercial in will certain business a and contain quarter's measures GAAP priorities. measures of to highlights of review nearest and is our on then give call and these non-GAAP a

Comora, for Fuels. Co-CEO call then turn to the Adam the call will I'll OPAL now open We questions.And of over

being business years public abilities while the I has initiatives. of Scott until worked that her and We like XX permanent instrumental for he as her like the capital third of in XXXX Good intimate to thank his Scott who CFO to and developments. has has morning, helping people. stand the also earnings for CFO. companies confident of everyone, was in call.First, We XXXX serve endeavors.Moving over of our to want service. several for here in this Anthony up the feel an and OPAL Ann for and Fuel's also knowledge her and we with continue spring search. our would period. wish Todd. on, quarter Interim raising future well all will quarter's OPAL take Fortistar CFO Thank introduce recent Ann OPAL highlight in Contino Scott I our and for thank you, been points with from results OPAL was I'd to you

our $XXX a in next our in which and we growth phase venture recently our sheet First, facilities. clear joint streamlines operate construction facility with execution provides a and on Industries September, to closed funding construct pathway simplifies balance we of South announced credit and plan.Second, on a the for million projects and RNG Jersey

started We in the facility Harbor project, RNG Atlantic Township, the have on New Jersey. first construction Egg

something business one of a to is million based of additional of growth in to We GFL gas trends Michigan. online that project Cummins additional it inventory the projects facility is and our range. of enhanced per held design a look grow Emerald pending support begin RNG for encouraged largest a back through XX share reflect organic rule we aid shortly.Third, updated significant of We a selling by over now deliveries spend potential business mid-XXXX. their major our power operating period turn production we our this business, expand now the will at seeing adjusted as investors are XXXX environmental We there registration. This about hearing. and seeing table with to to we Jon? Station is additional that June, now will the positive RIN now environmental MMBtu EBITDA prices Jon. the Services generating and green now from natural disclosures to from corresponding capacity new production recognize the of period. on years Jon new and are capacity $X.XX on hope commence and very under OEMs regarding the JV potential later also and have are clarity capacity credits environmental the are dynamics the adjusted RNG are provide XXXX.Finally, which the will continued supply-demand in that, here set growth adjusted to in into Revenue, EPA pending on longer long-term the JV period engine. in expect on produce shoots and and are think at Services and business.For to OPAL anticipate starting is of X.X income the credits monetization, the gallon we Liter the it this ramp pathway post continue These in gas, XXXX orders our The near metrics. its we strengthen period. production but we facilities.With over its RNG will monetization presented and elaborate sale earnings in credits in America, Fuel with disclosures operations about commercial activity the with includes thinking unsold XX% Station detail our trading value RNG at RNG we received lot in feedback disclosures projects on the EBITDA, cost the which pending in through constructive table, should RNG December.Fourth, period. and discussing we to I'll we no the has production. prices end will get providing to metrics, same SEC, substantially reporting side will call fleets disclosures based in next just including we starting for to the We time the of also several stored downstream are up that prices excited them just and separate year the of North RINs for separating credits of EBITDA in the the several numerous after transferred be net in of brought volume beyond.We highlight OPAL's and what sold We end the regarding take of RNG half certification, we in testing with Fuel and want our matching

Thank with morning, this quarter. our Adam, everyone. good you, and We're pleased accomplishments

largest our tripling for over the we capacity same million ended production online X from now September more years.Third production XX, facilities XXXX, its Importantly, than the annual continues months of period with put increase capacity U.S. one We MMBtu, of X.X X/X operation of aligned quarter million as project X Emerald the a kind past in X.X an to RNG MMBtus design projects have the year. be RNG RNG the X with was in expectations. last the

design construction, in MMBtu our operating RNG we capacity. of currently an projects projects, to addition X.X additional representing X have In million

capacity will Atlantic, venture This of first mentioned, contribute annual our million design to SJI we MMBtu net RNG our As added X.X to joint project, Adam OPAL. project in-construction portfolio.

commercial to mid-XXXX.Moving operations advanced to Atlantic in expect We on development commence our pipeline.

We progress. identified of have We X.X continue development million advanced to our now biogas make MMBtu pipeline. in

million X.X we projects Together, development We represent in in operating RNG pipeline, development.This projects. design construction continue target output and how have placing renewable power XXXX. of on million MMBtu quarter, providing our capacity in and XX.X MMBtus to our of we design of operations, X million advanced construction construction capacity. additional and annual we're at Adding detail projects the into MMBtu our production measure advanced

amount capacity often which discussed our to biogas facilities have of designed are the design process. the of these We facilities, annual represents

growth We metric the fluctuations begin facilities utilization unplanned per at plant should are XX% measures relatively improvements in simply the the as facility of which quality make the growth the are the RNG these with adding relevant on into metrics of and utilization design new of as can increasing our gas, compared and capacity of Inlet efficiency range volume volume generally the period given all be the in by of RNG at now and available This downtime capacity rates methane It's We inlet the production XX% of between well some continue that details gas gas. inlet our capacity to seen address we at think collection a percentage and organic to somewhere converting how end construction gas want clear shift in and the facilities in RNG sales potential year quantity collection our statistics we've the open measures capacity past. inlet these and coming gas or facilities.I facilities by gas are and design should end aided utilization fields.Second, investors management. the of facilities of metrics, divided XX% well stable inlet and the as at also planned of now product to expect inlet wellfield we system, of the content, the same-store both design up of We regarding and design actual for gas. gas i.e., growing into sense our RNG. capacity utilization period gears inlet capacity in expect X with design the utilization the of be of delays of and the to period. give based XX% inlet landfills design utilization productive

a projects, has that particular, We were certainty. permits. our pleased increased level completion received major the these as the we've permits which X outside obtained major air for timing elements of have construction the of report In associated result, of both projects Sapphire Polk and are control. with the we to an And

track and on to also are projects say the the our a next continues the we QX to operations results perhaps words to the I And work we reach say operations, opportunity a few XXXX Ann? was before over Interim to you Scott with. commercial pass QX respectively. want to call these as thank result, QX previously Ann Contino. a to reported.Before William CFO, Ann. on She pleasure track commercial Prince move year in in be to now financial to for on As quarter, take can

a on a get I from chance a very again and we'll you I wish time. all cheer luck, of to work hope the to short continue very at of soon. that of I best Jon worked you, and a I And externally. transformation to with, and OPAL in thank such minute everyone a within been such Thank and I experience take it's both an to wanted exciting morning, rewarding good to Adam, very period everyone. see everyone you OPAL sidelines. with have

Great. And Ann. Thanks it results. to more detail a give to I'll turn the with Scott little again, on that, financial over

Thank release, you, all our the Jon, for and filed press call. our quarterly XXXX. today's we participants which details good the night, results morning ending on XX, period September to Last earnings

RINs quarter to million average driver X.X sale The as was was X revenues realized price second was increased period was quarter later third Net largely compared in the RNG for the MMBtus utilization of a as year.Revenue a X.X of at the monetization Our MMBtus. quarter increase partial XXXX to the sale and utilization XX, XXXX, million filed selling to the last as XX-Q production the the million biggest production $XX of for $X.XX month the was will compared the RINs in inlet quarter with in delay the design million million DX second at and X.X compared $XX from along ended gas capacity MMBtus the of the today. second compared to quarter. main million RNG to driver of increased depressed income of environmental third price to $XXX.X due higher be start-up million for compared quarter. September a million in inlet third MMBtus months elected to $X.X quarter results an is attribute X.X The comparable Emerald. pricing second of the at of million quarter's we The results to inventory.Looking gallon in X.X where environment.

produce greater quarter's loss. than the million gain the greater quarter's we disclosures, $X sale prior reporting This from on second on pending each deconsolidation, vary to depending net Excluding separately much second and adjusted third EBITDA. contrast driver now $X.X million was net how will one-time quarter the RINs.In quarter ultimately value we sell. the main are of Again, monetization income was RNG

not million facility. from decreased net DX fees, a million on Adam to and mentioned, legal was for other volumes. Station due the Fuel price capitalized.We'll primarily our the of $XX.X $XX.X value and of segment to GAAP RINs monetization costs Services dispensed in investor in for quarter. $XX.X showing reduced a and second The couple approximately drivers negatively such I XX.X the project reconciliation power September, presentation increase updated in to expenses We up Emerald from the provide revolving $XX.X loans is that XXXX value our impacted quarter earnings a quarter will want RIN a the to ramp-up online.As The segment million quarter. third continue LCFS revenues million segment quarter as RNG not $XX credits, million revenues entered over also XX-month This period this release of as and capitalized in Hills' end the A for cetera.Adjusted third in in and revenue quarter. quarter OPAL morning Revenues by was $X.X was project of we credit. the $XX of fees website. of million as $XXX second were RNG quarter. came result excluding the development the a and This credit Renewable But into based et monetization our draw Arbor of performance to year million increased other improving $XXX agreement service term compared first, guidance pending royalties, secured provided results results third quarter shortly. the senior continued discuss of million of for in end credit on an to consideration dispensing of EBITDA million to of pending to increased GGEs primarily the including yesterday impacts sales in margins. quarter, to this mention was financial The trend full million after provides

approximately As of September XX, XXXX, facility. was drawn down million $XXX on the

of XX, availability $XX $XXX and $XXX equivalents was liquidity credit consisting under million, September As cash investments. XXXX, cash, facility of of the short-term million of million and

good prices, in adjusted XXXX million capital from markets.At to our of EBITDA to MMBtus. feel year to $XX we million our advantage current plan and range position to million million result, growth strengthening we a RNG about be guidance execute $XX expect X.X X.X end As our full on the to production take RIN range to

sale $X the adjusted receipt balance RNG of the approximately EBITDA for ITC we've estimated excludes XXXX.As in in represents to to of million project Our of fourth the quarter. million of share guidance with million which anticipated mentioned, includes $XX range. the in adjusted $XX the anticipated the monetization, XX% This $X to proceeds value million ITC our of range proceeds expect be from the pending the EBITDA we Emerald

into levels Emerald shifted that, it XXXX.With back March Jon from our start Our resulted not reduced to sales and expectations facilities. from has William plant remarks. concluding production turn ITC guidance delays production at previously delays both guidance reported also start for some from Prince and Plant operating I'll

the are we in plan. closing, business with continuing the of execution pleased In our success

including for are that, with place we take cost-effective Fuels. over and that build climate integrated Thank aided for reliable We of your continued and multiple displace by industry stakeholders. in Q&A. the in for fuels to facilities deliver fossil to and all have I'll opportunities, We remain to RNG change.And mitigate best-in-class call the RNG these our advantage interest solutions tailwinds, operate to industry-leading, to and you turn OPAL operator the committed value furthering creating OPAL's mission vertically consolidation, capital

with [Operator comes first Whitfield question Instructions] Our Derrick Stifel. from

And Emerald your future to operational Ann, and Congrats on your on with best wishes Atlantic. endeavors. you progress

focus XX? the million QX? to more speak how value bank, manage credit, on I on to drivers, monetization and $XX wanted your broadly, question, the to then, shown is in RIN ramp speak Could For increased to it EBITDA for QX. Slide implied you the your year-to-date, which you of to as project only my plan And in ITC to first RIN specifically

$XX One $XX end guidance Emerald monetization to here. with ITC fourth we the this to the of expect the couple I the proceeds $X a contract proceeds majority $X would is million of million a piece fourth that those from the Derrick, are increase of we continued the EBITDA project. $X which things there RIN. a sale range. in also around Adam from is million in Comora important was for large from remaining that including in is receive on XX% we the Yes. quarter, the other we on there And just of show is, million per sequential the to the caution the referenced sale of generated. proceeds third we've $X note, that is at in XX% XXXX.The there It's forward that to ITC RINs about million RINs that's driving the folks, of quarter, of when the quarter the the

So are the produced selling the are primary the quarter. getting quarter.In in terms the RINs remaining the our of I'm anticipating are that fourth been balance sorry. selling -- throughout fourth those active the of we've and we drivers of -- And

we or as that a having we of normalize In mean going in activity sort the RIN be I think with sort and quarter-to-quarter would basically say And produce trading XXXX's. lot put monetization our forward the on which of think should is expect forward.We And place we RINs would move to seen as normalized holding really forward, RVOs. monetization we I in transact the sales trying some yet not are RINs. of have the the from that volatility on updated terms of the as RIN going RIN of to guidance we behaving would strategy, we think market thoughts this,

or weeks as the continuing pricing it's this start constructive commentary, look and see that months And our RINs. into really the that mentioned And in we supply we expect fundamentals for so. to earnest in and demand We our coming DX good over should expectations XXXX.

agree Thanks Adam. for your detail, the with macro thoughts Certainly side. on added the

I on Morrow transaction. landscape follow-up, to focus RNG recent the for my really competitive For the and wanted

hand, one alone. on highlights projects is Morrow the On and your based in-construction stock undervalued online your

On coin. of the take competitive I'd a your your of hand, for ADP. more sides paints growth the the it on backdrop both love other

Derrick, this is Jon.

that multiple So growth our same in of and lot of of transaction a here opportunities XXx positioning mark re-establish a kind and set about company opportunity that projects we're or without pipeline. have really development X of excited without a certainly million really on the MMBtus we downstream has our advanced the

continues landscape, So competitive industry.When positive being a and constructive look in to be environment the as we of factor. of excellence we terms out really think the differentiating execution the in at really in

facility we so And consolidation, ourselves. we at $XXX million the the troubled and time, credit we're And opportunities. look encouraged are to us little to a actually at other by gives it. continue growth by for liquidity we look opportunities of to same bit not continue have really that The ability

good with the helps little counterparties, development pipeline growing. with of bit. all that I in think and shape really Adam, our is have advanced relationships to we you'd like Our a And that add growth.Maybe,

recent align EPA business product. going years, create couple the the folks belief value sets put quick to highest thinking in fuel a our vertical how the June, these the a really had comes a product. of of together themselves of that are with owners And and X value is integration embarked landfill play which next being about as the on can our feedstock attractive the guidance OPAL of into for Fuels We folks strategy. really stage or to from just Yes, really very lot most for fuel RNG transportation that out this transportation that be there. We follow-ups

and differentiator to impactful that us So also work fact the I for to it built; with where think going as of lot you of to look line on get then us to to metrics and new the in C, efficiently at gives going operates, efficiency new plan thing, to a I really integration to we've operate think somebody going lot continues and confidence grow they're well think also a and in that that's be got partners those a puts that the around and by of projects together, sort new would project vertical disclosures gas wellfield counterparties with to is those them align capital rights. continuing also we're do going that of competing good the OPAL increase a although confidence to to effectively; and gives business.I was is I operating be organically that, B, collection a and work fields. And of our A, lot that work continue project assign the that our also gas say, place putting

stack things really those think well I So Derrick. still for all of up us,

next comes TPH. Blair from with Our question Matthew

million guess, Adam, brings scenario? like that RINs? you think you thoughts supply-demand, numbers, the is credit might, be back it our DX tight EPA on ask will XXXX XXXX. for reduce Do retroactively in a mentioned cellulosic you looks short the there be RIN would XXX what DX appreciated. I happens around Any Can that for EPA the RVO waiver or the possibility I

a able not the to obligation and carry will the good math, XXX or question. year. into million don't of refiners it's following I know their No, if be are forward exact I think although number And your some Yes.

'XX, -- meet those the purchase and part to may the if through parties can how going I So they're we'll going don't additional at any they're take of that do we'll of thinking ways all look wouldn't may alleviate -- shortfalls. to until see think get XXXX. credit how to us some a or at not supply that, for 'XX cap of the and price until of really point, ultimately RVOs. end some short actions try you XXXX's, mechanism actions demand it of we roll fundamentals. production sort EPA But like And see. place toward surprise they It the at I the there's we that short, think lot about see industry figures if really in XXXX's. in is terms if waiver what those and supply and remain ultimate comes don't the the line-up the EPA different a with 'XX.And it's be any of with obligations something. is now, being ends address exist if EPA what into market agree and looks is up mechanism of does and And the market forward does tight

add is Let clearly, trying encourage to growth me just the the in EPA that, cellulosic sector.

So everything Adam just that changes. said by of premature any is I spot on. stance mitigates And kind EPA think the

Yes. Thank Jon, you, that. for highlighting

really I growth EPA the important, push of look their core think and investment. cellulosic support and really RVO, is around tech bring in you that the it's at we standard that tenet they're continuing, the renewable biofuels when to at where and And we'll leave all it's of trying see fuel the they that.

increases future -- expect a of on XXXX RINs to backlog year of And expected Sounds Is LCFS? $XX the a prices for future million kind million to each can a would good. the going why play then typical we you that lag? plan if end timing quarter backlog I similar with just in $XX do so, and And forward? or that ask is

to really costs RINs cost still are Yes, provide guidance, pending a for RINs to just our the to December dispensed we balance the year. give that one ending incur of granularity get then in that value RNG continue both, selling of are the economic based the deposited of that's and I'll a No, in and the January. December which will producing be that you RNG we period produce in in we are we all that question. example we And assuming year which are period to The gets good and sort that that gas you clarity are -- the that. going we monetization. your in incurred matches in snipping disclose where of are activities.And the embedded balance producing, that And current

to we fourth make towards of the a look in in be that in of coming As RIN would project did still we quarter don't we Polk getting similar project quarter certification think line next RINs XXXX, certified if of job can of about a our production we've example And those And monetizing that's terrific and a and provide certified here order those able experience really an fourth couple Emerald your and And reason, you see December. months for we'll got still where to our year. next on it. we are kind of quickly get the whatever in in why outlining detailing RINs, that year, if get cost, timeframe. RINs we dispense

forecasting are So for does XXXX, we and that we RNG cost necessarily -- highlighting produced the that balance year figure based end incurred, of represent not that the going. we are towards our the RIN the was where on pricing see

from Riley. B. Ryan comes Pfingst next question with Our

can as several expectations ITC potential for on talk year about be projects next likely with little line, and busy, you come bit a expected So CapEx to 'XX?

coming that proceeds XXXX within when going could provide we're We'll rational guidance it's ITC do line guidance. on would with projects into say get year our as see to Well, to receiving we expect for days, specific COD, we yet. CapEx that is, not our XX just I What XX you days. be full

hopeful are it's that thing. We documentation smooth establishing a sort that at of point that we are and process our as

XXXX give when our ITC So numbers. we'll also give we some guidance

think question. answered that your I

any or your reduced have you it. faced affect than issues operating operating Got delays might assets. production Yes. But the at the assets those production weather-related facilities? And that stems other noted that project guidance curious, from more then

No.

assets operating our continue So to produce extremely well.

utilization a maintaining prospects for experts good gas into our projects. efficiency and there. get seeing at the We who operate facility that of high gas have really the the built operating We're really team seeing growth and availability and of great efficiency each experts and across numbers great for collection a really degree of projects of that

about But about we're help So excited the anchor continue our is the XXXX the think behind which project that projects, terms for and We're respectively. right line. that on with Prince the for the point look Atlantic and well.I mostly of we're for quarter in-construction with William got really projects, to operating with Sapphire projects on track and projects excited at timing mentioned And that are that our Polk partnership. those the that for fourth and SJI quarter of first now project permits us you aspects. of in about which we coming several major in fact middle project are we certain the the of both the that future about third quarter projects delays,

of the our happy So about projects. really operations

construction, little As and bit timing, these a in projects small go that of there's be tends to through identifiable. variability but

from Our with Martin Malloy & comes next Company. Rice Johnson question

I impact ask out the customers? there engine throughput the based conversations 'XX, the of you're your look to the wanted about and 'XX with stations out having XX on liter and as build Cummins of to you

funded and great. is Yes, of expired think on And this work Cummins' liter earlier, original that didn't little at has I flavor XX -- taken Cummins just want $XX really XX JV rollout a million development all natural of this XX the bit with and I million JV been you Westport. full really was that between support sort and now JV Cummins liter JV and maybe liter that engine $XX it because a all mentioned that Cummins they would And have then Martin, give the strong when XXX% thing. that entire Adam here that they engine. And feedback that after here. first engineering gas that it do has in liter originally technology, introduced, I are this years, diesel where engine, far. line want was so XX effort of as XX level Cummins bore at And was to competed behind engine.Now maybe Cummins aftermarket XX and not to a that liter product that technology a -- quite after has in and got with of going much owns or

but able that zero just said emissions, Where what it's been to also muscle right X, produce I savings $XXX spent so because not engineering enthusiasm XXXX, positive their just have into they've million a these orders for support product.And liter using OEMs, think for taking fleets back I feedback powerful deliveries the to going Scope to and Cape want and RNG the they XX the really about about now, of $XXX all it, temper CNG, here X then start to by got plant zero is they're their has only operational being XXXX. burn retooling and for you Scope half behind some far. to really it the million Town

market which really that terms in development of going a Station next be impact our Station over a of well like is the as looking those Services, -- a at for 'XX, the capability thinking tripling not in X% XXXX on that China XX% numbers their business plant lot and certainly now. how And of implications each could it year, what go but it's folks new right of to reach expect of quite product in So Fuel business see are 'XX XX starts frankly.So lot share to in 'XX Fuel today, material deployed we that and there of our terms could of a to 'XX. that activity numbers getting and there out really really would road manufacturing trucks be be to And to Services 'XX. into kinds the months they've many those doing that the has and hit product got

engines know, they're to think don't China. so in or XX,XXX up I about, I

about works excited right quarter. about Street I we're to it and wants So, how know green now. and calling next Wall shoots it know everybody we're

intact and that one 'XX this be going 'XX look 'XX, sort could of we at it's to as thing. that's be like So something -- looks

my but to for sales going question, statement? just follow-up fuel? question, a to going to into come cost of Is to the a income it how counter the modeling is wanted the And find be the out likely for RNG account ITC

ITC. be net We're receive the into currently when anticipating that brought it income we would

we the haven't yet. transaction -- done completed haven't We

to through but our So still need current that's expectation. on key work accounting the it,

Yes.

that company. are Just come here, these proceeds a into reminder cash the

in quarter. ITC XXZ. at an through to income. is is And think that there flow. ITC go some the about the best recognized current proceeds. thinking folks folks in will are period this we're going now. we here as remind as that the 'XX. it as think that And well, least I we'll XXXX production cash also you to we'll year next it there fourth We're right earnings starting That's that So have would sales have our other going credits stream out have have same also have where 'XX thing And from then tax

a So capital think provided cash business at our last as the about that continuing fund this will XXXX will we terms not in and insignificant of to that flow is to through it's least program program. be

next William question with UBS. Our from Grippin comes

First question.

through what EBITDA impact And Just the not change change accounting the if would been XXXX in RNG XQ for on the walk the you us if pending guide? could have or wondering the monetization?

Yes.

I big EBITDA X. well, X guidance is to would this say, adjusted Adam the -- maybe So here. impacts actually real our

the the and The first RNG and credit the is separating now cost of the incur produce value held-for-sale that for. we

'XX guided the new facilities and our of the for price in of sales majority those dropped had some production our we we that from do price. million obviously has then guidance, the And in 'XX been that that monetizing out ITC our now then in slipped we that's those the originally in versus 'XX. which 'XX, Emerald ITC basically adjusted into And our impacted EBITDA took delays us vast you invested third third about. pending value of to.And assume principally factor EBITDA 'XX our you that their the project of quarter, if at biggest the delays it our And on delays is looks that slips like production start-up Biotown production see our operating than versus now in hit into ITC was projects range also and And in mid-XX what forecast totality, that's have we all impact. biggest had second 'XX. are if driver guidance would away EBITDA. we delays ITC which ITC, of guidance. been which the basically 'XX.So range, normalizing separation some the the XXX, flattish. driven production talking look had better if couple in And monetization better can outperformance into XXX the And that has adjusted of quarter, math we production MMBtu you some at look original Price that EBITDA, delayed the then probably versus for price of the on where our costing So was quarter was value and you were really RNG level that of in and balance,

impact to see change So full that don't the no per I the quarter, But se. can year, think real what for you third was.

that Got release change here. it. to Curious of a follow-up saw noted you see here? dispute expectations starting And within specific if or the perhaps you assets? as just getting cost a color. And I then EPC. Appreciate are to press in dairy that's your ahead inflation

This a is X-parter of That's kind Jon. there.

current that really there. a with those the William? California a of that costs have that current the We from a matter related the the out to it of single facility and a pace little we of towards QX of projects on short.They coming their discussion. resolution question, up will are asking and for line to increased QX compensation increased the -- is and our compensation associated that half the provider continue second project see upgrader resolution of and that projects your caused with First, sight respectively. What to these a to and was with dairy this EPC the change essentially that there there the of contractor that's in we're changes very with It's number equipment, out to seeing associated been regard is have provider specific EPC orders

Sure. just maybe foreshadowing inflation. wondering It that's if -- cost the was

No, not. there cost has inflation. absolutely it's to -- do It is

the inflation. not difficulties the provider with But is inflation whether the pretend trades, through. that. not of really and cost the that to in to that EPC one that they're cost substantial All civil is related and But not real completed is just and increase having there because let's that equipment pass to trying So with associated procurement piece procurement with this related it's of cost or isn't. underway lot electrical have costs the a inflation. one or seeing This or and engineering that that are contractors is actual the is the

some of pressure So seeing upward equipment that and -- providers are our we're definitely seeing that. too

reliability we of how say we will on sale equipment, pipeline through putting has projects when of when in the evaluating and projects definitely period, efficiency. And and we're middle fast project. that.I in us that work choose And The gas degree all December largely a to certification And on to and its running very in allowing is building to getting in to really started and RINs our towards is, use we the reiterate, work. just procure that's So a kind team and that equipment that for ramp-up lean we've our December gas work dispense over that the building sure we now very of of month in cylinders, of EPA that the that of really the high equipment one priorities kind in which highest make book, from in they the well. this that period. September seen is projects those turn Emerald project points project, we

only things assets. are plants.Just work that objective. correctly. where build we multiples. them of building reminder, after do these And start and capital you sure these to require if The correctly. we primary thing are when XX-year are doubt good the we pressures don't them, figure I same really a we're opportunities ways always those build we expenditures build these inflationary that's making we're these is, you some the X And those you in been primary Yes. going our would to projects. X work objective trying additional to And inflationary there to our XX have to still that really that finding no And at But add are saw. that's really And see can And out hopeful some fighting really back cost there mode efficiently. pressures projects is of more on projects the at time, we're of do we

Our next Sachs. with Goldman Adam question comes Bubes from

us timing the industry just track. players as lag have the a of to of in commissioning certification between the Some and on see remaining of timing between talked you think earnings in-construction right quality until and commercial around a to about contribution gas. starts about when RIN calibrating Nice help of commissioned it plant contributing projects turning? the is a operations Can plant result

looks what like understand So you that for just to trying folks.

Sure, Adam. This is Jon.

you answer. thank get trying what was bit for at I So a with prior little to my the That's question.

future that we So putting for project. we soon pipeline, part, most to into as gas start putting the revenue going be -- as is associated the gas the started with

for take gas we So that and file kind -- X samples, gas gets for stored of perhaps. use gas then samples to can take certification then we that certification to file and we X those weeks

got that producing started what middle November. saw in in the for certification that's that the September. so we And a early come project We of certification

the represents credits. lag, with dispensing to creation and weeks the is So say, you regard or one first if X that second the will, perhaps.And then let's X of

forward can those X will show a credits December, sales up or with later And in so talking when they'll now November, end recognize date. place we the past perhaps months that we're available in we for we at of we in account if December, really sale, cash that dispense sale be then and time, then like our time. that. have sell so at agreement something those that week of about the time, that associated at credits the otherwise that income And either in or a receipt And

that So end up after in show make help But if a next the with does month that timing? that. might sale, year cash the we

WM interested facility more and second near-term if SJI projects advance pipeline put Much of hearing and specific helpful. if is expectations color color well? was partnership wondering of the very any That into provide appreciated. partnership the construction. project Particularly any the to I And just on my opportunities the could the visibility some the as in on be then follow-up, in Yes. for timing you there's more

Okay.

yes, take So I'll that.

out year our So that And pipeline see we We and at we management look are the in across these are strengthening the opportunities are million X relationships seen to of industry.You've continue definitely excited construction us projects. about waste this multiple on attractive. development opportunities target. result as advanced very our report work that MMBtus some really

strategic owners, on with their be of And X We Atlantic And landfill the that to area. that.Adam, want execute this X, as pointed decarbonization development to that you that partnership, additional can landfill they on really helpful for outside see of by and in of partners. and really relationship, really pipeline network.And on stars opportunities are really continue of the represents downstream execute us. from the opportunities but we pipeline poster SJI continue benefits now, and projects can continue can out, investing these in industry them. opportunities. coming child additional to the to continues maybe dispensing align those there's the to to add and team the advanced We see report on where on work plus that construction particularly project get not Emerald before case other you going development side we wants really invest further can to to them X in opportunities well put make the grow, where And and into partners GFL. is it's did that. a Great projects like so for finding who relationship as GFL project side, a that on being upstream we But just do something?

time from facility we development the a of the got we lead flavors longer the to agreement we've place really construction, include design docs through an to Yes. the -- on documentation gas, for we agreement, time agreement. with pipeline which contract equipment.And partnership sorts maybe schedule that orderly line interconnect all project, another have final it EPC, you rights RNG need -- we then you the and as interconnect for lead finish go we've there meeting. goes got and rights and and to need them in those gas amendment across need of And the trying get where our a are of have the design we of partnership gas the lined-up to an order could got maybe trying EPC that agreement needs long your waiting gas move into In a something advanced municipality of you're have pipeline here where when get is to got for a facility completed

opportunities little feel about all have but moving flavors they really good their to of these a number forward. it, So

Shere comes Our Tuohy Brothers. with question next from Craig

the are portfolio. it simple bottom with the the construction progress keep will development on since hour. just of and the I Congratulations at we

in about, first so what a the talking more versus peers sees to about? in am been quarters good. timing. perhaps future about you in But issues project, Just at limited you many which around concerns. of a variability about little outlook up questions some of more you to year want to dig describing But point, the XX execution industry seems issues, small, broader the certification to confident of months ago project all industry growth remain why of connection that is RINs which are portfolio variety supply impacted I a like being many talking RNG understand as versus project from and and project delays the trying Ryan chain, systemic timing It this by of are delays are that site labor the kind Adam's have pipeline timeline permitting, talked

is on that. Jon. This I'll Sure. start

start we was ago. So contract, into Adam as when thing with do that the we an minute EPC construction principal enter essentially, a is we saying

orders, during includes that say right X for kind came we to isn't all we QX. scheduled really we that's being a start another June put this months construction is about that contracting air on permit talking expecting the September permit we're process bit actual for components. we long what putting timeframe project on And But into And in longer we June that of civil actually to in at engineering earlier example timeframe, project.So for site And construction. commissioning. be is the we did that project in have we the don't of time seeing enter here. pull While contract, at what of XX-month pipeline, that we can as so when if is. in We and acquired an what remember, little so the general ended construction project bit the took little see, example, that lead our keep that a likewise, that were finalize in a have that all would And that's understanding of year. permits into we when our engineering But the and X And look of achieved.We sure we timeframe really pipeline so that to our that that Polk on timeframe we interconnection to electric make start that the Emerald time timeframe. components, a or contracting, up to or committed the we that seeing we're we doing the we're the procurement start to project. have the that terms of project electric track longer, a really pipeline QX that a work us, and from -- of project into took think that construction, we that XXX% start of major for other the budget XX-month not the have construction options work open the a options.So generally while at contemplate permits construction trigger cut maybe clear

kind as a that so gas mentioned on then months sample as process to Ramp-up into and the deliver a grab period can line, question long that's period. as that shortened. more RIN that So as usually ramp-up it, earlier gas period we when be X at the pipeline, bring that start team the project the pipeline.And projects of gets gas couple starts the project gas start starts selling then delivers or we of able during period. be before into Adam's some X, on a But or our to can once better commissioning we're and certification we project to do X-month produced stored the ramp-up

they're the understand keep fairly are We've going. perhaps can what our team Emerald we're people experience of we period the through experiencing that add? into is project tell team that kind and want we're anything the us months having. the people pleased see, there ramp-up substantially now.So that industry. had defined. you in well other We of to our the with it's As difficulties X we're other of because of expertise that But Adam, think able those of we and to timelines how

I was feel able of differentiators here be it's execute. we the just construction. that in and are there, the Fuels is to but going the like OPAL add confident timelines or or here could to out And things being have for about set feel we we month there at that listen, one we good X

sounds in complete. but ducks was of initial clarify things just helpful signing EPC hand and connection and in already bar shared. because have project this FID could I these saying, to from like It very like We're teed square a don't an up announce have and one. a won't, quote a unless and unquote, mind and and an we've it the such, orders kind the we in sign time contract setting for in you what long items, not not EPC you're pipeline other permits my construction high it look, are the lead it's If We sounds answer, and your starting row, process. the

than standard maybe you higher some a have industry So protocol.

think it's I important.

Let me just start, Adam.

important, Craig. it's really think I

When point. really projects construction, is a talk out into not this point You about that don't we -- good lightly. we say going

agreement. going It quality of was is that's -- has define style really project to different going really do it is combine that to the and and And are our be what for work take our project.We of Adam with talking permits EPC this all landfill having that a and with gas different As what that we a of gas We Every analysis earlier, take design available. look consider for with the and for rights we the about design we executed required different. the then are landfill, is we to of that gas going The complete landfill design. to this. really the an be contractor starts that get project. pipeline at options be best

of built. say. is to built project when And going think the that's something important.Adam, going you high work. substantially well. when built be the project if add a have It's so to construction, on It's I really line, on we going And that timeframe we want be to be that? that a to the And confidence into to comes project put it's we going to degree

No, I think Jon. covered you it,

Zhang comes Scotiabank. next Our with question from Brian

one. have just I

compared RINs on quarter. to the RNG revenue. a XQ, If the during volume we I you question have more have have segment Also, look the is fuel up the about sold So generated at XQ XX%. than you

But $X only million. $X revenue revenue. to $X calculations, that So million additional -- revenue can XQ million our about to segment increased according about additional RIN alone

revenue as So that sales? could is of gas aware there be anything other such should we brown impact streams

Thanks get back for Scott. have that. on We'll to you question, is This your to Brian.

No problem. Okay.

If you of to you. out reach get back we'll us, can to one so

And I'm at I'll questions any showing closing call further for no this Adam to time. the turn over remarks.

in right. speaking today. joining All Fuels forward And we again and interest soon. the Well, everybody's on OPAL appreciate look I to us call

today's presentation. gentlemen, does Ladies conclude and this

disconnect. a day. wonderful now may You And have