OPAL Fuels (OPAL) 8 Aug 242024 Q2 Earnings call transcript

Good morning, and welcome to the OPAL Fuels Second Quarter 2021 Earnings Call and Webcast. After the speaker's presentation, there will be a question-and-answer session. [Operator instructions].

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. ahead. go Please

Contino, of good for Second results and today Welcome at the this Investor financial and to Relations to Co-CEO, our Financial Thank Fuels second OPAL XXXX morning, website OPALfuels.com. quarter XXXX Earnings on presentation After the the are our yesterday Fuels released will days. section Scott completion Maurer; call, call on available Jonathan Quarter webcast afternoon, Comora operating me also Interim available Conference OPAL Chief of are Adam Officer. results available you, for XX and and a access and The those everyone. be and website. OPAL's the of Call. are With replay of today's

that I'd including which involve Before like remarks, your contain you assumptions. and remind to forward-looking our questions, begin, risks, statements, to answers we uncertainties

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

review then Co-CEO and on the over and presentation. A John measures included Adam measures and financial to definition Comora, highlights results questions. call results. and Additionally, of this open to out non-GAAP measures. Adam call Fuel. is of GAAP I'll then call will of will overview after nearest for an the providing measure an today's appendix begin in And the of business non-GAAP discussion commercial contain the give strategic the turn which priorities. and of our OPAL by certain Scott now call update, the a list quarter's a We'll and will used update the operational of development release will reconciliation these

everyone, morning, in participating for Fuels Earnings Call. XXXX Good you Second and Quarter thank OPAL

segment. were the growth and solid the expectations. factors RIN of favorable we've our with a the year, of for which increasing of services. our finally, outlook we've projects by network schedule are business on Pulp quarter majority our services production from Adjusted in margins end growth operating and EBITDA our including results our and first expected by throughput higher million, higher across Sapphire RNG advantage station in quarter quarter, at remainder of RNG our driving station A taken sequentially facilities, forward production, RNG market, selling second remaining was for improvements to and see in approximately Our improved line fuel fuel our driven the continued of pricing, dispensing $XX accelerating as sales growth segments, the in versus our number strong

design contributing and online to are and projects, remain factor expect the RINs we as sequential the adjusted that fourth which the next and executing XXXX We on now project One have selling guidance venture $XXX with sequential placed the X with of production, the New third project our we are William certification, placing and respectively. We're and EPA begin announce quarter. MMBtu capacity. of Jersey Cottonwood maintaining our and EBITDA third $XX to design MMBtus MMBtu is landfill. year maintaining quarters, million year Sapphire of from Polk X.XX RNG into at are landfill this X.X to on last of project for second new this to represent X Industries in are new to growth annual of of that our in received Burlington objectives our our construction expect expected our We RNG million South production construction we Project and growth bring into continued XXXX. balance million over track least project the County, Jersey capacity has construction guidance is has at partner, the Prince happy joint million. announced quarter, RNG annual begun RNG million excited our the on XXth growth, Combined This County,

our continues with transportation fuel station in projects to the in dispensing service highest market. our with perform supporting segment offtake and fuel Our grow upstream line expectations, value RNG

million to to We compared year XX% growth which fuel EBITDA a production to to wanted XXXX. RNG are to maintaining station services also expected change outlook, full guidance is mention of in XX% I now XXXX adjusted versus our in MMBtu expect X.X the range facilities, million between term MMBtu, by primarily guidance our X.X most million of million nature. of to recent we ramp-up to short X.X previous and X.X be which driven

expand bipartisan distribution It waste convert turn support, biogas. existing what from and we them is energy harmful to OPAL intensity fuels grids. electricity our technologies Jon. a renewable of low-carbon place for proven into these emissions believe Finally, and organic to opportunity continue track record. We electricity is over utilize We be pipeline decaying and it Jon? to to including proven to is leader from in a I'll development, there in remember believe that, continue the to we operation industry utilizing low With do. produced and that capture great well important products methane positioned a and productive carbon

results months second with ended our good for XX, June million stations. and execute X the more on quarter Fuels production and XX% MMBtus Thank Adam, than to a production you, building XXXX, continues RNG RNG was reliable X.X year-over-year. line expectations. everyone. OPAL in operating fueling and facilities were increase morning, Operationally, production

into RNG and in is making X they our executing on projects strategic goals quarter, this construction operating X we're well, last mentioned, schedule. proceeding RNG continue new Adam moving projects into projects As Construction projects also like and be progress projects construction. our We Burlington operation. currently and of growth have quarter, construction to by Cottonwood we're putting by on in

already We RNG and be landfill a X for to project track commissioning, online online XXXX. for Prince quarter County expect project, in date. on complete during brought Sapphire the We've completion and projects a mechanically is third track on the Polk date. continues quarter to William bring large And RNG fourth completion

tripling million capacity exit construction OPAL. XX continue which XXXX is million begin contribute put We Construction more an SJI to facilities the operations is design our RNG year we expect to in at XXXX, the MMBtu capacity commercial annual third X of quarter compared X.X first owned the to capacity X.X design net with years. Cottonwood Atlantic, year-end quarter expect project to MMBtu RNG of online X.X is third of than million of XXXX. at progressing past to project, RNG representing MMBtu in into MMBtu our it over of OPAL. venture joint net design X.X Atlantic and million and annual we expecting represents landfill XXX% also to progressing to well the

expect begin the project to operations time project We commercial lines. consistent recent with

to RNG the Finally, have Burlington the at of start construction announced project. we are happy

XX% of and million of MMBtu tailwinds project this partner, into South MMBtu conversion OPAL's is As capacity venture our ownership, goal us project Industries X.XX support design of continue construction our helps towards capacity joint for mentioned, mission. represents progress Jersey year. of and to RNG X.X the annual million Industry our design with second this putting

We seeing that, end are turn to Scott across financial discuss demand over to Scott? With markets. performance. it I'll quarter's strengthen the

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

Our be tomorrow. XX-Q filed will

RNG year equity QX Net of RNG OPAL's income for the in million second from as largely $XX the MMBtus services, second by to gain $XX.X second of quarter the as $X.X for the RNG driven station for RNG approximately projects. was and to the main as compared quarter joint on production our due supplies. Revenue compared of The timing million XXXX. we revenues and well at both income as in the is increase to environmental quarter including statement. not our in The primarily of from all was of The as compared both million million last XXXX, X.X RNG for and share the credit projects the $XXX.X deconsolidation our Emerald driver and Sapphire which the was quarter Prince sales, the X.X where second from William is Looking the reported the in difference fuel in the million XXXX. of investments contribution projects, venture second was second as fuel including to MMBtus quarter production revenues dispense $X.X increase revenue method million was quarter other XXXX. in pricing results. projects increased $XX to quarter in million to Emerald third-party of volumes. million included

loss in Emerald This RNG previously which onetime A approximately facilities. quarter gain, million for million. XXXX in of of our environmental the timing partially the Power equity to the investments was $X.X the the increase second quarter this associated mentioned, $X.X million $XX.X our segment expenditures improved revenues Renewable million Adjusted second was RNG XXXX, for gas power relating was compared by to revenues investor was XXXX. the marketing and second reconciliation approximately presentation quarter sales. of approximately concurrent utilized morning million in as In in $X.X margins. quarter, the with release decrease facilities, fees, of Station million were million, primarily to $XX.X $XX.X Excluding as primarily million in EBITDA downstream were that stations. earnings capital driven net this the LCFS $XX.X method The and credit The in in Services using quarter, revenues and on the XXXX. updated which quarter GAAP was increased $X.X Prince to results due adjusted million second includes of is renewable were sales compared our result website. quarter to William $XX.X to from are the yesterday and quarter and provided in second compared RIN the our Fuel second $XX.X for million

Our of credit. senior facility of loans over term secured million $XX draw to million credit revolving $XXX up XX-month provides period and an

issue of revolver of down approximately drawn the million to was letters approximately of credit. June utilized million $XX.X have our availability and XX, $XXX.X we XXXX, on As facility,

was of short-term June our believe XX, existing availability under and approximately cash, million facility anticipated investments. funding our the and are million, and $XX cash of from to cash of consisting operations credit $XXX liquidity meet liquidity of sufficient XXXX, needs. $XXX As equivalents We million flows

most our million range previous primarily of our our RNG We RNG X.X I'll be guidance it are by to is X.X to the for ramp-up production, driven to compared of million back concluding to X.X XXXX John expected to million MMBtus remarks. recent MMbtus for except which maintaining X.X facilities. turn now million

In climate remain closing, we vertically are our turn We the low-carbon I'll furthering you fuels and your and to biomethane cost-effective, partners products, pleased And call displace mission best-in-class Q&A. for operator reliable committed with to over projects results. deliver intensity build capturing that conversion fossil that, operate OPAL for all and change. Thank energy Fuels. together interest quarter's that the with industry-leading, this in mitigate with integrated OPAL's to

As instructions]. reminder, a [Operator

first from TPH. Blair question Our with comes Matthew

line is Your open.

good I morning. regards in to guide. you, and guess the Thank just

I higher full numbers parts there? profitability, fuel talk off, the the the And but what's production down. the moving you is in Could expected? year about guess, Thanks. why maintained you RNG EBITDA unit than So you coming guidance, coming

the morning. good is Hey, I appreciate Comora question. Adam Yes. here, and This

adjusted math high end of EBITDA were low sensitivity price about we out X.X and to had X.X the spread we of adjusted of using see end. our And move guidance. guidance and also of a initial level, and on million high the And MMBtus guidance million when we in would a when $X.XX $XX a guided about folks production $XXX,XXX $X in $XX EBITDA that adjusted about leads you in $XX every So our between million we between million million, RIN giving EBITDA initial production, that had RIN, be to our million. the $XXX to X.X gave the million X.X can

million and we'll guided So sold where production original -- that RIN new the the year our production being that was if see stronger forward than $X.XX you guidance we've you our that our range achieve the shortfall price this year, sales think the move for about a RIN can written EBITDA. of and $XXX,XXX will RIN our lighter production $XX offset being where adjusted guidance, the than the forward majority folks from. move that a for in the majority price We came price was our position basically had of vast what original

Okay.

RNG seeing past, good. for then utility doesn't markets? market the any Adam, into selling thought enough incremental Sounds just are the non-transportation opportunities value. that I And in OPAL know you offer

You opportunities to about like for full paid RIN, but other markets, are don't shipping any any get chemical? Because or the monetize what other there RNG?

tracking are well. still being in contracts, delivered too discount sell RNG of know question. that And quite demand as to are export out interesting I can there renewable RNG. their Thanks we marine are markets over certainly a to and to is frankly, certainly, know that great Yes. and the we're RNG think over in others regulatory there. folks to fuel that develop markets figured continued that seeing increasing think in interest RNG California interested or some off seeing think is terms markets voluntary some to the transportation there think a there and would think at Europe I some new that methanol. for Europe. U.S., export There I we fuel, I there lot out are the some there's fixed we again fuel for is utilities in run applications of And say for the opportunities, point, are seems it being going end ships be are this will market here that develop great price that are well. we and contracting at one us. as of And matters for still perspective some that And continue to that from are marine really to strengthened purchasing particularly are as we

there from markets, the that to have we yet continue So we transportation effectively they're or think going fuel entice will market. those procure likely other rise try to continue pricing not away and to engaged but in develop, end to folks

of we SAP. at hydrogen still renewable point, longer about know So I continue feel great all discount too like bit little folks and the to sorts in talking this but RNG be are are transportation to the a interest see -- is out we or And fuel and fuel and mix, But and developing, not of part are eye continuing do transportation portfolio will just keeping versus we market. they are pursue our yet. close on markets them offtake a I those think

Adam. thanks good, Sounds

with comes question next Paul Our Scotiabank. from Cheng

Jonathan, you, good have I and Thank guys. questions. morning X Adam

First, new standpoint. maybe a it's bit from a strategic visional

strategy we the sufficient the to and I have service time. business or As over see will station then scale mean RNG have station you that in grow your upstream service a production, and that's that towards your you to you intend them you upstream okay, portfolio upstream between we or industry and need keep that longtime, business and is relatively enough, into say, in balanced that grow the downstream, tests also the don't grow so that really keep more the

the that the standpoint? business from what's first question. That's strategy So

is apologize have little a detail. to -- the bit second I of The question

On second for actual sales if of LCFS price actually your LCFS up is the we're But down. the looking sequentially. is quarter, industry price at benchmark $XXX

the how in mechanic So work is here?

Paul. All in first the right. about and John I'll LCFS take question, will our market. Great, contract offtake then the talk

station say returns business fuel station are business fuel station agreements of purchase upstream. own the and We're tenure assets are on was both how and its downstream very we those fuel own stations and for I upstream and believe profitable RNG stations downstream The first to distribution on agreements, And business a marketing excited for those in I fuel and business on So business. fuel our we have with we nature the we viewing long-term OPAL in the question the extremely build conjunction good capital development in purchase those attractive right. with fuel is stations. achieving service will

happens fuel outlook terrific finding we'll are station So the if and that part that our for even markets. even our upstream that growth we other with and there RNG continue of offtake our business, just to taking It not tie-in if RNG the strategic is like picture, so we business. grow service business, was

seeing great station capital, if fuel back in XX the experienced new opportunities so to and business. was you there of just see And went deploy building OPAL stations downstream fuel economics stations price growth both frankly, with And and by a opportunities servicing even we're fuel those the differential projects a And quite RNG versus years, fuels, just engine, XX-liter CNG commodity of of we diesel. versus CNG for fuel. that of with the diesel lot lot

to attractive the be a continue of think and to an and conversion business us grow So lot see business. we fuel going for place service for to that's potential invest that station

do per a or Adam, CapEx number you next years? have of several can you share growth kind over metric the year station the of

Yes.

we RNG don't past what But invested is on XXXX. we the we we do of detail biogas in projects. is capture fuel Again, and the give versus being think the I in stations how that for provide do majority much vast CapEx new -- spend CapEx our conversion well, guidance projects. the out

I it a we likely XX-plus our think range. least filings. it's will in but somewhere historic That basis do percent on give in at the continue

of commensurately have the Paul, in is floor is One $XXX for X that And we LCFS of price an larger We fueling credits, turning contract average offtake project LCFS projects, average price of question. obviously, well. credit. R&D than Paloma sources. the a from station Arizona. the the to And projects our principally price get your there, Dairy as has

situation. the sale that, a as that's long price the there So we enjoy as price currently and $XXX below is

Yes.

years. there. for contract follow-up multiple goes That a Just out

for... in that floor is So $XXX place

market we a as credits from get credits projects to And the dispense the California. a portion then that have of we is most credits downstream dispensing and place those range marketing the market our LCFS our the we're Another into And for where $XX year. they're $XX typically, X.X we prices been fee in prices, recognizing low at CI those get years. other of

in think I not And at those Yes. sell did second we quarter, the prices.

So in holding we've been credits those inventory.

that But they're recognized price. at

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

spoke to a assets. maintenance per maintenance couple looks your for a of just Maybe CapEx flow a current you or A discretionary sense Can us what remind dollars CapEx. about we is CapEx portfolio months MMBtu the of your just folks what cash basis operating for like? ago, on on follow-up R&D help give the

Ryan, Scott adjusted With to maintenance is the This Contino, $XX is in amount power range, CapEx thank you, portfolio, there question. reasonable that the to something for it's in EBITDA, maybe maintenance that ballpark. a we like less little a back that, add our million respect for CapEx a year renewable a of year

to lot projects, maintenance RNG a have less our For give but number per a MMBtu don't not That's CapEx. a there's number. you, large And capitalized. I major dollars all it's

are In of number new, right since not projects our most fact, it's now. significant very a

Yes. This is Adam.

on we've Just of generation investors EBITDA XX% discretionary internally think and illustrating I we'll really free think helpful might to been conversion understand business. going flow lost start to for it the where we're this flow cash free a historically to have that because our from follow-up XX% chatting quick and that. told I be cash there folks it's people We've

perforations out these gas millions capital themselves, spend and where together, unlike we business it's bit some landfills energy of portfolio And these that company, into is across facilities. a produce they do, them a and our maintenance XX-XX-year and gas pipes if after the rights you remember apply about it and in PVC we the suction we single-digit little drill look Scott today, the build CapEx, facilities all beautiful of sits gather to what or go mentioning, fuel, connect things to and we of drop even traditional right? our If our of are As all to to assets, longer. don't facilities, our was have we the have just we you one

these discretionary that only And EBITDA discretionary a think could enhance cash pay be really OPAL I to after we free flow and we our about really of in you perspective, flow, folks used what back you start cash when invest healthy be cash to going sorts EBITDA an Fuels, that's we but So really can not pretty valuation we're build There's new get other things see you powerful still you dividend. future, cash phenomenal. the are today adjusted into of projects doing illustrating you've facilities acquisitions, that could from doing in free is flow and think And be a that value -- us the into shareholder to got extraordinarily quickly value. discretionary could make because with all tool. business. grow we're attractive we free the that really can And opportunities is growing to think really that and free translates flow shareholder discretionary adjusted to this driving things

for question of showing versus So we're thankful and flow. free descriptors going I I'm to cash CapEx better think, the growth maintenance start, discretionary and CapEx

perspective. mentioning, was from across low million in it Scott flow and cash RNG and as really $XX is think, total, in aggregated facilities forward, renewable discretionary power and and the our that we if it's you up I $XX free all million, maintenance look the attractive So between CapEx

appreciate all and I Adam Scott. that Yes, color,

I thoughts timing and an or there on if update second just potential you my any in a for administration question, So in might you guess, the November? wondering have have risks we if see change on ITC

Yes.

Adam is here. Another This good question.

good include in think think ITC credit. of we're rule projects our we in terms I So RNG final will that getting for a that pretty spot a likely saleable

finalize. specifically they're Section there some hearing guidance I and feel that another on be issue I to want be correction They set may through one just issues or projects. for what like we've timing, total XX of RNG trying not for that been to is issue other may to and treasury think piecemeal XX on trying does As work final

waiting they're third So final doing summer, in whatever may else saying specific in like late rule XX. I we're folks been just late finalize Section summer, our know be quarter. I they have XX feel as Section

our guidance. So to we're how thinking think terms soon that of dollars to that still no we'll total folks here there's potentially that not something And with addendum with that we're I because some as And folks year it's in cash in those even discussions to anticipating so change previous that in us included sell as qualifies. in projects out question levels been to to EBITDA, it treasury hopefully we've that adjusted is free we'll coming and of close million that and we're to see told $XX of that proceeds. the be year. able final discretionary range, about think sales close years got we've we still just of we host that that may be a an And everybody several understands cash of everything available end talked kinds the about terms of in those flow, construction here next think that we've into the prequalify place going before you we this for

setting but ultimately credits our up terms those taking And generated. that disappointed discretionary flow the we're So free because going resolution, when our if setting optimistic it salable will of would to and you else slowing they positive something long, available up still on that to in and get us of want this monetization down -- the working that up so credits think projects the to us. they income for next not show where to be years, over it's treatment cash through accounting still final are that's statement we're prequalify it it's about several get

Thanks, appreciate right that. I'll back. be

Thanks, Scott. Oh sorry, yes.

XX should tax at specifically in XX change there's a by of signed reminded of credits the with I of letter the And the credit the Just and is the think or Republican I -- to do. was some potential at sent for and and Section that lot the a along lot about we that support that I is don't now it. house or support change the within IRA that party. was speaker administration risk missed there or of Republican IRA. We administration Republicans XX of me, tax are change least say there what talking for been I of some -- a go particular of this benefits think

don't risk of that we piece there's that of kind that scrutiny. this think a into lot IRA necessarily of the will So fall

Thanks it. Got additional detail. for that

you. Thank

next question Adam Bubes Goldman with comes Our from Sachs.

now is line open. Your

just how gas fuel you're on given to engine year? us stations off, in update natural thinking build many the your capacity if could XX-liter about stations build a for demand you you takes how Can fuel

and Fuels the staff, as unique would bit on to the So today. I think it range, in how would that scaling to terms our like not of ways. difficult both side have current us. that's a And up being OPAL to would -- We set is in build don't service -- that XX% of continue constraints be add And lot XX% to business, our quite of scaling range. we side. to add it capacity would sort we're say XX% we in there, it is construction be to ourselves continue little frankly, how in of many would up a for to

up of be really lot XX-liter to the engine. ability think to really want to spot and One right the will is unique that scale our be attract for a service be that what for part folks business of we'll And of ways like in that OPAL we the talent. A doing. good we're there the what Fuels out we're team any and to that in continue teams and constraints to are construction industry If others uptake Cummins from see add perspective. techs don't

Cottonwood mark-to-market on how what's then today? you're project, Burlington the as the project think about thinking timing And and we about

project, QX, be early will which Polk time QX, interesting around that XX- it's hit the because frame. we XX-month So coming to expect in a that and is or project online

focused time faster average of project, at into certainly remain a think tight time We're I that's we the up that leading the and more into to execute project, an getting reasonable frames frame we ensure our put interconnection for supply. So to rights the those design, on would when to would an basic construction time and period we of XX be pipeline that kind to XX us. for end period a a have say electric project gas project a we a path projects. have projects construction to would construction a Recollect it

are those critical a path putting key So project for of items into some construction. our

during Some to complete rest process. the the permitting The time the differently. construction in pipelines, in out may and we'll that of over actual construction. certainly, starting occur turning of somewhat and foundations ground other getting people and and complete the putting And whatnot define period, work, later the we'll

in some complete. to little items taken past, while longer other Sometimes have the those of a

of by same But before. so that pushed Sapphire so us commissioning frame longer. example, time time that a permitting some delayed And reach our is with that to working on things couple issues we're in we seeing that PFOS and that end, the which out, XX- ought project, and to the right months is at on projects the XX-month in associated other it alluded I -- front the so future set landfill now for frame to

year? $XX of and between update just the RNG the difference you us And million. In in towards monetization year, how of think of one increase about guided the the XXXX pending you you're I me. an the timing balance in thinking production monetization for million on then or last beginning of RNG the actual Can

any see a thing having is our and we EBITDA, we into what as in to thing. about RNG of helpful EBITDA we see don't just the metric. that We that and here. we talking as a anymore as thinking impactful to talking We are it's be a started sort and it's folks that for to not not Yes. adjusted don't changes adjusted still to -- our operations major we is outlook pending move Adam This and sort as it beyond, and about but outlook talk sold to performing. think more likely about how guidance production and likely, much pricing once given quarter what monetization sense talking about And how were 'XX that get think -- is being of of component, about

part the credits another sell and that at -- a we the production is will those question, and year, when -- the illuminate market can good that market is your I forward feel of that we think a on look when we across place, our basis. I

a look comments, he sold, operation given tried in credits at So put the course for and can the we've in sell of as to of Adam the said it year. those year. during Typically, majority as -- we'll vast we much of that projects are earlier as our that, the as credit his at

a And well. And start XXXX the As complete there within regard end year. generally will current and towards the or projects there's of market credits vintage commissioning, as those online yet, the sell year. come really in end current the are market, deep their year not with merchant develop salable we'll to the to That

know Adam, if add you something. So I don't wanted to

No, missed Yes. I think I nuance question. maybe that the in

all RINs in are we the year of XXXX. XXXX that selling anticipating generate We our in calendar

I helpful. the very it, appreciate Got color.

instructions]. [Operator you. Thank

Capital. Marathon Alex [ Canyon from comes with question ] next Our

all operating to little in early as the thing at still -- expect is rate? more face there year-end bit just updated was year, by you you full Maybe you move that first look this the as into be Or be curious and really guidance run the to to of production I of for a go assets going to do the 'XX? will commissioning about are roughly expected

Adam is here. This Yes.

gas a And some and slower tie we tied Prince newer seeing the those time variability the see a gas. from wells. additional well that provide of facility there little we really improvements came before flow the of been in this collection that the were wanted cause bit those just more I little broader when And able from online. of well So in on drilling in you have additional And of in base facilities terms outlook color bit expansions that was municipality capacity and in not that at we the new commissioned. those ramp operating the of additional and all And facility. that production to facilities to some of the of before can the a and specifically, collection the tie that the to into root significant field we the field into field system, drilling at and began amount gas expansion a in us system expansion year, And had had collecting well done William, landfill time. was flare flowing the

the -- we've means term redrilling And months. them. some of we us, term and it's believe process in think several done we're short them remediating and So of -- we in nature short for

But field the move of its -- relatively see the when one those still gas we've excellent our I'd equipment start gas. as it's balance there the to And we continue use really, production are certain the had of may Emerald we how and expansion. that all country. so that's we to sort optimistic that's again, we the guidance really skid that there. final facility our So from when optimize size those term from we're processing doxy optimizing certainly that are, side in the of the and think or use compressor be see And project. that that year And sort for as you're plant that later looking you largest term the of continuing we when provide in issue that's say, we about we'll we're XXXX at well we'll bit in on gas on the and also performing we that margin And nature we flowing results. the little improvements equipment of expansions done nature in there. the been in And all is the short recall scalability our short in and to of cautiously at of scaled that terms year one inlet its issue production optimize appropriately through RNG of terms a our conservative to the projects the to popped that obviously

be both I into we those will 'XX. like as good growth So show feel -- move will of facilities

build that than the we we're And open because resource past that we've the that larger about things are in talked repeat landfills these growing just to all projects and to landfills. gas a current on size

same-store projects And resource -- sales reach call gas in on together, quickly productivity of of continue a over fairly these to as you'll to multiplied these which low of and when each continues mid-XX% we the see to time, range, as the availability mid-XXs We projects, improve, projects factor. a efficiency kind these grow. for kind so gives you

And and growth earlier, and as of of initial end the talking about Adam our sales, the so front product on at if those ramp efficiency the both we factors over the same-store in projects was availability time, look of project. the

facilities. at Yes. a is It's on just our about button newer 'XX than to thinking 'XX initial that put sort of those really more

the Great, fueling thanks -- revisions, maybe of their and out, for of the color. about EPA wondering you acceleration think it And just were of the has then of pace thinking guidance? given maybe final terms vehicles some [X] CNG kind Phase that I been related the the how to any the kind just kind think kind adoption of [Indiscernible], as side, know I stands say, about should what were about rules or a on or I side [Indiscernible] relative follow-up, but of in they on that Class III

a interesting really a dovetails is it question. couple of things. And That into

a that really itself, be and an feedback to for X RNG that to it's XX-liter they're with working the make going hearing, pleased diesel get noise supplier, that? save PACCAR well. all the and one be join of rolling the not been we're couple product to really things out say, there, that that going have terrific replace feedback believe people sustainability like those on And for that they'll which available And out regulations, with EPA with So truck which there like and of and money. fleets listen Freightliner is really think would as feel it Freightliner I pleased trucks -- How's I if are III people Phase to on of benefits And it a out on I accelerating come has adoption. do -- to is that the industry D.C. in starting are them to

focused are that our and we them those think, the or and starting sector going And it's really are our molecules III what industry more Phase -- bad. folks really to on things side telling progressive are about of listen of to is not all the of industry to in that things things one side educating interesting I are the regs. is climate Democratic

are to fuel transportation. reductions for form and are our -- struggling industry, in we're is collecting not sort transportation exist and terrific heavy-duty of emission trucking waste Specifically molecules technologies a that other meet application where

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Thomas from Scott. Montgomery comes Janney question next with Meric Our

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Yes.

good Another question.

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Yes.

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

everybody's appreciate I interest Fuels. Yes. in OPAL

growth outlook, what We hope and here everybody of their I day. we're are has really and rest wonderful excited doing a about our

conference today's call. participating. concludes you for Thank This

disconnect. may You now