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spk_0: of your fourth quarter and for a year twice when it's your earnings resolve conference call at this time all because my sorrows and only most after defeated presentation they'll be a question and answer session that the question that time for star one one on your telephone as remote as a call it the record it i've not on the comes to the hosts mister top firestone vice president of investor relations please go ahead
spk_1: like you and deploy everyone welcome to the oval fuels fourth quarter and full year toy twenty two an uncomfortable with me today are cause the deals and camorra job more and any of the opal chief financial officer opal fuels will be finance on operating results for fourth quarter and twelve months either data funny funny few yesterday afternoon knows results are available on a better relations section of our website and opal fuels dot com the presentation and after to the web task for this call are also melbourne or website after completion others are a replay will be available for ninety day before we begin i'd like to remind you that i remarked on as conkling if your question to pay for looking statements the cabal riff on sundays and an assumption or looking thing with the not again few performance and i for result could differ materially from one contain the for data them a practice like a cause or contribute to such differences or
spk_2: describing flight two or three of our presentation
spk_1: he's for like of payments reflect the views as of with call uncle fuel is not undertake any obligation not they for looking thing with reflect events or circumstances after the date of the top additionally the call will contain discussions are non got measured a clean but not limited to just even though a definition non governmental you than and reconciliation the mothers the near gap measure and put it on the panic of the relief and presentation adam will begin to they fall by providing an overview of the or for results week and highlights in the update on executed in operational priory gun or don't give a commercial some business development aid after which and well with be financial goals and polio twenty five guide go then open up the car for question but now out and the followed adam coral calcium of appeal
spk_3: thank you cause good morning everyone and thank you for being here for open fuel fourth quarter and year and twenty twenty two earnings call twenty twenty two was a remarkable year for opo fuel filled with many achievements for our company as well positive developments for the orange he industry as a whole we are proud of what we've accomplished and we remain steadfast in our focus on executing on our plan i'd like to highlight several point first we continue to execute on our streets egypt and operational priorities we believe are integrated platform is a powerful model in delivering renewable low carbon orange even the marketplace strategically our goal is to continue to grow our orange the production and to maximize the diet that are and g which currently remained the us transportation fuel market at the highest die distribution operationally we remain committed to the the premier vertically integrated rg company in the industry one that excels at providing value to not only our shareholders but also our customers and partners importantly we think are visible and tangible growth profile is a differentiating factor in the marketplace we grew our orange the output by more than a third this past year as we just glows in our twenty twenty three outlook we expect growth to accelerate this year by greater than fifty percent over twenty twenty two two more than three point four million and then be used at the midpoint of our guide or projects think and structure remain on track which provide visibility to accelerating production growth once again in twenty twenty four from twenty twenty three in addition to production or advanced development pipeline continues to grow and mature and his job will touch on later we have seen some of the development delays from twenty twenty two two ease and we expect to place at least two million mm beat use of output capacity into construction in twenty twenty three i want to touch on our vertical integration business model and our current views on environmental credit pricing we continue to believe our business model both maximizes the volume are produced are g and provides important flexibility and optionality in the future to capitalize on orange each allen's both new off take markets and public policy initiatives as those above and strengthen us transportation fuel market continues to be the highest value off take averaging twice design your fixed price contracts and again leave us the option of the future to explore new and markets and test incremental pricing power with fleet customers would you get a lot of questions on this merchant model and animal speak later about some of our business segments you're facing services and renewable power and a long term contract and nature of those business segments which mute some of the volatility by remaining merchant on our our energy production having said that let's dive into some of the recent dynamics in both feet three ring pricing and lcs credit on t three rain dynamics wifi the recent drop in price being driven by the potential oversupply of say a lot to eat three when volumes in the proposed that rule introduced by p a in december of twenty twenty two with rule finalization expected to occur in june of this year this potential oversupply is driven by two factors continued growth in orange he production capacity and additional supply from the proposed earring pathway is important to note that open fields will see strong benefits from this even pathway as our existing are noble power stagnant will be able to participate and generate significant incremental rims without investing new capital we will be providing more clarity around this potential as the rules get finalized on the demand side of the three iran's we remain optimistic that a p a r v o targets could be adjusted higher to account for both fail office supply additions as well as anticipated earring volumes as those rules become finalized is the clear intent above the original or ff and proposed rule common gary to support and grow the seal off the category the original law stated the sail off the three category was targeted to be sixteen billion the three rinse and p admit it and he p a administration is meant to support growth up the that figure with updated industry production actual is over the past six months and demonstrated new supply growth coming online the a p i had the support to raise lines and is open the door for future reenactment of the waiver credit over the multiyear set period is important to remember why the line apia yeah so supportive of the sail off a category the source of this category of biofuels of capturing harmful methane emissions the single most important thing we can do to combat climate change another interesting feature of the proposed that rule is a multiyear rvs we believe that feature made damp and volatility in the future and perhaps open up to four year contracts for rinse now that obligated parties will have visibility into their volume obligations for a multi year period so from our perspective we believe opal will ultimately create more value from existing and future projects from the earring pathway and structurally we may see new contracting opportunities from the multiyear or the else given this outlook we are currently limiting our twenty twenty three rim sales in the first half and the year as rules are finalized and and will touch on later how that will roll through our financials and reporting as you see in our guide sensitivities we have much less exposure to lcs pricing are sonoma project have been offered a contract with the floor one hundred dollars per credit and we have much less dairy production currently online versus landfill an lcs though we remain very optimistic on credit pricing and the direction that car arab has intimated it is heading to aren't repos program changes to be finalized or over the balance the twenty twenty three for twenty twenty four garbage giving clear signals to the market they would like to encourage more investment by supporting pricing which will likely include stuff stronger compliance targets creating incremental demand for lcs credit starting next year as we look to this year we are introducing are twenty twenty three a just leave a dog items which we expect a range from eighty five to ninety five million or orange he production range from three point two to three point six million mm be to use and capital expenditures to range from two hundred and twenty to two hundred and forty nine i am an will provide more detail the we expect and eight million dollar change to twenty twenty three adjusted ebitda forever twenty five and gallon change and d three when prices we continue to benefit from some substantial and broad based developments in our industry first i'd like to provide some insight into how are thinking on the ira has evolved over the last several months while we still await the final guidance from treasury we are confident that the i see c provisions well try to landfill orange projects that encompassing nearly all of our in construction and advanced development pipeline projects while we're still determining the exact level of i do c benefit we have been in advance discussions with the appropriate advisors and counterparties to believe we will benefit significantly second the forty five the credits are set to be in as well and we expect clarity from treasury in the coming months on that front expect to begin realizing these benefits and twenty twenty three and see them growing and twenty twenty four and throughout the next five years twenty twenty three is to be a very good year for opal fuel the some degree a bit of a contrast from twenty twenty two and twenty twenty two we saw a very good commodity environmental credit pricing that's awesome near term headwinds in the development of our new project pipeline in twenty twenty three we have begun the year with lower near term commodity and environmental credit pricing but see the positive momentum beginning with our new project development which is ultimately the long term value driver of our business
spk_4: with that printed on
spk_5: john thank you adam a good morning everyone i'm gonna start out by saying that we are very focused on executing our both plans he grew easy production nearly forty percent a twenty twenty two we expect to grow by more than fifty percent this year or a reconstruction portfolios timing is progressing with a cave it is in line with our expectations fixed at the top salary growth into twenty twenty four during twenty twenty two are operating project portfolio increased from three to six projects and as stabbing with the just completed by a town gary project in indiana in twenty twenty two we commission three landfill orange he projects the noble road project in ohio
spk_2: our new river project in florida and the i dad project in minnesota is our energy projects represent one point six million and mbt you have nameplate are as he ask me
spk_5: at all three of these landfill projects gas production continues to increase at the trash volumes very crease in addition to our operating projects we currently have six orange he projects in construction with the biotech dairy rnc project of in japan or operations as we said of these facts we expect emerald to go online and the next several months
spk_3: prince william in the fall
spk_5: and staff fire lately ear archie dairy products we expect to be commission and early twenty twenty four and the northeast landfill later and twenty twenty four
spk_6: as out a measured expect production increases the this this year them are operating in in construction portfolio that are in line with our prior expectations with a three point four million mlb team midpoint of production guys being a fifty seven percent increase compared to rg production
spk_5: and in twenty twenty two i want to pick up on what out a mentioned earlier of about development conditions easing the good news is that the project development law jam is breaking and conditions are improving in terms of moving projects forward compared with last year recall that we described how last year were presented a number of challenges which tended to delay projects as landfill owners are stressed the substantial market dynamics surrounding the value of their rg resource he provided some color on this topic on our third quarter call fast forward to today and we're already seeing improvements in his fate and acceleration of executed agreements for gas rights and for construction contracts and that this acceleration should translate into progressing projects throw advanced development pipeline more quickly and placing project under construction as we progress through the year it's we last recorded without a over a four point eight million and then beat you up by august were advanced development pipeline most of which is landfill but also contains dairy and food waste project these projects are ones that we have qualified and that be reasonably expect can be into construction within the next twelve to eighteen months i'd also remind listeners that our gas development pipeline does not include other earlier stage projects which we continue to evaluate as one of the largest are the fires in this factor we tend to see most of the projects in the marketplace all of which makes our pipeline dynamic and growing as we scream for the best opportunities our overall development funnel continues to stay positive momentum and provides opportunities in excess of what qualifies as our dance development pipeline because you're on track to commit construction of fifty three fueling station this year practically twenty four opal fuels owned sanctions and another twenty six with third parties our overall rg fuel dispensing volumes are expected to grow to approximately fifty five million gallons this year from nearly thirty million gallons and twenty twenty two in terms of are lethal gas or electric projects opal fuels owns and operates night team landfill gas or electric projects representing about a hundred and twenty four megawatts of nameplate capacity all that we began developing this portfolio twenty five years ago back in nineteen ninety eight or six of these projects or candidates for conversion to our energy projects the majority will remain electric projects bp a recently proposed iran's halfway stance is substantially increase the value of these projects
spk_7: adding over three hundred dollars per megawatt hour grows to the thing dies of these projects which has the potential to substantially increase be a bit off from this is segment depending on here in sharing
spk_5: and when price we await updated guidance from the play on this topic which is which is expected in the next few months in the meantime we are positioning ourselves to meet this market opportunity by continuing discussions with auto manufacturers or proposed to create these earrings through the even gate that they collect as we highlighted early on continued industry consolidation remains a significant tailwind for the rg industry and certainly or opal fuels we highlight reset upstream and downstream transactions that acted as addition to existing upstream infrastructure we think those acquisitions tend to sport how industry players are thinking about the value of integration some of the thinking driving the consolidation the balls around have demand expectations for our energy are expected to shift over the next several years for seen the beginning of this trend with demand growth from utilities in the form of rg mandates for power generation as well as increasing demand and european and markets and many expect increasing demand coming from asia too separately hydrogen producers are seeking low carbon suit sources of renewable methane and our portfolio production asset and fueling stations is well positioned to take advantage of that market moves forward
spk_8: are now turn over the call to and to discuss our fourth quarter and year and financial results as thank you john and good morning to other participants haunted a call last night we filed our earnings press release which detailed or quarterly and year and results for the period ending december thirty first twenty twenty tip we anticipate firing our campaign the next two years now we thought strong growth in to by three different segments orange if you're and feel station service services the biggest driver of the corner and year to date with health his arms he feels where we we're starting to see the contribution from the arms he projects that have come online and twenty twenty kill we a strong topline growth for the fourth quarter with revenue up forty two percent year over year driven primarily by higher volumes produced and sold in the aren't you feel sadness as well as higher prices for brown gas and higher rents under for we sales contract we had entered into earlier and twenty twenty km the benefits were partially offset by higher cost to fail did your electric utility costs and employee costs to support our growth and were retired lt is driven by higher energy revenues dna costs for the fourth quarter of a fourteen million dollars reflecting transaction and other costs of which ten million dollars if considered one time as a result we generated met him come in the fourth quarter of thirty two million dollars for the full year twenty twenty two before considering the impact of prefer give a damn we have saved net income of thirty two point six million dollars reflecting the scandal and results for open field llc and arc light clean transition corp to through the closing of our business companies and last july twenty first place a combined operations and fat consistent with the results we find the fourth quarter we benefited from python for and by an hour attributes and we had laugh can be a forward fail early and twenty twenty kill coupled with higher commodity prices looking at fourth quarter results compared to the third quarter or energy production i mean concept of point six million and then be to use which represents volume net help of your adjusted even our with twenty point one million in the fourth quarter versus twenty five point five million in the third quarter the difference with primarily the result of the previously disclosed three million dollar gain from the by town debt and associated with monetizing and in the money lcs off you often contract we often few experiences seasonality with some of our downstream fueling customers that the heavier volumes in the summer months along with him timing associated with downstream fuel station construction contract we reported adjusted ebitda a twenty point two million dollars for the fourth quarter and sixty point seven million for the twelve months ended december thirty first twenty twenty two adjusted ebitda benefited from the same drivers we discussed above higher environmental attribute pricing and commodity prices offset by higher cost of sales and higher royalties fourth quarter adjusted ebitda excludes several one time items including an unrealized last related to our war exchange we completed in december we also had a number of one time costs related to go in public that occurred during the fourth quarter and threw out twenty twenty two which are excluded from adjusted either jaw as of december thirty first we had one hundred sixty seven point eight million dollars did outstanding borrowings neck of the first financing costs including ninety four point three million about sending borrowing under term loan a twenty eight point five million related to the remaining amount of the convertible know we had issues aries for the acquisition of the imperial great and greentree projects and twenty twenty one twenty two point one million under the cinema and twenty two point eight million related for renewable power project financing our second term loan which we close in august and which will finance a portfolio of our mg projects that are were shortly will be in construction remains under on as into some december thirty first or liquidity position with two hundred fifty seven point two million dollars including forty point four million of cash and cash equivalents thirty six point eight million of restricted cash sixty five million a short term investments and one hundred fifteen million of under on capacity under our time loans we did recently draw down the final ten million dollars remaining under tomlin one i will also note that we did not have any exposure to either silicon valley bank or signature bank the we were spared any of the associated destruction that many other growth companies have been dealing with in the past few weeks we expect these existing sources of liquidity to be sufficient funds the company's construction and development capital needs for the next twelve months we also anticipate that significant capital continues to be available for deployment in the arms you space as a new republic company we are very focus on how best to attract long term investors the team continues to believe that the most powerful way to do this is to deploy capital effectively and demonstrably grow earnings power before turning the call over for and i'd like to discuss or twenty twenty three guidance i will note that all guidance is current as of the publicity is subject to change and we undertake no obligation to update it as adam noted earlier we anticipate are full year twenty twenty three adjusted even that guidance reigns to the eighty five million to ninety five million which is based on are expected range of orange production in twenty twenty three of three point two million to three point six million and then you to use or just even the outlook is predicated on several to the pricing assumptions such as to twenty five per gallon for the three read ninety dollars for time lcs credit price of three dollars for be to you broadcast this quarter we also included detail on the impact of commodity price changes to our full your revenue and adjusted either that outlook we expect and approximately eight million dollar change to twenty twenty three adjusted ebitda for each twenty five cents per gallon change and be driven price a one point four million dollar change for every fifty cent for mndp you change and natural gas price and a four hundred thousand dollar change for every ten dollar per metric tons change in lcs credit price we are also updating our guidance for our portion of capital expenditures excluding acquisition costs and then have any partner capital contribution to two hundred twenty million to two hundred forty million dollars our guidance doesn't include some assumptions about the amount of i see see we can monetize and twenty twenty three that we await like everyone else who follows the rnc space definitive guidance from treasury so our specific disclosure will be limited until we have that clarity all of our our you're a benefits will be recognized this info likely and other info but a reminder that these are real cash proceeds not just cast tax avoidance has to the recognition is income which is expected to continue for at least five years as a reminder in accordance with gap a se sixty six we can only recognize revenue and the related earnings from environmental attributes once they are sold few transferred and accepted by the counterparty we present the value of georgia and unfold environmental attributes and part of adjusted either that to allow the reader to understand the value and timing of production we will continue to report or just it either die with visibility as to stored gasping credit as we anticipate only selling a minority of our production in the first half of twenty twenty three while we await keep us updated rb oh as a result revenue and net income will be lower for the first half of the year with twenty twenty three results being skewed to the latter half of the year again the either touch even adjustment is intended to level like this report it and that inventory produced within the period costs the recognized finally going forward for twenty twenty three we will be presenting the revenues and expenses associated with cnc hauling business in fuel stations services as noted earlier uncle owns and operates and number of dispensing stations where we dispense the fuel and service the location for a customer this activity he had been reported in the orange you feel segment in twenty twenty two and higher period going forward we will include this is a fuel efficient services segment to better differentiate between the business activities and value drivers in the upstream and downstream portions of our business and facility easier comparisons to peers in our space adding to that although we are labeled as a merchant played due to exposure to the volatility inherent in environmental attributes there are several earning stream in this business that the oven volatility a renewable power business is predominantly contracted under long term power purchase agreements the fuel stations services business is profitable and growing supported by ten year contracts both service and fuel supply agreements as well as construction revenue from stations we build which provides visibility out for roughly twelve months the net effect of these two key business segments provides recurring stable earnings and has well which dampens our overall corporate volatility from changing environmental credit markets
spk_9: with that alternate back to charge and out and for concluding remarks
spk_2: thank you
spk_5: it says a we believe our future is bright we continue to add new projects at their flaws explore development any into appalachians with accelerating late and gas production and distribution getting laid around continue to lead into the sector
spk_3: the continued to kill refilled atheists vertically integrated mission to build and operate destined class energy facilities that the little industry leading reliably and cost effective orgy solutions to just play status your and mitigate climate change
spk_10: and without altering the towel over to the operators with you and i thank you all for your interest in officials
spk_0: thank you again later in germany like as a question please for star one one on your telephone again to ask a question please post star on one
spk_11: our first question cause of death with phyllis people ulan is open
spk_12: i remember when oil
spk_3: yes hello good morning autograph on successful first years of public company certainly in a difficult operating on it
spk_12: for my first question of one of the leaning into you're prepared comments on the progression of your backlog both near term and medium term for twenty twenty three of it appears that emerald william ancestor products are all progress in along schedule you wait on keys three looking beyond me twenty three
spk_5: we did you play some parameters on the amount of product capacity from your advanced development pipeline that could be placed in production and twenty twenty four based on improving operating conditions are experiencing
spk_13: one hundred dollars sure
spk_14: yeah so we have
spk_13: there's little the pipeline
spk_15: or a million mm
spk_6: oh they played badly
spk_3: yeah for the or and as we continue into twenty twenty four v c r dairy products and v on ne left or project or replaced in the construction last year coming online
spk_6: because a large gap in and projects going into construction ah there will be fewer coming online next year the on that but the project that we face in the construction this her will go online in about eighteen months or so
spk_13: with the your average construction time frame from comments going to construction so you start seeing the ah gas production appeal after appeal bit slower so what's the gas from the projects that are going online this year and ten you in
spk_5: reduce our output
spk_6: on during twenty twenty three and twenty five for at those projects come online
spk_3: and then we'll see ah the on projects putting into construction this year start to contribute during the ah really for play twenty five or right by typing given that he'll have a bearing down obviously will have paid for your production twenty four on there on the yeah emerald project because in in a couple of months and you'll also get a for your output from on
spk_12: the too much india in the later half of this year that young really did a double growth and accelerates up production from twenty from twenty three to twenty four terrific color and then as my if i wanted to focus on the implications are the ira to your business african five thirteen and fourteen the arguably have more option allen your portfolio than ever before it's result of the irene as you assess your aren't he ran in hydrogen opportunities out as even pathway impact or be on the allocation of capital between aren't electricity with unity and at that time and likely your friend based on the growth at ease to to landfill gas and then more specifically for twenty twenty three guidance and you comment on the degree of identity
spk_3: embedded in you and your projections
spk_8: yeah i can handle the i to see one first and then i thought that a little bit about some of the regulatory stuff and both in terms iraq and even catholic yeah character is and and so as i had come and see if you know i think given the fact that we're still waiting for additional items from treasury which we expect
spk_4: because most likely due to ah were being a little circumspect attempted a specific account and details of what we've included in job to keep it off or i'll be on a here we are getting some underlying thousand probably about the project during construction and that was the of the this year but beyond that
spk_16: you know if it's point where we're not really ready to disclose much more than that
spk_3: yeah it's for and that of the other for this is adam i'm here are some of the other for the party stuff of that we see our are happening ah you know in addition to the i d c r which will get some clarity on were also expecting and twenty twenty three it's inquiry around the forty five be calculations and in how carbon intensity scores be allocated i'm in a we think that's going to be really impactful speak specifically for you know the headed negative see i'm kind of gasoline feel or clary to really get a better understanding of that on the here in path when we think is really interesting for business i and done you know opens up all sorts of incremental profitability ah for to the that an honor of the thing landfill gaps electric project and and how we think about some of the new project the golden opportunity that they open up our income you know is it is a little uncertain the finding a one in a finalized that rule on be i have received a number of comments back in february so we'll see ah whether or not because of that clarity and june when we do expect on you know perhaps are you look at your your volumes whether or not that's getting flu are finalized ruled on the earrings of that be swept into later twenty twenty three years we think about it from from a capital perspective on on what makes an orgy project versus a landfill gas electricity project on mean like how to be optionality for all these new and market their opening up a eventually whether or not the hydrogen or are quite frankly lot to export markets are opening up on some you like the idea i if we can see good job risk adjusted returns on capital for an orange a project to continue to deploy capital and how that flexibility of off take whether it be you don't you fix voluntary markets are strengthened voluntary market so on
spk_12: we see is be added the of our to our tour business overall and and avalanche or existing landfill gas electric project bodies without being from mental profitability without having to adopt new capital so you know we're we're excited about prospects for him and we'll see ah you know the time for for when the final battle
spk_17: and a scraping through town comments
spk_0: thank you one on the planet
spk_18: and it's questing house on a lot of ryan tired of piper family line of helping
spk_19: for thanks congrats on the result and let me i apologize and i a conflict in and miss them a year earlier comments i hope the i'm not sure if the address a minutes earlier in the call that yeah it's it's been it's a challenging stretch for for many an hour in the industry and a project execution getting volume delivered on time and budget in one of the have one of the biggest challenges for your the project x his anxiety and i have both and darien landfill and are those things improve in the egg can you talk about how maybe a part of the supply chain and your ability to gonna execute i knew significant backlog is improving
spk_5: going forward and and what what has improved definitive hey your your own is john more old on on all started this my dog
spk_13: i think we reported last four or that there was a
spk_6: a slowdown in execution of contract a movement out a way of those realize the value of the orange he in areas in italy a bills and each other major laugh though and and then he was always so the opera unity to relive that ah how they wanted to approach that value proposition
spk_3: ah so that resulted in of in a bit a delay but i think they're through that process and we're seeing a lot of movement through our a bathrobe and python and progress they are so ah you know conservatively we think that will put two million mm
spk_5: in the construction this year or overall pipeline we reported at a got it we think there's great opportunity to accelerate out but we want to stay conservative on the outside and really a update our
spk_19: projections and guidance to you as we execute on the others project enough
spk_13: and if there the other supply chains i have thing that is that it's problematic at this point or and had that moderated to a level that it's it's not an issue anymore no are around in terms of the acquiring of equipment
spk_5: there's been a little bit of saw on the time
spk_18: the attack with most anticipated and out there is so funny opportunity to get the equipment that we need to build our project so nothing material their that the we're seeing right
spk_20: great thanks maybe yeah
spk_19: had his shifting gears i am ill conversations with investors liquidity and your stock remains a challenge you know even for those that are that are positive on the story and the valuation and can you talk about when options you may have to address current liquidity in the stock with turner in a timeline my be a possible and in a how much you love of focus is this sawyer areas of an issue where we just have to grow the a bit on the in the earnings and
spk_4: you a move things along that our yeah this is it about a year and i will say we we are similar questions when we have our investor meetings
spk_3: we're the people are really positively are disposed orange and really like the awful story and and in may be on you obama would like to see more liquidity or stop ah of of only for a couple took away his one is on you know we don't need to do any primary sheriff's once we got enough liquidity and place and ah and capital raising plants and played to continue to execute on on our development pipeline southern there's no need to raise capital from a primary his friends from a secondary share issuance on you know i'd stay up like most management teams we feel are or shares die you know offer compelling valued your so i don't know there's a lot interest are currently on a secondary and people have any immediate plans in place on you know we do they get there could be some opportunities to increase the flow we have ah a smaller talk and acquisitions and perhaps i'm on the increase the putting up so that way i'm we are on iraq to spend you know continue ratchet up time spent with investors and analysts and and and think about the
spk_21: an analyst or after day later later and ear and we will be visible and and try and increase disability or both of you or on but we don't currently have anything on the table for either primary or secondary
spk_0: i read thank you thank you one moment please
spk_22: and next question comes from the line of matthew blair of to to katerina whole company allowed is open a good morning adam john and and an you're doing well pretty producer any thoughts on how que one is progressing think like you would have been in volume and that's a margin benefit from the start of the bio town very but then head when to lower the three rent prices as well as rolling off the locked in the three ran from from last year
spk_23: the that found about right is or anything else that we should be thinking about and in regards to one and at the states keep it if to any better
spk_24: is likely to be higher or lower court a record of
spk_4: still i didn't hear back and and other champions know obviously you which is reporting twenty twenty two years we've just an initial items will be important one is that you know college next time around six weeks or style
spk_8: the i think you know anything that you said there are i generally agree with coworkers after we are seeing gas production going in the right direction right it's growing ah the caviar thirty first of all i'll tell i'll we are a minority owner no are elite we will feed average pick up with else for that up his entourage direct control the second piece is and i've highlighted have my comments are you know or on our recent after that perspective we to be in the first half be year and will be a public minimal salary brave enough to
spk_16: managed to be assisting with the value of so our vehicles will be used to the latter half of twenty three ah you know
spk_4: you just important to keep those two things in mind
spk_1: ah and and we will continue you on as is to show the value of bookstore gas and unfolding carmel attributes as an just you just to keep his are against the people can see and of with and pending right to be my highest ah again for play the latter half of your youngest one of the
spk_22: all of them again other you don't really see for us to do that to be evil a match current theory expenses versus what the value of the or the gap that were producing holding an inventory and credit that we're meeting at all the inventory we do have our for current period expenses for all of that yeah that is produced the products that are a government and into so it's just the follow up on that the and and you for that result for be skewed the back half the year
spk_8: when he said that initially a tickets mean that your cashflows would be skewed that have the air but but it sounds like you're saying that that actually either
spk_3: with would be skewed that the right interpretation now we can we will be adding that and value enough to keep it on the monkey reporting it you know in each quarter of seventy or pointed out of house will be skewed toward for latter half of the year yeah and will show up and rest lower revenue the clarinet
spk_4: right exactly so when you when you are for your gaffe an operating income or he will be lowering the first out the second half and once we plan on on on monetizing about grins and in our it's you that's that's in in tory but for the from an adjusted ebitda basically it gets moved crap
spk_25: and ah map do oh okay
spk_6: added as well
spk_5: good morning to do you on all your that with the emerald project coming online been here you'll see a substantial pick up and on
spk_22: in gas in revenues and comedy that on a draft years from there okay that that's helpful and then
spk_13: follow up as if on the renewable power portfolio it looks like they were than half that where you're a get your contract what that renewed you talking about that and you view that as at the risk going forward but you
spk_5: ah so amount your job to go up or i'll take that will start this one off get out of a project that we have long term gas for i thought it was with me this alley and the municipality of the gas rice and in pursuant to it's term and the municipality decided that they wanted to
spk_6: take those girlfriends back remove the power project and what out the future later in life but it didn't know
spk_15: anything to do with our project other than the fact that they are i guess keeping their options open
spk_3: in terms of what their future
spk_5: and i think when you look across a portfolio and just looking at job here and we can follow up on i don't think without any gas rights or expiring
spk_26: don't know the you and your future
spk_6: very helpful thank you and i'll add to that that when we do renewable natural gas projects and we build these we get gas prices that are generally twenty years or longer with regard to those projects though
spk_15: the of that's kind of a legacy he ah
spk_4: renewable power pitcher
spk_27: are we have seen at the other projects going or in the near future yeah i would really considered our one off
spk_17: thank you
spk_0: one moment please
spk_28: i left question comes on a lot of martin malloy of johnson reiser lot of helping
spk_16: a good morning i had a crush on the caused by and relative to flood seven
spk_28: i'm with the revenue or of a landfill god dollar for him and beat you could you maybe and i realize with private coming online that a lot of movement around the clock died but you may be talk about
spk_3: where you'd expect to get you on the cause find comes a dollar from and beat you in the path towards getting there yeah different and year i'm ah i say i in general although there were some that escalated a utility costs in twenty twenty two and some other general or inflationary pressures are hard for him and he has not changed materially ah from from what we talk about previously on yeah over the high thing of it it's for our our costs of production on landfill and and call it somewhere in the low twenties on theory ah he and can you know we we are always trying to drive efficiencies in our business and on you're trying to maximize output of and and productivity of our plan
spk_28: ah so i'm not going to give you a specific target on on where we think we can get costs down to i'm like can you know we don't we don't see a lot of material changes from from where we've been at what we discussed historically
spk_17: thank you have her back
spk_0: they give one moment please
spk_29: i next question comes from the line of william gripping of you the actual eyes open
spk_26: great de sac good good to speak with y'all and and thanks for taking the questions
spk_8: i appreciate all the color that you've already provided a just have ah a couple may be more more modeling questions here but first i could you provide any any color on the sg and a that you have embedded in they adjusted even a guide for twenty twenty three
spk_16: i and i don't think we want to get to the level of detail and actually fighting it out adding there as you can imagine how you know first year public company i think we've tried to come out something that's down in appropriate and reasonable i don't wanna get to that one
spk_29: ppl you are right
spk_16: fair enough ah art so bad pivoting to bomb the he ran pathway just what are the the key developments that you need their care or expect that to come there to gain clarity on how impactful that could be for opal
spk_3: yeah for this is this is out of your i see from a super high level we have to see whether or not it's included in the final rule as a pathway right yeah they propose that you could use renewable power to be used as electricity other as transportation fuel cell first order of business are they going to include that as a pathway here in to ah the second order isn't any may delay it quite frankly i think of a lot of push and lot of momentum behind the putting it off that list we have a lot of questions around some of the mechanics that we need some clarity around which is what is the equivalency di i'm happy for him to the gonna die a sign for megawatt that you love our that he produce
spk_4: ah there's a little bit a mechanics around on ah who the wind generator will be i don't think that necessarily impacts the economic so much but people have like a questions over whether or not the auto am will be a generator catherine credit and and who needs to be assigned on the ask way or which is you know that entire
spk_3: i and he ran for the economics and get split up so i'm reading it's all about potentially really positive ah in there is also on the potential to take your are anti from a pipeline and in a potentially creates leave it to the a lot of little nuances in it ah and gun but those are typically the flavors some
spk_29: the level of what week from prison fire yeah
spk_17: our i appreciate it if not for me
spk_0: thank you i'm moment a place
spk_30: our next question cause when a lot of ryan think
spk_31: a be rally line is open
spk_16: a my guys
spk_3: maybe i'll just take one and aired going back to your comments around the multiyear rbl allowing for the potential of longer term contract or are those discussions happening today and why would be expected time frame for for entering into contracts like that yeah they're they're they're happening internally you directly with other run more
spk_32: what i'm working for two seconds i wouldn't really be gone be every real early yet would argue parties ah you know we would anticipate those kinds of things to potentially start happening once the lines are set ah so on or that some that we can report back on in the in the back out here
spk_17: gotcha thanks of there that
spk_0: thank you one moment please
spk_1: our next question cause an alarm clock three of toy brothers a lot of open
spk_3: i think you're taking questions on the so first met good you can help me understand it if there's a bio gas the power projects with a the long term ppl off to on how how does the he runs worked in that case what that is true the five years working with ppl those
spk_13: the off take around that or have has all that work
spk_33: for your percent on the vagina so
spk_13: the is buried
spk_5: i'm projects fine a carving die you hired to read or otherwise to the power purchase or and some dude
spk_34: and it'll papers were
spk_6: it has been a fight
spk_5: i am in the projects is potentially film
spk_35: material participate in this market will come as discussions with counterparties to substitute
spk_5: ah
spk_13: are you fired rinos for the renewable attributes from our jobs that will enable us to them don't even though so so it kind of a mixed bag out there but i would say that
spk_36: we feel our way to getting the majority of our renewable power into the here in atlanta
spk_2: right on
spk_37: and then are you you talked a couple times on this call about yellow the pick up a reassessment of landfill operators last year the things to be following along projects to move forward or with contracting on
spk_38: if they were reassessing the underlying value of our and g are in their footprint that does that mean for new contracts and projects that perhaps higher splits have to be afforded to the
spk_5: fight host
spk_13: i think all that took place over the course of the last year to and that of people that allowed as to one though right
spk_5: split on a b i think that the value has shifted lot of fun of that to do recognize up a most about it's taken place and you know that will still be some dynamic got there i think that
spk_6: that that halfway his own banks are getting more contracts
spk_4: final item spy and putting those projects in the construction in the near future he added that the hottest and a couple quick follow up there their one is are out of you know we haven't seen any any real a changes in in in royalty rates are that ah
spk_3: ah that that change sort of on your out help a lot of the force of that sort of thing so that that's positive arm and in interest for john's point there on you know we really do feel like we've gotten some of some be physically attracted getting these things crossed the finish line and job filling a little surprising for how one documentation can take a lot of these things like that either
spk_1: you know be to feel fiola a really good about where we're at today adverse events or maybe six months ago terms of moving of things through ah documentation
spk_37: thanks and really quick model in question if your banking ruins to sell potentially higher prices up the from rbl in the second half
spk_8: how do you assess the that the pricing at which you report that in your just to the the bar
spk_16: ah but i think we we shared with you kind of what are the options were interested guy
spk_39: armed and as we get through each quarter friendly kentucky lot of the probably will make an announcement around with what and looks like for the guys with that times and provide of the retested have any interest up there were much
spk_17: okay thank you
spk_0: thank one mom place
spk_12: our next question comes on alive deck with fill a fee for your line is open again wanted to ask the follow up on the last question and as he really to elaborate on the competitive landscape more broadly as you're wearing and noted with observed unprecedented levels of them in a for orange the assets of the last year
spk_40: with an increased focus more recently in the downstream side based on the pp travel centers potential acquisition and your view what are these transactions imply that the value of your business and how to the alter the competitive and operating environment for you
spk_41: seemingly there are less agile guys at the table right now
spk_16: versus pass periods
spk_3: yeah so i ah this is out of here i am i actually not as a pretty interesting acquisition that are that bp made they are and job
spk_16: yeah no i i think the really through is coming out we talk about an hour about the vertically integrated and were pricing power could be for for alternative fuels into the into the i'm into the i'm or classy industry and you know from from my perspective on and we've we've seen a
spk_3: couple of these other smaller private accounts three players as well get choir ah i'm i'm by other weeks or even fees we'd meet we feel it's a little bit of a validation of all of a sort of what we put together and grown organically and down you know i i think i think there are some interesting opportunities as as vertically
spk_4: rated player and dumb on you don't we'll see we'll see how that plays out you know historically ah you know deployment is industry has really been a for the up in a sort of a yeah a behind the as a model and educated fueling we think does his team leader angeles can open up ah awesome new opportunities with some and would just the fleet
spk_15: on the maybe there could be ways to our are you know or look at outlaw future deployments could be so on you know we and we have been you know obviously a lot of the m the activity on onto the us reproduction sizewell well ah so i'm you know yeah we feel like it's saw it interesting
spk_6: he threw for what we put the other girl the fewest a reminder to pay dirt a dad in general all the the pendulum continues to move towards the carbonization and the value of renewables to all continues to be central to go strategic fighters and out to a financial players as well as so we continue to see a lot of interest as i was saying earlier or i feel like you know country and the world of leading into this doctor and the and you continue to be a quarter after quarter as of companies are are making moves tours that the
spk_12: carbonization other to play in that in the future of the a tough decision for a lot of people make an end to find the right opportunities on of companies that are growing and attempts at the space really provide that the a opportunity
spk_0: examined job for your comments
spk_3: i sir
spk_0: thank you and shown no further questions can attend a call back out to adam for more for any college your mark
spk_16: thank you very much for your participation of of your all your twenty twenty two or is gone we look forward to continued engage in dialogue have every day
spk_0: thank you ladies and gentlemen the second quickly conference think you off because petting you may now disconnect have a great day
spk_42: we speak with i'm like well whoa
spk_0: me
spk_1: yeah have you a fourth quarter at all year twice when it's your earnings without half car at this time all because was originally most after the speak presentation they'll be a question and answer session that requested that time superstar one one of your telephone as remote as a car call is being recorded i've known from it comes to the host mr top as don't vice president of investor relations please go ahead like you and good morning everyone welcome to the other fuels fourth quarter and full year toy twenty two an uncomfortable
spk_2: let me today are cause ceos and camorra job more and any of the opo chief financial officer
spk_1: opal fuels released financial operating results for the fourth quarter and twelve months either data point on a few yesterday afternoon knows results are available on a better relations section of our website at oco fuel dot com the presentation and access to the web task for this call are also available on her website after completion others are a replay will be available for ninety days before we begin i'd like to remind you that i remarked on as conkling answers your question to tape or looking statements which have already on sundays and an assumption are looking for not against few performance an accurate results could differ materially from one it contained the for data from a practice that could cause or contribute to such differences or describing flight two or three of our presentation
spk_3: he's for like a famous reflect their views as of today card carnival fuel is not undertake any obligation not they for looking thing with reflect events or circumstances after the date of the cop additionally the call will contain discussion certain on got matter a clean the not limited to just leave it up a definition non governmental isn't a reconciliation the measures to the nearest gap measure included in the panic of the relief and presentation adam will begin to they fall by providing an overview of the or or results we can highlights in the update on executed an operational primary gun or don't give a commercial business development aid afterwards and well with the financial goals and folio twenty five for guide will then open up the car for question but now i was on the followed the and coral calcium vocal fuel thank you cause good morning everyone and thank you for being here for opal fuel fourth quarter and year and twenty twenty two earnings call twenty twenty two was a remarkable year for elbow fuel filled with many achievements for a company as well positive developments for the orange the industry as a whole we are proud of what we've accomplished and we remain steadfast in our focus on executing on our plan i'd like to highlight several point first we continue to execute on our strategic an operational priorities we believe are integrated platform is a powerful modeling delivering renewable low carbon orange even the marketplace strategically our goal is to continue to grow our orange the production and to maximize the guy that are and g which currently remains the us transportation fuel market as the high dive distribution operationally we remain committed to be the premier vertically integrated rg company in the industry one that excels at providing value to not only our shareholders but also our customers and partners importantly we think are visible and tangible growth profile is a differentiating factor in the marketplace we grew our orange the output by more than a third this past year as we just glows in our twenty twenty three outlook we expect grow to accelerate this year by greater than fifty percent over twenty twenty two two more than three point four million mm be used at the midpoint of our guidance or projects think construct your remain on track which provide visibility to accelerating production growth once again in twenty twenty four from twenty twenty three in addition to production or advance development pipeline continues to grow and mature and his job will touch on later we have seen some of the development delays from twenty twenty two e's and we expect to place at least two million mm beat use of output capacity into construction and twenty twenty three i want to touch on our vertical integration business model and our current views on environmental credit pricing we continue to believe our business model both maximize the value of are produced orange he and provides important flexibility and optionality in the future to capitalize on orange each challenge both new off take market and public policy initiatives as though the ball and strengthen you have transportation fuel market continues to be the highest i you off take averaging twice develop your fixed price contracts and again leave us the option of the future to explore new and markets and test incremental pricing power with flee customers would you get a lot of questions on this merchant model and and will speak later about some of our business segments you're facing services in renewable power and a long term contract and nature of those business segments which mute some of the volatility by remaining merchant on our orange he production having said that let's dive into some of the recent dynamics in both the three ring pricing and lcs credits on t three ring dynamics we see the recent drop in price been driven by the potential oversupply of say lasik eat three when volumes in the proposed that rule introduced by the p a in december of twenty twenty two with rule finalization expected to occur in june of this year this potential oversupply is driven by two factors continued growth in orange he production capacity and additional supply from the proposed earring pathway is important to note that open fields will see strong benefits from this even pathway as our existing are noble power stagnant will be able to participate and generates significant incremental rims without investing new capital we will be providing more clarity around this potential as the rules get finalized on the demand side of the three rings we remain optimistic that a p a r v o targets could be adjusted higher to account for both fail office supply additions as well as anticipated earring volumes as those rules become finalized it is the clear intent above the original or ff and proposed rule commentary to support and grow the seal off the category the original last stated the sail off at the three category was targeted to be sixteen billion the three rinse and e p admit it and he be a administration is meant to support growth up to that figure with updated industry production actual is over the past six months and demonstrated new supply growth coming on line the a p i had the support to raise volumes and is open the door for future reenactment of the waiver credit over the multiyear set period is important to remember why the line apia your so supportive of the sail off a category the source of this category of biofuels is capturing harmful methane emissions the single most important thing we can do to combat climate change another interesting feature of the proposed that role is a multiyear rvs we believe that feature made the up and volatility in the future and perhaps open up to the four year contracts for rinse now that obligated parties will have visibility into the volume obligations for multi year period so from our perspective we believe opal the ultimately create more value from existing and future projects from the earring pathway and structurally we may see new contracting opportunities from the multi year or the else even if outlook we are currently limiting our twenty twenty three rim sales in the first half of the year as rules are finalized and and will touch on later how that will roll through our financials and reporting as you see in our guide and if we have much less exposure the lcs pricing arsenault my project have been offered a contract with the floor one hundred dollars for credit and we have much less dairy production currently online versus landfill an lcs that we remain very optimistic on credit pricing and the direction that carb as intimated it is heading to on proposed program changes to be finalized over the balance of twenty twenty three for twenty twenty four carbon giving clear signals to the market they would like to encourage more investment by supporting pricing which will likely include stop stronger compliance targets creating incremental demand for lcs credit starting next year as we look to this year we are introducing or twenty twenty three adjusted ebitda gardens which we expect a range from eighty five to ninety five million or orange he production range from three point two to three point six million and then be to use and capital expenditures to range from two hundred and twenty to two hundred and forty mil i am an will provide more detail the we expect and eight million dollar change to twenty twenty three adjusted ebitda forever twenty five cents a gallon change and v three when prices we continue to benefit from some substantial and broad base developments in our industry first i'd like to provide some insight into how are thinking on the ira has evolved over the last several months while we still await the final guidance from treasury we are confident that the ip see provisions worldwide a landfill orange he projects that encompassing nearly all of our in construction and advanced development pipeline projects
spk_4: while we're still determining the exact level of i do you see benefit we have been in advance discussions with the appropriate advisors and counterparties to believe we will benefit significantly second the forty five the credits are set to be impact well as well and we expect clarity from treasury in the coming months on that front
spk_5: we expect to begin realizing these benefits and twenty twenty three and see them growing and twenty twenty four and throughout the next five years twenty twenty three of stuff to be a very good year for opal fuels the some degree a bit of a contrast from twenty twenty two and twenty twenty two we saw very good commodity environmental credit pricing that's awesome near term headwinds in the development of our new project pipeline in twenty twenty three we have begun the year with lower near term commodity and environmental credit pricing but see the positive momentum beginning with our new project development which is ultimately the long term value driver of our business with that alternative on john thank you adam a good morning everyone i'm gonna start out by saying that we are very status on executing are both plans he grew energy production nearly forty percent a twenty twenty two expect to grow by more than fifty percent this year
spk_1: a reconstruction portfolios timing is progressing it caters it is in line with our expectations he thinks that the that salary both into twenty twenty four
spk_5: during twenty twenty two are operating project portfolio increased from three to six projects and as seven that the just completed by a town very project in indiana in twenty twenty two we commissioned three landfill orange he projects in other words project in ohio
spk_3: our new river project in florida and the i dad project in minnesota is or eg projects represent one point six million mbt you have nameplate are easy ask me
spk_5: at all three of these little projects gas production continues to increase at the trash by is very crease in addition to our operating projects we currently have six orange he projects a construction with the by a child dairy rnc project having just entered operations as we said of effects we expect emerald to go online and the next several months
spk_6: prince william in the fall
spk_5: and staff fire lately ear okay dairy products we expect to be commission and early twenty twenty four and the northeast in fl later and twenty twenty four as out a measured expect production increases the this this year them are operating in infrastructure portfolio that are a line that are prior expectations with a three point four million mlb team need for your production guys being a fifty seven percent increase the care to rg production and twenty twenty two i want to pick up on what out and mentioned earlier of about development conditions easy the good news is that the project development logjam is breaking and conditions are improving in terms of moving projects forward the cared with last year the call that we describe how last year with presented a number of challenges which tended to delay projects at landfill owners assessed a substantial market dynamics surrounding the value of their rg resource he provided the color on this topic of a third quarter call fast for to today it we're already seeing improvements the his speed and acceleration of executed agreements for gas rights and for construction contracts and that this expel ration should translate into breathy projects stronger advanced at all the pipeline more quickly and placing project under construction as we progress through the year it's we last recorded without a over open eight million and then be to your biogas gas our advanced velvet pipeline most of which is landfill but also contains dairy and food waste project these projects are ones that we have qualified and that be reasonably expect can be in to construct can within the next twelve to eighteen months i'd also reminds us that our gas development pipeline does not include other earlier stage projects which we continue to evaluate as one of the largest rg fires in the sector weekend has been most of the project in the marketplace all of which makes our pipeline dynamic a growing as we scream for the best opportunities our overall development funneled continued to stay positive momentum and provides opportunities in excess of what qualifies as our pants development pipeline was on track to commit construction of fifty three fueling station this year practically twenty four opal fuels and sanctions and another twenty six with third parties our overall orange a fuel dispensing volumes are expected to grow to approximately fifty five million gallons this year from nearly thirty million gallons and twenty twenty two
spk_2: in terms of are lethal gas or electric projects opal fuels owns and operates night team landfill gas will actor projects representing about a hundred and forty four megawatts of nameplate capacity
spk_6: all that we began developing this portfolio twenty five years ago back in nineteen ninety eight or six of these projects or candidates for conversion to our energy projects
spk_5: the majority will remain electric projects bp a recently proposed iran's halfway gas to substantially increase the value of these projects adding over three hundred dollars per megawatt hour gross to the existing values of these projects which has the potential to substantially increase be a bit off from this is the stagnant depending on here sharing and when price we await updated guidance from the a on this topic which is which is expected in the next few months in the meantime your positioning ourselves to meet this market opportunity by continuing discussions with auto manufacturers or proposed to create these earrings through the easy data that they collect as we highlighted early on continued industry consolidation remains a significant tell when for the rg industry and certainly or opal fuels it highlights reset upstream and downstream transactions that acted as addition to existing upswing infrastructure
spk_8: we think those acquisitions tend to sort have industry players are thinking about the value of integration some of the thinking driving the consolidation the balls around have demand expectations for our energy are expected to shift over the next several years
spk_3: already seen the beginning of this trend with demand growth from utilities in the form of rg mandates for power generation as well as increasing demand and european and markets and many expect increasing demand coming from asia too
spk_8: separately hydrogen producers are speaking low carbon suit sources of renewable methane and our portfolio production asset than fueling stations his wealth position to take advantage of that market news for on now turn over the call to and to discuss our fourth quarter and year and financial results as thank you john and good morning to other participants onto they call last night we filed our earnings press release which detailed or quarterly and year and results for the period ending december thirty first twenty twenty fifth we anticipate filing are tank hey in the next day or now with a strong growth in to of our three the fragment orange peel off and fuel station services the biggest driver of the quarter and year to date result is orange he feels where we're starting to see the contribution from the arms you projects that have come online and twenty twenty two we saw strong top line growth for the fourth quarter with revenue up forty two percent year over year driven primarily by higher volumes produced and sold in the orange peel segment as well as higher prices for brown gas and higher rims under for would fail contracts we had entered into earlier and twenty twenty two these benefits were partially offset by higher cost of sales it to electric utility costs and employee costs to support our growth as well as higher royalties driven by higher energy revenues dna costs for the fourth quarter of a fourteen million dollars reflecting transaction and other costs of which ten million dollar ours is considered one time as a result we generated net income in the fourth quarter of thirty two million dollars for the full year twenty twenty two before considering the impact of preferred dividends we achieved that income of thirty two point six million dollars reflecting the scandal and results for open field llc and arc light clean transition corp to through the closing of our business combination last july twenty first floor was a combined operations sense that consistent with the results we saw in the fourth quarter we benefited from pricing for environmental attributes that we had left can be a forward still early and twenty twenty two coupled with higher commodity prices looking at fourth quarter results compared to the third quarter or mg production remain confident of point six million mm be to use which represents volumes net over fuel adjusted eat it all with twenty point one million in the fourth quarter first of twenty five point five million in the third quarter the difference with primarily the result of the previously disclosed three million dollar gain from the by town debt and associated with monetizing and in the money lcs asked you often concert we often few experiences seasonality with some of our downstream fueling customers the see heavier volumes in the summer months along with them finding associated with downstream fuel station construction contract we reported adjusted ebitda a twenty point two million dollars for the fourth quarter and sixty point seven million for the twelve months ended december thirty first twenty twenty two adjusted ebitda benefited from the same drivers we discussed above higher environmental attribute pricing and commodity pricing offset by higher cost of sales and higher royalties fourth quarter adjusted ebitda excludes several one time items including an unrealized loss related to our warrant exchange we completed in december we also had a number of one time costs related to go in public that occurred during the fourth quarter and threw out twenty twenty two which are excluded from adjusted either job as of december thirty first we had one hundred sixty seven point eight million dollars did outstanding borrowings net of the first financing costs including ninety four point three million about standing borrowings under term loan a twenty eight point five million related to the remaining amount of the convertible know we had issues aries for the acquisition of the imperial great and greentree projects and twenty twenty one twenty two point one million under the snow alone and twenty two point eight million related for renewable power project financing our second term loan which we closed in august and which will finance a portfolio of our mg projects that are was shortly will be in construction remains hundred as into since december thirty first a liquidity position with two hundred fifty seven point two million dollars including forty point four million cash and cash equivalents thirty six point eight million of restricted cash sixty five million a short term investments and one hundred fifteen million of under on capacity under our time loans we did recently draw down the final ten million dollars remaining under tomlin one i will also note that we did not have any exposure to either silicon valley bank or signature bank so we were spared any of the associated distraction that many other growth companies have been dealing with in the past few weeks we expect these existing sources of liquidity to be sufficient funds the company's construction and development capital needs for the next twelve months we also anticipate that significant capital continues to be available for deployment in the arms you space as a new republic company we are very focus on how best to attract long term investors the opium team continues to believe that the most powerful way to do this is to deploy capital effectively and demonstrably grow earnings power before turning the call over for today i'd like to discuss or twenty twenty three guidance i will note that all guidance is current as of the publicity is subject to change and we undertake no obligation to update it as adam noted earlier we anticipate are full year twenty twenty three adjusted ebitda guidance range to the eighty five million to ninety five million which is based on are expected range of orange production in twenty twenty three of three point two million to three point six million and then be to use or adjusted either that outlook is predicated on several key pricing assumptions such as to twenty five per gallon for the three read ninety dollars for time lcs credit price and three dollars for mbt to you brown this quarter we also included detail on the impact of commodity price hinges to our full your revenue and adjusted either that outlook we expect and approximately eight million dollar change to twenty twenty three adjusted ebitda for each twenty five cents per gallon change indeed rerun price a one point four million dollar change for every fifty cent for be to you change and natural gas price and a four hundred thousand dollar change for every ten dollar for metric tons change in lcs credit price we are also updating our guidance for our portion of capital expenditures excluding acquisition costs and then have any partner capital contribution to two hundred twenty million to two hundred forty million dollars our guidance doesn't include some assumptions about the amount of i see see we can monetize and twenty twenty three that we await like everyone else who follows the rnc space definitive guidance from treasury so our specific disclosure will be limited until we have that clarity all of our our you're a benefits will be recognized does income likely and other info but a reminder that these are real cast proceeds not just cast tax avoidance hence the recognition is income which is expected to continue for at least five years as a reminder in accordance with gap a or six or six we can only recognize revenue and the related earnings from environmental attributes once they are sold to transfer and accepted by the counterparty we present the value of georgia and unfold environmental attributes of part of the tested either that to allow the read or to understand the value and timing of production we will continue to report are just as either die with visibility as to stored gas and credit as we anticipate only selling a minority of our production in the first half of twenty twenty three while we await keep us updated or oh as a result revenue and net income will be lower for the first half of the year with twenty twenty three results been skewed to the latter half of the year again the either touch even are adjusted is intended to level eyes this record it and match inventory produced within the period costs the recognized finally going forward for twenty twenty three we will be presenting the revenues and expenses associated with our cnc hauling business in fuel stations services as noted earlier uncle owns and operates and number of dispensing stations where we dispense the fuel and service the location for a customer this activity he had been reported in the arms you feel segment in twenty twenty two and higher periods going forward we will include this is a fuel efficient service the segment to better differentiate between the business activities and value drivers in the upstream and downstream fortunate of our business and facilitate easier comparisons to peers in our space
spk_9: adding to that although we are labeled as a merchant played due to exposure to the volatility inherent in environmental attributes there are several earning stream in this business that the oven volatility
spk_5: a renewable power business is predominantly contracted under long term power purchase agreements the fuel stations services business is profitable and growing supported by ten year contract both service and fuel supply agreement as well if construction revenue from stations we build which provides visibility out for roughly twelve months the net effect of these two few business segments provides recurring
spk_3: stable earnings and has well which dampens our overall corporate volatility from changing environmental credit markets
spk_1: with that alternate back to charge and out and for concluding remarks
spk_3: thank you
spk_0: it says a we believe our future is bright we can send you to add new projects at their flaws explore development any into appalachians with accelerating late and gas production and distribution right around at continues to lean into this factor
spk_11: we're continuing to carry forward opals vertically integrated mission to build and operate best in class or energy facilities
spk_12: that deliver industry leading reliable and cost effective rg solutions to display fossil fuel and mitigate climate change
spk_3: and with adults are in the fall over to the operator for q and i thank you all for your interest in opal fuels
spk_12: thank you again later the jamaican like ask the question please by star one one on your telephone again half a question please press on one
spk_5: our first question council gag when felicity for ulan it's helping
spk_13: patty mills when oil
spk_6: yes hello good morning on congrats on a successful first years a public company and certainly in a difficult operating environment
spk_4: test for my first question i wanted to win in and to prepared comments on the progression of your backlog both near term and medium term for twenty twenty three it it appears that emerald william and staff are particular are progressing along the schedule you laid on keys three looking be on twenty one
spk_3: he three did you play some parameters on the amount of product capacity from your advance development pipeline that could be placed in production in twenty twenty four based on improving operating conditions are experiencing
spk_6: manager i got sure
spk_4: yeah so we have a
spk_15: there's an element pipeline of a little over a million mmp to use of deadly fast the of of gasoline or and as we continue into twenty twenty four b c r dairy products and be on ne were still project
spk_6: daddy placed under construction last year coming online
spk_5: because i'm like out again and projects going into construction ah there will be fewer coming online next year the on that but the project that we in the construction this year will go online in about eighteen months or so
spk_3: go with the your average construction time frame from commands for the construction starts the the gas production a be a little faster to be a slower so what's the gas from the projects that are going online this year continue to him
spk_4: increase our out that on during twenty twenty three and twenty five four of those projects come my life
spk_12: and then i was be ah the project putting into construction this year start to contribute during the ah really to play twenty five or twenty twenty five time for you
spk_3: daniel the out there is some obviously will help pay for your production twenty four on there on the yeah emerald project because in in a couple of months and you'll also get a for your output from i'm not too much in here in the later half of this year that's that
spk_4: the oh really did a double growth in accelerate stop production from twice from twenty three to twenty four
spk_43: terrific color and then as my follow if i wanted to focus on the implications as the ira a to your business everything flights thirteen and fourteen the arguably have more option allen your portfolio than ever before it's result of the irene
spk_4: as you assess your orange he ran in hydrogen opportunities how does he even pathway impact or be on the allocation of capital between aren't electricity with the in at a time and likely your friend based on the girl that he these i wanted to landfill gas and then more specifically for twenty twenty three guidance
spk_16: can you comment on the degree of i the embedded in you and your projections
spk_3: yeah i can handle the i to see one first and then i thought that a little bit about some of the regulatory stuff and both in terms iraq and even catholic yeah it is and and so as i had come and see if you know i think given the fact that we're still waiting for additional items from treasury which we expect a most likely it's you to are looking a little sir competitors did a specific amount and details of what we've included in the top where i see the ah we are making some underlying assumption about the project during construction and that was the of the this year but beyond that you know i think at this point where we're not really ready to disclose much more than that yeah it's for advance of the other for this is and i'm here are some of the another party stuff of that me see our are happening ah you know in addition to the i see see our on which will get some clarity on were also expecting and twenty twenty three it's inquiry around the forty five be calculations and in our carbon intensity scores be allocated it i'm in a we think that's going to be really impactful spit specifically for oh you know the have negative see i'm kind of gasoline zealand or clarice or to really get a better understanding on that on be here in fact when we think is really interesting for business i and done he opens up all sorts of incremental profitability ah for to either on to existing landfill yeah
spk_12: two electric project and in how we think about from the new project the golden opportunity that they open up our dumb you know is it is a little uncertain the finding a one in a finalized that rule on be a p i had received a number of comments back in february so we'll see ah whether or not the you
spk_17: that clarity in june when we do expect on you know perhaps of you look at your your volumes whether a lot that's getting flu are finalized more than the earrings or that be slipping into leader and twenty twenty three nights we think about it from from a capital perspective on on what makes rg project curses a landfill gas electric
spk_0: the project i'm like having the option out a fraud is the one market their opening up a eventually whether or not the hydrogen or are quite frankly lot to export markets are opening up on some you like the idea i if we can see good job risk adjusted returns on capital for an orange a project to continue to deploy capital and have
spk_18: the flexibility of off a whether it be you don't you fix voluntary markets are strengthened altering market so i'm
spk_19: we speak out of the of our to our tour business overall an anomaly or existing landfill gas electric projects on without being for mental profitability without having to that new capital so on you know we're we're excited about prospects oregon and we'll see ah you know the time for for when they find like little and that's great thing through town comments thank you one mama plants alex questing house on a line of ryan tired of piper family lot of open hey thanks
spk_5: congrats on the result and let me i apologize enter a conflict in and miss him a year earlier comments i hope the a measure of you address the minutes earlier in the call that ah it's it's been it's a challenging stretch for for many in are in the industry interns a project execution getting volume delivering on time and budget
spk_13: in what does that would have been the biggest challenges for you and projects project executions inside in i as both and darien landfill and that are those things improve in the egg can you talk about how maybe you a parts of the supply chain and your ability to gonna execute i knew significant backlog is improving
spk_6: going forward and and what what has improved funny hey your your own it's it's own moral of on on all started to spot on
spk_3: i think we reported last four or that
spk_5: there was a
spk_19: a slowdown in execution of contract the movement through the pipeline as my of those realize the value of the orange he inherited him into landfills and each other major landfills and and then he was always thought the offer to
spk_16: unity to realize that ah how they wanted to approach that value proposition
spk_5: ah so that resulted in other in a bit a delay but i think they're through that process and we're seeing a lot of movement through our gas development pipeline and progress they are so ah you know conservatively we think that will put two million mm meet you in
spk_19: construction this year or overall pipeline we've reported at eight nadia we think there's great opportunity to accelerate out but we want to stay conservative on the of that and really a up the are projections and guidance to you as we execute on the other projects enough
spk_44: and if they're the other supply chains i have thing that is that it's problematic at this point or and had that moderated to a level that it's it's not an issue anymore no are around in terms of acquiring a quick man
spk_4: there's been a little bit of a saw on the time
spk_3: the attack that most anticipated and out there's plenty of opportunity to get the if i felt that we need to build our projects up nothing material their that the we're seeing right
spk_4: i thanks maybe i had him shifting gears i am ill commentators or investor and liquidity and your stock remains a challenge in our even for those that are that are positive on the story and the valuation and can you talk about what options you may have to address yes current liquidity in the stock with turner in a timeline might be a possible and in a how much you love of focus is this or areas as an issue where we just have to grow the a bit on the in the earnings and
spk_3: in a move things along that way yeah this is it the that and here and i will say we we hear similar questions when we have that investigating
spk_21: we're the hell people are really positively or disposed rnc in really like your story and and in the be on the lot would like to see more liquidity or stop ah of our only for a couple took away his one is on you know we don't need to do any primary sheriff's once we got enough liquidity in place and ah and
spk_0: capital raising plants and played to continue to execute on on our development pipeline southern there's no need to raise our capital from a primary share his friends from a secondary share she wince on you know i'd say up like most management teams we feel are or shares die you know offer compelling valued your so i don't know if there's a lot interest
spk_22: currently on a secondary and people have any immediate plans in place on you know we do think that there could be some opportunities to increase the flow we have ah a smaller talk and acquisitions and perhaps i'm on the increase liquidity upload that way i'm we are on eleven defender you know continue ratchet a time spent with investors and analysts and and and think about the and had western after day later later in ear so we will be visible in and try and increase visibility about of your arms but we don't currently have anything on the table for either primary or secondary
spk_23: i got friend thank you
spk_24: thank you one moment please
spk_8: i next question comes on the line of mackey blair have to pick arena whole company line is open
spk_4: a good morning adam john and and an of you're doing well
spk_8: could you share any thoughts on how que one is progressing think like you would have fun in volume and has a margin benefit from the start of the bio town very but then head when from lower d three rent prices as well as is rolling off the locked in the three ran from from last year the that found about right is there anything else that we should be thinking about in in regards to one and at the stage keep a if if she when a better
spk_4: likely to be higher or lower court a record of
spk_1: so i did he find another contempt then obviously i'm in which is reporting
spk_22: you here and we've given initial guy and will be important one in that you know college six weeks or out on i think you know anything that you said there ah i generally agree with carcass after we are seeing as production going in the right direction rape it's growing ah the caviar thirty first of all i'll town or we are a minority owner no are illegal speed at which pick up in our without for that of his to direct control the second piece is and i highlighted have my comments ah you know or from that recent health perspective we anticipate in the first half the year and will be a if minimal dollars trying to do not managed to visit but the cbc value of so our results will be skews to the latter half of twenty three ah no i think it's important to keep those two things in mind
spk_24: ah and and we will continue you know on that is to show the value of bookstore gas and unfolding are attributes as an adjustment you would just to keep his audience of people can see and of with pending right to be monetized ah again for flee the latter half of the or yeah this one of
spk_3: all of them again and you don't really see for us to do that to be able to match current theory expenses versus what the value of the of the gap that were producing holding an inventory and credit that were missing and holding it inventory we do have our or current period expenses for all of that yeah that is for the credit or during it
spk_4: so just the follow up on that
spk_25: the am and you for that result for be skewed the back half the year
spk_5: when when he said that initially i tickets mean that your cashflows would be futile back have the year but but it sounds like you're saying that that actually either
spk_4: with would be skewed that the right interpretation
spk_6: yeah we can be will be adding that and now you enough to keep it on the wonky reporting it you know any sport or art seventy or pointed out of house will be geared towards glad i'm here yeah and will show up in rest mode revenue the current
spk_45: right exactly so when you when you are for your gaffe an operating income or he will be lower the first half the second half and once we plan on on on monetizing about rinse and in our it's he that's that's an inventory by further from an atrocity bit a says he gets moved out crap
spk_22: and map do oh okay
spk_13: added as well
spk_5: the boy to do you have all your doubt with the emerald project coming online didn't here you'll see a substantial pick up in on it's in gas in revenues income you did on a draft the response from them
spk_6: okay that that's helpful and then
spk_16: follow up as the from the renewable power portfolio and looks like they're with than half that where you're a against your contract with that renewed you talking about that and you view that as as the risk going forward but you
spk_5: ah so amount you jot go up or i'll take that will start is one off
spk_26: i'm gonna have a project that we have long term gas for i thought it was with me this alley and the municipality up the gaff right
spk_6: and did pursuant to it's term and the municipality decided that they wanted to
spk_5: take those girlfriends back remember the power project and what out the future later in life but it didn't know
spk_15: anything to do with our project other than the fact that they are i guess keeping their options open in terms of what their future my a vaccine when you look across a portfolio i'm just looking at john here and we can follow up on and off it without any gas rights
spk_4: ah expiring
spk_27: don't know how you and your future
spk_0: very helpful thank you
spk_28: and i'll add to that that when we do renewable natural gas projects and we build these we get gas prices that are generally twenty years or longer with regard to those projects though
spk_16: the of deaths are you have a legacy ah
spk_28: renewable power pitcher
spk_3: are we have been acting other projects going toward in the near future yeah i would really considered our fallen off thank you one on the place or next question comes on a lot of martin malloy of johnson or i shall and is open
spk_28: a good morning i had a question the cost by and welcome to slide seven
spk_17: i'm with the revenue or for landfill gas dollar for him and beat you could you maybe and i realize with private funding or of a lot of movement round the clock died but you may be talk about
spk_0: where you'd expect to get to on the part time comes a dollar from to you and the path towards getting there
spk_29: yeah this is our year i'm ah i say i in general although there were some that escalated a utility costs in twenty twenty two and some other general or inflationary pressures are hard for him and even has not changed materially from from what we talk about previously on you
spk_26: respond the high single digits for our our costs of production on landfill and and college somewhere in the low twenties on theory ah can can you know we we are always trying to drive efficiencies in our business and on you're trying to maximize output of and and productivity of our plan
spk_8: ah so i'm not going to give you a specific target on on where we think we can get caught down to i'm like can you know we don't we don't see a lot of material changes from from where we finish what we discussed start with
spk_29: thank you have her back they give one mana plan alex question comes from the line of william gripping of you be asinine eyes open
spk_16: great i sat good good to speak with y'all and and thanks for taking a question
spk_3: appreciate all the color that you've already provided a just have a couple maybe more more modeling questions here but first i could you provide any any color on the sg and a that you have embedded in they adjusted even a guide for twenty twenty three this is i don't think that we want to get to the level of detail and actually find it is hoped out there as you can imagine you know first year public company i think we've tried to come about something that stone is appropriate and reasonable i don't want to get to that level of detail fair enough ah art so dogs pivoting to rom
spk_29: the earring pathway just what are the the key developments that you need their to or expect
spk_17: to come there to gain clarity on how impactful that could be for opal
spk_0: yeah so this is this is and your i see from a super high level we have to see whether or not it's included in the final rule as a pathway
spk_30: right now they propose that you could use renewable power to be used as electricity other as transportation fuel cell first order of business are they get include that as a pathway here into a second order it any made the life quite frankly i think there's a lot of push and a lot of momentum behind the putting it off but it's true
spk_31: a lot of questions around some of the mechanics that we need some clarity around which is what is the equivalency di family's been to the unified a sign for megawatt that you love that you produce ah there's a little bit the mechanics around on ah who the wind generator will be i don't think that necessarily impacts the economic so much
spk_16: but people have like a questions over whether or not the auto you will be a your catherine credit and then who needs to be assigned on the way which is you know that entire guy he ran for how the economics and get split up so i'm meeting it's all about potentially really positive ah in there
spk_3: also on the potential to take your orange already from a pipeline and in a potentially creeps me ritalin a lot of little nuances in it ah and get on but those are typically the flavors of the high level of while weeks and prison player you
spk_32: our i appreciated that not for me
spk_17: thank you i'm on please place
spk_0: our next question comes from a lot of ryan think
spk_1: at the rally line is open
spk_3: and my guys
spk_13: maybe i'll just take one and iraq going back to your comments around the multiyear rbl allowing for the potential of longer term contract or are those discussions happening today and and while would be expected time frame for entering into contracts like that yeah they're they're they're happening internationally they're happening with other round
spk_3: more for i'm market for ten seconds i wouldn't believe be gone in a real earnest yet would the parties ah you know we would anticipate those kinds of things to potentially start happening once the lines are set ah so on or that some that we can report back on in the in the back out of here
spk_5: gotcha thanks of her back thank you one moment please
spk_34: our next question cause an alarm clock three of toy brothers a lot of open
spk_1: i think you're taking questions on the so first met could you can help me understand that if there's a bio gas the power project with a the long term ppl off to on how how does the iran's worked in that case what that is to the five years working with ppl those
spk_35: the off take around own that or how has all that work
spk_1: are three percent on the zone so
spk_5: the is buried phones and projects
spk_36: fine the current value pilot for rest or otherwise to the power purchase dirt and some dude
spk_1: ah and your papers were
spk_37: it has in a fight
spk_36: i am and the projects is potentially kill material or suspended as market will come as discussions with our parties to substitute
spk_38: oh
spk_5: are you fired rinos for the renewable attributes from our jobs that will enable us to them don't even go so so it kind of a mixed bag out there but i would say that
spk_13: we feel way to during the majority of our renewable power into the red
spk_5: great on and then are you you talked a couple times on this call about yellow the
spk_3: pick up a reassessment with landfill operators last year the things to be buying alone projects to move forward or with contracting on
spk_4: if they were reassessing the underlying value of our and g are in their footprint that does that mean for new contracts and project that perhaps higher split south be afforded to the
spk_3: five host i think all down to play over the course of the last year to and that of people settled out of to one though right
spk_1: split on a b i think that the value has shifted somewhat else a about to do recognize other most to add a state of play and you know that will still be some dynamic got there i think that
spk_37: that that halfway his own banks are getting more track
spk_8: final item spy and putting those projects in the construction in the near future he added this is and the hottest under to coupled with fall of they are one is are out of you know we haven't seen any any real of changes in in in royalty rates are that
spk_39: ah that that change sort of your out help a lot of the force of that sort of thing so that that positive arm and in inches pigeons point there on you know we really do feel like we've gotten some of them be physically attracted getting these things across the finish line and job filling a little surprising for how
spk_17: one documentation can take on lot of these things like that either
spk_0: you know be to feel of a really good about where we're at today other students or maybe six months ago terms a movie those things through ah documentation
spk_12: thanks and really quick model and question if your banking ruins to sell it potentially higher prices up the from our the own the second half how do you assess the that the pricing at which you report that in your just to the the doll ah but i think we we shared with you kind of what our assumptions were in terms that guy an armed and as we get through each quarter
spk_40: because kentucky lot of the public will make an assumption around with that present looks like up for the guy with times and provided updated sensitivity interested in a remark
spk_41: okay thank you
spk_16: thank you one mom place
spk_3: our next question comes on alive deck with phil of people your line is open again when to ask the follow up on the last question and he really to elaborate on the competitive landscape more broadly as you're wearing and noted with observed unprecedented levels of them in a for orange the assets of the last year with an increased focus more recently in the downstream side based on the bp travel centers potential acquisition in your view what are these transactions imply that the value of your business and how to the alter the competitive and operating environment for you
spk_8: seemingly there are less agile guys at the table right now
spk_6: versus pass period
spk_5: yeah so i ah this is out of here i am i actually not as a pretty interesting acquisition that are that bp made they are and
spk_6: yeah no i i think the read through his you know coming out we talk about an hour about the vertically integrated and were pricing power could be for for alternative fuels into the into the i'm into the i'm in a sort of classy industry and you know from from my perspective on and week we see the
spk_12: couple of these other smaller private down three players as well get choir ah
spk_46: i'm by other meats or even fees we we we feel it's a little bit of validation of all of a sort of what we put together and grown organically and down you know i i think i think there are some interesting opportunities as as vertically integrated player and dumb on you know we'll see we'll see how that plays out you know
spk_0: historically ah you know deployment is industry has really been a the up in a sort of a yeah up behind the as a model and executive fueling we can get his team leader angeles can open up ah awesome new opportunities with some trucking and would just the fleet on the immediate of could be ways to our are you know
spk_3: outlook it out due to the point is could be so on you know we and we have seen you know obviously a lot of the the activity on under the us reproduction sizewell well ah so on you know yeah we feel like it's an interesting read through for what we put the other journal fuels and if i can just pay dirt
spk_0: in general that the pendulum continues to move towards decarbonization and the value of read about available to all continues to be central to those strategic fires and now to ah nfl players as well
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