OPAL Fuels Inc.

Good morning and welcome to the Opal Fuels second quarter 2024 earnings call and webcast. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you'll need to press star 1-1 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 1-1 again. As a reminder, this event is being recorded. I would now like to turn the call over to Todd Firestone, Vice President of Investor Relations, to begin. Please go ahead.

Thank you, and good morning, everyone. Welcome to the Opal Fuels second quarter 2024 earnings conference call. With me today are co-CEOs Adam Kimura and John Zamora, and Scott Contino, Opal's interim chief financial officer. Opal Fuels released financial and operating results for the second quarter of 2024 yesterday afternoon. And those results are available on the investor relations section of our website at opalfuels.com. The presentation and access to the webcast for this call are also available on our website. After completion of today's call, a replay will be available for 90 days. Before we begin, I'd like to remind you that our remarks, including answers to your questions, contain forward-looking statements, which involve risks, uncertainties, and assumptions. Forward-looking statements are not a guarantee of performance and actual results. could differ materially from what is contained in such statements. Several factors that could cause or contribute to such differences are described on slides two and three of our presentation. These forward-looking statements reflect our views as of the date of this call, and Opal Fuels does not undertake any obligation to update forward-looking statements to reflect events or circumstances after the date of this call. Additionally, this call will contain discussion on certain non-GAAP measures, a definition of non-GAAP measures, Use and a reconciliation of these measures to the nearest gap measure is included in the appendix of the release and presentation. Adam will begin today's call by providing an overview of the court's results and recent highlights and an update on our strategic and operational priorities. John will then give a commercial and business development update, after which Scott will review financial results. We'll then open the call for questions. And now, I'll turn the call over to Adam Kamara, co-CEO of Opal Fuels.

Good morning, everyone, and thank you for participating in Opal Fuel's second quarter 2024 earnings call. Our second quarter results were solid and in line with our expectations. A number of factors are driving our growth outlook for the remainder of the year, including a strong RIN market, which we've taken advantage of by selling forward the majority of our expected RIN sales at favorable pricing, accelerating production growth from our operating facilities, our SAFIRE and PULQ RNG projects remaining on schedule, and finally growth in our fuel station services segment. Adjusted EBITDA for the quarter was approximately 19 million, sequentially higher versus the first quarter as we've continued to see improvements across our business segments driven by higher RNG production, increasing throughput of RNG in our dispensing network, and improved margins in fuel station services. We expect continued sequential growth over the balance of the year and are maintaining our 2024 adjusted EBITDA guidance of 90 to 100 million. One contributing factor to this sequential growth, which we are happy to announce, is that our Prince William project has received EPA certification, and we expect to begin selling RINs from this project in the third quarter. We remain on track to bring our next two landfill RNG projects, Sapphire and Polk County, online as expected in the third and fourth quarters, respectively. We're executing on our growth objectives and are excited that construction has begun on our 16th R&G project at the Burlington County, New Jersey landfill. This project is the second with our joint venture partner, South Jersey Industries, and represents 0.46 million MMBTUs of annual design capacity. Combined with the Cottonwood project announced last quarter, we have now placed 1.1 million MMBTU of new RNG production annual design capacity into construction this year and are maintaining our guidance of placing at least 2 million MMBTU of new RNG production into construction for 2024. Our fuel station service segment continues to perform and grow in line with our expectations supporting our upstream RNG projects with dispensing in the highest value transportation fuel offtake market. We are maintaining fuel station services adjusted EBITDA guidance of 75 to 90% growth in 2024 compared to 2023. I also wanted to mention a change to our full year RNG production outlook, which is now expected to range between 4.0 and 4.4 million MMBTU versus previous guidance of 4.4 to 4.8 million MMVTU, primarily driven by the ramp-up of our most recent facilities, which we expect to be short-term in nature. Finally, we continue to believe there's a great opportunity for our industry to expand bipartisan support, including renewable electricity produced from biogas. It is important to remember what we do. We capture harmful methane emissions from decaying organic waste in place, and convert them into productive and low-carbon energy products that utilize existing pipeline and electricity grids. We believe OPWL is well-positioned to continue to be a leader in the development, operation, and distribution of these low-carbon intensity fuels utilizing proven technologies and a proven track record. With that, I'll turn it over to John.