OPAL Fuels — Third Quarter 2026 Earnings Summary

Financial Performance:

• Adjusted EBITDA for the three months ended September 30, 2026, was $26.7 million, a 32% increase compared to $20.2 million in the prior year period; for the nine months, Adjusted EBITDA was $66.5 million, a 16% increase compared to $57.2 million.
• Total revenue for the three months ended September 30, 2026, was $79.5 million, a 5% decrease compared to $83.4 million in the prior year; for the nine months, revenue was $236.3 million, a 5% decrease compared to $249.2 million.
• Net income for the three months ended September 30, 2026, was $1.7 million, compared to a net loss of $1.9 million in the prior year; for the nine months, net loss was $6.6 million, compared to a net loss of $13.8 million in the prior year.
• Basic and diluted net loss per share attributable to Class A common shareholders for the nine months ended September 30, 2026, was $(0.17), compared to $(0.13) in the prior year period.
• Revenues from unconsolidated equity method investments were $36.0 million for the three months and $97.9 million for the nine months ended September 30, 2026, representing increases of 35% and 21% respectively compared to the prior year.
• RNG Pending Monetization totaled $14.1 million as of September 30, 2026.
• Liquidity as of September 30, 2026, was $122.0 million, consisting of $86.0 million in cash and cash equivalents, $10.8 million of unused revolver capacity, and $25.2 million of undrawn preferred stock facility.
• Capital expenditures for the nine months ended September 30, 2026, were $71.0 million, compared to $60.9 million in the prior year; the Company's portion of capital expenditures in unconsolidated entities was $17.5 million, compared to $17.9 million in the prior year.

Guidance and Future Outlook:

• The Company maintains its 2026 Adjusted EBITDA guidance.
• The Company expects 2026 RNG production to be modestly below its guidance range due to operational improvements taking longer to implement.
• Three new RNG projects representing approximately 2.0 million MMBtu of annual design capacity are expected to begin commercial operations over the course of 2027.
• Management expects sustained volatility in diesel prices to highlight the long-term economic case for natural and renewable natural gas to displace diesel.

Business Segments and Product Lines:

• RNG produced was 1.3 million MMBtu for the three months and 3.8 million MMBtu for the nine months ended September 30, 2026, representing increases of 5% and 9% respectively compared to the prior year.
• Fuel Station Services segment EBITDA grew 18% year-over-year for the three months ended September 30, 2026, driven by increasing fuel volumes and stronger margins.
• Fuel Station Services sold, dispensed, and serviced 40.0 million GGEs for the three months and 117.9 million GGEs for the nine months ended September 30, 2026; RNG dispensed was 21.8 million GGEs (up 7%) and 60.5 million GGEs (flat) respectively.
• RNG Fuel revenue was $22.5 million for the three months and $67.9 million for the nine months ended September 30, 2026.
• Fuel Station Services revenue was $49.7 million for the three months and $147.4 million for the nine months ended September 30, 2026.
• Renewable Power revenue was $7.3 million for the three months and $20.9 million for the nine months ended September 30, 2026.
• Landfill RNG Facility Design Capacity was 2.3 million MMBtu for the three months and 6.7 million MMBtu for the nine months ended September 30, 2026.
• Inlet Design Capacity Utilization was 76.0% for the three months and 73.0% for the nine months ended September 30, 2026.
• Utilization of Inlet Gas was 75.0% for the three months and 74.0% for the nine months ended September 30, 2026, impacted by equipment-related operational issues.

Market and Competitive Landscape:

• The Company views its leadership position in the natural and renewable natural gas transportation fuel market as being in the early stage of a multi-year growth cycle.
• Sustained volatility in diesel prices is driving the economic case for natural and renewable natural gas to displace diesel in heavy-duty trucking.

Risks and Challenges:

• Operational improvements took longer to implement, resulting in RNG production falling modestly below the 2026 guidance range.
• Utilization of Inlet Gas was impacted by various equipment-related operational issues, though corrective measures have been implemented to improve utilization toward the target range of 80% to 90%.
• Impairment charges of $4.2 million were recognized in the nine months ended September 30, 2026, primarily related to assets no longer expected to be utilized following the repurposing of a renewable power facility to RNG operations.

Management Commentary and Tone:

• Co-CEO Adam Comora expressed pleasure with third-quarter financial results, noting that Adjusted EBITDA was in line with expectations and supports full-year results within the lower end of guidance.
• Co-CEO Jonathan Maurer highlighted steady progress in production with 7% sequential growth in the third quarter, though operational improvements delayed full realization of capacity.
• Management emphasized a strong operating platform strengthened by capital-efficient production improvements and new project additions.

Other Key Points:

• The Company elected to voluntarily change its accounting for transferable investment tax credits (ITCs) and clean fuel production tax credits (PTCs) under IRC §48 and §45Z, now accounting for them as grants related to assets and income respectively, rather than as income tax benefits.
• The accounting change resulted in ITC transaction costs being recognized over time rather than expensed immediately, increasing Adjusted EBITDA by $0.7 million for the three months and $1.2 million for the nine months ended September 30, 2025.
• Proceeds from the issuance of redeemable preferred non-controlling interest and warrants were $150.9 million for the nine months ended September 30, 2026, offset by a redemption of $100.0 million.
• The Company recognized $1.74 million and $5.16 million of amortization expense related to basis differences for equity method investments for the three and nine months ended September 30, 2026.
• Total Value of RNG Pending Monetization and Credits at quarter end was $14.1 million, including $10.0 million in RNG awaiting credit generation and $4.1 million in RIN and LCFS credits.