Opal Fuels Inc (OPAL) 2023 Q2 法說會逐字稿

Good morning, and welcome to OPAL Fuels Second Quarter 2023 Earnings Call and Webcast. (Operator Instructions) As a reminder, today's conference is being recorded. I would now like to turn the conference over to Todd Firestone, Vice President of Investor Relations, to begin. Please go ahead.

早安，歡迎參加 OPAL Fuels 2023 年第二季財報電話會議和網路廣播。 （操作員指示）提醒一下，今天的會議正在錄製中。我現在想將會議交給投資者關係副總裁 Todd Firestone 開始。請繼續。

Thank you, and good morning, everyone. Welcome to the OPAL Fuels Second Quarter 2023 Earnings Conference Call. With me today are Co-CEOs, Adam Comora and Jonathan Maurer, and Ann Anthony, OPAL's Chief Financial Officer.

謝謝大家，大家早安。歡迎參加 OPAL Fuels 2023 年第二季財報電話會議。今天與我在一起的有聯合執行長 Adam Comora 和 Jonathan Maurer，以及 OPAL 財務長 Ann Anthony。

OPAL Fuels released financial and operating results for the second quarter of 2023 yesterday afternoon, and those results are available on the Investor Relations section of our website at opalfuels.com. The presentation 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.

OPAL Fuels 昨天下午發布了 2023 年第二季度的財務和營運業績，這些結果可在我們網站 opalfuels.com 的投資者關係部分查看。我們的網站上也提供了對本次電話會議網路廣播的演示訪問。今天的電話會議結束後，將在 90 天內提供重播。

Before we begin, I'd like to remind you that our remarks, including answers to your questions contain forward-looking statements, to 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 in our investor presentation, which is posted to our Investor Relations section of our website. 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.

在開始之前，我想提醒您，我們的言論（包括對您問題的回答）包含前瞻性陳述，涉及風險、不確定性和假設。前瞻性陳述並非業績的保證，實際結果可能與此類陳述中包含的內容有重大差異。我們的投資者介紹中描述了可能導致或促成此類差異的幾個因素，該介紹發佈在我們網站的投資者關係部分。這些前瞻性陳述反映了我們截至本次電話會議之日的觀點，OPAL Fuels 不承擔任何更新前瞻性陳述以反映本次電話會議之後的事件或情況的義務。

Additionally, this call will contain a discussion of certain non-GAAP measures, including, but not limited to, adjusted net loss, adjusted net loss per basic share, adjusted net loss per diluted share and adjusted EBITDA. A definition of non-GAAP measures used and a reconciliation of these measures to the nearest GAAP measure is included in the appendix of the release and presentation.

此外，本次電話會議也將討論某些非公認會計準則指標，包括但不限於調整後淨虧損、調整後每股基本淨虧損、調整後每股稀釋淨虧損和調整後 EBITDA。所使用的非 GAAP 衡量標準的定義以及這些衡量標準與最接近的 GAAP 衡量標準的調整包含在新聞稿和簡報的附錄中。

Adam will begin today's call by providing an overview of the quarter's results, recent highlights and updates on our strategic and operational priorities. John will give a commercial and business development update, after which Ann will review financial results. We'll then open the call for questions.

亞當將在今天的電話會議開始時概述本季的業績、近期亮點以及我們策略和營運重點的最新情況。約翰將提供商業和業務發展的最新情況，之後安將審查財務表現。然後我們將開始提問。

And now I'll turn the call over to Adam Comora, Co-CEO of OPAL Fuels.

現在我將把電話轉給 OPAL Fuels 聯合執行長 Adam Comora。

Thank you, Todd. Good morning, everyone, and thank you for being here for OPAL Fuels Second Quarter 2023 Earnings Call. I'd like to highlight several points from this quarter's results. First, operational performance at our in-service RNG facilities continue to meet our expectations in the second quarter, which we expect to continue for the balance of the year. We also saw an improvement in our fuel station service segment, which we also expect to continue. John and Ann will go into further detail on the quarterly results and some of the puts and takes we see playing out in our full year results.

謝謝你，托德。大家早安，感謝大家參加 OPAL Fuels 2023 年第二季財報電話會議。我想強調本季業績中的幾點。首先，我們在使用的 RNG 設施的營運績效在第二季繼續滿足我們的預期，我們預計這種情況將持續到今年剩餘時間。我們也看到加油站服務領域有所改善，我們也預期這種情況將持續下去。約翰和安將進一步詳細介紹季度業績以及我們在全年業績中看到的一些看跌期權和看跌期權。

One key development in the quarter, which we were very pleased with, was the final set rule published by the EPA in June. This final rule strongly supported cellulosic biofuels and the use of renewable natural gas as a transportation fuel. For OPAL Fuels, this gives us confidence in strong and less volatile D3 RIN pricing for at least the next 3 years and further validates our vertically integrated business model, which is best positioned economically and strategically to deliver our growing RNG production base into the highest value and growing end market. Specifically, the final rule resulted in higher compliance targets of D3 RIN volumes that must be purchased by obligated parties and extended these targets through 2025. These higher 3-year targets, which provide multiyear visibility of D3 RIN demand not only give the industry a strong investment signal but also provide the potential to sell production forward for multiple years.

本季的一個重要進展是 EPA 於 6 月發布的最終規則，對此我們感到非常滿意。這項最終規則大力支持纖維素生物燃料和使用再生天然氣作為運輸燃料。對於OPAL 燃料，這讓我們對至少在未來3 年強勁且波動較小的D3 RIN 定價充滿信心，並進一步驗證了我們的垂直整​​合業務模式，該模式在經濟和戰略上處於最佳位置，可以將我們不斷成長的RNG 生產基地實現最高價值和不斷成長的終端市場。具體來說，最終規則對必須由義務方購買的D3 RIN 數量提出了更高的合規目標，並將這些目標延長至2025 年。這些更高的3 年目標提供了D3 RIN 需求的多年可見性，不僅為行業提供了強大的支持投資訊號還提供了多年遠期銷售生產的潛力。

Post the final set rule, D3 RIN prices have risen from under $2 per RIN in early in the year to recently trading just above $3. With the improvement in RIN prices, we sold some credits from our existing inventory, which we had previously elected to hold leading up to the EPA's ruling in June. In the second quarter, we sold approximately 5.7 million RINs at an average price of roughly $2.80. We continue to sell RIN credits from our unsold inventory in the third quarter at prices in excess of $3. A more detailed table was posted in our earnings press release last night and is also disclosed in our investor presentation available on our website this morning.

最終確定規則後，D3 RIN 價格已從年初的每 RIN 不到 2 美元上漲至最近略高於 3 美元。隨著 RIN 價格的提高，我們出售了現有庫存中的一些信用額度，這些信用額度是我們之前在 EPA 六月裁決之前選擇持有的。第二季度，我們以大約 2.80 美元的平均價格出售了大約 570 萬個 RIN。我們在第三季繼續以超過 3 美元的價格出售未售出庫存中的 RIN 積分。昨晚我們的收益新聞稿中發布了更詳細的表格，今天早上我們網站上的投資者簡報中也揭露了該表格。

The value of OPAL's unsold environmental credits and environmental attributes awaiting certification this quarter increased by more than $16 million to $34 million. Note, we include this increase in value in adjusted EBITDA similar to prior quarters in order to match the associated expenses in our GAAP financials recorded in the quarter the RNG is produced. However, we don't book revenues for GAAP purposes until the environmental credits are actually sold. While eRIN failed to make it into the EPA's final set rule, they are still being considered, and we believe there's a reasonable chance they will be implemented, perhaps with some modifications to the original proposal. We're highly supportive of the eRIN pathway. It is the right environmental public policy to incentivize more methane capture projects, which may be too small to justify full RNG plants and, therefore, remain undeveloped.

本季度，等待認證的 OPAL 未售出環境信用和環境屬性的價值增加了 1600 萬美元以上，達到 3400 萬美元。請注意，我們將此增加值納入調整後 EBITDA 中，與前幾季類似，以便與 RNG 生產季度記錄的 GAAP 財務數據中的相關費用相符。然而，在環境信用額實際出售之前，我們不會根據公認會計準則 (GAAP) 目的記入收入。雖然 eRIN 未能納入 EPA 的最終設定規則，但它們仍在考慮中，我們相信它們有合理的機會實施，也許會對原始提案進行一些修改。我們非常支持 eRIN 途徑。激勵更多的甲烷捕獲項目是正確的環境公共政策，這些項目可能太小，不足以證明完整的RNG工廠的合理性，因此仍然沒有開發。

For OPAL Fuels, it enables us to leverage our existing renewable power portfolio and increase the value of those assets with little incremental capital and opens up numerous smaller renewable electricity development opportunities, which would further accelerate our growth. We're also excited to announce that we've moved our Polk County, Florida RNG project into construction. This project represents a successful and fast transition through our business development funnel into construction. Polk represents 1.1 million MMBtu of additional nameplate capacity, of which we own 100%.

對於OPAL Fuels 而言，它使我們能夠利用現有的可再生能源投資組合，在幾乎不增加資本的情況下增加這些資產的價值，並開闢許多較小的可再生電力開發機會，這將進一步加速我們的成長。我們也很高興地宣布，我們已將佛羅裡達州波爾克縣的 RNG 項目投入建設。此專案代表了我們的業務發展管道向建設的成功、快速過渡。 Polk 代表 110 萬 MMBtu 的額外銘牌容量，我們擁有其中的 100%。

Second quarter results saw improvement in adjusted EBITDA margins in our fuel station service segment to what we think is trending to a more normalized operating environment. This improvement was driven by not only higher RIN prices, but moving forward on completing construction projects and cycling through inflationary cost pressures on some of our fixed price third-party station construction contracts. We expect this to continue in the second half of the year. We think it's a great time to be OPAL Fuels. We have built and continue to add to what we believe is the best team and best business model in the industry to capitalize on strong and growing tailwinds from both public policy and corporate initiatives to decarbonize. The end result should be a powerful platform of nice return on capital projects which when operational require minimal capital expenditures, resulting in a sustainable long-term free cash flow.

第二季業績顯示，我們的加油站服務部門調整後的 EBITDA 利潤率有所改善，我們認為營運環境正趨向於更加正常化。這項改善不僅是由於 RIN 價格上漲，而且是由於我們繼續完成建設項目以及克服一些固定價格第三方站建設合約的通貨膨脹成本壓力。我們預計這種情況將在下半年持續。我們認為現在是成為 OPAL Fuels 的好時機。我們已經建立並繼續擴大我們認為是業內最好的團隊和最佳商業模式，以利用公共政策和企業脫碳措施帶來的強勁且不斷增長的推動力。最終結果應該是一個具有良好資本項目回報的強大平台，在營運時需要最少的資本支出，從而產生可持續的長期自由現金流。

With that, I'll turn it over to Jon. Jon?

有了這個，我會把它交給喬恩。喬恩？

Thank you, Adam, and good morning, everyone. I want to start out by saying that we're very focused on executing on our growth plans. Not only were our current production expectations met but we are moving high-quality products forward in our business development funnel, providing significant momentum and visible growth to our business.

謝謝你，亞當，大家早安。首先我想說，我們非常專注於執行我們的成長計劃。我們不僅滿足了當前的生產預期，而且還在業務發展漏斗中推動高品質產品的發展，為我們的業務提供了巨大的動力和明顯的成長。

In our RNG Fuel segment, we have 7 projects in operation, representing roughly 3.9 million MMBtu of annual nameplate capacity. These operating projects provide a solid base to our ongoing business. At Noble Road, New River and Pine Bend, 3 of our more recent landfill RNG projects to come online, gas production continues to increase as the landfill trash increases and as our expert gas collection team works hand in hand with our landfill partners to improve gas quantity and quality.

在我們的 RNG 燃料領域，我們有 7 個正在運作的項目，相當於年銘牌產能約 390 萬 MMBtu。這些營運項目為我們的持續業務提供了堅實的基礎。在Noble Road、New River 和Pine Bend，我們最近上線了3 個垃圾掩埋場RNG 項目，隨著垃圾掩埋場垃圾的增加，以及我們的專家氣體收集團隊與垃圾掩埋場合作夥伴攜手提高氣體產量，氣體產量持續增加數量和品質。

In addition to our operating projects, we currently have 6 RNG projects in construction, representing an additional 5.4 million MMBtu of annual nameplate capacity. These construction projects provide visibility to near-term growth for our underlying business. I would highlight the following: First, our Emerald RNG project completed construction in June and is expected to be added to our in-operation portfolio during this third quarter as the project completes commission. Second, as Adam mentioned, we added our Polk County, Florida project (inaudible) construction portfolio. This project will contribute 1.1 million MMBtu of annual nameplate capacity and is 100% owned by us. We expect the project to reach COD in Q4 of 2024.

除了我們的營運項目外，我們目前還有 6 個 RNG 項目在建，相當於額外 540 萬 MMBtu 的年銘牌產能。這些建設項目為我們的基礎業務的近期成長提供了可見性。我想強調以下幾點：首先，我們的 Emerald RNG 專案已於 6 月完成建設，預計隨著專案完成調試，將在第三季度添加到我們的營運專案組合中。其次，正如亞當所提到的，我們加入了佛羅裡達州波爾克縣計畫（聽不清楚）的建設組合。該專案將貢獻年銘牌產能110萬MMBtu，由我們100%擁有。我們預計該項目將於 2024 年第四季達到 COD。

I want to shift gears and discuss the permitting process on some of our construction projects. We have experienced some delays at our Emerald, Prince William and Sapphire R&D projects in large part due to permitting process. First, I want to stress that these delays are not a reflection of whether the projects will ultimately come online. In our experience, they are a matter of when and not if, given the dramatic decrease in harmful emissions. Second, not all permits are required to be obtained when we signed a construction contract and formally place a project into construction. While we schedule reasonable time frames for completing this permitting, it's important to note that these processes are particular to the varying state and local agencies.

我想換個話題，討論一下我們的一些建設項目的許可流程。我們的祖母綠、威廉王子和藍寶石研發專案出現了一些延誤，很大程度上是由於許可程序的原因。首先，我想強調的是，這些延遲並不反映這些項目最終是否會上線。根據我們的經驗，考慮到有害排放量的大幅減少，這只是時間問題，而不是是否有問題。其次，我們簽訂建設合約、正式開工時，並不需要取得所有許可。雖然我們為完成此許可安排了合理的時間框架，但值得注意的是，這些流程對於不同的州和地方機構來說是特定的。

In practice, many of these projects are the first time of municipality has sanctioned an RNG project. So it's a new process and with anything new, sometimes it takes longer than expected to get it over the line. The takeaway here is that the earnings power of these projects remains intact despite the several months of delay. Our Prince William project is now expected to be online in the first quarter of 2024. Our Sapphire project is expected to be online in the first half of 2024 and our 2 dairy projects in California, we expect to be commissioned in the third quarter of 2024.

實際上，其中許多項目都是市政府首次批准 RNG 項目。所以這是一個新的流程，對於任何新事物，有時需要比預期更長的時間才能完成。這裡的結論是，儘管推遲了幾個月，但這些項目的獲利能力仍然完好無損。我們的威廉王子計畫預計將於 2024 年第一季上線。我們的 Sapphire 計畫預計將於 2024 年上半年上線，我們位於加州的 2 個乳製品項目預計將於 2024 年第三季投產。

Due to the several months delay at Emerald and Prince William, we expect 2023 production volumes to be at the low end or modestly below our previous full year guidance.

由於 Emerald 和 Prince William 的產量延遲了幾個月，我們預計 2023 年的產量將處於低端​​或略低於我們先前的全年指引。

Moving on to our advanced development pipeline. We continue to make encouraging progress. We now have 8.1 million MMBtu of nameplate capacity across 18 projects in our advanced development pipeline. The majority of the advanced development pipeline is landfill but also contains dairy and food waste project. Remember, these projects are ones we have qualified and that we reasonably expect can be in construction within the next 12 to 18 months. We set a target in March of putting at least 2 million MMBtu in construction this year. With Polk County now in construction, we are over halfway towards our goal, and we remain optimistic that we will hit that goal. Our advanced development pipeline does not include other earlier stage projects. As we have mentioned on prior calls, we are one of the larger and more experienced operators in this space and our integrated platform continues to aid us in discussions as we seek out new projects.

繼續我們的高階開發流程。我們繼續取得令人鼓舞的進展。目前，我們先進開發管道中的 18 個項目擁有 810 萬 MMBtu 的銘牌產能。大多數先進開發項目都是垃圾掩埋場，但也包含乳製品和食物垃圾項目。請記住，這些項目是我們已經合格的項目，我們合理地預計可以在未來 12 到 18 個月內開工。我們在 3 月設定了今年建造至少 200 萬 MMBtu 的目標。隨著波爾克縣目前正在建設中，我們已經實現了目標的一半以上，我們對實現這一目標仍然保持樂觀。我們的高級開發管道不包括其他早期項目。正如我們在先前的電話會議中提到的，我們是該領域規模更大、經驗更豐富的營運商之一，我們的整合平台在我們尋找新專案時繼續幫助我們進行討論。

Turning to our Fuel Station Services business. As Adam mentioned, we believe we have cycled through some of the inflationary cost pressures, and we expect to move to more normalized margin trends. We continue to hear very positive feedback on the new Cummins 15-liter engines being tested and have seen more large national fleet interest and engagement than ever before for RNG as a transportation fuel. We await like everyone else on clarity and timing for the commercial rollout and deliveries of the new trucks, but believe when it happens, it will result in accelerating adoption and deployment of RNG/CNG, which will require new fueling station construction, service and RNG fuel.

轉向我們的加油站服務業務。正如亞當所提到的，我們相信我們已經經歷了一些通膨成本壓力，我們預計將轉向更正常化的利潤率趨勢。我們繼續聽到有關正在測試的新型康明斯 15 升引擎的非常積極的反饋，並且看到比以往任何時候都更大規模的國家車隊對 RNG 作為運輸燃料的興趣和參與。與其他人一樣，我們等待新卡車的商業推廣和交付的明確性和時機，但相信當它發生時，它將導致加速RNG/CNG 的採用和部署，這將需要新的加油站建設、服務和RNG燃料。

OPAL Fuels is a market leader in building and servicing new stations and our vertically integrated model puts us in a strong position to be the fuel provider of choice and to capitalize on this potential growth. Our Renewable Power segment currently has 17 electric projects representing 112.5 megawatts of nameplate capacity and continues to provide good optionality. Besides serving as an inventory of projects that can potentially be converted to RNG projects, these electric projects stand to benefit from the proposed eRIN pathway. Currently, 3 of these projects are under construction in the process of being converted to RNG facilities and 3 others are in advanced development pipeline for conversion to RNG. The remaining 11 projects stand to benefit from the proposed eRIN pathway. We await updated guidance from the EPA on this topic later this year.

OPAL Fuels 是新加油站建設和服務領域的市場領導者，我們的垂直整​​合模式使我們處於有利地位，成為首選燃料供應商，並充分利用這一潛在增長。我們的再生能源部門目前擁有 17 個電力項目，額定容量為 112.5 兆瓦，並繼續提供良好的選擇性。除了作為可能轉換為 RNG 項目的項目清單外，這些電力項目還將受益於擬議的 eRIN 路徑。目前，其中 3 個項目正在建設中，正在轉換為 RNG 設施，另外 3 個項目正處於轉換為 RNG 的高級開發過程中。其餘 11 個項目將從擬議的 eRIN 路徑中受益。我們等待美國環保署今年稍後就此主題發布的最新指南。

I will now turn the call over to Ann. Ann?

我現在將把電話轉給安。安？

Thank you, Jon, and good morning, everyone. Last night, we filed our earnings press release which detailed our quarterly results for the period ending June 30, 2023. We anticipate filing our 10-Q in the next couple of days. The biggest driver of the quarter's results was environmental attribute pricing, which moved higher near the end of the quarter after the EPA's final set rule was announced and we were able to start monetizing credits we held in inventory.

謝謝你，喬恩，大家早安。昨晚，我們提交了收益新聞稿，其中詳細介紹了截至 2023 年 6 月 30 日的季度業績。我們預計將在未來幾天內提交 10-Q 財報。本季業績的最大推動力是環境屬性定價，在美國環保署宣布最終規則後，環境屬性定價在本季末走高，我們能夠開始將庫存中的信用貨幣化。

Net income was $114.1 million this quarter, but was impacted by the deconsolidation of our Emerald and Sapphire projects, which we'll discuss shortly. Excluding this onetime gain, our adjusted net loss for the 3 months ended June 30, 2023, was $7.8 million. G&A costs for the second quarter totaled $13.7 million, with approximately $1.9 million of that total included a stock-based compensation, which is noncash. We reported adjusted EBITDA of $21.4 million for the second quarter compared with $8.7 million in the first quarter. The difference was primarily the result of approximately $5.7 million of unmonetized credits we sold in the last 10 days of June, along with the mark-to-market impact of higher RIN prices at the end of the second quarter plus some normalization in our fuel station services business as construction projects move forward and some of the inflationary pressures that we experienced in the last year started to abate.

本季淨利潤為 1.141 億美元，但受到 Emerald 和 Sapphire 專案拆分的影響，我們很快就會對此進行討論。排除這筆一次性收益，截至 2023 年 6 月 30 日的三個月調整後淨虧損為 780 萬美元。第二季的一般管理費用總計 1,370 萬美元，其中約 190 萬美元包括非現金的股票薪酬。我們報告第二季調整後 EBITDA 為 2,140 萬美元，而第一季調整後 EBITDA 為 870 萬美元。差異主要是由於我們在 6 月最後 10 天出售了約 570 萬美元的未貨幣化積分，以及第二季度末 RIN 價格上漲以及我們加油站的一些正常化的按市價計算的影響隨著建設項目的推進以及我們去年經歷的一些通膨壓力開始減弱，服務業務也有所改善。

Second quarter adjusted EBITDA does exclude onetime items, such as the onetime gain associated with the deconsolidation of our Emerald and Sapphire projects. It should be noted that the value of the unsold environmental attributes is marked at the quarter end value and could fluctuate up or down. As I just mentioned, in June, we disclosed the formation of Paragon RNG LLC, a company owned 50-50 between OPAL Fuels and GFL Environmental, which resulted in the deconsolidation of our Emerald and Sapphire RNG projects. We have 2 RNG projects under construction today in this joint venture, and expect to move forward with up to 7 additional projects. We'll talk more about the impact of deconsolidation in a moment and in our 10-Q.

第二季調整後的 EBITDA 確實不包含一次性項目，例如與我們的 Emerald 和 Sapphire 項目分拆相關的一次性收益。值得注意的是，未售出的環境屬性的價值是按季度末價值標記的，可能會上下波動。正如我剛才提到的，6 月份，我們披露了 Paragon RNG LLC 的成立，該公司由 OPAL Fuels 和 GFL Environmental 各持股 50-50，這導致我們的 Emerald 和 Sapphire RNG 項目被拆分。目前，該合資企業有 2 個 RNG 項目正在建設中，預計將繼續推進多達 7 個項目。我們稍後將在 10-Q 中詳細討論分拆的影響。

In our Fuel Station Services segment, we dispensed 35.5 million GGEs in the second quarter and saw results improve compared to the first quarter of 2023. We were able to recognize higher revenue in the quarter as construction projects move closer to completion. This dynamic as well as diminishing impacts from cost inflation helped improve margins, which should continue for the rest of the year.

在我們的加油站服務部門，我們在第二季度分配了3550 萬個GGE，與2023 年第一季度相比，業績有所改善。隨著建設項目接近完成，我們在本季度確認了更高的收入。這種動態以及成本通膨影響的減弱有助於提高利潤率，這種情況應該會在今年剩餘時間內持續下去。

In Renewable Power, we saw sequential improvement compared to the first quarter, which was impacted by unplanned downtime primarily at one of our projects. Year-over-year, we saw a decline due to the shutdown in the third quarter of 2022 of a landfill gas to electricity project that had reached end of life. Year-to-date, we've spent $72 million in CapEx as we continue to build out RNG projects and fuel stations that we own on balance sheet. As of June 30, 2023, liquidity was $44.1 million, consisting of cash and cash equivalents of $27.1 million, including restricted cash of $5.5 million, and $17 million in short-term investments maturing within 90 days. This compares to $181 million at March 31, 2023, consisting of $39.8 million of cash and cash equivalents including restricted cash of $6.6 million plus $37 million in short-term investments and availability of $105 million under a senior secured term loan facility.

在再生能源方面，與第一季相比，我們看到了連續改善，這主要受到我們一個專案的計劃外停機的影響。由於 2022 年第三季關閉了一個已達到使用壽命的垃圾掩埋氣發電項目，我們看到了同比下降。今年迄今為止，我們在資本支出上花費了 7,200 萬美元，因為我們繼續建造我們在資產負債表上擁有的 RNG 項目和加油站。截至 2023 年 6 月 30 日，流動資金為 4,410 萬美元，包括現金及現金等價物 2,710 萬美元，其中限制性現金 550 萬美元，以及 90 天內到期的短期投資 1,700 萬美元。相較之下，截至2023 年3 月31 日的1.81 億美元包括3,980 萬美元的現金和現金等價物，其中包括660 萬美元的限制性現金加上3,700 萬美元的短期投資以及優先擔保定期貸款融資下的1.05 億美元的可用資金。

The primary driver of this reduction in liquidity is attributed to the assignment of the term loan facility to Paragon as part of the deconsolidation of the Emerald and Sapphire projects. This also reflects a reduction of $11.9 million of cash that is now excluded from consolidated cash and cash equivalents, again, as a result of the deconsolidation. Note, both the cash that was deconsolidated and the available funds under the credit facility remain available for these projects. Paragon was assigned to the existing senior credit facility related to these projects, again with a 2-year delayed term and maximum principal amount of $85 million and a debt reserve facility up to $10 million. There was no debt outstanding as of the date of the assignment.

流動性減少的主要原因是，作為 Emerald 和 Sapphire 專案分割的一部分，將定期貸款安排分配給 Paragon。這也反映了現金減少了 1,190 萬美元，由於取消合併，這些現金現在再次被排除在合併現金和現金等價物之外。請注意，取消合併的現金和信貸安排下的可用資金仍然可用於這些項目。 Paragon 獲得了與這些項目相關的現有高級信貸安排，同樣具有 2 年延遲期限、最高本金金額 8,500 萬美元以及高達 1,000 萬美元的債務準備金安排。截至轉讓日，無未償債務。

We believe that our liquidity, anticipated cash flows from operations, including the value associated with our unsold environmental credits and access to expected sources of capital will be sufficient to meet our existing funding needs. We continue to pursue additional funding for our advanced development pipeline and streamlining our capital structure to include financing higher up in the capital structure and less financing on an individual project basis.

我們相信，我們的流動性、預期的營運現金流，包括與我們未售出的環境信貸相關的價值以及獲得預期資本來源的機會，將足以滿足我們現有的資金需求。我們繼續為我們的先進開發管道尋求額外資金，並簡化我們的資本結構，包括資本結構中較高的融資和單一項目基礎上較少的融資。

I'd like to reiterate that at current RIN prices, we expect our full year 2023 adjusted EBITDA guidance to be within our prior $85 million to $95 million range. RIN prices have rebounded quite strongly since the EPA provided the higher RVO targets and we expect now to move averaged realized prices above the $2.25 implied price in our guidance. However, as Jon noted earlier, we anticipate that production will be at or modestly below the low end of guidance given the delays at Emerald and Prince William. The RNG projects that are in operation as well as our other business segments continue to perform well and in line with our expectations.

我想重申，以目前的 RIN 價格，我們預計 2023 年全年調整後 EBITDA 指引將在之前的 8,500 萬美元至 9,500 萬美元範圍內。自從 EPA 提供了更高的 RVO 目標以來，RIN 價格已經強勁反彈，我們預計現在平均實現價格將高於我們指導中的 2.25 美元隱含價格。然而，正如喬恩之前指出的那樣，鑑於翡翠和威廉王子的延誤，我們預計產量將處於或略低於指導的低端。正在運作的 RNG 專案以及我們的其他業務部門繼續表現良好，符合我們的預期。

With that, I'll turn it back to Jon and Adam for concluding remarks.

接下來，我將把它轉回喬恩和亞當進行總結發言。

Thanks, Ann. In closing, I want to remind everyone that OPAL Fuels business is addressing 2 of the most significant global warming issues. We are collecting harmful methane gas and we are using this gas to displace fossil fuels. These impactful benefits are what drive the policy tailwinds, which continue to build from the EPA's resounding support of the industry to the significant IRA benefits and to the increasing demand in the market for our products. We remain committed to furthering OPAL's vertically integrated mission to build and operate best-in-class RNG facilities that deliver industry-leading, reliable and cost-effective RNG solutions to displace fossil fuels and mitigate climate change.

謝謝，安。最後，我想提醒大家，OPAL 燃料業務正在解決兩個最重要的全球暖化問題。我們正在收集有害的甲烷氣體，並使用這種氣體來取代化石燃料。這些有影響力的好處是推動政策順風的因素，從 EPA 對該行業的大力支持到 IRA 的顯著好處，再到市場對我們產品不斷增長的需求，政策順風不斷發展。我們仍然致力於推進 OPAL 的垂直整合使命，即建造和運營一流的 RNG 設施，提供行業領先、可靠且具有成本效益的 RNG 解決方案，以取代化石燃料並緩解氣候變遷。

And with that, I'll turn the call over to the operator for Q&A. Thank you all for your interest in OPAL Fuels.

然後，我會將電話轉給接線生進行問答。感謝大家對蛋白石燃料的興趣。

(Operator Instructions) Our first question is going to come from the line of Derrick Whitfield with Stifel.

（操作員說明）我們的第一個問題將來自 Derrick Whitfield 和 Stifel 的線路。

Congrats on your progress with several of the RNG projects. For my first question, I wanted to focus on your 2023 EBITDA guidance (inaudible) in the prepared remarks. While there are certainly puts and takes from the standpoint of timing and production volumes, the combination of your RIN inventory and production profile and the materially stronger RIN pricing we're experiencing now versus your plan, seemingly suggest there is still upside to your 2023 guidance. Is that a reasonable conclusion?

恭喜您在幾個 RNG 專案上取得的進展。對於我的第一個問題，我想重點討論您在準備好的評論中的 2023 年 EBITDA 指導（聽不清楚）。雖然從時間和產量的角度來看，肯定會有一些調整，但結合您的RIN 庫存和生產情況，以及我們現在所經歷的RIN 定價與您的計劃相比明顯更強，似乎表明您的2023 年指導仍有上行空間。這是一個合理的結論嗎？

Thanks, Derrick, for your question. And again, we appreciate your support. And I think, again, as we look to guidance at this point in the year, and we take into account the strength in the D3 RIN and what we expect to happen there, it is offset though by where we see production coming out for the remainder of the year. So for that reason, I think we were comfortable with the guidance where it is.

謝謝德里克的提問。再次感謝您的支持。我再次認為，當我們在今年的這個時候尋求指導時，我們考慮到 D3 RIN 的實力以及我們期望在那裡發生的事情，但它會被我們看到的生產情況所抵消。今年剩餘時間。因此，我認為我們對目前的指導感到滿意。

Just a follow-up. I wanted to focus on your capital spending and liquidity outlook. As we think about the advancement of your in-construction and ADP project backlogs, could you help us understand the associated CapEx profile over the next few quarters and perhaps elaborate on your sources of capital and liquidity as how highlighted on Page 13, inclusive of ITC, if you're able to monetize that over that time frame.

只是後續行動。我想重點關注你們的資本支出和流動性前景。當我們考慮您的在建項目和ADP 項目積壓的進展時，您能否幫助我們了解未來幾季的相關資本支出概況，並可能詳細說明您的資本和流動性來源，如第13 頁所強調的那樣，包括ITC ，如果您能夠在這段時間內將其貨幣化。

Sure. So I guess if you step back and you think about CapEx, year-to-date, we've spent $72 million, roughly 39 in the first quarter and just over 33 in the second quarter. And if you step back as well and look at where projects are in terms of the construction (inaudible), Emerald is starting to ramp down, right? We've completed construction. We're in the middle of commissioning (inaudible) that one is starting to tail off. We've put (inaudible) into construction.

當然。所以我想，如果你退一步想想資本支出，今年到目前為止，我們已經花費了 7,200 萬美元，其中第一季大約為 39 美元，第二季略高於 33 美元。如果您也退後一步，看看專案的建造情況（聽不清楚），Emerald 正在開始下降，對吧？我們已經完成了施工。我們正處於調試過程中（聽不清楚），其中一個開始逐漸減少。我們已經投入（聽不清楚）建設。

And again, in the beginning, you put it into construction, you're not spending a lot of money as and then it starts to ramp up as construction ramps up. So we think that, that smoothed out. I think as we look out over the remaining 6 months and then into '24, from an overall CapEx perspective, I think we expect to be kind of right in the middle of what we told you originally from a guidance perspective. And we've also seen, again, the delays impact (inaudible) so again, it all kind of factors into (inaudible). But from a relative perspective, quarter-to-quarter, that $30 million to $40 million-ish range seems pretty good.

再說一次，一開始，你把它投入建設，你並沒有花很多錢，然後隨著建設的增加，它開始增加。所以我們認為，一切都順利了。我認為，當我們展望剩下的 6 個月，然後進入 24 年時，從整體資本支出的角度來看，我認為我們預計會達到我們最初從指導角度告訴您的情況。我們也再次看到了延誤的影響（聽不清楚），因此，所有因素都影響了（聽不清楚）。但從相對的角度來看，從季度到季度，3000 萬美元到 4000 萬美元左右的範圍似乎相當不錯。

In terms of capital and liquidity, again, as we disclosed yesterday, we've got roughly $44 million-ish on the balance sheet as of June 30, and we were sitting on roughly $34-ish million of (inaudible) value that we expect to be able to monetize over the coming months as part of cash flow from operations. We also do have the debt facility still available to us that we amended as part of the GFL transaction and that can be used again for the remainder of Emerald and for Sapphire. As you can imagine, we are talking to our bankers pretty frequently. We've said that our goal is to look at financing higher up in the capital structure. And again, we feel pretty good about remaining availability under that facility as well as access (inaudible).

就資本和流動性而言，正如我們昨天所披露的，截至 6 月 30 日，我們的資產負債表上大約有 4400 萬美元左右，我們預計的價值約為 3400 萬美元左右（聽不清）能夠在未來幾個月內作為營運現金流的一部分貨幣化。我們也確實擁有債務融資，我們已將其作為 GFL 交易的一部分進行了修改，並且可以再次用於 Emerald 和 Sapphire 的剩餘部分。正如您可以想像的那樣，我們非常頻繁地與銀行家交談。我們已經說過，我們的目標是著眼於資本結構中更高層的融資。再說一遍，我們對該設施下的剩餘可用性以及訪問權限感到非常滿意（聽不清楚）。

The other piece that we haven't talked about is ITC. And again, we've been pretty circumspect about the total amount, but we do anticipate being able to monetize via transfer the ITC associated with Emerald this year and potentially Prince William, again, depending on when that comes online, whether it's this year or at the beginning of '24, being able to monetize that as well. So again, it all kind of goes into the (inaudible) and that's why we're able to say we're comfortable around our ability to fund CapEx and continue to run this business and grow.

我們還沒討論的另一塊是 ITC。再說一遍，我們對總金額非常謹慎，但我們確實預計能夠透過轉讓今年與 Emerald 相關的 ITC 以及可能與威廉王子相關的 ITC 來貨幣化，這取決於何時上線，無論是今年還是24 年初，也能夠將其貨幣化。再說一次，這一切都進入了（聽不清楚），這就是為什麼我們可以說我們對我們為資本支出提供資金並繼續經營這項業務和成長的能力感到滿意。

Our next question is going to come from the line of Ryan Todd with Piper Sandler.

我們的下一個問題將來自 Ryan Todd 和 Piper Sandler。

Great. Thank you. Maybe as a follow-up on some of your comments there on cash flow. I mean can you walk us through the cadence of some parts of the RNG business through year-end? When -- I mean, Emerald did come online this quarter. How should we think about the timing of gas production as that ramps and monetization in the coming quarters from Emerald? And then obviously, you talked about the inventory balance that you have there of credits. Any commentary on kind of the cadence of monetization, how you would look to monetize or draw that down over the coming quarters?

偉大的。謝謝。也許可以作為您對現金流的一些評論的後續行動。我的意思是，您能向我們介紹一下 RNG 業務的某些部分到年底的節奏嗎？我的意思是，翡翠本季確實上線了。隨著 Emerald 未來幾季天然氣產量和貨幣化的增加，我們應該如何考慮天然氣產量的時機？顯然，您談到了您擁有的庫存餘額。關於貨幣化節奏的任何評論，您將如何在未來幾季實現貨幣化或減少貨幣化？

Yes. Well, this is Adam here. Thanks for the question. We'll let Ann start on the ITC and then maybe I'll talk a little bit about our RIN inventory and how we're thinking about monetization.

是的。嗯，這是亞當。謝謝你的提問。我們會讓 Ann 從 ITC 開始，然後我可能會談談我們的 RIN 庫存以及我們如何考慮貨幣化。

Sure. I guess again, from an ITC perspective, we do anticipate monetizing ITC associated with Emerald. Obviously, it would be our half because it's a 50-50 project. But to the extent that comes on in Q3, we anticipate that we'll be able to monetize that hopefully within the quarter as well.

當然。我再次猜測，從 ITC 的角度來看，我們確實預計將與 Emerald 相關的 ITC 貨幣化。顯然，這將是我們的一半，因為這是一個 50-50 的專案。但就第三季出現的情況而言，我們預計我們也將能夠在本季內將其貨幣化。

And this is Adam, as you're talking about our rate monetization strategy and maybe some additional questions on how we're viewing the D3 RIN market. We sort of saw the first half being a little bit of an episodic hold on to our inventory offerings as we were anticipating a positive outcome out of the EPA in terms of how they're going to treat the cellulosic biofuel category and perhaps rethink their RVO targets for cellulosic biofuels. And that did play out as we sort of expected and we will begin at having done unwinding some of the credits that we had been holding on to the balance sheet.

這是 Adam，您正在談論我們的費率貨幣化策略，也許還有一些關於我們如何看待 D3 RIN 市場的其他問題。我們看到上半年我們的庫存產品有點間歇性地保留，因為我們預計 EPA 在如何處理纖維素生物燃料類別方面會取得積極成果，或許還會重新考慮他們的 RVO纖維素生物燃料的目標。這確實按照我們的預期進行，我們將首先取消我們一直保留在資產負債表上的一些信貸。

We think over the next 3 years, this was not a onetime sort of top D3 RIN prices and the way the RVOs have been set now for multiyears, which we think is really healthy for the industry by providing that visibility. We actually think the D3 RIN market is going to continue to time over the balance of '23 and should lead to higher pricing, quite frankly, in the balance of '23 and as we look out into '24 and '25. But we think the RIN market will start to be less volatile. And we don't see ourselves in the future having as much volatility in our GAAP results and see that really smoothing out over the balance of the year and into '24 and '25.

我們認為，在接下來的3 年裡，這將不再是一次性的最高D3 RIN 價格，也不再是現在多年來設定的RVO 的方式，我們認為通過提供這種可見性，這對行業來說是非常健康的。實際上，我們認為 D3 RIN 市場將在 23 年餘下時間繼續發展，坦白說，在 23 餘年以及我們展望 24 和 25 年期間，應該會導致更高的定價。但我們認為 RIN 市場的波動性將開始減弱。我們認為未來我們的 GAAP 業績不會有那麼大的波動，並且看到這種情況在今年剩餘時間以及 24 年和 25 年真正趨於平穩。

I'll just add as well, obviously, once Emerald comes online during under the current rules, we are able to steer that gas once it reaches, call it, critical (inaudible) commissioning period. And we do assign the value of equivalent credits associated with that gas in storage as part of adjusted EBITDA. It does take, call it, 3 to 4, 5 months to get through the certification process with the EPA to actually be able to generate and monetize those RINs.

我還要補充一點，顯然，一旦 Emerald 在當前規則下上線，我們就能夠在達到關鍵（聽不清楚）調試期時控制該氣體。我們確實將與儲存的天然氣相關的等值信用值分配為調整後 EBITDA 的一部分。確實需要 3 到 4、5 個月的時間才能完成 EPA 的認證流程，才能真正產生這些 RIN 並從中獲利。

So again, I just want to remind everyone that there is a little bit of delay between when you actually go online in a real way and start to actually recognize any significant revenue. Obviously, that potentially changes next year under the rules that are currently promulgated by the EPA that you will not be able to put that gas in virtual storage pending certification.

再次強調，我只是想提醒大家，從真正真正上網到開始真正確認任何可觀收入之間存在一點延遲。顯然，根據美國環保署目前頒布的規則，明年這種情況可能會發生變化，即您將無法將這種氣體放入虛擬儲存中等待認證。

Perfect. That's very helpful. And then maybe changing gears to the fuel station margins. You talked about some of the drivers of improvement there. But could you maybe provide a little more clarity in terms of, maybe a little more color on what all drove the improvement on fuel station margins and is that the right -- the margins that we saw this quarter, is that kind of the right run rate going forward as we think about modeling this out?

完美的。這非常有幫助。然後也許會改變加油站利潤率。您談到了一些改進的驅動因素。但是，您能否更清楚地說明，也許更多地說明是什麼推動了加油站利潤率的改善，這是正確的——我們本季度看到的利潤率是這樣的正確運行嗎？當我們考慮對此進行建模時，未來的利率是多少？

Yes. This is Adam again here. And I think as we mentioned in our previous quarters, there's 3 different components to our fuel station service segment. We have a construction business where we're building stations under turnkey EPC contracts. And those stations can typically take 12 months or so to complete. So we did have lagging inflationary cost pressure rolling through that business, which we do believe have now run its course. We also have some RNG marketing, business in our fuel station business that's associated with our dispensing capacity.

是的。這是亞當又來了。我認為正如我們在前幾個季度提到的，我們的加油站服務細分市場有 3 個不同的組成部分。我們有一家建築業務，根據交鑰匙 EPC 合約建造車站。這些站點通常需要 12 個月左右才能完成。因此，我們的業務確實面臨著滯後的通膨成本壓力，我們相信這種壓力現在已經結束了。我們的加油站業務中還有一些與我們的加油能力相關的 RNG 行銷業務。

And that does also get the benefit of rising credit prices, which we think are going to continue and we also have our service business there as well. And we don't think we've gotten to the full endpoint of where we think normalized margins are. We're not going to provide a margin target there but we do think that, that business still has some good upside to it. And we've got some little (inaudible) to go there in terms of where we think margins ultimately shake out.

這也確實受益於信貸價格上漲，我們認為這種情況將持續下去，而且我們在那裡也有我們的服務業務。我們認為我們還沒有達到我們認為的正常化利潤率的全部終點。我們不會在那裡提供利潤目標，但我們確實認為該業務仍然有一些良好的上升空間。就我們認為利潤率最終會下滑的情況而言，我們還有一些（聽不清楚）可以實現的目標。

From here, is it going to be -- I mean, I guess, in terms of the potential future gains from here, is that -- is the RIN price, like the biggest component of that? Or within those other 2 buckets, is there more tailwinds still within those.

從這裡開始，我的意思是，我想，就未來的潛在收益而言，RIN 價格是其中最大的組成部分嗎？或者在其他兩個桶子中，是否還有更多的順風車。

This is Adam here. And where we see some good upside and by the way, it's not only on growing volumes, and I know we'll get some questions later on the 15-liter engine of what that means and what that could be a growth in our fuel station service segment. But we also have some exposure to potential rising LCFS pricing, specifically out of our California dispensing market. So we think there's some interesting potential optionality to that part of that segment as we move through some (inaudible) actions that may be taken and also kind of maximize our California dispensing (inaudible) so more to come on that in the future.

這是亞當。順便說一句，我們看到了一些很好的好處，這不僅僅是銷量的增長，我知道我們稍後會收到一些關於15 升發動機的問題，這意味著什麼以及我們加油站的增長可能會帶來什麼服務部分。但我們也面臨 LCFS 定價潛在上漲的風險，特別是在加州配藥市場。因此，我們認為，當我們採取一些可能採取的（聽不清楚）行動時，該部分的這一部分存在一些有趣的潛在選擇，並且還可以最大限度地擴大我們的加州配藥（聽不清楚），因此未來還會有更多的事情發生。

Our next question is going to come from the line of Martin Malloy with Johnson Rice & Company.

我們的下一個問題將來自約翰遜賴斯公司的馬丁·馬洛伊。

I wanted to ask on a little bit about eRINS and assuming that there's a positive outcome for the eRIN pathway later this year. Could you maybe talk about your expectation for how that might impact your advanced development pipeline? Would we see a number of smaller projects that are out there, start to move into the advanced development pipeline?

我想問一些有關 eRINS 的問題，並假設今年稍後 eRIN 途徑會取得積極成果。您能否談談您對這可能如何影響您的高階開發流程的期望？我們是否會看到一些較小的專案開始進入高階開發流程？

Hi Martin. Jon here. Great question. Thanks so much. The -- the great thing about the eRIN pathway is that it supports the policy of collecting these harmful methane gas. And it, I think really promotes smaller, more difficult projects as well. You see a significant value being provided to those electric projects. So in addition to our 11 or so electric projects that stand to benefit from the eRIN pathway, we think that it really opens up a whole new avenue of development for us. We've been developing and operating electric landfill gas projects for 25 years, and that's really our legacy business and our bread and butter, and we see the growth of that really coming back as the eRIN pathway and other pathways for monetizing the cellulosic attributes of the landfill through an electric project.

嗨馬丁。喬恩在這裡。很好的問題。非常感謝。 eRIN 途徑的優點在於它支持收集這些有害甲烷氣體的政策。我認為它確實也促進了更小、更困難的項目。您會看到這些電力項目提供了巨大的價值。因此，除了我們大約 11 個電力項目將從 eRIN 途徑中受益之外，我們認為它確實為我們開闢了一條全新的發展途徑。 25 年來，我們一直在開發和運營電力垃圾填埋氣項目，這確實是我們的傳統業務和我們的麵包和黃油，我們看到隨著eRIN 途徑和其他通過纖維素屬性貨幣化的途徑，該項目的成長真正回歸。透過電力項目處理垃圾掩埋場。

So we do expect that our existing portfolio will benefit. We do expect that we'll be building more projects in the (inaudible) and we look forward to significant growth in that sector.

因此，我們確實預期我們現有的投資組合將會受益。我們確實預計我們將在（聽不清楚）建立更多項目，並且我們期待該領域的顯著成長。

And for a follow-up question, just on those alternative uses for the RNG. One of your competitors recently had announcement regarding a letter of intent for e-methanol. Could you maybe talk about some of these other pathways?

對於後續問題，只是關於 RNG 的其他用途。您的一位競爭對手最近宣布了一份關於電子甲醇的意向書。能否談談其他一些途徑？

I think that there's a lot of pathways that are developing. I think the e-methanol is certainly attractive. We see a pathway developing in Europe, and we see some of the prices in Europe competing with prices in the U.S. However, the transportation fuel market continues to be a strong market, both in terms of the CNG, RNG fuel as well as the growing electric vehicle market for it. So there will definitely be more and more options for monetizing the value of these, and that's just another tailwind for our business.

我認為有很多途徑正在開發中。我認為電子甲醇確實很有吸引力。我們看到歐洲正在發展一條道路，我們看到歐洲的一些價格與美國的價格競爭。然而，運輸燃料市場仍然是一個強勁的市場，無論是在 CNG、RNG 燃料方面還是在不斷增長的燃料方面電動汽車市場。因此，肯定會有越來越多的選擇來將這些價值貨幣化，這對我們的業務來說是另一個推動力。

Yes, this is Adam. Just a follow-up there. It's really interesting. As Jon was talking about before, what we're really doing here at OPAL Fuels is (inaudible) emissions. These are not agricultural biofuels. There's no food versus fuel debate. And it's not just here in the U.S., it's really everywhere where public policy is focused on figuring out how we can capture more harmful methane emissions. So even when we're looking at some of these electric projects where you could build landfill gas to electric facilities and perhaps sell the electricity, there are new pathways of developing all the time to still take those green attributes and find new markets for it. So it's not just dependent on eRIN pathway coming through. We think there could be additional value to some of these landfill gas to electric projects as other new markets and other new policies develop. So we're optimistic on some of these potential electric projects.

是的，這是亞當。只是後續行動。這真的很有趣。正如喬恩之前所說，我們在 OPAL Fuels 真正做的是（聽不清楚）排放。這些不是農業生物燃料。不存在食物與燃料之爭。不僅在美國，在任何地方，公共政策都致力於研究如何捕捉更多有害的甲烷排放。因此，即使我們正在研究其中一些電力項目，您可以在這些項目中為電力設施建造垃圾掩埋氣，或許還可以出售電力，但仍然有新的發展途徑，仍然可以利用這些綠色屬性並為其尋找新市場。所以它不僅僅依賴 eRIN 通路的通過。我們認為，隨著其他新市場和其他新政策的發展，其中一些垃圾掩埋氣發電項目可能會產生額外價值。因此，我們對其中一些潛在的電力項目持樂觀態度。

The eRIN pathway, obviously, is close to the front and center, but there can be other things that get developed as well.

顯然，eRIN 通路靠近前端和中心，但也可能有其他東西被開發。

And our next question is going to come from the line of William Grippin with UBS.

我們的下一個問題將來自瑞銀集團的威廉·格里平 (William Grippin)。

Great. Just wanted to circle back on the topic of eRINs here. And specifically, wondering if you could elaborate a bit more on maybe what you're hearing around how that program could develop. But I know previously before the final RVO came out, there were obviously some fears that, that could drive oversupply of D3. Do you think the EPA could somehow structure a program to mitigate that concern?

偉大的。只是想在這裡回顧 eRIN 的話題。具體來說，想知道您是否可以詳細說明您所聽到的有關該程式如何開發的內容。但我知道，在最終 RVO 發布之前，顯然有人擔心這可能會導致 D3 供應過剩。您認為美國環保署可以以某種方式製定一個計劃來減輕這種擔憂嗎？

Yes. That's a great question. This is Adam again. And look, it's still -- we're still early on in those conversations and the industry is still early on in those conversations, about talk. And you're exactly right, by the way, that was one of the things that drove the pricing of RINs down was how the implementation and the rollout of the eRIN program was happening. And that was one of the key messages that the industry gave back to the EPA and say, look, this is the right policy, let's just make sure that we're not disrupting the market and not capturing as much harmful methane as we can as that rolls out. And that's what we're working with right now, is just to make sure that there aren't unintended consequences from how that gets developed.

是的。這是一個很好的問題。這又是亞當。看，我們仍處於這些對話的早期階段，而且整個產業也仍處於這些對話的早期階段。順便說一句，您說得完全正確，推動 RIN 定價下降的因素之一是 eRIN 計劃的實施和推出。這是該行業向美國環保署反饋的關鍵訊息之一，並說，看，這是正確的政策，讓我們確保我們不會擾亂市場，也不會捕獲盡可能多的有害甲烷。推出。這就是我們現在正在努力的，只是為了確保它的開發不會產生意想不到的後果。

So there could be -- so we're still early on or the industry is still early on in those discussions. I think they're going to happen and continue to happen in earnest over the balance of the year. And that's exactly what we're trying to do is work with the EPA to make sure that, hey, let's make sure this policy works, new projects get developed to capture new methane, and that is structured in a way to continue to do the original intent of the RFS, which is to promote cellulosic biofuels and provide that strong framework to continue investment in development in the sector.

所以可能會有——所以我們還處於早期階段，或者整個產業還處於這些討論的早期階段。我認為它們將會發生，並且在今年餘下的時間裡將繼續認真發生。這正是我們正在努力做的，就是與美國環保署合作，確保這項政策發揮作用，開發新項目來捕獲新的甲烷，並且以一種繼續進行的方式構建RFS 的初衷是推廣纖維素生物燃料，並為繼續投資該行業的發展提供強有力的框架。

Got it. Appreciate that color. And then just as a follow-up, going back to the deconsolidation of the GFL assets, just curious, could GFL require you potentially to do this on other projects that you're working with them on? And also, forgive my lack of accounting knowledge here, but as a result of the deconsolidation of Emerald, does that change or impact the amount of EBITDA you're recognizing from that project?

知道了。欣賞那個顏色。然後，作為後續行動，回到 GFL 資產的拆分，只是好奇，GFL 是否可能要求您在與他們合作的其他項目上這樣做？另外，請原諒我缺乏會計知識，但由於 Emerald 的分拆，這是否會改變或影響您從該項目中確認的 EBITDA 金額？

Sure. So thank you for that question. And I'm going to just say right up front, there's a lot of complicated GAAP accounting that goes into all of this. Basically, the reason for doing this is because obviously, we've got the 2 projects today with GFL, but we do anticipate that our relationship will continue to grow, right? We've got the 7 additional projects that we anticipate. And they'll be part of this JV.

當然。謝謝你提出這個問題。我首先要說的是，所有這些都涉及許多複雜的公認會計準則會計。基本上，這樣做的原因是因為很明顯，我們今天與 GFL 有了兩個項目，但我們確實預計我們的關係將繼續發展，對吧？我們已經獲得了預期的 7 個額外項目。他們將成為該合資企業的一部分。

So now this entity becomes stand-alone for both of us, right, neither GFL nor OPAL will be consolidating its results. And results for us will continue to show up now on the P&L, basically, as an equity pickup, right, investment in equity affiliate. I guess as we think about adjusted EBITDA, it would flow through that way as opposed to flowing from revenue all the way down, right, as a consolidated entity once Emerald, let's say, comes into operation, revenue, et cetera, would flow through the income statement and that GFL's portion would have been backed out. So it's a long answer to saying we still get the EBITDA, but if it comes and add back, right, from equity pickup as opposed to flowing through and then (inaudible).

所以現在這個實體對我們雙方來說都是獨立的，對吧，GFL 和 OPAL 都不會合併其表現。我們的業績現在將繼續顯示在損益表上，基本上是作為股權收購，對，對股權附屬公司的投資。我想，當我們考慮調整後的EBITDA 時，它會以這種方式流動，而不是從收入一路向下流動，對吧，一旦Emerald 投入運營，收入等等就會流向，對吧，作為一個合併實體損益表中，GFL 的部分將被撤銷。因此，對於說我們仍然獲得 EBITDA 來說，這是一個很長的答案，但如果它到來並從股本拾取中加回來，對吧，而不是流過然後（聽不清楚）。

And the magnitude (inaudible).

以及幅度（聽不清楚）。

Correct. That's correct. But I think, again, as this relationship continues to grow, it becomes a -- you're a meaningful part of our business. And at this point, we think that this sets us up to include actually up top as part of revenue the equity earnings. That's how others in the space have done it previously, but you have to be able to demonstrate and justify that it is truly a part of your business, not just kind of a onetime event.

正確的。這是正確的。但我再次認為，隨著這種關係的不斷發展，您將成為我們業務中有意義的一部分。在這一點上，我們認為這使我們能夠將股權收益實際納入收入的一部分。該領域的其他人以前就是這樣做的，但您必須能夠證明並證明它確實是您業務的一部分，而不僅僅是一次性活動。

Yes, this is Adam. And just in summary, there was no change to any of the economics around the original 50-50 partnership. Previous to this JV, we were 50-50 partners with GFL on a project basis for both Sapphire and for Emerald. Nothing has changed there. So the adjusted EBITDA, no change, no change to how those are being run. And the JV really was set up to mostly grow and do more projects together.

是的，這是亞當。總而言之，最初的 50-50 夥伴關係的經濟學原則沒有任何變化。在此合資之前，我們與 GFL 在 Sapphire 和 Emerald 專案上有 50-50 個合作夥伴。那裡什麼都沒有改變。因此，調整後的 EBITDA 沒有變化，運作方式也沒有變化。合資企業的成立主要是為了共同發展和進行更多專案。

And let me just add, GFL didn't cause us or make us do this. This is just the accounting results from this joint venture.

我想補充一點，GFL 並沒有導致我們或讓我們這樣做。這只是該合資企業的會計結果。

Got it. I appreciate the clarification. I'll turn it back.

知道了。我很感謝您的澄清。我會把它轉回來。

I mean a better way to say it is it's a reflection, I think, of the growing commercial relationship between the two firms where the accounting is just kind of like what you have to do after the fact, but accounting did drive us here.

我的意思是，更好的說法是，我認為這反映了兩家公司之間日益增長的商業關係，其中會計工作有點像事後必須要做的事情，但會計確實促使我們走到了這裡。

(Operator Instructions) Our next question is going to come from the line of (inaudible).

（操作員說明）我們的下一個問題將來自（聽不清楚）。

So first on the project delays, is that pretty much all a case-by-case permitting issue? Or are there any outstanding supply chain concerns as far as delivery times? And how do you think about your confidence on the projects you had previously guided into 2024 at this point, as far as timing?

那麼首先關於專案延誤，這幾乎都是個案許可問題嗎？或者就交貨時間而言是否存在任何突出的供應鏈問題？就時間安排而言，您對先前引導至 2024 年的專案有何信心？

Thank you for your question. We continue to execute on our pipeline. We're not in any doubt as to the ultimate value of these projects, the delay is substantially permitting oriented. There's a few other odds and ends issues, but I would say that the substance of it is permitting delays. Like other companies in construction and particularly in RNG, there are a number of permitting authorities that touch on these projects during construction.

謝謝你的問題。我們繼續執行我們的管道。我們對這些項目的最終價值沒有任何疑問，延遲基本上是在允許的情況下進行的。還有一些其他的零碎問題，但我想說，其實質是允許延遲。與其他建築公司（尤其是 RNG）一樣，有許多許可機構在施工期間涉及這些項目。

Typically, we build in time frames for those but as I said earlier, each of these permitting authorities is its own local and individual group with various degrees of experience, particularly with this new product, RNG. The RNG projects really have a very impactful reduction in emissions locally and so ultimately, they're very attractive. And all of the (inaudible) authorities that we deal will see that and ultimately get comfortable with it but they do provide a level of scrutiny and questions.

通常情況下，我們會為這些制定時間框架，但正如我之前所說，每個許可機構都是自己的本地和個人團體，擁有不同程度的經驗，特別是在新產品 RNG 方面。 RNG 專案確實對當地的排放量減少非常有影響力，因此最終它們非常有吸引力。我們處理的所有（聽不清楚）當局都會看到這一點並最終對此感到滿意，但他們確實提供了一定程度的審查和問題。

I think a good example might be with our Emerald project. This project, we completed construction in June, we probably would have started commissioning a little bit earlier on it, but the permitting authority there just took more time in terms of the final permit to get us started on the commissioning phase, whereas it might have been started commissioning in early June, it really started in early July. So those types of delays are again, we try to build in, we try to deal with, but there's relatively small in nature. And from a big picture standpoint, when you go out 100,000 feet look at our business, (inaudible) power of these projects are uneffected and we'll continue to see as our business as we roll through 2023 and 2024.

我認為我們的 Emerald 專案就是一個很好的例子。這個項目，我們在六月完成了建設，我們可能會提前一點開始調試，但是那裡的許可機構只是在最終許可方面花了更多時間讓我們開始調試階段，而它可能已經六月初開始調試，七月初才真正開始。因此，這些類型的延遲再次出現，我們嘗試內置，我們嘗試處理，但本質上相對較小。從大局來看，當你走出 100,000 英尺的高度觀察我們的業務時，（聽不清楚）這些項目的力量不會受到影響，我們將在 2023 年和 2024 年繼續關注我們的業務。

And speaking of the construction portfolio, digging in a little on William's Paragon question and Derrick's CapEx liquidity question. It seems like now we've got kind of separately domiciled liquidity and CapEx requirements between Paragon and your wholly owned operations or consolidated operations. On a go-forward basis, do you plan on separating out your proportional or gross JV spend versus what you have to spend on balance sheet for capital projects?

說到建設投資組合，深入探討 William 的 Paragon 議題和 Derrick 的資本支出流動性議題。現在看來，Paragon 與您的全資營運或合併營運之間有某種單獨註冊的流動性和資本支出要求。展望未來，您是否計劃將合資企業的比例或總支出與資產負債表上資本項目的支出分開？

So Craig, are you asking are we just going to break it out for reporting purposes? Or are you asking more from the perspective of separate facilities for JV things versus kind of 100% owned project?

克雷格，你是問我們是否只是為了報告的目的而分解？或者您是否從合資項目的獨立設施與 100% 擁有項目的角度提出更多要求？

I'm talking less about GAAP reporting than looking out over the next year or 2 in terms of CapEx requirements and outlook.

我談論的不是公認會計準則報告，而是展望未來一兩年的資本支出需求和前景。

Got it. Okay. So I think from our perspective, I mean based on where we sit right now, the relationship with GFL, I think, is a unique one, right? It's a large relationship due to Emerald and Sapphire and it's growing. So we took the actions that we took, right, as a result of evaluating that relationship. I think at this point, we continue to be interested in obviously building projects that we have 100%, but there are projects in the ADP where we have a partner. Based on where we sit right now, I don't envision that we would do a similar thing to what happened with GFL but again those relationships also took off with the amount of group that we see. I don't know that we would be opposed to it either, right?

知道了。好的。所以我認為，從我們的角度來看，我的意思是，根據我們現在的立場，我認為與 GFL 的關係是一種獨特的關係，對嗎？由於祖母綠和藍寶石，這種關係非常大，而且還在不斷增長。因此，我們採取了我們所採取的行動，對吧，作為評估這種關係的結果。我認為在這一點上，我們顯然仍然對建造我們 100% 擁有的項目感興趣，但 ADP 中有一些項目我們有合作夥伴。根據我們現在的情況，我不認為我們會做與 GFL 類似的事情，但這些關係也隨著我們看到的團體數量的增加而迅速發展。我不知道我們也會反對，對吧？

Again, you want to maximize the commercial relationship and ultimately the economic benefit and you do what you have to do behind the scenes to support it.

同樣，您希望最大化商業關係並最終實現經濟利益，並且您需要在幕後做一些必須做的事情來支持它。

And I'm showing no further questions at this time. And I'd like to turn the conference back over to Adam Comora for any further remarks.

目前我不會再提出任何問題。我想將會議轉回亞當·科莫拉（Adam Comora），以便他發表進一步的評論。

All right. Well, thank you very much for your interest in OPAL Fuels and joining us today, and we hope everybody has a great day.

好的。好的，非常感謝您對 OPAL Fuels 的興趣並今天加入我們，我們希望每個人都有美好的一天。

This concludes today's conference call. Thank you for participating. You may now disconnect.

今天的電話會議到此結束。感謝您的參與。您現在可以斷開連線。