WHITE PLAINS, N.Y. - OPAL Fuels Inc. (NASDAQ: OPAL), a $95 million market cap company specializing in renewable natural gas (RNG) and renewable electricity production, has entered into a long-term agreement to supply RNG to a leading freight logistics operator. According to InvestingPro data, the company has maintained profitability over the last twelve months, with positive earnings per share of $0.18. The contract covers the provision of RNG for five new fueling stations currently under construction, which OPAL Fuels will also service under existing long-term agreements.
The six-year supply agreement is expected to generate approximately 12 million gasoline gallon equivalents (GGE) annually once all stations are operational. Two of the stations are scheduled to begin operations this month, with the remaining three to be commissioned within the next six to twelve months.
Adam Comora, Co-CEO of OPAL Fuels, emphasized the significance of the agreement in the context of the company's commitment to reducing carbon emissions in the heavy-duty trucking industry. The company has demonstrated strong business momentum, with InvestingPro analysis showing impressive revenue growth of 30% in the last twelve months, despite operating with moderate debt levels. He highlighted the financial and sustainability benefits of RNG as a diesel alternative and expressed enthusiasm for the company's role in providing a "Cleaner, Cheaper, Now" fuel solution that helps fleets reduce operating costs and carbon footprints.
OPAL Fuels is recognized for its expertise in capturing and converting biogas into low carbon-intensity RNG and renewable electricity, as well as marketing and distributing RNG to the heavy-duty trucking and other industrial sectors that are challenging to decarbonize.
This agreement marks a continuation of a decade-long partnership between OPAL Fuels and the unnamed logistics provider, expanding an extensive network of fueling stations across the United States.
The announcement is based on a press release statement and contains forward-looking statements that involve risks and uncertainties. These statements do not guarantee future performance and are subject to change. OPAL Fuels has advised that the forward-looking statements are based on reasonable estimates and assumptions but are inherently uncertain.
Investors and other interested parties should not place undue reliance on these forward-looking statements, which reflect the company's views only as of the date of the statement. OPAL Fuels has no obligation to update any forward-looking statements to reflect new information or subsequent events or changes in circumstances. InvestingPro analysis indicates the stock is currently undervalued compared to its Fair Value, though investors should note that the company is quickly burning through cash. For deeper insights and access to 6 additional ProTips, along with comprehensive financial analysis, consider exploring the full OPAL Fuels Pro Research Report, available exclusively to InvestingPro subscribers.
In other recent news, OPAL Fuels reported notable developments in its operations and financial performance. The company posted a strong third quarter in 2024, with an adjusted EBITDA of $31 million, a substantial increase from $16.5 million in the same quarter of the previous year. Revenue also rose to $84 million from $71.1 million, primarily due to the successful commissioning of two new renewable natural gas (RNG) projects, Sapphire and Polk, and robust environmental credit sales.
Additionally, OPAL Fuels has appointed a new Executive Vice President of Biogas, a role that will be crucial in driving the company's commitment to delivering cleaner and more cost-effective fuel solutions. The new EVP, with over two decades of industry experience, is expected to enhance operational efficiencies and contribute to the company's strategic growth plans.
During the earnings call, OPAL Fuels' management expressed confidence in the continued support for RNG initiatives, despite potential political uncertainties. They highlighted the strategic importance of natural gas in heavy-duty trucking and renewable power generation. These are recent developments in the company's operations and financial performance.
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