OPAL Fuels Inc. (NASDAQ:OPAL) Q4 2022 Earnings Call Transcript

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Derrick Whitfield: Again, I wanted to ask a follow up on the last question and ask you really to elaborate on the competitive landscape more broadly. As you’re aware and have noted, we’ve observed unprecedented levels of M&A for RNG assets over the last year with an increased focus more recently in the downstream side based on the BP TravelCenters’ potential acquisition. In your view, what do these transactions imply about the value of your business and how do they alter the competitive and operating environment for you? Seemingly, there are less agile guys at the table right now versus past periods.

Adam Comora: I actually thought that was a pretty interesting acquisition that BP made there. And I think the read through is it’s something that we’ve talked about in the past about being vertically integrated and where price and power could be for alternative fuels into the sort of Class A industry. And from my perspective — and we’ve seen a couple of these other smaller private downstream players as well get acquired by other major EMPs. We feel it’s a little bit of a validation of sort of what we put together here and grown organically. And I think there’s some interesting opportunities as a vertically integrated player and we’ll see how that plays out. Historically, deployment in this industry has really been sort of a behind the fence kind of model and dedicated fueling.

We think that 15 liter engine is going to open up some new opportunities with some trucking and logistics fleets, and maybe there could be ways to look at how future deployments could be. And we have seen, obviously, a lot of M&A activity on just the upstream production side as well. So we feel like it’s an interesting read through for what we’ve put together here at OPAL Fuels.

Jonathan Maurer: And if I could just say, Derrick, that, in general, the pendulum continues to move towards decarbonization and the value of renewable fuels continues to be central to those strategic players and now to financial players as well. And so we continue to see a lot of interest. As I was saying earlier, I feel like, the country and the world is kind of leaning into this sector and you continue to see it quarter-after-quarter as companies are making moves towards that decarbonization and how they’re going to play in that in the future. It’s a tough decision for a lot of people to make and then to find the right opportunities of companies that are growing and essential to the space really provide that opportunity.

Operator: I’m showing no further questions at this time. I’m going to turn the call back over to Adam Comora for any closing remarks.

Adam Comora: Thank you very much for your participation in OPAL Fuels’ full year 2022 earnings call. We look forward to continued engagement and dialog. Have a great day.

Operator: Thank you. Ladies and gentlemen, this does conclude today’s conference. Thank you all for participating. You may now disconnect. Have a great day.

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