EverGen Infrastructure (EVGN) Q2 2024 earnings summary

Executive summary

• Achieved record quarterly revenue and adjusted EBITDA in Q2 2024, driven by increased RNG production, ramp-up of Fraser Valley Biogas, and new long-term offtake agreements.

• Completed major milestones, including record production at Fraser Valley Biogas, execution of a 20-year offtake agreement, and long-term feedstock arrangements.

• Net loss remained stable compared to Q2 2023, despite higher finance and engineering costs associated with FVB.

• Development focus shifted to advancing FID at Pacific Coast Renewables, GrowTec Phase Two, and Project Radius.

Financial highlights

• Q2 2024 revenue was $4.24M, up 96% from $2.16M in Q2 2023, mainly due to higher RNG output.

• Adjusted EBITDA rose to $1.12M from $0.38M in Q2 2023, reflecting higher revenues and increased operating costs.

• Net loss for Q2 2024 was $0.88M, nearly unchanged from $0.89M in Q2 2023.

• Cash and cash equivalents stood at $0.4M, with total assets of $93.8M and long-term liabilities of $29.3M as of June 30, 2024.

• Working capital surplus decreased to $1.0M from $7.0M year-over-year.

Outlook and guidance

• Targeting Fraser Valley Biogas to reach nameplate capacity by end of Q3 and potentially exceed it by year-end, with upside to 200,000 gigajoules annually.

• Expecting FID at Pacific Coast Renewables and GrowTec Phase Two by end of Q3, and Project Radius by mid-Q4.

• Management expects significant, sustained growth as operations scale and the development pipeline advances.

• Long-term offtake agreements secured for key projects, supporting revenue stability.