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, higher tipping fees at Regina, and improved pricing at Pacific Coast Renewables.

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

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

Financial highlights

• Revenue rose 96% year-over-year to $4.2 million in Q2 2024, up from $2.2 million in Q2 2023, mainly due to higher RNG output and organic waste volumes.

• Adjusted EBITDA increased to $1.1 million from $0.4 million year-over-year, reflecting higher revenues and increased operating costs.

• Net loss was $0.9 million, consistent with Q2 2023, as higher EBITDA was offset by increased depreciation, finance, and engineering costs.

• Direct operating costs (excluding depreciation) increased 75% year-over-year, about 10% above expectations due to timing of repairs and maintenance.

• Working capital surplus decreased to $1.0 million from $7.0 million year-over-year, aided by identification of non-core assets for sale.

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.