- Output volumes: Archaea’s output of renewable natural gas grew from the second quarter, driven in part by the recent ramp-up of its Assai landfill gas facility in Pennsylvania and Soares dairy facility in California. Its July acquisition of INGENCO, which came with 14 landfill gas-to-electricity sites, also boosted production.
- Financial performance: Archaea’s year-over-year revenue was up substantially, from just shy of $12 million in the third quarter of 2021. The company said its net loss was driven by higher general and administrative expenses, higher gas and electric utility costs and higher royalty payments related to those elevated energy values.
- Capital allocation: Archaea reported spending $366.3 million in the quarter, including $267.5 million (net of cash acquired) on the INGENCO purchase and other landfill gas assets. The company also spent $98 million on development, including the purchase of parts and related investments for upcoming projects.
- Looking ahead: Archaea’s planned sale to BP, valued at $4.1 billion, is on track to close by the end of the year pending regulatory approval. Archaea executives did not host a quarterly earnings call in light of the transaction. The company’s shareholders are set to vote on the transaction Dec. 13.
Archaea revenue grows, RNG output rises ahead of sale to BP
The Texas-based company, which specializes in creating energy from gas at landfills and other sites, continues to ramp up operations.