Hello, welcome to Virtual Investor Conferences. On behalf of OTC Markets, we're very pleased you have joined us for the Clean Energy and Renewable Conference. The next presentation of the day is from EverGen Infrastructure. Please note you may submit questions for the presenter in the box to the left of the slides. You can also view a company's availability for a one-on-one meeting by clicking Book a Meeting. At this point, I'm very pleased to welcome Chase Edgelow, Co-founder and Chief Executive Officer of EverGen Infrastructure, which trades on the OTCQB Venture Market under the symbol EVGIF, and on the TSXV under the symbol EVGN. Welcome, Chase.
Thanks, Greg. Thanks for having us. Thank you to everybody that's joined, and we'll get started here. We've positioned EverGen for growth in terms of building what we see as a leading RNG infrastructure platform in North America. The way I'd frame our business for those that are new to the EverGen story, we own real assets producing real cash flow. We're improving performance, and we've got a clear path to EBITDA growth from the optimization, as well as the investments that we're making into our assets. Our primary product, renewable natural gas, is a practical drop-in fuel that integrates directly into the existing gas infrastructure network across North America, which is important as energy demand is continuing to grow, as well as hyperscalers that are looking for clean energy options. We provide that existing drop-in option.
We positioned the business through recent transactions to execute with a refreshed board and management team and increased balance sheet flexibility that allows us to grow by having asset-level financing. We've got flexibility at the corporate level. I'm excited for this business. I chose to step back in as CEO in May of last year because of the value creation opportunity that we see for our shareholders. Why we think EverGen is a good investment at this time and why we chose to become involved again in this, in this business is simple.
It starts with the high-quality asset base that we own, and we'll get into, but we've invested nearly CAD 80 million in our core asset portfolio, and we see a lot of expansion runway as well as future growth opportunity that comes from owning these assets and having a really strong team that operates these types of assets. Why these assets are appealing? They come with long-term contracted cash flow. This is in the form of municipal feedstock contracts as well as 20-year plus utility-grade offtake agreements for our renewable natural gas. Our visible EBITDA growth, as you can see on the left of this slide, has been driven by increasing RNG production, and we will continue to step up that level of production through optimization and expansions.
At this time, we're currently at a very attractive valuation relative to our peers, our historical asset performance, and the CAD 7 million that we raised at CAD 0.60 a share through May of last year and following with a CAD 2 million private placement in January of this year. This is our long-term investor base supporting our story, and for those that are trading on the market, a very compelling opportunity to invest at a discount. Where we are today in terms of capitalization, we've got approximately a CAD 10 million market cap. Remember that for later when we look at where we think we can take the equity value of this business. 25.5 million shares outstanding.
We've completed in January a transaction with Farm Credit Canada to push the majority of our debt down to the asset level, as I mentioned, providing financial flexibility to grow. One of the most important attributes as we look for alignment in that long-term growth and positioning EverGen for the future is the 72% ownership that's held by board, management, and institutions, primarily being long pensions and family offices that are aligned with our growth story. We built and intentionally focused on the operations side of our business, bringing in Ron Green in May of last year. Given his 30 years experience in turnarounds and operational excellence, he's really allowed a strong team across all of our assets to shine. Ron has built companies from zero to CAD 100+ million in revenue and brings a lot of relevant experience as we grow EverGen.
Maria O'Sullivan, our CFO, comes from both a public and private accounting background that has a plethora of experience in energy businesses like EverGen and complicated structures where there are multiple subsidiaries like EverGen, which allows us to continue to grow and finance the business. Myself, I come from a background of 20 years in the energy sector with a lot of that experience coming from making private equity style investments at Macquarie into businesses like EverGen, where there's long-term, stable, predictable cash flow. Ultimately, we're building a platform that we think will be worth multiples of what assets might be worth on their own.
We've assembled a best-in-class team of directors around the business, tried to surround ourselves with individuals that both bring passion and have, you know, a experience set that is complementary to each other. If you look across the board here, we have infrastructure expertise, we have circular economy expertise, we have energy transition expertise, as well as public markets and legal expertise that we think are instrumental to growing the business. I think most importantly, this, you know, this group of directors is aligned with returning shareholder value. Now looking at our asset base, EverGen is not a, you know, is not a single asset base, single asset business. It's also not aspirationally building greenfield projects. We're underpinned by cash flow that comes from four operating assets in Western Canada, which we'll get into.
We also have a project pipeline of growth projects, including expansions of our existing core assets, and a greenfield pipeline that we've started to rebuild, but is underpinned by a large-scale RNG project that we call Project Radius in Ontario. What we do. What we do is really, I think it touches the lives of nearly, you know, nearly everybody in North America in terms of where we fit in the ecosystem. We take organic waste at our facilities, whether it's food waste, agricultural waste, or pre or post-consumer food waste differentiated from residential pickup. All of this food waste is collected typically by third parties, sometimes hauled directly to us, and it comes to our facility where we look to extract the maximum amount of methane as that food waste decomposes.
For those that are unfamiliar with the process, one of the greatest greenhouse gas emitters historically has been the decomposition of organic matter on the planet, both from landfills, from places where we accumulate biomass, and our goal is to capture as much of that methane as possible because it's a drop-in fuel that we can put directly into our existing pipeline network. We look here, we get paid to take feedstock on the left-hand side. We bring it in, that food waste comes into our facility. We capture the biogas, the methane as it's decomposing. We clean that methane up so that it meets pipeline spec, and it typically involves removing the CO2, and then we put it into our grid.
As we're selling that gas into the grid, we're selling it on long-term fixed price contracts, which underpins the infrastructure nature of our business. On this slide, our core portfolio, you can see we've got two assets in Abbotsford, one out Burton asset and another asset that's near Whistler. Our headquarters are in Vancouver, BC, right in the middle of these four assets. We see a lot of synergies both north and south of the border with projects that have been either built and owned and operated by smaller farms that would look similar to the assets that we own and we think we could bring a lot of value to, as well as built by technology providers to showcase maybe a new technology that we think we can bring operational excellence to.
If I look at the portfolio today, we're gonna continue to build and shift, but this provides our cornerstone. Fraser Valley Biogas and GrowTEC are currently producing RNG, around 200,000 GJs per year. We typically get paid around the CAD 30 per GJ mark, so you can see that providing CAD 6 million of revenue from those RNG sales, give or take. Pacific Coast Renewables is an RNG expansion project for us, currently a composting facility, as is Sea to Sky Soils, where collectively we take in close to 60,000 tons of organic waste a year. Typically, tip fees for that organic waste, what we get paid by the municipalities, range from CAD 120-CAD 150 a ton in this market.
Significant revenue on the tip fee side as well as on the RNG side longer term at those two facilities. One of the things that makes this sector compelling for us is that we're using proven technology. We're operating in a space where we're providing a solution to those that have organic waste. We're not necessarily reliant on a clean energy push. There needs to be a solution for waste, and that the solution for the product that we're making is coming in the form of utility contracts. We have three contracts currently at our two RNG facilities, two of those with FortisBC, one of those with Irving. These contracts range from 10 years-20 years in length. They are fixed price floor contracts.
We know that at the start of every year, if we produce 200,000 GJs of RNG, we're going to have that locked in revenue. There also are upsides for us. We typically have some exposure to the carbon credits that we generate as well that provides a kicker on top of these contracts. You can see that on the right-hand side. What you see at the top of that chart is the spot U.S. market. It can really range. The reason it ranges is that those spot prices for renewable natural gas or effectively green natural gas range from $20-60 and potentially higher. That stack in the U.S. comes from California and LCFS credits, RIN D3 RIN credits, and as well as there's been an introduction of a 45Z tax credit that again buoys the three-part revenue source in the U.S.
In Canada, it's a lot simpler. We're doing fixed price contracts. The utility is taking all of the risk of the credit pricing regime. These are take or pay contracts. We've got flexibility as we grow to maybe have more exposure to the spot market if we like it. So far, we've chosen the infrastructure model of long-term fixed price contracts as our preferred method. Our strategy is relatively simple. Our goal with our initial recapitalization transaction was to stabilize the business. We've achieved nameplate capacity of approximately 97% across our core RNG assets in 2025. Optimize and really optimizing for a cash flow focus. These are debottlenecking reliability upgrades. It speaks to the strength of our team in terms of the projects that we have on our list that can add significant value. Build.
This is all about capital discipline, but build projects that we see a strong return in and do that in a capital efficient manner. One of the ways that we do that is we do operate in a sector where there is what we see as incremental returns that can be unlocked by grant funding. At the Pacific Coast Renewables RNG project, as an example, we've secured a CAD 10 million award from the Clean Fuels Fund, which helps. That's about 30% of our CapEx and helps improve returns and capital efficiency. Growth.
I think what is setting EverGen apart is that 97% uptime is the optimization that we've been able to achieve and really bringing an oil field and an oil field services mindset of excellence and safety culture and profitability focus to a sector that has been a bit of a cottage industry for 20 years and then maybe more recently had a significant amount of capital thrown at it. This has left a really interesting playing field for us to basically demonstrate our success at our existing assets and then go after consolidation and M&A. What does growth look like for EverGen?
You can see here that as we go through those four stages of stabilizing the base asset optimization, near-term growth projects, and then into greenfield and consolidation, we've got growth that significantly increases our RNG production and we've got the relationships to contract that gas or to take more merchant exposure. When we look at the long-term forecast, over half a million gigajoules, at CAD 30 a gigajoule, that's CAD 15 million of revenue from RNG increasing from around the CAD 6 million mark today. This is our value build. This is the so what for EverGen? What does it look like if we achieve those growth targets on the prior slide? Today, we're looking at a run rate EBITDA in the CAD 3 million range.
With asset optimization, we believe we can take that to CAD 5 million-CAD 8 million, which if even at a low-end value for a portfolio of this nature, we think implies an EverGen enterprise value of CAD 40 million-CAD 80 million with net debt at the time of about CAD 15 million. That for us, we're looking at CAD 25 million-CAD 65 million of equity value just in the near term with a current market cap of CAD 10 million. That really speaks to the leverage and the torque that we saw when we stepped back into the fold back in May last year. As you can see, increasing scale in the medium term and long term continues to provide leverage for our shareholders. As we get into maybe the macro picture, I think we've been pleasantly surprised.
I think we thought we would be fighting against a turning tide with changing governments on both sides of the border in this space. What we've found, and part of the reason that we were attracted to RNG in the first place, is that it falls in a really interesting sweet spot in terms of low-hanging, lower-cost energy transition infrastructure, and therefore a stayed-on in terms of mandates for government support. We've also seen on the Canadian side of the border, our credit pricing, our carbon credit pricing, significantly increased since the election from around CAD 80 a ton- CAD 300 a ton. We have exposure to that, as I mentioned, upsides in our contracts where we get, you know, additional revenue from CFR credit sales. That's, you know, that's been a great win for us. Funding.
Both the Clean Fuels Fund was renewed, as well as the 45Z Clean Fuel Production Credit. We believe these programs will continue to increase our capital efficiency as we look at new projects. Ultimately, we're, you know, we're an energy company. The AI-driven load growth for the hyperscalers and what we're looking at for cloud data centers across North America leaves a gap for a drop-in fuel like RNG to achieve some really easy wins. When I say that, the reason for it is every molecule of methane that's sequestered, that's captured by an RNG facility is effectively worth 30x a molecule of captured CO2. That's how you drive a really capital-efficient decarbonization.
You know, we've been relatively quiet in terms of marketing the business. We've been head down, focused on execution over the last nine months. What we've achieved, we've had record production in terms of RNG for the last four quarters. We've brought in CAD 7 million of capital at CAD 0.60 a share, which has really, you know, rejuvenated the business, aligned a new board and management team, and provided a shareholder base that's aligned for long-term growth. We recently completed in January our debt facility with Farm Credit Canada that allows us to put the bulk of our financing at the asset level and give us another lever for growth. What we look at for upcoming results is continued optimization and growth from our core asset base.
Our PCR RNG project, we're looking to receive our approval on permits and move towards project FID. We have the grant funding there to utilize. Ultimately, what you'll see from us is a continued delivery on additional projects. We've, you know, built the base here so that we can grow. We've built a strong cornerstone of producing assets, ultimately the goal is to replicate that business model. In summary, you know, why EverGen? Why, you know, is this a place that you should, you know, consider putting, you know, capital to work? From our perspective, it's the high-quality asset base driven by and underpinned by contracted long-term cash flow, coming at a time where there's visible EBITDA growth coming from our optimization and expansions.
You know, surprisingly, but, you know, favorable regulatory environment for low-carbon fuels like RNG. At this moment, a very attractive valuation relative to peers. You know, we're committed as a management team to delivering results. You know, our job is to focus on the operations. We think that with those results, you know, a re-rate and evaluation that reflects the assets that we have will follow. With that, we'll conclude the formal presentation side of today and move to some questions that I see we've got here in the chat. Question number one, record RNG production in Q4 suggests real operating momentum. What are you doing now to push production to the next record level? This is really two parts. It's one part optimization of our existing assets.
There are, you know, there are things that we're doing from a feedstock management side, from a production management side, and from a gas delivery side that we think can add, you know, that 30,000+ GJs to our existing assets with really low capital. We're also looking at a number of capital projects, including the piece that will in the RNG. Next we have saying you've
I apologize for the technical difficulties here. We have lost connection with Chase, and we are working to get him back online. Thank you for your patience. All right, Chase. Thank you for getting back. Sorry for those technical difficulties. You can continue on with your questions.
Great. I assume, that all of the audio continued to work there?
No. You might wanna repeat back over, most of the questions.
Okay. That's fine. Thanks, Anna. I believe first question if I go back here was: Record RNG production in Q4 suggests real operating momentum. What are you doing now to push production to the next level or next record level? I think that's really a two-part answer, and I'll be a little more concise here given the time. One, we continue to see optimization opportunities where our nameplate capacity at our two operating RNG facilities is closer to 230,000 GJs annually. With those optimizations on the front end and the back end of our facilities, you know, we're seeing the ability to extract more production. We also have projects, capital projects like the PCR RNG expansion project, which is gonna drive that RNG growth.
Next, there was a question around an inbound strategic interest. I think it was referring to a press release last year where the company formed a special committee. Really, that was around the interest that we had brought, and the recapitalization transaction that occurred in May. As it stands today, we are always looking at creative ways to fund our growth. We're seeing a lot of interest in infrastructure platforms like EverGen. Our, you know, our view is that with a strong supportive shareholder base, ultimately the platform that we're building is worth multiples of where it's currently trading. I think, you know, what the market is missing is just a consistent focus on, you know, accumulating positions in EverGen.
We don't have a large following, I think the minute that people start to see what we're doing, the reality is there's not a lot of free float out there. I think quickly that, you know, those shares that are trading on market at maybe a discount will get accumulated quickly, and you'll see a quick reversal in terms of valuation. Next question was about government funding. It was: How repeatable is our success in attracting grants and government funding as we pursue additional greenfield projects?
You know, I'll say that our team has been incredibly lucky or incredibly successful at attracting grant funding. We believe that there will continue to be government support given the logic, industrial logic behind RNG as a transition fuel. Our team is very well-positioned to attract that funding. Certainly we think it will continue to provide lower cost capital to our projects. Andrea, I know we're... You know, we had a technical difficulty, but in terms of time, are we over time here? Do we have time for a few more questions?
Yes. Take one or two more questions, and then we wr ap up.
Great. Next question: With the Clean Fuels Funding 2.0, how long does it typically take for new funds to be awarded? What amount could that be? You know, typically the award cycle, we've seen it take, you know, one year- two years. Once contracts for grant funding are awarded, there's a negotiation that goes on to enter into it, effectively a definitive agreement for that funding. We, you know, we believe that there will be, you know, there will be awards announced in the next six months. Final question: With AI load growth and utilities searching for firm low-carbon molecules, how well-positioned is EverGen to become a go-to RNG counterparty for utilities looking to scale quickly but reliably? I think the answer to that is very well-positioned. You know, I...
One of the, I guess, claims to fame of one of our projects, Fraser Valley Biogas, is that it was one of the first grid-connected RNG facilities in North America. We've got a 12, you know, 12-year to 15-year-plus track record of delivering RNG to utilities. I think with our oil and gas style operational capabilities, we've proven that we can be more reliable as a partner. I think a lot of utilities have gone out and executed deals with smaller developers that don't necessarily have those operational capabilities. For sure, we wanna become a go-to counterparty, and that is a growth avenue for us as we scale across North America. I think with that, we'll leave the remaining questions.
Please feel free to reach out, and we'd be happy to answer those directly following the call or set up one-on-ones for those that have additional interest in our company and are following the stock.