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Up 7.69% at the momen.. CLNE will be my future ATM
Time to make serious money Pack.. I have a lot of money riding on this baby .
Oh boy my $3 call option for Sept 20 is looking pretty..
I couldn't resist I added another 300 shares @ 7.48 to my holdings..
Let see if DVAX can turn around because its been painful to see dropped from its highs..
I totally agree..
Clean Energy Fuels Sees A Green And Profitable Future
Mar. 19, 2019 5:22 PM ET | About: Clean Energy Fuels Corp. (CLNE), Includes: WPRT
The Political Economist
Growth, long only, dividend investing
Why is there Still Hunger?
(304 followers)
Summary
Clean Energy Fuels stock surged over 25% after their Q4 2018 earnings report.
The massive buying was not a short squeeze; medium-term guidance warrants the optimism.
Key to consistent and increasing profits is growing supply of carbon-neutral renewable natural gas, and the company's partnership with BP ensures a growing supply.
Clean Energy Fuels rarely makes a quarterly profit. Now, they can see a future with consistent profits, every quarter and every year.
The company scored a minimal GAAP profit in Q4, with a small Non-GAAP loss. More impressively, in their main business, selling natural gas fuels at filling stations, their revenues increased over 20%, year-over-year.
While volume was up only slightly for the year 2018, the company sees a "low two-digits" increase in volumes in 2019. Within that, they see a 40% increase in renewable natural gas fuel volumes, similar to the increase in 2018.
In their 2019 guidance, the company did not include any Alternative Fuel Tax Credits, foreseeing a loss of 12 to 18 million. In 2018, the company had a GAAP net loss of 3.8 million, but this included $26.7 million in credits.
Now, it is not a done deal, but CLNE CEO Andrew Littlefair expects the tax credits to be approved by Congress and the President in the near-term. The credits will almost certainly apply retroactively, so CLNE would receive credits for the 365 million gallons they sold in 2018 in funds paid to them in 2019.
So, let's assume that the federal government pays the company the same exact amount in tax credits for 2018 that they paid the company for fuel sold in 2017, namely $26.7 million. So, add that to the midpoint of a 15 million loss, and you get a GAAP profit of 11.7 million dollars. It should be more than this amount, as there was volume growth in 2018, but we'll go with this number to be conservative.
The 11.7 million in GAAP profit divides by over 203 million shares, and you get over 6 cents per share in profit. This represents an 8 cent increase in profit/loss per share.
Just how much will volume grow in 2019? According to CFO Robert Vreeland on the Q4 conference call:
Our volumes are anticipated to grow in the low double-digits and our effective margin per gallon for 2019 is expected to be within a range of $0.24 to $0.28, which is a similar effective margin we are seeing today, but for 2019 on much higher volumes.
What exactly does low double-digits mean? Does that mean 12%? Does that include some of the truck fleets that CLNE is currently negotiating with? If they sign up 100 trucks for 20K gallons, that adds 2 million gallons to volume. If they sign up 500 trucks for 20K gallons, that's 10 million gallons extra.
Neither of those numbers sound astounding compared to the 365 million gallons sold in 2018, but they stated that SG&A will remain flat; they've largely built out their network of filling stations and just need more vehicles at each station; and margins will remain in the 26 cents per gallon range, "but for 2019 on much higher volumes." So each million in incremental volume drops more to the bottom line than the last million gallons.
Considering that each gallon-equivalent of natural gas fuel is about one dollar cheaper than diesel, the 26 cent margin on each gallon looks like a massive profit-pad to expand or contract. Meaning, even if diesel gets cheaper relative to natural gas, they have a lot of room to work with and still make a gross profit. Diesel could also get more expensive, for more than just supply and demand reasons. Carbon taxes may play a role, and some places like California may charge fines for diesel engines.
Redeem
One of the main concerns about Clean Energy Fuel's renewable natural gas fuel, named Redeem, was the supply. It was thought that CLNE could sell as much Redeem as they could produce. It is a green fuel that takes methane that would have been released into the atmosphere anyway and turns it into fuel. The process of producing Redeem can also create byproducts such as fertilizer and industrial carbon dioxide to be sold to other companies. This is all to say that one can look at Redeem as a carbon-neutral fuel.
When CLNE sold their RNG production plants to BP, they not only gained over $150 million, but they also gained a partner that can, apparently, supply them so much RNG that CLNE now has 53% of the market in vehicular RNG. CLNE sold 110 million gallons of Redeem in 2018, and they plan to increase that amount by 40% in 2019, meaning 154 million gallons. That sounds like a massive increase, but my jaw dropped when I heard what CEO Littlefair had to say about the amount of RNG that may be produced in the United States in the future:
And I think California alone over the next few years will be able to produce up to a couple of billion gallons of renewable natural gas. That'll take a few years to do. And of course, we're talking about supplying next year 400 some odd million nationwide for whatever it is, if you do the math. So, I think the country can get into the several billions of gallons of renewable natural gas as these dairy farms and wastewater treatment plants and landfills and renewable sources get tapped. It's very viable, and when you start comparing it to what's necessary to do this other stuff that people talk about, there isn't anything that's as commercial and as environmentally friendly and available as this.
Hold your horses! Or not. Let's say that California, by itself, is able to produce 750 million gallons of RNG fuel each year, and that CLNE sells half of that amount. That's more than tripling their current sales of Redeem in California, where CLNE's network of filling stations is already extensive.
As for the rest of the nation, estimates are probably more shaky there, as the policy landscape continues to shift, but always it seems in favor of RNG. States as varied politically as New York and Utah continue to look to exploit the methane escaping from their landfills and cow anuses. But let's say it is five billion gallons in five years. It's conceivable that by 2025, the year that CLNE plans to sell 100% Redeem fuel and only Redeem fuel, they may sell it at a clip of a billion gallons a year. If they still maintain over 50% of the market, that number would be 2.5 billion gallons.
Fantasyland? Even with a highly compromised Green New Deal, the 5 billion gallon figure becomes very likely. Using methane escaping our wastewater, for instance, is some of the lowest-hanging fruit in carbon reduction. Methane is 23 times more potent a greenhouse gas than carbon dioxide, so capturing it and burning it into carbon dioxide and water, while avoiding the burning of billions of gallons of dirty NOx-spewing diesel fuel, yeah, that's a no-brainer stacked on top of a no-brainer.
Finally, with the improvement and scaling of Westport Fuel Systems' (WPRT) near-zero NOx natural gas engines, as well as their HPDI 2.0 engines, and with the very slow development of electric heavy duty trucks, one of the fastest and most affordable ways of reducing CO2 and carcinogenic NOx emissions is to switch large trucks to natural gas engines. If you're budget is limited and you value NOx reduction as much as carbon reduction, the optimal bang for your buck is with natural gas engines.
According to the Q4 comments of CEO Littlefair, the reviews for the new Westport engines are very positive.
Tesla (TSLA) claims that they have a semi-truck coming, but not only is this in experimental stages, but the infrastructure for super-charging enormous machines like semi's is not there at all. Clean Energy Fuels has built out over 500 stations just on their own, for natural gas refueling.
Over 17,000 trucks must be replaced at the Port of Los Angeles/Long Beach as a result of new CO2 and NOx (carcinogenic smog) regulations. The most economic way is through CNG and LNG heavy-duty trucks. If Westport gets an annual boost of 1000 trucks from this new policy, which is very likely, the company will get an immediate 12% boost for their joint venture with Cummins (NYSEARCA:CWI). In essence, CLNE's "Zero-Now" financing program for CWI trucks benefits WPRT as much as it benefits CLNE in the immediate term.
I am projecting the CWI sells about 9000 units in 2018 (we will see when WPRT reports), and a boost of 1000 or 2000 trucks would represent a watershed year for Westport Fuel Systems. CLNE would not be fueling all of those trucks, either.
Stock Value
With the growth in volumes, interest expenses slashed, expenses flat, likely margin increases, and fleets converting, with little imagination I can foresee the company making 25 cents per share in 2020.
And as they convert more and more of their gallons to Redeem rather than ordinary natural gas, I can foresee a high multiple. "Renewable" and "green" are about the sexiest words in the stock market. See Tesla. With a P/E of 20 to 40, and 25 cents in earnings, the stock price would be 5 to 10 dollars.
I remind the reader that not that less than six years ago, during the year 2013, when diesel was higher in price but volume was less than 60% of 2018's total, CLNE's stock price was over ten dollars and spiked over twenty dollars.
The green wave is coming. Take the meaning of "green" however you like.
LOL ALL-IN888..Told you yesterday MMs will going to fill the gap at $4.30ish..If not this week maybe next week
Hope you made bank on this..
Any projection on how high the call option going to be by Sept 20? I am already in the money on my Sept 20 $3 option call.. Thanks Jack and do you have position for Sept 20?
Except today but can not complain tho..
No problem hope you make a lot dough..
I meant there's gap around $4.30ish not $4.25 sorry I didn't zoom it...it will be filled tho.. Keep pumping it tho
Beware the gap in the $4.25ish as we all know this will bound to be filled..
Ditto..
Just want to see $3 this week..
SOB! I sold too soon..
Added 3605 shares @ 0.1940..I can't believe I just average up :) and will probably continue to do so as funds become available..
I truly believe this project will become success like what Brendan Eich did to Java Script and Mozilla..
California Refuse Vehicles Go Full Circle with Redeem RNG
Clean Energy Fuels has seen an uptick in demand for renewable natural gas from the refuse sector, particularly in California.
Waste360 Staff | Mar 14, 2019
Clean Energy Fuels Corp. announced an increased demand for renewable natural gas (RNG) from the refuse sector, particularly in California, where refuse trucks are fueled by the very solid waste they haul.
The city of Fresno signed a two-year agreement with Clean Energy for renewable liquified natural gas (RLNG) to power approximately 140 refuse trucks with its Redeem brand RNG for an anticipated annual total of 1.6 million LNG gallons, the equivalent of just more than 1 million gasoline gallon equivalents (GGEs).
Redeem is the first commercially available RNG vehicle fuel. It is derived from capturing biogenic methane that is naturally sourced by the decomposition of dairy and landfill waste. Redeem enables at least 70 percent reduction in carbon emissions when displacing diesel or gasoline, according to California Air Resources Board (CARB) estimates.
The city of Long Beach has entered into a new two-year contract to fuel 77 vehicles with an expected 225,000 GGEs of Redeem, including its 35 LNG refuse trucks.
NASA Services in Montebello has opted to power its growing CNG refuse fleet of 50 vehicles with an approximate 400,000 GGEs of Redeem, while neighboring Arrow Services in La Puente will fuel 30 trucks with an anticipated 250,000 GGEs.
Burrtec in Riverside County has inked a deal to fuel its transfer truck fleet with an anticipated 350,000 GGEs of Redeem from a public access station that Clean Energy operates in Riverside.
Outside of California, the city of Spokane, Wash., has renewed a second option for operations and maintenance, along with an expected 250,000 GGEs of Redeem annually to power 40 waste trucks.
Groot Recycling and Waste, a Waste Connections company in the greater Chicago area, has signed an agreement for approximately 890,000 GGEs of CNG to power 86 trucks.
Waste Pro Leads in Sustainability
Clean Energy stated that it continues to support Waste Pro USA’s $100 million commitment to transition its refuse fleet from diesel fuel to clean-burning CNG with the growth of its Pompano Beach, Fla., fueling station. The station expansion will allow Waste Pro to increase its natural gas usage by an anticipated 220,000 GGEs of CNG to accommodate an additional 22 waste vehicles. Clean Energy operates and maintains several of Waste Pro’s CNG stations throughout Florida and the Southeast.
“We’re excited to once again expand our CNG footprint throughout South Florida and continue to be a leader in sustainability,” said Russell Mackie, regional vice president of Waste Pro USA, in a statement. “We’re invested in the communities we serve, and this will help to substantially reduce emissions.”
In Fort Pierce, Fla., Waste Pro has extended its repair and maintenance contract for two years, renewing its fuel commitment for an estimated 575,000 GGEs of CNG.
Fleet Expansion
Long-time Clean Energy partner DeKalb County in Stone Mountain, Ga., has expanded its CNG consumption by an expected 350,000 GGE increase in 2019 to power more than 45 new refuse trucks. With its total number of natural gas vehicles now more than 200, the DeKalb County Fleet Management Department was ranked No. 1 by “The 100 Best Fleets in the Americas” out of 38,000 public fleets in North America.
Clean Energy said it operates and maintains both public access stations for the county and has provided fueling services for more than eight years.
Growth in Transit
Serving urban regions outside of Metro Vancouver with a fleet of more than 1,000 transit vehicles, BC Transit will be introducing 60 CNG buses at its new Abbotsford, BC, transit yard when it is completed in early 2020. This will increase the agency’s annual volume by an anticipated 500,000 GGEs. The municipal fleet operates in 130 communities and serves 51 million riders each year. Clean Energy built and now maintains BC Transit’s three existing CNG stations.
The Port of Seattle has entered into a new contract that includes an estimated 400,000 GGEs of CNG annually to fuel 45 airport shuttle buses, along with repair and maintenance services.
Sun Metro in El Paso, Texas, is expected to add 40 CNG buses in 2019 as it continues to grow its Brio Bus Rapid Transit System. These buses will be launched on the Alameda and Dyer corridors and will enable residents to take advantage of this high-quality transit service that offers similar benefits to light rail transit, such as improved speed and reliability, but at a lower implementation cost.
“From waste to transit, fleets are making significant investments in RNG because it offers price stability, lowers maintenance costs and can reduce carbon emissions 70 percent or more,” said Chad Lindholm, vice president of Clean Energy, in a statement. “With more cities banning diesel and switching to clean alternatives, natural gas is a readily available solution that can be adopted immediately at a considerable savings.”
Bring it on!
Yeah Pack I've read the CC transcript yesterday and there was a lot of positives that we can take from it.. A prelude to come..Although I already have a decent long position I did open a $3 call option that will expire Sept 20 I should have plenty of time to get to $3
Are we officially on a short squeeze guys or has it been going on for a week or two now?
WHOA! look at that up another 6% I love this shiat! lol
If stock is doing good, can I hold an option call even after the exp date?
And the uptrend continues boys and girls.. GO MNKD!
Good stuff Hypi.. If they actually announced this MNKD might hit $3.. Lets do this.. GO MNKD!
Up 29% to close the day.. Not too shabby eh!
Form 4 filed.. Its great to see insider buying.. GO MNKD!
$3.50 sounds good.. We longs waited long enough to start reaping the rewards.. GO CLNE
Inching in on $3 range..
MNKD is on fire! F yeah.. GO MNKD
Thoughts on their ER?
No doubt..
Believers of this company will start to see the pps rise and will be handsomely rewarded..This is just the beginning and I am glad bought my shares dirt cheap
Clean Energy Reports 98.7 Million Gallons Delivered and Revenue of $96.2 Million for Fourth Quarter of 2018
Business Wire Business Wire•March 12, 2019
NEWPORT BEACH, Calif.--(BUSINESS WIRE)--
Clean Energy Fuels Corp. (CLNE) (“Clean Energy” or the “Company”) today announced its operating results for the fourth quarter and year ended December 31, 2018.
Andrew J. Littlefair, Clean Energy’s President and Chief Executive Officer, stated: “We’re exiting 2018 with good volume growth and excellent momentum from a successful year. Our operating results for 2018 were the best in the past five years and we finished 2018 with more cash and investments than debt, this after paying down $185.5 million in convertible debt during the year leaving us with only $50 million of convertible debt due in July 2020. We go into 2019 with two of the largest energy companies in the world, Total and BP, as key partners. Total is our largest shareholder and has been instrumental in supporting our exciting Zero Now truck financing program, while during the fourth quarter we expanded our relationship with BP allowing us to accelerate and expand the distribution of our Redeem renewable fuel. These are strong relationships and we’re excited for what the future holds.”
The Zero Now truck financing program offers exclusive pricing that allows fleets to acquire new natural gas trucks for the price of a diesel truck, a five year engine warranty and a fuel price that is guaranteed to be less than diesel for at least five years.
The Company delivered 98.7 million gallons in the fourth quarter of 2018, a 14.2% increase from 86.4 million gallons delivered in the fourth quarter of 2017. This increase was due to growth in CNG and LNG volumes principally from increased Redeem sales. For the year ended December 31, 2018, the Company delivered 365.5 million gallons, a 4.0% increase from 351.4 million gallons delivered for the year ended December 31, 2017. This increase was due to growth in CNG volumes partially offset by a reduction in LNG volumes resulting from the non-renewal of two contracts and a decrease in RNG volumes for non-vehicle fuel that were included in contracts sold to BP Products North America, Inc. (“BP”) in the Company’s sale of its upstream RNG production business to BP in March 2017 (the “BP Transaction”).
The Company’s revenue for the fourth quarter of 2018 was $96.2 million, driven by an increase in volume-related revenue, reflecting higher volumes delivered and a continued strong demand for renewable natural gas. Also included in the volume- related revenue for the fourth quarter of 2018 was $10.3 million of unrealized gains on commodity swap contracts the Company entered into in connection with the Company’s Zero Now truck financing program. Station construction revenue was $4.6 million for the fourth quarter of 2018, compared to $17.8 million for the fourth quarter of 2017, which included a higher number of full station builds. Revenue for the fourth quarter of 2017 included $5.9 million in compressor sales, whereas in 2018 the Company did not record any such sales, due to the Company combining its compressor manufacturing business (“CEC”) with Landi Renzo S.p.A’s compressor manufacturing business in December 2017 (the “CEC Combination”).
On a GAAP basis, net income for the fourth quarter of 2018 was $6.9 million, or $0.03 per share, compared to a net loss of $(28.3) million, or $(0.19) per share, for the fourth quarter of 2017. The fourth quarter of 2018 was positively impacted by the $10.3 million in unrealized gains on commodity swap contracts. The fourth quarter of 2017 was negatively impacted by a $6.5 million loss from the CEC Combination and a $7.0 million charge related to the invalidation of tradable credits the Company generates by selling natural gas as a vehicle fuel in connection with temporary restrictions imposed on the Company’s account for these credits pending completion of an administrative review (the “LCFS charge”).
Revenue for 2018 was $346.4 million, a 1.4% increase from $341.6 million for 2017. Revenue for 2017 included $23.5 million of compressor sales related to CEC, whereas no such sales were reported in 2018 as discussed above. The Company recognized $26.7 million in revenue from the U.S. federal tax credits for alternative fuels (“AFTC”) in 2018. The AFTC, which had expired on December 31, 2016, was reinstated on February 9, 2018 to apply to vehicle fuel sales made from January 1, 2017 through December 31, 2017, but is not presently available for fuel sales made after 2017. Volume-related revenue increased year-over-year due to higher revenue on incremental volumes delivered as well as the $10.3 million in unrealized gains on commodity swap contracts in 2018 and an $8.5 million increase in revenue from sales of certain tradable credits in 2018 due to the temporary restrictions imposed on the Company’s account for these credits in certain 2017 periods that resulted in the LCFS charge. Station construction revenue declined by $26.4 million year-over-year due to fewer full station and station upgrade projects in process in 2018.
On a GAAP basis, net loss for 2018 was $(3.8) million, or $(0.02) per share, compared to a net loss for 2017 of $(79.2) million, or $(0.53) per share. The net loss in 2018 was partially offset by the AFTC revenue and the unrealized gains on commodity swap contracts. The net loss in 2017 included a $70.7 million gain from the BP Transaction which was offset by the loss from the CEC Combination and $81.1 million in asset impairments and other cash and non-cash charges resulting from the LCFS charge and steps taken in the third quarter of 2017 to minimize and eliminate underperforming assets and lower operating expenses going forward (collectively, “Asset Impairments and Other Charges”).
Non-GAAP loss per share and Adjusted EBITDA for the fourth quarter of 2018 was $(0.01) and $12.7 million, respectively. Non-GAAP loss per share and Adjusted EBITDA for the fourth quarter of 2017 was $(0.18) and $(9.7) million, respectively, which included the loss from the CEC Combination and the LCFS charge.
Non-GAAP loss per share and Adjusted EBITDA for 2018 was $(0.03) and $59.7 million, respectively, which included the AFTC revenue recognized in the period. Non-GAAP loss per share and Adjusted EBITDA for 2017 was $(0.47) and $0.2 million, respectively, which included the gain from the BP Transaction, the Asset Impairments and Other Charges, and the loss from the CEC Combination.
Non-GAAP loss per share and Adjusted EBITDA are described below and reconciled to GAAP net income (loss) and GAAP income (loss) per share attributable to Clean Energy Fuels Corp.
Non-GAAP Financial Measures
To supplement the Company’s unaudited condensed consolidated financial statements presented in accordance with accounting principles generally accepted in the United States of America (“GAAP”), the Company uses non-GAAP financial measures that it calls non-GAAP loss per share (“non-GAAP EPS” or “non-GAAP loss per share”) and adjusted EBITDA (“Adjusted EBITDA”). Management presents non-GAAP EPS and Adjusted EBITDA because it believes these measures provide meaningful supplemental information regarding the Company’s performance, for the following reasons: (1) these measures allow for greater transparency with respect to key metrics used by management, as management uses these measures to assess the Company’s operating performance and for financial and operational decision-making; (2) these measures exclude the impact of items that management believes are not directly attributable to the Company’s core operating performance and may obscure trends in the business; and (3) these measures are used by institutional investors and the analyst community to help analyze the Company’s business. In future quarters, the Company may make adjustments for other expenditures, charges or gains in order to present non-GAAP financial measures that the Company’s management believes are indicative of the Company’s core operating performance.
Non-GAAP financial measures have limitations as an analytical tool and should not be considered in isolation from, or as a substitute for, the Company’s GAAP results. The Company expects to continue reporting non-GAAP financial measures, adjusting for the items described below (and/or other items that may arise in the future as the Company’s management deems appropriate), and the Company expects to continue to incur expenses, charges or gains similar to the non-GAAP adjustments described below. Accordingly, unless expressly stated otherwise, the exclusion of these and other similar items in the presentation of non-GAAP financial measures should not be construed as an inference that these costs are unusual, infrequent or non-recurring. Non-GAAP EPS and Adjusted EBITDA are not recognized terms under GAAP and do not purport to be an alternative to GAAP income (loss), GAAP income (loss) per share or any other GAAP measure as an indicator of operating performance. Moreover, because not all companies use identical measures and calculations, the Company’s presentation of non-GAAP EPS and Adjusted EBITDA may not be comparable to other similarly titled measures used by other companies.
Non-GAAP EPS
Non-GAAP EPS, which the Company presents as a non-GAAP measure of its performance, is defined as net income (loss) attributable to Clean Energy Fuels Corp., plus stock-based compensation expense, plus (minus) loss (income) from equity method investments, and plus (minus) any loss (gain) from changes in the fair value of derivative instruments, the total of which is divided by the Company’s weighted-average shares outstanding on a diluted basis. The Company’s management believes excluding non-cash expenses related to stock-based compensation provides useful information to investors regarding the Company’s performance because of the varying available valuation methodologies, the volatility of the expense (which depends on market forces outside of management’s control), the subjectivity of the assumptions and the variety of award types that a company can use, which may obscure trends in a company’s core operating performance. Similarly, as a result of the CEC Combination in the fourth quarter of 2017, the Company’s management believes excluding the non-cash results from equity method investments is useful to investors because these charges are not part of or representative of the core operations of the Company. In addition, the Company’s management believes excluding the non-cash loss (gain) from changes in the fair value of derivative instruments is useful to investors because the valuation of the derivative instruments is based on a number of subjective assumptions, the amount of the loss or gain is derived from market forces outside of management’s control, and the exclusion of these amounts enables investors to compare the Company’s performance with other companies that do not use, or use different forms of, derivative instruments.
The table below shows GAAP and non-GAAP EPS and also reconciles GAAP net income (loss) attributable to Clean Energy Fuels Corp. to an adjusted net income (loss) figure used in the calculation of non-GAAP EPS:
Three Months Ended December 31, Year Ended December 31,
(in thousands, except share and per-share amounts) 2017 2018 2017 2018
GAAP Net Income (Loss) Attributable to Clean Energy Fuels Corp. $ (28,347 ) $ 6,862 $ (79,237 ) $ (3,790 )
Stock -Based Compensation 1,519 995 8,423 5,307
Loss (Income) from Equity Method Investments
31 (16 ) 131 2,723
Loss (Gain) from Change in Fair Value of Derivative Instruments (7 ) (9,687 ) (46 ) (9,788 )
Adjusted (Non-GAAP) Net Loss $ (26,804 ) $ (1,846 ) $ (70,729 ) $ (5,548 )
Weighted -Average Common Shares Outstanding Diluted 151,326,494 207,579,171 150,430,239 180,655,435
GAAP Income (Loss) Per Share Attributable to Clean Energy Fuels Corp. $ (0.19 ) 0.03 $ (0.53 ) $ (0.02 )
Non-GAAP Loss Per Share $ (0.18 ) $ (0.01 ) $ (0.47 ) $ (0.03 )
Adjusted EBITDA
Adjusted EBITDA, which the Company presents as a non-GAAP measure of its performance, is defined as net income (loss) attributable to Clean Energy Fuels Corp., plus (minus) income tax expense (benefit), plus interest expense, minus interest income, plus depreciation and amortization expense, plus stock-based compensation expense, plus (minus) loss (income) from equity method investments, and plus (minus) any loss (gain) from changes in the fair value of derivative instruments. The Company’s management believes Adjusted EBITDA provides useful information to investors regarding the Company’s performance for the same reasons discussed above with respect to non-GAAP EPS. In addition, management internally uses Adjusted EBITDA to determine elements of executive and employee compensation.
The table below shows Adjusted EBITDA and also reconciles this figure to GAAP net income (loss) attributable to Clean Energy Fuels Corp.:
Three Months Ended December 31, Year Ended December 31,
(in thousands) 2017 2018 2017 2018
GAAP Net Income (Loss) Attributable to Clean Energy Fuels Corp. $ (28,347 ) $ 6,862 $ (79,237 ) $ (3,790 )
Income Tax Expense (Benefit) 269 75 (1,914 ) 341
Interest Expense 4,285 2,798 17,751 15,924
Interest Income (341 ) (664 ) (1,497 ) (2,857 )
Depreciation and Amortization 12,857 12,354 56,614 51,850
Stock -Based Compensation 1,519 995 8,423 5,307
Loss (Income) from Equity Method Investments
31 (16 ) 131 2,723
Loss (Gain) from Change in Fair Value of Derivative Instruments (7 ) (9,687 ) (46 ) (9,788 )
Adjusted EBITDA $ (9,734 ) $ 12,717 $ 225 $ 59,710
Definition of “Gallons Delivered”
The Company defines “gallons delivered” as its gallons of renewable natural gas (“RNG”), compressed natural gas (“CNG”) and liquefied natural gas (“LNG”), along with its gallons associated with providing operations and maintenance services, in each case delivered to its customers in the applicable period, plus the Company’s proportionate share of gallons delivered by joint ventures in the applicable period.
The table below shows gallons delivered for the three months and years ended December 31, 2017 and 2018:
Three Months Ended December 31, Year Ended December 31,
Gallons Delivered (in millions) 2017 2018 2017 2018
CNG 70.3
79.5
283.4
299.5
LNG 16.1
19.2
66.1
66.0
RNG(1) — — 1.9 —
Total 86.4 98.7 351.4 365.5
(1) Represents RNG sold as non-vehicle fuel. RNG sold as vehicle fuel, is sold under the brand named as Redeem™, and is included in this table in the CNG or LNG amounts as applicable based on the form in which it was sold.
Sources of Revenue
The following table represents the Company’s sources of revenue for the three months and years ended December 31, 2017 and 2018:
Three Months Ended Year Ended
December 31, December 31,
Revenue (in millions) 2017 2018 2017 2018
Volume -Related(1)
$ 64.9 $ 88.9 $ 264.9 $ 286.7
Station Construction Sales 17.8 4.6 51.9 25.5
AFTC — — — 26.7
Compressor Sales 5.9 — 23.5 —
Other 0.7 2.7 1.3 7.5
Total $ 89.3 $ 96.2 $ 341.6 $ 346.4
(1) For the three months and year ended December 31, 2018, volume -related revenue includes an unrealized gain from the change in fair value of commodity swap contracts of $10.3 million.
2019 Outlook
GAAP net loss for 2019 is expected to range from $12.0 million to $18.0 million, assuming no AFTC, which is not presently available, and no unrealized gains or losses on commodity swap contracts. Legislative circumstances impacting the AFTC and changes in diesel and natural gas market conditions resulting in unrealized gains or losses on the Company’s commodity swap contracts could significantly impact the Company’s estimated GAAP net loss for 2019. Adjusted EBITDA for 2019 is expected to range from $50.0 million to $55.0 million, assuming no AFTC. These expectations also exclude the impact of any acquisitions, divestitures or other extraordinary transactions that may occur in 2019. Additionally, the expectations regarding 2019 Adjusted EBITDA assume the calculation of this non-GAAP financial measure in the same manner as described below and without adjustments for any other items that may arise during 2019 and that management deems appropriate to exclude. These expectations are forward-looking statements and are qualified by the statement under “Safe Harbor Statement” below.
(in thousands) 2019 Outlook
GAAP Net Loss Attributable to Clean Energy Fuels Corp. $ (12,000) - $ (18,000)
Income Tax Expense (Benefit) —
Interest Expense 6,000 - 8,000
Interest Income (900) - (1,300)
Depreciation and Amortization 53,000 - 55,000
Stock -Based Compensation 6,000 - 7,000
Loss (Income) from Equity Method Investments
—
Loss (Gain) from Change in Fair Value of Derivative Instruments —
Adjusted EBITDA $ 50,000 - $ 55,000
Today’s Conference Call
The Company will host an investor conference call today at 4:30 p.m. Eastern time (1:30 p.m. Pacific). Investors interested in participating in the live call can dial 1.877.407.4018 from the U.S. and international callers can dial 1.201.689.8471. A telephone replay will be available approximately two hours after the call concludes through Friday, April 12, 2019, by dialing 1.844.512.2921 from the U.S., or 1.412.317.6671 from international locations, and entering Replay Pin Number 13687760. There also will be a simultaneous live webcast available on the Investor Relations section of the Company’s web site at www.cleanenergyfuels.com, which will be available for replay for 30 days.
About Clean Energy Fuels
Clean Energy Fuels Corp. is the leading provider of natural gas fuel for transportation in North America. We build and operate CNG and LNG vehicle fueling stations; manufacture CNG and LNG equipment and technologies; and deliver more CNG and LNG vehicle fuel than any other company in the United States. Clean Energy also sells Redeem™ RNG fuel and believes it is the cleanest transportation fuel commercially available, reducing greenhouse gas emissions by up to 70%. For more information, visit www.cleanenergyfuels.com.
Safe Harbor Statement
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including statements about, among other things, the Company’s expectations regarding its 2019 results; the Company’s ability to convert heavy-duty truck fleets with whom it is in discussions into participants in the Company’s Zero Now truck financing program; the success of the Zero Now program generally and its impact, if any, on the U.S. natural gas trucking market and the Company’s performance, financial condition and ability to execute its strategic initiatives; the state of the natural gas vehicle fuels market, including the level of adoption of natural gas vehicle fuels generally, and specifically in the trucking sector, and with respect to renewable natural gas; and the Company’s supply agreement with BP and its effect, if any, on the Company’s Redeem renewable natural gas business.
Forward-looking statements are statements other than historical facts and relate to future events or circumstances or the Company’s future performance, and they are based on the Company’s current assumptions, expectations and beliefs concerning future developments and their potential effect on the Company and its business. As a result, actual results, performance or achievements and the timing of events could differ materially from those anticipated in or implied by these forward-looking statements as a result of many factors including, among others: the willingness of fleets and other consumers to adopt natural gas as a vehicle fuel, and the rate and level of any such adoption; future supply, demand, use and prices of crude oil, gasoline, diesel, natural gas, and other vehicle fuels, including overall levels of and volatility in these factors; natural gas vehicle and engine cost, fuel usage, availability, quality, safety, convenience, design and performance, as well as operator perception with respect to these factors, in general and in the Company’s key customer markets, including heavy-duty trucking; the Company’s ability to execute its Zero Now truck financing program, a key strategic initiatives related to the market for natural gas heavy-duty trucks and the impact of this initiative on the Company’s business, prospects, performance and liquidity; the Company’s ability to capture a substantial share of the market for alternative vehicle fuels and vehicle fuels generally and otherwise compete successfully in these markets, including in the event of improvements in or perceived advantages of non-natural gas vehicle fuels or engines powered by these fuels or other competitive developments; the availability of environmental, tax and other government regulations, programs and incentives that promote natural gas, such as AFTC, or other alternatives as a vehicle fuel, including long-standing support for gasoline- and diesel-powered vehicles and growing support for electric and hydrogen-powered vehicles that could result in programs or incentives that favor these or other vehicles or vehicle fuels over natural gas; future availability of capital, which may include equity or debt financing, in the amounts and at the times needed to fund the growth of the Company’s business, repayment of its debt obligations (whether at or before their due dates) or other expenditures, as well as the terms and other effects of any such capital-raising transaction; the effect of, or potential for changes to federal, state or local greenhouse gas emissions regulations or other environmental regulations applicable to natural gas production, transportation or use; the Company’s ability to manage and grow its RNG business, in particular after the BP Transaction, including its ability to continue to receive revenue from sales of tradable credits the Company generates by selling conventional and renewable natural gas as vehicle fuel and the effect of any increase in competition for RNG supply; the Company’s ability to accurately predict natural gas vehicle fuel demand in the geographic and customer markets in which it operates and effectively calibrate its strategies, timing and levels of investments to be consistent with this demand; the Company’s ability to recognize the anticipated benefits of its CNG and LNG station network; construction, permitting and other factors that could cause delays or other problems at station construction projects; the Company’s compliance with all applicable government regulations; the Company’s ability to execute and realize the intended benefits of any mergers, acquisitions, divestitures, investments or other strategic measures, transactions or relationships; and general political, regulatory, economic and market conditions.
The forward-looking statements made in this press release speak only as of the date of this press release and the Company undertakes no obligation to update publicly such forward-looking statements to reflect subsequent events or circumstances, except as otherwise required by law. The Company’s periodic reports filed with the Securities and Exchange Commission (www.sec.gov), including its Annual Report on Form 10-K, filed on March 12, 2019, contain additional information about these and other risk factors that may cause actual results to differ materially from the forward-looking statements contained in this press release.
Clean Energy Fuels Corp. and Subsidiaries
Consolidated Balance Sheets
(In thousands, except share and per share data)
December 31, December 31,
2017 2018
Assets
Current assets:
Cash, cash equivalents and current portion of restricted cash $ 37,208 $ 30,624
Short-term investments 141,462 65,646
Accounts receivable, net of allowance for doubtful accounts of $1,276 and $1,919 as of December 31, 2017 and 2018, respectively 63,961 68,865
Other receivables 19,235 15,544
Inventory 35,238 34,975
Prepaid expenses and other current assets 7,793 8,444
Derivative assets, related party — 1,508
Total current assets 304,897 225,606
Land, property and equipment, net 367,305 350,568
Long-term portion of restricted cash — 4,000
Notes receivable and other long-term assets, net 21,397 17,470
Long-term portion of derivative assets, related party — 8,824
Investments in other entities 30,395 26,079
Goodwill 64,328 64,328
Intangible assets, net 3,590 2,207
Total assets $ 791,912 $ 699,082
Liabilities and Stockholders’ Equity
Current liabilities:
Current portion of debt and capital lease obligations $ 139,699 $ 5,405
Accounts payable 17,901 19,024
Accrued liabilities 42,268 48,469
Deferred revenue 3,432 7,361
Total current liabilities 203,300 80,259
Long-term portion of debt, capital lease and financing lease obligations 120,388 78,779
Other long-term liabilities 18,566 15,035
Total liabilities 342,254 174,073
Commitments and contingencies
Stockholders’ equity:
Preferred stock, $0.0001 par value. Authorized 1,000,000 shares; issued and outstanding no shares — —
Common stock, $0.0001 par value. Authorized 224,000,000 shares and 304,000,000 shares as of December 31, 2017 and 2018, respectively; issued and outstanding 151,650,969 shares and 203,599,892 shares as of December 31, 2017 and 2018, respectively 15 20
Additional paid-in capital 1,111,432 1,198,769
Accumulated deficit (683,570 ) (688,653 )
Accumulated other comprehensive loss (887 ) (2,138 )
Total Clean Energy Fuels Corp. stockholders’ equity 426,990 507,998
Noncontrolling interest in subsidiary 22,668 17,011
Total stockholders’ equity 449,658 525,009
Total liabilities and stockholders’ equity $ 791,912 $ 699,082
Clean Energy Fuels Corp. and Subsidiaries
Consolidated Statements of Operations
(In thousands, except share and per share data)
Three Months Ended Year Ended
December 31, December 31,
2017 2018 2017 2018
Revenue:
Product revenue $ 75,545 $ 87,027 $ 287,292 $ 307,839
Service revenue 13,755 9,202 54,307 38,580
Total revenue 89,300 96,229 341,599 346,419
Operating expenses:
Cost of sales (exclusive of depreciation and amortization shown separately below):
Product cost of sales 58,107 54,851 216,413 194,509
Service cost of sales 6,192 4,820 26,258 18,415
Inventory valuation provision — — 13,158 —
Change in fair value of derivative warrants (7 ) 644 (46 ) 543
Selling, general and administrative 23,801 20,005 95,715 77,207
Depreciation and amortization 12,857 12,354 56,614 51,850
Asset impairments and other charges 7,268 — 67,934 —
Total operating expenses 108,218 92,674 476,046 342,524
Operating income (loss) (18,918 ) 3,555 (134,447 ) 3,895
Interest expense (4,285 ) (2,798 ) (17,751 ) (15,924 )
Interest income 341 664 1,497 2,857
Other income (expense), net 167 (440 ) 139 (566 )
Income (loss) from equity method investments (31 ) 16 (131 ) (2,723 )
Gain from extinguishment of debt, net — — 3,195 —
Gain from sale of subsidiary 772 4,782 70,658 4,782
Loss from formation of equity method investment (6,465 ) — (6,465 ) (1,163 )
Income (loss) before income taxes (28,419 ) 5,779 (83,305 ) (8,842 )
Income tax benefit (expense) (269 ) (75 ) 1,914 (341 )
Net income (loss) (28,688 ) 5,704 (81,391 ) (9,183 )
Loss attributable to noncontrolling interest 341 1,158 2,154 5,393
Net income (loss) attributable to Clean Energy Fuels Corp. $ (28,347 ) $ 6,862 $ (79,237 ) $ (3,790 )
Income (loss) per share:
Basic $ (0.19 ) $ 0.03 $ (0.53 ) $ (0.02 )
Diluted $ (0.19 ) $ 0.03 $ (0.53 ) $ (0.02 )
Weighted-average common shares outstanding:
Basic 151,326,494 203,529,685 150,430,239 180,655,435
Diluted 151,326,494 207,579,171 150,430,239 180,655,435
View source version on businesswire.com: https://www.businesswire.com/news/home/20190312005854/en/
Contact:
Investor Contact:
investors@cleanenergyfuels.com
News Media Contact:
Raleigh Gerber
Manager of Corporate Communications
949.437.1397
Didn't know they did their ER today thought its tomorrow.. Good ER its going to kick ass tomorrow..
Any reasons why CLNE went up 0.42?
Diesel trucks would be nearly eliminated in California under proposed law
Peter Fimrite March 8, 2019 Updated: March 8, 2019 7:48 p.m.
A proposed law that would phase out diesel trucks in California was introduced Friday in an ongoing effort by state legislators to control pollution and greenhouse gas emissions, but it will likely face major opposition from trucking companies and other businesses that transport products in big rigs.
The bill, by state Sen. Nancy Skinner, D-Berkeley, would direct the California Air Resources Board to require a 40 percent reduction in diesel emissions by 2030 and an 80 percent reduction by 2050, cuts that experts say would not be possible without a major overhaul of the trucking industry.
Heavy- and medium-duty buses and trucks make up 7 percent of the vehicles on California’s roads but contribute 20 percent of the heat-trapping carbon emissions spewed into the atmosphere, according to the Union of Concerned Scientists, a nonprofit science advocacy organization. They also produce 33 percent of the state’s nitrogen oxides, a major ingredient in particulate matter, or smog, Skinner said.
“While California is a leader in climate protection, we still have very dirty air,” said Skinner, pointing out high rates of asthma, lung and heart disease and other respiratory problems in low-income communities like Oakland and Richmond, which are near freeways and the Port of Oakland. “We’ve got rising rates of asthma, which is caused by smog and particulate matter, which primarily comes from diesel.”
Good close today keep 'er going.. GO MNKD!
Waiting for my funds that I sent yesterday to get cleared and add a few more..Hopefully by friday its good to go
What a day MNKD is having! I never thought my $1.37 buys would gained this much in such a short period of time.. GO MNKD!
Oh! hello there $2... GO MNKD!
That's good.. This explain why MNKD is up today.. Over $2 this week?
I am comfortable the amount of shares I am holding compare to what I have before and not only that I bought dirt cheap..
I'd say let her rip..
When did they published this report? I really hope its recent..