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Monday, December 07, 2015 8:48:33 AM
Jason Hall: It's hard to make the case that a company which is losing money has been "unfairly" beaten down, but I think that's happened with Clean Energy Fuels (NASDAQ:CLNE).
Clean Energy's business is:
Selling natural gas for transportation, and operating/maintaining the stations.
Building stations for its customers.
Manufacturing compression equipment for natural gas.
While the second two parts of its business are important, they are secondary to selling fuel, which is a recurring revenue business (most of the vehicles it services operate for five to 10 years or longer) while the station building and compressor manufacturing business, are cyclical and "lumpy", and exist to facilitate growth in fuel sales.
To the point: Clean Energy Fuels' stock price has done this since oil prices started falling in June 2014:
CLNE Chart
CLNE DATA BY YCHARTS
In a vacuum, this makes sense, since cheap diesel and gasoline reduces the "spread" between natural gas and those fuels, making it less financially compelling for fleet operators to invest in natural gas vehicles. And for a company like Clean Energy, which is burning cash after taking on a lot of debt to fund capital expansion, that's not a good thing to have happen.
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IMAGE SOURCE: CLEAN ENERGY FUELS CORPORATE WEBSITE
But in reality, the business keeps growing. Clean Energy has consistently reported double-digit growth in fuel deliveries as key industries like refuse hauling and transit continue to replace diesel with natural gas. Heavy trucking -- which is a massive 40 billion gallon per-year market -- continues to show life, with sales to this segment up 13% last quarter.
At the same time, the company has cut sales, general, & administrative expense about 15% since the start of 2014, and also maintained its fuel margins. Last quarter, the company reported $0.26 per gallon, versus $0.28 per gallon a year ago. Capital expenditures are also down by half, as the company slows its pace of expansion and simply gets the benefit of increased utilization to drive growth.
Between reduced operating and capital expense, growing fuel volumes, and steady margins, today's Clean Energy is a better business than it was when oil was $100 per barrel. But a market that's fearful of all things oil and gas isn't seeing that.
Recent CLNE News
- Clean Energy Opens Clean-fuel RNG Station in Davenport, Florida • Business Wire • 07/31/2024 10:30:00 AM
- Clean Energy’s RNG Production Facility Breaks Ground at South Fork Dairy • Business Wire • 07/24/2024 10:30:00 AM
- Clean Energy to Report Second Quarter 2024 Financial Results on August 7; Conference Call to Follow at 1:30 p.m. Pacific Time • Business Wire • 07/16/2024 12:00:00 PM
- Clean Energy Opens Renewable Natural Gas Station in Philadelphia - South Jersey Area to Serve Fleets • Business Wire • 06/25/2024 10:30:00 AM
- Municipalities Adopt Cleaner Solutions Inking Agreements with Clean Energy • Business Wire • 06/20/2024 10:30:00 AM
- Clean Energy Expands Boron LNG Plant Capacity to Accommodate Increased Demand for Cleaner Fuel Driven by Pasha Hawaii Container Ships • Business Wire • 06/11/2024 10:30:00 AM
- Clean Energy Expands Fueling Footprint in So. California • Business Wire • 06/04/2024 10:30:00 AM
- Cemex US Signs Renewable Natural Gas Fuel Agreement with Clean Energy to Power Fleet in Southern California • Business Wire • 05/30/2024 10:30:00 AM
- Bi-Partisan Bill Introduced in U.S. Senate to Encourage the Use of Ultra-Low Carbon RNG in Transportation • Business Wire • 05/23/2024 10:30:00 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 05/20/2024 08:46:22 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 05/20/2024 08:42:00 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 05/20/2024 08:37:33 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 05/20/2024 08:08:50 PM
- Form S-8 - Securities to be offered to employees in employee benefit plans • Edgar (US Regulatory) • 05/16/2024 09:30:14 PM
- Clean Energy and Maas Energy Works Join Forces to Build Nine Renewable Natural Gas Dairy Production Facilities Across Seven States • Business Wire • 05/14/2024 10:30:00 AM
- Form 10-Q - Quarterly report [Sections 13 or 15(d)] • Edgar (US Regulatory) • 05/09/2024 08:16:18 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 05/09/2024 08:10:54 PM
- Clean Energy Reports Revenue of $103.7 Million and 58.0 Million RNG Gallons Sold for the First Quarter of 2024 • Business Wire • 05/09/2024 08:05:00 PM
- Clean Energy Announces First Injection of Renewable Natural Gas at Victory Farms Dairy • Business Wire • 04/23/2024 10:30:00 AM
- Clean Energy to Report First Quarter 2024 Financial Results on May 9; Conference Call to Follow at 1:30 p.m. Pacific Time • Business Wire • 04/12/2024 12:00:00 PM
- Clean Energy Appoints Patrick J. Ford to Board of Directors • Business Wire • 03/28/2024 10:30:00 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 03/06/2024 11:53:38 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 03/06/2024 11:51:49 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 03/06/2024 11:50:25 PM
- Clean Energy Reports Revenue of $106.9 Million and 57.0 Million RNG Gallons Sold for the Fourth Quarter of 2023 • Business Wire • 02/27/2024 09:05:00 PM
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