This article sums up what is happening at Clean Energy,imo. In case no one has notice the price of diesel is going higher vs NatGas going lower.
Over the past several years, investors in Clean Energy Fuels have taken a beating. But even while that's happened, it's looking like the company is finally primed to start delivering solid returns for investors.
I know what you're thinking: Why natural gas? Isn't the future of cars the EV? It probably is, but to ignore Clean Energy Fuels, for this reason, is a gross misunderstanding of the company's business, as well as its likely future.
To start, Clean Energy Fuels' customers are medium- and heavy-duty vehicle fleet operators, such as solid waste trash truck operators, bus fleets, and heavy-duty tractor trailers among others, and not individual automobiles. And natural gas has proven to be incredibly effective for these applications, many of which are beyond the capabilities of electric powertrains and likely to remain so for years.
Furthermore, Clean Energy's fastest-growing business is biomethane, produced from landfills, dairy farms, and other such facilities, and by capturing and using this methane, the environmental impact of these facilities is significantly reduced, as are the emissions of the vehicles burning them.
Why Clean Energy now? In short, the company's balance sheet is the strongest it's been in years after a major debt reduction, operating and capital spending is also down by double digits, while fuel sales continue to grow. This has the company producing positive cash flows and set to grow those cash flows in coming years even as the market continues to beat the stock down.
