Clean Energy(US:CLNE)2020-05-07 20:35Revenue Performance - The company reported total revenue of $86.0 million for the three months ended March 31, 2020, compared to $77.7 million for the same period in 2019, representing an increase of 10.6%[98] - Revenue increased by $8.3 million to $86.0 million in Q1 2020, compared to $77.7 million in Q1 2019, primarily due to favorable changes in fair value of commodity swaps and customer contracts[112] - Volume-related revenue from fuel sales and performance of O&M services decreased to $63.6 million in Q1 2020 from $69.5 million in Q1 2019, a decline of 8.5%[98] - Volume-related revenue decreased by $10.1 million, attributed to a lower effective price per gallon delivered and decreased revenue from RINs and LCFS Credits, despite an increase in gallons delivered[115] Financial Position - The company maintained cash and cash equivalents of $99.3 million as of March 31, 2020, ensuring sufficient liquidity during the COVID-19 pandemic[96] - As of March 31, 2020, the company had total cash and cash equivalents of $99.3 million, down from $106.1 million as of December 31, 2019[123] - Total indebtedness was approximately $91.4 million as of March 31, 2020, with expected interest payment obligations of approximately $4.8 million in 2020[121] - The company may need to raise additional capital to fund planned or unanticipated expenditures, which could include selling assets or restructuring existing debt[123] Impact of COVID-19 - The estimated negative volume effect of COVID-19 from mid-March to the end of March 2020 was approximately 3.0 million gallons compared to January 2020 volumes[94] - The company expects a possible negative effect of approximately $11 million on net operating results if volume declines continue through June 2020[96] - The anticipated capital expenditures for 2020 have been reduced to $14 million for core business and $2 million for NG Advantage due to COVID-19[96] - Capital expenditures for 2020 were reduced to $14.0 million from an original estimate of $18.0 million due to COVID-19 impacts[121] Operational Highlights - The company served over 1,000 fleet customers operating more than 48,000 natural gas vehicles as of March 31, 2020[93] - The company operates approximately 550 natural gas fueling stations across 41 states in the U.S. and four provinces in Canada[93] - The company has implemented enhanced cleaning protocols and health screenings for employees to ensure safety during the pandemic[94] Profitability Metrics - The net loss attributable to Clean Energy Fuels Corp. was $(10.9) million for the three months ended March 31, 2020, compared to a net income of $20.4 million for the year ended December 31, 2018[100] - The company recorded a net income of $0.9 million in Q1 2020, compared to a net loss of $14.3 million in Q1 2019[112] - Selling, general and administrative expenses decreased by $0.2 million to $18.3 million in Q1 2020, reflecting ongoing cost reduction efforts[115] Cost and Pricing - Effective price per gallon charged decreased by $0.14 to $0.70 in Q1 2020 from $0.84 in Q1 2019[115] - Cost of sales decreased by $5.9 million to $52.9 million in Q1 2020, primarily due to lower natural gas commodity costs[115] - Natural gas costs represented $94.0 million of the company's cost of sales in 2019 and $22.0 million for the three months ended March 31, 2020[129] Investments and Capital Management - The company utilized $7.5 million of its $30.0 million share repurchase program by April 30, 2020, purchasing 4,668,231 shares[105] - The controlling interest in NG Advantage increased to 93.3% following the conversion of a convertible note into common units[105] - The company has outstanding surety bonds totaling $30.0 million for construction contracts and general corporate purposes as of March 31, 2020[124] Market Risks - The company is exposed to market risks related to commodity prices and foreign currency exchange rates, with a potential fluctuation of approximately $0.2 million if exchange rates change by 10%[131] - If the diesel-to-natural gas price spread fluctuates by 10%, the fair value of the company's commodity swap contracts would change by approximately $5.1 million[129] - The company has entered into commodity swap contracts to manage risks related to the diesel-to-natural gas price spread, effective from April 1, 2019 to June 30, 2024[129] Revenue from Environmental Credits - Revenue from Renewable Identification Numbers (RINs) and Low Carbon Fuel Standard (LCFS) credits was estimated to be lower by approximately $3.6 million and $0.5 million, respectively, for the three months ended March 31, 2020, due to declining market prices[105]