Clean Energy(US:CLNE)2026-02-24 22:15RNG Production and Market - The company sources RNG from over 150 supply sources, with 40% from ADG and 60% from LFG as of 2025[27]. - The TotalEnergies joint venture aims to invest up to $400 million in ADG RNG production facilities, with one project currently producing up to 0.8 million GGEs of RNG annually[48]. - The bp joint venture has collectively contributed approximately $455.5 million to develop ADG RNG projects, estimated to produce up to 8.2 million GGEs of RNG annually[49]. - As of December 31, 2025, the Company had one consolidated ADG RNG project, "South Fork," expected to produce 2.6 million GGEs of RNG annually for the vehicle fuels market[52]. - The total number of RNG projects in operation and under construction is 11, with a combined estimated production capacity of 14.5 million GGEs[53]. - The South Fork Dairy RNG facility, operational in Q4 2025, is expected to produce approximately 2.6 million gallons of low-carbon RNG annually[217]. - The company is pursuing the development of livestock waste ADG projects to support long-term RNG supply availability[241]. Financial Performance - Total revenue for the year ended December 31, 2023, was $425.2 million, with a slight decrease to $415.9 million in 2024, and a recovery to $424.8 million in 2025[205]. - Fuel sales revenue was $287.0 million in 2023, projected to decrease to $258.9 million in 2024, and then increase to $287.7 million in 2025[205]. - Product revenue for 2025 increased by $8.8 million to $365.5 million, representing 86.0% of total revenue, compared to $356.7 million in 2024[278]. - Service revenue for 2025 increased by $0.2 million to $59.4 million, representing 14.0% of total revenue, compared to $59.2 million in 2024[280]. - The net loss attributable to Clean Energy Fuels Corp. was $99.5 million in 2023, improving to a loss of $83.1 million in 2024, but worsening to a loss of $222.0 million in 2025[209]. - Net loss attributable to Clean Energy Fuels Corp. was (52.2)% in 2025, compared to (19.9)% in 2024[278]. Regulatory and Market Environment - The transportation sector has become the fastest-growing market for RNG, with 86% of natural gas motor fuel dispensed for transportation in the U.S. being RNG in 2024[39]. - The California Governor's Executive Order N-79-20 aims for 100% zero-emission vehicle sales by 2035, impacting the RNG market and vehicle fueling business[96]. - The demand for RNG is supported by its ability to significantly reduce lifecycle GHG emissions compared to conventional fossil fuels[241]. - The company is subject to various federal, state, and local regulations, which may impose significant compliance costs and affect operations[88]. Safety and Employee Engagement - The company focuses on employee safety and aims to maintain a zero-incident workplace for its service technicians and customers[35]. - The Total Recordable Incident Rate (TRIR) for 2025 was 1.1, significantly lower than the national average of 2.6, reflecting the Company's commitment to safety[72]. - The company employs 503 people as of December 31, 2025, with no work stoppages or collective bargaining agreements reported[97]. - The company has developed competitive salary structures and benefits policies to attract and retain talent in a competitive labor market[98]. Investments and Joint Ventures - The company made a $1.5 million investment in Pioneer Clean Fleet Solutions, acquiring approximately 9% equity to support natural gas-powered vehicle adoption[44]. - The Company entered into a joint development agreement with Maas Energy Works, LLC, planning to invest up to $132.0 million in ADG RNG production projects at dairy farms[50]. - The company has a $20.8 million investment in ProjectCo, which funds the RNG production facility at Ash Grove Dairy[229]. - The company and Tourmaline Oil Corp. have contributed approximately CAD $22.5 million to a joint development agreement for CNG fueling stations, with four stations currently operational and more planned for 2026[56][57]. Operational Metrics - RNG volume accounted for 88% of the Company's vehicle fuel sales in 2025, with a goal of achieving 100% RNG sales[73]. - The company has built over 470 fueling stations since 2008, serving various customer markets including trucking, airports, refuse, and public transit[75]. - In 2025, the company fueled approximately 16,200 refuse vehicles, with 60% of new refuse trucks capable of operating on RNG, up from 3% in 2008[81]. - Public transit agencies in the U.S. consume approximately 1 billion gallons of fuel per year, with over 30% of existing transit buses capable of operating on RNG[82]. Cost and Expenses - Product cost of sales for 2025 increased by $23.7 million to $273.3 million, representing 64.3% of total revenue, from $249.6 million in 2024[281]. - Service cost of sales for 2025 decreased by $1.3 million to $36.6 million, representing 8.6% of total revenue, from $37.9 million in 2024[282]. - Depreciation and amortization increased by $53.8 million to $98.6 million in 2025, from $44.7 million in 2024[283]. - Interest expense increased by $20.5 million to $52.7 million in 2025 from $32.2 million in 2024[286]. - Total operating expenses increased to 137.5% of total revenue in 2025, compared to 106.8% in 2024[278]. Cash Flow and Financing - Cash provided by operating activities increased to $85.5 million in 2025 from $64.6 million in 2024, primarily due to changes in working capital[293]. - Cash provided by investing activities was $66.6 million in 2025, compared to cash used of $77.7 million in 2024, driven by a $35.4 million increase in maturities of short-term investments[294]. - Cash used in financing activities increased to $82.1 million in 2025 from $1.9 million in 2024, primarily due to a voluntary early prepayment of $65.0 million under the Stonepeak Credit Agreement[295]. - Total indebtedness was approximately $254.0 million as of December 31, 2025, with expected interest payment obligations of approximately $29.2 million for 2026[298]. Market Prices and Economic Factors - In 2025, market prices for RINs fluctuated between $2.05 and $2.50, while LCFS Credits ranged from $40.00 to $75.50[29]. - The company’s revenue is influenced by fluctuations in natural gas commodity prices and the expiration of government credits, such as AFTC, which expired on December 31, 2024[235]. - The company has entered into commodity swap contracts to manage risks related to diesel-to-natural gas price spreads, covering five million diesel gallons annually[249].