Clean Energy(US:CLNE)2022-05-06 02:52Financial Data and Key Metrics Changes - Fuel volumes increased by 3.7% from 92 million gallons to almost 96 million gallons in Q1 2022 [7] - Revenues rose by 8.2% quarter-over-quarter to $83.5 million from $77 million in Q1 2021 [9][21] - Adjusted EBITDA for Q1 2022 was $3.3 million, down from $11.6 million in Q1 2021 [24] - GAAP loss per share was $0.11 compared to a loss of $0.04 in Q1 2021 [23] - The effective price per gallon increased by 13% to $0.88 in Q1 2022 from $0.76 a year ago [21] Business Line Data and Key Metrics Changes - RNG volumes increased by 7.3% to 39.7 million gallons in Q1 2022 compared to the previous year [20] - The margin per gallon decreased slightly to $0.25 in Q1 2022 from $0.26 a year ago [22] - Significant winter-related commodity supply curtailments affected operations, particularly at the NG Advantage subsidiary [7] Market Data and Key Metrics Changes - Demand for RNG continued to increase across all segments, including new customers such as postal delivery services [13][14] - The company signed contracts with refuse companies and transit agencies across various regions, indicating a broadening market presence [15] Company Strategy and Development Direction - The company is focused on expanding its RNG supply business, with multiple projects under construction and partnerships with dairies [10][11][12] - The goal is to provide RNG to all fleet customers by 2025, leveraging existing infrastructure [15] - The company is optimistic about the future of RNG, citing strong demand and ongoing investments in clean transportation technologies [16][17] Management's Comments on Operating Environment and Future Outlook - Management acknowledged headwinds from the Omicron variant but noted a return to normal operations in transit and airport sectors [8] - The company remains confident in its annual outlook for 2022, despite Q1 results being slightly below internal budgets [9][10] - Management emphasized the importance of the alternative fuel tax credit and its expected impact on future revenues [27] Other Important Information - The company has over $228 million in cash and investments with very little debt, positioning it well for future investments [10] - The company is actively engaging with Congress regarding energy market transitions and the importance of RNG [16] Q&A Session Summary Question: Impact of energy market changes on fleet urgency - Management noted that rising diesel prices are prompting customers to consider alternative fuels more seriously, despite volatility in natural gas prices [30][31][34] Question: Normalization of volumes into Q2 - Management indicated that volumes have returned to normalized levels after the January dip due to Omicron [44][45] Question: Updates on RNG project pipeline - Management confirmed that there are 5 more projects in the final stages and a total of 25 projects in the pipeline [46][50] Question: Clarification on EBITDA expectations - Management explained the gap between expected and actual EBITDA was due to volume recovery issues and one-off costs [53][54][59] Question: Outlook on LCFS prices - Management expressed a constructive view on LCFS pricing in the medium term, anticipating potential increases in targets [62][63]