Clean Energy(US:CLNE)2025-05-08 21:30Financial Data and Key Metrics Changes - Clean Energy Fuels reported revenue of $104 million for Q1 2025, which is level with the previous year despite the absence of the alternative fuel tax credit that contributed $5.4 million in Q1 2024 [19][20] - The company generated $17 million in adjusted EBITDA for the quarter, up from $12.8 million a year ago, driven by strength in the fuel distribution business [22][23] - The company finished the quarter with $227 million in cash, reflecting a $9 million increase since the start of the year [7] Business Line Data and Key Metrics Changes - The company sold 51 million gallons of renewable natural gas (RNG) in Q1 2025, which was lower than the previous year due to reduced supply from third-party producers affected by weather and operational issues [6][7] - Despite lower RNG sales volumes, demand from fueling customers remained stable, particularly from fleet customers in refuse transit and trucking sectors [8][10] Market Data and Key Metrics Changes - The company noted that tariffs have minimal direct impact on its business, although they create uncertainty for customers in the heavy-duty trucking sector [8][10] - The company serves over 69 transit agencies and 175 refuse customers across 325 different sites in the U.S. and Canada, indicating a strong market presence [13] Company Strategy and Development Direction - Clean Energy Fuels is maintaining its full-year financial outlook and capital expenditure guidance, with a focus on expanding its RNG production and fueling station network [10][17] - The company is optimistic about the adoption of the Cummins X-15N engine running on RNG, which is expected to drive future growth in the heavy-duty trucking market [12][30] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding achieving the 2025 guidance, citing potential impacts from tariffs and economic conditions affecting truck purchases [27][30] - The company is actively engaging with policymakers to support the Renewable Natural Gas Incentive Act and the 45Z production tax credit, which could enhance financial results once finalized [15][28] Other Important Information - The company resumed its share repurchase program in late March, believing its shares are undervalued while maintaining sufficient cash for growth [17] - Management highlighted ongoing improvements in RNG production from dairy projects, with expectations for additional projects to come online in 2026 [16][55] Q&A Session Summary Question: What would take you to the lower end and what could take you to the upside? - Management indicated that clarity on tariffs and the 45Z credit could significantly impact future outlook and volume growth [27] Question: How do you think about pricing for the remainder of the year? - Management expects steady pricing, supported by a favorable oil to natural gas spread, despite the absence of the alternative fuel tax credit [31][34] Question: What is the status of RNG facilities and their contribution to EBITDA? - Management reported that one facility is producing well, while others are ramping up, with expectations for significant contributions to EBITDA in 2026 [54][99] Question: How is the company positioned regarding partnerships with oil companies? - Management confirmed strong relationships with Total, BP, and Chevron, with ongoing projects and renewed interest in RNG from Chevron [86][88]