Clean Energy Fuels Corp (NASDAQ:CLNE) Q2 Earnings Disappoint

Clean Energy Fuels Corp (NASDAQ:CLNE)

Clean Energy Fuels Corp (NASDAQ:CLNE) has dropped 20%, in eight days, from $3.00 to less than $2.40 on an inter-day basis. The market sold off the clean energy stock after it reported Q2 earnings in which revenue fell over 25% from the same quarter a year ago. Volumes were heavy during the period and, on Friday, the number of CLNE shares traded was more than double the 30-day, daily average.

Clean Energy Fuels Corp (NASDAQ:CLNE)
One month daily candlebar chart for CLNE

Clean Energy Fuels Corp (NASDAQ:CLNE) provides natural gas fuel for use in North America’s transportation industry. The company builds and operates clean natural gas (CNG) and liquid natural gas (LNG) vehicle fueling stations and also manufactures CNG and LNG equipment and technologies. Clean Energy is the leading provider of CNG and LNG vehicle fuel in the United States. Clean Energy also sells Redeem™ RNG fuel and claims that it is the cleanest transportation fuel commercially available, reducing greenhouse gas emissions by up to 70%.

The Newport Beach, CA-based company delivered 88.4 million gallons in Q2 2017, a 6.6% increase from 82.9 million gallons delivered in the same period in 2016. Q2 2017 revenue was $81.0 million, a 25.0% decrease from the reported Q2 2016 revenues of $108.0 million. Clean Energy claimed the decrease was primarily due to a lower effective price per gallon due to the company’s sale of certain assets related to the upstream production portion of its RNG business. Like the rest of the industry, the company’s revenue was hit by the expiration of the U.S. federal excise tax credits for alternative fuels (“VETC”) on December 31, 2016.

Andrew J. Littlefair, President and Chief Executive Officer of Clean Energy Fuels Corp (NASDAQ:CLNE), stated: “Continued volume growth and positive adjusted EBITDA made for a favorable second quarter with what we believe is positive momentum moving forward. Particularly of note were several significant customer wins with our Redeem™ renewable natural gas, demonstrating how the transportation industry continues to embrace the cleanest fuel available.”

In 2012, Clean Energy Fuels Corp (NASDAQ:CLNE) was trading over $24. Since then CLNE shares have been on a continual slide and have a 52-week low of $2.18. YTD CLNE shares are down over 15%, and are down over 13% for the year. CLNE shareholders have experienced losses every year since 2012 when the company posted a loss of (-$1.16), however the smallest loss was last year at (-$0.10). Sales have been lackluster. In 2015 the company reported $384.3 million but that figure increased to just $402.7 in 2016.

Two investment firms follow Clean Energy Fuels Corp (NASDAQ:CLNE). One rates CLNE shares as a “Strong Buy”, while the other rates the shares as a “Hold”.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

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About the author: Steve Clark is a 23-year Wall St professional with stints in M&A, risk management, and algorithm trading. Steve keeps his head in the game by looking for, and writing about, small companies that often get overlooked by the big investment firms.

Clean Energy Fuels Corp (NASDAQ:CLNE) Q4 2016 Revenue At $101.8 Million

Clean Energy Fuels Corp (NASDAQ:CLNE)

Clean Energy Fuels Corp (NASDAQ:CLNE) released operating report for Q4 2016 and year closed December 31, 2016. The firm recorded 84.1 million gallons in Q4 2016, a 7.4% jump from 78.3 million gallons over Q4 2015. For the year closed December 2016 the firm recorded 329 million gallons, a 6.6% jump from 308.5 million gallons recorded for the year closed December 31, 2015.

The financial update

Clean Energy reported that revenue for Q4 2016 came at $101.8 million compared to revenue of $119.3 million for Q4 2015. This decline can be largely accredited to the recognition of an entire year of alternative fuel tax credit revenue of $31 million in Q4 2015, while merely one quarter of VETC revenue of $7 million was recorded in Q4 2016.

Revenue from gallons recorded and revenue from station construction jumped in Q4 2016 versus the same period, a year earlier due to volume growth, the construction of new natural gas fueling stations, expansions of present natural gas fueling stations and increased effective prices by clients. Compressor sales dropped in Q4 2016 YoY basis following continued low international demand.

Clean Energy reported that revenue for FY2016 came at $402.7 million compared to revenue of $384.3 million for FY2015. Volume-related revenue and sales proceeds from station construction jumped in FY2016 versus FY2015. These increases were majorly offset by a drop in revenue from compressor sales. Moreover, VETC revenue dropped for the year mainly due to a change in the process of computing VETC that became effective at the start of 2016.

Andrew J. Littlefair, the President and CEO of Clean Energy, reported that the promising momentum continued in 2016 for company with volume growth, improved adjusted EBITDA, reduced debt balances and increased station builds. They continue to leverage their natural gas fueling setup by increasing volumes and at the same time lowering capital expenses and expenditures.

Clean Energy continues to be the market pioneer for the increasing count of fleets choosing to take benefit of natural gas as well as renewable natural gas as an instant, inexpensive and ecologically friendly substitute for vehicle fuel solution. In Q4 2016, on a GAAP basis, net loss for Q4 2016 came at $(3.9) million against a net loss for Q4 2015 of $(50.0) million. The report comprised a net gain of $9 million as a result of the debt reduction.

In the last trading session, the stock price of Clean Energy declined over 4% to close the session at $2.57. After the decline in last trading session, the market cap of firm now stands at $375.31 million.

3/08/2017
Ticker Symbol JONE
Last Price a/o 3:21 PM EST  2.70
Average Volume  1.83M
Market Cap (mlns)  362.86M
Shares Outstanding (mlns) 141.19M
Share Float (mlns) 121.99M
Inside Ownership 43.50%
Short Float 121.99%
Short Interest Ratio 3.71
Quarterly Return -26.57%
YTD Return -10.14%
Year Return 18.67%

I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 96 hours. All information, or data, is provided with no guarantees of accuracy.

About the author: Monica Gray has an undergraduate degree in Accounting and an MBA – earned with Honors. She has six years of experience in the financial markets and has been a securities analyst for the past two years.

Clean Energy Fuels Corp. (NASDAQ:CLNE) Deal with BP p.l.c. (NYSE:BP)

Clean Energy Fuels Corp. (NASDAQ:CLNE) 

Clean Energy Fuels Corp. (NASDAQ:CLNE) announced this morning that BP p.l.c. (NYSE:BP) will acquire the upstream portion of Clean Energy’s biomethane production business and sign a long-term supply contract to support Clean Energy’s continuing downstream renewable natural gas business. The deal enables both companies to accelerate the growth in renewable natural gas supply and meet the growing demand of the natural gas vehicle fuel market. 

The $155 million deal sent shares of Clean Energy Fuels Corp. (NASDAQ:CLNE) up over 30% in pre-market trading. The pre-market volume is indicating that total volumes for the shares should be very heavy for the trading day. Clean Energy shares have had its short interest drop about 1.6% recently. That could have been due to short covering as CLNE has dropped, prior to today, over 8% in the previous month.  

Clean Energy Fuels Corp. (NASDAQ:CLNE) is a provider of natural gas fuel for transportation in North America. The company builds and operates CNG and LNG vehicle fueling stations; manufacture CNG and LNG equipment and technologies; develop RNG production facilities; and deliver more CNG and LNG vehicle fuel than any other company in the U.S. Clean Energy also sells Redeem™ RNG fuel and the company boasts that it believes it is the cleanest transportation fuel commercially available, reducing greenhouse gas emissions by up to 70%. 

In 2011, Clean Energy Fuels Corp. (NASDAQ:CLNE) reported sales of $292.7 million and the sales growth has been over 12% despite a 10.4% drop from 2014 to 2015. EPS has been less bright. In 2011 the company lost $0.68 EPS. The following four years never saw a positive EPS number posted and in 2015 the company posted its worst EPS loss in the past five years – $1.47. Of the three firms that follow Clean Energy Fuels Corp. (NASDAQ:CLNE), two assign CLNE shares as a “Strong Buy” and one rates the shares as a “Hold”. 

3/1/2017
Ticker Symbol CLNE
Last Price a/o 9:17 AM EST  $                      3.14
Average Volume                1,630,000
Market Cap (mlns)  $                  344.67
Sales (mlns) $420.20
Shares Outstanding (mlns) 140.68
Share Float (mlns) 121.99
Shortable Yes
Optionable Yes
Inside Ownership 10.80%
Short Float 5.66%
Short Interest Ratio 4.24
Quarterly Return -33.60%
YTD Return -14.34%
Year Return -14.93%

I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 96 hours. All information, or data, is provided with no guarantees of accuracy.

 About the author: Marc has a degree in economics and a MSc. in Finance. Over his 20-year career, Marc has worked for global investment firms in Europe and the United States as an analyst, fund manager, and consultant.