5 reasons for clean energy fuels corp. shareholders to be bullish
Post on 21-Apr-2017
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5 Things Clean Energy Fuels Corp. Shareholders Need to
Know
By Sean O’Reilly
1. Still growing
• Clean Energy Fuels (NASDAQ: CLNE) reported third quarter FY 2015 results on Nov. 5:
• Revenue for the quarter came in at $92.3 million, an 11% decrease from the $103.4 million generated in the same period last year• Approximately $5.7 million of the decrease was the result of lower effective pricing on
gallons delivered
• Higher volumes offset price decreases:• Gallons delivered for the third quarter increased 17% year over year to
80.6 million gallons• Reached positive EBITDA for first time
1. Still growing
• For the nine-month period ending Sept. 30:– Revenue was $265.0 million, a decrease of 11%
compared to $296.8 million a year ago. – This decrease was due to lower effective pricing, as
well as lower construction and Clean Energy Compression revenue
2. Natural gas prices remain competitive
Source: Source: Clean Energy Fuels Investor Presentation December 22, 2015
3. Infrastructure in place to leverage future growth
• Convincing businesses and government agencies to switch to natural gas to fuel their fleets is not an easy task
• Customers seek convenience as well as economic benefits
• To overcome these difficulties, Clean Energy Fuels has:– Created a network for customers to consistently fuel their
fleets with clean, efficient fuel
3. Infrastructure in place to leverage future growth
Source: Clean Energy Fuels Investor Presentation December 22, 2015
4. Customer base continues to expand
• CLNE now boasts over 950 unique customers, each with their own CNG fleets, including:– 39 city airports– Numerous cities, totaling over 8,000 public transit vehicles– Cities and private waste management organizations equating to
9,000 waste transportation vehicles– National trucking companies with a total of 3,000 natural gas
carrier trucks
4. Customer base continues to expand
Source: Clean Energy Fuels Investor Presentation December 22, 2015
5. Government is on Clean Energy’s side
• U.S. Congress recently extended, retroactively, incentives to encourage usage of alternative fuels– Applies to fueling equipment for natural gas and other alternative
fuels– Eligible for a tax credit of 30% of the total cost, not to exceed
$30,000• On July 31, 2015, President Obama signed into law a
comprehensive highway funding bill that included a measure that will, effective January 1, 2016, equalized the federal tax on LNG to an energy-equivalent basis with diesel
5. Government is on Clean Energy’s side
Foolish bottom line
• Clean Energy Fuels Inc. appears to be at an inflection point– Significant infrastructure investments have been made
• Recently reached positive EBITDA margins• Even after precipitous drop in oil and gasoline prices,
natural gas remains competitive• Price competitiveness, plus environmental benefits make
Clean Energy Fuels a strong bet for the future of mass transportation and long-range trucking
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