NEWPORT BEACH, Calif. - Clean Energy Fuels Corp. (NASDAQ: NASDAQ:CLNE), a major provider of renewable natural gas (RNG) for transportation, has announced a series of contracts with various municipalities across the United States. These deals underscore a growing trend of cities adopting sustainable, low-carbon fuel solutions to meet environmental goals and comply with emissions regulations.
The City of Fort Collins, Colorado, has selected Clean Energy as the exclusive RNG provider for its transit and fleet vehicles. The agreement involves supplying approximately 500,000 gallons of RNG annually to fuel 52 buses and other service vehicles, leveraging RNG's benefits of significantly reducing carbon emissions compared to diesel.
Similarly, the City of Beverly Hills, California, has contracted Clean Energy to supply 119,000 gallons of RNG each year for its 17 solid waste fleet vehicles. Clean Energy will also manage the monthly maintenance of the city's fueling station.
In the City of Arcadia, California, Clean Energy has won a contract to design and construct a private station expected to deliver 200,000 gallons of ultra-low carbon fuel annually for 28 transit buses and utility trucks.
Long Beach Transit has entrusted Clean Energy with the operations and maintenance of its private fueling station, which is projected to dispense 1.4 million gallons of RNG annually for 125 transit buses.
Garden City Transit Authority in New York, the City of Bakersfield, California, the City of Scottsdale, Arizona, Orange County Public Works in California, the City of Tacoma, Washington, Waste Resources in Gardena, California, the Port of Seattle, Atlantic County Utilities Authority in New Jersey, the District of Columbia Public Works, and the Fort Smith Transit Authority in Arkansas have all entered agreements with Clean Energy for fueling and maintenance services for their respective fleets.
RNG, derived from capturing methane from organic waste, is recognized for its ability to reduce greenhouse gas emissions, making it a practical choice for cities aiming to decrease their carbon footprint.
Clean Energy Fuels (TSX:EFR) Corp. operates a wide network of fueling stations across the U.S. and Canada and has RNG production facilities at dairy farms. The information for this article is based on a press release statement.
In other recent news, Clean Energy Fuels Corp. disclosed its Q1 2024 financial results, highlighting a revenue of $103.7 million and an 8.6% year-over-year growth in renewable natural gas (RNG) fuel volumes. Despite a GAAP loss of $0.08 per share and a non-GAAP loss of $0.01 per share, the company achieved an adjusted EBITDA of $12.8 million. The company maintains a robust balance sheet with nearly $250 million in cash and investments.
Strategic partnerships and project developments, including a significant collaboration with Maas Energy, are expected to contribute to future growth. Additionally, the adoption of the 15-liter engine by Cummins (NYSE:CMI) and the expansion of Amazon (NASDAQ:AMZN) stations for RNG fueling are progressing well.
Looking ahead, Clean Energy Fuels maintains capital expenditure guidance for its distribution business and has increased the forecast for dairy RNG investments to $120 million. The company expressed optimism about the future, citing a strong team to execute its strategy. Despite some delays in projects, the company expects volume growth, particularly with the 15-liter engine orders expected later in the year.
InvestingPro Insights
As Clean Energy Fuels Corp. (NASDAQ: CLNE) garners attention with its expanding portfolio of municipal contracts, a look at the company’s financial health and market performance provides additional context for investors. Clean Energy's market capitalization stands at $560.39 million, reflecting its position within the industry. Despite its growth in contracting, the company's revenue has seen a decline over the last twelve months as of Q1 2023, with a decrease of 15.39%. This suggests that while Clean Energy is securing new deals, it is facing challenges in revenue generation.
An InvestingPro Tip worth noting is the stock's recent performance, which has taken a significant hit over the past week with a price total return of -11.62%. This volatility could be of interest to investors who track short-term market movements. Additionally, the stock is currently trading at 47.81% of its 52-week high, potentially signaling a buying opportunity for those who believe in the company's long-term prospects.
Despite the contracts and potential growth opportunities, analysts are not expecting Clean Energy to turn a profit this year, which is reflected in its negative P/E ratio of -7.11. However, the company's financial stability is supported by its liquid assets surpassing short-term obligations, and it operates with a moderate level of debt, as evidenced by a price to book ratio of 0.78.
For those seeking deeper analysis and more InvestingPro Tips like these, there are additional insights available on InvestingPro. For instance, Clean Energy does not pay dividends, which may influence the investment strategy of income-focused shareholders. As of now, there are 6 more InvestingPro Tips available for Clean Energy Fuels Corp. at https://www.investing.com/pro/CLNE.
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