CLNE - Earnings call transcript Q1 2022 | Clean Energy Fuels Corp.

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Operator

Good afternoon and welcome to the Clear Energy Q1 Conference Call. All participants will be in a listen-only mode. [Operator Instructions] After today's presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note, this event is being recorded. I would now like to turn the conference over to Robert Vreeland, Chief Financial Officer. ahead. go Please

Robert Vreeland

Earlier for operator. Clean released Energy Thank first this quarter results the XXXX. ending financial you, afternoon, March XX,

did the XX a call replay release, days. the also being Investor the not on will available is website you be There company's where the of Relations the it www.cleanenergyfuels.com, at available webcast. on section If is receive website for

EPS in predict. conference like The absence statement the release differ as Risk obligation in is to results. as company's indicative not prepared Words be performance, this supply does cause considered and non-GAAP forward-looking company's release. certain of call differences EBITDA GAAP as not between reflecting Such in detail should management believe, the that factors in difficult non-GAAP be will only our results. to does GAAP a is after any the statements begin, actual the we'd results not assumptions with forward-looking today. a been to or are contains adjusted this the considered and information this and date and to information, Clean statements in satisfaction adjusted These reviewed of superior from or such XX-Q circumstances on I guarantee Non-GAAP addition and this no for non-GAAP the EPS a or are could plan, we in contribute materially such statements The Andrew that call management that has and not reasons not comparable why statements. update Several company's forward-looking. as and in exclude business expect, regarding company's reconciliation operating of results information remind those identify furnished information, that Before current could and non-GAAP and of company's some anticipate over uses mean turn to on forward-looking statements substitute speak a news figures should, that, expenses directly forward-looking that prospects of Form GAAP such these are press publicly EBITDA the to and Factors SEC section contained the of will of today. Littlefair. X-K which with Chief accordance expression of date company intend, and Executive measures should Energy's With similar new to the described words provided be on The uncertainties the President undertakes involve Officer, Form the their release. well of filed the to GAAP contained definition financial but call the the forward-looking you risks, believe release, as are variations optimism, statements, that core

Andrew Littlefair

Good thank and everyone, joining Thank you for you, Bob. afternoon, us.

in of headwinds Our some year almost year beginning due or at in notably alone. in momentum in XXXX we amounted of QX sector. January our most fuel to first gallons had from the variant to shortfall transit of million XX stalled a in We transit about X.X%. spike, the volumes million Omicron gallons million to pretty grew The quarter X.X and $XX the saw strong this

Advantage commodity subsidiary. also NG We curtailments our significant had winter-related some at supply

to Keep the arrive quarter increased latest million by by interruption. the into from led to overall our fuel positive in I the to fuel in we did of very first expand year. for not across half Adjusted were trucking this ramp-up alternative impacted Revenues and returned the tax that our address, from mind sectors want COVID that These the side, of assume analyst Amazon a credit is any was off different area the airport have Advantage, normally increasing that this out and slightly minute ramp but But to saw $XX were a our year. been the XXXX. transit of the QX million. $X.X biggest country, the include the We of general we feel recognize take the On volumes slowdown in like timing, $XX.X EBITDA roll will Omnicon to end internal on current is I difference budget. close quarter. have were would and The for and seems continue second that the not the I the in results internal the additional it's throughout however, NG operation trucks AFTC It consensus. in volume that we budget. at revenue, important. quarter-over-quarter normal which internal we don't that quarter our being an X.X% more volumes from grew, it by million principally quarter curtailment to budget

not divergent Our quarters smooth. and are

given. look debt. I investments quarter when over are The ranges and even million over our with company a position remains the during first at for Bob strong However, go we will in remarks. $XXX very guidance his this financial outlook the very Bob has in cash detail annual given with and little results, within still XXXX more

future in business the of during BP RNG gas for in new signing The transportation. up and the into We as natural projects quarter. ventures for of XXXX. supply as first continue our progress to new invest renewable The pick business turned our in steam Total stations XXXX RNG to quickly Energies agreements well around continued country supply joint Amazon in our the of momentum we as clean and with fund construction

venture which supply When Total dairies Park mark and flow Iowa gallons to recently through gallons the Texas, under at expected signed Dairy a are through another with once signed completed. completed, the completed. group we BP million and XX% is construction. in X joint We partnership our which project ground first we broke will with in signed produce We joint our these X almost Rio in on is of RNG to Dakota when the RNG schedule Energies, X.X County, projects Del completion annually. on produce million of year Hart a venture with are gallons South South dairy in that million X well A Texas,

announced has earlier, very year. it's we have digester has just signed producing should million one million at As proud getting Millincap a Kentucky are to RNG X areas we gallons not of RNG on are cleanest the produce a largest Idaho, agreement country, a potential partnered And gallons dairy least with that transportation planet. year. on producing construction with that the large the Farms, the of into the in of where the of cows in X.X the of operation in We that an O'Brien act fuel swine begun

this can continue the year busy and through been to you accelerate of RNG pace see side, as and demand So productive into XXXX we beginning expect RNG next will it's the on a the and year supply intensifies. for

are emissions them in first for the during such their asking better. school no to gas program. our it and fuel, intensity the The including carbon increase which converting Our demand to California the of way the of new and first delivery to trucks the score financed services and carbon low-carbon reduce postal lower now their as zero all carrier than fleets There cost-effective by for fleets for deploying more customers the is customers easier, RNG. quicker ready-mix, heavy-duty continued are -- RNG quarter natural national through their for across segments, both really

CR&R contract carbon is expanding the RNG extensions we RNG program. just saw standard that LA there fuel customers fleets, the highlighted in low including Santa strong demand is by San County story of not are just California also Diego, We Monica. their -- from is Metro, city North existing a in large signed, where But Transit

signed the We expand UPS and is have we York third Services. Arizona Amazon, to from and where British equally continue refuse to fuel, parties. a contracts heavy-duty adding important existing In which with companies, Columbia trucking can transit New XX with regular customers with first CNG nationwide to focus site supply RNG from added in we management online fuel trucks. quarter, from And Canada, we customers to customers CNG and Republic waste firms we and ourselves RNG as it agencies convert to on new comes that like

it to fleet provide our goal by of to our you customers is all RNG As XXXX. know,

One about I transition believe dropped the into had be the around of into energy longer Much that more to the RNG in highlighted existing in and turn the emphasizes the Congress. We how requirement many this thought. available, going And the meetings the underscores of attributes week, in of this fuel and multiple I've of scalable of Milken at were I RNG of is the future which markets anywhere panel participated Conference the members is the energy many Institute can with energy. be of difficult advantage currently than turmoil that last is RNG, discussion country, only CNG take that it was clean in to infrastructure where in a easily customers Earlier and us is Washington the customers. week, discussions the a economic. expensive transportation I allowing and technologies

this announcements of development solution. positive. need of good shoulders and extensive but pouring play. into maintaining advantage about RNG market in into with will in environmental a something new other into value. capturing Energy's find in is continue our which These comes that That methane positive experience stand network the of to We engineering, we new a head also fuse its above We the years any investment going all new projects. constructing Clean maximize means can solution nothing and provider hear see confirms fuel that fueling network distribution station where about as to It dollars turning RNG, is and

large tarnishing very effectively than RNG will pull optimistic alternatives RNG of day, We carbon and have UPS, objects. the to shiny kicking Bob. through amazing will about and activity reduce in those Republic Amazon, we anchored up stations bit. with up promised a a doing New our this promise that I Amazon. York fact, that Transit of other XXXX thousands turn every problem change. heavy-duty fuel solution projects the the emissions the Services, of of way climate the Management, that because Eli of many over other tens In working by is is remain cost been tackle But vehicles And Waste their now that, call customer, board, much be reality much dispenser, of realistically and to our is the to have Metro, can which with some more XX fill new so fueling is

Robert Vreeland

Andrew, outlook everyone. moment. discuss Thank good will and a I afternoon our in XXXX to you,

quarter mentioned, fourth from and to Andrew the effects. volume lingering the due Omicron our As recovery surge came trends off its

came and XX.X recovery volume at revenue what in in the and $X.X into year increase fuel as saw $X.X strong. we volume The from a up mostly the Now little stock X.X% a RNG or we for million I'll revenue consideration effective includes taken incentives. revenue which RNG contra into XXXX quarter demand a -- first or ago, looked XXXX. taken relative by that this that quarter tax million to of the which first go gallon being outlook, there helped we've the higher we of remains year as from tote Revenue We we've And million feel X.X%, in ago. well, was a XXXX in of despite higher million price a in is was increase per later. delivered to ended. our compared warrant and in credit Amazon gallons $XX.X XXXX alternative volumes fuel on bit And

was in XXXX Amazon a of price gallon That $X.XX first increase. the off Our excludes per effective revenue per year which compared quarter contra that's the QX gallon That's of that about was a gallon, come charge, to per ago. $X.XX XX% $X.XX $X.XX.

that just This a say, in higher pricing. with really of going a contributing our of to ago on kind kind up year though, what's So also, commodities. to with go seeing from RIN was I'll comparison we're line that

for quarter margin of gallon XXXX Our per $X.XX. the was first

was ago year margin $X.XX. Our a per gallon

of target was XXXX for first the internal $X.XX. Our quarter

$X.XX first from XXXX of what first impacted LCF And pricing. per XXXX, The that So more pullback we a seeing than were in trends the end had of maybe the we had but at 'XX, quarter back we it anticipated LCFS gallon. little planned. of the and the the margin the revenues than pricing was offset lower while RIN in higher anticipated which lower our the LCFS pulled pricing quarter

awards of revenue the and to the our in increase when which from So actually came SG&A, quarter a price. attributed performance-based is most plan. compensation, year stock combined, much RIN on and for stock of On generally ago LCFS is over the higher

in RNG strategy. have our execution In addition, our SG&A of increases based on been planned

to share charges. $X.XX was fuel the million GAAP in included XXXX per Our XXXX and was quarter first the per of Remembering quarter of share $X.X loss million credit, for a $X.X that warrant first GAAP $X.XX XXXX. loss reduced stock compared in by alternative earnings tax Amazon of

-- stock incurred compensation the we've That to And XXXX. of that well, higher Advantage And our of some issuance million debt. NG refinancing rose for first by from in finally, subsidiary As $X.X start-up quarter last then our write-off our RNG operations costs year. $X.X million related of exist about expense $X.X didn't year-over-year expenses our by million. the interest the XXXX was associated supply with debt was

R&D our share of last alternative additional $X.XX adjusted and was in loss credit the And XXXX being first share impacted XXXX per by to quarter comparability was per share $X.XX to non-GAAP and the XXXX, tax the compared The of some XXXX alternative in per here as loss incremental also year. -- having impacted related having tax the million. adjusted fuel loss planned expenses fuel non-GAAP around expenses adjusted Our XXXX, impacted versus Again, then as activities. well. being as $XX.X our strategy XXXX well XXXX our as interest the was in for as million by RMG XXXX $X.X credit EBITDA

Okay.

on anticipated guidance our updating achieve, events to in did analysis In headwinds consideration the we'll XXXX, and first to is move still out normal we it our could possibly quarter took the first from standpoint. And quarter that we possible We prior while could of took out the that of our we just the looking timing ramp-up some believe terms the on of a sensitivity assumptions push push that. into forward. saw

So as a updated our result, we've guidance.

estimated is range million loss to $XX $XX from million. GAAP Our to

of milestones. change then million, spend operations. million range $XX change our that stock the there possibly seen reflects volumes to at this and of that's And EBITDA we've added and made more supply the based a of compensation performance level, of much we've $XX related adjusted Now updating RNG is around on that scenario a to lower that

saw even look and lower But strong. we considered than our consider for forward, dynamics also On 'XX, prior that the we've in the LCFS are the rent lower And even first we a LCFS RIN front and view. recognize we at if the going considering our remained we quarter. price that has

So about around a And those heavily put view adjustment the forward our fourth those third emphasize would dynamics we lastly, not I'll I'll and really kind that on rise I did the when X of still we give toward credits together, is spoke the last meaningful to this quarter. weighted call, guidance. to the say. emphasize,

credit assumptions the past still alternative is our that get year. this will Now big assumption tax fuel one the of

in top so least there of quarter we a the come miss $XX being was of of striking we've some on got And also kind is are that results in that But else, Andrew I in happens, plan, modeling, quarters our building in internal third other and the the there. does assumption results. the we a volume the of then just what's there's And really consensus. a really, there And as here without maybe feel think would see to it fourth -- operating our each was mentioned, see our now we that on contribute ramp-up -- million third quarter risk I And more out normal And distance we but if our that would of AFTC. in that and certainly quarter. planning in quarter. first us anything that about be of And at within $X embedded would some with quarter. play saw to think that then -- uneven is contributes, million

So call And that. open do the operator, at hopefully, questions. with we'll we'll better to that,

Operator

from We question session. Eric will comes [Operator Stein. question-and-answer now begin Instructions] first And our the

Eric Stine

high-level piece, the energy a been with added start prices, economic the many oil seen just a on to with I'll of has haven't going years sustainability which price this of what's diesel case years. number argument for the and maybe the so now Bob, markets, question in for

if you of you're discuss type deal with of with doesn't a curious you're what as the kind urgency the on things as much as having to seeing gas, result can well of you're as know would. seeing. natural Just fleets cost I from it but that obviously, side impact diesel price

Andrew Littlefair

really question. good our right? mean Right. say their that no, I I costs. customers largest Well, And this, it's it It's impact are Eric, does a them. watching among would

an mean, about prices while of this gallon of selfishly Eastern at right any out and think in seaboard don't looking me, way. at in and elevated instance, up a a business the we most in alternative of I I'm $X.XX mean, for diesel us I $X.XX people that's Island. diesel I Newark so love it And week think went price, sheet like, last the fuel this But Boston, in Long in front

kind of seeing and XXX And shock price gallon. is coming a diesel a so California, of the we're through in diesel

know explain healthy don't environment their now about surcharges that's they're having so essentially making I there and customers -- people themselves; a that's I feeling choices for about talking that necessarily. that know don't is So to their to

range $X about we did our in month gas time advantage we yet so prices news a on our natural NAN, range. -- obviously, in essentially But the buying of not on go an we're But obviously, good Now $X big I at spread point double, that's view, we right? other price a almost from to from on the for everything our see we the we've mean But seen us. price. the -- are spot. Now have spot seeing hand, we and a were commodity

through. and $X.XX that still your good offer while of customer to cost that we're commodity to commodity the move that's a put Well, customer able certain price able almost And in saw terms wow, the and to through there say, cost of $X.XX markets. slight to of our it, volatile that while would almost careful a about news one $X pretty how in of we commodity. we our are little so And compression we there, this is, we're to savings sensitive to

our lost of value not customers. an our cleanest a on fuel is going is mobility to innovations mean, isn't to the be many to us price them. a and of savings that I for listen -- So the able that, technologies, at added [indiscernible]. And about electricity can't other savings. and the that's speak planet I advanced still it people isn't cheap technology, technologies. And advantage that, to right? forward, substantial there on they know There but talk

most diesel. discount of having can't talk substantial about our so competitors a to And

in of would in turmoil it's I give little a pricing it So the turbulent, customers it advantage continue and Eric. in been we've a trucks and new this air. market we've in customers it say means though the environment. there's to an our lot able to volatile fine, gotten our to advantage out of bit balls does offer fuels But It us creates and through our

Eric Stine

it some X other shift giving of -- you're mean, maybe with to to that it's to about pieces number looking you're to maybe had to to those That's that optimize to but to I those and fleets curious turning one just we we've the away. that? numbers feeling know I realizing Got objectives, extent elevated how key RNG back gave the the then X-year how RNG. RNG customers your a I Maybe you just from targets it. years of and seen kind the some feeling one guess with helpful. get about of going -- you O&M And And

Andrew Littlefair

our January other changes for Any on the it that Yes. joint and down ago the market broke with 'XX And our One Eric. that's seems to party, is on and of that partners And supply projects. bond, That projects. gas, there's in we and parties now, was that it, other we like and also That our landfill yet. it's So venture own, time own a lot operate plan RNG with third components in the was right? a that animal long partners, landfill dairy big a was track. manure third let's being development our and unveiled X of that, you're place. is call right? in bringing of own

capital projects We committed with and have $XXX very which in January X million, much construction what said on line XX. have under is we of

we I inked that under that said at think point, all But have there's these projects had I at around. we and said remember, time, kind we we actually when more we we think And of construction. bounce of of -- X numbers than now had X sort then.

we X underway now. projects have So

are million. that more X for phases have definitive $XXX We in the another

those So in there was more I joint number XX the we are pipeline. time as would I ventures has going say are more I there Last planned. that in and in the talked, That many projects think increased. pipeline. said the

from numbers our time over side, So stand. development to where I on those getting we like

gallons have third are third-party multiyear. flowing this for And in agreement those those year XX another will begin currently million are commercial We with party. in agreement, that

we add. So to continue

million think quarter, one we just signed here I recently X more gallons. for this another actually

others. from we to So biggest of landfill tankers, and third-party fuel one of add friends We're the our right, continue in.

point, to there's a at XX, the this bit carbon continues go been from weakening say that strong. on standard of I'd And you pricing. Eric, little fuel other in So low saw than what

On RIN hand, strengthening the other the pricing. there's been a on

a up all of that's that as intact. and net-net sort Bob said, well; plan So that's pretty is holding

Robert Vreeland

to in customers -- of with that, in can being And will mean, over optimizing terms and as well -- them have that on of there, O&M of to still that's get works our plan, lot certainly also have they and our was many gallons, the we optimization it convert soon RNG the that bucket still we of for in take Yes. our because O&M as a yes, it. as have -- add being demand of yet a nice the the and I’ll customers Eric. I

Andrew Littlefair

as implicit add that's I'm a to that. those right? what California, to say, limited we come of Amazon volume. trucks, kind right? mention little but California can And those of increased I Many on Not on So

And so embedded of those as volume RNG. Amazon well. kind new that's and all the It's customers in new

Operator

Brown, Capital Our next Rob Street Lake question Markets. from comes

Robert Brown

clarify But there's the QX? know it's volume I to Or maybe say How normalizing. you kind still wanted the volume impact it you Just of some tail on sort seeing sort current is QX? pretty impact? recovered... Are much of your of comments is the normalizing into in any here.

Andrew Littlefair

Yes.

because were to was days we I X.X haul to that quite say, people we give wasn't the couple some of did I transparency clarity throw that And -- business. call We right January as I that really that think a in customers what airport that give transit we much trying airports is this Rob, try and see after that's our -- tried possible. wanted number this today and because we're look, that clarity want And about very at there's for [indiscernible] to identify our I as -- trying transits. not on were was just and million it was to of big lot in large. -- impacted as last to to in an Christmas gallons didn't up alone showed January, preparing

to said back. what quarter, this I is that thought enough, have in of it's kind -- have So I I our of it didn't in seen seen gallons we million stress maybe just coming come that all -- remarks, now several we

the up kind some another place. normalized back volumes on It looks of So took flare seen airports, here have and the we transit. like those ding had on that at what we wood, we knock in January. we're

Robert Brown

dairies build-out you Have of the good the what activity pipeline? And project the year? the for rest on like the of efforts. good. got kickoff sort updates more Okay, of some And RNG gave you the kind look in

Andrew Littlefair

have signed so we of underway. X that just you kind that are X told have Well, now that I -- more we

listen year. off have We agreements. more I if in get will front. this exact definitive few this know, come -- will few I'll We know that. our more sit of how have are a that's that -- in the stages more, have I got or an I all checked I I on year. now in in Those of be number. it's and kind those the before of think I But minutes, one kicked there see back, if call of many this we're Then here, final pipeline with started I'll we our get X might busy the you would a this this morning. can't as XX partners the -- don't than Rob, on update that get a for

the offtakes the of lowering face developers down place standard, a the With a pause. the this more little friends curve low are gives and we'll put RNG let's some less less fuel concerned bit, capital to in less about our on capitalize or carbon side it, development some that little have and the moving of the

kind our -- I any and constructive. enthusiasm question it. generally come in with and lost any that we the We're haven't haven't BP glove we're in we're with dairies will haven't they checked on. team lost -- their for lost of focused we generally at hand development However, up, compadres figured we're that

and and people As that the they of about a And be part forward, we so the is coming continue look we there's business are out, the plan, to be conversation and what We do -- will the year. middle and believe pricing I working. spot, lot has that that and is fuel of to will this RNG it Board that California and really dairy those we're knows the fuel we over we just the it to about continue a believe watching carb increase get know over And and said later been -- time, to know a term constructive Resources very be bright that of now, and been happen lot this going happen and the think [ph] low but low is that their of that, a Carba it standard that relatively the very on been targets. plan focused plan, and carbon will what's AR important there's carbon this will standard.

seen supply we've And as demand think fuel so I be an the credits, there's of seeing. and I that of sort will, if market fuel in of less therefore, is use bulge, generating right? what will market but price expectation the of the in of you So credits the bit little California that's a may renewable dampen diesel. a looking are at generation people that think overstated, of

month, look So ARB and targets believe that -- plan. but latter at year time like I curve by and in we looks construction here good will for scoping XXXX. feel next happen like the over when that we likelihood -- to maybe we'll fuel the low projects of kind carbon over the of part XX the the have about their increase this me we next year, of standard. we next that early peel the pricing those won't in feel end back next

So that plus would more. X% be X kind the plus of X the

that's done. just means that how kind now will it doesn't that So we're mean go. of that It -- that's

was XX I was being a had it unclear Now the said I in the in pipeline, that little the pipeline. because last I quarter, used --

XX right We now. have

on interest there's So shortage of the no side. dairy

country. County, talking and developers in was in of Current women been we're over Texas one Dairy, the they're nationwide, our They've or This all is men Kansas. Wisconsin, in and -- Our California. with

dairies. that look we way because to want the Senate, at of bill, both at projects look methane some state bubbled very are has committees the they're and as In up the the House that This to a had fact, of wanting exactly at capturing energy RNG conversations. of play XXXX might legislation agriculture interesting I've understand help to farm its

And -- their to want information what's curve think the and little understand want was they so behind some maybe of they a exactly on. going to I

we've very what's them development so on in And discussions had with fruitful commercial on of this the RNG side dairies. just happening

Robert Brown

Okay, it. turn good. great. very was That it appreciate over. I'll I

Operator

comes Credit question Manav next from Gupta, Suisse. Our

Manav Gupta

have sorry understand a quick here, this I'm to A question better. and I little

X.X%. between to us the side our coming when kind gap the of side, it's And was it's quarter cost that revenue understand last created versus was $X.X we you -- Can the about on your think expectations. this thinking what us be million help little model you of more better. XX volatile major update little the delta were EBITDA. to that that expected could million if fully $X a help of of a on gap $XX I us blocks would help and or I versus lighter as than bridge going What in bridge million, were or

Robert Vreeland

to about $XX that Manav, just a little all goes kind -- I And back of part $XX for that. kind that $XX and doing -- we EBITDA starts it I guidance, the get think least which reconciliations not math million to to the quarterly disclosures starts like million of and on without then require back million, -- could and you FTC, looking adjusted it goes we a year and the I at is, more quarterly quarter. close to our being we're -- Frankly, point, at specific don't would I get at AFTC you without of talked bit feel it to to mean, give

tricky internal ramp number. ends significant a a just having plan the when And our up giving so to basically it's little without

so like happened in And I what of or variable it's or operational terms you an matter, some that on that anyone missed missed. within Manav think business the not

and up you XX, think I And if QX, in also like I were there. little think math earn-out bit you QX get well, it right, took a 'XX. say, And was and ultimately had or that for say, QX exercise off X it. a if of, off didn't that money well, at ended coming you even being if gosh, take AFTC of

say, or would put I almost million and out have the in AFTC, you at the take was X that back well, QX more category less XX.X% look So that million. $X

I that's on were So really, think, where we that. at

Now the of going in kind is forward -- look, I bag. mean, QX and in

But if wouldn't target our And was kind target having with to closer X%. in the So little stalled X of the out. things our we came there. Omicron blew action be bit kind of a maybe own conversation at we internal and

we so have a So -- what think that's I little.

Andrew Littlefair

this. why giving guidance at need this is maybe I of looking wish we to at were wanted analysts some and you So wanted point, I -- the will. quarterly we it's we And highlight all look, we that all

We haven't been.

to not -- -- suggesting the and toward And I'm but -- the So by it's expected this, that and of it's what easy a maybe back X you I did come totally -- divide kind understand of year. little necessarily we add it's bit end that wasn't here.

we're And a could expectations trying and that up want guidance, XX. this so saying we I don't light a to annual want of here we say are to to XX but for still have that either on still -- we a QX, bit range to of the yet -- set there's bring wanted we be full because to

no in half quarter a it back you're And is comes with these if and it's trucks that ramp AFTC trucks, third Amazon really that deploying and going so have and and what coming to in, you the the matter the that's fourth says event. when other have

I “Oh, our I can’t it to we way XX we’re works. not doesn't to probably analysts to I’m glad and know That’s call that thing. you’ve tele-med wasn’t call, number, you help lower a the God, come that got you. But and -- down. my the there, raised happened allowed So where that, game wasn’t the business couldn’t because this up we’d -- not XX what don’t

Robert Vreeland

No.

of I I would you than But are -- volume -- own anticipated. come spend, the have we but liked. outliers, know we happen our get also of I'm was as forward. have we are then And an Manav, down some are kind not recover lighter quarter to also while so to, really encouraged there that things volume if volume back When not issue extra you're us, off some played or when than then kind going in some get for

referring little that more see we to saw -- saw to of type operating be budgets, That so going I and capital. we I'm that, But frankly, we're of forward. So a some more don't when that recurring in going expenses I'm one-off they'd we're that costs but are, say, viewed had bit we maybe the RNG that is that not supply. kind thing of those

were that starting we just different So little at a But bit point. think QX. a we had I of ultimately, in

Manav Gupta

I sometimes. easy not mean Perfect. job your is

not easy. job is Our

the to are but lot appreciate understand, kind the you will And the on have probably a LCFS just LCFS quarter, little car back XXX come DX to LCFS trying do most I'm where bit made are call, follow-up that's again, you targets. I understand, visibility. than a will I'm look, My the it are can at or you understand, question whatever, on any sitting long point here more basically of on. you tricky XXX. debate. trying you from it. of where this of of this think recently and this fully to between think of Or are But guys never them think debate is, can LCFS of probably permanent I unnecessary a know were a at prices range question, think out. not car, which likely is versus higher trying then go the kind we prices just there lower? it's thinking coming seems bearish transitory, you I start the reason a saying, little balancing but more bearish But or the or last comments is perspective, that a and be will So lower this And kicked more where maybe prices you more little lot just you're where at prices probably back I'm LCFS change in, I in getting you do your saying, the you XXX RNG It's an they see to. is of out where were going

Andrew Littlefair

question. It's We're it watching closely. good No. a very No, Manav.

it us. third-party We people analyzing have for

I I continue -- believe case. that don't you're out standard. that's the to right. targets debate think the kicked should have dairy think don't low We whether to going or we a continue We farm we will fuel somehow don't going is not exactly be that, to increase. believe do I get think to carbon

months the So a That's prices. term. weekend. plan that's That be be for going out. happen a does positive will increasing away, for constructive and prices think in to that doesn't few effect It take a that's I thing longer but good right in the scoping next

it first I is we'll tell that below sit don't go below. you today, The here will and think I where go it ever time

constructive And I we part medium So chance down don't over there's the guess more think So on tend shorter, XXX, okay? term this. is want to think I dip of I there a term chance you're bullish, XXX the that it on but maybe now. could to it are versus lower on say we -- have pricing you'd that of I a medium

this was about our So we've forward. we're feel they moving of and thing? where structured can deals kind it And good we us. And withstand it, not so just look,

people look off us us carefully, right? really and as all friends move at forward. have too, our But check and optimist, at Total, can they this to are You of I continuing that mean, BP

Manav Gupta

when up, believe been down I have not Regio that wonder moving message Chevron the... carbon prices longer-term I -- you are acquired moving very sent a clear

Andrew Littlefair

at -- XX there -- were to of this energy literally that breathtaking. into conference, mean right financiers at for spend to And will X them this very sheer I about XXX XX% bet climate days And head and you're -- headwinds spin. RNG. the this something had drones, capture coffee the I'd is carbon clear Conference. isn't at that are But and of Bonava toward there that's something Milton were they okay, of That nuclear the with change of was of sustainable a this smart was different amount pouring continue it some the talk I and I was to sessions, and just of group make hydrogen biogas money Exactly. fuels your couple the world and it's there days. sustainability. with and And picture But that more and lower with and looking From moment. this is carbon a do cups delivering march mean

Robert Vreeland

possible, companies think get I I at really… and sign Yes. and just great that’s market to looking supply heard methane of looking is of about which the capture. the I even and out out a And there Andrew, methane view are expanding as reach that just I at there toward of the mean kind ways Bob capture also much added as Like

Andrew Littlefair

hear we I other than these really carbon because substantially are we reductions the aren't would we doing and reductions confidence I them that of a required can we there that we're where technologies are. at great what price to about say any and and the a some talking going me are deliver others. can of to do are kind less where some that's for the is about -- gives and develop be mean, carbon level where others It And and the of you -- where frankly, -- it of deploy in

solution. So we really stick because just attractive to it, got a we've Eric,

Manav Gupta

and to how with turn RNG how quick at A Perfectly. over you I’ll CNG build out that. the other it the stations, obviously, some with play hydrogen are RNG, things are ships and but also lower ships pure carbon and Climate. you else looking looking most like so mean, know, you’re doing as is you initiatives, to you’re stuff -- looking fuel name name hydrogen CLE thing there, I very today stations. are off RNG And fueling besides progressing within fuels as far other for

Andrew Littlefair

albeit ship ship deal mean, we're signed the I small, of But proud on side. got ships first that coming That we Canal Well, the a are we've They've ship here developed. with West Pasha. the their second of leader completed, is shortly. Coast, -- through on the out right? the the being Panama

that that on aren't and to million is -- gallons. uses So that ship. each ship begin LNG And those Hawaii out to back X.X that's for fuel we'll familiar, particular that

how feeling come on. It happening could But that a be for course. and It's Angeles. well limit to ships our Port there's just of world, and we quickly candidly, with we'll Los significant it's of around Manav, fits much in these plant, So supply the us. there how the

one about where still my we so railroads, at play. the the CEO back where I sense by for would us being lot this the for Tier that I I the this to LNG railroads. it is think good to fact fuel in makes an that be it's locomotives. was dual would told would you the of think certainly LNG play. time is oil, and price that, of think, of come Manav, convert the friends -- feel And And $XX X still SF a hey, into sense makes begin

now, the Here, but be we heard in think were them that's helped with a sit to I in from leader huge at open now, much We right $XXX. testing, I still haven't We that. opportunity. SF the the track doing for permitting that, that. cleaner the Railway receive you'd putting but RNG we're tanker like into mean cars, I that gas on LNG not Federal industry fuels -- the much Administration natural on and a credit that's even

So back We learning are it Manav, hydrogen. projects. third bid makes hydrogen it. on point. into play some and -- property hydrogen the the sense. next I transit come at market could We're huge that still then think just second doing we one a is the that

station it, even we I one have to under electrons mean, can We like electricity. for we I'm those. know, -- you to look, through have still the a As see I use notion as RNG go RNG that you learn that construction. we on for as

talk in position place the the have lowest fuel carbon people what of nationwide like where drop I a early is I a in chop those -- fueling that at hydrogen very, RNG vision do Someday, for of look but There's see view. to lot system our hydrogen the delivery with plant... ready with on the when when stand wood network as at that me about a we nationwide that. in we stages the from pathway And or in a puts And -- to hydrogen. today my We're stations fueling, again, mean I costs of that's fuel very that's associated that. daunting.

Operator

Our next Molchanov, question comes Raymond James. from Pavel

Pavel Molchanov

commodity on the touched dimension You of the cost business.

cost to effort and the steel, extent which how on facilities, construction talk seeing labor, RNG other inputs you're that? In the can you terms you're managing some inflation and of all the the about of

Andrew Littlefair

Yes, question. Pavel, good

goes stabilized the this seen year. We we've think We a seen maybe would bit at say, I a over last it's quarter, have it. it in last point. it, I guess little

about it mean, say steel fabrications, XX% concrete. I'd uptick a I So was cement,

it. saw we So

going the our now have in with right haven't, current bidding to on We our that's contractors That and stabilized. folks. development seems

had just that morning. In on a fact, meeting we this

kind increase We not have of didn't -- in goodness -- I hasn't down haven't the been gone gone that mean abated. has up to but to XX% seems it anymore. seeing yet, it's that

off. that since into Pavel that And were level I able we starting to stages, we're those say, deal. the we a that's original this, early see were view costs would maybe capture of in our So to

we're projects. those mean going down going unpleasantly that all projects. upside getting surprised say we're to I let's of be on not So just on those and because just

we and though, but common I'm would But in -- in. XX-day go seen have constraints. we gears some a you have other in work we've kind think that's -- I'd switch really The -- this have components, chain got supply sort the as pushed drag I electrical chain. longer, thing, components supply optimist. on are some we've we of chain. back and some some seen on particularly And of some sort of seen push out everybody stress question some seen to is your the that it is XX-, put supply of out

our; of that lot build think out. seen stuff. I to we that's on get going sorted And even a we've

of building these stations we're Amazon a right all bunch So, on now. and

with lead times switchgear. to suppliers pushing extension into XXX-day guess that started a XX on days. and seeing we are came what, We different Well,

fine. is So XX days

think so of that out. But sorted will get seen we've it. I some And

Pavel Molchanov

right. All

wave below about airport shuttles we're mix country. impact that of sales on still point, this Omicron Is since is to the the pre-Covid that that's your clear. right, levels? it At kind the this is say talked QX aviation X portion of first totally You the and years, only volume in lockdowns the fair

Andrew Littlefair

that are I back week-to-week we're be or think in we're where would would to maybe at exactly safe if to to been still say. it we say is able really negligible. or May, And I X% mean, something, And up I we're that look But having anything. pre-COVID. not,

Pavel don't it's long serve building say from me up back. little macro on here, there. another And should as it you as I'd be So

Robert Vreeland

It’s close. very

Andrew Littlefair

fuel me you the Can you about credit, alternative didn't ask of Pavel, question. tax that kind disappointed answer and go and I me. ahead

Pavel Molchanov

next Can that perspective on time mention that that? you on --

Andrew Littlefair

Yes.

and some Let me bit up the friends little give on just thing. of our aisle to talked of there that because on a was I've both you sides I

So kind it's of interesting.

So were it just it least was the we the our years, we been on So the budget, told though going add X into credit, there at even was you better. fuel in all hadn't the to that worked for in 'XX embedded not extended And side. was build there, reason alternative it house because of only right? tax back it in

-- to see support. that's continue So bipartisan we

fully we really crowd where it the up in the haven't at side And the unleashed House up majority they right as moment know, really alternatives. back up, this and to you Now the stand is haven't hasn't better. Senate build given with come leadership do, given on until

Senior There's right Mansion BBB. support one group rum that Makowski, expectation green by kind generally of as kind energy, considered look at skinny the that led and a a Center now of actually energy enjoy is components other components, down ours there and most modifications believe, to in the some of to the the Now, would blacken BBB to be the ones to are that but hard well. be

Senator build with does back a effort to better. try happen sort of So to keep move anything on, Mansions your skinny eye down

the the of the Now that fourth is election. supporters election, both what the of on have and and told even it -- from at we wait Senate the a of with so bit, third some and long-time maybe happens quarters, been same time, by the outside kind what side happens we've our to likely on depending little here in after

likely where have that's to bill credit end to up tax omnibus being tax be would in the So place, there's fuel extenders tax be. case, would and an other alternative likely titles where in which

it recess. support. So a will even while bipartisan happen after on believe is we're it's to have maybe elections probably, going Pavel, going that, And that course, until of something to you not then, it. guess enjoys the to I happen, wouldn't And summer continue that

may a then lame not see in election. often after little a be until stuff And move; we will have when we're So so that going that's the to duck you patient. the

Pavel Molchanov

Appreciate sure. for Yes, it.

Andrew Littlefair

we're to But to I reason over not that's member, I side; the happen. going to believe. haven't that putting no way, really had have the -- mean one by that's

it so So far. I'm feeling about good

Operator

next [ph]. Our from comes Blair question Matt

Unidentified Analyst

maybe be Andrew, And of with I swine you're the are projects was to general differences just and intrigued the just really versus going that costs, by and things about size, each investing overall that project space. CI understanding opportunities in overall contrast average really, of talk your you scores RNG mention terms unique. of each capital Could these different in. like the swine dairy returns and in

Andrew Littlefair

Okay.

for ratio. The Now test not mean swine, you're to pretty on here. period, turn right? faint gestation over. me of litters, I much have it's different the fascinating, you I the mean, going so is things these swine So the kill I'm dairy. good heart.

period X produce farm mean, the there's dark of XXX,XXX or I X the there on, like working in kind operation, the in months pig and we're literally a So that they is pigs.

lower. is CI lower, the score it So

the it been to they of what waste I their think they've handling kind just how and -- on do the and how that it eat. of they has of collect kind that mostly process sheer magnitude

a on it's the it, a little swine. more let's So it bit put to lot

some come play it’s some but carbon but there a little lot don’t swine of at there’s low enjoy enjoy too, and point, fuel now. at looking don’t different. I operators, they lot and a big at don’t the I very they think of chickens inclusion Now, point, low them. of they we’re into so carbon a they credit, some will are country, should in the And the an think right fuels. probably The

Unidentified Analyst

versus both QX levels, was as of And in volumes. than drop. drop really non-R&D as fact, more absolute your just percentage in the in then your off And the it even R&D Great. volumes number terms came well the

X%? you you understand off hit, get the volumes getting you about When So of slower shift I talk more could and demand XX% you off could that? periods do Just only R&D hoping how volumes these your Are R&D really your quarter-over-quarter do that. come mix and pull have hoping on your constrained non-R&D to come was into volumes volumes? ability to

Robert Vreeland

Yes.

and the that in and RNG the I with referring we’ve there Matthew, really think recovery seeing somewhat big sell. the the been of slower what transit you’re take to have we is what transit particularly you’re -- world, Omicron dynamic customers in that some kind that and --

Andrew Littlefair

AMT, right.

Robert Vreeland

absolutely. Yes,

And to do you driver to that. that sort of So that probably of I the you was have -- country have pathways the and bigger thing. because then whole have mean throughout

Andrew Littlefair

from in of if So me X.X wrong, is wasn't million downtick it gallons... the correct I'm was quarter LAMTA their Bob,

Unidentified Analyst

At They're least, that's all. huge. huge. Yes, they're

yes, that So would…

Andrew Littlefair

that's -- part of what Matt That's what said.

Robert Vreeland

to and it, then -- I it. nothing of has have because there’s you places it mean, put big mean That’s come you’ve to that’s got to Matthew. it. that I through a chunk I be on able also demand to have mean, to other

automatically place. not don’t the gets spread it So with little -- tricky you because over there RNG all it’s a

Operator

Tuohy Shere, question next comes Craig Our from Brothers.

Craig Shere

been be FERC-regulated little just about cost a justified some some LCFS. a diesel and supply if gets me is something diesel, if and like of both be system. for not show creating delivered, true? R&D pathway have a floor. my had and physically into and the Is transport that a may I'm we so have wrong, could And off, of opportunity to come One renewable not thing of natural pipeline protection that and get the of heard bit LCFS I the covered. enough, questions low correct that lot it ask not wanted A has I on upside just downside that renewable to

Andrew Littlefair

True.

liquid. It's into the It's to right, molecule. tank got You're Craig. go

Craig Shere

noting? XX% on that and XX% standard understand with outs call locales I other then, from ins could last emission what standards hearing your LCFS CARB around systems. And we upside the are states that's new the and major maybe opportunity, at reduction. the and changed going worth anything But for Has all to country you think since have

Andrew Littlefair

guess place call, study of X the We in trouble vote. and are with my vote colorful Mexico. where kind let's through, of standard And last the legislative X of fuel or say, process. kind Mexico -- it close almost is us. since of came playing New kind around New states that we carbon in going I of the a guess there's XX It's I had low get on the kind almost passed legislator night of sort York.

redone and current overnight. that's I from likely of we're team the looking know something last of clear They her fuel probably is And California. get begins so think was it standard. York, at being that Look, at of since over is national be that that low And would re-upped, maybe of Craig, betraying the it. in one kind kind with how we as that sort conversation. RF low-carbon This a anything administrator public, looked up there I I and the should sort what -- they carbon to I had any really in at it's situation at, think conversation confidence think complicated. didn't go I year that's ended charge a I New through. it's next think I this happen we standard fuel to working is kind this of and to EPA held sunsets we they the had don't conversation to happening. get [indiscernible] what had be look don't in as a of learned And and it might talked, acting the say

and I be think lot more the X-year even reason to are while a these you're industrial is states at I will look of that's a And of to motoring at Craig, a I interest these a easy, lot right? -- that, likely public lot not mentioned type that think things. the and be on done think I work at think because -- there's the this, EPA. thing I legislative putting there's interests here, of level

New them last fact, that, good but and didn't for fit got that reason right guess I right? so forget "Oh, been support, passes of didn't that going do to to those down, have no, support, other her of have things to York of let's them if seem have into couple particular, news This of in the And states none me has it. them now. whatever if any just have I of overwhelming worried there's in We're on very been governor passage a sort not None budget. this. make have close the of governor about it pulled said, she's But

as see is a a time, think but a long So, program I probably California ahead multiyear. process. by this this was I multiyear

Operator

comes Gabelman, next Our Jason from Cowen. question

Jason Gabelman

just I you wanted so on far. mentioned a few that the clarify call numbers to

on mentioned last upstream call? projects capital involved so, projects the much then stations construction what with that? forecast I the you side, if gallons R&D board new You production with the And what is were How that. side, of would then you line in guess, And in was, mentioned X and XX XX million fueling on And end by and the the those you because on Day. does 'XX there XX XXXX. of volume R&D that XX at get and XXXX. kind million the It be

Andrew Littlefair

room casually them track. be projects dairy tried we're is haven't third maybe second see on me see me years on X well, can But development that about on party question, volumes bringing sitting somebody -- I that's that the of to help that have dairy in -- I let and don't any I late on that say it. me call let this your have talked So if we but to our what is too here kind I say looking at do I pros with of right? just Let But that. had Jason, come and because forward. that, the say, to on handy. can going reason all up we

million a is the XX here track it's is on mean, projects, working of thought it I guys the my we $XX The ahead it's But on down of one that. million, where so of $X be. So moving those of kind XX would of will projects far, out number and gallons. million of come

Jason Gabelman

it. Got

Okay.

Andrew Littlefair

Now which there was... the part another question, was of

Robert Vreeland

Okay.

Andrew Littlefair

I'm up. glad you brought that

So XX.

related we projects, fueling. when fueling talk So about all they are to

be a may like them a on particular license that. and of a I'm doubling at of compression using Some station little

XXX that are lot Amazon that a projects, is it. them has of fueling trucks on Some parking for

canopy, not little of fueling things in majority there beautiful of kind for discrete be them they're stations pieces okay? are. there. XX don't XX different little all but of bit projects with are fleets, with all So So But of thinking a significant freestanding there's the But of kind projects. them are,

Now when said roam than ever -- number publicly I I've don't number related think we used the 'XX I XX you updated Amazon. haven't is And was use different that of to is number 'XX, that. of our some some customers, it for own some This of $XX be those for and Amazon. would our is it million for and it to addition include in accounts, a XX

can't But well, million. of don’t that and that's say, you CapEx the our necessarily of $XX kind CapEx we’ve million so given And what with And $XX we the publicly I that’s said associated know year. just that. Xx is for

Robert Vreeland

a The lot of year, that... which

Andrew Littlefair

pipeline, highway a pipeline. just would probably And it of to either. those I year. we the like We XX ‘XX about projects completed I won’t never call were in was had pitot this. the the Js XX say as back, the that building nation Flying it carpet in We building get XXXX, in ‘XX, we’re But go this all year. really it’s at construction say where grow XX We safe will the XX the only when

it’s good. So -- that's

transit So of There's there. a refuse building in Amazon there properties for there. customers, there there's properties properties we're in are our bunch and in

Operator

Our with comes Evercore. next [ph] from question Todd

Unidentified Analyst

I that possibility. Canada I'm how energy. whether has for be kind Canadian a Just the of near-term that just been was an you could curious just at level some expansion everything be about and opportunity the talk view in LCFS answered. that clean of wondering in market would federal

Andrew Littlefair

I think actually Well, Western Or Washington look, know of BC? it's I it's -- don't kind generate so. like it's state, where -- BC. there credits mean in Canada in can already, it's the I you if in [indiscernible].

Unidentified Analyst

general active That's that's -- the [ph]? going to

Andrew Littlefair

Calgary well. where those provinces look, now as don't stand some know off know. the seeing and is stations development I if that's I versus Canada, But I right one the likely see usually in of Is Quebec I fleets. in my -- exactly mean, of Well, know think else. other that of the business someplace you we're and in head, likely it don't I Canada to uptake be top that they in in

stands exactly. support but Winnipeg it this well probably I know that of know. tell thing. so of I don't exactly I'm or kind the don't kind needed something, in for And political bodes sorry, for can't you I where just

Robert Vreeland

if was curious I I on market kind little north. was dairy dairy. long-term just another for have a up the of the that more They industry guess, fragmented, expansion

of transom. know it's come on was the that So across kind if I radar, just didn't that your something

Andrew Littlefair

the know Canada. XX on XX, in if long – – over in don’t point, work our is We’ve – I Canada have all at stuff we radar. in RNG. about and ago. Columbia, the our we feel to one anything friends so we of history Canada had a up sold the there. Canadians a ever whole out meetings West. corridor the made XX, happen in bunch we over East years and and Canada British in But with We certainly West

Canada. with familiar we’re So

We have employees it. to in so close Canada, we’re

Robert Vreeland

difference diesel natural in I that general, they has as fundamental also a see even even gas. mean fossil good the of engines Canada that's that on between and just view natural just really near gas fundamental exciting, view actually diesel to you but X RNG, than -- better it I very take be if mean, the much that's to burning they on. going the cleaner

be they quite -- there seem so And to bullish.

we've got and a of good pretty in for activity Canada lot a So market feel growth. going that's on

Operator

the turn like to I our conference Andrew This question-and-answer closing back concludes remarks. session. to for would Littlefair any over

Andrew Littlefair

Well, you, for joining Thanks. quarter. those you we thank questions, and forward we and good thank look updating today, to you next and appreciate operator, you us for Right.

Operator

you now today's for has presentation. conference This concluded. attending Thank

disconnect. may You now

Clean Energy Fuels (CLNE) 6 May 222022 Q1 Earnings call transcript