Earnings call transcript Q4 2022

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Greetings and welcome to the Clean Energy Fuels Fourth Quarter 2022 Earnings Conference Call. At this time all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded.

I would now like to turn the conference over to your host, Mr. Vreeland. Robert may you begin. yoi, Thank

Robert Vreeland

you, this financial XXXX. Clean released Earlier for Thank the XX, afternoon, results December quarter Energy ending operator. and year

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

performance and statements. Several guarantee section as Clean today. after the release. date the These such could filed to information the to circumstances speak forward-looking you on but new or Risk that could the we conference as cause some regarding of the statement to in to only in not begin, intend, Before statements satisfaction from that such should, forward-looking Company in the Energy's variations a and Such we'd predict. in anticipate the statements contribute not statements materially the current detail results prospects of information uncertainties such that statements not words of of similar forward-looking forward-looking. news any contains XX-K Factors release. are this undertakes update remind are release risks, expect, absence and that mean contained date well this like factors call described of those Company's contained Words involve of their The are actual reflecting of optimism, is forward-looking publicly does the differences obligation Form no that expression plan, or believe, differ assumptions as statements supply and with this forward-looking as identify difficult

and believe in why for EPS measures be these addition non-GAAP certain results. indicative to prepared this adjusted The financial adjusted accordance a a in operating Non-GAAP results as been GAAP of are and and not to of which not should Company's reasons the figures reviewed be definition non-GAAP The management uses GAAP release in to between should be considered exclude GAAP SEC on management information, Company's a press the furnished on business and with will does non-GAAP the GAAP core Company's expenses that Company’s Form call X-K EBITDA and substitute results. provided information, is reconciliation EPS superior the or has EBITDA and directly today. comparable non-GAAP considered

President With Littlefair. that, will and call Andrew I over our Executive turn the Officer, to Chief

Andrew Littlefair

Good Well everyone and you thank thank Bob. joining you afternoon us. for

our on excellent the our expanded business and make strategy are RNG and of remains new last is more With the largest over vehicle use position. leadership half fuel quarter. RNG North of Clean gas from execution to We renewable continuing we California the in the of RNG stations investments progress transportation Energy supplier natural facilities than gas important market the In Clean natural of Energy. America. uses our

available in carbon success RNG In our XX to secure California the weighted a the minus had market. RNG which demonstrates develop RNG the lowest and strategy intensity average of XXXX, of our portfolio carbon

as carbon to the expect our continue We our intensity year. begin to product this investment gas decline producing of dairy

refuse for seeing and The increased with and of demand we’re sectors. having same as was our the the this million fourth also gallons sheet positioned quarter to XX% from XX our RNG other compared over leaving Amazon a future. positive the us expansion as XXXX. other heavy balance while is well the fuel of sold for our we trucking Clean funded on impact duty in underway ventures projects joint increase year The We a firms of strengthening growth for well of relationship last transit, which quarter

we We ended XXXX. which number up momentarily, but the was in be California’s the the performance details year. than contributor for generated than $XX financial beginning year EBTIDA quarter. our federal say expected at the results. our wins sustained came headwinds Bob let The adjusted impacted revenue or million just of adjusted more fuel get a $XXX at will about of million of experienced few part the carbon into standard of EBITDA quarter million me Our QX, we $XX environmental prices latter it program. XXXX the for LCFS that was more lower our that acknowledge credits to in this to program the biggest We of lower low

Competition too the The just building new year and for distribution projected. for are Amazon near approvals prices prime and with permitting over quarter. stations country that initial completion. the in much stations LCFS the credit we decline behind almost overcome Also, we centers, than of the fourth been real course it of timeline to was XX% our estate has entitlements several slower for around the the worldwide

the term. construction. attractive infrastructure, carbon more confident to to XXXX, our year remain We low continue you future. in our we will over RNG to to are over and that dairy XX station supply hindered we’re that ago environmental we issues previously the credit generate our plans believe on a our turned situation of the the us we laid business, control expand and the projects having investments should the today But believe of corner environmental fueling of the several believe performing regulatory the prices mentioned, And Also, We flowing pleased will we credit out have the places. slowed way pressure I for and lows with on continue the particularly credit underway. as see medium we we improve the to that at over making on be returns we we’re

and million TotalEnergies BP. quarter. partners, position This additional Riverstone to step with and to we future growth another healthy And as last with loan balance continue us build keep we fueling facilities secured $XXX for Credit should Partners our sustainability sheet RNG stations our link

after This end projects station joint At expanding and in by infrastructure $XXX inception, Production $XXX RNG since of contributing over their our million million during into had we the ventures XXXX. funding and additional fueling XXXX, XX nearly cash our is investments.

production, RNG it built new Rio which the few a annually. pipeline. gallons ultra-low be manure as carbon long at ago, will methane from Panhandle, produced injected breaking Texas MMbtus, Del cows a that capacity fuel into in dairy flow to million into in participated stations ago, is I rate Clean at is That being ultimately the biogas a ground of the that Energy's the of Clean dairy digester natural up. captured Rio's I'm XXXX of seem as to in ground Del from by renewable the X.X today Speaking gas XXX,XXX first doesn't announce now translating pleased Energy weeks

in existing we the that RNG a existing receive We’ve RNG Engineering are is pleased with lowest that viewing No RNG dairy RNG some our Remember, new the next other when produced and the agricultural Iowa, with Idaho, intensity the greatest facilities CI customers good years, scores our our in of to right beauty fueling infrastructure. other fuel South underway drops close of Dakota. that the on Minnesota, comes the two construction dairies also begun will carbon alternative of made projects see. pipelines and and then to Overall, negative number this into has over progress scores at another supply three progress produce these solution for five generate we at at begin sites. facilities. digesters credits. the into And available

I On with the previously new Amazon. RNG opened demand agreement as our announced as we stations side, mentioned, part of

in for stations and but that the through from allowing with There around only variety public in of opening fueling are our for has will a Clean that existing next with stations In RNG. added another Energy the been become heavy schedule located states of four in volume. station Amazon of are fleet already centers, few year. our for have One Amazon to have months, largest built new XX a All strategically purpose rest addition stations companies access few Odd this trucks, network. that to bi-monthly fleets months the robust been fuel supporting the these are handful be to also and distribution stations have has a open been of duty

accessible a excited to hits infrastructure pushed installed, lot the RNG new commercial their the and Cummins will reduction introduction This engine charging natural and reach as year, of gas electric required engines, that heavy accelerate get of fleets emissions next are gas continues to generation natural truck our goals out. market with quicker. the when these XX-liter stations fleets will ability the We Cummins be trucks, fueling open particularly next already for combined duty infrastructure,

signed our fleet fourth a I in that of of customer one the RNG quarter, of the Diego I for MTS, XXX San for which the as buses. its in million mention wanted added XX Before fuel to we largest gallons agencies contract transit close, country

the agency for bus during an We also RNG RNG in will million be fleet. country, transit annually renewed the LA contract Metro QX of with them the gallons XX supplying and largest

today. RNG. leadership And feedstock Our transportation an as Republic alternatives. distribution both Athens for RNG relationships We a other natural position dairy, Thank clean direct one call with renewable Services, of stations Burrtec our production, fuel, calm, over the largest with and growing additional for contracts with be now I'll owners for the well continues ultra Services. waste customers future turn your optimistic the as and to expand the refuse new the as you of gas during of quickly as of quarter as to for Bob. time developers and ever If our hand remain about in

Robert Vreeland

you, Thank everyone. good to Andrew, and afternoon

revenue, and of $XX million with $XXX As gap revenues reported million. loss of million versus XXXX and XXXX in million, loss $XXX of today, finished a we gap a $XX

adjusted of million of last EBITA our earnouts assets which million from $X versus RNG million was last $XX XXXX adjusted for sale in Our year, year to included $XX BP.

the approximately million non-GAAP income $X of million adjusted XXXX. net for of year net we income an non-GAAP XXXX in versus approximately basis, On reported $X

in estimate our timing associated EBITDA in in our view or to believe, volume approximately temporary our our builds, of our permanent adjusted variances SG&A Although spending, short million, nature. estimates systemic terms were and of in nothing we and station $XX of fell related with nature, in the

a the thought prices credit the marketplace remained than, fourth still but quarter at lowest little recently, have around gone up additional example, be of as rebound throughout later quarter. could the of so hitting LCFS than that prices some thought is moving there actually For we LCFS kind fourth in anticipated, during we as information prices and up we Credit the program. level year their LCFS the the

for also of personnel month adding market. volumes the December growth to of We accommodate California, gas pushed was quarter And to increasing spending our our natural in some and $X a which our the of delays saw out success openings equivalent largest the gallon double had price due in fourth SG&A which largely station in RNG really our in activities. own increased we

our volume this here as We our in revenues. third to Looking our change much ahead, today, to on believe well, XXXX volumes. credit with filed reminder related are we’re And revenue into our like we go opening a proceed made from where Form-XXK And volume Amazon, volumes service format disclosures I'll presentation, we’ve mean, separated volumes projects and stations and on ahead we upsides I have our just to closer given new RNG continue more enhanced take our the our forward, support moment. revenue presented in of where O&M tailwinds and dairy here Act that tables to our service we we our in and product a quarter with I'd in inflation the in prices us. we the moment around Reduction fuel a the XX-Q today. that, our filing, outlook knowing

quarters format So we're our of In new had was new back accommodating presentation with posted the you an revenue there. of today we XXXX presentation format, to that that, and visibility Investor some to that I for Relations four XXXX. the that so wanted questions company on of have volume provides quarters table first we the all on posted website in that inform updated this

the of of lower closer a ago. million of look revenue XXXX, to were credit fourth with prices some XXXX, prices compared contributed with quarter a offsetting increases. fourth increase in XXXX taking at construction station $XX.X $XXX.X million, higher along those the XXXX So volumes and now our environmental in quarter revenues to the over sales fuel the Higher the year

in quarter basis, fourth loss of reported $XX.X quarter of GAAP net income the $XX million to of of million GAAP of of net This the income the XXXX. $X We fourth for net the dividend in a fourth quarter compared a for million $X.X non-GAAP XXXX. in that's adjusted $XX.X adjusted loss $X.X and adjusted On million of EBITA was was compares fourth and the XXXX. million quarter a XXXX to of XXXX non-GAAP net non-GAAP adjust

our quarter, spending margins quarter business on despite in the were however, our was lower For the service of overall XXXX fourth in the versus higher growing higher however, product credit XXXX. RNG our slightly XXXX and prices,

As expected million comparing the planned periods. out and mentioned, $X when as I earn and XXXX as approximately the of from benefited well, income two

finished Andrew raise noted the of million which December. cash proceeds from a that in we with and $XXX year approximately investments $XXX debt in million included

of off at the equipment million. approximately paid $XX NG Advantage part that financing, debt As we of financing

had and partners contributed of December million activities of we XXXX as we RNG we Cash joint was million equipment provided up was where contributed with operating TotalEnergies that's operating had XX.X by supply $XX.X for our -- purchases XXXX have purchases. And into property end was These and $XXX $XX.X million our and both XXXX Also, of cash the flow million. against XX, BP. are million. equipment from we property had and $XX.X ventures

So cash front. nice on the

our provide we We've looking guidance, we'll here. release. in provided our normally press which outlook annual annual Now, XXXX at do

to a EBITDA adjusted our of a $XXX to million net a GAAP for of $XX range which million. range reconciled million is loss For of $XXX of $XX to outlook million,

projected of XXXX Amazon increase an be GAAP $XXX is our stations. million incentive loss, Amazon more net the these On which That's note net incentive million. $XX as revenue. and in with we Revenues volume around a around GAAP are charge to increase you'll for large complete That's the in estimated charges. associated Warrant

to in fuel range. that of RNG, Our growth And reflects XX% same continued XXXX outlook double grow volume that is to of much digit XX%. is the also in which range projected

the Service to in mid-single be volumes growth range. is digit expected

we from fourth environmental that what much really outlook XXXX credit in prices saw Our of reflects don't the quarter rebound XXXX. starting and

those in quarter. know, we have been lower they were as So, the fourth

we're And XXXX, on seeing that. continuing contemplates of in so our that kind outlook and

million that is at will spend in from of our around $XX SG&A XXXX up about per quarter, Our quarter, to X we’ve kind added million stock increase fourth of as the personnel bit the XXXX compensation and to levels million but slightly higher XXXX. is a end little which X out versus

that’s the operations, costs to contribute around million on million $XX more cash CapEx estimating And exercise, million supply from spend at pipeline Energy. for interest potential our it, line We also And, RNG and could already that’s $XXX reflecting $XX core million. We’re really added bring in have it Clean doesn’t we’ve of on our what and around estimated sight $XX $XX higher. ventures, we that top business of that good flow mostly and million may joint of of is that’s be contributed. the up but this frankly, to into

feel volume the view very for forward of and forthcoming Clearly But we possibilities and beginning the frankly and RNG. continued Cummins the XXXX. credit engine growth, Act, about of have end the good the with the very from environment, upside Reduction pricing changed industry inflation of of low inflation volatility the just from this carbon continued and the litre launch XX demand fuel tailwind the

that open to the questions. With call operator, please

Operator

Please UBS. be Gupta you. [Operator comes Thank question question-and-answer we’ll time, session. conducting proceed Instructions] with first Our from question. your At Manav a this with

Manav Gupta

I the could guys. dairies call you just afternoon, progress. mentioned first you in Good XX to on want if earlier

half by you those little help us the or let online of should development In end could are know granular pace be more how be what many of here, if they? us year-end? So by first of you could of a stage development understand if and

looks in And contribution to dairies question for flat. to I’m is EBITDA the here dairies the too is accounting why trying get But really is it Bob the like not bigger from are progress. XXXX. relatively That’s in you’re these guidance of much

So if also. about you could that talk

Robert Vreeland

Correct.

address that. I'll Okay,

we kind a year minimal, even we’ve, would we actually, XXXX I’ve contribution. contemplated minimal And correct. ago, You're be of

in pathway there’s when to whole, which the time and, be to recognition, do projects. will of and has gas with certification, number meaningful flowing flowing revenue really we can revenue. a we gas But get do So between and

then So, you’re just, not kind as we XXXX you inflation there how of see a could And of XXXX, into Act And, contributions that for sure, contribution to we’ll much there there. there’s and and shakes start correct, in and out XXXX. go get the into XXXX. Reduction happen

will, of, So as we felt as say, kind that’s forecast the being of why, the, of we had flat, pathway our that also but more there fourth of a but rim, then big there, going part deal. really the you if is didn’t the credit in well, quarter, I’ve kind forward, We information meaningful. price very would into view, a the be that materialize about, just California, knew particularly also in information

market kind stayed of So the flat.

to not when try will that kind going around. turn to We’re that, of that, say predict exactly

know on we will. We’re that it more bullish believe it that and

we’re, credit of flatness assuming, because we’re around. prices just But, the fairly a recent stick of kind big that’s part

On the dairies, yes.

in going our commercial the very the on are not get we’ve or delays that, some we’ll nine industry But it there, start recognized exciting on, equipment pretty mean, I On experienced which for of lot execution a to think again, wells, and injecting dairies, sure. but was get it’s, seeing the finally think and pipeline just the we’ll maybe the at relative of into flowing like dairies. but, probably of look things folks seven, that’s you’re gas, mindful constructing those one’s those the Well, really that, seeing one gas But already we’ll, long to I which in are five operational absolutely. time, eight are we’ve and execution a well. these, And number okay, of is four EBITDA. on going we’re XXXX. our also is of is of I a that

So running that’s those of the one getting well as keys as things

Manav Gupta

if remember wrong. credit volumes have budget, I’m is IRA, put were which quick is, the if the correctly, I But RND Act follow And analyst between here to know and direct a here and to would take with you it Bob I develop day, up come now. RNG you into was Inflation think my Reduction there’s gallon full I’m what with and had out a XX% the you targeting. last this ITC wondering X.X what to X.X, offering, pay, year let me at somewhere that

So final that in to offering your by XX%? you could does fully, that about mind, your RNG XX% need number drop that? CapEx you does develop If it talk

Robert Vreeland

I the ITC capital our Well, reduce will course, they by think of will XX%. will, Manav, apply,

Now, real. in to that's but flow I after that tends no, year a mean,

to And load projects, the That a capital scope qualify. year about right. so talked We of that’s our XXX ago, believe that to holds. And we you’re we will still of own equity, number. our projects the equity, number a still lighten the when good at, will get it is million projects, gallons well, roughly looked XX%, by RNG

we even focused lost back of reduction we of try We here. quickly. it, so projects haven’t if any we of work to more have what, enthusiasm. any, lot money There, feel more projects what which, all the There’s look XX of more price, be to ago, a There’s, come. the months you a opportunities, with the are a XX lot there’s of that stay credit to we've haven’t and done, we about lost debt have projects, And to the robust on underway, more of still good we to raised. there’s we be We there move be through organized. pipeline

that’s available the have We carbon commercially today world. the in fuel lowest

available, folks are projecting to trying But sorts a levels be talk feel that nation’s might at be a of a know all can people we about disseminated the it the used today work. compare there’s technologies look and that and And different used that used that there are of, and most of policy, other and how when how be in should regulatory it we to we fuel that lot that carbon right we can we is that fuel way be very speaking pipelines low fuel, lot And now, positioned. to have micromanage market the want well now. a will what really and

And more there’s you’ll come that see be So to on. done.

that because be don’t surprised, move if see And in haven’t do that. year talked that things so lost ago, all about we any continue to you us, a along we interest pathway to

Manav Gupta

so you for Thank much that.

Operator

with your Our next is with Lake Street question. Brown from Capital question proceed Rob Markets. Please

Rob Brown

Hi, Bob. Andrew and

XXX was volume to wanted check, revenue say total? the fuel or of double you revenue Just that year, next the did million

Robert Vreeland

put $XX about of total. out it That’s in, was just, net net million there. That non-cash That’s incentives. of

Rob Brown

you year? maybe, of station you And this Kind you. those get still then I Yes. just stations I to color seeing permitting that worked of Are on plan through? uncertainty the the know, some Amazon where’s of things How Thank some be getting do And yes. many the is on open? started sort sort say, activity. of Or guess, you delays?

Robert Vreeland

They Rob, with we've friends announced. don't much too talking what about we announced there. to me -- my I previously what we've want be have -- careful

an So would XX for that them. we announcement made develop stations we

-- we So can this slice out. built those. maybe and dice -- X number all of opened We we've and build you

in the part, assume will production come of in can you most the on that, remainder So XXXX. that for

the in end half will the the toward those will October, year, be But lot first and stages November So the various will of underway a -- some come we've be got finished on year. right there time of in of line. now of them right half

important So that's for really us.

we station built What stops I year then one not next And year. we've a -- is our think the it's year, XXX in us, you we've close to number. new built like different. -- XX built for We've is seen, remember, Rob, right. one truck projects. history, actually In building -- We we was Rob, stations

stops distribution is from in challenging around you're Greenfield building little So has us. sought locations, the truck been new not right? highly What a centers. stations scratch So to building and took is called what's

the those then really coordination and permitting, who a anything built while. Amazon, is So you entitlement haven't with entitlements of more, in the locating the the

is from to in process the that months can and The year. be entitlement country daunting, a X anywhere

quite have months. always of on much X what X been seen, not is a -- lot a construction of different than part permitting X And the for working that's while. then we So anything now [Indiscernible] these the we've to which projects is it we've

lot and So done that more continue be we'll this year, hope next we well. to a just on as year

Rob Brown

Okay, thank it turn you. I’ll over.

Operator

question question. is with Please Eric next your Our from Stine Craig-Hallum. with proceed

Eric Stine

Hi Andrew, hi Bob.

Andrew Littlefair

Eric. Hey,

Eric Stine

Hey, coming the XXXX guide. so EBITDA just back to

there, of looking and modest So for that. I know growth part

you’ve little way So areas got got higher a side, you’ve fair one? you’re RNG as bit, and is still to But plants, I got more conservative I characterize guess you’re OpEx. a it guess, pushed you’ve down where that the credit on some well. optimistic

you natural then And California that first the believe, gas even the maybe year. secondly, the know it throughout of spike I more linearity can about the pronounced in talk I in just was, quarter.

the So, the expect then for remainder it for year? of plays how year? it, how out do to maybe you And start the

Andrew Littlefair

were of But you last EBITDA. getting to. Look you’re credit that to what, all me guiding about the, you you here. that that in where EBITDA But prices is, why you it why the, we’re if second. when went assigning of back year, and million Rob, XX here have we’re when a XX.X and assigning kill may on the

XX%. We the XX% think is trying skis talking not curve, that going to happen California to fact increasing trying remain be by bullish. to the obligation in responsible Look, on that’s what’s to get over projecting about our LCFS. the So project, increase. huge a now We we’re

when gets that’ll that that pressure on LCFS believe done, We put finally prices.

workshop fact, is In back price you LCFS few when from just that up. happened days the go ago, a the

year. to was back thought happen happen, that supposed to November actually last we So was supposed in

So it happened now.

going might on XX, with that projects, in that happen the me RNG now medium always to would Bob, So, LCFS. yet, the it’s the are the come probably production pick we XX prices. And the to fact we’re, as credit bullish the in because certainly are contribute mildly up on always, do we’re here those XX, knew but we on really on and not not you with we what’s that that. term, more most

Robert Vreeland

about it’s No, I there. I Yes, linearity you versus. agree giving asked mean, Eric guidance. the versus

Eric Stine

QX. It’s

Andrew Littlefair

last here's year bit say little would a -- well, I But we're linearity. bode exactly. Yes, of talking didn't about Look, well it. that too without

say to the a quarter. that about all -- going between going little to we just done I'm talk QX, then So not there's slower a completing where as kind years March, stations, bit And a bit similarity little of here thing. historically, they're we've get of of in

that volumes throughout the into plays So increasing year.

interesting. with natural in And you have in gas that I Eric, December. did I'll there. issue gas Like huge correct it put out little the prices caveat doubled January. California a prices are more, is noted natural

went $XX from So XX went $X. like they then from about to to they and $X and that's end and And end $XX.

like may out year that. good a have we So I painful. on do fair about that's was it. news doubt manage that's and it. And -- But necessarily that is from January that's it kind mean kind be try I to The of There's from to of it's I impact mean all. around that there mind usual, get guidance boggling. we're some going of see no amount to change we didn't recover of part at -- how the things. and some that something

largest But of thought in third the 'XX. gas some of California, fourth quarter the when of our way market kind out third just we high was it's again, that's quarter. then something And the price types of doubles. was those from -- had in we quarter things that it we the thought that -- had we the the have and the we we of that optimistic woods, that were view Frankly, part are out headwinds we of

temporary So, all volatility. of that is

mean, haul. got this we're the and solution projects And I on long in for out our this long the being So built view and so fuel. is we've

Eric Stine

maybe turning RNG. And helpful. to that's just it, Got the

you’ve I JVs you. before. gallons the provided Just ultimately project. you and see then projects the it know maybe an But per you update. as average maybe out playing see, Thank number of the

Andrew Littlefair

these Eric, to tend the I'm These in million projects projects X X.X%. to be tend tend X.X be gallons the to of be range dairies sorry. oh, Eric, million to

right one Now $X Idaho projects, It's underway we number. really let's $X just now. good have big is say a million But in million.

could got you many the the still see market come and about scope is we the more projects we've of that big. So are size on, very which excited

won't you'll larger, you'll what have is to XX,XXX but you as cow or Eric, begin have, these. many dairies cluster Now

dozens our in of still we there's think, in And projects pipeline. are right that now, XX, out so And and there. have fact, dozens I

I construction another discussed, we've with. So treating not paper talking the put we've XX not are we're and sort that under and ones underway. to the of of XX We've of that got --

of So said out I you in sort what think last -- always you'd before XX be realized for that before laid XX we projects year. this to is we the we've

Eric Stine

Okay, thank you.

Operator

is Matthew proceed Blair next Holt. with Our question Please your Tudor question. Pickering with from

Matthew Blair

thanks Hey Bob, for my good taking afternoon, Andrew and question.

if So, that I prices. you’re that, at profitability look And more like credit a would were you XXXX XXXX your XX point million. providing $XXX saying were you heard of current think at million guide correctly, I one

assumption of, I what million, you that originally through that coming XXXX $XX. an walk could and the then lower through So in XXXX $XXX guess the of would that envisioned? between original delta you guide be volumes I just mean, than

Robert Vreeland

just mean we're at I extremely yes, January I place. credit a different -- XXXX, the different the say that. little in and Look were of back world to were bit world a little would a we beginning. bit was high we Matt, prices little there's, a than of in

is mean, just -- assumption for think lion's prices, huge. share I an it so on the simply credit that's sure, And that I of

environment as than to there, The kind give and changes, plans a little say, gap your you what other nothing of a there other going change. is I'm and here notable little

usual, volumes come it's of It related timing of For really is kind the biggest really us, I feel piece. when as that is. on the

They not days. our for of them that adoption at we And so it and up it's When will stations -- buying going and building the moving out and there's these these -- always when and if, volume. open all were we're through there. it's a look, how move varies. the getting engaged show trucks to they're the purpose-built trying And because for of as the things station, stations and need get when fueling constantly because cycle we're stations, just up all customers

as the starts open, flowing. soon as fuel they So

kind get existing volume we of as So just… that stations that's I mean, it's at well. volume most opening how I it's But our part. the follows you're it. -- more mean, stations for

Andrew Littlefair

I think, lot go it and were Matthew, just that together, back piece kind at of giving probably, to look to if and you it look was try obviously We a production, more close these course, back today of you of probably to little XXX. XX longer It’s it’s then, right. on timing to projects or year we you bit realized come projects, the to on ago. a timing, take gets thought at

Matthew Blair

Okay.

Andrew Littlefair

didn't insure and down but not and -- other here, in is this long, that mean year have -- let's were go didn't didn't too news ITC good ago, some we sort there right? I a I don't didn't the The a we have thing, we laying IRA. an have want there's producer... of out when We for

Robert Vreeland

credit. tax Production

Andrew Littlefair

credit. tax Production

numbers. of that on lay any been it 'XX, big in has kind and that those about banned You are really 'XX, in put number

play are -- me. there are out $X numbers you wash. in Those I'm production that out So in all work numbers, big going it based mean, going tax to do the or whatever let out $X, it, $X going or you it's on to attributable be could the those to when here put you want, also work credit. I not

Matthew Blair

XXXX. not does just $XX confirm ITC I add million that backs, any to $XX That want the and include for correct? Okay, to million

Robert Vreeland

tax and there’s number no necessarily Correct? no in wouldn’t mean credit, ITC of Well, investment million yes, million. there’s the $XX yes, IRA to but $XX an more it is

Matthew Blair

very you thank much. Great,

Robert Vreeland

Thank bet. you. you Okay,

Operator

question. with question Research. Please Wasikowski comes proceed Greg Webber with your next from Our

Greg Wasikowski

from the dead Hey, wondering, RNG the away to together? to when at be that, a still XXXX I it’s guys. ago. we over little all horse ramp day XXXX take can percentage or just but we Just or shape lot going Really, back of it beat you things right still don’t good I’m look of here we out financial by the a to the can afternoon we mean wipe take whether the year projections from the good just everything just a all Should metrics we a projections what what away from has and curious can should changed. is obviously those still to just intact? general slide kind hair numbers? the certain a at ramp cutting

Andrew Littlefair

broad we some me is of almost hit need let strokes exactly the the Well, still see the we same as did.

in number lay on the the third way, that. I was, in the total see thought. we firmly on we’re So place. exactly the as And have kind still We same that -- by the see still track to XXX the party being four whatever of able we of XXXX don’t

And our account in then our come we of and account, that. the off RNG haven’t dairy partners

that, be right. it months need the six to to Now, slide you I might think that everything may

probably back think credit here I prudent do. then of And, afternoon, as are this different. we’ve prices we is course, use all that’s discussed the to that

get some substantially. of And from on have is all meaningful believe those credit we prices, to like out we time that credit, that, IRA, as XX, our some the best course, the strengthen the the prices received employ the certainly, tax we we to So of then, that have the thinking to well. you by production will credit of XX very there and benefits

projects if in I when RNG impact, look or projects, dairies things, late, then pivoted hold let’s critically that saying, but little party. mean, think you at bit So I we say, meaningful if XX you when haven’t pursue don’t much XX, changed, this terms underway, of the XX, early the start well, you of what’s projects, longer scheme some well. is. build, to dairy not, it’s, probably And not late let’s to generally an know let’s be pursue are could of there’s XX, oh, it to these And still could intact. how XX, not have pretty want in going but in or I what, it’s pretty let’s all a really, third you do taking It’s not

Greg Wasikowski

Bob. Go ahead Yes. Okay.

Robert Vreeland

a I you model take a you mean, that, on that, I it like math if I price, if to frankly, have that, can, you, the gets then and going you from to the and in there. the yes, from down. you XX, may look I well, you a LCFS tempered at XXX take credit so out. we and mean, have numbers little if take it’s And, bit. can XXX, look, go can that really and change Oh, come IRA go have, said from, tailwinds the help help the the that tell simply down. really the Because would if same we But thing. you But

we well. there. don’t tax partners, five yes, the we Now, that there's production by for then a little year come believe temperament that way, as also in our credit for period, didn’t plan to XXXX, But in, although so maybe

So, we’re always back kind in. of

I shape is the of the that, curves in So general, think potential still there there. and out

Greg Wasikowski

to going of of your ask now. into is fair for front looking we right smaller not for XXXX the years I’m to exact us Is fair XXXX. delta out look Okay. But rate Kind say? revised it that when than, is XXXX, say you then to that and numbers. those estimates between at

Robert Vreeland

Yes, that’s fair to say.

Greg Wasikowski

your maybe MLA more more bit that helpful. permitting. in about things for prepared Amazon whether competition I just, remarks sites. and elaborate could you that’s the Can competitive then What just is one little think things, a on if it that Okay, mentioned was forces outside for of I And decided?

Andrew Littlefair

RNG build what is of competition just This real kind of estate competition. pressure natural I thought Greg that’s again, you and fueling, not to the maybe on competition. competition if gas

Greg Wasikowski

scarcity of the to kind type property. What of as

Andrew Littlefair

cities what in their properties kind of city? And want

Greg Wasikowski

Okay, okay.

that it’s It’s do uses the though just, Not this. not, others doing. it’s in of others to different So, land not kind the same for thing general. you’re doing

Andrew Littlefair

exactly. Exactly,

Greg Wasikowski

you. Got

Okay, lot on. cool I’ll that’s pass it guys. helpful. Thanks a

Andrew Littlefair

bet. you Yes, Thank you.

Operator

with Please question. Molchanov proceed Our James. your next with Raymond question comes from Pavel

Pavel Molchanov

beyond are know guidance LCFS that two that the next to Thanks question. giving in gives expect taking you the formally said XXXX directionally? the improve you over you for you but What California years. confidence not I pricing

Andrew Littlefair

Pavel, compliance curve. that carbon endorsed, increased that oversupplied workshop that curves chance could RNG important curves, if market, new supply Yes of on the of concept down feel standard certainly all gives to an from the what And working. XX%. has can which to we ratchet ratchet staff this obligation it they I a comments XX% a kind you’re fuel they increasing us component that XX%. they’ve think in think obligation the an compliance now XXnd, of And after the there’s of that fairly of is that then, it. confident, there’s low supportive And go the the actually the an And and is I were the the confidence is that

to of from kind could XX you So go theoretically XX.

is that So RNG of you’re all all I need the get. to think can going you

in supportive price. you’re for environment back a increased be think going I So to more much

Pavel Molchanov

goes? ask EPA and Okay, whole that RIN, let being as as that on including, your question to about large What’s seems rethinking were for are as which a me I RINs these credit, year thinking of electric a that framework, similar The RVO the think where RINs discussed. the directionally kind entire, California the combined. tax be

Andrew Littlefair

I they and Fuel with proposal actually since and eRIN. their RVO for weeks last the lot the Pavel came Standard I, on Yes, these that out the think we’ve learned Renewable new few a over

I over. think they’ve

four largest I and look you think renewable the few. has they’ve organizations and fuel that the just to, RNGC, overshot. listens when NG at And a the the the and API so – AFPM Association, EPA to EPA the name

Growth, are Energy, all work. of the that All them of unanimous won’t in eRIN framework them, proposed

up going -- make to don’t duty kind that’s frankly, idea I And frankly, vehicles thin that they you equivalency at truck. The think look Pavel, hard kind kind as the light going a to to credits, for I think RNG gain to of to to one create don’t it’s electricity to enacted. way where duty being the incent of RINs don’t into don't air, that heavy that put that’s the putting out the of decarbonize rigged go jury case. math, VP, think of end up going electric fuel? RNG then, way I versus we credit get, specifically don’t, and where, would they your of engineered how it would you the probably have fuel they I being level end on to I what depending of

just and you valid was I with and guy’s goes to and the move heavy at me. his Committee, out who They’re And fall the to digester Detroit, was the the the to that that it’s of kidding I and, to generators trucks. dairy duty I happens Agriculture said gas and you California, farm own how it Congressman it in can the one the farm can said someone Congress other up Pavel I proposed that And of bladder, of here have from he said Musk. that I to with Valley, And obvious. chairman to chairman you Dale, Central now for be. on be got the the by and the was get capturing. farm that at It’s Congressman top to dairy vehicles in Elon of and the that think the a longer dairy the way the into no own or his Agriculture producer of pass RNG possibly -- methane pointed going all going on member standing it’s I they’re in asking much, longer this origination the weight. well, the Ford farm. imagine We not just or on its it, the have lagoon on there top to filled Pavel, making no was of electric the the and too generator almost to under say, too well there’s I EPA day dairy Committee that whose And we’re has

end what enacted that’s that think of deal. is being And in just all going I that’s another way was up at don’t of, all. So example to on going to just going this

Pavel Molchanov

that. on color the Appreciate

Andrew Littlefair

they’re RVO by think what’s under June. perhaps to to obligation you’ll going see, enact the I is Pavel happen

to up out. The figured and know. whether all make Now, this or they to to be that, they’re day. I get going cleaned eRIN not that not do don’t sure I’m able

surprise wouldn’t the go re-styled eRIN that RVO in so, And some and some of other they and with that gets delayed some kind me June. maybe

have to we’ll see. So

Pavel Molchanov

Washington LCFS? question Smaller do a from the quick but at or anything Oregon you programs, end. State Just get

Andrew Littlefair

We do. But a little bit.

better Oregon, there we don’t we Oregon a do at We have now. quite lot think looking don’t I guys, yet people we one are yet, about have I’m we there but of will my four several right sure. five but prices are Oregon, but up Not for nice, or program. working customers. customers of

Pavel Molchanov

guys. Okay. Thank you

Andrew Littlefair

Okay.

Operator

question your next with Our Brothers. with from is Shere question. Craig Tuohy Please proceed

Craig Shere

taking the afternoon, questions. thanks for Good

I implode. carb the So these neither wants EPA nor obviously, programs to

of, regulators of So I being feel any sand terms state do you for options those possible In the east catalysts two, And eliminating, in kind on in demand some carbon see just and you shy with tweaking projects draconian just more changes what supply the other the the a low away ask silver is past see them I a from ways? want with starting certain track lining total recommendations focus other line to market? west by reduction, programs. of from you And see that other one, carb, pressured to the prices? versus there do to evaluated draconian these some were Do or things?

Andrew Littlefair

somewhat I’m look, the are it way end Yes. actually been that I on Well, I’ve say what going of I to programs this was optimistic call both Craig, trying these And think, helped. hope, hasn’t to up.

EPA think, part I wants the picking kind of latter bit frankly, in proclamations you a be on or and a either of and prices regulatory I don’t watch California done I’m markets little kind dismantle programs. of, can And workshops, the and up these As that where But making credit sausage that to this staff believe of that’s kind year. are. he’s of the to the all, a unnerving. the

Okay.

not certainly unfortunately, to think well, was and we and well and to governments guidance, winners there to things some losers that time I time. steer do market. a And pick not, certainly from do governments want often staff and maybe see micromanage from to and time always, tendency and time

of service that the when at if that but for sand all the into and they that the state lower program that capturing these West of instance, pathways to in length is think look works. need the having dairies and overpowers order micromanaging claim some states and California, methane. no, it proposed it it things state. I of if The of that, knows state of They works. and been that look know have other governor I West California, lines in the some if works know what he and It's the kind the had gone these beginning you in they and -- half voluntarily RNG Governor stuff of but Newsom, some of they works, it’s know said that to I carbon of the and different

is last thing cow want the will. So golden you if you to a do kills

it, little to have see So little if programs, things of they that going kind and time going from increase they suggests go program those, think fact to were is to think you’re all tendencies kind what want that better there’s I I to all need micromanage a the no to you’re away, do is of because these RNG going lot it all. XX% what to to to curve that you’ll wanting the go And to they’re will the of overpowers test, need the XX%, XX%. That’s these, obligation those of many big. which

the, actually in to the, to feel similar a headed I So EPA, but a way. then And the I in kind a, better optimist, that we feel direction. relate that feel actually of, I as an similar I’m is in to

they for government force federal vehicle fuel go. want and to math decide the returns to it’s their think go to going where go to they, the to I generating jury should rigged is it way to don’t decide For electric program. make that this on the that electricity just

there’s And I’m confirmation about Radiation, tomorrow. of just charge that Office these who’s of should interesting, get in of the tomorrow. kinds now brought questions I of cell we hearing what know he’s probably At confirmed they that There’s the with we’ve Air sure trying do about in EPA, to were the program to a, And talked up trying this charge program. by in because tomorrow. tune the

like, think think right about see. against not it. I’m to we’ll the anything that it, to some it’s it authority have not to about particular, do but being the done probably in eRIN. with has probably think the sure only don’t things was feel of one kind the I they was right EPA I so doing But And do way I way Not the it. of go way that just everybody. I were even And not I But the

I those read in think I was that. should You mean, comments. there general agreement

Craig Shere

That’s fueling agreements? have the you just you going. massive, or have next XX out do type to with finishing adoption you’re helpful. after order Amazon Or stations Or, the guess, new agreements And in you’re XX what’s fueling, that? the going see and increasing you’re, fleet keep engine, more stations? open next new so just to and just you roll Cummins XX litre widespread going access talking get other to about require Amazon. Do up XX to have for similar do so I

Andrew Littlefair

now we work with then the of next And working they hope we really name alone. going. just And fleets. test in Amazon XX there’s a they the you four as one keep trick Amazon, right? There XXXX the can just six order Cummins, a for just not sort of order book I fleets mean pony, XX, vehicles on more the focused are bulk beyond at Look, introduced right hope or I’ll we’ve terms have like said, Well these in with that largest are five, on go look I household largest more months. I, as be But just these we Amazon sometime XXth later. many trucking with the And once that we’re

order over they, develop as stations them to hope all future, begin to we We’re in the them with build and for to fleets, those vehicles. work

we’re be many take doing these with there’ll what Amazon. be large nationwide with large fleets thrilled to So network work -- and very case. we these do And now. be sure we that of the will fuel would fleets the use of of our some network I’m can very a a And have that’ll then lot to

instance, Now I pan Craig, it know all instance, don’t for how out. for

mean, We them. to fun. And a we So us of the fuel one. Werner, of, look, new I’m using speculating, know Walmart’s just, just I there’s partner giving love fleets. for be I’m would testing I bunch know when those kinds kind for the Cummins just RNG XX of

Craig Shere

come not there’s want or And pressure degree adoption, lower Oregon you. geographies what nationwide, Do for up fleets that increasing me, four two years. on last states drive, California fuel widespread three one others you and or these these types of with to think or carbon there’s to programs to have next two, the these three just more or and multifocal

Andrew Littlefair

Yes, I -- that Mexico. I wrote was them part here. Illinois, question. down I in wrote down York, your New New of

So will there other be states.

New the Jersey the goes you’ll area. other, states others the But other some We’ve York's think And won’t North New think you and pretty introduced And I I wants have to There to states. Illinois will that New do it. have you’ll you’ll have other probably close. Jersey work in Carolina, in it. some go. York New got do be I get has, think,

they yes, something their program, they should. does So And up louse will. if Craig, California to

Craig Shere

you. Got

for you Thank those Okay. insights.

Andrew Littlefair

Okay, you. thank

Operator

Bank. Please from proceed Paul question. Scotia Our next with your question with Cheng is

Paul Cheng

Hey, guys, It’s afternoon. late. pretty good

if official stands. party, you have There’s you does how will way And to from And or longer want you percent currently of LNG gas I have able see that I to pipeline that under is to is the Thank where in it California? read, the quick. it your that to real So way be to will your your connection think your you. construction and the credit, LNG credit passed do want you keep also, will see all guys currently what mean, physically to California some projects prove state. how that? realistically get any impact operation? does government there that the talked LCFS third no sales list that net much yet change may have discussion, the the the I if to

Robert Vreeland

claim book physically yet to I mean, kind book first And, Paul. do Yes, claim I -- think that’s, Hey, going to or they’re move mean, Yes. the that. the and we don’t, it’s to be in think I around where require of to mean, that’s I where us determined. we gas and

some one to added, cost. beauties we’ve sense, not some be there’d is now. we’re it’s some really of I try moving got In the So There’d think pipelines, we not, be around accommodate already that have. but to cost and

We have certified pathways.

the once of Diego. it’s So little go in about, goes the we the tricky, mean, ATM. the to goes go dollar, be methane the, take San to it get able able farm a have like I to to dispenser to be it’s pipeline, into methane the out. indistinguishable. kind it but gas It’s once has dollar. we putting talked in and there, the from right? I mean, what actually, not $X do from but Because we you I same it is It’s mean, it’s

So would that’s, to have but look, however, we molecules. track

fair. that’s this frankly, And going not, the mean, again, book of use for you I there’s I’m that, way that’s way to faceless going have little and should mean, current it. and not just I the discussion bureaucrats, it’s transportation. going they is that deal killer, mean, above. kind on either the do kind of stuff right? And you’d it’s think essentially But and not Right. that to, not allow to mean, And to it a be to assign I Paul. I’m add wouldn’t cost, a but I you on the I it work. crazy would pay on. that’s the done claim it

the case. that’s the By way, not

an just thing want for it do that’s it while to If it kind they you that I has workshops, but use think it’s… cooler some that of And, even that. cost these to they be just, in don’t something, discussed at the happen, mean, I were when of it, looked it but see as for us. there if I extra would hydrogen, would to

Andrew Littlefair

We mean, are pathways. we certainly Because can accommodate. I

the now consuming. of all the of work. connectivity And it’s that lot all have time We -- It’s that’s And a it. work.

Robert Vreeland

not don’t, [Indiscernible] that’s for. in But

Unidentified Analyst

Sure.

that understand what’s impact, is costs guys? to the rough you for estimate any and kind of Just trying what the incremental

Robert Vreeland

know. I if mean, but costs, you’re kind on I into getting MMBtu you’re of know. kind transportation I No, kind of of don’t don’t dollars the thing.

So we for you, know. don’t but guys if our it. See it know can get I

Andrew Littlefair

telling We’ve great. you. asked by been would that Yes, be that someone

Robert Vreeland

about fighting it, busy I’m so paying I’m not about, worried I’m it. worried not

put don’t So me fight. the to down

Paul Cheng

question. my is a just Then question simple that final accounting Sure.

On still XX% reduction, how the the your – statement, we talking it cash That or numbers that will same. are about CapEx remain say does imagine credit work? capital the reduction, so, your in accounting wise flow I

receiving You way? are the just check credit up or the and from and showing government tax

Robert Vreeland

our in Yes, well, in basis asset. – will it’ll reduce reduce the it basis the our

what have the of lower value will, lower, will capitalized. it basically So will it it we

million going So up $XX with if then kind XXX of million you’re your there. you’re a and net to XX, going to you end asset get

Paul Cheng

from my your in guess $XX spent so at end million. million, when But on say, you that we're $XXX assume have suppose accounting if standpoint, No. looking that let's your cash XX-K and statement, I up at you the CapEx XXXX, is you let's on in question flow an XXXX, to million $XXX

line So your or showing still so is cash statement spending flow yes, capital XXX. XXX in up at the

Robert Vreeland

It’s going show to gross.

Paul Cheng

the then cash million, to up and flow Okay. it’s show in And statement. that $XX going just way,

Robert Vreeland

up in It’s section. going investing to the show

Paul Cheng

you. Thank Okay.

You’re proud accounting? the Bob with you aren’t of yourself,

Robert Vreeland

is Yes. me to the Paul. want I’m what would or FASB what say. conservative I doing think Thanks,

Operator

your Gabelman with question. is Our proceed with Please from next Cowen. Jason question

Jason Gabelman

Two for if taking first. thanks may, guys, Hey, my the I questions.

kept, clean benefit, fuel RNG that interpretation? XXXX. as Is credit, high the It your your pretty be I like a the credit the value gallon. $X starts be production If capped? think which that high. you production On could as to do it’s be seems can expect isn’t not, credit And if

fuel just Was I the per once it It to credits, excluding second margin, the think to gallon, and just like $X.XX Thanks. where rebound gas expect natural XQ on And in then all my was margin XQ, term you the that’s to that which is just $X.XX back the per higher again, by do that near credits? fuel was dollar the And any question excluding quarter-over-quarter, was the the prices? guess, of I numbers. due looked $X.XX. down just

Robert Vreeland

Andrew, the PTC. about you to talk want Okay. do

Andrew Littlefair

That seen suggested that credit adopted But Jason, I by -- department out, been -- carbon It it something, I has not maybe the based come a but I've we our been don't is that point has But by that's folks going stranger the whether tax been be I've hasn't heard it it don't us Treasury Secretary. that's time We big here, And could you its intensity. a that And big be as as it happened. careful. it's face law estimates on -- a know told question. be you production to about on promulgated. we the the out. appears number. the good let's $X Jason treasury know $X. have And first would And also credit to rather and anybody talked between ask things because it capped. the could really know how before

this designed how produced. that that fuels So low get know I really know was don't handicap I to incentive to yet. carbon

then to be. want be you could cap it would be, to do. could But something, it Have be? so Jason? careful what because against And it will? I'm it but know not sure designed it I works it it how you that. was I heard don't you much think Do

Jason Gabelman

was heard have you No, saying I anything… no. did. I if not

Andrew Littlefair

oh, also lot that. stuff. big that’s of are all pretty I this says, associated politicians, big But, know with someone a numbers there

So be be so how sure would and would I’m carbon, just it. I that it not it's so that know fair And cap so. to don’t low because

how So see that we’ll goes.

Jason Gabelman

Yes.

Robert Vreeland

the revenue, cost one, number I of will things. be out the Amazon, how, that the just by right $X.XX. say probably couple kind you're by the and the, that your your number of you’re cost by we coming numbers And that there’s me, you’re the or of value think Amazon the couple, figuring Right, wrong that that you incentive and then But at I because and out non-cash kind the giving netted saying has to nets I incentive Jason, what nets sales sales that there. of, the can is. on the to mean, of same. report a value in your that that influenced like down second it tell you’re taking fuel can then all. I product is not I’m question, down a

result there so, the and to in that, up of have it than that QX. of skinnier And that. little or was a any the it’s you. can a value that is And whether as been margin I want of your not, say quarter you gets was the But value larger if to in charge largest and

in X.X So million and million. QX X was like it

I cost that And the into natural you here in residence. the mean, opinion, I bit my went to to revenue yes, It’s in kind natural little righted complete the January then netted how your gas I of would we’re it’s down will it’s And mean, if state. all because and and and going first don’t say, about that from big way gas was by of But debacle we’ve in that's own QX the costs a So opinion quarter. see managing market, a that in news know But such in itself. I the in $XX. to say like number. it’s of there. then heard already California. a I doubling certainly debacle, know a my we’re there, pressure a dissipated, on $XX of impacted, I any on humble

spread our don’t we’re the pricing. always prices our raise do way our having but accommodate January, mindful we’ll selves, no out to of to our January, at we by wanting that, were said all that. externally one have in the way, But that. enjoy one, pump, totally because now, did, that’s that, no We that we to to customers In the own in work of forced the

We do And so out jump away. that. and there we don’t always did. Right

influenced your COGS. See have So anyway, bit on influenced. incentive a think $X.XX And you the non-cash it’s by the I charge? then yes, of how do is pressure little

Jason Gabelman

Thanks.

Operator

turn the We over question-and-answer Andrew back end the I call to would comments. like to have now session. the reached Littlefair for of closing

Andrew Littlefair

progress us and Thank for Thank to you on you. you, joining Great. next updating everyone quarter. forward our look today we

Operator

This concludes today’s conference.

you And time. may participation. You for your at we lines disconnect your thank this

Clean Energy Fuels (CLNE) 28 Feb 232022 Q4 Earnings call transcript