CLNE - Earnings call transcript Q2 2024 | Clean Energy Fuels Corp.

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Operator

Good day and welcome to the Clean Energy Fuels Second Quarter 2024 Earnings Conference Call. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to Bob Vreeland, Chief Financial Officer. Please go ahead.

Robert Vreeland

Operator. Earlier this afternoon, Clean Energy released financial results for the second quarter ending June 30, 2024.

receive section it at of not the available www.cleanenergyfuels.com. did Relations Investor the you the is release, on If company's website

a For There website also is XX replay be for the the available being days. on call will webcast.

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

Andrew Littlefair

report Thank solid that very strong midpoint I'm we XXXX the to second of you, pleased in position reached Bob. driven by quarter. financial a a

million good We adjusted million of QX an XXXX. first for in quarter. $XX.X reported in versus quarter EBITDA Following $XX equally the

the from that plant large RNG now completion is my Beach, million Hawaii of so, driven operating maritime and overall virtually in during ended million second on the a in half doing gallons patient to May was cash with of achievements year. a QX sets industry been Oakland obtained the of have energy increasing during are gallons to burning the between the Clean over traditional of constructed hard of to on highlight the million keep explain by years from facility, gallons what California, in overall, Pasha quarter, capacity August million helped XXXX for microcosm reduction company us the apart million ships liquefaction new in work with dioxide in low month volume and of accomplishments compared this XX% these little reduction and its NOx expansion operating have particular. three of quarter natural a investments. LNG short a LNG sector. LNG members, fuels. After the revenue our an of we carbon and by gas ships a XX%.Much million to Boron XX% $XXX By want We XX shy fueling $XX This clean carbon North in XXXX. We for business our Energy's any team Long stations none and quarter, a own relatively in commercial only has just which Sold across in second infrastructure the in of by over our ports same over is US and other XXX great business. container operate the quarter ships of output Pasha, demand America to begins remarks do ships the or versus from in in to some I'm of to grown throughout good Canada. I and the has fueling results. The extensive X.X the but today, going Honolulu. Fuel $XX the

networks many better vehicles such one existing RNG at these these along a natural customer, becoming gas many We've have like margins. benefits known. the truck driving are While revenue a centers. Increased a them are company, single for locations environmental are fueling operate, recurring they stations to the fleet number of fleet that were the over or the built agency growing geographically are of where fleets. Because distribution adding of XXX existing healthier testing the stations in our of located a of fill factors accessible to transit trafficked grown and of of fleets their private, trucks sanitation meaning is highly growth as or fast interstates strategically our at

XX publicly anchor built our with stations have accessible as we of Amazon As customer. these

Canada Western its a by an We new is with are as in infrastructure of and are from to executing of power largest of Cummins XXXN engine now other similar available Together, for independent Because of fit Canadian at trucks logistics terrain will seen series gas a beginning range, fleets. partner but the new the torque, trucking. Tourmaline, stations for Canada in them customers well. We're additional in process fleets the see the existing excellent producer and strategy be anchored in our we as fueling building that more Canada.

this to fall. are Second and scheduled our open Tourmaline stations under third partnership

in stations advantage said being stories decarbonize, shiny immediate companies on in better, out gas. There's away our realization in industry, network and a ways of natural fleet read that that publications growing media throughout many are charging taking cement of the more with of a natural largest years we a for looking reach is have agreement can't the RNG world, footfalls of example Cemex, US of in the the the signed trucks in penny times, one electric quarter great Here numerous gas the in the that are be meaningful expanding other and solution vehicles the the to find a we with and is which of financial way growing in the than transportation fueling renewable heavy-duty and from region. I affordable could California, foreseeable is of future. We've in all trucking Southern the these infrastructure. calls lack for the that convinced second any the new also many deployed chronicling fleets especially alternatives and

turning Maas in in that put checks finally months, all to over seat Mexico, experts, media a Maas having Peterbilt's with a other equipped network as make great over boxes and very Engineering production partnering hydrogen has natural completion a XX right while Peterbilt payload, six flip time about with those natural of trucks, one of test own XX the Clean the were of have review the approved with progress or without Cannon, the Jason RNG series engine, driver End And that we saw gas these and Energy number it Georgia the emissions dairies those potential success now in well. But gas a utilizing most its of the the quote. Jason Ultraloft believe other of carbon scheduled of years. fill me dairies, piece trouble years. We've time South offtake. review last and of that at of begun a thorough nice right that has emissions, a of in method boxes traction, And Nebraska side, of natural for projects from announcements after RNG, duty along to bumpy the sacrificing RNG getting gas an country writing for have reporter. Indulge had. speed our projects the producing engine after low gas looking reducing the operationally through over to in on to ever I the single by of calls growing ended more suppliers heads. But natural has our that veteran tanks we, agreement series lost for future projects sign range. On industry, a Dakota. XXXX XXXX. lagoon Cummins spent than battery, strongest XX chronicles refined in and the had RNG. Daryl a how pleased and we're that coverage have in a the for that with XXXN read electric Energy is are the is carbon started their the the in in fleets carrier you with you around head RNG of the we trucking as his the industry, commercial and table of New in with the checks fuel lot number heavy-duty scores so in years the well-respected stations has now heavy with to seeing truck followed RNG me hopefully projects the case other company of introduction few to better fuel continue of the for new and trucking the the heard gas any this build growing now his and ensure reduce XXXN, makes a journal alternatives of lived cluster ride including has well-respected X years Florida the these comfort last natural trucking. To Jason when a driving the continue in recent space on developers covered

our with Fork we project. Frank recently Texas. The a him Brand, our five monetize I'd by one close in sale Injection investment Rio. Credit on RNG month projects this produce which and deliver That credits the first over generated outcome, the produced last any area we're to good will clean approximately the with low know We XX transition digester this. net proceeds we We particular solution that began call strongly credit waste is dairy and my I financial also at the space to pipeline the And November. I you are industries. We ground the we of the Plan agriculture, and on domestically many owner, speculate address will RNG BP. while companies to in energy or how is into an questions and commercial tax like the transportation couldn't investment if in our low prouder know embraced and our and fielded be or election be next by believe projects segue for Dairy sector, Del XX,XXX-cow Minnesota, energy recently is partner biofuel overall of in has sustainable rebuilt administration broke to other the Ash project. and generated remarks closely, I energy. months. leadership carbon a investors. And operational farms win monetized fuel, which project $X to to that like deliver currently RNG million tax environmental successfully to the carbon, project Dairy in all of customers, in by developed at partner will landfills Grove the to generates partner of South an our outcomes dairy I attempting most how win watching on benefits say in continue for municipal we dairy as Like Congress. companies the many calculate the impact won't different transportation any they

WM and where and but know and House will so the year that example, outcome I with them the the of started members the pleased Bipartisan RNG and tremendously bill, was credit industry environmentally able we Senate brief Ways this be support Linda recently is show the and the to to fueling natural hosting has US latest rural from tax that of Means feel and matter the cross by coming Fitzpatrick Congress, Fitzpatrick, November, our were of trucks other RNG creating is senators municipalities in cosponsor benefits the to no very Sanchez heavy legislation. These I Committee, will to chairman comfortable be politics, and week republican and other agricultural the America, America, seriously and As financially, in several by and gas that fuel executives jobs that bill Smith, duty with including Jason next we companion Representatives Brian credit are a headquarters off aisle to early mirrored the and my US and helps including introduced Democrat produce UPS career technology the way a RNG a in tax alternative dangerous, of in members decarbonizes who an House on just industries. We widespread as production enough Mark in co-sponsored Thom in we there Warner both Tillis. I rural said, the no vehicles Representative been address.

detail go hand who you. Bob I'll the about strong Now into will more our Thank call quarter. back to

Robert Vreeland

to We and good good afternoon XXXX. Andrew, everyone. quarter had a Thank second you, for

quarter. On price per and share at results fuel business, reported and GAAP track, quarter amount. LCFS $X.XX loss our albeit station as share, XXXX $XX.X good a see trending revenues net which our the including LCFS loss were and the during same pricing, a the last volumes year's margins we at million, lower per RIN net strong good basis, from credit GAAP second our back of is We continue a on distribution of for plus network, or to

our XXXX. in the ways, for just XXXX, to results different XXXX non-GAAP our in there last adjusted million June, credit our $X.X XXXX per the period quarter of we total LCFS back second million, second quarter. And basis, the in for credit our LCFS upfront the was revenue $X.XX of got our LCFS of credit million reported we the year income versus was where $X.X the mentioned, we as transacted an mentioned got about $X.X discussed quarter LCFS XXXX share, That Although there. sales includes $XX.X non-GAAP second Then $XX.X April on for second million, revenue of in first we the $X.X second to XXXX million Andrew sales had of taking due that on breakeven And transacted on quarter, we the here, quarter $X.X earnings or track that quarter we to quarter. for same second million clarify LCFS we EBITDA call Easter so also for last million adjusted thus for holiday. in of to quarter of our compared net

improvements beyond ended $X.X here extraordinary six did marked we million, quarter helped for of 'XX the our last principally the basis, adjusted in sales fueling million improvement was the in into same months a the in period first EBITDA two to While April LCFS cost was from 'XX. And the that year-to-date RIN added XXXX, quarter that LCFS high year in for better well above million the quarter cost are with $XX.X still revenue our the means the for a we GAAP impacted California million GAAP $XX EBITDA saw Last margin months to are higher the June six year, from financial by of pricing some $XX.X incremental million last million first saw. XXXX net a year's to the in for the we compared of with year-to-date loss us versus about net XXXX. $XX in first business year, six results lower incremental which our second it June due but months second of boosted in that gains gas seeing of to the for of On six our XXXX, loss offset sales fuel an adjusted of XXXX last mix compared higher negatively and costs month anomaly. results, of gas year, quarters pricing $XX recovery last a

loss In a earnings is net planned. of million fact, GAAP on year-to-date GAAP basis, than running $XX.X better our

changing maintaining XXXX, adjusted improvement guidance $XX interest guidance a due million $XX June the our compensation As a our guidance million million, million total in none RNG lower of XXXX expense, annual net previous XXXX and $XXX on some GAAP I adjusted to $XX be to loss to $XX our higher because insight in in $XX estimated of Amazon XX, feel an lower net to saw updating confident charges, the warrant impact is EBITDA and EBITDA. of our million wanted EBITDA a of second of GAAP months six not a million GAAP revenues quarter finally, for income, to around million our we more With $XX into that EBITDA loss. We're guidance such, our we're depreciation GAAP comments lower the expense, for of adjusted few for adjusted trends And we to loss which improvement range net our $XX.X our the make of outlook for provide our to $XXX range of million XXXX, to volumes million million. basically there. stock of versus $XX to

saw the sold of XX.X about gallons decline last of XXXX was second front, 'XX is RNG result that the slight first RNG second our this the quarter. We in quarter was for kind distributed the And 'XX. and the we repeat didn't we when volume had this we station outlook, second that's 'XX out, last we quarter XXXX gallons expect network quarter. ago a On quarter didn't we to when XX.X the in outside of in in of it gallons. The XXXX that versus second X we RNG compared of back and volumes quarter first second station of XXXX RNG of outside in and the year's RNG year that really million the year volumes set certain XXXX of of to that we network identified RNG set in million quarter in repeat of the reported reduction we first our what of in million quarter RNG much February, where XX million had sold our gallons, anticipated

to commodity to margin we doing part fact, change, gallons up why So to in lot that fuel reason our were was distributing into get were our year-to-date the of million quarter in XXXX, of addition in make second and of of the margin the the RNG sale that a RNG to that RIN also pick as overall LCFS. On able 'XX, in of we delivered by And underlying frankly, fuel basis, network. through June then the we've improved up able to the RNG. gallons by of a on our XX XXX

RNG bit Now, for XXXX we Reaching this of in XXX million estimated back that our was XXX gallons of the a 'XX at challenge gallons will target point in February year. be for a gallons. million

XXX% to, seeing target just our out is part point of that going we're see, and of XX% somewhere mix bottom-line though, ultimately XXX we can XXXX. we So, million that also of to as I'll that that in RNG important contributions that deliver results, And financial maybe what our do really is delivered between an gallon for we're results.

On million XXXX, higher. XXX,XXX. the that had $XX.X second ago, instruments. And million in been non-cash the million, year have change would had second and there compared related to certainly $X.X for year that revenue $XX number fair that was of It revenues of to in item front, our increase. derivative value revenue But year-over-year we last quarter, was one Andrew the muted noted a quarter

$X.X kind all increased. sources number got in year our prior million categories, the revenue then about were from So, that, of all apart number the change. a And of the you

although of mainly increase tax the sales then and higher revenue, revenue. year also RIN was that higher nearly sales were sales saw revenue dollars in to had up we fuel April vehicle ago, driven a greater. was by second the higher in That I was due million And compared quarter pricing. LCFS fuel that higher from fuel XX% mentioned previously. alternative RIN Our a to our credit This on volumes. We an

other when XX% down also across non-cash first to recent will of largely of our gas the standpoint, at decline natural revenue through increases look in and We I talked kind cost. we've change through it impacts we that's the approximately the that So, relates quarter, that of that gas in XXXX the there. of natural value the X%. that second QX was about reason that saw quarter, a From to our board our of because fair March, price, June reductions from for from cost decline before, about say derivative dramatic revenue commodity more impacts actually the on then compared flow that. instruments. And and

was the dollar impact these revenues our So, are in is part to trend see of terms business. at to for to largely we but that nothing the there open important a questions. pointing operator normal our from fundamental not the call that that margins decline I point, can in change guess stations. And trend second quarter With our in or we they dollar that the cash contributors any do that have first this impacting quarter to

Operator

question Our Hallam. of comes Eric Instructions] [Operator first from Stine Craig

Eric Stine

Andrew, Bob.

stations. going timing would I'm mentioned really in yet volume at level specifically your high the way. moving end you I but if gotten trucking on guess that production you And in it's could and X% markets, hasn't certainly your down from break and XXXN. I thoughts big by updated a So, a refuse? of the love key specifically curious growth your know launch towards just then or release

thoughts just be So updated great. would

Andrew Littlefair

let's Most kind the if mean of all trucking, And of And launch comes almost percentage that just Cummins not from everybody. review I Eric. increase on of for it.

line units of the of is, hoping. The sort to formal. and the feedback, that now is driver weeks of really built come been tremendous think of You short torque just engines next were miles actually the were on couple These early accumulated and before are mentioned got I kind put pre-production in fuel a fleets. It has we those vehicles the test earlier feedback company a what that phase some the ride the know and interesting, has of largest economy have the has ago the has but nation's year the million delivery introductory was been, Cummins units. surface been out

So, there's have batch trucks been delivered. another that been now of

got opened fact, excited fleet been into point very our In trucks operating. be that'll at instance, purchases one. is Beautiful demo It'll book between We're now for next batch and go I and this the that'll here and and week. so now we customers. next about be think The March order or something has as April. orders opened Cummins that But their the it.

and are working we're channel Cummins our some orders units. owner PACCAR We working recent all working believe hard industry dealership as of and has that with that I kind in. sell at the have with groups partners they anecdotally meetings to stood Cummins get that these XXXX by heard they'll still

about know months, we've for six on XXXX. calls going of these latter as Now these part engines into get to, the service trucks are last likely these that will, talked we

So us. for these we orders big we're not another pick thing all OEM. But because volume anticipating, a year up next

of vehicles. more, greater number So, a go engines the could have into you'd more,

for But of I about So, hard we'll to it far. excited fleet fleets, we're really at the but some some we're so point. up announcements on this it begin and, we're very working optimistic. these hope see to incumbents that's

Eric Stine

Yeah, was you. to where A little out. they talked see Cummins the I good timing X% because But Can just see. parts. of is that that but on adoption going about recently open believe moving

Andrew Littlefair

Eric, that's. that don't extended think unquote, yeah, timing, the And I period was time. quote over know, I of an

there means. about many got, that, of years, be Cummins then then they that is what would those whatever. percentages. they talking Three and XXXX XXXX what early in and in, heard I've discussions I sort maybe I started don't as always know So

CEO earnings knowing this the to million to So, not not course, I'm of the CEO hearing translates about to Right. XX,XXX the about somewhere in XX,XXX And around talk units. our gallons equates timing XXX X% into exact it. fuel. of to enough I holding product units close that it. thought of call. love, something

about selling for RNG fuel we're big. now million of XXX us year. right So, industry, the gallons around for business somewhere of part talking the for And, those industry, in downstream of the the this recall is

have largest we So, share here by the market far.

is XXXN as industry. really is this So, this the very, us for and stressed, Cummins we've important

Eric Stine

my six are the the that still start to for and kind what Maybe that the for you pick upstream to your for the projects you plans question, start operating, of upstream timeline that that EBITDA are year? producing about mean, RNG. talked or on see last 'XX an just of fully late update, an I then those the contribute, in and remainder up guess, 'XX here in I maybe are

Robert Vreeland

yes, going as our there yeah, Yeah, of by negative goal gave I contemplates be JV RNG to of be kind for into gas would not with close going produced, correct. we're at but that's inside certainly we full And working sure XX to monetizing million being 'XX. full capacity. But the was Eric, capacity the negative still which mean, end this for year investments, generally, XX that that's EBITDA. guidance the yeah, to within to be working

from gas It's it, we, the these into pipeline get excited as stuff see finally when frankly. we're fruits the So, going of you about your labor quality good pipeline, with projects. to the

'XX. other but, the construction, of that So of the point. Then, have projects, projects course, all really late are under that's they're Right. the you'll main all Maas

big they they're And 'XX, lot in so, projects. for don't relatively all contribute but a large

meaningful, So, but in they begin they'll be come until inject won't the, later on to in later and really 'XX.

Eric Stine

they year same where a timeline that on as the it this and you've follow bit. the got come six takes They'll

Operator

from question Capital comes of Brown The Lake Markets. next Street Rob

Robert Brown

the question on quote, First fueling. first non-Amazon is

or those you what that's us little ramping a trucks. fueling stations the You you're color stations Could non-Amazon about talked and little give a Amazon on how bit seeing there?

Andrew Littlefair

You're stations? the on saying Amazon what's ramp

Robert Brown

stations. that at fuelers are non those the No, Amazon

Andrew Littlefair

once Yeah. XXX. we more Cummins fleets to accept, obviously have Well, begin that

event. 'XX really that's a So

instance, the call let's at are up and I it if public, to see You'll fleets side I of But mean, the more some are at have these, of it. locations. the of kinds fleets ecology, these those for show we large public WM, like, DHL, Amazon that beginning

So large trucks. Kenan fleets that have group. a lot of

areas. And those knew. have Amazon They're And so, wanted in logistic located right. locations. fueling public and designed, to was perfectly as that at We warehouse

lend to I really fleets. we're that the a beginning themselves seeing just problem. they so, of lot And And of hope

Robert Brown

and And of back RNG want then facilities you are early, the opened sort that margins and and you, seeing want Are what kind of how the the there that flows looking to on I realized have running, operations you it's are learnings there? but the you of the terms how's the operations? started in

Andrew Littlefair

that's begin happening get Del increases the and we that's come we all I I But XX-day as on go is then kicks in inject we've think nice mean, we're wanted. as to out we compressors, the the think some get taken, had, calls, commissioning different to see to we tune. of we it kind up expected. a we a seems Rio. We've some maybe pipelines the in upgrading and maybe in We, to and longer than pieces, that been after have kind begin seeing we're have adjustments equipment, commissioning and talked Right. the learning we've uptime we've I and things, these that, production. And Well, little what's a was of all lot retrospect, and made phase, about very June, the some in here.

in we're possible. go. now will manure handling So was projects large thought I all than handling one more in think Idaho, right these where we're of where our we And that's manure

working. things So, just sometimes a when on surprised we we're more little are the quality and things are and think pleasantly how slower these difficult,

house we'll integrated several think learned really operating that. We've we've that pleased it I arms hundred of new and and up. now lot and staffing to operations, SCADA systems think, we that. our more, this. our to fueling some plants stuff, some to last I LNG some continue we're sort around in, our slower to these been about of and kind think, and And of we're five operating, going we're trying I fully our in that know we'll has operation to that's while beginning efficiencies some fully on, be And stations bring Rob, continue operating come doing through good, as get and engineering teams we're projects and graded, of a folks generally,

Operator

The from Gupta next question comes UBS. of Manav

Manav Gupta

ask and Two them upfront. quick policy questions,

XXZ. of on it's we kind on whether get similar step from, some down over. turn treasury? more can terms X% line, should expect or of down, we timeline kind some we When X% on and any I'll carb step a it of can First, guidance And a update think from when about the,

Andrew Littlefair

Yeah, next days carbs all believe three it's that which, should hearing. Manav, weeks, tell, November notice, about best of two XX Release on release. the X XX-day can to before be is the or we This funny. we kind in don't know, Carb, going I their

that mean, be seems I track. So, to on

think on that now. I working Carver's

like next the seems that's items time see the weeks guess, still there's should of from senior that couple, XXV that, is I that's we be of this, here what something to in kind but the was treasury, on of rule November in, what would policy and in being So, I out end X. And assuming And for so, think at be for it three told some I agenda that track. sort should summer, I'm the we're still, to expect the changed, told. on that of always still about a September. know that, person sometime we initial

that's think we on that's but the go, time to way that. wait kind I so going to of got some and And more

Operator

The Ailani next of Jefferies. Dushyant question from comes

Dushyant Ailani

a could about have lowest. little of the just cadence XX? maybe the quarter bit one seen it up over talk second quarter Historically, for being your of you with XQ half we have I kind EBITDA ramp

to similar puts and end that you So, if a to the fair cadence, guide? higher takes some are say and the of is follow there? hit a What there's it chance

Andrew Littlefair

that a getting are year. said, correct high look half to as we would the we within that That's up of a the some we same second bit expect at as profile have But general right it's ramp to there's cadence. have we've that possibility. of a terms end, volume. see that of as generally speaking, We're of always that are you the there. in of And And we where feeling range. good kind in all Dushyant, about I about seen a always range why now

the that volume, we're trends. So, we do constantly and looking predict can recent best at to we that

chance. a So, there's

Operator

question Pickering comes of from Tudor next Holt Blair Our Matthew

Matthew Blair

solid the on Congrats results.

what segment. I the out in unit stood downstream in rise quarter your refueling think this just was margins

versus lower Because that bit. just non-RNG? you could improved. RNG So, into talk gas your that up was about, that out Bob, hoping that can of did And the margins? like Does picked help I was look of a terms natural then also it the little a little I California share you to mentioned mix in we prices bit. refer did dig hoping unit

Robert Vreeland

Matthew, continue I a did us help will pretty healthy because to say that spread. enjoy the costs lower we gas

And comparing just large if you spread when got it good that the, my in pretty power, your will, like WTI Crude. As an the pump. pricing has MAX we've means say, is that been, it indicator, at to some always we're

that amount am at in So And particularly the that's we And where the did, versus you of versus that look, referring gallons. moves we mix, in some why with RNG It's helps area it's margins. CNG increase an it the was fact as not not see type more And that's sweet trucking, I seeing helpful. the really California, then part to we're as much. fueling fuel that's like or as increases. us. that volumes indicated when RNG of the California and spot on That's vehicle stations, of of that have

goes, that see improvements. as those you'll So

Matthew Blair

impact on RFS And you in the reversing expecting of Court the sort RIN decline then potential and the decision, prices? are any Chevron with program Supreme corresponding any

Andrew Littlefair

been have in the not what the people as of Congress, scholar some think deal. the law And lot it's a not that RF trades underpinnings the some and happened by the Congress every be what these I'm following kind passed law as been the Matthew, that, is of I all of but same by passed way followed the might Chevron on applicable And the following I've this. a of it. to I on that

good think I in footing. RFS is the pretty

been footing. in, way on work so, things. will don't RFS But those the let's sure tests call that. might be don't that's and RFS jeopardy. on time, with that way I of it's know I'm and dealt immediate Congress there the that like the that came be that. I'm And over more sure about the through try it, a But of Not thinking lot thinking to it's in these there'll I'm some on

some ago, sure Republican saying, about we there speakers of been saw the I to stuff a an I'm of you might like. letter IRA, house Act try a there at in members XX look that those the put into as controlled hey, Republican the hour repealing of Though the that undo lot to there there's and that instance, house, put Review have those. have are thought a And the For IRA. try Congressional to

little than So, they -- this Senate when Review get to and this, the Congressional for a like takes poured would that, that I all going on, that this all Act, that. occasionally, out. is isn't is the instance, people simple, say at it's look more complicated This think to as on very things well.

have there. you'd to means clear XX votes that the So

So could that's that through new to why not it difficult have impounds and them that's certain categories. often. A used of administration make funds in that been put certainly spend different

so, in is try followed been you thing all been years, law today on I ever now. Matthew, a of don't the Republican RFS And before a do footing I -- XX And really Congress That ago, talk to We was Matt bipartisan fuel water of happen. all There's really now, that under lot law lot mean, states, is unwind there of see I participation ethanol years on supporting stand. that really a producing the have operator. a renewable believe RFS. a one other Go the time you than it's solid bridge particular before. lot since might I've and the it XX ahead, a know have wasn't more that bipartisan the how how One goes. that's long long the well, was RFS we'll the he? see could -- come is,

Operator

from question Brothers. Craig comes Tuohy Shere next of Our

Craig Shere

that JV recovered how kind project capital opine your and correctly backdrop, generally ITC? And the upstream projects XXXX, first hear funding more XXXX? you that you the about the much you how using million can expect portion a do feel for I from into total $X of X Did of on other as

Andrew Littlefair

don't I the top know $X on a head million of have Bob, total my Well, that is And project. I on. number

Robert Vreeland

speaking generally five same Look, the other if the well, I that the, are around will. would in you say size,

of So, same ballpark. they assets the qualified may probably will. have that They some in

shouldn't if than with be capital there's can it mean, go that But pricing will. all of in that's a number that. the I And, you But in the So we'll use and much things ballpark. level, too market that. there at in that project different the

same at mean, right project, maybe projects New But... I the depending.

Andrew Littlefair

projects that for about, we're projects are, our capital now. Maas the couple our covered of and other cap, a our we've then yeah, And talked right

Robert Vreeland

the at the capital. money have either we JV, We have the

So, committed peg. the the projects capital that in we calls, we've talked about these the on got

Andrew Littlefair

have million. to available I us. mean, And we XXX

Robert Vreeland

Additional, Craig? so we're that. good on

Craig Shere

announced And expect years public longer a their exposure diversified it a but institutional with five price was tenure. they years, or It agreements, separately, peer RNG future fixed just a discretionary sorry, five contract was company over first landfill just utility. with I'm

is pulled liter these the happens, this as know out go I demand gas, especially trend, market, is XX that CI if your market hit just Now landfill not to up all for dairy the trucks if becomes ultra-low gas as but a of for dramatically. dairy is the this system, going

RNG see what days? supply for could So and these you as opine maybe about demand you

Andrew Littlefair

hit need right. a real number we projects. currently demand a real start I industry hope projects on, of year, problem, keeping lot tough we creating, and up because There's we pretty RNG balance. year. I of a hope a $XXX good X% don't Supply into is projects million a lot problem. right? that get anticipate landfill with The we and and time I CI in every coming has low that's that

about that, Bob that. me you create it talk bit. a to remind But let quite and need You I

-XXX And at index. somewhere -XXX. a don't now, that fuel you're us about in talk know stations, I I think on at heard to probably someone it. Right supply that California XXX to dispensing you You around CI XX the or our you're need XXX

blend So, you point fuel, that more is can that vehicles. fuel my you as

And won't fuel, their a -XXX. way We the very significant in have just the fleet I by fleets getting Well, they're other it get that. contract, where think that's works unusual.

customers get fuel RNG number. be to is at just, have or to of to able a either So, plenty zero number you're going my negative point

also So Look, RNG move. continue going XX it of you have where you'll sweat to I transportation go to as XX% liter best. that comes goes the for get Craig, of it's market's today plenty into because the forward as move, the Don't to here. happen on, rewarded the you RNG, America think in that. And

going place, it. yeah, it is of If transportation, I'm by end me. up somebody they for okay which hardest watch, going you centers. will having is to happen whatever think comfortable decarbonized more the said and center I most needing AI are money make their all getting start location natural data that have, that, want do, So, people look, with for you to to But the data on the to gas to most large wants I also do where it.

trend. a as that see You'll

down in start going You was that's and that, and would be to zero. a RNG and maybe natural blend going bring Well, beautiful you're all think that gas know, wind opportunity some be fossil to hearing now it well, I to solar, okay. to

you be use opportunities use other use data these or center it it in what or places, will So, That's a it investments, make hydrogen. vehicle confidence RNG. for in of there lots us making in to in because gives if

I a for really lowest because it's out feedstock carbon great think RNG the you. Thank fear. the But no there. future there's have

You know, I'll still stick that.

more brought billion couple the manure, million have and decade, that'll on several the you'll gallons food, from a gallons landfill, there waste. wastewater, billion RNG Over of are more, next from be

you gallon every But power gas diesel we're from not there'll replace today. today. a of which all-natural to are that's billion way is a several So, trying long of there's, where or, or be RNG, making gallons

Operator

Pavel next James. of from Our question Raymond comes Molchanov

Pavel Molchanov

question. macro of kind Maybe

kind And And useful oil of demand. fear market some in impacting in of certain I the the price on First, about a recessionary channel think is obviously potentially XX level use months. you about pressures lowest have there's at cases. check

and recent are weeks So, months? seeing demand in you softening

Andrew Littlefair

know we pretty don't I curious have we decline I the there, I or that. up see see fleets going we are the operate oil? haven't buses headed feel that don't we trucks we refuse sidelining, transportation? concerned type our decline we do wake No, a that that, but fuel. have delivery, seen and a people check we, any but, we is our on now, how to oil thought trucking $XX But fleets or guess are, transit be you're while guess and, that good best to versus that'll were that you at you're On you're in be Are be thoughts for I'm I where along to on you $XX. going equivalency. you're at today $XX. and BTU very, be thinking for going I'd would of now of have gas And very this. oil. the oil trade, Right constructive. mean that $XX XX the to us gas if $XX between I it's And to bounce right one part kind your that $XXX lower natural you'll a three-dollar on

but And need time for the that, at We of were happy XX:XX:X. that. long a at end. really you're don't So like course we Right. high we

kind So, there's of think. There's of I there, a room lot of a room. lot

Pavel Molchanov

business, last of talk your of the of XX from to the item. product kind down closer percent not growth. much over like drivers for about about line when the your margin And I service has XX, look years lot consistent very revenue as We zero. service couple that? ish down a the looks to has this at margin, maybe it But come three Any reason

Andrew Littlefair

bit a down, this. coming all Pavel, why We're okay more there we call our it I'm just still We're of margin. but do out down. on going with and know this with It's okay it's not come to put inflation. costly

bit because fundamentally of still it, done, the it's little types more on just revenue a but it good think the I recurring are can maintenances cost little but but say that that, I'm see based we going just a on on flow bit it's and Sometimes to ebb service front.

this the with it's come -- the thing, at to as sort our renewal it. fair we're in we versus as looking board up that Now and that we're thing and costing all support materials of and to tell address wages getting I things share what can contracts certainly pricing for you day, across renew sort of

as addressing it we're So, well.

Pavel Molchanov

or now. of Support Adopt had so haven't happening touched maybe this a Beach you interesting Chevron Long a that anything We years there with ago? couple initiatives the guys year with on Is

Andrew Littlefair

keep just if bucket to we we're filling at Pavel. continue up of will, feel to it, do We've funds the we Well, Chevron trucks. it, from actually expanded more you

of needle what's Some to it on electric the in operators grant the through in whole have Chevron order the of small for put mess down for the regulation still to some shoot a grants. and timings with that there in we the new of have fleet at and it required trucks terms somewhat push there made rules of to for this team, port, regulations. fleet working. But they made trucks daunting new the sales And Chevron down the our we're a are bunch process buy then in those

day, now. that even brands And don't slowly port anywhere areas And there's in I the continued fleet we it maturely fleet California. on been add trucks we we've around Central other know And the that's so, into any naming, because port. to right of clever that those up can were very trucking in We for state it's Valley the a really other if change than other be the called adopted the program in in I California. think putting talked in but a was about -- fact, Southern

Operator

Betty next Scotiabank. from comes question Zhang The of

Y. Zhang

RNG your talking it talked question million quarters, station volumes, one from in seems are previous Bob.Just gallons you about outside guys about sold you of network. Andrew, like having X When me.

that assume how markets. transportation clearly I be are economics guys in the would better non-transportation talked markets, you So, but into about

just like do there's to opportunity And what I'm wondering there? the take you if it? was So, thought would process more,

Robert Vreeland

what kind supply-demand, all in goes on the a it's of Betty, of quarter. optimization whole into factors

our where And if a folks for supply, maybe get so need an then see economics. first we will, stations have highest the RNG. occasion, delivery they -- where And and so, into predicament always our much is you just we opportunity area will on of because if

And it. do that opportunity to so, we take

why weren't a happen done whether in which to it it So that last first clear again, bit quarter, was necessarily was needed. we just the over. is that that's kind second fairly that on saw happen year, And regular, little some did going we And It's of of had wasn't yes, and the where we then happens. it. really, although still in quarter, not it's

what so And we... that's

Andrew Littlefair

always table. the That be continue. we'll on But will potentially

Robert Vreeland

always It is.

So our first and... Clean go stations all Energy and network to throughout and foremost, we

Andrew Littlefair

thing more It's play into that it categorize to wholesale moving in is a than Betty well satisfy and long-term to so, it term is that the it making Yeah, it yeah. a probably, though, we I of talked to.And don't we're if could this short able right about. transportation. type RNG This know a would very where center particular. is up end way I customer, To the itâ€™s over we're data say,

Robert Vreeland

fact, In it. most I of lot of, think a

Andrew Littlefair

Operator.

Operator

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

Andrew Littlefair

we to the next operator. Thank for participating in everyone, Have a look evening. call, Thank you, you the good you, forward in updating and quarter.

Operator

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

disconnect. now may You

Clean Energy Fuels (CLNE) 7 Aug 242024 Q2 Earnings call transcript