On August 7, 2024, Clean Energy Fuels Corp (CLNE, Financial) released its 8-K filing detailing its financial performance for the second quarter of 2024. Clean Energy Fuels Corp is a natural gas marketer and retailer operating in the United States and Canada, supplying compressed natural gas (CNG), liquefied natural gas (LNG), and renewable natural gas (RNG) as alternative fuels for vehicles.
Performance Overview
Clean Energy Fuels Corp reported revenue of $98.0 million for Q2 2024, falling short of the analyst estimate of $99.57 million. The company also reported a net loss attributable to Clean Energy of $16.3 million, consistent with the same period last year. The estimated earnings per share (EPS) was -$0.10, while the actual non-GAAP EPS came in at -$0.01, showing a slight improvement from the previous year's $(0.00) per share.
Key Financial Metrics
Despite the revenue miss, Clean Energy Fuels Corp achieved several financial milestones:
- Adjusted EBITDA for Q2 2024 was $18.9 million, up from $12.1 million in Q2 2023.
- RIN and LCFS revenues increased to $13.9 million from $7.9 million in Q2 2023.
- Alternative fuel excise tax credit (AFTC) revenue was $6.0 million, compared to $5.1 million in Q2 2023.
Operational Highlights
Clean Energy Fuels Corp sold 57.1 million gallons of RNG in Q2 2024, slightly down from 58.6 million gallons in Q2 2023. The company also saw increased bulk fuel sales into the marine sector, although this was partially offset by lower natural gas commodity costs and reduced volumes of RNG fuel sold outside its station network.
Challenges and Strategic Initiatives
The company's revenue was impacted by $14.1 million in non-cash stock-based sales incentive contra-revenue charges related to the Amazon warrant. This is a slight increase from the $13.9 million in Amazon warrant charges in Q2 2023. Additionally, Clean Energy Fuels Corp faced higher non-operating net interest expenses and losses from equity method investments due to increased indebtedness and expansion of RNG investments.
“Building off a solid first quarter, our second quarter was even stronger, putting us in a healthy financial position at this mid-point of 2024,” said Andrew J. Littlefair, President and CEO. “The recurring daily fueling of RNG by our customers within our extensive fueling network is driving our results.”
Income Statement and Balance Sheet Highlights
| Metric | Q2 2023 | Q2 2024 |
|---|---|---|
| Revenue | $113.0 million | $98.0 million |
| Net Loss | $(16.3) million | $(16.3) million |
| Adjusted EBITDA | $12.1 million | $18.9 million |
Analysis and Outlook
Clean Energy Fuels Corp's performance in Q2 2024 highlights both its strengths and challenges. The increase in Adjusted EBITDA and RIN and LCFS revenues are positive indicators of the company's operational efficiency and strategic focus on RNG. However, the revenue shortfall and ongoing Amazon warrant charges present challenges that need to be addressed.
For more detailed insights and to access the full earnings report, visit the 8-K filing.
Explore the complete 8-K earnings release (here) from Clean Energy Fuels Corp for further details.
