Clean Energy Fuels Corp (CLNE) Reports Mixed Q4 Results Amidst Rising RNG Sales
Revenue: Q4 revenue reached $106.9 million, despite a $16.1 million reduction due to non-cash charges.
Net Loss: The company reported a net loss of $18.7 million in Q4, influenced by higher Amazon warrant charges and unrealized gains on derivative instruments.
Adjusted EBITDA: Adjusted EBITDA for Q4 increased to $21.2 million, up from $12.2 million in the same quarter of the previous year.
RNG Sales: RNG gallons sold in Q4 amounted to 57.0 million, marking a growth from 54.4 million in Q4 2022.
2024 Outlook: GAAP net loss for 2024 is projected to be between $(111) million to $(101) million, with Adjusted EBITDA estimated between $62 million to $72 million.
On February 27, 2024, Clean Energy Fuels Corp (NASDAQ:CLNE) released its 8-K filing, disclosing its financial results for the fourth quarter of 2023. The company, a leading natural gas marketer and retailer in North America, reported a revenue of $106.9 million for the quarter. This figure was impacted by non-cash stock-based sales incentive contra-revenue charges related to the Amazon warrant, totaling $16.1 million. Despite this, the company's Adjusted EBITDA saw a significant increase to $21.2 million, compared to $12.2 million in the same period last year.
Clean Energy Fuels Corp specializes in supplying compressed natural gas (CNG), liquefied natural gas (LNG), and renewable natural gas (RNG) for vehicles, with a majority of its revenue generated from CNG within the U.S. The company's operations include purchasing natural gas, processing it at its plants, and selling it through its extensive fueling station network. The target markets for CLNE include heavy-duty trucking, airports, public transit, and government fleets.
The company's performance in Q4 was marked by challenges such as higher Amazon warrant charges and lower unrealized gains on derivative instruments related to its Zero Now truck financing program. These factors contributed to a net loss of $18.7 million for the quarter. However, the increase in gallons of fuel sold and serviced, as well as a reduction in natural gas costs, helped offset the effects of lower sales prices.
Financial achievements for the quarter included a rise in RNG sales volume, which reached 57.0 million gallons, up from 54.4 million gallons in the same quarter of the previous year. This growth is significant for the company and the oil & gas industry, as it reflects the increasing demand for cleaner fuel alternatives.
Key financial metrics from the earnings report include:
Financial Metric | Q4 2023 | Q4 2022 |
|---|---|---|
Revenue | $106.9 million | Impacted by non-cash charges |
Net Loss | $(18.7 million) | $(12.3 million) |
Adjusted EBITDA | $21.2 million | $12.2 million |
RNG Gallons Sold | 57.0 million | 54.4 million |
President and CEO Andrew J. Littlefair commented on the company's progress:
We have fully moved into the operational stage at multiple RNG production projects around the country with one already generating state and federal environmental credits. The important process of capturing what would have been harmful methane from dairy cow manure and turning it into a transportation fuel, is being recognized as an important component in the overall transition to a clean energy world."
The company's balance sheet remains robust, with increased credit availability to support the expansion of RNG production and fueling station network. The introduction of the Cummins X15N engine in 2024 is anticipated to be a pivotal moment for the company.
Looking ahead, Clean Energy Fuels Corp expects a GAAP net loss for 2024 ranging from approximately $(111) million to $(101) million, which includes estimated Amazon warrant charges of approximately $69 million. The company's Adjusted EBITDA for 2024 is estimated to be between $62 million and $72 million, excluding any potential acquisitions, divestitures, or other extraordinary events.
For more detailed information, investors and interested parties are encouraged to join the investor conference call or access the live webcast on the Investor Relations section of the company's website.
For value investors seeking to understand the dynamics of Clean Energy Fuels Corp's financials and future prospects, the full earnings report and additional commentary provide valuable insights into the company's strategic direction and operational performance.
Explore the complete 8-K earnings release (here) from Clean Energy Fuels Corp for further details.
This article first appeared on GuruFocus.
