Clean Energy Fuels (CLNE) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue reached $98 million, up from $90.5 million in Q2 2023, driven by higher fuel volumes, increased RIN and LCFS credit sales, and strategic partnerships, despite a 2.6% dip in RNG gallons sold and lower natural gas prices.

• Adjusted EBITDA improved to $18.9 million from $12.1 million year-over-year, while net loss remained flat at $16.3 million ($0.07/share), primarily due to higher interest expense and equity method investment losses.

• Cash, cash equivalents, and short-term investments totaled nearly $250 million as of June 30, 2024, maintaining a robust liquidity position.

• Expanded RNG production capacity through new joint ventures, including a partnership with Maas Energy Works, and completed a $22 million dairy RNG project, bringing total operational dairy projects to six.

• Operated or supplied over 600 fueling stations in North America, serving more than 1,000 fleet customers, and signed new fueling agreements with major fleets.

Financial highlights

• Q2 2024 product revenue rose to $83 million, with service revenue at $15 million and product cost of sales down to $53.9 million due to lower natural gas prices.

• Adjusted non-GAAP net income was $2.7 million ($0.01/share) in Q2 2024, compared to break-even last year.

• Year-to-date GAAP net loss improved to $34.7 million from $55 million in the first half of 2023.

• Adjusted EBITDA for the first six months of 2024 was $31.8 million, up from $8.2 million in the same period last year.

• Total indebtedness was $303.6 million as of June 30, 2024, with $300 million in long-term debt maturing in 2029.

Outlook and guidance

• 2024 GAAP net loss guidance updated to $91–81 million, including estimated $63 million Amazon warrant charges, an improvement of $20 million from prior guidance.

• Maintained 2024 Adjusted EBITDA guidance of $62–72 million.

• RNG volume target for 2024 is 245 million gallons, with expected achievement of 95–100% of this target.

• Company expects to fund $60 million in capital expenditures and up to $120 million for RNG production facility development in 2024, primarily through cash on hand and operating cash flow.

• Guidance excludes impacts from acquisitions, divestitures, new JVs, and extraordinary events.