Clean Energy Fuels (CLNE, Financial) is busy building natural gas fueling stations in the U.S. as the company prepares to benefit from an increase in vehicles powered by natural gas. The impressive part is that Clean Energy is gaining a number of new customers by way of fueling agreements.
New clients to propel growth
For example, in the transit segment, Dallas Area Rapid Transit introduced 184 new CNG buses during the second quarter which are fueling at its four stations. Dardanelle runs 112 Paratransit vehicles, more than 50 LNG buses and 370 CNG buses in its natural gas fleet. Clean Energy was chosen for operating the fuel station in contract with Santa Monica's Big Blue bus, California’s King's County public transit and Valley Regional Transit where Clean Energy also served 2 million LNG gallons on an annual basis.
The Southern Nevada Regional Transit Commission in Las Vegas received additional 80 CNG buses during the quarter and Clean Energy is improving their two CNG stations to contain the new buses.
In Sacramento, it signed an agreement with Paratransit Incorporated having nearly 200 small gasoline buses to be replaced with CNG.
Clean Energy is believed to be a major player in the business and fuels 7,200 buses at 41 transit properties in Canada and the U.S.
Clean Energy serves nearly 260 refuse customers at 179 locations in the country and expects to continue to lead this growing key market. It launched its third public CNG station helping LAX.
In Las Vegas, Bell Transportation, a key customer, ordered 83 new CNG taxis and 10 new CNG buses during the second quarter. It acquired five public CNG stations in the city and signed two agreements with transit agencies. It currently runs 12 fueling stations in Las Vegas, expanded its volume by 145% in just five years and sees a huge growth opportunity in the segment of solid waste where it fuels approximately 90 CNG refuse trucks at present.
In the bulk fuel hauling market and ready mix truck market, it has signed two deals, particularly with Schwartz Ready-Mix and Delaware Valley Concrete to build a station for each of them, which combined are believed to add nearly 1.6 million gallons annually. It has also partnered with Mansfield Energy to focus on the bulk fuel hauling truck market.
It launched the largest natural fueling station in North America, having NG Advantage in New Hampshire.
Conclusion
According to Yahoo Finance, the company is in losses as depicted by a PEG ratio of -0.33, compared to industry’s average of 2.73. The profit margin is poor at -30.72%. The revenue per share and diluted EPS of 3.86 and -0.97, respectively, signify a loss as well. The quarterly revenue growth of 11.40% is poor. Finally, investors are advised to cautiously invest in the company by looking at its solid long-term growth prospects as indicated by the CAGR for the next 5 years per annum of 25.00%, above 7.80% of industry’s average coupled with robust assets from current ratio of 3.76.
