Watch List: Clean Energy Fuels Corp. (NASDAQ: CLNE)

On Thursday, Shares of Clean Energy Fuels Corp. (NASDAQ: CLNE) rose 1.25% to $2.83. The stock recorded $2.74 as its minimum price and hit the max level of $2.87, during its most recent trading session. It traded total volume of 982.5K shares lower than the average volume of 2.26M shares.

Clean Energy Fuels Corp. (CLNE) recently declared its operating results for the first quarter of 2018.

The Company delivered 85.10M gallons in the first quarter of 2018 and 2017. Growth in CNG volumes was offset principally by a reduction in LNG volumes because of the non-renewal of two contracts and RNG volumes for non-vehicle fuel that were included in contracts sold to BP, as noted below.

Revenue for the first quarter of 2018 was $102.40M, a 14.4% increase from $89.50M of revenue for the first quarter of 2017. This increase was mainly because of $25.50M in revenue from the U.S. federal excise tax credits for alternative fuels (“AFTC”). The AFTC, which had formerly expired on December 31, 2016, was reinstated on February 9, 2018 to apply to vehicle fuel sales made from January 1, 2017 through December 31, 2017. The increase in revenue was partially offset by a lower effective price per gallon, mostly attributable to the effects of the Company’s sale of certain assets related to the upstream production portion of its RNG business to BP Products North America Inc. (“BP”) at the end of the first quarter of 2017 (the “BP Transaction”), which has resulted in reduced revenue from the sale of certain tradable credits the Company generates by selling CNG, LNG and its Redeem™ RNG vehicle fuel. Station construction revenue reduced between periods, principally because of fewer projects in process in the current period contrast to a year ago. In addition to, the combination of our former compressor business (“CEC”) with Landi Renzo’s compressor business, SAFE, in the fourth quarter of 2017 resulted in CEC no longer being consolidated in the Company’s financial results and instead being stated as an equity method investment in first quarter of 2018, which also reduced stated revenue in the period.

On a GAAP basis, net income for the first quarter of 2018 was $12.20M, or $0.08 per share, contrast to net income of $61.10M, or $0.40 per share, for the first quarter of 2017. The first quarter of 2018 was positively influenced by AFTC revenue of $25.50M. The first quarter of 2017 was positively affected by gains of $3.20M and $70.60M, respectively, from the Company’s repurchase of a portion of its outstanding debt at a discount to the face amount and the BP Transaction.

Non-GAAP income per share and Adjusted EBITDA for the first quarter of 2018 was $0.10 and $32.40M, respectively, which included the AFTC revenue recognized in the period. Non-GAAP income per share and Adjusted EBITDA for the first quarter of 2017 was $0.41 and $80.80M, respectively, which included the gains from the debt repurchase and the BP Transaction in the period.

CLNE has the market capitalization of $670.40M and its EPS growth ratio for the past five years was 35.50%. The return on assets ratio of the Company was -15.60% while its return on investment ratio stands at -10.10%. Price to sales ratio was 1.89 while 24.10% of the stock was owned by institutional investors.

Grover Beam

Grover Beam has over 14 years experience in the financial services industry giving him a vast understanding of how news affects the financial markets. He is an active day trader spending the majority of her time analyzing earnings reports and watching commodities and derivatives. He has a Masters Degree in Economics from Westminster University with previous roles counting Investment Banking.

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