Clean Energy Fuels Corp.

Clean Energy Fuels Corp. (CLNE) operates as a leading renewable energy company in North America, primarily focused on the procurement and distribution of renewable natural gas (RNG) and conventional natural gas in the form of compressed natural gas (CNG) and liquefied natural gas (LNG) for the U.S. and Canadian transportation markets. The company's core mission is to secure and sell as much RNG supply as possible, leveraging its extensive fueling infrastructure and customer relationships. CLNE believes it is uniquely positioned due to its access to more dispensers than any other market participant, which is critical for generating valuable Environmental Credits ¹. The company has been involved in the alternative vehicle fuels industry for over 28 years and was the first organization to sell RNG as a vehicle fuel in the U.S. ¹.

CLNE's business model revolves around generating revenue from fuel sales, primarily RNG and conventional natural gas, and the sale of associated Environmental Credits. The company also provides operations and maintenance (O&M) services for fueling stations and engages in station design and construction. RNG volume constituted 88% of its vehicle fuel sales in 2025, a significant increase from 12% in 2013 ¹. The company aims for 100% of its vehicle fuel sales to be RNG ¹. Key customer segments include heavy-duty trucking, airports, refuse, public transit, industrial, and institutional energy users, and government fleets ¹.

The company's product revenue streams include volume-related fuel sales, changes in the fair value of derivative instruments, Renewable Identification Number (RIN) Credits, Low Carbon Fuel Standard (LCFS) Credits, and station construction sales. For the year ended December 31, 2025, total product revenue was $365.467 million ². Service revenue is derived from O&M services and other services, totaling $59.366 million in 2025 ².

In 2025, volume-related product revenue, which includes fuel sales, RIN Credits, LCFS Credits, and changes in fair value of derivative instruments, amounted to $331.483 million ². Fuel sales alone contributed $287.661 million ², while RIN Credits generated $32.234 million ² and LCFS Credits generated $13.054 million ². Station construction sales added $33.984 million ² to product revenue. O&M services revenue was $56.732 million ², and other services contributed $2.634 million ².

Comparing 2025 to 2024, total revenue increased by $8.968 million, from $415.865 million ² to $424.833 million ². Product revenue increased by $8.758 million, from $356.709 million ² to $365.467 million ², primarily due to increased vehicle fueling volumes, including $6.2 million ³ from the reopened Pickens Plant, and higher pricing, partially offset by a $5.3 million ³ increase in non-cash stock-based sales incentive contra-revenue charges related to the Amazon Warrant. Service revenue saw a modest increase of $0.210 million, from $59.156 million ² to $59.366 million ².

Key financial metrics for the fiscal year ended December 31, 2025, include total revenue of $424.833 million ². Product cost of sales was $273.283 million ⁴, and service cost of sales was $36.642 million ⁴. Selling, general and administrative expenses were $111.838 million ⁴. Depreciation and amortization significantly increased to $98.606 million ⁴ from $44.737 million ⁴ in 2024, largely due to accelerated depreciation of $54.4 million ⁵ related to the Pilot station assets. The company recognized a goodwill impairment loss of $64.328 million ⁴ in the first quarter of 2025. Operating loss for 2025 was $159.864 million ⁴. Interest expense was $52.687 million ⁴, while interest income was $11.383 million ⁴. Loss from equity method investments was $26.737 million ⁴. The net loss attributable to Clean Energy Fuels Corp. was $222.024 million ⁴, resulting in a basic and diluted EPS of $(1.01) ⁴. Cash provided by operating activities was $85.529 million ⁶, and cash provided by investing activities was $63.099 million ⁶. Cash used in financing activities was $82.111 million ⁶. As of December 31, 2025, cash, cash equivalents, and restricted cash totaled $157.756 million ⁷, and total debt (net of debt discount) was $226.727 million ⁸.

During 2025, the South Fork ADG RNG project in Dimmitt, Texas, was successfully placed in service in the fourth quarter, expected to produce approximately 2.6 million GGEs of RNG annually ⁹. The Pickens Plant recommenced LNG production in January 2025, generating $6.2 million ³ in revenue from LNG fuel sales. The company voluntarily repaid $65.0 million ¹⁰ of principal on its Stonepeak debt, reducing the outstanding principal to $250.0 million ¹⁰. Additionally, the bpJV sold $29.5 million ¹¹ in Investment Tax Credits (ITCs) for gross proceeds of $27.2 million ¹¹. The company also repurchased 4,913,818 shares ¹² of common stock for $7.9 million ¹² under its Repurchase Program.

Management anticipates capital expenditures of approximately $25.0 million ¹³ in 2026, primarily allocated to fueling station construction, IT software and equipment, and LNG plant costs. These expenditures are expected to be funded through existing cash on hand and cash generated from operations ¹³.

A significant growth area for the company is the development of ADG RNG production facilities. In 2026, CLNE expects to deploy up to approximately $42.0 million ¹⁴ for this purpose. The company has already invested $365.6 million ¹⁴ in the development of ADG RNG production facilities as of December 31, 2025, with $283.9 million ¹⁴ contributed to its joint ventures. The bpJV has one large ADG RNG project under construction, planned for completion in Q1 2026, which is estimated to produce up to 4.0 million GGEs of RNG annually ¹⁵. The Maas JDA has three ADG RNG projects under construction, with estimated commercial operation dates between Q2 2026 and Q2 2027, expected to collectively produce up to 2.6 million GGEs of RNG annually ¹⁵.

Another key growth vector is the promotion of the Cummins X15N natural gas engine. This 15-liter engine, introduced in 2024, is designed for the heavy-duty truck market, offering power ratings up to 500hp, torque up to 1850 lb-ft, and a 700+ mile range ¹. CLNE launched its second heavy-duty truck demonstration program in 2025, featuring a Freightliner Cascadia Gen 5 day cab with the Cummins X15N engine, to provide fleet operators with real-world evaluation opportunities ¹. The company's California Fleet Fund offers incentives of up to $50,000 ¹ for Freightliner or Peterbilt trucks equipped with an X15N engine, with an expectation of 50 trucks being ordered under this fund in 2026 ¹. Additionally, CLNE made a $1.5 million ¹⁶ strategic investment in Pioneer Clean Fleet Solutions, Inc. in 2025, acquiring approximately 9% ¹⁶ of its Series A Preferred Stock, to support broader adoption of natural gas-powered heavy-duty vehicles by addressing vehicle access and financing barriers ¹.

The company's operational outlook includes a continued focus on increasing RNG supply through new project investments, expanding its existing supplier portfolio, and leveraging its fueling network and customer relationships ¹. CLNE currently obtains RNG from over 220 supply sources ¹. The company also expects to open additional CNG fueling stations in Chilliwack, British Columbia, and Fort McMurray, Alberta, in 2026, as part of the Tourmaline Joint Development ¹.

Regarding capital allocation, CLNE's business plan includes approximately $25.0 million ¹³ in capital expenditures for 2026. The company has $18.7 million ¹² of authorized funds remaining available for common stock repurchases under its Repurchase Program, though any additional repurchases require consent from Stonepeak Partners ¹². The company expects its total interest payment obligations relating to its indebtedness to be approximately $29.2 million ¹⁷ for the year ending December 31, 2026 ¹⁷.

Management explicitly flagged several structural headwinds and execution risks. The expiration of the federal Alternative Fuel Tax Credit (AFTC) on December 31, 2024, and its non-renewal, is a notable concern ¹⁸. The One Big Beautiful Bill Act (OBBBA), signed into law on July 4, 2025, introduces restrictions and additional requirements on claiming or transferring certain tax credits, which may impact CLNE's ability to benefit from such credits ¹⁹. The company is evaluating the potential impact of these changes on its current and planned projects ¹⁹. Furthermore, the Advanced Clean Truck (ACT) rule in California, which mandates zero-emission trucks, faces uncertainty due to a congressional vote to repeal its federal waiver and ongoing litigation ²⁰. The Advanced Clean Fleet (ACF) rule also saw its waiver application withdrawn, and its provisions concerning high-priority fleets and drayage vehicles were repealed, limiting its mandate to state and local government fleets ²⁰. These regulatory actions, or lack thereof, could slow or prevent the adoption of CLNE's vehicle fuels, particularly in California ²⁰.

Clean Energy Fuels Corp. faces several material risks. Macroeconomic risks include volatility in the prices of RNG, natural gas, crude oil, diesel, and Environmental Credits, which can impact the attractiveness and profitability of its vehicle fuels ²¹. Geopolitical conditions, tariffs, and military conflicts also contribute to this price volatility ²¹. Operationally, the company is dependent on the willingness of fleets to adopt its vehicle fuels, which has experienced slow, volatile, and unpredictable growth ²¹. Supply chain issues, including increased costs and longer lead times on equipment and materials due to inflationary pressures, pose a risk to project development and operating costs ²¹. Regulatory risks are significant, particularly the expiration of the AFTC on December 31, 2024, and its non-renewal, which adversely impacts revenue ²¹. The One Big Beautiful Bill Act (OBBBA), signed on July 4, 2025, introduces restrictions on claiming and transferring tax credits, potentially affecting CLNE's financial results ¹⁹. California's Advanced Clean Truck (ACT) and Advanced Clean Fleet (ACF) regulations, aimed at mandating zero-emission vehicles, face legal and implementation challenges, which could slow the adoption of CLNE's fuels ²⁰. The company's RNG business is also exposed to risks related to securing sufficient supply, unpredictable production levels, and competition for biogas sources ²¹. Cybersecurity threats, including cyberattacks and the integration of IoT and AI technologies, present operational and data security risks ²¹. The company's indebtedness, totaling $226.7 million ⁸ net of debt discount as of December 31, 2025, could adversely affect its financial condition and operating flexibility, especially if cash flow from operations is insufficient to service the debt ²¹.

Management's message to shareholders emphasizes a commitment to maintaining and increasing Clean Energy's position as the leading provider of RNG to the commercial vehicle market in North America, with a goal to deliver 100% RNG to its entire fueling infrastructure ¹. They highlight the strategic importance of RNG as a viable, scalable clean fuel solution for medium- and heavy-duty transportation, while also monitoring alternative technologies like hydrogen-powered and electric vehicles ³. Management noted the successful placement into service of the South Fork RNG facility in Q4 2025, expected to produce approximately 2.6 million GGEs of RNG annually ⁹, and the recommencement of LNG production at the Pickens Plant in January 2025, which generated $6.2 million ³ in revenue. The company also voluntarily prepaid $65.0 million ¹⁰ of principal on its Stonepeak debt, reducing the outstanding balance to $250.0 million ¹⁰. Strategic priorities include promoting the adoption of the Cummins X15N natural gas engine, increasing RNG supply through new project investments and expanded supplier portfolios, and empowering customers to achieve sustainability goals ¹. Management also noted the sale of $29.5 million ¹¹ in ITCs by the bpJV for gross proceeds of $27.2 million ¹¹. For 2026, the business plan calls for approximately $25.0 million ¹³ in capital expenditures and the deployment of up to approximately $42.0 million ¹⁴ to develop ADG RNG production facilities.