Clean Energy Fuels Corp. · NASDAQ:CLNE
Clean Energy Fuels — IPO Roadshow (May 2007)
58 slides from Clean Energy Fuels's IPO roadshow presentation, May 14, 2007
Slide 1: IPO Presentation Updated May 14, 2007
IPO Presentation Updated May 14, 2007
Slide 2: Legend
Legend The Company has filed a registration statement (including a prospectus) with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement (File No. 333-137124) and other documents the Company has filed with the
Slide 3: Special Note Regarding Forward-Looking Statements
Special Note Regarding Forward-Looking Statements This presentation contains forward-looking statements that are based on the Clean Energy Fuels Corp.'s beliefs, as well as assumptions made by them and current information available to them. These statements relate to future events or future financia
Slide 4: Offering Summary
Offering Summary 10,000,000 Primary 10,000,000 Secondary Shares Offered $13 - $17 Filing Range CLNE / NASDAQ Proposed Ticker / Listing Week of Expected Pricing Date WR Hambrecht + Company Simmons & Company International Susquehanna Financial Group National Bank Financial Underwriters LNG Facility Co
Slide 5: Andrew Littlefair, President and CEO
Andrew Littlefair President and CEO
Slide 6: Leading Provider of Natural Gas As a Transportation Fuel
Compressed Natural Gas (CNG) Taxis Airport Transit Government Vehicles Leading Provider of Natural Gas As a Transportation Fuel Clean Energy Liquefied Natural Gas (LNG) Regional Trucking Refuse Hauling Public Transit
Slide 7: Providing Comprehensive Natural Gas Fuel Solutions
Providing Comprehensive Natural Gas Fuel Solutions CNG and LNG Fuel Solutions Fuel Supply Strategy and Implementation Station Planning, Design, Construction and Financing Long-Term Fuel Sales Contracts In-House LNG Production and Transportation Fleet Planning and Fueling Needs Analysis Vehicle Procu
Slide 8: We Fuel Fleet Vehicles Nationally
We Fuel Fleet Vehicles Nationally Transit ABQ Ride (Albuquerque Transit Agency) City of Phoenix, Department of Transit City of Tempe, RPTA Denver International Airport DFW Enterprise Rent-a-Car La Guardia Taxi’s, Van Fleets, Parking and Car Rental Shuttles Long Island Bus Los Angeles World Airports
Slide 9: We Fuel Fleet Vehicles In Southern California
We Fuel Fleet Vehicles In Southern California Southern California Gas Co. City of Sierra Madre Waste Management Orange County North Orange County Yellow Cab City of Santa Ana and Irvine Orange County Sanitation District Newport Mesa USD County of Riverside Waste Management Palm Springs International
Slide 10: Established, Proven Business
Established, Proven Business Leading Market Position 200+ Fleet Customers 14,000+ Natural Gas Vehicles 172 Natural Gas Fueling Stations * Gasoline Gallon Equivalents Delivered of CNG and LNG Growing Volume* Increasing Revenue (Millions of GGEs) ($ Millions) 46.3 56.8 68.4 15.6 17.8 $57.6 $78.0 $91.5
Slide 11: The Clean Energy Opportunity
The Clean Energy Opportunity Increasing Pressure to Use Alternative Fuel for Transportation Natural Gas Is Cheaper, Cleaner, and Domestically Available Natural Gas Technology and Infrastructure: Proven and Available Today Established Leadership Position, Track Record of Growth Management Team and Bo
Slide 12: Increasing Pressure to Use Alternative Fuels for Transportation
January 2007 Goal of Reducing Petroleum Consumption by 20% in 10 Years State of the Union Address January 2007 Transportation Fuel Sold In California Must Be 10% Less Carbon Intensive By 2020 Low Carbon Fuel Standard Signing Hundreds of $Millions Being Invested to Cut Particulate Matter (PM) Polluti
Slide 13: Alternative Fuels: A Large, Underpenetrated Market Opportunity
Alternative Fuels: A Large, Underpenetrated Market Opportunity Gasoline Gallon Equivalents Sources: U.S. Department of Energy, Energy Information Administration, Gas Vehicle Report 2006 Vehicle Fuel Consumption (Billions of Gallons) 175B 97% Gasoline and Diesel
Slide 14: Alternative Fuels: A Large, Underpenetrated Market Opportunity
Alternative Fuels: A Large, Underpenetrated Market Opportunity Gasoline Gallon Equivalents Sources: U.S. Department of Energy, Energy Information Administration, Gas Vehicle Report 175B 35B 2006 Vehicle Fuel Consumption (Billions of Gallons) Alternative Fuel Target
Slide 15: Alternative Fuels: A Large, Underpenetrated Market Opportunity
Alternative Fuels: A Large, Underpenetrated Market Opportunity Gasoline Gallon Equivalents Sources: U.S. Department of Energy, Energy Information Administration, Gas Vehicle Report, American Coalition for Ethanol Biodiesel Board Biodiesel 2 Billion Gallons/Year (in 2015) Ethanol 14-15 Billion Gallon
Slide 16: Alternative Fuels: A Large, Underpenetrated Market Opportunity
Alternative Fuels: A Large, Underpenetrated Market Opportunity Biodiesel 2 Billion Gallons/Year (in 2015) Ethanol 14-15 Billion Gallons/Year (in 2017) Alternative Fuel Capacity 2006 Vehicle Fuel Consumption (Billions of Gallons) Gasoline Gallon Equivalents Sources: U.S. Department of Energy, Energy
Slide 17: Not All Alternative Fuels Are Well Suited for Fleet Transportation
Increased NOx Emissions More Expensive, Competes with Ethanol for Land Voids Manufactures Warranty if Blended at Greater than B20 Batch Production Results in Inconsistent Quality Substantial Evaporative HC Emissions More Expensive, Land Intensive Not Suited for Medium and Heavy-Duty Vehicles Raises
Slide 18: Natural Gas Vehicles Are Used Around the World
Natural Gas Vehicles Are Used Around the World Source: International Association for Natural Gas Vehicles, Includes Both OEM and Converted NGVS Argentina – 1.5 Million Vehicles Brazil – 1.2 Million Vehicles E.U. – 500,000 Vehicles 5.7 Million Worldwide Natural Gas Vehicles 100% Increase Since 2000 M
Slide 19: 180+ Natural Gas Fleet Models Available Today
180+ Natural Gas Fleet Models Available Today Trucks Refuse Trucks Transit Street Sweepers Buses & Taxis Delivery Trucks
Slide 20: Natural Gas for Transportation: America's Best Kept Secret
Natural Gas for Transportation: America’s Best Kept Secret Domestically Available Cleaner Cheaper
Slide 21: Cheaper
i) Clean Energy’
Slide 22: Natural Gas Is a Cheaper Alternative
Natural Gas Is a Cheaper Alternative Pump Price (Equivalents) as of 4/05/07 (GGEs) Note: Diesel Price from 4/11/07, Average Taken from North, Central and Southern California $2.44 $2.70 $3.02 $3.11 $3.11 $3.28 $3.44 $4.66 CNG LNG Diesel Regular Gasoline B100 Super Gasoline Premium Gasoline E85
Slide 23: Natural Gas Cost Advantage Is Projected to Continue
Natural Gas Cost Advantage Is Projected to Continue Average Crude Oil and Natural Gas Prices on a BTU Equivalent Basis 2 2 2 3 4 4 Natural Gas (per MMBtu) Crude Oil (per MMBtu) 1 Prices converted assuming 5.8 million Btu per barrel of oil and 1.031 million Btu per thousand cubic feet of natural gas.
Slide 24: Significant Fuel Cost Savings per Vehicle
Significant Fuel Cost Savings per Vehicle Diesel Diesel Diesel Diesel Gas Gas Comparison Fuel 16,680 16,680 11,120 11,120 7,500 5,000 Annual Fuel Usage (Gallons) $18,000 $18,000 $18,000 $18,000 $7,000 $0-$3,000 Incremental Cost* Estimated * Includes Vehicle Tax Credit Estimated Annual Fuel Cost Savi
Slide 25: Multiple Federal Natural Gas Credits Encourage Usage
Multiple Federal Natural Gas Credits Encourage Usage Fuel Credits VETC (Volumetric Excise Tax Credit) for Alternative Fuels $0.50 per Gallon (10/06 to 9/09) Vehicle Credits For New NG Fueled Vehicles and Existing Vehicle Conversions Credit for 50% to 80% of Incremental Cost Based on Vehicle Weight a
Slide 26: Cleaner
i) Clean Energy’
Slide 27: Natural Gas Vehicles Produce Significantly Less Smog and Soot
Natural Gas Vehicles Produce Significantly Less Smog and Soot N0x Reduction: Less Smog >85% 0-25% 10-15% -5-0% 2-6% 0-3% Minimal Source: South Coast Air Quality Management District 2007 Air Quality Management Plan Summit Panel Natural Gas PM Traps for Diesel Engines Diesel Emulsions Biodiesel (B20)
Slide 28: Tighter Diesel Emissions Standards in 2007 and 2010
Tighter Diesel Emissions Standards in 2007 and 2010 Source: South Coast Air Quality Management District Study, 2006 Nitrogen Oxides and Non-Methane Hydrocarbons PM (g/bhp-hr) Diesel Engines NG Engines 2010 Stds 2004 Stds 2007 Avg. Stds 0.00 0.02 0.04 0.06 0.08 0.10 0.12 0.0 0.5 1.0 1.5 2.0 2.5 3.0 N
Slide 29: Diesel Emissions Impact the Environment
Including Diesel Sources Diesel Emissions Impact the Environment Source: South Coast Air Quality Management District Study; Diesel Sources Included Some Grades Not Suitable for Vehicle Fuel South Coast Air Basin Pollution Levels Excluding Diesel Sources
Slide 30: Domestically Available
Domestically Available
Slide 31: Large, Domestically Available Supply of Natural Gas
Large, Domestically Available Supply of Natural Gas Natural Gas 77 Years of Domestic Reserves (30-40 Years Longer Than Oil)* 3 Million NG Vehicles Would Use <1% of Existing Supply World NG Reserves Estimated at 3x That of Oil Reduces Dependence on Foreign Oil *Based on Current Rate of Consumption So
Slide 32: Established, Expanding LNG Production Capacity
Established, Expanding LNG Production Capacity Texas Plant California Plant Pickens Plant, Acquired 2005 35 Million LNG Gallons / Year Annual Capacity Operational in 2008 60-90 Million LNG Gallons / Year Annual Capacity + 4 Third-Party LNG Producers
Slide 33: Large, Domestically Available Supply of Natural Gas
Large, Domestically Available Supply of Natural Gas Natural Gas 77 Years of Domestic Reserves (30-40 Years Longer Than Oil)* 3 Million NG Vehicles Would Use <1% of Existing Supply World NG Reserves Estimated at 3x That of Oil Reduces Dependence on Foreign Oil *Based on Current Rate of Consumption So
Slide 34: Continued Customer Momentum
Continued Customer Momentum Seaports Within 5 Years, Ports of LA and Long Beach Are Targeting to Retrofit or Replace 10,000 Diesel Trucks Focus on Converting Yard Hostlers to Natural Gas Vehicles Airports We Currently Serve 18 Major Airports Expansion Plans in the U.S. Require Mitigation Ongoing Emp
Slide 35: Industry-Leading Management Team and Board
Industry-Leading Management Team and Board Perseus, LLC Kenneth Socha Westport Innovations, Cummins Westport Inc. David Demers Pickens Fuel Corp., BP Capital, Mesa Petroleum Boone Pickens Former U.S. Secretary of Energy John Herrington Former Director Office of Budget and Management, Chairman USPS J
Slide 36: Richard Wheeler, CFO
Richard Wheeler CFO
Slide 37: Financial Highlights
Financial Highlights Revenue Growth Hedging Practices and Transactions Adjusted Margin and Enhancement Opportunities Balance Sheet Highlights Volume Mix and Regional Concentration
Slide 38: Total Revenue
Total Revenue $21.0 $ Millions $57.6 $78.0 $91.5 $28.2 '04 '05 '06 Q1 '06 Q1 '07
Slide 39: Adjusted Margin
Adjusted Margin $ Millions Approximates Our Results that Would Have Been Reported if Our Future Contracts Had Qualified for Hedge Accounting Under SFAS No. 133 $11.9 $12.9 $21.4 $4.1 $7.7 '04 '05 '06 Q1 '06 Q1 '07 Adjusted mrgin is a non-GAAP Measure and is reconciled to the GAAP measure, operating
Slide 40: Gallons Delivered
Gallons Delivered Millions of Gallons 46.3 56.8 68.4 15.6 17.8 '04 '05 '06 Q1 '06 Q1 '07 Note: Gallons delivered reflects gasoline gallon equivalents of CNG and LNG.
Slide 41: Volume Mix and Regional Concentration
Volume Mix and Regional Concentration 2006 2005 CNG LNG 36% 64% 39% 61% 40% 60% 39% 61% California & Arizona Other Regions
Slide 42: Hedging Practices
Hedging Practices Fixed Price in Sales Contract Previous Hedging Practices New Hedge Policy Cost of Natural Gas Hedge Fixed Price Contracts Where We Can SFAS 133 Accounting Can Only Sell Underlying Contracts with Board Approval Reduced Emphasis on Fixed Price Contracts in Future Public Private Jan 2
Slide 43: Opportunities for Adjusted Margin Growth
Opportunities for Adjusted Margin Growth Sales Mix More Retail Sales, Less Transit Sales in the Future Gasoline Price Difference $.89 Difference Between Our CNG Pump Prices and Gasoline Prices at March 31, 2007 Tax Credits $.50 Tax Credit per Gallon on Gallons Sold
Slide 44: Balance Sheet Highlights
Balance Sheet Highlights $61.9 Land, Property and Equipment, Net $122.0 Stockholders’ Equity $0.3 Long-Term Debt $139.8 Total Assets 3/31/07 $ Millions $33.0 Working Capital $11.6 Cash and Cash Equivalents
Slide 45: Expand Our Leadership Position: Use of Proceeds
Expand Our Leadership Position As We Capitalize on the Growth in Natural Gas Usage for Vehicles Use of Proceeds $50-$55M Build LNG Liquefaction Plant In California $30-$35M Build Additional CNG and LNG Fueling Stations $15-$20M Finance Natural Gas Vehicles for Customers
Slide 46: Clean Energy Investment Summary
Clean Energy Growing Demand Alternative Fuels Are Changing Transportation Clear Benefits Natural Gas is Cheaper, Cleaner and More Available Market Leadership Market Maker with A Track Record of Growth Industry Insight Experienced and Well-Connected Team
Slide 47: Clean Energy: North America's leader in clean transportation
Clean Energy’ North America’s leader in clean transportation
Slide 48: Non-GAAP Reconciliation
Non-GAAP Reconciliation — — 2,142,095 — — Loss on extinguishment of derivative liability Three Months Ended March 31, Year Ended December 31, — 282,348 78,994,947 (44,067,744) (10,572,349) Derivative (gains) losses 6,299,878 4,882,141 20,860,181 17,108,425 11,112,878 Selling, general and administrat
Slide 49: Hedging Practices
Hedging Practices The "run-off" of $9.9 million and $12.1 million for existing fixed price and price cap contracts quoted in this presentation refers to the estimated costs we will incur (based on natural gas futures prices on March 31, 2007) to cover the increased price of natural gas above the inh
Slide 50: Boone Pickens, Director
Boone Pickens Director
Slide 51: Fleet Vehicles In Northern California
Clean Energy Fuels Fleet Vehicles In Northern California Northern California Norcal Waste Solano Garbage San Francisco International Airport SFO Shuttle Bus Company Yellow Cab of San Francisco Pacific Gas & Electric SuperShuttle Port of Oakland Park & Fly Waste Management of Alameda Alameda County I
Slide 52: Fleet Vehicles In Arizona
Clean Energy Fuels Fleet Vehicles In Arizona City of Phoenix, Department of Transit Allstate Transportation Total Transportation City of Mesa, RPTA City of Tempe, RPTA AAA Transportation Tucson Unified School District The University of Arizona Southwest Gas Corporation City of Phoenix, Sky Harbor In
Slide 53: Fleet Vehicles In the Northeast
Clean Energy Fuels Fleet Vehicles In the Northeast Garofalo Carting Northeast New York Town of Smithtown Long Island Bus Binghamton University Suffolk County Water Authority State of NY Government Fleet La Guardia Taxi’s, Van Fleets, Parking and Car Rental Shuttles Hallahan Truck Sales Garofalo Cart
Slide 54: Fleet Vehicles In Denver
Clean Energy Fuels Fleet Vehicles In Denver Denver International Airport City of Denver Town of Castle Rock Regional Transportation District American Airlines Frontier Airlines Southwest Airlines United Airlines America West Airlines Northwest Airlines Xcel Energy Qwest Communications Boulder Valley
Slide 55: Fleet Vehicles In New Mexico
Clean Energy Fuels Fleet Vehicles In New Mexico Sandia National Laboratories DESC (NASA) Santa Fe Trails ABQ Ride (Albuquerque Transit Agency) City of Albuquerque Los Lunas School District Los Alamos National Labs SunPort Santa Fe Trails
Slide 56: Fleet Vehicles In Texas
UPS – Dallas Parking Company of America City of Irving Fort Worth T Love Field DFW Advantage Rent A Car Atmos Energy Dallas County City of Dallas DART McShans Florist Texas DOT Five Star Coaches Sun Metro Clean Energy Fuels Fleet Vehicles In Texas Fort Worth Five Star Coaches DFW Airport City of Dal
Slide 57: Natural Gas Is a Cheaper Alternative (V2)
Natural Gas Is a Cheaper Alternative (V2) Note: Ethanol Equivalent in BTUs $4.88 Pump Price as of 3/29/07
Slide 58: NG Vehicles Help Reduce Greenhouse Gases
NG Vehicles Help Reduce Greenhouse Gases Honda Civic GX Reduces CO2 Emissions by 23% Comparison of CO2 Emissions for Honda Civic GX EPA Certification Test Values, 2006 Models (g/mile) Tested CH4 Emissions 0.0102g/mi 0.0001g/mi NGV Gasoline 268.6 179.2 219.34 215.4 132.4 168 City Cycle Hwy Cycle Comb