Clean Energy Fuels Corp. · NASDAQ:CLNE
Clean Energy Fuels — Investor Day (January 2022)
54 slides from Clean Energy Fuels's investor day presentation, Jan 27, 2022
Slide 1: RNG Day CLNE Five Year Outlook
1 Welcome Raleigh Gerber Director, Corporate Communications RNG Day CLNE Five Year Outlook January 26, 2022
Slide 2: Today's presenters
2 Andrew J. Littlefair President and CEO Robert Vreeland Chief Financial Officer Today’s presenters
Slide 3: Q&A participants
Andrew J. Littlefair President and CEO Robert Vreeland Chief Financial Officer Will Flanagan Vice President, Strategic Development RNG Investment Q&A participants 3
Slide 4: Safe harbor
4 Safe harbor This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including statements about, among other things, the ability of Clean Energy Fuels Corp.
Slide 5: Non-GAAP Financial Measures
Non-GAAP Financial Measures Non-GAAP financial measures To supplement the Company’s unaudited consolidated financial statements presented in accordance with accounting principles generally accepted in the United States of America (“GAAP”), the Company uses non-GAAP financial measures that it calls a
Slide 6: Video to play here
Video to play here. (not included in PPTX). 6
Slide 7: RNG Day CLNE Five Year Outlook
RNG Day CLNE Five Year Outlook January 26, 2022 7
Slide 8: Who we are
Who we are Why RNG What we can earn RNG supply RNG distribution Financial summary 8
Slide 9: Who we are
Who we are Why RNG What we can earn RNG supply RNG distribution Financial summary 9
Slide 10: Who we are
10 Who we are – Dairy/RNG production – 3rd party RNG supply contracts – 550+ stations – Capacity to double volumes – Fleet + marine customers – Maintenance + construction – 2 owned LNG plants – Vertically integrated RNG solutions – 25+ years of experience – Invented RNG as a commercial fuel RNG Supp
Slide 11: Why RNG
Who we are Why RNG What we can earn RNG supply RNG distribution Financial summary 11
Slide 12: Why RNG
12 Why RNG Accessible: Extensive network of fueling stations nationwide Affordable: Stabilized prices and lower maintenance costs Renewable: Made from organic waste, not drilling No diesel pollution: Reduces smog-forming NOX emissions by 90% Less maintenance: No high maintenance DPF-SCR diesel emiss
Slide 13: The RNG advantage: carbon intensity
44.8 38.7 13 The RNG advantage: carbon intensity -500 -400 -300 -200 -100 Zero emissions 100 50 Gasoline/ diesel Hydrogen Renewable diesel Electric vehicle RNG Landfill RNG Food waste RNG Dairy 100.6 41.7 15.2 -79.9 -532.7 -354.5 average CI Carbon emission by fuel type (gCO2e per MJ) Source: Califor
Slide 14: Why RNG
14 Why RNG Accessible: Extensive network of fueling stations nationwide Affordable: Stabilized prices and lower maintenance costs Renewable: Made from organic waste, not drilling No diesel pollution: Reduces smog-forming NOX emissions by 90% Less maintenance: No high maintenance DPF-SCR diesel emiss
Slide 15: RNG volume potential in US (2040)
15 RNG volume potential in US (2040) Carbon-for-carbon reduction compared to diesel at multiples of RNG GGEs Note: Estimated gasoline gallons equivalent (GGE) assuming 125,000 mcf per gasoline gallon. Source: American Gas Association and ICF Animal Manure (GGEs) RNG (GGEs) Low case High case 1.8B 3.
Slide 16: Why RNG
16 Why RNG Accessible: Extensive network of fueling stations nationwide Affordable: Stabilized prices and lower maintenance costs Renewable: Made from organic waste, not drilling No diesel pollution: Reduces smog-forming NOX emissions by 90% Less maintenance: No high maintenance DPF-SCR diesel emiss
Slide 17: What we can earn
Who we are Why RNG What we can earn RNG supply RNG distribution Financial summary 17
Slide 18: What we can earn
18 What we can earn RNG Supply Distribution Adj. EBITDA ($3M) 2022E $250M 2026E Adj. EBITDA $68M 2022E $305M 2026E Adj. EBITDA $65M 2022E $555M 2026E GAAP net income (loss) GAAP net income (loss) GAAP net income (loss) ($3M) 2022E $173M 2026E ($54M) 2022E $112M 2026E ($57M) 2022E $285M 2026E See the
Slide 19: RNG supply
Who we are Why RNG What we can earn RNG supply RNG distribution Financial summary 19
Slide 20: RNG supply: dairy RNG production
Dairy RNG production – Produce RNG from dairy farms with JV partners Total Energies and BP – All gas produced goes to fill CLNE demand – Enhances overall economics of RNG to CLNE 20 RNG supply All roads lead to RNG – RNG can serve multiple alternative fuel solutions – Further growth opportunities to
Slide 21: Major energy partners
21 Major energy partners Up to $400 million of equity for RNG investment Largest shareholder of CLNE $400M+ pipeline $100 million of equity for RNG investment Joint marketing agreement for RNG supply $650M+ pipeline
Slide 22: RNG supply volume sales 2022E-2026E
2022E 2023E 2024E 2025E 2026E In Construction LOI/Executed In Negotiation Growth RNG sources Volume sales (GGEs, millions) Volume sales (GGEs, millions) Volume sales (GGEs, millions) 2022E 2023E 2024E 2025E 2026E CLNE Produced Dairy RNG 3rd Party Supply Contracts 194 268 351 379 474 2022E 2023E 2024
Slide 23: Where we are today: RNG supply
23 Where we are today: RNG supply Pipeline Closed/In contract 50M GGEs of investment opportunities in 11 states CLNE/JV Production
Slide 24: Millenkamp Dairy
24 Millenkamp Dairy On January 26, we announced an exciting RNG project at the Millenkamp Dairy in Southeastern Idaho One of the largest dairy farms in the United States Expected to produce 5M GGEs annually Part of BP Joint Venture
Slide 25: All roads lead to RNG
25 All roads lead to RNG Hydrogen reformer Station compression Compressor Hydrogen Electric RNG Electric generation RNG feedstock
Slide 26: Hydrogen station: Foothill Transit
26 Hydrogen station: Foothill Transit 20-year relationship with one of California’s largest transit agencies Initially provided CNG, now RNG for 300 buses Awarded Foothill’s first hydrogen station for 20 fuel cell buses Demonstrates importance of customer relationship
Slide 27: RNG distribution
Who we are Why RNG What we can earn RNG supply RNG distribution Financial summary 27
Slide 28: Distribution
28 Distribution 28 Fueling and customer network key to monetizing supply of RNG 550+ station network—scale and footprint advantage Our portfolio of RNG volume Growth drivers – Trucking – Customer optimization – NG engine expansion and improvement CA opportunity Policy view
Slide 29: Where we are: distribution
Public and private stations 550+ Natural gas fueling stations 29 Where we are: distribution
Slide 30: Distribution
30 Distribution 30 Fueling and customer network key to monetizing supply of RNG 550+ station network—scale and footprint advantage Our portfolio of RNG volume Growth drivers – Trucking – Customer optimization – NG engine expansion and improvement CA opportunity Policy view
Slide 31: How much RNG we plan to deliver in 2022
CA TX NY 31 How much RNG we plan to deliver in 2022 73% of vehicle fuel sold at Clean Energy’s stations in 2020 was RNG 128M GGEs 8M GGEs 11M GGEs US total 194M GGEs in 34 states California New York Texas
Slide 32: Distribution
32 Distribution 32 Fueling and customer network key to monetizing supply of RNG 550+ station network—scale and footprint advantage Our portfolio of RNG volume Growth drivers – Trucking – Customer optimization – NG engine expansion and improvement CA opportunity Policy view
Slide 33: Distribution growth driver: heavy-duty trucking
33 Distribution growth driver: heavy-duty trucking sector 40B+ gallons per year Sustainability goals increasing pressure while time is of the essence Large fleets create exponential growth – 3000 units (one fleet) can be 45M GGEs annually Current trucking customers include: – Amazon – Estes – UPS So
Slide 34: Customer example
34 Customer example Switching just 10% of their fleet from diesel to RNG 50% reduction in carbon emissions from vehicles Achieve carbon emissions goals in only 2.5 years = =
Slide 35: Distribution
35 Distribution 35 Fueling and customer network key to monetizing supply of RNG 550+ station network—scale and footprint advantage Our portfolio of RNG volume Growth drivers – Trucking – Customer optimization – NG engine expansion and improvement CA opportunity Policy view
Slide 36: Distribution growth driver: optimization of existing customer base
Transit – LA Metro – New York City MTA 36 Distribution growth driver: optimization of existing customer base Converting maintenance to fuel Refuse – Republic Services
Slide 37: Distribution
37 Distribution 37 Fueling and customer network key to monetizing supply of RNG 550+ station network—scale and footprint advantage Our portfolio of RNG volume Growth drivers – Trucking – Customer optimization – NG engine expansion and improvement CA opportunity Policy view
Slide 38: Distribution growth driver: Near Zero NG engines
38 Distribution growth driver: Near Zero NG engines Expansion to 15-liter: “game changer” per Cummins – “Initial interest in the 15-liter natural gas powertrain has far exceeded our expectations” per Cummins – 500hp, 1850 lb/ft torque, and weighs about 500 lbs less than 15L diesel per Cummins Cummin
Slide 39: Distribution
39 Distribution 39 Fueling and customer network key to monetizing supply of RNG 550+ station network—scale and footprint advantage Our portfolio of RNG volume Growth drivers – Trucking – Customer optimization – NG engine expansion and improvement CA opportunity Policy view
Slide 40: CA opportunity
40 CA opportunity CA RNG Demand Non-CA Network Dairy RNG $13.00/GGE* 125M+ GGE Landfill RNG $4.20/GGE* *gross values before value chain splits, CI–(354), RIN $2.85, LCFS $165.00, approximate values As we increase the supply of dairy RNG in CA, we will distribute the landfill RNG to other states Oppo
Slide 41: Distribution
41 Distribution 41 Fueling and customer network key to monetizing supply of RNG 550+ station network—scale and footprint advantage Our portfolio of RNG volume Growth drivers – Trucking – Customer optimization – NG engine expansion and improvement CA opportunity Policy view
Slide 42: Policy view
42 Policy view Adopted & in effect California, Oregon, British Columbia Other states targeted Maryland, Michigan, Nebraska, New Jersey, North Carolina, Pennsylvania, Wisconsin Under study/in regulatory development Canada Federal, Colorado, Illinois, Iowa Nevada, Ohio Legislation introduced Massachus
Slide 43: Federal RIN outlook
43 Federal RIN outlook Proposed RVO issued on December 7, 2021 Strong pricing fundamentals including – Significant year over year targets for cellulosic biofuels – Strong anticipated cellulosic waiver credit values – Higher commodity prices pushing D4/D5 values *represents actual biofuels production
Slide 44: Financial summary
Who we are Why RNG What we can earn RNG supply RNG distribution Financial summary 44
Slide 45: Financial summary
Volume (GGEs, millions) 45 RNG drives increase volume, revenue and EBTIDA – Delivery volumes increase at a 13% CAGR, while RNG supplied grows at 25% – EBITDA increase driven by growth in distribution margin & RNG supply investment earnings Financial summary $65 $136 $290 $467 $555 2022E 2023E 2024E
Slide 46: Adjusted EBITDA bridge
46 Adjusted EBITDA bridge Note: in millions See the Appendix for a reconciliation of Adjusted EBITDA.
Slide 47: Thank you
Thank you We turn sustainability goals into reality.
Slide 48: Questions & Answers
Questions & Answers Andrew J. Littlefair President and CEO Robert Vreeland Chief Financial Officer Will Flanagan Vice President, Strategic Development RNG Investment 48
Slide 49: Conference call information
49 Conference call information (888) 985-1969 Participant toll-free dial-in number: (873) 415-0181 Participant international dial-in number: 3562397 Conference ID:
Slide 50: Appendix
Appendix 50
Slide 51: Financial metrics
2022E 2023E 2024E 2025E 2026E Volumes (GGEs) 454 547 610 684 741 Revenues $400 $484 $609 $780 $943 SG&A 101 118 125 138 152 GAAP net income (57) (117) (31) 171 285 Adjusted net income 8 9 114 276 355 Adjusted EBITDA 65 136 290 467 555 Cash flow from operations 57 75 127 169 239 Capex (71) (143) (75)
Slide 52: Adjusted EBITDA reconciliation
52 Adjusted EBITDA reconciliation 2022E 2023E 2024E 2025E 2026E Net income (loss) attributable to Clean Energy Fuels Corp. $ (57) $ (117) $ (31) $ 171 $ 285 Income tax expense 0 - - - - Interest expense 9 46 62 57 48 Interest income (1) (1) (1) (1) (1) Depreciation and amortization 49 66 70 74 76 St
Slide 53: Adjusted EBITDA reconciliation (RNG Supply and Distribution)
53 Adjusted EBITDA reconciliation 2022E 2023E 2024E 2025E 2026E Net income (loss) attributed to Clean Energy Fuels Corp. $ (3) $ (25) $ 32 $ 162 $ 173 Depreciation and amortization 0 17 45 61 77 Adjusted EBITDA Reconciliation (RNG Supply) $ (3) $ (8) $ 77 $ 223 $ 250 2022E 2023E 2024E 2025E 2026E Ne
Slide 54: Adjusted net income (loss) reconciliation
54 Adjusted net income (loss) reconciliation 2022E 2023E 2024E 2025E 2026E Net income (loss) attributed to Clean Energy Fuels Corp. $ (57) $ (117) $ (31) $ 171 $ 285 Amazon warrant charges 44 96 115 75 40 Stock-based compensation 20 30 30 30 30 Adjusted Net Income (Loss) (CLNE) $ 8 $ 9 $ 114 $ 276 $