Clean Energy Fuels (CLNE) Q2 2026 Earnings Call Transcript

Welcome, everyone, to the Clean Energy Fuels Second Quarter 2026 Earnings Conference Call. All participants are in listen-only mode at this time, with the opportunity to ask questions during the Q&A session. The call is being recorded and will be available for replay on the company's website for 30 days. Please note that the call contains forward-looking statements which may not come to pass.

Clean Energy reported $106 million in revenue, $63 million of RNG sold, and $16 million of adjusted EBITDA in the second quarter ended June 30, 2026. These results were in line with expectations and keep the company on track for its annual financial outlook. The company's balance sheet ended the quarter at $138 million in cash and short-term investments.

The upstream RNG production business saw improvement in the second quarter, driven by better weather and continued ramp-up at the company's two largest projects in Texas and Idaho. The company expects further improvement in the second half of the year. In addition to its eight operating RNG projects, Clean Energy has three projects under construction through a joint venture with Moss Energy Works, with two expected to come online later in the year and the final project finishing up next year.

The Section 45Z clean fuel production credit is an important value driver for the company's RNG projects. The company is awaiting the finalization of the 45Z rules and credit values, expected in the fourth quarter. The finalized rules and updated Greek model are expected to positively impact the company's upstream results in 2026 and beyond.

Heavy-duty trucking RNG fuel volume held steady during the quarter, with some fleets adding small numbers of X15N-equipped trucks. However, uncertainty surrounding the final 2027 EPA standards has led to a large prebuy of legacy diesel trucks. Clean Energy has been increasing its advertising to target the trucking industry, emphasizing RNG's low and stable price compared to diesel.

The company also recently completed two additional stations in British Columbia, Canada, completing a Western Canadian natural gas fueling network. Canada's high diesel taxes and high truck mileage make the cost comparison with natural gas even more attractive.