Clean Energy Fuels Corp. 2026 Q2 Earnings Call

Please go ahead. Thank you, operator.

Earlier this afternoon, Clean Energy released financial results for the second quarter ending June 30th, 2026. If you did not receive the release, it is available on the investor relations section of the company's website, where the call is also being webcast. There will be a replay available on the website for 30 days. Before we begin, we'd like to remind you that some of the information contained in the news release and on this conference call contains forward-looking statements that involve risks, uncertainties, and assumptions that are difficult to predict. Such forward-looking statements are not a guarantee of performance, and the company's actual results could differ materially from those contained in such statements. Several factors that could cause or contribute to such differences are described in detail in the Risk Factors section of Clean Energy's Form 10-Q filed today.

These forward-looking statements speak only as of the date of this release. The company undertakes no obligation to publicly update any forward-looking statements or supply new information regarding the circumstances after the date of this release. The company's non-GAAP EPS and adjusted EBITDA will be reviewed on the call and exclude certain expenses that the company's management does not believe are indicative of the company's core business operating results. Non-GAAP financial measures should be considered in addition to results prepared in accordance with GAAP and should not be considered as a substitute for or superior to GAAP results. The directly comparable GAAP information, reasons why management uses non-GAAP information, the definition of non-GAAP EPS and adjusted EBITDA, and a reconciliation between these non-GAAP and GAAP figures is provided in the company's press release, which has been furnished to the SEC on Form 8-K today.

With that, I will turn the call over to our President and Chief Executive Officer, Clay Corbus.

Thank you, Tom. Good afternoon, everyone. Today, we reported solid results for the second quarter. $106 million of revenue, $63 million of RNG sold, and $16 million of adjusted EBITDA. These results were in line with our expectations and keep us on track for our annual financial outlook, which we are maintaining. We kept our balance sheet strong and finished the quarter with $138 million in cash and short-term investments. Our upstream RNG production business saw improvement in the second quarter, helped by better weather compared to the first quarter, and continued ramp-up at our two largest projects, South Fork in Texas and East Valley in Idaho. There is still more work to be done as we ramp production and improve operations across our portfolio, and we expect continued improvement in the second half of the year.

In addition to our eight operating RNG projects, we have three projects under construction through our joint venture with Maas Energy Works. We continue to make good progress and expect two projects to come online later this year, with the final project finishing up next year. The Section 45Z clean fuel production credit is an important value driver for our RNG projects. We continue to await Treasury's finalization of the 45Z rules and credit values, which is now expected in the fourth quarter. We believe the finalized rule and updated GREET model, once released, will positively impact our upstream results in 2026 and the years ahead. Our RNG fuel volume from heavy-duty trucking held steady during the quarter. We are seeing a handful of fleets add small numbers of trucks equipped with the X15N.

With the uncertainty surrounding the final 2027 emission standards recently released by the EPA, there has been a large pre-buy of legacy diesel trucks. At the same time, we and others remain deeply engaged with many fleets that continue to show strong interest in RNG, particularly with higher diesel prices. Over the past four to five months, we increased our advertising to target the trucking industry, emphasizing RNG's low, stable price compared to diesel. That effort has generated measurable interest and leads with potential new customers. I also hope you saw the press release we distributed earlier this week about the growing natural gas heavy-duty truck market in Canada. We recently completed two additional stations, including a critical node in British Columbia, just outside Vancouver, that completes a Western Canadian natural gas fueling network.

Canada has extremely high taxes on diesel and high truck mileage, which makes the cost comparison with natural gas all that much more attractive. With the Cummins X15N arriving in the Canadian market, fleets that use a lot of fuel are responding very positively. As I mentioned on our last call, our legacy markets in transit and refuse continue to provide a solid foundation for us. 25 years after the first CNG buses rolled into cities, the transit market continues to be strong with new opportunities and new wins. In fact, just last week, the Federal Transit Administration announced that their funding will prioritize low-emission solutions like CNG over zero-emission buses. Our fueling expertise also creates opportunities beyond RNG.

Clean Energy has been awarded more contracts than any other company to build hydrogen fueling stations for transit agencies that are expanding with fuel cell buses, reinforcing our leadership in alternative fuel infrastructure. Last week, we announced the latest and largest hydrogen project to date, a $27 million contract with Orange County Transportation Authority to design and build a new private station. This station will support OCTA's existing fleet of 10 fuel cell buses plus the 40 buses the agency plans to add, demonstrating both the strength of our customer relationships and scalability and flexibility of our platform. With nearly 30 years operating in the natural gas sector, our in-house capabilities also extend beyond vehicle fueling and RNG production. As we all know, the country is experiencing a rapidly evolving energy market, and power grids are overtaxed.

We see emerging opportunities for Clean Energy and our ability to serve independent power solutions. Today, no one has nationwide compression capabilities that we do. As CNG doesn't have to go into a vehicle tank, large volumes can be put into tube trailers and transported to facilities that need power but may have issues hooking up with a local grid or are not proximate to a natural gas pipeline. We can solve that problem. We currently serve customers across a range of natural gas solutions. As demand for reliable, cleaner energy grows, customers are increasingly looking to us for these solutions. Let me share a few examples. As many of you know, we deliver LNG marine bunker fuel to Pasha at the Port of Long Beach and have been doing this for the past three years.

We produce the LNG at our plant in Boron, California, transport it to the port using our fleet of LNG cryogenic tanker trucks, and provide fueling services that enable Pasha's container ships to continually operate on cleaner-burning LNG. Our LNG team has experience that includes designing and building LNG systems for gas to power applications. As an example, we were recently awarded contracts for two projects in Puerto Rico that will provide energy security and resiliency for a pharmaceutical manufacturing facility owned by a global healthcare provider and another one for a six-megawatt power plant. For customers that would rather operate their facilities with cleaner, less expensive natural gas versus fuel oil or cannot get enough electric power, we deliver compressed natural gas through our fleet of CNG tube trailers to commercial and industrial customers that do not have pipeline access.

We have long-standing relationships with large volume customers, but we are also discovering new customers and new markets. Just recently, we signed a contract to supply CNG to a large fulfillment center in California that needs a bridge fuel solution for its power generation while it indefinitely awaits a utility connection. Clean Energy is uniquely positioned to provide natural gas solutions to customers across multiple fuel types, multiple applications, and multiple regions in the U.S. and Canada. We have room to grow here, and we are excited about it. Finally, I want to recognize Bart Frabotta, who we recently appointed as our Chief Operating Officer. Improving execution and operation performance and driving technology throughout the company is a top priority for us. Bart is the right leader for that work. Over his 15 years at Clean Energy, he has been central to building and running our company.

I look forward to what his leadership will help us accomplish. With that, it's Rob's turn.