Clean Energy Announces the Commencement of Stock Repurchase Program

Rhea-AI Summary

Clean Energy Fuels Corp. (CLNE) has announced the resumption of its Share Repurchase Program, with approximately $26.5 million remaining capacity from the original $50 million program initiated in March 2020. The company, holding over $200 million in cash as of December 31, 2024, aims to opportunistically repurchase shares while maintaining funding for growth initiatives.

CEO Andrew J. Littlefair highlighted the company's strong Q4 and full-year 2024 performance, expressing optimism for 2025. A key development is the delivery of trucks equipped with Cummins' new X15N natural gas engine for the heavy-duty market. The company views its stock as undervalued despite market uncertainties around environmental commodity prices and policy.

Repurchases may be executed through various methods including open market purchases and privately negotiated transactions, subject to market conditions and securities laws. JP Morgan Securities will manage open market repurchases under the program, which has no expiration date but can be suspended at any time.

Positive

• Strong cash position with over $200 million on balance sheet
• Solid Q4 and full-year 2024 performance
• $26.5 million available for share repurchases
• Strategic expansion in heavy-duty market with new Cummins X15N engine trucks

Negative

• Uncertainty in environmental commodity prices and policy
• Market volatility affecting stock valuation

Insights

Financial Analyst

Clean Energy's decision to resume its share repurchase program is a significant positive signal to the market. With $26.5 million remaining in the program against a market cap of just $372 million, this represents potential repurchases of approximately 7% of outstanding shares at current prices—a meaningful percentage that should provide solid price support.

What's particularly impressive is the company's financial position. With $200+ million in cash as of December 2024 (representing over 53% of their entire market capitalization), Clean Energy has substantial financial flexibility. This cash cushion allows them to pursue share repurchases while maintaining adequate resources for operational needs and growth initiatives.

The timing of this announcement reveals management's confidence in their valuation. By explicitly stating they believe their stock is "undervalued relative to operations and opportunity," executives are making a clear statement about their internal assessment of fair value. This perspective gains credibility considering their reported "solid" Q4 and full-year 2024 results.

The flexible structure of the program—no expiration date and the ability to be suspended as needed—demonstrates prudent capital management. This approach allows Clean Energy to opportunistically acquire shares when they perceive the greatest value disconnect while preserving optionality should market conditions change.

Alternative Energy Industry Expert

This announcement contains key insights beyond the financial mechanics of the share repurchase. Most notably, CEO Littlefair's comments indicate that renewable natural gas (RNG) is gaining commercial traction while competing clean transportation technologies are struggling to establish market footholds.

The reference to first deliveries of trucks equipped with Cummins' new X15N natural gas engine represents a critical industry milestone. This new engine specifically targets the heavy-duty transportation sector—one of the most challenging segments to decarbonize—and could accelerate RNG adoption in long-haul trucking where battery electric solutions face significant range and infrastructure challenges.

Clean Energy's established network of fueling infrastructure provides them a significant competitive advantage as this adoption curve accelerates. Their strategic positioning allows them to benefit from both increased natural gas vehicle deployment and the premium pricing available for the renewable natural gas they deliver through this infrastructure.

The company's acknowledgment of "uncertainty around environmental commodity prices and policy" reflects realistic assessment of regulatory risks, particularly regarding Low Carbon Fuel Standard (LCFS) credit values and Renewable Identification Numbers (RINs). However, the decision to repurchase shares despite these uncertainties suggests management believes their core business fundamentals remain strong even if these supplementary revenue streams fluctuate.

NEWPORT BEACH, Calif.--(BUSINESS WIRE)-- Clean Energy Fuels Corp. (Nasdaq: CLNE) today announced that its Board of Directors has determined to resume repurchases of shares of the Company’s common stock pursuant to the Company’s existing Share Repurchase Program. The Program was initiated in March 2020 and the capacity for repurchases under the Program was increased to $50 million in December 2021. There is approximately $26.5 million of remaining capacity for repurchase under the Program.

Clean Energy renewable natural gas (RNG) station canopy.

With over $200 million cash on its balance sheet as of December 31, 2024, resuming the Program will allow the Company to opportunistically repurchase shares, while maintaining the ability to fund its growth initiatives.

“We recently reported very solid fourth quarter and full year 2024-year results and look to 2025 with optimism,” said Andrew J. Littlefair, Clean Energy president and CEO. “At a time when other alternatives are having a hard time finding their footing in the fleet transportation market, the renewable natural gas (RNG) solution is picking up steam. The most significant development is the deliveries of the first trucks equipped with Cummins’ new X15N natural gas engine for the heavy-duty market. While we recognize there is uncertainty in the marketplace, both on a macro level and specifically around environmental commodity prices and policy, we feel our stock is undervalued relative to our operations and opportunity. The decision to resume share repurchases reflects our confidence in the financial stability and growth potential of our business.”

Repurchases under the Program may be effected from time to time through open market purchases, privately negotiated transactions, structured or derivative transactions, including accelerated share repurchase transactions, or other methods of acquiring shares, in each case subject to market conditions, contractual limitations, applicable securities laws and other relevant factors. Repurchases may also be made under Rule 10b5-1 plans. The Program does not have an expiration date, may be suspended or discontinued at any time, and does not obligate the Company to repurchase any dollar amount or number of shares.

JP Morgan Securities LLC will have the authority to repurchase the Company’s shares in the open market under the Program.

About Clean Energy

Clean Energy Fuels Corp. is the country’s largest provider of the cleanest fuel for the transportation market. Our mission is to decarbonize transportation through the development and delivery of renewable natural gas (RNG), a sustainable fuel derived by capturing methane from organic waste. Clean Energy allows thousands of vehicles, from airport shuttles to city buses to waste and heavy-duty trucks, to reduce their amount of climate-harming greenhouse gas. We operate a vast network of fueling stations across the U.S. and Canada as well as RNG production facilities at dairy farms. Visit www.cleanenergyfuels.com and follow @ce_renewables on X and LinkedIn.

Forward-Looking Statements:

Certain matters within this press release are discussed using forward-looking language as specified in the Private Securities Litigation Reform Act of 1995, and, as such, may involve known and unknown risks, uncertainties and other factors that may cause the actual results or performance to differ from those projected in the forward-looking statement. These forward-looking statements include comments relating to, among other things, the timing, manner, price, or amount of repurchases, if any, under the Company’s Program and the factors the Company’s management may consider in deciding whether to effect repurchases under the Program. For a description of factors that may cause the Company’s actual results or performance to differ from its forward-looking statements, please review the information under the heading “Risk Factors” included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024, and other documents filed by the Company with the Securities and Exchange Commission.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250325975758/en/

Clean Energy media contact:

Gary Foster

1-949-437-1113

gary.foster@cleanenergyfuels.com



Clean Energy investor contact:

Thomas Driscoll

1-949-437-1191

thomas.driscoll@cleanenergyfuels.com

Source: Clean Energy Fuels Corp.

FAQ

How much remaining capacity is available in CLNE's share repurchase program?

Clean Energy Fuels has approximately $26.5 million remaining capacity in its share repurchase program from the original $50 million authorized.

What is Clean Energy's cash position as of December 31, 2024?

The company reported over $200 million in cash on its balance sheet as of December 31, 2024.

Who will execute CLNE's share repurchase program in the open market?

JP Morgan Securities has been authorized to repurchase the company's shares in the open market under the program.

What significant development did Clean Energy highlight for its heavy-duty market?

The company highlighted the delivery of the first trucks equipped with Cummins' new X15N natural gas engine for the heavy-duty market.

When was CLNE's share repurchase program initially established?

The Share Repurchase Program was initially established in March 2020, with an increase to $50 million in December 2021.