CLNE 10-Q

Clean Energy Fuels Corp. (CLNE)

10-Q 2023-11-09 For: 2023-09-30

View Original

Added on April 08, 2026

Search and read filings like this one from Claude or ChatGPT with the SEC filings MCP server →

Delaware	33-0968580
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)


Large accelerated filer ☒	Accelerated filer ☐

Non-accelerated filer ☐	Smaller reporting company ☐

	Emerging growth company ☐

PART I.—FINANCIAL INFORMATION	3
Item 1.—Financial Statements (Unaudited)	3
Item 2.—Management’s Discussion and Analysis of Financial Condition and Results of Operations	30
Item 3.—Quantitative and Qualitative Disclosures about Market Risk	42
Item 4.—Controls and Procedures	43

PART II.—OTHER INFORMATION	45
Item 1.—Legal Proceedings	45
Item 1A.—Risk Factors	45
Item 2.—Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities	59
Item 3.—Defaults Upon Senior Securities	59
Item 4.—Mine Safety Disclosures	59
Item 5.—Other Information	59
Item 6.—Exhibits	59


	December 31,		September 30,
	2022		2023
Assets
Current assets:
Cash, cash equivalents and current portion of restricted cash	$	125,950	$	27,099
Short-term investments		139,569		149,325
Accounts receivable, net of allowance of $1,375 and $1,471 as of December 31, 2022 and September 30, 2023, respectively		91,430		87,550
Other receivables		17,026		36,509
Inventory		37,144		40,472
Prepaid expenses and other current assets		60,601		52,082
Total current assets		471,720		393,037
Operating lease right-of-use assets		52,586		74,868
Land, property and equipment, net		264,068		305,988
Notes receivable and other long-term assets, net		30,467		26,560
Investments in other entities		193,273		193,807
Goodwill		64,328		64,328
Intangible assets, net		5,915		6,365
Total assets	$	1,082,357	$	1,064,953
Liabilities and Stockholders' Equity
Current liabilities:
Current portion of debt	$	93	$	38
Current portion of finance lease obligations		948		916
Current portion of operating lease obligations		4,206		5,712
Accounts payable		44,435		48,794
Accrued liabilities		90,079		83,141
Deferred revenue		5,970		3,523
Derivative liabilities, related party		2,415		3,723
Total current liabilities		148,146		145,847
Long-term portion of debt		145,471		144,913
Long-term portion of finance lease obligations		2,134		1,808
Long-term portion of operating lease obligations		48,911		71,341
Long-term portion of derivative liabilities, related party		1,430		—
Other long-term liabilities		8,794		9,432
Total liabilities		354,886		373,341
Commitments and contingencies (Note 17)
Stockholders’ equity:
Preferred stock, $0.0001 par value. 1,000,000 shares authorized; no shares issued and outstanding		—		—
Common stock, $0.0001 par value. 454,000,000 shares authorized; 222,437,429 shares and 222,987,248 shares issued and outstanding as of December 31, 2022 and September 30, 2023, respectively		22		22
Additional paid-in capital		1,553,668		1,598,634
Accumulated deficit		(829,975)		(910,785)
Accumulated other comprehensive loss		(3,722)		(3,280)
Total Clean Energy Fuels Corp. stockholders’ equity		719,993		684,591
Noncontrolling interest in subsidiary		7,478		7,021
Total stockholders’ equity		727,471		691,612
Total liabilities and stockholders’ equity	$	1,082,357	$	1,064,953


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2022		2023		2022		2023
Revenue:
Product revenue	$	113,360	$	81,279	$	271,720	$	276,635
Service revenue		12,327		14,292		34,688		41,667
Total revenue		125,687		95,571		306,408		318,302
Operating expenses:
Cost of sales (exclusive of depreciation and amortization shown separately below):
Product cost of sales		79,710		65,427		203,258		240,655
Service cost of sales		7,565		9,002		20,314		25,204
Selling, general and administrative		26,501		29,117		80,909		87,314
Depreciation and amortization		20,539		13,389		42,485		34,960
Total operating expenses		134,315		116,935		346,966		388,133
Operating loss		(8,628)		(21,364)		(40,558)		(69,831)
Interest expense		(670)		(3,893)		(4,479)		(12,612)
Interest income		1,019		2,551		1,773		8,034
Other income, net		25		14		59		85
Loss from equity method investments		(728)		(3,304)		(3,598)		(7,109)
Loss before income taxes		(8,982)		(25,996)		(46,803)		(81,433)
Income tax (expense) benefit		(106)		47		(223)		166
Net loss		(9,088)		(25,949)		(47,026)		(81,267)
Loss attributable to noncontrolling interest		115		137		627		457
Net loss attributable to Clean Energy Fuels Corp.	$	(8,973)	$	(25,812)	$	(46,399)	$	(80,810)
Net loss attributable to Clean Energy Fuels Corp. per share:
Basic and diluted	$	(0.04)	$	(0.12)	$	(0.21)	$	(0.36)
Weighted-average common shares outstanding:
Basic and diluted		222,239,376		222,973,575		222,409,802		222,867,303


	Clean Energy Fuels Corp.				Noncontrolling Interest				Total
	Three Months Ended				Three Months Ended				Three Months Ended
	September 30,				September 30,				September 30,
	2022		2023		2022		2023		2022		2023
Net loss	$	(8,973)	$	(25,812)	$	(115)	$	(137)	$	(9,088)	$	(25,949)
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments, net of $0 tax in 2022 and 2023		(1,901)		(864)		—		—		(1,901)		(864)
Unrealized gain (loss) on available-for-sale securities, net of $0 tax in 2022 and 2023		(187)		(1,097)		—		—		(187)		(1,097)
Total other comprehensive income (loss)		(2,088)		(1,961)		—		—		(2,088)		(1,961)
Comprehensive loss	$	(11,061)	$	(27,773)	$	(115)	$	(137)	$	(11,176)	$	(27,910)


								Accumulated
				Additional				Other		Noncontrolling		Total
	Common Stock			Paid-In		Accumulated		Comprehensive		Interest in		Stockholders’
	Shares	Amount		Capital		Deficit		Loss		Subsidiary		Equity
Balance, December 31, 2021	222,684,923	$	22	$	1,519,918	$	(771,242)	$	(1,622)	$	8,335	$	755,411
Issuance of common stock	585,775		—		273		—		—		—		273
Repurchase of common stock	(511,010)				(3,001)		—		—		—		(3,001)
Stock-based compensation	—		—		8,253		—		—		—		8,253
Stock-based sales incentive charges	—		—		1,721		—		—		—		1,721
Net loss	—		—		—		(24,191)		—		(385)		(24,576)
Other comprehensive income	—		—		—		—		249		—		249
Balance, March 31, 2022	222,759,688		22		1,527,164		(795,433)		(1,373)		7,950		738,330
Issuance of common stock	96,728		—		300		—		—		—		300
Repurchase of common stock	(679,244)		—		(3,121)		—		—		—		(3,121)
Stock-based compensation	—		—		6,468		—		—		—		6,468
Stock-based sales incentive charges	—		—		2,307		—		—		—		2,307
Net loss	—		—		—		(13,235)		—		(127)		(13,362)
Other comprehensive loss	—		—		—		—		(1,416)		—		(1,416)
Balance, June 30, 2022	222,177,172		22		1,533,118		(808,668)		(2,789)		7,823		729,506
Issuance of common stock	236,736		—		744		—		—		—		744
Stock-based compensation	—		—		5,964		—		—		—		5,964
Stock-based sales incentive charges	—		—		3,685		—		—		—		3,685
Net loss	—		—		—		(8,973)		—		(115)		(9,088)
Other comprehensive loss	—		—		—		—		(2,088)		—		(2,088)
Balance, September 30, 2022	222,413,908	$	22	$	1,543,511	$	(817,641)	$	(4,877)	$	7,708	$	728,723


		Nine Months Ended September 30,
	2022		2023
Cash flows from operating activities:
Net loss	$	(47,026)	$	(81,267)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization		42,485		34,960
Provision for credit losses and inventory		1,606		1,486
Stock-based compensation expense		20,685		18,280
Stock-based sales incentive charges		15,500		44,473
Change in fair value of derivative instruments		1,606		304
Amortization of discount and debt issuance cost		(862)		(3,475)
Loss (gain) on disposal of property and equipment		40		(134)
Loss on extinguishment of debt		2,268		—
Asset impairments and other charges		—		555
Loss from equity method investments		3,598		7,109
Non-cash lease expense		2,602		4,629
Deferred income taxes		143		(235)
Changes in operating assets and liabilities:
Accounts and other receivables		(19,139)		(7,046)
Inventory		(7,601)		(6,009)
Prepaid expenses and other assets		1,583		(3,918)
Operating lease liabilities		(2,589)		(2,975)
Accounts payable		5,937		4,204
Deferred revenue		(2,324)		(2,296)
Accrued liabilities and other		13,216		(7,862)
Net cash provided by (used in) operating activities		31,728		783
Cash flows from investing activities:
Purchases of short-term investments		(292,930)		(334,272)
Maturities and sales of short-term investments		312,239		329,403
Purchases of and deposits on property and equipment		(29,091)		(67,298)
Grant proceeds for capital projects		—		1,947
Disbursements for loans receivable		(810)		(3,500)
Proceeds from paydowns, maturities, and sales of loans receivables		480		1,835
Cash received from sale of certain assets of subsidiary, net		3,885		—
Investments in other entities		(89,700)		(5,500)
Payment and deposits on equipment and manure rights for ADG RNG production projects		(4,915)		(17,709)
Proceeds received for joint development and construction of station projects		—		3,137
Advance to DR JV		—		(5,500)
Proceeds from settlement of insurance claims		—		495
Proceeds from disposal of property and equipment		129		230
Net cash (used in) investing activities		(100,713)		(96,732)
Cash flows from financing activities:
Issuance of common stock		1,317		175
Repurchase of common stock		(6,122)		—
Payments of tax withholdings on net settlement of equity awards		—		(175)
Fees paid for lender and debt issuance costs		(50)		(1,732)
Proceeds for Adopt-a-Port program		1,100		390
Repayment of proceeds for Adopt-a-Port program		(828)		(1,071)
Proceeds from debt instruments		14,000		255
Repayments of debt instruments and finance lease obligations		(21,167)		(870)
Payments of debt extinguishment costs		(2,186)		—
Net cash (used in) financing activities		(13,936)		(3,028)
Effect of exchange rates on cash, cash equivalents and restricted cash		(412)		126
Net decrease in cash, cash equivalents and restricted cash		(83,333)		(98,851)
Cash, cash equivalents and restricted cash, beginning of period		106,456		125,950
Cash, cash equivalents and restricted cash, end of period	$	23,123	$	27,099
Supplemental disclosure of cash flow information:
Income taxes paid	$	50	$	57
Interest paid, net of $0 and $1,673 capitalized, respectively	$	1,373	$	11,927


			Gross
	Amortized		Unrealized		Estimated
	Cost		Gain (Loss)		Fair Value
Zero coupon bonds	$	74,524	$	(365)	$	74,159
U.S. government securities		64,861		19		64,880
Certificates of deposit		530		—		530
Total short-term investments	$	139,915	$	(346)	$	139,569


	Gross Amounts		Gross Amounts		Net Amount
	Recognized		Offset		Presented
Assets:
Fueling agreements:
Prepaid expenses and other current assets	$	1,640	$	—	$	1,640
Notes receivable and other long-term assets, net		5,115		—		5,115
Total derivative assets	$	6,755	$	—	$	6,755
Liabilities:
Commodity swaps:
Current portion of derivative liabilities, related party	$	2,415	$	—	$	2,415
Long-term portion of derivative liabilities, related party		1,430		—		1,430
Total derivative liabilities	$	3,845	$	—	$	3,845


	December 31, 2022			September 30, 2023
	Volumes	Weighted-Average Price per		Volumes	Weighted-Average Price per
Year	(Diesel Gallons)	Diesel Gallon		(Diesel Gallons)	Diesel Gallon
2023	5,000,000	$	3.18	1,250,000	$	3.18
2024	1,875,000	$	3.18	1,875,000	$	3.18


	December 31, 2022			September 30, 2023
Significant Unobservable Inputs	Input Range	Weighted Average		Input Range	Weighted Average
ULSD Gulf Coast Forward Curve	$2.35 - $2.59	$	2.48	$2.30 - $2.57	$	2.41
Historical Differential to PADD 3 Diesel	$0.88 - $1.62	$	1.13	$0.92 - $1.62	$	1.15
Historical Differential to PADD 5 Diesel	$1.89 - $3.00	$	2.30	$1.89 - $3.10	$	2.41


	December 31, 2022		Level 1		Level 2		Level 3
Assets:
Available-for-sale securities:
U.S. government securities ⁽¹⁾	$	64,880	$	64,880	$	—	$	—
Zero coupon bonds ⁽¹⁾		74,159		—		74,159		—
Convertible promissory note ⁽⁴⁾		1,880		—		—		1,880
Certificates of deposit ⁽¹⁾		530		—		530		—
Embedded derivatives ⁽³⁾		6,755		—		—		6,755
Liabilities:
Commodity swap contracts ⁽²⁾	$	3,845	$	—	$	—	$	3,845


	Assets:		Assets:		Assets:		Liabilities:		Liabilities:
	Commodity		Embedded		Convertible		Commodity		Embedded
	Swap Contracts		Derivatives		Promissory Note		Swap Contracts		Derivatives
Balance as of June 30, 2022	$	—	$	11,345	$	—	$	(11,034)	$	(32)
Settlements, net		—		—		—		1,942		—
Total gain (loss)		—		(4,899)		—		3,486		(21)
Balance as of September 30, 2022	$	—	$	6,446	$	—	$	(5,606)	$	(53)

Balance as of June 30, 2023	$	—	$	6,837	$	4,295	$	(2,779)	$	(80)
Settlements, net		—		—		—		1,893		—
Total gain (loss)		—		(508)		(1,084)		(2,837)		80
Purchases		—		—		1,243		—		—
Equity method investment loss		—		—		(926)		—		—
Balance as of September 30, 2023	$	—	$	6,329	$	3,528	$	(3,723)	$	—

Change in unrealized gain (loss) for the three months ended September 30, 2022 included in earnings	$	—	$	(4,899)	$	—	$	5,428	$	(21)
Change in unrealized gain (loss) for the three months ended September 30, 2023 included in earnings	$	—	$	(508)	$	—	$	(944)	$	80
Change in unrealized gain (loss) for the three months ended September 30, 2023 included in other comprehensive income (loss)	$	—	$	—	$	(1,084)	$	—	$	—


	December 31, 2022
			Unamortized Debt		Balance, Net of
	Principal Balance		Financing Costs		Financing Costs
Riverstone term loan	$	150,000	$	4,529	$	145,471
Other debt		93		—		93
Total debt		150,093		4,529		145,564
Less amounts due within one year		(93)		—		(93)
Total long-term debt	$	150,000	$	4,529	$	145,471


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2022		2023		2022		2023
Product revenue:
Volume-related
Fuel sales⁽¹⁾	$	78,512	$	60,006	$	204,224	$	220,168
Change in fair value of derivative instruments⁽²⁾		508		(1,372)		(1,606)		(304)
RIN Credits		9,270		6,784		26,997		16,664
LCFS Credits		2,595		2,846		10,114		7,618
AFTC ⁽³⁾		16,057		5,422		16,279		14,977
Total volume-related product revenue		106,942		73,686		256,008		259,123
Station construction sales		6,418		7,593		15,712		17,512
Total product revenue		113,360		81,279		271,720		276,635
Service revenue:
Volume-related, O&M services		11,982		13,646		33,727		39,603
Other services		345		646		961		2,064
Total service revenue		12,327		14,292		34,688		41,667
Total revenue	$	125,687	$	95,571	$	306,408	$	318,302


	December 31,		September 30,
	2022		2023
Accounts receivable, net	$	91,430	$	87,550

Contract assets - current	$	6,063	$	10,374
Contract assets - non-current		2,976		2,563
Contract assets - total	$	9,039	$	12,937

Contract liabilities - current	$	5,477	$	2,586
Contract liabilities - non-current		—		151
Contract liabilities - total	$	5,477	$	2,737



Significant Unobservable Inputs	December 31, 2022	September 30, 2023
Risk-free interest rate	4.57%	5.52%
Credit adjustment	8.36%	6.65%
Credit adjusted discount rate	12.93%	12.17%


	December 31,		September 30,
	2022		2023
Loans to customers to finance vehicle purchases	$	523	$	309
Accrued customer billings		4,910		8,703
Fuel tax credits		9,462		15,143
Other		2,131		12,354
Total other receivables	$	17,026	$	36,509


		Warrant
		Shares
Outstanding and unvested as of December 31, 2022		42,314,667
Granted		—
Vested		(2,938,520)
Outstanding and unvested as of September 30, 2023		39,376,147


Fiscal year:
Remainder of 2023	$	240
2024		962
2025		962
2026		985
2027		1,105
Thereafter		1,218
Total minimum lease payments		5,472
Less amount representing interest		(1,165)
Present value of lease receivables	$	4,307


	Year Ended						Three Months Ended				Nine Months Ended
Fuel volume, GGEs⁽¹⁾ sold (in millions),	December 31,						September 30,				September 30,
correlating to total volume-related product revenue	2020		2021		2022		2022		2023		2022		2023
RNG		153.3		167.0		198.2		54.1		56.7		143.8		168.7
Conventional natural gas		82.1		78.8		69.6		19.3		17.1		53.9		46.6
Total fuel volume		235.4		245.8		267.8		73.4		73.8		197.7		215.3

Exhibit Number		Description
31.1*		Certification of Andrew J. Littlefair, President and Chief Executive Officer, pursuant to Rule 13a-14(a) or 15d-14(a) of the Exchange Act, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2*		Certification of Robert M. Vreeland, Chief Financial Officer, pursuant to Rule 13a-14(a) or 15d-14(a) of the Exchange Act, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1**		Certification of Andrew J. Littlefair, President and Chief Executive Officer, and Robert M. Vreeland, Chief Financial Officer, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101*		The following materials from the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2023, formatted in iXBRL (Inline eXtensible Business Reporting Language):
		(i) Condensed Consolidated Balance Sheets as of December 31, 2022 and September 30, 2023;
		(ii) Condensed Consolidated Statements of Operations for the Three and Nine months Ended September 30, 2022 and 2023;
		(iii) Condensed Consolidated Statements of Comprehensive Loss for the Three and Nine months Ended September 30, 2022 and 2023;
		(iv) Condensed Consolidated Statements of Stockholders’ Equity for the Three and Nine months Ended September 30, 2022 and 2023;
		(v) Condensed Consolidated Statements of Cash Flows for the Nine months Ended September 30, 2022 and 2023; and
		(vi) Notes to Condensed Consolidated Financial Statements.
104*		Cover Page Interactive Data File (formatted as iXBRL and contained in Exhibit 101).

	CLEAN ENERGY FUELS CORP.

Date: November 9, 2023	By:	/s/ ROBERT M. VREELAND
		Robert M. Vreeland
		Chief Financial Officer (Principal financial officer and duly authorized to sign on behalf of the registrant)