Clean Energy Fuels Corp. (NASDAQ:CLNE) Q4 2022 Earnings Call Transcript

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We’ve built — building stations is not new for us, right. In our history, we’ve built close to 750 station projects. We actually — we — one year, you remember, Rob, we built 87 truck stops in one year. And then I think the next year was a like number. So building stations is not new to us. What has been a little challenging is Greenfield locations, right? So you’re building took what’s called the truck stops from scratch in and around highly sought distribution centers. So the locating the coordination with Amazon, then the entitlements and the permitting, entitlement is really more, those of you who haven’t built anything in a while. The entitlement process in the country is daunting, and that can be anywhere from 6 months to a year. So we have a lot of these projects we’ve been working on now for quite a while.

And then the permitting the construction part of it is not anything that’s much different than what we’ve always seen, which is 5 to 6 — 5 months. So a lot more to be done this year, and we hope we’ll just continue on that next year as well.

Rob Brown: Okay, thank you. I’ll turn it over.

Operator: Our next question is from Eric Stine with Craig-Hallum. Please proceed with your question.

Eric Stine: Hi Andrew, hi Bob.

Andrew Littlefair: Hey, Eric.

Eric Stine: Hey, so just coming back to the 2023 EBITDA guide. So looking for modest growth there, and I know part of that. So you’ve got RNG plants, I guess pushed down a little bit, you’re still conservative on the credit side, and you’ve got higher OpEx. But you’ve got some areas where you’re more optimistic as well. I guess, is that a fair way to characterize it one? And then secondly, can you just talk about maybe the linearity of it throughout the year. I know that the natural gas spike in California was, I believe, even more pronounced in the first quarter. So, how do you expect to start the year? And then maybe for it, how it plays out for the remainder of the year?

Andrew Littlefair: Rob, when you were we’re assigning all about getting on here in a second. But when you’re assigning the, the, the EBITDA and what, why that why that is, where we’re guiding to. Look and it may kill me here. But if you went back to credit prices of last year, you have 90 you that 44.5 million of EBITDA. So we’re trying to be responsible by not trying to project, get over our skis on projecting what’s going to happen in the LCFS. We remain bullish. We think the fact that California is now talking about increasing the obligation curve, 20% to 30%. Look, that’s a huge increase. We believe that when that finally gets done, that’ll put pressure on LCFS prices. In fact, when you go back from the workshop that happened just a few days ago, the LCFS price is up.

So we actually thought that was supposed to happen, was supposed to happen back in November last year. So it happened now. So, we’re, we’re mildly bullish on what’s going to happen with the LCFS. And we certainly are in the medium term, that probably the more 24, 25, but it’s not the fact that the RNG projects, are not on production yet, because we always, we always knew that those would come on and really contribute in 24 as most to do with the credit prices. Bob, now you might pick me up here on that.

Robert Vreeland: No, I agree there. Eric you asked about the linearity versus. Yes, I mean, it’s versus giving guidance.

Eric Stine: It’s Q1.

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