What Insider Buys Mean at Clean Energy Fuels

What’s worth paying attention to
Natural gas is going to be a growing part of the energy picture in North America for the next several decades. Chesapeake Energy Corporation (NYSE:CHK) reminded us of this in August’s earnings report. The No. 2 natural gas producer in the US grew its NG production by 7%, while simultaneously driving the cost of production down 20%. And while oil is also a growing part of Chesapeake Energy Corporation (NYSE:CHK)’s business and generates more than half of revenues, natural gas is 75% of the actual production output.

Additionally, both Westport Innovations Inc. (USA) (NASDAQ:WPRT) and Cummins Inc. (NYSE:CMI)’ earnings announcements in two months will give us clarity as to how uptake of the ISX12 G is going, and Clean Energy Fuels Corp (NASDAQ:CLNE)’s own earnings call in early November will tell us how this is translating to fuel sales, and further opening of locations on America’s Natural Gas Highway. The current quarter may not be critical to the future of natural gas as a transportation fuel, but it’s the first full quarter with a viable engine available for the long-haul market.

Final thoughts
It’s not an automatic buy just because an insider adds shares, but in this case it’s certainly a positive sign from Littlefair. With that said, depending on where you are with your position in Clean Energy Fuels Corp (NASDAQ:CLNE), this may not be the best time to buy. If you don’t have a position, opening a small one now makes sense. But I wouldn’t back up the truck before we find out if the shippers are stepping up and buying NG-powered trucks, and we won’t know that until November.

The article What Insider Buys Mean at Clean Energy Fuels originally appeared on Fool.com and is written by Jason Hall.

Jason Hall owns shares of Westport Innovations and Clean Energy Fuels. The Motley Fool recommends Clean Energy Fuels, Cummins, and Westport Innovations. The Motley Fool owns shares of Cummins and Westport Innovations.

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