Bullish indicating open at $55-$60, IPO prices at $37
NEWPORT BEACH, Calif. - Clean Energy Fuels Corp. (NASDAQ:CLNE), a major provider of renewable natural gas (RNG) for the transportation sector, announced today that it will resume repurchasing shares under its existing Share Repurchase Program. The program, which began in March 2020 and was expanded to $50 million in December 2021, still has approximately $26.5 million available for stock buybacks. The announcement comes as the stock trades near its 52-week low of $1.55, having declined about 49% over the past six months, according to InvestingPro data.
The decision comes on the heels of the company reporting robust financial results for the fourth quarter and the full year of 2024. Clean Energy Fuels holds over $200 million in cash as of December 31, 2024, and maintains a healthy current ratio of 2.67, indicating strong liquidity. According to InvestingPro analysis, the company appears undervalued based on its Fair Value metrics, though it operates with moderate debt levels. The buyback program will allow it to repurchase shares opportunistically while continuing to fund growth initiatives.
Company President and CEO Andrew J. Littlefair expressed confidence in the value of the company’s stock, citing recent developments in the RNG market, including the delivery of the first heavy-duty trucks equipped with the new Cummins X15N natural gas engine. Despite acknowledging uncertainties in the market, Littlefair conveyed optimism for the company’s financial stability and growth potential. With a market capitalization of $351 million and a gross profit margin of nearly 31%, InvestingPro subscribers can access 12 additional key insights and a comprehensive Pro Research Report about Clean Energy Fuels’ future prospects.
Share repurchases may be conducted through various methods, including open market purchases, privately negotiated transactions, and possibly structured or derivative transactions, all subject to market conditions and legal requirements. The buyback program does not have a set expiration date and may be suspended or discontinued at any time. JP Morgan Securities LLC has been granted authority to repurchase shares on behalf of the company, which currently trades at a price-to-book ratio of 0.49.
Clean Energy Fuels operates across the U.S. and Canada, providing RNG derived from capturing methane from organic waste, which allows vehicles to reduce greenhouse gas emissions. The company’s network includes fueling stations and RNG production facilities at dairy farms.
This resumption of stock repurchases is based on the company’s assessment of its financial position and market opportunities, as detailed in the press release statement. The company has cautioned that forward-looking statements are subject to risks and uncertainties that could affect actual results.
In other recent news, Clean Energy Fuels Corp reported its fourth quarter 2024 earnings, surpassing expectations with an earnings per share (EPS) of $0.01 and revenue of $109.3 million, both exceeding forecasts. Despite the positive earnings, the company’s stock experienced a decline. Jefferies reduced its price target for Clean Energy Fuels from $4.00 to $2.80 but maintained a Buy rating, citing potential future upsides such as increased Low Carbon Fuel Standard credits and the possible reinstatement of the Alternative Fuel Tax Credit. Meanwhile, Raymond James also adjusted its price target to $4.00 from $5.00, while maintaining a Strong Buy rating, acknowledging the company’s strong fourth-quarter performance.
Clean Energy Fuels’ adjusted EBITDA for the fourth quarter reached approximately $23.6 million, surpassing expectations. The company has projected a consolidated revenue of around $400 million for 2025, with significant investments planned in renewable natural gas (RNG) projects. Analysts have noted the company’s sensitivity to federal and state policy incentives, which are currently posing challenges to its 2025 guidance. The company plans to sell 246 million gallons of RNG in 2025, marking a strategic focus on expanding its RNG production capabilities. Clean Energy Fuels continues to navigate regulatory uncertainties, which could impact its future profitability.
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