Clean Energy Fuels Corp. Q4 FY2024 earnings call

• Strong Q4 and full-year 2024 results: Fourth quarter 2024 saw 62 million gallons of RNG sold, $109 million revenue, and $24 million adjusted EBITDA. Full-year 2024 had 237 million gallons of RNG sold, $77 million adjusted EBITDA. • Downstream performance: Downstream RNG fueling business had almost $89 million EBITDA in 2024, with transit agencies converting to RNG like NiceBus in Long Island and others in Texas and Michigan. • Trucking fleet progress: Adoption of Cummins X15N engine is a growth opportunity. Examples include Food Express, Cemex, Mullen, and FedEx ordering/trying out trucks with the X15N engine. • Upstream projects: 6 operating upstream dairy RNG projects, 2 under construction, 4 started in Q4 2024. 2025 volume expectation for operating upstream projects is 4-6 million gallons. • Regulatory comments: Discussed CARB OAL pause and 45Z Clean Fuel Production credit uncertainties, with hopes for quick resolution of CARB rules.

In 2024, the downstream RNG fueling business brought in almost $89 million of EBITDA. For the upstream dairy RNG production, there are 6 operating projects, 2 under construction, and 4 started in Q4 2024. The 6 operating upstream projects are expected to produce 4 million to 6 million gallons of RNG in 2025. Revenue contribution details weren't explicitly broken down by segment in terms of percentage, but the downstream fueling and upstream production are key segments.

• 2025 adjusted EBITDA outlook: $50 million to $55 million, down from 2024's $77 million. Excludes AFTC (contributed $24M in 2024) and lower RIN prices ($10M reduction). • RNG volume projection: 246 million gallons in 2025, vs 237 million in 2024. Excludes ~9 million gallons of wholesale RNG from 2024. • CapEx: 2025 CapEx expected to be ~$30 million for fuel distribution and $104 million for RNG upstream. • Exit from Pilot Flying J locations: Likely to remove LNG equipment from 55 Pilot Flying J locations, taking a non-cash hit but saving on leases and operations.

• Regulatory uncertainties: Uncertainties around CARB OAL pause, 45Z Clean Fuel Production credit finalization, and AFTC expiration pose risks. Policy volatility in California and other states has affected market adoption of RNG and related technologies. • Market adoption risks: Slow uptake of X15N engine due to regulatory confusion and uncertainty, which could delay expected volume growth.

Q: How are you looking at the clarifications under 45Z? How much credit do you think you'll be eligible for? And how are you considering the OAL pause?

A: The OAL from CARB is a technical issue expected to be resolved soon. For 45Z, the Biden administration's GRESB model understates the value of dairy RNG, and we expect the administration to be constructive but uncertainty remains.

Q: Do you see any volumes in the transportation sector maybe going towards power generation for data centers?

A: Transportation still accounts for most RNG use, but some may go to data centers, though transportation is the primary and best use for RNG.

Q: On the 15-liter rollout, how do you see that population using your existing fleet footprint?

A: The existing network will be used initially, with big national fleets already having lanes where existing stations are located. Growth in new stations may come later as adoption increases.

Q: On the 45Z guidance, initial guidance from Treasury understates the value of dairy RNG. How likely is a positive revision?

A: We believe our case for a positive revision is strong, with industry support and bipartisan congressional backing, though uncertainty remains until finalization.