CLNE Catalysts Are Stacking Up

Posted on December 22, 2020 by Brad Steveson

Clean Energy Fuels Corp (CLNE) has been on an absolute tear lately. Shares of Clean Energy Fuels closed up 38% to $8.20 on Tuesday and shares are up over 150% since November 6th and almost 100% of that gain happening just this week. So what’s going on with this stock?

To start with CLNE beat on revenue when they reported Q3 results on November 5th, improving adjusted EBITDA by 29% and boasting about renewable natural gas being the shining star in their business. At the same time there were 2 major clouds over their progress discussed at that time.

1. The fact that California regulators do not really embrace their clean fuel like they do electric.

2. The fact that the alternative fuel tax credit was set to expire at the end of this year and the doubt surrounding whether a lame duck congress would indeed renew this credit for 2021.

On Monday, CLNE announced it had expanded a partnership with Total SE (TOT) to develop carbon-negative renewable natural gas production facilities. Total is the company’s largest shareholder. The deal includes funding for building additional fueling infrastructure.

Clean Energy Fuels also announced on Monday that it had signed a deal with BP that provides $50m to CLNE for it’s efforts to develop, own and operate new RNG facilities at dairies and other agriculture facilities.

On Tuesday, the company announced the passage of the Alternative Fuel Tax Credit by Congress. That was one of the concerns that seemed to be holding the company’s shares back as it exploded after release of the news. The word is that President Trump is expected to sign the extension.

So, it’s been a good week already for CLNE and I did not mention that they announced a few other deals for around 58 million gallons of fuel since the Q3 earnings report, but before Monday. Things seem to be going well lately for CLNE. This company is one worth watching as they continue their expansion of renewable natural gas (RNG). Shareholders are almost certainly feeling a bit more Merry this week of Christmas.

Disclosure: No position, and I may buy shares within the next 72 hours.

Wednesday AM Update: CLNE continues it’s run in the pre-market up 25% to $10.25

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