Clean Energy Fuels Corp.

Good day, everyone, and welcome to today's Clean Energy Fuels first quarter 2025 earnings conference call. At this time, all participants are in a listen-only mode. Later, you will have the opportunity to ask questions during the question and answer session. You may register to ask a question at any time by pressing star 1 on your telephone keypad. You may withdraw yourself from the queue by pressing star 2. Please note this call may be recorded, and I will be standing by should you need any assistance. It is now my pleasure to turn the conference over to Robert Freeland, Chief Financial Officer. Please go ahead.

Thank you, Operator. Earlier this afternoon, Clean Energy released financial results for the first quarter ending March 31, 2025. If you did not receive the release, it is available on the investor relations section of the company's website at www.cleanenergyfuels.com, where the call is also being webcast. There will be a replay available on the website for 30 days. Before we begin, we'd like to remind you that some of the information contained in the news release and on this conference call contains forward-looking statements that involve risk, uncertainties, and assumptions that are difficult to predict. Such forward-looking statements are not a guarantee of performance, and companies' actual results could differ materially from those contained in such statements. Several factors that could cause or contribute to such differences are described in detail in the risk factors section of Clean Energy's Form 10-Q filed today. These forward-looking statements speak only as the date of this release. The company undertakes no obligation to publicly update any forward-looking statements or supply new information regarding the circumstances after the date of this release. The company's non-GAAP EPS and adjusted EBITDA will be reviewed on this call and exclude certain expenses that the company's management does not believe are indicative of the company's core business operating results. Non-GAAP financial measures should be considered in addition to results prepared in accordance with GAAP and should not be considered as a substitute for or superior to GAAP results. The directly comparable GAAP information, reasons why management uses non-GAAP information, a definition of non-GAAP EPS and adjusted EBITDA, and a reconciliation between these non-GAAP and GAAP figures is provided in the company's press release, which has been furnished to the SEC on Form 8K today. With that, I will turn the call over to our President and Chief Executive Officer, Andrew Littlefair.

Thank you, Bob, and I hope the sound is okay. I'm in Washington, D.C., and I've been up here working to spread the word on RNG. Bob, thanks. I'm pleased to report we had very solid results for the first quarter of the year. In the quarter, we sold 51 million gallons of renewable natural gas. generated $104 million in revenue and $17 million of adjusted EBITDA. We finished the quarter with $227 million in cash on our balance sheet, a $9 million increase since the start of the year. Our R&G sales volumes were lower compared to the first quarter of 2024. This is driven by lower supply volumes from our third-party R&G producers. Some of our producer partners were impacted by weather and other operational events. These issues are seasonal in nature, and we expect a rebound over the remainder of the year. Importantly, we did not see any material decline in demand from our fueling customers despite the market uncertainty regarding the economic impact of tariffs. Our fuel volume is underpinned by steady demand from our fleet customers in the refuse, transit, and trucking sectors. In recent months, there's been a lot of attention on tariffs and renewable energy policy. I believe that our business and product, renewable natural gas, are both well positioned. First, tariffs have minimal direct impact on our business. Our network of fueling stations are located in the U.S. and Canada, and all of our R&D production facilities are located in the U.S. The vast majority of equipment and materials for our construction projects has already been procured. In fact, earlier this year, we moved compressors equipment from inventory in Canada to our facility in Wyoming as a precaution. Unlike other renewable energy supply chains, our RNG is produced, transported, and delivered to customers here in the U.S. We are maintaining our full-year financial outlook and CapEx guidance provided on our last call, which Bob will describe in more detail. However, we could feel some indirect impact of tariffs in that it creates uncertainty for our customers in the heavy-duty trucking sector. Potential impacts from tariffs on trucking supply chains, inflation, and economic activity may affect our customers' business planning, including purchases of all trucks that would include their emission reduction initiatives like replacing diesel trucks and with trucks equipped with the Cummins X15N and running on RNG. Current market dynamics may slow decision timelines for natural gas vehicle purchase, but we strongly believe any delay will be temporary. And the merits of RNG for heavy-duty trucking remain very compelling. In fact, at last week's Advanced Clean Transportation Expo, we heard many speakers comment over and over that RNG is a low-carbon fuel with proven technology and infrastructure at a lower cost per mile than diesel. A parade of executives from a variety of fleets extolled the economic and environmental benefits of operating with R&G. An Amazon executive spoke about the total cost of operating their 3,000 heavy-duty trucks and R&G, as well as being the only alternative available to help them achieve their climate pledge. Shippers like Unilever and carriers like Paper Transport agreed. The theme was so predominant that Eric DeAndros, the coordinator of the expo attended by 11,000 people, claimed that natural gas fueling was having a renaissance as the alternative that is truly viable in the heavy-duty vehicle market. As we said on our last call, we expect early adoption of the X-15N this year with a lot of singles versus home runs. Our station network and full suite of customer services are ideally suited to support fleet's initial purchases of trucks with the X-15N and the expansion over time. In addition to the opportunities in the heavy duty trucking, our other businesses continue to expand. We proudly serve over 69 transit agencies at 120 different sites and 175 refuse customers at 325 different sites across the U.S. and Canada. RNG has been dependable, clean, low-cost fueling solution for those fleets for years. As an example, we completed a new RNG station for our longtime customer, Burtek, a large waste company in Victoria, Victorville, pardon me, California during the first quarter to accommodate an additional 60 trucks. Pertec also contracted with us to add 50 trucks to fuel with RNG at another station we maintain for them. We're also expanding our relationship with USA Hauling, signing a contract to build another private station in South Windsor, Connecticut to fuel an additional 40 CNG trucks. I told you about our success in converting existing customers from CNG to RNG. This allows the customer to dramatically and affordably reduce their carbon emissions while providing us with better margins on the fuel. Transit agencies around the country have taken the advantage of this opportunity, and recently we did this for the station we operate at, the Nashville airport. These are just a few examples of developments. which occurred in the first quarter, but highlighted the nature of overall business in deep customer relationships. On the federal policy front, we continue to await various outcomes. While the alternative fuel tax credit expired at the end of last year, the Renewable Natural Gas Incentive Act was introduced in the House in March, which, if included in the larger tax bill, could be retroactive to the beginning of the year. We are working closely with members of both houses to keep the R&G tax credit top of mind. The 45Z production tax credit is in the process of being finalized. We included a minimal amount from these credits in our Q1 results and our 2025 financial outlook based on the initial guidance. But once the 45Z credit is finalized, it could contribute more meaningful to our results. RNG is a commercial transportation. As a domestically produced biofuel that converts waste into a low-cost, low-emission transportation fuel, we believe RNG fits well with this administration's priorities. In California, the low-carbon fuel standard program updates remain in process. We expect more clarity in the coming weeks. As a reminder, these updates are expected to support higher credit prices over time, which is necessary to support growth and the low carbon fuels needed to hit California's targets. Now briefly turning to our upstream dairy R&G production projects, the six projects that have been operating are doing well, and we are always working to improve production. We have two others in advanced construction. expected to be in service by the end of the year, and have additional projects in construction through our development arrangement with Moss Energy, with three projects likely to come online in 2026. In summary, our business is performing well. We are advancing our growth initiatives, and we have strong balance sheet. We are confident in the stability and growth potential of our business and see multiple avenues for upside as some of these policy outcomes are resolved. That is why we resumed our share repurchase program in late March. We believe our shares are undervalued, and this enables us to make repurchases while still maintaining ample cash to fund our growth. And with that, I'll hand the call back to Bob, who will give more details about our strong quarter.