Operator
Operator
Clean Energy Fuels Corp. (CLNE)
Q4 2012 Earnings Call· Thu, Feb 28, 2013
$2.23
+0.68%
Same-Day
+2.14%
1 Week
+5.01%
1 Month
-1.43%
vs S&P
-4.87%
Operator
Operator
Tony Kritzer
Management
Andrew Littlefair
Management
Rick Wheeler
Management
Operator
Operator
Steve Dyer - Craig Hallum
Management
Andrew Littlefair
Management
Steve Dyer - Craig Hallum
Management
Rick Wheeler
Management
Steve Dyer - Craig Hallum
Management
Andrew Littlefair
Management
Steve Dyer - Craig Hallum
Management
Andrew Littlefair
Management
Steve Dyer - Craig Hallum
Management
Andrew Littlefair
Management
Rick Wheeler
Management
Operator
Operator
Robert Brown - Lake Street Capital Markets
Management
Andrew Littlefair
Management
Robert Brown - Lake Street Capital Markets
Management
Andrew Littlefair
Management
Operator
Operator
Lawrance Alexander - Jefferies and Company
Management
Andrew Littlefair
Management
Rick Wheeler
Management
Andrew Littlefair
Management
Lawrance Alexander - Jefferies and Company
Management
Andrew Littlefair
Management
Operator
Operator
Caleb Dorfman - Simmons & Company:
Andrew Littlefair
Management
Caleb Dorfman - Simmons & Company:
Andrew Littlefair
Management
Rick Wheeler
Management
Caleb Dorfman - Simmons & Company: Great, that’s very helpful here. Good Rick.
Operator
Operator
Thank you. Our next question comes from the line of Andrea James, Dougherty & Company. Please proceed with your question. Andrea James - Dougherty & Company: Hi, thanks for taking my questions. Can you just present us how many of the stations are in essence turned on, I remember last quarter was you build them but they weren’t all operating, so just number of stations built versus number of stations operating? Andrew Littlefair: You are really now focused on those American natural gas highways. Andrea James - Dougherty & Company: That’s exactly right, yeah.
Andrew Littlefair
Management
So, we have got of those new bills, we have got 8 or 9, we got 6, 4 getting ready to open, so it gets you to 14, and then we have 6 others that are part of that network in California. So, you have about right in the next six to eight, you will have about 20 of those. And so our job and I just heard this morning we have just got 20 more, 25 more trucks. I didn’t mention it, but 25 more trucks from a hauler that works exclusively for Owens Corning. And so, we’ll open one in South Carolina. So, over the course of the next six months, we hope to – every couple of months, we hope to open more of those stations. Andrea James - Dougherty & Company: And then the one that are open the capacity at this point just on a percentage basis, just kind of trying to get a sense of where it could go and just but at what level of capacity right now?
Andrew Littlefair
Management
Well, remember I don’t know Andrea if we talk about this, but this is kind of the ways going to work, now there is a couple of days anomalies to this, but for instance the station down here at Long Beach we got opened a long time, that fills 100 of trucks a day. One of our stations that we brought on a little bit earlier in the process was the one on Los Vegas. That’s already up to about 82 trucks. If you think what would be on that? That station is already on a kind of annual run rate of a little over 1.6 million gallons. That’s the capacity to do about 2.5 million to 4 million gallons, but I like that because that’s done very well in a little over a year’s time. Most of these stations were opening up; let’s call it, 20 to 25 trucks calling that station home just in a simple way to look at it. It’s not that’s simple, but that’s kind of the way I think you should think of it. And if you think with me that those 20 trucks to 20,000 gets home new more 20,000 gallons a year. So, you would see that with about 0.5 million gallons on an annual basis, you will open the station and that station can do 2.5 million gallon. Andrea James - Dougherty & Company: Got it.
Andrew Littlefair
Management
Now, we are not done it at 20 trucks, 25 trucks. Our job then is to ramp that up and that’s what will happen over the course of this year or next year. But even sort of the nice thing is that I know this sounds simplistic, but the reason I kind of dwell on this is, because we talked about tens and thousands, hundreds and thousands, and millions of trucks, but when you really break it down to an individual station basis, you really need 100 trucks, let’s call that station home on an annual basis which gets you about 2 million gallons. It gets to the home as capacity. Then you will have the chance to spend another $0.5 million and add two more tons, it gets you up to 5 million gallons. So, you like to think, you start out with something that would give you probably a five-year payback, which is not acceptable. It’s not what we are in this business to do. And you could grow and over the course of the next year up to 100 trucks and on that rate, you are paying that station out of 18 months. So, that’s sort of what you are trying to do. Andrea James - Dougherty & Company: Then a couple of things for that. And then finally just on – just on the field sales side, I know you already talked about competition, but just the competitive landscape on the field sales side, I mean, people talk about Shell has endorsed the concept now, I just wanted to get your updated thoughts on that?
Andrew Littlefair
Management
Well I know, I guess, I love the fact that everybody is clamoring to get into the business, so, it makes me feel like we are not out here just spinning around by ourselves, but we haven’t seen much yet. We have heard some announcements. These are big players and less capability. Shell I think they have got their first – their first station up in Canada. We haven’t seen than yet in the lower 48. Others have talked about doing it; I know that there are some stations being built in Wisconsin. Hey, this is a big market. It’s a 25 billion gallon market. And there is plenty of room for lot of players. We haven’t seen much competition yet. There I am sure we will at some point. I guess, as you will see the competition is kind of spread out a little bit, there is a lot of room. Andrea James - Dougherty & Company: Thank you so much.
Operator
Operator
Thank you. Our next question comes from the line of Matthew Blair with Macquarie Group. Please proceed with your question.
Matthew Blair - Macquarie Group
Management
Rick Wheeler
Management
Matthew Blair - Macquarie Group
Management
Rick Wheeler
Management
Matthew Blair - Macquarie Group
Management
Andrew Littlefair
Management
Matthew Blair - Macquarie Group
Management
Andrew Littlefair
Management
Operator
Operator
Pavel Molchanov - Raymond James
Management
Rick Wheeler
Management
Andrew Littlefair
Management
Pavel Molchanov - Raymond James
Management
Andrew Littlefair
Management
Pavel Molchanov - Raymond James
Management
Operator
Operator
Alex Potter - Piper Jaffray
Management
Rick Wheeler
Management
Alex Potter - Piper Jaffray
Management
Rick Wheeler
Management
Operator
Operator
Andrew Littlefair
Management
Thank you. Ladies and gentlemen this concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation.