Greetings and welcome to the Clean Energy Fuels First Quarter 2017 Earnings Conference Call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Tony Kritzer, Director of Investor Relations for Clean Energy Fuels. Thank you, Mr. Kritzer, you may begin.

Thank you, operator. Earlier this afternoon, Clean Energy released financial results for the first quarter ending March 31, 2017. 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 risks, uncertainties and assumptions that are difficult to predict. Words of expression reflecting optimism, satisfaction with current prospects, as well as words such as believe, intend, expect, plan, should, anticipate and similar variations identify forward-looking statements, but their absence does not mean that the statement is not forward-looking. Such forward-looking statements are not a guarantee of performance and the company's 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 the Clean Energy’s Form 10-K filed May 04, 2017. These forward-looking statements speak only as of 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 8-K today. Participating on today's call from the company is President and Chief Executive Officer, Andrew Littlefair; and Chief Financial Officer, Bob Vreeland. And with that, I will turn the call over to Andrew.

Thank you, Tony. Good afternoon everyone and thank you for joining us. I’m pleased to review our first quarter 2017 results. We delivered 85.1 million gallons to our customers in the first quarter a 10% increase over 77.5 million gallons we delivered in the first quarter of 2016. Revenue in the first quarter was $89.5 million which did not include any VTEC contribution which benefited last year's number. Our volume related revenue was up 9% and we still have a solid construction project pipeline. However, our construction revenue was down in the quarter due to timing and more station upgrades. We generated $80.7 million of adjusted EBITDA which included gains from our debt repurchase and our transaction with BP. Even when backing out the gains our adjusted EBITDA was $6.9 million. This was our seventh consecutive quarter of positive adjusted EBITDA. We made one of the company's more significant transactions in the first quarter of this year, the sale of the upstream portion of our renewable natural gas business to BP for $155 million with an earn out of up to additional $25 million. Plus BP absorbed $9 million of debt from the renewals business. There are many positive aspects of this partnership with BP. Specifically we continue to be in the renewables business doing what we do best, marketing and selling our Redeem fuel throughout our extensive fueling network. Our partnership also includes a long-term supply contract and royalty sharing agreement with BP allowing us to continue aggressively selling redeemed to our customers who are looking to benefit from operating their fleets on the cleanest fuel available. In fact that the end of April we signed the largest Redeem agreement since we launched in 2013. Our longtime customer, Republic Services will expand its use of Redeem to 28 of…

Thank you, Andrew and good afternoon to everyone. I'll comment on our first quarter and then highlight again the anticipated impacts to our financial model considering the sale of our RNG production assets to BP. In the first quarter we saw volume growth of approximately 10% versus a year ago resulting from growth in CNG and LNG gallons offset partially by lower non-vehicle RNG gallons. For CNG we saw 12% volume growth led by our refuse and transit sectors. The LNG gallon increase of 600,000 gallons was bulk supply and refuse related. Our non-vehicle RNG gallons declined as a result of selling more Redeem gallons into our vehicle fueling network. Redeem volume for the first quarter was $14.1 million gallons. Our revenue for the first quarter of 2017 was $89.5 million. In 2016 our revenue was $95.8 million. However 2016 included $6.4 million of VETC revenue and there is no VETC in 2017 due to its expiration at the end of 2016. Our volume related revenue of $73.6 million was up 9% over 2016 principally related to our increased volume, despite a slight decline in our effective price per gallon. Our compressor business revenues stabilized and were up from the more recent third and fourth quarters of 2016, although the global compressor market remained soft. Our construction revenues were down from a year ago which is related to the type of project and the timing of construction activities. 2016 was a busy year for full station builds particularly in the latter half of 2016 when we completed our NICE Bus and FedEx stations for over $11 million combined in construction revenue. The other point I'll make here is our first quarter revenue included the full quarter of our RNG production business and related RIN and LCFS credits since the sale…

Thank you. [Operator Instructions] Our first question is from the line of Eric Stine with Craig Hallum. Please proceed with your questions.

Hi everyone, congrats on the Republic deal.

Thank you.

I just wanted to stick with Redeem and just kind of focus on what you think that can do to accelerate your growth since you've got the supply lockdown, I mean maybe first just something so we can track you going forward but number of fleets that are using Redeem now and then also when you're thinking about the large fleets and you mentioned Republic but you've also got UPS and FedEx. Right now what percentage of those fleets do you estimate you are fueling and where you think that can go?

You know Eric, and I know you were, I believe you were out at the – conference in California. This notion of renewable natural gas I think is really beginning to take hold. It differentiates us, our product natural gas. It really moves us into the realm of sustainability. And it gets our fuel combined with this new zero emission engine to really cleaner, really and I've said this now for a year or so, but I think people are beginning to recognize and it's really commercially the most cleanest fuel available today, cleaner than electric. And so some of our most significant fleets as you mentioned, Kroger in there and UPS, FedEx and now Republic, they get this. They understand it's very valuable. A lot of the shippers, Home Depot and others some of the larger shipper guys that we work with they all understand it too and they really like it. It really helps them on their sustainability goal. And we have great – we're very optimistic and we think the Redeem fuel renewable gas has great reach. We see the industry and the production side, you're right, we have a nice deal of supply locked down with BP which we're very pleased about. We see a great deal of supply coming on and we see demand. I think this Republic announcement today is important because it reaches us out into 20 other states in a word or more than that I guess we're at three states today, but we'll be getting to move out across the country moving this fuel to these fleets. And so we've just really scratched the surface on this. There is no reason why that some of our largest fleets operating all across the county can't avail themselves of this fuel and we're very optimistic about it. So we've got our hand full of some of our most sophisticated largest fleets working with now but as you know we've got more and more of our transit properties and now our largest thrash guys. Our interest is in doing it and so those people they know natural gas are beginning to take delivery of the newest, cleanest engine, the zero emission engine that we've all talked about and now they are rolling with the Redeem fuel as well. So it's a great combination. We expect that the renewable piece to continue to grow now ramp up here in the future. We'll see another as I said in my prepared remarks 25% this year, but I think it should as we expand out across the country it should ramp even more. It seems to be Eric a hot product right now.

Yes, definitely and I was after that, and that just gets to my next question, because I know, I mean there's a lot going on in California and you've got this ongoing debate certainly at [indiscernible]. People get the significance of natural gas and the new zero engine. Just wondering in terms of policy makers and regulators, are they starting to get that message or is it still something where you are fighting the fact that you've got a lot of claims or just people talking a lot about electric and other technologies?

Well look, there is no doubt that there's a romance around the electric vehicle and let's just give everybody their due. The people believe that that is it's obviously a spiritual argument that they really believe that the zero, the electric vehicle is zero. Well it turns out that our fuel is actually cleaner than theirs someday electric truck and we're ready to go today. I would though the sort of empowered clean air folks certainly in Sacramento have a bias toward electric, but the fact is that we have a more economic product that is available today that's actually cleaner is kind of screwing up there what they've been telling everybody. And so I believe it's beginning to take notice. Now I'll say this, when you shift to the people that are on the ground like the people in Southern California that have a long history of promoting natural gas and clean technologies, the South Coast Air Quality Management District they understand natural gas. They understand that it's the only weapon they have against Knox and the only thing that's viable today and so we work hand in glove with them. And so, yes we still are – that's one of the reasons I make these remarks today because I think people sometimes get lost in that somebody is going to bring to market an electric truck a few years from now that maybe 2.5 times or three times what we have today and it isn't any cleaner. So I think that is and you know the zero emission natural gas truck that we're talking about now the Cummins Westport product, that's only been now coming to market now, so it's new, but I think it's beginning to change a lot of the sessions at the conference in Long Beach talked about game changer. I think the renewable natural gas with this new engine is a game changer and I think the clean air regulators are having to take notice. And I know that the Port of Long Beach in LA are taking notice because they have the choice of waiting around for a decade for electric trucks or doing something about it today. And I don't think there is much choice when you put it in that context.

Yep, okay, thanks a lot.

Yes.

Thank you. [Operator Instructions] Our next question comes from line of Pavel Molchanov with Raymond James. Please proceed with your question.

Thanks for taking the question guys. So, here we are almost six months into the year and Congress has not even started seriously discussing tax reform. So I thought I would ask what the latest that you guys are hearing on getting tax expanders past without having to wait for whatever comes out of tax reform process?

Yes, it's a good question and you know it's one that we are working on all the time and our folks in DC are working with the elected members on it. It's been one of these things Pavel that we've really discussed where in theory a broad tax reform package might have to do away with the extender package. Keep in mind that the VETC is part of this much bigger broad set of tax extenders, which is manufacturers and doctors, and homeschooling materials, it's a very big package of things. We have to be in there. I think the general thought is that if tax reform is not totally comprehensive and if it doesn't happen this year that it is likely that there's going to be a need to move ahead with the extender package again and that how this is all a lot of give and take going on. If the broad reform really is just kind of changing of some rates and maybe repatriation of money overseas and it doesn’t move to the next phase of kind of a broader tax reform, might, our feel is that the extender package could very well likely be extended here toward the end. So I know that's a lot of guessing, but that's kind of our sense that if you don't see wholesale grand reform, it is likely that the House and the Senate we will have to probably move forward at least for this year and maybe next year with an extender package.

Okay and just a small question on your balance sheet, so you have the note receivable related of course to the BP sale of $123 million, when does that convert to cash?

It converted to cash on April 3.

Okay, so just, okay got it. So technically March 31 it was not all right, clear enough. Thank you guys.

Okay, Thank you.

Thank you. Our next question is from the line of Rob Brown with Lake Street Capital Markets. Please proceed with your question.

Yes, it's interesting.

Hey Rob.

Hi, Rob.

The gallon volume growth was pretty good in the quarter, what's sort of your thinking on current rate of organic gallon volume growth in the current market?

Our budget and I don't know if we disclose this, but we think that the growth seems to be given the current price environment of the competing fuels. It seems to be in this range, the high single digit range, the Redeem volume will go, I think will grow faster than that. I think the combination of the new zero engines later in the year, you could see it pop up a little bit above that, but I would say that this range is probably in the ballpark for what we see. I don't until you get to a little bit higher oil price, a little bit more differential, I think that would accelerate the growth rate. Otherwise I think this is probably about right.

Okay. Good thank you. I’ll turn it over.

Thank you. There appear to be no further questions at this time. I’d like to turn the floor back over to Mr. Littlefair for closing comments.

Good, well thank you all for joining us this afternoon. We look forward to updating you on our progress next quarter.

This concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation.