Greetings and welcome to Clean Energy Fuels First Quarter 2019 Earnings Conference Call. At this time, all participants are in 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 Mr. Bob Vreeland, Chief Financial Officer. Thank you Mr. Vreeland, you may begin.

Thank you, operator. Earlier this afternoon, Clean Energy released financial results for the first quarter ending March 31, 2019. 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-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 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. With that, I will turn the call over to our President and Chief Executive Officer, Andrew Littlefair.

Thank you, Bob. Good afternoon, everyone, and thank you for joining us. I'm pleased to report that the company's operating and financial performance continue to improve through the first quarter of this year with 12% increase in volume, 7.5% growth in revenue and improvement in operating and net income when excluding the alternative fuel tax credit from last year and the non-cash adjustments from 2019. Also importantly the initiatives that began over a year ago to strengthen our balance sheet continue to pay off as we ended the quarter again with cash and investments exceeding debt. Our volume grew over 10 million gallons quarter-over-quarter. We delivered total of 95.2 million with our redeemed renewable natural gas making up over half of that volume increase. Our core business of Refuse and Transits are growth as did our subsidiary NG Advantage and we're optimistic that the heavy duty trucking market will contribute to that growth later this year through our Zero Now financing program. I know there's been a lot of interest in this program. I'm pleased to report that we've begun to sign up fleets are taking into advantage of the offer to lease or purchase heavy duty trucks. These trucks are equipped with the latest natural gas engine technology for the same price as a diesel truck and operate it with a fuel that is renewable and significantly cleaner becomes at a lower cost. As I explained on our last call unlikely year from others we're engaged with fleets that are ready to take delivery of trucks which is different than simply putting down a deposit for a concept truck that won't be ready for delivery for years. Through our Zero Now program, we have agreements with multiple firms which are leasing or purchasing new trucks equipped with Cummins Westport…

Thank you Andrew. Our financial results for the first quarter of 2019 were in line with our expectations and we maintain our financial outlook for the full year 2019 which we provided during our year end 2018 earnings calls. Our volume growth in the first quarter of 12% above last year came from CNG and LNG both benefiting from incremental Redeem gallons related to expanded BP relationship. CNG volume also increased as the result of growth at NG Advantage and from our Refuse and Transit sectors. LNG also increased due to greater bulk fuel deliveries compared to a year ago. Redeem volume grew 87% in the first quarter to 34.6 million gallons versus 18.5 million gallons a year ago. Our revenue for the first quarter of 2019 was $77.7 million which included a $5 million non-cash loss on our Zero Now fuel hedge. Last year first quarter revenue of $102.4 million included $25.5 million in alternative fuel tax credits related to the calendar year 2017. The alternative fuel tax credits expired at the end of 2017. Excluding the non-cash Zero Now fuel hedge loss in 2019 and the alternative fuel tax credit revenue in 2018 total revenue increased 7.5% which reflects greater volumes at higher effective prices per gallon driven by RIN and LCFS prices as well as retail pump prices. Our overall gross profit margin in the first quarter of 2019 was $18.9 million which was reduced by $5 million from the non-cash Zero Now fuel hedge loss. Gross margin in the first quarter of 2018 was $47.6 million which was increased by the $25.5 million in alternative fuel tax credit. Exclusive of the $5 million reduction from Zero Now fuel hedge loss and the $25.5 million increase from the alternative fuel tax credit. Our 2019 gross profit margin…

[Operator Instructions] the first question is from Eric Stine, Craig-Hallum. Please go ahead sir.

This is Aaron [ph] [indiscernible] for Eric, thanks for taking the questions. Maybe first on the Zero Now pipeline good to see and hear some of the recent traction, can you just maybe give a little bit more color on maybe what some of the gaining factors that you're looking for before some of those fleets move forward with some of the larger purchases. And then maybe just talk a little bit about your outlook to get to that. We've kind of been thinking that as around maybe 2,500 truck program to start and maybe the potential to grow beyond that.

Aaron [ph] I'm still - we came up with that 2,500 number because that was just doing math of about $40,000 per truck and our friends at Total had helped us with debt for about $100 million, but I still think it's a good number. It's one that we're shooting for. We've been at it for a while, started in late summer last year. It took us a while what the gaining factors are, it took us a while to basically re-educate fleets. Kind of you think with me on that, what happened was. You have to go back a couple of years, collapse of oil price with really the previous heavy duty engines some of which were the earlier engines and some of the experience was, we had some of the early adopter problems with some of those engines, this of course is now is a new day with the new 12-liter low NOx engine and of course today we have the renewable natural gas. And so when we came out with the Zero Now financing, we needed to go back and really educate fleets about the current state of play. The current engine technology, what was different this time, we had to explain the Zero Now financing and why they could now move into natural gas truck at essentially the same price as diesel, explain the hedge which you know is a very attractive as we've discussed before on this call. Is we're able to lock our customers into a fuel deal at a depending where the operators much as $1 a gallon fixed to EI index for the length of that lease, in many cases four to five years. It's very attractive. This bill takes a while and before we can end up assigning the deals. It…

Great, understood. Thanks for the color there. Maybe second, can you just give an update on some of the programs down there in California, whether it's ports with the SIP or in the South Coast, maybe kind of what you're looking for there kind of near term as far as any kind of funding dollars or truck deployments, that would be great.

Well there's lot of pieces all that, but for those on call that maybe aren't quite as familiar as you're Aaron [ph] of course there's a thing called State Implementation Program, a lot of states have this that are not in compliance certainly the Southern California still has the dirtiest air quality in the nation, we have a plan that we have to get into compliance, I think it's buy 2023 and we're very way short, the inventory of emissions and what we need to do to get in compliance to theoretically continue our federal funding and all that kind of thing. We've got a lot work to do and in fact, at its highest level I think, that the plan would say that you got to get 70,000 heavy duty trucks to like a low NOx and 150,000 medium duty trucks. I don't see any rules or funding or anything in place right now that gets you there. But that just tells me that there are going to be other emissions requirements and other and continued grant funding because 70% of the problem that we have in Southern California is NOx and that's coming from these heavy duty vehicles. All right, so now then if you look at the Clean Air Action Plan which governs the - it's been adopted by the Port of Los Angeles and jointly the Port of Long Beach, those two ports sit side by side there. They adopted a plan that stuff on ships and yard hassling equipment and also of course trucks and this was kind of phase two of the plan because 10 years ago, they cleaned up some of the diesel trucks and introduced natural gas trucks. That still is in place, that plan essentially says that in by 2020 the…

No, that's really good color, we've been kind of hearing some of the stuff there so, so thanks for the detail. And then maybe last, just to kind of model little bit on the station construction line. Can you just talk about how you think that trends the rest of the year and kind of the outlook, the mix there between new stations and upgrades.

I mean it generally trends up as we move through the year. We were - we kind of guided to the $25 million to $30 million range and we still believe we'll get inside that range, it just, it gets can be a little lumpy but generally speaking the activity picks up as we move through the year.

You know, I know Aaron [ph] right now there's about I was talking to our [indiscernible] in charge of this - earlier this morning. You have about 22 stations that are currently in process and there will be more. I think there was two more added in just in the last day or two, our fellas were at the big waste convention and I'm usually - they come back with some of those. So it seems to me that the station of construction line is a little lighter than we've seen it before and I think we've kind of guided to that. It's still robust, but it's not as high as we've seen maybe a couple years ago. I imagined when you shake it all out, it will be somewhere - I'm talking millions, I'm talking about projects now. It will be in the 30, rough 30 projects or so underway here by - in the third quarter, fourth quarter.

All right. Thanks for taking the questions and congrats on another good quarter of volume growth.

The next question is from Rob Brown, Lake Street Capital Markets. Please go ahead sir.

Just wanted to touch on Redeem and that market, how is the volume supply in that market? Are you seeing any constraints there as you grow or do you feel like you got the capacity or contracts place to fill the demand?

I think we're in general balanced right now. We're seeing volume, more supply coming into the market which is a good thing because we're getting more customers come to the party. If you kind of look back over the last couple of years one point we're a little short on supply and then there's been more supply coming to the market. We work with our friends at BP for instance and we're constantly looking at showing them our demand forecast and they're constantly looking at more supply. The market is responding in terms of supply and we're doing our part of the demand side of the equation. We have a lot of customers and areas of the countries but we're not using RNG yet. So we can use more supply and the good news is, that supply is coming. I think we're going to be in general supply balanced for this year. And then a bunch of more supply shows up which will be time linked as we're going to need it.

Okay, great and then in terms of cost structure, you've done a good job of taking it down. Do you feel like you're at a level here that's like where you want to be or do you see it, it's where you see it going?

Well I think what Bob gets worried when you start doing the modeling. I mean I think this is generally this level of SG&A is about right. It's down a little bit this quarter, it may pop up just a little bit, but it's in this range. This feels comfortable for us, we're growing, we're building more stations. We're putting more customers on the - in the program and yet we've been able to kind of hold the line. We're trying to do some things though on the marketing side. We're sure we'll add some a little bit cost that you'll see probably here this next quarter as we promote with shippers and others on the Zero Now program. But I'd say this is generally about the right - we've got it about as tight as we can get it on the SG&A line and I think this is pretty good, don't you Bob?

Yes, I think it's - we're good right now and we're constantly kind of look at that and what we think we need to do support the business and grow the business, so that's why I commented we may not see as lower quarter as we go forward a little bit because we still have work to do on promoting Zero Now and other programs. It takes a lot of effort to be out there promoting what we do.

Great, thank you. I'll turn it over.

There are no further questions at this time. I'd like to turn the floor back over to management for closing remarks.

Thank you operator. I want to thank everyone for listening today in on the call, this afternoon and we look forward to updating you on our progress next quarter. Thank you.

This concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation and have a good day.