Shares of Clean Energy Fuels Corp. declined 1.3% following Q1 results as operational execution in RNG production remains uneven and adoption in the key Class 8 trucking segment is slower than anticipated, tempering upside despite rising diesel prices.

• Delivered 67 million gallons of renewable natural gas (RNG) and generated $16.6 million of Adjusted EBITDA in the quarter.
• Trucking, the largest growth opportunity, underperformed expectations due to slow adoption of Cummins X15N engines amid regulatory uncertainty and high upfront costs.
• RNG production ramp-up faced headwinds from extreme winter weather and operational challenges at several projects, delaying expected improvements.
• Management is taking a more hands-on operational approach, replacing vendors and strengthening oversight to address production inefficiencies.
• Positive regulatory development with CARB approval of a low carbon intensity pathway (~ -300) for the Del Rio Dairy project, though credits awaiting updated federal valuation remain a key variable.