Analysts: RNG Production Startup Is on Deck for Clean Energy Fuels, Though Profitability Uplift Will Be a 2024 Story
In New York, celebrated energy analyst Pavel Molchanov of Raymond James, essaying the prospects of Clean Energy Fuels Corp and affirming a Market Perform rating) noted that “Clean Energy’s business model is diversifying from its historical status as purely a fuel distributor towards starting in-house production of RNG in 2023. The growth story must be balanced against the fact that this commodity business is highly sensitive to both federal and state policy incentives, including a high degree of reliance on California credits.” Molchanov noted that 4Q22 has been weighed down by weak California LCFS credit pricing, yet noted that newly unveiled 2023 guidance points to EBITDA up 10%, below expectations as LCFS weakness persists. Even after an active year for RNG deal flow, there remain plenty of acquisition targets, nearly all of which are private.
Category: Fuels
