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Long/short equity, special situations

Sharks Are Closing-In On Clean Energy Fuels

Summary

This article sheds light on how the huge leveraged bet which Clean Energy Fuels (NASDAQ:CLNE) placed into constructing 90 liquefied natural gas or "LNG" truck refueling stations - of which some 70 are mothballed - may have passed the point of no return in significantly wiping out common shareholder value.

Well-established petroleum retailers are rapidly building out competing compressed natural gas or "CNG" refueling stations: winning over CLNE's customers who overwhelmingly desire CNG, not LNG for their trucks. Retrofitting the company's LNG stations to also dispense CNG will burn another $150 million or more of its remaining approximate $350 million leveraged cash position. Even then, the resulting LNG-to-CNG fuel will be prohibitively expensive.

LNG Trucks: Small Niche-Within-A-Niche...

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