Seeking Alpha

3M (MMM) is partnering with Chesapeake Energy (CHK) to develop and sell a family of compressed...

3M (MMM) is partnering with Chesapeake Energy (CHK) to develop and sell a family of compressed natural gas (CNG) tanks for vehicles. The companies boast their tanks will be cheaper, lighter, and safer than current solutions, while offering 10%-20% more capacity. Clean Energy Fuels (CLNE +2.7%), which in July received a $150M investment from Chesapeake, is rallying on the news.
Comments (3)
  • kirk otis
    , contributor
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    CLNE is earning a loss and trades at a pretty high multiple to its revenue. Are people investing because this is clean and thus a noble thing to do, or is there a financial justification that I am missing?
    21 Feb 2012, 01:28 PM Reply Like
  • richardx
    , contributor
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    CLNE is hurting until our government OK's natural gas for vehicles and then it will be for trucks not cars. With that said there is an interest by GM (and a stake by them) in WPRT for it's gas conversion units. CLNE is Boone Pickens baby.
    21 Feb 2012, 01:43 PM Reply Like
  • Big Blue 197
    , contributor
    Comments (2) | Send Message
     
    Any disruption to the world's oil supply shifts a lot of attention to natural gas. Growing demand in China and India (as they develop a more auto-centric culture) places massive strain on a fragile oil supply system. An investment in CLNE is a thinly veiled acknowedgement that there are all kinds of things that can go wrong wtih imported oil. Natural gas is an obvious alternative: it's abundant in the US, extremely clean, and it costs over $1 less per gallon than gasoline or diesel. CLNE is perfectly positioned to skyrocket in the coming years as they build their natural gas infrastructure. Kirk, what they are doing is a noble thing to do but at the same time, the planets are lined up to bring them huge growth. Whether or not you like Boone Pickens, you have to admit he knows a thing or two about natural gas, and he has invested heavily in CLNE. Bet against him at your own peril.
    22 Feb 2012, 12:39 PM Reply Like
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