EnergyShane Jarman      11/19/11
Agenda• An Intro to Natural Gas• Why now?• The NATGAS Act of 2011• Clean Energy Fuels Corp  – Or Chart Industries• When to...
An Intro to Natural Gas
An Intro to Natural Gas                  4
An Intro to Natural Gas• In the past 10 years natural gas prices averaged around $4  per million BTU  – In 05-08 averaged ...
An Intro to Natural Gas• Currently over 13 million natural gas vehicles worldwide  – Almost 3 million drivers in Pakistan ...
An Intro to Natural Gas• The United States has 112,000 NGVs   – Many city buses, UPS, and Waste Management are early adopt...
An Intro to Natural Gas                  8
Why Now?
Why Now?• We need jobs  – A new pipeline infrastructure would provide plenty of jobs nationwide  – Estimated up to 400,000...
Why Now?           11
Why Now?           12
The NATGAS Act of 2011
The NATGAS Act of 2011• Boone T. Pickens supports it• Currently being debated by Congress   – The bill seeks to promote na...
Clean Energy Fuels Corp
What do they do?• Clean Energy Fuels Corp. (Clean Energy) sells natural gas fueling  solutions to its customers, primarily...
What do they do? – No Upfront Investment- “Think natural gas fueling stations aren’t   affordable? Think again. For qualif...
Fast Facts• Q3 Revenue at $72.1 million, up 58% from last year.• EBITDA in Q3 was $1.8 million compared to a loss of 600k ...
Fast Facts• Clean Energy stations fuel 6,000 buses every night across the nation• Metro Taxi ordered 150 CNG Taxis for a f...
America’s Natural Gas Highway• Clean Energy is currently constructing natural gas stations at truck stops across  the nati...
Financials
Past 4 Years Results– (in thousands)                   22
Quarterly EPS                23
Stock Snapshot• Key Stock Statistics• Market Cap                      $882.06MM• 52-Week Range                 $9.02-$17.8...
Clean Energy               25
Stock Performance
Last 9 Months                27
Analyst Recommendations• Not a well covered stock                             28
Chart Industries
What do they do?• Chart Industries, Inc. (Chart) is an independent   global manufacturer of engineered equipment  used in ...
Analyst Recommendations               31
Closing Remarks
Closing Remarks• “As you know we tried to stay focused on the fleets, because that’s what we have today, and we  think tha...
Closing Remarks                  34
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The Natural Gas Revolution

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  • The Natural Gas Revolution

    1. 1. EnergyShane Jarman 11/19/11
    2. 2. Agenda• An Intro to Natural Gas• Why now?• The NATGAS Act of 2011• Clean Energy Fuels Corp – Or Chart Industries• When to Buy• Closing Statement 2
    3. 3. An Intro to Natural Gas
    4. 4. An Intro to Natural Gas 4
    5. 5. An Intro to Natural Gas• In the past 10 years natural gas prices averaged around $4 per million BTU – In 05-08 averaged around $7, but new tech like “fracking” and horizontal drilling has unlocked a LOT of new supply – Currently demand is higher than EVER but prices are at $3.32! 5
    6. 6. An Intro to Natural Gas• Currently over 13 million natural gas vehicles worldwide – Almost 3 million drivers in Pakistan drive CNG or LNG vehicles• These drivers enjoy: – Low fuel prices • In Q4 2010 drivers paid $3.08 for gasoline vs. $1.93 for NATGAS – Longer engine lives • It is quite common to find cars with over 500,000 miles – A safer drive • CNG cars are considered safer than gasoline cars – THE ABILITY TO REFUEL AT HOME 6
    7. 7. An Intro to Natural Gas• The United States has 112,000 NGVs – Many city buses, UPS, and Waste Management are early adopters – About 1,000 fuels stations nationally• Nationwide Insurance, in looking at the safety of natural gas buses in a fleet, concluded that “…the natural gas powered vehicles will be the safest vehicles in your fleet and (we) have no reservations about insuring them.” 7
    8. 8. An Intro to Natural Gas 8
    9. 9. Why Now?
    10. 10. Why Now?• We need jobs – A new pipeline infrastructure would provide plenty of jobs nationwide – Estimated up to 400,000• We need independence from foreign oil – 98% of the natural gas we use is currently extracted in North America• Honda is now rolling out the Civic CNG nationwide to consumers – GM started selling to businesses last year• Consumers need to save money – Fill the tank of the new Civic CNG for $11 and drive 200 miles. That money can go to retail spending or maybe even saving! 10
    11. 11. Why Now? 11
    12. 12. Why Now? 12
    13. 13. The NATGAS Act of 2011
    14. 14. The NATGAS Act of 2011• Boone T. Pickens supports it• Currently being debated by Congress – The bill seeks to promote natural gas as a transportation fuel by providing expanded tax incentives for the purchase and production of natural gas vehicles (NGVs) and the installation of natural gas refueling infrastructure. – It also includes a section to directing funding at the Department of Energy for research and development to improve NGV performance and – Paid for with vehicle natural gas tax over 10 years• There is hope! This bill has broad bi-partisan support in the house with 181 co-sponsors. 14
    15. 15. Clean Energy Fuels Corp
    16. 16. What do they do?• Clean Energy Fuels Corp. (Clean Energy) sells natural gas fueling solutions to its customers, primarily in the United States and Canada. – They are a main provider of natural gas as an alternative fuel for vehicle fleets.• The Company designs, builds, finances and operates fueling stations and supplies the customers with compressed natural gas and liquefied natural gas.• It also provides natural gas conversions, alternative fuel systems, application engineering, service and warranty support and research and development for natural gas vehicles 16
    17. 17. What do they do? – No Upfront Investment- “Think natural gas fueling stations aren’t affordable? Think again. For qualifying fleet clients, we provide 100% of the capital needed to design, build and maintain your state- of-the-art fueling stations, in return for a long-term fueling contract” 17
    18. 18. Fast Facts• Q3 Revenue at $72.1 million, up 58% from last year.• EBITDA in Q3 was $1.8 million compared to a loss of 600k in 2010• Chesapeake invested $150 million in a JV with CLNE• 40 companies under “non-disclosure” agreements, many Fortune 500 – Ryder, Coca-Cola, Pepsi, Dean Foods, Rite Aid and Home Depot all testing LNG trucks – Just signed a deal with Saddle Creek, who ships for Wal-Mart and Publix – AT&T plans to purchase 8,000 CNG vehicles through 2013• 40% of all trash trucks purchased in 2012 will be CNG 18
    19. 19. Fast Facts• Clean Energy stations fuel 6,000 buses every night across the nation• Metro Taxi ordered 150 CNG Taxis for a fleet in Connecticut• CNG is $1.50-$2.00 cheaper than diesel fuel. – Average trucker uses 20,000-30,000 gallons a year= 50k in savings! – CNG engines cost 35k• You can see that CNG/LNG make economic sense for companies to switch to – The fuel is not subsidized – This is unlike any other alternative fuel 19
    20. 20. America’s Natural Gas Highway• Clean Energy is currently constructing natural gas stations at truck stops across the nation• The plan is to have a station every 250 miles along most used trucking routes – CLNE adapts to big customers with these routes• There were 45 stations on the highway in 2010 – 60 more currently under construction in 2011 – Clean Energy plans to build 150 stations in 2012 – Or almost one every 2 days• CLNE is prepared to be opening a few hundred stations a year by 2013-2014• Exponential Growth?? 20
    21. 21. Financials
    22. 22. Past 4 Years Results– (in thousands) 22
    23. 23. Quarterly EPS 23
    24. 24. Stock Snapshot• Key Stock Statistics• Market Cap $882.06MM• 52-Week Range $9.02-$17.85• Last Trade $12.53• Gross Profit $69,945,000• EPS -$0.10• Total Cash $57,693,000• Long-term Debt $41,704,000• % held by institutions 34.0%• P/E Ratio ERROR 24
    25. 25. Clean Energy 25
    26. 26. Stock Performance
    27. 27. Last 9 Months 27
    28. 28. Analyst Recommendations• Not a well covered stock 28
    29. 29. Chart Industries
    30. 30. What do they do?• Chart Industries, Inc. (Chart) is an independent global manufacturer of engineered equipment used in the production, storage and end-use of hydrocarbon and industrial gases.• It is a manufacturer of standard and engineered equipment used for low-temperature and cryogenic applications.• Our industrial gas equipment is used throughout the liquid gas supply chain in the production, storage and end use of natural gas and industrial gases.• AKA they make pipes and storage to transport natural gas 30
    31. 31. Analyst Recommendations 31
    32. 32. Closing Remarks
    33. 33. Closing Remarks• “As you know we tried to stay focused on the fleets, because that’s what we have today, and we think that’s the kind of low hanging fruit. Something still tells me that we’re in a country that’s importing 60% of its oil. And that you’re starting to see $4 gasoline again. And when you don’t even really have a real good robust economy anywhere in the world. And when the automakers can produce 62 makes and models in Europe of natural gas vehicle and we’re a country that has the most natural gas reserves of any country in the world, something tells me that eventually someone has to put that together….” –Andrew Lttilefair, CEO• "If you’re a business that needs to transport goods, I’m challenging you to replace your old fleet with a clean energy fleet that’s not only good for your bottom line, but good for our economy, good for our country and good for our planet."---President Barack Obama, speaking at a UPS facility in Maryland• "Natural gas is a clean, cheaper, more abundant alternative... and it is in both our economic and national security interest to use the vast reserves we have right here in our own backyard. We encourage the Administration and our colleagues in the House and Senate to join our efforts by supporting the NAT GAS Act” Reps. John Sullivan, R-OK; Dan Boren, D-OK; John Larson, D- CT; and Kevin Brady, D-TX 33
    34. 34. Closing Remarks 34

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