2. Agenda
โข An Intro to Natural Gas
โข Why now?
โข The NATGAS Act of 2011
โข Clean Energy Fuels Corp
โ Or Chart Industries
โข When to Buy
โข Closing Statement
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5. An Intro to Natural Gas
โข In the past 10 years natural gas prices averaged around $4
per million BTU
โ In 05-08 averaged around $7, but new tech like โfrackingโ and
horizontal drilling has unlocked a LOT of new supply
โ Currently demand is higher than EVER but prices are at $3.32!
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6. An Intro to Natural Gas
โข Currently over 13 million natural gas vehicles worldwide
โ Almost 3 million drivers in Pakistan drive CNG or LNG vehicles
โข These drivers enjoy:
โ Low fuel prices
โข In Q4 2010 drivers paid $3.08 for gasoline vs. $1.93 for NATGAS
โ Longer engine lives
โข It is quite common to find cars with over 500,000 miles
โ A safer drive
โข CNG cars are considered safer than gasoline cars
โ THE ABILITY TO REFUEL AT HOME
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7. An Intro to Natural Gas
โข The United States has 112,000 NGVs
โ Many city buses, UPS, and Waste Management are early adopters
โ About 1,000 fuels stations nationally
โข Nationwide Insurance, in looking at the safety of natural gas buses in a fleet, concluded
that โโฆthe natural gas powered vehicles will be the safest vehicles in your fleet and (we)
have no reservations about insuring them.โ
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10. Why Now?
โข We need jobs
โ A new pipeline infrastructure would provide plenty of jobs nationwide
โ Estimated up to 400,000
โข We need independence from foreign oil
โ 98% of the natural gas we use is currently extracted in North America
โข Honda is now rolling out the Civic CNG nationwide to consumers
โ GM started selling to businesses last year
โข Consumers need to save money
โ 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!
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14. The NATGAS Act of 2011
โข Boone T. Pickens supports it
โข Currently being debated by Congress
โ 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.
โ It also includes a section to directing funding at the Department of
Energy for research and development to improve NGV performance
and
โ Paid for with vehicle natural gas tax over 10 years
โข There is hope! This bill has broad bi-partisan support in the house with
181 co-sponsors.
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16. What do they do?
โข Clean Energy Fuels Corp. (Clean Energy) sells natural gas fueling
solutions to its customers, primarily in the United States and Canada.
โ They are a main provider of natural gas as an alternative fuel for vehicle fleets.
โข The Company designs, builds, finances and operates fueling stations
and supplies the customers with compressed natural gas and liquefied
natural gas.
โข It also provides natural gas conversions,
alternative fuel systems, application engineering,
service and warranty support and research and
development for natural gas vehicles
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17. What do they do?
โ No Upfront Investment- โThink natural gas fueling stations arenโt
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 contractโ
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18. Fast Facts
โข Q3 Revenue at $72.1 million, up 58% from last year.
โข EBITDA in Q3 was $1.8 million compared to a loss of 600k in 2010
โข Chesapeake invested $150 million in a JV with CLNE
โข 40 companies under โnon-disclosureโ agreements, many Fortune 500
โ Ryder, Coca-Cola, Pepsi, Dean Foods, Rite Aid and Home Depot all testing LNG
trucks
โ Just signed a deal with Saddle Creek, who ships for Wal-Mart and Publix
โ AT&T plans to purchase 8,000 CNG vehicles through 2013
โข 40% of all trash trucks purchased in 2012 will be CNG
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19. Fast Facts
โข Clean Energy stations fuel 6,000 buses every night across the nation
โข Metro Taxi ordered 150 CNG Taxis for a fleet in Connecticut
โข CNG is $1.50-$2.00 cheaper than diesel fuel.
โ Average trucker uses 20,000-30,000 gallons a year= 50k in savings!
โ CNG engines cost 35k
โข You can see that CNG/LNG make economic sense for
companies to switch to
โ The fuel is not subsidized
โ This is unlike any other alternative fuel
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20. Americaโs Natural Gas Highway
โข Clean Energy is currently constructing natural gas stations at truck stops across
the nation
โข The plan is to have a station every 250 miles along most used trucking routes
โ CLNE adapts to big customers with these routes
โข There were 45 stations on the highway in 2010
โ 60 more currently under construction in 2011
โ Clean Energy plans to build 150 stations in 2012
โ Or almost one every 2 days
โข CLNE is prepared to be opening a few hundred stations a year by 2013-2014
โข Exponential Growth??
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30. What do they do?
โข 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.
โข It is a manufacturer of standard and engineered
equipment used for low-temperature and
cryogenic applications.
โข 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.
โข AKA they make pipes and storage to transport
natural gas
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33. Closing Remarks
โข โAs you know we tried to stay focused on the fleets, because thatโs what we have today, and we
think thatโs the kind of low hanging fruit. Something still tells me that weโre in a country thatโs
importing 60% of its oil. And that youโre starting to see $4 gasoline again. And when you donโt
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 weโre 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 togetherโฆ.โ
โAndrew Lttilefair, CEO
โข "If youโre a business that needs to transport goods, Iโm challenging you to replace your old fleet
with a clean energy fleet thatโs 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
โข "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 Actโ Reps. John Sullivan, R-OK; Dan Boren, D-OK; John Larson, D-
CT; and Kevin Brady, D-TX
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Proven Reserves doubled in 2011; now 1600% of reserves in 1975
Recommendation should be a pretty brief, but attention grabbing pitch why your company is the best investment. Try to use your most interesting or strong ideas in this section. Keep it under 5 minutes.
Recommendation should be a pretty brief, but attention grabbing pitch why your company is the best investment. Try to use your most interesting or strong ideas in this section. Keep it under 5 minutes.
