000001368265--12-312021Q1false0000000000199815018198491204P12M5000000030000000us-gaap:RevenueFromContractWithCustomerExcludingAssessedTaxus-gaap:RevenueFromContractWithCustomerExcludingAssessedTaxus-gaap:UnrealizedGainLossOnCommodityContractsus-gaap:UnrealizedGainLossOnCommodityContractsP5YP61D00013682652020-03-1200013682652020-03-122021-03-310001368265us-gaap:CommonStockMember2021-01-012021-03-310001368265us-gaap:CommonStockMember2020-01-012020-03-310001368265us-gaap:RetainedEarningsMember2021-03-310001368265us-gaap:NoncontrollingInterestMember2021-03-310001368265us-gaap:AdditionalPaidInCapitalMember2021-03-310001368265us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-03-310001368265us-gaap:RetainedEarningsMember2020-12-310001368265us-gaap:NoncontrollingInterestMember2020-12-310001368265us-gaap:AdditionalPaidInCapitalMember2020-12-310001368265us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-12-310001368265us-gaap:RetainedEarningsMember2020-03-310001368265us-gaap:NoncontrollingInterestMember2020-03-310001368265us-gaap:AdditionalPaidInCapitalMember2020-03-310001368265us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-03-310001368265us-gaap:RetainedEarningsMember2019-12-310001368265us-gaap:NoncontrollingInterestMember2019-12-310001368265us-gaap:AdditionalPaidInCapitalMember2019-12-310001368265us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-12-310001368265us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:CertificatesOfDepositMember2021-03-310001368265us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CertificatesOfDepositMember2021-03-310001368265us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:CertificatesOfDepositMember2020-12-310001368265us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CertificatesOfDepositMember2020-12-310001368265us-gaap:SubsequentEventMember2021-04-150001368265srt:MinimumMember2021-03-310001368265srt:MaximumMember2021-03-310001368265clne:StationConstructionSalesMember2021-01-012021-03-310001368265clne:FederalAlternativeFuelsTaxCreditMember2021-01-012021-03-310001368265clne:StationConstructionSalesMember2020-01-012020-03-310001368265clne:FederalAlternativeFuelsTaxCreditMember2020-01-012020-03-310001368265us-gaap:CollateralPledgedMember2021-03-310001368265us-gaap:StandbyLettersOfCreditMember2020-12-310001368265us-gaap:CollateralPledgedMember2020-12-310001368265clne:TOTLS.aMember2021-01-012021-03-310001368265clne:SAFECECS.r.l.Member2021-01-012021-03-310001368265clne:TOTLS.aMember2020-01-012020-03-310001368265clne:SAFECECS.r.l.Member2020-01-012020-03-310001368265us-gaap:OtherEnergyEquipmentMember2021-03-310001368265us-gaap:LandMember2021-03-310001368265us-gaap:GasTransmissionEquipmentMember2021-03-310001368265us-gaap:GasGatheringAndProcessingEquipmentMember2021-03-310001368265us-gaap:ConstructionInProgressMember2021-03-310001368265clne:LNGLiquefactionPlantMember2021-03-310001368265us-gaap:OtherEnergyEquipmentMember2020-12-310001368265us-gaap:LandMember2020-12-310001368265us-gaap:GasTransmissionEquipmentMember2020-12-310001368265us-gaap:GasGatheringAndProcessingEquipmentMember2020-12-310001368265us-gaap:ConstructionInProgressMember2020-12-310001368265clne:LNGLiquefactionPlantMember2020-12-310001368265us-gaap:RetainedEarningsMember2021-01-012021-03-310001368265us-gaap:RetainedEarningsMember2020-01-012020-03-310001368265us-gaap:AutomobileLoanMember2021-03-310001368265us-gaap:AccruedIncomeReceivableMember2021-03-310001368265clne:MiscellaneousOtherReceivablesMember2021-03-310001368265clne:FuelTaxAndCarbonCreditsMember2021-03-310001368265us-gaap:AutomobileLoanMember2020-12-310001368265us-gaap:AccruedIncomeReceivableMember2020-12-310001368265clne:MiscellaneousOtherReceivablesMember2020-12-310001368265clne:FuelTaxAndCarbonCreditsMember2020-12-310001368265us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-01-012021-03-310001368265us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-01-012020-03-310001368265clne:NgAdvantageMember2021-01-012021-03-310001368265clne:NgAdvantageMember2020-01-012020-03-310001368265clne:BerkshireBankMemberclne:RestrictedCashNonCurrentMemberclne:NGAdvantageDebtMember2020-12-100001368265clne:SocitGnraleMemberclne:TermLoanFacilityMember2019-01-022019-01-020001368265clne:PlainsLsaLoanAndSecurityAgreementMemberus-gaap:SubsequentEventMember2021-05-010001368265clne:SocitGnraleMemberclne:TermLoanFacilityMemberus-gaap:BuildingAndBuildingImprovementsMember2021-03-120001368265clne:SocitGnraleMemberclne:TermLoanFacilityMemberclne:AdgRngProductionFacilitiesMember2021-03-030001368265clne:BerkshireBankMemberus-gaap:RevolvingCreditFacilityMemberclne:NGAdvantageDebtMember2020-12-100001368265srt:MinimumMemberclne:PlainsLsaLoanAndSecurityAgreementMemberus-gaap:SubsequentEventMember2021-05-010001368265clne:BerkshireBankMemberus-gaap:RevolvingCreditFacilityMemberclne:NGAdvantageDebtMember2021-01-012021-03-310001368265clne:SAFECECS.r.l.Member2021-01-012021-03-310001368265clne:SAFECECS.r.l.Member2020-01-012020-03-310001368265clne:BerkshireBankMemberus-gaap:InterestExpenseMemberclne:NGAdvantageDebtMember2020-01-012020-12-310001368265us-gaap:EmbeddedDerivativeFinancialInstrumentsMember2021-03-310001368265us-gaap:EmbeddedDerivativeFinancialInstrumentsMember2020-12-310001368265us-gaap:WarrantMember2020-03-310001368265us-gaap:EmbeddedDerivativeFinancialInstrumentsMember2020-03-310001368265us-gaap:WarrantMember2019-12-310001368265us-gaap:SwapMember2019-12-310001368265us-gaap:EmbeddedDerivativeFinancialInstrumentsMember2019-12-310001368265us-gaap:SwapMember2021-01-012021-03-310001368265us-gaap:SwapMember2021-03-310001368265us-gaap:EmbeddedDerivativeFinancialInstrumentsMember2021-03-310001368265us-gaap:SwapMember2020-12-310001368265us-gaap:EmbeddedDerivativeFinancialInstrumentsMember2020-12-310001368265us-gaap:SwapMember2020-03-310001368265us-gaap:EmbeddedDerivativeFinancialInstrumentsMember2020-03-310001368265us-gaap:SwapMember2019-12-310001368265us-gaap:EmbeddedDerivativeFinancialInstrumentsMember2019-12-310001368265clne:VolumeRelatedRevenueMember2021-01-012021-03-310001368265clne:VolumeRelatedRevenueMember2020-01-012020-03-310001368265us-gaap:EmbeddedDerivativeFinancialInstrumentsMember2021-01-012021-03-310001368265us-gaap:WarrantMember2020-01-012020-03-310001368265us-gaap:SwapMember2020-01-012020-03-310001368265us-gaap:EmbeddedDerivativeFinancialInstrumentsMember2020-01-012020-03-310001368265us-gaap:SwapMember2021-01-012021-03-310001368265us-gaap:EmbeddedDerivativeFinancialInstrumentsMember2021-01-012021-03-310001368265us-gaap:SwapMember2020-01-012020-03-310001368265us-gaap:EmbeddedDerivativeFinancialInstrumentsMember2020-01-012020-03-310001368265clne:SAFECECS.r.l.Member2021-03-310001368265clne:SAFECECS.r.l.Member2020-12-310001368265srt:MaximumMemberus-gaap:SubsequentEventMemberclne:TransactionAgreementWithAmazonMember2021-04-160001368265clne:NgAdvantageMemberclne:CommonUnitPurchaseAgreementMember2021-02-280001368265clne:LandiRenzoS.p.A.Memberclne:SAFECECS.r.l.Member2017-12-290001368265clne:SAFECECS.r.l.Member2017-12-290001368265clne:TOTLS.aMember2021-03-310001368265clne:SAFECECS.r.l.Member2021-03-310001368265clne:TOTLS.aMember2020-12-310001368265clne:SAFECECS.r.l.Member2020-12-310001368265us-gaap:CommodityContractMemberus-gaap:NondesignatedMember2021-03-310001368265clne:CommoditySwap2024Memberus-gaap:NondesignatedMember2021-03-310001368265clne:CommoditySwap2023Memberus-gaap:NondesignatedMember2021-03-310001368265clne:CommoditySwap2022Memberus-gaap:NondesignatedMember2021-03-310001368265clne:CommoditySwap2021Memberus-gaap:NondesignatedMember2021-03-310001368265us-gaap:CommodityContractMemberus-gaap:NondesignatedMember2020-12-310001368265clne:CommoditySwap2024Memberus-gaap:NondesignatedMember2020-12-310001368265clne:CommoditySwap2023Memberus-gaap:NondesignatedMember2020-12-310001368265clne:CommoditySwap2022Memberus-gaap:NondesignatedMember2020-12-310001368265clne:CommoditySwap2021Memberus-gaap:NondesignatedMember2020-12-310001368265us-gaap:CommodityContractMemberus-gaap:NondesignatedMember2021-01-012021-03-310001368265clne:CommoditySwap2024Memberus-gaap:NondesignatedMember2021-01-012021-03-310001368265clne:CommoditySwap2023Memberus-gaap:NondesignatedMember2021-01-012021-03-310001368265clne:CommoditySwap2022Memberus-gaap:NondesignatedMember2021-01-012021-03-310001368265clne:CommoditySwap2021Memberus-gaap:NondesignatedMember2021-01-012021-03-310001368265us-gaap:CommodityContractMemberus-gaap:NondesignatedMember2020-01-012020-12-310001368265clne:CommoditySwap2024Memberus-gaap:NondesignatedMember2020-01-012020-12-310001368265clne:CommoditySwap2023Memberus-gaap:NondesignatedMember2020-01-012020-12-310001368265clne:CommoditySwap2022Memberus-gaap:NondesignatedMember2020-01-012020-12-310001368265clne:CommoditySwap2021Memberus-gaap:NondesignatedMember2020-01-012020-12-310001368265us-gaap:CommodityContractMemberus-gaap:NondesignatedMember2018-10-012018-10-310001368265us-gaap:OtherNoncurrentLiabilitiesMemberclne:FuelContractMemberus-gaap:NondesignatedMember2021-03-310001368265us-gaap:AccountsPayableAndAccruedLiabilitiesMemberclne:FuelContractMemberus-gaap:NondesignatedMember2021-03-310001368265us-gaap:OtherNoncurrentLiabilitiesMemberclne:FuelContractMemberus-gaap:NondesignatedMember2020-12-310001368265us-gaap:AccountsPayableAndAccruedLiabilitiesMemberclne:FuelContractMemberus-gaap:NondesignatedMember2020-12-310001368265us-gaap:PrepaidExpensesAndOtherCurrentAssetsMemberclne:FuelContractMemberus-gaap:NondesignatedMember2021-03-310001368265us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:SwapMember2021-03-310001368265us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:EmbeddedDerivativeFinancialInstrumentsMember2021-03-310001368265clne:LongTermInvestmentsAndReceivablesMemberclne:FuelContractMemberus-gaap:NondesignatedMember2021-03-310001368265clne:DerivativeAssetsCurrentRelatedPartyMemberus-gaap:CommodityContractMemberus-gaap:NondesignatedMember2021-03-310001368265clne:DerivativeAssetNoncurrentRelatedPartyMemberus-gaap:CommodityContractMemberus-gaap:NondesignatedMember2021-03-310001368265us-gaap:FairValueMeasurementsRecurringMemberus-gaap:SwapMember2021-03-310001368265us-gaap:FairValueMeasurementsRecurringMemberus-gaap:EmbeddedDerivativeFinancialInstrumentsMember2021-03-310001368265us-gaap:NondesignatedMember2021-03-310001368265us-gaap:PrepaidExpensesAndOtherCurrentAssetsMemberclne:FuelContractMemberus-gaap:NondesignatedMember2020-12-310001368265us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:SwapMember2020-12-310001368265us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:EmbeddedDerivativeFinancialInstrumentsMember2020-12-310001368265clne:LongTermInvestmentsAndReceivablesMemberclne:FuelContractMemberus-gaap:NondesignatedMember2020-12-310001368265clne:DerivativeAssetsCurrentRelatedPartyMemberus-gaap:CommodityContractMemberus-gaap:NondesignatedMember2020-12-310001368265clne:DerivativeAssetNoncurrentRelatedPartyMemberus-gaap:CommodityContractMemberus-gaap:NondesignatedMember2020-12-310001368265us-gaap:FairValueMeasurementsRecurringMemberus-gaap:SwapMember2020-12-310001368265us-gaap:FairValueMeasurementsRecurringMemberus-gaap:EmbeddedDerivativeFinancialInstrumentsMember2020-12-310001368265us-gaap:NondesignatedMember2020-12-310001368265us-gaap:CommodityContractMemberus-gaap:NondesignatedMember2018-10-310001368265srt:WeightedAverageMemberus-gaap:CommodityContractMemberus-gaap:FairValueInputsLevel3Memberus-gaap:NondesignatedMemberus-gaap:MeasurementInputCommodityForwardPriceMemberus-gaap:ValuationTechniqueDiscountedCashFlowMember2021-03-310001368265srt:WeightedAverageMemberus-gaap:CommodityContractMemberus-gaap:FairValueInputsLevel3Memberus-gaap:NondesignatedMemberclne:HistoricalDifferentialToPetroleumAdministrationForDefenseDistrict5DieselMemberus-gaap:ValuationTechniqueDiscountedCashFlowMember2021-03-310001368265srt:WeightedAverageMemberus-gaap:CommodityContractMemberus-gaap:FairValueInputsLevel3Memberus-gaap:NondesignatedMemberclne:HistoricalDifferentialToPetroleumAdministrationForDefenseDistrict3DieselMemberus-gaap:ValuationTechniqueDiscountedCashFlowMember2021-03-310001368265srt:WeightedAverageMemberclne:FuelContractMemberus-gaap:FairValueInputsLevel3Memberus-gaap:NondesignatedMemberus-gaap:MeasurementInputCommodityForwardPriceMemberus-gaap:ValuationTechniqueDiscountedCashFlowMember2021-03-310001368265srt:WeightedAverageMemberclne:FuelContractMemberus-gaap:FairValueInputsLevel3Memberus-gaap:NondesignatedMemberclne:HistoricalDifferentialToPetroleumAdministrationForDefenseDistrict5DieselMemberus-gaap:ValuationTechniqueDiscountedCashFlowMember2021-03-310001368265srt:WeightedAverageMemberclne:FuelContractMemberus-gaap:FairValueInputsLevel3Memberus-gaap:NondesignatedMemberclne:HistoricalDifferentialToPetroleumAdministrationForDefenseDistrict3DieselMemberus-gaap:ValuationTechniqueDiscountedCashFlowMember2021-03-310001368265srt:MinimumMemberus-gaap:CommodityContractMemberus-gaap:FairValueInputsLevel3Memberus-gaap:NondesignatedMemberus-gaap:MeasurementInputCommodityForwardPriceMemberus-gaap:ValuationTechniqueDiscountedCashFlowMember2021-03-310001368265srt:MinimumMemberus-gaap:CommodityContractMemberus-gaap:FairValueInputsLevel3Memberus-gaap:NondesignatedMemberclne:HistoricalDifferentialToPetroleumAdministrationForDefenseDistrict5DieselMemberus-gaap:ValuationTechniqueDiscountedCashFlowMember2021-03-310001368265srt:MinimumMemberus-gaap:CommodityContractMemberus-gaap:FairValueInputsLevel3Memberus-gaap:NondesignatedMemberclne:HistoricalDifferentialToPetroleumAdministrationForDefenseDistrict3DieselMemberus-gaap:ValuationTechniqueDiscountedCashFlowMember2021-03-310001368265srt:MinimumMemberclne:FuelContractMemberus-gaap:FairValueInputsLevel3Memberus-gaap:NondesignatedMemberus-gaap:MeasurementInputCommodityForwardPriceMemberus-gaap:ValuationTechniqueDiscountedCashFlowMember2021-03-310001368265srt:MinimumMemberclne:FuelContractMemberus-gaap:FairValueInputsLevel3Memberus-gaap:NondesignatedMemberclne:HistoricalDifferentialToPetroleumAdministrationForDefenseDistrict5DieselMemberus-gaap:ValuationTechniqueDiscountedCashFlowMember2021-03-310001368265srt:MinimumMemberclne:FuelContractMemberus-gaap:FairValueInputsLevel3Memberus-gaap:NondesignatedMemberclne:HistoricalDifferentialToPetroleumAdministrationForDefenseDistrict3DieselMemberus-gaap:ValuationTechniqueDiscountedCashFlowMember2021-03-310001368265srt:MaximumMemberus-gaap:CommodityContractMemberus-gaap:FairValueInputsLevel3Memberus-gaap:NondesignatedMemberus-gaap:MeasurementInputCommodityForwardPriceMemberus-gaap:ValuationTechniqueDiscountedCashFlowMember2021-03-310001368265srt:MaximumMemberus-gaap:CommodityContractMemberus-gaap:FairValueInputsLevel3Memberus-gaap:NondesignatedMemberclne:HistoricalDifferentialToPetroleumAdministrationForDefenseDistrict5DieselMemberus-gaap:ValuationTechniqueDiscountedCashFlowMember2021-03-310001368265srt:MaximumMemberus-gaap:CommodityContractMemberus-gaap:FairValueInputsLevel3Memberus-gaap:NondesignatedMemberclne:HistoricalDifferentialToPetroleumAdministrationForDefenseDistrict3DieselMemberus-gaap:ValuationTechniqueDiscountedCashFlowMember2021-03-310001368265srt:MaximumMemberclne:FuelContractMemberus-gaap:FairValueInputsLevel3Memberus-gaap:NondesignatedMemberus-gaap:MeasurementInputCommodityForwardPriceMemberus-gaap:ValuationTechniqueDiscountedCashFlowMember2021-03-310001368265srt:MaximumMemberclne:FuelContractMemberus-gaap:FairValueInputsLevel3Memberus-gaap:NondesignatedMemberclne:HistoricalDifferentialToPetroleumAdministrationForDefenseDistrict5DieselMemberus-gaap:ValuationTechniqueDiscountedCashFlowMember2021-03-310001368265srt:MaximumMemberclne:FuelContractMemberus-gaap:FairValueInputsLevel3Memberus-gaap:NondesignatedMemberclne:HistoricalDifferentialToPetroleumAdministrationForDefenseDistrict3DieselMemberus-gaap:ValuationTechniqueDiscountedCashFlowMember2021-03-310001368265srt:WeightedAverageMemberus-gaap:CommodityContractMemberus-gaap:FairValueInputsLevel3Memberus-gaap:NondesignatedMemberus-gaap:MeasurementInputCommodityForwardPriceMemberus-gaap:ValuationTechniqueDiscountedCashFlowMember2020-12-310001368265srt:WeightedAverageMemberus-gaap:CommodityContractMemberus-gaap:FairValueInputsLevel3Memberus-gaap:NondesignatedMemberclne:HistoricalDifferentialToPetroleumAdministrationForDefenseDistrict5DieselMemberus-gaap:ValuationTechniqueDiscountedCashFlowMember2020-12-310001368265srt:WeightedAverageMemberus-gaap:CommodityContractMemberus-gaap:FairValueInputsLevel3Memberus-gaap:NondesignatedMemberclne:HistoricalDifferentialToPetroleumAdministrationForDefenseDistrict3DieselMemberus-gaap:ValuationTechniqueDiscountedCashFlowMember2020-12-310001368265srt:WeightedAverageMemberclne:FuelContractMemberus-gaap:FairValueInputsLevel3Memberus-gaap:NondesignatedMemberus-gaap:MeasurementInputCommodityForwardPriceMemberus-gaap:ValuationTechniqueDiscountedCashFlowMember2020-12-310001368265srt:WeightedAverageMemberclne:FuelContractMemberus-gaap:FairValueInputsLevel3Memberus-gaap:NondesignatedMemberclne:HistoricalDifferentialToPetroleumAdministrationForDefenseDistrict5DieselMemberus-gaap:ValuationTechniqueDiscountedCashFlowMember2020-12-310001368265srt:WeightedAverageMemberclne:FuelContractMemberus-gaap:FairValueInputsLevel3Memberus-gaap:NondesignatedMemberclne:HistoricalDifferentialToPetroleumAdministrationForDefenseDistrict3DieselMemberus-gaap:ValuationTechniqueDiscountedCashFlowMember2020-12-310001368265srt:MinimumMemberus-gaap:CommodityContractMemberus-gaap:FairValueInputsLevel3Memberus-gaap:NondesignatedMemberus-gaap:MeasurementInputCommodityForwardPriceMemberus-gaap:ValuationTechniqueDiscountedCashFlowMember2020-12-310001368265srt:MinimumMemberus-gaap:CommodityContractMemberus-gaap:FairValueInputsLevel3Memberus-gaap:NondesignatedMemberclne:HistoricalDifferentialToPetroleumAdministrationForDefenseDistrict5DieselMemberus-gaap:ValuationTechniqueDiscountedCashFlowMember2020-12-310001368265srt:MinimumMemberus-gaap:CommodityContractMemberus-gaap:FairValueInputsLevel3Memberus-gaap:NondesignatedMemberclne:HistoricalDifferentialToPetroleumAdministrationForDefenseDistrict3DieselMemberus-gaap:ValuationTechniqueDiscountedCashFlowMember2020-12-310001368265srt:MinimumMemberclne:FuelContractMemberus-gaap:FairValueInputsLevel3Memberus-gaap:NondesignatedMemberus-gaap:MeasurementInputCommodityForwardPriceMemberus-gaap:ValuationTechniqueDiscountedCashFlowMember2020-12-310001368265srt:MinimumMemberclne:FuelContractMemberus-gaap:FairValueInputsLevel3Memberus-gaap:NondesignatedMemberclne:HistoricalDifferentialToPetroleumAdministrationForDefenseDistrict5DieselMemberus-gaap:ValuationTechniqueDiscountedCashFlowMember2020-12-310001368265srt:MinimumMemberclne:FuelContractMemberus-gaap:FairValueInputsLevel3Memberus-gaap:NondesignatedMemberclne:HistoricalDifferentialToPetroleumAdministrationForDefenseDistrict3DieselMemberus-gaap:ValuationTechniqueDiscountedCashFlowMember2020-12-310001368265srt:MaximumMemberus-gaap:CommodityContractMemberus-gaap:FairValueInputsLevel3Memberus-gaap:NondesignatedMemberus-gaap:MeasurementInputCommodityForwardPriceMemberus-gaap:ValuationTechniqueDiscountedCashFlowMember2020-12-310001368265srt:MaximumMemberus-gaap:CommodityContractMemberus-gaap:FairValueInputsLevel3Memberus-gaap:NondesignatedMemberclne:HistoricalDifferentialToPetroleumAdministrationForDefenseDistrict5DieselMemberus-gaap:ValuationTechniqueDiscountedCashFlowMember2020-12-310001368265srt:MaximumMemberus-gaap:CommodityContractMemberus-gaap:FairValueInputsLevel3Memberus-gaap:NondesignatedMemberclne:HistoricalDifferentialToPetroleumAdministrationForDefenseDistrict3DieselMemberus-gaap:ValuationTechniqueDiscountedCashFlowMember2020-12-310001368265srt:MaximumMemberclne:FuelContractMemberus-gaap:FairValueInputsLevel3Memberus-gaap:NondesignatedMemberus-gaap:MeasurementInputCommodityForwardPriceMemberus-gaap:ValuationTechniqueDiscountedCashFlowMember2020-12-310001368265srt:MaximumMemberclne:FuelContractMemberus-gaap:FairValueInputsLevel3Memberus-gaap:NondesignatedMemberclne:HistoricalDifferentialToPetroleumAdministrationForDefenseDistrict5DieselMemberus-gaap:ValuationTechniqueDiscountedCashFlowMember2020-12-310001368265srt:MaximumMemberclne:FuelContractMemberus-gaap:FairValueInputsLevel3Memberus-gaap:NondesignatedMemberclne:HistoricalDifferentialToPetroleumAdministrationForDefenseDistrict3DieselMemberus-gaap:ValuationTechniqueDiscountedCashFlowMember2020-12-310001368265clne:BerkshireBankMemberclne:FivePointZeroPercentTermLoanMaturingJanuary12026Memberclne:NGAdvantageDebtMember2020-12-102020-12-100001368265clne:SocitGnraleMemberclne:TermLoanFacilityMember2021-01-012021-03-310001368265srt:MaximumMemberclne:OtherDebtMember2021-03-310001368265clne:SaleLeasebackTransactionNgAdvantageCompressionStationFinancingLeaseObligationMember2018-12-200001368265clne:BPProductsNorthAmericaMemberclne:BpLoanMember2020-12-180001368265clne:BPProductsNorthAmericaMemberclne:BpLoanMember2020-12-180001368265clne:BerkshireBankMemberclne:FivePointZeroPercentTermLoanMaturingJanuary12026Memberclne:NGAdvantageDebtMember2020-12-100001368265clne:SocitGnraleMemberclne:TermLoanFacilityMember2021-03-310001368265clne:SGCreditAgreementMember2021-03-310001368265clne:OtherDebtMember2021-03-310001368265clne:NGAdvantageDebtMember2021-03-310001368265clne:BpLoanMember2021-03-310001368265clne:SGCreditAgreementMember2020-12-310001368265clne:OtherDebtMember2020-12-310001368265clne:NGAdvantageDebtMember2020-12-310001368265clne:BpLoanMember2020-12-310001368265clne:BPProductsNorthAmericaMemberclne:BpLoanMemberus-gaap:LondonInterbankOfferedRateLIBORMember2020-12-182020-12-180001368265clne:TotalHoldingsUSAInc.Memberclne:TermLoanFacilityMemberus-gaap:LondonInterbankOfferedRateLIBORMember2019-01-022019-01-020001368265clne:SocitGnraleMemberclne:TermLoanFacilityMemberus-gaap:LondonInterbankOfferedRateLIBORMember2019-01-022019-01-020001368265us-gaap:ServiceMember2021-01-012021-03-310001368265us-gaap:ProductMember2021-01-012021-03-310001368265us-gaap:ServiceMember2020-01-012020-03-310001368265us-gaap:ProductMember2020-01-012020-03-310001368265us-gaap:NoncontrollingInterestMember2021-01-012021-03-310001368265us-gaap:NoncontrollingInterestMember2020-01-012020-03-310001368265us-gaap:CommonStockMember2021-03-310001368265us-gaap:CommonStockMember2020-12-310001368265us-gaap:CommonStockMember2020-03-310001368265us-gaap:CommonStockMember2019-12-3100013682652020-03-3100013682652019-12-310001368265clne:NgAdvantageMember2021-03-310001368265clne:NgAdvantageMember2020-12-310001368265clne:NgAdvantageMemberclne:CommonUnitPurchaseAgreementMember2014-10-140001368265us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:USStatesAndPoliticalSubdivisionsMember2021-03-310001368265us-gaap:FairValueMeasurementsRecurringMemberus-gaap:USStatesAndPoliticalSubdivisionsMember2021-03-310001368265us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:USStatesAndPoliticalSubdivisionsMember2020-12-310001368265us-gaap:FairValueMeasurementsRecurringMemberus-gaap:USStatesAndPoliticalSubdivisionsMember2020-12-310001368265us-gaap:USStatesAndPoliticalSubdivisionsMember2021-03-310001368265us-gaap:CertificatesOfDepositMember2021-03-310001368265us-gaap:USStatesAndPoliticalSubdivisionsMember2020-12-310001368265us-gaap:CertificatesOfDepositMember2020-12-310001368265us-gaap:RestrictedStockUnitsRSUMember2021-01-012021-03-310001368265us-gaap:EmployeeStockOptionMember2021-01-012021-03-310001368265us-gaap:RestrictedStockUnitsRSUMember2020-01-012020-03-310001368265us-gaap:EmployeeStockOptionMember2020-01-012020-03-310001368265us-gaap:ConvertibleNotesPayableMember2020-01-012020-03-310001368265us-gaap:AdditionalPaidInCapitalMember2021-01-012021-03-310001368265us-gaap:AdditionalPaidInCapitalMember2020-01-012020-03-3100013682652021-04-300001368265clne:FirstNationalCapitalLlcMemberclne:SaleLeasebackTransactionFirstNationalCapitalLlcMasterLeaseAgreementMember2018-03-012018-03-010001368265clne:SaleLeasebackTransactionNgAdvantageCompressionStationFinancingLeaseObligationMember2018-12-202018-12-200001368265clne:FirstNationalCapitalLlcMemberclne:SaleLeasebackTransactionFirstNationalCapitalLlcMasterLeaseAgreementMember2018-03-010001368265clne:BankOfAmericaLeasingCapitalLlcMemberclne:SaleLeasebackTransactionBankOfAmericaMasterLeaseAgreementMember2017-12-180001368265clne:BankOfAmericaLeasingCapitalLlcMemberclne:SaleLeasebackTransactionBankOfAmericaMasterLeaseAgreementMember2017-12-182017-12-180001368265us-gaap:ParentMember2021-01-012021-03-310001368265us-gaap:ParentMember2020-01-012020-03-310001368265clne:BpJvJointVentureAgreementMemberus-gaap:CommonClassBMemberus-gaap:SubsequentEventMemberclne:AdgRngProductionFacilitiesMember2021-04-130001368265clne:CounterpartyToJointVentureBpMemberclne:BpJvJointVentureAgreementMemberus-gaap:CommonClassBMemberus-gaap:SubsequentEventMemberclne:AdgRngProductionFacilitiesMember2021-04-130001368265clne:CounterpartyToJointVentureBpMemberclne:BpJvJointVentureAgreementMemberus-gaap:CommonClassAMemberus-gaap:SubsequentEventMemberclne:AdgRngProductionFacilitiesMember2021-04-130001368265clne:BpJvJointVentureAgreementMemberus-gaap:CommonClassAMemberus-gaap:SubsequentEventMemberclne:AdgRngProductionFacilitiesMember2021-04-130001368265clne:WintrustCommercialFinanceMemberclne:FivePointOneSevenPercentTermLoanMemberclne:LoanAndSecurityAgreementMember2016-11-300001368265clne:TotalHoldingsUSAInc.Memberclne:TermLoanFacilityMember2019-01-020001368265clne:SocitGnraleMemberclne:TermLoanFacilityMember2019-01-020001368265clne:CounterpartyToJointVentureBpMemberclne:BpJvJointVentureAgreementMemberus-gaap:SubsequentEventMemberclne:AdgRngProductionFacilitiesMember2021-04-130001368265clne:BpJvJointVentureAgreementMemberus-gaap:SubsequentEventMemberclne:AdgRngProductionFacilitiesMember2021-04-130001368265clne:CounterpartyToJointVentureTotalMemberclne:TotalJvJointVentureAgreementMemberclne:AdgRngProductionFacilitiesMember2021-03-030001368265clne:TotalJvJointVentureAgreementMemberclne:AdgRngProductionFacilitiesMember2021-03-030001368265us-gaap:SubsequentEventMemberclne:TransactionAgreementWithAmazonMember2021-04-162021-04-160001368265us-gaap:SubsequentEventMemberclne:TransactionAgreementWithAmazonMember2021-04-1600013682652020-01-012020-03-3100013682652021-01-012021-03-3100013682652020-01-012020-12-3100013682652021-03-3100013682652020-12-31iso4217:USDiso4217:USDutr:galxbrli:purexbrli:sharesclne:installmentiso4217:USDxbrli:sharesclne:contractutr:gal

Table of Contents

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM 10-Q

(Mark One)

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2021

OR

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from                      to

Commission File Number: 001-33480

CLEAN ENERGY FUELS CORP.

(Exact name of registrant as specified in its charter)

Delaware

33-0968580

(State or other jurisdiction of incorporation or organization)

(I.R.S. Employer Identification No.)

4675 MacArthur Court, Suite 800, Newport Beach, CA 92660

(Address of principal executive offices, including zip code)

(949) 437-1000

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common stock, $0.0001 par value per share

CLNE

The Nasdaq Select Market LLC

(Nasdaq Global Select Market)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes No 

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes  No 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer 

Accelerated filer 

Non-accelerated filer 

Smaller reporting company 

Emerging growth company 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes  No 

As of April 30, 2021, there were 199,917,559 shares of the registrant’s common stock, par value $0.0001 per share, issued and outstanding.

Table of Contents

CLEAN ENERGY FUELS CORP. AND SUBSIDIARIES

INDEX

Table of Contents

PART I.—FINANCIAL INFORMATION

3

Item 1.—Financial Statements (Unaudited)

3

Item 2.—Management’s Discussion and Analysis of Financial Condition and Results of Operations

27

Item 3.—Quantitative and Qualitative Disclosures about Market Risk

39

Item 4.—Controls and Procedures

40

PART II.—OTHER INFORMATION

41

Item 1.—Legal Proceedings

41

Item 1A.—Risk Factors

41

Item 2.—Unregistered Sales of Equity Securities and Use of Proceeds

56

Item 3.—Defaults upon Senior Securities

56

Item 4.—Mine Safety Disclosures

56

Item 5.—Other Information

56

Item 6.—Exhibits

56

Unless the context indicates otherwise, all references to “Clean Energy,” the “Company,” “we,” “us,” or “our” in this report refer to Clean Energy Fuels Corp. together with its consolidated subsidiaries.

This report contains forward-looking statements. See the cautionary note regarding these statements in Part I, Item 2.-Management’s Discussion and Analysis of Financial Condition and Results of Operations of this report.

We own registered or unregistered trademark or service mark rights to Clean Energy™ and Clean Energy Renewables™. Although we do not use the “®” or “™” symbol in each instance in which one of our trademarks appears in this report, this should not be construed as any indication that we will not assert our rights thereto to the fullest extent under applicable law. Any other service marks, trademarks and trade names appearing in this report are the property of their respective owners.

2

Table of Contents

PART I.—FINANCIAL INFORMATION

Item 1.—Financial Statements (Unaudited)

Clean Energy Fuels Corp. and Subsidiaries

Condensed Consolidated Balance Sheets

(In thousands, except share and per share data; Unaudited)

December 31, 

March 31, 

2020

2021

Assets

Current assets:

 

  

 

  

Cash and cash equivalents

$

108,977

$

116,696

Short-term investments

 

29,528

 

29,529

Accounts receivable, net of allowance of $1,335 and $1,295 as of December 31, 2020 and March 31, 2021, respectively

 

61,784

 

64,175

Other receivables

 

23,655

 

25,669

Inventory

 

28,100

 

27,523

Prepaid expenses and other current assets

 

9,404

 

13,384

Derivative assets, related party

 

1,591

 

385

Total current assets

 

263,039

 

277,361

Operating lease right-of-use assets

25,967

35,231

Land, property and equipment, net

 

290,911

 

283,364

Long-term portion of restricted cash

 

11,000

 

7,003

Notes receivable and other long-term assets, net

 

27,299

 

32,582

Long-term portion of derivative assets, related party

 

4,057

 

962

Investments in other entities

 

27,962

 

26,608

Goodwill

 

64,328

 

64,328

Intangible assets, net

 

464

 

317

Total assets

$

715,027

$

727,756

Liabilities and Stockholders' Equity

 

  

 

  

Current liabilities:

 

  

 

  

Current portion of debt

$

3,592

$

6,761

Current portion of finance lease obligations

840

809

Current portion of operating lease obligations

2,822

3,134

Accounts payable

 

17,310

 

17,461

Accrued liabilities

 

52,637

 

53,162

Deferred revenue

 

2,642

 

4,499

Total current liabilities

 

79,843

 

85,826

Long-term portion of debt

82,088

80,044

Long-term portion of finance lease obligations

2,552

2,709

Long-term portion of operating lease obligations

23,698

32,342

Other long-term liabilities

 

3,996

 

5,729

Total liabilities

 

192,177

 

206,650

Commitments and contingencies (Note 17)

 

  

 

  

Stockholders’ equity:

 

  

 

  

Preferred stock, $0.0001 par value. 1,000,000 shares authorized; no shares issued and outstanding

 

 

Common stock, $0.0001 par value. 304,000,000 shares authorized; 198,491,204 shares and 199,815,018 shares issued and outstanding as of December 31, 2020 and March 31, 2021, respectively

 

20

 

20

Additional paid-in capital

 

1,191,791

 

1,198,374

Accumulated deficit

 

(678,096)

 

(685,265)

Accumulated other comprehensive loss

 

(209)

 

(1,089)

Total Clean Energy Fuels Corp. stockholders’ equity

 

513,506

 

512,040

Noncontrolling interest in subsidiary

 

9,344

 

9,066

Total stockholders’ equity

 

522,850

 

521,106

Total liabilities and stockholders’ equity

$

715,027

$

727,756

See accompanying notes to condensed consolidated financial statements.

3

Table of Contents

Clean Energy Fuels Corp. and Subsidiaries

Condensed Consolidated Statements of Operations

(In thousands, except share and per share data; Unaudited)

Three Months Ended

March 31, 

    

2020

    

2021

Revenue:

 

  

 

  

Product revenue

$

75,702

$

67,692

Service revenue

 

10,304

 

9,451

Total revenue

 

86,006

 

77,143

Operating expenses:

 

  

 

  

Cost of sales (exclusive of depreciation and amortization shown separately below):

 

  

 

  

Product cost of sales

 

46,673

 

44,808

Service cost of sales

 

6,259

 

5,593

Change in fair value of derivative warrants

 

405

 

Selling, general and administrative

 

18,259

 

21,441

Depreciation and amortization

 

11,924

 

11,735

Total operating expenses

 

83,520

 

83,577

Operating income (loss)

 

2,486

 

(6,434)

Interest expense

 

(2,210)

 

(1,436)

Interest income

 

381

 

254

Other income, net

 

175

 

678

Income (loss) from equity method investments

 

145

 

(426)

Income (loss) before income taxes

 

977

 

(7,364)

Income tax expense

 

(78)

 

(83)

Net income (loss)

 

899

 

(7,447)

Loss attributable to noncontrolling interest

 

805

 

278

Net income (loss) attributable to Clean Energy Fuels Corp. 

$

1,704

$

(7,169)

Net income (loss) attributable to Clean Energy Fuels Corp. per share:

 

  

 

  

Basic

$

0.01

$

(0.04)

Diluted

$

0.01

$

(0.04)

Weighted-average common shares outstanding:

 

  

 

  

Basic

 

204,992,555

 

198,995,453

Diluted

 

206,040,099

 

198,995,453

See accompanying notes to condensed consolidated financial statements.

4

Table of Contents

Clean Energy Fuels Corp. and Subsidiaries

Condensed Consolidated Statements of Comprehensive Loss

(In thousands; Unaudited)

Clean Energy Fuels Corp.

Noncontrolling Interest

Total

Three Months Ended

Three Months Ended

Three Months Ended

March 31, 

March 31, 

March 31, 

    

2020

    

2021

    

2020

    

2021

    

2020

    

2021

Net income (loss)

$

1,704

$

(7,169)

$

(805)

$

(278)

$

899

$

(7,447)

Other comprehensive income (loss), net of tax:

 

  

 

 

  

 

 

  

 

Foreign currency translation adjustments, net of $0 tax in 2020 and 2021

 

(1,921)

 

(880)

 

 

 

(1,921)

 

(880)

Unrealized gains on available-for-sale securities, net of $0 tax in 2020 and 2021

 

6

 

 

 

 

6

 

Total other comprehensive loss

 

(1,915)

 

(880)

 

 

 

(1,915)

 

(880)

Comprehensive loss

$

(211)

$

(8,049)

$

(805)

$

(278)

$

(1,016)

$

(8,327)

See accompanying notes to condensed consolidated financial statements.

5

Table of Contents

Clean Energy Fuels Corp. and Subsidiaries

Condensed Consolidated Statements of Stockholders’ Equity

(In thousands; except share data)

Accumulated

Additional

Other

Noncontrolling

Total

Common Stock

Paid-In

Accumulated

Comprehensive

Interest in

Stockholders

    

Shares

    

Amount

    

Capital

    

Deficit

    

Loss

    

Subsidiary

    

Equity

Balance, December 31, 2019

 

204,723,055

$

20

$

1,203,186

$

(668,232)

$

(1,566)

$

9,621

$

543,029

Issuance of common stock

 

871,010

 

 

194

 

 

 

 

194

Repurchase of common stock

(2,810,449)

(4,244)

 

(4,244)

Stock-based compensation

 

 

 

1,054

 

 

 

 

1,054

Net income (loss)

 

 

 

 

1,704

 

 

(805)

 

899

Other comprehensive loss

 

 

 

 

 

(1,915)

 

(1,915)

Increase in ownership in subsidiary

 

 

 

(1,388)

 

 

 

1,388

Balance, March 31, 2020

 

202,783,616

$

20

$

1,198,802

$

(666,528)

$

(3,481)

$

10,204

$

539,017

Accumulated

Additional

Other

Noncontrolling

Total

Common Stock

Paid-In

Accumulated

Comprehensive

Interest in

Stockholders

    

Shares

    

Amount

    

Capital

    

Deficit

    

Loss

    

Subsidiary

    

Equity

Balance, December 31, 2020

 

198,491,204

$

20

$

1,191,791

$

(678,096)

$

(209)

$

9,344

$

522,850

Issuance of common stock

 

1,323,814

 

 

3,216

 

 

 

 

3,216

Stock-based compensation

 

 

 

3,367

 

 

 

 

3,367

Net loss

 

 

 

 

(7,169)

 

 

(278)

 

(7,447)

Other comprehensive loss

 

 

 

 

 

(880)

 

 

(880)

Balance, March 31, 2021

 

199,815,018

$

20

$

1,198,374

$

(685,265)

$

(1,089)

$

9,066

$

521,106

See accompanying notes to condensed consolidated financial statements.

6

Table of Contents

Clean Energy Fuels Corp. and Subsidiaries

Condensed Consolidated Statements of Cash Flows

(In thousands; Unaudited)

Three Months Ended

March 31, 

    

2020

    

2021

Cash flows from operating activities:

Net income (loss)

$

899

$

(7,447)

Adjustments to reconcile net income (loss) to net cash (used in) provided by operating activities:

 

 

Depreciation and amortization

 

11,924

 

11,735

Provision for credit losses and inventory

 

166

 

380

Stock-based compensation expense

 

1,054

 

3,367

Change in fair value of derivative instruments

 

(5,227)

 

2,045

Amortization of discount and debt issuance cost

 

(85)

 

13

Loss (gain) on disposal of property and equipment

 

(14)

 

46

Gain from sale of certain assets of subsidiary

 

(176)

 

Loss (income) from equity method investments

 

(145)

 

426

Non-cash lease expense

676

740

Deferred income taxes

30

33

Changes in operating assets and liabilities:

 

 

Accounts and other receivables

 

(180)

 

(1,786)

Inventory

 

51

 

(176)

Prepaid expenses and other assets

 

(2,682)

 

(7,666)

Operating lease liabilities

(851)

(1,048)

Accounts payable

 

(5,594)

 

446

Deferred revenue

 

(2,437)

 

1,857

Accrued liabilities and other

 

(1,667)

 

292

Net cash (used in) provided by operating activities

 

(4,258)

 

3,257

Cash flows from investing activities:

 

  

 

  

Purchases of short-term investments

 

(29,284)

 

(58,299)

Maturities and sales of short-term investments

 

56,500

 

58,301

Purchases of and deposits on property and equipment

 

(3,658)

 

(3,328)

Disbursements for loans receivable

 

(40)

 

(3,828)

Payments on and proceeds from sales of loans receivable

 

609

 

128

Cash received from sale of certain assets of subsidiary, net

 

5,628

 

887

Proceeds from disposal of property and equipment

 

685

 

7

Net cash provided by (used in) investing activities

 

30,440

 

(6,132)

Cash flows from financing activities:

 

  

 

  

Issuance of common stock

 

194

 

3,216

Repurchase of common stock

(4,244)

Proceeds for Adopt-a-Port program

2,520

Proceeds from debt instruments

 

200

 

1,900

Repayments of debt instruments and finance lease obligations

 

(1,700)

 

(1,108)

Net cash (used in) provided by financing activities

 

(5,550)

 

6,528

Effect of exchange rates on cash, cash equivalents and restricted cash

 

(328)

 

69

Net increase in cash, cash equivalents and restricted cash

 

20,304

 

3,722

Cash, cash equivalents and restricted cash, beginning of period

 

53,222

 

119,977

Cash, cash equivalents and restricted cash, end of period

$

73,526

$

123,699

Supplemental disclosure of cash flow information:

 

  

 

  

Income taxes paid

$

29

$

Interest paid, net of $98 and $0 capitalized, respectively

$

2,104

$

1,052

See accompanying notes to condensed consolidated financial statements.

7

Table of Contents

Clean Energy Fuels Corp. and Subsidiaries

Notes to Condensed Consolidated Financial Statements

(Unaudited)

Note 1—General

Nature of Business

Clean Energy Fuels Corp., together with its majority and wholly owned subsidiaries (hereinafter collectively referred to as the “Company,” unless the context or the use of the term indicates or requires otherwise) is a leading renewable energy company focused on the procurement and distribution of renewable natural gas (“RNG”) and conventional natural gas, in the form of compressed natural gas (“CNG”) and liquefied natural gas (“LNG”), for the United States and Canadian transportation markets. The Company is also focused on developing, owning, and operating dairy and other livestock waste RNG projects and supplying RNG (procured from our own projects or from third parties) to its customers in the heavy and medium -duty commercial transportation sector.

As a comprehensive clean energy solution provider, the Company also designs and builds, as well as operates and maintains (“O&M”), public and private vehicle fueling stations in the United States and Canada; sells and services compressors and other equipment used in RNG production and at fueling stations; transports and sells its fuels via “virtual” natural gas pipelines and interconnects; sells U.S. federal, state and local government credits (collectively, “Environmental Credits”) it generates by selling RNG as a vehicle fuel, including Renewable Identification Numbers (“RIN Credits” or “RINs”) under the federal Renewable Fuel Standard Phase 2 and credits under the California and the Oregon Low Carbon Fuel Standards (collectively, “LCFS Credits”); and obtains federal, state and local tax credits, grants and incentives.

Basis of Presentation

The accompanying interim unaudited condensed consolidated financial statements include the accounts of the Company and its subsidiaries, and, in the opinion of management, reflect all adjustments, which include only normal recurring adjustments, necessary to state fairly the Company’s consolidated financial position as of March 31, 2021, results of operations, comprehensive loss, and stockholders’ equity, and cash flows for the three months ended March 31, 2020 and 2021. All intercompany accounts and transactions have been eliminated in consolidation. The results of operations for the three month periods ended March 31, 2020 and 2021 are not necessarily indicative of the results to be expected for the year ending December 31, 2021 or for any other interim period or any future year.

Certain information and disclosures normally included in the notes to consolidated financial statements have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”), but the resultant disclosures contained herein are in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) as they apply to interim reporting. The accompanying condensed consolidated financial statements should be read in conjunction with the consolidated financial statements as of and for the year ended December 31, 2020 that are included in the Company’s Annual Report on Form 10-K filed with the SEC on March 9, 2021.

Use of Estimates

The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the accompanying condensed consolidated financial statements and these notes. Actual results could differ from those estimates and may result in material effects on the Company’s operating results and financial position. Significant estimates made in preparing the accompanying condensed consolidated financial statements include (but are not limited to) those related to revenue recognition, fair value measurements, goodwill and long-lived asset valuations and impairment assessments, income tax valuations and stock-based compensation expense.

Recently Adopted Accounting Pronouncements

8

Table of Contents

In December 2019, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update ("ASU") No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. The new standard clarifies and simplifies the accounting for income taxes, including guidance related to intraperiod tax allocation, the recognition of deferred tax liabilities for outside basis differences, the methodology for calculating income taxes in an interim period, and the application of income tax guidance to franchise taxes that are partially based on income. The Company adopted this standard in the first quarter of 2021. Adoption of this ASU did not have a material impact on the Company’s condensed consolidated financial statements.

Note 2—Revenue from Contracts with Customers

Revenue Recognition Overview

The Company recognizes revenue when control of the promised goods or services is transferred to its customers, in an amount that reflects the consideration to which it expects to be entitled in exchange for the goods or services. To achieve that core principle, a five-step approach is applied: (1) identify the contract with a customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract, and (5) recognize revenue allocated to each performance obligation when the Company satisfies the performance obligation. A performance obligation is a promise in a contract to transfer a distinct good or service to the customer, and is the unit of account for revenue recognition.

The Company is generally the principal in its customer contracts because it has control over the goods and services prior to their transfer to the customer, and as such, revenue is recognized on a gross basis. Sales and usage-based taxes are excluded from revenue. Revenue is recognized net of allowances for returns and any taxes collected from customers, which are subsequently remitted to governmental authorities. The table below presents the Company’s revenue disaggregated by revenue source (in thousands):

Three Months Ended

March 31, 

    

2020

    

2021

Volume-related (1)

$

75,060

$

68,126

Station construction sales

 

5,522

 

4,535

AFTC (2)

 

5,424

 

4,482

Total revenue

$

86,006

$

77,143

(1)Includes changes in fair value of derivative instruments related to the Company’s commodity swap and customer fueling contracts associated with the Company’s Zero Now truck financing program. The amounts are classified as revenue because the Company’s commodity swap contracts are used to economically offset the risk associated with the diesel-to-natural gas price spread resulting from customer fueling contracts under the Company’s Zero Now truck financing program. See Note 6 for more information about these derivative instruments. For the three months ended March 31, 2020 and 2021, aggregate changes in the fair value of commodity swaps and customer fueling contracts amounted to a gain of $5.6 million and a loss of $2.0 million, respectively.
(2)Represents the federal alternative fuel excise tax credit that we refer to as “AFTC,” which was extended for vehicle fuel sales made beginning January 1, 2021 through December 31, 2021.  See Note 19 for more information.

Remaining Performance Obligations

Remaining performance obligations represent the transaction price of customer orders for which the work has not been performed. As of March 31, 2021, the aggregate amount of the transaction price allocated to remaining performance obligations was $9.6 million, which related to the Company’s station construction sale contracts. The Company expects to recognize revenue on the remaining performance obligations under these contracts over the next 12 to 24 months.

For volume-related revenue, the Company has elected to apply an optional exemption, which waives the requirement to disclose the remaining performance obligation for revenue recognized through the right to invoice’ practical expedient.

9

Table of Contents

Contract Balances

The timing of revenue recognition, billings and cash collections results in billed accounts receivable, unbilled receivables (contract assets), and customer advances and deposits (contract liabilities) in the accompanying condensed consolidated balance sheets.

As of December 31, 2020 and March 31, 2021, the Company’s contract balances were as follows (in thousands):

    

December 31, 

    

March 31, 

2020

2021

Accounts receivable, net

$

61,784

$

64,175

  

  

Contract assets - current

$

729

$

812

Contract assets - non-current

 

3,998

 

3,951

Contract assets - total

$

4,727

$

4,763

  

  

Contract liabilities - current

$

1,638

$

2,561

Contract liabilities - non-current

 

59

 

59

Contract liabilities - total

$

1,697

$

2,620

Accounts Receivable, Net

"Accounts receivable, net" in the accompanying condensed consolidated balance sheets includes amounts billed and currently due from customers. The amounts due are stated at their net estimated realizable value. The Company maintains an allowance to provide for the estimated amount of receivables that will not be collected. The allowance is based upon an assessment of customer creditworthiness, historical payment experience, the age of outstanding receivables, and economic conditions that may affect a customer’s ability to pay.

Contract Assets

Contract assets include unbilled amounts typically resulting from the Company’s station construction sale contracts, when the cost-to-cost method of revenue recognition is utilized and revenue recognized exceeds the amount billed to the customer, and right to payment is not just subject to the passage of time. Amounts may not exceed their net realizable value. Contract assets are classified as current or noncurrent based on the timing of billings. The current portion is included in “Prepaid expenses and other current assets” and the noncurrent portion is included in “Notes receivable and other long-term assets, net” in the accompanying condensed consolidated balance sheets.

Contract Liabilities

Contract liabilities consist of billings in excess of revenue recognized from the Company’s station construction sale contracts and payments received primarily from customers of NG Advantage, LLC (“NG Advantage”) in advance of the performance obligations and are classified as current or noncurrent based on when the related revenue is expected to be recognized. The current portion and noncurrent portion of contract liabilities are included in “Deferred revenue” and “Other long-term liabilities,” respectively, in the accompanying condensed consolidated balance sheets.

Revenue recognized during the three months ended March 31, 2020 related to the Company’s contract liability balances as of December 31, 2019 was $3.9 million. The increase in the contract liability balances for the three months ended March 31, 2021 is primarily driven by billings in excess of revenue recognized, offset by $1.5 million of revenue recognized related to the Company’s contract liability balances as of December 31, 2020.

10

Table of Contents

Note 3— Investments in Other Entities and Noncontrolling Interest in a Subsidiary

Total Joint Venture

On March 3, 2021, the Company entered an agreement (“Total JV Agreement”) with Total S.E. (“Total”) that created a 50/50 joint venture (“Total JV”) to develop anaerobic digester gas (“ADG”) RNG production facilities in the United States. The Total JV Agreement contemplates that the Total JV will invest up to $400.0 million of equity in production projects, and Total and the Company each committed to initially provide $50.0 million for the Total JV (the “Total JV Equity Obligations”). To fund the Company’s Total JV Equity Obligations, the Company has the option to borrow $20.0 million from Société Générale pursuant to the term credit agreement described in Note 12.

bp Joint Venture

On April 13, 2021, the Company entered an agreement (“bp JV Agreement”) with BP Products North America Inc. (“bp”) that created a 50/50 joint venture (“bpJV”) to develop, own and operate new ADG RNG production facilities in the United States. Pursuant to the bp JV Agreement, bp and the Company have committed to provide $50.0 million and $30.0 million, respectively, with bp and the Company each receiving 30.0 million of Class A Units and bp also receiving 20.0 million of Class B Units. bp’s initial $50.0 million contribution consisted of all unpaid principal outstanding under the loan agreement dated December 18, 2020 (see Note 12), pursuant to which bp advanced $50.0 million to the Company to fund capital costs and expenses incurred prior to formation of the bpJV, including capital costs and expenses for permitting, engineering, equipment, leases and feed stock rights. The Company has the option, exercisable prior to August 31, 2021, to commit an additional $20.0 million to the bpJV and force conversion of bp’s Class B Units into Class A Units.   100% of the RNG produced from the projects developed and owned by the bpJV will be provided to the vehicle fuels market pursuant to the Company’s existing marketing agreement with bp.

SAFE&CEC S.r.l.

On November 26, 2017, the Company, through its former subsidiary IMW Industries Ltd. (formerly known as Clean Energy Compression Corp.) (“CEC”), entered into an investment agreement with Landi Renzo S.p.A. (“LR”), an alternative fuels company based in Italy. Pursuant to the investment agreement, the Company and LR agreed to combine their respective natural gas compressor fueling systems manufacturing subsidiaries, CEC and SAFE S.p.A, in a new company, SAFE&CEC S.r.l. (such combination transaction is referred to as the “CEC Combination”). SAFE&CEC S.r.l. is focused on manufacturing, selling and servicing natural gas fueling compressors and related equipment for the global natural gas fueling market. As of the closing of the CEC Combination on December 29, 2017, the Company owns 49% of SAFE&CEC S.r.l., and LR owns 51% of SAFE&CEC S.r.l.

The Company accounts for its interest in SAFE&CEC S.r.l. using the equity method of accounting because the Company does not control but has the ability to exercise significant influence over SAFE&CEC S.r.l.’s operations. For the three months ended March 31, 2020 and 2021, the Company recorded income of $0.0 million and a loss of $0.4 million from this investment, respectively. As of December 31, 2020 and March 31, 2021, the Company had an investment balance in SAFE&CEC S.r.l. of $24.7 million and $23.3 million, respectively.

NG Advantage

On October 14, 2014, the Company entered into a Common Unit Purchase Agreement (“UPA”) with NG Advantage for a 53.3% controlling interest in NG Advantage. NG Advantage is engaged in the business of transporting CNG in high-capacity trailers to industrial and institutional energy users, such as hospitals, food processors, manufacturers and paper mills that do not have direct access to natural gas pipelines. As of March 31, 2021, the Company’s controlling interest in NG Advantage was 93.3%.

The Company recorded a loss attributable to the noncontrolling interest in NG Advantage of $0.8 million and $0.3 million for the three months ended March 31, 2020 and 2021, respectively. The value of the noncontrolling interest was $9.3 million and $9.1 million as of December 31, 2020 and March 31, 2021, respectively.

11

Table of Contents

Note 4—Cash, Cash Equivalents and Restricted Cash

Cash, cash equivalents and restricted cash as of December 31, 2020 and March 31, 2021 consisted of the following (in thousands):

    

December 31, 

    

March 31, 

2020

2021

Current assets:

 

  

 

  

Cash and cash equivalents

$

108,977

$

116,696

Total cash and cash equivalents

$

108,977

$

116,696

Long-term assets:

 

  

 

  

Restricted cash - standby letters of credit

$

4,000

$

Restricted cash - held as collateral

7,000

7,003

Total long-term portion of restricted cash

$

11,000

$

7,003

Total cash, cash equivalents and restricted cash

$

119,977

$

123,699

The Company considers all highly liquid investments with maturities of three months or less on the date of acquisition to be cash equivalents.

The Company places its cash and cash equivalents with high credit quality financial institutions. At times, such balances may be in excess of the Federal Deposit Insurance Corporation (“FDIC”) and Canadian Deposit Insurance Corporation (“CDIC”) limits. Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash deposits. The amounts in excess of FDIC and CDIC limits were approximately $107.6 million and $115.4 million as of December 31, 2020 and March 31, 2021, respectively.

The Company classifies restricted cash as short-term and a current asset if the cash is expected to be used in operations within a year or to acquire a current asset. Otherwise, the restricted cash is classified as long-term.

Note 5—Short-Term Investments

Short-term investments include available-for-sale debt securities and certificates of deposit. Available-for-sale debt securities are carried at fair value, inclusive of unrealized gains and losses. Unrealized gains and losses on available-for-sale debt securities are recognized in other comprehensive income (loss), net of applicable income taxes. Gains or losses on sales of available-for-sale debt securities are recognized on the specific identification basis.

The Company reviews available-for-sale debt securities for declines in fair value below their cost basis each quarter and whenever events or changes in circumstances indicate that the cost basis of an asset may not be recoverable, and evaluates the current expected credit loss. This evaluation is based on a number of factors, including historical experience, market data, issuer-specific factors, economic conditions, and any changes to the credit rating of the security. As of March 31, 2021, the Company has not recorded a credit loss related to available-for-sale debt securities and believes the carrying values for its available-for-sale debt securities are properly recorded.

12

Table of Contents

Short-term investments as of December 31, 2020 consisted of the following (in thousands):

Gross

Amortized

 Unrealized

Estimated

    

 Cost

    

Gain (Loss)

    

 Fair Value

Municipal bonds and notes

$

28,998

$

$

28,998

Certificates of deposit

 

530

 

 

530

Total short-term investments

$

29,528

$

$

29,528

Short-term investments as of March 31, 2021 consisted of the following (in thousands):

Gross 

Amortized

Unrealized

Estimated

    

 Cost

    

Gain (Loss)

    

 Fair Value

Municipal bonds and notes

$

28,999

$

$

28,999

Certificates of deposit

530

530

Total short-term investments

$

29,529

$

$

29,529

Note 6 - Derivative Instruments and Hedging Activities

In October 2018, the Company executed two commodity swap contracts with Total Gas & Power North America, an affiliate of Total and THUSA (as defined in Note 12), for a total of 5.0 million diesel gallons annually from April 1, 2019 to June 30, 2024. These commodity swap contracts are used to manage diesel price fluctuation risks related to the natural gas fuel supply commitments the Company makes in its fueling agreements with fleet operators that participate in the Zero Now truck financing program. These contracts are not designated as accounting hedges and as a result, changes in the fair value of these derivative instruments are recognized in "Product revenue" in the accompanying condensed consolidated statements of operations.

The Company has entered into fueling agreements with fleet operators under the Zero Now truck financing program. The fueling agreements contain a pricing feature indexed to diesel, which the Company determined to be embedded derivatives and recorded at fair value at the time of execution, with the changes in fair value of the embedded derivatives recognized in "Product revenue" in the accompanying condensed consolidated statements of operations.

Derivatives and embedded derivatives as of December 31, 2020 consisted of the following (in thousands):

Gross Amounts

Gross Amounts

Net Amount

    

Recognized

    

Offset

    

Presented

Assets:

 

  

 

  

 

  

Commodity swaps:

Current portion of derivative assets, related party

$

1,591

$

$

1,591

Long-term portion of derivative assets, related party

4,057

4,057

Fueling agreements:

Prepaid expenses and other current assets

249

249

Notes receivable and other long-term assets, net

542

542

Total derivative assets

$

6,439

$

$

6,439

Liabilities:

 

  

 

  

 

  

Fueling agreements:

Accrued liabilities

$

283

$

$

283

Other long-term liabilities

273

273

Total derivative liabilities

$

556

$

$

556

13

Table of Contents

Derivatives and embedded derivatives as of March 31, 2021 consisted of the following (in thousands):

Gross Amounts

Gross Amounts

Net Amount

    

Recognized

    

Offset

    

Presented

Assets:

 

  

 

  

 

  

Commodity swaps:

Current portion of derivative assets, related party

$

385

$

$

385

Long-term portion of derivative assets, related party

962

962

Fueling agreements:

Prepaid expenses and other current assets

658

658

Notes receivable and other long-term assets, net

1,863

1,863

Total derivative assets

$

3,868

$

$

3,868

Liabilities:

 

  

 

  

 

  

Fueling agreements:

Accrued liabilities

$

11

$

$

11

Other long-term liabilities

19

19

Total derivative liabilities

$

30

$

$

30

As of December 31, 2020 and March 31, 2021, the Company had a total volume on open commodity swap contracts of 16.9 million and 15.6 million diesel gallons, respectively, at a weighted-average price of approximately $3.18 per gallon.

The following table reflects the weighted-average price of open commodity swap contracts as of December 31, 2020 and March 31, 2021, by year with associated volumes:

December 31, 2020

March 31, 2021

Volumes

  Weighted-Average Price per

Volumes

  Weighted-Average Price per

Year

    

(Diesel Gallons)

    

Diesel Gallon

    

(Diesel Gallons)

    

Diesel Gallon

2021

 

5,000,000

$

3.18

 

3,750,000

$

3.18

2022

 

5,000,000

$

3.18

 

5,000,000

$

3.18

2023

 

5,000,000

$

3.18

 

5,000,000

$

3.18

2024

 

1,875,000

$

3.18

 

1,875,000

$

3.18

Note 7—Fair Value Measurements

The Company follows the authoritative guidance for fair value measurements with respect to assets and liabilities that are measured at fair value on a recurring basis and non-recurring basis. Under the standard, fair value is defined as the exit price, or the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants, as of the measurement date. The standard also establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs market participants would use in valuing the asset or liability developed based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company’s assumptions about the factors market participants would use in valuing the asset or liability developed based upon the best information available in the circumstances. The hierarchy consists of the following three levels: Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities; Level 2 inputs include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, and inputs (other than quoted prices) that are observable for the asset or liability, either directly or indirectly; Level 3 inputs are unobservable inputs for the asset or liability. Categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement.

14

Table of Contents

Assets and Liabilities Measured at Fair Value on a Recurring Basis

The Company’s available-for-sale debt securities and certificates of deposit are classified within Level 2 because they are valued using the most recent quoted prices for identical assets in markets that are not active and quoted prices for similar assets in active markets.

The Company used the income approach to value its outstanding commodity swap contracts and embedded derivatives in its fueling agreements under the Zero Now truck financing program (see Note 6). Under the income approach, the Company used a discounted cash flow (“DCF”) model in which cash flows anticipated over the term of the contracts are discounted to their present value using an expected discount rate. The discount rate used for cash flows reflects the specific risks in spot and forward rates and credit valuation adjustments. This valuation approach is considered a Level 3 fair value measurement. The significant unobservable inputs used in the fair value measurement of the Company’s derivative instruments are Ultra-Low Sulfur Diesel (“ULSD”) forward prices and differentials from ULSD to Petroleum Administration for Defense District (“PADD”) regions. Significant increases (decreases) in any of those inputs in isolation would result in a significantly lower (higher) fair value measurement. Generally, a change in the ULSD forward prices is accompanied by a directionally opposite but less extreme change in the ULSD-PADD differential.

The Company estimated the fair value of its outstanding commodity swap contracts based on the following inputs as of December 31, 2020 and March 31, 2021:

</