Shares of Clean Energy Fuels (CLNE) - Get Report climbed on Wednesday after it unveiled a $50 million deal under which it'll develop, own and operate renewable natural gas facilities for BP (BP) - Get Report.
The Newport Beach, Calif., specialist in various forms of natural gas -- including compressed and liquefied -- also reported stronger-than-expected revenue for the fourth quarter.
It recently traded at $13.41, up 14%. The shares have more than quintupled (up 420%) over the past six months, benefiting from investors' enthusiasm for clean-energy stocks.
The plants under the BP deal will be at dairies and other agriculture facilities, Clean Energy said.
“Carbon emissions captured from dairies and turned into a transportation fuel reduce the harmful effects on long-term climate change,” it said.
“The demand for this carbon-negative fuel has significantly accelerated over the last few years.
"Some of the largest heavy-duty fleets in the world, such as UPS (UPS) - Get Report, Republic Services (RSG) - Get Report, [the] New York Metropolitan Transportation Authority and LA Metro are currently and successfully operating tens of thousands of vehicles on RNG.”
Clean Energy said it’s the largest provider of RNG as a transportation fuel in the U.S. and Canada.
On the earnings front, Clean Energy Fuels reported that it broke even on an adjusted basis in the fourth quarter, matching the Capital IQ analyst consensus and compared with net income of 21 cents in the year-earlier period.
Revenue slumped 37% to $75 million from $119.6 million a year earlier. The latest figure beat analysts’ forecast of $70.7 million.
Last month Credit Suisse started coverage of Clean Energy Fuels with an outperform rating and a $17 price target, then the highest on Wall Street, Bloomberg reported.