Clean Energy Fuels (CLNE) Dives On Secondary Offering, Releases Preliminary Results

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03:51:49 pm on October 29, 2008

Clean Energy Fuels (CLNE) broke through some key support today below $8/share on news the company is selling $35 million in stock to meet needs for working capital and other general purposes which may include expenses related to its Cali LNG plant and future acquisitions.

The CEO stated, “This was a planned step in providing resources to meet our capital expenditure needs and fund the growth of our business. Given the challenging and volatile capital markets, we are pleased to have new investors show their confidence in our business model and growth strategies through an investment in our common stock and warrants.”

The company has also announced preliminary results for Q3.  The company expects revenues to be in the range of 33.5 – 37 million and a net earnings loss of .23 – .26/share

As previously disclosed, the Company’s anticipated net loss for the third quarter of 2008 includes a loss of approximately $6.0 million on natural gas futures contracts, which offsets a gain of $5.7 million that was recorded in the immediately preceding quarter related to the futures contracts. In aggregate, the Company realized a net loss of $0.3 million related to the futures contracts. The Company submitted a bid and purchased the futures contracts with respect to an LNG fuels supply contract with the City of Phoenix, but the City of Phoenix awarded Clean Energy only a portion of the contract.

Looks like Nancy Pelosi’s investment in Clean Energy Fuels (CLNE) isn’t working out so well.

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