10 Best Oil and Gas Penny Stocks To Buy

03. Clean Energy Fuels Corp. (NASDAQ:CLNE)

Number of Hedge Fund Holders: 24

Share Price: $3.10

Clean Energy Fuels Corp. (NASDAQ:CLNE) is a leading provider of natural gas as alternative fuels for vehicle fleets and offers comprehensive fueling solutions across the United States and Canada. The company supplies renewable natural gas (RNG), compressed natural gas (CNG), and liquefied natural gas (LNG) for medium and heavy-duty vehicles and provides operation and maintenance services for public and private vehicle fleet customer stations. Additionally, Clean Energy Fuels Corp. (NASDAQ:CLNE) designs and builds vehicle fueling stations, and it also sells compressors and other equipment related to RNG production. The company serves various sectors such as heavy-duty trucking, airports, public transit, and industrial energy users.

As of Q2 2024, Clean Energy Fuels Corp. (NASDAQ:CLNE) has seen a rise in hedge fund interest, with the number of hedge fund holders increasing to 24, up from 20 in the previous quarter, indicating increased institutional confidence in the company.

During the second quarter of 2024, Clean Energy reported strong financial results, with a year-over-year growth in revenue to $98 million from $90 million in Q2 2023. The company achieved an adjusted EBITDA of $18.9 million, a significant improvement from $12 million during the same period last year. Clean Energy Fuels Corp. (NASDAQ:CLNE) sales of RNG, which stood at 57 million gallons in Q2, demonstrate the company’s growing footprint in the renewable fuels sector. The firm’s cash and investments at the end of the quarter totaled nearly $250 million, highlighting its robust liquidity position.

One of the key achievements in Q2 was the expansion of the Boron facility, California’s only natural gas liquefaction plant, which boosted its capacity by 50%. This strategic move is expected to cater to the increasing LNG demand, particularly from the commercial maritime industry. Moreover, Clean Energy Fuels Corp. (NASDAQ:CLNE) partnership with Amazon to build 19 publicly accessible fueling stations has attracted other fleets, contributing to higher recurring revenue at improved margins.

The company also continues to strengthen its infrastructure across North America, with more than 600 fueling stations. A recent partnership with Tourmaline, Canada’s largest independent gas producer, aims to establish a network of RNG fueling stations in Western Canada. With the industry embracing RNG and new technologies like Cummins X15N engine, Clean Energy Fuels Corp. (NASDAQ:CLNE) is well-positioned to capitalize on the growing trend toward decarbonizing heavy-duty transportation, making it a compelling pick in the oil and gas penny stock segment.