Clean Energy Fuels Corp. (Nasdaq: CLNE) is adding more natural gas fueling stations. The Pickens-backed business is acquiring the natural gas fueling station business of Exterran Holdings, Inc. (NYSE: EXH), including natural gas station operations and maintenance contracts covering approximately 25 million gasoline gallon equivalents of natural gas fuel on an annual basis for four transit operators (eight fueling facilities).
The transit agencies served include Los Angeles County Metropolitan Transportation Authority in Los Angeles, CA. This operates the largest clean air bus fleet in the United States. It also includes the Montgomery County Transit MD, Washington Metropolitan Area Transit Authority in Washington D.C., and the Massachusetts Bay Transportation Authority in Boston MA.
The acquisition of the LACMTA and MBTA contracts closed effective upon signing of the acquisition agreement; and the sale of the contracts with Montgomery County Transit and WMATA is subject to approval of the appropriate transit authorities.
The aggregate purchase price for the acquired contracts is approximately $5.9 million, a fraction of the $437 million market cap of Clean Energy.
On the surface this sounds like a very small deal. But what is important here is the footprint. Natural gas converted to fuel is still in its infancy, and this actually helps to grow the geographic footprint of the company. Most operations are of course in California, but as you can see it lists other states as well: Arizona, Colorado, Nevada, New York, Texas, Washington (state), B.C. Canada, Ontario Canada, and Georgia.
Jon C. Ogg
May 8, 2009
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