Clean Energy Fuels Corp. (CLNE) leaps on investment from Chesapeake Energy Corp

Posted on Wednesday, July 13th, 2011

Shares of Clean Energy Fuels Corp. (Nasdaq: CLNE) rose 11.9% to $16.88. The stock got a lift after Chesapeake Energy Corp. (NYSE: CHK) said Tuesday it would invest $150 million over three years to fund the development of liquefied natural-gas truck-fueling stations. Volume for Clean Energy stock was 7.7 million shares, or better than five times its daily average.

Moreover, Bank of America Merrill Lynch analysts upgraded Clean Energy to buy from underperform. A release issued Tuesday stated that the investment is dedicated to help fund the development of approximately 150 LNG truck fueling stations at strategic truck-stop locations along major trucking corridors to form the backbone of “America’s Natural Gas Highway.”

Chesapeake is the sole investor in the transaction, and will make the investment in Clean Energy through its newly formed, wholly owned subsidiary, Chesapeake NG Ventures Corporation (CNGV).

“With the advent of new natural gas truck engines well-suited for heavy-duty, over-the-road trucking, it is time to build America’s Natural Gas Highway,” said Andrew J. Littlefair, President and CEO of Clean Energy in the same release. “The investment by Chesapeake will help us accelerate the development of this important fueling network.”

Based in Seal Beach, California, Clean Energy is the largest provider of natural gas fuel for transportation in North America and a global leader in the expanding natural gas vehicle market.

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