Montauk Renewables, Inc.

Good afternoon, everyone, and thank you for participating in today's conference call. I would like to turn the call over to Mr. John Cirolli as he provides some important cautions regarding forward-looking statements contained in the earnings materials or made on this call. John, please go ahead.

Thank you, and good afternoon, everyone. Welcome to Montauk Renewables' third quarter 2021 earnings conference call. I'm John Cerulli, Vice President, General Counsel, and Secretary at Montauk. Joining me today are Sean McClain, Montauk's Chief Executive Officer and President, and he will discuss business developments, and Kevin Van Asselen, Chief Financial Officer, to discuss our third quarter of 2021 results. During this call, certain statements we make will be forward-looking and based on management's beliefs and assumptions and information currently available to management at this time, including, without limitation, statements relating to the company's future results of operations and financial conditions, as well as our expectations and plans for the company, such as with our Montauk Ag Renewables asset acquisition, the PICO improvement project, and PICO CI score. These statements are subject to known and unknown risks and uncertainties, many of which may be beyond our control, including those set forth in our safe harbor provision for forward-looking statements that can be found in our third quarter 2021 earnings press release. In our Form 10Q for the third quarter of 2021, and our most recent annual report on Form 10K, and in our other reports on file with the SEC, and that provide further detail about the risks related to our business. Additionally, please note that the company's actual results may differ materially from those anticipated, and except as required by law, we undertake no obligation to update any forward-looking statement. Our remarks today may also include non-GAAP financial measures, These non-GAAP financial measures are not prepared in accordance with generally accepted accounting principles. Additional details regarding these non-GAAP financial measures, including reconciliations to the most directly comparable GAAP financial measures, can be found in our slide presentation and in our third quarter 2021 earnings release and form 10Q issued and filed this afternoon. These are available on our website at ir.montaukrenobles.com. After our prepared remarks, we will open the call to questions. We ask that you please keep to one question to accommodate as many questions as possible. With that, I will turn the call over to Sean.

Thank you, John. Good day, everyone, and thanks for joining our call. I would like to start this call with an update on two important developments we are focused on as we continue to grow. In May 2021, we completed the Montauk Ag Renewables Asset Acquisition in North Carolina to purchase developing technology to recover residual natural resources from waste streams of modern agriculture and to refine and recycle such waste products through proprietary and other processes in order to produce high quality, renewable natural gas, bio-oil, and biochar. During the third quarter of 2021, we continued to execute on our plans for Montauk Ag Renewables. In August 2021, we were granted a patent over 24 specific aspects of continuous feed closed-loop reactor technology acquired in the acquisition. We believe that the reactor enables near-zero emissions conversion of agriculture waste into multiple non-fossil renewable fuel alternatives, is capable of producing multiple units of renewable energy for each unit of conventional energy consumed, and is capable of sequestering multiple tons of greenhouse gas equivalent emissions for every ton emitted. We expect the reactor, with certain enhancements, to better address some of the environmental challenges of industrial agriculture, including lagoon capacity constraints, watershed contamination, odor issues, nutrient abundances, and containment and disposal of animal waste, regardless of location or size. The reactor is operational, and we continue to make improvements to the reactor to optimize its functionality and currently expect this facility to be commissioned with these improvements during 2022. In October of 2021, we also closed on a 5.4 million transaction to acquire approximately 146 acres and an existing approximately 500,000 square foot structure, which we plan to use as we expand the production processes acquired in the Montauk Ag Renewables acquisition. We have also executed master service agreements that provide access to waste feedstock for Montauk AG to process. The waste feedstock will be sourced from swine waste contained in anaerobic lagoons, and its removal will help to improve lagoon water flow and reduce capacity in the lagoons. As we commission and increase our production capabilities, we intend to add additional farms to these agreements as feedstock sources which have the potential to secure more feedstock for our facilities. I also want to provide an update on our PICO facility in Jerome, Idaho. During the third quarter of 2021, and as part of our overall previously announced capacity expansion at the PICO facility, we undertook significant efforts to improve the performance of the existing digestion process at our PICO facility. We have temporarily idled RNG production at this facility in order to clean out settled solids in the digester. replace the cover of the digester, and make various other efficiency improvements. After the improvements are completed, we expect production to measurably increase from the current production levels of approximately 150 MMBTUs per day once we resume full operations at the PECO facility currently expected during the first quarter of 2022. The improvement project has impacted the timeline for modeling PICO's initial CI score pathway model and subsequent auditing approval by the California Air Resource Board. We currently expect to submit the CI pathway model and reapply for a temporary CI pathway in the fourth quarter of 2021. The results of this approval could have a significant impact on our ability to generate LCFS revenues in 2022 on our 2021 production. And with that, I will turn the call over to Kevin.