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spk01: $7.5 million for the third quarter of 2022. General and administrative expense for the third quarter of 2022 increased approximately $1.1 million compared to the third quarter of 2021 associated with our Montauk Ag renewables acquisition. Turning to our segment operating metrics, I'll begin by reviewing our renewable natural gas segment. We produced 1.4 million MMBTU of RNG during the third quarter of 2022. a decrease of approximately 0.1 million MMBTU of RNG over the third quarter of 2021. Our APEX facility produced 26,000 fewer MMBTU in the third quarter of 2022 compared to the third quarter of 2021 as a result of landfill filling patterns resulting in lower production. Also contributing to the decrease is our Atascocita facility producing 53,000 fewer MMBTU in the third quarter of 2022 compared to the third quarter of 2021 as a result of increased contaminants in the feedstock, which lowered processing efficiency. Revenues from the renewable natural gas segment in the third quarter of 2022 were 54.3 million, an increase of approximately 19.3 million, or 55.3%, compared to 35 million in the third quarter of 2021. Average commodity pricing for natural gas for the third quarter of 2022 was 104.5% higher than the third quarter of 2021. During the third quarter of 2022, we self-marketed 10.9 million RINs representing an approximately 2.4 million or 18.1% decrease compared to the 13.3 million self-marketed in the third quarter of 2021. The decrease was primarily related to a prior period decision to forward commit a larger portion of expected RINs. We also sold market purchase RINs during the third quarter of 2021. Average pricing realized on RIN sales during the third quarter of 2022 was $3.49 as compared to $1.65 in the third quarter of 2021, an increase of 111.5%. This compares to the average D3 RIN index price for the third quarter of 2022 of $2.83 being approximately 8.8% lower than the average D3 RIN index price in the third quarter of 2021. Operating and maintenance expenses for our RNG facilities in the third quarter of 2022 were $12.1 million, an increase of approximately $3.3 million or 38.4% as compared to $8.7 million in the third quarter of 2021. Our McCarty facility incurred increased preventative maintenance expenses of approximately $0.3 million. Our Apex facility operating and maintenance expenses increased approximately $1 million as a result of timing of preventative maintenance and increased waste disposal costs in the third quarter of 2022 as compared to the third quarter of 2021. Utility expense for all of our RNG facilities in the third quarter of 2022 increased approximately 2.2 million, or 68.4%, compared to the utility expense for all of our RNG facilities in the third quarter of 2021. We produced approximately 49,000 megawatt hours in renewable electricity during the third quarter of 2022, an increase of 6 megawatt hours, or 14%, from 43,000 megawatt hours in the third quarter of 2021. Our security facility produced approximately three megawatt hours in the third quarter of 2022 compared to no production in the third quarter of 2021 as a result of the prior period engine restoration project. Our Bowerman facility produced 4,000 megawatt hours more in the third quarter of 2022 compared to the third quarter of 2021 as a result of preventative engine maintenance performed during the third quarter of 2021. Our Tulsa facility produced approximately 1,000 megawatt hours less in the third quarter of 2022 compared to the third quarter of 2021 due to reduced feedstock availability at the landfill. Revenues from our renewable electricity facilities in the third quarter of 2022 were 4.4 million, an increase of approximately 0.5 million or 12.4% compared to 3.9 million in the third quarter of 2021. The increase is primarily driven by the increase in our Bowerman production volumes. Operating and maintenance expenses for our renewable electricity facilities in the third quarter of 2022 were $2.1 million, a decrease of approximately $1.5 million, or 41.4% compared to $3.5 million in the third quarter of 2021. The decrease is primarily related to scheduled preventative maintenance at our environment facility, which was approximately $1.6 million higher in the third quarter of 2021 compared to the third quarter of 2022. During the third quarter of 2022, we performed interim recoverability tests for our Tulsa facility when it was determined that it was more likely than not that the carrying value of the long-lived asset group would not be recoverable. The results of our testing indicated that the long-lived assets related to the Tulsa facility within our REG segment had carrying values in excess of the asset group's fair value. Our cash flow analysis was based on estimates of future revenue growth, gross margin, EBITDA, and cash flow generation. As a result of the analysis, we recorded an approximate 2.1 million property, plant, and equipment impairment related to the Tulsa site in the third quarter of 2022. As to the remaining reporting units, we further concluded, based on our interim cash flow assessment conducted for monitoring of potential indicators of impairment, that the cash flows to be generated are significantly in excess of their carrying values of our operating sites, primarily due to the length of the underlying gas rights agreement. And we did not record any other impairments in the third quarter of 2022 related to our cash flows assessments. Operating profit in the third quarter of 2022 was $13.6 million, an increase of approximately $6.9 million, or 102.6% compared to an operating profit of $6.7 million in the third quarter of 2021. RNG operating profit for the third quarter of 2022 was 26.8 million, an increase of approximately 10.9 million, or 68.1%, compared to 16 million in the third quarter of 2021. Renewable electricity generation operating loss for the third quarter of 2022 was 1.7 million, a decrease of approximately 0.2 million, or 17.3%, compared to an operating loss of 1.4 million for the third quarter of 2021. Turning to the balance sheet, as of September 30, 2022, $74 million was outstanding under our term loan, and we had no borrowings under our revolving credit facility. The company's capacity available for borrowing under the revolving credit facility was $116.1 million. During the nine months ended September 30, 2022, we generated $59.8 million of cash from operating activities, a 180.8% increase from the first nine months of 2021 of $21.3 million. For the nine months ended September 30, 2022, our capital expenditures were $12.8 million, of which approximately $5.4 million and $1.6 million, respectively, of the expenditures were related to the ongoing development of the PECO Facility Digestion Capacity Increase and the Montauk Ag Renewables Project in North Carolina. During the nine-month end of September 30, 2022, we received proceeds from the sale of NOx emission allowance credits, resulting in a gain of approximately $0.3 million. We present EBITDA and adjusted EBITDA metrics because we believe the measures assist investors in analyzing our performance across reporting periods on a consistent basis by excluding items that we do not believe are indicative of our core operating performance. Adjusted EBITDA for the third quarter of 2022 was $20.9 million. an increase of approximately $8 million or 62.7% over adjusted EBITDA of $12.8 million for the third quarter of 2021. EBITDA for the third quarter of 2022 was $18.9 million, an increase of approximately $7.2 million for 60.7% over EBITDA of $11.8 million for the third quarter of 2021. Net income of $11.2 million for the third quarter of 2022 increased approximately $2.3 million, or 25.8%, from net income of $8.9 million for the third quarter of 2021. The increase was primarily related to increased R&G operating profit for the third quarter of 2022 of approximately $10.8 million. Partially offsetting this increase was an increase in our income tax expense of approximately $6 million. The third quarter of 2021 was impacted by a permanent disallowance of officers' compensation, and when compared to the pre-tax book loss, resulted in a tax benefit being recorded during the third quarter of 2021. I'll now turn the call back over to Sean.
spk00: Thank you, Kevin. In closing, we want to provide our updated full-year 2022 outlook. While we don't provide guidance on our expectations of future environmental attribute prices, Volatility in index prices does impact our revenue expectations. Our production volumes are also subject to landfill host waste intake, filling patterns, and other landfill matters out of our direct control. We expect RNG production volumes to range between 5.6 and 5.9 million MMBTUs, with corresponding RNG revenues between 196 and 216 million. We expect renewable electricity production volumes to range between 188 and 198,000 megawatt hours, with corresponding renewable electricity revenues between 17 and 18 million. And with that, we will pause for any questions.
spk03: Thank you. To ask a question, you'll need to press star 11 on your phone. Please stand by as we compile the Q&A roster.
spk02: Again, please stand by as we compile the Q&A roster.
spk03: I will close the Q&A session. And now I would like to turn the call back over to Shawn McLean for closing remarks.
spk00: Thank you for taking the time to join us on the conference call today, and we look forward to speaking with you in 2023.
spk03: This concludes today's conference call. Thank you all for participating. You may now disconnect and have a pleasant day.
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