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 Cerulli as he provides some important cautions regarding forward-looking statements and non-GAAP financial measures contained in the earning materials or made on this call. John, please go ahead.

Thank you, and good afternoon, everyone. Welcome to Montauk Renewables Earnings Conference Call to review fiscal 2022 financial and operating results. and developments. I'm John Ciroli, Chief Legal Officer and Secretary at Montauk. Joining me today are Sean McClain, Montauk's President and Chief Executive Officer, to discuss business developments, and Kevin Van Aslen, Chief Financial Officer, to discuss our 2022 financial and operating results. At this time, I would like to direct your attention to our forward-looking disclosure statement. During this call, certain comments we make constitute forward-looking statements and as such involve a number of assumptions, risks, and uncertainties that could cause the company's actual results or performance to differ materially from those expressed in or implied by such forward-looking statements. These risk factors and uncertainties are detailed in Montauk Renewable's SEC filings. Our remarks today may also include non-GAAP financial measures. 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. 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 fiscal 2022 earnings press release and form 10-K issued and filed this afternoon. Both are available on our website at ir.montaukrenewables.com. After our prepared remarks, we will open the call to questions. We ask that you please keep the 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 thank you for joining our call. I wanted to start this call with a summary of the major events for Montauk during 2022. First, as to our 2021 Montauk Ag renewables acquisition, we continue to work with our engineer of record through the optimization of improvements to the patented reactor technology. During the fourth quarter of 2022, We began to process of relocating our existing reactor at the Magnolia North Carolina facility to the Turkish North Carolina facility in an effort to centralize future feedstock processing. We continue to progress on our improvements and continue to expect reaching commercial operations in 2024. In parallel, we continue to engage with regulatory agencies in North Carolina related to the resulting power generation derived from swine waste. to confirm its eligibility for the renewable energy credits under North Carolina's renewable energy portfolio standards in anticipation of commercial production. Our Turkey, North Carolina facility has been accepted into the Piedmont Renewable Natural Gas Renewable Gas Pilot Program, which is a step towards obtaining the new renewable energy facility designation under the North Carolina Utilities Commission. Due to our consolidation of operations at the Turkey facility and based on our current expectations related to commercial operations, we have paused our registration process to obtain NREF status for the Turkey, North Carolina location. Next, I would like to provide an update on our PECO dairy cluster project in Idaho. As part of our overall capacity expansion at the PECO facility, we undertook significant efforts to improve the performance of its existing digestion process. The performance we have made to date to both our existing digestion process efficiencies and to our water management improvements have enabled us to process the increased feedstock volumes we are receiving. The dairy has achieved delivery of the first two tranches of increased feedstock volumes, triggering the first two associated development payments to the dairy. We have completed the design of the digestion capacity increase in the third quarter of 2022 and began incurring capital expenditures related to the completed design of our digestion expansion construction of the project. We expect the digestion expansion project to begin to reach commercial operations during the third quarter of 2023. We expect the dairy to begin delivering the third and final tranche of increased feedstock in 2024. In the first quarter of 2023, the California Air Resource Board, CARB, finalized the engineering review of the PECO facility's provisional CI application and released it for public comment. The public comment period ended on March 24th, 2023. We do not believe we received any significant public comments and expect to receive the certified provisional CI score before the end of the first quarter of 2023. During 2022, we announced our plans to construct a second RNG processing facility at the Apex landfill. This project is being driven by projections in biogas feedstock availability from the host landfill. We anticipate an approximate 40% increase in RNG processing capacity with the addition of the second facility. This expansion is expected to increase daily production by approximately 2,100 MMBTUs per day and expand the infrastructure for the conversion of LFG to RNG. We have begun to incur capital expenditures for this project and expect the project to be complete and become commercially operational in 2024. In June 2022, we completed our analysis for process facility improvements, and our board of directors improved a capital improvement project to make upgrades to our Rager facility that will increase production. This facility is currently being impacted by requirements to meet federal pipeline tariffs, which limit the oxygen content of product gas. The pipeline tariffs have resulted in limitations in our ability to process all existing feedstock. Construction on this capital project commenced during the third quarter of 2022, and we expect it will become commercially operational during the second half of 2023. Based on the current production of the Rager facility, we anticipate an approximate increase of 50% of average daily production. And as Kevin will explain in more detail, we have decided not to commit to transfer RINs on 2023 production until the second quarter of 2023. The EPA's release of the RVO in December 2022 included RVO obligations for three years, 2023 through 2025, and included volumes of E-RINs to be generated for renewable electricity and used in transportation fuel. We believe this rulemaking has introduced volatility in the price of D3 RINs during the first quarter of 2023. We plan to transfer during the first quarter of 2023 only RINs generated from 2022 production. And with that, I will turn the call over to Kevin.