Enviva Inc.

Our agenda will be for John, Thomas, and Shai to discuss our financial and operating results and to provide an update on our current business outlook and operations. Then, we will open up the call for questions. During the course of our remarks and the subsequent Q&A session, we will be making forward-looking statements which are subject to a variety of risks. Information concerning the risks and uncertainties that could cause our actual results to differ materially from those in our forward-looking statements can be found in our earnings release as well as in our other SEC filings. We assume no obligation to update any forward-looking statement to reflect new or changed events or circumstances. In addition to presenting our financial results in accordance with GAAP, we will also be discussing adjusted EBITDA and certain other non-GAAP financial measures pertaining to completed reporting periods as well as our forecasts. Information concerning the reconciliations of these non-GAAP measures to their most directly comparable GAAP measures and other relevant disclosures is included in our earnings release. Our SEC reports, earnings release, and most recent investor presentation, which contain reconciliations of non-GAAP financial measures we use, can be found on our website at invivabiomass.com. It is important to note that as a result of the simplification transaction we announced on October 15, 2021, we were required to recast our historical financial results in accordance with GAAP to reflect that transaction. Today, we will discuss 2021 historical financial results on a recast basis or a non-recast basis, depending on the reference point. Please refer to our earnings release and Form 10-Q document for more details on our recast and non-recast presentations. I would now like to turn the call over to John.

Thank you, Kate. Good morning, everyone, and thank you for joining us today. As you saw in our earnings release, We delivered financial results for the third quarter of 2022 substantially in line with the expectations we outlined in early October. In particular, adjusted EBITDA was a significant step up over last quarter, increasing by over 50% for the third quarter. We also achieved a record adjusted gross margin for metric ton, approximately $60 per metric ton, which represents roughly a 40% increase over last quarter. Based on the continued operational improvements we are seeing across our fully contracted asset base and the seasonally strong second half of the year you've heard us describe, we expect fourth quarter results to be strong, with another significant step up in adjusted EBITDA to approximately $113 million at the midpoint of our guidance range. This means that for full year 2022, we believe we're on track to deliver results in line with our adjusted EBITDA guidance of $240 million to $260 million. We declared a 90 and one half cent per share dividend for the third quarter and also reaffirmed our full year 2022 dividend guidance of $3.62 per share. There are very few companies with a fully contracted business like ours underpinned by long-term take or pay contracts with a contracted revenue backlog of over $21 billion and a contract weighted average remaining term of 14 years. And it is because of our visible, durable, long-term cash flows that we are able to be a rare combination of a high-growth company and a strong, stable dividend payer. As we look into 2023, we are really starting to take our stride as a corporation. And we're coming up on our one-year anniversary of the conversion from an MLP to a regular way C Corp. We are currently forecasting adjusted EBITDA for 2023 to be in the range of $305 million to $335 million, which would cover our stable current dividend of $3.62 per share at 1.1 times at the midpoint of this range. We will come back early in the new year with fulsome 2023 guidance as we complete our budget cycle and refine our shipping schedules with our customers. What I can tell you now, however, is that our manufacturing and terminal facilities are demonstrating asset availability and production throughput rates such that we expect to produce more than 6 million metric tons next year. This productivity and the benefit of the multi-plant expansions drives increased volume and improved fixed cost absorption. And when combined with the benefit of the constructed pricing environment and inflationary escalators within our existing and new long-term contracts, we continue to be well positioned for robust cash flow growth, even in an environment with potential recessionary pressures. And despite the broader energy market volatility, new customer demand for alternatives to fossil fuels and drop-in decarbonization solutions continues to accelerate. The magnitude of market opportunities with high-quality counterparties across a wide range of use cases, from renewable energy and heat generation to the displacement of petroleum-based hydrocarbons in hard-to-abate industries like steel, cement, and sustainable aviation fuel, continues to support a remarkable level of contracting for us. Year-to-date, we have announced close to 3.5 million metric tons per year of new agreements with both new and existing customers. And we believe we are on track to announce an additional 2 million metric tons per year of new incremental long-term contracted demand. This demonstrates how serious our counterparties are in shoring up renewable energy feedstocks from secure, sustainable, and trusted sources. We've built strong, long-standing relationships with our customers who understand our ESG-based, purpose-driven business and value the quality, dependability, and sustainability of the products we're delivering worldwide. I want to spend a few moments on sustainability now, as it is the core of our value proposition. And we've recently updated our website content with important information on harvesting and merchandising practices in the U.S. Southeast. Thomas Meth, NViva's president and a co-founder of NViva with me, has been a critical thought leader on sustainability since our founding almost 20 years ago. We have built what is now the world's largest supplier of sustainably produced wood pellets in the US Southeast because of the region's thriving, healthy, and abundant forest stocks. The forests here are large and growing, with only a small percentage harvested each year, and even more growing back every single year in areas where we have sited our plants. This healthy, circular forest economy where landowners grow trees, care for them, harvest their timber for both high-value permanent carbon storage products like saw timber, building products, and furniture, as well as for lower value, paper, pulp, and bioenergy, and then regrow their timberlands to begin the cycle again is why forest inventory and in vivo sourcing area has grown by 21% since 2011. There is such a strong sustainability story to be told here in the US Southeast and to help investors and stakeholders truly understand the important dynamics at work, we're in the process of planning a number of site tours and forest tours, along with an investor day to help unpack where and how we source our fiber supply, as well as how we execute our responsible sourcing policy. I look forward to seeing many of you at these upcoming events and continuing our discussion about Enviva's leading sustainability practices and about how we are providing industry-leading transparency about exactly how we contribute to healthy forest management, growing forest stocks, and climate change benefits. I'll come back to round out our discussion and kick off our Q&A session. But before that, I'd like to turn it over to Thomas to discuss incremental details on our sustainability priorities, as well as to get some import color on our market and contractual developments, and then have Shai to discuss our financial highlights and priorities.

Thank you, John. And good morning, everyone. I'd like to start by picking up where John left off on sustainability. Forests are critical to mitigating climate change, and how we use forests as a critical pathway to net zero is of paramount importance. 550 scientists from around the world recently issued a public letter to the President of the European Commission, Parliament, and Council clearly stating that working forests and the products generated from them particularly in light of improved forest health and displacement of fossilized carbon, provide a much better carbon balance than untouched forests. The scientists were united in stating wood from sustainably managed forests is CO2 neutral and highlighted the critical role that woody biomass from sustainably managed forests can play in climate change mitigation. This is right in line with the leading authority on climate science, the United Nations Intergovernmental Panel on Climate Change. The IPCC notes a sustainable forest management strategy aimed at maintaining or increasing forest carbon stocks while producing an annual sustained yield of timber fiber energy from the forest will generate the largest sustained mitigation benefit for climate change. At Enviva, we go above and beyond and developed our track and trace program to provide leading transparency into the sustainability of our wood sourcing practices and to align our practices and tracking with the IPCC's objectives and the leading scientific views. For the second half of 2021, our track and trace data tells us that when we procured wood fiber from a final harvest, and Viva's merchandising percentage was on average 35% across our procurement areas, meaning that on average, we take approximately 35% of the wood procured from a harvested site. Given that we typically provide the lowest revenue per ton to the landowner, this means the majority of the harvest was sold into applications like building products, furniture, and pulp and paper. Our track and trace data will also tell you that we took 30% or less of the wood procured from 59% of the acres where we procured wood. We also described that in the case of 12.4% of harvested acres, we took more than 70% of the merchandised wood. There are good ecological and economic reasons for a higher than average percentage in those cases, such as sourcing wood from hurricane damage, multistage harvesting, or when a harvest was predominantly pulpwood because of soil and market conditions. As we've said before, markets for forest products are the best defense against conversion to non-forest land, and that is a critical reason why forest inventory continues to grow in our procurement regions. Let's turn now to a few notable updates on the market and our contracting. As many of you know, the European Union is in the process of updating their renewable energy directive legislation. Currently, bioenergy accounts for almost 60% of the renewable energy used in Europe, and we are encouraged with the direction in which the legislative process is headed. We believe that the final legislation will ultimately continue to support the essential role of sustainable bioenergy as a key climate change solution and will remain compatible with Enviva's practices. European demand remains unabated, and in addition to our continuous long-term contracting activities, the same tailwinds that drive the longer-term contracts are driving new, highly accretive near-term opportunities with existing and new customers. And although the near-term opportunities don't reflect the same tenor of our long-term contracts, They and other transactions where we are managing these locations within our customer's demand profile are a durable component of our business and will continue to drive value over the long term. We also continue to see positive momentum in Taiwan and Japan and are very encouraged with the direction and pace of our discussions there. In terms of global supply for industrial wood pellets, We're seeing the Pacific Rim continue to grow as an important supply basin, which is expected to provide profitable third-party purchase and sales opportunities for us. And Viva has a demonstrated track record of procuring volumes from different suppliers and geographies and selling them profitably into spot market opportunities and our long-term contracts. Market data suggests that volumes can be purchased on an FOB basis in the Pacific Rim for less than $200 per metric ton. Market data also points to trading prices currently north of $400 per metric ton in European markets. For companies like Enviva, with large-scale portfolios of customers and shipping partners, these types of market dislocations can provide an opportunity to drive incremental value while meeting the needs of our customers. This is a market tailwind that we may talk more frequently about in the future. And to round out our market discussions, I'll bring us back home to the U.S., where the Inflation Reduction Act is strengthening the momentum behind our conversations with sustainable aviation fuel and biofuel producers. The IRA also enhances support for bioenergy with carbon capture using storage. which is emerging as a large-scale negative emissions solution that has the power to truly move the needle in decarbonizing many sectors of our economy. And with that, I'll turn it over to Shai.