Evergen Infrastructure Corp.

only mode. Participants can submit questions via the Q&A box at the bottom of the screen, which will be answered following the presentation. As a reminder, this call is being recorded. Before we begin, I'd like to direct all participants to our website at www.evergeninfo.com, where you will find a copy of the third quarter 2024 earnings presentation. Please allow me to remind you that our discussion today contains forward-looking statements. Actual results may differ materially from results projected by those forward-looking statements. Additional information concerning factors that could cause actual results to materially differ from those in the forward-looking statements is contained in the third quarter 2024 management discussion analysis. I will now turn the call over to Sean Hennessy, Everton Infrastructure's Chief Financial Officer, to begin.

Thanks, Jeremy, and welcome everyone to the Q3 2024 earnings call. So during Q3 2024, Fraser Valley Biogas continued increasing RNG production towards its design capacity and has now seen 15% quarterly increases in production since the expansion was completed in December last year. Revenues were also boosted compared to Q3 2023 as a result of increased organic waste volumes at our Regina facility and improved pricing at our Pacific Coast Renewables facility. As a result, we reported a 57% increase in revenues compared to last year. During the same period, our direct operating costs, after adjusting for depreciation, increased by only 18% and came in 10% lower than our expectations, mainly due to repair and maintenance costs incurred last quarter, and we are also seeing utility costs normalize at Fraser Valley Biogas. Furthermore, our G&A expenses decreased by 36% compared to last year and 28% compared to last quarter, mainly due to lower consulting costs as well as restructuring expenses incurred last year. Overall, as a result, our adjusted EBITDA increased to $1 million for Q3 2024, up from $382,000 last year. Our net loss for Q3 2024 was also improved by 57% compared to last year, The increased EBITDA, as mentioned, was offset by an increase in depreciation and finance costs, both related to the completion of Fraser Valley Biogas RNG expansion late last year. Summarizing the quarter, in Q3 2024, Fraser Valley Biogas continued to ramp up production and step closer towards the design capacity of the facility. We were also able to apply downward pressure on certain of our operating costs, and we expect to continue to see certain cost reductions as we finalize our 2025 insurance premiums and reduce utility costs through equipment optimizations. I'll now hand the presentation over to Misha to provide some additional updates.

Thanks a lot, Sean. It's been another solid quarter which we're looking forward to build on as we close out the year. There's definitely still a lot of work to do as we remain focused on achieving nameplate capacity at Fraser Valley Biogas and continuing to advance their three major development projects. It's going to be a catalyst-rich end to the year, and it all begins with operational success at Fraser Valley. where we've built up a world-class facility which has demonstrated the ability to exceed nameplate capacity when fully ramped. We're also consolidating the feedstock market in the region where favorable supply and demand dynamics remain in place and remain in our favor. As we close out the year, we expect to hit record levels of production as we work towards exceeding nameplate capacity in 2025. With Fraser Valley on track, we're advancing our development projects that have made significant headway at Grotech. As you can see here, we've re-scoped phase two to increase capacity from 70,000 to 100,000 gigajoules annually and achieve more favorable economics and mitigate the pipeline constraint risks on the line. With the recently announced $2 million ACT grant, we expect to achieve FID by the end of the year. We're also approaching FID at the Pacific Coast Renewables Facility as we've submitted all of our regulatory filings and anticipate a positive result given our positive relationships with all the regulatory authorities. We've completed preliminary design work and the project remains fully funded with a robust feedstock story. We'll be providing a full detailed update on the development of the project by the end of the year as we approach FID there. Our process at Project Radius continues to progress as we've now narrowed it down to two potential funding parties. There are a lot of greenfield projects that are struggling to get financed in this current environment, and the fact that we have managed to attract two active bidders at the table speaks to the quality of the project. as we've worked through the process that we've received the consistent feedback that this is the best greenfield rng project in canada and we have full confidence that our process will be successful so what so what does this mean for the broader picture at everton with fraser valley biogas continuing to perform and develop and development progressing across our projects we remain fully funded to achieve 13 million dollars of ebitda Concurrently, we're advancing our greenfield projects as well as several other pipeline projects in the works, which we hope to be able to discuss in the short term. We've really hunkered down and focused on our core operations over the last 12 months and are now emerging stronger with a view to bringing in new projects and contributing to the upside. Our goal is to bring two to three projects to FID on an annual basis and we remain on track to achieve that. There have certainly been some headwinds in the space, but the fundamentals remain strong and acquisition opportunities will emerge. With our track record of delivering brownfield and greenfield projects in Canada, we will be in a strong position to continue to grow and emerge as Canada's dominant RNG platform. Thanks, everyone, for your support. We'll now open it up to any questions.