Good morning, and welcome to the Genie Energy’s Fourth Quarter and Full Year 2012 Earnings Conference Call. All participants will be in a listen-only mode. (Operator Instructions) After today’s presentation by Genie Energy’s management, there will be an opportunity to ask questions. In this presentation, Genie Energy’s management team will discuss financial and operational results for the three months and 12 months ended December 31, 2012. Any forward-looking statements made during this conference call either in the prepared remarks or in the Q&A session, either general or specific in nature are subject to risks and uncertainties that may cause actual results to differ materially from those which the company anticipates. These risks and uncertainties include, but are not limited to specific risks and uncertainties discussed in the report that Genie Energy files periodically with the SEC. Genie Energy assumes no obligations either to update any forward-looking statements that they have made or may make or to update the factors that may cause actual results to differ materially from those that they forecast. Please note that the Genie Energy earnings release is available on the Investor Relations page of the Genie Corporation website, www.genie.com. The earnings release has also been filed on the Form 8-K with the SEC. Please note this event is being recorded. I would now like to turn the conference over to Claude Pupkin, Genie Energy’s Chief Executive Officer in the Genie management team. Please go ahead, Mr. Pupkin.

Thank you, operator. I would like to welcome investors to the Genie Energy’s fourth quarter and full year 2012 earnings conference call. I am very pleased to be able to report that Genie Energy ended its first full year as an independent public company with a strong quarter. During our call today, our team will review the quarter and full year financial and operational results, and I will be discussing some significant milestones that we have already achieved early in 2013. Because of weather-related issues, IDT Energy operated under challenging conditions for much of the year. You will recall that we lost much of the 2011-2012 heating season because of unseasonably warm weather. True to form, during the final quarter of 2012, Hurricane Sandy struck. Sandy impact was primarily felt in terms of its negative impact in customer acquisitions and to a lesser extent in terms of reduced demand from customers who lost power for extended periods. But IDT Energy’s strong execution and resilient business model more than compensated for the hurricane’s impact on our revenues, gross profit, and gross margin. Geoff and Avi will provide more details on the quarter and full year operational and financial results of IDT Energy for you. So, I will focus on several recent important developments at Genie Oil and Gas. During previous quarters, we said that Genie Oil and Gas continued to pursue additional resource-based opportunities around the globe to further leverage our technical expertise and personnel and to gain project diversification with the potential for significant upside. Well, our efforts have begun to reap rewards. On February 20, the Israeli Ministry of Energy and Water Resources awarded a new subsidiary of ours, Genie Israel Oil and Gas Limited, an exclusive petroleum exploration license covering 396 square kilometers in the southern portion of…

Thank you, Claude. As you mentioned, this has been a strong year for IDT Energy, despite some wild weather. The most significant development this year is the remarkable growth of the electricity side of our business. Over the past year, we added 77,000 net electric meters and comparing to fourth quarter of this year to the fourth quarter of 2011, we increased kilowatt hours sold by 77%, increased electric revenues by 75% and increased gross profit on our electricity sales by 65%. In light of these results no pun intended, I want to take a moment to thank the IDT Energy team and congratulate my colleagues on a job well done. Now, let’s look under the hood at the fourth quarter and the full year 2012 results, keeping in mind that the three months of the fourth quarter October through December is somewhat of a shoulder period for us beginning well after the summer cooling season and ending before the peak of the winter heating season, quite alluded to the fact that our door-to-door and other customer acquisition operations were significantly impacted by Hurricane Sandy. We suspended customer acquisition activities during the storm and ended to meeting it aftermath and fourth quarter gross meter additions fell to 79,000 compared to 118,000 in the prior quarter and 89,000 in the year ago quarter. However, for the full year, we acquired 403,000 gross meters compared to 302,000 in 2011. The majority of our newly acquired meters this quarter and for the full year were electric reflecting the fact that much of our recent geographic expansion has been in electricity only territories. Of the 7 utility territories in Pennsylvania, Maryland we entered during 2012, 6 were electric only. The seventh territory was Baltimore Gas & Electric which is the dual meter territory. Generally,…

Thank you, Geoff and thanks to everyone on the call for joining us this morning. My remarks will cover our financial results for the fourth quarter and full year of 2012 the three and 12 months respectively ended December 31st. Except or I indicate otherwise, all comparisons in my remarks are to the results for the comparable year ago period the three and 12 months ended December 31, 2011. As in prior periods, Genie Energy’s revenue direct costs and gross profit are generated entirely by IDT Energy. Geoff just provided a summary of IDT Energy’s operational results during this quarter. So, I will begin by addressing IDT Energy’s financial performance which is very strong and continued to build on the solid performances of recent quarters. Revenues for the fourth quarter increased year-over-year to $65.4 million from $43.6 million in the fourth quarter of 2011 and for the full year increased to $229.5 million from a $197.9 million in 2011. Continued growth in IDT Energy’s electric revenues was the key driver powered by the growth in our electric meters served. This more than offset the impact of lower revenues per unit for both electricity and natural gas. Electric revenues increased 74.6% to $48.2 million from $27.6 million in the year ago quarter reflecting both the continued expansion of our customer base and growth in average consumption per meter. Kilowatt hours sold increased 77.1% compared to the year ago, which more than compensated for 1.4% decline in revenue per kilowatt hour. For the full year, electric revenues were $174.3 million compared to $134.4 million in 2011. Gas revenues increased to $17.2 million in the fourth quarter of 2012 from $16 million in the year ago quarter and accounted for 26% of total revenues. The fourth quarter typically shows a significant increase in…

Thank you. We will now begin the question-and-answer session. (Operator Instructions) Okay. Our first question will come from James Hopkins, a Private Investor. Please go ahead.

Gentlemen, I have a few questions for you. First question, will Genie form a partnership with any other companies to explore the drilling opportunities in the Golan Heights area or are they expecting to do all of it themselves?

Hi, this is Claude Pupkin. We have shown a track record of bringing in strategic or financial partners to different opportunities, where it makes sense particularly if we can find partners that bring a combination of operational expertise and financial resources. So, the answer is we are very open to that although in the exploration program, we are more than comfortable that we have the right team in place to undertake it in our own (should be operating) in anyway.

Okay. Next question, regarding the Golan Heights area again does Genie have kind of any current data as to the possible oil reserves or gas reserves in the area?

We have some data. And what we have shared publicly is what we are willing to say at this point. We reviewed historical data going back to 1981 just for your information, the Golan Heights was closed to oil exploration for the last 20 years and it was just recently opened up something like six months ago. So, there isn’t a lot of data out there. The data that exists that we got a hold of goes back to some seismic lines, 2D seismic lines, hundreds of kilometers of seismic lines that were short back then, as well as we obtained well logs from a couple of different wells. And by way of background for people on the call, it’s important to note that what happened was we were actually doing work on our oil shale project for IEI down in the Shfela basin in the southern part of the country. And as a point of comparison, our team decided to obtain well logs from other wells around the country and selected a couple from the Golan Heights. And it was by selecting those well logs and finding information there and interpreting it in a different way that had historically been interpreted that we came to the conclusion that we think that there are potentially very attractive commercial quantities of oil in there, in this resource, but there is a lot of work to be done. We haven’t drilled our own wells. We are going to shoot additional seismic lines and do other geophysical testing, which is why we need three years for an exploration program. So, it’s too early to put quantities on it. Having said that, we wouldn’t be spending money and be excited about the opportunity if we didn’t think it was material to both Genie and to the country of Israel.

Next question, regarding the IEI website, there is a timeframe as far as each phase of the project for testing in demo and commercialization and all that, there is a mention of something about, but maybe by 2015 that there might be up to essentially about 2,000 barrels a day. Given the fact that there has been delays with all of the core systems and the filings and whatnot to get all the right paperwork done, the company still believe that all of the projections on the IEI website are still current?

This is Claude again. We’ll need to look at the IEI’s website. Quite frankly, I haven’t looked at it recently. I do not know what’s on there. I didn’t hear the date that it said that you just…

By 2015?

2015, no, I would say definitively no we do not think we are going to be producing 2,000 barrels a day in 2015 at this point. You are right that, that’s outdated information and we will address that. In terms of, there have obviously been delays in permitting I talked about this during my remarks. Our goal right now is to get the pilot permitted this year and then constructed and operated. So, I would say that in the best of scenarios, we would be operating the pilot in sometime in – sometime late 2014/2015 which is going to be in the order to hundreds of barrels total per day. Then we would move forward to permitting and constructing this larger scale demonstration program, which we would hope would produce in the order of 2000 barrels a day. So, that’s quite a few years out and you are correct and I thank you for pointing out that the website is out of date.

Okay. Question regarding IDT, you guys mentioned that you maybe looking to extend to DC, Illinois, and Connecticut this year, were there any plans to move off the East Coast and maybe further inland or even to the West Coast?

Hi, this is Geoff. So, the answer is we are constantly looking at the deregulated map and looking at territories and utilities that are deregulated. And it’s not only deregulated, but deregulated in a particular way that, that matches our risk averse model so that it offers a full site of what we call, the ESCO-friendly programs. So, what we have seen thus far in Illinois, which is probably certainly the farthest that thus far that we have looked at, we have commenced and are finalizing our licensing in the ComEd territory in Illinois that will be probably – that would be the first utility, and by far the most deregulated utility in Illinois, it’s quite a large area there. For now, that’s really what we see on the short-term horizon, but there are some movements in some other areas, some other states, but not anywhere near where we believe that we can comfortably acquire meters and generate the returns and the paybacks that we look for as targets.

Okay. Question regarding the Colorado side and I guess it would apply to the Israel side as well. So, basically the question is that once you guys begin the pilot testing, is there anything specific or maybe not even specific, but is there anything that would happen during testing that would lead you to say okay, instead of saying it’s the two-year test period or a one year test period, you got X amount of data that came back in a positive way or whichever. And you said okay, we believe that we can now move on to the next phase. Is there anything like that or is it essentially once you begin the tests, you know you are going to spend this amount of time on it and so you are just taking timeframe regardless?

So, a couple of things, the lengths, the planned length of the pilot test for the AMSO process is actually faster than for the shorter than for the IEI process. They are both pursuing down-hole in-situ heating technologies, but the details, the engineering of the wells under the ground are actually somewhat different and the reporting happens faster in AMSO than in AMSO’s process than in IEI’s process. So, the planned length of the AMSO pilot is in the order of six months could be a couple of months shorter, could be couple of months longer. The planned length of IEI’s pilot is probably closer to about a year. Now, I am going to talk about the AMSO pilot, because that’s the one we are actively operating at this moment. Depending on the results of the pilot, how much of the data we are looking to obtain we do obtain and how positive or not that data is we could on the best case say it’s a very successful pilot and proceed then to the next step, which is a larger scale test. While we are evaluating whether we have enough data from this first pilot to apply for convergent of our research and development lease to a commercial lease or whether we are going to need additional data from the larger scale test to apply or if the pilot test results are not so positive or certain things didn’t proceed exactly as we planned we may need to do another test, another pilot, or just really modify certain aspects of this pilot and run it again. So, it’s a little early to say what the next steps will be, but there are many different paths that we can pursue depending on how good results we obtain, how much of data we obtain to figure out what’s the information that we still need both to convince ourselves and eventually convince regulators that this is a viable process.

One last question, regarding the in-situ method, most of the information you guys put out is in relation to the number of barrels of oil available. I am wondering once project gets to, and again this is essentially probably years down the road, once it gets to the production and commercialization, do you guys have any data regarding the amount of gas or natural resource whatever. You are essentially using the method to create the oil, but you are also a byproduct I believe was also natural gas if I remember correctly watching the video. Did you guys have any estimates on the amount of gas that’s going to be produced as well?

Yes, at a high level and this gas applies to both the Colorado and the Israeli projects. You can expect a total, whatever total of volume produced in any given time period whether it’s on a daily, monthly, or annual basis will come roughly two-thirds in the form of coil and one-third in the form of gas. And some of that gas depending on our eventual heating methods could be used and is likely to be used for heating the resource effectively to create a self-generating process effectively in energy independent process and any excess that we have we would then sell into the markets.

Okay, that’s all I got, guys.

Okay, thank you very much for your thoughtful questions.

Our next question comes from Robert (indiscernible). Please go ahead.

Alright, good morning. I have had two questions. First one, IDT Energy, you saw a sequential net decline in customers by meters in the fourth quarter, are you seeing resumption of growth now on a sequential basis in the first quarter now that we are coming towards the end of the first quarter?

Geoff?

Hi, this is Geoff. To respond to that, as I said in my comments, the predominant driver of the drop in growth during the fourth quarter was directly due to Sandy, where not only did we stop all acquisition efforts, obviously during the hurricane, but actually for a period, some period of time thereafter and then only slowly started to re-ramp up the acquisition efforts. And that’s certainly because we are on the East Coast and the hurricane hit the core territory that we sell in. So, I can’t tell you that number one is yes, we have since the beginning of the year we have completely re-ramped up in terms of the gross meter adds to a similar level that we were doing pre-Sandy. We also and this is something that I have mentioned on some prior calls, the nature of our acquisition engine is such that periodically during the year, probably once every couple of quarters we also take the opportunity to retool the engine. And we have enough vendors and products that we tried to mix it up a little bit and make it more efficient. So, that has been done as well. So, you are – the growth numbers are up, we do feel very optimistic about what we will see in the future months and we are looking for this year, for this calendar year to be once again net growth after churn.

You actually also are reducing the incentives that you gave to customers as a result of Sandy, is that still being sort of turned down now?

Yes. We actually, those incentives were very simply time-specific. They lasted for approximately a month. Those have all been stopped and we have now gone back to our regular programs and regular incentives and offers.

Alright. Moving on to Genie Oil and Gas, what are sort of the all sort of budgets your capital expenditures should be three-year projects now for AMSO and strata and also for the Golan in terms of exploration expenditures for the current year?

Sure. This is Avi. We don’t provide specific guidance for each of the projects individually, but sort of looking at Genie Oil and Gas as a whole, so as you are talking about IEI’s LNG initiatives of the project in the Golan, AMSO, as well as our other sort of development projects. We are looking at that as for 2013 to be sort of in the $20 million range for all the projects.

That compares to last year?

It’s a slight pickup, but specifically driven by what we are looking to do in the Golan.

Alright. And also a question on do you have the number of the corporate costs ahead of these costs I think in the first nine months it was about $5.7 million?

You are looking for corporate for the full year?

Yeah.

So, corporate for the full year 2012 was $7.9 million.

And is that turning to these normalized levels, I know this is being the first full year as an independent company in that?

Yeah, that’s what we are expecting to see on a go-forward basis with sort of standard inflation or modest as things start to grow. As we discussed in the past, the comparable period when we were part of a private subsidiary within public company is not always an apples-to-apples comparison. And it’s also important to remember that, that number includes non-cash compensation.

Alright. So, how much of that is made up by non-cash compensation from (indiscernible)?

For the full year 2012, non-cash compensation was about $2.6 million.

Alright.

I am sorry, you know what I was doing the wrong lines $3.4 million.

$3.4 million. So, basically reading your underlying corporate costs are somewhere around $2.5 million something like that?

Yes, correct.

And that’s going to be sort of more or less the number going forward?

That’s what we are expecting.

Okay, thanks very much. That’s it from me.

Thank you.

Having no further questions, this will conclude our question-and-answer session and conference call. Thank you for attending today’s presentation. You may now disconnect.