Good morning, and welcome to Genie Energy's Third Quarter 2016 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. [Operator Instructions] In its presentation, Genie Energy's management team will discuss financial and operational results for the three month period ended September 30, 2016. Any forward-looking statements made during this conference call, either in the prepared remarks or in the Q&A session, whether 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 reports that Genie Energy files periodically with the SEC. Genie Energy assumes no obligation, 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. During their remarks, management may make reference to adjusted EBITDA, which is a non-GAAP measure. Generally, a non-GAAP financial measure is a numerical measure of a company's performance, financial position or cash flows that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with GAAP. Management believes that Genie Energy's adjusted EBITDA provides useful information to both management and investors by excluding certain expenses that may not be indicative of Genie Energy's or the relevant segment's core operating results. Adjusted EBITDA should be considered in addition to, not as a substitute for, or superior to, gross profit, income or loss from operations, cash flow from operating activities, net income or loss, basic and diluted earnings or loss per share or other measures of liquidity and financial performance prepared in accordance with GAAP. The Genie Energy earnings release including a reconciliation of adjusted EBITDA to net income 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’ll now turn the conference over to Geoff Rochwarger, Genie's Vice Chairman and CEO of Genie E&P. Please go ahead, Mr. Rochwarger.

Thank you, operator. Welcome to Genie Energy's third quarter 2016 earnings conference call. On today's call, we will review operational and financial results for the three months ended September 30, 2016. I will lead off with an update on the oil and gas exploratory operations conducted by our Afek subsidiary operating in Northern Israel. Michael Stein, CEO of Genie Retail Energy, will then review operational developments at Genie Retail, our retail energy provider business. Then Avi Goldin, our Chief Financial Officer, will discuss the quarter's financial results. At the conclusion of Avi's remarks, we will take your questions. Turning now to Afek. During the third quarter in conjunction with our team of consultants and external experts from the industry we continue to analyze results obtained from both the drilling and well flow test programs conducted in the Southern block of our license area. That is the portion of our license area South of the Sheik Ali Fort [ph] which runs Northeast to Southwest through the license area. In addition we have stepped up our analysis of the reprocess seismic data generated in the early 1990s and a portion of the Northern block of our license area. This study is some of which we have completed and others that are ongoing are intended to provide us with a better understanding of the resource and subsurface conditions which will help to enhance our resource models across the license area. In light of the results of this analysis to-date we have shifted our operational focus to the Northern block. Given current market conditions and what we know right now we do not currently see a clear path to probable or possible reserves in the Southern block in the course of the next 12 to 18 months. In conjunction with this determination, accounting rules…

Thank you, Jeff. Let me start with the breaking news. Yesterday, we closed on the acquisition of Retail Energy Holdings, LLC., a privately held retail energy provider which operates Town Square Energy and serves approximately 45,000 electric RCEs to customers in eight states. The purchase price was $9.5 million plus the value of net working capital or approximately $210 per RCE, which is in line with the market of this type of operations. We paid in cash and that will impact our balance sheet and other financials beginning in the fourth quarter. Importantly for Genie Retail, Town Square significantly expanded our geographic footprint, bringing us licenses and customers in four new states New Hampshire, Rhode Island, Massachusetts and Connecticut and increases our market reach in Ohio to additional utility territories. Town Square will also add to our existing meter base in New Jersey, Maryland, Ohio and Pennsylvania. We will continue to serve these customers under the Town Square brand and look for this acquisition to be immediately accretive to our bottom line and provide valuable operational synergies. Turning now to the quarter’s results. Genie Retail Energy again performed well in the third quarter which includes the peak cooling months of July, August and September. RCE served at September 30 were 241,000, an increase of 2,000 from June 30. But a decrease from $260,000 at September 30, 2015. The sequential increase in RCEs reflect impart increased average per meter consumption including the impact seasonality and other weather driven changes. Meters served decreased to 383,000 at September 30 from 390,000 at June 30 and from 388,000 at September 30, 2015. We added 58,000 gross meters in the third quarter. The same as in the second quarter while still a little below the 74,000 meters added in the year ago quarter. Our pace…

Thank you, Michael and thanks to everyone listening and for joining us this morning. My remarks cover financial results for the third quarter of 2016, the three-month period ended September 30, except or indicated otherwise all comparisons in my remarks are to the results of the corresponding period in 2015. Consisting with my approach in prior quarters, our focus on the year-over-year comparisons rather than the prior quarter’s results, to remove from consideration the seasonal fluctuations that are characteristic of our retail energy business. Our financial results this quarter reflect a consistent results from Genie Retail Energy and the impact of reduced oil and gas exploration activity in Northern Israel. As in prior quarters, Genie Retail Energy generated all of Genie Energy’s revenue direct cost of revenues and gross profit. In the third quarter, Genie Retail revenue increased to $57.2 million from $52.9 million in the year ago quarter. The increase was driven by an increase in kilowatt hours sold as higher average per meter consumption was partially offset by lower revenue per meter. Higher commodity costs and more competitive pricing reduced our gross margin to 35.4% from 40.1% in the year ago quarter. Gross profit came in at a solid $20.2 million, a slight decrease from $21.2 million a year earlier. We reduced consolidated SG&A expense to $15 million from $15.9 million in the year ago quarter on lower sales and general expenses. Research and development expense was nil, compared to $394,000 in the year ago quarter, as a result of the wind down of operations at GOGAS. Exploration expense incurred entirely by Afek's operations in Northern Israel was $1.3 million, compared to $1.5 million in the year ago quarter, reflecting the reduced scope of operations in the Southern block. Afek capitalized just $126,000 in exploration cost, compared to…

We’ll now begin the question-and-answer session. [Operator Instructions] The first question is from Aaron Shafter of Great Mountain Capital.

Good morning, gentleman. First, congratulations on another solid quarter. Given that you’ve had several solid quarters in a row things seem to be going well in general, besides the disappointments in the Southern part of your lease related to Afek. I'm wondering if you can comment on the recent and steady slow decline in the stock and if you think that it's undervalued?

This is Avi. So obviously we've been paying attention to the Afek's operations performance. We’ve been disappointed by the recent movement down. That being said, we don't see any specific change in the fundamentals of what we've been saying over the past number of quarters related to the health of the retail business and our activity at Afek. We recognize that the market is waiting for us to deliver on some of the things that we've been saying over time. And we’re hopeful that over the next few quarters we'll be in a position to do that. As you mentioned, we're very encouraged by the recent performance at retail as well as the continued prospects for Afek. But we can't really comment on how the stockings.

Is there any possibility that you’d contemplate a stock buyback?

I'm sorry. Can you repeat the question?

Any possibility that you’d contemplate a stock buyback?

It's something that had been discussed at the Board level and some of that is on the table and our discussions among other things. We have an authorization for one and you can see within our 10-K, but it's not something we're concentrating at the moment.

Okay. All my questions for now.

[Operator Instructions] This concludes our question-and-answer session and conference call. Thank you for attending today's presentation. You may now disconnect.