Good morning, and welcome to Genie Energy’s Second Quarter 2018 Earnings Call. All participants will be in 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 this presentation, Genie Energy’s management team will discuss financial and operational results for the three-month period ended June 30, 2018. 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 the 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 and cash flows that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measures 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 a Form 8-K with the SEC. Please note this event is being recorded. I would now turn the conference over to Michael Stein, Genie Energy's Chief Executive Officer. Please go ahead, Mr. Stein.

Thank you, operator. Welcome to Genie Energy's Second Quarter 2018 Earnings Call. Today we will review our operational and financial results for the three-month period ended June 30, 2018. I'll provide a brief overview of our strategic and operational progress and then Avi Goldin, our Chief Financial Officer, will discuss the quarter's financial results. Following Avi's remarks, we will be glad to take your questions. Now turning to our operational results. At a high level, we continue to make good progress realizing the tremendous potential of our Retail Energy Provider or REP business, while working to complete our oil and gas exploration program. At Genie Retail Energy, the second quarter is typically characterized by the lowest levels of commodity consumption of any quarter with improved margins on both electricity and gas sales. At a relatively lowest spend rate on customer acquisition, we again, delivered solid financial results as Avi will detail to you shortly. Operationally, gross meter acquisitions by Genie Retail Energy in the U.S. during the second quarter, increased from 55,000 meters added in the first quarter to 57,000 in the second quarter. Below that total was below the 98,000 meters we acquired in the year ago quarter. Over the past several quarters, we have pulled back our customer acquisition program in certain states, particularly in New York, to mitigate regulatory risk, and overall have focused more selectively on relatively higher consumption customers. I expect that we will continue to see a gradual increase in our rate of gross meter adds during the second half of the year, and at these new customers, we'll yield greater lifetime value than our historical average. Our targeted Meter add programs are helping to diversify our U.S. customer base geographically. As a result, we are less concentrated in the states where we first…

Thank you, Michael, and thanks to, everyone, on the call for joining us this morning. My remarks today cover our financial results for the second quarter of 2018 to three-month period ended June 30. Throughout my remarks, I'll be comparing this quarter's results to the second quarter of 2017, focusing on the year-over-year rather than the sequential comparisons removes from consideration to seasonal factors that are characteristic of our retail energy business. Typically, the second and fourth quarters are characterized by significantly lower levels of electricity consumption than the first and third quarters, and gas consumption peaks in the first quarter with corresponding impacts on our top and bottom-line. The second quarter of 2018 was a solid quarter financially for Genie Energy’s core operations and in line with our expectations. Two quick notes before I present the results in more detail. First, in the second quarter of 2017, Genie Retail Energy accrued $9 million related to the settlement of certain class action lawsuits, which reduced GRE’s revenue by $3.6 million, $3.1 million electricity revenue and $500,000 in gas revenue, to reflect expected customer refunds, while increasing SG&A by $5.4 million for legal expenses. This should be kept in mind when evaluating year-over-year comparisons. Second, the decision to explore strategic options for our Atid drilling subsidiary, resulted in the consideration of the asset is held for sale, which triggered an impairment charge of $2.3 million in our GOGAS segment during the second quarter. As Michael mentioned, we have entered into an agreement in principal to restructure Atid. Revenue increased to $56.4 million from $50.2 million, reflecting both the revenue reduction the year ago quarter for legal settlements of $3.6 million and increased revenue per unit sold electricity, and on a much smaller volume of natural gas. The volumes just combinedly sold…

Thank you. We will now begin the question-and-answer session. [Operator Instructions] Our first question comes from Aaron Shafter of Great Mountain Capital Management. Please go ahead.

First, congratulations on a solid quarter. First question is, do you have any per share figure, excluding the onetime charges from this quarter?

Sorry. The onetime charge on the rig impairment?

The rig impairments, the legal settlements are the other things that seem to be onetime charges?

So the legal settlements did not impact this quarter. We projected it as because it was in the year ago quarter. So the only onetime charge affecting this quarter was the rig impairment.

Okay for Atid. Okay. And do you have any figure on that exactly what that would mean per share?

On a per share basis?

Yes.

So the rig impairment was $2.3 million.

So it should be around negative $0.01, if I'm not mistaken.

Okay. And relating to the permits and for Afek, it sense that you're in process of securing the permits and other regulatory approvals. Maybe just one the testing, can you expand on that at all. How long do you expect that to take? When do you expect to be able to get the testing? Anything more that you can share.

Yes, it's hard to know exactly when exactly we might get that permit. If you recall, there is a license that the Government of Israel gives out for the exploration. That's the license from the Energy Ministry, which we have. We got that renewal. And then there is a local permitting authority in the northern region that decides whether or not we can do the work and how we can do the work et cetera. We are expecting some kind of guidance from them, I think in the next few weeks, but I think it's really that tell when we might actually get started.

And anything more that you could share on what testing that you plan to do once -- assuming that you get the permits and approvals?

Not specifically. What we've been able to discuss with shareholders is that this is going to be a much smaller level of testing than what we've done in the past when we were looking to do testing. And that is something that we don't expect to sort of reach the materiality levels that we've seen before. But we don't have the specifics on the work plan to discuss.

Yes, one of the reasons why we mentioned the restructuring in mine and Avi's remarks of that key drilling is what we're trying to do is minimizing the ongoing cash expenses between now and when we actually get to do the work. So that once we get to do the work whether it's in a month from now, whether it's in three months from now, in the meantime we won't be spending any cash and we won't have to worry about finding in the resources to get it done. That is the purpose of the restructuring.

Our next question comes from Anthony Marchie [ph], a private investor. Please go ahead.

Could you shed a little bit more light on your entrance into a new attributing market? Is it domestic is it overseas? Have you incurred any expenses thus far or where we see any expense ramp-up when you do into to that market?

Yeah, so when we enter a new market domestically, new state, in most cases, there is very little capital costs associated with entering those new markets except for just actual marketing, which is just dollars-spent on acquiring customers, which should be no difference in that new market than it is in the current market. That's not always the case, but in our 14 states that we're in and most of the states that we planned to enter that is the case. There are states though that require slight some upgrades to our operations in our back-office. But we don't expect those to be huge expenses. Internationally, things are very different because you got to start an operation from scratch. So in this quarter, we spent $700,000 in our JV, in the UK. We expect to continue to invest mostly at this point in customer acquisition, the operations are already there, the personnel are already there. We already have 2,000 thousand meters in that -- in England, and we expect that to grow. That’s true about any international market unless we’re using the UK operation as our base, which is not a worst thinking in the foreseeable future. It will be a little difficult to do that for a whole number of reasons.

Okay. So is your new market, domestic or international?

We did enter an international market. We acquired a shell with the license in Japan and we expect to start marketing there by the end of the quarter, by the end of the year, sorry.

Okay. And is, I realized, is the new market in your minds a comparable to England larger or smaller?

In terms of market size, it’s much larger.

I see. Okay. Great. And a final question. I know you guys have a buyback program. Have you purchased any stock or you're just focusing on conserving capital for your business expansion?

So we had not purchased any stock under the buyback program to date as you've corrected pointed out. We have a lot of exciting opportunities with much of that in internationally and also domestically, as we look to grow the business. And, so for right now, we don't look at conserving capital.

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