Good afternoon, everyone and thank you for participating in today's conference call. I would like to turn the call over to Mr. John Ciroli, as he provides some important cautions regarding forward-looking statements and non-GAAP financial measures contained in the earnings materials or made on this call. John, please go ahead.

Thank you and good afternoon everyone. Welcome to Montauk Renewables Earnings Conference Call to review Second Quarter 2022 Financial and Operating Results and Business Developments. Today, we issued our earnings press release. I'm John Ciroli, Vice President, General Counsel and Secretary at Montauk. Joining me today are Sean McClain, Montauk's President and Chief Executive Officer, to discuss business developments; and Kevin Van Asdalan, Chief Financial Officer, to discuss our second quarter 2022 financial and operating results. At this time, I would like to direct your attention to our forward-looking disclosure statement. During this call, certain comments we make constitute forward-looking statements and as such, involve a number of assumptions, risks and uncertainties that could cause the company's actual results or performance to differ materially from those expressed in or implied by such forward-looking statements. These risk factors and uncertainties are detailed in Montauk Renewables' SEC filings. Our remarks today may include references to non-GAAP financial measures. Reconciliations to the most directly comparable GAAP financial measures can be found at the back of our slide presentation and in our second quarter 2022 earnings press release and Form 10-Q, which are available on our website at ir.montaukrenewables.com. After our prepared remarks, we will open the call to questions. [Operator Instructions] With that, I will turn the call over to Sean.

Thank you, John. Good day, everyone and thanks for joining our call. In June 2022, our Board approved a capital project to upgrade our Raeger, RNG facility to increase production under stringent federal pipeline tariff requirements that limit the oxygen content of product gas. We anticipate this improvement project will become commercially operational in the second half of 2023, at which time we expect an approximately 50% increase in average daily production from the already existing available feedstock. The company continues to progress with its dairy cluster RNG projects, Pico in Idaho. We expect to finalize the design of our digestion capacity expansion, along with water management and purification improvements in the third quarter of 2022. We expect the California Air Resource Board, CARB, will finalize its review of our CI score for Pico during the third quarter of 2022 and complete its validation of the application during the fourth quarter of 2022. We expect to begin releasing gas from storage in the third quarter of 2022. Related to our Pico feedstock amendment, the dairy began to deliver the first tranche of increased feedstock volumes in the third quarter of 2022, triggering a development payment to the dairy. We expect the dairy to begin delivering the second tranche of increased feedstock in the first half of 2023. The improvements made to date in our digestion process efficiencies and in our water management have enabled us to process all of the increased feedstock. The company continues to optimize improvements to the now patented reactor technology, which is operating a pilot scale at our Magnolia, North Carolina location. We have not yet, however, completed the optimization program of the Magnolia facility and have not yet achieved commercial operations. We continue to engage with regulatory agencies in North Carolina related to the power…

Thank you, Sean. I will be discussing our second quarter of 2022 financial and operating results. Please refer to our earnings press release and the supplemental slides that have been posted to our website for additional information. Total revenues in the second quarter of 2022 were $67.9 million, an increase of approximately $36.2 million or 114.3% compared to $31.7 million in the second quarter of 2021. The primary driver for this increase related to an increase of 89.9% in realized RIN pricing in the second quarter of 2022 of $3.38 compared to $1.78 in the second quarter of 2021. Additionally, higher revenues were driven by an increase in natural gas index pricing of 153.4% in the second quarter of 2022, up $7.17 compared to $2.83 in the second quarter of 2021. These increases were offset by lower counterparty sharing revenues of $1.1 million in the second quarter of 2022 compared to $6.1 million in the second quarter of 2021. Also offsetting the increase are gains recognized in the second quarter of 2022 related to gas commodity hedging activities of approximately $1.6 million. As it relates to 2022 results, our profitability is highly dependent on the market price of environmental attributes, including the market price of RINs. As we self-market a significant portion of our RINs, a decision not to commit available RINs during a period will impact our revenue and operating profit. At the beginning of the second quarter of 2022, we had approximately 4.4 million RINs in inventory. We sold all of those RINs in inventory during the second quarter of 2022 in addition to the RINs generated from our second quarter 2022 production. At the end of the second quarter of 2022, we had approximately 1.6 million RINs in inventory as compared to 1.6 million RINs in inventory…

Thanks Kevin. In closing, we want to provide our updated full year 2022 outlook. While we don't provide guidance on our expectations of future environmental attribute prices, volatility and index prices does impact our revenue expectations. We are halfway through our various wellfield capital projects, have improved clarity regarding the completion of those projects and their expected benefits and accordingly have narrowed our production ranges. We expect RNG production volumes to range between 5.6 million and 6.3 million MMBtus with corresponding RNG revenues between $200 million and $220 million. We expect renewable electricity production volumes to range between 188,000 and 208,000 megawatt hours, with corresponding renewable electricity revenues between $17 million and $18.8 million. And with that, we will pause for any questions.

And I am not seeing any questions at this time. So, I would like to turn the conference back to Sean McClain for closing remarks.

Thank you. Thank you for taking the time to join us on the conference call today, and we look forward to speaking with you on our 2022 third quarter conference call.

This concludes today's conference call. Thank you all for participating. You may now disconnect, and have a pleasant day.