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 fiscal 2022 financial and operating results and business developments. I'm John Ciroli, Chief Legal Officer and Secretary at Montauk. Joining me today are Sean McClain, Montauk's President and Chief Executive Officer, to discuss business development; and Kevin Van Asdalan, Chief Financial Officer, to discuss our third 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's SEC filings. Our remarks today may also include non-GAAP financial measures. We present EBITDA and adjusted EBITDA metrics, because we believe, the measures assist investors in analyzing our performance across reporting periods on a consistent basis by excluding items that we do not believe are indicative of our core operating performance. These non-GAAP financial measures are not prepared in accordance with generally accepted accounting principles. Additional details regarding these non-GAAP financial measures including reconciliations to the most directly comparable GAAP financial measures can be found in our slide presentation and in our fiscal 2022 earnings press release and Form 10-K issued and filed this afternoon. Both are available on our website at ir.montaukrenewables.com. After our prepared remarks, we will open the call to questions. We ask that you please keep to one question to accommodate as many questions as possible. And with that, I will turn the call over to Sean.

Thank you, John. Good day, everyone and thank you for joining our call. I wanted to start this call with a summary of the major events for Montauk during 2022. First, as to our 2021 Montauk Ad Renewables acquisition, we continue to work with our engineer record through the optimization of improvements to the patented reactor technology. During the fourth quarter of 2022, we began to process of relocating our existing reactor at the Magnolia North Carolina facility to the Turkey North Carolina facility in an effort to centralize future feedstock processes. We continue to progress on our improvement and continue to expect reaching commercial operations in 2024. In parallel, we continue to engage with regulatory agencies in North Carolina related to the resulting power generation derived from swine waste to confirm its eligibility for the renewable energy credits under North Carolina's renewable energy portfolio standards in anticipation of commercial production. Our Turkey-North Carolina facility has been accepted into the Piedmont natural gas, renewable natural gas, renewable gas pilot program, which is a step towards obtaining the new renewable energy facility designation under the North Carolina Utilities Commission. Due to our consolidation of operations at the Turkey facility and based on our current expectations related to commercial operations, we have paused our registration process to obtain NREF status for the Turkey-North Carolina location. Next, I would like to provide an update on our Pico Dairy cluster project in Idaho. As part of our overall capacity expansion at the Pico facility, we undertook significant efforts to improve the performance of its existing digestion process. The performance we have made to date into both our existing digestion process efficiencies and to our water management improvements have enabled us to process the increased feedstock volumes we are receiving. The dairy has delivery of…

Thank you, Sean. I will be discussing our 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 2022, were $205.6 million, an increase of $57.4 million or 38.8% compared to $148.1 million in 2021. The primary driver for this increase, relates to an increase of 70.2% in realized RIN pricing during 2022, of $3.25 compared to $1.91 in 2021. Additionally, contributing to the increase was an increase in natural gas index pricing of 72.9% in 2022, of $6.64 compared to $3.84 in 2021. These increases were offset by lower counterparty sharing revenues of $13.2 million in 2022 compared to 2021, due to these arrangements ending. We report the impact of our gas commodity hedge program, within our corporate segment. Our gas commodity hedge program was priced at rates below actual index prices and we recorded a loss of $7.8 million in 2022. Our gas commodity hedge expired in December 2022, and we have not currently entered into any gas commodity hedge programs for 2023. Total general and administrative expenses were $34.1 million for 2022, a decrease of $8.4 million or 19.8% compared to $42.5 million for 2021. The employee-related costs including stock-based compensation, decreased approximately $10.6 million or 35.4% in 2022 compared to 2021. The decrease is primarily related to our accounting for cancellation of MNK options and the 2021 grants of restricted stock, non-qualified stock options and restricted stock units to the company's employees. Offsetting this decrease is an increase in general and administrative expenses of approximately $3.6 million, or 337.5% in 2022 as compared to 2021 associated with the Montauk Ag Renewables acquisition. Our corporate insurance premiums increased approximately $0.4 million, 6.8%, during 2022 compared to 2021 primarily…

Thank you, Kevin. In closing, we would like to provide our full year 2023 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 expect RNG production volumes to range between 5.7 million and 6.1 million MMBtu with corresponding RNG revenues between $137 million and $145 million. We expect renewable electricity production volumes to range between 195,000 and 205,000 megawatt hours with corresponding renewable electricity revenues between $18 million and $19 million. And with that we will pause for any questions.

Thank you. [Operator Instructions] Our first question is from William Blair [ph] with TPH. Your line is open.

Hey, Sean and Kevin, good afternoon. Thanks for taking my question here. I had a two-part question. So the first was on the 2023 RNG production. At the midpoint it's about a 7% growth rate compared to your 2022 level. Is that a good number it's kind of mid-single digits. Is that a good number to run with for the next three years or so? Because you did outline some compelling growth projects Apex-2, the work you're doing on the ag side. So I guess the question is, should we expect a step up in 2024 or is mid-single digit the right way to think about it going forward? And then the second question is, could you just clarify in your revenue guidance for 2023, what is your assumption on D3 RINs and LCFS prices that's embedded in that guidance? It kind of sounds like you expect D3 RINs to move up but I just wanted to know what the actual embedded number was? Thank you.

Thank you, Matthew. I'll address the 2023 RNG production volumes first. Using the middle point for a growth rate from 2023 – from 2022, would not include our expected volumes from the Apex project coming online in 2024. So we would anticipate a larger production volumes in 2024, as compared to that 2023 growth rate. And as it relates to the residual rest of 2023, I think as we were talking last year. There are some well field expansion projects as we monitor our well field expansion during the year as well as our landfill host during the year, we'll continue to monitor that 2023 production range and as we move throughout the year. And then just to reiterate Sean's comments, we generally try to not opine on what our view of the RIN price is going to be in our embedded revenue guidance just knowing that we have a view on what those D3 RIN indexes is going to look like for the rest of the year or the LCFS credit price as well.

Thank you. One moment for our next question. Our next question is from Manav Gupta with UBS. Your line is open.

Good afternoon, guys. I also have a two-part question. And the first part here is that, as I look at the revenue year-over-year, it looks like from the RNG side you're going from about $196.2 million this year to about $137 million to $145 million, so let's say $141 million and I'm just trying to make sure is that apples-to-apples? And is that primarily driven by credit price differencing? And what I'm trying to really get here is, is there any reason why the EBITDA margin should be very different between the two years. So starting with a lower number, should I still assume a similar EBITDA margin for 2023, if I'm trying to benchmark my model versus 2022?

Okay Manav. I can take that question. The guidance that we provided is it's reflective of the call it midpoint of the increase in production, it does reflect from a revenue perspective the expectations of attribute pricing. The EBITDA margins, as you're calling them, are expected to reflect changes with respect to tiered royalty structure that we have historically disclosed the business utilizes, your cost of operations are not impacted in an increasing or a decreasing attribute scenario.

Thank you. One moment for our next question. And our next question is from Craig Irwin with ROTH. Your line is open.

Hi guts. It's Andrew on for Craig. Thanks for taking my questions. So just a quick one for me here, you did touch on it on the prepared remarks, but I was just hoping you could provide some more color around the RVO proposal from the EPA and in particular the introduction of RINs proposed volumes of 600 million gallons in 2024 versus around 620 million gallons for D3 RINs in 2023? So just I was wondering if you thought the proposed volumes were sufficient for the industry. And how has this shaped your thinking of RIN monetization in the near-term?

Without giving a lot of speculation on our view of what RIN pricing will be we do acknowledge that the compartmentalization of the RVO that was given by the EPA does sync up significantly closer to the run rate of RIN generation that's publicly available on the EPA site, in relation to what the RVO has been compared to previous years. That compared with the allocation of future years for the onset of eRINs although is an exciting development. We do expect there to be a healthy discussion related to a large volume of commentary that's been submitted to the EPA, since they released to those preliminary numbers.

Thank you. One moment for our next question. And our next question is from Craig Shere with Tuohy Brothers. Your line is open.

Good afternoon. Given the weakness in environmental attribute pricing of late LCFS somewhat steady over the past year plus and more recently RINs. Is the fixed price institutional voluntary market looking more attractive, or is the international opportunity to monetize environmental attributes looking more attractive? I know you participated in both of those.

That's a great question Craig. The both the voluntary market as well as the international markets have continued to provide interesting opportunities to secure a relatively healthy baseline of revenue streams as an alternative to selling directly into the market. Our business model allows for us to divert volumes out of the RFS market to take advantage of those opportunities as they become available and the business routinely entertains and discusses with voluntary market off-takers as well as folks that participate even as obligated parties in the RFS that are looking for alternative structures beyond just a straight purchase of the D3 RIN attribute.

Thank you. And I'm showing no further questions at this time. I would now like to turn the conference back to Sean McClain, for closing remarks.

Well, we thank you for taking the time to join us on the conference call today. And we look forward to speaking with you again, on our 2023 first quarter conference call.

And this concludes today's conference call. Thank you for participating. You may now disconnect.