Hello, and welcome to the NACCO Industries Q3 2022 Earnings Conference Call. My name is Lauren, and I will be coordinating your call today. [Operator Instructions] I will now hand you over to your host, Christina Kmetko to begin. Christina, please go ahead.

Thank you. Good morning, everyone, and welcome to our 2022 third quarter earnings call. Thank you for joining us this morning. I am Christina Kmetko, and I'm responsible for Investor Relations at NACCO Industries. Joining me today are J.C. Butler, President and Chief Executive Officer; and Elizabeth Loveman, Vice President and Controller. Yesterday, we published our third quarter 2022 results and filed our 10-Q. This information is available on our website. Today's call is also being webcast. The webcast will be on our website later this afternoon and available for approximately 12 months. Our remarks that follow, including answers to your questions, could contain forward-looking statements. These statements are subject to a number of risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements made here today. These risks include, among others, matters that we have described in our earnings release issued last night and in our 10-Q and other filings with the SEC. We disclaim any obligation to update these forward-looking statements, which may not be updated until our next quarterly earnings conference call, if at all. In addition, we will be discussing non-GAAP information that we believe is useful in evaluating the company's operating performance. Reconciliations for these non-GAAP measures can be found in our earnings release and on our website. In a moment, I will discuss our results for the quarter. But first, let me turn the call over to our President and CEO, J.C. Butler, for some opening remarks. J.C.?

Thank you, Christy. And good morning, everyone. Our third quarter results, while down from last year, exceeded our expectations, specifically in our Minerals Management and Coal Mining segments. On the surface, our operating profit net income both decreased from the third quarter of 2021, but there are several items in those numbers that are skewing the comparison and making it difficult to see the results of the underlying operations. Christy will go into more detail about our earnings and provide an overview of our outlook in a minute. But first, let me highlight the progress we made this quarter at each of our segments. Our Minerals Management segment reported an increase in operating profit over the prior year, but more importantly, a 54% increase in segment adjusted EBITDA, which is a much better indicator of its underlying results. Once again, substantially higher natural gas and oil prices in 2022 drove the improvement in Minerals Management as did increase production from new wells on company leases. Minerals Management team is also showing continued success in its efforts to grow and diversify. During the quarter, Catapult Mineral Partners, which is our business that manages the oil and gas part of this segment, completed an $11.4 million acquisition of mineral interest in the Texas portion of the Permian Basin and the Wyoming portion of the Powder River Basin. This acquisition includes approximately 12,000 gross acres and 800 net royalty acres. Our team at Catapult continues to look for attractive acquisitions of mineral and royalty interest of up to $10 million in 2023. In the Minerals Management segment, our forecast assumes oil and gas market prices in 2023 will moderate to levels in line with 2021 averages. As we've seen throughout 2022, commodity prices are inherently volatile and increases in natural gas and oil…

Thank you, J.C. I'll start with the consolidated results for the third quarter of 2022 and then provide additional detail at the segment level, not already covered by J.C. I will also provide some insight on our expectations for the 2022 fourth quarter and full year as well as the high-level overview of our current expectations for next year. While we are providing this first look, more color will be provided with our year-end earnings release once we have finalized our 2023 annual operating plan. On a consolidated basis, our operating profit decreased to $9.8 million from $27.6 million in the third quarter of 2021. Consolidated net income also declined to $10.6 million or $1.45 per diluted share from $24.8 million or $3.47 per diluted share last year. As J.C mentioned, there are several items that make it difficult to compare between periods. The largest driver of the decrease in earnings between periods is $10.3 million in third quarter. In addition, the 2022 third quarter includes a charge of $3.9 million at the Minerals Management segment related to a write-off of legacy coal reserve and the $800,000 charge as a result of the voluntary retirement program that J.C discussed. Consolidated adjusted EBITDA, which excludes the impairment charge and contract termination fee, moderately decreased to $22.1 million from $23.3 million in the third quarter. The decrease was primarily driven by lower earnings in the Coal Mining segment and higher unallocated employee-related expenses partly offset by improved earnings in the Minerals Management segment and income from our equity interest in Midwest AgEnergy. Moving to a discussion of our segments. Excluding the prior year contract, Coal Mining business decreased significantly due to a decline in earnings of unconsolidated operations because of a reduction in the per ton management fee at the Falkirk Mine…

It doesn't appear that we have any questions. So thank you for listening. We'll close with a few final reminders. A replay of our call will be available online later this morning. We'll also post a transcript on the Investor Relations website when it becomes available. If you have any questions, please feel free to reach out to me. You can reach me at the number on the press release. I hope you enjoy the rest of your day, and now I'll turn it back to the operator to conclude the call.

Thank you. This concludes today's call. Please note that a telephone replay will be available shortly. If you would like to listen to the replay, then please dive with the following numbers: the U.S. local number on 1 (929) 458-6194 or the U.S. toll-free number on 1 (866) 813-9403. And please use the following access code 249652. Thank you for joining the call today. You may now disconnect your lines.