Good evening, and welcome to Genie Energy’s Second Quarter 2020 Earnings Call. All participants will be in listen-only mode. [Operator Instructions] In its presentation, Genie Energy’s management team will discuss operational and financial results for the three months period ended June 30, 2020. 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 the company anticipates. These risks and uncertainties include, but are not limited to, specific risks and uncertainties discussed in the report 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 and pro forma revenue and pro forma income from operation or Genie Retail Energy International segment, both are non-GAAP measures. Management believes that Genie Energy’s measure of adjusted EBITDA and Genie Retail Energy International’s pro forma results provide useful information to both management and investors that supplement Genie Energy and the Genie Retail Energy International segment’s core operating results. The Genie Energy earnings release includes a reconciliation of adjusted EBITDA to net income and of the pro forma Genie Retail Energy International results to the nearest comparable GAAP measures. The earnings release is posted on the Investor Relations page of the Genie Corporation website, www.genie.com and has been filed on a Form 8-K with the SEC. After today’s presentation by Genie Energy’s management, there will be an opportunity to ask questions. [Operator Instructions] Please note this event is being recorded. I will 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 2020 earnings call. Today, we will discuss our operational and financial results for the three months ended June 30, 2020. As in prior quarters, my remarks will focus on our operational results and key performance indicators. Avi Goldin, our Chief Financial Officer, will follow with a deeper dive into the quarter’s financial results. Following Avi’s remarks, we will be glad to take your questions. Genie Energy generated the highest level of adjusted EBITDA of any second quarter in the company’s history and much improved financial results compared to the difficult year ago quarter. Operationally, our businesses also performed very well despite the challenges of the COVID-19 impacted environment. Globally, our retail energy provider businesses, which generated 94% of our revenue added 64,000 RCEs year-over-year and 20,000 sequentially to reach 421,000 RCEs with solid growth in both our domestic and international markets. Global meters served increased by 88,000 year-over-year and 4,000 sequentially to 536,000. The increases in meters served were driven by expansion at Genie Retail International, including those of our Orbit Energy joint venture in the UK. Here in the U.S., Genie Retail Energy added 25,000 RCEs year-over-year and 13,000 sequentially to reach 343,000 RCEs. Domestic meters serve declined by 4,000 year-over-year and 10,000 sequentially to 374,000. The robust increase year-over-year in domestic RCEs relative to the decrease in meters served reflect our sustained focus on acquiring higher consumption meters, warmer than average weather in the second-half of the quarter and the COVID-19-driven shift to work from home. These factors combined to increase electric per-meter consumption by 26% compared to the year ago quarter. The COVID-19 pandemic has impacted several key aspects of GRE’s business operations with a mixed financial impact. Our customer base is predominantly residential, so we benefited from…

Thank you, Michael, and thanks to everyone on the call for joining us this morning. My remarks today cover our financial results for the three months ended June 30, 2020. Throughout my remarks, I will compare second quarter 2020 results to the second quarter of 2019. Focusing on the year-over-year rather than sequential comparison removes some consideration to seasonal factors that impact our retail energy business. Keep in mind that the second quarter is typically characterized by relatively low energy consumption after the peak heating season in the first quarter and before the third quarter’s peak air conditioning months in July and August. Results are driven by the electric side of the business with minimal gas consumption. The second quarter’s financial results were strong, particularly in comparison to the year ago quarter. As you may recall, the second quarter of last year was heavily impacted by mild weather and a mark-to-market within our hedge book. We express confidence that the business would rebound and our performance since then has justified that confidence. In the trailing 12-month period, the company has achieved its highest level of consolidated operating income and adjusted EBITDA. As Michael discussed, the COVID-19 pandemic has resulted in mixed operating impacts, increasing electricity consumption while decreasing churn and slowing the pace of gross meter additions. In addition, the decline in overall commercial industrial power consumption in our markets has helped mitigate price volatility despite the increase in residential consumption. As we have noted before, predictable commodity price environments tend to favor our business model. Consolidated revenue in the second quarter increased by $15.1 million to $76.1 million. The increase was powered by higher per-meter electricity consumption, resulting from the general acquisition of higher consumption meters, warmer weather than the year ago quarter and increased residential electricity consumption from…

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

Hi, congratulations on yet another strong quarter. Not only was it a vast improvement over Q2 of 2019, but you can built on Q1 of this year in which you set some records for the company. So now that you’ve gone a year showing strong results from the bad quarter last year, do you expect the market to recognize that Genie stock is underpriced?

Hi, Aaron, thanks for the good wishes and good to hear from you again. We don’t really know what’s going to happen in the market. We think we should get a little bit of a boost. But we’ll wait and see how the market reacts. And as we’ve discussed in previous quarters, we’re – and as we did this quarter, we’ll be diligent in repurchasing if opportunity comes our way.

Okay. So you did repurchase more than 200,000 shares. And if you see an opportunity, we can expect more repurchases?

We try to be strategic about it. So it all depends on the price and where we think we are in the quarter.

Okay. And during the call, I was mentioned that you’re going to go into some – entering some new territories. Can you specify, which new territories you’re going to be entering?

I’d prefer not to specify. We like to keep that pretty close. But we have mentioned in the past that we have been licensed in Michigan and Georgia, and those are among the two states where we’re going to start operating. And then there are a bunch of utility territories within the states that we already operate in, where we hadn’t yet had customers and we’ll start to get going there, too.

Okay. And then finally, about OPEC and the next 10 wells. Did I hear correctly that we’re – we won’t get another update until you’re reporting the third quarter results?

I’m hoping we’ll have an update – yes, I’m hoping we’ll have an update before then. But I just want to…

Okay.

…set expectations. We were really close. We thought we were going to be able to do the test this past quarter. We thought we had all the visas in place. So we were about to get all the visas in place and we’re missing one approval, and that’s all because of the COVID – the COVID environment. We weren’t able to get a visa for an essential worker. And as soon as we get that, we should be able to – he has got a quarantine in Israel for a few weeks and then we should be able to get going that. We…

Okay.

…we just wait until we get the approval.

So we’re just waiting on the visa for one worker and he gets the two weeks in quarantine, and then you should be ready to go. Is that what I understand correctly? Do I understand that correctly?

Yes. That’s what we are hoping, that’s what we’ve been told.

Okay. So the new corona Zohar, whatever they’re calling them and Israel announced that wants to open up the country to at least from certain countries, air travel by – in the next week or two. So I guess, we can only hope. All right.

All right, we can only hope…

That’s it. Thanks again for answering my questions and congratulations again on another great quarter.

All right. Take care. Thanks a lot.

[Operator Instructions] This concludes our Q&A session and conference call. Thank you for attending today’s presentation.