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. Good afternoon, everyone. Welcome to Montauk Renewables earnings conference call to review the third quarter 2022 financial and operating results and business developments. Today, we issued our earnings press release, and 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 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 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, in our third 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. We ask that you please keep to one question to accommodate as many questions as possible. With that, I will turn the call over to Sean.

Thank you, John. Good day, everyone, and thank you for joining our call. Building on our previously announced project to upgrade our Raeger RNG facility, I will start today's call by sharing the next project in our development pipeline. In August 2022, our Board approved a development project to construct a second RNG facility at our Apex location. Our conversations with our landfill host regarding projections in biogas feedstock availability at the site drove our assessment that a second RNG facility will be necessary to add capacity to process the additional feedstock once it becomes available. We anticipate an approximately 40% increase in RNG processing capacity with the addition of this second RNG facility. The expansion is expected to increase daily production capacity by approximately 2,100 MMBtus per day once it is commercially operational in 2024. Next, I would like to provide an update on our Pico dairy cluster project in Idaho. We completed the design of the digestion capacity increase in the third quarter of 2022. We have also begun incurring capital expenditures related to the construction of the project. The dairy has achieved delivery of the first 2 tranches of increased feedstock volumes triggering the 2 associated development payments to the dairy. We expect the dairy to begin delivering the third and final tranche of increased feedstock in 2024. The improvements we have made to date to both our feedstock digestion process efficiencies and to our water management improvements have enabled us to process the increased feedstock volumes. During the fourth quarter of 2022, we learned through discussions with the California Air Resource Board, CARB, that all dairy projects are being designated as what they call Tier 2. And as such, our CI score pathway will be subject to a 10-day public comment period. The late Q4 timing…

Thank you, Sean. I will begin discussing our third quarter 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 third quarter of 2022 were $55.9 million, an increase of approximately $16.1 million or 40.5% compared to $39.7 million in the third quarter of 2021. The primary driver for this increase related to an increase of approximately 111.5% in realized RIN pricing in the third quarter of 2022 of $3.49 compared to $1.65 in the third quarter of 2021. Additionally, higher revenues were driven by an increase in gas commodity index pricing of approximately 104.5% in the third quarter of 2022 of $8.20 compared to $4.01 in the third quarter of 2021. These increases were offset by lower counterparty sharing revenues of $2.8 million in the third quarter of 2022 compared to the third quarter of 2021 due to these arrangements ending. As it relates to our results, our profitability is highly dependent on the market price of environmental attributes, including the market price for RINs. As we sell 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 end of the third quarter of 2022, we had approximately 2.4 million RINs in inventory as compared to 0.3 million at the end of the third quarter of 2021. As a result, we have not entered into arrangements to transfer the majority of RINs expected to be generated and available for transfer during the fourth quarter of 2022. We have currently committed to transfer an insignificant amount of RINs in the fourth quarter of 2022. The average realized price of the commitments we have entered…

Thank you, 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 in index prices does impact our revenue expectations. Our production volumes are also subject to landfill host waste intake, filling patterns and other landfill matters out of our direct control. We expect RNG production volumes to range between 5.6 million and 5.9 million MMBtus with corresponding RNG revenues between $196 million and $216 million. We expect renewable electricity production volumes to range between 188,000 and 198,000 megawatt hours, with corresponding renewable electricity revenues between $17 million and $18 million. And with that, we will pause for any questions.

Thank you for taking the time to join us on the conference call today, and we look forward to speaking with you in 2023.

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