Good morning or good afternoon, and welcome to the Vertex Energy third quarter earnings conference call. All participants will be in listen only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press Star and one on your telephone keypad. To withdraw your questions, please press Star and two. Please note this event is being recorded. I would now like to turn the conference over to John Ragozzino. Please go ahead. Thank you, operator. Good morning and welcome to Vertex Energy's third quarter 2022 results conference call. Leading the call today are Chairman and CEO, Ben Cowart, Chief Financial Officer, Chris Carlson, and Chief Operating Officer, James Rhame. Also attending the call are Chief Strategy Officer, Alvaro Ruiz, Vice President, Bart Rice, and Vice President of Black Oil Operations, John Strickland. I want to remind you that management's commentary and responses to questions on today's call may include forward-looking statements, which, by their nature, are uncertain and outside of the company's control. Although these forward-looking statements are based on management's current expectations and beliefs, actual results may differ materially. For discussion of some of the risk factors that could cause actual results to differ, please refer to the Risk Factors section of Vertex Energy's latest annual and quarterly filings with the SEC. Additionally, please note that you can find reconciliations of the historical non-GAAP financial measures discussed during our call in the press release issued today. Today's call will begin with remarks from Ben Cowart, followed by an operational review from James Rhame and financial review from Chris Carlson. At the conclusion of these prepared remarks, we'll open the line for questions. With that, I'll turn the call over to Ben. Thank you, John, and good morning to those joining us on the call today. This morning, we issued a press release detailing our financial and operating results for the third quarter of 2022. Simply put, we're not pleased with the full results for the quarter, largely due to previous hedges that were in place which did not expire until September thirtieth. This was a slight 17% quarter-over-quarter improvement in hedge impacts, along with an additional 22% improvement on inventory charges related to backwardation. However, the impact of these items, in conjunction with a few non-recurring items, resulted in consolidated adjusted EBITDA totaling $1.7 million for the quarter, which is below expectations. Chris Carlson, our Chief Financial Officer, will address financial results in greater detail momentarily. All things considered, we are glad to be out of our previous hedge positions, and we look forward to showcasing the true value of our Mobile asset moving forward. As for the remainder of the results, we're very pleased with our operating performance. During the quarter, we have continued to transition operations, continued steady progress on our RD project, and made significant improvements to the assets while doing so safely and reliably. Our team continued to execute safely on all fronts, demonstrating operational agility and flexibility in constantly changing market conditions, of which I'm incredibly proud of their performance. We each continue to work extremely hard to effectively manage and, more importantly, adapt and learn from each of the individual challenges and organizational gaps we encountered along the transformational journey. Operationally, we reported throughput volumes in line with our prior expectations, achieving better than forecasted operating expense per barrel results. Our product yield profile and resulting capture rate was also on target, generating attractive refining profitability per barrel on an adjusted basis. Beyond prioritizing safe and reliable operations, we focused on optimizing our refining assets, expanding our core capabilities, and increasing our knowledge and expertise. We did this in three ways. First, we prioritized the maintenance and optimization of our Mobile facility to best position Vertex for the fourth quarter ahead of anticipated robust market fundamentals concurrent with the roll off of our previous hedge positions. Second, we grew and developed our employee base focused on key areas such as accounting, marketing, communications, and risk management. Third, we pursued and began engagements with industry leading consulting groups to help us develop strategic business processes and expand our expertise on an accelerated timeline. Although we have used this quarter to cover a lot of ground and build momentum, each of these initiatives reflect our drive towards continuous improvement, serves to help us maintain a clear view of the road to a successful future. With that, I'd like to hand the call over to James Rhame, our Chief Operating Officer, who will provide a detailed update on our operations during the quarter, including an update on the status of our renewable diesel conversion project at the Mobile facility. James? Thank you, Ben. Good morning. I'll begin with a brief report on our health, safety, and environmental performance. During the third quarter, we had zero OSHA recordables at the Mobile site and four OSHA recordables in the legacy business, all minor in nature. Zero environmental recordables across our legacy business and two environmental recordables and one Tier 1 Process Safety Event at our Mobile site. These events have been fully investigated and action has been taken to prevent recurrence. Moving on to operational performance. Beginning with our legacy business, our Columbus Refinery saw its largest spread on net backs for our base oils ever during the third quarter of 2022. The site incurred some downtime for equipment replacement and does have a planned turnaround scheduled for the fourth quarter of this year. In Louisiana, our Marrero operations also saw improvement on net back spreads in the third quarter, achieving record high run rates at the refinery. Marrero does not have a planned downtime in the fourth quarter. Turning now to our Mobile operations. Third quarter throughput volumes at Mobile Refinery averaged approximately 68,000 barrels per day or 91% of operating capacity, in line with our updated guidance of 68,000-69,000 barrels per day. We continued processing a crude diet consisting of WTI, LLS, and local sweet crudes. Total production of finished high-value light products such as gasoline, diesel, and jet fuel represented approximately 69% of total production versus 67% in the second quarter of 2022, reflecting the type of improved yield efficiency which we expect to continue in the fourth quarter following completion of the recent turnaround work. Our fuel-only gross profit per barrel for the quarter was $18.18, driving a capture rate of 52% of the benchmark Gulf Coast 2-1-1 crack spread, which came in at $34.82, in line with our guidance of 50%-54% capture rate. On a realized basis, including the impact of hedging and one-time adjustments, gross profit was $7.73 per barrel. During the quarter, we successfully completed a catalyst change on our distillate hydrotreater and No. 1 reformer, and were able to clean the No. 1 crude unit. We are pleased to have completed these operations on time and on budget, and have since seen the yield benefits of changing the catalyst on both units. Total throughput volumes were restored to full operational capacity as of early October and continue to remain at or above these levels currently. The combined impact of performing the recent maintenance operation at Mobile benefited overall facility performance, maximizing throughput capacity, and enhancing yields ahead of the anticipated historically robust heating oil demand season. We remain confident in our recent decisions to extend the schedule associated with the RD conversion and address necessary maintenance operations as it positioned the company extremely well to enter the fourth quarter. As expected, refining margins quarter to date have been some of the highest in the industry has ever witnessed, and with the benchmark 2-1-1 Gulf Coast crack spread averaging $43.90 during the month of October. Now turning to our renewable diesel conversion project. As previously disclosed in September, we extended our project timeline for the renewable diesel conversion project by approximately 3 months. The decision not only reduces the total planned downtime of the unit during the conversion, it also significantly reduced the risk of any further unanticipated operational delays caused by supply chain disruptions. I am pleased to report that progress on the development and construction activities are advancing as planned with the conversion project tracking on time and on budget for targeted mechanical completion during the first quarter of 2023 and initial production anticipated in the second quarter of 2023 at a budgeted total CapEx of $90 million-$100 million. The majority of the engineering and procurement activities are now complete and significant milestones in the actual construction progress have been achieved to date. Recent procurement delays on critical bulk items have been resolved, with 100% of pipe and valve fittings having recently arrived at the fabrication shop. Pipe spools have been delivered on site as of the first week of November in line with scheduled delivery, with all spools currently projected to be on site prior to the end of the year. Some of our prior long lead equipment delay concerns have been abated, with final delivery of all long lead engineered equipment expected on or around FEED out in January. To date, the project has safely completed a combined 55,000 work hours. We're extremely proud of the progress made to date by the team, who continue to prioritize the safety of site operations. With that, I would now like to hand the call over to Chris Carlson, Chief Financial Officer, who will review our financial results for the quarter as well as provide our outlook for the fourth quarter of this year. Thank you, James, and welcome to those joining us on the call today. For the three months ended September 30, 2022, Vertex reported net income attributable to common shareholders of $22.2 million, or $0.28 per share on a fully diluted basis versus net income attributable to common shareholders of $7.9 million or $0.12 per share on a fully diluted basis in the third quarter of 2021. We reported adjusted EBITDA of $1.7 million in the third quarter of 2022 versus $1.5 million in the prior year period. On a standalone basis, the Mobile Refinery generated a $500,000 loss in adjusted EBITDA, while our legacy operations at Heartland and Marrero contributed a combined $2.2 million in adjusted EBITDA. Third quarter results benefited from a continuation of strong operational reliability, elevated refined product margins, and robust demand for conventional fuels. Offset by the notable one-time items recorded during the quarter. The third quarter net income includes a previously noted unrealized commodity derivative gain, which amounted to $47.7 million during the quarter, and a realized derivative loss of $38.7 million. Additional factors impacting reported third quarter financial results include a loss on an inventory intermediation agreement related to continued backwardation in the crude and products markets in the amount of $17.9 million. A gain on the change in derivative liability in the amount of $12.3 million related to the warrants associated with our outstanding convertible bonds, and $2.9 million of expenses related to the Shell acquisition. Due to the number of significant moving parts embedded in our financial results this quarter, I would like to briefly touch upon each of these items to provide a better understanding of how they arise and what can likely be expected in quarters to come. First, the impact of the Q2 and Q3 commodity derivative hedging activities, while quite significant over the prior two quarters, will not impact our results in the fourth quarter or beyond, as all contracts have expired as of September 30, 2022. These hedges were put in place with the best intentions of ensuring our ability to continue to service the significantly increased debt load taken on to fund the Mobile acquisition and protect the cash set aside for the RD conversion project. However, an unusually large run in refining margins turned these contracts against us over the past two quarters. The loss on our inventory intermediation agreement of $17.9 million is related to the continued backwardation in the crude and products market, similar to what we experienced in the second quarter 2022, where the impact was $23.1 million, a 22% reduction quarter-over-quarter. We continue to keep a close eye on the shape of the futures curve and are currently evaluating possible risk mitigation strategies to limit our exposure to such losses going forward. Finally, we recorded a $12.3 million gain on changes in derivative liability, which is a non-cash item. This benefit relates to the change in recorded value of warrants outstanding, which were issued in conjunction with our convertible note offering used to finance the purchase of the Mobile facility. Due to the decline in our stock price following the announcement of second quarter 2022 results, a sizable change in the value of these warrants was recorded, which is what is reflected by this change in value. As long as these warrants are outstanding, this will impact us quarter to quarter as a non-cash item. As of September 30, 2022, the company had total liquidity, including restricted cash of $122.3 million versus $98 million at the end of the prior quarter. Vertex had total net debt outstanding of $364 million at the end of the third quarter of 2022, including lease finance obligations of $45.4 million, implying a net debt to trailing twelve month adjusted EBITDA ratio of 2.5x as of September 30, 2022. During the fourth quarter, we intend to operate Mobile at between 73,000 and 75,000 barrels per day, positioning us to capitalize on continued strength in the market. OpEx per barrel is expected to be $3.50-$3.75 per barrel for the quarter, and our capture rate on the benchmark Gulf Coast 2-1-1 crack spread is forecast to be approximately 50%-54%. Total capital expenditures for the fourth quarter are expected to be between $35 million and $40 million. I'd like to now turn the call back to Ben to provide some final comments before we open it up for Q&A. Thank you, Chris. As we look towards the end of the year and into 2023, refining margins are anticipated to remain at elevated levels. Domestic fuel demand remains strong. The global refining complex continues to operate at a reduced capacity, and domestic gasoline and diesel inventories remain well below average. Following the work performed at the site and the progress that the team has made during the third quarter, we're looking forward to showcasing these improved efficiencies and highlighting the performance of the business as we close the fourth quarter out going into 2023. With that, we will open the line for questions. Operator? That's it. We will now begin the question and answer session. To ask a question, you may press star then one on your telephone keypad. If you are using a speakerphone, please pick up your headset before pressing the keys. To withdraw your question, please press star then two. At this time, we will pause momentarily to assemble our roster. The first question comes from Eric Stine from Craig-Hallum. Please go ahead. Good morning, everyone. Hey, good morning, Eric. Hey, obviously, given the hedge, given everything going on, a lot of noise in the number for the third quarter. Before moving on from that, just to be clear, I mean, all these adjustments, the inventory loss and backwardation, that was adjusted out of EBITDA. I do wanna confirm that because, I mean, at least the looks of it right now, that is something backwardation that you know is going to be the reality here for you know at least the foreseeable future. Yes, Eric, it is, and it was backed out of adjusted EBITDA. Okay. All right, good. Then, I mean, so the hedge being gone for the fourth quarter, I mean, it sounds like from your commentary trying to get, you know, a lot of the noise out of the results, and although you did it, you know, back when you took on Mobile with good intentions, I mean, fair to say that unless things change dramatically in the market, you likely will not be putting on a hedge, at least for the foreseeable future. That's correct. Okay. Maybe just an update on the UMO process. I know that, you know, that's certainly something that you've been operating it as if, you know, you are going to own that going forward. But I also know there's a lot of interest in the market. You know, it looked like the results were kind of below what the run rate has been over the last couple of quarters. But maybe just some discussion on that. I'm curious what your thoughts are going forward. Yeah. Morning, Eric. We still have the work in progress as far as, you know, tendering interest in certain assets. We've made enough headway to, and you'll see this in queue, to pull out the Gulf Coast part of that work. You know, we see the synergies and the integration with those assets into what we're doing in Mobile. I really hope we would have everything, you know, at a speaking level today. I think we're pretty close to resolving, you know, where things stand on the balance of the business. That's kind of the state of that process. You know, the legacy business is a very small portion of the company today. I know the numbers aren't gonna, you know, come through in detail like we presented them in the past. The legacy business has certainly done well. It actually had a really good quarter. It's just, you know, the detail that we're providing now under the new reporting doesn't provide the, you know, the granular view of that because there's so much more to talk about related to Mobile and, you know, where we're heading, you know, with the business. Okay. I appreciate it. I will take the rest offline. Thank you. Thank you. Bye. The next question comes from Amit Dayal from H.C. Wainwright. Please go ahead. Thank you. Good morning, guys. Just to begin, Ben, could you clarify you know, what the hedging related number is that won't show up in fourth quarter? I know there are some numbers in that paragraph in the press release, but if you could just clarify for everyone, you know, what that amount is that impacted 3Q, but won't show up in 4Q. The cash amount. Yeah. Yeah, that's right. This is Chris. In our deck, there's a schedule that breaks out the adjusted EBITDA, and in that is the adjustment of the hedge that is no longer on. It's right at $46.9 million. That again, as of 9/30, there's nothing outstanding at this point. Okay. Thank you for that. You know, was throughput a little lower in 3Q? You know, I recall maybe you said it was gonna be around 72,000-74,000 barrels. Maybe I got it wrong, but just wanted to clarify that. Yeah. This is James Rhame. Thank you. We came out in September and said we moved our projection down. We had an issue during the quarter with third-party docks and our ability to access crude, and that affected us about 3,500 barrels a day on average across the quarter. That was the majority of the miss from 68-72. The rest was us doing some of the work we did. Even though we returned on time, we didn't get crude all the way back up, but we reprocessed every bit of that. That's what that difference. Understood. We did an update on that in September. Okay. Okay, I got it. Thank you. I mean, are those issues resolved? I mean, do you expect any of those issues to resurface in the fourth quarter? No. What we did was we have contracted another vessel that allow us the ability to move crude in by water without delays. That's not to say there's not risk, but we continue to knock those risks down and work with our crude suppliers to make sure we have enough crude to run. Thank you. Just one last one from me. With respect to the RD ramp, how are you seeing RD ramping in 2023? I know you're starting initial production in Q2. From there, you know, from a modeling perspective, you know, how should we be thinking about, you know, you know, setting up projections in terms of the ramp? Our plan is we'll go through commissioning at the end of the first quarter into the second quarter. We will ramp up to approximately 8,000 barrels a day of renewable diesel. We will enter into the first quarter of 2024, finish the phase two enough to ramp to the next level, which is projected to be 14,000 barrels a day. Okay. Thank you. Thank you. That's all I have. I appreciate it. Very good. Thank you. The next question comes from Noah Kaye from Oppenheimer. Please go ahead. Thanks so much. You know, just to reflect what I've heard so far, it sounds like, you know, hedging rolls off, and we're gonna have a pretty clean 4Q. Normalized production rates, you know, no impact from hedging, you know, somewhere at this point in terms of $15-$20 per barrel, you know, if you're doing 50-54% capture of what's a very elevated refining margins. It seems like a very healthy setup so far. You know, if we kind of look at cash generation off of that, I think that's really where I wanna take the questions because you generated an awful lot of cash this quarter. Next quarter, as you ramp up, how do we think about puts and takes in terms of, you know, cash generation, any build and working capital needs, impacts of continued backwardation? What should we be thinking about in terms of cash generation? Yeah, I mean, it's a good point. We definitely anticipate a significant generation of cash from a backwardation perspective. We're still seeing backwardation in the futures market, so I don't expect much, you know, change from what we reported. You know, as far as uses of cash looking forward, you know, we're gonna continue to focus on self-funding the RD project, continue on focusing improving the balance sheet, and then looking at Mobile refinery project that will produce a higher return long term. I guess third, pay down debt. Are we gonna see some of that debt pay down in the fourth quarter? I don't know if it'll be Q4, but we'll definitely be looking at Q4, Q1. Okay. Great. And then just in terms of the product slate, yeah, I think we're going into a pretty unprecedented time in terms of, you know, heating oil and diesel demand. It seems like a good setup. Anything we should be thinking about in terms of, you know, kind of the skew or the mix of the product slates? 'Cause I mean, the refinery is built to, you know, produce more distillates on balance, right? Yeah. Noah, this has been, you're correct. Really a lot of work has been put into the yields and adjusting the refinery to maximize our margins. Our distillate yields, you know, which includes jet fuel, is almost half of our output today, which is pushing, you know, where the refinery has been in the past. They've done an excellent job to position us well related to those yields. Our products, in general, including gasoline, you know, is almost, you know, three-fourths of our production. I think, you know, yield-wise, as you've seen, we had a 2% improvement quarter-over-quarter. As James indicated, coming out of the turnaround and doing the work around the catalyst and our reformers and our distillate hydrotreater, you know, we're seeing more improvements and so we're, you know, we're pretty set. We're in a good position. Great. Maybe just the last one for me on the renewable diesel side. Can you talk about the status of feedstock contracting? How much supply do you have line of sight to? You know, can you comment on sort of the diversity of your supplier base, you know, and basically any considerations we should be thinking about as you look to start ramping up the facility, in 2Q? Yeah. Thank you. This is James. I'll answer that. Bart Rice is the one leading our acquisition of feedstocks. What we do see is we're initially gonna start up on soybean oil, but we're looking at alternatives to that shortly after startup. We are working with a tremendous number of suppliers. As you can see, none of them can supply all of our needs. But we're working with those not just from a different supply point, but a different mode to bring in to make sure that we're maximizing the feed in front of the plant. How do we get it in the plant is where we've been working also. That's, we're close to finalizing those and hope to finalize that, of course, in the fourth quarter and get everything lined up so we're prepared for startup. All right. Looking forward to it. Thanks for taking the questions. You bet. Thank you, Noah. The next question comes from Brian Butler from Stifel. Please go ahead. Thank you guys for taking my question. Can you hear me? Yes. Yes. Gotcha. Great. So I guess you talked about the crack spread, I think in October, somewhere around $44. Is that where we're at in early November here? And how should we think about that for the rest? I mean, not that you can forecast the crack spread, but is there anything major that suggests that that's gonna be going up or down? Yeah. We're projecting October at $43.90. We're continuing to see strong distillate margins, and that's what's driving that a good bit. We do not see much impact in the quarter. Again, me looking in the future, I'm always wrong. As you can see from the industry inventories, they're extremely low going in the heating oil season. That's really what's the basis of risk. We've got our projections, of course, from IHS and other professionals that are out there. Okay, that's helpful. On the supply chain, in kind of the, you know, building out the hydrocracker, is there any more risk of disruptions at Mobile for the upgrade? Or at this point, you know, is everything in place and supply chain issues are something of the past? Yeah. We believe they're something of the past. We're doing twice a week, we have a SWAT team watching parts coming in. We have three items that are long lead items that will show up right about FEED out time or pretty close to it. Everything else will be on-site prior to us taking FEED out of the unit, which is how I want it to be done and what the industry expects to be done. We feel very confident where we are. Okay. On the feedstock, the prior question, how does this compare to your original expectations on where you thought feedstock would be for the RD part of this? You know, give some color on that. We're finding more people available to us for feedstocks than we originally projected. The volumes aren't perfect all the way through, but it looks like that's a problem that's solvable. We do have many people wanting to work with us. As I stated before, Bart Rice has done an excellent job reaching out and developing that. Maybe last one just on some of the accounting. On the backwardation, you know, that sounds like that's gonna be again in the fourth quarter. Directionally, is that continuing to go down? That is a cash item, right? Yes. Due to the intermediation agreement structure, it is a cash item that runs through our P&L. Yes, to your point, we're still seeing backwardation as we look forward. At the same level as kinda 3Q, is that the right way to think about it? Or is that gradually improving and it's gonna be something less than that $18 million? As of right now, the values are right in line with 3Q. Okay, great. Thank you very much for taking my questions. Thank you, Brian. This concludes our question and answer session. I would like to turn the conference back over to Ben Cowart for any closing remarks. Please go ahead. Thank you, operator. Thank you, everybody, for joining the call. Thank you for the interest in Vertex. We are working hard on this end to really showcase the value from our new acquisition in Mobile as we come through the fourth quarter and on into the first quarter. Things are moving well. Our teams are coming together. We're very pleased, you know, with the progress we've made. We look forward to communicating between now and the close, just as to the, you know, some detail on that progress as we go forward. Thanks for dialing in. The conference has now concluded. Thank you for attending today's presentation. You may now disconnect your lines. Goodbye.