The Partnership’s businesses continue to benefit from favorable industry dynamics that are driving growth in natural gas supply and in NGL volumes across our diverse asset base. Year-over-year operating margin strengthened in both our Natural Gas Gathering and Processing division and our Logistics and Marketing division.
Turning to third quarter, the Partnership experienced an unusual set of operational issues both ours and third-parties, impacting financial performance. These issues many of which were attributed to a much harder than normal summer in our operations areas have been resulted are not expected to occur to the extent, but to this extent in the future. The Partnerships fundamentals remain strong and we expect an EBITDA in the fourth quarter at least as strong as our previously announced guidance.
We reported third quarter adjusted EBITDA of $107 million, which resulted in distributable cash flow of $65.4 million; distribution coverage was 1.1 times based on our third quarter declared distribution of $58.25 or $2.33 on an annual basis. The partnerships distribution represents an 8% increase compared to the third quarter 2010.
Our Field Gathering and Processing segment increased inlet volumes year-over-year at our San Angelo Operating Unit in North Texas driven by very attractive drilling and production activity.Favorable pricing increased VESCO and Louisiana operating unit inlet volumes and improved GPM at both business units led to a strong year-over-year performance in our Coastal Gathering and Processing segment. The resulting increase in NGL production both from our G&P division and from other gas processes also experienced increased NGLs improved operating activity through our integrated downstream assets and continues to create incremental demand for NGL infrastructure.Read the rest of this transcript for free on seekingalpha.com
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