During today's call, the company will be making forward-looking statements which are subject to risks and uncertainties. Actual results may differ materially from those projected in these forward-looking statements. Additional information concerning risk factors which could cause such differences is detailed in the company's filing with the SEC.
Today's presentation will include information regarding adjusted net income, which is a non-GAAP financial measure. As required by SEC rules, reconciliation of adjusted net income to the most directly comparable GAAP measures are available on our website under the Investor Relations tab.
I will now turn the call over to Glenn Darden to review our financial and operating activities in detail.
Glenn M. DardenThank you, John, and good morning. Quicksilver Resources reported a net loss of $60 million or $0.35 per diluted share for the first quarter of 2012. First quarter results were negatively impacted by a $63 million noncash impairment of oil and gas properties due to lower average natural gas prices compared to December 31, 2011. There were also noncash charges of $37 million related to the restructure of the hedge platform and an unrealized loss on new 10-year hedges. Earnings were improved by a $41 million earn-out payment from Crestwood Midstream Partners LP. Excluding these items, the first quarter 2012 adjusted net loss was $15 million or $0.09 per diluted share compared to adjusted net income of $3 million or $0.02 per diluted share for the 2011 period. John Regan, our Chief Financial Officer, will provide more details on the financials in his discussion. As we projected, due to reduced activity in the Barnett area, company production volumes came in at 377 million cubic feet equivalent per day for the quarter, which is roughly 9% below fourth quarter 2011 volumes. Volumes will build back in the second half of the year, and our forecast is for total annual volumes to be approximately within 5% of 2011 volumes. With the reduction of gas prices, Quicksilver has taken steps to minimize spending in dry gas areas, as well as to target the cost side.
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