Bruce D. Davis
Thank you. In the course of our remarks and the subsequent Q&A session, we may be making forward-looking statements. For purposes of facilitating a good discussion, I'll refer you to the forward-looking statements, as referenced in this morning's press release, noting that our business is subject to a variety of risks and uncertainties. For a fuller discussion of these and other risks that could cause our results to change, please refer to PVR's Form 10-K most recently filed with the SEC.
William H. Shea
Thanks, Bruce. It goes without saying the second quarter was difficult for PVR. And in fact, it’s in stark contrast to how we view our future prospects, especially in the midstream business going forward. As a result of the discussions that we've had in the board in the last day and a half related especially to our future expectations, the board approved a $0.01 per unit increase on the distribution to $0.53 per unit or $2.12 a unit annualized. This represents an 8.2% increase versus the second quarter of 2011.Our strategy to focus on the midstream business, particularly in the Marcellus, has and will continue to generate the returns in cash flow that we expect at PVR. I do, of course, have to comment on the quarter. As you can see from the press release, we're now managing and reporting our business along 3 business segments: Coal, Midstream Midcontinent, Midstream Eastern. This should make it a lot easier, I hope, for everyone to follow the performance of PVR. In the Coal segment, we have adjusted EBITDA of $26.7 million versus $42.3 million last year. Volume was down 2.3 million tons. And the royalty pricing per ton was about $3.76 per ton versus $4.40 per ton last year. In the current environment, volume is more important and is a more important issue versus pricing. Keith can expand on the Coal segment as you desire during the Q&A segment. But it's clear that we have experienced reduced ships, extended vacations, idling of facilities and operator contract terminations.
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