Rob will now review ONEOK’s financial highlights and then Pierce will review ONEOK’s operating performance. Rob?
Thanks John, and good morning everyone. ONEOK’s second quarter net income was $61 million compared with $55.1 million for the same period last year, driven primarily by the solid performance of ONEOK Partners offset partially by continued challenges in the Energy Services segment. We completed a 2:1 split of the company’s common stock on June 1, making our shares more accessible to a broader base of potential investors. Also in June, ONEOK executed $150 million accelerated share repurchase agreement funded by cash-on-hand and short-term borrowings, part of a Board approved $750 million share repurchase program through 2013, of which $300 million remain. Based on the repurchase of shares, we expect the average amount of diluted shares outstanding for 2012 to be approximately 211 million.
ONEOK’s year-to-date 2012 standalone cash flow report changes in working capital exceeded capital expenditures and dividend payments by $82 million. In July, we declared a dividend of $0.33 per share on a split adjusted basis, an increase of 8% from the previous quarter.
With the partnership’s equity offering and private placement in March 2012, ONEOK as a general partner and significant limited partner owner is now expecting to receive $437 million in distributions from ONEOK Partners this year, a 31% increase over 2011.
We also updated 2012 guidance for ONEOK. Net income is expected to be in the range of $345 million to $375 million compared with its previous range of $360 million to $410 million. The updated guidance reflects lower expected earnings in the Energy Services and Natural Gas Distribution segments, offset partially by higher expected earnings in the ONEOK Partners segment. Pierce will discuss the specific guidance updates in a moment.
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