Now I'll turn the call over to Paul Carrico. Paul?
Paul D. Carrico
Thanks, Martin, and good morning, ladies and gentlemen. We appreciate you joining us this morning. I'll go through the details of the quarter in a few minutes. But before that, I'd like to comment on our recently announced merger with PPG's commodity chemicals business. We were very pleased to announce this transaction. This is an exciting and unique opportunity to create an industry leader, while at the same time providing outstanding options for growth and enhanced shareholder value. The combination achieves one of our key strategic initiatives of increasing Chlorovinyls integration. At the same time, this will take the company to another level as we will have more diversity in our product portfolio.
All this was accomplished without negatively impacting our leverage ratios. The combination is projected to be accretive to both earnings and free cash flow from day 1.As I stated before, I'm convinced that the development of shale gas has dramatically altered the global petrochemicals landscape for many years to come. Based on the favorable oil and natural gas ratio, as well as the abundance of natural gas liquids supply, North American ethylene and chlor-alkali producers have moved to the low end of the global cost curve. Our proposed merger will create the third largest chlor-alkali producer in North America, and the merged company will have about 70% integration to natural gas-fired cogeneration. We feel this position to combine the company is one of the most competitive chlor-alkali producers in the world. So with those comments on our bright future, I'll turn to our reported results. So the first half of the year, we reported $129.8 million of adjusted EBITDA compared to $115.6 million in the first half of 2011. For the second quarter of 2012, adjusted EBITDA was reduced by about $35 million due to our planned outage at our chlor-alkali facility in Plaquemine, and an extended ramp up to full rates. We have no planned chlor-alkali outages the rest of the year and expect to run at near full rates.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV