During this morning’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 will be detailed in the company’s filings 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, a reconciliation of adjusted net income to the most directly comparable GAAP measures are available with the press release we issued this morning.
So with that, I’ll turn the call over to Glenn Darden.
Glenn DardenThank you, David. Good morning. Quicksilver Resources today announced preliminary 2012 second question results. The adjusted net loss for the second quarter, a non-GAAP financial measure, was $21 million or $0.13 per diluted share compared to adjusted net income of $11 million or $0.06 per diluted share in the 2011 period. Including the impact of one-time items, the net loss was $673 million or $3.96 per diluted share. Second quarter 2012 results were impacted by a $992 million non-cash impairment of oil and gas properties due to lower average natural gas and NGL prices compared to the 12 months ended March 31, 2012 and a non-cash gain of $8 million related to the change in hedge ineffectiveness. John Regan, our Chief Financial Officer, will provide the details with his discussion. Quicksilver is aggressively attacking costs and cutting capital expenditures with these low gas prices. In addition, we have amended our credit facility, which gives the company more flexibility to execute our plan. We have pushed out capital commitments in all areas of operations and we will walk through those changes on this call. We’re seeing production improvements in the field in our newer areas and progress with securing outside capital for our projects. Quicksilver has slowed spending in the core dry gas areas of both the Barnett and Horseshoe Canyon areas due to the low gas prices. Even though we realize roughly $6 per Mcf equivalent on the wet gas marketed at Mont Belvieu in our wet area of the Barnett, we have slowed to keep capital inside of cash inflows. We do not have lease expiration issues in either of these areas, so we will accelerate the developments again with better pricing.