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With that, I will turn the call over to Greg.Greg Goff Thanks Louie, good morning everyone and thanks for joining us on the call today. As everyone knows I joined Tesoro about three months ago. The first three months have been challenging and exciting and we have embarked on a very focused and ambitious agenda to drive fundamental improvement in the business. Later in the call today, I will talk a little bit about some of those key initiatives. And then during the fourth quarter of this year we will also provide a very compelling plan to deliver shareholder value during our analyst meeting. Today, we are pleased to report second quarter earnings of $0.47 per share or $0.30 per diluted share for one time benefit of $0.17. These earnings were achieved with Anacortes refinery idled and then Mandan refinery down for a planned turnaround, as industry spreads improved significantly, during the quarter and our capture rate also improved. The Tesoro index in the quarter was nearly double what we saw in the first quarter, and it was up about 15% in the second quarter of last year. We saw positive signs of economic recovery during the quarter specifically on the West Coast port traffic and rail activity, which we believe supported higher distillate margin. Gasoline spreads meanwhile continues to suffer from weak demand as unemployment in California remains high. Capture rate throughout our system were up significantly in the quarter, driven by 3 or 4 key things. One strong commercial and wholesale margins, two improved crude differentials, three an ethanol discount to Gasoline, of about $0.55 per gallon, which improved the margin on ethanol blended gasoline. And finally as a result of the shutdown of the Anacortes refinery. We were still able to profitably meet our customer requirements in the Pacific Northwest.
Retail marketing margins were also strong during the quarter as spot price fell more rapidly than street prices. And of course our throughput rates during the quarter, were down significantly from last year second quarter as we tided the Anacortes refinery following the fire on the naphtha hydrotreater.Additionally our Mandan refinery successfully completed its propane turnaround during the quarter it’s probably important to note about the Mandan refinery it’s on about a 6.5 year plus turn around cycle. Anacortes remained ideal today, but we have begun work to repair the damaged units. That work is progressing well and on schedule, and we expect the plant should be operational as early as September. Meanwhile, we continue to work closely with the investigators regarding the incident. We have successfully moved unfinished product produced at Anacortes during April to our other refineries for further processing. Additionally, we were able to devour water borne crew cargos heading to Anacortes to our California refinery and we continue to successfully supply our customers with products either sourced from out [control] refineries for our third party purchases. Regarding Anacortes, it is also important to note that we expect the financial impact of this incident to be limited to our insurance deductibles. And finally I can’t stress enough how thankful we are to our employees at the Anacortes facility, they have worked admirably to get us through this terrible tragedy. Despite the improvement in margins and earnings during the quarter, we remain focused on our core objectives of driving operations excellence in capital discipline. And while we have seen some signs of economic improvement, high unemployment in California and excess refining capacity in US still way on margins and generally we continue to plan for our margin environment, similar to what we saw in 2009. As such we remained focused on operating our assets safely and reliably optimizing the system and allowing local demand to be the primary driver of production and yield. We remain focused on maximizing cash flows and delivering the expected results from our capital and non-capital initiative. Read the rest of this transcript for free on seekingalpha.com