The 10-Q will be released tomorrow morning and subsequent reports will be filed Securities and Exchange Commission. We also encourage you to look at our press releases. Legacy Reserves LP is an independent oil and natural gas limited partnership headquartered in Midland, Texas focused on the acquisition and development of long-lived oil and natural gas properties primarily located in the Permian Basin, Mid-Continent, Rocky Mountain regions of United States.I’ll now turn the conference over to Cary Brown, Legacy’s Chairman and Chief Executive Officer. Cary Brown Thanks, Steve and thanks to our friends for joining us today. Legacy persuaded and produced strong results during the first quarter of 2011 despite weather related production issues, increasing cost environment. In the fourth quarter of 2010 grew production by 10%, our adjusted EBITDA by 6%, and our distributable cash grow by 10% during the first quarter. In addition, we announced 81 million of acquisitions including a pending 67 million acquisition of Permian properties is scheduled to close today. We also announced an increase in our 2011 development capital budget to 52 million, which reflects a favorable economic associated with our development projects. We continued to be encouraged by the results for drilling; particularly those associated with our Wolfberry projects, which are exceeding our expectation. Based on our strong drilling results and recent acquisitions, we increased our quarterly distribution of $0.53 per unit, which will be paid on May 13, 2011. Finally, after deducting all of our 11.9 million of capital expenditures, we generated approximately 23.6 million of cash flow or $0.54 a unit of distributable cash flow, covering our $0.53 distribution, 1.0 three times. I’ll remind everyone that we don’t differentiate between maintenance CapEx and growth CapEx. Clearly, we are seeing some element of growth at this level of CapEx, so we are encouraged by that.
On a cost front, we had a tough cost quarter, but generally after an acquisition, we have some integration cost, we had the weather-related cost, we had some one time stuff. So we’re not really sure whether this is just related to run up in overall oil prices, and how much is sea level rise and how much is one time integration cost. We will be watching that and keep give a little bit handle on that in the quarter to as we see how these costs are going to settle out. We had a pretty good increase in activity in the Permian with the drilling. So we are seeing some cost inflation based on elevated Permian and some of that’s going to be integration and weather-related issues.So we’ll get a better hang on that in the quarters to come. But overall very pleased with the way the Group managed the weather and the way we’re moving production up with our development projects. So, with that I’ll turn it over to Steve to go into more details and to the numbers. Steven Pruett Thank you, Cary. Cary mentioned $0.50, $0.30 distribution that will be paid per unit to unit holders May 2nd, payable on May 13th that is an increase of $0.01 over the distribution we held flat for 10 quarters at $0.52 two quarters ago. We had $0.005 increase in February and another $0.005 in 1st of May, distribution attributable to the first quarter. And while $0.005 may not seem like a lot of the compounded benefit of distribution increases, they’re steady over time, will build up over time. So very pleased to offer another increased distributions. Following into the headlines, I will talk a moment about our credit facility and liquidity. As we discussed in the previous press release, we entered into an amended and restated $1 billion five year credit agreement towards an expansion of our term from three years on the prior round to five years currently. We increased our borrowing base from 410 million to 500 million with the anticipated closing – we have closed our $67 million acquisition. We’ll have a press release out on that later. Read the rest of this transcript for free on seekingalpha.com