Actual results may vary significantly from those anticipated due to many factors and risks, some of which may be unknown. Please see Newfield's 2011 Annual Report on Form 10-K and subsequent quarterly reports on Form 10-Q for discussion of factors that may cause actual results to vary.Forward-looking statements made during this call speak only as of today's date, and unless legally required, Newfield undertakes no obligation to publicly update or revise any forward-looking statements. In addition, reconciliations of non-GAAP financial measures to GAAP financial measures, together with Newfield's earning release and any other applicable disclosures, are available on the Investor Relations page of Newfield's website at www.newfield.com. At this time, for opening remarks and introductions, I would like to turn the call over to the Chairman, President and Chief Executive Officer Mr. Lee Boothby. Please go ahead, sir. Lee K. Boothby Thank you, operator. Good morning, everyone and thanks for dialing in today. Happy to report that the sun is shining and the sky is blue here in Houston this morning. And I know it's an hour earlier than we usually start, so just enjoy your coffee and we'll run through some of our mid-year highlights as quickly as we can. I'm joined this morning in Houston by Terry Rathert, our CFO; Gary Packer, our Chief Operating Officer; and Steve Campbell, our Vice President Investor Relations. As you saw in last week's operations release, we are creating value through our oil investments in 2012. We improved upon our executions, we're meeting and beating production estimates, being solid results in all of our assessment areas and demonstrated what our asset portfolio has a deep inventory of solid, high return place to invest in, both now and well into the future. We believe that our diversified portfolio model provides us with a competitive advantage and a slight packet we posted last week has an interesting graph I would encourage you to review, shows the very deliberate steps we've taken over time to capture oil opportunities, accelerate their investment and carefully hedge both natural gas and oil to ensure the balance sheet strength, to allow us the ability to execute our drilling plans. We didn't get here today by halving sense [ph] and we appreciate the support of our investor base over that time.
What I see today is a very positive inflection point. Our transition to an oil company is real and more than half of our production will now be derived from high-value oil and liquids production. This is great news and we're excited about what this means for our future.As you know, Newfield has certainly changed and evolved over time. We've transitioned from a Gulf of Mexico start up nearly 25 years ago to a company today with core, onshore North American resource plays, lucrative assets in Southeast Asia, and a deep inventory in both oil and natural gas drilling opportunities. We've more than doubled our oil production over the last 4 years, we've transitioned from a company driving growth from natural gas to a company that is driving growth from oil, and we've done it largely organically. We have thousands of low-risk oil development locations that are ready to drill today in our core development areas and a recent assessment results show very exciting early returns in the Cana Woodford, Eagle Ford Shale and in 2 in new plays in the Central Basin region of the Uinta Basin. More on our assessments later in the call. Our Chief Operating Officer, Gary Packer, will give you a good project level overview. I'm excited about our results here today and I'm confident we will ultimately achieve our main goal, readying a development inventory of opportunities that will again propel us to double-digit production growth, driven by oil and financed through our internal resources. I can assure you that our management team is united in delivering strong results for our shareholders and focusing on maximizing our primary product, cash. I'll turn it over to our CFO, Terry Rathert, to quickly cover our financial results from the quarter. Terry? Terry W. Rathert Thanks Lee. Our net income in the second quarter, excluding FAS 133 income, was $80 million or $0.61 per share. Revenues for the second quarter were $627 million. Value creation or transition oil is evident. 86% of our revenues in the quarter came from our oil and liquids production. Cash flow for the period was $330 million. Our oil and liquids liftings in the second quarter of 2012 were up 40% over the comparable period in 2011 to 6.1 million barrels, or on average, more than 67,000 barrels of oil per day. Our NGL volumes in the quarter were about 530,000 barrels, only 4% of our total production had its realized price of $28 per barrel. Our oil and liquids production comprised 49% of our total production in the second quarter and we expect that more than half of our production will come from liquids in the back half of the year. I look forward to soon reporting our results in BOEs as compared to Bcfs. Read the rest of this transcript for free on seekingalpha.com