Again, just a quick reminder that statements made in this conference call which state the company's or management's intentions, beliefs, expectations or predictions for the future, are forward-looking statements. It's important to note that actual results could differ materially from those discussed in forward-looking statements. Important factors that could cause actual results to differ materially include, but are not limited to, deterioration of global economic conditions; declines in customer spending and in oil and natural gas prices that could adversely affect demand for the company's services and their associated effect on rate, utilization, margins and planned capital expenditures; excess availability of land drilling rigs and pressure pumping equipment, including, as a result of reactivation or construction, adverse industry conditions, adverse credit and equity market conditions; difficulty in integrating acquisitions; shortages of labor, equipment, supplies and material; supplier issues; weather; loss of key customers; liabilities from operations; government regulation and ability to retain management and field personnel.Additional information concerning factors that could cause actual results to differ materially from those in the forward-looking statements is contained from time to time in the company's SEC filings, which may be obtained by contacting the company or the SEC. These filings are also available through the company's website and through the SEC EDGAR system. The company undertakes no obligation to publicly update or revise any forward-looking statements. Statements made in this conference call include non-GAAP financial measures. The required reconciliations to GAAP financial measures are included on our website, www.patenergy.com, and in the company's press release issued prior to this conference call. And now, it's my pleasure to turn the call over to Mark Siegel for some opening remarks. Mark? Mark S. Siegel Thanks, Mike. Good morning, and welcome to Patterson-UTI's conference call for the second quarter of 2012. We are pleased that you are able to join us today. As is customary, I will start by briefly reviewing the financial results for the quarter ended June 30, and then I will turn the call over to Doug Wall, who will share some detailed comments on each segment's operational highlights as well as our outlook. After Doug, Andy Hendricks, who recently joined the company as Chief Operating Officer, will share some of his thoughts, and then I will provide some closing remarks before turning the call over for questions.
Turning now to the second quarter, as set forth in our earnings press release issued this morning, we reported net income of $92.5 million or $0.60 per share for the second quarter ended June 30, 2012, and $190 million or $1.22 for the 6 months ended June 30. EBITDA for the quarter was $279 million.The financial results for the second quarter include a pretax gain of $27 million, or $0.11 per share related to the previously announced sale of our flowback operations and the auction sale of certain excess drilling assets. I'd like to start by saying that in the face of difficult market conditions, both of our core businesses performed well. In the case of drilling, average U.S. rigs operating and average margin per operating day were near our expectations, which was a significant accomplishment as rigs moved from natural gas regions to oil and liquids regions, and as decreasing oil prices caused customers to change plans with increased frequency. In the case of pressure pumping, performance exceeded our expectations. Revenues climbed by 15%, which was actually a lesser decline than we had expected, and EBITDA declined by only 10%, helped by cost controls which we have implemented. These accomplishments in operations were mirrored in 3 noteworthy achievements on the financial side. First, we sold our flowback business for $42.5 million; second, we issued and sold $300 million of 10-year 4.27% notes; and third, we completed share repurchases of more than 3% of our company's outstanding stock. Read the rest of this transcript for free on seekingalpha.com