In addition, during the call, we'll be discussing certain financial measures, such as Crestwood's EBITDA, adjusted EBITDA and distributable cash flow and adjusted net income, which are non-GAAP measures. A reconciliation of these non-GAAP measures to the most directly comparable GAAP measures is included in the press release that we issued earlier this morning and posted on the Investor Relations section of our website at www.crestwoodlp.com.With that, I'll turn the call over to Bill to review the financial and operating performance of the second quarter. William G. Manias Thanks, Mark. Crestwood reported second quarter 2012 net income of $6 million and adjusted EBITDA of $28.5 million. These amounts compare to net income of $10.2 million and adjusted EBITDA of $29.8 million in the second quarter of last year. Adjusted distributable cash flow totaled $20.6 million, and we declared a $0.50 per unit distribution in the second quarter. And that's a 9% increase over the same period last year. As you know, we've revised our second half guidance slightly lower to 8% year-over-year distribution growth, which implies a $0.01 increase in the third quarter of this year. For the 6 months -- first 6 months of 2012, adjusted EBITDA totaled $56.9 million. That's up 13% over the first 6 months of last year. Second quarter gathering volumes from Crestwood's 100%-owned systems averaged 561 million a day. That's flat versus the prior year and down about 8% from the first quarter. Second quarter 2012 gathering volumes from Crestwood Marcellus, our joint venture with Crestwood Holdings, averaged 257 million a day. Our total gathering volumes from the systems we operated in the second quarter 2012 were 818 million a day, which includes 100% of the related -- volumes related to Crestwood Marcellus. In the third quarter, our total gathering volumes are currently right around 875 million a day.
Processing volumes in 2Q 2012 were 144 million a day, down 10% from the prior year but only 2% down from the first quarter, and currently, we're processing -- processing volumes are around 175 million a day, reflecting the additional volumes on the Cowtown system and the Granite Wash systems.Almost 90% of the second quarter gathering volume decrease occurred on our 2 dry gas systems in the Barnett, with a slight reduction in the Fayetteville Shale. Although we actually connected more wells during the second quarter than we did in Q1 2012 and Q2 2011, many of the new well connections came late in the quarter, caused by producer delays in completing the wells. So this caused lower overall volumes during the quarter due to natural decline, lower volumes from existing wells, which were shut in to frac the new wells on the same pads, and wells, which were voluntarily shut in by producers due to high operating costs. And these are typically older, low volume gas wells that have high water production costs. The new wells we connected late in the second quarter on the Alliance system in the Barnett and early in the third quarter on the Twin Groves system in the Fayetteville Shale should drive higher volumes on those dry gas systems in the third quarter. Major contributors to adjusted EBITDA in the second quarter included $26.2 million from the Barnett, $4 million from the Fayetteville segment, $1.9 million contributed from our 35% ownership in Crestwood Marcellus Midstream and $1.2 million contributed from the Haynesville assets. Equity earnings from Crestwood Marcellus Midstream totaled $0.4 million for the second quarter and Crestwood received a $1.7 million distribution from Crestwood Marcellus during the quarter as well. Read the rest of this transcript for free on seekingalpha.com