I will remind you that any statements that might include our expectations or predictions should be considered forward-looking statements within the meaning of the Federal Securities Laws. Forward-looking statements are subject to a number of assumptions and uncertainties that may cause our actual results to differ materially from those expressed in these statements. And we undertake no obligation to update or revise any forward-looking statements. We will encourage you to review the cautionary statements and other disclosures made in our SEC filings, specifically those under the heading Risk Factors.Before I turn the call over to Barry Davis, I want to mention an upcoming Crosstex event that I’m sure you’ll be interested in attending. On November the 28th, we are hosting a West Texas Permian facilities tour for analysts and investors in Midland, Texas. We will be visiting our installations in the Permian Basin, our Deadwood processing plant and our Miski rail terminal. Our management team will be available for discussion and questions during the event. Apache is scheduled to give an operations presentation as well. We distributed invitations about the tour last week and we urge you to respond quickly as space is limited. If you did not receive an invitation or want more information, please let me now. I will now turn the call over to Barry. Barry Davis Thank you, Jill. Good morning, everyone, and thank you for joining us on the call today. I will begin by discussing the commodity price environment and its effect on our second quarter 2012 financial results and guidance. Next, I will cover how well prepared we are to face this environment, and finally, I’ll discuss our positive outlook for our business. Mike will then go into more detail about our quarterly results and guidance. And I will wrap up with an update on the status of our growth projects, including our recent acquisition of Clearfield Energy and review our operational results.
First, let’s look at results for the second quarter. The dramatic downturn in the commodity environment has impacted our current and near term results. Adjusted EBITDA for the second quarter was $48.7 million compared with $55.4 million for the second quarter of 2011. Distributable cash flow was $23.4 million versus $32.9 million for the year-ago quarter. If commodity prices remain at current levels, we expect to end the year at the lower end of guidance. Adjusted for six months of Ohio River Valley operations or approximately $210 million to $215 million of EBITDA. The price impacts are in line with the sensitivity that we provided earlier this year, so there was really no surprise here.In this scenario, our ability to raise distribution and dividends for the rest of the year will be challenged. Nevertheless, our annual growth rate which still represent an approximate 7% annual increase in distribution and an approximate 23% annual increase in dividends over 2011. Looking ahead, 2013 is an important year for us when commercial operations from our growth projects such as Cajun-Sibon and Ohio River Valley will start to ramp up. We believe that after the commencement of Cajun-Sibon’s commercial operations in 2013, we could see a return to distribution growth rates of 8% to 10% and dividend growth rate of 20% to 25%. The majority of the capital for these ventures will be spent during 2012. Our great work has prepared us to face this commodity environment. We’ve made fee-based growth a top priority, and as a result, over 80% of our gross margins in the second quarter is not commodity price related. We have a strong healthy organization with the right people in place. We have diversified our business by expanding into new liquids rich areas through our joint-venture with Apache in the Permian Basin, our equity ownership in Howard Energy Partners in the Eagle Ford and our Riverside crude oil and condensate logistics business in South Louisiana. These ventures are ramping up in their contributions and have broadened our business and expanded our capabilities, enabling us to create more value for our investors despite the current commodity price environment. Read the rest of this transcript for free on seekingalpha.com