Today’s presentation will also include references to certain non-GAAP financial measures, such as EBIT and EBITDA. The non-GAAP reconciliation section of our website reconciles certain non-GAAP financial measures to the most directly comparable GAAP financial measures and provides a table of selected items that impact comparability with the partnership’s reported financial information. References to adjusted financial metrics include the effect of these and selected items. Also, for PAA all references to net income are references to net income attributable to Plains.Today’s call will be chaired by Greg L. Armstrong, Chairman and CEO of PAA and PNG. Also participating in the call are Harry Pefanis, COO of PAA, Dean Liollio, President of PNG, and Al Swanson, Executive Vice President and CFO of PAA and PNG. In addition to these gentlemen and myself, we’ll have several other members of our management team present and available for the question-and-answer session. With that, I’ll turn the call over to Greg. Greg L. Armstrong Thanks, Roy. Good morning and welcome to everyone. Continuing a multi-quarter trend, PAA delivered strong second quarter results underpinned by solid fundamental performance and enhanced by favorable market conditions. Yesterday after market close, Plains All American announced second quarter adjusted EBITDA of $522 million. These results exceeded the midpoint of our guidance range by $62 million, or 13%, and were $42 million above the high end of our guidance range. These results are also consistent with the updated estimate of expected second quarter performance that we provided in a press release issued on May 30 th, despite the impact of an $11 million charge associated with Rangeland Pipeline release we experienced later in June. Current year results compare very favorably to last year’s second quarter as adjusted EBITDA, adjusted net income and adjusted net income per diluted unit for the second quarter of 2012 increased 43%, 53%, and 46% respectively.
Highlights of PAA’s second quarter performance are reflected on Slide 3, which also illustrates the PAA’s distributable cash flow in second quarter of 2012 was 165%. PAA’s second quarter results were driven by solid performance in all three segments with the Supply & Logistics segment being the largest contributor to overall performance. The second quarter results mark the 42 nd consecutive quarter that PAA has delivered results in line with or above guidance.In July, PAA declared an 8.4% year-over-year increase in our annualized run rate distribution to $4.26 per common unit. As shown on Slide 4, PAA increased its distribution each of the last 12 quarters and in 31 of the last 33 quarters. Over the last 11.5 years, PAA has grown its distribution at a compound annual growth rate of approximately 7.5%. Yesterday evening we furnished financial and operating guidance for the third quarter and the balance of the year increasing the mid-point of our full-year 2012 adjusted EBITDA guidance by $80 million. This represents an approximate 4% increase over the full-year guidance provided on May 7 th, 2012, and a 14% increase over the full-year guidance we provided at the beginning of the year. PAA has executed well in this environment and we are on track to meet or exceed our 2012 goals. Additionally, yesterday we announced several new capital projects or expansions of existing projects that we expect to implement over the next 12 to 24 months and are expected to yield attractive financial returns. During the remainder of today’s call, we will discuss our segment performance relative to guidance, our expansion capital program, our acquisition and integration activities, and our financial position. We will also address the drivers and major assumptions supporting our financial and operating guidance for the third quarter of 2012. We will address similar information for PNG, and at the end of the call, I’ll provide a recap as well as some comments regarding our outlook for the future. Read the rest of this transcript for free on seekingalpha.com