A major reason for our success in this low price environment has been strong hedge protection. And I might point out that in fact, we took advantage of the recent upward flip in natural gas prices to layer in yet more hedges.

At the present time, APL's projected margins and cash flow, excluding ethane, are approximately 78% protected for the second half of 2012, and approximately 75% hedged in 2013. ARP is even more heavily protected. For the full period through 2016, present production is approximately 75% hedged and entirely hedged for the second half of 2012 and the entire year 2013.

The impact of our protected polices has been quite favorable. Without financial hedging, ARP would have received at market only $2.03 per Mcf during the second quarter. With hedging, APR actually received $3.49 per Mcf, that's almost 75% above market. As a happy result, despite spot price deterioration, and all the other negative factors impacting our industry, and our national economy, ARP is still able now to reaffirm our earlier projections for the rest of 2012 and into 2013.

For the second half of 2012, we anticipate distributions at ARP of $0.90 to $1.00 and for the full year 2013, we reaffirm our earlier guidance of $2.30 to $2.45 per unit.

Beginning in the present third quarter, distributable cash flow at ARP will rise sharply as the benefits of the Carrizo and Piken acquisitions kick in, as our new Barnett division adds liquids rich new wells to be accretive existing production purchase in the second quarter, and as our new direct investment program make substantial contribution in drilling and other fees that were substantially absent in the second quarter.

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