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Our call is being recorded and is also being broadcast live on our website. An archive of the webcast and presentation will also be available on the site following this call. Please note, we plan to file our 10-Q this afternoon.Slide 2 of the presentation describes our use of forward-looking statements and lists some of the risk factors that may affect actual results. You are reminded that actual results may differ materially from any forward-looking statements. You should refer to our SEC filings for a more complete discussion of the risks involved in our business and the ownership of our Limited Partnership unit. Included in the appendix of today’s presentation are various non-GAAP measures that have been reconciled to the comparable GAAP measure. With that, I will turn the call over to our CEO, Mike Bradley. Michael Bradley Thanks Lyndsay, and good morning, everyone, and thank you for joining our call. I’ll start, we had a good quarter, during which our adjusted EBITDA increased 12%, over the second quarter of last year as volumes continued to increase in South and West Texas and in North Louisiana. Cotton Valley drilling has picked up around our Dubach facility. Overall, gathering and processing volumes were up nearly 30% over the second quarter of last year. We also continue to benefit from the addition of the Lone Star joint venture assets, which delivered solid results for the second quarter. Drilling activity in the liquids-rich plays continues to be the primary growth driver for our business and remains active around our assets in West and South Texas and in North Louisiana. Given the strong activity around our assets, we now expect to be expanding our processing capacity in West Texas and in North Louisiana in 2013. Now provide an update on the progress of our organic projects. In South Texas, rig counts have continued to increase, rising about 30% from the second quarter of 2011 to the second quarter of 2012.
In May, we announced an expansion of our adverse line joint venture to support this increased activity. An expansion will increase the system’s capacity from $70 million a day to $116 million a day and provide for 17,000 barrels per day of additional crude transportation and stabilization capacity. Regency’s investment is expected a total of approximately $90 million, and we anticipate that the expansion will be in service by the first quarter of 2013.Regency owns a 60% interest and operates the assets on behalf of the joint venture. Talisman and Statoil own the remaining 40%. Regarding our Eagle Ford expansion project, volumes continued to increase on the system in conjunction with producer drilling and the full project is on schedule for completion in 2014. Average second quarter volumes on the Eagle Ford expansion increased approximately 15% over the first quarter of this year. We have experienced some equipment installation delays due to overall industry demand, along with some downstream capacity constraints. We’re all making good progress towards getting these issues resolved and have already seen a nice pickup in volumes on this system in July. Also in South Texas, we are constructing a $40 million expansion to our Tilden treating plant. Upon its completion in 2013, it will provide an incremental 60 million per day of treating capacity. Additionally, we are close to filling our existing processing capacity for our South Texas volumes and will be working on expansion opportunities in the region for 2013. Each of these projects are backed by fee-based contracts and further extends Regency’s extensive gathering, processing, and treating platform in the South Texas area. Moving on to West Texas, rig counts increased to 15% from the second quarter of 2011 to the second quarter of 2012. And to accommodate this production growth, as we have stated, we are constructing a new processing facility to our Ranch joint venture with Chesapeake and Anadarko, which we announced in December of last year. The joint venture is $25 million a day refrige plant was operational as of June, and construction of the $100 million a day cryo facility remains on schedule to be complete by the end of the year. Read the rest of this transcript for free on seekingalpha.com