Our 2011 Annual report also includes a glossary of certain industry terms that may be used in today’s conference call. The full forward-looking statements disclaimer as well as reconciliation to certain non-GAAP financial information presented are included in the company’s second quarter 2012 financial results press release dated August 9, 2012, which is posted on the company’s website under press releases. This disclaimer is in effect for the full duration of this conference call.I will now turn the meeting over to Mr. Gary C. Evans, our Chairman and CEO. Gary Evans Thank you for dialing in today and hearing about our second quarter as well as our six months ended June 30 financial results we reported this morning before the market opened. The company reported a record revenues of $60.3 million for the three months ended June 30. We also reported record EBITDA of $41.1 million pro forma for the second quarter, which included our acquisition of the Baytex properties located in Williston Basin that was completed in May. Average production rate for the second quarter increased to 162% and our liquidity continue to increase with combination of our high-yield offering, our perpetual preferred, our new borrowing-based increase and we presently have about $255 million of liquidity including what we can sell under our perpetual preferred Series D. So, all in all, if you look at the quarter, we continued our game plan of exploiting predominantly our existing assets located in Williston Basin with active rigs running in North Dakota, five rigs today; two rigs running in Saskatchewan. And then we also continued our development efforts in the Eagle Ford of South Texas, predominantly Gonzales and Lavaca counties where we’ve had substantial success. We have two rigs running down there today. So we made a decision, early part of the year, to refocus a significant piece of our capital budget to oil. Magnum Hunter is in a unique position of having a number of shale plays where we can redirect capital dollars and as operator, be in control of that and therefore change our production mix pretty rapidly.
So in the second quarter we now are over 50% crude oil production, which, as you know, with current crude oil prices around $93 to $95 a barrel have significantly better margins than what we’re experiencing on natural gas at around $3 an Mcf. So that is something that not many companies can do is direct their capital so quickly and change their production mix so quickly, which has allowed us to report these substantial results. That will continue throughout 2012.Our capital of $325 million for upstream is geared to these two oil projects being the Williston and the Eagle Ford. We did announce earlier this week that we have moved into another region of the South Texas area called the Pearsall and we’ve actually spud our first well. That will be a test well to that formation. We will end up completing that well in the Eagle Ford. We believe that there is some unique opportunities to pick up additional acreage and to expand our footprint in the Eagle Ford and we are looking at those opportunities with great interest. We also continued to expand our leasehold position up in Canada in Saskatchewan, where in the Tableland field we continue to have significant success with the way we are completing and fracking the new wells up there and getting much higher oil production and much less water production and therefore getting much better EURs. Now, let’s – don’t leave Appalachia out because we are very high on our Appalachian division. We’ve intentionally delayed capital spending there this year predominantly because we do not have a gas processing plant up and running yet that can strip the very rich liquids that we have in that gas stream. Our plant is supposed to go live in November. It was supposed to go live in June and it is four months behind schedule. But we believe that it will happen before the end of the year and that’s a huge uplift for this company. Read the rest of this transcript for free on seekingalpha.com