Second, we allocate our capital to maximize recovery and cash flow. We understand that cash flow translates to distributions. I think that's a very important aspect of the MLP strategy. Our year-to-date uplift has exceeded expectations and is above 1,200 BOEs per day. Because margin is important, we've emphasized our earlier projects, which means primarily out in the Permian basin, year-to-date.And third, we continue to focus on strategic accretive acquisitions. We've had accretive growth through a significant drop-down as well as a third party transaction and we have another drop-down on the way, it's pretty significant. We think it will be there I think in early 2013. We have ample liquidity today to pursue the upcoming drop-down as we all as selective third party acquisitions. So hopefully that's a good snapshot of how we're thinking about things. Look at our asset base and some key statistics, you can see here that our reserves are up to about 88 million barrels equivalent, production for the second quarter is about 14,500 BoE's per day, we're heavily developed at over 72% reserve lies about 17 years now. We really look at the Permian and Ark-La-Tex as our two largest areas. We're also activate in the Mid-Continent and the Gulf Coast. The Permian Ark-La-Tex been our largest areas, make up 85% of our production and reserves. And our teams are very experienced in these areas where we have already acquired. We know a lot about them. We operate out here and when we're looking at transactions, we think that gives us a competitive advantage. I did mention our commodity mix there in those key statistics as we knew we wanted to put a slide together here for you to sort of highlight this. As you can see, we're about 55% liquids on a production basis and close to 80% liquids if you include, looking at our revenue basis including hedges. So a significant liquids component to our portfolio today.
Since there's been really an intense focus on these NGLs and how that might be able to impact shill cash flow, we wanted to bring up that we've only got about 10 to 15% and how you look at that NGLs in the portfolio which is really limited as how much that can impact our distributable cash flow. We don't hedge NGLs. We do significantly hedge oil and natural gas which I'll talk about in more detail here in a minute.And also I wanted to point out that if you keep up with NGLs that the Conway has been hit a lot harder than Mont Belvieu and we only have about 5% of our NGLs is exposed to Conway. So we think overall a pretty oily setup especially on a revenue basis. Let`s take a look at our annual capital program and how it's shaping up. We expect our 2012 capital program will end up with about $75 to $85 million of capital spend of which we expect about 52 million of that will be maintenance capital and we have lots of good projects in our inventory which are spread out across our asset base. What that means is we have very little concentration risk which I think is if you're sitting in investor shoes, that's actually a good thing that we don't have those really large concentrations of assets that can lead to some unpredictability. So we have a lot of projects that are spread out across our portfolio. As I mentioned earlier, our capital is going to be spend in out two largest areas, the Permian basin and the Ark-La-Tex area. We'll spend about 80% of our capital out on a Permian. As I mentioned, its clearly more oiler out there, at least it is in our portfolio. The type of projects we have going on out here are primarily infill drilling, water flood optimization and trying to find ways to enhance our water handling capability. Read the rest of this transcript for free on seekingalpha.com