Operator: Good morning. My name is Sean and I will be your conference facilitator today. Welcome to Chevron's Second Quarter 2011 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers' remarks, there will be a question-and-answer session and instructions will be given at that time. As a reminder, this conference call is being recorded.
I will now turn the conference call over to the Vice President and Chief Financial Officer of Chevron Corporation, Ms. Pat Yarrington. Please go ahead.
Patricia E. Yarrington - VP and CFO: Thank you, Sean. Welcome to Chevron's second quarter 2011 earnings conference call and webcast. On the call with me today are George L. Kirkland, Vice Chairman and Executive Vice President of Upstream and Gas, and Jeanette Ourada, General Manager, Investor Relations. Our focus today is on Chevron’s financial and operating results for the second quarter of 2011. I’ll refer to the slides that are available on Chevron’s website.
Before we get started, please be reminded that this presentation contains estimates, projections, and other forward-looking statements. We ask that you review the cautionary statements shown on Slide 2.
Slide 3 provides an overview of our financial performance. The Company's second quarter earnings were $7.7 billion or $3.85 per diluted share. Comparing the second quarter 2011 to the same quarter a year earlier, our earnings were up 43%. Upstream benefited from higher crude oil prices and downstream benefited from improved margins. Return on capital employed for the trailing 12 months was over 19%. Our debt ratio at the end of June was 9.1%. In the second quarter we had share repurchases of $1 billion.
Effective for the third quarter, and reflecting the strength in crude prices and of our current near term outlook, we are increasing the upper end of our target range on share repurchases to $2 billion. In the third quarter, we expect share repurchases of $1.25 billion.
Turning to Slide 4, cash generated from operations was nearly $11 billion during the second quarter. This is a new record for the Company, topping last quarter's performance.
Year-to-date, we have used the strong cash flow in a manner completely consistent with our established financial priorities. We raised the dividend in the second quarter by 8%. We've funded a strong capital program and made some modest acquisitions. Both the organic and the inorganic components of these outlays are poised to earn attractive returns and drive future growth for the Company.
We've also continued to strengthen our balance sheet, and we've returned surplus cash to our shareholders in the form of share buybacks. At quarter end, our cash balances totaled nearly $18 billion. This puts us in a net cash position of $6.5 billion.
Jeanette, will now take us through the quarterly comparisons.
Jeanette Ourada - General Manager, IR: Turning to Slide 5. I'll compare results of the second quarter 2011 with the first quarter 2011. As a reminder, our earnings release compares second quarter 2011 with the same quarter a year ago. Second quarter earnings were $7.7 billion, 1.5 billion higher than the first quarter.