All right. Thanks, Kim.
For the second quarter of 2021 we're declaring a dividend of $0.27 per share, which is a $1.08 annualized, and that's up 3% from the second quarter of 2020.
This quarter, we generated revenue of $3.15 billion, which is up $590 million from the second quarter of 2020.
We also had higher cost of sales with an increase there of $495 million.
So netting those two together, gross margin was up $95 million.
This quarter, we also took an impairment of our South Texas gathering and processing assets of $1.6 billion.
So with that impact, we generated a loss -- net loss of $757 million for the quarter.
Looking at adjusted earnings, which is before certain items, primarily the South Texas asset impairment this quarter and the Midstream goodwill impairment a year ago, we generated income of $516 million this quarter, up $135 million from the second quarter of 2020.
Moving onto the segment EBDA and distributable cash flow performance, natural gas -- our natural gas segment was up $48 million for the quarter. And that was up primarily due to favorable margins in our Texas Intrastate business, greater contributions from our PHP asset, which is now in service, An increase volumes on our Bakken gas gathering systems. Partially offsetting those items were lower volumes on our South Texas and KinderHawk gathering and processing assets and lower contributions from FEP due to contract roll-offs.
Our product segment was up $66 million driven by a nice recovery in refined product volume. Terminals was up $17 million, also driven by the nice refined product volume recovery, partially offset by lower utilization of our Jones Act tankers.
Our CO2 segment was down $5 million due to lower crude oil CO2 volumes and some increased well work costs. Those are partially offset by higher realized crude oil and NGL pricing.
Our G&A and corporate charges were lower by $7 million. This is where we benefited from our organizational efficiency savings, as well as some lower non-cash pension expenses, partially offset by some lower capitalized G&A costs.
Our JV DD&A category was lower by $27 million primarily due to Ruby. And that brings us to our adjusted EBITDA of 1.670 billion, which is 7% higher than the second quarter of 2020.
Moving below EBITDA, interest expense was $16 million favorable, driven by our lower LIBOR rates benefiting our interest rate swaps, as well as a lower debt balance and lower rates on our long-term debt. And those are partially offset by lower capitalized interest expenses versus last year.
Our cash taxes for the quarter were unfavorable, $40 million mostly due to Citrus, our products southeast pipeline, and Texas margin tax deferrals, which were taken in 2020 as a result of the pandemic.
Just timing and for the full year, our cash taxes are in line with our budget.
Our sustaining capital was unfavorable $51 million for the quarter, driven by higher spend in our natural gas, CO2, and terminals segments, but that higher spend is in line with what we had budgeted for the quarter.
Our total DCF of $1.025 billion, is up 2% and our DCF per share of $0.45 per share, is up $0.01 from last year. On our balance sheet, we ended the quarter at 3.8 times debt to EBITDA, which is down nicely from a 4.6 times at year-end. Kim already mentioned that we updated our full-year guidance, which now has DCF and EBITDA above the top end of the range that we provided in the first quarter.
For debt to EBITDA, we expect to end the year at 4.0 times. And that includes the acquisitions of Stagecoach, which we closed on July 9th, and Kinetrex, which we expect to close in the third quarter.
As a reminder that that level -- that our year-end debt to EBITDA level has the benefits of the largely non-recurring EBITDA generated during winter storm Uri earlier in the year, and our longer-term leverage target of around 4.5 times has not changed. Onto reconciliation of our net debt. The net debt for the quarter ended at 30 billion, almost 30.2 billion, down 1.847 billion from year-end, and about $500 million down from Q1.
Our net debt has now declined by over $12 billion, or about 30%, since our peak levels. To reconcile the change in the quarter in net debt, we generated 1.25 billion of DCF. We paid out approximately 600 million of dividends. We spent approximately $100 million of growth capital and contributions to our joint ventures, and we had $175 million worth of working capital source of cash flows, primarily interest expense accrual. And that explains the majority of the change for the quarter.
For the change year-to-date, we generated $3.354 billion of distributable cash flow, we spent $1.2 billion on dividends, we've spent $300 million in growth Capex and JV contributions, we received $413 million on our partial interest sale of NGPL, and we have experienced a working capital use of approximately $425 million. And that explains the majority of the change for the year. That completes the financial review, and I will turn it back to Steve.