Question-and-Answer Session
Operator
(Operator Instructions) Your first question is from Keith [Ferazini] – Sidoti & Company.
Keith [Ferazini] – Sidoti & Company
On the energy segment can you give an idea where you are daily production beginning of quarter versus end of quarter? Then, any idea where you’ll be at the end of Q2?
Andrew B. Schmitt
We are, I believe, about 17 million cubic feet I think at the end of last quarter and we’re pushing, bouncing around 19 million. It just depends on what compressor is down at any given time. We had originally looked at the middle of this year with a gross number, when we looked at hedging to estimate what we had, we had hoped July 1st to be at 20 million cubic feet so that was sort of our number that we use when we looked at the room as far as the amount we wanted to hedge. So, I guess that’s still a good number. Weather will make a big difference. If we can get some more wells online. We didn’t bring a lot on, I think we’ve only got 29 to 30 wells, do we Jerry hooked up?
Jerry W. Fanska
Right.
Andrew B. Schmitt
So, it’s been rough.
Keith [Ferazini] – Sidoti & Company
Any change in the hedging position?
Andrew B. Schmitt
Jerry, he can recap where we stand. I would say that before we do we use to say we’re $1 off NYMEX but if you look at the differential between Southern Star and NYMEX it’s really increased quite a bit. I can’t tell you I’ve got a good explanation for that other than maybe Southern Star’s storage is a little bit fuller but I know that the differential yesterday was $2 but we’ve seen it as high as three. So, when Jerry gives you the hedge amount we normally say add $1 but that has not been the case in the last few months, it’s spread to at least $2.
Jerry W. Fanska
It has. We’ve got about two thirds of the gross right now hedged and the hedged amounts range from $7.51 to $8.35 for the next year and $7.51 and $8.75 for the year after.
Andrew B. Schmitt
Of the net, two thirds of the net not gross. Yes, we don’t hedge the royalty owner’s gas, they just float.
Keith [Ferazini] – Sidoti & Company
Just briefly on the water infrastructure side, I guess the margin there would be a bit of concern. I know there’s weather related issues but what are you seeing in the contract bidding process? Are things tightening up? Are you getting more competition there?
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