Question-and-Answer Session
Operator
(Operator Instructions) The first question comes the line of Michael Blum of Wachovia.
Michael Blum - Wachovia
Hi good afternoon, just a couple of questions, one, what type return would you expect on the Raton expansion?
Jim Yardley
Generally we've been talking about returns at both across the pipelines at the corporate level or an EPV, we generally have been referring to a multiple Capex represents relative to EBITDA and on this project as well as several others, that multiple is typically 7 times.
Michael Blum - Wachovia
The other question is this, as it relates potential drop towns in the future, just wondering how you're thinking about that now given the current state of the capital markets, the credit markets etc.. . Has your thinking changed in terms of timing of scope, or any other factors you're thinking about?
Jim Yardley
Yes, Michael, I could say the current environment is challenged but, first and foremost, our strategy has not changed. The one thing I think you need to keep in mind is that, in our sponsor we are willing and able as well to take equity on any potential transactions so that provides us, I think, a lot of flexibility when you think about how you might move forward, but first and foremost we understand that the market expects a certain level of growth, and we have every reason to believe that we'll be able to live up to those expectations.
Michael Blum - Wachovia
Thank you.
Operator
Once again, in order to ask a question, please press # and the number 1 on your telephone keypad. I would like to give everyone an additional moment to press # and the number 1 on your telephone keypad for any questions you may have.
Bill Baird
If there are further questions we would like to thank everybody for being on this call and thank you very much.
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