AGL Resources, Inc. Q2 2008 Earnings Call Transcript

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2008-08-05 22:52:14.0

Tags: AGL Resources Inc.

Question-and-Answer Session

[Operator Instruction]. Your first question comes from the line of Barry Klein [ph] from Citi, you may proceed.

Unidentified Analyst

How is it going, guys?

John W. Somerhalder II - Chairman, President and Chief Executive Officer

Hi, Barry.

Unidentified Analyst

On the distribution operation, there was the adjustment for the unbilled revenue, that $3 million at Elizabethtown, is that... that's not something that... that's something that's one-time in nature and from prior period, right?

Andrew W. Evans - Executive Vice President and Chief Financial Officer

That's right, for the balance six months. For the first six months of the year, it really just relates to how we estimate unbilled revenue for certain group of customers. So, it's... we wouldn't expect that to continue in the future.

Unidentified Analyst

Okay, Got you. All right, that was it. Thanks a lot.

Operator

[Operator Instructions]. Your next question comes from the line of Michael Lapides from Goldman Sachs, you may proceed.

Michael Lapides - Goldman Sachs & Co.

Hi, guys. Question for you on your growth projects and the CapEx expected there, how much of the CapEx is actually locked in meaning where you've got firm contract for both materials and E&C labor [ph] for that versus the portion that's not contracted?

John W. Somerhalder II - Chairman, President and Chief Executive Officer

Michael, it's different for each one of the project I talked about. As an example, for Magnolia, the smallest of the projects, the last project I mentioned, since most of that is pipe that's already in the ground and another important piece is the compressor that we're getting ready to order, and if we... when we finalize the agreement with SNG, we will do that here this week, most of that costs is either locked in now or will be very shortly. With HRX, our Hampton Roads Project, because we have purchased the pipe and entered into contracts where almost all of that except for a little construction on land there, most of that is locked in. That is different for GTS. For GTS, probably only in the range of 20% is actually locked in now, the rest is based upon... some are based on quotes we are getting, but we still haven't been able to find the lock-in the rest of the costs. And that's why we provided the range we provided it to you. There is a little bit more potential for movement of cost on that project than on the other two.

 

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