Question-and-Answer Session
Operator
(Operator Instructions)
Our first question comes from the line of Neal Dingmann with Dahlman Rose. Please go ahead.
Neal Dingmann - Dahlman Rose
Good morning, a solid quarter!
Tracy Krohn
Thanks.
Neal Dingmann - Dahlman Rose
Tracy, regarding your comments about the new CapEx with the rig market, is the rig market becoming tighter or are you seeing rates going up? Also, in regard to equipment delays, is that mostly just on the rig side or is that also on the completion and some of the other equipment?
Tracy Krohn
I think we see it more on the rig side. Our rigs becoming tighter, we are not really seeing a substantial tightening in that market, what we are seeing, which is normal in the boom period, is that it becomes more difficult for the contractors to track clues to work on the rigs and you get some lesser experienced people and you have some delays in getting new equipment for the rigs or equipment repaired, and that is what we are seeing more than anything else.
We have had some difficulties with platform rigs more than anything else getting them on location and rigged up but that does not matter, this is fairly normal in a boom period. I have been through several of these boom periods now and it always seems to repeat itself.
Neal Dingmann - Dahlman Rose
With the market conditions, we have seen gas come down a bit here recently and oil coming down a bit also. Tracy with your comments regarding the acquisition market and hedging, from what we have seen in the last few weeks, does this cause any near term changes or '08 changes?
Tracy Krohn
You have to put it in perspective a little bit Neal. When we talk about prices coming down, my personal predictions for last year going into 2008 was about $78 barrel and about 750 gas. It went up from 146 or 147 to 127. It is hard to think of it as really coming down. I still view it is having gone well up. yes, I mean it is amazing to think that we can see slow downs as a result of the price of crude going from 140 to 120, or even possibly lower than that.
I am not sure what the bias is on volatility, but in any cases I think that it is still going to be a very active year. I have not seen any real shortages as-far-as rigs and things like that are concerned.
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