Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Wyatt McCormick - Raymond James.
Wyatt McCormick - Raymond James
My first question concerns the processing margins you touched upon, how they're challenged and you've also seen some reduced recovery of liquids, and possibly too from your customers delays in hooking up their pipelines. Now how long do you expect this to continue or what will be the impact going forward?
Bob Purgason
On the recovery of liquids, let me just say that should continue through the rest of this year. It's an impact of right now we could recover about 15,000 barrels a day, and we've been curtailed by 2,000 to 3,000 barrels a day depending on kind of where we are.
Processing margins, that's anybody's guess. As long as gas prices stay as strong as they are compared to crude, it's going to, you know, give us a challenge on the processing margins. But that's something Bill's already addressed in our guidance.
Wyatt McCormick - Raymond James
As it stands today in the second quarter, what do you see with your customers hooking up their pipelines to your systems?
Bob Purgason
Well, the delay Bill really mentioned is about a 45day delay due to some compressor deliveries on our end and about a four-month delay as some of our producers were looking at right-of-way challenges that they've had.
So, you know, we think that's kind of a one-quarter issue. But it is indicative of the kind of challenges that we all face in the tight Barnett Shale in terms of just getting the right-of-way bought as quickly as we'd like to in the urban environment.
Wyatt McCormick - Raymond James
And then just kind of on that point, the $300 million in Capex, is that from kind of cost increases and delays like these?
Bob Purgason
No, the change from $250 to $300 is the additional project that we announced and the portion is so - our Bear Creek plant that we'll spend in this year.
Wyatt McCormick - Raymond James
The last question is opportunities for you in the Haynesville Shale?
Barry Davis
I would comment that we are positioned very well to take advantage of the opportunity as it evolves there. I think it's just absolutely in the center of our wheelhouse, if you will, in terms of competency of what we do. And working with the producers, as that evolves I think it will look just like the way we've developed in the Barnett Shale and in other areas in the past. And we like the position that we have with our assets just to the south of kind of the core of the area.
- To read the full transcript on Seeking Alpha, click here »
