Question-and-Answer Session
[Operator Instructions] Your first question comes from the line of David Tameron from Wachovia. Please proceed.
David Tameron - Wachovia Capital Markets
Hi good afternoon.
Robert F. Heinemann - President and Chief Executive Officer
Hey David.
David Tameron - Wachovia Capital Markets
Congrats, Ralph. I'm sure going to miss the quarter calls, but best of luck to you, congrats on a nice run.
Ralph J. Goehring - Executive Vice President and Chief Financial Officer
Thank you.
David Tameron - Wachovia Capital Markets
You alluded to it briefly. Can you talk a little bit about California gas prices, what your outlook is for them? And again, is there anything you can do to try to mitigate potential margin deterioration on the cost side going into the summer?
Robert F. Heinemann - President and Chief Executive Officer
Well, you know, we do look at that issue from time to time. We do look at hedging it from time to time. But the thing that we've worked hard in the company is to put in what we... as you well know David... put in our natural hedge and when Ralph talked about a dollar change in Henry Hub translating to $3 million change to the bottom line, that takes into account a lot of factors in terms of firm [ph] transportation and differentials and whether it's coming into California or whether we're selling it to the east.
You know, fact of the matter is, we're really comfortable with that position right now. We get two reactions on this issue. One is, gee, since you're so balanced, it's too bad you're running up, you're going to miss the run-up in natural gas price. On the other hand what we would say is, because we are balanced we do not have a big deterioration in heavy oil business. So we moved the revenues around, and moved some of the profits around, but at the end of the day, the balance works very well for us.
David Tameron - Wachovia Capital Markets
Bob, can you talk about macro Uinta Basin? I know Newfield had some positive comments, but can you talk about where heavy wax or the black wax oil is and kind of where the crude market is currently in the region?
Robert F. Heinemann - President and Chief Executive Officer
Well, there is a posting for black wax in the Uinta Basin. I'm not sure how realistic the posting is. It's pretty thinly traded. And of course in wintertime, it's very difficult to move the wax.
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