Question-and-Answer Session
Operator
(Operator Instructions). And your first question comes from the line of Sharon Lui of Wachovia. Please proceed.
Sharon Lui - Wachovia
Hi, good morning.
Barry Davis
Good morning, Sharon.
Sharon Lui - Wachovia
I was just wondering for your ?08 guidance, in terms of the improvement what portion is attributable to the South Louisiana assets?
Bill Davis
Well. Sharon, last year at the Analyst Day, we said that we would achieve an eight to $10 million year-over-year improvement at those assets, and that’s basically what we have done.
Sharon Lui - Wachovia
Okay. So that 8 to 10 is baked into your ?08 guidance?
Bill Davis
Yes.
Sharon Lui - Wachovia
Okay. And in terms of, I guess improved processing margins, what are you assuming for ?08?
Bill Davis
We’ve got a -- our price deck that’s basically about an $87 oil price and the gas price at the Henry Hub, that’s a little under $8 that we’ve baked into our numbers right now.
Sharon Lui - Wachovia
Okay. Terrific. Thank you.
Bill Davis
You bet.
Operator
And your next question comes from the line of Darren Horowitz of Raymond James. Please proceed.
Darren Horowitz - Raymond James
Good morning. Thank you.
Barry Davis
Hi, Darren.
Darren Horowitz - Raymond James
Bill, I’ve got a question on your capital that you’re going to spend next year, the 250 million. Last time we had spoke, when you look at the identifiable projects across the board for you guys, the amount of money that could be spent is double or even maybe even triple that I know in North Texas is obviously there is a lot more opportunity for you to expand your gathering, processing. And in East Texas you could do a couple more loops or build more processing capacity than, of course, Louisiana. How do you look at deploying that capital this year in terms of getting the best bang for your buck?
Bill Davis
Well, as Barry and Bob alluded to, we expect the 250 to be sort of a minimum number, and we expect to be adding projects as we go through the year and we will give guidance around those big ones as we add them. The capital markets, as everyone knows right now, aren’t the most receptive. So, we will be careful as we add projects about where the financing is going to come from. These are all great return projects and we are committed to the $250 million of projects that we’ve identified in the guidance, and as I say, we may be adding others but that’s going to be subject to financial conditions and the ability to raise the capital at the time.
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