Question-and-Answer Session
[Operator Instructions]. One moment please.
Unidentified Analyst
Basically, we calculate that your nine-month cash flow is roughly $150 million less than your nine-month EBITDA, and that includes about $52 million of non-cash gains from the sale of CEP stock and about $104 million of lower depreciation recorded on your cash flow statements. Why is the cash flow depreciation lower than your income statement depreciation? And should we continue to look for non-cash EBITDA adjustments in your forecast numbers?
Kevin W. Hadlock - Vice President of Investor Relations
Andrew Good, CFO in our Merchant activities.
Andrew L. Good - Chief Financial Officer, Constellation Energy Commodities Group
One of the differences that we encounter in the presentation of cash flows versus depreciation has to deal with how emission allowances that we hand into the EPA for burn of the fleet. So if you are trying to look at what's going on in the inventory and you look at the actual decreases that would show up in say working capital, when we hand in it shows up as the variation or change in the inventory. It won't show up in a... use on the cash flow statement. So one of the drivers that we can try to point that up more clearly, possibly in additional math modeling in the future. That tends to be the biggest variation there.
John R. Collins - Executive Vice President and Chief Financial Officer
We can actually sit down with you after just to walk through that detail type of questions. Yes, they would continue, but I mean, I don't... I'm not sure that's material to the overall cash flow picture of the company.
Unidentified Analyst
Question for John. I noticed that last year you gave... there was sum-of-the-parts valuation slide in your presentation. This year you don't have a sum-of-the-parts value slide. So I went to page 18 and I looked at the unhedged EBITDA and PV of hedged value and I looked back on page 85 and I got the EBITDA for the other components and I reran your slide using the midpoint of the ranges. I’m coming out at around $150 to $160 a share. Is that... am I doing that correctly?
Mayo A. Shattuck, III - Chairman of the Board, President and Chief Executive Officer
Math work.
John R. Collins - Executive Vice President and Chief Financial Officer
I haven't done the math like you did, but I think if you do the sum-of-the-parts evaluation, I believe last year this time on the Analyst Day we showed you somewhere in the neighborhood of $96 to about a $145, sum-of-the-parts valuation if you did the math properly. I think if you redid the math this time, you will see the number is slightly higher than that range, so your number is probably not outside the relative range that you can get to.
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