Question-and-Answer Session
Operator
Thank you. (Operator Instructions) Your first question comes from Christopher Taylor - Evergreen Investments.
Christopher Taylor - Evergreen Investments
I wanted to ask about your cash position, the $1.8 billion that you have. That includes the $200 million that you bought back, is that correct?
Bill Holden
As we said, the share repurchases were completed - the $200 million were completed during the fourth quarter, so the cash balance at December 31 is after the completion of those repurchases.
Christopher Taylor - Evergreen Investments
Can you give us some insight on how you plan to use that cash? Do you have any plans for debt reduction or, given the availability, to buyback more equity or, long term, what's your strategy there? I'm not looking for a [inaudible] or anything.
Ed Muller
Well, as we have said previously, we determine whether we have excess cash by looking at the outlook for the business, our intent to preserve our credit profile, maintaining adequate liquidity, including for CapEx, and maintaining sufficient working capital. And based on that assessment we don't have at this time any plans to be repurchasing further shares or [returning] cash. I think that probably suffices.
Christopher Taylor - Evergreen Investments
Well, $1.8 billion on the balance sheet, on a long-term basis that's an inefficient use of cash. You either invest this or you buyback equity or you buyback debt. I mean, it's not going to sit on your balance sheet for the next five years.
Ed Muller
Well, as to the next five years, I agree with you. We're looking at a nearer term right now, including taking into account the economic conditions that we are in and the commodity prices we are seeing, and our obligation to prudently manage the business and the balance sheet.
Bill Holden
The only thing I would add - and I think I've said this on prior calls - certainly the amount of cash that we retain on the balance sheet today, while we still have a significant amount of the Maryland Healthy Air Act compliance expenditures in front of us, is higher than I think we would see as we move through time and those obligations are behind us.
Christopher Taylor - Evergreen Investments
Let me ask it in a different way, then. Roughly for the next couple of years you're free cash flow breakeven, give or take a little. How do you define adequate liquidity or a good credit profile? What's your definition there?
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