Question-and-Answer Session
Operator
(Operator Instructions). Our first question comes from Shneur Gershuni from UBS. Go ahead please.
Shneur Gershuni – UBS
Hi, good morning guys.
Keith O. Rattie
Good morning, Shneur.
Shneur Gershuni – UBS
A lot of great info in the prepared remarks. Just want to kind of touch off on a couple things. I was wondering if you can kind of talk about cash flow versus CapEx with respect to 2010. If you feel comfortable with the amount of capacity you have on your credit lines available to keep up this type of a drilling pace, if gas prices remain sub six bucks into 2010?
Keith O. Rattie
That’s a great question, Shneur. The answer is we don’t have a firm budget yet set for 2010, but we, as you will note have hedged a significant amount of our production next year. And we are looking at a level of capital spending next year that shouldn’t be too far from the level that we’ve had this year. I will invite either Chuck or Richard to add to that if they want to.
Charles B. Stanley
I think based on what we are seeing in terms of commodity prices our hedge portfolio. We expect a slightly down capital budget, we haven’t put all that planning stuff together yet.
Richard J. Doleshek
Our cash flow will be down modestly at a nominal $6 NYMEX price next year from this year, but not a lot.
Shneur Gershuni – UBS
Okay. You mentioned actually the hedges for next year, it seems that you move the basis swaps up into fixed price swaps and so forth. Can you give us a sense as to where you kind of hedged next years production throughout the quarter, was it around the $5.80 to $6 level when you added everything together or?
Keith O. Rattie
That’s pretty close Shneur. The NYMEX was $5.80 to $6.
Shneur Gershuni – UBS
Right.
Keith O. Rattie
And the reported numbers that show up in the table at the end of our earnings release, Shneur are obviously reflect not only the basis hedges, but also gathering and processing the quality adjustments. So embedded in those numbers was a conversion around $6 of MMBTU.
Shneur Gershuni – UBS
Okay, great. And just one last question, you’ve provided a lot of great information with respect to the Haynesville flow rates and so forth and what not. It seems that do you feel that you are becoming increasingly more comfortable with it being an economic play. Do you have any plans to update kind of your 2P and 3P reserve numbers to further incorporate all the new information that have available?
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