Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from the line of Jeff Dietert from Simmons. Your line is open.
Jeff Dietert – Simmons
Okay. I’m sorry. I had a question on capital spending. You’ve talked about managing your capital spending within; operating cash flow and I just wanted an update. We’re modeling about $570 million for this year and about $500 million for next year. Are those reasonable expectations? And what’s the range around those numbers, both in a good margin environment and in a weaker margin environment?
Bruce Smith
I can tell you that for the Jeff, for the current year, we think we’re on track. It will depend on timing differences, as always, as we get to end of the year. We announced we’re going to do $600 million I think that looking at where we are, we expect to be a little less than $600 million and it will depend on where invoices come out, sort of in probably the last month of the year as to exactly what that number is.
I don’t know whether that 570s is a number that’s good, but if we look historically, we think we’ll be less than 600. I think that those programs are pretty well baked for the year, what we’re doing right now is we’re rerunning, through these different scenarios, various capital programs for next year and obviously various operating plans for next year.
Our goal is try to figure out we’ve said that next years operating, or capital will be in sort of the $600 million range again. We are looking where we think cash flow is going to be our goal is still be to within cash flow. So, we’re looking at whether we can trim some other things and make some changes to be able to modify our capital program. There’s a very this active effort that we’ve had for about a year has gotten even more active.
The board meeting yesterday, we said exactly the same thing to the board. We said it’s certainly not going to be it’s one of those thins I can say it’s not going to be bigger than, and I think we’ll have a better handle on it probably in the next couple of months now. I don’t think you’re going to be far off of where the numbers going to be.
Jeff Dietert – Simmons
Very good, could you give us an update on what you’re seeing on the demand side in California?
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