Question-and-Answer Session
Operator
(Operator instructions). Our first question comes from Carl Kirst from BMO Capital.
Carl Kirst -- BMO Capital
Hey, good morning, everybody. Few questions and I will keep it with the OKE level. Great job derisking the marketing. Jim, if I understand you correctly when you said that 100% of the storage margin is now locked in 90% of the transportation, if we can somehow relate this to the 115 million of EBIT guidance is the only then remaining risk that 115 million target really just that remainder of the transportation margin or are there other aspects we should be keeping our eye on?
Jim Kneale
Carl, I think, an overall that's a pretty accurate assessment, we're almost a 100% hedge on our storage margins and it is just a small piece that isn't. As our customers aren't calling on the service, and what I call the shoulder months, we often can make some money optimizing those position so that provides us a little opportunity. Then, factored into our guidance is the amount of storage draw we will have in primarily December, but based on our practice, that's fairly conservative. So those numbers are pretty firm. We do have our retail operation. It's looking good. So generally as a way we're looking at that we feel real confident in the 115 and depending on what the winter does and gas prices do before winter, there is some upside to that business.
John Gibson
Carl, this is John. One thing I would add to Jim's comment. I think he is dead right. I think it also points out the difference in a way we are operating the segment is that we are at 100% hedged on storage spread and 90% on transport. And that's different than what we've done in the past. It eliminates a lot of upside potential but at the same time provides some certainty to our earnings what you don't know. And although there is upside as Jim pointed out, what you don't know is how cold it's going to be in the areas where we serve our LDCs and what impact that will have, not only on the optimization opportunities, but also the draw on the services that we provide to our LDC. So that provide some flexibility which allows us to not necessarily tie down 2009 at this point in time.
Carl Kirst -- BMO Capital
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