Question-and-Answer Session
Operator
Thank you, sir. (Operator Instructions) Your first question comes from Darren Horowitz from Raymond James. Please go ahead sir.
Darren Horowitz - Raymond James
Good morning guys. Rene, just a couple of quick questions for you; based on what you just said about your expectations for Texas volumes and San Angelo volumes, obviously across both North Texas and San Angelo you had a pretty good quarter.
Can you give us a little bit more color there as to what you’re hearing from producers, in terms of wells completed, waiting to get hooked up and more importantly a little bit more color on what you think it takes at LOU, to get things going in the back half of the year?
Rene Joyce
I will answer one. I will let Mike answer North Texas. But at San Angelo we’re starting to hear from producers, because it’s primarily oil production. That some rigs in the second half of this year should be moving back in, which gives us confidence that the volumes for this year should equal the volumes from last year. So that’s a positive development that wasn’t there a few months ago.
In Louisiana, the well had volumes that have stabilized, but they continue to decline, but the discretionary source of gas which is the big volume, should continue as is for the remainder of year. That’s why I’m saying LOU volumes will be higher year-over-year.
Again, LOU does a lot of other things besides gathering processed gas. We’ve got the butane storage arrangement there; we market liquids in the Lake Charles through our fractionation facilities and we got an intra-state system supplying over 40% of the Lake Charles market.
So it makes in money a number of different ways, but like I said, discretionary volumes will drive performance higher year-over-year and with North Texas, I’ll let Mike address what he’s hearing up there.
Mike Heim
Basically in North Texas we saw a shift in the fourth quarter of last year, where a lot of the producers didn’t particularly like the price, but wanted to drill. So they drilled the wells and they didn’t complete them.
We’ve seen clusters of wells fract in the last 90 days; we’ve gotten quite a bit of gas on. We have been pleasantly surprised at the initial production out of a lot of these wells that seem to be a couple of suite spots that have averaged substantially higher volumes than what our historic wells in the areas have.
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