Question-and-Answer Session
(Operator Instructions). Our first question comes from Stephen Maresca from Morgan Stanley, your line is open sir.
Stephen Maresca - Morgan Stanley
Just had three quick topics I wanted to ask a quick question on. First Rich you talked about the Texas interstate and certainly, difficult market conditions in terms of lower margins. I guess two things on that; one, can you just talk about again how much you are exposed in that area in terms of sensitivity fee based versus exposure to buying and sell prices. And then two, as we see natural gas prices come up are you seeing an improvement in that business since the third quarter ended?
Steven Kean
Yeah, I think unlike our interstate there is little bit more exposure on the intrastate. But we kind of think if it as being, 70% to 75% or so that's about locked in under some kind of term contractual arrangement. So that's pretty much secured in terms of the cash flow as we come into the year. And it's that last 25% or 30% that ends up being subject to these variables. And so as we look out over the course of the year, we are not certainly getting back anywhere near all of that, but that's the place where there is a play.
Now as prices have come back up, the cyclical part that Rich was referring to where we had some of our purchases that are a combination of a basis as well as a percentage of the Houston ship channel which kind of covers our fuel when it has to be sort of over cover our fuel. As prices come back that part of our business comes back.
Stephen Maresca - Morgan Stanley
On to the second part; just in terms of your oil hedging, is there any update to 2010 for your oil hedging, and I guess any thought to again commodity prices are rising, hedging a little bit more in 2010
Richard Kinder
Park?
Park Shaper
Yes, we did add a little bit to our 2010 hedges during the quarter, it wasn't a significant amount. We are reasonably comfortable with where we are right now. In 2010 we are approaching – we are north of 70% hedged in 2010. I think we will continue to evaluate, prices have clearly improved, and we will probably layer some more on as we go forward.
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