Question-and-Answer Session
Operator
(Operator instructions) Your first question comes from Reza Hatefi - Decade Capital.
Reza Hatefi - Decade Capital
The gross target, the 5% to 7%, I guess in your 10-Q it says 5% to 7% from 2009 through 2012, which sort of implies 2012 is $2.90 or $3. Is it fair to look at it that way or am I just reading too much into that?
Sean Trauschke
No. I think the way to look at that is we were trying to articulate that’s a compounding our growth rate and so earnings are going to grow through 2012 off of the midpoint of 2009, 5% to 7%. So if our guidance is $2.70 to $2.95 this year we would expect and continued growth thereafter. I mean for 2010, our guidance would be $2.70 to $2.95 and we’re expecting growth beyond that as well.
Reza Hatefi - Decade Capital
So should we assume 5% to 7% off of the ‘09 midpoint or the ‘10 midpoint?
Sean Trauschke
I think you can use the ‘09 midpoint.
Operator
Your next question comes from Jay Dobson - Wunderlich Securities.
Jay Dobson - Wunderlich Securities
Question for you, Sean or Pete, the guidance now for ‘09 still at the midpoint leaves me just a little confused, when I look to the fourth quarter. You’ve done about $2.30 year-to-date and if I pick exactly the midpoint, that would suggest a $0.15 fourth quarter versus $0.29 a year ago and I think you said hold-co could be about flat in the fourth quarter, keeping that $0.07 loss where we are, so I’m just wondering what the rate increase and Enogex continuing to do, okay why $0.15 versus $0.29 would work mathematically?
Sean Trauschke
I believe we earned $0.23 in the fourth quarter last year, it was the number, Jay, not $0.29. So we’ve kind of targeted this to midpoint. Obviously, we’ve assumed normal weather and as you noticed in the third quarter and continuing in the fourth quarter, it’s still been mild and it’s a different economic environment this year. We didn’t see the full effects the fourth quarter of last year.
So we’re still targeting the midpoint there and we still have two months left to execute, so I wouldn’t anticipate that you’re going to see, there’s nothing concerning or deteriorating there, but I think we’re being very cautious and prudent. Pete, do you have anything to?
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