Question-and-Answer Session
Operator
Thank you. (Operator Instructions). And our first question will come from the line of David Heikkinen with TudorPickering. Please proceed.
David Heikkinen – TudorPickering
Good morning, Tom and Dirk.
Tom Ward
Good morning.
David Heikkinen – TudorPickering
Thinking about 2010 guidance, just wanted to be clear as you think about that either with or without the Crusader acquisition, the thought is as you can make that number. Is that –
Tom Ward
That is correct. We don't know whether we’ll have Crusader, whether we’ll make that acquisition or not and won’t know until mid-November.
David Heikkinen – TudorPickering
Okay.
Tom Ward
So in our guidance what we did was to make sure we added Crusader in our guidance as we looked at our internal model anticipating the acquisition, but felt comfortable that we will make the 120 Bcf either way.
David Heikkinen – TudorPickering
And let’s say Crusader doesn’t happen, do you further the production that is non-Crusader with increasing capital or do you buy something else or how do you make up that 7, 8, 9 Bcf depending upon what Crusader is producing now?
Tom Ward
We already have the capital in our budget projected for Crusader. So we’ll just move that.
David Heikkinen – TudorPickering
Okay. So basically, the $750 million budget includes the capital for Crusader. So you’d shift that to East Texas or Oklahoma or West Texas is the way to think about how you get to 120 Bcfe?
Tom Ward
That’s correct.
David Heikkinen – TudorPickering
Okay. And as you think about –
Tom Ward
And we also feel like that we have enough room in our model that even if prices were lower and we needed to go back through a time of – let’s assume we had a warm winter or if prices got back down to the point that we don’t make any EBITDA or cash flow by producing wells or drilling, we would – we believe we have enough in this budget to be able to defer.
David Heikkinen – TudorPickering
And as you think about the timing of Century now in the second quarter, really ramping activity mid-summer, are you thinking June/July start for Century? What’s the most recent update?
Tom Ward
I’d say – I think that I've been consistent in saying either in the last part of June or the first of July and that weather could either move that up or move it back by a couple of weeks.
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