Charles Davidson - Chairman and CEO
Doug Leggate - Bank of America Merrill Lynch
Noble Energy Inc. (NBL) Bank of America Merrill Lynch Global Energy Conference November 21, 2013 9:00 AM ET
Doug Leggate - Bank of America Merrill Lynch
One of the truly unique, I think (inaudible) stories on portfolio structures that we have seen in this sector and for quite a number of years now, comes in the shape of Noble Energy. So we are really thrilled to have Chairman and Chief Executive, Chuck Davidson here to tell the story.
Great. Thanks so much. And Doug, if it makes sense, just kind of taking some guidance from your team, I have got set up here a few slides, maybe about 15-20 minutes of material and then open it up for questions. So I know that many of you, and you go through these presentations and say, well that’s great, but I have seen that four times before, I’d like to really talk about something else. So I thought I would do that.
It is great to be here, and I will go ahead and switch to the first slide, and talk a little bit about that. But I think, first of all, I just want to put in a commercial, and that is on December 17, we will be hosting our Analyst Meeting in Houston, and so I hope many of you will have a chance either to attend in person, or connect in through the web, because we will be providing a very full update on our plans and our programs over the next five years. This is something that we have done now for the last couple of years, where not only do we present current programs, but we really present a full five year plan of the company.
So today, I may reference a little bit, a few things that might be a bit dated although for those of you who follow Noble Energy, know our story doesn’t change overnight. But, just to keep -- stay tuned, because in December we will able to really tweak things up a bit.
This particular thing is a theme of our annual report this year, and it really is kind of the theme of our company, and we talk about it unique by design, and if you flip through the report, if you ever get a chance, I'd realize you will get a lot better things to do than read annual reports. But if you go through and look at, there is a whole theme that goes through in that report, that talks about the uniqueness of our company, and it really gets down to a number of things, unique assets, unique strategy, unique execution, and it finishes up on the back cover, it talks about unique future, and that's I think what gets me excited about our company.
We started a few years ago, when we began talking about this journey we are going on, where we were going to have multiyear growth, and if you dial back a couple of years, and we talk about double digit growth for the next five years, doubling our company over that five year period of time, and we are still well on track. The interesting thing though is that we are two years into that program, and we still got many years left to go; and so, it's a continuation rather than a finite end. So we see a very-very bright future for our company, driven by a number of key areas.
So if you think about it, and you look at our growth profile, and here is what it looks like. This is last year, again we will update it for this year, but you can see that on a debt adjusted per share basis, no free money, no free equity, debt adjusted per share basis, five year production growth of 18% per year, reserves growing a little over 20% and a number that I focus in on a lot is cash flow growing at debt adjusted per share basis, of well over 20%.
So no doubt, sets up that from that five year period, again, which we will update this year, more than doubling our company on a cash flow basis and a production basis and a reserve basis, growing returns as well.
So the next question always is, well, how do you do that? And one of the areas that we look at in our company, and again I am not going to dive deeply into each area, but I'd like to save that for the Q&A. But when you look at our business, the one thing that really has, I think changed it a lot in the last two or three years, is the onshore unconventional development; because what this does for us, is it really puts into the portfolio, a very resilient, lower risk, long term foundation for our E&P business.
When we look at this, we see we have got thousands of repeatable low risk investments, high rates of return. It couples with, what we believe is perhaps the best gas play in the United States, which is the Marcellus, which now is connected to what we also view as a very top tier oil play in the Niobrara. And so, both of them have really, very high quality, high returns, ability to leverage synergies between the two.
So I don't have any second thoughts on this, we added the Marcellus a couple of years ago and I am really pleased with how it has evolved. I like them because of their high returns. I like them because of their sustainability of their low risk, and I like them because of the diversity of the commodity.
So that's what our onshore business looks like, and it has been growing, it's growing very-very strongly. You look at this chart of our horizontal production, and you can see that just since fourth quarter of 2012, I will reference 2012, the slide say 2011, but I am going to reference 2012, we are up 50% since fourth quarter of 2012. Very strong growth. Growth that shows up, and you can see it every quarter. It's not like you are waiting a year to see a little bit of growth. These are two really strong resource plays, and so, they are really moving.
You look at the DJ basin, and the DJ basin today in terms of its horizontal production, is delivering horizontal production, what it took us decades to build on the vertical program.
So let me talk a little bit about the DJ basin. We are on track this year to drill some 300 wells. When you look at it, we are currently running between -- we run between nine and 10 rigs in this play. Several in Northeastern Colorado. Northeastern Colorado, that big circle area up there, a large portion of that is really moving forward in terms of full development, and I will talk a little bit about some of that as well.
As I noted in the prior chart, the horizontal production is growing very rapidly. This is hitting the bulk of our capital allocation. When we look at this year, about 45% of our capital will go into the DJ basin, about $1.7 billion, that's up from last year. I will give you a freebie from December. Don't worry, we are going to continue to invest more in this play; and so, as we look at our five year program, its all about trying to find ways to accelerate value here, and that continues to get better. We continue to see great results from our high density drilling, and again, I think we will have a lot more information to share on that.
You know, we were talking out in the hall, and it struck me today, the transaction that was announced in the Eagle Ford yesterday, where Devon was acquiring properties there for $6 billion, and as soon as I saw that, and as soon as I saw the metrics on it, I said, wait a minute, and I started writing down Noble in the DJ, Eagle Ford, and working through the statistics, pretty interesting, as I see the production characteristics are very similar. We have actually run the analysis before, and I think they showed about 75% total liquids, 55% oil, 20% NGLs, and the rest gas, well it turns out, that's very close to what we run in the Niobrara, we are on 65% to 85% liquids. We are in the East Pony area, we are a little bit oilier than that, when you look at the broader area, 65% to 85% is just right.
The difference is, they were acquiring for $6 billion, 82,000 acres, we at 600,000, seven times. Production is 53,000, we are currently running 100,000 barrels a day, that's two times. Location, they are running 1200 they showed, we have got 9,500, and their net risked resources were 400 million barrels, and we are currently showing 2.1 billion barrels of net risked resources.
And so I got really excited, knowing that this is simple math and it never works, but I think what it told me was, there was some recognition in the market, what we have known all along, is that the DJ Basin and the Niobrara are hugely valuable. And, I think it provides a lot of upside in terms of Noble Energy, as that value becomes more transparent to investors, as we move this program along. But any time somebody does a transaction for that size, and I can point to something on our portfolio very similar, that's anywhere from two to seven times the size, I think that's a good marker.
I will just move on and talk a little bit about the Marcellus. We are running about five rigs there in the wet gas area. Again, this is a joint venture between Noble and CONSOL. We are 50-50. Obviously, the dry gas drilling that CONSOL operates is on a reduced rate, the activity was accelerated in the wet gas area, and we are continuing to grow that. Net production at the end of this year should be about double what it was last year.
Talking a little bit about the major projects, this has been an area which I believe has turned into a real competitive advantage for Noble Energy. If you go back a couple of years ago, I think there was a question mark about can you discover these big projects, can you really deliver them; because they were the type of projects; deepwater developments offshore is real. Deepwater developments West Africa, Gulf of Mexico, are these the kind of projects that you can execute successfully? A lot of companies have been successful exploring, and then they clubbed the project execution of development, or they didn't understand the reservoirs.
Well, now I think we have got a great track record and show that we can really deliver these. We have got four that have been onstream, performing well. Our most recent, Alen has been ramping up this past quarter, and right now, it's pretty much where we expect it to be for Alen, so we are pleased with that one. That makes two in West Africa, that makes one in Israel, and then, we brought on also a project in the deepwater Gulf of Mexico, which is a cooperative project.
So it's kind of what next? I am very confident now in our project teams, they have shown that they can deliver. They can deliver very complex projects all over the world, so our job is to keep feeding them some more. And we have done that, we, earlier this year, sanctioned an expansion of Tamar just this last -- just in October, we sanctioned two more in the Gulf of Mexico, which were the Gunflint and the Big Bend developments, they are deepwater, both tieback projects.
So more to come. We continue to look at this program, we are very excited about what it can do. Big Bend, which is again one that we have sanctioned, that will be a nice tieback. It's combined with Troubadour, which was a follow-on discovery. Troubadour was kind of [dafty], but it also helped support some of the resources and actually led to an increased level of resources on Rio Grande because of their proximity. And so overall, we are seeing that the two have between 50 million and 100 million barrels of resources, with 75% that's oil. We are moving forward on the Big Bend portion initially, and that should be ready by late 2015.
If I look, I mentioned Alen. Alen was one that was originally targeted to start up at the end of this year. We accelerated early on, and so we started getting first production, really early in the year, but had a very slow commissioning process. We mentioned that we were having some challenges on some compressors. Now we have got both compressor trains running. We are now seeing the kind of production that we expect out of Alen. It's going to be a nice project. A little different. Aseng was pure oil. Alen is a gas condensate recycling project, and we strip out condensate, reinject the gas. It's more complex.
It's actually a lot like the Alba field that we have been an owner in for a number of years, not operated over on the other side of the island in Equatorial Guinea, and that's again the gas condensate, rich gas condensate. Lot of liquids, idea is, you cycle it for many years, and then ultimately, blow down the field and probably that gas will go to the back end of the existing LNG plant that's there.
Tamar is working great. We couldn't have asked for better performance from every aspect. It has been running very reliably, [even better], because today, 40% electricity in Israel is being generated from gas in this field, from five wells. It has had 99% plus reliability, we designed it that way. We designed it with very -- a lot of redundant systems. As I mentioned before, we have already sanctioned an expansion of this project, which will help on deliverability in a few years. We can talk some more about some of the other projects we have got coming on as well, but this one is really a great project, and is delivering what we expected in terms of sales to the Israel market.
We continue on exploration, and by the way, we can go back and we can talk about Leviathan and all of the things. I am just kind of doing the 30,000 foot view and then let's jump into it. So I am not trying to skip anything, I am just trying to get to your questions.
So on the exploration side, we have got a very deep inventory. We will be drilling -- continue to drill new venture type prospects, as well as a deepwater Gulf of Mexico. We announced our first well in Nicaragua, it was not successful, that's always a disappointment, but there is a lot of acreage there, and that's the type of prospect we like in our portfolio, it only had a 25% chance of success, so three times out of four, I am explaining to you why it didn't work, but that's the nature of our business, that's why we carry a diversified portfolio, and there is still some opportunities we believe in Nicaragua.
We are also continuing on our second well in Nevada, and so, that is one that I would say, stay tuned for December, and we will provide an update on where that is, but we finished the first well, got some good information from it. We are going into the second well, we will get even more data, because now that we know what the sections and sequences look like, it helps us tie-in to where we can do a lot of -- gathering a lot of core data, and a lot of other physical rock data that we wanted to wait till we had the first well, to make sure we were really going after data in the right sequences.
We have got, really a series of exploration wells in the deepwater Gulf of Mexico. We are drilling Dantzler right now, we should have -- hopefully we will have results on that by the Analyst Day, but then we have one to two more exploration prospects right on the back of that.
So, we have been doing a little bit of appraisal work in the last year, appraisal in Gunflint and follow-on things at Troubadour. But now, it's really time to go back to the portfolio in the deepwater gulf, so I would look for a number of things happening on the exploration front there as well. Dantzler again is currently drilling and we do expect results by the mid-December meeting.
I think that kind of covers the landscape. Just as a reminder, it's a business that's based on five core areas, DJ Basin, Marcellus, deepwater Gulf of Mexico, West Africa and Israel, those are our five core regions. On a, I will call it on an organic basis, adjusting for the divestitures that we have done over the past couple of years, we will grow our production this year, about 20%, and that's on track with what we had for guidance, and I showed the multiyear production growth going forward.
The rest for this year is pretty much on-track. Our capital programs, is as we guided earlier, we will have some updates for next year's capital. If I have a good board meeting in December, I will have the budget all approved, in that way, we will be able to give you a full review in December, not only of our long term plans, but really unfold the whole program for 2014 as well.
So I am really excited about where we are. You got to be excited when you can look and see, that you have got five years of growth in front of you, and it's really from projects that are in hand. We are not depending on exploration to deliver us our growth in the next five years. Our exploration is really designed to build the legacy of the company over the next decade. Our growth for the next five yeas is coming from the discoveries that we have got and the things moving forward.
Doug Leggate - Bank of America Merrill Lynch
Chuck, thank you very much indeed.
I will close this over here, and let the lawyer have their five minutes of time, with my forward-looking statement, and look forward to the questions.
Doug Leggate - Bank of America Merrill Lynch
So why don't you come and join me over here.
That is perfect.
Doug Leggate - Bank of America Merrill Lynch
So we have a roving microphone again folks for anyone who have some questions from the floor.
I had two questions, but Doug, maybe you can take over if needed. In the Niobrara, 9,500 locations drilling 300 a year; so can you talk a little bit about your ability to accelerate the present value of that in the ground resource and maybe constraint to development, infrastructure wise and getting all manageable.
And I guess the second question is also resourcing the ground in Israel, how likely is the potential for regional sales, how that's progressing?
Okay. Well, we go from one end of the world to the other. When I look at -- on the DJ, it is exactly as you say, it's all about accelerating the development plan. We had, two years ago, put forward a development plan, that showed that we were growing the rate of drilling over the next several years. Last year's plan, we added a substantial number of wells. So we showed that we are growing it to -- by the time we got to about year four, five, we were drilling about 500 wells.
So no surprise, the press just continued to see how we can further accelerate that. The near term constraint that we have had is, obviously it's not money, and its not rigs. People, you got to be careful on, because people count in terms of all sorts of things, and this is a little bit complicated, but we have added a lot of resources there. But its primarily handling the production, is the constraint. I think a lot of really good progress has been made on this.
Probably the top of the list is gas processing. Our gas processing partner in the DJ basin is DCP, and they have now a multiyear plan of investment. They just brought on another plant, is they changed names on, I think it's the O'Connor plant now, and it had a nice startup on it. We have been adding some compression. What's also helping, is that we will talk more -- I know in December, about these integrated development plants, where we are actually building out, I'd call it a field within a field, where we are taking larger sections of our acreage, and combining production facilities. We are simplifying it, we are streamlining. It makes it so that, while we make a lot of upfront investment, it then allows us, as we drill, to really bring production on more quickly, and more efficiently. So that is helping us as well.
But, gas processing, DCP has got a great multiyear plan. It's getting almost, probably on a monthly basis, we sit down with them and show our plans, and outline. I know, we were just having another meeting with them here recently, just to outline our plans, so that they could be aligned with what we are doing. The thing that I am so encouraged about is, that in the past, may be three, four, five years ago, there was always this tendency on processing, to wait for the production; because those producers, the processors say yeah, you had all these grand plans, and then they don't work out.
And so , I built this plant and it is sitting half empty. Well I am not going to do that again, I am going to wait until the production is there, and then I will build the plan, which of course takes two to three years.
I think with, now the detail level of development plans that we can show to our processor now, they have switched over and they are now investing in anticipation, and that's making a big difference.
The other two areas are important, NGLs and oil, and I think we have worked through that. There is a new NGL pipeline that is just a few months from starting up, and they will help bring NGLs, they will bypass Conway, and they will take them right into Mont Belvieu, that will help us, and then also, there has been expansions on the oil handling plains, build the rail facility. It just started up in the last two weeks, so we can now rail crude out. That was done in support of both Noble and Anadarko, and also, the White Cliffs pipeline, its capacity is being doubled to about 150,000 barrels a day.
So I believe, that we are seeing the components come in place, so that we can continue to accelerate the development plant, and that's what I think, if I look at DJ Basin in Wattenberg, and I forecast with a crystal ball, that's probably not great, but I think I can do a pretty good job on this. What I am going to see is, every year, we are going to find ways to continue to accelerate this production, and that every year's five year plan, we will probably show some incremental growth in that.
One other thing I will mention, which I think is helpful, and then I am going to switch over to the question on Israel, and that is that, we and Anadarko announced an acreage swap. And probably a lot of people just said that's nice. They swapped 50,000 acres each, 100,000 acres in total of that play, and they say that's nice. That was, if you think about the value on 50,000 acres, go back to that transaction that was just announced, which was 82,000 acres. This was a multi-billion dollar trade that aligned both companies' interest, so that it basically helps our acreage be more contiguous, it allows us to more of these IDT development plants, it allows us to do more extended reach laterals. We worked on this thing for a year.
Most asset blocks don't work. In this case, there were two companies that knew there was a huge price at the end here, if we could pull it off, so we just ground through it, and so we got it done, and in my view, that was a very material transaction. They won't show up on the radar screen. You will never be able to see it, other than it will create more value out of this deal in the long term.
Israel; I think your reference to regional market, is that has been one of the biggest changes in the Middle East gas market that we have seen in the past year, and that is that, where before the view was, we develop enough gas between Tamar, and the early phase of Leviathan, that would satisfy the Israeli market, and then we export all of that through LNG. And as we looked at the market, and really the critical [teach] was Egypt; as Egypt changed, and their gas supply situation became more transparent, I would say it deteriorated, but I would say it really was -- probably it already deteriorated, it just became more transparent. How bad it was, is that, it created an opportunity for us to market more gas in the Middle East; because as it went Egypt, it took Jordan down as well; because Jordan was relying on Egypt for gas and lost that supply.
So we are now moving vigorously with potential sales of gas through both of those countries. They may not necessarily be to the country, they may be customers in those countries. We all know that there is a couple of LNG plants in Egypt that are suffering mightily with the lack of supply of gas, and so the owners of those plants have been looking for an additional source of gas, so that may be potential customers, and initially our discussions in Jordan have been with industrial customers there, that need energy.
So that has really changed the dynamics, as we look at the Eastern mid-market. The good news is, after an incredibly lengthy period of time, the Israeli government finally got the final okay on the export policy. I mean, that was one that I just could not believe that can take that long in the committee, that recommended exports and the policy on exports, maybe recommendation in the summer of 2012. In fact, until they had their elections, after few airplane trips, I think the Prime Minister got it, that what was that risk; it was the development of the resources for the country, and so we got an export policy. So he put one forward, and his cabinet put one forward, and nearly got challenged in the court.
I was impressed though, that when the High Court in Israel finally heard the case, they heard it on Sunday, and they ruled on Monday; and said, that's it. Get on with it.
So we have the export policy. It's a good export policy. We have got a few more governmental approvals that are along the way, but it did push back Leviathan about a year. There is no way you can change the calendar, it pushed us back. And so, we have seen some stories about us being not moving a rig over there right way, to drill eight Leviathan tests. Well guess what, we don't have the rest of the program to couple up with it. So we'd end up moving the rig over there, to drill a $0.25 billion well and then have to move it back out. So we are not ready to do the development of the wells at the Leviathan.
Starting the (inaudible) preparations, we hadn't made a final decision, we made preparations to move that rig to another part of our program, so that we can wait until we got a really sustained drilling program ready to go in Israel. As well as -- by the way, we got a partnership that we have been trying to close, that has been on hold, while we are waiting on exports, and so we have reengaged with Woodside, to see if we can get that transaction closed, because they were of course, will then be a partner of the deep well, as well as the whole Leviathan development.
So, more to come there. I actually, am excited about how -- through the evolution of the market, the value has gone up; because what we are seeing now is, we will be able to market more gas regionally at lower capital costs. Because, all of these regional markets are basically using pipes; and in some instances, they are connecting the pipes that already exist. So it's a lot simpler system. It brings forward sales. It allows for sales at a lower capital investment. We still believe we will have a component of LNG in there, but it will probably not be as many trains of LNG, it could be floating LNG as -- or it could be LNG over in Cyprus.
Doug Leggate - Bank of America Merrill Lynch
Thanks Chuck. So we have about 10 minutes for questions. Chuck, if I could ask a follow-up to Dave's question on the Niobrara, the location backlog clearly (inaudible) already, but we also understand that you can -- clearly aggressively testing then spacing, as well as multiple benches. So what are you assuming in the 9,500 location right now, and to the extent you kind of head at the Analyst Day, what do you think the ultimate potential looks like?
Well, more. As we look across in the 9,500 locations was looking across the field, and making an asset. But I would say that, some areas we did not have as much data, and so we are -- more confident, and that's what will increase some of it. Couple of points, one, that we have commented that over a very wide portion of the field, we see a drilling density of at least 16 wells per section, and it's because -- and I know we got a lot of questions on our last earnings call, because we are not seeing interference. And so that tells us, as we look at these wells that are closely spaced, and not seeing interference, is that we are able to recover and yet basically, we are not seeing a deterioration recoveries per well, as we tighten up the spacing.
So we continue to press the envelope, and I guess that's where -- our approach has been not to get to where we are going to be, but tell you where we are right now, and then tell you what we are working on, because I think it’s a trap to start speculating. But we are looking at some opportunities, and would look at increased densities of 24, 32 wells a section. Never would I speculate, that would be across the broader field. It would be in some areas that we would have that. But we are seeing -- just tremendous results in the East Pony area, and there we see 16 wells in the section, possibly going up there as well.
So it is evolving. One of the things that we are trying very hard to do, is -- one of the benefits of an integrated development plan is that, if we go into an area, we are trying to drill it out. So we are going in a section, and we will drill it out. But because we are not having to set individual production batteries on those sections, as those [echoed now], that its all basically just going through flow lines with central facility. It means that we can go back in there, and infill and not have nearly the amount of capital -- additional capital investment. So it's one of the benefits of the integrated development plans, is it will allow follow-up of -- call it infill drilling, if it shows necessarily.
We are not going to -- we want to be very careful, that we don't over drill and then we find out that we spent too much capital. But right now, all our data is suggesting is that, we are still getting that, maybe 10% recovery, and that if we look very carefully at how we work on the multiple benches, because this is not putting 60 wells necessarily in the same bench, this is very carefully sequencing and so in some cases, we have got an ABC bench in the Codell, and we will sequence those things, so that we make sure that we have aligned the well, so that they won't interfere with each other. That's how we can pack a lot of density into a section.
It's a great, great project with the geologists and engineers that are working on it; because it's really a test.
A real opportunity to test some new ideas constantly. So it's -- everybody wants to know, what the answer is, and I say, I know what the answer is today, and tomorrow, we will probably have improved on it.
Doug Leggate - Bank of America Merrill Lynch
Any other questions from the floor?
Two questions. First, with regards to the Tioga play. It sounds like, you have only drilled one well. We will hear about that during the Analyst Day. Now, it seems like you are -- that will sort of be ahead of my expectations right there. Should we be reading anything into that?
Then second of all, with regards to the Wattenberg, you are talking about 300 wells this year. Could you just remind us, how many wells you have currently online, and what your backlog looks like?
Yeah. Let me take the last one first is, that at the end of this year, we will have about 900 wells in the field, horizontal wells; and so, there will be -- some of those, they will just be completed at the end of the year, as part of the 300 we are drilling this year. But if you look at it, cumulative to-date, we will be -- at the end of this year, about 900 wells online. So that's -- so we have knocked off, and then again we have -- again the last year, we had 9,500 locations. That will change. We are also -- already, our current plan is to continue to grow the development plan there. So back to your earlier question, whole game plan is to accelerate and to continue to do it, and do it in a very efficient manner. Don't go bouncing around the rig. Go into an area, and mow the grass, and do it very efficiently.
In Nevada, I wouldn't try to read anything in. We are still learning at 900 wells in the DJ Basin, so don't go racing down the field and declaring victory on one well in Nevada. I think its just information, and we will try to be as transparent as we can. We have got 350,000 acres there, and we will share what we can, and hopefully, we will tell you not only what we know, but what we don't know. And that's about what we can do.
So stay tuned for December. They are working really hard, so maybe they will be having a little bit more by then.
Doug Leggate - Bank of America Merrill Lynch
Chuck, if I may, you opened up talking about the transaction in (inaudible) that was announced yesterday, joining results if you like, to potential volume in the DJ. Just putting this whole thing together, you had a tremendous exploration spud record, ex-US. But now you have got, potentially this 800 pound gorilla in the room in the DJ, which potentially has been massively undervalued in their stock. How do you think about -- this is the other question, other routes to monetizing, or having the value realize, outside of what you can do with your own balance sheet and your wherewithal, so to speak?
I think, it does raise the question, anytime it becomes very apparent that you have got something in your portfolio, that's not being fully valued, then you start saying, well how do I open up or unlock that value. I think we have had the same issue in Israel. Although I'd say, in Israel, our approach there has been to be patient, because we need to have more transparency on what the markets are, and as that transparency happens, I believe the value will become more transparent as well.
In the DJ Basin, we have got a -- continue to deliver the performance of the system. We need to find ways, maybe there are some creative ways we can accelerate this, through doing some things differently, than just the traditional spend and drill and produce. I don't know what the answer to that is. I do know that, it's of a huge benefit to controlling your business there.
We have a very high working interest, we operate, and so when you start doing things that the (inaudible) down, sometimes you lose that, and the value leaks off faster. I think the key in the DJ is to accelerate; and as our company generates more cash flow, because one of the nice things is, when you look at our program, and you see that cash flow growing at over 20% a year, DJ, I know that the DJ has got every hand out, wanting some of that, and I will be able to give it more, and be able to accelerate it even more, and I think that will help as well.
Doug Leggate - Bank of America Merrill Lynch
Folks, we are out of time, but Chuck, thanks very much for coming down today. Appreciate it.
Copyright policy: All transcripts on this site are the copyright of Seeking Alpha. However, we view them as an important resource for bloggers and journalists, and are excited to contribute to the democratization of financial information on the Internet. (Until now investors have had to pay thousands of dollars in subscription fees for transcripts.) So our reproduction policy is as follows: You may quote up to 400 words of any transcript on the condition that you attribute the transcript to Seeking Alpha and either link to the original transcript or to www.SeekingAlpha.com. All other use is prohibited.
THE INFORMATION CONTAINED HERE IS A TEXTUAL REPRESENTATION OF THE APPLICABLE COMPANY'S CONFERENCE CALL, CONFERENCE PRESENTATION OR OTHER AUDIO PRESENTATION, AND WHILE EFFORTS ARE MADE TO PROVIDE AN ACCURATE TRANSCRIPTION, THERE MAY BE MATERIAL ERRORS, OMISSIONS, OR INACCURACIES IN THE REPORTING OF THE SUBSTANCE OF THE AUDIO PRESENTATIONS. IN NO WAY DOES SEEKING ALPHA ASSUME ANY RESPONSIBILITY FOR ANY INVESTMENT OR OTHER DECISIONS MADE BASED UPON THE INFORMATION PROVIDED ON THIS WEB SITE OR IN ANY TRANSCRIPT. USERS ARE ADVISED TO REVIEW THE APPLICABLE COMPANY'S AUDIO PRESENTATION ITSELF AND THE APPLICABLE COMPANY'S SEC FILINGS BEFORE MAKING ANY INVESTMENT OR OTHER DECISIONS.
If you have any additional questions about our online transcripts, please contact us at: email@example.com. Thank you!