Cameron International Earnings Call Nuggets: Outlook and CapEx Spending
Edward Muztafago – Societe Generale: I just wanted to focus on a couple of things here. First of – I think there were some comments the other week by one of your competitors about a more steady state of ordering for deepwater rigs going into the future. I was wondering if you could comment on that a little bit, certainly your out looking trends of continued strengths seems to be similar, but just wondering if you’re seeing more of a steady state ordering going forward or if it’s kind of this slurry of orders that we’ve seen in the past?
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Charles M. Sledge – SVP and CFO: I would say that it is – it characterizes a steady flow of inquiries, is a good way to characterize the current state. We don’t see any big spike, but we don’t see anything falling off and I think that’s what’s really positive about this current cycle we’re in. We see a lot of commitment by the major rig contractors as well as some folks that are wanting to get into this space and continue to expand their presence in this market; even more so is driving a lot of this incremental activity. I will also say that there is a lot of interest in upgrading the current fleets. You heard the Transocean folks talk about their new generation drilling fleet that is something that everyone will watch and hopefully emulate.
Edward Muztafago – Societe Generale: Maybe to follow-up on that, you did mention that most of the inquiries you’re seeing now are for dual stacks. When we actually look at the upgrading cycle that’s going on, can you talk about what you’re seeing in terms of – I don’t know if you can quantify it as percentage of the fleet or something, people are retrofitting older rigs to incorporate a dual stack and then certainly that’s going to be a much smaller portion than every rig, but…
Jack B. Moore – Chairman, President and CEO: Well that is correct the older generation could not handle the weight and just the footprint that had to get something up which is probably going to be difficult for a lot to do. So what you are seeing as a result is really a kind of a reload in terms of where their rational on these new rig builds are going to land. You’re seeing a lot of folks just expand their fleet or upgrade their fleet with newbuilds or they have started to retrofit some of the old ones.
Edward Muztafago – Societe Generale: Right. So the demand is clearly favoring dual BOP capacity and most of the older rigs can’t handle it. Then just maybe to switch over to a more picky question on V&M. You did give a little indication of sort of an upward trend in margin next year. What kind of gives you the confidence in that given what’s going on in North America right now?
Charles M. Sledge – SVP and CFO: Ed, it’s the backlog. Remember a lot of the business is international and project driven. So it’s the condition of the backlog.
Jim Wicklund – Credit Suisse: The CapEx for the fourth quarter, if you’re going to spend $500 million this year and your $280 million in now, you’ve got a big CapEx spend in the fourth quarter, what’s it for?
Charles M. Sledge – SVP and CFO: Lot of it’s for Brazil. It’s the final phases of Singapore expansion. It’s Berwick expansion. So it’s all the project as is typical with Cameron, we get the fourth quarter rush. A lot of capacity in an aftermarket and Brazil is coming on first to next year, so it’s a spend related to those projects.
Jim Wicklund – Credit Suisse: This is what’s going to boost your DD&A next year?
Jack B. Moore – Chairman, President and CEO: Yes.
Jim Wicklund – Credit Suisse: Second question, if I could. The North American Surface business, can you breakdown a little bit for us the frac tree and manifold business I know there is been a fabulous business for you guys? What risk do we have over the next six months in terms of activity in North America kind of sub segment if you would?
Jack B. Moore – Chairman, President and CEO: Well, I think we would look at it more regionally. Obviously, we deployed a lot of the assets that we had in the dry gas stations, obviously the Haynesville and the Marcellus into West Texas, South Texas, the Bakken. Jim, what’s helped us is the quality of the equipment and the level of the investment we’ve made in the equipment. When you have customers – we’d give you a good example, Shell for example where they are moving some of their spend from one part of the country to the next. We have a global frame agreement with Shell for all of their surface systems around the world. We were just successful in completing the U.S. element of that here recently. Those are the things, you have the same relationships with the Chevrons and the BPs and Exxons, and as these guys continue to evolve and spend in North America, we’ve been able to capture a lot more of their activity because of the quality of equipment. A lot of this – we started this process with the investments 2.5 years ago in the frac infrastructure. We spent close to $200 million. I don’t know that very many people in that space have made that level of commitment, it’s a big number. So, this has really paid off for us in terms of being able to go to these customers onshore, and say, we can provide you not only with great products and service, but with reliability and the safety and security that you’re looking forward in these projects. So, that helps us being that’s probably more in line with where our historical wellhead share is. So, we are kind of catching up from where we were and that’s kind of part of the story. That’s a big piece of our business now and will continue to be a big piece of our business going forward. We like everyone else see softness in North America next year that – it’s kind of hard to get your hands on, but we’re not going to see the growth in North America in this business that we saw in 2012.
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