Vectren Earnings Call Nuggets: Infrastructure Services Business and Coal Prices

Vectren Corp (NYSE:VVC) recently reported its fourth quarter earnings and discussed the following topics in its earnings conference call.

Infrastructure Services Business

Michael Gaugler – Brean Murray: I guess my first question would be on the Infrastructure Services business. In this pack on Slide 8, I think you were talking about growth in that business in the future. And I’m wondering, given the assets that you have in place there, do you have everything that you want from an operational standpoint, or would you be looking to do – let’s say, augment organic growth with perhaps a smaller tuck-in acquisition for something that you might not have?

Carl L. Chapman – Chairman, President and CEO: Michael, this is Carl. I think, again, as you know, we’ve grown this business through some acquisitions; small tuck-ins as well as the one large one in Minnesota Limited, and we’re always open to looking at that, but we’re also comfortable with organic growth. So, I would say, we really don’t have a strategy that’s exclusive. We’re really open to both ideas and we keep our eyes open. With a key certainly is, of course, demand which is strong. In addition to that, it’s personnel and equipment and so, perhaps acquisition could be a faster way to do that at times. But on the other hand, we’ve also been successful organically growing this business for a number of years. So, the bottom line is, we’re willing to look at both possibilities.

Michael Gaugler – Brean Murray: Then also taking a look at the guidance here for the Coal Mining business and listening to your comments on costs, I’m wondering is there a point in the future, let’s say that coal end markets slowly recovers and obviously you want to get the business back to breakeven and profitable as quickly as you can, if you look out and that’s kind of the scenario, is there ever a point in time where perhaps you say, look, given the efficiencies from opening Oaktown 2 versus Prosperity, maybe you shift production from Prosperity to Number 2 and then use Prosperity for the (swing tons) as the market recovers?