MDU
#Thank you, <UNK>.
Hello, <UNK>.
It is <UNK>.
We have a Line Section 25 expansion project that we are going to filing with FERC here and so we are starting off on that and that is what is driving it.
That's going to be compression at basically three locations, Charbonneau, Williston and Tioga and so that is what is driving the capital increase.
Well, certainly the exit of the E&P and refining, there is a lot less exposure directly with commodity prices.
I mentioned to folks, I look at WTI maybe three times a week and not three times a day as I used to.
When we think about, we will still have exposure to the general economies that surround the E&P business.
Again, North Dakota the Bakken is in our backyard.
We enjoyed some very nice customer growth, investment opportunity at the utility.
We moved organically Knife River into that market and enjoyed some strong workloads there.
So while we have some exposure there, I'll point out, as <UNK> mentioned, Knife's in 17 different states; so there is some exposure there, but at the same time it isn't all eggs in one basket.
I think it is more economic risk.
It's not direct price commodity risk.
And then actually, there are some things up in <UNK>'s business.
He goes through a lot of diesel every year running those big heavy equipment around.
We actually see some benefit with lower commodity prices and actually asphalt oil business can be favorable in certain markets like that too.
There's certainly some exposure, as probably all companies have, from an economic perspective, but it is a lot less direct affected from an income statement with commodities.
Okay, thanks <UNK>.
Good morning, <UNK>.
Yes.
Thank you for the question, <UNK>.
I would say this last quarter was pretty important strategically that we have done some of those things you just talked about.
The exit of the E&P and the refining were very conscious decisions on our part.
And we think strategically that makes us a much less volatile Company and less exposed to commodity.
And we really are centered on a two-platform business, that being regulated energy delivery, that is through <UNK> and <UNK>'s business along with construction materials and service, <UNK> and <UNK>'s business.
So we think those are two great platforms; they can complement each other and we think they are very core at MDU Resources.
Thank you, <UNK>.
I appreciate everyone again for participating on our call here this morning.
As noted earlier, our continuing operations delivered strong results for the second quarter of 2016.
We are committed to continue building on this momentum by focusing on those factors that we can most directly influence, those being controlling costs, expanding margins along with growing earnings.
We appreciate you being on the call here today and we thank you for your continued interest in MDU Resources.
Thank you and we will turn it back to the operator, <UNK>.
