Douglas Becker (Bank of America Securities): Where is the biggest surprise internally been relative to the forecast errors?
William H. Schumann, III: We are doing a little bit better in energy production. We had excellent execution, better than we expected in our Subsea Business and in our Energy Processing businesses, and those other business the Infrastructure businesses if you will. And those have been the big surprises, at least year-to-date.
Douglas Becker (Bank of America Securities): When you say execution, is there something we can point to more specifically?
Peter D. Kinnear: It is a lot of things, including getting estimate right, getting material at the price that you expected to buy it. Getting designs done early, so you can get the equipment at the assembly line to get it assembled on time. It is the lack of having to expedite processes.
Douglas Becker (Bank of America Securities): What do with customers typically entail from a contractual standpoint?
John T. Gremp: We are constantly trying to target customers that we know active in deepwater and have an interest in some kind of long-term relationship, because we think we can add value in the context of that relationship.
Some of the independents, who really benefit from signing up with somebody over the long-term can standardize on their equipment and focus on technology that is applicable to their deepwater wells.
So, there is interest and we have other customers that we are targeting. Sometimes there is fixed pricing with escalations. Sometimes the pricing is negotiated per project. Typically these contracts are broad in scope, its not contract to just provide Trees its all the other equipment.
These longer-term customers are looking to us to be the entire systems integrated. So, that is usually included in our alliance or frame agreements. Often times some are exclusive FMC, some are restricted to a particular geography, others are not as exclusive.
Douglas Becker (Bank of America Securities): On the surface tree business, how much of that is domestic versus international?
John T. Gremp: Our service business is about one-third domestic and two-thirds international, our international business has been real strong.
Douglas Becker (Bank of America Securities): How should we think about the surface tree business going forward?
John T. Gremp: Over the last year or so, the shallow water platform business in the gulf has been a little bit light, but I think there are opportunities for that to come back.
Stephen Gengaro (Jefferies & Company, Inc): Have you seen anymore noise added GE and any update from a competitive perspective, what is your view on their actions and their approach to the market?
Peter D. Kinnear: They are pretty low key in the marketplace, so we really do not see too much activity, they won a project in Norway for EP maybe three or four months ago.
And they are still integrating WECO and obviously they acquired the Hydro BOP business and that is being integrated into their businesses. And we have seen some employees that have turned over in terms of their organization, but it has been quiet really.
Stephen Gengaro (Jefferies & Company, Inc): Do you businesses that you do not have, you would like to add and are there things you are looking to do strategically within what is remaining to grow the business?
Peter D. Kinnear: After the spin we will be focused on our energy products and services, certainly the offshore arena, where we can do more activities. And we have taken a pretty early position in Light Well Intervention, which was a strategic thrust for us. Subsea Processing is a growing market for us. So, we are going to be very focused on that.
Joseph Gibney (Capital One / South coast, Inc.): Any sense of how that market is shaping up in Mexico, is that stand still there or do you see kind of pushing to the right a little bit?
Peter D. Kinnear: Their interest in the subsea shallow water tree business continues. Actually we got add on of two more trees to our contract down there. We have also seen them with some interested in the deeper water in terms of some potential projects and exploration work in deeper-water.
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