Good morning. My name is Cassandra, and I will be your conference operator today. At this time, I would like to welcome everyone to the Midstates’ Second Quarter Earnings Call. All lines have been placed on mute to prevent any background noise. After the speakers’ remarks, there will be a question-and-answer session. (Operator Instructions) Thank you. At this time, I would like to turn the call over to Al Petrie, Investor Relations Coordinator.

Good morning everyone and welcome to Midstates Petroleum’s second quarter 2013 earnings conference call. Joining me today as speakers on our call are John Crum, Chairman, President and Chief Executive Officer; Steve Pugh, our Executive Vice President and Chief Operating Officer; and Tom Mitchell, our Executive Vice President and CFO. John will begin today’s call with highlights of the second quarter. Steve will then provide more details on second quarter operational results and plans for drilling activity for the third quarter of 2013. Tom will follow with key financial highlights of the second quarter and provide guidance for the third quarter and full year 2013. John will then wrap up with some closing comments. Before we begin, let’s get the administrative details out of the way with our Safe Harbor statement. This conference call may contain forward-looking information and statements regarding Midstates. Any statements included in this conference call or in our press release that address activities, events or developments that Midstates expects, believes, plans, projects, estimates or anticipates will or may occur in the future are forward-looking statement. These include statements regarding reserve and production estimates, oil and natural gas prices, the impact of derivative positions, production expense estimates, cash flow estimate, future financial performance, planned capital expenditures and other matters that are discussed in Midstates filings with the SEC. These statements are based on current expectations and projections about future events, involve known and unknown risks, uncertainties and other factors, that may cause results and performance to be materially different from any future results or performance expressed or implied by these forward-looking statements. Please refer to Midstates’ filings with the SEC in the second quarter Form 10-Q that will be filed shortly for discussion of these risks. Also please note that any non-GAAP financial measures discussed in this call are defined and reconciled to the most directly comparable GAAP measure in the table in yesterday’s earnings release. I will now turn the call over to John for his comments.

Thanks, Al. Good morning, everyone, and thanks for joining us today. The second quarter of 2013 was a very busy one for all of us here at Midstates. We achieved encouraging results from a very active drilling program in each of our areas. The biggest news though, was the close of our $620 million acquisition of properties from Panther Energy and their partners giving us a new focus area in the prolific Anadarko Basin. Before we dig into specifics for the quarter. I’d like to begin some comments about the company as a whole. Since we’ve built our team in Midstates. We’ve been clear that we intended to grow the company. Our growth is critical to attracting and retaining top talent. The individuals we are bringing into the company or the kind other companies are trying to attract as well. We’ve been successful in putting a quality team together by showing them the potential to be an integral part of the growth, while continuing to expand their skill sets and to demonstrate their ability to create value for our shareholders and for themselves. This time last year, we were producing less than 8,000 BOEs per day. We were operating only in Louisiana and had just received concerning news associated with a law suit, that back in Pine Prairie, our most valuable asset. Today, after two large acquisitions we are producing around 27,000 BOEs per day from a diversified asset based in three states and have received an order from the Louisiana Supreme Court ruling unanimously in our favor on the Pine Prairie law suit. We are now firmly focused on execution of our drilling and development plans across our asset base to drive growth. The newly acquired Anadarko Basin assets provide us with low risk proven [ph] drilling targets primarily…

Thank you, John and good morning. And keeping with our normal earnings call format, I’ll discuss second quarter results some of our more recent well results and our operational plans for the third quarter. I will start with the Mid-Continent region, which includes our Mississippian Lime acreage and our newly acquired Anadarko Basin properties. As we announced on the first quarter conference call, we ramped up activity by adding a fifth rig in the Mississippian Lime at the beginning of the second quarter. For the majority of the quarter, four of the rigs were focused on drilling in our most proven area, while the fifth was used to test and hold acreage in the outlying areas. By the end of the quarter, all five rigs were drilling in the more proven area. As John discussed, we participated in the 300 square mile 3-D shoot and we were excited about incorporating the results into our decision making. We invested $77 million in spud 21 operated wells during the quarter of which five were producing, 11 were waiting in completion and five were drilling. Second quarter production in the Mississippian Lime and Hunton averaged 10,426 Boe per day of which 33% was oil and 17% was NGLs. We recorded lower than normal liquids due to approximately 40% of our gas volumes being temporarily bypassed until the new sim [ph] gas Hunton plan was operational, which was June 1st. This bypassing our gas stream resulted in short-term lower realized liquids GL’s and higher gas percentage. We expect the production spilt to be back to normal in the third quarter. We have continued to see significant improvement in our cycle times. During the second quarter, our average spud-to-rig release was below 20 days, a substantial improvement of the 26 days that we averaged during…

Good morning everyone. My comments today will focus primarily upon updating forward guidance with a few second quarter highlights. To begin, second quarter adjusted EBITDA was $65 million after adding back the $11.5 million in acquisition and transaction cost we incurred with the Panther acquisition. This is up 15%, from $57 million in the first quarter. The second quarter benefited from higher production volumes in the Mississippian and one month of production from the new Anadarko Basin properties. We reported net income of $3.3 million in the second quarter compared with a net loss of $7.9 million in the first quarter. Adjusted income for the second quarter which excludes the impact of unrealized gains or losses on derivatives as well as the Panther acquisition transaction cost was a net loss of $4.2 million. Production in the second quarter rose 21% to 19,634 Boe per day from the prior quarter, with 67% coming from Mid-continent properties, 33% from our Gulf Coast properties. In Mid-Continent our Mississippian and Hunton properties averaged 10,426 Boe per day, while our new Anadarko Basin properties contributed 2,068 Boe per day to the quarter that reflects one-month only of production for Panther in June. Our guidance for the product breakdown remains as previously provided. As Steve discussed, we did experience a lower percentage of liquids in the Mississippian and Hunton product breakdown during the second quarter, but the lower liquids waiting was temporary for the evenly mentioned. Looking ahead to the third quarter, we expect production to be in the range 27,000 to 28,000 Boe per day with about 50% from our Mississippian and Hunton properties, 30% from our Anadarko properties and 20% from Louisiana. For the full year 2013, we’ve narrowed our range by reducing the upper end of our guidance range to reflect the weather…

Thanks, Tom. As you’ve heard today we had a very busy second quarter and an even more active third quarter is well underway. As we developed our plans for later this year and into ‘14. We will incorporate the knowledge we are gaining in each of our three focused areas into our drilling and capital plans. In Louisiana, we believe we have a much better understanding of what works in the Wilcox. In the DeQuincy area, we will finalize our drilling plans after monitoring our horizontal well performance in the near term. In the Pine Prairie and Fleetwood areas, we will develop our drilling program based on the new 3-D data we required. In the Mississippian, we will update our drilling program based on significant success we’ve had with reducing cycle times and focus our drilling in those areas, where we’ve had the best results. In the Anadarko, we’ve used the knowledge we’ve gained in the Mississippian, as we ramp up activity at a measured pace to optimize drilling program in that new area. In summary, we remained 100% focused on execution of our plan to drive organic growth and I’m closely managing our capital allocation process and with that, I’ll turn it over for questions. Al?

(Operator Instructions) your first question comes from the line of Neal Dingmann with SunTrust.

Good morning, Neal. Neal Dingmann – SunTrust: Good morning, John. Say John just going through a little bit you mentioned, I’m just wondering on the Gulf Coast operation. It does sound like, you’re making some progress there and deciding and kind of what and where to drill, give me an idea on Wilcox. I know that, Musser Davis 8H-2 was down to $10 million, what are you kind of assuming, you and Tom when you look at the budget now for the remainder of the year, on these well cost. In order to be economic, I guess what are you going to need a hit on a go forward basis for some of these, maybe the upper or lower Wilcox?

Well on the Upper Wilcox First of all, the $10 million range will be economic. Obviously, we’d like the economics get better. We would expect to be able to drive those numbers back into the eights before we’re done, that North Cowards Gully especially as we get into real program. On the deeper, in the lower Wilcox obviously we’re setting another string of casing. We are going into another pressured zone. We did spend an excess of $13 million on that first South Bearhead well, but again we expect those numbers be pulling back and we’d be in the $11 million range an ongoing effort there. The well we are drilling right now, is right on schedule and we expect to TD it, in the next day or so, they’re within, I guess they’re 800 feet off TD yesterday, so we feel pretty good about it. It’s a feet [ph] at $11.5 million. Neal Dingmann – SunTrust: Okay and then just my follow-up, moving over on just the horizontals. Two things there John, on infrastructure wise, it still seems like you’re keeping up if not, ahead where you need to be there and then just, on cycle times. Can those continue to, you really had a material improvement there, what are you kind of assuming on a go forward? Can that continue to improve beyond the 20 days or kind of the rates now that you’re hoping for?

Yes, we are little bit nervous about putting the stick out there for you guys to measure us against, but I will tell you that third quarter-to-date, we are less than the number, we told you about second quarter. So we feel like, obviously this pad drilling helps a lot. When you’re drilling three or four wells off the same pad? It makes all the difference in the world. Rig measure is typically taken about five days and we change that to one day. So good run in start and obviously we don’t build three or four pads. So those are all helping with the numbers.

Yes, just Neal just another comment. The numbers that we gave you, the 20 days that is spud to rig release so that actually doesn’t pull in the pad sites. I mean, we start that talk after spud and that’s the number that John is saying in the third quarter, so far we are seeing numbers still below the 20 number, that we showed you and we will talk more about on the next call. Neal Dingmann – SunTrust: Good, that’s great to hear. Thanks, Steve.

Thank you. Neal.

Your next question comes from the line of Jeb Bachmann from Howard Wiel. Jeb Bachmann – Howard Wiel: Good morning, guys. Just want to look at the go forward EBITDA number looking into ‘14, kind of you guys make move internally probably looked at that and what you could potentially generate, just give us some idea of how you think, you can grow that number in ‘14 and kind of what’s your targeted debt to EBITDA coverage is for the end of ‘14?

Jeb, I don’t know that we are ready to give you those numbers yet. Obviously we just took these Panther assets in and if you can bear with us a little while we kind of put some thoughts together on that, we’ll be coming out with some better feeds for it, in another two or three months, but we really feel like we need to see how that’s performing before we give you a solid ‘14 estimate. Jeb Bachmann – Howard Wiel: Okay and then just looking at, you made a comment about the competitor in your commentary on potential Louisiana assets. Two questions there; one would you guys look at those assets and two; if those assets are sold for good price, would you guys look at potentially divesting your position there as well?

No that’s an interesting spin on it. I guess first of all, I would tell you that we do like their acreage, but at the same time. As you’re well aware, we’ve got our boat pretty loaded right now. So we’d have to take a look at it and obviously if it is a number that kind of blow your doors off, then you probably have to think about whether or not it made sense for you as well. Jeb Bachmann – Howard Wiel: Okay, great. Thanks, John.

Our next question comes from the line of Ron Mills from Johnson Rice. Ron Mills – Johnson Rice: Jeb just asked one of my questions. Maybe I tag along on the Wilcox, one of things; I think swift experience was higher cost and some with production issues. Is this similar to what you experienced certainly on and as you moved up to learning curve, is that something that prompts you to like their acreages as well or is it geologically similar? I’m just trying to get a sense as to comparing what happened to you initially in the horizontal program versus where you’re now having drilled the number of wells?

Yes, I think you listen to it. We went through some pain in this exercise as well and they’re not easy wells to drill, but our guys are knock on wood. We feel like, we’ve kind of got this figured out. We know what, what we are trying to – how to drill them and we think we know how to complete them, and then hopefully pick the right places. As far as the acreage goes, obviously geology is what really counts and we would argue that South Bearhead structure is a big structure and they have a significant amount of it, so yes it’s good geology, that’s where we go for first. Ron Mills – Johnson Rice: Okay good and then with Mississippian sounding like it’s kind of in the middle of the fairway in terms of well performance, good to move to the Panther properties. You’re just getting really started up there. You’re going to ramping activity, is all of the activity over the remainder of this year, going to remain focused on the Cleveland or at what point do you think, you started testing some of the other formations and then, when you do that, are your guys, as you started to kick the tires, what your guys think about the opportunity set and or opportunity for improvements in your shop versus the prior operator?

Well I think, as we described when we bought this asset. I think the Panther guys would tell you, they were cut back on capital available to them. We think it’s a great asset base that has lots of drilling potential. We have already added a fourth rig and that rig is indeed drilling in Marmaton [ph] well. So we would expect, the three rigs working on Cleveland which is clearly the core of the play. We’re pleased to see some other operators coming out, with some recent information about performance in some of that area and we hope they’re dead right because obviously that will be good news for us. Ron Mills – Johnson Rice: All right, everything else been asked. Thank you.

Thank you.

Your next question comes from the line of Brad (inaudible) from Wells Fargo.

Hi, Brad.

Thanks, John and good morning everyone. Two quick questions, I guess both focused on Louisiana. First one; John you’d mentioned you’d looking towards that Olympia Minerals well is guide for how far south the structural go in the area for North Cowards Gully. I think you put the location count for horizontals around 20 or just above 20. Just curious, I know it’s still early with only 30 days on production or so but, what are your initial thoughts on that and are you able to say now, that you’re pretty optimistic that the structures continues to the south there?

Yes, we sure are there, the Olympia Minerals is turned out to be a very good well. And I think the issue is, we are just trying not to get ahead of ourselves and so we’d like to produce it few months before we jump off and drill another one looks just like it, but we are very pleased with what we’ve seen. Steve tried to describe some of the issues that kind of goes back to one of Ron’s questions, about some of our colleagues. We end up in drilling these wells, we are learning a few tricks and we think one of them is, to kind of bring the pressure down slowly, especially as we move out of the over pressured region and so Steve talked about managing chokes and that’s one of the big effort on our part. The catch with that, of course it limits the IP that you’re going to see, but I can assure you those three wells that we’ve talked about, would absolutely have three digits on their IP, if we’d open them up, there is not any question.

Okay, great. Thank you and then second one, John you touched on it during the prepared remarks, but going over to the Fleetwood seismic shoot, have you chosen the first location and I was hoping, if you could give us more color on any potential second half activity over there in that area?

While we’ve gotten a new exploration VP that joined us during the quarter and we’ve got him working on that pretty hard. You got any comments? Greg?

Sure, Brad thanks for the question.

I didn’t tell him. He’d be on here.

Good to meet everyone. We’ve developed a number of leads on that inventory is probably six or seven opportunities. I would say, we are maturing two or three of them and it’s possible that we could be testing something later this year, but it’s more likely early Q1, 2014.

Got that, okay great. Thank you very much.

Brad, one thing just to go back to the Olympia Minerals. We drilled that well from south to north and we drilled a pilot and got a real good looking log on the South End. So that’s why we are pretty optimistic, that we still don’t know where the down dip limit is on the South. And as we looked at our 3-D, we also see kind of the same thing on the East side, which we didn’t know before.

Okay, that’s helpful. I appreciate your time. Thank you.

Thanks, Brad.

Your next question comes from the line of John Herlin [ph] from Sigeneral [ph].

Good morning, John.

Yes, how are you? Anyway, with the Gulf Coast, you’re going in a more controlled flow back manner, with the horizontals what kind of an EUR increase do you think, you might get out of these wells or is it just a matter of not having mechanical issues and then with the respect to the Wood well, what was the postmortem on those mechanical issues, what happened you just ended up or what?

Well, we are not completely sure, but we did get some formation cuttings coming into the wellbore, we went in coil tubing and couldn’t get down. So whether the casing jumped the collar or collapsed or whatever, we don’t know exactly what the answer is, but the well came on so strong, we feel very good about the location geologically and we have been, I got to say, we’ve been running the ported systems with the packers and we kind of moved away from that and you’ll see us doing all plugging going forward. We feel like putting the cemented liner may make a difference flowing them back slower may make a difference and I wish I could tell you exactly what’s solving the problems that we are attacking it from all fronts?

Okay that’s fine. Tom, you mentioned that you’re bank credit line will be reviewed in the fourth quarter. You have any idea what kind of ball park, what you think it’s going to?

I don’t have a number John, but we’ve been looking at it intently, since this is the first redetermination post the transaction with the new assets and everything. It looks very strong, I’m expecting a pretty robust redetermination, which should bolster the liquidity and one thing that helps there is the hedging transaction that we put on that will add to it as well as the program has been adding the harder board support, the borrowing base the PDP. So my expectation is that, are pretty strongly determination and it comes in right at the end of September. So we are working on it intently in fact, we’ve already started with the reservoir engineering at the lead bank and expect have a number late September, early October.

Okay, great. Last one from me. With West Gordon was it mainly spud removed?

Yes it was John.

All right. Thank you.

Thank you.

Your next question comes from the line of Pavan Hoskote from Goldman Sachs.

Good morning, Pavan. Pavan Hoskote – Goldman Sachs: Good morning, I’ve one from Brian Singer. In your opening remarks, you indicated that you recently received 3-D seismic data in your missed line play. How do you see 3-D seismic helping you reduce the volatility and IP rates from the play, given that some other operators that you’re most skeptical on the efficacy of 3-D seismic and I have a follow-up please?

Yes, I can tell you that. we are well aware the skepticism associated with it, but Midstates and Chesapeake went together and shot this fairly extensive survey covering significant part of Woods and Alfalfa Counties and all I can tell you, we are seeing things that are certainly interesting if we haven’t figured out exactly how they apply, but I think what we feel about 3-D seismic is number one, it’s going to answer a few questions for us, but what we are hoping it, it will help us avoid the problem wells as much as find the best areas. So Greg, do you have anything to add to that?

Yes, I think that’s an accurate statement John. I think I would add is, 3-D seismic is a critical tool understanding the whole reservoir characterization. So we have log data, we have some core data and now we have some 3-D seismic data that allows us to integrate all three of those pieces of data to optimize well locations and understand the play better. Pavan Hoskote – Goldman Sachs: Great, thanks John and Greg and then moving onto the Anadarko Basin. At the time of the Panther acquisition, you indicated that the Cleveland formation was your primary target. Based on any additional work you may have done since, do you have more or less confidence in the prospectivity [ph] of other zones in the area?

Yes, I think we are feeling about it, Curtis Newstrom, who’s done our Business Development kind of from the start. As we told you, we are not buying anything right now. So he’s been working full time on this transition. I might, have him make a comment or two about that.

Yes, as far as the objectives that Cleveland is the primary, the first two rigs, but we do, we’ve done a lot of studying of the other locations and we are pretty excited about the Marmaton and then stepping, we’ve had some active Cottage Grove work going on, we haven’t drilled a lot of Tonkawa at this point, which is been a lot of offset performance that’s very encouraging. So we are probably more excited about the other intervals beyond the Cleveland than originally and this is a integration point. We are still working with the Panther folks transitioning through it and trying to figure out what our long-term plan is, we picked up another rig and we will be looking at what our plans are in some of the other areas beyond the Cleveland for the next couple months.

Yes and we are obviously watching other industry activity and we are well aware, there are some pretty flashy numbers coming out there. So we hope to be mirroring those. Pavan Hoskote – Goldman Sachs: Thanks a lot.

Your next question comes from the line Stephen Shepherd from Simmons & Company.

Good morning, Stephen. Stephen Shepherd – Simmons & Company: Good morning, so the three horizontal wells that you all reported out in Louisiana for the quarter had an average 30-day rate of about 750 Boe a day. What’s at the EUR, would you anticipate a 750 Boe a day well would produce based on counting your average model tight curve in Louisiana?

Yes, I don’t think we’ve actually given you tight curve on our horizontal wells in and that’s because I guess we needed to see a little performance before we could come up with something that would tell you anything. I can tell you the one well that we’ve had on for significant amount of time that Musser Davis 8H-1 which came on in September of last year, does appear to be headed up certainly into the high fours. We don’t know what these others are going to do and hopefully, we are going to have some additional information in the future, keeping in mind what we talked about earlier. We are holding that those last three wells back. We could have float them at higher rates in that. None of them are have any gas left going through them yet. We are about to put it one of them, but these are been flowing back up the frac strings for the last several months. Stephen Shepherd – Simmons & Company: Now that’s helpful, thank you and one more if I can. At this point, how many engineered horizontal locations, do you think you all have in the Gulf Coast region?

Well, I wish I could kind of pin that down, but let me just say we think we have in excess of 20 at North Cowards Gully and still feel very good about that number. Obviously we are on flown for a while and make sure they’re going to hang in there because these are expensive wells. As South Bearhead Creek, the game there is going to be how many of those intervals can we go into, so we’ve got a test in the sea sand at the South Bearhead Creek and we are about to test the D in the lower, but at South Bearhead Creek, there is seven different pay horizons that we produce out of so. I guess, as we test these and find out how many and we can go horizontal and that will determine how many ultimate locations we can put in. Stephen Shepherd – Simmons & Company: Great information. I appreciate it, thank you.

Your next question comes from the line Ipsit Mohanty from Canaccord.

Good morning, Ipsit. Ipsit Mohanty – Canaccord: If you just look past this quarter and you spelled out why, probably the gas still was a little higher in the Miss Lime wealth. Do you still retain the overall yield mix in the Miss Lime as 40% oil, 20% NGL, 40% gas is that consistent?

Yes, we still feel pretty good about those numbers. We get out of this problem, Steve described we are putting in that new plant and so we had to bypass the plant for a significant amount of time. Ipsit Mohanty – Canaccord: And my second question is on the well cost, given the various initiatives that you’re doing. Would you still maintain the $3.7 million number for Miss Lime and probably the $2 million for the Cleveland well assets, is that consistent $2.50 million probably?

Well I think the Cleveland wells are higher than that, we would have said high two’s on the Cleveland obviously depending on how many frac jobs you put on it, but I think it’s been pretty standard to put 15 or 16 stages of fracs on those wells, so that kind of puts you $1.5 million or so just on the frac jobs. So on the other wells; our target is still to bring the cost down into the low three’s on a Mississippian well as we go along. Ipsit Mohanty – Canaccord: And then do you still plan to end the year with six rigs in your Anadarko Basin assets, is that still the plan?

We are working that right now and well I’d say, as we just put the fourth rig to work and we are confident we will put a fifth rig to work and we will see how it goes. If we are getting the kind of performance we hoped, then we’ll have to make that call, but I guess I’d say we are going to make sure; we are proceeding at the right pace. Ipsit Mohanty – Canaccord: Thanks, guys.

Thank you.

The next question comes from the line of Kyle Rose from RBC.

Hi, Kyle. Good morning. Kyle Rose – RBC: Hi guys, most of my have been asked but a just a quick housekeeping one from me. I know that your basic share count picked up a little bit this quarter; can you guys speak to that?

It would be restricted share grants probably what you’re saying. Vesting, the first initial vesting of the IPO grants, is what you’re saying. Kyle Rose – RBC: Got it. Okay, thanks guys.

Your next question comes from the line of David (inaudible) from (inaudible) Energy.

David, how are you?

Doing really well. Can you just walk through of the buildup of your $105 million of capital in the third quarter? How much of that 20, 25 new wells but how is it going to be in facilities, how much is completing the backlog of well, rebuilt in the second quarter and just kind of some granularity on that 105, into this line?

Yes, we may have to call you back but in the Miss Lime obviously most of this is around drilling, but we are also installing some gas-fired generators and continue to upgrade some of the power line, so there is some. How much we’ve got? Total of $9 million for the year, you better help me with this real quick, just a second. I’ll tell you. Okay, 86 on DMC, seismic and Lime 10 and facilities 9, that’s third quarter.

Okay, that’s helpful. Thanks guys.

That’s pretty correct.

That’s all I needed. Thanks.

Thank you, David.

And we have time for one more question and your final question comes from the line of Shawn Steven with Oppenheimer.

Hi, Shawn. Shawn Stevens – Oppenheimer: Hi good morning, thanks for taking the question. Tom or John, you guys have done a pretty good job of building your inventory, throughout the last six to nine months and really pendulant scale just over $200 million liquidity, can you talk about your appetite for any further acquisition?

I think we have made it pretty clear, we feel like our boat is pretty loaded. So you can expect us to just keep our nose down and perform on the assets we’ve got. We know that many of you investors our there that’s what you’re looking for, sure we can make that work. So that’s what you’re going to see us focused on, after we put some as one of our investors some boring quarters together, then we can have another conversations, but we know we need to perform on what we’ve got right now. Shawn Stevens – Oppenheimer: Sure that makes sense and then just looking at your CapEx guidance for the rest of the year. It would appear that, the Q4 level is going to be down sequentially from Q3 is that are you dropping a rig or what’s the driver behind that?

Yes, that would be dropping some rigs. We have told you kind of from the start, we are going to try to show some capital discipline here and the good news is, we are drilling these wells a little faster than we expected. So we are going to be able to get the number wells that we need to maintain the production rates, but we are just going to do it faster. So that’s what you’re seeing happening there. Shawn Stevens – Oppenheimer: Got you and then somewhat relatively, on the leverage side. Just over four times now, I guess on a Performa basis. I guess, first are you comfortable in that in where would you like to be?

Nothing is really changed Shawn from what we’ve talked about as far as our expectations and our targets going on in the next year and our view is that we will be down closer, if not below that three level, by the time we get to the end of 2014 and that’s what we are driving for and the efforts that you see right now are not just the growth of production, but risk mitigating in that regard you get a pretty substantial hedge program, you can see what we’d had it. That won’t be the end of that, we will follow that quarterly as the production goes up and then we are drilling in the heart of our acreage right now, to beat up that cash flow in earnings. Shawn Stevens – Oppenheimer: Okay and is there any, would you guys ever consider asset sales or anything else to kind of expedite the deleveraging plans you got one there?

Right now, we will execute on what we’ve got, we are looking at all the different alternatives and that would certainly be one, which would not have been available to us at the small portfolio we had a year ago. So what we got under our belt right now, it gives us the opportunity to look ahead and optimize it. So we will look at everything to balance that. We are clearly aware where it is and it got pretty strong target to bring it down and that’s, that will be the effort here as we go forward. Shawn Stevens – Oppenheimer: Sure, that makes sense. Thank you very much.

Thank you.

You have no further questions.

Well, thank you and no further questions. I appreciate you all joining us this morning. We are extremely busy and we hope, we are showing we are kind of hitting the numbers and we will continue to work those cost down and you’ll see better performance as we go forward. Thank you for your time, this morning.

This concludes today’s conference call. You may now disconnect.