Good morning and welcome to the Chart Industries 2015 Fourth Quarter and Year-End Conference 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. As a reminder, today's call is being recorded. You should have already received the company's earnings release that was issued earlier this morning. If you have not received the release, you may access it by visiting Chart's website at www.chartindustries.com. A telephone replay of today's broadcast will be available following the conclusion of the call until Thursday, March 3. The replay information is contained in the company's earnings release. Before we begin, the company would like to remind you that the statements made during this call that are not historical in fact are forward-looking statements. Forward-looking statements involve risks and uncertainties that could cause actual events or results to differ materially from those expressed or implied in the forward-looking statements. For further information about important factors that could cause actual results to differ materially from those expressed or implied in the forward-looking statements, please refer to the information regarding forward-looking statements and risk factors included in the company's earnings release and latest filings with the SEC. These filings are available through the Investor Relations section of the company's website or through the SEC website, www.sec.gov. The company undertakes no obligation to update publicly or revise any forward-looking statements. I would now like to turn the conference call over to Mr. Michael Biehl, Chart Industries' Executive Vice President and CFO. You may begin your conference. Michael F. Biehl - Executive Vice President & Chief Financial Officer: Thank you, Stephanie. Good morning, everyone. I would like to thank you for joining us today. We will begin by giving you a brief overview of our fourth…

Thank you. Our first question comes from Eric Stine with Craig-Hallum. Your line is open.

Hi Sam. Hi, Michael. Michael F. Biehl - Executive Vice President & Chief Financial Officer: Good morning. Samuel F. Thomas - Chairman, President & Chief Executive Officer: Good morning.

So, first, I wanted to touch on the Jamaica D&S award that you announced. I'm curious, is that part of the American LNG project? And I mean, I guess secondary to that, if it is, maybe an update on the liquefaction in ISO container portion of that project. Samuel F. Thomas - Chairman, President & Chief Executive Officer: It's not. But when you say American LNG, you're referring to...

The Fortress. Samuel F. Thomas - Chairman, President & Chief Executive Officer: I've seen (23:28)...

The Fortress. Samuel F. Thomas - Chairman, President & Chief Executive Officer: ...exporting LNG from – I'm sorry, Eric.

The Fortress project. Samuel F. Thomas - Chairman, President & Chief Executive Officer: It is. For that, the current plan is to deliver LNG to that terminal, primarily by ship, as opposed to by LNG ISO containers. There are plans underway to distribute from that terminal by ISO container but limited orders placements to-date, but that order is primarily for the infrastructure for the bunkering facility.

Okay. Got it. Okay. Maybe just turning to E&C, I guess on margins ex the quick-turn business, looks like margins were in that 25% to 26% range. So, first, maybe E&C margin view for the year, but then also an outlook on the quick-turn business, what you're seeing, obviously a strong fourth quarter, but what you are seeing given the current market environment, and just to confirm, I assume that's not in your guidance at all. Samuel F. Thomas - Chairman, President & Chief Executive Officer: It's correct. The two big areas of expected variability in our results for 2016 relate to the lack of clarity in energy and chemicals globally, and to distribution storage in China. Those are the markets that are currently soft, both have significant potential orders, but the near-term macroeconomic issues are ugly. So when you talk about E&C quick-ship orders, there is very little visibility. The only plus factor is that as people cut back on their budgets and maintenance, the chances of getting into problems with their plants and needing emergency replacements go up. We do see some good potential in our life cycle business offerings, and have had a number of very positive conversations with significant customers on providing them more services. They do provide quick-ship opportunities in the future. So there's lots of good stuff going on against an ugly economic environment.

Okay. And then I mean just on margins there, I know that you have been talking about margin pressure, and given the backlog, I would expect that to continue. I mean, how should we think about margins in E&C in 2016? Samuel F. Thomas - Chairman, President & Chief Executive Officer: Probably high teens to low 20%s for 2016, and D&S would be in the high 20%s, you know, consistent with how they've been and BioMed in the low 30%s.

Okay. And could you repeat D&S again? I missed that. Did you say anything? Samuel F. Thomas - Chairman, President & Chief Executive Officer: High 20%s. Yeah.

High 20%s. Okay. Just sticking with the guidance, I mean your backlog is at a level in terms of coverage of that forward guidance. I mean, is it safe to assume given that China as you said D&S in China is pretty tough. Is that a good portion of that or confidence in that would be given the industrial gas trends that you are seeing? Michael F. Biehl - Executive Vice President & Chief Financial Officer: I think that we are concerned about economic activity in China. It's always difficult to forecast the year based on the first quarter in China because of the dramatic effects of Chinese New Year coming late January, early February and preparations for it. But our view of China general activity, LNG activity, is very muted. There's not a lot of optimism in China from oil companies or from industrial customers. From a distance, it appears to be a negative growth associated with industrial production. In contrast to that, there is a lot of positive stuff where because of our sales efforts of selling more complete packages and systems in both Europe and the U.S., that we have very positive dynamics and an upside to offset that. In the case of E&C, while we still have very good prospects for these mid-scale, multiple-train LNG export terminals, there is no question that as the developers try to push these projects across the finish line, they're having trouble getting long-term offtake contracts signed because of the pressure of U.S. pricing mechanism of Henry Hub plus the tolling charge versus Asian and Middle East or Australian and Middle East oil-linked pricing, which makes it competitive with the U.S. offering at sub-$30 oil price levels. But you have to balance that with the fact that the offtakers, the potential customers, are making their decisions based on 2020 to 2030 expected price levels, which means we don't know when the contracts get signed. We do think they'll go ahead.

Right. Okay. But just on guidance, I mean, safe to say that you're discounting China, for instance, pretty heavily as part of that guidance? Samuel F. Thomas - Chairman, President & Chief Executive Officer: Correct, correct.

Okay. Thanks a lot, guys. Michael F. Biehl - Executive Vice President & Chief Financial Officer: All right.

Our next question comes from Ole Slorer with Morgan Stanley. Your line is open. Ole H. Slorer - Morgan Stanley & Co. LLC: Yeah. Thanks a lot, and thanks for some good color there. It's still not quite clear to me, Sam, how the guidance for flat revenues with backlog down 40% year-over-year is coming together. You're clearly seeing something that makes you confident in saying that. But I think you also highlighted another troubled year in E&C and a steady BioMedical. So could you just kind of help us just bridge the gap in terms of what it is that you can see that makes you confident in making this prediction? Samuel F. Thomas - Chairman, President & Chief Executive Officer: I think the high end of our range assumes reasonable results in China better than fourth quarter and first quarter order intake as it moves along and there is more clarity in China. And it also assumes that at least one of these LNG export projects goes forward in 2016, along with fairly robust results in U.S. distribution and storage and Europe. The downside of our range discounts the first two items to lower activity in China and that we don't get a U.S. export facility until 2017 or later. Ole H. Slorer - Morgan Stanley & Co. LLC: Okay, that's very helpful. So if any of the West African FLNG projects that you're on reach FID, that would be an important steppingstone for you, I presume, or anything more – yeah. Samuel F. Thomas - Chairman, President & Chief Executive Officer: That would be positive towards the upper end, yes. Ole H. Slorer - Morgan Stanley & Co. LLC: Okay. Yeah. Let's hope that will go through them. Thanks a lot. Samuel F. Thomas - Chairman, President & Chief Executive Officer: Sure.

Our next question comes from Rob Norfleet with Alembic. Your line is open.

Good morning. Thanks for taking my question. I had a – just a quick question relative to capital allocation. You guys obviously did a great job of generating cash in the quarter and maintaining a solid balance sheet. Can you kind of talk a little bit about priorities and then clearly on an M&A front, I would assume that there are a number of players that maybe aren't quite at stressed levels, but at levels that might offer an interesting entrance point for you guys and maybe you could update us a little bit on what you're seeing on M&A and what your appetite is? And then secondly, just obviously given the performance of the stock, I wanted to see if buyback has become something that you guys at a board level are looking at a little bit more seriously? Samuel F. Thomas - Chairman, President & Chief Executive Officer: First, we continue to look at buybacks. The continued uncertainty of oil pricing and how our share prices linked to that makes us reluctant to get very excited that the buybacks are the best approach for us. But we will continue to look at that. In terms of capital allocation, you can see that we're throttling back significantly on capital expenditure. There's possibility to go deeper. We have a good, a very good, modern fiscal plan around the world with significant capacity. So there is the ability to pull capital expenditures down. On the acquisition front, we continue to look for good quality assets that will let us get closer to end customers and within all of our markets. I'd say that recently the potential deals we have been looking at, the pricing levels have been becoming more attractive or more reasonable. We will approach them with caution, but we won't stretch our balance sheet or liquidity at this point in the cycle because we look forward that this could be a extended down period of two or three years' duration. And we intend to be able to fight, live and fight another day regardless of how brutal it is. Having said that, if we can make acquisitions that we're confident will be cash generative and accretive, we will jump into them with excitement.

Great, I appreciate that. Secondly I just wanted to ask a little bit, obviously you guys have done a lot to reduce the cost structure mostly through head count, but there have obviously some shuddering of capacity. Can you kind of just discuss what other options are available? And I guess what I'm really getting to here is at what point do we start cutting into the bone to some extent as it relates to continuing to scale down the cost structure to accommodate obviously a lower volume environment? Samuel F. Thomas - Chairman, President & Chief Executive Officer: We're experienced at running this playbook. And we will – we work very hard at cutting expenses that won't prevent us from reacting quickly to an uptake because it's been our experience that while it's hard to call when upturns come, when opportunities present themselves, there's an enormous benefit to being prepared and being able to react quickly. So, we continue to spend our time working on just those things. What expenses are nice to have, but aren't going to give us the opportunity to react quickly to customer opportunities. And we will preserve that capability throughout while continuing to look to cut non-value added activity. We spent a lot of our time doing just that.

Okay, great. And my last question and I will get back into the queue. Just quickly you guys have over the last several quarters, there have been obviously a couple of alliances forged obviously with the Cheniere projects, the Parallax, and the Louisiana LNG project looking to use some of the small scale liquefaction, and then recently obviously the Tellurian investments entity that Charif [Souki] helped start was also – looked to choose using your liquefaction capabilities. I know you made comments about the North American markets, the issues involved with getting off-takes being prohibited, but I guess one question I wanted ask you is as some of these large projects that were originally going to use some of the cascading larger scale cobalt technology, given the cost environment and the need for people to bring cost down, is there an opportunity for you guys to maybe sneak in and look at the potentially retrofit some of these existing projects that may want to scale back and use a smaller scale technology which clearly would reduce the cost of the program aside from just the Greenfield opportunities that are out there? Samuel F. Thomas - Chairman, President & Chief Executive Officer: Yeah. We continue to put a lot of effort into this because we think that in the future, it will pay off and we continue to work at how to cost optimize our offering to make it even more attractive in this environment. There are – in addition to the projects you mentioned of midscale multi-trained, there are conversations with several of the existing base load facilities that in view of them chasing smaller off-take agreements less than the 4.5 million or 5 million ton of getting another train, there are several of these facilities that we're having discussions with putting 0.5 million or 1 million or 1.5 million ton of capacity onto those sites, but those are preliminary discussions.

Great. Thanks for your time. I appreciate it.

Our next question comes from Rob Brown with Lake Street Capital. Your line is open.

Good morning, thanks for taking my question. Michael F. Biehl - Executive Vice President & Chief Financial Officer: Hi, Rob.

Hi. Just wanted to understand the margins in the BioMedical this year. I think guiding for margins stepping up from the Q4 level, what's structurally going on there in terms of the BioMed business get back to that low 30s margin? Samuel F. Thomas - Chairman, President & Chief Executive Officer: It's really, the challenge there is predicting mix. Within – particularly within the respiratory segment there's significant differences in the gross margin between stationary concentrators, portable concentrators and liquid oxygen therapy. There is a general trend towards more stationary concentrators and more portable oxygen concentrators away from liquid oxygen on a global basis. But there are still government tenders that come in particularly in Europe for liquid oxygen. And so the variation in gross margins is associated with changing sales quarter-on-quarter. In general, there is downward pressure because the sales that are growing our in lower margin products, but we expect to see a transition of being able to grow portable oxygen concentrator sales, which have more attractive margins, which all goes to say that we have a hard time predicting exactly where we're going to be.

Okay, great. Thank you for the color. And then, in your backlog, what's the current amount of China revenue dollars in your backlog? Samuel F. Thomas - Chairman, President & Chief Executive Officer: Bear with us just a moment. Michael F. Biehl - Executive Vice President & Chief Financial Officer: Bear with us while we... Samuel F. Thomas - Chairman, President & Chief Executive Officer: It'd be roughly 23% of the D&S backlog right now, Rob.

Okay. And you're comfortable, you've sold out the weak parts of that, or... Samuel F. Thomas - Chairman, President & Chief Executive Officer: Yes, we have.

Okay, good. I'll turn it over. Thank you.

Our next question comes from Chase Jacobson with William Blair. Your line is open. Chase A. Jacobson - William Blair & Co. LLC: Hi, good morning. Samuel F. Thomas - Chairman, President & Chief Executive Officer: Good morning, Chase. Michael F. Biehl - Executive Vice President & Chief Financial Officer: Morning. Chase A. Jacobson - William Blair & Co. LLC: So, I just wanted to ask about the cost savings again. Because throughout the year, you've talked about continuing to look for cost savings and you've increased your cost savings target quite a bit, which I think is good in this environment, but looking at this 2016, with what's not that much of a revenue decline in your guidance, you have pretty big decrementals. I understand the pricing, but how quickly can you act on incremental cost savings to stop that decremental from being such a factor as we look out beyond 2016 if the award don't pick up? Samuel F. Thomas - Chairman, President & Chief Executive Officer: We can act quickly, and we can take lots of cost out. There are issues of executing on existing backlog, and also the desire to maintain capability for potential orders if they come through that can be quite transformative. So it's a continued balance. I think if you go back to our last quarter comments, as the environment deteriorated in the fourth quarter, we have taken bigger cost cuts than we had indicated we were going to. We continue to address that on a week-by-week basis. Chase A. Jacobson - William Blair & Co. LLC: Okay. So then from a strategic standpoint, you know, not just for Chart, but across the industrial landscape, growth has been difficult. And I'm just curious, as you look at your business, outside of the end…

Our next question comes from Greg McKinley with Dougherty & Company. Your line is open. Gregory John McKinley - Dougherty & Co. LLC: Yes, thank you. I guess a little bit of a follow-up on the prior question. In terms of guidance, maybe could you help us understand the range of order intake that is assumed between $900 million and $1 billion of revenue? What type of order intake is needed to achieve that? And my sense is you had indicated it might be a little more, or it is back end loaded, I don't know if that's more so than normal, or maybe some color around that would be helpful. Samuel F. Thomas - Chairman, President & Chief Executive Officer: There's not a direct correlation between order intake and what sales are achieved in 2016 based on the timing of order intake. Clearly, we need order intake in the first three quarters in order to achieve the upper end of the full-year sale. The fact that our backlog is weak means that essentially that our sales and profitability are back-end loaded. Gregory John McKinley - Dougherty & Co. LLC: Okay. Michael, for the guidance that you gave for 2016, could you talk to us a little bit what kind of operating cash flow and free cash flow do you think gets generated both at the high end and the low end of that range? Maybe just free cash flow would be helpful. Michael F. Biehl - Executive Vice President & Chief Financial Officer: I would say on the high end of the range, it's between $100 million to $120 million of operating cash flow and then if you – we have very little in terms of debt payments, in there there's some China debt we would pay down, roughly…

Our next question comes from Pavel Molchanov with Raymond James. Your line is open. Pavel S. Molchanov - Raymond James & Associates, Inc.: Hey guys. Thanks for taking the question. Because I am a little late getting on the call, you might have touched on this already. Last November, you announced I believe it was a $40 million order associated with the Louisiana LNG export project. Does any of that revenue include – is it included in your guidance for 2016? Samuel F. Thomas - Chairman, President & Chief Executive Officer: We had addressed that earlier in the call. The upper end of our guidance range assumes that we will be executing on that project in the second half of the year while we're in . Pavel S. Molchanov - Raymond James & Associates, Inc.: Got it. Okay. I appreciate you repeating that for me. And then second, your backlog as of December 31, does that include anything associated with PetroChina any longer? Samuel F. Thomas - Chairman, President & Chief Executive Officer: (55:41). Pavel S. Molchanov - Raymond James & Associates, Inc.: Specifically PetroChina, the company? Samuel F. Thomas - Chairman, President & Chief Executive Officer: Yes. There are PetroChina's order is in there, it's relatively less than $10 million and there were things that had scheduled deliveries this year. Pavel S. Molchanov - Raymond James & Associates, Inc.: Okay, understood. Thanks again. Samuel F. Thomas - Chairman, President & Chief Executive Officer: Thank you.

Our next question comes from David Cohen with Midwood Capital. Your line is open.

Yeah. My question was answered. Thank you. Samuel F. Thomas - Chairman, President & Chief Executive Officer: Thank you.

Thank you. Our next question comes from Anjali Voria with Thompson Research Group. Your line is open.

All right. Good morning. I was wondering if you could provide some clarity on the D&S backlog as well as the orders that are coming in, in terms of composition between industrial and LNG. Samuel F. Thomas - Chairman, President & Chief Executive Officer: The industrial orders with respect to North America and Europe have been strong in both, although there's been a decline in U.S. dollar terms from Europe. But in euro terms, their orders have been steady, with perhaps slight year on year increases. I think that's primarily reflective of increased market share and success in selling larger system projects. With respect to LNG, they are down slightly, but still healthy in North America and Europe. In the case of China, LNG has seen the biggest decline and is currently very soft. Industrial gas orders are off on the 10% to 15% range. So, more of the decline is in LNG.

Sorry it's interrupted, but is industrial backlogs are still 80% of the total reported backlog, or is it higher than that at this juncture? I want to say last quarter in Q3 you mentioned industrial gas was about... Samuel F. Thomas - Chairman, President & Chief Executive Officer: I would say that the composition is comparable, because while there has been less activity, there has been several significant size orders related to LNG. So the mix overall, is comparable because of the adjustments we've taken in reducing the – particular the LNG backlog in China, the quality is also better.

Okay, thanks. That's helpful. Secondly, just to ask a question on your cost actions in a slightly different way. When you look at the range of your guidance, if you were at the low end of that range, would that require further cost actions, further restructuring programs, or do you think the level that you've done today would be enough to keep the business at a appropriate size? Samuel F. Thomas - Chairman, President & Chief Executive Officer: There would likely be further cost reductions. The current plan for the upside of the range actually includes with respect to E&C increasing head count to execute on LNG projects. If those don't go forward, then we wouldn't be adding those. So relative to the guidance, there would be – yes, there would be further reductions or no adds or a combination of both, I should say.

Okay. Thanks. And then the short lead-time projects within E&C, what is the contribution from that on the revenue line? Samuel F. Thomas - Chairman, President & Chief Executive Officer: About $12 million.

Okay. Thank you very much.

And I'm showing no further questions. I will now turn the call back over to Sam Thomas for closing remarks. Samuel F. Thomas - Chairman, President & Chief Executive Officer: Okay. Thanks very much, everyone, for listening in our call. As I'm sure you've heard, we're working in a challenging environment but taking the position that we are a fundamentally strong company that has the ability and the experience to handle a downturn like this and come out stronger when optimism returns and the market starts to turn. At the same time, we continue to look for acquisitions that will fundamentally improve our position in the marketplace. So we look forward to the future with confidence. Thank you very much for joining the call today.

Thank you, ladies and gentlemen. That does conclude today's conference. You may all disconnect and, everyone, have a great day.