Jason Stipp: Recent data that we have on your portfolio hows that you had, Anadarko and Hess in Exxon. And I think you had been buying some more Exxon recently and then selling some Anadarko and the Hess, if I remember correctly from the Analyst Report. The reason that I want to ask you about this, obviously, is the BP spill, and the issues that might surround that which may include increased regulation for some of these energy and exploration firms. Possibly higher costs because of different ways that they might have to drill because of this.
How do you think these might impact the industry? And do you have any concerns as far as energy holdings that investors might have, that they should may be have on their radar because of this big spill that we have had?
Kevin Preloger: We think by and large that the cost of energy is going to go up, both due to the regulatory impacts that you mentioned, as well as the higher operating costs and expenses to get the resources out of the ground. So both oil and gas prices, we think, would go up over time.
However, I think those that own the assets, that have the assets in the ground, are well positioned. Because that asset will be worth a lot more, particularly as emerging markets continue their desire to have oil and gas products.
On the flip side, I think given what is going on in the gulf right now... If the spill is contained, I think that the moratorium there will be negative near term for some of the drillers in the exploration companies. But longer term in other areas of the world. Whether you are on land or in Brazil or in the Middle East, I think those prospects look better because those are areas that I think will continue to see exploration and production.
Stipp: Always good to keep an eye on that longer term and what the prospects might be there.
Preloger: Correct, and I think when we are looking at our risk rewards, there are lot of attractive names in the energy space right now, and this could be an opportunity.
Stipp: OK. Well, thanks so much for joining us today Kevin.
Preloger: Thank you.
Stipp: For Morningstar, I am Jason Stipp. Thanks for watching.