Operator: Good morning and welcome to Constellation Energy Partners' Fourth Quarter and Full Year 2010 Earnings Call. At this time all participants are in a listen-only mode. The conference is being recorded.
I will now turn the call over to Stephen R. Brunner, President and Chief Executive Officer of Constellation Energy Partners.
Stephen R. Brunner - Manager, CEO, COO: Good morning. This is Steve Brunner and Chuck Ward is here with me today. We would like to thank everyone joining us as we review our fourth quarter and full year results. Our presentation is being webcast and slides are available on our website, which is constellationenergypartners.com.
On Slide 2 is a reminder that our presentation this morning includes forward-looking statements, which are subject to certain risks and uncertainties that are described more fully in our documents on file with the SEC.
We would also like to remind everyone that we will use non-GAAP financial measures in this morning's presentation to help our unitholders and investment community to better understand our operating performance. Included with the slides available on website is an appendix that reconciles these non-GAAP financial measures to GAAP measures.
If you will turn now to Slide 3, I would like to start with an overview of our operating results for the fourth quarter and other events that have taken place since our last call.
During the quarter our average daily net production was 39.9 million equivalent cubic feet per day, which allowed us to finish 2010 right at the 15 Bcfe mid-point of our production forecast for the year. Operating costs, which include LOE, production taxes and G&A, excluding certain non-cash items came in at $3.68 per Mcfe for the quarter and $3.49 per Mcfe for the year, which was also in line with our forecast. During the quarter we generated $11.7 million in adjusted EBITDA, which allowed us to finish the year with adjusted EBITDA of $54.1 million.
We used cash flow from operations to complete 13 net wells and recompletions in the fourth quarter, while reducing debt by $7.5 million or $30 million in total debt reduction for the year. In December, we also announced that we used $5.9 million in cash on-hand to acquire interest in 36 producing oil wells in the Central Kansas Uplift in Northern Kansas and Southern Nebraska, which I'll talk a little bit more about in just a minute.
Turning now to Slide 4, for 2010 we forecast capital spending of between $10 million and $12 million, which at the time of our forecast we anticipated would be sufficient to complete about 25 net wells in recompletions while funding other infrastructure equipment and inventory requirements.
In update provided after our forecast was first made public we provided the range of 30 to 35 net wells in recompletions for 2010.With the full year capital spending of $8.5 million resulted in 31 net wells in recompletions and we finished 2010 with additional five net wells in recompletions in progress.
Our drilling efforts were focused solely in Turkey Basin where we completed 17 net wells and 14 net recompletions. Of the 17 net wells that we completed, we added six net vertical wells, one net horizontal well and 10 horizontal side tracks.