Since there's been really an intense focus on these NGLs and how that might be able to impact shill cash flow, we wanted to bring up that we've only got about 10 to 15% and how you look at that NGLs in the portfolio which is really limited as how much that can impact our distributable cash flow. We don't hedge NGLs. We do significantly hedge oil and natural gas which I'll talk about in more detail here in a minute.
And also I wanted to point out that if you keep up with NGLs that the Conway has been hit a lot harder than Mont Belvieu and we only have about 5% of our NGLs is exposed to Conway. So we think overall a pretty oily setup especially on a revenue basis.
Let`s take a look at our annual capital program and how it's shaping up. We expect our 2012 capital program will end up with about $75 to $85 million of capital spend of which we expect about 52 million of that will be maintenance capital and we have lots of good projects in our inventory which are spread out across our asset base. What that means is we have very little concentration risk which I think is if you're sitting in investor shoes, that's actually a good thing that we don't have those really large concentrations of assets that can lead to some unpredictability. So we have a lot of projects that are spread out across our portfolio.
As I mentioned earlier, our capital is going to be spend in out two largest areas, the Permian basin and the Ark-La-Tex area. We'll spend about 80% of our capital out on a Permian. As I mentioned, its clearly more oiler out there, at least it is in our portfolio. The type of projects we have going on out here are primarily infill drilling, water flood optimization and trying to find ways to enhance our water handling capability.Read the rest of this transcript for free on seekingalpha.com