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New words:
al, allegedly, Andre, Barucic, Budd, Camille, captioned, Carole, complaint, eleventh, enjoin, Eric, Ertan, false, John, mailing, Manoj, midpoint, misleading, Mohammad, Murray, omitted, proxy, Sabatini, Sarrasin, Sawyer, Shiva, Siddiqui, smaller, Southern, Stein, Umland, vigorously, violated
Removed:
LLS, Louisiana, Sweet
Financial report summary
?Risks
- Oil and gas prices are highly volatile, and low oil and gas prices or further price decreases will negatively affect our financial position, planned capital expenditures and results of operations.
- Oil and gas drilling is a speculative activity and involves numerous risks and substantial and uncertain costs that could adversely affect us.
- We may not adhere to our proposed drilling schedule.
- Our reserve data and estimated discounted future net cash flows are estimates based on assumptions that may be inaccurate and are based on existing economic and operating conditions that may change in the future.
- We depend on successful exploration, development and acquisitions to maintain reserves and revenue in the future.
- Our future acquisitions may yield revenues or production that varies significantly from our projections.
- Holders of the Preferred Stock have rights that may restrict our ability to operate our business or be adverse to holders of our common stock.
- We participate in oil and gas leases with third parties and these third parties may not be able to fulfill their commitments to our projects.
- Certain of our undeveloped leasehold assets are subject to leases that will expire over the next several years unless production is established on units containing the acreage or we timely exercise our contractual rights to extend the terms of such leases by continuous operations or the payment of lease extension payments or delay rentals.
- We have substantial capital requirements that, if not met, may hinder operations.
- If our access to markets is restricted, it could negatively impact our production, our income and ultimately our ability to retain our leases. Our ability to sell oil and natural gas and receive market prices for our oil and natural gas may be adversely affected by pipeline and gathering system capacity constraints, including insufficient transportation capacity in the Delaware Basin.
- Interruption to crude oil and natural gas gathering systems, pipelines and transportation and processing facilities we do not own could result in the loss of production and revenues.
- Instability in the global financial system or in the oil and gas industry sector may have impacts on our liquidity and financial condition that we currently cannot predict.
- The risks associated with our debt and the provisions of our debt agreements could adversely affect our business, financial position and results of operations.
- The borrowing base under our revolving credit facility may be reduced below the amount of borrowings outstanding under such facility.
- We may face difficulties in securing and operating under authorizations and permits to drill, complete or operate our wells.
- Many of our properties are in areas that may have been partially depleted or drained by our existing wells or other offset wells and certain of our wells may be adversely affected by actions other operators may take when drilling, completing, or operating wells that they own.
- We have only limited experience drilling wells in the Delaware Basin and less information regarding reserves and decline rates in these shale formations than in some other areas of our operations.
- If we are unable to acquire adequate supplies of water for our operations or are unable to dispose of the water we use at a reasonable cost and within applicable environmental rules, our ability to produce oil and gas commercially and in commercial quantities could be impaired.
- We may not increase our acreage positions in areas with exposure to oil, condensate and NGLs.
- Restricted land access could reduce our ability to explore for and develop oil and gas reserves.
- We face strong competition from other oil and gas companies.
- We may not be able to keep pace with technological developments in our industry.
- Part of our strategy involves drilling existing or emerging shale plays using some of the latest available seismic, horizontal drilling and completion techniques. The results of our planned exploratory and delineation drilling in these plays are subject to drilling and completion technique risks, and drilling results may not meet our expectations for reserves or production. As a result, the value of our undeveloped acreage could decline if drilling results are unsuccessful.
- We are subject to various environmental risks and governmental regulations, including those relating to benzene emissions, hydraulic fracturing and global climate change, and future regulations may be more stringent resulting in increased operating costs and decreased demand for the oil and gas that we produce.
- We face various risks associated with the trend toward increased anti-development activity.
- Our operations are subject to various operating and other casualty risks that could result in liability exposure or the loss of production and revenues.
- We may not have enough insurance to cover all of the risks we face.
- We conduct a portion of our operations through a joint venture, which subjects us to additional risks that could have a material adverse effect on the success of these operations, our financial position and our results of operations.
- We cannot control the activities on properties we do not operate.
- Our business may suffer if we lose key personnel.
- We may experience difficulty in achieving and managing future growth.
- We may continue to enter into or exercise commodity derivative transactions to manage the price risks associated with our production, which may expose us to risk of financial loss and limit the benefit to us of increases in prices for oil and gas.
- Periods of high demand for oil field services and equipment and the ability of suppliers to meet that demand may limit our ability to drill and produce our oil and gas properties.
- If crude oil and natural gas prices decline to near or below the low levels experienced in 2015 and 2016 we could be required to record additional impairments of proved oil and gas properties that would constitute a charge to earnings and reduce our shareholders’ equity.
- A valuation allowance on a deferred tax asset could reduce our earnings.
- The taxation of independent producers is subject to change, and federal and state proposals being considered could increase our cost of doing business.
- We may incur losses as a result of title deficiencies.
- The threat and impact of terrorist attacks, cyber attacks or similar hostilities may adversely impact our operations.
- Certain anti-takeover provisions may affect your rights as a shareholder.
- Failure to adequately protect critical data and technology systems and the impact of data privacy regulation could materially affect us.
Management Discussion
- The increase in production volumes for the three and nine months ended September 30, 2019 compared to the three and nine months ended September 30, 2018 is primarily due to production from new wells in the Eagle Ford and Delaware Basin, partially offset by normal production decline.
- The decrease in revenues for the three and nine months ended September 30, 2019 compared to the same periods in 2018 is primarily due to lower crude oil, NGL, and natural gas prices, partially offset by higher crude oil and natural gas production.
- The increase in lease operating expenses for the three and nine months ended September 30, 2019 compared to the three and nine months ended September 30, 2018 is primarily due to costs associated with increased production and increased workover costs principally on wells acquired in the Devon Acquisition. The increase in lease operating expense per Boe for the three months ended September 30, 2019 compared to the three months ended September 30, 2018 is primarily due to the workover costs described above partially offset by increased crude oil production. Lease operating expense per Boe for the nine months ended September 30, 2019 remained relatively flat compared to the nine months ended September 30, 2018.