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H.S. sophomore Avg
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New words:
accrued, anniversary, appraisal, arrive, card, CODM, deciding, decision, deductible, essentially, expansion, February, fiscal, flat, incremental, individual, instance, jurisdiction, KeyBanc, letter, London, maker, mark, meaningful, Mizuho, multiplying, nondeductible, nontaxable, owner, pending, profit, rebate, reconciling, reversal, RRC, salt, segment, showing, Simplification, StatementsNote, SWD, tabular, temporary, transparency, treasury, underwritten, variety
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clarified, exiting, finance, interpretive, involve, limitation, necessitated, payout, performed, retrospective, unexpected
Financial report summary
?Risks
- Item 1A: Risk Factors
- Part of our strategy involves using some of the latest available horizontal drilling and completion techniques, which involve additional risks and uncertainties in their application compared to vertical drilling.
- If our assessments of purchased properties are materially inaccurate, it could have a significant impact on future operations and earnings.
- Prospects that we decide to drill may not yield oil or natural gas in commercially viable quantities.
- A substantial percentage of our proved properties are undeveloped; therefore, the risk associated with our success is greater than would be the case if a substantial majority of our properties were categorized as proved developed.
- Hedging transactions may expose us to risk of financial loss.
- We may be adversely affected by natural disasters, pandemics and other catastrophic events, and by man-made problems such as terrorism, that could disrupt our business operations.
- The loss of key members of management or failure to attract and retain other highly qualified personnel could affect the Company’s business results.
- A substantial or extended decline in oil and natural gas prices may adversely affect our business, financial condition and results of operations and our ability to meet our capital expenditure obligations and financial commitments.
- Drilling for and producing oil and natural gas are high risk activities with many uncertainties that could adversely affect our business, financial condition and results of operations.
- Decreases in oil and natural gas prices may require us to take write-downs of the financial carrying values of our oil and natural gas properties which could negatively impact the trading value of our common stock.
- Decreases in oil and natural gas prices may affect our bank borrowing base, potentially requiring earlier than anticipated debt repayment, which could negatively impact our financial position, results of operations and the trading value of our common stock.
- Reserve estimates depend on many assumptions that may turn out to be inaccurate. Any material inaccuracies in these reserve estimates or underlying assumptions will materially affect the quantities and present value of our reserves.
- We may incur substantial losses and be subject to substantial liability claims as a result of our oil and natural gas operations.
- Unless we replace our oil and natural gas reserves, our reserves and production will decline as reserves are produced.
- Competition is intense in the oil and natural gas industry.
- If our access to markets is restricted, it could negatively impact our production, our income and our ability to retain our leases.
- Many of our properties are in areas that may have been partially depleted or drained by offset wells and certain of our wells may be adversely affected by actions we or other operators may take when drilling, completing, or operating wells that we or they own.
- Multi-well pad drilling may result in volatility in our operating results.
- Extreme weather conditions, which could become more frequent or severe due to multiple factors, could adversely affect our ability to conduct drilling, completion and production activities in the areas where we operate.
- Restrictions on drilling activities intended to protect certain species of wildlife may adversely affect our ability to conduct drilling activities in some of the areas where we operate.
- Our operations are substantially dependent on the availability, use and disposal of water. New legislation and regulatory initiatives or restrictions relating to water disposal wells could have a material adverse effect on our future business, financial condition, operating results and prospects.
- We are subject to complex laws that can affect the cost, manner, or feasibility of doing business.
- Our operations may incur substantial liabilities to comply with environmental laws and regulations.
- Our operations are subject to a series of risks arising out of the perceived threat of climate change that could result in increased operating costs, limit the areas in which we may conduct oil and natural gas exploration and production activities, and reduce demand for the oil and natural gas we produce.
- Changes in tax laws or the interpretation thereof or the imposition of new or increased taxes or fees may adversely
- We have significant indebtedness.
- We may be unable to access the equity or debt capital markets to meet our obligations.
- We continue to be impacted by inflationary pressures on our operating costs and capital expenditures.
- We rely on computer and telecommunications systems, and failures in our systems or cyber security attacks or breaches could result in information theft, data corruption, disruption in operations and/or financial loss.
- We have recently registered shares of our common stock for possible resale by certain of our stockholders, resulting in significant "market overhang" of our common stock.
- The market price of our common stock may be volatile, which could cause the value of your investment to decline.
- We currently do not pay cash dividends on our common stock.
- Our board of directors can, without stockholder approval, cause preferred stock to be issued on terms that could adversely affect common stockholders.
- Provisions under Nevada law could delay or prevent a change in control of our company, which could adversely affect the price of our common stock.
Management Discussion
- In the first quarter of 2024, in the Northwest Shelf, the Company drilled and completed two 1-mile horizontal wells (one with a working interest of 99.5% and the other with a working interest of 100%). In the Central Basin Platform, the Company drilled and completed nine wells, all with a working interest of 100%. Specifically, in our Andrews County acreage the Company drilled and completed three 1-mile horizontal wells, in the Ector County acreage the Company drilled three vertical wells, and in the Crane County acreage the Company drilled and completed three vertical wells. Additionally, within the Central Basin Platform, the Company drilled and completed one salt water disposal ("SWD") well in Crane County.