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Financial report summary
?Risks
- Business and Operational Risks
- Commodity prices fluctuate widely, and low prices for an extended period would likely have a material adverse impact on our business.
- Future commodity price declines may result in write-downs of the carrying amount of our oil and gas properties, which could materially and adversely affect our results of operations.
- Drilling, completing and operating oil and natural gas wells are high-risk activities.
- Our operations present hazards and risks that require significant oversight and are subject to numerous possible disruptions from unexpected events.
- Our proved reserves are estimates. Any material inaccuracies in our reserves estimates or underlying assumptions could cause the quantities and net present value of our reserves to be overstated or understated.
- Our future performance depends on our ability to find or acquire additional oil and natural gas reserves that are economically recoverable.
- The development of our proved undeveloped reserves may take longer and may require higher levels of capital expenditures than we currently anticipate.
- Strategic determinations, including the allocation of capital and other resources to strategic opportunities, are challenging, and our failure to appropriately allocate capital and resources among our strategic opportunities may adversely affect our financial condition and reduce our growth rate.
- Our ability to sell our oil, natural gas and NGL production and the prices we receive for our production could be materially harmed if we fail to obtain adequate services such as gathering, transportation and processing.
- Acquired properties may not be worth what we pay to acquire them, due to uncertainties in evaluating recoverable reserves and other expected benefits, as well as potential liabilities.
- The integration of the businesses and properties we have acquired or may in the future acquire could be difficult and may divert management’s attention away from our existing operations.
- We have limited control over the activities on properties we do not operate.
- Many of our properties are in areas that may have been partially depleted or drained by offset (i.e., neighboring) 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 may lose leases if production is not established within the time periods specified in the leases or if we do not maintain production in paying quantities.
- Cyber-attacks targeting our systems, the oil and gas industry systems and infrastructure or the systems of our third-party service providers could adversely affect our business.
- Risks Related to our Indebtedness, Hedging Activities and Financial Position
- We have substantial capital requirements, and we may not be able to obtain needed financing on satisfactory terms, if at all.
- Risks associated with our debt and the provisions of our debt agreements could adversely affect our business, financial position and results of operations.
- We may have hedging arrangements that expose us to risk of financial loss and limit the benefit to us of increases in prices for oil and natural gas.
- Legal, Regulatory and Governmental Risks
- ESG concerns and negative public perception regarding us and our industry could adversely affect our business operations and the price of our common stock, debt securities and preferred stock.
- Federal, state and local laws and regulations, judicial actions and regulatory initiatives related to oil and gas development and the use of hydraulic fracturing could result in increased costs and operating restrictions or delays and adversely affect our business, financial condition, results of operations and cash flows.
- Oil and natural gas production operations, especially those using hydraulic fracturing, are substantially dependent on the availability of water. Our ability to produce oil and natural gas economically and in commercial quantities could be impaired if we are unable to acquire adequate supplies of water for our operations or are unable to dispose of or recycle the water we use economically and in an environmentally safe manner.
- The adoption of climate change legislation or regulations restricting emission of greenhouse gases could result in increased operating costs and reduced demand for the oil and gas we produce.
- We are subject to various climate-related risks.
- We are subject to a number of privacy and data protection laws, rules and directives (collectively, “data protection laws”) relating to the processing of personal data.
- Tax law changes could have an adverse effect on our financial position, results of operations and cash flows.
- Risks Related to our Corporate Structure
- Provisions of Delaware law and our bylaws and charter could discourage change-in-control transactions and prevent stockholders from receiving a premium on their investment.
- The personal liability of our directors for monetary damages for breach of their fiduciary duty of care is limited by the Delaware General Corporation Law and by our charter.
- The exclusive-forum provision contained in our bylaws could limit our stockholders’ ability to obtain a favorable judicial forum for disputes with us or our directors, officers or other employees.
- The loss of key personnel could adversely affect our ability to operate.
- Competition in our industry is intense, and many of our competitors have substantially greater financial and technological resources than we do, which could adversely affect our competitive position.
- The declaration, payment and amounts of future dividends distributed to our stockholders and the repurchase of our common stock will be uncertain.