1022646--2/26/2010--ULTRA_PETROLEUM

related topics

{gas, price, oil}

{operation, natural, condition}

{cost, regulation, environmental}

{acquisition, growth, future}

{loss, insurance, financial}

{regulation, change, law}

{competitive, industry, competition}

{investment, property, distribution}

Competitive industry conditions may negatively affect our ability to conduct operations. Factors beyond our control affect our ability to effectively market production and may ultimately affect our financial results. Our derivative transactions may limit our gains and expose us to other risks. A decrease in oil and natural gas prices may adversely affect our results of operations and financial condition. If the United States experiences a sustained economic downturn, natural gas prices may fall, which may adversely affect our results of operations. Compliance with environmental and other government regulations could be costly and could negatively impact our production. Climate Change Legislation or regulations restricting emissions of greenhouse gasses could result in increased operating costs and reduced demand for the oil and gas we produce. Significant physical effects of climatic change have the potential to damage our facilities, disrupt our production activities and cause us to incur significant costs in preparing for or responding to those effects. Federal legislation and state legislative and regulatory initiatives relating to hydraulic fracturing could result in increased costs and additional operating restrictions or delays. The adoption of derivatives legislation or regulations related to derivative contracts could have an adverse impact on our ability to hedge risks associated with our business. We may not be able to obtain funding on acceptable terms or at all. We may not be able to replace our reserves or generate cash flows if we are unable to raise capital. We will be required to make substantial capital expenditures to develop our existing reserves and to discover new oil and gas reserves. Our operations may be interrupted by severe weather or drilling restrictions, particularly in the Rocky Mountain region. Unless we are able to replace reserves which we have produced, our cash flows and production will decrease over time. We are exposed to operating hazards and uninsured risks that could adversely impact our results of operations and cash flow. There are risks associated with our drilling activity that could impact our results of operations. Our decision to drill a prospect is subject to a number of factors which may alter our drilling schedule or our plans to drill at all. If oil and natural gas prices decrease, we may be required to take write-downs of the carrying value of our oil and gas properties. We have limited control over activities conducted on properties we do not operate. We may fail to fully identify problems with any properties we acquire.

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1022646--2/26/2010--ULTRA_PETROLEUM_CORP