1038357--2/26/2010--PIONEER_NATURAL_RESOURCES

related topics

{gas, price, oil}

{loss, insurance, financial}

{operation, natural, condition}

{cost, regulation, environmental}

{investment, property, distribution}

{tax, income, asset}

{debt, indebtedness, cash}

{provision, law, control}

{regulation, change, law}

{acquisition, growth, future}

{capital, credit, financial}

{condition, economic, financial}

{operation, international, foreign}

{competitive, industry, competition}

{stock, price, share}

The prices of oil, NGL and gas are highly volatile. A sustained decline in these commodity prices could adversely affect the Company s financial condition and results of operations. The Company could experience periods of higher costs if commodity prices rise. Such increases could reduce the Company s profitability, cash flow and ability to complete development activities as planned. The Company s derivative risk management activities could result in financial losses. The failure by counterparties to the Company s derivative risk management activities to perform their obligations could have a material adverse effect on the Company s results of operations. Exploration and development drilling may not result in commercially productive reserves. Future price declines could result in a reduction in the carrying value of the Company s proved oil and gas properties, which could adversely affect the Company s results of operations. The Company periodically evaluates its unproved oil and gas properties and could be required to recognize noncash charges in the earnings of future periods. The Company may be unable to make attractive acquisitions, and any acquisition it completes is subject to substantial risks that could adversely affect its business. The Company may be unable to dispose of nonstrategic assets on attractive terms, and may be required to retain liabilities for certain matters. The Company periodically evaluates its goodwill for impairment and could be required to recognize noncash charges in the earnings of future periods. The Company s gas processing operations are subject to operational risks, which could result in significant damages and the loss of revenue. The Company s operations involve many operational risks, some of which could result in substantial losses to the Company and unforeseen interruptions to the Company s operations for which the Company may not be adequately insured. The Company s expectations for future drilling activities will be realized over several years, making them susceptible to uncertainties that could materially alter the occurrence or timing of such activities. The Company may not be able to obtain access to pipelines, gas gathering, transmission, storage and processing facilities to market its oil and gas production. The nature of the Company s assets exposes it to significant costs and liabilities with respect to environmental and operational safety matters. The Company s credit facility and debt instruments have substantial restrictions and financial covenants that may restrict its business and financing activities. The Company faces significant competition, and many of its competitors have resources in excess of the Company s available resources. The Company is subject to regulations that may cause it to incur substantial costs. The Company s international operations may be adversely affected by economic, political and other factors. Estimates of proved reserves and future net cash flows are not precise. The actual quantities and net cash flows of the Company s proved reserves may prove to be lower than estimated. The Company s actual production could differ materially from its forecasts. The Company may be unable to complete its plans to repurchase its common stock. A subsidiary of the Company acts as the general partner of a publicly-traded limited partnership. As such, the subsidiary s operations may involve a greater risk of liability than ordinary business operations. A failure by purchasers of the Company s production to perform their obligations to the Company could require the Company to recognize a pre-tax charge in earnings and have a material adverse effect on the Company s results of operation. The Company may not be able to obtain funding, obtain funding on acceptable terms or obtain funding under its current credit facility in the event of a deterioration of the credit and capital markets, which could hinder or prevent the Company from meeting its future capital needs. Declining general economic, business or industry conditions could have a material adverse affect on the Company s results of operations. Certain U.S. federal income tax deductions currently available with respect to oil and gas exploration and development may be eliminated as a result of future legislation. The adoption of climate change legislation by Congress or regulation by the EPA could result in increased operating costs and reduced demand for the oil, NGLs and gas the Company produces. The adoption of derivatives legislation by the United States Congress could have an adverse effect on the Company s ability to use derivative instruments to reduce the effect of commodity price risk associated with its business. Federal and state legislation and regulatory initiatives relating to hydraulic fracturing could result in increased costs and additional operating restrictions or delays. Provisions of the Company s charter documents and Delaware law may inhibit a takeover, which could limit the price investors might be willing to pay in the future for the Company s common stock.

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1038357--2/26/2010--PIONEER_NATURAL_RESOURCES_CO