1060990--3/1/2006--QUICKSILVER_RESOURCES

related topics

{gas, price, oil}

{debt, indebtedness, cash}

{acquisition, growth, future}

{operation, natural, condition}

{loss, insurance, financial}

{operation, international, foreign}

{provision, law, control}

{cost, regulation, environmental}

{control, financial, internal}

{personnel, key, retain}

{competitive, industry, competition}

{stock, price, share}

{stock, price, operating}

{customer, product, revenue}

Because we have a limited operating history in certain of our operating areas, our future operating results are difficult to forecast, and our failure to sustain profitability in the future could adversely affect the market price of our common stock. Natural gas and crude oil prices fluctuate widely, and low prices could have a material adverse impact on our business. If natural gas or crude oil prices decrease or our exploration and development efforts are unsuccessful, we may be required to take writedowns. Reserve estimates depend on many assumptions that may turn out to be inaccurate and any material inaccuracies in these reserve estimates or underlying assumptions may materially affect the quantities and present value of our reserves. Our production is concentrated in a small number of geographic areas. Our Canadian operations present unique risks and uncertainties, different from or in addition to those we face in our domestic operations. We may have difficulty financing our planned growth. We are vulnerable to operational hazards, transportation dependencies, regulatory risks and other uninsured risks associated with our activities. We may be unable to make additional acquisitions of producing properties or successfully integrate them into our operations. The failure to replace our reserves could adversely affect our production and cash flows. We cannot control the activities on properties that we do not operate. We cannot control the operations of gas processing and transportation facilities we do not own or operate. The loss of key personnel could adversely affect our ability to operate. Competition in our industry is intense, and we are smaller and have a more limited operating history than most of our competitors. Several companies have entered into purchase contracts with us for a significant portion of our production and if they default on these contracts, we could be materially and adversely affected. Hedging our production may result in losses. Delays in obtaining oil field equipment and increases in drilling and other service costs could adversely affect our ability to pursue our drilling program and our results of operations. Our activities are regulated by complex laws and regulations, including environmental regulations that can adversely affect the cost, manner or feasibility of doing business. We have a substantial amount of debt and the cost of servicing that debt could adversely affect our business; and such risk could increase if we incur more debt. Our senior secured revolving credit facilities and second lien mortgage notes restrict our ability and the ability of some of our subsidiaries to engage in certain activities. A small number of existing stockholders control our company, which could limit your ability to influence the outcome of stockholder votes. A large number of our outstanding shares and shares to be issued upon exercise of our outstanding options may be sold into the market in the future, which could cause the market price of our common stock to drop significantly, even if our business is doing well. Our amended and restated certificate of incorporation, restated bylaws and stockholder rights plan contain provisions that could discourage an acquisition or change of control without our board of directors approval.

Full 10-K form ▸

1060990--3/1/2006--QUICKSILVER_RESOURCES_INC