110430--3/1/2006--FRONTIER_OIL_CORP

related topics

{gas, price, oil}

{operation, natural, condition}

{cost, operation, labor}

{cost, regulation, environmental}

{stock, price, operating}

{customer, product, revenue}

{product, liability, claim}

{cost, contract, operation}

{capital, credit, financial}

Crude oil prices and refining margins significantly impact our cash flow and have fluctuated substantially in the past. Our profitability is affected by crude oil differentials, which increased significantly in 2005 over 2004 levels. External factors beyond our control can cause fluctuations in demand for our products, our prices and margins, which may negatively affect income and cash flow. We are dependent on others to supply us with substantial quantities of raw materials. Our Refineries face operating hazards, and the potential limits on insurance coverage could expose us to significant liability costs. We face substantial competition from other refining and pipeline companies, and an increase in competition in the markets in which we sell refined product could adversely affect our sales and profitability. Our operating results are seasonal and generally lower in the first and fourth quarters of the year. Our operations involve environmental risks that may require us to make substantial capital expenditures to remain in compliance or that could give rise to material liabilities. We could incur substantial costs or disruptions in our business if we cannot obtain or maintain necessary permits and authorizations. Hurricanes along the Gulf Coast could disrupt our supply of crude oil and our ability to complete capital improvement projects in a timely manner. We may have labor relations difficulties with some of our employees represented by unions. Terrorist attacks and threats or actual war may negatively impact our business.

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110430--3/1/2006--FRONTIER_OIL_CORP_/NEW/