1127342--3/14/2008--GMX_RESOURCES

related topics

{gas, price, oil}

{stock, price, share}

{cost, regulation, environmental}

{debt, indebtedness, cash}

{stock, price, operating}

{provision, law, control}

{control, financial, internal}

{loss, insurance, financial}

{cost, operation, labor}

{customer, product, revenue}

Our future performance depends upon our ability to obtain capital to find or acquire additional oil and natural gas reserves that are economically recoverable. We have not paid dividends and do not anticipate paying any dividends on our common stock in the foreseeable future. Hedging our production may result in losses or limit potential gains. Our revolving bank credit facility and secured note agreement contain certain covenants that may inhibit our ability to make certain investments, incur additional indebtedness and engage in certain other transactions, which could adversely affect our ability to meet our future goals. If our revolving bank credit facility or our secured note agreement were to be accelerated, we may not have sufficient liquidity to repay our indebtedness in full. Failure by us to achieve and maintain effective internal control over financial reporting in accordance with the rules of the SEC could harm our business and operating results and/or result in a loss of investor confidence in our financial reports, which could have a material adverse effect on our business and stock price. Delays in development or production curtailment affecting our material properties may adversely affect our financial position and results of operations. A majority of our production, revenue and cash flow from operating activities is derived from assets that are concentrated in a geographic area. Servicing our debt requires a significant amount of cash, and we may not have sufficient cash flow from our business to pay our substantial debt. Risks Related to the Oil and Natural Gas Industry A substantial decrease in oil and natural gas prices would have a material impact on us. We may encounter difficulty in obtaining equipment and services. Estimates of proved natural gas and oil reserves and present value of proved reserves are not precise. We may incur write-downs of the net book values of our oil and natural gas properties that would adversely affect our shareholders equity and earnings. Operational risks in our business are numerous and could materially impact us. Governmental regulations could adversely affect our business. Environmental liabilities could adversely affect our business. Competition in the oil and natural gas industry is intense, and we are smaller than many of our competitors. Risks Related to Our Common Stock Shares eligible for future sale may depress our stock price. The price of our common stock has been volatile and could continue to fluctuate substantially. Future issuance of additional shares of our common stock could cause dilution of ownership interests and adversely affect our stock price. The issuance of our common stock pursuant to a share lending agreement, including sales of the shares that we will lend, and other market activity related to the share lending agreement may lower the market price of our common stock. Our existing preferred stock has greater rights than our common stock, and we may issue additional preferred stock in the future. Our common stock is an unsecured equity interest in our company. Anti-takeover provisions in our organizational documents, our convertible senior notes, other outstanding debt and Oklahoma law could have the effect of discouraging, delaying or preventing a merger or acquisition, which could adversely affect the market price of our common stock.

Full 10-K form ▸

1127342--3/14/2008--GMX_RESOURCES_INC