1172139--2/27/2008--BILL_BARRETT

related topics

{gas, price, oil}

{stock, price, operating}

{loss, insurance, financial}

{operation, natural, condition}

{debt, indebtedness, cash}

{provision, law, control}

{control, financial, internal}

{loan, real, estate}

{condition, economic, financial}

{personnel, key, retain}

{cost, regulation, environmental}

Risks Related to the Oil and Natural Gas Industry and Our Business Oil and natural gas prices are volatile and a decline in oil and natural gas prices can significantly affect our financial results and impede our growth. We have incurred losses from operations for various periods since our inception and may do so in the future. Our estimated reserves are based on many assumptions that may turn out to be inaccurate. Any material inaccuracies in these assumptions will materially affect the quantities of our reserves. Unless we replace our oil and natural gas reserves, our reserves and production will decline, which would adversely affect our business, financial condition and results of operations. Prospects that we decide to drill may not yield natural gas or oil in commercially viable quantities. Certain of our leases in the Powder River Basin are in areas that may have been partially depleted or drained by offset wells. Our identified drilling location inventories are scheduled out over several years, making them susceptible to uncertainties that could materially alter the occurrence or timing of their drilling. Our use of 2-D and 3-D seismic data is subject to interpretation and may not accurately identify the presence of natural gas and oil, which could adversely affect the results of our drilling operations. Drilling for and producing oil and natural gas are high risk activities with many uncertainties that could adversely affect our business, financial condition or results of operations. Our development and exploration operations require substantial capital and we may be unable to obtain needed capital or financing on satisfactory terms, which could lead to a loss of properties and a decline in our natural gas and oil reserves. We are subject to complex federal, state, local and other laws and regulations that could adversely affect the cost, manner or feasibility of doing business. Recent Colorado legislative changes could limit our Colorado operations and adversely affect our cost of doing business. Substantially all of our producing properties are located in the Rocky Mountains, making us vulnerable to risks associated with operating in one major geographic area. Seasonal weather conditions and lease stipulations adversely affect our ability to conduct drilling activities in some of the areas where we operate. Properties that we buy may not produce as projected and we may be unable to determine reserve potential, identify liabilities associated with the properties or obtain protection from sellers against them. We have limited control over activities on properties we do not operate, which could reduce our production and revenues. Market conditions or operational impediments may hinder our access to oil and natural gas markets or delay our production. Our hedging activities could result in financial losses or could reduce our income. The inability of one or more of our customers to meet their obligations may adversely affect our financial results. We depend on a limited number of key personnel who would be difficult to replace. Competition in the oil and natural gas industry is intense, which may adversely affect our ability to succeed. Our credit facility has substantial restrictions and financial covenants and we may have difficulty obtaining additional credit, which could adversely affect our operations. The ability of our banks to fund their lending obligations under our credit facility may be limited, which would affect our ability to fund our operations. Possible regulation related to global warming and climate change could have an adverse effect on our operations and demand for oil and gas. Risks Related to Our Common Stock Our stock price and trading volume may be volatile, which could result in losses for our stockholders. Future sales of our common stock or other equity linked products may cause our stock price to decline. Provisions in our certificate of incorporation and bylaws and Delaware law make it more difficult to effect a change in control of the company, which could adversely affect the price of our common stock. We have significant stockholders with the ability to influence our actions.

Full 10-K form ▸

1172139--2/27/2008--BILL_BARRETT_CORP