23194--2/26/2010--COMSTOCK_RESOURCES

related topics

{gas, price, oil}

{cost, regulation, environmental}

{loss, insurance, financial}

{acquisition, growth, future}

{competitive, industry, competition}

{regulation, change, law}

{property, intellectual, protect}

{personnel, key, retain}

{condition, economic, financial}

{debt, indebtedness, cash}

The current recession could have a material adverse impact on our financial position, results of operations and cash flows. Our future production and revenues depend on our ability to replace our reserves. Prospects that we decide to drill may not yield oil or natural gas in commercially viable quantities or quantities sufficient to meet our targeted rate of return. Federal hydraulic fracturing legislation could increase our costs and restrict our access to our oil and gas reserves. The proposed US federal budget for fiscal year 2011 includes certain provisions that, if passed as originally submitted, will have an adverse effect on us. Our debt service requirements could adversely affect our operations and limit our growth. The unavailability or high cost of drilling rigs, equipment, supplies or qualified personnel and oilfield services could adversely affect our ability to execute our exploration and development plans on a timely basis and within our budget. Our business involves many uncertainties and operating risks that can prevent us from realizing profits and can cause substantial losses. We pursue acquisitions as part of our growth strategy and there are risks in connection with acquisitions. We operate in a highly competitive industry, and our failure to remain competitive with our competitors, many of which have greater resources than we do, could adversely affect our results of operations. Our competitors may use superior technology that we may be unable to afford or which would require costly investment by us in order to compete. Substantial exploration and development activities could require significant outside capital, which could dilute the value of our common shares and restrict our activities. Also, we may not be able to obtain needed capital or financing on satisfactory terms, which could lead to a limitation of our future business opportunities and a decline in our oil and natural gas reserves. If oil and natural gas prices remain low or continue to decline, we may be required to write-down the carrying values and/or the estimates of total reserves of our oil and natural gas properties, which would constitute a non-cash charge to earnings and adversely affect our results of operations. Our reserve estimates depend on many assumptions that may turn out to be inaccurate. Any material inaccuracies in our reserve estimates or underlying assumptions will materially affect the quantities and present value of our reserves. If we are unsuccessful at marketing our oil and natural gas at commercially acceptable prices, our profitability will decline. Market conditions or operational impediments may hinder our access to oil and natural gas markets or delay our production. We depend on our key personnel and the loss of any of these individuals could have a material adverse effect on our operations. Our insurance coverage may not be sufficient or may not be available to cover some liabilities or losses that we may incur. We are subject to extensive governmental laws and regulations that may adversely affect the cost, manner or feasibility of doing business. Our operations may incur substantial liabilities to comply with environmental laws and regulations.

Full 10-K form ▸

23194--2/26/2010--COMSTOCK_RESOURCES_INC