320575--5/25/2006--PIONEER_DRILLING_CO

related topics
{gas, price, oil}
{competitive, industry, competition}
{stock, price, share}
{provision, law, control}
{operation, natural, condition}
{cost, contract, operation}
{cost, regulation, environmental}
{control, financial, internal}
{acquisition, growth, future}
We derive all our revenues from companies in the oil and gas exploration and production industry, a historically cyclical industry with levels of activity that are significantly affected by the levels and volatility of oil and gas prices. We have a history of losses and may experience losses in the future. Our acquisition strategy involves various risks. We operate in a highly competitive, fragmented industry in which price competition is intense. We face competition from many competitors with greater resources. Unexpected cost overruns on our turnkey drilling jobs and our footage contracts could adversely affect our financial position and our results of operations. Our operations involve operating hazards, which if not insured or indemnified against, could adversely affect our results of operations and financial condition. We face increased exposure to operating difficulties because we primarily focus on drilling for natural gas. Our current primary focus on drilling for natural gas could place us at a competitive disadvantage if we changed our primary focus to drilling for oil. Our operations are subject to various laws and governmental regulations that could restrict our future operations and increase our operating costs. We could be adversely affected if shortages of equipment, supplies or personnel occur. Under our existing dividend policy, we do not pay dividends on our common stock. We may issue preferred stock whose terms could adversely affect the voting power or value of our common stock. Provisions in our organizational documents could delay or prevent a change in control of our company, even if that change would be beneficial to our shareholders.

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