7332--2/25/2010--SOUTHWESTERN_ENERGY

related topics

{gas, price, oil}

{cost, contract, operation}

{regulation, change, law}

{acquisition, growth, future}

{personnel, key, retain}

{cost, regulation, environmental}

{provision, law, control}

{loss, insurance, financial}

{debt, indebtedness, cash}

{condition, economic, financial}

{competitive, industry, competition}

Natural gas and oil prices are volatile. Volatility in natural gas and oil prices can adversely affect our results and the price of our common stock. This volatility also makes valuation of natural gas and oil producing properties difficult and can disrupt markets. A substantial or extended decline in natural gas and oil prices would have a material adverse affect on us. Lower natural gas and oil prices and/or increased development costs may cause us to record ceiling test write-downs. We may have difficulty financing our planned capital investments, which could adversely affect our growth. Working interest owners of some of our properties may be unwilling or unable to cover their portion of development costs, which could change our exploration and development plans. Although our estimated natural gas and oil reserve data is independently audited, our estimates may still prove to be inaccurate. Our future level of indebtedness and the terms of our financing arrangements may adversely affect operations and limit our growth. If we fail to find or acquire additional reserves, our reserves and production will decline materially from their current levels. Our drilling plans for the Fayetteville Shale play are subject to change. If we fail to drill all of the wells that are necessary to hold our Fayetteville Shale acreage, the initial lease terms could expire, which would result in the loss of certain leasehold rights. If our Fayetteville Shale drilling program fails to produce a significant supply of natural gas, our investments in our gas gathering operations could be lost and our commitments for transportation on pipelines could make the sale of our gas uneconomic, which could have an adverse effect on our results of operations, financial condition and cash flows. Our exploration, development and drilling efforts and our operation of our wells may not be profitable or achieve our targeted returns. We incur substantial costs to comply with government regulations, especially regulations relating to environmental protection, and could incur even greater costs in the future. Our financial condition and results of operation could be adversely affected if the exemption for hydraulic fracturing is removed from the Safe Drinking Water Act, or if legislation is enacted at the federal, state or local level regulating hydraulic fracturing. Natural gas and oil drilling and producing operations involve various risks. We cannot control activities on properties we do not operate. Failure to fund capital investments may result in reduction or forfeiture of our interests in some of our non-operated projects. Our ability to sell our natural gas and crude oil production could be materially harmed if we fail to obtain adequate services such as transportation and processing. Delays in the construction of the pipelines serving the Fayetteville Shale play or in the receipt of regulatory approvals affecting the pipelines could result in capacity constraints that may limit our ability to sell natural gas and/or receive favorable prices for our gas. Shortages of oilfield equipment, services, supplies, raw materials and qualified personnel could adversely affect our results of operations. Our business could be adversely affected by competition with other companies. We have made significant investments in our own drilling rig and sand mine operations in order to meet certain of our oilfield service and resource needs, lower our costs and increase of the efficiency of our operations. If disrupted, these operations may adversely impact our results of operations. In addition, these operations may adversely impact our relationships with third-party providers. We depend upon our management team and our operations require us to attract and retain experienced technical personnel. If natural gas prices decline, our failure to hedge a significant portion of our expected 2010 production could adversely affect our results of operations and financial condition. Our ability to produce gas could be impaired if we are unable to acquire adequate supplies of water for our drilling operations or are unable to dispose of the water we use at a reasonable cost and within applicable environmental rules. Climate change and global warming concerns could lead to additional regulatory measures that may adversely impact our operations and financial condition. Our certificate of incorporation, bylaws, and stockholder rights plan contain provisions that could make it more difficult for someone to either acquire us or affect a change of control.

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7332--2/25/2010--SOUTHWESTERN_ENERGY_CO