7332--2/26/2009--SOUTHWESTERN_ENERGY

related topics

{gas, price, oil}

{cost, contract, operation}

{acquisition, growth, future}

{personnel, key, retain}

{cost, regulation, environmental}

{provision, law, control}

{loss, insurance, financial}

{debt, indebtedness, cash}

{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 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. 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. 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 drilling rig operations and we have significant commitments with third-party drilling companies. We have limited experience in operating drilling rigs. We depend upon our management team and our operations require us to attract and retain experienced technical personnel. Our hedging activities may prevent us from benefiting from price increases and may expose us to other risks. 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--2/26/2009--SOUTHWESTERN_ENERGY_CO