821483--3/2/2009--DELTA_PETROLEUM

related topics

{gas, price, oil}

{stock, price, share}

{operation, natural, condition}

{debt, indebtedness, cash}

{loss, insurance, financial}

{condition, economic, financial}

{stock, price, operating}

{capital, credit, financial}

{provision, law, control}

{cost, regulation, environmental}

{cost, contract, operation}

{personnel, key, retain}

{system, service, information}

Natural gas and oil prices are volatile. Declining prices have adversely affected our financial position, financial results, cash flows, access to capital and ability to grow. Further reduction of our credit ratings, or failure to restore our credit ratings to higher levels, could have a material adverse effect on our business. Our level of indebtedness could adversely affect our ability to raise additional capital to fund our operations, limit our ability to react to changes in the economy or our industry and prevent us from meeting our obligations under our indebtedness and to third parties generally. The current financial crisis may have impacts on our business and financial condition that we cannot predict. Information concerning our reserves is uncertain. We may not be able to replace production with new reserves. Exploration and development drilling may not result in commercially productive reserves. If oil or natural gas prices decrease or exploration and development efforts are unsuccessful, we may be required to take further writedowns. Lower natural gas and oil prices have negatively impacted, and could continue to negatively impact, our ability to borrow. The exploration, development and operation of oil and gas properties involve substantial risks that may result in a total loss of investment. The marketability of our production depends mostly upon the availability, proximity and capacity of gas gathering systems, pipelines and processing facilities, which are owned by third parties. Prices may be affected by regional factors. Our industry experiences numerous operating hazards that could result in substantial losses. We depend on key personnel. We may not be permitted to develop some of our offshore California properties or, if we are permitted, the substantial cost to develop these properties could result in a reduction of our interest in these properties or cause us to incur penalties. We are exposed to additional risks through our drilling business, DHS. DHS has significant near-term liquidity issues. There is a significant risk that DHS will not be able to meet its debt covenants under its credit facility. Hedging transactions may limit our potential gains or cause us to lose money. We may not receive payment for a portion of our future production. We have no long-term contracts to sell oil and gas. Terrorist attacks aimed at our facilities could adversely affect our business. We own properties in the Gulf Coast Region that could be susceptible to damage by severe weather. We may incur substantial costs to comply with the various federal, state and local laws and regulations that affect our oil and gas operations. We may be unable to draw funds from our existing credit facilities. We are exposed to credit risk as it affects third parties with whom we have contracted. Risks Related To Our Stock. Our largest stockholder has the power to significantly influence the future of our Company. Sales of a substantial number of shares of our common stock, or the perception that such sales might occur, could have an adverse effect on the price of our common stock. We may issue shares of preferred stock with greater rights than our common stock. There may be future dilution of our common stock. We do not expect to pay dividends on our common stock. The common stock is an unsecured equity interest in our Company. Our stockholders do not have cumulative voting rights. Anti-takeover provisions in our certificate of incorporation, Delaware law and certain of our contracts may have provisions that discourage corporate takeovers and could prevent stockholders from realizing a premium on their investment.

Full 10-K form ▸

821483--3/2/2009--DELTA_PETROLEUM_CORP/CO