839871--3/31/2006--Warrior_Energy_Services

related topics

{gas, price, oil}

{operation, natural, condition}

{acquisition, growth, future}

{personnel, key, retain}

{stock, price, share}

{cost, operation, labor}

{control, financial, internal}

{customer, product, revenue}

{cost, regulation, environmental}

{debt, indebtedness, cash}

{provision, law, control}

{product, market, service}

The Company s business depends on the level of activity in the natural gas and oil exploration and production industry and may be adversely affected by industry conditions that are beyond its control. Any decline in natural gas and oil prices, exploration and production activity levels, or the development of natural gas and oil reserves could have a material adverse effect on the Company s business, financial conditions, results of operations and cash flows. Because the natural gas and oil industry is cyclical, the Company s operating results may fluctuate. Operations in the Gulf of Mexico may be adversely impacted by tropical storms and hurricanes. There is potential for excess equipment availability in the Company s industry. The Company is highly dependent upon the level of natural gas drilling and workover activity in the United States. The Company may be unable to employ a sufficient number of skilled and qualified operational workers and experienced salespeople. The Company s executive officers, senior management and certain other operations personnel are critical to its business, and these officers and personnel may not remain with the Company in the future. Because the Company recently acquired Bobcat, its operating history may not be sufficient to evaluate its business and prospects. The Company may not be able to integrate successfully Bobcat s operations into its operations. If the Company does not experience expected synergies from the Bobcat acquisition, it may not achieve increases in revenues that it hopes to obtain. The Company s inability to control the inherent risks of acquiring and integrating businesses could adversely affect its operations. If the Company s planned geographic, fleet and product line expansions are not successful, its financial condition and results of operations could be adversely affected, and it may not achieve increases in revenues that it hopes to realize. In order to execute its growth strategy, the Company may require additional capital in the future, which may not be available to it. The Company s customer base is concentrated, and loss of a significant customer could cause its revenue to decline substantially. The markets in which the Company operates are highly competitive and have relatively few barriers to entry. To be successful, a provider must provide services that meet the specific needs of natural gas and oil exploration and production companies at competitive prices. The restrictive and other covenants in the Company s indebtedness could restrict its operations and make it more vulnerable to adverse economic conditions. Substantially all of the Company s assets are pledged under its credit facilities. The Company s operations are subject to hazards inherent in the natural gas and oil industry. These risks may not be fully covered by the Company s insurance policies. The Company is subject to extensive and costly environmental laws and regulations that may require it to take actions that will adversely affect its results of operations. The Company s business could be adversely affected by technological advancements in the future. If the Company fails to develop or maintain an effective system of internal controls over financial reporting, it may not be able to accurately report its financial results or prevent fraud. A terrorist attack or armed conflict could harm the Company s business. The Company s operations are subject to seasonal variations in weather conditions. Because the Company has no current plans to pay dividends on its common stock, investors must look solely to stock appreciation for a return on their investment in the Company. There has been limited trading activity in the Company s common stock and a more active trading market may not develop. The Company s certificate of incorporation, bylaws and Delaware law contain provisions that could discourage acquisition bids or merger proposals, which may adversely affect the market price of its common stock.

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839871--3/31/2006--Warrior_Energy_Services_CORP