879884--3/5/2010--T-3_ENERGY_SERVICES

related topics

{gas, price, oil}

{cost, regulation, environmental}

{condition, economic, financial}

{customer, product, revenue}

{acquisition, growth, future}

{operation, international, foreign}

{product, market, service}

{loss, insurance, financial}

{stock, price, operating}

{regulation, change, law}

{cost, operation, labor}

{personnel, key, retain}

{product, liability, claim}

Risks Related to Our Business A decline in or substantial volatility of oil and gas prices could adversely affect the demand and prices for our products and services. Our business depends on spending by the oil and gas industry, and this spending and our business may be adversely affected by industry conditions that are beyond our control. Difficult conditions in the global capital markets and the economy generally may materially adversely affect our business and results of operations. Control of oil and gas reserves by state-owned oil companies may impact the demand for our services and create additional risks in our operations. Our inability to deliver our backlog on time could affect our future sales and profitability and our relationships with our customers. We intend to expand our business through strategic acquisitions. Our acquisition strategy exposes us to various risks, including those relating to difficulties in identifying suitable acquisition opportunities and integrating businesses and the potential for increased leverage or debt service requirements. If we are unable to successfully manage our growth and implement our business plan, our results of operations will be adversely affected. If we do not develop and commercialize new competitive products, our revenues may decline. The cyclical nature of or a prolonged downturn in our industry could affect the carrying value of our goodwill and/or long-lived assets. One of our competitive strengths is our established brand name, and to the extent any joint venture that we participate in uses our brand name and delivers products or services that are not up to our standards of quality or service, this could diminish the value of our brand name and adversely affect our business. We rely on a few key employees whose absence or loss could disrupt our operations or be adverse to our business. Some of our products require the use of elastomer products in their manufacture. Any negative developments in the availability or costs of these elastomer products could adversely affect our business, financial conditions and results of operations. Shortages of raw materials may restrict our operations. The oilfield service industry in which we operate is highly competitive, which may result in a loss of market share or a decrease in revenue or profit margins. Liability to customers under warranties may materially and adversely affect our earnings. We may be faced with product liability claims, which could materially and adversely affect our earnings. Uninsured or underinsured claims or litigation or an increase in our insurance premiums could adversely impact our results. Our operations are subject to stringent environmental laws and regulations that may expose us to significant costs and liabilities. Climate change legislation or regulations restricting emissions of greenhouse gases could result in increased operating costs and reduced demand for our services and products. Federal and state legislation and regulatory initiatives relating to hydraulic fracturing could result in certain of our customers encountering increased costs or additional operating restrictions or delays in connection with their drilling activities in shale formations throughout the United States. This could negatively impact our operations and expansion efforts in the Marcellus Shale region. Certain federal income tax deductions currently available with respect to the oil and gas exploration and production activities of certain of our customers may be eliminated as a result of future legislation. We are subject to political, economic and other uncertainties as we expand our international operations. We could be adversely affected by violations of the U.S. FCPA and similar worldwide anti-bribery laws. Our industry has historically experienced shortages in the availability of qualified personnel. Any difficulty we experience replacing or adding qualified personnel could adversely affect our business. Risks Relating to Our Common Stock The market price of our common stock may be volatile or may decline regardless of our operating performance.

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879884--3/5/2010--T-3_ENERGY_SERVICES_INC