891456--2/25/2010--PLAINS_EXPLORATION_&_PRODUCTION

related topics

{gas, price, oil}

{loss, insurance, financial}

{regulation, change, law}

{tax, income, asset}

{acquisition, growth, future}

{operation, natural, condition}

{capital, credit, financial}

{personnel, key, retain}

{operation, international, foreign}

{cost, regulation, environmental}

{cost, contract, operation}

{competitive, industry, competition}

Volatile oil and gas prices could adversely affect our financial condition and results of operations. Our asset carrying values may be impaired in the future periods if oil and gas prices decline. Estimates of oil and gas reserves depend on many assumptions that may be inaccurate. Any material inaccuracies could adversely affect the quantity and value of our oil and gas reserves. If we are unable to replace the reserves that we have produced, our reserves and revenues will decline. The geographic concentration and lack of marketable characteristics of our oil reserves may have a greater effect on our ability to sell our oil production. We intend to continue to enter into derivative contracts for a portion of our oil and gas production, which exposes us to the risk of financial loss and may result in us making cash payments or prevent us from receiving the full benefit of increases in prices for oil and gas and which may cause volatility in our reported earnings. Potential regulations regarding derivatives could adversely impact our ability to engage in commodity price risk management activities Our offshore operations are subject to substantial regulations and risks, which could adversely affect our ability to operate and our financial results. The majority of our oil production is dedicated to one customer and as a result, our credit exposure to this customer is significant. Operating hazards, natural disasters or other interruptions of our operations could result in potential liabilities, which may not be fully covered by our insurance. We may not be successful in acquiring, developing or exploring for oil and gas properties. Adverse capital and credit market conditions may significantly affect our ability to meet liquidity needs, access to capital and cost of capital. The impairment of financial institutions could adversely affect us. Any prolonged, substantial reduction in the demand for oil and gas, or distribution problems in meeting this demand, could adversely affect our business. Loss of key executives and failure to attract qualified management could limit our growth and negatively impact our operations. We are subject to certain regulations, some of which require permits and other approvals. These regulations could increase our costs and may terminate, delay or suspend our operations. Possible regulations related to global warming and climate change could have an adverse effect on our operations and the demand for oil and natural gas. Environmental liabilities could adversely affect our financial condition. Proposed federal legislation and regulatory initiatives relating to hydraulic fracturing could result in increased costs and additional operating restrictions or delays. Certain of our undeveloped leasehold acreage are subject to leases that will expire over the next several years unless production is established on units containing the acreage. Increased drilling in the Haynesville Shale may cause pipeline and gathering system capacity constraints that could limit our ability to sell our oil and gas. Our acquisition strategy could fail or present unanticipated problems for our business in the future, which could adversely affect our ability to make acquisitions or realize anticipated benefits of those acquisitions. Our foreign operations subject us to additional risks. Our results of operations could be adversely affected as a result of goodwill impairments. Certain federal income tax deductions currently available with respect to oil and gas exploration and development may be eliminated as a result of future legislation.

Full 10-K form ▸

891456--2/25/2010--PLAINS_EXPLORATION_&_PRODUCTION_CO