895126--3/14/2006--CHESAPEAKE_ENERGY

related topics

{gas, price, oil}

{loss, insurance, financial}

{debt, indebtedness, cash}

{acquisition, growth, future}

{cost, regulation, environmental}

{competitive, industry, competition}

Oil and gas prices are volatile. A decline in prices could adversely affect our financial position, financial results, cash flows, access to capital and ability to grow. Our level of indebtedness may limit our financial flexibility. Competition in the oil and natural gas industry is intense, and many of our competitors have greater financial and other resources than we do. Significant capital expenditures are required to replace our reserves. If we are not able to replace reserves, we may not be able to sustain production. The actual quantities and present value of our proved reserves may prove to be lower than we have estimated. Acquisitions may prove to be worth less than we paid because of uncertainties in evaluating recoverable reserves and potential liabilities. As new owners, we may not effectively consolidate and integrate acquired operations, particularly when we make significant acquisitions outside our historical operating areas. Exploration and development drilling may not result in commercially productive reserves. Future price declines may result in a write-down of our asset carrying values Our hedging activities may reduce the realized prices received for our oil and gas sales and require us to provide collateral for hedging liabilities. Lower oil and gas prices could negatively impact our ability to borrow. Oil and gas drilling and producing operations can be hazardous and may expose us to environmental liabilities

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895126--3/14/2006--CHESAPEAKE_ENERGY_CORP