Chesapeake Energy 1996 Annual Report Download - page 39

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CHESAPEAKE ENERGY CORPORATION
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However, the company may seek additional capital in
fiscal 1997 to expand its exploration and development
activities or reduce outstanding long-term debt. The dis-
cretionary nature of nearly all of the company's capital
spending permits the company to make adjustments to
its budget based upon factors such as oil and gas pricing,
exploration and development drilling results, and the con-
tinued availability of internally generated or external capi-
tal resources.
Forward Looking Statements
The information contained in Management's Discus-
sion and Analysis of Financial Condition and Results of
Operations in this Annual Report includes certain for-
ward-looking statements. When used in this document,
the words budget, budgeted, anticipate, expects, believes,
goals or projects and similar expressions are intended to
identify forward-looking statements. It is important to
note that Chesapeake's actual results could differ materi-
ally from those projected by such forward-looking state-
ments. Important factors that could cause actual results
to differ materially from those projected in the forward-
looking statements include, but are not limited to, the
following: production variances from expectations, vola-
tility of oil and gas prices, the need to develop and re-
place its reserves, the substantial capital expenditures re-
quired to fund its operations, environmental risks, drill-
ing and operating risks, risks related to exploration and
development drilling, uncertainties about estimates of
reserves, competition, government regulation, and the
ability of the company to implement its business strat-
egy. Please refer to the company's filings with the SEC.
MANAGEMENT'S DISCUSSION AND ANAEYSIS