Chesapeake Energy 2013 Annual Report Download - page 70

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Forward-Looking Statements
This report includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933
and Section 21E of the Securities Exchange Act of 1934 (the “Exchange Act”). Forward-looking statements give our
current expectations or forecasts of future events. They include expected natural gas, oil and NGL production and
future expenses, estimated operating costs, assumptions regarding future natural gas, oil and NGL prices, planned
drilling activity, estimates of future drilling and completion and other capital expenditures (including the use of joint
venture drilling carries), and anticipated sales, as well as statements concerning anticipated cash flow and liquidity,
covenant compliance, debt reduction, operating and capital efficiencies, business strategy and other plans and
objectives for future operations. Our ability to generate sufficient operating cash flow to fund future capital expenditures
is subject to all the risks and uncertainties that exist in our industry, some of which we may not be able to anticipate
at this time. Further, asset dispositions we are evaluating as we focus on our strategic priorities are subject to market
conditions and other factors beyond our control. Our plans to reduce financial leverage and complexity may take longer
to implement if such dispositions are delayed or do not occur as expected. Disclosures concerning the fair values of
derivative contracts and their estimated contribution to our future results of operations are based upon market
information as of a specific date. These market prices are subject to significant volatility.
Although we believe the expectations and forecasts reflected in our forward-looking statements are reasonable,
we can give no assurance they will prove to have been correct. They can be affected by inaccurate assumptions or
by known or unknown risks and uncertainties. Factors that could cause actual results to differ materially from expected
results are described under Risk Factors in Item 1A of this report and include:
• the volatility of natural gas, oil and NGL prices;
• the limitations our level of indebtedness may have on our financial flexibility;
• the availability of capital on an economic basis to fund reserve replacement costs;
• our ability to replace reserves and sustain production;
• uncertainties inherent in estimating quantities of natural gas, oil and NGL reserves and projecting future
rates of production and the amount and timing of development expenditures;
• declines in the prices of natural gas and oil potentially resulting in a write-down of our asset carrying values;
• our ability to generate profits or achieve targeted results in drilling and well operations;
• leasehold terms expiring before production can be established;
• commodity derivative activities resulting in lower prices realized on natural gas, oil and NGL sales;
• the need to secure derivative liabilities and the inability of counterparties to satisfy their obligations;
• charges incurred in connection with actions to reduce financial leverage and complexity;
• competition in the oil and gas exploration and production industry;
• drilling and operating risks, including potential environmental liabilities;
• our need to acquire adequate supplies of water for our drilling operations and to dispose of or recycle the
water used;
• legislative and regulatory changes adversely affecting our industry and our business, including initiatives
related to hydraulic fracturing, air emissions and endangered species;
• a deterioration in general economic, business or industry conditions;
• oilfield services shortages, gathering system and transportation capacity constraints and various
transportation interruptions that could adversely affect our revenues and cash flow;
• adverse developments or losses from pending or future litigation and regulatory investigations;
• cyber attacks adversely impacting our operations; and
• an interruption in operations at our headquarters due to a catastrophic event.
We caution you not to place undue reliance on the forward-looking statements contained in this report, which
speak only as of the filing date, and we undertake no obligation to update this information except as required by
applicable law. We urge you to carefully review and consider the disclosures made in this report and our other filings
with the SEC that attempt to advise interested parties of the risks and factors that may affect our business.