Chesapeake Energy 2014 Annual Report Download - page 71
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63
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 Part I of this report and include:
• the volatility of oil, natural gas and NGL prices;
• write-downs of our oil and natural gas asset carrying values due to declines in prices;
• the availability of operating cash flow and other funds to finance reserve replacement costs;
• our ability to replace reserves and sustain production;
• uncertainties inherent in estimating quantities of oil, natural gas and NGL reserves and projecting future
rates of production and the amount and timing of development expenditures;
• 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 oil, natural gas and NGL sales;
• the need to secure derivative liabilities and the inability of counterparties to satisfy their obligations;
• adverse developments or losses from pending or future litigation and regulatory proceedings, including
royalty claims;
• the limitations our level of indebtedness may have on our financial flexibility;
• charges incurred in response to market conditions and in connection with actions to reduce financial leverage
and complexity;
• drilling and operating risks and resulting liabilities;
• effects of environmental protection laws and regulation on our business;
• legislative and regulatory initiatives further regulating hydraulic fracturing;
• our need to secure adequate supplies of water for our drilling operations and to dispose of or recycle the
water used;
• federal and state tax proposals affecting our industry;
• potential OTC derivatives regulation limiting our ability to hedge against commodity price fluctuations;
• impacts of potential legislative and regulatory actions addressing climate change;
• competition in the oil and gas exploration and production industry;
• a deterioration in general economic, business or industry conditions;
• negative public perceptions of our industry;
• limited control over properties we do not operate;
• pipeline and gathering system capacity constraints and transportation interruptions;
• 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.