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New words:
acknowledge, adhere, admit, affirmative, Arab, aspect, Assembly, authentication, biennial, burdensome, cancer, CCDAA, Cede, Chase, circulate, circumvent, closer, complement, Complementing, Comptroller, confidential, constrained, corruption, credential, CRFRA, Currency, cyberattack, deleveraging, deserted, diligence, education, embracing, emitter, empowerment, Encryption, enjoined, escalate, escalation, escrow, excellence, exemplified, floating, forensic, Gaza, guide, guiding, HH, hosted, IDC, identification, inconsistent, inextricably, infallible, infeasible, intelligence, internet, Israel, JPMorgan, Kentucky, legacy, liner, Macpherson, media, memorializing, methodology, mix, moderate, moderately, momentum, obfuscate, OOOOb, OOOOc, operatorship, orderly, ostensibly, overriding, partly, payer, penetration, Perforation, pertain, phishing, platform, portfolio, predicated, presumptive, privilege, procedural, proud, rainy, ratification, ratified, realistic, reallocate, reallocated, reallocating, reallocation, reconstructed, relationship, repaid, resilience, respiratory, scrutinizing, show, Slotted, snowfall, snowy, SoCal, spear, stakeholder, steady, strike, stuffing, sublimit, super, surveillance, synthetic, tabletop, thereto, tripled, verification, XDR
Removed:
advisory, bankruptcy, build, built, Carleton, Carolina, citizen, College, compound, conservative, consortium, constituted, contributor, COSO, counsel, creation, deeper, deficiency, determinable, dictate, discrete, dispute, dramatic, elevated, exacerbated, exclusion, exist, exit, expressing, focusing, foreseeable, Gavin, golden, great, Greening, importing, improvement, insolvency, insulation, interbank, irrevocable, joined, leading, LIBOR, London, mentioned, Midway, modest, modification, necessitate, Network, Newsom, optional, originally, outbreak, owner, parachute, peak, penalty, prepayment, ranged, restatement, rig, rotation, ruling, shallower, slightly, stage, standby, structurally, substitute, Sunset, supertanker, supplement, taxing, termination, thereof, threshold, travel, underwriting, unpaid, whichever
Financial report summary
?Risks
- Attempts by the California state government to restrict the production of oil and gas could negatively impact our operations and result in decreased demand for fossil fuels within the states where we operate.
- The Climate Corporate Data Accountability Act and Climate-Related Financial Risk Act both impose climate-related reporting obligations including GHG emissions which could result in additional costs for compliance, restrictions on our access to capital, and increased litigation and reputational risk.
- Our ability to operate profitably and maintain our business and financial condition are highly dependent on commodity prices, which historically have been very volatile and are driven by numerous factors beyond our control. If oil prices were to significantly decline for a prolonged period of time, our business, financial condition and results of operations may be materially and adversely affected.
- Global geopolitical tensions and related price volatility and geopolitical instability could negatively impact our business.
- The marketability of our production is dependent upon transportation and storage facilities and other facilities, most of which we do not control, and the availability of such transportation and storage capabilities. If we are unable to access such facilities on commercially reasonable terms, our operations would likely be interrupted, our production could be curtailed, and our revenues reduced, among other adverse consequences.
- Unless we replace oil and natural gas reserves, our future reserves and production will decline.
- We may not drill our identified sites at the times we scheduled or at all.
- Competition in the oil and natural gas industry is intense, making it more difficult for us to acquire properties, market oil or natural gas and secure trained personnel.
- We may be unable to make attractive acquisitions or successfully integrate acquired businesses or assets or enter into attractive joint ventures, and any inability to do so may disrupt our business and hinder our ability to grow.
- We are dependent on our cogeneration facilities to produce steam for our operations. Contracts for the sale of surplus electricity, economic market prices and regulatory conditions affect the economic value of these facilities to our operations.
- Our producing properties are located primarily in California, making us vulnerable to risks associated with having operations concentrated in this geographic area.
- Most of our operations are in California, much of which is conducted in areas that may be at risk of damage from fire, mudslides, earthquakes, floods or other natural disasters or extreme weather events.
- Operational issues and inability or unwillingness of third parties to provide sufficient facilities and services to us on commercially reasonable terms or otherwise could restrict access to markets for the commodities we produce.
- We may be involved in legal proceedings that could result in substantial liabilities.
- Information technology and operational failures and cyberattacks could significantly affect our business, financial condition, results of operations and cash flows.
- Increasing attention to environmental, social and governance (ESG) matters may impact our business.
- Our business requires continual capital expenditures. We may be unable to fund these investments through operating cash flow or obtain any needed additional capital on satisfactory terms or at all, which could lead to a decline in our oil and natural gas reserves or production. Our capital program is also susceptible to risks, including regulatory and permitting risks, that could materially affect its implementation.
- Inflation could adversely impact our ability to control our costs, including our operating expenses and capital costs.
- Our hedging activities limit our ability to realize the full benefits of increases in commodity prices and our potential gains.
- We may be unable to, or may choose not to, enter into sufficient fixed-price purchase or other hedging agreements to fully protect against decreasing spreads between the price of natural gas and oil on an energy equivalent basis or may otherwise be unable to obtain sufficient quantities of natural gas to conduct our steam operations economically or at desired levels, and our commodity price risk management activities may prevent us from fully benefiting from price increases and may expose us to other risks.
- Our existing debt agreements have restrictive covenants that could limit our growth, financial flexibility and our ability to engage in certain activities. In addition, the borrowing base under the 2021 RBL Facility is subject to periodic redeterminations and our lenders could reduce capital available to us for investment.
- We may not be able to generate sufficient cash to service all of our indebtedness and may be forced to take other actions to satisfy our obligations under our debt arrangements, which may not be successful.
- Declines in commodity prices, changes in expected capital development, increases in operating costs or adverse changes in well performance may result in write-downs of the carrying amounts of our assets.
- We have significant concentrations of credit risk with our customers and the inability of one or more of our customers to meet their obligations or the loss of any one of our major oil and natural gas purchasers may have a material adverse effect on our business, financial condition, results of operations and cash flows.
- Our business is highly regulated and governmental authorities can delay or deny permits and approvals or change the requirements governing our operations, including the permitting approval process for oil and gas exploration, extraction, operations and production activities; well stimulation and other enhanced production techniques; and fluid injection or disposal activities, any of which could increase costs, restrict operations and delay our implementation of, or cause us to change, our business strategy and plans.
- Potential future legislation may generally affect the taxation of natural gas and oil exploration and development companies and may adversely affect our operations and cash flows.
- Derivatives legislation and regulations could have an adverse effect on our ability to use derivative instruments to reduce the risks associated with our business.
- Our operations are subject to a series of risks arising out of the threat of climate change that could result in increased operating costs, limit the areas in which we may conduct oil and natural gas E&P activities, and reduce demand for the oil and natural gas we produce.
- The Inflation Reduction Act could accelerate the transition to a low-carbon economy and could impose new costs on our operations.
- There may be circumstances in which the interests of our significant stockholders could be in conflict with the interests of our other stockholders.
- Our significant stockholders and their affiliates are not limited in their ability to compete with us, and the corporate opportunity provisions in the Certificate of Incorporation could enable our significant stockholders to benefit from corporate opportunities that might otherwise be available to us.
- Future sales of our common stock in the public market could reduce our stock price, and any additional capital raised by us through the sale of equity or convertible securities may dilute your ownership in us.
- The payment of dividends will be at the discretion of our Board of Directors.
- We may issue preferred stock, the terms of which could adversely affect the voting power or value of our common stock.
- Due to our emerging growth company status expiring on December 31, 2023, we have incurred and expect to incur additional costs and demands will be placed upon management in connection with complying with non-emerging growth company requirements. Additionally, our internal control over financial reporting is now required to meet all of the standards required by Section 404 of the Sarbanes-Oxley Act. Failure to achieve and maintain effective internal control over financial reporting in accordance with Section 404 of the Sarbanes-Oxley Act could have a material adverse effect on our business and share price.
- Certain provisions of our Certificate of Incorporation and Bylaws may make it difficult for stockholders to change the composition of our Board of Directors and may discourage, delay or prevent a merger or acquisition that some stockholders may consider beneficial.
- Our Certificate of Incorporation designates the Court of Chancery of the State of Delaware as the sole and exclusive forum for certain types of actions and proceedings that may be initiated by our stockholders, which could limit our stockholders’ ability to obtain a favorable judicial forum for disputes with us or our directors, officers, employees or agents.