GST » Topics » Risk Factors Related to Our Business

This excerpt taken from the GST 10-K filed Mar 16, 2009.

Risk Factors Related to Our Business

In addition to the other information set forth elsewhere in this Form 10-K, you should carefully consider the following material risk factors associated with our business and our common shares when evaluating Gastar. An investment in Gastar is subject to risks inherent in our business. The trading price of our common shares will be affected by the performance of our business relative to, among other things, competition, market conditions and general economic and industry conditions. The value of an investment in Gastar may decrease, resulting in a loss.

These excerpts taken from the GST 10-K filed Mar 17, 2008.

Risk Factors Related to Our Business

In addition to the other information set forth elsewhere in this Form 10-K, you should carefully consider the following material risk factors associated with our business and our common shares when evaluating Gastar. An investment in Gastar is subject to risks inherent in our business. The trading price of our common shares will be affected by the performance of our business relative to, among other things, competition, market conditions and general economic and industry conditions. The value of an investment in Gastar may decrease, resulting in a loss.

Risk Factors Related to Our
Business

In addition to the other information set forth elsewhere in this Form 10-K, you should carefully consider the following
material risk factors associated with our business and our common shares when evaluating Gastar. An investment in Gastar is subject to risks inherent in our business. The trading price of our common shares will be affected by the performance of our
business relative to, among other things, competition, market conditions and general economic and industry conditions. The value of an investment in Gastar may decrease, resulting in a loss.

STYLE="margin-top:18px;margin-bottom:0px">Natural gas and oil prices are volatile and a decline in natural gas and oil prices can significantly affect our financial condition and results of operations.

The success of our business greatly depends on market prices of natural gas and oil. The higher market prices are, the more likely
it is that we will be financially successful. On the other hand, declines in natural gas or oil prices may have a material adverse affect our financial condition, profitability and liquidity. Lower prices also may reduce the amount of natural gas or
oil that we can produce economically. Natural gas and oil are commodities whose prices are set by broad market forces. Historically, the natural gas and oil markets have been volatile. Natural gas and oil prices will likely continue to be volatile
in the future. Prices for natural gas and oil are subject to wide fluctuations in response to relatively minor changes in the supply of and demand for natural gas or oil, market uncertainty and a variety of additional factors that are beyond our
control. These factors include:

 







  

The domestic and foreign supply of natural gas and oil;

 







  

Overall economic conditions;

 







  

Weather conditions;

 







  

Political conditions in the Middle East and other oil producing regions, such as Venezuela;

STYLE="font-size:6px;margin-top:0px;margin-bottom:0px"> 







  

Domestic and foreign governmental regulations;

 







  

The level of consumer product demand; and

 







  

The price and availability of alternative fuels.

SIZE="2">Our success is influenced by natural gas prices in the specific areas where we operate, and these prices may be lower than prices at major markets.

FACE="Times New Roman" SIZE="2">Even though overall natural gas prices at major markets, such as Henry Hub in Louisiana, may be high, regional natural gas prices may move independent of broad industry price trends. Because some of our operations are
located outside major markets, we are directly impacted by regional natural gas prices regardless of Henry Hub or other major market pricing. As of December 31, 2007, approximately 72% of our production is priced based on the Katy Hub
(“Katy”) basis point, and the remainder is priced on the CIG basis point. Recently, natural gas prices on CIG have been extremely volatile, and spot sales of natural gas in the region traded at prices substantially below historic levels,
when compared to prices in other primary natural gas sales points in the country. This has been attributed primarily to limitations in available pipeline capacity for natural gas deliveries out of the Rocky Mountain area. In 2007, spot prices for
CIG Rocky Mountains on occasion dipped to less than $1.00 per MMBtu. While this volatility currently has been alleviated by completion of a major pipeline system in January 2008, this relief may be offset over time by the expected increase in supply
of natural gas available in the Rocky Mountains. At December 31, 2007, the Katy hub basis traded at approximately par to Henry Hub, and CIG hub basis traded at approximately 11% less then Henry Hub. Low natural gas prices in any or all of the
areas where we operate would negatively impact our financial condition and results of operations.

 


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Index to Financial Statements


In Victoria and New South Wales the wholesale price for gas is determined by contract negotiations and is
not related to a “hub” or “spot market” price. Prospective natural gas sales related to our pilot CBM project in New South Wales will be dependent on electricity prices in the area since the natural gas is being dedicated
initially as fuel for an electric generation facility.

This excerpt taken from the GST 10-K filed Mar 27, 2007.

Risk Factors Related to Our Business

In addition to the other information set forth elsewhere in this Form 10-K, you should carefully consider the following material risk factors associated with our business and our common shares when evaluating Gastar. An investment in Gastar is subject to risks inherent in our business. The trading price of our common shares will be affected by the performance of our business relative to, among other things, competition, market conditions and general economic and industry conditions. The value of an investment in Gastar may decrease, resulting in a loss.

 

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Table of Contents
Index to Financial Statements
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