Independent Oil & Gas

Excess refining capacity in China could outstrip demand, reducing margins.The Chinese government may not increase refined product prices if crude oil prices rise dramatically in a short period of time, resulting in refining losses.Refined products competition may intensify as other Chinese firms

China may have to relax some protectionist policies that favor the company to comply with WTO and other global trade regulations.An appreciating Chinese currency will hurt revenue and profits.Government control of the company may mean national interests take precedence over investors'

If gas prices sink or credit markets become choppy, this could challenge the firm's plan to sell itself at a compelling price.If recent weakness in natural gas prices persists and credit remains expensive and elusive, exploration and production firms with undeveloped properties (like Petrohawk)

Concerns over offshore drilling after the BP oil spill may delay McMoRan's plans to drill new exploration wells and to evaluate and develop Davy Jones wells . We're concerned about how cash generation from new operations will cover high offshore operating costs and financial obligations . McMoRan

If gas prices sink or credit markets become choppy , it could challenge the firm's plan to sell itself at a compelling price . If recent weakness in natural gas prices persists and credit remains expensive and elusive , E & P firms with undeveloped properties ( like Hawk ) could find growth more

Robust natural gas supply growth in 2009 coupled with weak industrial natural gas demand has put a damper on the near-term outlook for natural gas prices.Proposed changes to the tax code, if enacted, could reduce Cimarex's operating cash flow more than 20%, all else equal.Cimarex is still very

In the short-term refining capacity will outstrip demand in China, reducing margins.The Chinese government may not increase refined product prices if crude oil prices rise dramatically in a short period of time, causing refining losses.Refined products competition will intensify as other Chinese

We're concerned about how cash generation from new operations will cover high offshore operating costs and financial obligations.McMoRan runs the risk of costly exploratory dry holes that could disrupt plans to increase production and related cash flow.As a Gulf Coast oil and gas producer, McMoRan