In today’s competitive market, it is more important than ever to know a client’s business, and business development professionals expend a significant amount of resources getting to know the client. They gain valuable knowledge from news articles, analysts’ reports and various other sources. Yet one of the cheapest, most valuable and most often overlooked source is the client itself.
Public companies are required by the U.S. Securities and Exchange Commission to provide information to the public. There are dozens of types of mandatory SEC filings, such as those for making acquisitions or offering stock options, and they often run into the hundreds of pages. Searching for the right information can be daunting. Fortunately, there are ways to find the fight information – in a company’s annual filing – the 10K.
Most Common Form 10-K Risk Factors in the Oil & Gas Industry
| RANK | RISK FACTOR | FREQUENCY (%) |
| 1 | Fluctuations in the Price of Oil/Gas/Energy Commodities | 78 |
| 2 | Failure to Compete Successfully | 76 |
| 3 | Estimates of Reserves May be Inaccurate | 62 |
| 4 | Difficulty Raising Capital/Insufficient Funding | 62 |
| 5 | Exploration Risks | 56 |
| 6 | Dependence on Management Team | 54 |
| 7 | Compliance with Environmental, Health and Safety Regulations | 52 |
| 8 | Operational Hazards | 52 |
| 9 | Dependence on Acquisitions to Maintain Production/Reserves | 44 |
| 10 | Significant Regulation | 43 |
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