DT Midstream (DTM) risk factors, FY2024 10-K

Operational Risks

1. 01Our business is dependent on the continued availability of and demand for natural gas in our areas of operation, which include the Midwestern U.S., Canada, Northeastern U.S. and Gulf Coast regions
2. 02We have one key customer, Expand Energy. The loss of, or reduction in volumes from, this customer could result in a decline in demand for our services and materially adversely affect our business, financial condition and results of operations
3. 03We may be unable to renew or replace expiring contracts at favorable rates or on a long-term basis
4. 04We depend upon third-party pipelines and other facilities that provide receipt and delivery options to and from our assets. For example, our pipelines interconnect with multiple interstate pipelines in the Midwestern U.S., Canada, Northeastern U.S
5. 05Failure to successfully combine our business with the assets acquired in the Midwest Pipeline Acquisition, or an inaccurate estimate by us of the benefits to be realized from the Midwest Pipeline Acquisition, may adversely affect our future results
6. 06Expansion projects or acquisitions that are expected to be accretive, including our Midwest Pipeline Acquisition, may nevertheless reduce our cash from operations and could materially adversely affect our business, financial condition and results of operations
7. 07We have entered into joint ventures, and may in the future enter into additional or modify existing joint ventures, which might restrict our operational and corporate flexibility. In addition, these joint ventures are subject to most of the same operational risks to which we are subject
8. 08We do not own the majority of the land on which our assets are located, which could disrupt our current and future operations
9. 09We face and will continue to face opposition to the development or operation of our assets from various groups
10. 10Failure to retain and attract key executives and other skilled professional and technical employees could materially adversely affect our business, financial condition and results of operations
11. 11The lack of diversification of our assets and geographic locations could materially adversely affect our business, financial condition and results of operations
12. 12We may not have access to additional financing sources on favorable terms, or at all, which could materially adversely affect our business, financial condition and results of operations, and independent third parties determine our credit ratings outside of our control
13. 13Fluctuations in energy prices could materially adversely affect our business, financial condition and results of operations
14. 14We are exposed to our customers’ credit risk and our credit risk management and contractual terms may be inadequate to protect against such risk
15. 15Our existing and future level of debt may limit our flexibility to obtain additional financing and to pursue other business opportunities
16. 16Increases in interest rates could increase our interest expense and may adversely affect our cash flows, our ability to service our indebtedness and our ability to pay dividends to our shareholders
17. 17Restrictions under our existing or any future credit facilities, indentures and senior notes could adversely affect our business, financial condition, results of operations and ability to pay dividends to our shareholders
18. 18Inflation and cost increases may impact our sales margins and profitability
19. 19If our intangible assets or goodwill become impaired, we may be required to record a charge to earnings

Regulatory Risks

1. 20Risks related to climate change could materially adversely affect our business, financial condition, results of operations, cash flow, access to and cost of capital or insurance, reputation, and business strategies
2. 21Our operations are subject to environmental laws and regulations that may expose us to significant costs and liabilities, and changes in these laws and regulations could materially adversely affect our business, financial condition and results of operations
3. 22Our natural gas transportation and storage operations are subject to extensive regulation by FERC and state regulatory authorities, and changes in FERC or state regulation could materially adversely affect our business, financial condition and results of operations
4. 23acting on such applications. A revised Certificate Policy Statement could result in more stringent review of future projects within FERC’s jurisdiction
5. 24We are exposed to costs associated with lost and unaccounted-for volumes
6. 25A change in the jurisdictional characterization of our gathering assets may result in increased regulation by FERC, which could cause our revenues to decline and operating expenses to increase and could materially adversely affect our business, financial condition and results of operations
7. 26State and local legislative and regulatory initiatives relating to gas operations could adversely affect our services and customers’ production and therefore, materially adversely affect our business, financial condition and results of operations
8. 27Changes in tax laws or regulations may have a material adverse effect on our business, cash flow, financial condition or results of operations
9. 28Some of our operations cross the U.S./Canada border and are subject to cross-border regulation and potential tariffs which may have a material impact on our business, cash flow, financial condition or results of operations
10. 29We may incur significant costs and liabilities to maintain our pipeline integrity management program and related testing, pipeline repair, and preventative or remedial measures, as well as other operational and maintenance requirements and assessments
11. 30Certain portions of our pipelines, storage and gathering infrastructure are aging, which could materially adversely affect our business, financial condition and results of operations
12. 31Our insurance policies do not cover all losses, costs or liabilities that we may experience, and there is no assurance that we will be able to purchase cost effective insurance in the future
13. 32A terrorist attack or armed conflict event, or the threat of them, could harm our business

Other Business Risks

1. 33participate in various voluntary frameworks and certification programs to improve the ESG profile of our operations and products, we cannot guarantee that such participation or certification will have the intended results on our ESG profile
2. 34We are subject to cybersecurity and data privacy laws, regulations, litigation and directives relating to our processing of personal data
3. 35A cyberattack or threat could harm our business
4. 36Treated gas produced by Clean Fuels Gathering may not qualify for federal income tax credits for clean fuel production as had been projected

Risks Related to the Separation

1. 37The Separation may expose us to potential liabilities arising out of state and U.S. federal fraudulent conveyance laws and legal dividend requirements