Kinder Morgan (KMI) risk factors, FY2024 10-K

Risks Related to our Business

1. 01Our businesses are dependent on the supply of and demand for the products we handle
2. 02We face competition from other pipelines and terminals, as well as other forms of transportation and storage
3. 03The revenues, cash flows, profitability and future growth of some of our businesses (and the carrying values of certain of their respective assets, which include related goodwill) depend to a large degree on prevailing crude oil, NGL and natural gas prices
4. 04If commodity prices fall substantially or remain low for a sustained period and we are not sufficiently protected through hedging arrangements, we may be unable to realize a profit from these businesses and would operate at a loss
5. 05Commodity transportation and storage activities involve numerous risks that may result in accidents or otherwise adversely affect our operations
6. 06Our operating results may be adversely affected by unfavorable economic and market conditions
7. 07Financial distress experienced by our customers or other counterparties could have an adverse impact on us in the event they are unable to pay us for the products or services we provide or otherwise fulfill their obligations to us
8. 08Furthermore, financially distressed customers might be forced to reduce or curtail their future use of our products and services, which also could have a material adverse effect on our results of operations, financial condition, and cash flows
9. 09We are subject to reputational risks and risks relating to public opinion
10. 10Our use of hedging arrangements does not eliminate our exposure to commodity price risks and could result in financial losses or volatility in our income
11. 11A breach of information security or the failure of one or more key IT or operational (OT) systems, or those of third parties, may adversely affect our business, results of operations or business reputation
12. 12Attacks, including acts of terrorism or cyber sabotage, or the threat of such attacks, may adversely affect our business or reputation
13. 13Development of new technologies could create additional risk, or we may not have sufficient resources to manage our technology
14. 14The acquisition of additional businesses and assets is part of our growth strategy. We may experience difficulties completing acquisitions or integrating new businesses and properties, and we may be unable to achieve the benefits we expect from any future acquisitions
15. 15Hurricanes, earthquakes, flooding and other natural disasters, as well as subsidence and coastal erosion and climate-related physical risks, could have an adverse effect on our business, financial condition and results of operations
16. 16Our insurance policies do not cover all losses, costs or liabilities that we may experience, and insurance companies that currently insure companies in the energy industry may cease to do so or substantially increase premiums
17. 17Substantially all of the land on which our pipelines are located is owned by third parties. If we are unable to procure and maintain access to land owned by third parties, our revenue and operating costs, and our ability to complete construction projects, could be adversely affected
18. 18The future success of our oil and gas development and production operations depends in part upon our ability to develop additional oil and gas reserves that are economically recoverable, which involves risks that may result in a total loss of investment
19. 19Our business requires the retention and recruitment of a skilled executive team and workforce, and difficulties recruiting and retaining executives and other key personnel could impair our ability to develop and implement our business strategy

Risks Related to Financing Our Business

1. 20Our substantial debt could adversely affect our financial health and make us more vulnerable to adverse economic conditions
2. 21Our business, financial condition and operating results may be affected adversely by adverse changes in the availability, terms and cost of capital or a reduction in the availability of credit
3. 22Our and our customers’ access to capital could be affected by evolving financial institutions’ policies concerning businesses linked to fossil fuels
4. 23Our large amount of debt makes us vulnerable to increases in interest rates to the extent we have variable-rate debt and maturing fixed-rate debt
5. 24Our debt instruments may limit our financial flexibility and increase our financing costs

Risks Related to Regulation

1. 25New laws, policies, regulations, rulemaking and oversight, as well as changes to those currently in effect, could adversely impact our earnings, cash flows and operations
2. 26Environmental, health and safety laws and regulations could expose us to significant costs and liabilities
3. 27Increased regulatory requirements relating to the safety and integrity of our pipelines may require us to incur significant capital and operating expenses
4. 28Climate-related risks and related regulation could result in significantly increased operating and capital costs for us and could reduce demand for our products and services
5. 29Any of the foregoing could have adverse effects on our business, financial position, results of operations or cash flows

Risks Related to Ownership of Our Capital Stock

1. 30The guidance we provide for our anticipated dividends is based on estimates. Circumstances may arise that lead to conflicts between using funds to pay anticipated dividends or to invest in our business