National Fuel Gas (NFG) risk factors, FY2024 10-K

STRATEGIC RISKS

1. 01The Company is dependent on capital and credit markets to successfully execute its business strategies
2. 02The regulatory, legislative, consumer behaviors and capital access developments related to climate change may adversely affect operations and financial results
3. 03Organized opposition to the natural gas industry could have an adverse effect on Company operations

FINANCIAL RISKS

1. 04As a holding company, the Company depends on its operating subsidiaries to meet its financial obligations
2. 05The Company may be adversely affected by economic conditions and their impact on our suppliers and customers
3. 06Changes in interest rates may affect the Company’s financing and its regulated businesses’ rates of return
4. 07Fluctuations in natural gas prices could adversely affect revenues, cash flows and profitability
5. 08The Company has significant transactions involving price hedging of its natural gas production, fixed price natural gas sale commitments, as well as its foreign exchange transactions
6. 09Use of price hedges, including natural gas hedges and foreign exchange hedges, also exposes the Company to the risk of nonperformance by a contract counterparty. These parties might not be able to perform their obligations under the hedge arrangements
7. 10You should not place undue reliance on reserve information because such information represents estimates
8. 11Financial accounting requirements regarding exploration and production activities may affect the Company’s profitability

OPERATIONAL RISKS

1. 12The nature of the Company’s operations presents inherent risks of loss that could adversely affect its results of operations, financial condition and cash flows
2. 13Our businesses depend on natural gas gathering, storage, and transmission facilities, which, if unavailable, could adversely affect the Company’s results of operations, financial condition, and cash flows
3. 14Attacks on or disruption of the Company’s information technology and operational technology systems, including third party attempts to breach the Company’s network security, or other cybersecurity threats and incidents could adversely affect the Company’s operations and financial results
4. 15The amount and timing of actual future natural gas production and the costs of our natural gas production operations are difficult to predict and may vary significantly from estimates, which may reduce the Company’s earnings
5. 16The Company’s ability to access water and opportunities for disposal or recycling produced water can impact drilling and completion operations
6. 17The physical risks associated with climate change may adversely affect the Company’s operations and financial results
7. 18Disputes with collective bargaining units representing the Company’s workforce, and work stoppage (e.g. strike or lockout), could adversely affect the Company’s operations as well as its financial results

REGULATORY RISKS

1. 19The Company’s need to comply with comprehensive, complex, and the sometimes unpredictable enforcement of government regulations may increase its costs and limit its revenue growth, which may result in reduced earnings
2. 20Environmental regulation significantly affects the Company’s business
3. 21Increased regulation of exploration and production activities, including hydraulic fracturing, could adversely impact the Company
4. 22The Company could be adversely affected by the delayed recovery or disallowance of purchased gas costs incurred by the Utility segment

GENERAL RISKS

1. 23The Company’s credit ratings may not reflect all the risks of an investment in its securities
2. 24The increasing costs of certain employee and retiree benefits, and the regulatory treatment of certain benefit plan activity, could adversely affect the Company’s results
3. 25Significant shareholders or potential shareholders may attempt to effect changes at the Company or acquire control over the Company, which could adversely affect the Company’s results of operations and financial condition