ONE Gas (OGS) risk factors, FY2024 10-K

ONE Gas's FY2024 10-K, filed Feb 20, 2025, lists 15 risk factors in 3 groups. There is no earlier 10-K to compare against, so the most company-specific risks are listed below.

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Risk factors listed
153 groups
Section length
4k wordsItem 1A

ONE Gas's biggest risks in the FY2024 10-K

  • ONE Gas faces heavy operational risks in natural gas distribution across Oklahoma, Kansas, and Texas.
  • Regulatory oversight by agencies like OCC, KCC, RRC, and PHMSA heavily dictates returns and compliance costs.
  • Cyber threats, workforce strikes, and financing costs are core operational concerns.

The risks most specific to ONE Gas

  • OPERATIONAL RISKS

    Our business is subject to operational hazards and unforeseen interruptions that could materially and adversely affect our business and for which we may not be insured adequately

    We face operational hazards such as pipeline leaks, accidents, and equipment failures that could impact public safety and system reliability.

  • OPERATIONAL RISKS

    We may be unable to attract and retain management and professional and technical employees, or we may experience workforce disruptions due to strikes or work stoppages by our unionized employees, which could adversely impact our operations, earnings, and cash flows

    Unionized workforce strikes, work stoppages, or failure to attract and retain skilled technical employees could disrupt our operations and earnings.

  • OPERATIONAL RISKS

    The availability of adequate natural gas pipeline transportation and storage capacity and natural gas supply may decrease and impair our ability to meet customers’ natural gas requirements and our financial condition may be adversely affected

    Reduced availability of third-party natural gas supply, pipeline transportation, and storage capacity could impair our ability to meet customer demands.

  • OPERATIONAL RISKS

    Our business increasingly relies on technology, the failure of which may adversely affect our financial results and cash flows

    Technology failures, including our enterprise resource planning system, could adversely affect our financial results and cash flows.

  • OPERATIONAL RISKS

    The occurrence of cyber breaches or physical security attacks on our business, or those of third parties, may disrupt or adversely affect our operations or result in the loss or misuse of confidential and proprietary information

    Cyber breaches or physical security attacks on our IT and operational technology systems could disrupt operations or leak confidential data.

  • OPERATIONAL RISKS

    We are subject to various risks associated with climate change which could increase our operating costs or restrict our opportunities in new or existing markets, adversely affecting our financial results, growth, cash flows and results of operations

    Climate change and extreme weather could alter customer energy use, shift population in our service territory, and increase operating costs.

  • REGULATORY AND LEGISLATIVE RISKS

    We are subject to federal, state, and local regulation of the safety of our systems and operations, including pipeline safety, system integrity, and the safety of our employees and facilities that may require significant expenditures or, in the case of noncompliance, substantial fines or penalties

    Federal and state pipeline safety regulations from PHMSA, DOT, and OSHA may require significant expenditures and heavy noncompliance penalties.

  • REGULATORY AND LEGISLATIVE RISKS

    We are subject to federal, state, and local laws, rules and regulations that could impact our ability to earn a reasonable rate of return on our invested capital and to fully recover our invested capital, operating costs, and natural gas costs

    Decisions by the OCC, KCC, RRC, and Texas municipalities could impact our ability to earn a reasonable return and recover capital.

  • FINANCIAL, ECONOMIC AND MARKET RISKS

    Our business activities are concentrated in three states

    Our business concentration in Oklahoma, Kansas, and Texas exposes us to regional economic, political, and weather volatility.

  • FINANCIAL, ECONOMIC AND MARKET RISKS

    Our financing arrangements subject us to various restrictions that could limit our operating flexibility, earnings, and cash flows

    Covenants in our Senior Notes indentures and credit agreement restrict our operating flexibility and ability to create liens or merge.

All 15 risk factors

Headings as the filing states them, in filing order.

OPERATIONAL RISKS

  1. 01Our business is subject to operational hazards and unforeseen interruptions that could materially and adversely affect our business and for which we may not be insured adequately
  2. 02We may be unable to attract and retain management and professional and technical employees, or we may experience workforce disruptions due to strikes or work stoppages by our unionized employees, which could adversely impact our operations, earnings, and cash flows
  3. 03The availability of adequate natural gas pipeline transportation and storage capacity and natural gas supply may decrease and impair our ability to meet customers’ natural gas requirements and our financial condition may be adversely affected
  4. 04Our business increasingly relies on technology, the failure of which may adversely affect our financial results and cash flows
  5. 05The occurrence of cyber breaches or physical security attacks on our business, or those of third parties, may disrupt or adversely affect our operations or result in the loss or misuse of confidential and proprietary information
  6. 06We are subject to various risks associated with climate change which could increase our operating costs or restrict our opportunities in new or existing markets, adversely affecting our financial results, growth, cash flows and results of operations

REGULATORY AND LEGISLATIVE RISKS

  1. 07We are subject to federal, state, and local regulation of the safety of our systems and operations, including pipeline safety, system integrity, and the safety of our employees and facilities that may require significant expenditures or, in the case of noncompliance, substantial fines or penalties
  2. 08We are subject to federal, state, and local laws, rules and regulations that could impact our ability to earn a reasonable rate of return on our invested capital and to fully recover our invested capital, operating costs, and natural gas costs
  3. 09We are subject to environmental regulations and legislation, including those intended to address climate change, which could increase our operating costs, adversely affecting our financial results, growth, cash flows and results of operations
  4. 10We are subject to federal, state, and local laws, rules and regulations that could affect our operations and financial results

FINANCIAL, ECONOMIC AND MARKET RISKS

  1. 11Unfavorable economic and market conditions could adversely affect our financial condition, earnings, cash flows and limit our future growth
  2. 12Our business activities are concentrated in three states
  3. 13The inability to access capital or significant increases in the cost of capital could adversely affect our results of operations, cash flows and financial condition
  4. 14Our financing arrangements subject us to various restrictions that could limit our operating flexibility, earnings, and cash flows
  5. 15We may pursue acquisitions, divestitures, and other strategic opportunities which, if not successful, may adversely impact our results of operations, cash flows and financial condition

Other ONE Gas 10-Ks

About this page

The headings are the filing's own. The one-line readings and the overview are automated and can be wrong: read Item 1A of the 10-K for the exact wording.