Oneok (OKE) risk factors, FY2024 10-K

Other

1. 01If the level of drilling in the regions in which we operate declines substantially near our assets, our volumes and revenues could decline
2. 02Our operating results may be affected adversely by unfavorable economic and market conditions
3. 03The volatility of natural gas, NGL, Refined Products and crude oil prices could affect adversely our earnings and cash flows
4. 04Reduced volatility in energy prices or new government regulations could discourage our storage customers from holding positions in Refined Products, crude oil and natural gas, which could adversely affect our business
5. 05We depend on producers, gathering systems, refineries and pipelines owned and operated by others to supply our assets, and any closures, interruptions or reduced activity levels at these facilities may adversely affect our business, results of operations, financial position and cash flows
6. 06Increasing attention to ESG issues, including climate change, may impact our business
7. 07We may be subject to risks associated with the physical impacts of climate change
8. 08Our operations are subject to operational hazards and unforeseen interruptions, which could affect adversely our business and for which we may not be adequately insured
9. 09Continued development of supply sources outside of our operating regions could impact demand for our services
10. 10A breach of information security, including a cybersecurity attack, or failure of one or more key information technology or operational systems, or those of third parties, may affect adversely our operations, financial results or reputation
11. 11Terrorist attacks, including cyber sabotage, aimed at our facilities could affect adversely our business, results of operations, financial position and cash flows
12. 12Growing our business by constructing new pipelines and facilities or making modifications to our existing facilities subjects us to construction risk and supply risks, should adequate natural gas, NGL, Refined Products and crude oil supply be unavailable upon completion of the facilities
13. 13Estimates of hydrocarbon reserves may be inaccurate, which could result in lower than anticipated volumes
14. 14We do not own all of the land on which our pipelines and facilities are located, and we lease certain facilities and equipment, which could disrupt our operations
15. 15Measurement adjustments on our pipeline systems may be impacted materially by changes in estimation, type of commodity and other factors
16. 16We face competition for supply and, as a result, we may have significant levels of excess capacity on our pipeline, processing, fractionation, terminal and storage assets
17. 17Many of our assets have been in service for several decades
18. 18Our operating cash flows are derived partially from cash distributions we receive from our unconsolidated affiliates
19. 19We may be unable to cause our joint ventures to take or not to take certain actions unless some or all of our joint-venture participants agree
20. 20We do not operate all of our joint-venture assets nor do we employ directly all of the persons responsible for providing administrative, operating and management services. This reliance on others to operate joint-venture assets and to provide other services could affect adversely our business and results of operations
21. 21Our ability to use net operating losses and certain other tax attributes to offset future taxable income may be limited
22. 22Increased regulation of exploration and production activities, including hydraulic fracturing, well setbacks and disposal of wastewater, could result in reductions or delays in drilling and completing new crude oil and natural gas wells
23. 23Our business is subject to regulatory oversight and potential penalties
24. 24Rate regulation, challenges by shippers of the rates we charge for transportation on our pipelines or changes in the jurisdictional characterization of our assets or activities by federal, state or local regulatory agencies may reduce the amount of cash we generate
25. 25Our liquids blending activities subject us to federal regulations that govern renewable fuel requirements in the U.S
26. 26We may face significant costs to comply with the regulation of GHG emissions
27. 27Changes in interest rates could affect adversely our business
28. 28Any reduction in our credit ratings could affect adversely our business, results of operations, financial position and cash flows
29. 29Our indebtedness and guarantee obligations could impair our financial condition and our ability to fulfill our obligations
30. 30An event of default may require us to offer to repurchase certain of our and ONEOK Partners’ senior notes or may impair our ability to access capital
31. 31The right to receive payments on our outstanding debt securities and subsidiary guarantees is unsecured and will be effectively subordinated to any future secured indebtedness as well as to any existing and future indebtedness of our subsidiaries that do not guarantee the senior notes
32. 32A court may use fraudulent conveyance considerations to avoid or subordinate the cross guarantees of our and ONEOK Partners’ indebtedness
33. 33Mergers and acquisitions that appear to be accretive may nevertheless reduce our cash from operations on a per-share basis
34. 34We may be unable to integrate the businesses of EnLink and Medallion successfully or realize the anticipated benefits of the EnLink Acquisitions and the Medallion Acquisition (collectively, the “Recent Acquisitions”)
35. 35Our future results following the closing of the Recent Acquisitions and any potential future transactions will suffer if we do not effectively manage our expanded operations
36. 36Holders of our common stock may receive dividends that vary from anticipated amounts, or no dividends at all
37. 37We are exposed to the credit risk of our customers or counterparties, and our credit risk management may not be adequate to protect against such risk
38. 38Our employees or directors may engage in misconduct or other improper activities, including noncompliance with regulatory standards and requirements
39. 39An impairment of goodwill, long-lived assets, including intangible assets, and equity-method investments could reduce our earnings
40. 40The cost of providing pension and postretirement health care benefits to eligible employees and qualified retirees is subject to changes in pension fund values and changing demographics and may increase
41. 41If we fail to maintain an effective system of internal controls, we may not be able to report accurately our financial results or prevent fraud. As a result, current and potential holders of our equity and debt securities could lose confidence in our financial reporting