Spire (SR) risk factors, 2025 10-K

Other

1. 01Regulatory and legislative developments in the energy industry related to climate change or in support of increased energy efficiency may adversely affect operations and financial results33% rewritten
2. 02impact the Utilities’ financial conditions and results of operations. At this time, we cannot predict the potential impact of such laws or regulations that may be adopted on the Company’s and the Utilities’ future business, financial condition or financial resultsnew
3. 03Regulation of the Utilities’ businesses may impact rates they are able to charge, costs, and profitability21% rewritten
4. 04Federal safety and integrity regulations related to pipeline and storage operators and owners of critical infrastructure may impose significant costs and liabilities on the Company
5. 05implement preventative and mitigating actions62% rewritten
6. 06As such, pipeline owners and operators are required to establish and execute a TSA-approved Cybersecurity Implementation Plan, develop and maintain a Cybersecurity Incident Response Plan, and establish a Cybersecurity Assessment Program. To date, Spire is compliant with these requirements
7. 07Environmental laws and regulations may require significant expenditures or increase operating costs
8. 08The Utilities’ liquidity may be adversely affected by delays in recovery of their costs, due to regulation
9. 09Changes to income tax policy, certain tax elections, tax regulations and future taxable income could adversely impact the Company’s financial condition and results of operations76% rewritten
10. 10The Company may be involved in legal or administrative proceedings before various courts and governmental bodies that could adversely affect its results of operations and financial condition
11. 11Commodity markets and derivative instruments are regulated by federal agencies, and new developments in this area may adversely impact Spire Marketing’s results of operations and financial condition
12. 12The Company’s ability to meet its customers’ natural gas requirements may be impaired if contracted gas supplies, interstate pipeline and/or storage services are not available or delivered in a timely manner
13. 13Transporting, distributing, and storing natural gas and propane involves numerous risks that may result in accidents and other operational issues
14. 14Because of competition, the Company may not be able to retain existing customers or acquire new customers, or may be unsuccessful in retaining or acquiring contractual assets on favorable terms, which could have an adverse impact on its business, results of operations and financial condition
15. 15Significantly warmer-than-normal weather conditions and the effects of climate change may affect the Utilities’ sale of heating energy and adversely impact their financial position and results of operations
16. 16Any damage to the Spire Storage facilities or pipelines, or lack of integrity to its storage fields, including damages caused by a blow-out, to the extent such impacts are self-insured or not covered by insurance, could have a material adverse effect on the Company’s financial condition and results of operations
17. 17Increased dependence on technology may hinder the Company’s business operations and adversely affect their financial condition and results of operations if such technologies fail
18. 18A cyberattack may disrupt the Company’s operations or lead to a loss or misuse of confidential and proprietary information or potential liability27% rewritten
19. 19The Company’s business activities are concentrated in a few states and regions41% rewritten
20. 20As a holding company, Spire depends on its operating subsidiaries to meet its financial obligations
21. 21A downgrade in Spire’s and/or its subsidiaries’ credit ratings and/or reduced access to credit and capital markets may negatively affect its cost of capital or prevent it from executing operating strategies
22. 22Regional supply/demand imbalances, fluctuations in natural gas commodity prices, changes in the terms and rates charged by midstream facilities, and infrastructure projects may adversely impact the future profitability of the Company
23. 23Rapid significant increases in natural gas prices may adversely affect the Utilities’ liquidity and, in certain circumstances, results of operations
24. 24Risk management policies, including the use of derivative instruments, may not fully protect Spire Marketing’s sales and results of operations from volatility and may result in financial losses
25. 25Spire’s pension and other postretirement benefit plans are subject to investment and interest rate risk that could negatively impact its financial condition
26. 26In connection with acquisitions, Spire and Spire Missouri recorded goodwill and long-lived assets that could become impaired and adversely affect its financial condition and results of operations
27. 27Resources expended to pursue or integrate business acquisitions, investments, or other business arrangements may adversely affect Spire’s financial position and results of operations, and the return on such investments may not meet the Company’s expectations81% rewritten
28. 28Unexpected losses may adversely affect Spire’s or its subsidiaries’ financial condition and results of operations
29. 29Catastrophic events may adversely affect the Company’s facilities and operations
30. 30Workforce risks may affect the Company’s financial results
31. 31The Company may be adversely affected by economic conditions
32. 32Changes in accounting standards may adversely impact the Company’s financial condition and results of operations75% rewritten