Targa Resources (TRGP) risk factors, FY2024 10-K

Risks Related to our Results of Operations

1. 01Our cash flow is affected by supply and demand for natural gas, NGL products and crude oil and by natural gas, NGL, crude oil and condensate prices, and decreases in commodity prices and/or activity levels could adversely affect our results of operations and financial condition
2. 02A reduction in demand for NGL products by the petrochemical, refinery or other industries or by the fuel or export markets, or a significant increase in NGL product supply relative to this demand, could materially adversely affect our business, results of operations and financial condition
3. 03We operate in areas of high industry activity, which may affect our ability to hire, train or retain qualified personnel needed to manage and operate our business
4. 04If we lose any of our named executive officers, our business may be adversely affected
5. 05Unexpected volume changes due to production variability or to gathering, plant or pipeline system disruptions may increase our exposure to commodity price movements
6. 06We face opposition to operation and expansion of our pipelines and facilities from various individuals and groups
7. 07We are subject to cybersecurity risks. A cyber incident could occur and result in information theft, data corruption, operational disruption, disclosure of business sensitive, confidential or personally identifiable information, misdirected wire transfers, reputational harm, and financial loss
8. 18Our cash flow is affected by supply and demand for natural gas, NGL products and crude oil and by natural gas, NGL, crude oil and condensate prices, and decreases in commodity prices and/or activity levels could adversely affect our results of operations and financial condition
9. 19the extent and nature of governmental regulation and taxation, including those related to the prorationing of oil and gas production
10. 20Propane. Propane is used as a petrochemical feedstock in the production of ethylene and propylene, as a heating, engine and industrial
11. 21Our industry is highly competitive and increased competitive pressure could adversely affect our business and operating results
12. 22We typically do not obtain independent evaluations of natural gas or crude oil reserves dedicated to our gathering pipeline systems; therefore, volumes on our systems in the future could be less than we anticipate
13. 23We do not own most of the land on which our pipelines, terminals and compression facilities are located, which could disrupt our operations
14. 24other hazards that could also result in personal injury, loss of life, pollution and/or suspension of operations
15. 25Portions of our pipeline systems may require increased expenditures for maintenance and repair owing to the age of some of our systems, which expenditures or resulting loss of revenue due to pipeline age or condition could have a material adverse effect on our business and results of operations
16. 26Terrorist attacks and the threat of terrorist attacks have resulted in increased costs to our business. Continued global and domestic hostilities may adversely impact our results of operations
17. 27implement preventive and mitigating actions
18. 28The widespread outbreak of illnesses or any other public health crises that impacts operations and/or the global demand for energy commodities may have material adverse effects on our business, financial position, results of operations and/or cash flows

Risks Related to our Capital Projects and Future Growth

1. 08Our expansion or modification of existing assets or the construction of new assets may not result in revenue increases and are subject to regulatory, environmental, political, legal and economic risks, which could adversely affect our results of operations and financial condition
2. 29Our expansion or modification of existing assets or the construction of new assets may not result in revenue increases and are subject to regulatory, environmental, political, legal and economic risks, which could adversely affect our results of operations and financial condition
3. 30customer or key employee losses at the acquired businesses or to a competitor
4. 31A reduction in divestitures of energy assets by industry participants or a decrease in opportunities for industry expansion could limit our opportunities for future growth projects or acquisitions and could adversely affect our operations and cash flows available to pay cash dividends to our stockholders
5. 32We 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
6. 33In addition, subject to certain conditions, any joint venture owner may sell, transfer or otherwise modify its ownership interest in a joint venture, whether in a transaction involving third parties or the other joint owners. Any such transaction could result in our partnering with different or additional parties

Risks Related to our Financial Condition

1. 09We are exposed to credit risks of our customers, and any material nonpayment or nonperformance by our key customers could adversely affect our cash flow and results of operations
2. 10Inflationary issues and associated changes in monetary policy have resulted in and may result in additional increases to the cost of our goods, services and personnel, which in turn cause our capital expenditures and operating costs to rise
3. 11The amounts we pay in dividends may vary from anticipated amounts and circumstances may arise that lead to conflicts between using funds to pay anticipated dividends or to invest in our business
4. 12Changes in tax laws or the interpretation thereof or the imposition of new or increased taxes may adversely affect our financial condition, results of operations and cash flows
5. 34If we fail to maintain an effective system of internal controls, we may not be able to accurately report our financial results or prevent fraud. In addition, potential changes in accounting standards might cause us to revise our financial results and disclosure in the future
6. 35If we fail to balance our purchases and sales of the commodities we handle, our exposure to commodity price risk will increase
7. 36Our future tax liability may be greater than expected if our NOL carryforwards are limited, we do not generate expected deductions, tax authorities successfully challenge certain of our tax positions or from changes in tax laws
8. 37Derivatives legislation and its implementing regulations could have a material adverse effect on our ability to use derivative instruments to reduce the effect of commodity price, interest rate and other risks associated with our business
9. 38Any of these consequences could have a material adverse effect on us, our financial condition and our results of operations

Risks Related to the Ownership of our Common Stock

1. 13Future sales of our common stock could lower our stock price, and any additional capital raised by us through the sale of equity or convertible securities may dilute your ownership in us
2. 39Future sales of our common stock could lower our stock price, and any additional capital raised by us through the sale of equity or convertible securities may dilute your ownership in us
3. 40Our amended and restated certificate of incorporation and amended and restated bylaws, as well as Delaware law, contain provisions that could discourage acquisition bids or merger proposals, which may adversely affect the market price of our common stock
4. 41limitations on the ability of our stockholders to call special meetings and establish advance notice provisions for stockholder proposals and nominations for elections to the board of directors to be acted upon at meetings of stockholders
5. 42We may issue preferred stock whose terms could adversely affect the voting power or value of our common stock

Risks Related to our Indebtedness

1. 14Increases in interest rates, due to associated Federal Reserve policies or otherwise, could adversely affect our cost of capital, which could increase our funding costs and reduce the overall profitability of our business
2. 15We have a substantial amount of indebtedness which may adversely affect our financial position and we may still be able to incur substantially more debt, which could collectively increase the risks associated with compliance with our financial covenants

Risks Related to Regulatory Matters

1. 16We could incur significant costs in complying with more stringent occupational safety and health requirements
2. 17Our operations are subject to environmental laws and regulations and a failure to comply or an accidental release into the environment may cause us to incur significant costs and liabilities
3. 47Stakeholder and market attention to sustainability matters and disclosure obligations may impact our business
4. 48shifts for our or our customers’ hydrocarbon products and additional governmental investigations and private litigation against us or those customers
5. 49Should we fail to comply with all applicable FERC-administered statutes, rules, regulations and orders, we could be subject to substantial penalties and fines
6. 50We are subject to cybersecurity and data privacy laws and regulations, and we may become subject to litigation and directives relating to our processing of personal information

Risks Related to Our Indebtedness

1. 43Increases in interest rates, due to associated Federal Reserve policies or otherwise, could adversely affect our cost of capital, which could increase our funding costs and reduce the overall profitability of our business
2. 44our debt level may limit flexibility in planning for, or responding to, changing business and economic conditions
3. 45The terms of our debt agreements may restrict our current and future operations, particularly our ability to respond to changes in business or to take certain actions, including to pay dividends to our stockholders
4. 46In addition, certain of our debt agreements require us to satisfy and maintain specified financial ratios and other financial condition tests. Our ability to meet those financial ratios and tests can be affected by events beyond our control, and we cannot assure you that we will meet those ratios and tests