UGI (UGI) risk factors, FY2025 10-K

Risks Relating to the Demand for Our Products and Services and Our Ability to Grow Our Customer Base

1. 01Our business is seasonal and decreases in the demand for our energy products and services because of warmer-than-normal heating season weather or unfavorable weather conditions may adversely affect our results of operations
2. 02The potential effects of climate change may affect our business, operations, supply chain and customers, which could adversely impact our financial condition and results of operations
3. 03Our potential to increase revenues may be affected by the decline in retail volumes of LPG and our ability to retain and grow our customer base
4. 04Our ability to successfully execute on strategic initiatives and achieve our long-term goals may be adversely affected if we are not successful in identifying and completing strategic transactions and investments, or if we are unable to realize the anticipated benefits from such strategic transactions and investments
5. 05Energy efficiency and technology advances, as well as price induced customer conservation, may result in reduced demand for our energy products and services
6. 06Our operations may be adversely affected by competition from other energy sources
7. 07The expansion, construction and development of our energy infrastructure assets subjects us to risks
8. 08Our utility transmission and distribution systems, our non-utility midstream assets, and the assets of upstream interstate pipelines and other midstream providers may not operate as planned, which may increase our expenses or decrease our revenues and, thus, have an adverse impact on our financial results

Risks Relating to Our International Operations

1. 09Our international operations could be subject to increased risks, which may negatively affect our business results
2. 10Economic and geopolitical instability, including as a result of acts of war, have had, and could continue to have, an adverse effect on our operating results, financial condition, and cash flows

Risks Relating to Our Supply Chain and Our Ability to Obtain Adequate Quantities of LPG

1. 11We are dependent on our principal LPG suppliers, which increases the risks from an interruption in supply and transportation
2. 12Our ability to obtain sufficient quantities of LPG is dependent on transportation facilities and providers
3. 13Our profitability is subject to LPG pricing and inventory risk
4. 14Changes in commodity market prices may have a significant negative effect on our liquidity
5. 15Supplier and derivative counterparty defaults may have a negative effect on our operating results

Risks Relating to Government Regulation and Oversight

1. 16Regulators may not approve the rates we request and existing rates may be challenged, which may adversely affect our results of operations
2. 17The enactment of proposed or future tax legislation may adversely impact our financial condition and results of operations
3. 18Our need to comply with, and respond to, industry-wide changes resulting from, comprehensive, complex, and sometimes unpredictable governmental regulations, including regulatory initiatives aimed at increasing competition within our industry, may increase our costs and limit our revenue growth, which may adversely affect our operating results
4. 19Our operations, financial results and cash flows may be adversely affected by existing and future global climate change laws and regulations, including with respect to GHG emission restrictions, as well as market responses thereto
5. 20Changes in data privacy and data protection laws and regulations or any failure to comply with such laws and regulations, could adversely affect our business and financial results
6. 21The provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”), related regulations, and the rules adopted thereunder and other regulations, including the European Market Infrastructure Regulation (the “EMIR”), may have an adverse effect on our ability to use derivative instruments to hedge risks associated with our business
7. 22The inability to attract, develop, retain and engage key employees could adversely affect our ability to execute our strategic, operational and financial plans24% rewritten
8. 23We may not be able to collect on the accounts of our customers
9. 24We are subject to operating and litigation risks that may not be covered by insurance
10. 25The risk of natural disasters, pandemics and catastrophic events, including acts of war and terrorism, may adversely affect the economy and the price and availability of LPG, other refined fuels and natural gas
11. 26Our indebtedness may adversely affect our business, financial condition and operating results. Our debt agreements also contain covenants that restrict our operational flexibility
12. 27Conversion of our convertible debt instruments could negatively affect our liquidity, dilute shareholders, or impact our financial positionNew
13. 28An impairment of our assets could adversely affect our financial condition and results of operations51% rewritten
14. 29Our holding company structure could limit our ability to pay dividends or service debt
15. 30Volatility in credit and capital markets may restrict our ability to grow, increase the likelihood of defaults by our suppliers and vendors, customers and counterparties and adversely affect our operating results
16. 31We depend on our intellectual property and failure to protect that intellectual property could adversely affect us
17. 32Declines in the stock market or bond market, and a low interest rate environment, may negatively impact our balance sheet and pension liability