Sector: Energy | Focus: Oil & Gas Storage & Transportation
HQ: Tulsa, Oklahoma
Financial Risks
The company faces risks from fluctuating commodity prices, impacting derivative instrument valuations and potentially affecting operating income. Credit risk from customers and counterparties is a concern. Regulatory hurdles, including potential delays or denials of permits for expansion projects, and litigation (including environmental matters) pose financial risks. Economic downturns, inflation, and interest rate increases are also potential risks. The company's ability to recover costs through rates is subject to regulatory approval.
Financial Upside
Recent acquisitions (Gulf Coast Storage, Discovery, DJ Basin, MountainWest) are expected to boost revenues and Modified EBITDA. Expansion projects, like Regional Energy Access, are anticipated to increase capacity and revenues. Favorable rate increases and higher volumes from existing operations are also potential revenue drivers. The sale of Aux Sable and certain liquids pipelines generated gains. Continued focus on earnings and cash flow growth is a stated goal.
