Williams Cos (WMB)

Risks

• FORWARD-LOOKING STATEMENTS AND CAUTIONARY STATEMENT
• The financial condition of our natural gas transportation and midstream businesses is dependent on the continued availability of natural gas supplies in the supply basins that we access and demand for those supplies in the markets we serve.
• Prices for natural gas, NGLs, oil, and other commodities, are volatile and this volatility has and could continue to adversely affect our financial condition, results of operations, cash flows, access to capital, and ability to maintain or grow our businesses.
• We are exposed to the credit risk of our customers and counterparties, and our credit risk management will not be able to completely eliminate such risk.
• We face opposition to operation and expansion of our pipelines and facilities from various individuals and groups.
• We may not be able to grow or effectively manage our growth.
• Our industry is highly competitive and increased competitive pressure could adversely affect our business and operating results.
• We do not own 100 percent of the equity interests of certain subsidiaries, including the Partially Owned Entities, which may limit our ability to operate and control these subsidiaries. Certain operations, including the Partially Owned Entities, are conducted through arrangements that may limit our ability to operate and control these operations.
• We may not be able to replace, extend, or add additional customer contracts or contracted volumes on favorable terms, or at all, which could affect our financial condition, the amount of cash available to pay dividends, and our ability to grow.
• Certain of our gas pipeline services are subject to long-term, fixed-price contracts that are not subject to adjustment, even if our cost to perform such services exceeds the revenues received from such contracts.
• Some of our businesses are exposed to supplier concentration risks arising from dependence on a single or a limited number of suppliers.
• Failure of our service providers or disruptions to our outsourcing relationships might negatively impact our ability to conduct our business.
• An impairment of our assets, including property, plant, and equipment, intangible assets, and/or equity-method investments, could reduce our earnings.
• Increasing scrutiny and changing expectations from stakeholders with respect to our environmental, social and governance practices may impose additional costs on us or expose us to new or additional risks.
• We may be subject to physical and financial risks associated with climate change.
• Our operations are subject to operational hazards and unforeseen interruptions.
• Our business could be negatively impacted by acts of terrorism and related disruptions.
• A breach of our information technology infrastructure, including a breach caused by a cybersecurity attack on us or third parties with whom we are interconnected, may interfere with the safe operation of our assets, result in the disclosure of personal or proprietary information, and harm our reputation.
• If third-party pipelines and other facilities interconnected to our pipelines and facilities become unavailable to transport natural gas and NGLs or to treat natural gas, our revenues could be adversely affected.
• Our operating results for certain components of our business might fluctuate on a seasonal basis.
• We do not own all of the land on which our pipelines and facilities are located, which could disrupt our operations.
• Our business could be negatively impacted as a result of stockholder activism.
• Our costs and funding obligations for our defined benefit pension plans and costs for our other postretirement benefit plans are affected by factors beyond our control.
• A downgrade of our credit ratings, which are determined outside of our control by independent third parties, could impact our liquidity, access to capital, and our costs of doing business.
• Difficult conditions in the global financial markets and the economy in general could negatively affect our business and results of operations.
• Restrictions in our debt agreements and the amount of our indebtedness may affect our future financial and operating flexibility.
• Changes to interest rates or increases in interest rates could adversely impact our access to credit, share price, our ability to issue securities or incur debt for acquisitions or other purposes, and our ability to make cash dividends at our intended levels.
• Our hedging activities might not be effective and could increase the volatility of our results.
• The operation of our businesses might be adversely affected by regulatory proceedings, changes in government regulations or in their interpretation or implementation, or the introduction of new laws or regulations applicable to our businesses or our customers.
• The natural gas sales, transportation, and storage operations of our gas pipelines are subject to regulation by the FERC, which could have an adverse impact on their ability to establish transportation and storage rates that would allow them to recover the full cost of operating their respective pipelines and storage assets, including a reasonable rate of return.
• Our operations are subject to environmental laws and regulations, including laws and regulations relating to climate change and greenhouse gas emissions, which may expose us to significant costs, liabilities, and expenditures that could exceed our expectations.
• We face risks related to the COVID-19 pandemic and other health epidemics.
• We do not insure against all potential risks and losses and could be seriously harmed by unexpected liabilities or by the inability of our insurers to satisfy our claims.
• Failure to attract and retain an appropriately qualified workforce could negatively impact our results of operations.