Northwest Pipeline

Risks

• Certain of our 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.
• We may not be able to extend or replace expiring natural gas transportation and storage contracts at favorable rates, on a long-term basis, or at all.
• Competitive pressures could lead to decreases in the volume of natural gas contracted for or transported through our pipeline system.
• Any significant decrease in supplies of natural gas in the supply basins we access or in demand for those supplies in the markets we serve could adversely affect our business and operating results.
• Significant prolonged changes in natural gas prices could affect supply and demand and cause a reduction in or termination of our long-term transportation and storage contracts or throughput on our system.
• Our costs of testing, maintaining, or repairing our facilities may exceed our expectations, and the FERC may not allow, or competition in our markets may prevent, our recovery of such costs in the rates we charge for our services.
• 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.
• 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 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 depend on certain key customers for a significant portion of our revenues. The loss of any of these key customers or the loss of any contracted volumes could result in a decline in our business.
• 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.
• If third-party pipelines and other facilities interconnected to our pipeline and facilities become unavailable to transport natural gas, our revenues could be adversely affected.
• We do not own all of the land on which our pipeline and facilities are located, which could disrupt our operations.
• 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.
• Chemical substances in the natural gas our pipeline systems transport could cause damage or affect the ability of our pipeline systems or third-party equipment to function properly, which may result in increased preventative and corrective action costs and may impact our relationships with our customers.
• 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.
• Our ability to obtain credit in the future could be affected by Williams’ credit ratings.
• Restrictions in our debt agreements and the amount of our indebtedness may affect our future financial and operating flexibility.
• Difficult conditions in the global financial markets and the economy in general could negatively affect our business and results of operations.
• Williams can exercise substantial control over our distribution policy and our business and operations and may do so in a manner that is adverse to our interests.
• Our natural gas transportation and storage operations are subject to regulation by the FERC, which could have an adverse impact on our ability to establish transportation and storage rates that would allow us to recover the full cost of operating our pipeline and storage assets, including a reasonable rate of return.
• Failure of our service providers or disruptions to outsourcing relationships might negatively impact our ability to conduct our business.
• Our allocation from Williams for costs for its defined benefit pension plans and other postretirement benefit plans are affected by factors beyond our and Williams’ control.
• Our assets and operations, as well as our customers’ assets and operations, can be affected by weather and other natural phenomena.
• 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.
• 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.
• A failure to attract and retain an appropriately qualified workforce could negatively impact our results of operations.