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H.S. junior Avg
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New words:
Antero, approve, consent, consummation, conversion, delist, delisting, direct, direction, Fourth, holder, maximum, notifying, proposed, proxy, requested, Restated, Schedule, solicitation, solicited, suspension, ticker, unpaid, withdrawal
Removed:
adequate, advantage, authorized, combination, commercial, competitive, controlling, depend, effectively, execute, formed, generating, grow, improve, improving, maximizing, negotiated, open, optimize, optimizing, positioned, preserve, prevailing, privately, projected, prudently, realign, recent, retire, seek, source, stable, strategy, strength, stronger, tender, terminalling, throughput, wide, winter
Financial report summary
?Risks
- Our business depends on hydrocarbon supply and demand fundamentals, which can be adversely affected by numerous factors outside of our control.
- The widespread outbreak of an illness, pandemic (like COVID-19) or any other public health crisis may have material adverse effects on our business, financial position, results of operations and/or cash flows.
- Our future growth may be limited if we are unable to complete successful, accretive growth projects.
- Our ability to finance new growth projects and make capital expenditures may be limited by our access to the capital markets or ability to raise investment capital at a cost of capital that allows for accretive midstream investments.
- The growth projects we complete may not perform as anticipated.
- We may rely upon third-party assets to operate our facilities, and we could be negatively impacted by circumstances beyond our control that temporarily or permanently interrupt the operation of such third-party assets.
- A substantial portion of our revenue is derived from our operations in the Williston Basin, and due to such geographic concentration, adverse developments in the Williston Basin could impact our financial condition and results of operations.
- Our gathering and processing operations depend, in part, on drilling and production decisions of others.
- Estimates of oil and gas reserves depend on many assumptions that may turn out to be inaccurate, and future volumes on our gathering systems may be less than anticipated.
- We are exposed to credit risks of our customers, and any material nonpayment or nonperformance by our key customers could adversely affect our cash flows and results of operations.
- Our storage and logistics operations are seasonal and generally have lower cash flows in certain periods during the year, which may require us to borrow money to fund our working capital needs of these businesses.
- Counterparties to our commodity derivative and physical purchase and sale contracts in our storage and logistics operations may not be able to perform their obligations to us, which could materially affect our cash flows and results of operations.
- Our storage and logistics operations and certain of our gathering and processing operations are subject to commodity risk, basis risk or risk of adverse market conditions, which can adversely affect our financial condition and results of operations.
- Changes in future business conditions could cause our long-lived assets and goodwill to become impaired, and our financial condition and results of operations could suffer if we record future impairments of long-lived assets and goodwill.
- Our industry is highly competitive, and increased competitive pressure could adversely affect our ability to execute our growth strategy.
- Our level of indebtedness could adversely affect our ability to raise additional capital to fund operations, limit our ability to react to changes in our business or industry, and place us at a competitive disadvantage.
- Restrictions in our revolving credit facility and indentures governing our senior notes could adversely affect our business, financial condition, results of operations and ability to make distributions.
- A change of control could result in us facing substantial repayment obligations under our Crestwood Midstream revolving credit facility and indentures governing our senior notes.
- Our ability to make cash distributions may be diminished, and our financial leverage could increase, if we are not able to obtain needed capital or financing on satisfactory terms.
- Increases in interest rates could adversely impact our unit price, ability to issue equity or incur debt for acquisitions or other purposes, and ability to make payments on our debt obligations.
- A downgrade of our credit ratings could impact our and our subsidiaries’ liquidity, access to capital and costs of doing business, and maintaining credit ratings is under the control of independent third parties.
- The loss of key personnel could adversely affect our ability to operate.
- We operate joint ventures that may limit our operational flexibility.
- We may not be able to renew or replace expiring contracts.
- Inflation could adversely impact our ability to control operating expenses and capital costs, increase our level of indebtedness and adversely impact our customer base. The fees we charge to customers under our contracts may not escalate sufficiently to cover our cost increases, which could negatively impact our business, financial condition and results of operations.
- Our contracts may be suspended in some circumstances.
- We may be unable to make attractive acquisitions or successfully integrate acquired businesses, and the inability to do so may disrupt our business and hinder our ability to grow.
- Our business involves many hazards and risks, some of which may not be fully covered by insurance.
- We do not own all of the land on which our pipelines and facilities are located, which could disrupt our operations.
- Terrorist attacks or “cyber security” events, or the threat of them, may adversely affect our business.
- We are or may become subject to cyber security and data privacy laws, regulations, litigation and directives relating to our processing of personal data.
- Increasing attention to environmental, social and governance (ESG) matters may impact our business.
- Our operations are subject to extensive regulation, and regulatory measures adopted by regulatory authorities could have a material adverse effect on our business, financial condition and results of operations.
- A change in the jurisdictional characterization of our gathering assets may result in increased regulation, which could cause our revenues to decline and operating expenses to increase.
- Our and our customers’ operations are subject to various risks arising out of the threat of climate change, energy conservation measures, or initiatives that stimulate demand for alternative forms of energy that could result in increased costs, limit the areas in which oil and natural gas production may occur and reduced demand for our services.
- We may incur higher costs as a result of pipeline integrity management program testing and additional safety legislation.
- Our partnership agreement requires that we distribute all of our available cash, which could limit our ability to grow given the current trends existing in the capital markets.
- We may issue additional common units without common unitholder approval, which would dilute existing common unitholder ownership interests.
- Common unitholders may have liability to repay distributions and in certain circumstances may be personally liable for the obligations of the partnership.
- The amount of cash we have available for distribution to common unitholders depends primarily on our cash flow (including distributions from joint ventures) and not solely on profitability, which may prevent us from making cash distributions during periods when we record net income.
- Our preferred units contain covenants that may limit our business flexibility.
- Our partnership agreement limits our general partner’s fiduciary duties to us and restricts the remedies available for actions taken by our general partner that might otherwise constitute breaches of fiduciary duty.
- Our general partner has a limited call right that may require unitholders to sell their units at an undesirable time or price.
- The tax treatment of publicly traded partnerships or an investment in our units could be subject to potential legislative, judicial or administrative changes and differing interpretations, possibly applied on a retroactive basis.
- If the IRS were to contest the federal income tax positions we take, it may adversely impact the market for our units, and the costs of any such contest would reduce our cash available for distribution to our unitholders.
- If the IRS makes audit adjustments to our income tax returns for tax years beginning after December 31, 2017, it (and some states) may assess and collect any taxes (including any applicable penalties and interest) resulting from such audit adjustments directly from us, in which case our cash available for distribution to our unitholders might be substantially reduced and our current and former unitholders may be required to indemnify us for any taxes (including any applicable penalties and interest) resulting from such audit adjustments that were paid on such unitholders’ behalf.
- Our unitholders are required to pay taxes on their share of our income even if they do not receive any cash distributions from us.
- Tax gain or loss on the disposition of our units could be more or less than expected.
- Unitholders may be subject to limitation on their ability to deduct interest expense incurred by us.
- Tax-exempt entities face unique tax issues from owning our units that may result in adverse tax consequences to them.
- Non-U.S. unitholders will be subject to U.S. taxes and withholding with respect to their income and gain from owning our units.
- We will treat each purchaser of our units as having the same tax benefits without regard to the specific units actually purchased. The IRS may challenge this treatment, which could adversely affect the value of our units.
- We generally prorate our items of income, gain, loss and deduction between transferors and transferees of our units each month based upon the ownership of our units on the first day of each month, instead of on the basis of the date a particular unit is transferred. The IRS may challenge this treatment, which could change the allocation of items of income, gain, loss and deduction among our unitholders.
- A unitholder whose units are the subject of a securities loan (i.e., a loan to a “short seller” to cover a short sale of units) may be considered as having disposed of those units. If so, he would no longer be treated for tax purposes as a partner with respect to those units during the period of the loan and may recognize gain or loss from the disposition.
- Our unitholders will likely be subject to state and local taxes and income tax return filing requirements in jurisdictions where they do not live as a result of investing in our units.
- The tax treatment of distributions on our preferred units is uncertain and the IRS may determine that preferred distributions are guaranteed payments, which may result in less favorable tax treatment to the holder of such preferred units.
Management Discussion
- Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations
- Our Management’s Discussion and Analysis of Financial Condition and Results of Operations should be read in conjunction with our consolidated financial statements and the accompanying footnotes, and Part I, Item 1. Business.
- A comparative discussion of our 2021 operating results to our 2020 operating results can be found in Part II, Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations included in our Annual Report on Form 10-K for the year ended December 31, 2021 filed with the SEC on February 25, 2022.