1 unchanged sentence
For an in-depth discussion of our risk factors, see “Part I—Item 1A.
−Removed: Risk Factors” of our Annual Report in addition to the risk factors discussed below.
+Added: Risk Factors” of our Annual Report in addition to the risk factor discussed below.
All of these risks and uncertainties, including those risks discussed below, could adversely affect our business, financial condition and/or results of operations.
−Removed: Our cash flow is affected by supply and demand for natural gas, NGL products and crude oil and by natural gas, NGL, crude oil and condensate prices, and decreases in these prices could adversely affect our results of operations and financial condition.
−Removed: Our operations can be affected by the level of natural gas, NGL and crude oil prices and the relationship between these prices.
−Removed: The prices of crude oil, natural gas and NGLs have been volatile, and we expect this volatility to continue.
−Removed: Our future cash flows may be materially adversely affected if we experience significant, prolonged price deterioration.
−Removed: The markets and prices for crude oil, natural gas and NGLs depend upon factors beyond our control.
−Removed: These factors include supply and demand for these commodities, which fluctuates with changes in market and economic conditions, and other factors, including:
−Removed: the impact of seasonality and weather;
−Removed: general economic conditions and economic conditions impacting our primary markets;
−Removed: the economic conditions of our customers;
−Removed: the level of domestic crude oil and natural gas production and consumption;
−Removed: the availability of imported natural gas, liquefied natural gas, NGLs and crude oil;
−Removed: actions taken by major foreign oil and gas producing nations;
−Removed: the availability of local, intrastate and interstate transportation systems and storage for residue natural gas and NGLs;
−Removed: the availability of domestic storage for crude oil;
−Removed: the availability and marketing of competitive fuels and/or feedstocks;
−Removed: the impact of energy conservation efforts;
−Removed: stockholder activism and activities by non-governmental organizations to limit certain sources of funding for the energy sector or restrict the exploration, development and production of crude oil and natural gas;
−Removed: the extent of governmental regulation and taxation, including those related to the prorationing of oil and gas production.
−Removed: Additionally, we have been and may continue to be adversely affected by the continued impact on global demand for commodities related to the COVID-19 pandemic.
−Removed: The COVID-19 pandemic has reduced economic activity and the related demand for energy commodities.
−Removed: These effects, combined with a period of increased production from major oil producing nations and decreasing
−Removed: availability of crude oil storage has contributed to lower commodity prices compared to historical levels in 2020 to date and is expected to continue to impact demand over the short -to-medium -term.
−Removed: Our primary natural gas gathering and processing arrangements that expose us to commodity price risk are our percent-of-proceeds arrangements.
−Removed: Under these arrangements, we generally process natural gas from producers and remit to the producers an agreed percentage of the proceeds from the sale of residue gas and NGL products at market prices or a percentage of residue gas and NGL products at the tailgate of our processing facilities.
−Removed: In some percent-of-proceeds arrangements, we remit to the producer a percentage of an index-based price for residue gas and NGL products, less agreed adjustments, rather than remitting a portion of the actual sales proceeds.
−Removed: Under these types of arrangements, our revenues and cash flows increase or decrease, whichever is applicable, as the prices of natural gas, NGLs and crude oil fluctuate, to the extent our exposure to these prices is unhedged.
−Removed: Quantitative and Qualitative Disclosures About Market Risk.”
−Removed: As further discussed in Note 4 – Property, Plant and Equipment and Intangible Assets and Item 2.
−Removed: Management's Discussion and Analysis of Financial Condition and Results of Operations, the global decline in commodity prices due to both demand and supply disruptions was a significant contributing factor to the non-cash impairment charges totaling $2,442.8 million for the nine months ended September 30, 2020.
−Removed: The widespread outbreak of the COVID-19 pandemic or any other public health crisis that impacts the global demand for commodities may have material adverse effects on our business, financial position, results of operations and/or cash flows.
−Removed: We face risks related to the outbreak of illnesses, pandemics and other public health crises that are outside of our control and could significantly disrupt our operations and adversely affect our financial condition.
−Removed: For example, the recent global spread of COVID-19 has caused business disruption, including disruption to the oil and gas industry.
−Removed: The COVID-19 pandemic has negatively impacted the global economy , disrupted global supply chains, reduced global demand for oil and gas, and created significant volatility and disruption of financial and commodity markets.
−Removed: The full extent of the impact of the COVID-19 pandemic on our operational and financial performance, including our ability to execute our business strategies and initiatives in the expected time frame, is uncertain and depends on various factors, including the demand for crude oil, natural gas and natural gas liquids (including the impact that reductions in travel, manufacturing and consumer product demand have had and will have on the demand for commodities), the availability of personnel, equipment and services critical to our ability to operate our assets and the impact of potential governmental restrictions on travel, transportation and operations.
−Removed: The degree to which the COVID-19 pandemic or any other public health crisis adversely impacts our results will also depend on future developments, which are highly uncertain and cannot be predicted.
−Removed: These developments include, but are not limited to, the duration and spread of the outbreak, its severity, the actions to contain the virus or treat its impact, its impact on the economy and market conditions, and how quickly and to what extent normal economic and operating conditions can resume.
−Removed: Therefore, while we expect this matter will continue to disrupt our operations in some way, the degree of the adverse financial impact cannot be reasonably estimated at this time.
−Removed: Refer to Note 4 – Property, Plant and Equipment and Intangible Assets and in Management's Discussion and Analysis of Financial Condition and Results of Operations, for further discussion.
−Removed: Our future tax liability may be greater than expected if our net operating loss (“NOL”) carryforwards are limited, we do not generate expected deductions, or tax authorities challenge certain of our tax positions.
−Removed: As of December 31, 2019, we have U.S.
−Removed: federal NOL carryforwards of $5.1 billion, some of which expire between 2036 to 2037 while others have no expiration date.
−Removed: We expect to be able to utilize these NOL carryforwards and generate deductions to offset our future taxable income.
−Removed: This expectation is based upon assumptions we have made regarding, among other things, our income, capital expenditures and net working capital, and the current expectation that our NOL carryforwards will not become subject to future limitations under Section 382 of the Internal Revenue Code of 1986, as amended (“Section 382”).
−Removed: Section 382 generally imposes an annual limitation on the amount of NOLs that may be used to offset taxable income when a corporation has undergone an “ownership change” (as determined under Section 382).
−Removed: An ownership change generally occurs if one or more stockholders (or groups of stockholders) who are each deemed to own at least 5% of our stock change their ownership by more than 50 percentage points over their lowest ownership percentage within a rolling three-year period.
−Removed: In the event that an ownership change were to occur, utilization of our NOLs carryforwards would be subject to an annual limitation under Section 382, determined by multiplying the value of our stock at the time of the ownership change by the applicable long-term tax-exempt rate as defined in Section 382, subject to certain adjustments.
−Removed: While we expect to be able to utilize our NOL carryforwards and generate deductions to offset our future taxable income, in the event that deductions are not generated as expected, one or more of our tax positions are successfully challenged by the IRS (in a tax audit or otherwise), or our NOL carryforwards are subject to future limitations under Section 382, our future tax liability may be greater than expected.
+Added: Weather may limit our ability to operate our business and could adversely affect our operating results.
+Added: The weather in the areas in which we operate can cause disruptions and in some cases suspension of our operations and development activities.
+Added: Unseasonably wet weather, extended periods of below freezing weather, or hurricanes may cause a loss of throughput from temporary cessation of activities or lost or damaged equipment.
+Added: For example, the recent winter storms in February 2021 adversely affected Targa’s operations and the operations and financial condition of some energy companies, including some of our counterparties.
+Added: As a result of the winter storms, certain companies have declared force majeure under commercial agreements or have defaulted (or may default) on payment obligations.
+Added: Our planning for normal climatic variation, insurance programs and emergency recovery plans may inadequately mitigate the effects of such weather conditions in the future, and not all such effects can be predicted, eliminated or insured against.
+Added: Some forecasters expect that potential climate changes may have significant physical effects, such as increased frequency and severity of storms, floods and other climatic events and could have a material adverse effect on our operations.
+Added: Any unusual or prolonged severe weather or increased frequency thereof, such as freezing rain, earthquakes, hurricanes, droughts, or floods in our or our customers’ areas of operations or markets, whether due to climate change or otherwise, could have a material adverse effect on our business, results of operations and financial condition.
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