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Latest 10-Q filed 10/29/2025 · Compared against 8/5/2025
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ITEM 1A. RISK FACTORS
Other than the following items, there have been no material changes or updates to the risk factors previously disclosed in our 2024 Form 10-K.
Risks Related to the NGCS Acquisition
We may not be able to achieve the expected benefits of the NGCS Acquisition. We may also encounter significant
difficulties in integrating NGCS.
We may not be able to achieve the expected benefits of the NGCS Acquisition. There can be no assurance that the NGCS Acquisition will be beneficial to us. We may not be able to integrate the assets acquired in the NGCS Acquisition without increases in costs or other difficulties. The integration of a business is a complex, costly and time-consuming process. As a result, we will be required to devote significant management attention and resources to integrating our business practices and operations with the business practices and operations of NGCS. The integration process may disrupt our business and, if implemented ineffectively, would restrict the full realization of the anticipated benefits from the NGCS Acquisition. The failure to meet the challenges involved in integrating NGCS and to realize the anticipated benefits of the NGCS Acquisition could have an adverse effect on our business, results of operations, financial condition and prospects, as well as the market price of our common stock. The challenges of integrating the operations of acquired businesses include, among others:
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| difficulties with the integration of the business of NGCS and workforce following the completion of the NGCS Acquisition; |
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| conditions in the oil and natural gas industry, including the level of production of, demand for or price of oil or natural gas; |
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| our reduced profit margins or the loss of market share resulting from competition or the introduction of competing technologies by other companies; |
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| changes in economic or political conditions, including terrorism and legislative changes; |
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| the inherent risks associated with our operations, such as equipment defects, impairments, malfunctions and natural disasters; |
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| the risk that counterparties will not perform their obligations under our financial instruments; |
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| the financial condition of our customers; |
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| our ability to timely and cost-effectively obtain components necessary to conduct our business; |
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| employment and workforce factors, including our ability to hire, train and retain key employees; |
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| our ability to implement certain business and financial objectives, such as: |
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| winning profitable new business; |
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| growing our asset base and enhancing asset utilization; |
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| integrating acquired businesses; |
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| generating sufficient cash; and |
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| accessing the capital markets at an acceptable cost; |
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| liability related to the use of our services; |
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| changes in governmental safety, health, environmental or other regulations, which could require us to make significant expenditures; |
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| the effectiveness of our control environment, including the identification of control deficiencies; and |
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| our level of indebtedness and ability to fund our business. |
Many of these factors are outside of our control, and any one of them could result in increased costs and liabilities, decreases in the amount of expected revenue and earnings, and diversion of managements time and energy, which could have a material adverse effect on our business, financial condition and results of operations. Further, additional unanticipated costs may be incurred in the integration of the acquired business.
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The market price of our common stock may decline as a result of the NGCS Acquisition if, among other things, the integration of the properties acquired in the NGCS Acquisition is unsuccessful or transaction costs related to the NGCS Acquisition are greater than expected. The market price of our common stock may decline if we do not achieve the perceived benefits of the NGCS Acquisition as rapidly or to the extent anticipated by us or by securities market participants or if the effect of NGCS Acquisition on our business, results of operations or financial condition or prospects is not consistent with our expectations or those of securities market participants.
Any acquisitions we complete, including the NGCS Acquisition, are subject to substantial risks that could reduce our ability to make distributions to our common stockholders.
Even if we do make acquisitions that we believe will increase the amount of cash available for distribution to our common stockholders, these acquisitions, including the NGCS Acquisition, may nevertheless result in a decrease in the amount of cash available for distribution to our common stockholders. Any acquisition, including the NGCS Acquisition, involves potential risks, including, among other things:
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| the assumption of unknown liabilities, losses or costs for which we are not indemnified or for which any indemnity we receive is inadequate; |
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| our inability to obtain satisfactory title to the assets we acquire; and |
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| the occurrence of other significant changes, such as impairment of long-lived assets, asset devaluation or restructuring charges. |
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