1373835--2/25/2010--Spectra_Energy

related topics

{gas, price, oil}

{cost, contract, operation}

{cost, regulation, environmental}

{capital, credit, financial}

{operation, international, foreign}

{financial, litigation, operation}

{operation, natural, condition}

{product, liability, claim}

{regulation, change, law}

{loss, insurance, financial}

Reductions in demand for natural gas and low market prices of commodities adversely affect our operations and cash flows. The lack of availability of natural gas resources may cause customers to seek alternative energy resources, which could materially adversely affect our revenues, earnings and cash flows. Investments and projects located in Canada expose us to fluctuations in currency rates that may adversely affect our results of operations, cash flows and compliance with debt covenants. Natural gas gathering and processing operations are subject to commodity price risk, which could result in a decrease in our earnings and reduced cash flows. Our business is subject to extensive regulation that affects our operations and costs. Execution of our capital projects subjects us to construction risks, increases in labor and material costs and other risks that may adversely affect our financial results. Gathering and processing, transmission and storage, and distribution activities involve numerous risks that may result in accidents or otherwise affect our operations. We are subject to numerous environmental laws and regulations, compliance with which requires significant capital expenditures, can increase our cost of operations, and may affect or limit our business plans, or expose us to environmental liabilities. The enactment of future climate change legislation could result in increased operating costs and delays in obtaining necessary permits for our capital projects. We are involved in numerous legal proceedings, the outcome of which are uncertain, and resolutions adverse to us could negatively affect our results of operations, financial condition and cash flows. We rely on access to short-term and long-term capital markets to finance capital requirements and support liquidity needs, and access to those markets can be adversely affected, particularly if we or our rated subsidiaries are unable to maintain an investment-grade credit rating, which could adversely affect our cash flows or restrict business. We may be unable to secure long-term transportation agreements, which could expose our transportation volumes and revenues to increased volatility. We are exposed to the credit risk of our customers. Market-based natural gas storage operations are subject to commodity price volatility, which could result in variability in our earnings and cash flows. Native land claims have been asserted in British Columbia and Alberta, which could affect future access to public lands, and the success of these claims could have a significant adverse effect on natural gas production and processing. Protecting against potential terrorist activities requires significant capital expenditures and a successful terrorist attack could adversely affect our business. Poor investment performance of our pension plan holdings and other factors affecting pension plan costs could unfavorably affect our earnings, financial position and liquidity.

Full 10-K form ▸

1373835--2/25/2010--Spectra_Energy_Corp.