The company's strategy focuses on reducing regulatory lag and obtaining adequate returns through annual formula rate mechanisms and infrastructure programs. Ratemaking efforts resulted in a $376.3 million increase in annual operating income, excluding the impact of excess deferred income taxes.

The company continues to invest heavily in infrastructure programs across its service areas, with a significant portion of capital expenditures allocated to improving the safety and reliability of distribution and transportation systems. This demonstrates a commitment to modernizing the business and reducing regulatory lag.

The company's liquidity to fund working capital, capital expenditures, and other cash needs is provided from a combination of internally generated cash flows and external debt and equity financing. The cost and availability of borrowing funds from third party lenders or issuing equity is dependent on the liquidity of the credit markets, interest rates and other market conditions.

The company employs formula rate mechanisms and infrastructure programs in several states, enabling it to recover capital expenditures more quickly. This proactive approach to ratemaking reduces regulatory lag and supports stable, predictable margins.

As of September 30, 2024, the company had approximately $4.8 billion in total liquidity, consisting of cash and cash equivalents, funds available through equity forward sales agreements, and undrawn capacity under credit facilities. This provides financial flexibility to execute business strategy.

The company continuously assesses its risk of cyber threats and has implemented policies, procedures, and controls to identify, protect, detect, and respond to cyberattacks or acts of online terrorism. This proactive approach to cybersecurity is crucial in protecting the company's operations and data.

Although the company has implemented various infrastructure and annual rate adjustment mechanisms, regulatory lag could significantly increase if regulatory authorities modify or terminate these mechanisms. This could negatively impact the company's ability to recover costs.

The company is subject to increased federal regulatory oversight, including FERC regulations, which could adversely affect the business, financial condition, or financial results. Changes in FERC regulations or interpretations could impact the company's operations.

Climate change may result in a reduction in the demand for natural gas or cause shifts in the population of service territories, which could adversely impact the economic outlook. Legislation to reduce or eliminate greenhouse gas emissions could increase operating costs and reduce demand for natural gas.

The company faces competition from other energy products, such as electricity and propane, particularly in residential and commercial markets. The principal means to compete against alternative fuels is lower prices.

The company's pipeline and storage operations face competition from other existing intrastate pipelines and gas marketers. The completion of new pipelines in the service area may increase the competition in this segment of the business.

Although the company's regulated distribution operations are not currently in significant direct competition with any other distributors of natural gas to residential and commercial customers within its service areas, it does compete with other natural gas suppliers and suppliers of alternative fuels for sales to industrial customers.

The company is continuing to seek improvements in rate design to address cost variations and pursue tariffs that reduce regulatory lag associated with investments. This indicates a focus on operational efficiency and cost management.

The company has implemented policies, procedures, and controls to identify, protect, detect, and respond to cyberattacks or acts of online terrorism. These measures are aimed at ensuring the continuity of business operations and protecting sensitive data.

The company has weather-normalized rates for approximately 97 percent of its residential and commercial revenues in its distribution operations, which substantially mitigates the adverse effects of warmer-than-normal weather. This helps to stabilize revenues and improve operational efficiency.

The company constantly monitors and maintains its pipeline and distribution systems to ensure that natural gas is delivered safely, reliably, and efficiently through its network of more than 80,000 miles of distribution and transmission lines.

The company uses Company-owned information technology and technology hosted by third parties to support critical functions including scheduling and dispatching of service technicians, automated meter reading systems, customer care and billing, operational plant logistics, management reporting, and external financial reporting.

The company actively engages in cybersecurity risk management practices and continually improves procedures and practices to support the continued safe and reliable delivery of natural gas to its customers. This includes continuous monitoring, risk assessments, and a cybersecurity incident response plan.

Approximately 83 percent of capital expenditures was invested to improve the safety and reliability of the distribution and transportation systems. This reflects a strategic allocation of capital towards core infrastructure and regulatory compliance.

The company has a shelf registration statement on file with the SEC that allows it to issue up to $5.0 billion in common stock and/or debt securities, providing flexibility in capital allocation and funding.

The company has an at-the-market (ATM) equity sales program that allows it to issue and sell shares of its common stock up to an aggregate offering price of $1.0 billion, providing a flexible means of raising capital.

The company believes that its properties and operations comply with, and are operated in conformity with, applicable safety and environmental statutes and regulations. This demonstrates a commitment to environmental responsibility.

The Corporate Responsibility, Sustainability, and Safety Committee of the Board of Directors oversees matters relating to equal employment opportunities, diversity, and inclusion; human workplace rights; employee health and safety; and the Company’s vision, values, and culture.

The company strives to have a workforce that reflects the communities it serves and monitors workforce data on a calendar year basis. This demonstrates a commitment to diversity and inclusion.

Approximately 75 percent of the company's consolidated operations are located in the State of Texas, making it susceptible to changes in the Texas economy and regulatory decisions by state and local regulatory authorities.

Adverse changes in economic conditions in the states in which the company operates could adversely affect the financial resources of many domestic households, potentially leading to slower collections and higher levels of accounts receivable.

Natural disasters and adverse weather are always a threat to the company's assets and operations. In addition, the threat of terrorist activities could lead to increased economic instability and volatility in the price of natural gas that could affect the company's operations.