Tulsa’s NGL Energy Partners has filed its annual report with the Securities and Exchange Commission and in it, offered warnings how its business could be adversely affected by rules against fracking, expansion of pipelines and changes in the nation’s Renewable Fuels Standard.
In the report, the company stated that recent attempts to reduce or eliminate the federal Renewable Fuels Standard if successful could “adversely impact our results of operations.”
It warned that without the incentives offered by the federal and state governments promoting the use of renewable fuels, “demand for and the price of renewable fuels could be negatively impacted.”
“If the EPA were to adjust the RFS requirements in any material way, it could negatively impact demand for the renewable fuel products we market, which could adversely impact our consolidated results of operations,” stated the annual report.
The company also cautioned investors about its efforts to expand operations such as the construction of new terminaling, transportation and pipelines, especially if there is opposition by environmental activists and landowners.
“There can be no assurance that we will complete these projects on schedule or at all or at the budgeted cost. Our revenues may not increase upon the expenditure of funds on a particular project,” stated the report.
The company took notice of how proposed new laws could affect its fracking operations.