UNITED STATES SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-K

(Mark One)

☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended December 31, ~~2023~~2024

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _______________ to _______________


Commission file number:		01-32665
BOARDWALK PIPELINE PARTNERS, LP
(Exact name of registrant as specified in its charter)
Delaware		20-3265614
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)
9 Greenway Plaza,		Suite 2800
Houston,	Texas	77046
(866)	913-2122
(Address and Telephone Number of Registrant's Principal Executive Office)


Securities registered pursuant to Section 12(b) of the Act:
Title of each class	Trading Symbol(s)	Name of each exchange on which registered
NONE	NONE	NONE

Securities registered pursuant to section 12(g) of the Act: NONE

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes☒ No☐

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.

Yes ☐ No ☒

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☐ Accelerated filer ☐ Non-accelerated filer ☒ Smaller reporting company ☐

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant has filed a report on and attestation to its management's assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. ☐

If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements. ☐

Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant's executive officers during the relevant recovery period pursuant to §240.10D-1(b). ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes ☐ No ☒

Boardwalk Pipeline Partners, LP meets the conditions set forth in General Instructions I(1) (a) and (b) of Form 10-K and is therefore filing this form with the reduced disclosure format.

Documents incorporated by reference. None.

~~TABLE~~2024 OFFORM ~~CONTENTS~~10-K

2023 FORM 10-K

BOARDWALK PIPELINE PARTNERS, LP

PART I			4
Item 1. Business			4
Item 1A. Risk Factors			13
Item 1B. Unresolved Staff Comments			24
Item 1C. Cybersecurity			24
Item 2. Properties			25
Item 3. Legal Proceedings			25
Item 4. Mine Safety Disclosures			25
PART II			26
Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities			26
Item 6. Reserved			26
Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations			27
Item 7A. Quantitative and Qualitative Disclosures About Market Risk			35
Item 8. Financial Statements and Supplementary Data			36
Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure			73
Item 9A. Controls and Procedures			73
Item 9B. Other Information			73
Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections			73
PART III			74
Item 10. Directors, Executive Officers and Corporate Governance			74
Item 11. Executive Compensation			74
Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters			74
Item 13. Certain Relationships and Related Transactions, and Director Independence			74
Item 14. Principal Accountant Fees and Services			74
PART IV			75
Item 15. Exhibit and Financial Statement Schedules			75
Item 16. Form 10-K Summary			78

TABLE OF CONTENTS


PART I			4
Item 1. Business			4
Item 1A. Risk Factors			14
Item 1B. Unresolved Staff Comments			25
Item 1C. Cybersecurity			25
Item 2. Properties			26
Item 3. Legal Proceedings			26
Item 4. Mine Safety Disclosures			26
PART II			27
Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities			27
Item 6. Reserved			27
Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations			28
Item 7A. Quantitative and Qualitative Disclosures About Market Risk			38
Item 8. Financial Statements and Supplementary Data			39
Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure			79
Item 9A. Controls and Procedures			79
Item 9B. Other Information			79
Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections			79
PART III			80
Item 10. Directors, Executive Officers and Corporate Governance			80
Item 11. Executive Compensation			80
Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters			80
Item 13. Certain Relationships and Related Transactions, and Director Independence			80
Item 14. Principal Accountant Fees and Services			80
PART IV			81
Item 15. Exhibit and Financial Statement Schedules			81
Item 16. Form 10-K Summary			84

PART I

Item 1. Business

Unless the context otherwise requires, references in this Annual Report on Form 10-K to "we," "our," "us" or like terms refer to the business of Boardwalk Pipeline Partners, LP and its consolidated subsidiaries.

Introduction

We are a Delaware limited partnership formed in 2005. Our business, which is conducted by our primary subsidiary, Boardwalk Pipelines, LP (Boardwalk Pipelines) and its operating subsidiaries (together, the operating subsidiaries), consists of integrated pipeline and storage systems for natural gas and natural gas liquids, olefins and other hydrocarbons (herein referred to together as NGLs). All of our operations are conducted by the operating subsidiaries of Boardwalk Pipelines. As of December 31, ~~2023~~2024, Boardwalk Pipelines Holding Corp. (BPHC), a wholly owned subsidiary of Loews Corporation (Loews), owned directly or indirectly, 100% of our capital.

Our Business

We operate in the midstream portion of the natural gas and NGLs industry, providing transportation and storage for those commodities. We also provide ethane supply and transportation services for industrial customers in Louisiana and Texas. We own approximately 14,~~310~~315 miles of natural gas and NGLs pipelines and underground storage caverns having aggregate capacity of approximately 199.5 billion cubic feet (Bcf) of working natural gas and 31.2 million barrels (MMBbls) of NGLs. Our integrated natural gas pipeline and storage systems are located in the Gulf Coast region, Oklahoma, Arkansas, Tennessee, Kentucky, Illinois, Indiana and Ohio, and our NGLs pipelines and storage facilities are located in Louisiana and Texas.

We serve a broad mix of customers, including electric power generators, producers and marketers of natural gas, local distribution companies (LDCs), industrial users, exporters of liquefied natural gas (LNG), and interstate and intrastate pipelines. We provide a significant portion of our natural gas pipeline transportation and storage services through firm contracts under which our customers pay monthly capacity reservation fees, which are fixed fees based on the quantity of capacity reserved, regardless of use. Other fees are based on actual utilization of the capacity under firm contracts and contracts for interruptible services. Contracts for our NGLs services are generally fee-based or contain a minimum volume commitment (MVC), while others are dependent on actual volumes transported, stored or delivered. For the year ended December 31, ~~2023~~2024, approximately 8986% of our revenues were derived from capacity reservation fees under firm contracts or from contracts with MVCs, approximately 65% of our revenues were derived from fees based on utilization under firm contracts and approximately 59% of our revenues were derived from interruptible transportation, interruptible storage, parking and lending (PAL), ethane supply and other services.

The maximum applicable rates we can charge for most of our natural gas transportation services, as well as the general terms and conditions of those services, are established by, and subject to review and revision by, the Federal Energy Regulatory Commission (FERC). These rates are based upon certain assumptions to allow us the opportunity to recover the cost of providing these services and earn a reasonable return on equity. However, it is possible that we may not recover all of our costs or earn a return. We are authorized to charge market-based rates for the majority of our natural gas storage capacity pursuant to authority granted by the FERC. The FERC also has jurisdiction over the rates, charges and terms and conditions of service for transportation on our interstate ethane ~~transportation~~ pipeline. The Surface Transportation Board (STB) regulates the rates we charge for interstate service on our ethylene pipeline systems. The Louisiana Public Service Commission (LPSC) regulates the rates we charge for intrastate service within the state of Louisiana on our ~~petrochemical and~~ NGLs pipelines. The STB and LPSC require that our transportation rates are reasonable and that our practices cannot unreasonably discriminate among our shippers.

OnBusiness September 29, 2023, we acquired 100% of the equity interests of Williams Olefins Pipeline Holdco LLC (Bayou Ethane) from Williams Field Services Group, LLC for $355.0 million in cash. The purchase price was funded with available cash on hand. Segments

~~Our~~In ~~Pipeline~~the fourth quarter 2024, we identified and ~~Storage~~began ~~Systems~~reporting in two segments - Natural Gas and Natural Gas Liquids. The following contains a detailed discussion of each of our segments.

WeNatural own and operate approximately 13,455 miles of interconnected natural gas pipelines, directly serving customers in thirteen states and indirectly serving customers throughout the northeastern and southeastern United States (U.S.) through numerous interconnections with unaffiliated pipelines. We also own and operate approximately 855 miles of NGLs pipelines in Louisiana and Texas. In 2023, our pipeline systems transported approximately 3.7 trillion cubic feet of natural gas and Gas

Our Natural Gas segment, which provides transportation, storage and PAL services for natural gas customers, consists of integrated interstate and intrastate natural gas pipelines and storage facilities. We own and operate approximately 13,445 miles of interconnected natural gas pipelines, directly serving customers in thirteen states and indirectly serving customers throughout the northeastern and southeastern United States (U.S.) through numerous interconnections with unaffiliated

pipelines. In 2024, our natural gas pipeline systems transported approximately 983.57 ~~MMBbls~~trillion cubic feet of ~~NGLs~~natural gas. Average daily throughput on our natural gas pipeline systems during ~~2023~~2024 was approximately 10.02 Bcf. Our natural gas storage facilities are comprised of fourteen underground storage fields located in four states with aggregate working gas capacity of approximately ~~199~~191.59 Bcf ~~and our NGLs storage facilities consist of eleven salt-dome caverns located in Louisiana with an aggregate storage capacity of approximately 31~~.2 ~~MMBbls. We also own nine salt-dome caverns and related brine infrastructure for use in providing brine supply services and to support the NGLs storage operations.~~

The principal sources of supply for our natural gas pipeline systems are regional supply hubs and market centers located in the Gulf Coast and Mid-Continent regions, including offshore Louisiana, the Perryville, Louisiana, area, the Henry Hub in Louisiana and the Carthage, Texas, area. Our pipelines in the Carthage, Texas, area provide access to natural gas supplies from the Barnett and Haynesville Shales and other natural gas producing regions in eastern Texas and northern Louisiana. The Henry Hub serves as the designated delivery point for natural gas futures contracts traded on the New York Mercantile Exchange. Our pipeline systems also have access to supply basins such as the Woodford and Scoop/Stack Shales in Oklahoma, the Fayetteville Shale in Arkansas, the Eagle Ford Shale in southern Texas and wellhead supplies in northern and southern Louisiana and Mississippi, and we also receive gas in the Lebanon, Ohio, area from the Marcellus and Utica Shales located in the northeastern U.S. Our NGLs pipeline systems access the Gulf Coast petrochemical industry through our operations at our Choctaw Hub in the Mississippi River corridor area of Louisiana and the Sulphur Hub in the Lake Charles, Louisiana, area. We also access ethylene supplies at Port Neches, Texas, which we deliver to petrochemical-industry customers in Louisiana. With the acquisition of Bayou Ethane, we also provide ethane supply and transportation services for industrial customers in Louisiana and Texas. In providing supply services, Bayou Ethane purchases ethane at Mont Belvieu, Texas, and various locations in Louisiana and utilizes its pipeline to deliver supply to its customers.

~~The~~Following ~~following~~ is a summary of ~~each~~the ofprimary subsidiaries comprising our ~~principal~~Natural ~~operating~~Gas ~~subsidiaries~~segment:

Gulf South Pipeline Company, LLC (Gulf South): Our Gulf South pipeline system is located along the Gulf Coast in the states of Oklahoma, Texas, Louisiana, Mississippi, Alabama and Florida. The on-system markets directly served by the Gulf South system are generally located in eastern Texas, Louisiana, southern Mississippi, southern Alabama and the Florida Panhandle. Gulf South also services the Perryville Exchange. These markets include LNG export markets in the Freeport, Texas, area, electric power ~~plants~~generators, LDCs and municipalities located across the system, including New Orleans, Louisiana; Jackson, Mississippi; Mobile, Alabama; Houston, Texas; and Pensacola, Florida, and other end-users located across the system, including those located in the Baton Rouge to New Orleans industrial corridor and Lake Charles, Louisiana. Gulf South also has indirect access to off-system markets through numerous interconnections with unaffiliated interstate and intrastate pipelines and storage facilities. These pipeline interconnections provide access to markets throughout the northeastern, midwestern and southeastern U.S.

Gulf South has ten natural gas storage facilities. The two natural gas storage facilities located in Bistineau, Louisiana, and Jackson, Mississippi, have approximately 78.0 Bcf of working gas storage capacity from which Gulf South offers firm and interruptible storage service, including no-notice service (NNS), and are used to support pipeline operations. Gulf South also owns and operates eight high deliverability salt-dome natural gas storage caverns in Forrest County, Mississippi, having approximately 46.0 Bcf of total storage capacity, of which approximately 29.6 Bcf is working gas capacity, and owns undeveloped land which is suitable for up to five additional storage caverns. Gulf South is regulated by the FERC.

Texas Gas Transmission, LLC (Texas Gas): Our Texas Gas pipeline system is a bi-directional pipeline located in Louisiana, East Texas, Arkansas, Mississippi, Tennessee, Kentucky, Indiana and Ohio, with smaller diameter lines extending into Illinois. Texas Gas directly serves LDCs, municipalities and electric power generators in its market area, which encompasses ~~eight~~seven states in the South and Midwest and includes the Memphis, Tennessee; Louisville, Kentucky; Cincinnati and Dayton, Ohio; and Evansville and Indianapolis, Indiana, metropolitan areas. Texas Gas also has indirect market access to, and receives supply from, the Northeast through interconnections with unaffiliated pipelines. A large portion of the gas delivered by the Texas Gas system is used for heating during the winter months, but Texas Gas also supplies gas for cooling needs during the summer months.

Texas Gas owns nine natural gas storage fields, of which it owns the majority of the working and base gas. Texas Gas uses this gas to meet the operational requirements of its transportation and storage customers and the requirements of its NNS customers. Texas Gas also uses its storage capacity to offer firm and interruptible storage services. Texas Gas is regulated by the FERC.

~~Boardwalk~~Other: ~~Louisiana~~We ~~Midstream,~~have ~~LLC,~~minor ~~Boardwalk~~intrastate ~~Petrochemical Pipeline, LLC~~ and ~~Boardwalk~~Hinshaw ~~Ethane~~pipeline ~~Pipeline~~assets ~~Company,~~in ~~LLC~~South ~~(collectively,~~Texas ~~Louisiana Midstream): Louisiana Midstream provides transportation~~ and ~~storage~~the ~~services~~Lake ~~for~~Charles ~~natural~~area ~~gas,~~serving ~~NGLs and ethylene~~end-use, ~~ethane~~electric ~~supply~~power ~~services,~~generators ~~fractionation services for NGLs~~ and ~~brine~~industrial ~~supply~~customers. ~~services for producers and consumers of petrochemicals through two hubs in southern Louisiana - the Choctaw Hub in the Mississippi River corridor~~

area and the Sulphur Hub in the Lake Charles area. These assets provide approximately 47.9 MMBbls of salt-dome storage capacity, including approximately 7.6 Bcf of working natural gas storage capacity; significant brine supply infrastructure; and approximately 310 miles of pipeline assets, including an extensive ethylene distribution system. Louisiana Midstream owns and operates the Evangeline Pipeline, an approximately 180-mile interstate ethylene pipeline that is capable of transporting approximately 4.2 billion pounds of ethylene per year between Port Neches, Texas, and Baton Rouge, Louisiana, with interconnections with the ethylene distribution system and storage facilities at the Sulphur and Choctaw Hubs. Louisiana Midstream also owns and operates the Bayou Ethane Pipeline, an approximately 380-mile pipeline system originating in Mont Belvieu, Texas, that transports ethane to Southeast Texas and to the Mississippi River corridor in Louisiana. The ~~Bayou~~following ~~Ethane~~table ~~Pipeline~~ provides ~~interstate~~information ~~and~~for ~~intrastate~~our ~~transportation~~Natural ~~services,~~Gas ~~with~~segment ~~interconnections~~assets ~~with~~we ~~the~~own ~~NGL storage facilities at the Sulphur~~ and ~~Choctaw~~operate ~~Hubs.~~as ~~The Bayou Ethane Pipeline has the ability to deliver approximately 55.0 MMBbls~~ of ~~ethane per year shared between customers in Texas and Louisiana. Throughput for Louisiana Midstream was 98.5 MMBbls for the year ended~~ December 31, ~~2023, including Bayou Ethane Pipeline's throughput of 9.2 MMBbls from the date of acquisition.~~2024:

The following table provides information for our principal pipeline and storage systems as of December 31, 2023:


Assets	Miles of Pipeline	Average Daily Throughput (Bcf/d) (1)	Peak-day Delivery Capacity (Bcf/d)	Working Gas Storage Capacity (Bcf)
Gulf South	7,180	6.8	10.9	107.6
Texas Gas	6,000	3.3	6.3	84.3
Other Natural Gas	265	0.1	—	—

Pipeline and Storage Systems	Miles of Pipeline	Working Gas Storage Capacity (Bcf)	Liquids Storage Capacity (MMBbls)	Peak-day Delivery Capacity (Bcf/d) (1)	Average Daily Throughput (Bcf/d) (1)
Gulf South	7,210	107.6	—	10.9	6.5
Texas Gas	5,970	84.3	—	6.1	3.3
Louisiana Midstream	870	7.6	31.2	—	—

(1) Bcf per day (Bcf/d)

Natural Gas Liquids

Our Natural Gas Liquids segment, which provides transportation and storage services for NGLs and supply services for ethane and brine customers, consists primarily of NGLs pipelines, salt-dome storage facilities and brine infrastructure. We own and operate approximately 870 miles of NGLs pipelines in Louisiana and Texas. In 2024, our Natural Gas Liquids pipeline systems transported approximately 136.6 MMBbls of NGLs. Our NGLs storage facilities consist of eleven salt-dome caverns located in Louisiana with an aggregate storage capacity of approximately 31.2 MMBbls. We also own ten salt-dome caverns and related brine infrastructure located in Louisiana for use in providing brine supply services and to support the NGLs storage operations. Our NGLs pipeline systems access the Gulf Coast petrochemical industry through our operations at our Choctaw Hub in the Mississippi River corridor area of Louisiana and the Sulphur Hub in the Lake Charles, Louisiana, area. We access ethylene supplies at Port Neches, Texas, which we deliver to petrochemical-industry customers in Louisiana. We purchase ethane at Mont Belvieu, Texas, and various locations in Louisiana and utilize our NGLs pipelines to supply ethane to customers in Texas and Louisiana. The majority of our Natural Gas Liquids segment's customers are industrial end-users.

Following is a summary of the primary subsidiaries comprising our Natural Gas Liquids segment:

Boardwalk Louisiana Midstream, LLC (Louisiana Midstream): Louisiana Midstream provides transportation and storage services for NGLs, primarily ethylene, and brine supply services for producers and consumers of petrochemicals through two hubs in southern Louisiana - the Choctaw Hub in the Mississippi River corridor area and the Sulphur Hub in the Lake Charles area. These assets have approximately 47.8 MMBbls of salt-dome storage capacity, including approximately 7.6 Bcf of working natural gas storage capacity; significant brine supply infrastructure; and approximately 310 miles of pipeline assets, including an extensive ethylene distribution system.

Louisiana Midstream's Choctaw pipeline network is a common carrier pipeline system situated along the Mississippi River Corridor that serves chemical complexes throughout southeastern Louisiana and provides connectivity to producers and consumers of ethylene. Through interconnections with Boardwalk Petrochemical Pipeline, LLC’s (Boardwalk Petrochemical) Evangeline Pipeline and other third-party pipelines, the system links ethylene producers in Texas and the Lake Charles area to the Mississippi River Corridor. Louisiana Midstream offers storage services for ethylene, ethane, propylene and ethane-propane mix at the Choctaw Hub, and has the ability to modify its existing product storage configuration to meet market demand. Louisiana Midstream also owns eight salt-dome caverns and related brine infrastructure located on the Choctaw Hub for use in providing brine supply services and supporting its NGLs storage operations. The Choctaw Hub, through Louisiana Midstream’s ownership of Boardwalk Storage Company, LLC, is also the owner and operator of the Choctaw Natural Gas Storage cavern.

Louisiana Midstream's Sulphur pipeline network is located near Lake Charles, Louisiana, and is connected to local ethylene producers and consumers and area refineries. Its pipeline infrastructure supports local industry by connecting their facilities to Louisiana Midstream's Sulphur Hub storage terminal as well as the Boardwalk Petrochemical pipeline. At the Sulphur Hub, Louisiana Midstream owns and operates five active storage caverns, which are currently in ethylene, ethane and propane service.

Boardwalk Petrochemical: Boardwalk Petrochemical owns and operates the Evangeline Pipeline, an approximately 180-mile bi-directional, common carrier, interstate ethylene pipeline that is capable of transporting approximately 4.8 billion pounds of ethylene per year between Port Neches, Texas, and Baton Rouge, Louisiana, and interconnects with the ethylene distribution system and storage facilities at Louisiana Midstream's Sulphur and Choctaw Hubs. The Evangeline Pipeline links ethylene producers and consumers from Port Neches, Texas, to the Mississippi River Corridor, near Baton Rouge, Louisiana.

Boardwalk Ethane Pipeline Company, LLC (Bayou Ethane): Bayou Ethane owns and operates the Bayou Ethane Pipeline, an approximately 380-mile pipeline system originating in Mont Belvieu, Texas, that transports ethane to Southeast Texas and to the Mississippi River corridor in Louisiana. The Bayou Ethane Pipeline provides common carrier, interstate and intrastate transportation services and interconnects with Louisiana Midstream's storage facilities at the Sulphur and Choctaw Hubs. The Bayou Ethane Pipeline has the ability to deliver approximately 55.0 MMBbls of ethane per year to customers in Texas and Louisiana. Bayou Ethane provides ethane supply and transportation services for industrial customers in Louisiana and Texas. In providing ethane supply services, Bayou Ethane purchases ethane at Mont Belvieu and various locations in Louisiana and utilizes its pipeline to deliver supply to its customers.

The following table provides information for our Natural Gas Liquids segment assets we own and operate as of December 31, 2024:


Assets	Miles of Pipeline	Annual Throughput (MMBbls)	Working Gas Storage Capacity (Bcf)	Liquids Storage Capacity (MMBbls)
Louisiana Midstream	310	60.2	7.6	31.2
Boardwalk Petrochemical	180	36.3	—	—
Bayou Ethane	380	40.1	—	—

Current Growth Projects

In ~~2023~~2024, we placed into service approximately $~~166~~245.0 million of growth projects, which represents approximately 0.34 Bcf/d of firm natural gas transportation capacity, ~~and~~ additional capacity on our ethylene pipeline systems. Asand ~~discussed~~increased ~~above,~~storage incapacity ~~2023~~and ~~we also acquired Bayou Ethane for $355~~reliability.0 ~~million in cash.~~ We expect to spend a total of approximately $~~310~~1.06 ~~million~~billion on our ongoing and announced growth projects, ~~currently~~with ~~under~~expected ~~construction~~in-service ~~through~~dates for these projects ranging from 2025-2029. These projects are expected to add ~~another~~over ~~approximately 0~~2.50 Bcf/d of firm natural gas transportation capacity ~~and additional NGLs capacity~~. These projects are expected to serve increased natural gas demand from electric power generation plants and ~~liquids~~industrial ~~demand from petrochemical facilities~~customers. ~~All~~Our ~~of our~~ growth projects are secured by long-term firm contracts, though some are supported by executed precedent transportation agreements for projects that are subject to regulatory approvals.

Refer to Liquidity and Capital Resources in Part II, Item 7. of this Annual Report on Form 10-K for further discussion of capital expenditures and financing.

Nature of Contracts

We contract with our customers to provide transportation, storage and ethane supply services on both a firm and interruptible basis. We also provide bundled firm transportation and storage services, such as NNS, interruptible PAL services, brine supply services for certain petrochemical customers and fractionation services.

Transportation Services: We offer transportation services on both a firm and interruptible basis. Our customers choose, based upon their particular needs, the applicable mix of services depending upon the availability of pipeline capacity, the price of services and the volume and timing of customer requirements. Our firm transportation customers reserve a specific amount of pipeline capacity at specified receipt and delivery points on our system. The transaction price for firm service contracts is comprised of a fixed fee based on the quantity of capacity reserved, regardless of use (capacity reservation fee), plus variable fees in the form of a usage fee paid on the volume of commodity actually transported or injected and withdrawn from storage. Capacity reservation revenues derived from a firm service contract are generally consistent during the contract term, but can be higher in winter periods than the rest of the year, especially for NNS agreements. Firm transportation contracts can range from one to twenty years, although we may enter into shorter- or longer-term contracts. In providing interruptible services to customers, we agree to transport natural gas or NGLs for a customer when capacity is available. Interruptible service customers pay a commodity charge only for the volume of gas actually transported, plus a fuel charge. Interruptible transportation agreements have terms ranging from day-to-day to multiple years, with rates that change on a daily, monthly or seasonal basis. Our NGLs transportation services are generally fee-based or contain a MVC.

Storage and Parking and Lending Services: We offer natural gas and NGLs storage services on both a firm and interruptible basis. Firm storage customers reserve a specific amount of storage capacity, including injection and withdrawal rights, while interruptible customers receive storage capacity and injection and withdrawal rights when available. Similar to firm transportation ~~customers,~~agreements ~~firm~~have ~~storage~~terms ~~customers~~ranging ~~generally pay fees based on the quantity of capacity reserved plus an injection and withdrawal fee. Firm storage contracts typically range in term~~ from ~~one~~day-to-day to ~~ten~~multiple years., ~~Interruptible~~with ~~storage~~rates ~~customers~~that ~~pay~~change ~~for~~on ~~the~~a ~~volume of gas actually stored plus injection and withdrawal fees. Generally~~daily, ~~interruptible storage agreements are for~~ monthly ~~terms.~~or Weseasonal ~~are able to charge market-based rates for the majority of our natural gas storage capacity pursuant to authority granted by the FERC~~basis. Our NGLs ~~storage~~transportation ~~rates are market-based, and the contracts for NGLs~~ services are ~~typically~~generally ~~fixed~~fee-~~price~~based ~~arrangements~~or ~~with~~contain ~~escalation clauses. PAL is~~ an interruptible service offered to customers providing them the ability to park (inject) or borrow (withdraw) natural gas into or out of our pipeline systems at a specific location for a specific period of timeMVC. ~~Customers pay for PAL services in advance or on a monthly basis depending on the terms of the agreement.~~

Storage and Parking and Lending Services: We offer natural gas and NGLs storage services on both a firm and interruptible basis. Firm storage customers reserve a specific amount of storage capacity, including injection and withdrawal rights, while interruptible customers receive storage capacity and injection and withdrawal rights when available. Similar to firm transportation customers, firm storage customers generally pay fees based on the quantity of capacity reserved plus an injection and withdrawal fee. Firm storage contracts typically range in term from one to ten years. Interruptible storage customers pay for the volume of gas actually stored plus injection and withdrawal fees. Generally, interruptible storage agreements are for monthly terms. We are able to charge market-based rates for the majority of our natural gas storage capacity pursuant to authority granted by the FERC. Our NGLs storage rates are market-based, and the contracts for NGLs services are typically fixed-price arrangements with escalation clauses. PAL is an interruptible service offered to customers, providing them the ability to park (inject) or borrow (withdraw) natural gas into or out of our pipeline systems at a specific location for a specific period of time. Customers pay for PAL services in advance or on a monthly basis, depending on the terms of the agreement.

No-Notice Services: NNS consist of a combination of firm natural gas transportation and storage services that allow customers to inject or withdraw natural gas from storage with little or no notice. Customers pay a reservation charge based upon the capacity reserved plus a commodity and a fuel charge based on the volume of gas actually transported. In accordance with its tariff, Texas Gas loans stored gas to certain of its no-notice customers who are obligated to repay the gas in-kind.

Ethane Supply Services: We offer ethane supply services on a firm basis, typically with aan MVC, ~~and~~or ~~services with~~ a stated volume with any ~~volume~~requested ~~supplied~~additional ~~above~~volumes ~~the~~supplied ~~stated volume provided~~ based on ~~product~~ availability. The pricing contained in the purchase and sales agreements associated with our ethane supply services is generally based on the same ethane commodity index, plus a fixed delivery fee. As a result, except for possible timing differences that may occur when volumes are purchased in one month and sold in another month, we have little to no direct commodity price exposure.

Other Product Sales: We occasionally sell natural gas, propane and ~~NGLs~~ethylene based upon our available inventory for sale and market conditions.

Customers and Markets Served

We contract directly with end-use customers, including electric power generators, LDCs, industrial users and exporters of LNG. We also contract with other customers, including producers and marketers of natural gas, and interstate and intrastate pipelines, who, in turn, provide transportation and storage services for end-users. Excluding product sales, based upon our ~~2023~~2024 transportation, storage, PAL and other revenues, net of fuel, our customer mix was as follows: electric power generators (22%), ~~natural~~marketers ~~gas producers~~ (22%), ~~marketers~~natural gas producers (21%), LDCs (1514%), industrial end-users (1213%) and exporters of LNG (8%). Excluding product sales, based upon our ~~2023~~2024 transportation, storage, PAL and other revenues, net of fuel, our deliveries were as follows: pipeline interconnects (3132%), electric power generators (17%), LDCs (1615%), industrial end-users (15%), storage activities (1112%), exporters of LNG (87%) and others (2%). Our deliveries related to our ethane supply services were to industrial end-users. No customer comprised 10% or more of our operating revenues in ~~2023~~2024.

Electric Power Generators: Our natural gas pipelines are directly connected to 4344 natural-gas-fired electric power generation facilities in eight states. The demand of the power generating customers generally peaks during the summer cooling season, which is counter to the winter season peak demands of the LDCs, although demand from electric power generators remains strong in the winter months as well, due to the overall increase in the use of natural gas over other sources, such as coal, to generate electricity. Our electric power generating customers can use a combination of NNS, firm and interruptible transportation services.

Natural Gas ~~Producers~~Marketers: ~~Producers~~Natural ofgas ~~natural~~marketing ~~gas~~companies ~~use~~utilize our services to ~~transport~~provide ~~gas~~services ~~supplies~~to ~~from~~our ~~producing~~other ~~areas,~~customer ~~including~~groups ~~shale~~as ~~natural~~well ~~gas~~as ~~production areas,~~ to ~~supply~~customer ~~pools~~groups ~~and~~in tooff-system ~~other~~markets. ~~customers~~The onservices ~~and~~may ~~off~~include ofcombined ~~our~~gas ~~systems. Producers~~transportation ~~contract~~and ~~with us for~~ storage services to ~~store~~support ~~excess~~the ~~production~~needs ~~and~~of toother ~~optimize~~customer groups. Some of the ~~ultimate~~marketers ~~sales~~are ~~prices~~sponsored ~~for~~by ~~their~~LDCs ~~gas~~or producers.

Natural Gas ~~Marketers~~Producers: ~~Natural~~Producers ~~gas~~of ~~marketing~~natural ~~companies~~gas ~~utilize~~use our services to ~~provide~~transport ~~services~~gas tosupplies ~~our~~from ~~other~~producing ~~customer~~areas, ~~groups~~including asshale ~~well~~natural asgas production areas, to ~~customer~~supply ~~groups~~pools inand ~~off-system~~other ~~markets.~~customers ~~The~~on ~~services~~and ~~may~~off ~~include~~of ~~combined~~our ~~gas~~systems. Producers ~~transportation~~contract ~~and~~with us for storage services to ~~support~~store ~~the~~excess ~~needs~~production ofand ~~the~~to ~~other~~optimize ~~customer groups. Some of~~ the ~~marketers~~ultimate ~~are~~sales ~~sponsored~~prices byfor ~~LDCs~~their ~~or producers~~gas.

Local Distribution Companies: Most of our LDC customers use firm natural gas transportation services, including NNS. We serve 160 LDCs at more than 300 delivery locations across our pipeline systems. The demand of these customers peaks during the winter heating season.

Industrial End-Users: We provide approximately 215 industrial facilities with a combination of firm and interruptible natural gas and NGLs transportation, storage and ethane supply services. Our pipeline systems are directly connected to industrial facilities in the Baton Rouge to New Orleans industrial corridor; Lake Charles, Louisiana; Mont Belvieu, Texas; Mobile, Alabama; Ingleside, Texas; and Pensacola, Florida. We can also access the Houston Ship Channel through third-party natural gas pipelines.

Exporters of LNG: LNG exporters use our firm transportation services to reach LNG liquefaction and export facilities. We provide 1.4 Bcf/d of firm natural gas transportation service directly to the Freeport LNG liquefaction and export facility in Freeport, Texas.

Our delivery market has diversified over time, with increased deliveries to our end-use customers, whereas historically, our delivery markets were primarily to other pipelines who then delivered to the end-use customers. As of December 31, 2023, we had approximately $9.7 billion of projected operating revenues under committed firm agreements, of which our deliveries are expected to be as follows: power generators (29%), pipeline interconnects (24%), exporters of LNG (18%), industrial end-users (13%), LDCs (8%), storage activities (6%) and others (2%).

Government Regulation

Federal Energy Regulatory Commission: The FERC regulates our interstate natural gas transmission operating subsidiaries under the Natural Gas Act of 1938 (NGA) and the Natural Gas Policy Act of 1978 (NGPA). The FERC regulates, among other things, the rates and charges for the transportation and storage of natural gas in interstate commerce and the construction, extension, enlargement or abandonment of facilities under its jurisdiction. Where required, our interstate natural gas pipeline subsidiaries hold certificates of public convenience and necessity issued by the FERC covering certain of their facilities, activities and services. The FERC also prescribes accounting treatment for our interstate natural gas pipeline subsidiaries which is separately reported pursuant to forms filed with the FERC. The regulatory books and records and other activities of our subsidiaries that operate under the FERC's jurisdiction may be periodically audited by the FERC.

The maximum applicable rates that our FERC-regulated operating subsidiaries may charge for all aspects of the natural gas transportation services they provide are established through the FERC's cost-based rate-making process; however, the FERC also allows for discounted or negotiated rates as an alternative to cost-based rates. Key determinants in the FERC's cost-based rate-making process are the costs of providing service, the volumes of gas being transported, the rate design, the allocation of costs between services, the capital structure and the rate of return a pipeline is permitted to earn. The maximum applicable rates that may be charged by us for storage services on Texas Gas, except for services associated with a portion of the working gas capacity on that system, are also established through the FERC's cost-based rate-making process. The FERC has authorized us to charge market-based rates for firm and interruptible storage services for the majority of our other natural gas storage facilities. None of our FERC-regulated entities currently have an obligation to file a new rate case.

Some of our other subsidiaries transport natural gas in intrastate commerce under the rules and regulations established by the Texas Railroad Commission and in interstate commerce that is subject to FERC jurisdiction under Section 311 of the NGPA. The maximum rates for services are established under Section 311 of the NGPA and are generally subject to review every five years by the FERC. The rates and terms of service on our interstate ethane transportation pipeline are also subject to regulation by the FERC under, among other statutes, the Interstate Commerce Act (ICA) and the Energy Policy Act of 1992.

Over time, the FERC may change, amend or announce that it will undertake a review of its existing policies. There were no major policy changes announced by the FERC during 2023.

Surface Transportation Board and Louisiana Public Service Commission: The STB regulates the rates we charge for interstate service on our ethylene pipeline systems. The LPSC regulates the rates we charge for intrastate service within the state of Louisiana on our petrochemical and NGL pipelines. The STB and LPSC require that our transportation rates are reasonable and that our practices cannot unreasonably discriminate among our shippers.

U.S. Department of Transportation (DOT): We are regulated by the DOT, through the Pipeline and Hazardous Materials Safety Administration (PHMSA), under the Natural Gas Pipeline Safety Act of 1968, as amended (NGPSA), and the Hazardous Liquids Pipeline Safety Act of 1979, as amended (HLPSA). The NGPSA and HLPSA govern the design,

~~installation,~~Local ~~testing,~~Distribution ~~construction,~~Companies: ~~operation,~~Most ~~replacement and management~~ of interstate natural gas and NGLs pipeline facilities. We have authority from PHMSA to operate certain natural gas pipeline assets under issued permits with specific conditions that allow us to operate those pipeline assets at higher than normal operating pressures of up to 0.80 of the pipeline's Specified Minimum Yield Strength (SMYS). Operating at these pressures allows us to transport all the existing natural gas volumes we have contracted for on those facilities with our LDC customers. ~~PHMSA~~use ~~retains~~firm ~~discretion whether to grant or maintain authority for us to operate our~~ natural gas ~~pipeline~~transportation ~~assets at higher pressures and~~services, inincluding ~~the~~NNS. ~~event~~We ~~that~~serve ~~PHMSA~~162 ~~should~~LDCs ~~elect not to allow us to operate~~ at ~~these~~more ~~higher~~than ~~pressures,~~300 itdelivery ~~could~~locations ~~affect~~across our ~~ability to transport all of our contracted quantities of natural gas on these~~ pipeline ~~assets, and we could incur significant additional costs to reinstate this authority or to develop alternate ways to meet our contractual obligations~~systems. ~~PHMSA's~~The ~~regulations~~demand ~~also~~of require transportation pipeline operators to implement integrity management programs to comprehensively evaluate certain high risk areas, known as high consequence areas (HCAs) and moderate consequence areas (MCAs), along pipelines and take additional safety measures to protect people and property in these ~~areas.~~customers ~~The~~peaks ~~HCAs~~during ~~for natural gas pipelines are predicated on high-population density areas (which, for natural gas transmission lines, include Class 3 and 4 areas and, depending on~~ the ~~potential~~winter ~~impacts~~heating of a risk event, may include Class 1 and 2 areas) whereas HCAs along our NGL pipelines are based on high-population density areas, areas near certain drinking water sources and unusually sensitive ecological areasseason.

~~Legislation~~Industrial ~~has~~End-Users: ~~resulted~~We inprovide ~~more~~approximately ~~stringent~~210 ~~mandates~~industrial ~~for~~facilities ~~pipeline safety and has charged PHMSA~~ with ~~developing~~a ~~and~~combination adopting regulations that impose increased pipeline safety requirements on pipeline operators. In particular, the NGPSA and HLPSA were amended by the Pipeline Safety, Regulatory Certainty, and Job Creation Act of ~~2011~~firm ~~(2011 Act), the Protecting Our Infrastructure of Pipelines~~ and ~~Enhancing~~interruptible ~~Safety~~natural ~~Act~~gas ~~of 2016 (2016 Act)~~ and, ~~most~~NGLs ~~recently~~transportation, ~~the~~storage ~~Protecting Our Infrastructure of Pipelines~~ and ~~Enhancing~~ethane ~~Safety~~supply ~~Act of 2020 (2020 Act)~~services. ~~Each~~Our ~~of these laws imposed increased~~ pipeline ~~safety~~systems ~~obligations~~are ondirectly ~~pipeline~~connected ~~operators.~~to ~~The~~industrial ~~2011~~facilities ~~Act increased the penalties for safety violations, established additional safety requirements for newly constructed pipelines and required studies of safety issues that could result~~ in the ~~adoption~~Baton ofRouge ~~new~~to ~~regulatory~~New ~~requirements~~Orleans byindustrial ~~PHMSA~~corridor; ~~for~~Lake ~~existing~~Charles, ~~pipelines.~~Louisiana; ~~The~~Mont ~~2016 Act~~Belvieu, ~~among~~Texas; ~~other things~~Mobile, ~~required~~Alabama; ~~PHMSA~~Ingleside, toTexas; ~~complete its outstanding mandates under the 2011 Act~~ and ~~develop~~Pensacola, ~~new safety standards for natural gas storage facilities~~Florida. ~~The~~We ~~2020~~can ~~Act~~also ~~reauthorized~~access ~~PHMSA through fiscal year 2023 and directed~~ the ~~agency~~Houston toShip ~~move~~Channel ~~forward~~through ~~with several regulatory initiatives, including obligating operators of non~~third-~~rural~~party natural gas gathering lines and new and existing transmission and distribution pipeline facilities to conduct certain leak detection and repair programs and to require facility inspection and maintenance plans to align with those requirementspipelines.

AsExporters ~~a result~~ of ~~the~~LNG: ~~2011~~LNG ~~Act,~~exporters ~~the~~use ~~2016~~our ~~Act~~natural ~~and the 2020 Act, PHMSA has issued a series of significant rulemakings. In October 2019, PHMSA published a final rule imposing numerous new requirements on onshore~~ gas ~~transmission~~firm ~~pipelines,~~transportation ~~also~~services ~~known as the Mega Rule, relating~~ to maximum allowable operating pressure (MAOP) reconfirmation and exceedance reporting, the integrity assessment of additional pipeline mileage found in MCAs and Class 3 and Class 4 non-HCAs by 2033, and the consideration of seismicity as a risk factor in integrity management. PHMSA published a second final rule in October 2019 for hazardous liquid transmission and gathering pipelines that significantly extends and expands the reach ofLNG ~~certain~~liquefaction ~~of its integrity management requirements,~~ and ~~that~~export requires the accommodation of in-line inspection tools by 2039 unless the pipeline cannot be modified to permit such accommodation, increased annual, accident and safety-related conditional reporting requirements, and expanded use of leak detection systems beyond HCAs. Certain aspects of that rule are currently in court review. PHMSA also published final rules during February and July 2020 that amended the minimum safety requirements related to natural gas storage facilities~~, including wells, wellbore tubing and casing, and added applicable reporting requirements~~. InWe ~~June~~provide 2021, PHMSA issued an Advisory Bulletin advising pipeline and pipeline facility operators of applicable requirements to update their inspection and maintenance plans for the elimination of hazardous leaks and minimization of natural gas released from pipeline facilities1.4 ~~PHMSA~~Bcf/d ~~and state regulators reportedly began their review~~ of ~~these~~firm ~~plans in 2022, and in May 2023, published a proposed rule that would enhance requirements for detecting and repairing leaks on new and existing~~ natural gas ~~distribution,~~transportation ~~gas~~service ~~transmission~~directly and gas gathering pipelines. In August 2022, PHMSA published another final rule expanding the Management of Change process, extending corrosion control requirements for gas transmission pipelines, adding requirements that operators ensure no conditions exist following an extreme weather event that could adversely affect the safe operation of the pipeline, and adopting repair criteria for non-HCAs similar to ~~those applicable to HCAs. In September 2023, PHMSA published a proposed rule that would enhance~~ the ~~safety~~Freeport ~~requirements~~LNG ~~for~~liquefaction ~~gas distribution pipelines~~ and ~~would~~export ~~require~~facility ~~updates~~in ~~to distribution integrity management programs~~Freeport, ~~emergency response plans, operations and maintenance manuals and other safety practices~~Texas. These new and any future regulations adopted by PHMSA have imposed and may impose more stringent requirements applicable to integrity management programs and other pipeline safety aspects of our operations, which could cause us to incur increased capital and operating costs and operational delays.

~~Transportation~~Our ~~Safety~~natural ~~Administration:~~gas Indelivery ~~2022~~markets ~~and~~have ~~2023~~diversified over time, ~~the~~with ~~Department~~increased ofdeliveries ~~Homeland~~to ~~Security's~~our ~~Transportation~~end-use ~~Safety~~customers, ~~Administration~~whereas ~~(TSA)~~historically, ~~issued~~our anatural ~~series~~gas ofdelivery ~~security~~markets ~~directives~~were ~~applicable~~primarily to ~~pipeline~~other ~~owners~~pipelines ~~and~~who ~~operators~~then ~~intended~~delivered to ~~strengthen~~ the ~~industry's~~end-use ~~overall~~customers. ~~cybersecurity~~As ~~posture~~of inDecember ~~light~~31, 2024, we had approximately $14.2 billion of ~~the~~projected ~~evolving~~operating ~~threat~~revenues ~~landscape~~under ~~and~~committed ~~its~~firm ~~potential~~agreements, ~~impacts~~of which our deliveries are expected to ~~critical~~be ~~U.S.~~as ~~infrastructure.~~follows: ~~The~~pipeline ~~security~~interconnects ~~directives~~(42%), ~~require~~electric power generators (22%), ~~among~~exporters ~~other~~of ~~things~~LNG (12%), ~~that~~industrial ~~pipeline~~end-users ~~owners~~(11%), ~~and~~LDCs ~~operators~~(5%), ~~designate~~storage aactivities (6%) and others (2%).

Government Regulation

Federal Energy Regulatory Commission: The FERC regulates our interstate natural gas transmission operating subsidiaries under the Natural Gas Act of 1938 (NGA) and the Natural Gas Policy Act of 1978 (NGPA). The FERC regulates, among other things, the rates and charges for the transportation and storage of natural gas in interstate commerce and the construction, extension, enlargement or abandonment of facilities under its jurisdiction. Where required, our interstate natural gas pipeline subsidiaries hold certificates of public convenience and necessity issued by the FERC covering certain of their facilities, activities and services. The FERC also prescribes accounting treatment for our interstate natural gas pipeline subsidiaries, which is separately reported pursuant to forms filed with the FERC. The regulatory books and records and other activities of our subsidiaries that operate under the FERC's jurisdiction may be periodically audited by the FERC.

The maximum applicable rates that our FERC-regulated operating subsidiaries may charge for all aspects of the natural gas transportation services they provide are established through the FERC's cost-based rate-making process; however, the FERC also allows for discounted or negotiated rates as an alternative to cost-based rates. Key determinants in the FERC's cost-based rate-making process are the costs of providing service, the volumes of gas being transported, the rate design, the allocation of costs between services, the capital structure and the rate of return a pipeline is permitted to earn. The maximum applicable rates that we may charge for storage services on Texas Gas, except for services associated with a portion of the working gas capacity on that system, are also established through the FERC's cost-based rate-making process. The FERC has authorized us to charge market-based rates for firm and interruptible storage services for the majority of our other natural gas storage facilities. None of our FERC-regulated entities currently have an obligation to file a new rate case.

Over time, the FERC may change, amend or announce that it will undertake a review of its existing policies. There were no major policy changes announced by the FERC during 2024 that materially impacted us.

The FERC has authority to impose civil penalties for violations of the NGA and NGPA and the implementing regulations thereunder, up to a maximum amount that is adjusted annually for inflation, which for 2025 is approximately $1.6 million per day per violation. Should we fail to comply with applicable statutes, rules, regulations and orders administered by the FERC, we could be subject to substantial penalties and fines, in addition to reputational damage.

Surface Transportation Board and Louisiana Public Service Commission: The STB regulates the rates we charge for interstate service on our ethylene pipeline systems. The LPSC regulates the rates we charge for intrastate service within the state of Louisiana on our petrochemical and NGLs pipelines. The STB and LPSC require that our transportation rates are reasonable and that our practices cannot unreasonably discriminate among our shippers.

~~cybersecurity~~U.S. ~~coordinator~~Department of Transportation (DOT): We are regulated by the DOT, ~~establish~~through the Pipeline and ~~implement~~Hazardous aMaterials ~~Cybersecurity~~Safety ~~Implementation~~Administration ~~Plan;~~(PHMSA), ~~develop~~under the Natural Gas Pipeline Safety Act of 1968, ~~maintain~~as amended (NGPSA), and ~~test~~the noHazardous ~~less~~Liquids ~~than~~Pipeline ~~annually~~Safety ~~through~~Act ~~tabletop~~of ~~exercises~~1979, aas ~~Cybersecurity~~amended ~~Incident~~(HLPSA). ~~Response~~The ~~Plan;~~NGPSA and ~~establish~~HLPSA agovern ~~Cybersecurity~~the ~~Assessment~~design, ~~Plan~~installation, testing, construction, operation, replacement and management of interstate natural gas and NGLs pipeline facilities. We have authority from PHMSA to operate certain natural gas pipeline assets under issued permits with specific conditions that allow us to operate those pipeline assets at higher than normal operating pressures of up to 0.80 of the pipeline's Specified Minimum Yield Strength (~~CAP~~SMYS). ~~including~~Operating aat ~~schedule~~these ~~for~~pressures ~~assessing~~allows ~~and~~us ~~auditing~~to transport all the ~~CAP~~existing natural gas volumes we have contracted for on those facilities with our customers. ~~The~~PHMSA ~~directives~~retains ~~also~~discretion ~~contain~~whether ~~requirements~~to grant or maintain authority for ~~reporting~~us ~~cybersecurity~~to ~~incidents~~operate our natural gas pipeline assets at higher pressures, and, in the ~~results~~event that PHMSA should elect not to allow us to operate at these higher pressures, it could affect our ability to transport all of ~~certain~~our ~~assessments~~contracted quantities of natural gas on these pipeline assets, and ~~audits~~we could incur significant additional costs to reinstate this authority or to develop alternate ways to meet our contractual obligations. WePHMSA's ~~have~~regulations ~~implemented~~also ~~tools~~require transportation pipeline operators to implement integrity management programs to comprehensively evaluate certain high-risk areas, ~~policies~~known as high consequence areas (HCAs) and ~~practices~~moderate ~~designed~~consequence areas (MCAs), along pipelines and take additional safety measures to ~~comply~~protect ~~with~~people ~~the~~and ~~security~~property ~~directives~~in these areas. ~~Other~~The ~~regulators~~HCAs for natural gas pipelines are predicated on high-population density areas (which, ~~such~~for asnatural ~~PHMSA~~gas transmission lines, include Class 3 and ~~the~~4 ~~Securities~~areas and, ~~Exchange~~depending ~~Commission~~on ~~(SEC~~the potential impacts of a risk event, may include Class 1 and 2 areas), ~~have~~whereas ~~also~~HCAs ~~established~~along ~~requirements~~our ~~for~~NGLs ~~reporting~~pipelines ~~cybersecurity~~are ~~incidents~~based on high-population density areas, areas near certain drinking water sources and unusually sensitive ecological areas.

~~Other:~~Legislation ~~Our~~has ~~operations~~resulted ~~are~~in ~~also~~more ~~subject~~stringent tomandates ~~extensive~~for ~~federal,~~pipeline ~~state,~~safety and ~~local~~has ~~laws~~charged PHMSA with developing and adopting regulations ~~relating~~that toimpose ~~protection~~increased ofpipeline safety requirements on pipeline operators. In particular, the ~~environment~~NGPSA and ~~occupational~~HLPSA ~~health~~were ~~and~~amended ~~safety.~~by ~~Such~~the ~~laws~~Pipeline ~~and~~Safety, ~~regulations~~Regulatory ~~impose~~Certainty, ~~among~~and ~~other~~Job ~~things,~~Creation ~~restrictions~~Act of 2011 (2011 Act), ~~liabilities~~the Protecting Our Infrastructure of Pipelines and ~~obligations~~Enhancing inSafety ~~connection~~Act ~~with~~of ~~the~~2016 ~~generation,~~(2016 ~~handling~~Act), ~~use~~and, ~~storage,~~most ~~transportation~~recently, ~~treatment~~the Protecting Our Infrastructure of Pipelines and ~~disposal~~Enhancing Safety Act of ~~various~~2020 ~~substances~~(2020 Act), ~~including~~each ~~hazardous~~of ~~substances~~which ~~and~~imposed ~~waste,~~increased ~~and~~pipeline insafety ~~connection~~obligations ~~with~~on ~~spills,~~pipeline ~~releases~~operators. The 2011 Act increased the penalties for safety violations, ~~discharges~~established additional safety requirements for newly constructed pipelines and ~~emissions~~required studies of ~~various~~safety ~~substances~~issues ~~into~~that ~~the~~could ~~environment.~~result ~~Environmental~~in ~~regulations~~the ~~also~~adoption ~~require~~of ~~that~~new ~~our~~regulatory ~~facilities,~~requirements ~~sites~~by ~~and~~PHMSA ~~other~~for ~~properties~~existing bepipelines. ~~operated,~~The ~~maintained~~2016 Act, ~~abandoned~~among ~~and~~other ~~reclaimed~~things, required PHMSA to complete its outstanding mandates under the ~~satisfaction~~2011 ofAct ~~applicable~~and ~~regulatory~~develop ~~authorities~~new safety standards for natural gas storage facilities. ~~Occupational~~The ~~health~~2020 Act reauthorized PHMSA through fiscal year 2023 and ~~safety~~directed ~~regulations~~the ~~establish~~agency ~~standards~~to ~~protective~~move offorward ~~workers~~with several regulatory initiatives, ~~both~~including ~~generally~~obligating operators of non-rural gas gathering lines and ~~within~~new ~~the~~and existing transmission and distribution pipeline ~~industry.~~facilities ~~These~~to ~~laws,~~conduct ascertain ~~amended~~leak ~~from~~detection ~~time~~and repair programs and to ~~time,~~require ~~that~~facility ~~our~~inspection ~~operations~~and ~~are~~maintenance ~~subject~~plans to, ~~include,~~align ~~for~~with ~~example:~~those requirements.

As a result of the 2011 Act, the 2016 Act and the 2020 Act, PHMSA has issued a series of significant rulemakings for onshore gas transmission pipelines (e.g., relating to maximum allowable operating pressure (MAOP) reconfirmation and exceedance reporting, the integrity assessment of additional pipeline mileage and the consideration of seismicity as a risk factor in integrity management), and hazardous liquid transmission and gathering pipelines (e.g., expanding the reach of certain of PHMSA's integrity management requirements, requiring the accommodation of in-line inspection tools by 2039 for certain pipelines, increasing annual, accident and safety-related conditional reporting requirements, and expanding the use of leak detection systems beyond HCAs). PHMSA also regulates the minimum safety requirements applicable to natural gas storage facilities, including wells, wellbore tubing and casing. In August 2022, PHMSA published a final rule that attempted to expand the Management of Change process, corrosion control requirements for gas transmission pipelines, requirements that operators ensure no conditions exist following an extreme weather event that could adversely affect the safe operation of the pipeline and repair criteria for non-HCAs. Five safety standards included in that rule were challenged by industry trade groups, and in August 2024, the U.S. Court of Appeals for the D.C. Circuit struck down four of the five challenged safety standards. In September 2023, PHMSA published a proposed rule that, if finalized, would enhance the safety requirements for gas distribution pipelines and would require updates to distribution integrity management programs, emergency response plans, operations and maintenance manuals and other safety practices. These new and any future regulations adopted by PHMSA have imposed and may impose more stringent requirements applicable to integrity management programs and other pipeline safety aspects of our operations, which could cause us to incur increased capital and operating costs and operational delays.

Transportation Safety Administration: The Department of Homeland Security's Transportation Safety Administration (TSA) has issued a series of security directives between 2022 and 2024 applicable to major pipeline owners and operators intended to strengthen the industry's overall cybersecurity posture in light of the evolving threat landscape and its potential impacts to U.S. critical infrastructure. The security directives require, among other things, that pipeline owners and operators designate a cybersecurity coordinator; establish and implement a Cybersecurity Implementation Plan; develop, maintain and test no less than annually through tabletop exercises a Cybersecurity Incident Response Plan; and establish a Cybersecurity Assessment Plan (CAP) including a schedule for assessing and auditing the CAP. The directives also contain requirements for

reporting cybersecurity incidents and the results of certain assessments and audits. We have implemented tools, policies and practices designed to comply with the security directives. Other regulators, such as PHMSA and the Securities and Exchange Commission (SEC), have also established requirements for reporting certain cybersecurity incidents.

Other: Our operations are also subject to extensive federal, state, and local laws and regulations relating to the protection of the environment and occupational health and safety. Such laws and regulations impose, among other things, restrictions, liabilities and obligations in connection with the generation, handling, use, storage, transportation, treatment and disposal of various substances, including hazardous substances and waste, and in connection with spills, releases, discharges and emissions of various substances into the environment. Environmental regulations also require that our facilities, sites and other properties be operated, maintained, abandoned and reclaimed to the satisfaction of applicable regulatory authorities. Occupational health and safety regulations establish standards protective of workers, both generally and within the pipeline industry. These laws, as amended from time to time, that our operations are subject to, include, for example:

•the Clean Air Act (CAA) and analogous state laws, which regulate air emission pollutants, greenhouse gas (GHG) emissions and reciprocating engines subject to Maximum Achievable Control Technology standards;

•the Federal Water Pollution Control Act, commonly referred to as the Clean Water Act, and analogous state laws, which establish the extent to which waterways are subject to federal or state jurisdiction and serve to regulate the discharge of wastewater from our facilities into state and federal waters;

•the Comprehensive Environmental Response, Compensation, and Liability Act, commonly referred to as CERCLA, or the Superfund law, and analogous state laws, which regulate the cleanup of hazardous substances that may have been released at properties currently or previously owned or operated by us or locations to which we have sent hazardous substances for disposal;

•the Resource Conservation and Recovery Act (RCRA) and analogous state laws, which impose requirements for the generation, storage, treatment, transportation and disposal of solid and hazardous wastes at or from our facilities;

•the Endangered Species Act (ESA), which restricts activities that may affect federally identified endangered and threatened species or their habitats by the implementation of operating restrictions or a temporary, seasonal or permanent ban in affected areas;

•the National Environmental Policy Act (NEPA), which requires federal agencies to evaluate major agency actions having the potential to impact the environment and that may require the preparation of environmental assessments and more detailed environmental impact statements that may be made available for public review and comment; and

•the Occupational Safety and Health Act (OSHA) and analogous state laws, which establish workplace standards for the protection of the health and safety of employees, including the implementation of hazard communications programs designed to inform employees about hazardous substances in the workplace, potential harmful effects of these substances and appropriate control measures.

Many states and local governments where we operate also have, or are developing, similar environmental or occupational health and safety legal requirements governing many of the same types of activities, and those requirements can be more stringent than those adopted under federal laws and regulations. Failure to comply with these federal, state, and local laws and regulations may result in the assessment of administrative, civil and criminal penalties, the imposition of corrective or remedial obligations, the incurrence of capital expenditures, the occurrence of delays, denials or cancellations in permitting or in the development or expansion of projects and the issuance of orders enjoining performance of some or all of our operations in affected areas.

~~President~~While the Biden ~~continues~~Administration attempted to pursue additional ~~action~~actions to bolster environmental regulations, ~~which~~the ~~may~~future ~~impact~~of ~~our~~these ~~operations~~actions is uncertain. For example, the Biden Administration ~~has~~ revised various rules to be more stringent, repealed various rules issued by the first Trump Administration, ~~and~~imposed ~~has announced forthcoming actions or released proposed or final rules regarding~~ restrictions on methane emissions from oil and gas operations, and ground level ozone emission standards, and ~~Nationwide~~took ~~Permit~~other ~~(NWP)~~actions ~~12. The Biden Administration has also signaled a strong focus on directing agency action~~ to mitigate climate change and further limit GHG emissions. In addition, in January 2023, the White House's Council on Environmental Quality (CEQ) released guidance to assist federal agencies in assessing the GHG emissions and climate change effects of their proposed actions under the NEPA. ~~The~~In ~~guidance~~May ~~followed~~2024, the ~~publication~~CEQ ofpublished a final rule that, in ~~April~~the ~~2022~~second ~~revoking~~and ~~some~~final ~~modifications~~"phase" ~~made~~of toupdates, revised the implementing regulations ~~under~~of the ~~Trump~~procedural ~~Administration~~provisions of NEPA and ~~reincorporating~~implemented ~~consideration~~amendments to NEPA included in the Fiscal Responsibility Act of ~~direct~~2023. The final rule was challenged by various states and the litigation remains ongoing. More recently, ~~indirect~~in November 2024, a panel of three judges on the U.S. Court of Appeals for the D.C. Circuit held that the CEQ lacks authority to issue NEPA regulations and ~~cumulative~~followed ~~effects~~with a statement by a majority of ~~major~~the ~~federal~~judges ~~actions~~suggesting that in future cases they may not rule similarly that the CEQ lacks rulemaking authority. In ~~July~~February ~~2023~~2025, the ~~CEQ~~District ~~announced~~Court ~~another~~for ~~proposed~~North ~~rule~~Dakota ~~which~~also ~~revises~~held that the ~~implementing~~CEQ lacks authority to issue NEPA regulations ofand vacated the ~~procedural~~CEQ's ~~provisions~~2024 "Phase 2" rule. Additionally, President Trump signed an energy-related

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ofExecutive ~~NEPA~~Order ~~and~~which ~~implements amendments to NEPA~~ included inordering the ~~Fiscal~~CEQ ~~Responsibility~~to ~~Act~~propose ofrescinding ~~2023~~its NEPA regulations. ~~The~~As ~~final~~a ~~rule~~result, there is ~~expected~~significant inuncertainty ~~the~~with ~~second~~respect ~~quarter~~to ofcurrent ~~2024.~~and ~~The~~future ~~CEQ's~~NEPA ~~guidance,~~regulations. ~~effective~~While ~~upon~~we ~~publication,~~cannot ~~alongside~~predict the ~~proposed~~full ~~and~~impact ~~final~~of ~~rules~~these developments, ~~could~~any ~~result~~legal ~~in additional~~ challenges to NEPA reviews performed in connection with our projects, ~~which~~may ~~in turn could~~ result in further permitting and approval delays. For more information, see Item 1A. Risk Factors—Business Risks—"Our operations, and those of our customers, are subject to a series of risks regarding climate change."

Environmental laws and regulations generally become stricter over time; however, we cannot predict how the recent change in presidential administrations will impact our regulatory obligations. Stricter environmental or worker safety laws, regulations or enforcement policies could significantly increase our operational or compliance costs and compliance with new or more stringent environmental legal requirements could delay or prohibit our ability to obtain permits for operations or require us to install additional pollution control equipment. For instance, the construction or expansion of pipelines often requires authorizations under the Clean Water Act, which authorizations may be subject to challenge. ~~For~~There ~~instance, there~~ is ongoing litigation with respect to the status and use of the U.S. Army Corps of Engineers (the Corps) Clean Water Act Section 404 Nationwide Permit (NWP) 12, which was ~~vacated~~issued in ~~April~~January ~~2020.~~2021 Inand ~~January~~subsequently ~~2021,~~challenged ~~the~~by ~~Corps~~various ~~reissued~~environmental agroups. ~~restructured~~We rely on NWP 12, ~~for~~alongside ~~oil~~other ~~and~~NWPs, ~~natural~~as ~~gas~~blanket ~~pipeline~~authority ~~activities.~~for Inconstruction, ~~March 2022~~maintenance, ~~the~~repair ~~Corps~~and ~~announced~~removal itof ~~was~~pipelines. ~~seeking~~If ~~stakeholder~~NWP ~~input~~12 onis aamended ~~formal~~or ~~review~~revoked, ofwe ~~NWP~~may ~~12,~~be ~~although~~required ~~while~~to ~~this~~apply ~~review~~for isone ~~ongoing~~or more Individual Permits, ~~the~~which ~~Corps~~would ~~has~~require ~~resumed~~additional ~~permitting~~time ~~decisions.~~and ~~NWP~~resources ~~12,~~to ~~alongside~~obtain. ~~other~~The ~~NWPs,~~NWP process relies upon the Clean Water Act Section 401 certification process, which is also subject to ongoing litigation. In October 2021, the Northern District of California federal court vacated a 2020 rule revising the Section 401 certification process. The Supreme Court stayed the vacatur of Section 404 of NWP 12 and, in September 2023, the Environmental Protection Agency (EPA) finalized its Clean Water Act Section 401 Water Quality Certification Improvement Rule, effective onin November 272023, ~~2023~~which expanded the scope of certification authority. While the litigation is ongoing and the full extent and impact of these actions is unclear at this time, any disruption in our ability to obtain coverage under NWP 12 or other permits may result in increased costs and project delays if we are forced to seek individual permits from the Corps. There also continues to be uncertainty with respect to the federal government's jurisdictional reach under the Clean Water Act over "waters of the United States" (WOTUS), including wetlands, as the EPA and the Corps have pursued multiple rulemakings under different administrations since 2015 in an attempt to determine the scope of such reach. InMost ~~December~~recently, ~~2022~~in September 2023, the ~~Biden~~EPA ~~Administration~~issued ~~finalized~~ a ~~new~~version ~~and more expansive definition~~ of ~~"waters of~~ the ~~United~~WOTUS ~~States," which repealed the Trump Administration's April 2020~~ rule ~~and~~that, ~~largely~~due ~~restored~~to ~~the~~injunctions ~~definition~~ in ~~place~~certain ~~prior to 2015~~states, ~~with~~is ~~modifications~~being ~~reflecting~~implemented ~~Supreme~~in ~~Court~~only ~~decisions~~24 ~~issued after 2015~~states. ~~In January 2023~~Thus, the ~~EPA~~operative ~~and~~definition ~~the~~of ~~Corps~~WOTUS ~~released~~varies aby ~~final~~state. ~~revised~~However, ~~definition~~we ofcannot ~~"waters~~predict ofwhat ~~the~~actions ~~United States" founded upon~~ the ~~pre-2015~~Trump ~~regulations.~~Administration ~~Judicial~~may ~~developments~~take ~~also~~with ~~add~~respect to ~~this~~any ~~uncertainty.~~of ~~The~~these ~~Supreme~~regulations ~~Court~~and ~~opinion~~the intiming ~~Sackett~~with v.respect ~~EPA~~to ~~invalidated certain parts of~~ the ~~January~~same. ~~2023~~As ~~rule, resulting in~~ a ~~revised~~result, ~~rule~~there ~~being~~is ~~issued~~significant inuncertainty ~~September~~with ~~2023.~~respect ~~However, due~~ to ~~injunctions~~wetlands inregulation ~~certain~~under ~~states,~~ the ~~implementation~~Clean ofWater ~~the~~Act ~~September~~at ~~2023~~this ~~rule currently varies by state~~time. For more information, see Item 1A. Risk Factors—Business Risks— "Failure to comply with environmental or worker safety laws and regulations or an accidental release of pollutants into the environment may cause us to incur significant costs and liabilities."

Historically, our environmental compliance costs have not had a material adverse effect on our results of operations, but there can be no assurance that future compliance with existing requirements will not materially affect us or that the current regulatory standards will not become more onerous in the future, resulting in more significant costs to maintain compliance and increased exposure to significant liabilities. Note 6 in Part II, Item 8. of this Annual Report on Form 10-K contains information regarding environmental compliance.

Climate Change

Climate change continues to attract considerable public, governmental and scientific attention. As a result, numerous proposals have been made and are likely to continue to be made at the international, national, regional, state and local levels of government to monitor and limit emissions of GHGs. These efforts have included consideration of cap-and-trade programs, carbon taxes and GHG reporting and tracking programs, and regulations that directly limit GHG emissions from certain sources. Due to the nature of our business, our operations emit various types of GHGs. We seek to carefully monitor our emissions and expect to incur additional costs to mitigate emissions. New legislation or regulations could increase the costs related to operating and maintaining our facilities. Depending on the particular law, regulation or program, we could be required to incur capital expenditures for installing new monitoring equipment or emission controls on our facilities, acquire and surrender allowances for GHG emissions, pay taxes or fees related to GHG emissions and/or administer and manage a more comprehensive GHG emissions program. While we may be able to include some or all of the increased costs in the rates charged by our pipelines, recovery of costs is not certain and would require the FERC's approval of a rate mechanism designed to recover those costs.

We recognize that relative to certain other fossil fuels, natural gas has an important role in reducing GHG emissions and may act as a bridge to scaling up renewable energy or other alternative energy sources in the U.S. While we are seeking to reduce our GHG emissions, we cannot predict all risks that may be associated with climate change or other environmental, social and governance (ESG) matters. For more information, please see Item 1A. Risk Factors—Business Risks—"Our operations, and those of our customers, are subject to a series of risks regarding climate change" and "Increased attention to climate change, environmental, social and governance matters and conservation measures may adversely impact our business."

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operations, and those of our customers, are subject to a series of risks regarding climate change" and "Increased attention to climate change, environmental, social and governance matters and conservation measures may adversely impact our business."

Human Capital

AtAs of December 31, ~~2023~~2024, we had approximately 1,~~260~~290 employees, approximately 95100 of whom were included under collective bargaining agreements. A satisfactory relationship exists between management and our employees. As of December 31, 2023, women comprised approximately 21% of our workforce and held 23% of our management roles (considered vice president and above). As of December 31, 2023, minorities comprised 13% of our workforce and held 11% of our management roles.

Hiring and retaining qualified people is critical to our long-term strategic success. We have programs in place that seek to help employees build their knowledge, skills and experience, as well as to guide their career development. ~~A cornerstone of our human capital strategy is our commitment to fostering a diverse and inclusive work environment, where employees are respected and encouraged to contribute their ideas.~~ We believe that employing individuals with different backgrounds and experiences helps meet the diverse needs of our stakeholders.

We are part of a critical infrastructure industry whose customers and communities depend upon us to provide safe and reliable service. Our employees are essential to ensuring we continue to meet these objectives, and we consider safety in our day-to-day activities to be a primary core value. ~~We want every person who lives near or works on our facilities to stay safe every day by also maintaining our strong commitment to safety.~~

Available Information

Our website is located at www.bwpipelines.com. We make available free of charge through our website our Annual Reports on Form 10-K, which include our audited financial statements, quarterly reports on Form 10-Q, current reports on Form 8-K and amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (Exchange Act) as soon as reasonably practical after we electronically file such material with the SEC. These documents are also available on the SEC's website at www.sec.gov.

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Item 1A. Risk Factors

Our business faces many risks and uncertainties. We have described below the material risks facing us. These risks and uncertainties could lead to events or circumstances that may have a material adverse effect on our business, financial condition, results of operations or cash flows. There may be additional risks that we do not yet know of or that we do not currently perceive to be as material that may also materially adversely affect our business, financial condition, results of operations or cash flows.

All of the information included in this Annual Report on Form 10-K and any subsequent reports we ~~may~~ file with the SEC or make available to the public should be carefully considered and evaluated before investing in any securities issued by us.

Business Risks

Our natural gas transportation and storage operations and ethane transportation services are subject to extensive regulation by the FERC, including rules and regulations related to the rates we can charge for our services and our ability to construct or abandon facilities. We may not be able to recover the full cost of operating our pipelines or storage operations, including earning a reasonable return.

Our natural gas transportation and storage operations are subject to extensive regulation by the FERC, including with respect to the types, rates and terms of services we may offer to our customers, construction of new facilities, creation, modification or abandonment of services or facilities and recordkeeping and relationships with affiliated companies. An adverse FERC action in any of these areas could affect our ability to compete for business, construct new facilities, offer new services or recover the full cost of operating our pipelines or storage operations, including earning a reasonable return. This regulatory oversight can result in longer lead times to develop and complete any future project than competitors that are not subject to the FERC's regulations. The FERC can also deny us the right to abandon certain facilities from service.

The FERC regulates the rates we can charge for our natural gas transportation and storage and interstate ethane transportation operations. For our cost-based services, the FERC establishes both the maximum and minimum rates we can charge. The basic elements that the FERC considers are the costs of providing service, the volumes of gas being transported, the rate design, the allocation of costs between services, the capital structure and the rate of return a pipeline is permitted to earn. We may not be able to recover our costs, including certain costs associated with pipeline integrity, through existing or future rates.

The FERC and/or our customers could challenge the maximum applicable rates that any of our regulated pipelines can charge in accordance with Section 5 of the NGA. ~~Adoption~~The adoption of potential legislation that would amend Section 5 of the NGA to add refund provisions could increase the likelihood of such a challenge. If such a challenge is successful for any of our pipelines or if our rates are found not to be just and reasonable, then the revenues associated with transportation and storage services the pipeline provides pursuant to cost-of-service rates could materially decrease in the future, which would adversely affect, perhaps substantially, the revenues on that pipeline going forward.

Over time, the FERC may change, amend or announce that it will undertake a review of its existing policies. There were no major policy changes announced by the FERC during ~~2023~~2024.

The FERC has authority to impose civil penalties for violations of the NGA and NGPA, and the implementing regulations thereunder, up to a maximum amount that is adjusted annually for inflation, which for ~~2024~~2025 is approximately $1.56 million per day per violation. Should we fail to comply with applicable statutes, rules, regulations and orders administered by the FERC, we could be subject to substantial penalties and fines, in addition to reputational damage. ~~The rates and terms of service on our interstate ethane transportation pipeline are also subject to regulation by the FERC under, among other statutes, the ICA and the Energy Policy Act of 1992.~~

Our operations, and those of our customers, are subject to a series of risks regarding climate change.

The threat of climate change continues to attract considerable attention in the U.S. and in other countries. Numerous proposals have been made and could continue to be made at the international, national, regional, state and local levels of government to monitor, limit and eliminate both existing and future emissions of GHGs. These proposals expose our operations, as well as the operations of our fossil fuel producer customers, to a series of regulatory, political, litigation and financial risks.

13In the U.S., no comprehensive climate change legislation has been implemented at the federal level. Although the Biden Administration has taken legislative, regulatory and executive action to address climate change, policy priorities, such as climate change, are likely to change with the new presidential administration. For example, in August 2022, the Inflation

In the U.S., no comprehensive climate change legislation has been implemented at the federal level, but President Biden has shown that action to address climate change is an important part of his Administration's agenda. For example, in August 2022, the Inflation Reduction Act of 2022 (IRA) passed which advanced numerous climate-related objectives. Additionally, the EPA has issued several rules regulating GHGs following the U.S. Supreme Court finding that GHGs are air pollutants under the CAA and the EPA's own endangerment finding for certain GHGs, including carbon dioxide and methane. The EPA regulates GHGs through various requirements, including permitting for GHG emissions from large stationary sources, annual reporting on GHG emissions from oil and gas facilities, New Source Performance Standards restricting methane emissions from new facilities in the natural gas sector, and GHG emissions limits on vehicles (together with the DOT). The EPA's regulation of methane emissions has undergone significant changes. In December 2023, the EPA finalized its methane rules for new, modified, and reconstructed facilities, known as OOOOb, as well as standards for existing sources for the first time ever, known as OOOOc. Under the final rules, states have two years to prepare and submit their plans to impose methane emission controls on existing sources. The presumptive standards established under the final rules are generally the same for both new and existing sources and include enhanced leak detection survey requirements using optical gas imaging and other advanced monitoring to encourage the deployment of innovative technologies to detect and reduce methane emissions, reduction of emissions by 95% through capture and control systems, zero-emission requirements for certain devices, and the establishment of the "super emitter" response program that would allow third parties to make reports to the EPA of large methane emission events, triggering certain investigation and repair requirements. Fines and penalties for violations of these rules can be substantial. It is likely that the final rules and its requirements will be subject to legal challenges. Compliance with the new rules may affect the amount we owe under the IRA, which amended the CAA to impose a first-time fee on the emission of methane from sources required to report their GHG emissions to the EPA. The methane emissions fee applies to excess methane emissions from certain facilities and starts at $900 per metric ton of leaked methane in 2024 and increases to $1,200 in 2025 and $1,500 in 2026 and thereafter. Compliance with the EPA's new final rules and standards would exempt an otherwise covered facility from the requirement to pay the methane fee. The requirements of the EPA's final methane rules could increase our operating costs and the costs of our customers, thereby adversely affecting our operations.

Governmental entities, including certain states and groups of states, have adopted or are considering legislation, regulations or other initiatives, such as GHG cap-and-trade programs, carbon taxes, GHG reporting and tracking programs, and emissions limits. At the international level, in February 2021 the U.S. rejoined the Paris Agreement, which requires member nations to submit non-binding GHG emissions reduction goals every five years. In April 2021, President Biden announced a new target for the U.S. to reduce GHG emissions 50%-52% from 2005 levels by 2030. In November 2021, the U.S. joined other nations for the 26th Conference of the Parties to the United Nations Framework Convention on Climate Change (COP26), during which nations including the U.S. made various commitments, including the Global Methane Pledge to reduce methane emissions 30% from 2020 levels by 2030. In December 2023, at the 28th Conference of the Parties to the United Nations Framework Convention on Climate Change (COP28), certain parties signed onto an agreement to transition "away from fossil fuels in energy systems in a just, orderly, and equitable manner" and increase renewable energy capacity so as to achieve net zero by 2050, although no timeline for doing so was set. The impact of the Paris Agreement, COP26, COP28 or other international conventions cannot be predicted at this time, and it is unclear what additional initiatives may be adopted or implemented, or whether similar efforts at future climate conferences will be successful and the potential resultant impact this may have upon our business or financial condition.

Governmental, scientific and public concern over the threat of climate change arising from GHG emissions has resulted in increasing political risks in the U.S. The Biden Administration and future administrations could take various actions to curtail oil and natural gas production and transportation, including limiting fracturing of oil and natural gas wells, restricting flaring and venting during natural gas production on federal properties, limiting or banning oil and gas leases on federal lands and offshore waters, increasing requirements for construction and permitting of pipeline infrastructure and LNG export facilities, and further restricting GHG emissions from oil and gas facilities. For example, on January 26, 2024, President Biden announced a temporary pause on pending decisions on new exports of LNG to countries that the U.S. does not have free trade agreements with, pending Department of Energy review of the underlying analyses for authorization. Litigation risks are also increasing, as a number of cities and other governmental entities have brought suit alleging that fossil fuel producers created public nuisances by producing fuels that contributed to global warming effects such as rising sea levels, are responsible for associated roadway and infrastructure damage, or defrauded investors or customers by failing to timely and adequately disclose adverse effects of climate change.

There are also increasing financial risks for fossil fuel energy companies as investors become increasingly concerned about the potential effects of climate change and may elect in the future to shift some or all of their investments into non-fossil fuel energy related sectors. Some institutional lenders who provide financing to fossil fuel energy companies also have become more attentive to sustainable lending practices that favor alternative power sources (such as wind, solar, geothermal, tidal and biofuels), making those sources more attractive, and some of them may elect not to provide funding for fossil fuel energy companies. Many of the largest U.S. banks have made "net zero" carbon emission commitments and have announced that they

~~will~~Reduction beAct ~~assessing~~of ~~financed~~2022 ~~emissions~~(IRA) ~~across~~passed, ~~their~~which ~~portfolios~~advanced ~~and~~numerous ~~taking~~climate-related ~~steps~~objectives, toincluding ~~quantify~~a ~~and~~methane ~~reduce those~~ emissions. Atfee ~~COP26, the Glasgow Financial Alliance for Net Zero announced~~ that ~~commitments~~applies ~~from over 450 firms across 45 countries had resulted in over $130.0 trillion in capital committed~~ to ~~net~~excess ~~zero~~methane ~~goals.~~emissions ~~Financial~~from ~~institutions~~certain ~~could~~facilities ~~be required to adopt policies~~ that ~~limit~~starts ~~funding~~at ~~for~~$900 ~~fossil~~per ~~fuel~~metric ~~energy~~ton ~~companies. In October 2023, the Federal Reserve, Office~~ of ~~the~~leaked ~~Comptroller~~methane ofin ~~the~~2024 ~~Currency~~ and ~~the~~increases ~~Federal~~to ~~Deposit Insurance Corp. released a finalized set of principles guiding financial institutions with~~ $~~100.0~~1,200 ~~billion or more~~ in ~~assets~~2025 ~~on the management of physical~~ and ~~transition risks associated with climate change. While we cannot predict what additional developments may arise from these various actions~~$1,500 ~~a material reduction~~ in ~~the~~2026 ~~capital available to the fossil fuel industry could make it more difficult to secure funding for exploration~~ and ~~production or midstream energy business activities, which could adversely impact our business and operations~~thereafter. ~~Additionally,~~In inNovember ~~March 2022~~2024, the ~~SEC~~EPA ~~released~~issued a ~~proposed~~final rule ~~that~~implementing ~~would establish a framework for~~ the ~~reporting~~methane ofemissions ~~climate~~fee; ~~risks~~however, ~~targets and metrics. A final rule is expected to be released in 2024, but~~ we cannot predict ~~the~~if ~~final~~Congress ~~form and substance of the rule and its requirements. The ultimate impact of the rule on our business is uncertain and, upon finalization,~~ may ~~result~~take inaction ~~increased compliance costs and increased costs of and restrictions on access~~ to ~~capital.~~repeal ~~Separately,~~or revise the ~~SEC has also announced that it is scrutinizing existing climate-change related disclosures in public filings~~IRA, ~~increasing~~with ~~the~~respect ~~potential for enforcement if the SEC were~~ to ~~allege that an issuer's existing climate disclosures are misleading or deficient. These agency actions could increase~~ the ~~potential~~methane ~~for~~emissions ~~litigation~~fee.

~~The~~Additionally, ~~adoption~~the ~~and~~EPA ~~implementation~~regulates ofGHGs, ~~new~~including ormethane ~~more~~and ~~stringent~~carbon ~~international~~dioxide, ~~federal,~~under ~~regional,~~the ~~state~~CAA orand ~~local~~has ~~legislation,~~implemented ~~regulations~~various orpermitting, ~~other~~reporting ~~initiatives~~and ~~that~~technology-based ~~impose~~requirements ~~more~~to ~~stringent~~reduce ~~standards for~~ GHG emissions ~~from~~by the oil and gas ~~sector~~sectors. orIn ~~otherwise~~December ~~restrict~~2023, ~~fossil~~the ~~fuel~~EPA ~~production~~finalized ~~could~~its ~~result~~methane inrules ~~increased~~for ~~costs~~new, ofmodified, ~~compliance~~and ~~for~~reconstructed ~~fossil~~facilities, ~~fuel~~known ~~use~~as OOOOb, ~~and~~as ~~reduce~~well ~~demand~~as standards for ~~fossil~~existing ~~fuels~~sources for the first time ever, ~~which~~known ~~could~~as ~~reduce~~OOOOc. ~~demand~~Under ~~for~~the ~~our~~final ~~transportation~~rules, states have two years to prepare and ~~storage~~submit ~~services~~their plans to impose methane emission controls on existing sources. ~~Political,~~The ~~litigation~~presumptive ~~and~~standards ~~financial~~established ~~risks~~under ~~may~~the ~~result~~final inrules ~~our~~include ~~fossil~~advanced ~~fuel~~monitoring ~~producer~~to ~~customers~~encourage ~~restricting~~the ordeployment ~~canceling~~of ~~production~~innovative ~~activities~~technologies to detect and reduce methane emissions, ~~incurring~~reduction ~~liability~~of ~~for~~emissions ~~infrastructure~~by 95% through capture and ~~other~~control ~~damages~~systems, aszero-emission arequirements ~~result~~for certain devices, and the establishment of ~~climatic~~the ~~changes,~~"super oremitter" ~~impairing~~response ~~their~~program ~~ability~~that would allow third parties to ~~continue~~make reports to ~~operate~~the inEPA anof ~~economic~~large ~~manner,~~methane ~~which~~emission ~~also~~events. ~~could~~Fines ~~reduce~~and ~~demand~~penalties for ~~our~~violations ~~services.~~of ~~Moreover,~~these rules can be substantial and compliance with the ~~increased~~new ~~competitiveness~~rules ofmay ~~alternative~~affect ~~energy~~the ~~sources~~amount ~~could~~we ~~reduce~~owe ~~demand~~under ~~for~~the ~~hydrocarbons~~IRA. The EPA's final methane rules are currently being challenged by 23 states and ~~for~~a ~~our~~coalition ~~services.~~of ~~Finally,~~industry wegroups ~~may~~in ~~also~~the beU.S. ~~subject~~Circuit toCourt ~~various~~of ~~physical~~Appeals ~~risks~~for ~~from~~the ~~climate~~D.C. ~~change~~Circuit. ~~For~~To ~~more~~the ~~information~~extent onnot ~~these~~timely ~~physical~~repealed ~~risks,~~or ~~see~~modified ~~our~~by ~~risk~~the ~~factor~~Trump ~~titled~~Administration, ~~"Climatic~~the ~~conditions~~requirements ~~and~~of ~~events~~the ~~could~~EPA's ~~adversely~~final ~~impact~~methane rules could increase our ~~operations,~~operating ~~pipelines~~costs and ~~facilities,~~the orcosts ~~those~~ of our customers, orthereby ~~suppliers~~adversely affecting our operations."

Governmental, scientific and public concern over the threat of climate change arising from GHG emissions has resulted in increasing political risks in the U.S. and the federal government has and could in the future take various actions to seek to curtail oil and natural gas production and transportation, including limiting fracturing of oil and natural gas wells, restricting flaring and venting during natural gas production on federal properties, limiting or banning oil and gas leases on federal lands and offshore waters, increasing requirements for construction and permitting of pipeline infrastructure and LNG export facilities, and further restricting GHG emissions from oil and gas facilities. However, on his first day in office, President Trump signed several Executive Orders rescinding many of the previous administration’s climate-related initiatives, that included many of the actions noted above. We cannot predict what additional actions the Trump Administration may take with respect to these matters or the timing for such actions. Litigation risks are also increasing, as a number of cities and other governmental entities have brought suit alleging that fossil fuel producers created public nuisances by producing fuels that contributed to global warming effects such as rising sea levels, are responsible for associated roadway and infrastructure damage, or defrauded investors or customers by failing to timely and adequately disclose adverse effects of climate change.

There have also been increasing financial risks for fossil fuel energy companies as certain investors become increasingly concerned about the potential effects of climate change and may elect in the future to shift some or all of their investments into non-fossil fuel energy related sectors. Some institutional lenders who provide financing to fossil fuel energy companies also have become more attentive to sustainable lending practices that favor alternative power sources (such as wind, solar, geothermal, tidal and biofuels), making those sources more attractive, and some of them may elect not to provide funding for fossil fuel energy companies. While we cannot predict how or to what extent sustainable lending and investment practices may impact us, a material reduction in the capital available to the fossil fuel industry could make it more difficult to secure funding for exploration and production or midstream energy business activities, which could adversely impact our business and operations. Additionally, in March 2024, the SEC released a final rule that establishes a framework for the reporting of climate risks, targets and metrics. However, the future of the SEC climate change rule is uncertain given that its implementation has been stayed pending the outcome of legal challenges; moreover, the SEC under the Trump Administration may seek to repeal or revoke the rule, though we cannot predict whether such action will occur or its timing. As a result, the ultimate impact of the SEC rule, or any similar climate-related disclosure requirements imposed in the future, on our business is uncertain and may result in increased compliance costs and increased costs of and restrictions on access to capital. These agency actions also could increase the potential for litigation.

The adoption and implementation of new or more stringent international, federal, regional, state or local legislation, regulations or other initiatives that impose more stringent standards for GHG emissions from the oil and gas sector or otherwise restrict fossil fuel production could result in increased costs of compliance for fossil fuel use, result in litigation and reduce demand for fossil fuels, which could reduce demand for our transportation and storage services. Political, litigation and financial risks may result in our fossil fuel producer customers restricting or canceling production activities, incurring liability for infrastructure and other damages as a result of climatic changes, or impairing their ability to continue to operate in an economic manner, which also could reduce demand for our services. Moreover, the increased competitiveness of alternative energy sources could reduce demand for hydrocarbons and for our services. Finally, we may also be subject to various physical risks from climate change. For more information on these physical risks, see our risk factor titled "Climatic conditions and events could adversely impact our operations, pipelines and facilities, or those of our customers or suppliers."

Increased attention to climate change, environmental, social and governance matters and conservation measures may adversely impact our business.

Increasing attention to climate change, societal expectations on companies to address climate change, investor and societal expectations regarding ESG matters and disclosures, and consumer demand for alternative forms of energy may result in increased costs, reduced demand for our services, reduced profits, increased investigations and litigation, and negative impacts on our access to capital markets. Increasing attention to climate change and environmental conservation, for example, may result in demand shifts for oil and natural gas products, ~~and~~ additional governmental investigations, ~~and~~ governmental and private litigation and other liabilities imposed against us or our customers. It is possible that such liability could be imposed without regard to our causation of or contribution to the asserted damage, or to other mitigating factors.

While we may publish voluntary disclosures regarding ESG matters from time to time, many of the statements in those disclosures may not be material and may be based on expectations and assumptions that may not be representative of actual risks or events or forecasts of expected risks or events. Such expectations and assumptions are necessarily uncertain and may be prone to error or subject to misinterpretation given the long timelines involved and the lack of an established single approach to identifying, measuring and reporting on many ESG matters.

Organizations that provide information to investors on corporate governance and related matters have developed ~~ratings~~rating processes for evaluating companies on their approach to ESG matters, and many of these rating processes are inconsistent with each other. Such ratings are used by some investors to inform their investment and voting decisions. Unfavorable ESG ratings and recent activism directed at shifting funding away from companies with energy-related assets could lead to increased negative investor sentiment toward us and our industry and to the diversion of investment to other industries, which could have a negative impact on our access to and costs of capital. ~~Institutional lenders may decide not to provide funding for fossil fuel energy companies based on climate-change related concerns, which could affect our access to capital.~~

In addition, other stakeholders, including customers, employees, regulators, credit rating agencies and suppliers, have also been focused on ESG matters. Companies that do not adapt to or comply with investor or other stakeholder expectations and standards, which are evolving, or that are perceived to have not responded appropriately to the growing concern regarding ESG issues, regardless of whether there is a legal requirement to do so, may suffer from reputational damage and other adverse consequences. Additionally, to the extent ESG matters negatively impact our reputation, we may not be able to compete as effectively to recruit or retain employees, which may adversely affect our operations.

15Public statements with respect to ESG matters, such as emissions reduction goals, other environmental targets, or other commitments addressing certain social issues, are becoming increasingly subject to heightened scrutiny from public and governmental authorities related to the risk of potential "greenwashing," i.e., misleading information or false claims overstating potential ESG benefits. Certain non-governmental organizations and other private actors have also filed lawsuits under various securities and consumer protection laws alleging that certain ESG-statements, goals, or standards were misleading, false, or otherwise deceptive. As a result, we may face increased litigation risks from private parties and governmental authorities related to our ESG efforts. In addition, any alleged claims of greenwashing against us or others in our industry may lead to further negative sentiment and diversion of investments. Additionally, we could face increasing costs as we attempt to comply with and navigate further ESG-related regulatory focus and scrutiny.

Public statements with respect to ESG matters, such as emissions reduction goals, other environmental targets, or other commitments addressing certain social issues, are becoming increasingly subject to heightened scrutiny from public and governmental authorities related to the risk of potential "greenwashing," i.e., misleading information or false claims overstating potential ESG benefits. For example, in March 2021, the SEC established the Climate and ESG Task Force in the Division of Enforcement to identify and address potential ESG-related misconduct, including greenwashing. Certain non-governmental organizations and other private actors have also filed lawsuits under various securities and consumer protection laws alleging that certain ESG-statements, goals, or standards were misleading, false, or otherwise deceptive. As a result, we may face increased litigation risks from private parties and governmental authorities related to our ESG efforts. In addition, any alleged claims of greenwashing against us or others in our industry may lead to further negative sentiment and diversion of investments. Additionally, we could face increasing costs as we attempt to comply with and navigate further ESG-related regulatory focus and scrutiny.

Climatic conditions and events could adversely impact our operations, pipelines and facilities, or those of our customers or suppliers.

Climatic events can cause disruptions to, delays in or suspension of our services, by interrupting our operations, causing loss of or damage to our facilities or equipment, or having similar impacts on our customers or third-party suppliers. In general, our operations could be significantly impacted by climatic conditions such as increased frequency and severity of storms, floods and wintry conditions. Our pipeline operations along coastal waters and offshore in the Gulf of Mexico could be adversely impacted by climatic conditions such as rising sea levels, subsidence and erosion, which could result in serious damage to our facilities and affect our ability to provide transportation services. Such damage could result in leakage, migration, releases or spills from our operations and could result in liability, remedial obligations or otherwise have a negative impact on operations. Such climactic conditions could also impact our customers' ability to utilize our services and third-party suppliers' ability to provide us with the products and services necessary to maintain operation of our facilities. We may incur significant damages as well as costs to repair or maintain our facilities, which could adversely affect our operations and the financial health of our business. In recent years, local governments and landowners in Louisiana have filed lawsuits against energy companies, alleging that their operations contributed to increased coastal rising seas and erosion and seeking substantial damages. Changing meteorological conditions, particularly temperature, may affect the amount, timing, or location of demand for energy or the products we transport, which may impact demand for our services.

adversely impacted by climatic conditions such as rising sea levels, subsidence and erosion, which could result in serious damage to our facilities and affect our ability to provide transportation services. Such damage could result in leakage, migration, releases or spills from our operations and could result in liability, remedial obligations or otherwise have a negative impact on operations. Such climatic conditions could also impact our customers' ability to utilize our services and third-party suppliers' ability to provide us with the products and services necessary to maintain operation of our facilities. We may incur significant damages as well as costs to repair or maintain our facilities, which could adversely affect our operations and the financial health of our business. In recent years, local governments and landowners in Louisiana have filed lawsuits against energy companies, alleging that their operations contributed to increased coastal rising seas and erosion and seeking substantial damages. Changing meteorological conditions, particularly temperature, may affect the amount, timing, or location of demand for energy or the products we transport, which may impact demand for our services.

We are subject to reputational risks and risks related to public opinion.

Our business, operations and financial condition may be adversely impacted as a result of negative public opinion. We operate in an industry ~~which~~that receives negative portrayals and opposition to development projects. Our reputation and public opinion could be impacted by the actions, activities and responses of other companies operating in the energy industry, particularly other energy infrastructure providers, over which we have no control. Our reputation ~~also~~ could also be impacted by negative publicity related to pipeline incidents, unpopular expansion projects and opposition to the development of hydrocarbons and energy infrastructure, particularly projects involving resources that are considered to increase GHG emissions and contribute to climate change. Negative impacts from a compromised reputation or changes in public opinion (including with respect to the production, transportation and use of hydrocarbons generally) could include increased regulatory oversight, delays in obtaining, or challenges to, regulatory approvals with respect to growth projects, blockades, project cancellations, difficulty securing financing at reasonable terms, revenue loss or a reduction in customer base.

Failure to comply with environmental or worker safety laws and regulations or an accidental release of pollutants into the environment may cause us to incur significant costs and liabilities.

Our operations are subject to extensive federal, state, and local laws and regulations relating to protection of the environment and occupational health and safety. Such laws and regulations impose, among other things, restrictions, liabilities and obligations in connection with the generation, handling, use, storage, transportation, treatment and disposal of various substances, including hazardous substances and waste, and in connection with spills, releases, discharges and emissions of various substances into the environment. These laws include, for example, the CAA, the Clean Water Act, CERCLA, the RCRA, ESA, NEPA, OSHA and analogous state laws. These laws and regulations may restrict or impact our business activities, including requiring the acquisition or renewal of permits or other approvals to conduct regulated activities, restricting the manner in which we handle or dispose of wastes, imposing remedial obligations to remove or mitigate contamination resulting from a spill or other release, requiring capital expenditures to comply with pollution control requirements and imposing safety and health criteria addressing worker protection. Failure to comply with these laws and regulations may trigger a variety of administrative, civil and criminal enforcement measures, including the assessment of monetary penalties, the imposition of remedial requirements, the incurrence of capital expenditures, the occurrence of delays, denials or cancellations in the permitting or performance or expansion of projects and the issuance of orders enjoining future operations in a particular area. Under certain of these environmental laws and regulations, we could be subject to joint and several strict liability for the removal or remediation of previously released pollutants or property contamination, regardless of whether we were responsible for the release or contamination or if our operations were not in compliance with applicable laws. We may not be able to recover some or any of the costs incurred from insurance.

16Stricter environmental or worker safety laws, regulations or enforcement policies could significantly increase our operational or compliance costs and compliance with new or more stringent environmental legal requirements could delay or prohibit our ability to obtain permits for operations or require us to install additional pollution control equipment. For instance, the construction or expansion of pipelines often requires authorizations under the Clean Water Act, which may be subject to challenge. There is ongoing litigation with respect to the status and use of the Corps' Clean Water Act Section 404 NWP 12, which was issued in January 2021 and subsequently challenged by various environmental groups. We rely on NWP 12, alongside other NWPs, as blanket authority for construction, maintenance, repair and removal of pipelines. If NWP 12 is amended or revoked, we may be required to apply for one or more Individual Permits, which would require additional time and resources to obtain. The NWP process relies upon the Clean Water Act Section 401 certification process, which is also subject to ongoing litigation. In September 2023, the EPA finalized its Clean Water Act Section 401 Water Quality Certification Improvement Rule, effective in November 2023, which expanded the scope of certification authority. While the litigation is ongoing and the full extent and impact of these actions are unclear, any disruption in our ability to obtain coverage under NWP 12 or other permits may result in increased costs and project delays if we are forced to seek individual permits from the Corps. There also continues to be uncertainty with respect to the federal government's jurisdictional reach under the Clean Water Act

the permitting or performance or expansion of projects and the issuance of orders enjoining future operations in a particular area. Under certain of these environmental laws and regulations, we could be subject to joint and several strict liability for the removal or remediation of previously released pollutants or property contamination regardless of whether we were responsible for the release or contamination or if our operations were not in compliance with applicable laws. We may not be able to recover some or any of the costs incurred from insurance.

Stricter environmental or worker safety laws, regulations or enforcement policies could significantly increase our operational or compliance costs and compliance with new or more stringent environmental legal requirements could delay or prohibit our ability to obtain permits for operations or require us to install additional pollution control equipment. For instance, the construction or expansion of pipelines often requires authorizations under the Clean Water Act, which authorizations may be subject to challenge. For instance, there is ongoing litigation with respect to the status and use of the Corps Clean Water Act Section 404 NWP 12, which was vacated in April 2020. In January 2021, the Corps reissued a restructured NWP 12 for oil and natural gas pipeline activities. In March 2022, the Corps announced it was seeking stakeholder input on a formal review of NWP 12, although while this review is ongoing, the Corps has resumed permitting decisions. NWP 12, alongside other NWPs, relies upon the Clean Water Act Section 401 certification process. The Supreme Court stayed the vacatur of Section 404 of NWP 12 and, in September 2023, the EPA finalized its Clean Water Act Section 401 Water Quality Certification Improvement Rule, effective on November 27, 2023. While the full extent and impact of these actions is unclear at this time, any disruption in our ability to obtain coverage under NWP 12 or other permits may result in increased costs and project delays if we are forced to seek individual permits from the Corps. There also continues to be uncertainty with respect to the federal government's jurisdictional reach under the Clean Water Act over "waters of the United States," including wetlands, as the EPA and the Corps have pursued multiple rulemakings under different administrations since 2015 in an attempt to determine the scope of such reach. In December 2022, the Biden Administration finalized a new and more expansive definition of "waters of the United States," which repealed the Trump Administration's April 2020 rule and largely restored the definition in place prior to 2015, with modifications reflecting Supreme Court decisions issued after 2015. In January 2023, the EPA and the Corps released a final revised definition of "waters of the United States" founded upon the pre-2015 regulations. Judicial developments also add to this uncertainty. The Supreme Court opinion in Sackett v. EPA invalidated certain parts of the January 2023 rule, resulting in a revised rule being issued in September 2023. However, due to the injunction in certain states, the implementation of the September 2023 rule currently varies by state. See Part I, Item 1. Business—Government Regulation—Other of this Annual Report on Form 10-K for further discussion on environmental matters.

Legislative and regulatory initiatives relating to new or more stringent pipeline safety requirements or substantial changes to existing integrity management programs or withdrawal of regulatory waivers could subject us to increased capital and operating costs and operational delays.

Our interstate pipelines are subject to regulation by PHMSA, which is part of the DOT. PHMSA regulates the design, installation, testing, construction, operation and maintenance of existing interstate natural gas and NGLs pipeline facilities. PHMSA regulation currently requires pipeline operators to implement integrity management programs, including frequent inspections, remediation of certain identified anomalies and other measures to promote pipeline safety in HCAs, MCAs, Class 1 and 2 areas (depending on the potential impacts of a risk event), Class 3 and Class 4 areas, as well as in areas unusually sensitive to environmental damage and commercially navigable waterways. PHMSA has revised its standards from time-to-time. In October 2019, PHMSA published a final rule imposing numerous new requirements, also known as the Mega Rule, on onshore gas transmission pipelines relating to MAOP reconfirmation and exceedance reporting, the integrity assessment of additional pipeline mileage found in MCAs and Class 3 and Class 4 non-HCAs by 2033, and the consideration of seismicity as a risk factor in integrity management. PHMSA published a second final rule in October 2019 for hazardous liquid transmission and gathering pipelines that significantly extends and expands the reach of certain of its integrity management requirements, and that requires the accommodation of in-line inspection tools by 2039 unless the pipeline cannot be modified to permit such accommodation, increased annual, accident and safety-related conditional reporting requirements, and expanded use of leak detection systems beyond HCAs. Certain aspects of that rule are currently in court review. PHMSA also published final rules during February and July 2020 that amended the minimum safety requirements related to natural gas storage facilities, including wells, wellbore tubing and casing, and added applicable reporting requirements. In June 2021, PHMSA issued an Advisory Bulletin advising pipeline and pipeline facility operators of applicable requirements to update their inspection and maintenance plans for the elimination of hazardous leaks and minimization of natural gas released from pipeline facilities. PHMSA and state regulators reportedly began their review of these plans in 2022, and in May 2023, PHMSA published a proposed rule that would enhance requirements for detecting and repairing leaks on new and existing natural gas distribution, gas transmission, and gas gathering pipelines. In August 2022, PHMSA published another final rule expanding the Management of Change process, extending corrosion control requirements for gas transmission pipelines, adding requirements that operators ensure no conditions exist following an extreme weather event that could adversely affect the safe operation of the pipeline, and adopting repair criteria for non-HCAs similar to those applicable to HCAs. In September 2023, PHMSA published a proposed rule that would enhance the safety requirements for gas distribution pipelines and require updates to

~~distribution~~over ~~integrity~~WOTUS, ~~management~~as ~~programs,~~the ~~emergency~~EPA ~~response~~and ~~plans,~~the ~~operations~~Corps ~~and~~have ~~maintenance~~pursued ~~manuals,~~multiple ~~and~~rulemakings ~~other~~under ~~safety~~different ~~practices.~~administrations ~~These~~since ~~new~~2015 ~~and~~to ~~any~~determine ~~future~~the ~~regulations~~scope ~~adopted~~of bysuch ~~PHMSA~~reach. ~~have~~Most ~~imposed~~recently, ~~and~~in ~~may~~September ~~impose~~2023, ~~more~~the ~~stringent~~EPA ~~requirements~~issued ~~applicable~~a version of the WOTUS rule that, due to ~~integrity~~injunctions ~~management~~in ~~programs~~certain ~~and~~states, ~~other~~is ~~pipeline~~being ~~safety~~implemented ~~aspects~~in ofonly ~~our~~24 ~~operations~~states. Thus, ~~which~~the isoperative ~~expected~~definition toof ~~cause~~WOTUS usvaries toby ~~incur~~state. ~~increased~~We ~~capital~~cannot ~~and~~predict ~~operating~~what ~~costs~~actions, if any, or the timing of any such actions the Trump Administration may ~~cause~~take uswith respect to ~~experience~~these ~~operational~~regulations. ~~delays~~See ~~and~~Part ~~may~~I, ~~result~~Item in1. ~~potential~~Business—Government ~~adverse~~Regulation—Other ~~impacts~~of tothis ~~our~~Annual ~~ability~~Report toon ~~reliably~~Form ~~serve~~10-K ~~our~~for ~~customers~~further discussion on environmental matters.

~~States~~Legislative ~~have jurisdiction over certain of our intrastate pipelines~~ and ~~have~~regulatory ~~adopted~~initiatives ~~regulations~~relating ~~similar~~ to existing PHMSA regulations. State regulations may impose more stringent requirements than found under federal law that affect our intrastate operations. Compliance with these rules over time generally has resulted in an overall increase in our maintenance costs. The imposition of new or more stringent pipeline safety ~~rules~~requirements ~~applicable to natural gas~~ or ~~NGL~~substantial ~~pipelines,~~changes ~~or any issuance or reinterpretation of guidance from PHMSA or any state agencies, could cause us~~ to ~~install~~existing ~~new~~integrity ormanagement ~~modified safety controls, pursue additional capital projects or conduct maintenance~~ programs ~~on an accelerated basis, any~~ or ~~all~~withdrawal of ~~which~~regulatory waivers could ~~result~~subject in us ~~incurring~~to increased capital and operating costs, ~~experiencing~~and operational delays ~~and suffering potential adverse impacts to our operations or our ability to reliably serve our customers~~. Requirements that are imposed under the 2011 Act, the 2016 Act, the 2020 Act or other pipeline safety legislation or implementing regulations, may also increase our capital and operating costs or impact the operation of our pipelines. See Part I, Item 1. Business—Government Regulation—U.S. Department of Transportation of this Annual Report on Form 10-K for further discussion on pipeline safety matters.

WeOur ~~have~~interstate ~~entered~~pipelines ~~into~~are ~~certain~~subject ~~firm~~to ~~transportation~~regulation ~~contracts~~by ~~with~~PHMSA, ~~shippers~~which ~~that~~is ~~utilize~~part of the DOT. PHMSA regulates the design, ~~capacity~~installation, testing, construction, operation and maintenance of ~~certain~~existing interstate natural gas and NGLs pipeline facilities. PHMSA regulation currently requires pipeline operators to implement integrity management programs, including frequent inspections, remediation of ~~our~~certain identified anomalies and other measures to promote pipeline ~~assets~~safety in HCAs, ~~based~~MCAs, ~~upon~~Class 1 and 2 areas (depending on the ~~authority~~potential weimpacts ~~received~~of ~~from~~a risk event), Class 3 and Class 4 areas, as well as in areas unusually sensitive to environmental damage and commercially navigable waterways. PHMSA has revised its standards from time to ~~operate~~time ~~those~~and recently issued a series of significant rulemakings for onshore gas distribution, transmission and gathering pipelines at(e.g., ~~higher~~relating ~~than~~to ~~normal~~MAOP ~~operating~~reconfirmation ~~pressures~~and exceedance reporting, the integrity assessment of upadditional topipeline ~~0.80~~mileage and the consideration of seismicity as a risk factor in integrity management), and hazardous liquid transmission and gathering pipelines (e.g., expanding the ~~pipeline~~reach of certain of PHMSA's ~~SMYS~~integrity ~~under~~management ~~issued~~requirements, ~~permits~~requiring ~~with~~the ~~specific~~accommodation ~~conditions~~of in-line inspection tools by 2039 for certain pipelines, increasing annual, accident and safety-related conditional reporting requirements, and expanding the use of leak detection systems beyond HCAs). PHMSA ~~retains~~also ~~discretion~~regulates safety requirements applicable to ~~withdraw~~natural orgas ~~modify~~storage ~~this~~facilities, ~~authority~~including wells, wellbore tubing and casing. IfIn August 2022, PHMSA ~~were~~published a final rule that attempted to ~~withdraw~~expand orthe ~~materially~~Management ~~modify~~of ~~such~~Change ~~authority,~~process itand corrosion control requirements for gas transmission pipelines and add requirements that operators ensure no conditions exist following an extreme weather event that could adversely affect ~~our~~the ~~ability~~safe tooperation ~~transport~~of ~~all~~the pipeline and repair criteria for non-HCAs. Five safety standards included in that rule were challenged by industry trade groups, and in August 2024, the U.S. Court of ~~our~~Appeals ~~contracted~~for ~~quantities~~the D.C. Circuit struck down four of ~~natural~~the five challenged safety standards. In September 2023, PHMSA published a proposed rule that, if finalized, would enhance the safety requirements for gas ondistribution ~~these~~pipelines ~~pipeline~~and ~~assets~~require updates to distribution integrity management programs, emergency response plans, operations and wemaintenance ~~could~~manuals and other safety practices. These new and any future regulations adopted by PHMSA have imposed and may impose more stringent requirements applicable to integrity management programs and other pipeline safety aspects of our operations, which is expected to cause us to incur ~~significant~~increased ~~additional~~capital and operating costs, may cause us to ~~reinstate~~experience ~~this~~operational ~~authority~~delays orand tomay ~~develop~~result ~~alternate~~in ~~ways~~potential adverse impacts to ~~meet~~our operations or our ~~contractual~~ability ~~obligations~~to reliably serve our customers.

~~Our~~States ~~actual~~have ~~construction~~jurisdiction over certain of our intrastate pipelines and ~~development~~have ~~costs~~adopted ~~could~~regulations ~~exceed~~similar to existing PHMSA regulations. State regulations may impose more stringent requirements than those found under federal law that affect our ~~forecasts;~~intrastate operations. Compliance with these rules over time generally has resulted in an overall increase in our ~~anticipated~~maintenance ~~cash~~costs. ~~flow~~The imposition of new or more stringent pipeline safety rules applicable to natural gas or NGLs pipelines, or any issuance or reinterpretation of guidance from ~~construction~~PHMSA ~~and~~or ~~development~~any state agencies, could cause us to install new or modified safety controls, pursue additional capital projects ~~will~~or ~~not~~conduct bemaintenance ~~immediate;~~programs on an accelerated basis, any or all of which could result in us incurring increased capital and ~~our~~operating ~~construction~~costs, experiencing operational delays and ~~development~~suffering ~~projects~~potential adverse impacts to our operations or our ability to reliably serve our customers. Requirements that are imposed under the 2011 Act, the 2016 Act, the 2020 Act or other pipeline safety legislation or implementing regulations may ~~not~~also beincrease ~~completed~~our oncapital ~~time~~and operating costs or atimpact ~~all~~the operation of our pipelines. See Part I, Item 1. Business—Government Regulation—U.S. Department of Transportation of this Annual Report on Form 10-K for further discussion on pipeline safety matters.

We ~~are and~~ have ~~been~~entered ~~engaged~~into incertain ~~several~~firm ~~construction~~transportation ~~projects~~contracts ~~involving~~with ~~our~~shippers ~~existing~~that ~~assets~~utilize ~~and~~ the ~~construction~~design ofcapacity ~~new facilities for which we have expended or will expend significant capital. We expect to continue to engage in the construction~~ of ~~additional~~certain ~~growth projects and modifications~~ of our ~~system. When we build a new~~ pipeline orassets, ~~expand~~based orupon ~~modify an existing facility,~~ the ~~design,~~authority ~~construction and development occurs over an extended period of time, and~~ we ~~will~~received ~~not receive any revenue or cash flow~~ from ~~that~~PHMSA ~~project~~to ~~until~~operate ~~after~~those ~~it is placed into commercial service. On our interstate~~ pipelines, ~~there~~at ~~are~~higher ~~several~~than ~~years~~normal ~~between~~operating ~~when~~pressures ~~the~~of ~~project~~up isto ~~announced and when customers begin using the new facilities~~0.80 ~~During this period we spend capital and incur costs without receiving any~~ of the ~~financial~~pipeline's ~~benefits~~SMYS ~~associated~~under issued permits with ~~the~~specific ~~projects~~conditions. ~~The~~PHMSA ~~construction~~retains ofdiscretion ~~new~~to ~~assets~~withdraw ~~involves~~or ~~regulatory~~modify ~~(federal,~~this ~~state,~~authority. ~~and~~If ~~local),~~PHMSA ~~landowner~~were ~~opposition,~~to ~~environmental,~~withdraw ~~activist,~~or ~~legal,~~materially ~~political,~~modify ~~materials~~such ~~and labor costs~~authority, asit ~~well~~could asaffect ~~operational~~our ~~and~~ability ~~other risks that are difficult~~ to ~~predict~~transport ~~and~~all ~~some~~of ~~are beyond~~ our ~~control.~~contracted Aquantities ~~project~~of ~~may~~natural ~~not~~gas ~~be completed~~ on ~~time~~these orpipeline ~~at all due to a variety of factors~~assets, ~~may~~and bewe ~~impacted~~could byincur significant ~~cost~~additional ~~overruns~~costs ~~or may be materially changed prior~~ to ~~completion~~reinstate asthis aauthority ~~result of developments~~ or ~~circumstances that we are not aware of when we commit~~ to ~~the~~develop ~~project.~~alternate ~~Any~~ways ~~of these events could result in material unexpected costs or have a material adverse effect on our ability~~ to ~~realize~~meet ~~the anticipated benefits from~~ our ~~growth~~contractual ~~projects~~obligations.

A failure in our computer systems or a cybersecurity attack on any of our computer systems, devices or telecommunications networks or those of certain third parties, could cause substantial damage and may materially adversely affect our cash flows, financial condition and ability to operate our business.

Our business is dependent upon our computer systems, devices and networks (operational and information technology) to collect, process and store the data necessary to conduct almost all aspects of our business, including the operation of our pipeline and storage facilities and the recording and reporting of commercial and financial information. A failure or security breach impacting our operational or information technology, or that of certain of our third-party vendors or others with whom we do business, could negatively affect our ability to safely and reliably operate our assets, resulting in delays in providing services for our customers, contamination or degradation of the products we transport and store, damage to or destruction of our or third-party facilities, catastrophic events, injury or death to our employees or third parties, the inadvertent release of hydrocarbons or the release of confidential information, which could result in reduced revenue or unexpected costs. Despite our security measures, the information and operational technology and infrastructure we rely on may be vulnerable to attacks by third parties, such as hackers, cybercriminals, nation-states, insiders or other third parties, or breached due to human error, malfeasance or other disruptions. Any failure of our computer systems, or those of our customers, suppliers or others with whom we do business, could materially disrupt our ability to operate our business. In addition, access, disclosure or other loss

ofOur ~~information~~actual orconstruction ~~other~~and ~~consequences~~development costs could ~~result~~exceed inour ~~legal~~forecasts; ~~claims~~our oranticipated ~~proceedings,~~cash ~~liability~~flow ~~under~~from ~~laws~~construction ~~that~~and ~~protect~~development ~~the~~projects ~~privacy~~will ofnot ~~personal~~be ~~information~~immediate orand ~~personally~~can ~~identifiable~~take ~~information,~~several ~~regulatory~~years; ~~penalties for divulging protected information, disruption of our operations, incident response~~ and ~~remediation costs, damage to~~ our ~~reputation,~~construction and ~~loss~~development ofprojects ~~confidence~~may innot ~~our~~be ~~services,~~completed ~~any~~on time or ~~all~~at ~~of which could adversely affect our business~~all.

~~Cybersecurity~~We ~~threat~~are ~~actors~~and have ~~attacked~~been engaged in several construction projects involving our existing assets and the construction of new facilities for which we have expended or will expend significant capital. We expect to continue to ~~threaten~~engage ~~energy~~in ~~infrastructure.~~the ~~The~~construction Uof additional growth projects and modifications of our system.S. ~~government~~When ~~has~~we ~~issued~~build ~~public~~a new pipeline or expand or modify an existing facility, the design, construction and ~~industry-directed~~development ~~warnings~~occurs ~~that~~over ~~indicate~~an extended period of time, and we will not receive any revenue or cash flow from that ~~energy~~project ~~assets~~until ~~might~~after beit ~~specific~~is ~~targets~~placed ofinto ~~cybersecurity~~commercial ~~attacks~~service. On our interstate pipelines, ~~which~~there are ~~increasing~~several inyears ~~sophistication,~~between ~~magnitude~~when the project is announced and ~~frequency~~when customers begin using the new facilities. ~~Our~~During ~~technologies~~this period, ~~systems~~we ~~and~~spend ~~networks,~~capital and ~~those~~incur ofcosts ~~our~~without ~~vendors,~~receiving ~~suppliers~~any ~~and~~of ~~other~~the ~~business~~financial ~~partners,~~benefits ~~may~~associated ~~become~~with the ~~target~~projects. The construction of ~~cybersecurity~~new ~~attacks~~assets orinvolves ~~information~~a ~~security~~number ~~breaches~~of ~~that~~risks, ~~could~~including ~~result~~risks inrelated ~~the~~to ~~unauthorized~~regulations ~~release~~(federal, ~~gathering~~state, ~~monitoring~~and local), ~~misuse~~landowner opposition, ~~corruption~~environmental matters, ~~manipulation~~activists, ~~loss~~legal orcompliance, ~~destruction~~political ofmatters ~~proprietary~~and materials and ~~other~~labor ~~information~~costs, ~~significant~~as ~~damage~~well as operational and other risks that are difficult to ~~property~~predict and some of which are beyond our control. Additionally, ~~personal~~the ~~injury~~possibility of implementing trade tariffs under the Trump Administration could impact some of our pricing and availability of materials with some of our suppliers. A project may not be completed on time or ~~loss~~at all due to a variety of ~~life~~factors, ~~substantial~~may ~~financial~~be ~~damage~~impacted by significant cost overruns or ~~other~~may ~~disruption~~be materially changed prior to completion as a result of ~~operations~~developments or circumstances that we are not aware of when we commit to the project. Any of these events could result in material, unexpected costs or have a material adverse effect on our ability to realize the anticipated benefits from our growth projects.

~~Any~~A ~~investigation~~failure ofin aour ~~cybersecurity~~computer ~~attack~~systems or ~~other~~a ~~security~~cybersecurity ~~incident~~attack ~~may~~on ~~be inherently unpredictable and complex, and it may take significant time before the completion of~~ any ~~investigation and availability~~ of ~~full~~our ~~and~~computer ~~reliable information. During such time~~systems, wedevices ~~may~~or ~~not~~telecommunications ~~know~~networks ~~the~~or ~~extent~~those of ~~the harm or how best to remediate it, and~~ certain ~~errors~~third orparties ~~actions~~ could because ~~repeated~~substantial ~~or compounded before they are discovered~~ and ~~remediated,~~catastrophic ~~all~~damage ~~or any of which could further increase the costs~~ and ~~consequences of a cybersecurity attack or other security incident, and our remediation efforts~~ may ~~not be successful. The inability to implement, maintain and upgrade adequate safeguards could~~ materially ~~and~~ adversely affect our ~~results of operations,~~ cash flows, ~~and~~ financial condition. ~~As the cybersecurity threat landscape continues to evolve, we may be required to expend significant additional resources to continue to modify or enhance our protective measures or to investigate~~ and remediate any information security vulnerabilities. Advances in computer capabilities, discoveries in the field of artificial intelligence, cryptography, inadequate facility security or other developments may result in a compromise or breach of the technology we use to safeguard confidential, personal, or otherwise protected information. As the breadth and complexity of the technologies we use continue to grow, including as a result of the use of mobile devices, cloud services, open-source software, social media and the increased reliance on devices connected to the internet, the potential risk of cyberattacks and cybersecurity incidents also increases. No security measure is infallible. Despite ongoing efforts to improve our ability to ~~protect~~operate our ~~systems from compromise, we may not be able to protect all of our diverse systems~~business. ~~Our efforts to improve security and protect data and our systems may also identify previously undiscovered instances of security breaches or other cyber incidents.~~

~~TSA~~Our ~~has~~business ~~issued~~is adependent ~~series~~upon ofour ~~security~~computer ~~directives~~systems, ~~applicable~~devices toand ~~pipeline~~networks ~~owners~~(operational and ~~operators~~information ~~which~~technology), ~~require~~and ~~implementation~~those of aour ~~variety~~customers, ofsuppliers ~~cybersecurity measures~~ and ~~reporting.~~others ~~Other~~with ~~regulators,~~whom ~~such~~we asdo ~~PHMSA~~business, ~~and~~to ~~the SEC~~collect, ~~have~~process ~~also~~and ~~established~~store ~~requirements~~the ~~for~~data ~~reporting~~necessary ~~cybersecurity~~to ~~incidents.~~conduct Asalmost ~~cybersecurity~~all ~~incidents~~aspects ~~continue~~of toour ~~evolve~~business, ~~more~~including ~~legislation~~the ~~could~~operation beof ~~enacted~~our topipeline ~~mitigate~~and ~~cybersecurity~~storage ~~threats.~~facilities ~~This~~and ~~will~~the ~~require~~recording usand toreporting ~~expend~~of ~~additional~~commercial ~~resources~~and tofinancial ~~continue~~information. toDespite ~~modify or enhance~~ our ~~protective~~security measures, orthe toinformation ~~investigate~~ and ~~remediate~~operational ~~vulnerabilities~~technology toand ~~cybersecurity~~infrastructure ~~incidents~~we atrely ~~significantly~~on ~~increased costs. Our insurance coverage for cybersecurity attacks~~ may ~~not~~ be ~~sufficient~~vulnerable to ~~cover~~attacks ~~all~~by ~~the~~third ~~losses~~parties, orsuch ~~expenses we may experience or incur~~ as ahackers, ~~result~~cybercriminals, ofnation-states, ~~any~~insiders ~~cybersecurity~~or ~~attacks.~~other ~~Any~~third ~~cybersecurity attacks that affect our facilities or systems~~parties, or ~~those~~breached ofdue ~~our~~to ~~customers~~human error, ~~suppliers~~malfeasance or ~~others~~other ~~with~~disruptions. ~~whom~~Through wegovernment dointelligence ~~business~~reports, ~~could~~we ~~have~~are aaware ~~material~~of ~~adverse~~credible ~~effect~~global onthreats ~~our~~to ~~business~~third-party, ~~cause us a material financial loss and materially damage our reputation~~U.S. Wecritical ~~cannot~~infrastructure ~~predict~~sectors ~~the~~on ~~potential~~which ~~impact~~we ~~to our business of potential future legislation~~depend, ~~regulations~~such oras ~~orders~~the ~~relating~~telecommunications ~~to cybersecurity~~sector.

WeCybersecurity ~~may~~threat ~~face~~actors ~~opposition~~have attacked and continue to ~~the~~threaten ~~operation~~energy ofinfrastructure. ~~our~~The ~~pipelines~~U.S. government has issued public and ~~facilities,~~industry-directed ~~construction~~warnings orthat ~~expansion~~indicate that energy assets might be specific targets of ~~facilities~~cybersecurity attacks, which are increasing in sophistication, magnitude and ~~new~~frequency. ~~pipeline~~Vulnerabilities ~~projects~~in ~~from~~one ~~various~~environment ~~groups~~may affect other interconnected systems. A cybersecurity incident that impacts a third party with whom we do business may impact us.

WeSome ~~may~~cyber ~~face opposition to the operation of our pipelines and facilities~~incidents, ~~construction~~such oras ~~expansion of our facilities and new pipeline projects from governmental officials~~surveillance, ~~environmental~~may ~~groups,~~go ~~landowners,~~unnoticed ~~communities,~~for ~~tribal~~a orlong ~~local~~period ~~groups~~of ~~and other advocates~~time. ~~Such~~Any ~~opposition~~investigation ~~could~~of ~~take~~a ~~many~~cybersecurity ~~forms,~~attack ~~including organized protests, attempts to block~~ or ~~sabotage~~other ~~our~~security ~~operations,~~incident ~~acts~~will ofbe ~~eco-terrorism,~~inherently ~~intervention~~unpredictable inand ~~regulatory or administrative proceedings involving our assets~~complex, orand ~~lawsuits~~it ormay ~~other~~take ~~actions~~significant ~~designed~~time tobefore ~~prevent, disrupt or delay~~ the ~~operation~~completion of ~~our~~any ~~assets~~investigation and ~~business.~~availability ~~For~~of ~~example,~~full ~~repairing~~and ~~our~~reliable ~~pipelines~~information. ~~often~~During ~~involves~~such ~~securing~~time, ~~consent~~we ~~from~~may ~~individual~~not ~~landowners~~know tothe ~~access~~extent ~~their~~of ~~property;~~the ~~one~~harm or ~~more~~how ~~landowners~~best ~~may~~to ~~resist~~remediate ~~our~~it, ~~efforts~~and tocertain ~~make~~errors ~~needed~~or ~~repairs,~~actions ~~which~~ could ~~lead~~be torepeated anor ~~interruption~~compounded inbefore ~~the~~they ~~operation~~are ofdiscovered ~~the~~and ~~affected~~remediated, ~~pipeline~~any or ~~facility~~all ~~for a period~~ of ~~time~~which ~~that~~could isfurther ~~significantly~~increase ~~longer than would have otherwise been~~ the ~~case.~~costs ~~Acts~~and consequences of ~~sabotage~~a orcybersecurity ~~eco-terrorism~~attack ~~could cause significant damage~~ or ~~injury~~other orsecurity ~~death to people~~incident, ~~property or the environment~~ and ~~lead to extended interruptions of~~ our ~~operations~~remediation ~~and~~efforts ~~material~~may ~~damages~~not ~~and~~be ~~costs~~successful.

As the cybersecurity threat landscape continues to evolve, we may be required to expend significant additional resources to continue to modify or enhance our protective measures or to investigate and remediate any information security vulnerabilities. Advances in computer capabilities, discoveries in the field of artificial intelligence, cryptography, inadequate facility security or other developments may result in a compromise or breach of the technology we use to safeguard our operational and information technology systems and confidential, personal, or otherwise protected information. As the breadth and complexity of the technologies we use continue to grow, including as a result of the use of mobile devices, cloud services, artificial intelligence, open-source software, social media and the increased reliance on devices connected to the internet, the potential risk of cyberattacks and cybersecurity incidents also increases. No security measure is infallible. Despite ongoing efforts to improve our ability to protect our systems from compromise, we may not be able to protect all of our diverse systems. Our efforts to improve security and protect data and our systems may also identify previously undiscovered instances of security breaches or other cyber incidents.

TSA has issued a series of security directives applicable to pipeline owners and operators, which require the implementation of a variety of cybersecurity measures and reporting. Other regulators, such as PHMSA and the SEC, have also

~~Market~~established ~~conditions~~requirements for reporting certain cybersecurity incidents. As cybersecurity incidents continue to evolve, ~~including~~more ~~the~~legislation ~~price~~could ~~differentials~~be ~~between~~enacted ~~natural~~to ~~gas~~seek ~~supplies~~to mitigate cybersecurity threats. This may require us to expend additional resources to continue to modify or enhance our protective measures or to investigate and ~~market~~remediate ~~demand~~vulnerabilities ~~for~~to ~~natural~~cybersecurity ~~gas,~~incidents ~~may~~at ~~reduce~~significantly ~~the~~increased ~~transportation~~costs. ~~rates~~We ~~that~~cannot wepredict ~~can~~the ~~charge~~potential onimpact ~~certain~~to ~~portions~~our business of ~~our~~potential ~~pipeline~~future ~~systems~~legislation, regulations or orders relating to cybersecurity.

~~Each~~A ~~year~~failure, asecurity ~~portion~~breach, ofdisruption ~~our~~or ~~firm~~degradation ~~natural~~impacting ~~gas~~our ~~transportation~~operational ~~contracts~~or ~~expire~~information ~~and~~technology ~~need~~systems toor bethose ~~replaced~~of orthird ~~renewed.~~parties Aswith awhom ~~result~~we ofdo ~~market~~business ~~conditions,~~could wenegatively ~~may~~affect ~~renew~~our ~~some~~ability ~~expiring~~to ~~contracts~~safely atand ~~lower~~reliably ~~rates~~operate orour ~~for~~assets ~~shorter~~and/or ~~terms~~result ~~than~~in delays in ~~the~~providing ~~past.~~services ~~The~~for ~~transportation~~our ~~rates~~customers, wecontamination ~~are~~or ~~able~~degradation toof ~~charge~~the ~~customers~~products ~~are~~we ~~heavily~~transport ~~influenced~~and bystore, ~~market~~damage ~~trends~~to ~~(both~~or ~~short~~destruction ~~and~~of ~~longer~~our ~~term)~~or third-party pipelines, ~~including~~property ~~the~~or ~~available~~facilities, ~~supply~~catastrophic events, ~~geographical~~injury ~~location~~or ofdeath ~~natural~~to ~~gas~~our ~~production~~employees or other persons, the ~~competition~~inadvertent ~~between~~release ~~producing~~of ~~basins~~hydrocarbons or the release or destruction of confidential, ~~competition~~proprietary ~~with~~or ~~other~~business-critical ~~pipelines~~information ~~for~~or ~~supply~~intellectual ~~and~~property, ~~markets~~which could result in outages, ~~the~~reduced ~~demand~~revenue, ~~for~~unexpected ~~gas~~costs byand ~~end-users~~expenses, ~~such~~litigation asand ~~power~~reputational ~~plants~~damage, ~~petrochemical~~any ~~facilities~~or ~~and~~all ~~LNG~~of ~~export~~which ~~facilities~~may be irreversible and ~~the~~may ~~price~~materially ~~differentials~~adversely ~~between~~affect ~~the~~our ~~gas~~results ~~supplies~~of ~~and~~operations, ~~the~~cash ~~market~~flows, ~~demand~~financial ~~for~~condition ~~the~~and ~~gas~~ability ~~(basis~~to ~~differentials)~~operate our business.

In addition, access, disclosure or other loss of information or other consequences could result in legal claims or proceedings, liability under laws that protect the privacy of personal information or personally identifiable information, regulatory penalties for divulging or failing to adequately protect such information, disruption of our operations, incident response and remediation costs, damage to our reputation, and loss of confidence in our services.

We may face opposition to the operation of our pipelines and facilities, construction or expansion of facilities and new pipeline projects from various groups.

We may face opposition to the operation of our pipelines and facilities, construction or expansion of our facilities and new pipeline projects from governmental officials, environmental groups, landowners, communities, tribal or local groups and other advocates. Such opposition could take many forms, including organized protests, attempts to block or sabotage our operations, acts of eco-terrorism, intervention in regulatory or administrative proceedings involving our assets, or lawsuits or other actions designed to prevent, disrupt or delay the operation of our assets and business. For example, repairing our pipelines often involves securing consent from individual landowners to access their property, and one or more landowners may resist our efforts to make needed repairs, which could lead to an interruption in the operation of the affected pipeline or facility for a period of time that is significantly longer than would have otherwise been the case. Acts of sabotage or eco-terrorism could cause significant damage or injury or death to people, property or the environment and lead to extended interruptions of our operations and material damages and costs.

Market conditions, including available supply, demand and the price differentials between natural gas supplies and market locations for natural gas, may affect the transportation rates that we can charge on certain portions of our pipeline systems.

Each year, a portion of our firm natural gas transportation contracts expire and need to be replaced or renewed. As a result of market conditions, we may renew some expiring contracts at lower rates or for shorter terms than in the past. The transportation rates we are able to charge customers are heavily influenced by market trends (both short and longer term), including the continued availability of supply from key supply basins, the competition between producing basins, competition with other pipelines for supply and markets, the demand for gas by end-users such as electric power generators, petrochemical facilities and LNG export facilities and the price differentials between the gas supplies and the market demand for the gas (basis differentials).

Changes in energy prices, including natural gas, oil and NGLs, impact the supply of and demand for those commodities, which impact our business.

Our customers, especially producers and certain plant operators, are directly impacted by changes in commodity prices. The prices of natural gas, oil and NGLs fluctuate in response to changes in both domestic and worldwide supply and demand, market uncertainty and a variety of additional factors, including for natural gas, the realization of potential LNG exports and demand growth within the power generation market. Volatility in the pricing levels of natural gas, oil and NGLs could adversely affect the businesses of certain of our producer customers and could result in defaults or the non-renewal of our contracted capacity when existing contracts expire. Commodity prices could affect the operations of certain of our industrial customers, including the temporary closure or reduction of plant operations, resulting in decreased deliveries to those customers. Future increases in the price of natural gas and NGLs could make alternative energy and feedstock sources more competitive and decrease demand for natural gas and NGLs. A reduced level of demand for natural gas and NGLs could diminish the utilization of capacity on our systems and reduce the demand for our services.

We are exposed to credit risk relating to default or bankruptcy by our customers.

Credit risk relates to the risk of loss resulting from the default by a customer of its contractual obligations or the customer filing bankruptcy. We have credit risk with both our existing customers and those supporting our growth projects. Credit risk exists in relation to our growth projects, ~~both~~ because the expansion customers make long-term firm capacity commitments to us for such projects and certain of those expansion customers agree to provide credit support as construction for such projects progresses. If a customer fails to post the required credit support or defaults during the growth project process, overall returns on the project may be reduced to the extent an adjustment to the scope of the project occurs, or we are unable to replace the defaulting customer with a customer willing to pay similar rates.

Our credit exposure also includes receivables for services provided, future performance under firm agreements and volumes of gas owed by customers for imbalances or gas loaned by us to them under certain NNS and PAL services.

We rely on a limited number of customers for a significant portion of our revenues.

For ~~2023~~2024, no customer comprised 10% or more of our operating revenues. However, the top ten customers under committed firm agreements comprised approximately 5362% of our total projected operating revenues as of December 31, ~~2023~~2024. If any of our significant customers have credit or financial problems ~~which~~that result in bankruptcy, a delay or failure to pay for services provided by us, to post the required credit support for construction associated with our growth projects or existing contracts or to repay the gas they owe us, it could have a material adverse effect on our revenues.

Our revolving credit facility contains operating and financial covenants that may restrict our business and financing activities.

Our revolving credit facility contains operating and financial covenants that may restrict our ability to finance future operations or capital needs or to expand or pursue business activities. Our credit agreement limits our ability to make loans or investments, make material changes to the nature of our business, merge, consolidate or engage in asset sales, or grant liens or make negative pledges. This agreement also requires us to maintain a ratio of total consolidated debt to consolidated EBITDA (as defined in the credit agreement) of not more than 5.0 to 1.0, or up to 5.5 to 1.0 for the three quarters following a qualified acquisition or series of acquisitions, where the purchase price exceeds $100.0 million over a rolling 12-month period, which limits the amount of additional indebtedness we can incur to grow our business, and could require us to reduce indebtedness if our earnings before interest, income taxes, depreciation and amortization (EBITDA) decreases to a level that would cause us to breach this covenant. Future financing agreements we may enter into could contain similar or more restrictive covenants or may not be as favorable as those under our existing indebtedness.

20Our ability to comply with the covenants and restrictions contained in our credit agreement may be affected by events beyond our control, including economic, financial and market conditions. If market or economic conditions or our financial performance deteriorate, our ability to comply with these covenants may be impaired. If we are not able to incur additional indebtedness, we may be required to seek other sources of funding that may be on less favorable terms. If we default under our credit agreement or another financing agreement, significant additional restrictions may become applicable. In addition, a default could result in a significant portion of our indebtedness becoming immediately due and payable, and our lenders could terminate their commitment to make further loans to us. If such an event occurs, we may not be able to obtain sufficient funds to make these accelerated payments.

Our ability to comply with the covenants and restrictions contained in our credit agreement may be affected by events beyond our control, including economic, financial and market conditions. If market or economic conditions or our financial performance deteriorate, our ability to comply with these covenants may be impaired. If we are not able to incur additional indebtedness, we may be required to seek other sources of funding that may be on less favorable terms. If we default under our credit agreement or another financing agreement, significant additional restrictions may become applicable. In addition, a default could result in a significant portion of our indebtedness becoming immediately due and payable, and our lenders could terminate their commitment to make further loans to us. If such event occurs, we may not be able to obtain sufficient funds to make these accelerated payments.

Our indebtedness could affect our ability to meet our obligations and may otherwise restrict our activities.

As of December 31, ~~2023~~2024, we had $3.3 billion in principal amount of long-term debt outstanding. This level of debt requires significant interest payments. Our inability to generate sufficient cash flow to satisfy our debt obligations, or to refinance our obligations on commercially reasonable terms, would have a material adverse effect on our business. Our indebtedness could have important consequences. For example, it could:

•limit our ability to borrow money for our working capital, capital expenditures, debt service requirements or other general partnership purposes;

•impact our ratings received from credit rating agencies;

•increase our vulnerability to general adverse economic and industry conditions; and

•limit our ability to respond to business opportunities, including growing our business through acquisitions.

We are permitted, under our revolving credit facility and the indentures governing our notes, to incur additional debt, subject to certain limitations under our revolving credit facility and the indentures governing the notes. If we incur additional debt, our increased leverage could also result in or exacerbate the consequences described above.

We have a holding company structure in which our subsidiaries conduct our operations and own our operating assets, which may affect our ability to fulfill our debt obligations.

We are a partnership holding company, and our operating subsidiaries conduct all of our operations and own all of our operating assets. We have no significant assets other than the ownership interests in our subsidiaries. As a result, our ability to fulfill our debt obligations depends on the performance of our subsidiaries and their ability to distribute funds to us. The ability of our subsidiaries to make distributions to us may be restricted by, among other things, the provisions of existing and future indebtedness, applicable state partnership and limited liability company laws and other laws and regulations, including FERC policies.

~~Limited~~Changes ~~access~~in to the debt markets and increases in interest rates could adversely affect our business.

We anticipate funding our capital and other spending requirements through our available financing options, including cash generated from operations, borrowings under our revolving credit facility and issuances of additional debt. Changes in the debt markets, including market disruptions, limited liquidity, and an increase in interest rates, may increase the cost of financing as well as the risks of refinancing maturing debt. This may affect our ability to raise needed financing and reduce the amount of cash available to fund our operations or growth projects or refinance maturing debt. If the debt markets were not available, it is not certain if other adequate financing options would be available to us on terms and conditions that we would find acceptable.

Any disruption in the debt markets could require us to take additional measures to conserve cash until the markets stabilize or until we can arrange alternative credit arrangements or other funding for our business needs. Such measures could include reducing or delaying business activities, reducing our operations to lower expenses and reducing other discretionary uses of cash. We may be unable to execute our growth strategy or take advantage of certain business opportunities, any of which could negatively impact our business.

Pandemics or other outbreaks of contagious diseases and the measures to mitigate their spread could materially adversely affect our business, financial condition and results of operations and those of our customers, suppliers and other business partners.

The global outbreak of the COVID-19 pandemic and measures to mitigate the spread of COVID-19 caused unprecedented disruptions to the global and U.S. economies and impacted global demand for oil and petrochemical products. Future pandemics ~~and~~or other outbreaks of contagious diseases could result in similar or worse impacts and significant business and operational disruptions, including business closures, supply chain disruptions, travel restrictions, stay-at-home orders and limitations on the availability of workforces. Although our operations are considered essential critical infrastructure under current Cybersecurity and Infrastructure Security Agency guidelines, if significant portions of our workforce are unable to work effectively, including because of illness or quarantines or from the impacts of any potential future pandemics ~~and~~or other outbreaks of contagious diseases, our business could be materially adversely affected. We may also be unable to perform fully on our contracts, and our costs may increase as a result of any potential future pandemics ~~and~~or other outbreaks of contagious diseases. These cost increases may not be fully recoverable. It is possible that future pandemics ~~and~~or other outbreaks of contagious diseases could cause disruption in our customers' ~~business;~~businesses, cause ~~delay~~delays, or limit the ability of our customers to perform, including in making timely payments to us. Future pandemics ~~and~~or other outbreaks of contagious diseases could impact capital markets, which may impact our customers' financial position. Future pandemics ~~and~~or other outbreaks of contagious diseases may also have the effect of ~~increasing~~exacerbating several of the other risk factors contained herein.

We do not own all of the land on which our pipelines, storage and other facilities are located, which could result in disruptions to our operations.

Substantial portions of our pipelines, storage and other facilities are constructed and maintained on property owned by others pursuant to rights-of-way, easements, permits, licenses or consents, and we are subject to the possibility of more onerous terms and/or increased costs to retain necessary land use rights if we do not have valid land use rights or if such land use rights lapse or terminate. Some of the rights we obtain to construct and operate our pipelines, storage or other facilities on land owned by third parties and governmental agencies ~~that we obtain~~ are for specific periods of time. We cannot guarantee that we will always be able to renew, when necessary, existing land use rights or obtain new land use rights without experiencing significant costs or experiencing landowner opposition. Any loss of these land use rights (or increased costs to renew) with respect to the operation of our pipelines, storage and other facilities, through our inability to acquire or renew right-of-way or easement contracts or ~~permits, licenses, consents or otherwise, could have a material adverse effect on our operations.~~

permits, licenses, consents or otherwise (or increased costs in connection with the renewal thereof), could have a material adverse effect on our operations.

We may not be successful in executing our strategy to grow and diversify our business.

We rely primarily on the revenues generated from our natural gas transportation and storage services. Negative developments in these services have a significantly greater impact on our financial condition and results of operations than if we maintained more diverse assets. Our ability to grow, diversify and increase cash flows will depend, in part, on our ability to expand our existing business lines and to close and execute on accretive acquisitions. We may not be successful in acquiring or developing such assets or may do so on terms that ultimately are not profitable.

Our ability to replace expiring gas storage contracts at attractive rates or on a long-term basis and to sell short-term services at attractive rates or at all are subject to market conditions.

We own and operate substantial natural gas storage facilities. The market for the storage and PAL services that we offer is impacted by the factors and market conditions discussed above for our transportation services, and is also impacted by natural gas price differentials between time periods, such as winter to summer (time period price spreads), and the volatility in time period price spreads. When market conditions cause a narrowing of time period price spreads and a decline in the price volatility of natural gas, these factors adversely impact the rates we can charge for our storage and PAL services.

Our operations are subject to catastrophic losses, operational hazards and unforeseen interruptions for which we may not be adequately insured.

There are a variety of operating risks inherent in transporting and storing natural gas, ethylene and NGLs, such as leaks and other forms of releases, explosions, fires, cybersecurity attacks and mechanical problems, which could have catastrophic consequences. Additionally, the nature and location of our business may make us susceptible to catastrophic losses from hurricanes or other named storms, particularly with regard to our assets in the Gulf Coast region, cold freezes, ~~snow storms~~snowstorms, windstorms, earthquakes, hail and other severe weather. Any of these or other similar occurrences could result in the disruption of our operations, substantial repair costs, personal injury or loss of life, significant damage to property, environmental pollution, impairment of our operations and substantial financial losses and reputational damage. The location of pipelines in HCAs, which includes populated areas, residential areas, commercial business centers and industrial sites, could significantly increase the level of damages resulting from some of these risks.

22We currently possess property, business interruption, cybersecurity and general liability insurance, but proceeds from such insurance coverage may not be adequate for all liabilities or expenses incurred or revenues lost. Moreover, such insurance may not be available in the future at commercially reasonable costs and terms. The insurance coverage we do obtain may contain large deductibles or fail to cover certain events, hazards or potential losses.

populated areas, residential areas, commercial business centers and industrial sites, could significantly increase the level of damages resulting from some of these risks.

We currently possess property, business interruption, cybersecurity threat and general liability insurance, but proceeds from such insurance coverage may not be adequate for all liabilities or expenses incurred or revenues lost. Moreover, such insurance may not be available in the future at commercially reasonable costs and terms. The insurance coverage we do obtain may contain large deductibles or fail to cover certain events, hazards or potential losses.

Our business requires the retention and recruitment of a skilled workforce and the loss of such workforce could result in the failure to implement our business plans.

Our operations and management require the retention and recruitment of a skilled executive team and workforce, including engineers, technical personnel and other professionals. In addition, many of our current employees are approaching retirement age and have significant institutional knowledge that must be transferred to other employees. If we are unable to retain our current employees, successfully complete the knowledge transfer and/or recruit new employees of comparable knowledge and experience, our business could be negatively impacted.

Our business is highly competitive.

The principal elements of competition among pipeline systems are the availability of capacity, rates, terms of service, access to gas supplies, flexibility and reliability of service. Additionally, the FERC's policies promote competition in natural gas markets by increasing the number of natural gas transportation options available to our customer base. Increased competition could reduce the volumes of product we transport or store or, in instances where we do not have long-term contracts with fixed rates, could cause us to decrease the transportation or storage rates we can charge our customers. Competition could ~~intensify~~exacerbate the negative impact of factors that adversely affect the demand for our services, such as adverse economic conditions, weather, higher fuel costs and taxes or regulatory actions that increase the cost, or limit the use, of our facilities or products we transport and store.

Possible terrorist activities or military actions could adversely affect our business.

The continued threat of terrorism and the impact of retaliatory military and other action by the U.S. and its allies might lead to increased political, economic and financial market instability and volatility in prices for natural gas, which could affect the markets for our natural gas transportation and storage services. While we are taking steps that we believe are appropriate to increase the security of our assets, we may not be able to completely secure our assets or completely protect them against a terrorist attack.

Possible terrorist activities or military actions could adversely affect our business.

The continued threat of terrorism and the impact of military and other action by the U.S. and its allies or other countries might lead to increased political, economic and financial market instability and volatility in prices for natural gas, which could affect the markets for our natural gas transportation and storage services. While we are taking steps that we believe are appropriate to increase the security of our assets, we may not be able to completely secure our assets or completely protect them against a terrorist attack.

Item 1B. Unresolved Staff Comments

None.

Item 1C. Cybersecurity

Risk Management and Strategy

Our business is dependent upon our computer systems, devices and networks (operational and information technology), and those of third parties with whom we do business, to collect, process and store the data necessary to conduct almost all aspects of our business, including the operation of our pipeline and storage facilities and the recording and reporting of commercial and financial information. We maintain a cybersecurity program, which includes people, processes, and technology aimed at defending our computer systems, devices and networks (operational and information technology) against increasingly sophisticated threats.

We recognize the importance of protecting both our information and operational control systems from threats that could disrupt our business, put our assets at risk or compromise our customer and employee data, including personally identifiable information. The effective protection of our assets and technology infrastructure is crucial to the reliability of our operations, our ability to serve our customers, the nation's energy needs and the security of our assets and data. We developed a comprehensive strategy designed to address both physical and cybersecurity threats. Additionally, as further described in Item 1. Business—Government Regulation—Transportation Safety Administration, TSA has issued a series of security directives that all pipeline owners and operators must include in their cybersecurity planning, testing and in their reporting of any incidents.

Our cybersecurity program is encapsulated in our Cybersecurity Implementation Plan, Cybersecurity Incident Response Plan and ~~Cybersecurity Assessment Plan (~~CAP). Our cybersecurity program is implemented and maintained using information security tools, policies and a dedicated team responsible for monitoring our networks, providing training to our employees, analyzing the evolution of new threats and strategies for mitigating such threats and seeking to continually harden our cybersecurity posture. The program is periodically exercised, reviewed, updated, and vetted through third-party audits, assessments, and tests with the goal of validating its effectiveness in reducing risk, as well as evaluating its compliance with legal and regulatory requirements. WeTo assess, identify and manage our material risks from cybersecurity threats, bywe ~~employing~~endeavor to employ the following:

a.Identification of critical systems – we seek to identify which operational or information technology, if compromised or exploited, would result in operational disruption or harm or data compromise. We aim to protect the entire environment at an enterprise level where practical, combined with additional layered, risk-based controls designed to safeguard against cybersecurity threats where risk is higher. This strategic, defense-in-depth, and risk-based approach to cybersecurity provides a methodology designed to identify, protect, detect, respond, and recover from cybersecurity incidents.

b.Network segmentation – we use a combination of firewalls, routers and ~~routers~~switches in an effort to provide network segmentation ~~seeking~~aimed toat ~~provide~~providing ~~us with~~ network zone protection.

c.Access controls – we leverage several security capabilities to attempt to enforce access, authorization and authentication to relevant systems, technology, and controls. A least-privilege methodology is applied for localized client workstations, servers, and applications. Security capabilities for access control include physical, administrative, and technical controls that combine to seek to provide a defense-in-depth approach designed to protect our cyber assets from unauthorized use.

d.Continuous monitoring, detection, and auditing – we employ various technologies, tactics, and procedures aimed to continuously monitor, baseline, and detect threats, and audit our network and systems. In addition, we use a combination of technology tools with outside managed security service providers designed to capture, analyze and respond to security anomalies.

e.Patch management – ~~we use a~~ network vulnerability scanning ~~tool~~tools ~~that~~are ~~continually~~deployed ~~scans,~~that ~~and~~seek ~~reports~~to ~~identified~~continually ~~vulnerabilities~~scan, inidentify ~~servers~~ and ~~workstations~~report inon ~~certain~~asset ~~networks~~vulnerabilities. Vulnerability scanner reports are used to drive patching and remediation efforts and are also used as a tool to evaluate the effectiveness ofand ~~efforts~~timeliness toof ~~seek~~patching ~~to ensure patches are applied timely~~efforts. Application and infrastructure subject matter experts subscribe to various third-party vendor security notifications to receive proactive notifications on, among other things, bugs, security flaws and mitigations, related to operational and information systems.

The above cybersecurity risk management processes are integrated into our overall risk management program. Cybersecurity threats are understood to be wide reaching and to intersect with various other enterprise risks. In addition to 25

24The above cybersecurity risk management processes are integrated into our overall risk management program. Cybersecurity threats are understood to be wide-reaching and to intersect with various other enterprise risks. In addition to assessing our own cybersecurity preparedness, we also consider cybersecurity risks associated with our use of third-party service providers based on the potential impact of a disruption of the services to our operations and the sensitivity of data shared with the service providers. We have established separate processes and procedures to oversee and identify cybersecurity risks associated with third parties.

~~assessing~~We ~~our~~regularly ~~own~~engage independent third parties to periodically assess our cybersecurity ~~preparedness~~posture. These assessments include penetration tests, wepurple ~~also~~team ~~consider~~activities, health checks and point-specific technical cybersecurity ~~risks~~assessments ~~associated~~of ~~with~~key ~~our~~systems. ~~use~~Some of ~~third-party~~these ~~service~~assessments ~~providers~~are ~~based~~performed onindependently ~~the~~with ~~potential~~internal ~~impact~~audit ofoversight. aCertain ~~disruption~~processes are part of ~~the~~our ~~services~~CAP and are required to ~~our~~be ~~operations~~tested at regular intervals, and ~~the~~test ~~sensitivity~~results ofmay ~~data~~be ~~shared~~required to be reported to TSA as requested and during inspections. We interface with industry peers, participate in information sharing and analysis centers and partner with federal, state, and local law enforcement and regulatory agencies with the ~~service~~goal ~~providers~~of forming a cybersecurity threat feedback loop. Threat and mitigation information, techniques, tactics and procedures are often shared via this loop.

We regularly engage independent third parties to periodically assess our cybersecurity posture. These assessments include penetration tests, purple team activities, health checks and point-specific technical cybersecurity assessments of key systems. Some of these assessments are performed with internal audit oversight. Certain of these processes are part of our CAP and are required to be tested in regular intervals with the test results required to be reported to TSA on a regular basis. We interface with industry peers, participate in information sharing and analysis centers and partner with federal, state, and local law enforcement and regulatory agencies with the goal of forming a cybersecurity threat feedback loop and periodically sharing threat and mitigation information, techniques, tactics and procedures.

Impact of Risks from Cybersecurity Threats

As of the date of this Annual Report, wethough ~~are~~the ~~not~~Company ~~aware~~and ofthird ~~any~~parties ~~previous~~with whom we do business have experienced certain cybersecurity ~~threats~~incidents, ~~including~~we asare anot ~~result~~aware of any previous cybersecurity threats or incidents, that have materially affected or are reasonably likely to materially affect us. We acknowledge that cybersecurity threats are continually evolving, and the possibility of future cybersecurity incidents remains. Despite the implementation of our cybersecurity processes, our security measures cannot guarantee that a significant cybersecurity attack will not occur. While we devote resources to our security measures designed to protect our systems and information, no security measure is infallible. See Item 1A. Risk Factors for additional information about the risks to our business associated with a breach or other compromise to our information and operational technology systems.

Governance

Our board of directors oversees the execution of our cybersecurity strategy ~~and the assessment of cybersecurity risks, along with the actions that we take seeking to mitigate and address those cybersecurity risks~~. Our Chief Information Security Officer (CISO) oversees our cybersecurity activities and leads our team of cybersecurity professionals responsible for our cybersecurity program and is informed about and monitors the prevention, detection, mitigation and remediation of cybersecurity incidents as part of our cybersecurity programs. Our CISO and other cybersecurity professionals provide updates regarding cybersecurity risks to our executive team and board of directors at least quarterly, with more frequent updates regarding cybersecurity-related situations, such as relevant intelligence ~~pointing to increased adversary activity~~indicators, as appropriate. Our Chief Information Officer and CISO also attend weekly executive leadership meetings to give updates on any immediate cybersecurity threats, risks and regulatory changes, as well as any improvements or impediments to our cybersecurity posture. Our CISO has over thirty years of experience involving technology in the energy sector, with a focus over the last twenty years on helping companies, including us, improve their technology infrastructure and cybersecurity programs.

Item 2. Properties

We are headquartered in approximately 98,600 square feet of leased office space located in Houston, Texas. We also have approximately 60,000 square feet of leased office space in Owensboro, Kentucky. Our operating subsidiaries own their respective pipeline and storage systems in fee. However, substantial portions of these systems are constructed and maintained on property owned by others pursuant to rights-of-way, easements, permits, licenses or consents. ~~Our~~Natural ~~Pipeline~~Gas and ~~Storage~~Natural ~~Systems~~Gas Liquids, in Part I, Item 1 of this Annual Report on Form 10-K, contains additional information regarding our material property, including our pipelines and storage facilities.

Item 3. Legal Proceedings

Refer to Note 6 in Part II, Item 8. of this Annual Report on Form 10-K for a discussion of our legal proceedings.

Item 4. Mine Safety Disclosures

Not applicable.

2526

PART II

Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

Not applicable.

Item 6. [Reserved]

2627

Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations

Overview

We operate in the midstream portion of the natural gas and NGLs industry, providing transportation and storage for those commodities. We also provide ethane supply and transportation services for industrial customers in Louisiana and Texas. Refer to Part I, Item 1. Business, of this Annual Report on Form 10-K for further discussion of our operations and business. We are not in the business of buying and selling natural gas and NGLs other than for system management purposes and to facilitate our ethane supply operations, but changes in natural gas and ~~NGL~~NGLs prices may impact the volumes of natural gas or NGLs transported and stored by our customers or the ethane supply requirements on our systems. The pricing contained in the purchase and sales agreements associated with our ethane supply services is generally based on the same ethane commodity index, plus a fixed delivery fee. As a result, except for possible timing differences that may occur when volumes are purchased in one month and sold in another month, our ethane supply services, like our other businesses, ~~result~~have ~~in us having~~ little to no direct commodity price exposure. ~~We conduct all of our business through our operating subsidiaries as one reportable segment.~~ Due to the capital-intensive nature of our business, our operating costs and expenses typically do not vary significantly based upon the ~~amount~~volume of products transported, with the exception of fuel consumed at our compressor stations and not included in a fuel tracker~~, which is netted with fuel retained on our Consolidated Statements of Income~~. ~~Please~~Refer ~~refer~~ to Part I, Item 1. Business, for further discussion of the services that we offer and our customer mix. As further discussed below, our operations are now reported under two business segments: Natural Gas and Natural Gas Liquids.

Acquisition

On September 29, 2023, Boardwalk Resources Company, LLC, a wholly owned subsidiary of ours, acquired 100% of the equity interests of Bayou Ethane from Williams Field Services Group, LLC for $355.0 million in cash. Bayou Ethane owns an approximately 380-mile pipeline system that transports ethane from Mont Belvieu, Texas, to the Mississippi River corridor in Louisiana and two 15-mile pipelines in the Houston Ship Channel area that carry ammonia and hydrogen chloride. Bayou Ethane provides ethane supply and transportation services for industrial customers in Louisiana and Texas. In providing supply services, Bayou Ethane purchases ethane at Mont Belvieu, Texas, and various locations in Louisiana and utilizes its pipeline to deliver ethane supply to its customers. The acquisition allows us to extend our assets, diversify our customer base and service offerings and to complement our existing NGLs operations. The purchase price was funded with available cash on hand.

Firm Agreements

A substantial portion of our transportation and storage capacity is contracted for under firm agreements. For the year ended December 31, ~~2023~~2024, approximately 8986% of our revenues were derived from capacity reservation fees under firm contracts or from contracts with MVCs. The table below shows a rollforward of projected operating revenues under committed firm agreements in place as of December 31, ~~2022~~2023, to December 31, ~~2023~~2024, including agreements for transportation, storage, ethane supply and other services, over the remaining term of those agreements (in millions):

Total projected operating revenues under committed firm agreements as of December 31, 2022	$	9,124.5
Adjustments for:
Actual revenues recognized from firm agreements in 2023(1)	(1,355.5)
Firm agreements entered into or acquired in 2023(2)	1,902.5
Total projected operating revenues under committed firm agreements as of December 31, 2023	$	9,671.5
Adjustments for:
Actual revenues recognized from firm agreements in 2024(1)	(1,504.0)
Firm agreements entered into in 2024(2)	6,016.5
Total projected operating revenues under committed firm agreements as of December 31, 2024	$	14,184.0

(1)As of December 31, ~~2022~~2023, we expected our ~~2023~~2024 revenues from fixed fees under firm agreements to be approximately $1,~~280~~390.0 million, including agreements for transportation, storage and other services. Our actual ~~2023~~2024 revenues recognized from fixed fees under firm agreements were approximately $1,~~355~~504.50 million, an increase of $75114.50 million ~~over~~from ~~2022~~2023, primarily resulting from contract renewals at higher rates that occurred in ~~2023~~2024. ~~The Bayou Ethane acquisition also contributed $14.3 million to the increase.~~

(2)During ~~2023~~2024, we entered into approximately $16.90 billion of new firm agreements, of which approximately 1678% were ~~from~~associated with new growth projects executed in ~~2023 and 9%, or $178~~2024.~~0 million, were from the agreements assumed as part of the Bayou Ethane acquisition.~~

27For firm agreements associated with new growth projects, the associated assets may not be placed into commercial service until sometime in the future. Further, the table above includes $3.8 billion of estimated revenues that are anticipated under executed precedent transportation agreements for growth projects that are subject to regulatory approvals. Each year, a portion of our firm transportation and storage agreements expire. The rates we are able to charge customers are heavily influenced by market trends (both short and longer term), including the available supply, geographical location of natural gas production, the competition between producing basins, competition with other pipelines for supply and markets, the demand for gas by end-users such as electric power generators, petrochemical facilities and LNG export facilities and the price differentials between the gas supplies and the market demand for the gas (basis differentials). Refer to Part I, Item 1. Business and Item 1A. Risk Factors of this Annual Report on Form 10-K for further information. As of December 31, 2024, our top ten customers under committed firm agreements comprised approximately 62% of our total projected operating revenues and the credit profile associated with our customers comprising the total projected operating revenues under committed firm agreements was 82% rated as investment grade, 3% rated as non-investment grade and 15% not rated. Note 4 in Part II, Item 8. of this Annual Report on Form 10-K contains more information regarding the revenues we expect to earn from fixed fees under committed firm agreements.

For firm agreements associated with new growth projects, the associated assets may not be placed into commercial service until sometime in the future. Each year a portion of our firm transportation and storage agreements expire. The rates we are able to charge customers are heavily influenced by market trends (both short and longer term), including the available supply, geographical location of natural gas production, the competition between producing basins, competition with other pipelines for supply and markets, the demand for gas by end-users such as power plants, petrochemical facilities and LNG export facilities and the price differentials between the gas supplies and the market demand for the gas (basis differentials). Refer to Part I, Item 1. Business and Item 1A. Risk Factors of this Annual Report on Form 10-K for further information. As of December 31, 2023, our top ten customers under committed firm agreements comprised approximately 53% of our total projected operating revenues and the credit profile associated with our customers comprising the total projected operating revenues under committed firm agreements was 77% rated as investment grade, 7% rated as non-investment grade and 16% not rated. Note 4 in Part II, Item 8. of this Annual Report on Form 10-K contains more information regarding the revenues we expect to earn from fixed fees under committed firm agreements.

Pipeline System Maintenance and GHG Emission Reduction Initiatives

We incur substantial costs for ongoing maintenance of our pipeline systems and related facilities, including those incurred for pipeline integrity management activities, equipment overhauls, general upkeep and repairs. These costs are not dependent on the amount of revenues earned from our transportation services. PHMSA has developed regulations that require transportation pipeline operators to implement integrity management programs to comprehensively evaluate certain high risk areas, known as HCAs, and MCAs, along pipelines and take additional safety measures to protect people and property in these areas. The HCAs for natural gas pipelines are predicated on high-population density areas (which, for natural gas transmission lines, include Class 3 and 4 areas and, depending on the potential impacts of a risk event, may include Class 1 and 2 areas) whereas HCAs along our NGL pipelines are based on high-population density areas, areas near certain drinking water sources and unusually sensitive ecological areas. These regulations have resulted in an overall increase in our ongoing maintenance costs, including maintenance capital and maintenance expense. In 2019, PHMSA issued the first part of its gas Mega Rule, which became effective on July 1, 2020. This regulation imposed numerous requirements, including MAOP reconfirmation through re-verification of all historical records for pipelines in service, which re-certification process may require natural gas pipelines installed before 1970 (previously excluded from certain pressure testing obligations) to be pressure tested, the periodic assessment of additional pipeline mileage outside of HCAs (in MCAs as well as Class 3 and Class 4 areas), the reporting of exceedances of MAOP and the consideration of seismicity as a risk factor in integrity management. In 2021, PHMSA issued a final rule that will impose safety regulations related to onshore gas gathering lines and in June 2021, PHMSA issued an Advisory Bulletin advising pipeline and pipeline facility operators of applicable requirements to update their inspection and maintenance plans for the elimination of hazardous leaks and minimization of natural gas released from pipeline facilities. PHMSA and state regulators reportedly began their review of these plans in 2022, and in May 2023, PHMSA published a proposed rule that would enhance requirements for detecting and repairing leaks on new and existing natural gas distribution, gas transmission and gas gathering pipelines. In August 2022, PHMSA published another final rule expanding the Management of Change process, extending corrosion control requirements for gas transmission pipelines, adding requirements that operators ensure no conditions exist following an extreme weather event that could adversely affect the safe operation of the pipeline, and adopting repair criteria for non-HCAs similar to those applicable to HCAs. In September 2023, PHMSA published a proposed rule that would enhance the safety requirements for gas distribution pipelines and would require updates to distribution integrity management programs, emergency response plans, operations and maintenance manuals and other safety practices.

Due to the nature of our business, our operations emit various types of GHGs. We seek to carefully monitor our emissions and expect to incur additional costs to mitigate emissions. New legislation or regulations could increase the costs related to operating and maintaining our facilities. Depending on the particular law, regulation or program, we could be required to incur capital expenditures for installing new monitoring equipment or emission controls on our facilities, acquire and surrender allowances for GHG emissions, pay taxes or fees related to GHG emissions and/or administer and manage a more comprehensive GHG emissions program.

We have been focused on seeking to meet and, in certain instances, pursuing projects aimed at exceeding, regulatory obligations (such as those found in the CAA) by working to reduce emissions of regulated air pollutants, including methane, associated with our pipeline transportation and storage assets. For example, in selecting new compression equipment for growth or asset reliability projects, we consider air emissions as a component in the decision-making process and, when appropriate, place increased emphasis in the selection process on equipment with emissions performance that exceeds applicable federal standards. Several of our reliability projects over the last few years have resulted in replacement of older, higher-emitting compressor drivers with units equipped with advanced emission control systems. As a result, these projects have resulted in decreases in emissions of nitrogen oxides and other air pollutants.

Pipeline System Maintenance and GHG Emission Reduction Initiatives

We incur substantial costs for ongoing maintenance of our pipeline systems and related facilities, including those incurred for pipeline integrity management activities, equipment overhauls, general upkeep and repairs. These costs are not dependent on the amount of revenues earned from our transportation services. PHMSA has developed regulations that require transportation pipeline operators to implement integrity management programs to comprehensively evaluate certain high-risk areas, known as HCAs, and MCAs, along pipelines and take additional safety measures to protect people and property in these areas. The HCAs for natural gas pipelines are predicated on high-population density areas (which, for natural gas transmission lines, include Class 3 and 4 areas and, depending on the potential impacts of a risk event, may include Class 1 and 2 areas), whereas HCAs along our NGLs pipelines are based on high-population density areas, areas near certain drinking water sources and unusually sensitive ecological areas. These regulations have resulted in an overall increase in our ongoing maintenance costs, including maintenance capital and maintenance expense. PHMSA has issued a series of significant rulemakings for onshore gas transmission pipelines (e.g., relating to MAOP reconfirmation and exceedance reporting, the integrity assessment of additional pipeline mileage and the consideration of seismicity as a risk factor in integrity management). In August 2022, PHMSA published a final rule that attempted to expand the Management of Change process, corrosion control requirements for gas transmission pipelines, requirements that operators ensure no conditions exist following an extreme weather event that could adversely affect the safe operation of the pipeline, and repair criteria for non-HCAs. Five safety standards included in that rule were challenged by industry trade groups, and in August 2024, the U.S. Court of Appeals for the D.C. Circuit struck down four of the five challenged safety standards. In September 2023, PHMSA published a proposed rule that, if finalized, would enhance the safety requirements for gas distribution pipelines and would require updates to distribution integrity management programs, emergency response plans, operations and maintenance manuals and other safety practices.

Due to the nature of our business, our operations emit various types of GHGs. We seek to monitor our emissions and expect to incur additional costs to mitigate emissions. New legislation or regulations could increase the costs related to operating and maintaining our facilities. Depending on the particular law, regulation or program, we could be required to incur capital expenditures for installing new monitoring equipment or emission controls on our facilities, acquire and surrender allowances for GHG emissions, pay taxes or fees related to GHG emissions and/or administer and manage a more comprehensive GHG emissions program.

We have been focused on seeking to meet and, in certain instances, pursuing projects aimed at exceeding, regulatory obligations (such as those found in the CAA) by working to reduce emissions of regulated air pollutants, including methane, associated with our pipeline transportation and storage assets. For example, when selecting new compression equipment for growth or asset reliability projects, we consider air emissions as a component in the decision-making process and, when appropriate, place increased emphasis on equipment with emissions performance that exceeds applicable federal standards. Several of our reliability projects over the last few years have resulted in the replacement of older, higher-emitting compressor drivers with units equipped with advanced emission control systems. As a result, these projects have resulted in decreases in emissions of nitrogen oxides and other air pollutants.

We have identified the reduction of GHG emissions as an area of focus and look for opportunities to reduce emissions using a variety of strategies, including the following:

•evaluating replacing older compression equipment with electric drive compression or new low emission, fuel efficient units when practical;

•modifying fuel systems on certain reciprocating compression equipment to lower fuel consumption and emissions;

•conducting emissions surveys and performing maintenance and repairs on identified component leaks;

•performing annual leak surveys along our pipelines with the aid of helicopters and fixed-wing planes, and analytical field surveys when appropriate;

•performing measurement surveys on all of our compressor stations at least twice a year, exceeding EPA requirements;

•using optical gas imaging cameras to scan natural gas piping and components at our compressor stations to visualize any leaks in real time;

•installing continuous monitoring emission detection equipment at ~~three~~certain compression stations;

•employing experts in air emissions to develop and monitor efforts in reducing emissions;

•reducing methane emissions vented to the atmosphere from transmission pipeline blowdowns by using existing and portable compression and flaring when feasible;

~~•installing repair sleeves and composite wraps where appropriate to avoid pipeline blowdowns;~~29

•installing repair sleeves and composite wraps where appropriate and practical to avoid pipeline blowdowns;

•evaluating software tools to optimize our GHG emissions management system;

•exploring options to replace high-bleed natural gas pneumatic devices with low or zero flow bleed devices; and

•reducing methane emissions from rod packing seals on reciprocating compressors, where appropriate and practical.

However, we cannot guarantee that we will be able to implement any of the opportunities we may review or explore, or, for any opportunities we do choose to implement, to implement them in their intended manner or within a specific timeframe or across all operational assets.

These new and any future regulations adopted by PHMSA and efforts to reduce GHG emissions are expected to cause usour capital and operating costs to ~~incur~~increase ~~increased~~in ~~capital~~2025 and ~~operating~~in ~~costs~~future years, may cause us to experience operational delays and may result in potential adverse impacts to our ability to reliably serve our customers. See Part I, Item 1. Business and Item 1A. Risk Factors of this Annual Report on Form 10-K for further information.

Maintenance costs may be capitalized or expensed, depending on the nature of the activities. For any given reporting period, the mix of projects that we undertake will affect the amounts we record as property, plant and equipment on our Consolidated Balance Sheets or recognize as expenses, which ~~impacts~~impact our earnings. We began incurring costs to implement the Mega Rule's requirements in 2021, and based on our current projections, believe that these costs have stabilized. In ~~2024~~2025, we expect to spend approximately $~~505~~504.0 million to maintain our pipeline systems, comply with regulations and monitor, control and reduce our GHG emissions, of which approximately $~~215~~203.0 million is expected to be maintenance capital. In ~~2023~~2024, we spent $~~445~~512.57 million on these matters, of which $~~164~~202.54 million was recorded as maintenance capital. Refer to Capital Expenditures for more information regarding certain of our maintenance costs.

Consolidated Results of Operations

Note 2 in Part II, Item 8. of this Annual Report on Form 10-K contains a summary of our revenue contracts and the related revenue recognition policies. A significant portion of our revenues are fee-based, being derived from capacity reservation charges under firm agreements with customers, which do not vary significantly period to period, but are impacted by longer-term trends in our business, such as changes in pricing on contract renewals and other factors discussed elsewhere in this Annual Report on Form 10-K. AsWe ~~discussed~~acquired ~~above,~~Bayou weEthane ~~recently~~in ~~acquired~~September ~~Bayou~~2023 ~~Ethane~~and began providing ethane supply and transportation services in connection with that acquisition. As a result of the acquisition, beginning inwith the fourth quarter 2023, weour ~~have separately reported~~ product sales and product costs were reported separately on our Consolidated Statements of Income. The pricing contained in the purchase and sales agreements associated with our ethane supply services is generally based on the same ethane commodity index, plus a fixed delivery fee. As a result, except for possible timing differences that may occur when volumes are purchased in one month and sold in another month, our ethane supply services, like our other businesses, ~~result~~have ~~in us having~~ little to no direct commodity price exposure. Our operating costs and expenses do not vary significantly based upon the ~~amount~~volume of products transported, with the exception of costs recorded in ~~Fuel~~Costs ~~and~~associated ~~transportation expense, which are netted~~ with ~~fuel~~service ~~retained on our Consolidated Statements of Income~~revenues. Our operations and maintenance expenses are impacted by our compliance with the requirements of, among other regulations, the Mega Rule and our efforts to monitor, control and reduce emissions, as further discussed in this Annual Report on Form 10-K.

29We use earnings before interest, taxes, depreciation and amortization (EBITDA), a measure not included in accounting principles generally accepted in the U.S. (GAAP), as a financial measure to assess our operating and financial performance and return on invested capital. We believe that some investors may find this measure useful in evaluating our performance as EBITDA is a commonly used metric within the midstream industry.

WeThe ~~use~~following ~~EBITDA,~~table presents a ~~non-GAAP~~reconciliation ~~measure,~~of asnet aincome ~~financial measure~~ to ~~assess~~EBITDA ~~our operating and financial performance and return on invested capital. We believe that some investors may find this measure useful~~ (in ~~evaluating our performance.~~millions):

The following table presents a reconciliation of net income to EBITDA for the years ended December 31, 2023 and 2022 (in millions):


	For the Year Ended December 31,
	2024		2023		2022
Net income	$	510.9	$	386.0	$	342.2
Income taxes	1.1		0.8		0.8
Depreciation and amortization	424.8		408.7		392.3
Interest expense	182.9		155.6		165.9
Interest income	(31.1)		(12.1)		(3.3)
EBITDA	$	1,088.6	$	939.0	$	897.9

	For the Year Ended December 31,
	2023		2022
Net income	$	386.0	$	342.2
Income taxes	0.8		0.8
Depreciation and amortization	408.7		392.3
Interest expense	155.6		165.9
Interest income	(12.1)		(3.3)
EBITDA	$	939.0	$	897.9

Please refer to the disclosures in this Item 7. and Item 1A. Risk Factors of this Annual Report on Form 10-K of items that have impacted, or could impact in the future, our results of operations.

2024 Compared with 2023

Our net income for the year ended December 31, 2024, increased $124.9 million, or 32%, to $510.9 million compared to $386.0 million for the year ended December 31, 2023. Our EBITDA increased $149.6 million, or 16%, to $1,088.6 million for the same period. Our net income and EBITDA increased primarily due to the factors discussed below and included increases in 2024 of $15.0 million and $23.5 million from the acquisition of Bayou Ethane in September 2023.

Operating revenues for the year ended December 31, 2024, increased $410.4 million, or 25%, to $2,028.1 million, compared to $1,617.7 million for the year ended December 31, 2023. During the fourth quarter 2023, a customer released its NNS into separate transportation and storage services, which resulted in an increase of storage revenues and a reduction in transportation revenues of $19.1 million for both services for the year ended December 31, 2024, compared to the comparable period in 2023. Excluding the $19.1 million from the NNS contract, our transportation revenues increased $93.0 million, primarily due to re-contracting at higher rates and recently completed growth projects; our storage and PAL revenues increased $31.0 million due to favorable market conditions which allowed for contracting at higher rates; our product sales revenues from the sale of natural gas, ethylene and propane increased by $22.6 million due to opportunistic market conditions; and the Bayou Ethane acquisition contributed $261.5 million of incremental operating revenues, primarily resulting from ethane product sales.

Operating costs and expenses for the year ended December 31, 2024, increased $278.9 million, or 26%, to $1,370.4 million, compared to $1,091.5 million for the year ended December 31, 2023. Our operating expenses in 2024 were primarily impacted by the following items:

•increased expenses from the Bayou Ethane acquisition, which incurred incremental costs of $246.4 million for the year, including $215.5 million of incremental costs associated with product sales and $8.4 million of incremental depreciation and amortization expense;

•increased operation and maintenance expenses of $18.4 million primarily due to higher maintenance projects associated with compliance activities; and

•increased administrative and general costs of $10.0 million from higher employee-related costs.

Our depreciation and amortization expense and interest income and expense in 2024 were impacted by the following items:

•increased depreciation and amortization expense of $16.1 million from an increased asset base from recently completed growth projects and the Bayou Ethane acquisition; and

•increased interest expense of $27.3 million due to the pre-financing of the $600.0 million of debt that matured on December 15, 2024, and increased interest income of $19.0 million primarily due to income earned from cash invested in short-term investments.

2023 Compared with 2022

Our net income for the year ended December 31, 2023, increased $43.8 million, or 13%, to $386.0 million compared to $342.2 million for the year ended December 31, 2022. Our EBITDA ~~for the year ended December 31, 2023,~~ increased $41.1 million, or 5%, to $939.0 million asfor ~~compared to~~ the ~~comparable~~same ~~2022~~ period. Our net income and EBITDA increased due to the other factors discussed below, and also included increases of $5.5 million and $8.2 million from the Bayou Ethane acquisition.

Operating revenues for the year ended December 31, 2023, increased $185.7 million, or 13%, to $1,617.7 million, compared to $1,432.0 million for the year ended December 31, 2022. ~~Including fuel and transportation expenses and product costs, operating revenues increased $95.0 million, or 7%.~~ During the fourth quarter 2023, a customer released its ~~no-notice~~NNS ~~service~~ into separate transportation and storage services, which resulted in an increase of storage revenues and a reduction in transportation revenues of $6.4 million in 2023 compared to 2022. Excluding the $6.4 million from the ~~no-notice~~NNS ~~service~~ contract, our transportation revenues increased $7064.9 7 million, primarily due to re-contracting at higher rates and recently completed growth projects; our storage and PAL revenues increased $2325.1 3 million due to favorable market conditions; ~~and~~ the Bayou Ethane acquisition contributed $11101.45 million, primarily resulting from product sales of $99.4 million; and ~~product~~other ~~costs~~increases of $884.03 million. These increases were partially offset by $910.01 million from lower sales of our other NGL products ~~and other reductions of $1~~.~~4 million.~~

~~Operating costs and expenses for the year ended December~~ 31, 2023, increased $158.7 million, or 17%, to $1,091.5 million, compared to $932.8 million for the year ended December 31, 2022. Excluding expenses and product costs offset with operating revenues, operating costs and expenses increased $68.0 million, or 7%. Our operating expenses were impacted by the following items:

~~•increased~~Operating costs and expenses offor the year ended December 31, 2023, increased $5158.97 million, ~~from~~or ~~the~~17%, ~~Bayou~~to ~~Ethane~~$1,091.5 ~~acquisition~~million, ofcompared ~~which~~to $2932.78 million ~~was~~for ~~depreciation~~the ~~and~~year ~~amortization~~ended ~~expense;~~December 31, 2022. Our operating expenses in 2023 were impacted by the following items:

•increased ~~operating and maintenance~~ expenses of $2896.20 million ~~primarily~~from ~~due~~the toBayou ~~higher~~Ethane ~~maintenance~~acquisition, ~~projects~~including ~~associated~~$88.0 ~~with~~million ~~the~~of ~~requirements~~costs ofassociated ~~the~~with ~~Mega~~product ~~Rule~~sales and ~~higher~~$2.7 ~~materials~~million ~~and~~from ~~supplies~~depreciation and ~~outside~~amortization ~~services costs~~expense; ~~and~~

•increased operation and maintenance expenses of $28.2 million primarily due to higher maintenance projects associated with the requirements of the Mega Rule and higher materials and supplies and outside services costs; and

•increased administrative and general expenses of $23.2 million primarily due to higher employee-related and outside services costs.

Our depreciation and amortization expense and interest income and expense in 2023 were impacted by the following items:

•~~higher~~increased depreciation and amortization expense of $16.4 million from an increased asset base from recently completed growth projects, the Bayou Ethane acquisition and a change in the estimated life of certain of our assets; and

30•decreased interest expense of $10.3 million due to lower average outstanding long-term debt and increased interest income of $8.8 million due to income earned from cash invested in money market funds.

~~•lower~~Segment ~~interest expense of $10.3 million due to lower average outstanding long-term debt and higher interest income of $8.8 million due to income earned from cash invested in money market funds.~~Results

Prior to the fourth quarter 2024, we reported in one single operating and reportable segment – the operation of interstate natural gas and NGLs pipeline systems and integrated storage facilities in the U.S. In 2024, our previous Chief Executive Officer (CEO) retired and a new CEO was appointed. In the fourth quarter 2024, new internal reports and information began to be provided to and evaluated by the Chief Operating Decision Maker, our CEO, to reflect the CEO’s method of viewing information to manage the business, assess performance and allocate resources. As such, our operations are now reported under two business segments: Natural Gas and Natural Gas Liquids. While our segments provide similar services, their results of operations are primarily organized and managed according to product lines – that of Natural Gas and that of Natural Gas Liquids. Management uses Segment EBITDA as a basis to assess segment financial performance and allocate resources, which financial information is contained in Note 18 in Part II, Item 8. of this Annual Report on Form 10-K.

The following table provides our Total Segment EBITDA and a reconciliation to EBITDA (in millions):


	For the Year Ended December 31,
	2024		2023		2022
Natural Gas	$	874.7	$	794.4	$	752.2
Natural Gas Liquids	213.9		144.6		145.7
Total Segment EBITDA	$	1,088.6	$	939.0	$	897.9

EBITDA (1)	$	1,088.6	$	939.0	$	897.9

(1)Refer to the reconciliation of net income to EBITDA in the table under Consolidated Results of Operations.

2024 Compared with 2023

Natural Gas

The Natural Gas segment operating revenues for the year ended December 31, 2024, increased $127.4 million, or 10%, to $1,442.1 million, compared to $1,314.7 million for the year ended December 31, 2023. EBITDA operating costs and expenses increased $49.2 million in 2024, or 9%, to $573.5 million, compared to $524.3 million in 2023. EBITDA increased by $80.3 million to $874.7 million in 2024, compared to 2023. Operating revenues in 2024 were impacted by the NNS contract that was separated into separate transportation and storage agreements discussed above, which resulted in an increase of storage revenues of $19.1 million and a decrease in transportation revenues by the same amount. Additionally, the Natural Gas segment had intrasegment revenues of $49.4 million and $30.0 million for the years ended December 31, 2024 and 2023, for which

$31.0 million and $26.1 million of expenses were recognized in Costs associated with service revenues associated with an intrasegment transportation contract and $18.4 million and $3.9 million were recognized in Administrative and general expenses related to an intrasegment licensing agreement for the same periods. EBITDA was also impacted by the following items in 2024:

•increased transportation revenues of $82.8 million primarily due to re-contracting at higher rates and recently completed growth projects;

•increased storage and PAL revenues of $21.1 million due to favorable market conditions which allowed for re-contracting at higher rates;

•increased product sales revenues from the sale of natural gas of $5.9 million due to opportunistic market conditions;

•increased operation and maintenance expenses of $24.0 million related to increased maintenance projects associated with compliance activities; and

•increased administrative and general expenses of $10.6 million primarily due to higher employee-related and outside services costs.

Natural Gas Liquids

The Natural Gas Liquids segment operating revenues for the year ended December 31, 2024, increased $302.4 million, or 91%, to $635.4 million compared to $333.0 million for the year ended December 31, 2023. EBITDA operating costs and expenses increased $233.0 million in 2024, or 124%, to $421.5 million, compared to $188.5 million in 2023. EBITDA increased by $69.3 million to $213.9 million in 2024, compared to 2023. The Natural Gas Liquids segment acquired Bayou Ethane on September 29, 2023. Bayou Ethane contributed an incremental $23.5 million to EBITDA in 2024, which consisted of $261.5 million of incremental operating revenues, primarily resulting from ethane product sales, and $238.0 million of incremental EBITDA operating costs and expenses, including $215.5 million of incremental costs associated with product sales and $22.5 million of other EBITDA operating costs and expenses. In addition to the Bayou Ethane acquisition, EBITDA was also impacted by the following items in 2024:

•increased ethylene and propane product sales of $16.7 million due to opportunistic market conditions;

•increased transportation revenues of $10.2 million due to higher volumes;

•increased storage of $9.9 million due to re-contracting at higher rates; and

•decreased operation and maintenance expenses of $5.6 million due to lower maintenance project costs.

2023 Compared with 2022

Natural Gas

The Natural Gas segment operating revenues for the year ended December 31, 2023, increased $84.0 million, or 7%, to $1,314.7 million, compared to $1,230.7 million for the year ended December 31, 2022. EBITDA operating costs and expenses increased $39.5 million in 2023, or 8%, to $524.3 million, compared to $484.8 million in 2022. EBITDA increased by $42.2 million to $794.4 million in 2023, compared to 2022. Operating revenues in 2023 were impacted by the NNS contract that was separated into separate transportation and storage agreements that was discussed above, which resulted in an increase of storage revenues of $6.4 million and a decrease in transportation revenues by the same amount. Additionally, the Natural Gas segment had intrasegment revenues of $30.0 million and $24.9 million for the years ended December 31, 2023 and 2022, for which $26.1 million and $24.9 million of expenses were recognized in Costs associated with service revenues associated with an intrasegment transportation contract for the same periods. An additional $3.9 million was recognized in Administrative and general expenses related to an intrasegment licensing agreement for the year ended December 31, 2023. EBITDA was also impacted by the following items in 2023:

•increased transportation revenues of $59.3 million primarily due to re-contracting at higher rates and recently completed growth projects;

•increased storage and PAL revenues of $19.5 million due to favorable market conditions, which allowed for re-contracting at higher rates;

•increased operation and maintenance expenses of $20.5 million primarily due to higher maintenance projects associated with the requirements of the Mega Rule and higher materials and supplies and outside services costs; and

•increased administrative and general expenses of $18.9 million primarily due to higher employee-related and outside services costs.

Natural Gas Liquids

The Natural Gas Liquids segment operating revenues for the year ended December 31, 2023, increased $106.8 million, or 47%, to $333.0 million, compared to $226.2 million for the year ended December 31, 2022. EBITDA operating costs and expenses increased $107.9 million in 2023, or 134%, to $188.5 million, compared to $80.6 million in 2022. EBITDA decreased by $1.1 million to $144.6 million in 2023, compared to 2022. The Bayou Ethane acquisition contributed $8.2 million to EBITDA in 2023, which primarily consisted of $101.5 million of operating revenues, primarily resulting from ethane product sales, and $93.3 million of EBITDA operating costs and expenses, including $88.0 million of incremental costs associated with product sales and $5.3 million of other EBITDA operating costs and expenses. In addition to the Bayou Ethane acquisition, EBITDA was also impacted by the following items in 2023:

•decreased ethylene and propane product sales of $10.1 million;

•increased transportation and storage revenues of $11.2 million primarily due to higher rates;

•increased other revenues from brine supply revenues of $2.9 million due to higher volumes;

•increased operation and maintenance costs of $7.7 million primarily due to increased outside services and utility costs; and

•increased administrative and general expenses of $4.3 million primarily due to higher employee-related and outside services costs.

Liquidity and Capital Resources

We are a partnership holding company and derive all of our operating cash flow from our operating subsidiaries. Our principal sources of liquidity include cash generated from operating activities, our revolving credit facility and debt issuances. Our operating subsidiaries use cash from their respective operations to fund their operating activities and maintenance capital requirements, service their indebtedness and make advances or distributions to Boardwalk Pipelines. Boardwalk Pipelines uses cash provided from the operating subsidiaries and, as needed, borrowings under our revolving credit facility to service outstanding indebtedness and make distributions or advances to us.

At December 31, ~~2023~~2024, we had $20117.19 million of cash on hand, no outstanding borrowings under our revolving credit facility, and the full borrowing capacity of $~~975~~1.0 billion available to us. In February 2024, we issued $600.0 million aggregate principal amount of ~~available~~Boardwalk ~~borrowing~~Pipelines ~~capacity~~5.625% ~~under~~notes ~~our~~due August 2034. The net proceeds from this offering were used to retire $1600.0 ~~billion~~million ~~revolving~~of ~~credit~~Boardwalk ~~facility~~Pipelines 4.95% notes at their maturity in December 2024. We anticipate that our existing capital resources, including our cash onand ~~hand~~cash equivalents, revolving credit facility and our cash flows from operating activities, will be adequate to fund our operations and capital expenditures for ~~2024~~2025. We may seek to access the debt markets to fund some or all capital expenditures for growth projects or acquisitions, to refinance maturing debt or for general partnership purposes. WeAs of February 7, 2025, we also have an effective shelf registration statement on file with the SEC under which we may publicly issue $1900.50 million ~~billion~~ of debt securities, warrants or rights from time to time. WeIn ~~have $600.0 million of notes maturing in December~~ 2024, ~~which~~ we expect to retire near or at maturity through available capital resources, including borrowing under our revolving credit facility or publicly issuing debt securities. In June 2023, our revolving credit facility was amended to extend the maturity date by one year to May 26, 2028. In December 2023, we paid a $~~300~~400.0 million ~~distribution~~of distributions to ~~our~~BPHC ~~general~~and ~~partner~~Boardwalk ~~and~~GP, ~~BPHC~~LP. As of December 31, ~~2023~~2024, we have $4.12 billion of contractual cash payment obligations under firm agreements, of which $34.91 billion represents principal and interest payments related to our long-term debt. Note 12 in Part II, Item 8. of this Annual Report on Form 10-K contains more information regarding our long-term debt and financing activities and Notes 5 and 6 contain more information about our other commitments.

Credit Ratings

Most of our senior unsecured debt is rated by independent credit rating agencies. The credit ratings affect our ability to access the public and private debt markets, as well as the terms and the cost of our borrowings. Our ability to satisfy financing requirements or fund planned growth capital expenditures will depend upon our future operating performance and our ability to access the capital markets, which are affected by economic factors in our industry as well as other general economic, financial and business factors, some of which are beyond our control. As of February 27, ~~2024~~2025, our credit ratings for our senior unsecured notes (including those issued by Boardwalk Pipelines) and that of our operating subsidiary having outstanding rated debt were as follows:

Rating agency

Rating(Us/Operating Subsidiary)

Outlook(Us/OperatingSubsidiary)

Standard and Poor's

BBB-/BBB-

Stable/Stable

Moody's Investor Services

Baa2/Baa1

Stable/Stable

Fitch Ratings, Inc.

BBB/BBB

Stable/Stable

Credit ratings reflect the view of a rating agency and are not a recommendation to buy, sell or hold any security, and may be revised or withdrawn at any time by the rating agency if it determines that the facts and circumstances warrant such a change. Each credit agency's rating should be evaluated independently of any other credit agency's rating.

Guarantee of Securities of Subsidiaries

Our debt is primarily issued at Boardwalk Pipelines, our wholly owned subsidiary, although we have historically also issued debt at our operating subsidiaries. As of December 31, ~~2023~~2024, all of the outstanding notes issued by Boardwalk Pipelines (Subsidiary Issuer) and the full amount of the revolving credit facility, were guaranteed by us (Parent Guarantor). The purpose of the guarantees is to help simplify our reporting and capital structure.

We guarantee amounts borrowed under the revolving credit facility, but any amounts borrowed are not subject to the reporting requirements of Rule 13-01 of Regulation S-X (Rule 13-01). As of December 31, ~~2023~~2024, there ~~was~~were ~~$25~~no outstanding borrowings under the revolving credit facility.0 ~~million~~The following table identifies our principal amounts outstanding for the debt that is subject to the disclosure rules of Rule 13-01 (in millions):


	As of December 31, 2024
Principal amounts guaranteed by Boardwalk Pipeline Partners and subject to Rule 13-01 (1)	$	3,150.0
Principal amounts not guaranteed (2)	100.0
Other (3)	(15.6)
Total debt and finance lease obligation	$	3,234.4

outstanding borrowings under the revolving credit facility. The following table identifies our principal amounts outstanding for the debt that is subject to the disclosure rules of Rule 13-01 (in millions):

	As of December 31, 2023
Principal amounts guaranteed by Boardwalk Pipeline Partners and subject to Rule 13-01 (1)	$	3,150.0
Principal amounts not guaranteed (2)	100.0
Other (3)	11.9
Total debt and finance lease obligation	$	3,261.9

(1)This represents principal amounts of all outstanding debt at Boardwalk Pipelines subject to the disclosure rules of Rule 13-01 (the Guaranteed Notes).

(2)This represents principal amounts of outstanding debt at Texas Gas.

(3)This represents amounts related to a finance lease, and unamortized debt discount and issuance costs ~~and outstanding borrowings under the revolving credit facility~~.

The Guaranteed Notes are fully and unconditionally guaranteed by the Parent Guarantor on a senior unsecured basis. The guarantees of the Guaranteed Notes rank equally with all of our existing and future senior debt, including our guarantee of indebtedness under our revolving credit facility. The guarantees will be effectively subordinated in right of payment to all of our future secured debt to the extent of the value of the assets securing such debt. There are no restrictions on the Subsidiary Issuer's ability to pay dividends or make loans to the Parent Guarantor. The guaranteed obligations will be terminated with respect to any series of notes if that series has been discharged or defeased.

Our operating assets, operating liabilities, operating revenues, expenses and other comprehensive income either exist at or are generated by our operating subsidiaries. The Parent Guarantor and the Subsidiary Issuer have no material assets, liabilities or operations independent of their respective financing activities, including the Guaranteed Notes and advances to and from each other, and their investments in the operating subsidiaries. For these reasons, we meet the criteria in Rule 13-01 to omit the summarized financial information from our disclosures.

liabilities or operations independent of their respective financing activities, which includes the Guaranteed Notes and interest expense of $176.7 million, and includes advances to and from each other, and their investments in the operating subsidiaries. For these reasons, we meet the criteria in Rule 13-01 to omit the summarized financial information from our disclosures.

Capital Expenditures

Maintenance capital expenditures for the years ended December 31, ~~2023~~2024, ~~2022~~2023 and ~~2021~~2022, were $~~164~~202.54 million, $~~157~~164.45 million and $~~154~~157.34 million. ~~Growth~~Refer ~~capital~~to ~~expenditures~~Pipeline ~~for~~System ~~the~~Maintenance ~~years ended December 31, 2023, 2022~~ and ~~2021,~~GHG ~~were~~Emission ~~$217.9~~Reduction ~~million,~~Initiatives ~~$180.2 million and $174.9 million. During the year ended December 31, 2023, we acquired Bayou Ethane~~ for ~~$355.0~~further ~~million.~~information ~~During~~about ~~the~~factors ~~year~~impacting ~~ended December 31, 2022, we spent $6.7 million on natural gas to be used in~~ our ~~integrated~~maintenance ~~natural~~capital ~~gas pipeline system~~spending. ~~During the year ended December 31, 2021, we acquired certain natural gas pipeline assets in the Lake Charles, Louisiana, area for approximately $20.0 million in cash.~~

WeGrowth ~~expect total~~ capital expenditures tofor bethe ~~approximately~~years ended December 31, 2024, 2023 and 2022, were $~~420~~190.0 million, in$217.9 ~~2024~~million and $180.2 million. During the year ended December 31, ~~including~~2023, ~~approximately~~we acquired Bayou Ethane for $~~215~~355.0 million. ~~for~~During ~~maintenance~~the ~~capital~~year ~~and~~ended December 31, 2022, we spent $~~205~~6.07 million ~~related~~on natural gas to ~~growth~~be ~~projects~~used in our integrated natural gas pipeline system.

We expect total capital expenditures to be approximately $269.0 million in 2025, including approximately $203.0 million for maintenance capital and $66.0 million related to growth projects. We expect to spend a total of approximately $1.6 billion on our ongoing and announced growth projects, with expected in-service dates for these projects ranging from 2025 to 2029. Refer to Current Growth Projects in Part I, Item 1. Business of this Annual Report on Form 10-K for further information on our growth projects.

Critical Accounting Estimates and Policies

Our significant accounting policies are described in Note 2 in Part II, Item 8. of this Annual Report on Form 10-K. The preparation of these consolidated financial statements in conformity with accounting principles generally accepted in the U.S. requires us to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosures of contingent assets and liabilities. Estimates are based on historical experience and on various other assumptions that are believed to be reasonable under the circumstances. The result of this process forms the basis for making judgments about the carrying amounts of assets and liabilities and related disclosures of contingent assets and liabilities that are not readily apparent from other sources. We review our estimates and assumptions on a regular, ongoing basis. Changes in facts and circumstances may result in revised estimates and actual results may differ materially from those estimates. Any effects on our business, financial position or results of operations resulting from revisions to these estimates are recorded in the periods in which the facts that give rise to the revisions become known.

The following accounting policies and estimates are considered critical due to the potentially material impact that the estimates, judgments and uncertainties affecting the application of these policies might have on our reported financial information.

Goodwill

Goodwill represents the excess of the cost of an acquisition over the fair value of the net identifiable assets acquired and liabilities assumed. Goodwill is tested for impairment at the reporting unit level at least annually, as of November 30, or more frequently when events occur and circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. Accounting requirements provide that a reporting entity may perform an optional qualitative assessment on an annual basis to determine whether events occurred or circumstances changed that would more likely than not reduce the fair value of a reporting unit below its carrying amount. If an initial qualitative assessment identifies that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, or the optional qualitative assessment is not performed, a quantitative analysis is performed. The quantitative goodwill impairment test is performed by calculating the fair value of the reporting unit and comparing it to the reporting unit's carrying amount. If the fair value of a reporting unit exceeds its carrying amount, goodwill of the reporting unit is not impaired. However, if the carrying amount of a reporting unit exceeds its fair value, an impairment loss is recognized in an amount equal to that excess, limited to the total amount of goodwill recorded on the reporting unit.

As of November 30, ~~2023~~2024, our annual goodwill testing date, we ~~performed~~elected to perform a ~~quantitative~~qualitative ~~analysis~~assessment on our two reporting units. toThe ~~measure~~qualitative ~~whether~~assessment ~~the~~included ~~fair value of either of~~ our ~~reporting~~consideration ~~units was less than their carrying amounts. The fair value measurement~~ of, ~~the~~among ~~reporting~~other ~~units~~things, ~~was~~overall ~~derived~~macroeconomic ~~based~~conditions, onindustry ~~judgments~~ and ~~assumptions we believe~~ market ~~participants~~considerations, ~~would~~current ~~use~~discount inrates ~~assessing the fair value of the reporting units. These judgments~~ and ~~assumptions included the~~ valuation ~~premise~~multiples, ~~use~~overall ~~of a discounted cash flow model to estimate fair value under an income approach and inputs to the valuation model. The inputs included our five-year~~ financial ~~plan operating results~~performance, including operating revenues, ~~the~~and ~~long-term~~other ~~outlook~~relevant ~~for~~company ~~growth~~specific inevents. ~~natural~~Based ~~gas~~on ~~and~~the ~~NGLs~~assessment ~~demand, measures~~ of ~~the~~these ~~risk-free rate~~items, ~~equity~~we ~~premium~~concluded ~~and~~that ~~systematic~~it ~~risk~~is ~~used~~more inlikely ~~the~~than ~~calculation~~not ofthat the ~~applied discount rate under the capital asset pricing model and views regarding future market conditions, among others. The reasonableness of~~ fair value ~~estimates~~of ~~under~~our ~~the~~two ~~income~~reporting ~~approach~~units ~~were~~exceeded ~~supported~~their byrespective acarrying ~~market approach under which we applied EBITDA multiples derived from publicly-available information to each reporting unit's EBITDA~~amounts. ~~The use of alternate judgments and assumptions~~Accordingly, ~~including~~there ~~changes~~were inno ~~the~~indicators ~~risk-free rate, could substantially change the results~~ of ~~our goodwill~~ impairment ~~analysis,~~and ~~including~~ the ~~potential~~quantitative ~~recognition of an~~ impairment ~~charge~~test inwas ~~our~~not ~~Consolidated Financial Statements~~performed.

The results of the quantitative goodwill impairment test for 2023 indicated that the fair value of our two reporting units exceeded their carrying amounts and no goodwill impairment charges were recognized. The estimated fair values of our reporting units fluctuate from year to year. In 2023, the estimated fair values of the reporting units exceeded their carrying amounts by amounts that were similar to that indicated in 2022, with the excess of both reporting units being in the range of 10% - 20%. Although the prospects for our reporting units remain positive, including their strong base operating cash flows and the markets in which they operate, significant changes in future estimated operating revenues or cash flows, or any other changes to the inputs to the valuation model, such as those previously discussed, could result in the recognition of future impairment charges.36

The estimated fair values of our reporting units fluctuate from year to year, and the use of alternate judgments and assumptions could substantially change the results of our goodwill impairment analysis, including the recognition of an impairment charge in our Consolidated Financial Statements. The quantitative goodwill tests for 2023 and 2022 did not result in any goodwill impairment charges. Although the prospects for our reporting units remain positive, including their strong base operating cash flows and the markets in which they operate, significant changes in future estimated operating revenues or cash flows, or any other changes to the inputs to the valuation model could result in the recognition of future impairment charges.

Impairment of Long-Lived Assets (including Tangible and Definite-Lived Intangible Assets)

We evaluate whether the carrying amounts of our long-lived and intangible assets have been impaired when circumstances indicate the carrying amount of those assets may not be recoverable. The carrying amount is not recoverable if it exceeds the undiscounted sum of cash flows expected to result from the use and eventual disposition of the asset. If the carrying amount is not recoverable, an impairment loss is measured as the excess of the asset's carrying amount over its fair value. We recognized asset impairment charges of $2.4 million, $0.4 million and $7.5 million for the years ended December 31, 2024, 2023 and 2022~~, and immaterial asset impairment charges for the year ended December 31, 2021~~. ~~The charges recorded in 2022 were primarily due to an increase in the estimate of existing asset retirement obligations related to retired assets.~~

Forward-Looking Statements

Certain statements contained in this Annual Report on Form 10-K, as well as some statements in our other filings with the SEC and periodic press releases and some ~~oral~~ statements made by our officials and our subsidiaries during presentations about us, are "forward-looking." Forward-looking statements include, without limitation, any statement that may project, indicate or imply future results, events, performance, intentions or achievements, and may contain the words "expect," "intend," "plan," "anticipate," "estimate," "believe," "will likely result" and similar expressions. In addition, any statement concerning future financial performance (including future revenues, earnings or growth rates), ongoing business strategies or prospects and possible actions by us or our subsidiaries, are also forward-looking statements.

future financial performance (including future revenues, earnings or growth rates), ongoing business strategies or prospects and possible actions by us or our subsidiaries, are also forward-looking statements.

Forward-looking statements are based on current expectations and projections about future events and their potential impact on us. While management believes that these forward-looking statements are reasonable as and when made, there is no assurance that future events affecting us will be those that we anticipate. All forward-looking statements are inherently subject to a variety of risks and uncertainties, many of which are beyond our control, which could cause actual results to differ materially from those anticipated or projected. These include, among others, the impacts of legislative and regulatory initiatives, or the implementation thereof, the impacts of climate change, ESG matters and pipeline safety requirements and initiatives, the costs of maintaining and ensuring the integrity and reliability of our pipeline systems, our ability to complete growth projects that we have commenced or will commence, the risk of a failure in computer systems or cybersecurity attack, successful negotiation, consummation and completion of contemplated transactions, projects and agreements, risks and uncertainties related to the impacts of volatility in energy prices and our exposure to credit risk relating to default or bankruptcy by our customers. Developments in any of these areas could cause our results to differ materially from results that have been or may be anticipated or projected. Forward-looking statements speak only as of the date they are made and we expressly disclaim any obligation or undertaking to update these statements to reflect any change in our expectations or beliefs or any change in events, conditions or circumstances on which any forward-looking statement is based.

Refer to Part I, Item 1A. of this Annual Report on Form 10-K for additional risks and uncertainties regarding our forward-looking statements.

3437

Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Interest Rate Risk

With the exception of our revolving credit facility, for which the interest rates are periodically reset, our debt has been issued at fixed rates. For fixed-rate debt, changes in interest rates affect the fair value of the debt instruments but do not directly affect our earnings or cash flows. The following table presents market risk associated with our fixed-rate, long-term debt at December 31, ~~2023~~2024 and ~~2022~~2023 (in millions, except interest rates):

	2023			2022
	2024			2023
Carrying amount of fixed-rate debt	$	3,~~237~~236.45		$	3,~~234~~237.04
Fair value of fixed-rate debt	$	3,~~130~~129.37		$	3,~~041~~130.43
100 basis point increase in interest rates and resulting fair value of debt decrease	$	~~116~~133.40		$	~~134~~116.14
100 basis point decrease in interest rates and resulting fair value of debt increase	$	~~123~~141.79		$	~~143~~123.17
Weighted-average interest rate	4.8495		%	4.84		%

At December 31, ~~2023~~2024, we had ~~$25.0~~no ~~million~~ outstanding debt under variable-rate agreements. atAt aDecember ~~weighted-average~~31, ~~interest~~2023, ~~rate~~we ofhad 6$25.~~71%.~~0 Amillion ~~100~~of ~~basis~~outstanding ~~point~~debt ~~increase~~under ~~in interest rates would increase our cash payments for interest on our~~ variable-rate ~~debt~~agreements byat ~~$0.3~~a ~~million~~weighted-average oninterest ~~an annualized basis. At December 31, 2022, we had no variable-~~rate ~~debt~~of ~~outstanding~~6.71%.

Commodity Risk

For the natural gas and NGLs (other than ethane supply services) ~~which~~that our pipelines transport and store, we do not take title to these products; therefore, we do not assume the related commodity price risk associated with these products. For our ethane supply services, which require us to enter into ethane sales and purchase agreements and take title to those products, the pricing contained in those purchase and sales agreements is generally based on the same ethane commodity index, plus a fixed delivery fee. As a result, except for possible timing differences that may occur when volumes are purchased in one month and sold in another month, our ethane supply services, like our other businesses, ~~result~~have ~~in us having~~ little to no direct commodity price exposure.

Credit Risk

Our credit exposure generally relates to receivables for services provided, as well as volumes owed by customers for imbalances or gas lent by us to them, generally under PAL and certain firm services. Natural gas price volatility can materially increase credit risk related to gas loaned to customers. We also have credit risk related to customers supporting some of our growth projects. If any significant customer of ours should have credit or financial problems resulting in a delay or failure to pay for services provided by us or repay gas they owe to us, this could have a material adverse effect on our business, financial condition, results of operations orand cash flows.

As of December 31, ~~2023~~2024, the amount of gas owed to our operating subsidiaries due to gas imbalances and gas loaned under PAL and certain firm service agreements was approximately 119.28 trillion British thermal units (TBtu). Assuming an average market price during December ~~2023~~2024 of $2.3398 per million British thermal unit (MMBtu), the market value of that gas was approximately $2629.2 million. As of December 31, 2024, the amount of NGLs owed to our operating subsidiaries due to imbalances was less than 0.1 million barrels, which had a market value of approximately $0.3 million. As of December 31, ~~2022~~2023, the amount of gas owed to our operating subsidiaries due to gas imbalances and gas loaned under PAL and certain firm service agreements was approximately 1311.32 TBtu. Assuming an average market price during December ~~2022~~2023 of $52.33 per MMBtu, the market value of that gas was approximately $7026.91 million. As of December 31, 2023, there were no outstanding NGLs imbalances owed to our operating subsidiaries. As of December 31, 2024 and ~~2022~~2023, there were no ~~outstanding~~amounts ~~NGL~~of ~~imbalances~~ethylene owed to our operating subsidiaries under exchange agreements.

3538

Item 8. Financial Statements and Supplementary Data

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Directors of Boardwalk GP, LLC and the Partners of Boardwalk Pipeline Partners, LP

Opinion on the Financial Statements

We have audited the accompanying consolidated balance sheets of Boardwalk Pipeline Partners, LP and subsidiaries (the "Company") as of December 31, ~~2023~~2024 and ~~2022~~December 31, 2023, the related consolidated statements of income, comprehensive income, ~~cash flows and~~ changes in partners' capital and cash flows, for each of the three years in the period ended December 31, ~~2023~~2024, and the related notes (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, ~~2023~~2024 and ~~2022~~2023, and the results of its operations and its cash flows for each of the three years in the period ended December 31, ~~2023~~2024, in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

Critical Audit ~~Matters~~Matter

The critical audit ~~matters~~matter communicated below ~~are~~is ~~matters~~a matter arising from the current-period audit of the financial statements that ~~were~~was communicated or required to be communicated to the audit council and that (1) ~~relate~~relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit ~~matters~~matter below, providing a separate ~~opinions~~opinion on the critical audit ~~matters~~matter or on the accounts or disclosures to which ~~they~~it ~~relate~~relates.

Goodwill — Refer to Notes 2 and 9 to the financial statements

Critical Audit Matter Description

Goodwill is tested for impairment at the reporting unit level at least annually as of November 30, or more frequently when events occur and circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. As of November 30, ~~2023~~2024, the Company performed a ~~quantitative~~qualitative ~~analysis~~assessment for its annual goodwill impairment test of its two reporting units. toThe ~~measure~~qualitative ~~whether~~assessment included the ~~fair~~Company’s ~~value~~consideration of, ~~either~~among ofother things, the ~~reporting~~overall ~~units~~macroeconomic isconditions, ~~less~~industry ~~than~~and ~~their~~market ~~carrying~~considerations, ~~amounts.~~current Ifdiscount ~~the~~rates ~~carrying~~and ~~amount~~valuation ofmultiples, aoverall ~~reporting~~financial ~~unit~~performance, ~~exceeds~~including ~~its~~operating ~~fair~~revenue, ~~value~~and other relevant company specific events. Based on the assessment of these items, anthe ~~impairment~~Company ~~loss~~concluded isthat ~~recognized~~it inis anmore ~~amount~~likely ~~equal~~than tonot that ~~excess,~~the ~~limited~~fair tovalue of the ~~total~~two ~~amount~~reporting units exceeded their respective carrying amounts. As of ~~goodwill~~December 31, 2024, the Company had recorded on ~~the~~its ~~reporting~~Consolidated ~~unit~~Balance Sheets $237.4 million of goodwill.

The fair value measurement of the reporting units is derived based on judgments and assumptions, including the use of a discounted cash flow model to estimate fair value and inputs to the valuation model. The inputs included the five-year financial plan operating results, including operating revenues, the long-term outlook for growth in natural gas and NGLs 39

36We identified goodwill for Boardwalk Pipeline Partners, LP as a critical audit matter because of the high degree of auditor judgment and an increased extent of effort when performing audit procedures to evaluate the reasonableness of management’s judgments and assumptions related to its assessment of the impact of macroeconomic conditions, operating revenues, valuation multiples, and current discount rates, including the need to involve fair value specialists, in determining whether it was more likely than not that the fair value of the Company’s reporting units was less than their respective carrying amounts.

demand, and the applied discount rate. The use of alternate judgments and assumptions could substantially change the results of the goodwill impairment analysis, including the recognition of an impairment charge in the Consolidated Statement of Income. The results of the quantitative goodwill impairment test indicated that the fair value of the Company's reporting units exceeded their carrying amounts and no goodwill impairment charges were recognized.

We identified goodwill for Boardwalk Pipeline Partners, LP as a critical audit matter because of the significant judgments made by management to estimate the fair value of each reporting unit. This required a high degree of auditor judgment and an increased extent of effort, including the need to involve fair value specialists, when performing audit procedures to evaluate the reasonableness of management's judgments and assumptions related to the applied discount rate, the long-term outlook for growth in natural gas and NGLs demand, and the Company's future estimated operating revenues within the five-year financial plan operating results.

How the Critical Audit Matter Was Addressed in the Audit

Our audit procedures related to management'’s ~~assumptions~~consideration ~~underlying~~of ~~the~~current ~~applied~~ discount rates, ~~the~~valuation ~~long-term~~multiples, ~~outlook~~impact ~~for~~of ~~growth~~macroeconomic ~~in natural gas and NGLs demand~~conditions, and the Company'’s future estimated operating revenues ~~within~~in its qualitative assessment of the ~~five-year~~fair ~~financial~~value ~~plan~~of ~~operating~~the ~~results~~Company’s two reporting units included the following, among others:

•We tested the effectiveness of controls over management'’s goodwill impairment ~~test~~qualitative assessment, ~~including~~which ~~controls~~included ~~over~~ management'’s ~~estimate~~review of ~~the~~qualitative ~~applied~~factors ~~discount~~affecting ~~rate, the long-term outlook for growth in natural gas and NGLs demand, and the future estimated operating revenues for~~ each reporting unit.

•We evaluated management'’s ability to accurately forecast future operating revenues by comparing, ~~actual~~for ~~results~~each toreporting unit, management'’s historical forecasts ~~for~~of ~~each~~operating ~~reporting~~revenue ~~unit~~to (a) actual operating revenues and to (b) current-period forecasts of future operating revenues.

•We ~~evaluated~~performed ~~the~~breakeven ~~reasonableness~~sensitivity ofanalyses ~~the~~over ~~future~~management’s ~~estimated~~projections ~~operating~~to ~~revenues~~evaluate ~~within~~sensitivity ~~the~~of ~~five-year~~key ~~financial~~assumptions ~~plan~~and ~~operating~~their ~~results~~effect byon ~~comparing~~fair ~~the forecasts to:~~ value.

•~~Historical~~We ~~operating~~considered ~~revenues~~the completeness of ~~the Company~~management’s ~~similar~~identification orof ~~existing~~qualitative ~~contracts~~factors as per ASC 350, affecting each reporting unit by considering other information obtained in our review of board minutes, inquiries with ~~customers~~management, substantive testing around operating revenues, and ~~average~~results ~~annual~~from ~~growth~~our ~~rates~~search for external evidence with respect to the impact of macroeconomic conditions.

•~~Forecasted~~With ~~information~~the inassistance ~~analyst~~of ~~and~~our ~~industry~~fair ~~reports~~value ~~for~~specialists, we evaluated the ~~Company~~reasonableness ~~and~~of ~~certain~~management’s consideration of ~~its~~current ~~peer~~discount ~~companies~~rates by developing a range of independent estimates of current discount rates for each reporting unit as of November 30, 2024, and comparing those to current discount rates selected by management within the qualitative assessment for each reporting unit.

•WeWith ~~evaluated~~the ~~contracts~~assistance ~~subject~~of toour ~~renewal~~fair ~~within~~value specialists, we evaluated the ~~five-year~~reasonableness ~~financial~~of ~~plan~~management’s consideration of valuation multiples by ~~making~~developing aindependent ~~selection~~valuation ofmultiples ~~contracts~~using ~~and~~guideline ~~assessing~~public ~~the~~companies ~~reasonableness~~in ofa ~~renewal~~similar ~~assumptions,~~industry ~~including~~for ~~rates~~each ~~and~~of ~~volumes~~the reporting units.

•With the assistance of our fair value specialists, we evaluated the reasonableness of the applied discount rate, and the long-term outlook for growth in natural gas and NGLs demand used as inputs to management's goodwill impairment test for each reporting unit by:

•Comparing the Company's estimate of the long-term outlook for growth in natural gas and NGLs demand for each reporting unit to industry reports and other market data.

•Developing a range of independent estimates of the applied discount rate for each reporting unit and comparing those to the applied discount rates selected by management for each reporting unit.

Acquisition — Purchase Price Allocation — Refer to Note 3 to the financial statements

Critical Audit Matter Description

The Company completed the acquisition of Williams Olefins Pipeline Holdco LLC ("Bayou Ethane") for cash consideration of $355.0 million on September 29, 2023. The Company accounted for the acquisition of Bayou Ethane as a business combination. Accordingly, the purchase price was allocated to the assets acquired and liabilities assumed based on their estimated fair values on the date of acquisition. The fair values for property, plant and equipment (PPE), including rights-of-way, were determined primarily using a combination of the market and cost approaches. The fair values for the customer-based intangibles were determined using a discounted cash flow analysis with inputs not observable in the market, such as estimated future cash flows and weighted average cost of capital rates, which were considered Level 3 fair value estimates.

We identified the acquisition of Bayou Ethane as a critical audit matter because of the estimates management made to determine the fair value of assets acquired and liabilities assumed. This required a high degree of auditor judgment and an increased extent of effort, including the need to involve fair value specialists, when performing audit procedures to evaluate the weighted average cost of capital and the fair value of acquired property, plant and equipment, including rights-of-way, and intangible assets.

How the Critical Audit Matter Was Addressed in the Audit

Our audit procedures related to the fair value of assets acquired and liabilities assumed for Bayou Ethane included the following, among others:

•We tested the effectiveness of controls over the purchase price allocation, including management's controls over the assumptions used in the valuation of the property, plant, and equipment, including rights-of-way, and intangible assets, including estimating the appraisal and fair value of the acquired property, plant and equipment and intangible assets, determination of the weighted average cost of capital, and reviewing the work of third-party specialists.

•With the assistance of our fair value specialists:

•We evaluated the reasonableness of selected valuation methodologies, and use of management's experts.

•We tested cost to acquire or construct comparable assets and the remaining useful lives used for the cost approach for property, plant and equipment, including rights-of-way, and compared such estimates to independent market information to determine reasonableness.

•We tested the methodology used for the valuation of intangible assets.

•We developed a range of independent estimates of the weighted average cost of capital and compared that to the weighted average cost of capital utilized by management.

/s/ Deloitte & Touche LLP

Houston, Texas

February 611, ~~2024~~2025

We have served as the Company's auditor since 2003.

3840

BOARDWALK PIPELINE PARTNERS, LP

CONSOLIDATED BALANCE SHEETS

(Millions)

	December 31,
ASSETS	~~2023~~2024		~~2022~~2023
Current Assets:
Cash and cash equivalents	$	20117.19	$	~~215~~20.61
Receivables:
Trade, net	~~204~~210.67		~~148~~204.46
Other	2421.94		2524.49
Gas transportation receivables	7.04		227.0
Gas stored underground and other product inventory	3.3		41.6
Prepayments	25.2		24.3
Prepayments	24.3		23.7
Other current assets	18.5		7.8
Other current assets	4.5		8.7
Total current assets	401.1		288.7
Total current assets	288.7		485.4
Property, Plant and Equipment:
Natural gas transmission and other plant	13,242.3		12,616.7
Pipelines, storage and other plant	13,667.7		13,242.3
Construction work in progress	~~287~~190.21		~~187~~287.62
Property, plant and equipment, gross	13,~~529~~857.58		1213,~~804~~529.35
Less—accumulated depreciation and amortization	45,~~672~~045.91		4,~~288~~672.39
Property, plant and equipment, net	8,~~856~~812.67		8,~~516~~856.06
Other Assets:
Goodwill	237.4		237.4
Gas stored underground	9998.3		~~153~~99.53
Other	~~214~~229.49		~~177~~214.64
Total other assets	~~551~~565.16		~~568~~551.51
Total Assets	$	9,~~696~~779.4	$	9,~~569~~696.94

The accompanying notes are an integral part of these consolidated financial statements.

3941

BOARDWALK PIPELINE PARTNERS, LP

CONSOLIDATED BALANCE SHEETS

(Millions)

	December 31,
LIABILITIES AND PARTNERS' CAPITAL	~~2023~~2024		~~2022~~2023
Current Liabilities:
Payables:
Trade	$	~~113~~100.29	$	70113.72
Affiliates	30.45		23.64
Other	1621.47		1716.4
Gas transportation payables	711.87		417.28
Accrued taxes, other	67.90		6267.89
Accrued interest	3446.27		3334.92
Accrued payroll and employee benefits	4448.06		3844.30
Regulatory liabilities	1518.13		5515.1
Other current liabilities	6030.32		5060.73
Total current liabilities	~~362~~345.36		~~372~~362.73
Long-term debt and finance lease obligation	3,~~261~~234.94		3,~~233~~261.49
Other Liabilities and Deferred Credits:
Pension liability	4.7		8.8
Asset retirement obligations	70.0		59.2
Asset retirement obligations	59.2		53.9
Provision for other asset retirement	103.6		98.1
Provision for other asset retirement	98.1		93.2
Payable to affiliate	4.8		—
Other	~~119~~115.10		~~105~~123.78
Total other liabilities and deferred credits	~~281~~293.14		~~261~~281.61
Commitments and Contingencies
Partners' Capital:
Partners' capital	5,~~867~~978.76		5,~~781~~867.7
Accumulated other comprehensive loss	(7672.6)		(7976.56)
Total partners' capital	5,~~791~~906.10		5,~~702~~791.21
Total Liabilities and Partners' Capital	$	9,~~696~~779.4	$	9,~~569~~696.94

The accompanying notes are an integral part of these consolidated financial statements.

4042

BOARDWALK PIPELINE PARTNERS, LP

CONSOLIDATED STATEMENTS OF INCOME

(Millions)

For the Year Ended December 31,

2023

2022

2021

2024

2023

2022

Operating Revenues:

Transportation

1,~~287~~361.03

1,~~228~~287.80

1,~~152~~228.68

Storage, parking and lending

~~160~~211.90

~~129~~160.29

~~110~~129.42

Product sales

~~100~~378.37

11100.13

11.71

Other

6977.51

6269.95

6562.49

Total operating revenues

12,~~617~~028.71

1,~~432~~617.07

1,~~340~~432.10

Operating Costs and Expenses:

Fuel and transportation

26.3

22.4

22.1

Costs associated with service revenues

29.1

26.3

22.4

Product costs

87.8

1.0

—

Costs associated with product sales

303.5

87.8

1.0

Operation and maintenance

~~281~~310.03

~~250~~281.90

~~226~~250.9

Administrative and general

~~171~~186.91

~~147~~171.79

~~144~~147.67

Depreciation and amortization

~~408~~424.78

~~392~~408.37

~~366~~392.3

Loss (gain) on sale of assets, impairments and other

0.3

4.0

(0.1)

(Gain) loss on sale of assets, impairments and other

(5.5)

0.3

4.0

Taxes other than income taxes

~~115~~122.51

~~114~~115.5

~~113~~114.25

Total operating costs and expenses

1,~~091~~370.54

~~932~~1,091.85

~~873~~932.08

Operating income

~~526~~657.27

~~499~~526.2

~~467~~499.12

Other Deductions (Income):

Interest expense

~~155~~182.69

~~165~~155.96

~~160~~165.89

Interest income

(1231.1)

(312.31)

—(3.3)

Miscellaneous other income, net

(46.1)

(6.4.1)

(96.4)

Total other deductions

~~139~~145.47

~~156~~139.24

~~151~~156.42

Income before income taxes

~~386~~512.80

~~343~~386.08

~~315~~343.70

Income taxes

01.81

0.8

0.78

Net income

~~386~~510.09

~~342~~386.20

~~315~~342.02

The accompanying notes are an integral part of these consolidated financial statements.

4143

BOARDWALK PIPELINE PARTNERS, LP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Millions)

	For the Year Ended December 31,
	2023		2022		2021
	2024		2023		2022
Net income	$	~~386~~510.09	$	~~342~~386.20	$	~~315~~342.02
Other comprehensive income (loss):
Reclassification adjustment transferred to Net income from cash flow hedges	0.1		0.51		0.95
Pension and other postretirement benefit costs, net of tax	23.89		(72.4)8		6(7.34)
Total Comprehensive Income	$	~~388~~514.9	$	~~335~~388.39	$	~~322~~335.23

The accompanying notes are an integral part of these consolidated financial statements.

4244

BOARDWALK PIPELINE PARTNERS, LP

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Millions)

	For the Year Ended December 31,
	2023		2022		2021
	2024		2023		2022
OPERATING ACTIVITIES:
Net income	$	~~386~~510.09	$	~~342~~386.20	$	~~315~~342.02
Adjustments to reconcile net income to cash provided by operations:
Depreciation and amortization	~~408~~424.78		~~392~~408.37		~~366~~392.3
Amortization of deferred costs and other	1813.58		418.05		94.0
Loss (gain) on sale of assets, impairments and other	0.3		4.0		(0.1)
(Gain) loss on sale of assets, impairments and other	(5.5)		0.3		4.0
Interest income from short-term investments	(19.8)		—		—
Changes in operating assets and liabilities:
Trade and other receivables	(72.8)		(~~16.~~7.8)		(1916.17)
Gas transportation receivables, storage assets and other product inventory	70(15.62)		~~(63~~70.4)6		(3263.84)
Prepayments and other assets	3(7.17)		(93.8)1		(29.78)
Trade and other payables	11.59		1511.65		115.16
Other payables, affiliates	0.1		(0.2)1		—(0.2)
Gas transportation payables	(~~20.~~8.6)		21(20.08)		921.30
Accrued liabilities	717.41		(07.9)4		(10.39)
Regulatory assets and liabilities	~~(40~~2.3)7		49(40.3)		(449.1)3
Other liabilities	(1921.92)		(1019.69)		(1110.36)
Net cash provided by operating activities	~~817~~900.45		~~726~~817.84		~~629~~726.38
INVESTING ACTIVITIES:
Capital expenditures	(~~382~~392.4)		(~~344~~382.34)		(~~349~~344.23)
Proceeds from sale of operating assets	0.35		10.53		1.75
Acquisition of business	~~(355.0)~~—		—(355.0)		—
Net cash used in investing activities	(737.1)		(342.8)		(347.5)
Purchases of short-term investments	(1,102.2)		—		—
Proceeds from the maturity of short-term investments	1,122.0		—		—
Net cash used in investing activities	(372.1)		(737.1)		(342.8)
FINANCING ACTIVITIES:
Proceeds from long-term debt, net of issuance cost	—593.5		~~495.0~~—		—495.0
Repayment of borrowings from long-term debt	—(600.0)		~~(600.0)~~—		—(600.0)
Proceeds from borrowings on revolving credit facility	~~155~~170.0		—155.0		~~150.0~~—
Repayments of borrowings on revolving credit facility, including financing fees	(~~130~~195.60)		(0130.6)		(~~284~~0.46)
Principal payment of finance lease obligation	(0.9)		(0.89)		(0.8)
Advances from affiliates	01.78		10.17		(81.2)1
Distributions paid	(~~300~~400.0)		(~~102~~300.20)		(102.2)
Net cash used in financing activities	(~~275~~430.86)		(~~207~~275.58)		(~~245~~207.65)
(Decrease) increase in cash and cash equivalents	(195.5)		176.5		36.2
Increase (decrease) in cash and cash equivalents	97.8		(195.5)		176.5
Cash and cash equivalents at beginning of period	~~215~~20.61		39215.16		239.91
Cash and cash equivalents at end of period	$	20117.19	$	~~215~~20.61	$	39215.16

The accompanying notes are an integral part of these consolidated financial statements.

4345

BOARDWALK PIPELINE PARTNERS, LP

CONSOLIDATED STATEMENTS OF CHANGES IN PARTNERS' CAPITAL

(Millions)

	Partners'Capital		Accumulated Other Comprehensive ~~Income~~ (Loss) Income		Total Partners' Capital
Balance December 31, 2020	$	5,328.9	$	(79.8)	$	5,249.1
Add (deduct):
Net income	315.0		—		315.0
Distributions paid	(102.2)		—		(102.2)
Other comprehensive income, net of tax	—		7.2		7.2
Balance December 31, 2021	$	5,541.7	$	(72.6)	$	5,469.1
Add (deduct):
Net income	342.2		—		342.2
Distributions paid	(102.2)		—		(102.2)
Other comprehensive loss, net of tax	—		(6.9)		(6.9)
Balance December 31, 2022	$	5,781.7	$	(79.5)	$	5,702.2
Add (deduct):
Net income	386.0		—		386.0
Distributions paid	(300.0)		—		(300.0)
Other comprehensive income, net of tax	—		2.9		2.9
Balance December 31, 2023	$	5,867.7	$	(76.6)	$	5,791.1
Add (deduct):
Net income	510.9		—		510.9
Distributions paid	(400.0)		—		(400.0)
Other comprehensive income, net of tax	—		4.0		4.0
Balance December 31, 2024	$	5,978.6	$	(72.6)	$	5,906.0

The accompanying notes are an integral part of these consolidated financial statements.

4446

BOARDWALK PIPELINE PARTNERS, LP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Note 1: Corporate Structure

Boardwalk Pipeline Partners, LP (the Company) is a Delaware limited partnership formed in 2005 to own and operate the business conducted by its primary subsidiary Boardwalk Pipelines, LP (Boardwalk Pipelines) and its operating subsidiaries, Gulf South Pipeline Company, LLC (Gulf South), Texas Gas Transmission, LLC (Texas Gas), Boardwalk Louisiana Midstream, LLC (Louisiana Midstream), Boardwalk Louisiana Gas Transmission, LLC, Boardwalk Texas Intrastate, LLC, Boardwalk Petrochemical Pipeline, LLC (Boardwalk Petrochemical), and Boardwalk Ethane Pipeline Company, LLC (together, the operating subsidiaries), which consists of integrated pipeline and storage systems for natural gas and natural gas liquids, olefins and other hydrocarbons (herein referred to together as NGLs). All of the Company's operations are conducted by the operating subsidiaries.

As of December 31, ~~2023~~2024, Boardwalk Pipelines Holding Corp. (BPHC), a wholly owned subsidiary of Loews Corporation (Loews), owned directly or indirectly, 100% of the Company's capital.

Note 2: Basis of Presentation and Significant Accounting Policies

Basis of Presentation

The accompanying consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (U.S.) (GAAP). Certain amounts reported in Other revenues and Fuel and transportation expense were reclassified to Product sales and Product costs to conform to the current presentation in connection with the acquisition discussed in Note 3. The amounts reclassified represent NGL product sales that occurred during 2022 and 2021. The effect of the reclassification was a decrease in Other revenues and an increase in Product sales of $11.1 million and $11.7 million for the years ended December 31, 2022 and 2021, and a decrease in Fuel and transportation expense and an increase in Product costs of $1.0 million and an immaterial amount for the years ended December 31, 2022 and 2021. These reclassifications had no impact on Total operating revenues, Operating income or Net income.

Principles of Consolidation

The consolidated financial statements include the Company's accounts and those of its wholly owned subsidiaries after elimination of intercompany transactions.

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, disclosure of contingent assets and liabilities and the fair values of certain items. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, which form the basis for making judgments about the carrying amounts of assets and liabilities that are not readily apparent from other sources. Actual results could differ from such estimates.

Segment Information

The Company ~~operates~~determines inits ~~one~~operating and reportable ~~segment~~segments -based on how the ~~operation~~Chief ofOperating ~~interstate~~Decision ~~natural~~Maker ~~gas~~(CODM), ~~and~~who ~~NGLs~~is ~~pipeline~~the ~~systems~~Chief Executive Officer (CEO), reviews and ~~integrated~~manages ~~storage~~the ~~facilities~~business, including determining how to allocate resources and assess performance. ~~This~~Historically, ~~segment~~the ~~consists~~Company ofconcluded ~~interstate~~that ~~natural~~it ~~gas~~had ~~pipeline~~a ~~systems~~single ~~located~~operating and reportable segment. Due to changes in its internal reporting and the ~~Gulf~~information ~~Coast~~evaluated ~~region,~~by ~~Oklahoma,~~the ~~Arkansas~~CODM, ~~Tennessee,~~the ~~Kentucky,~~Company ~~Illinois,~~concluded ~~Indiana~~that ~~and~~it ~~Ohio~~operated ~~and~~in ~~integrated~~three ~~natural~~operating ~~gas~~segments ~~storage~~as ~~facilities~~of ~~located~~December 31, 2024. The Company reported the financial results in ~~Indiana,~~two ~~Kentucky,~~reportable ~~Louisiana~~segments ~~and~~because ~~Mississippi,~~two ~~and~~operating ~~NGLs~~segments ~~pipelines~~met ~~and~~the ~~storage~~aggregation ~~facilities~~criteria ~~located~~to inbe ~~Louisiana~~reported as one reportable segment. The Company’s two reportable segments are Natural Gas and ~~Texas~~Natural Gas Liquids.

Note 18 contains more information about the Company’s segment information, including the 2023 and 2022 financial information presented under the 2024 reportable segment presentation.

Regulatory Accounting

Most of the Company's natural gas pipeline subsidiaries and its interstate ethane transportation pipeline are regulated by the Federal Energy Regulatory Commission (FERC). When certain criteria are met, GAAP requires that certain rate-regulated entities account for and report assets and liabilities consistent with the economic effect of the manner in which independent third-party regulators establish rates (regulatory accounting). This basis of accounting is applicable to operations of

4547

~~independent third-party regulators establish rates (regulatory accounting). This basis of accounting is applicable to operations of~~ the Company's Texas Gas subsidiary, which records certain costs and benefits as regulatory assets and liabilities in order to provide for recovery from or refunds to customers in future periods, but is not applicable to the operations associated with the Fayetteville and Greenville Laterals due to rates charged under negotiated rate agreements and a portion of Texas Gas' storage capacity due to the regulatory treatment associated with the rates charged for that capacity.

The Company also applies regulatory accounting for its fuel trackers on Gulf South, under which the value of fuel received from customers paying the maximum tariff rate and the related value of fuel used in transportation are recorded to a regulatory asset or liability depending on whether Gulf South uses more fuel than it collects from customers or collects more fuel than it uses. Other than as described for Texas Gas and for the fuel trackers on Gulf South, regulatory accounting is not applicable to the Company's other FERC-regulated operations.

The Company monitors the regulatory and competitive environment in which it operates to determine whether its regulatory assets continue to be probable of recovery. If the Company determines that all or a portion of its regulatory assets no longer meets the criteria for recognition as regulatory assets, that portion which is not recoverable will be written off, net of any regulatory liabilities.

Note 11 contains more information regarding the Company's regulatory assets and liabilities.

Fair Value Measurements

Fair value refers to an exit price that would be received to sell an asset or paid to transfer a liability in an orderly transaction in the principal market in which the reporting entity transacts based on the assumptions market participants would use when pricing the asset or liability assuming its highest and best use. A fair value hierarchy has been established that prioritizes the information used to develop those assumptions giving priority, from highest to lowest, to quoted prices in active markets for identical assets and liabilities (Level 1); observable inputs not included in Level 1, for example, quoted prices for similar assets and liabilities (Level 2); and unobservable data (Level 3), for example, a reporting entity's own internal data based on the best information available in the circumstances. The Company uses fair value measurements to account for ~~business combinations,~~ equity securities, asset retirement obligations (ARO), pension and postretirement benefits other than pension (PBOP) assets and any impairment charges.

Notes 3, 7 and 13 contain more information regarding fair value measurements.

Cash and Cash Equivalents

Cash equivalents are highly liquid investments with an original maturity of three months or less and are stated at cost plus accrued interest, which approximates fair value. The Company had no restricted cash at December 31, ~~2023~~2024 and ~~2022~~2023.

Short-Term Investments

During 2024, the Company invested in U.S. treasury bills that were classified as held-to-maturity short-term investments and matured in December 2024. Income related to the U.S. treasury bills was recorded in Interest Income on the Consolidated Statements of Income. The Company had no outstanding short-term investments as of December 31, 2024 and 2023.

Trade and Other Receivables

Trade and other receivables are stated at their historical carrying amount, net of allowances for doubtful accounts. The Company establishes an allowance for doubtful accounts under an expected credit loss model based on historical credit loss experience and specific facts and circumstances. Uncollectible receivables are written off when a settlement is reached for an amount that is less than the outstanding historical balance or a receivable amount is deemed otherwise unrealizable.

Gas Stored Underground and Gas Receivables and Payables

Certain of the Company's operating subsidiaries have underground gas in storage which is utilized for system management and operational balancing, as well as for services including firm and interruptible storage associated with certain no-notice and parking and lending (PAL) services. Gas stored underground includes the historical cost of natural gas volumes owned by the operating subsidiaries, at times reduced by certain operational encroachments upon that gas.

The operating subsidiaries provide storage services whereby they store natural gas or NGLs on behalf of customers and also periodically hold customer gas under PAL services. Since the customers retain title to the gas held by the Company in providing these services, the Company does not record the related gas on the Consolidated Balance Sheets. Certain of the Company's operating subsidiaries also periodically lend gas and NGLs to customers.

In the course of providing transportation and storage services to customers, the operating subsidiaries may receive different quantities of gas from shippers and operators than the quantities delivered on behalf of those shippers and operators. This results in transportation and exchange gas receivables and payables, commonly known as imbalances, which are primarily settled in cash or the receipt or delivery of gas in the future. Settlement of imbalances requires agreement between the pipelines and shippers or operators as to allocations of volumes to specific transportation contracts and timing of delivery of gas based on operational conditions. The receivables and payables are valued at market price for operations where regulatory accounting is not applicable and are valued at the historical value of gas in storage for operations where regulatory accounting is applicable.

46Product Inventory

~~This~~Product ~~results~~inventory, inprimarily ~~transportation~~ethane ~~and~~used ~~exchange~~in ~~gas~~the ~~receivables~~Company’s ~~and~~ethane ~~payables,~~supply ~~commonly known as imbalances~~services, ~~which~~is ~~are~~included ~~primarily~~in ~~settled~~Other inCurrent ~~cash~~Assets oron the ~~receipt~~Consolidated orBalance ~~delivery of gas in the future~~Sheets. ~~Settlement~~Product ofinventory ~~imbalances~~is ~~requires~~recorded ~~agreement~~at ~~between~~ the ~~pipelines~~lower ~~and~~of ~~shippers~~weighted-average cost or ~~operators~~net asrealizable tovalue. ~~allocations~~At ofDecember ~~volumes~~31, to2024 ~~specific transportation contracts~~ and ~~timing~~2023, ofthe ~~delivery~~Company ofheld ~~gas based on operational conditions~~$12. ~~The~~7 ~~receivables~~million and ~~payables~~$2.4 ~~are~~million ~~valued at market price for operations where regulatory accounting is not applicable and are valued at the historical value~~ of ~~gas~~product ~~in storage for operations where regulatory accounting is applicable~~inventory.

Materials and Supplies

Materials and supplies are carried at average cost and are included in Other Assets on the Consolidated Balance Sheets. The Company expects its materials and supplies to be used for projects related to its property, plant and equipment (PPE) and for future growth projects. At December 31, ~~2023~~2024 and ~~2022~~2023, the Company held approximately $3842.14 million and $3438.31 million of materials and supplies.

Property, Plant and Equipment and Repair and Maintenance Costs

PPE is recorded at its original cost of construction or fair value of assets purchased. Construction costs and expenditures for major renewals and improvements which extend the lives of the respective assets are capitalized. Construction work in progress is included in the financial statements as a component of PPE. Repair and maintenance costs are expensed as incurred.

Depreciation of PPE related to operations for which regulatory accounting does not apply is provided for using the straight-line method of depreciation over the estimated useful lives of the assets, which range from 3 to 35 years. The ordinary sale or retirement of PPE for these assets could result in a gain or loss being recorded in the income statement. Depreciation of PPE related to operations for which regulatory accounting is applicable is provided for primarily on the straight-line method at FERC-prescribed rates over estimated useful lives of 5 to 62 years. Reflecting the application of composite depreciation, gains and losses from the ordinary sale or retirement of PPE for these assets are not recognized in earnings and generally do not impact PPE, net.

Note 8 contains more information regarding the Company's PPE.

Goodwill and Intangible Assets

Goodwill represents the excess of the cost of an acquisition over the fair value of the net identifiable assets acquired and liabilities assumed. Goodwill is tested for impairment at the reporting unit level at least annually, as of November 30, or more frequently when events occur and circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. A reporting entity may perform an optional qualitative assessment on an annual basis to determine whether events occurred or circumstances changed that would more likely than not reduce the fair value of a reporting unit below its carrying amount. If an initial qualitative assessment identifies that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, or the optional qualitative assessment is not performed, a quantitative analysis is performed. The quantitative goodwill impairment test is performed by calculating the fair value of the reporting unit and comparing it to the reporting unit's carrying amount. If the fair value of a reporting unit exceeds its carrying amount, goodwill of the reporting unit is not impaired. However, if the carrying amount of a reporting unit exceeds its fair value, an impairment loss is recognized in an amount equal to that excess, limited to the total amount of goodwill recorded on the reporting unit.

Intangible assets are those assets which provide future economic benefit but have no physical substance. The Company recorded intangible assets for customer relationships obtained through its acquisitions. The customer relationships, which are included in Other Assets on the Consolidated Balance Sheets, have a finite life and are being amortized over their estimated useful lives.49

~~Notes~~Intangible 3assets ~~and~~are 9those ~~contains~~assets ~~more~~which ~~information~~provide ~~regarding~~future ~~the~~economic ~~Company's~~benefit ~~goodwill~~but ~~and~~have no physical substance. The Company recorded intangible assets for customer relationships obtained through its acquisitions. The customer relationships, which are included in Other Assets on the Consolidated Balance Sheets, have a finite life and are being amortized over their estimated useful lives, which is generally 35 years.

Note 9 contains more information regarding the Company's goodwill and intangible assets.

Impairment of Long-lived Assets (including Tangible and Definite-lived Intangible Assets)

The Company evaluates its long-lived and intangible assets for impairment when, in management's judgment, events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. When such a determination has been made, management's estimate of undiscounted future cash flows attributable to the remaining economic useful life of the asset (or asset group) is compared to the carrying amount of the asset (or asset group) to determine whether an impairment has occurred. If an impairment of the carrying amount has occurred, the amount of impairment recognized in the financial statements is determined by estimating the fair value of the assets (or asset group) and recording a loss to the extent that the carrying amount exceeds the estimated fair value.

financial statements is determined by estimating the fair value of the assets (or asset group) and recording a loss to the extent that the carrying amount exceeds the estimated fair value.

Capitalized Interest and Allowance for Funds Used During Construction (AFUDC)

The Company records capitalized interest, which represents the cost of borrowed funds used to finance construction activities for operations where regulatory accounting is not applicable. The Company records AFUDC, which represents the cost of funds, including equity funds, applicable to regulated natural gas transmission plant under construction as permitted by FERC regulatory practices, in connection with the Company's operations where regulatory accounting is applicable. Capitalized interest and the allowance for borrowed funds used during construction are recognized as a reduction to Interest expense and the allowance for equity funds used during construction is included in Miscellaneous other income, net on the Consolidated Statements of Income. The following table summarizes capitalized interest and the allowance for borrowed funds and allowance for equity funds used during construction (in millions):

	For the Year EndedDecember 31,
	2023		2022		2021
	2024		2023		2022
Capitalized interest and allowance for borrowed funds used during construction	$	35.65	$	23.26	$	32.82
Allowance for equity funds used during construction	54.75		65.27		76.92

Income Taxes

The Company is not a taxable entity for federal income tax purposes. As such, it does not directly pay federal income tax. The Company's taxable income or loss, which may vary substantially from the net income or loss reported on the Consolidated Statements of Income, is includable in the federal income tax returns of each of its partners. The aggregate difference in the basis of the Company's net assets for financial and income tax purposes is $5.67 billion. The subsidiaries of the Company directly incur some income-based state taxes which are presented in Income taxes on the Consolidated Statements of Income.

Note 14 contains more information regarding the Company's income taxes.

Asset Retirement Obligations

The accounting requirements for existing legal obligations associated with the future retirement of long-lived assets require entities to record the fair value of a liability for an ARO in the period during which the liability is incurred. The liability is initially recognized at fair value and is increased with the passage of time as accretion expense is recorded, until the liability is ultimately settled. The accretion expense is included within Operation and maintenance costs on the Consolidated Statements of Income. An amount corresponding to the amount of the initial liability is capitalized as part of the carrying amount of the related long-lived asset and depreciated over the useful life of that asset.

Note 10 contains more information regarding the Company's ARO.

Environmental Liabilities

The Company records environmental liabilities based on management's estimates of the undiscounted future obligation for probable costs associated with environmental assessment and remediation of operating sites. These estimates are based on evaluations and discussions with counsel and operating personnel and the current known facts and circumstances related to these environmental matters.

Note 6 contains more information regarding the Company's environmental liabilities.

Defined Benefit Plans

The Company maintains postretirement benefit plans for certain employees. The Company funds these plans through periodic contributions which are invested until the benefits are paid out to the participants, and records an asset or liability based on the overfunded or underfunded status of the plan. The net benefit costs of the plans are recorded on the Consolidated Statements of Income. Any deferred amounts related to unrecognized gains and losses or changes in actuarial assumptions are recorded as either a regulatory asset or liability or recorded as a component of accumulated other comprehensive income until those gains or losses are recognized on the Consolidated Statements of Income.

recorded as either a regulatory asset or liability or recorded as a component of accumulated other comprehensive income until those gains or losses are recognized on the Consolidated Statements of Income.

Note 13 contains more information regarding the Company's pension and other postretirement benefit obligations.

Long-Term Compensation

The Company provides performance awards (Performance Awards) to certain of its employees under its 2018 Long-Term Incentive Plan (2018 LTIP). A Performance Award is a long-term incentive award with a stated target amount which is payable in cash, after certain adjustments, upon vesting based on certain specified performance criteria being met.

The Company measures the cost of an award issued in exchange for employee services based on the stated target amount for Performance Awards. All outstanding awards are required to be settled in cash and are classified as a liability until settlement. The related compensation expense, less forfeitures, is recognized over the period that employees are required to provide services in exchange for the awards, usually the vesting period.

Note 13 contains more information regarding the Company's long-term compensation.

Partner Capital Accounts

For purposes of maintaining capital accounts, items of income and loss of the Company are allocated among the partners each period, or portion thereof, in accordance with the partnership agreement, based on their respective ownership interests.

Leases

Operating lease right-of-use assets and lease liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. The discount rate used to determine the commencement date present value of lease payments is typically the Company's secured borrowing rate, as the implicit rate of most of the Company's leases is not readily determinable. The Company has elected not to record any leases with terms of twelve months or less on the Consolidated Balance Sheets.

Note 5 contains more information regarding the Company's leases.

Revenue Recognition

Nature of Contracts

The Company primarily earns revenues from contracts with customers by providing transportation and storage services for natural gas and NGLs on a firm and interruptible basis and providing ethane supply and transportation services for industrial customers in Louisiana and Texas. The Company also provides interruptible natural gas PAL services. The Company's customers choose, based upon their particular needs, the applicable mix of services depending upon availability of pipeline and storage capacity, the price of services and the volume and timing of customer requirements. The maximum applicable rates that ~~may be charged by~~ the majority of the Company's operating subsidiaries ~~are~~may ~~established~~charge ~~through the FERC's cost-based rate-making process; however, the FERC also allows~~ for ~~discounted~~their orservices ~~negotiated~~are ~~rates~~established asthrough ~~an alternative to cost-based rates. Under~~ the FERC ~~regulations, certain revenues that the Company~~'s subsidiaries collect may be subject to possible refunds to customers. Accordingly, during a rate case, estimated refund liabilities are recorded considering regulatory proceedings, advice of counsel and estimated riskcost-adjusted total exposure, as well as other factors. The Company's service contracts can range from one to twenty years although the Company may enter into shorter- or longer-term contracts, and services are invoiced monthly with payment from the customer generally expected within ten to thirty days, depending on the terms of the contract. For the ethane supply contracts, the purchases and sales are with different counterparties and control transfers at different receipt and delivery points, resulting in the purchases and sales being presented on a gross basis in the Consolidated Statements of Income.

Firm Service Contracts: The Company offers firm services to its customers. The Company's customers can reserve a specific amount of pipeline capacity at specified receipt and delivery points on the Company's pipeline system (transportation service) or can reserve a specific amount of storage capacity at specified injection and withdrawal points at the Company's storage facilities (storage service). The Company accounts for firm services as a single promise to stand ready each month of the contract term to provide the committed capacity for either transportation or storage services when needed by the customer, which represents a series of distinct monthly services that are substantially the same with the same pattern of transfer to the customer. Although several activities may be required to provide the firm service, the individual activities do not represent 51

49based rate-making process; however, the FERC also allows for discounted or negotiated rates as an alternative to cost-based rates. Under the FERC regulations, certain revenues that the Company's subsidiaries collect may be subject to possible refunds to customers. Accordingly, during a rate case, estimated refund liabilities are recorded considering regulatory proceedings, advice of counsel and estimated risk-adjusted total exposure, as well as other factors. The Company's service contracts can range from one to twenty years although the Company may enter into shorter- or longer-term contracts, and services are invoiced monthly with payment from the customer generally expected within ten to thirty days, depending on the terms of the contract. For the ethane supply contracts, the purchases and sales are with different counterparties and control transfers at different receipt and delivery points, resulting in the purchases and sales being presented on a gross basis in the Consolidated Statements of Income.

The transaction price for firm service contracts is comprised of a fixed fee based on the quantity of capacity reserved, regardless of use (capacity reservation fee), plus variable fees in the form of a usage fee paid on the volume of commodity actually transported or injected and withdrawn from storage. Both the fixed and usage fees are allocated to the single performance obligation of providing transportation or storage service and recognized over time based upon the output measure of time as the Company completes its stand-ready obligation to provide contracted capacity and the customer receives and consumes the benefit of the reserved capacity, which corresponds with the transfer of control to the customer. The fixed fee is recognized ratably over the contract term, representative of the proportion of the committed stand-ready capacity obligation that has been fulfilled to date, and the usage fee is recognized upon satisfaction of each distinct monthly performance obligation, consistent with the allocation objective and based upon the level of effort required to satisfy the stand-ready obligation in a given month. Capacity reservation revenues derived from a firm service contract are generally consistent during the contract term, but can be higher in winter periods than the rest of the year based upon seasonal rates.

Interruptible Service Contracts: In providing interruptible services to customers, the Company agrees to transport or store natural gas or NGLs for a customer when capacity is available. The Company does not account for interruptible services with a customer as a contract until the customer nominates for service and the Company accepts the nomination based upon available pipeline or storage capacity or product availability because there are no enforceable rights and obligations until that time. The nomination and acceptance process is a daily activity and acceptance is granted based upon priority of service and availability of capacity and products. Upon acceptance, the Company accounts for interruptible services similarly to its firm services.

The transaction price for interruptible service contracts is comprised of a variable fee in the form of a usage fee paid on the volume of commodity actually transported or injected and withdrawn from storage. The transaction price is allocated to the single performance obligation of providing interruptible service. Interruptible service revenues for natural gas transportation and storage are generally recognized over time based on the output measure of volume transported or stored when services are rendered upon the successful allocation of the services provided to the customer's account, which best depicts the transfer of control to the customer and satisfaction of the promised service. Interruptible services are recognized in the month services are provided because the Company has a right to consideration from customers in amounts that correspond directly to the value that the customer receives from the Company's performance. The rates charged may vary on a daily, monthly or seasonal basis.

Minimum Volume Commitment (MVC) Contracts: Certain of the Company's transportation, storage or ethane supply contracts require customers to transport, store or purchase a minimum volume of commodity over a specified time period. If a customer fails to meet its MVC for the specified time period, the customer is obligated to pay a contractually-determined deficiency fee based upon the shortfall between the actual volumes transported, stored or purchased and the MVC for that period. MVC contracts are generally similar in nature to a firm service contract where the performance obligation is a stand-ready obligation that is a series of distinct services that are substantially the same with the same pattern of transfer to the customer. The transaction price for a MVC is a fee for the volume of commodity actually transported, stored or delivered, which is allocated to each distinct monthly performance obligation, consistent with the allocation objective and based upon the level of effort required to satisfy the obligation of the transacted activities in a given month. Revenues associated with transportation and storage services are generally recognized over time based on the output measure of volume transported or stored and revenues associated with ethane supply are generally recognized at a point in time based on barrels delivered, with the recognition of the deficiency fee in the period when it is known the customer cannot make up the deficient volume in the specified period.

stored and revenues associated with ethane supply are generally recognized at a point in time based on barrels delivered, with the recognition of the deficiency fee in the period when it is known the customer cannot make up the deficient volume in the specified period.

Other: Certain ethane supply contracts include a stated volume that the Company supplies to customers, and any volume requested above the stated volume is based on product availability. Revenues for these ethane supply contracts are generally recognized at a point in time when each barrel is transferred to the customer because the customer is able to direct the use of, and obtain substantially all of the remaining benefits from, the product at that time. Periodically, the Company may also enter into contracts with customers for the sale of natural gas or NGLs. The Company recognizes revenues for these transactions at the point in time of the physical sale of the commodity, which corresponds with the transfer of control of the commodity to the customer and the consideration is measured as the stated sales price in the contract.

Contract Balances

The Company records contract assets primarily related to performance obligations completed but not billed, or partially billed, as of the reporting date. The Company records contract liabilities, or deferred revenue, when payment is received in advance of satisfying its performance obligations.

Note 3: Acquisition

On September 29, 2023, Boardwalk Resources Company, LLC, a wholly owned subsidiary of the Company, acquired 100% of the equity interests of Williams Olefins Pipeline Holdco LLC, renamed Boardwalk Ethane Pipeline Holdco, LLC (Bayou Ethane) after the acquisition, from Williams Field Services Group, LLC for $355.0 million in cash~~, including working capital~~. ~~Bayou~~The ~~Ethane~~acquisition ~~owns~~was anaccounted ~~approximately~~for ~~380-mile~~as ~~pipeline~~a ~~system~~business ~~that~~combination. ~~transports~~For ~~ethane~~the ~~from~~year ~~Mont~~ended ~~Belvieu~~December 31, ~~Texas~~2023, to the ~~Mississippi~~acquisition ~~River~~contributed ~~corridor in Louisiana and two 15-mile pipelines in the Houston Ship Channel area that carry ammonia and hydrogen chloride~~$101.5 million Bayou Ethane provides ethane supply and transportation services for industrial customers in Louisiana and Texas. In providing ethane supply services, Bayou Ethane purchases ethane at Mont Belvieu and various locations in Louisiana and utilizes its pipeline to ~~deliver supply to its customers. The acquisition allows~~ the Company's tooperating ~~extend~~revenues ~~its assets, diversify its customer base~~ and ~~service~~$5.5 million ~~offerings and~~ to ~~complement~~net ~~its existing NGLs operations~~income. ~~The purchase price was funded with available cash on hand.~~

The acquisition was accounted for as a business combination. The purchase price was allocated to the assets acquired and liabilities assumed based on their estimated fair values on the date of acquisition. The fair values for PPE, including rights-of-way, were determined primarily using a combination of the market and cost approaches. The fair values for the customer-based intangibles were determined using a discounted cash flow analysis with inputs not observable in the market, such as estimated future cash flows and weighted-average cost of capital rates, which were considered Level 3 fair value estimates. During the fourth quarter 2023, the purchase price allocation was finalized. The final fair values of the assets acquired and liabilities assumed as of September 29, 2023, the acquisition date, were as follows (in millions):

Current assets	$	51.8
Property, plant and equipment	296.2
Customer-based intangibles (1)	33.9
Noncurrent assets	0.5
Total assets acquired	382.4
Current liabilities	26.7
Noncurrent liabilities	0.7
Total liabilities assumed	27.4
Net assets acquired	$	355.0

(1)Customer-based intangibles have a weighted-average useful life of 35 years and are recorded in Other Assets.

For the year ended December 31, 2023, the acquisition contributed $101.5 million and $5.5 million to the Company's operating revenues and net income. The Company incurred an immaterial amount of acquisition costs related to the acquisition for the year ended December 31, 2023. Acquisition costs were expensed as incurred and are recorded in Administrative and general on the Consolidated Statements of Income.

Pro Forma Financial Information (unaudited)

The following unaudited pro forma results of operations of the Company are presented as if the acquisition occurred on January 1, 2022. Such results are not necessarily indicative of future results. These pro forma results also do not reflect any cost savings, operating synergies or revenue enhancements that the Company may achieve or the costs necessary to achieve those objectives (in millions):


	Pro Forma
	For the Year Ended December 31,
	2023		2022
Operating revenue	$	1,962.8	$	2,253.4
Net income	393.8		357.4

	Pro Forma
	For the Year Ended December 31,
	2023		2022
Operating revenue (1)(2)	$	1,962.8	$	2,253.4
Net income (2)	393.8		357.4

(1)Bayou Ethane provides ethane supply services, which result in ethane sales and purchases being presented on a gross basis in the Consolidated Statements of Income.

(2)The average ethane price of $0.25 per gallon for the year ended December 31, 2023, was lower as compared to $0.48 per gallon for the comparable period for 2022, which resulted in higher revenues in the 2022 period.

The pro forma information was adjusted for the following items:

•~~Revenues~~Operating revenues and ~~operating~~expenses ~~costs~~ were based on actual results for the periods indicated. Acquisition costs were not material and were excluded; and

•Depreciation and amortization expense was calculated using PPE and intangible asset amounts as determined by the purchase price allocation and estimated useful lives.

Note 4: Revenues

The Company ~~operates in one reportable segment. It~~ contracts directly with end-use customers, including electric power generators, local distribution companies, industrial users and exporters of liquefied natural gas. The Company also contracts with other customers, including producers and marketers of natural gas and interstate and intrastate pipelines, who, in turn, provide transportation and storage services for end-users. The following table presents the Company's revenues disaggregated by type of service by segment (in millions):

	For the Year Ended December 31,
	2023		2022		2021
Revenues from Contracts with Customers
Firm Service (1)(3)	$	1,489.7	$	1,311.9	$	1,247.5
Interruptible Service	51.6		56.2		32.0
Other revenues (3)	40.2		29.9		26.1
Total Revenues from Contracts with Customers	1,581.5		1,398.0		1,305.6
Other operating revenues (2)(3)	36.2		34.0		34.5
Total Operating Revenues	$	1,617.7	$	1,432.0	$	1,340.1


	For the Year Ended December 31, 2024
	Natural Gas		Natural Gas Liquids		Eliminations		Total
Revenues from Contracts with Customers
Firm Service (1)(2)	$	1,353.9	$	452.6	$	(31.0)	$	1,775.5
Interruptible Service	59.1		0.1		—		59.2
Other revenues (2)	7.6		144.9		—		152.5
Total Revenues from Contracts with Customers	1,420.6		597.6		(31.0)		1,987.2
Other operating revenues (2)(3)	21.5		37.8		(18.4)		40.9
Total Operating Revenues	$	1,442.1	$	635.4	$	(49.4)	$	2,028.1

(1)Revenues earned from contracts with MVCs are included in firm service given the stand-ready nature of the performance obligation and the guaranteed nature of the fees over the contract term.

(2)For the year ended December 31, 2024, revenues attributable to Bayou Ethane within the Natural Gas Liquids segment were $243.6 million included in firm service from product sales earned from contracts with MVCs; $114.4 million included in other revenues from product sales earned from contracts with no MVCs; and $4.9 million included in other operating revenues.

(3)Other operating revenues include certain revenues earned from operating leases, pipeline management fees, intrasegment licensing fees and other activities that are not considered central and ongoing major business operations of the Company and do not represent revenues earned from contracts with customers.


	For the Year Ended December 31, 2023
	Natural Gas		Natural Gas Liquids		Eliminations		Total
Revenues from Contracts with Customers
Firm Service (1)(2)	$	1,253.1	$	262.7	$	(26.1)	$	1,489.7
Interruptible Service	51.6		—		—		51.6
Other revenues (2)	3.4		36.8		—		40.2
Total Revenues from Contracts with Customers	1,308.1		299.5		(26.1)		1,581.5
Other operating revenues (2)(3)	6.6		33.5		(3.9)		36.2
Total Operating Revenues	$	1,314.7	$	333.0	$	(30.0)	$	1,617.7

(1)Revenues earned from contracts with MVCs are included in firm service given the stand-ready nature of the performance obligation and the guaranteed nature of the fees over the contract term.

(2)For the year ended December 31, 2023, revenues attributable to Bayou Ethane within the Natural Gas Liquids segment were $74.9 million included in firm service from product sales earned from contracts with MVCs; $25.4 million included in other revenues from product sales earned from contracts with no MVCs; and $1.2 million included in other operating revenues.


	For the Year Ended December 31, 2022
	Natural Gas		Natural Gas Liquids		Eliminations		Total
Revenues from Contracts with Customers
Firm Service (1)	$	1,157.8	$	174.0	$	(19.9)	$	1,311.9
Interruptible Service	61.2		—		(5.0)		56.2
Other revenues	9.4		20.5		—		29.9
Total Revenues from Contracts with Customers	1,228.4		194.5		(24.9)		1,398.0
Other operating revenues (2)	2.3		31.7		—		34.0
Total Operating Revenues	$	1,230.7	$	226.2	$	(24.9)	$	1,432.0

(1)Revenues earned from contracts with MVCs are included in firm service given the stand-ready nature of the performance obligation and the guaranteed nature of the fees over the contract term.

(2)Other operating revenues include certain revenues earned from operating leases, pipeline management fees and other activities that are not considered central and ongoing major business operations of the Company and do not represent revenues earned from contracts with customers.

(3)Revenues attributable to Bayou Ethane were $74.9 million in firm service, $25.4 million in other revenues and $1.2 million in other operating revenues for the year ended December 31, 2023.

Contract Balances

As of December 31, ~~2023~~2024 and ~~2022~~2023, the Company had receivables recorded in Trade Receivables, net from contracts with customers of $~~204~~210.67 million and $~~148~~204.46 million, contract assets recorded in Other Assets from contracts with a customer of $11.9 million and $6.2 million, and contract liabilities recorded in Other Current Liabilities (current portion) and Other Liabilities (noncurrent portion) from contracts with customers of $17.9 million and $21.4 million.

52As of December 31, 2024, contract liabilities are expected to be recognized through 2040. Significant changes in the contract liability balances during the year ended December 31, 2024, were as follows (in millions):

$6.2 million and $3.3 million, and contract liabilities recorded in Other Current Liabilities (current portion) and Other Liabilities (noncurrent portion) from contracts with customers of $21.4 million and $23.0 million.


	Contract Liabilities
Balance as of December 31, 2023(1)	$	21.4
Revenues recognized that were included in the contract liability balances at the beginning of the period	(4.1)
Increases due to cash received, excluding amounts recognized as revenues during the period	0.6
Balance as of December 31, 2024(1)	$	17.9

(1)As of December 31, 2024 and 2023, ~~contract~~$1.8 ~~liabilities~~million ~~are~~and ~~expected to be recognized through 2040~~$3.5 ~~Significant~~million ~~changes~~were recorded in ~~the~~Other ~~contract~~Current ~~liability~~Liabilities ~~balances~~(current ~~during~~portion), ~~the~~and ~~year~~$16.1 ~~ended~~million ~~December~~and ~~31,~~$17.9 ~~2023,~~million were asrecorded ~~follows~~in Other Liabilities (innoncurrent ~~millions~~portion):.

Significant changes in the contract liability balances during the year ended December 31, 2023, were as follows (in millions):


	Contract Liabilities
Balance as of December 31, 2022(1)	$	23.0
Revenues recognized that were included in the contract liability balances at the beginning of the period	(3.9)
Increases due to cash received, excluding amounts recognized as revenues during the period	1.8
Other	0.5
Balance as of December 31, 2023(1)	$	21.4

(1)As of December 31, 2023 and 2022, $3.5 million and $3.6 million ~~were~~was recorded in Other Current Liabilities (current portion), and $17.9 million and $19.4 million were recorded in Other Liabilities (noncurrent portion).

Significant changes in the contract liability balances during the year ended December 31, 2022, were as follows (in millions):

	Contract Liabilities
Balance as of December 31, 2021(1)	$	19.2
Revenues recognized that were included in the contract liability balances at the beginning of the period	(5.1)
Increases due to cash received, excluding amounts recognized as revenues during the period	8.9
Balance as of December 31, 2022(1)	$	23.0

(1)As of December 31, 2022 and 2021, $3.6 million was recorded in Other Current Liabilities (current portion) and $19.4 million and $15.6 million were recorded in Other Liabilities (noncurrent portion).

Performance Obligations

The following table includes estimated operating revenues expected to be recognized in the future related to agreements that contain performance obligations that were unsatisfied as of December 31, ~~2023~~2024. The amounts presented primarily consist of fixed fees or MVCs which are typically recognized over time as the performance obligation is satisfied, in accordance with firm service contracts, or at a point in time as guaranteed minimum fees associated with the performance obligation ~~that~~ are satisfied ~~at a point in time~~ under certain ethane supply contracts. For the Company's customers that are charged maximum tariff rates related to its FERC-regulated operating subsidiaries, the amounts below reflect the current tariff rate for such services for the term of the agreements; however, the tariff rates may be subject to future adjustment. The Company has elected to exclude the following from the table: (a) unsatisfied performance obligations from usage fees associated with its firm services because of the variable nature of such services; (b) unsatisfied performance obligations from the ethane commodity indexed portion of ~~the~~ ethane supply contracts because of the variable nature of ethane prices, and (c) consideration in contracts that is recognized in revenue as invoiced, such as for interruptible services. The estimated revenues reflected in the table ~~may~~ include estimated revenues that are anticipated under executed precedent transportation agreements for projects that are subject to regulatory approvals.


	In millions
	2025		2026		Thereafter		Total
Estimated revenues from contracts with customers from unsatisfied performance obligations as of December 31, 2024(1)(2)	$	1,484.5	$	1,294.5	$	11,214.0	$	13,993.0
Operating revenues which are fixed and determinable (operating leases)	27.5		27.5		136.0		191.0
Total projected operating revenues under committed firm agreements as of December 31, 2024	$	1,512.0	$	1,322.0	$	11,350.0	$	14,184.0

	In millions
	2024		2025		Thereafter		Total
Estimated revenues from contracts with customers from unsatisfied performance obligations as of December 31, 2023	$	1,362.0	$	1,250.0	$	6,840.5	$	9,452.5
Operating revenues which are fixed and determinable (operating leases)	28.0		27.5		163.5		219.0
Total projected operating revenues under committed firm agreements as of December 31, 2023	$	1,390.0	$	1,277.5	$	7,004.0	$	9,671.5

(1)In March 2024, the Company executed a 108-year firm storage agreement with a customer. The estimated annual revenue from this contract is $3.1 million with $328.5 million of unsatisfied performance obligations included in the "Thereafter" column. Per the tariff provisions, this customer was required to provide 90 days of collateral and the Company can suspend services due to non-payment.

(2)The estimated revenues from contracts with customers from unsatisfied performance obligations as of December 31, 2024, that are anticipated under executed precedent transportation agreements associated with the Company's growth projects are $3.8 billion.

Note 5: Leases

The Company has various operating lease commitments extending through 2058, generally covering office space and equipment rentals, some of which contain options to renew or extend the lease term. The Company also has a finance lease related to the lease of an office building in Owensboro, Kentucky, entered into in 2013, that has a fifteen-year term with two ~~twenty-year~~ renewal options for up to twenty additional years in total.

The components of lease cost were as follows (in millions):

	For the Year Ended December 31,
	2023		2022		2021
	2024		2023		2022
Operating lease cost	$	34.81	$	3.8	$	43.08
Short-term lease cost	45.74		34.17		23.91
Finance lease cost:
Amortization of right-of-use asset	0.7		0.7		0.7
Interest on lease liability	0.3		0.3		0.43
Total lease cost	$	910.5	$	7.9.5	$	87.09

The following provides supplemental balance sheet information related to the Company's leases:

	As of December 31,
	2023			2022
	2024			2023
Right-of-use assets (in millions)
Operating leases (recorded in Other Assets)	$	1824.9		$	18.79
Finance lease (recorded in Property, Plant and Equipment)		3.2.5			43.02
Lease liabilities (in millions)
Operating leases (recorded in Other Liabilities, current and non-current)		1925.63			2019.6
Finance lease (recorded in Other Current Liabilities and Long-term debt and finance lease obligation)		43.56			5.4.5
Weighted-average remaining lease term (years)
Operating leases		913.96			109.49
Finance lease		43.6			54.6
Weighted-average discount rate
Operating leases		3.2095	%		23.8620	%
Finance lease		5.89	%		5.89	%

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The table below presents the maturities of lease liabilities (in millions):

	As of December 31, 2023
	As of December 31, 2024
	Operating Leases		Finance Lease
2024	$	3.7	$	1.1
2025	$	2.6	$	1.1
2025	2.6		1.1
2026	2.6		1.1
2026	1.9		1.1
2027	2.2		1.1
2027	1.3		1.1
2028	0.8		0.7
2028	0.3		0.7
2029	2.1		—
Thereafter	1324.34		—
Total	2334.17		54.10
Less: discount	(39.54)		(0.64)
Total lease liabilities	$	1925.63	$	43.56

Note 6: Commitments and Contingencies

Legal Proceedings and Settlements

The Company and its subsidiaries are parties to various legal actions arising in the normal course of business. Management believes the disposition of these outstanding legal actions, including the legal actions identified below, will not have a material impact on the Company's financial condition, results of operations or cash flows.

Mishal and Berger Litigation

On May 25, 2018, plaintiffs Tsemach Mishal and Paul Berger (on behalf of themselves and the purported class, Plaintiffs) initiated a purported class action in the Court of Chancery of the State of Delaware (the Trial Court) against the following defendants: the Company, Boardwalk GP, LP (Boardwalk GP), Boardwalk GP, LLC and BPHC (together, Defendants), regarding the potential exercise by Boardwalk GP of its right to purchase the issued and outstanding common units of the Company not already owned by Boardwalk GP or its affiliates (Purchase Right).

On June 25, 2018, Plaintiffs and Defendants entered into a Stipulation and Agreement of Compromise and Settlement, subject to the approval of the Trial Court (the Proposed Settlement). Under the terms of the Proposed Settlement, the lawsuit would be dismissed, and related claims against the Defendants would be released by the Plaintiffs, if BPHC, the sole member of the general partner of Boardwalk GP, elected to cause Boardwalk GP to exercise its Purchase Right for a cash purchase price, as determined by the Company's Third Amended and Restated Agreement of Limited Partnership, as amended (the Limited Partnership Agreement), and gave notice of such election as provided in the Limited Partnership Agreement within a period specified by the Proposed Settlement. On June 29, 2018, Boardwalk GP elected to exercise the Purchase Right and gave notice within the period specified by the Proposed Settlement. On July 18, 2018, Boardwalk GP completed the purchase of the Company's common units pursuant to the Purchase Right.

On September 28, 2018, the Trial Court denied approval of the Proposed Settlement. On February 11, 2019, a substitute verified class action complaint was filed in this proceeding, which, among other things, added Loews as a Defendant. The Defendants filed a motion to dismiss, which was heard by the Trial Court in July 2019. In October 2019, the Trial Court ruled on the motion and granted a partial dismissal, with certain aspects of the case proceeding to trial. A trial was held the week of February 22, 2021, and post-trial oral arguments were held on July 14, 2021.

On November 12, 2021, the Trial Court issued a ruling in the case. The Trial Court held that Boardwalk GP breached the Limited Partnership Agreement and found that Boardwalk GP iswas liable to the Plaintiffs for approximately $690.0 million in damages, plus pre-judgment interest (approximately $166.0 million), post-judgment interest and attorneys' fees. The Trial Court's ruling and damages award was against Boardwalk GP, and not the Company or its subsidiaries.

The Defendants believed that the Trial Court ruling included factual and legal errors. Therefore, on January 3, 2022, the Defendants appealed the Trial Court's ruling to the Supreme Court of the State of Delaware (the Supreme Court). On January 17, 2022, the Plaintiffs filed a cross-appeal to the Supreme Court contesting the calculation of damages by the Trial Court. Oral arguments were held on September 14, 2022, and on December 19, 2022, the Supreme Court reversed the Trial

5558

Court's ruling and remanded the case to the Trial Court for further proceedings related to claims not decided by the Trial Court's ruling. Briefing by the parties at the Trial Court on the remanded issues was completed in September 2023. A hearing on the remanded issues iswas ~~scheduled~~held at the Trial Court in April 2024. In September 2024, the Trial Court ruled in favor of the Defendants on all of the remanded issues. On October 21, 2024, the Plaintiffs appealed the Trial Court's ruling on the remanded issues to the Supreme Court. Briefing on the appeal is ongoing and is expected to be completed in March 2025.

City of New Orleans Litigation

Gulf South, along with several other energy companies operating in Southern Louisiana, has been named as a defendant in a petition for damages and injunctive relief in state district court for Orleans Parish, Louisiana, (Case No. 19-3466) by the City of New Orleans. The case was filed on March 29, 2019. The lawsuit claims include, among other things, negligence, strict liability, nuisance and breach of contract, alleging that the defendants' drilling, dredging, pipeline and industrial operations since the 1930s have caused increased storm surge risk, increased flood protection costs and unspecified damages to the City of New Orleans. In October 2020, this case was stayed pending the outcome of a consolidated appeal to the Fifth Circuit Court of Appeals in a similar case. On August 5, 2021, the Fifth Circuit Court of Appeals ruled in favor of the oil-and-gas defendants in that consolidated appeal, finding that the two cases being appealed should be re-examined in federal district court since they involve operations that were federally overseen at the time. The ruling reverses a previous decision that allowed the cases to be heard in state court, which the plaintiffs had sought. As a result of the Fifth Circuit Court of Appeals' decision, it is anticipated that this case will be reviewed in federal district court to determine whether the case should be heard in that court. Discovery has been initiated.

Gulf South and Texas Gas have been named as defendants in several suits in the State of Louisiana that are similar in nature to the City of New Orleans Litigation discussed above. These cases were filed in Louisiana state courts and ~~are~~discovery ~~advancing~~is ongoing. Two of these cases were settled in 2024, which did not have a material impact to ~~discovery~~the Company's results of operations or equity.

Environmental and Safety Matters

The Company's operating subsidiaries are subject to federal, state, and local environmental laws and regulations in connection with the operation and remediation of various operating sites. As of December 31, ~~2023~~2024 and ~~2022~~2023, the Company had an accrued liability of approximately $107.10 million and $310.01 million related to assessment and/or remediation costs associated with the historical use of polychlorinated biphenyls, petroleum hydrocarbons and mercury. The liability represents management's estimate of the undiscounted future obligations based on evaluations and discussions with counsel and operating personnel and the current known facts and circumstances related to these matters. The related expenditures are expected to occur over the next ~~thirty~~twenty years. As of December 31, ~~2023~~2024 and ~~2022~~2023, approximately $63.74 million and $16.37 million were recorded in Other Current Liabilities and approximately $3.46 million and $13.74 million were recorded in Other Liabilities and Deferred Credits.

Clean Air Act and Climate Change

The Company's pipelines and associated facilities are subject to the Clean Air Act (CAA) and comparable state laws and regulations, which regulate the emission of air pollutants from many sources and impose various compliance monitoring and reporting requirements. Under the CAA, the Company may be required to obtain pre-approval for the construction or modification of certain projects or facilities expected to produce or significantly increase air emissions, obtain and strictly comply with stringent air permit requirements or utilize specific equipment or technologies to control emissions. The need to obtain permits has the potential to delay the development or expansion of the Company's projects. Over the next several years, the Company may be required to incur certain capital expenditures for air pollution control equipment or other air emissions related issues. For example, in 2015, the Environmental Protection Agency (EPA) issued a final rule under the CAA, lowering the National Ambient Air Quality Standard (NAAQS) for ground-level ozone to 70 parts per billion under both the primary and secondary standards to provide requisite protection of public health and welfare~~, respectively~~. Since that time, the EPA issued area designations with respect to ground-level ozone, issued final requirements that apply to state, local and tribal air agencies for implementing the 2015 NAAQS for ground-level ozone and, on December 31, 2020, published notice of a final action to retain the 2015 ozone NAAQS without revision on a going-forward basis. However, several groups filed litigation over the December 2020 final action and in October 2021, the EPA announced that it would reconsider the December 2020 determination to maintain the November 2015 NAAQS. In August 2023, the EPA announced a new review of the ozone NAAQS to ensure the standards protect people’s health and reflect the most current, relevant science. The new review will incorporate the reconsideration of the December 2020 final action. Until a final decision following the review is released, the full extent of the impacts of any new standards are not clear. ~~States~~Additionally, ~~are~~it ~~expected~~is tonot ~~implement~~clear ~~more~~what ~~stringent~~actions ~~regulations that could apply to~~ the ~~Company's~~Trump ~~operations.~~Administration ~~Compliance~~may take with ~~any~~respect ~~final~~to ~~decision could, among other things, require installation of new emission controls on some of~~ the ~~Company's equipment, result in longer permitting timelines and significantly increase its capital expenditures and operating costs~~review. ~~Additionally,~~States ~~the~~are ~~threat~~also ofexpected ~~climate change continues~~ to ~~attract~~implement ~~considerable~~more ~~public,~~stringent ~~governmental~~regulations ~~and~~that ~~scientific~~could ~~attention.~~apply ~~As a result, numerous proposals have been made and are likely~~ to ~~continue~~the toCompany's ~~be made at~~

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operations. Compliance with any final decision could, among other things, require installation of new emission controls on some of the Company's equipment, result in longer permitting timelines and significantly increase its capital expenditures and operating costs. Additionally, the threat of climate change continues to attract considerable public, governmental and scientific attention. As a result, numerous proposals have been made and are likely to continue to be made at the international, national, regional, state and local levels of government to monitor and limit emissions of greenhouse gases (GHGs). These efforts have included consideration of cap-and-trade programs, carbon taxes, and GHG reporting and tracking programs, and regulations that directly limit GHG emissions from certain sources. The EPA has determined that GHG emissions endanger public health and the environment and, as a result, has adopted regulations under the CAA related to GHG emissions.

Commitments for Construction

The Company's future capital commitments are comprised of binding commitments under purchase orders for materials ordered but not received and firm commitments under binding construction service agreements. As of December 31, ~~2023~~2024, the commitments were approximately $~~134~~112.21 million, all of which are expected to be settled within the next twelve months.

Pipeline Capacity and Storage Agreements

The Company's operating subsidiaries have entered into pipeline capacity and storage agreements with third-party pipelines that allow the operating subsidiaries to transport gas to off-system markets on behalf of customers or store natural gas. Additionally, in connection with the Bayou Ethane acquisition, the Company has assumed a pipeline capacity agreement with a third party to facilitate the transportation of ethane and an ethane storage agreement. The Company incurred expenses of $511.82 million, $35.28 million and $73.72 million related to pipeline capacity and storage agreements for the years ended December 31, ~~2023~~2024, ~~2022~~2023 and ~~2021~~2022. The table below presents the future commitments related to these agreements as of December 31, ~~2023~~2024 (in millions):

2024	$	7.9
2025	$	8.0
2025	8.0
2026	8.1
2026	8.0
2027	3.0
2027	3.2
2028	0.2
2028	0.1
2029	—
Thereafter	—
Total	$	2719.23

Note 7: Fair Value Measurements

Financial Assets and Liabilities

The Company had equity securities recorded at fair value on a recurring basis in Other Current Assets of $21.38 million and $32.03 million as of December 31, ~~2023~~2024 and ~~2022~~2023. The equity securities were received as part of a settlement of a bankruptcy claim. The equity securities were valued based on quoted market prices at December 31, ~~2023~~2024 and ~~2022~~2023, and were considered Level 1 investments. The Company had no liabilities recorded at fair value on a recurring basis as of December 31, ~~2023~~2024 and ~~2022~~2023.

Financial Assets and Liabilities Not Measured at Fair Value

The following methods and assumptions were used in estimating the fair value amounts included in the disclosures for financial assets and liabilities:

Cash and Cash Equivalents: For cash and short-term financial assets, the carrying amount is a reasonable estimate of fair value due to the short maturity of those instruments.

Long-Term Debt: The estimated fair value of the Company's publicly traded debt is based on quoted market prices at December 31, ~~2023~~2024 and ~~2022~~2023. The fair market value of the debt that is not publicly traded is based on market prices of similar debt at December 31, 2023 and 2022. The carrying amount of the Company's variable-rate debt at December 31, 2023, approximated fair value because the instruments bear a floating market-based interest rate.

5760

~~The~~debt ~~carrying~~at ~~amounts~~December 31, 2024 and ~~estimated~~2023. ~~fair~~The ~~values~~carrying amount of the Company's ~~financial~~variable-rate ~~assets~~debt ~~and~~at ~~liabilities~~December ~~which~~31, ~~were~~2023, ~~not~~approximated ~~recorded at~~ fair value onbecause the ~~Consolidated~~instruments ~~Balance~~bear ~~Sheets~~a asfloating ofmarket-based ~~December 31,~~interest ~~2023 and 2022, were as follows (in millions):~~rate.

The carrying amounts and estimated fair values of the Company's financial assets and liabilities which were not recorded at fair value on the Consolidated Balance Sheets as of December 31, 2024 and 2023, were as follows (in millions):


As of December 31, 2024				Estimated Fair Value
Financial Assets	Carrying Amount			Level 1		Level 2		Level 3		Total
Cash and cash equivalents	$	117.9		$	117.9	$	—	$	—	$	117.9
Financial Liabilities
Long-term debt	$	3,236.5	(1)	$	—	$	3,129.7	$	—	$	3,129.7

(1) The carrying amount of long-term debt excluded a $2.7 million long-term finance lease obligation and

$4.8 million of unamortized debt issuance costs.


As of December 31, 2023				Estimated Fair Value
Financial Assets	Carrying Amount			Level 1		Level 2		Level 3		Total
Cash and cash equivalents	$	20.1		$	20.1	$	—	$	—	$	20.1

Financial Liabilities
Long-term debt	$	3,262.4	(1)	$	—	$	3,155.3	$	—	$	3,155.3

(1) The carrying amount of long-term debt excluded a $3.6 million long-term finance lease obligation and

$4.1 million of unamortized debt issuance costs.

As of December 31, 2022				Estimated Fair Value
Financial Assets	Carrying Amount			Level 1		Level 2		Level 3		Total
Cash and cash equivalents	$	215.6		$	215.6	$	—	$	—	$	215.6
Financial Liabilities
Long-term debt	$	3,234.0	(1)	$	—	$	3,041.4	$	—	$	3,041.4

(1) The carrying amount of long-term debt excluded a $4.5 million long-term finance lease obligation and

$5.1 million of unamortized debt issuance costs.

Note 8: Property, Plant and Equipment

The following table presents the Company's PPE as of December 31, ~~2023~~2024 and ~~2022~~2023 (in millions):

	2023				2022
	2024				2023
	Gross PPEInvestment		Accumulated Depreciation		Gross PPEInvestment		Accumulated Depreciation
Mobile Bay Pipeline	$	15.4	$	8.38	$	15.4	$	78.93
NGLs pipelines and facilities	5455.61		1315.51		54.46		1213.05
Offshore and other assets	137.05		105.97		13.0		10.69
Total	$	8378.0	$	3229.76	$	8283.80	$	3032.57

	As of December 31,
	2023		2022
	2024		2023
Gross carrying amount (1)	$	93.3	$	59.4
Gross carrying amount	$	92.9	$	93.3
Accumulated amortization	(2124.32)		(1921.13)
Net carrying amount	$	7268.07	$	4072.30

	As of December 31,
	2023		2022
	2024		2023
Balance at beginning of year	$	7174.1	$	6471.91
Liabilities recorded	85.40		1.8.4
Liabilities settled	(109.09)		(610.30)
Accretion expense	2.1		2.31
Revision of estimates	20.59		82.45
Balance at end of year	7472.12		7174.1
Less: Current portion of ARO	(142.92)		(1714.29)
Long-term ARO	$	5970.20	$	5359.92

Regulatory Liabilities:
Cashout and fuel tracker	$	1518.13	$	5515.1
Provision for other asset retirement	98103.16		9398.21
Unamortized debt issuance costs	(1.0.7)		(1.20)
Unamortized discount on long-term debt	(0.1)		(0.1)
Postretirement benefits other than pension	6062.68		5960.06
Total regulatory liabilities	$	~~172~~183.79	$	~~206~~172.07

	2023		2022
	2024		2023
Notes and Debentures:
Boardwalk Pipelines
4.95% Notes due 2024 (Boardwalk Pipelines 2024 Notes)	$	~~600.0~~—	$	600.0
5.95% Notes due 2026	550.0		550.0
4.45% Notes due 2027	500.0		500.0
4.80% Notes due 2029	500.0		500.0
3.40% Notes due 2031	500.0		500.0
3.60% Notes due 2032	500.0		500.0
5.625% Notes due 2034	600.0		—
Texas Gas
7.25% Debentures due 2027	100.0		100.0
Total notes and debentures	3,250.0		3,250.0
Revolving Credit Facility:
Boardwalk Pipelines	~~25.0~~—		—25.0
Total revolving credit facility	~~25.0~~—		—25.0
Finance lease obligation	32.67		43.56
	3,278.6		3,254.5
	3,252.7		3,278.6
Less:
Unamortized debt discount	(1213.65)		(1612.06)
Unamortized debt issuance costs	(4.18)		(54.1)
Total Long-Term Debt and Finance Lease Obligation	$	3,~~261~~234.94	$	3,~~233~~261.49


Date of Issuance	Issuing Subsidiary	Amount of Issuance		Purchaser Discounts and Expenses		Net Proceeds			Interest Rate		Maturity Date	Interest Payable
February 2024	Boardwalk Pipelines	$	600.0	$	6.5	$	593.5	(1)	5.625	%	August 1, 2034	February 1 and August 1

	Retirement Plans				PBOP
	For the Year EndedDecember 31,				For the Year Ended December 31,
	2023		2022		2023		2022
	2024		2023		2024		2023
Change in benefit obligation:
Benefit obligation at beginning of period	$	8688.40	$	~~109~~86.14	$	23.74	$	3023.67
Service cost	1.9		21.29		—		—
Interest cost	4.10		34.1		1.21		01.82
Plan participants' contributions	—		—		1.0		1.0
Actuarial loss/(gain)	4.0		(7.9)		2.3		(4.4)
Actuarial (gain) loss	(2.1)		4.0		(0.1)		2.3
Benefits paid	(0.5)		(0.5)		(4.81)		(4.38)
Settlements	(78.92)		(197.69)		—		—
Benefit obligation at end of period	$	8883.01	$	8688.40	$	2321.43	$	23.74
Change in plan assets:
Fair value of plan assets at beginning of period	$	7783.63	$	~~103~~77.56	$	8182.23	$	9381.02
Actual return on plan assets	96.26		~~(13~~9.2)		43.81		(84.6)8
Company's contribution	43.92		7.4.9		0.12		0.21
Plan participants' contributions	—		—		1.0		01.90
Benefits paid	(0.5)		(0.5)		(4.81)		(4.38)
Settlements	(78.92)		(197.69)		—		—
Fair value of plan assets at end of period	$	8384.34	$	7783.63	$	82.35	$	8182.23
Funded status	$	(41.7)3	$	(84.87)	$	5861.92	$	5758.59
Items not recognized as components of net periodic cost:
Net actuarial loss	$	126.78	$	1612.97	$	32.05	$	3.20

	~~Retirement Plans~~		Retirement Plans
	~~For the Year EndedDecember 31,~~		For the Year EndedDecember 31,
	~~2023~~		~~2022~~2023
Projected benefit obligation	$	~~88.0~~	$	8688.40
Accumulated benefit obligation	~~84.6~~		8284.76
Fair value of plan assets	~~83.3~~		7783.63


	Pension Plan Trust Assets
	Level 1		Level 2		Level 3		Total
Equity securities	$	35.9	$	—	$	—	$	35.9
Short-term investments	8.4		—		—		8.4
Fixed income mutual funds	40.1		—		—		40.1

Total assets	$	84.4	$	—	$	—	$	84.4


	PBOP Trust Assets
	Level 1		Level 2		Level 3		Total
Short-term investments	$	1.6	$	—	$	—	$	1.6
Other assets	15.7		—		—		15.7
Asset-backed securities	—		0.5		—		0.5
Corporate bonds	—		47.8		—		47.8
Tax-exempt securities	—		34.9		—		34.9
Total assets	$	17.3	$	83.2	$	—	$	100.5

Other liabilities	(18.0)		—		—		(18.0)
Total liabilities	$	(18.0)	$	—	$	—	$	(18.0)


	Segment Assets
	As of December 31,
	2024		2023
Natural Gas	$	7,490.1	$	7,515.2
Natural Gas Liquids	1,628.7		1,650.8
Total Segment Assets	9,118.8		9,166.0
Total current assets	401.1		288.7
Gas stored underground and Other assets	259.5		241.7
Total Assets	$	9,779.4	$	9,696.4

Filing Compare · Boardwalk Pipeline Partners, LP