Risk Factors Dashboard

Business and Industry

● Significant debt in current liabilities, certain of which is in default.

● Inability to meet financial covenants under certain loan agreements.

● Restrictive covenants in our debt instruments that limit our ability to undertake certain types of transactions.

● Increased costs of capital or a reduction in the availability of credit.

● Affiliate Common Stock ownership and transactions that could cause conflicts of interest.

● Operational hazards inherent in transporting, processing, and storing crude oil and condensate and refined products.

● Geographical concentration of our assets and customers in West Texas.

● Competition from companies with more significant financial and other resources.

● Market changes in insurance that impact premium costs and available coverages.

● Industry technological developments that outpace our ability to keep up.

● Use of NOL carryforwards to offset future taxable income for U.S. federal income tax purposes, which is subject to limitation.

● Variable interest rates on certain of our debt.

● Our ability to adopt and deploy AI effectively.

Downstream and Midstream Operations

● Commodity price and refined product demand volatility, which can adversely affect our refining margins.

● Crude oil, other feedstocks, and refined products commodity price volatility.

● Availability and cost of crude oil and other feedstocks to operate the Nixon facility.

● Downtime at the Nixon refinery.

● Reliable supply and price of electricity to operate the Nixon facility.

● Potential impairment in the carrying value of long-lived assets, which could negatively affect our operating results.

● Adverse changes in operational cash flow and working capital, shortfalls for which Affiliates may not fund.

● Critical personnel loss, labor actions, and workplace safety issues.

● Market share loss, an unfavorable financial condition shift, or the bankruptcy or insolvency of a significant customer.

● Increases in the cost or availability of third-party vessels, pipelines, trucks, and other means of delivering and transporting our crude oil and condensate, feedstocks, and refined products.

● Sourcing of a substantial amount, if not all, of our crude oil and condensate from the Eagle Ford Shale.

● Geographical concentration of our refining operations and customers within the Eagle Ford Shale.

● Severe weather or other climate-related events that affect our facilities or those of our vendors, suppliers, or customers.

● Our ability to implement a new business strategy, such as renewable fuels, may be materially and adversely affected by many known and unknown factors.

● Our ability to effect and integrate potential acquisitions.

● Sourcing of a substantial amount, if not all, of our crude oil and condensate from the Eagle Ford Shale.

Legal, Government, and Regulatory

● Environmental laws and regulations that may require us to make substantial capital improvements to remain compliant or remediate current or future contamination that could lead to material liabilities.

● Strict laws and regulations regarding personnel and process safety.

● Uncertainty regarding the impact of current and future sanctions (including tariffs) imposed by governments, including the U.S., and other authorities in response to economic and geopolitical tensions.

● General economic, political, or regulatory developments, including recession, inflation, tariffs, interest rates, or changes in governmental policies relating to refined petroleum products, crude oil, or taxation.

● Assessment of penalties by regulatory agencies, such as BOEM, BSEE, OSHA and the TCEQ for violations.

● Our estimates of future AROs related to our pipeline and facilities assets, which may increase.

● Regulatory changes and other measures related to GHG emissions, climate change, and an ongoing desire to transition to greater renewable energy solutions.

Security

● A terrorist attack or armed conflict.

● Increased activism against oil and gas companies.

● Actual or potential cybersecurity threats or loss of data privacy.

Common Stock

● Fluctuations in our stock price that may result in a substantial investment loss.

● Increasing attention to environmental, social, and governance matters.

● Declines in our stock price due to share sales.

● Dilution of the equity of current stockholders and the potential decline of our stock price due to the issuance of new Common Stock or Preferred Stock from the pool of authorized shares that we have available to issue.

● The potential sale of shares in accordance with Rule 144, which may adversely affect the market.

● The lack of dividend payments.