Heavy Capex Pressures On Free Cash FlowSustained high capital spending materially depresses free cash flow, constraining capacity to pay down debt or return capital. Over months this raises reliance on external financing, limits flexibility for opportunistic investments and magnifies refinancing timing risks.
Elevated LeverageMaterial leverage increases interest expense sensitivity and covenant vulnerability, reducing strategic optionality. In a rising-rate or tight credit environment, elevated debt amplifies refinancing and liquidity risk, pressuring cash available for capex and dividends.
Fuel & Merchant ExposureSignificant thermal and merchant exposure creates structural margin volatility from fuel-price swings and market cycles. Over the medium term this can produce variable cash flows and require active fuel procurement or hedging, complicating planning and credit metrics.