Williams Companies, Inc. Files 2023 Annual Report on Form 10-K

TL;DR

<b>Williams Companies, Inc. has submitted its comprehensive 2023 annual report (10-K), detailing financial performance and operational data for the fiscal year ending December 31, 2023.</b>

AI Summary

WILLIAMS COMPANIES, INC. (WMB) filed a Annual Report (10-K) with the SEC on February 21, 2024. Williams Companies, Inc. filed its 2023 Form 10-K on February 21, 2024. The filing covers the fiscal year ending December 31, 2023. The company's principal business is Natural Gas Transmission. The filing includes financial data for the fiscal years 2021, 2022, and 2023. Key financial statement items such as revenue, net income, and EPS are detailed within the report.

Why It Matters

For investors and stakeholders tracking WILLIAMS COMPANIES, INC., this filing contains several important signals. This 10-K filing provides investors with a detailed overview of Williams Companies' financial health, operational strategies, and risk factors for the fiscal year 2023, enabling informed investment decisions. The report's comprehensive financial data, including revenue and net income trends over the past three years, allows for analysis of the company's growth trajectory and profitability within the natural gas transmission sector.

Risk Assessment

Risk Level: medium — WILLIAMS COMPANIES, INC. shows moderate risk based on this filing. The company operates in the natural gas transmission industry, which is subject to significant regulatory oversight and market volatility, as indicated by the detailed risk factors section in the 10-K.

Analyst Insight

Investors should review the detailed financial statements and risk factors in the 10-K to assess the company's performance and outlook in the energy infrastructure sector.

Key Numbers

• 2023-12-31 — Fiscal Year End (Reporting period)
• 2024-02-21 — Filing Date (Date the 10-K was filed)
• 4922 — SIC Code (Natural Gas Transmission industry)
• 730569878 — IRS Number (Company's IRS identification number)

Key Players & Entities

• WILLIAMS COMPANIES, INC. (company) — Filer name
• WMB (company) — Ticker symbol
• 2024-02-21 (date) — Filing date
• 2023-12-31 (date) — Fiscal year end
• TULSA (location) — Business address city
• OK (location) — Business address state
• DE (location) — State of incorporation
• NATURAL GAS TRANSMISSION (industry) — Standard Industrial Classification

FAQ

Industry Context

Williams Companies operates in the natural gas transmission sector, a critical part of the U.S. energy infrastructure, focusing on the transportation and storage of natural gas.

Regulatory Implications

The natural gas transmission industry is subject to extensive regulation by federal agencies such as the Federal Energy Regulatory Commission (FERC) concerning rates, safety, and environmental standards.

What Investors Should Do

1. Review the consolidated financial statements for detailed revenue, net income, and balance sheet information for fiscal year 2023.
2. Analyze the 'Risk Factors' section to understand potential challenges and uncertainties facing Williams Companies.
3. Examine management's discussion and analysis (MD&A) for insights into the company's performance drivers and strategic outlook.

Key Dates

• 2024-02-21: 10-K Filing — Submission of the annual report for the fiscal year 2023.
• 2023-12-31: Fiscal Year End — End date of the reporting period covered by the 10-K.

Year-Over-Year Comparison

This filing represents the annual report for the fiscal year ended December 31, 2023, providing a comprehensive update compared to previous filings.

Key Financial Figures

• $1.00 — ange on Which Registered Common Stock, $1.00 par value WMB New York Stock Exchange

Filing Documents

• wmb-20231231.htm (10-K) — 4302KB
• wmb_20231231x10kxex439.htm (EX-4.39) — 429KB
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• wmb_20231231x10kxex311.htm (EX-31.1) — 9KB
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• 0000107263-24-000019.txt (&nbsp;) — 24371KB
• wmb-20231231.xsd (EX-101.SCH) — 88KB
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Business

Item 1. Business 5 General 5 Service Assets, Customers, and Contracts 6 Business Segments 9 Transmission & Gulf of Mexico 10 Northeast G&P 14 West 17 Gas & NGL Marketing Services 18 Other 19 Regulatory Matters 20 Environmental Matters 23 Competition 23 Human Capital Resources 24 Website Access to Reports and Other Information 26

Risk Factors

Item 1A. Risk Factors 27

Unresolved Staff Comments

Item 1B. Unresolved Staff Comments 42 Item 1C. Cybersecurity 42

Properties

Item 2. Properties 43

Legal Proceedings

Item 3. Legal Proceedings 43

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 44 Information About Our Executive Officers 45 PART II

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

Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 47

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations 49

Quantitative and Qualitative Disclosures About Market Risk

Item 7A. Quantitative and Qualitative Disclosures About Market Risk 74

Financial Statements and Supplementary Data

Item 8. Financial Statements and Supplementary Data 77 Reports of Independent Registered Public Accounting Firms 77 Consolidated Statement of Income 79 Consolidated Statement of Comprehensive Income (Loss) 80 Consolidated Balance Sheet 81 Consolidated Statement of Changes in Equity 82 Consolidated Statement of Cash Flows 83 1

(continued)

PART II (continued)

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 84 Note 1 – General, Description of Business, Basis of Presentation, and Summary of Significant Accounting Policies 84 Note 2 – Variable Interest Entities 97 Note 3 – Acquisitions and Divestitures 98 Note 4 – Related Party Transactions 107 Note 5 – Revenue Recognition 108 Note 6 – Provision (Benefit) for Income Taxes 111 Note 7 – Employee Benefit Plans 115 Note 8 – Investing Activities 113 Note 9 – Property, Plant, and Equipment 121 Note 10 – Goodwill and Other Intangible Assets 122 Note 11 – Accrued and Other Current Liabilities 124 Note 12 – Debt and Banking Arrangements 125 Note 13 – Leases 129 Note 14 – Equity-Based Compensation 129 Note 15 – Fair Value Measurements, Guarantees, and Concentration of Credit Risk 130 Note 16 – Commodity Derivatives 134 Note 17 – Contingencies and Commitments 136 Note 18 – Segment Disclosures 140 Note 19 – Subsequent Events 144 Schedule II – Valuation and Qualifying Accounts 145

Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 146

Controls and Procedures

Item 9A. Controls and Procedures 146

Other Information

Item 9B. Other Information 150

Disclosure Regarding Foreign Jurisdictions that Prevent Inspections

Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 150 PART III

Directors, Executive Officers and Corporate Governance

Item 10. Directors, Executive Officers and Corporate Governance 150

Executive Compensation

Item 11. Executive Compensation 150

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 150

Certain Relationships and Related Transactions, and Director Independence

Item 13. Certain Relationships and Related Transactions, and Director Independence 151

Principal Accountant Fees and Services

Item 14. Principal Accountant Fees and Services 151 PART IV

Exhibits and Financial Statement Schedules

Item 15. Exhibits and Financial Statement Schedules 152

Form 10-K Summary

Item 16. Form 10-K Summary 160 2 DEFINITIONS The following is a listing of certain abbreviations, acronyms, and other industry terminology that may be used throughout this Annual Report. Measurements : Barrel or Bbl : One barrel of petroleum products that equals 42 U.S. gallons Mbbls/d : One thousand barrels per day Bcf : One billion cubic feet of natural gas Bcf/d : One billion cubic feet of natural gas per day MMcf/d : One million cubic feet of natural gas per day British Thermal Unit (Btu) : A unit of energy needed to raise the temperature of one pound of water by one degree Fahrenheit MMbtu: One million British thermal units Dekatherms (Dth) : A unit of energy equal to one million British thermal units Mdth/d : One thousand dekatherms per day MMdth : One million dekatherms or approximately one trillion British thermal units MMdth/d : One million dekatherms per day Government and Regulatory: EPA: Environmental Protection Agency Exchange Act, the: Securities and Exchange Act of 1934, as amended FERC: Federal Energy Regulatory Commission IRS: Internal Revenue Service SEC: Securities and Exchange Commission Securities Act, the: Securities Act of 1933, as amended Other : Note: References to numerical notes refer to our Notes to Consolidated Financial Statements . EBITDA: Earnings before interest, taxes, depreciation, and amortization Fractionation : The process by which a mixed stream of natural gas liquids is separated into constituent products, such as ethane, propane, and butane GAAP : U.S. generally accepted accounting principles LNG: Liquefied natural gas; natural gas which has been liquefied at cryogenic temperatures MVC: Minimum volume commitments NGLs: Natural gas liquids; natural gas liquids result from natural gas processing and crude oil refining and are used as petrochemical feedstocks, heating fuels, and gasoline additives, among other applications NGL margins : NGL revenues less Btu replacement cost, plant fuel, transp

Business

Item 1. Business In this report, Williams (which includes The Williams Companies, Inc. and, unless the context otherwise indicates, all of our subsidiaries) is at times referred to in the first person as "we," "us," or "our." We also sometimes refer to Williams as the "Company." GENERAL We are an energy company committed to being the leader in providing infrastructure that safely delivers natural gas products to reliably fuel the clean energy economy. We have operations in 12 supply areas that provide natural gas gathering, processing, and transmission services, NGLs fractionation, transportation, and storage services, and marketing services to more than 700 customers. We own an interest in and operate over 33,000 miles of pipelines in 24 states, 35 natural gas processing facilities, 9 NGL fractionation facilities, approximately 25 million barrels of NGL storage capacity, and 405.4 Bcf of natural gas storage capacity, and deliver natural gas that is used every day for clean-power generation, heating, and industrial use. We were founded in 1908, originally incorporated under the laws of the state of Nevada in 1949 and reincorporated under the laws of the state of Delaware in 1987. Our common stock trades on the New York Stock Exchange under the symbol "WMB." Our operations are located in the United States. Williams' headquarters are located in Tulsa, Oklahoma, with other major offices in Houston, Texas and Pittsburgh, Pennsylvania. Our telephone number is 800-945-5426 (800-WILLIAMS). 5 Service Assets, Customers, and Contracts Key variables for our businesses will continue to be: Obstacles to our expansion efforts, including delays or denials of necessary permits and opposition to hydrocarbon-based energy development; Producer drilling activities impacting natural gas supplies supporting our gathering and processing volumes; Retaining and attracting customers by continuing to provide reliable services; Revenue growth associated with additional infrastru