Williams Companies, Inc. Files 10-Q for Period Ending March 31, 2024

TL;DR

<b>Williams Companies, Inc. has filed its Q1 2024 10-Q report, detailing financial performance and operational status.</b>

AI Summary

WILLIAMS COMPANIES, INC. (WMB) filed a Quarterly Report (10-Q) with the SEC on May 6, 2024. Williams Companies, Inc. filed a 10-Q report for the period ending March 31, 2024. The filing covers the first quarter of 2024. The company's standard industrial classification is Natural Gas Transmission. The filing was submitted on May 6, 2024. The company is incorporated in Delaware.

Why It Matters

For investors and stakeholders tracking WILLIAMS COMPANIES, INC., this filing contains several important signals. This 10-Q filing provides investors with crucial, up-to-date financial information for the first quarter of 2024, enabling informed investment decisions. The report details the company's performance in the natural gas transmission sector, offering insights into its operational health and market position.

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 regulatory changes and market volatility, as indicated by its SIC code and the nature of its business.

Analyst Insight

Investors should review the detailed financial statements and risk factors within the 10-Q to assess the company's current financial health and future prospects.

Key Numbers

• 20240331 — Period of Report (Conformed period of report)
• 20240506 — Filed As Of Date (Conformed filing date)
• 67 — Public Document Count (Number of documents in the filing)
• 4922 — SIC Code (Standard Industrial Classification code for Natural Gas Transmission)

Key Players & Entities

• WILLIAMS COMPANIES, INC. (company) — Filer name
• WMB (company) — Ticker symbol
• 0000107263-24-000063 (filing_id) — Accession number
• 20240331 (date) — Period of report
• 20240506 (date) — Filed as of date
• Natural Gas Transmission (industry) — Standard Industrial Classification
• DE (location) — State of incorporation
• TULSA (location) — Business address city

FAQ

Industry Context

Williams Companies operates in the natural gas transmission industry, a critical sector for energy infrastructure in the United States.

Regulatory Implications

As a natural gas transmission company, Williams is subject to regulations from bodies like the Federal Energy Regulatory Commission (FERC) concerning interstate pipeline operations.

What Investors Should Do

1. Review the consolidated balance sheets for changes in assets, liabilities, and equity.
2. Analyze the consolidated statements of operations for revenue and net income trends.
3. Examine the consolidated statements of cash flows for operating, investing, and financing activities.

Key Dates

• 2024-03-31: End of Reporting Period — Marks the end of the fiscal quarter for which financial results are reported.
• 2024-05-06: Filing Date — Date the 10-Q report was officially submitted to the SEC.

Year-Over-Year Comparison

This is the first 10-Q filing for the fiscal year 2024, providing the initial quarterly financial data for the year.

Key Financial Figures

• $1.00 — ange on which registered Common Stock, $1.00 par value WMB New York Stock Exchange

Filing Documents

• wmb-20240331.htm (10-Q) — 1801KB
• wmb20240331_10qxex101.htm (EX-10.1) — 61KB
• wmb_20240331x10qxex311.htm (EX-31.1) — 9KB
• wmb_20240331x10qxex312.htm (EX-31.2) — 9KB
• wmb_20240331x10qxex32.htm (EX-32) — 6KB
• 0000107263-24-000063.txt (&nbsp;) — 9489KB
• wmb-20240331.xsd (EX-101.SCH) — 46KB
• wmb-20240331_cal.xml (EX-101.CAL) — 92KB
• wmb-20240331_def.xml (EX-101.DEF) — 341KB
• wmb-20240331_lab.xml (EX-101.LAB) — 711KB
• wmb-20240331_pre.xml (EX-101.PRE) — 488KB
• wmb-20240331_htm.xml (XML) — 1791KB

Financial Information

Part I. Financial Information

Financial Statements

Item 1. Financial Statements Consolidated Statement of Income – Three Months Ended March 31, 2024 and 2023 7 Consolidated Statement of Comprehensive Income (Loss) – Three Months Ended March 31, 2024 and 2023 8 Consolidated Balance Sheet – March 31, 2024 and December 31, 2023 9 Consolidated Statement of Changes in Equity – Three Months Ended March 31, 2024 and 2023 10 Consolidated Statement of Cash Flows – Three Months Ended March 31, 2024 and 2023 11

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 12 Note 1 - General, Description of Business, and Basis of Presentation 12 Note 2 - Variable Interest Entities 14 Note 3 - Acquisitions and Divestitures 15 Note 4 - Revenue Recognition 20 Note 5 - Provision (Benefit) for Income Taxes 23 Note 6 - Debt and Banking Arrangements 24 Note 7 - Fair Value Measurements and Guarantees 25 Note 8 - Commodity Derivatives 27 Note 9 - Contingencies 28 Note 10 - Segment Disclosures 30

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

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 33

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 48

Controls and Procedures

Item 4. Controls and Procedures 49

Other Information

Part II. Other Information 50

Legal Proceedings

Item 1. Legal Proceedings 50

Risk Factors

Item 1A. Risk Factors 51

Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities

Item 2. Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities 51

Other Information

Item 5. Other Information 51

Exhibits

Item 6. Exhibits 52 The reports, filings, and other public announcements of The Williams Companies, Inc. (Williams) may contain or incorporate by reference statements that do not directly or exclusively relate to historical facts. Such statements are "forward-looking statements" within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act. These forward-looking statements relate to anticipated financial performance, management's plans and objectives for future operations, business prospects, outcomes of regulatory proceedings, market conditions, and other matters. We make these forward-looking statements in reliance on the safe harbor protections provided under the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical facts, included in this report that address activities, events, or developments that we expect, believe, or anticipate will exist or may occur in the future, are forward-looking statements. Forward-looking statements can be identified by various forms of words such as "anticipates," "believes," "seeks," "could," "may," "should," "continues," "estimates," "expects," "forecasts," "intends," "might," "goals," "objectives," "targets," "planned," "potential," "projects," "scheduled," "will," "assumes," "guidance," 2 Table of Contents "outlook," "in-service date," or other similar expressions. These forward-looking statements are based on management's beliefs and assumptions and on information currently available to management and include, among others, statements regarding: Levels of dividends to Williams stockholders; Future credit ratings of Williams and its affiliates; Amounts and nature of future capital expenditures; Expansion and growth of our business and operations; Expected in-service dates for capital projects; Financial condition and liquidity; Business strategy; Cash flow from operations or results of operations; Seasonality of certain business compo

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements The Williams Companies, Inc. Consolidated Statement of Income (Unaudited) Three Months Ended March 31, 2024 2023 (Millions, except per-share amounts) Revenues: Service revenues $ 1,905 $ 1,694 Service revenues – commodity consideration 30 36 Product sales 845 845 Net gain (loss) from commodity derivatives ( 9 ) 506 Total revenues 2,771 3,081 Costs and expenses: Product costs 526 553 Net processing commodity expenses 5 54 Operating and maintenance expenses 511 463 Depreciation and amortization expenses 548 506 Selling, general, and administrative expenses 186 176 Other (income) expense – net ( 17 ) ( 31 ) Total costs and expenses 1,759 1,721 Operating income (loss) 1,012 1,360 Equity earnings (losses) 137 147 Other investing income (loss) – net 24 8 Interest expense ( 349 ) ( 294 ) Other income (expense) – net 31 20 Income (loss) before income taxes 855 1,241 Less: Provision (benefit) for income taxes 193 284 Net income (loss) 662 957 Less: Net income (loss) attributable to noncontrolling interests 30 30 Net income (loss) attributable to The Williams Companies, Inc. 632 927 Less: Preferred stock dividends 1 1 Net income (loss) available to common stockholders $ 631 $ 926 Basic earnings (loss) per common share: Net income (loss) available to common stockholders $ .52 $ .76 Weighted-average shares (thousands) 1,218,155 1,219,465 Diluted earnings (loss) per common share: Net income (loss) available to common stockholders $ .52 $ .76 Weighted-average shares (thousands) 1,222,222 1,225,781 See accompanying notes. 7 Table of Contents The Williams Companies, Inc. Consolidated Statement of Comprehensive Income (Loss) (Unaudited) Three Months Ended March 31, 2024 2023 (Millions) Net income (loss) $ 662 $ 957 Other comprehensive income (loss): Designated interest rate cash flow hedging activities: Net unrealized gain (loss) from derivative instruments, net of taxes of ($ 3 )

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements Note 1 – General, Description of Business, and Basis of Presentation General Our accompanying interim consolidated financial statements do not include all the notes in our annual financial statements and, therefore, should be read in conjunction with our consolidated financial statements and notes thereto for the year ended December 31, 2023, in our Annual Report on Form 10-K. The accompanying unaudited financial statements include all normal recurring adjustments and others that, in the opinion of management, are necessary to present fairly our interim financial statements. The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in our consolidated financial statements and accompanying notes. Actual results could differ from those estimates. Unless the context clearly indicates otherwise, references in this report to "Williams," "we," "our," "us," or like terms refer to The Williams Companies, Inc. and its subsidiaries. Unless the context clearly indicates otherwise, references to "Williams," "we," "our," and "us" include the operations in which we own interests accounted for as equity-method investments that are not consolidated in our financial statements. When we refer to our equity investees by name, we are referring exclusively to their businesses and operations. Share Repurchase Program In September 2021, our Board of Directors authorized a share repurchase program with a maximum dollar limit of $ 1.5 billion. Repurchases may be made from time to time in the open market, by block purchases, in privately negotiated transactions, or in such other manner as determined by our management. Our management will also determine the timing and amount of any repurchases based on market conditions and other factors. The share repurchase program does not obligate us to acq