Williams Companies Q2 2024 10-Q Filed

TL;DR

**WMB Q2 10-Q is IN! Check financials for energy infra giant.**

AI Summary

Williams Companies, Inc. filed its 10-Q for the period ending June 30, 2024. The filing details financial performance and operational updates for the second quarter of 2024. Specific financial figures and operational metrics are presented, reflecting the company's activities in the natural gas transmission sector.

Why It Matters

This filing provides investors and analysts with the latest financial and operational data for Williams Companies, crucial for understanding the company's performance in the energy infrastructure sector.

Risk Assessment

Risk Level: medium — 10-Q filings are standard for public companies, but the energy sector can be subject to volatility and regulatory changes.

Key Players & Entities

• WILLIAMS COMPANIES, INC. (company) — Filer of the 10-Q
• 20240630 (date) — End of the reporting period
• 20240805 (date) — Filing date
• TULSA (location) — Company headquarters city
• DE (location) — State of incorporation

FAQ

Key Financial Figures

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

Filing Documents

• wmb-20240630.htm (10-Q) — 2577KB
• wmb_20240630x10qxex311.htm (EX-31.1) — 9KB
• wmb_20240630x10qxex312.htm (EX-31.2) — 9KB
• wmb_20240630x10qxex32.htm (EX-32) — 6KB
• 0000107263-24-000077.txt ( ) — 11616KB
• wmb-20240630.xsd (EX-101.SCH) — 49KB
• wmb-20240630_cal.xml (EX-101.CAL) — 94KB
• wmb-20240630_def.xml (EX-101.DEF) — 358KB
• wmb-20240630_lab.xml (EX-101.LAB) — 725KB
• wmb-20240630_pre.xml (EX-101.PRE) — 505KB
• wmb-20240630_htm.xml (XML) — 2534KB

Financial Information

Part I. Financial Information

Financial Statements

Item 1. Financial Statements Consolidated Statement of Income – Three and Six Months Ended June 30, 2024 and 2023 7 Consolidated Statement of Comprehensive Income (Loss) – Three and Six Months Ended June 30, 2024 and 2023 8 Consolidated Balance Sheet – June 30, 2024 and December 31, 2023 9 Consolidated Statement of Changes in Equity – Three and Six Months Ended June 30, 2024 and 2023 10 Consolidated Statement of Cash Flows – Six Months Ended June 30, 2024 and 2023 12

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 13 Note 1 - General, Description of Business, and Basis of Presentation 13 Note 2 - Variable Interest Entities 15 Note 3 - Acquisitions and Divestitures 16 Note 4 - Revenue Recognition 21 Note 5 - Provision (Benefit) for Income Taxes 25 Note 6 - Debt and Banking Arrangements 26 Note 7 - Fair Value Measurements and Guarantees 27 Note 8 - Commodity Derivatives 29 Note 9 - Contingencies 30 Note 10 - Segment Disclosures 32 Note 11 - Subsequent Events 36

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 37

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 57

Controls and Procedures

Item 4. Controls and Procedures 58

Other Information

Part II. Other Information 59

Legal Proceedings

Item 1. Legal Proceedings 59

Risk Factors

Item 1A. Risk Factors 59

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 60

Other Information

Item 5. Other Information 60

Exhibits

Item 6. Exhibits 61 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," 2 Table of Contents "believes," "seeks," "could," "may," "should," "continues," "estimates," "expects," "forecasts," "intends," "might," "goals," "objectives," "targets," "planned," "potential," "projects," "scheduled," "will," "assumes," "guidance," "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 June 30, Six Months Ended June 30, 2024 2023 2024 2023 (Millions, except per-share amounts) Revenues: Service revenues $ 1,837 $ 1,748 $ 3,742 $ 3,442 Service revenues – commodity consideration 18 27 48 63 Product sales 610 593 1,455 1,438 Net gain (loss) from commodity derivatives ( 129 ) 115 ( 138 ) 621 Total revenues 2,336 2,483 5,107 5,564 Costs and expenses: Product costs 424 421 950 974 Net processing commodity expenses 17 44 22 98 Operating and maintenance expenses 522 481 1,033 944 Depreciation and amortization expenses 540 515 1,088 1,021 Selling, general, and administrative expenses 164 161 350 337 Other (income) expense – net ( 27 ) ( 9 ) ( 44 ) ( 40 ) Total costs and expenses 1,640 1,613 3,399 3,334 Operating income (loss) 696 870 1,708 2,230 Equity earnings (losses) 147 160 284 307 Other investing income (loss) – net 18 13 42 21 Interest expense ( 339 ) ( 306 ) ( 688 ) ( 600 ) Other income (expense) – net 33 19 64 39 Income (loss) before income taxes 555 756 1,410 1,997 Less: Provision (benefit) for income taxes 129 175 322 459 Income (loss) from continuing operations 426 581 1,088 1,538 Income (loss) from discontinued operations (Note 1) — ( 87 ) — ( 87 ) Net income (loss) 426 494 1,088 1,451 Less: Net income (loss) attributable to noncontrolling interests 25 34 55 64 Net income (loss) attributable to The Williams Companies, Inc. 401 460 1,033 1,387 Less: Preferred stock dividends — — 1 1 Net income (loss) available to common stockholders $ 401 $ 460 $ 1,032 $ 1,386 Amounts attributable to The Williams Companies, Inc. available to common stockholders: Income (loss) from continuing operations $ 401 $ 547 $ 1,032 $ 1,473 Income (loss) from discontinued operations (Note 1) — ( 87 ) — ( 87 ) Net income (loss) available to common stockholders $ 401 $ 460 $ 1,032 $ 1,386 Basic earnings (loss

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