Williams Companies Q3 2024 10-Q Filed

TL;DR

**WMB Q3 10-Q is IN! Financials and ops details for natural gas transmission.**

AI Summary

Williams Companies, Inc. filed its 10-Q for the period ending September 30, 2024. The filing details financial performance and operational updates for the third quarter and the first nine months of the year. 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 results and operational details for Williams Companies, a key player in natural gas infrastructure, impacting energy markets.

Risk Assessment

Risk Level: medium — The filing is a standard quarterly report for a publicly traded energy company, carrying inherent risks associated with market fluctuations and regulatory changes in the energy sector.

Key Players & Entities

• WILLIAMS COMPANIES, INC. (company) — Filer
• 20240930 (date) — Period of Report
• 20241106 (date) — Filing Date
• TULSA (location) — Business Address 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-20240930.htm (10-Q) — 2632KB
• wmb_20240930x10qxex311.htm (EX-31.1) — 9KB
• wmb_20240930x10qxex312.htm (EX-31.2) — 9KB
• wmb_20240930x10qxex32.htm (EX-32) — 6KB
• 0000107263-24-000095.txt ( ) — 12038KB
• wmb-20240930.xsd (EX-101.SCH) — 48KB
• wmb-20240930_cal.xml (EX-101.CAL) — 97KB
• wmb-20240930_def.xml (EX-101.DEF) — 378KB
• wmb-20240930_lab.xml (EX-101.LAB) — 747KB
• wmb-20240930_pre.xml (EX-101.PRE) — 516KB
• wmb-20240930_htm.xml (XML) — 2604KB

Financial Information

Part I. Financial Information

Financial Statements

Item 1. Financial Statements Consolidated Statement of Income – Three and Nine Months Ended September 30, 2024 and 2023 7 Consolidated Statement of Comprehensive Income (Loss) – Three and Nine Months Ended September 30, 2024 and 2023 8 Consolidated Balance Sheet – September 30, 2024 and December 31, 2023 9 Consolidated Statement of Changes in Equity – Three and Nine Months Ended September 30, 2024 and 2023 10 Consolidated Statement of Cash Flows – Nine Months Ended September 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 22 Note 5 - Provision (Benefit) for Income Taxes 26 Note 6 - Debt and Banking Arrangements 27 Note 7 - Fair Value Measurements and Guarantees 28 Note 8 - Commodity Derivatives 30 Note 9 - Contingencies 32 Note 10 - Segment Disclosures 33

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 58

Controls and Procedures

Item 4. Controls and Procedures 59

Other Information

Part II. Other Information 60

Legal Proceedings

Item 1. Legal Proceedings 60

Risk Factors

Item 1A. Risk Factors 60

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 61

Other Information

Item 5. Other Information 61

Exhibits

Item 6. Exhibits 62 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 September 30, Nine Months Ended September 30, 2024 2023 2024 2023 (Millions, except per-share amounts) Revenues: Service revenues $ 1,911 $ 1,770 $ 5,653 $ 5,212 Service revenues – commodity consideration 34 45 82 108 Product sales 703 720 2,158 2,158 Net gain (loss) from commodity derivatives 5 24 ( 133 ) 645 Total revenues 2,653 2,559 7,760 8,123 Costs and expenses: Product costs 517 484 1,467 1,458 Net processing commodity expenses 7 31 29 129 Operating and maintenance expenses 580 522 1,613 1,466 Depreciation and amortization expenses 566 521 1,654 1,542 Selling, general, and administrative expenses 170 146 520 483 Gain on sale of business (Note 3) — ( 130 ) — ( 130 ) Other (income) expense – net ( 25 ) ( 9 ) ( 69 ) ( 49 ) Total costs and expenses 1,815 1,565 5,214 4,899 Operating income (loss) 838 994 2,546 3,224 Equity earnings (losses) 147 127 431 434 Other investing income (loss) – net 290 24 332 45 Interest expense ( 338 ) ( 314 ) ( 1,026 ) ( 914 ) Other income (expense) – net 31 30 95 69 Income (loss) before income taxes 968 861 2,378 2,858 Less: Provision (benefit) for income taxes 227 176 549 635 Income (loss) from continuing operations 741 685 1,829 2,223 Income (loss) from discontinued operations (Note 1) — ( 1 ) — ( 88 ) Net income (loss) 741 684 1,829 2,135 Less: Net income (loss) attributable to noncontrolling interests 35 30 90 94 Net income (loss) attributable to The Williams Companies, Inc. 706 654 1,739 2,041 Less: Preferred stock dividends 1 1 2 2 Net income (loss) available to common stockholders $ 705 $ 653 $ 1,737 $ 2,039 Amounts attributable to The Williams Companies, Inc. available to common stockholders: Income (loss) from continuing operations $ 705 $ 654 $ 1,737 $ 2,127 Income (loss) from discontinued operations (Note 1) — ( 1 ) — ( 88 ) Net income (loss) available to

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