Venture Global, Inc. Fair Value Disclosure
| December 31, | |||||||||||||||||||||||||||||||||||||||||||||||
| 2025 | 2024 | ||||||||||||||||||||||||||||||||||||||||||||||
| Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||||||||||||||||||
| Assets | |||||||||||||||||||||||||||||||||||||||||||||||
Money market funds(a) | $ | 340 | $ | — | $ | — | $ | 340 | $ | 1,373 | $ | — | $ | — | $ | 1,373 | |||||||||||||||||||||||||||||||
Interest rate swaps(b) | — | 245 | — | 245 | — | 1,609 | — | 1,609 | |||||||||||||||||||||||||||||||||||||||
Natural gas supply contracts(b) | — | 1 | 50 | 51 | — | — | 39 | 39 | |||||||||||||||||||||||||||||||||||||||
| Total | $ | 340 | $ | 246 | $ | 50 | $ | 636 | $ | 1,373 | $ | 1,609 | $ | 39 | $ | 3,021 | |||||||||||||||||||||||||||||||
| Liabilities | |||||||||||||||||||||||||||||||||||||||||||||||
Interest rate swaps(c) | $ | — | $ | 102 | $ | — | $ | 102 | $ | — | $ | 3 | $ | — | $ | 3 | |||||||||||||||||||||||||||||||
Natural gas supply contracts(c) | — | 20 | 149 | 169 | — | 3 | 33 | 36 | |||||||||||||||||||||||||||||||||||||||
| Total | $ | — | $ | 122 | $ | 149 | $ | 271 | $ | — | $ | 6 | $ | 33 | $ | 39 | |||||||||||||||||||||||||||||||
| Valuation approach | Significant unobservable input | Range of significant unobservable input | Arithmetic average of significant unobservable input | |||||||||||||||||
| Discounted cash flow | Forward natural gas price per MMBtu(a) | $2.63 to $5.34 | $ | 3.72 | ||||||||||||||||
| Option pricing model | Volatility | 13.5% to 68.6% | 24.7 | % | ||||||||||||||||
| Years ended December 31, | |||||||||||
| 2025 | 2024 | ||||||||||
| Beginning balance as of January 1 | $ | 6 | $ | — | |||||||
| (172) | (9) | ||||||||||
| Settlements | 63 | 15 | |||||||||
| Transfer out of Level 3 | 4 | — | |||||||||
| Ending balance as of December 31 | $ | (99) | $ | 6 | |||||||
| $ | (109) | $ | 6 | ||||||||
| December 31, 2025 | |||||||||||||||||||||||||||||
Carrying value | Fair value | ||||||||||||||||||||||||||||
| Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||||
| Fixed rate debt | $ | 25,334 | $ | 25,426 | $ | 84 | $ | — | $ | 25,510 | |||||||||||||||||||
Variable rate debt | 9,478 | 1,078 | 8,403 | — | 9,481 | ||||||||||||||||||||||||
| December 31, 2024 | |||||||||||||||||||||||||||||
Carrying value | Fair value | ||||||||||||||||||||||||||||
| Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||||
Fixed rate debt | $ | 15,834 | $ | 16,085 | $ | 84 | $ | — | $ | — | $ | 16,169 | |||||||||||||||||
Variable rate debt | 13,717 | — | 13,717 | 0 | — | 13,717 | |||||||||||||||||||||||
About Fair Value Disclosures
Fair value disclosures classify all assets and liabilities measured at fair value into a three-level hierarchy: Level 1 (quoted market prices), Level 2 (observable inputs like yield curves), and Level 3 (unobservable inputs requiring management estimates). The proportion of Level 3 assets directly reflects how much of the balance sheet depends on internal models rather than market evidence.
Key signals: a growing Level 3 balance relative to total fair-value assets increases valuation uncertainty and earnings volatility risk. Watch for transfers between levels — assets moving from Level 2 to Level 3 often signal deteriorating market liquidity. Unrealized gains and losses on Level 3 positions flow through earnings or other comprehensive income, so large swings deserve scrutiny. For financial institutions, examine the sensitivity disclosures that show how Level 3 valuations change under alternative assumptions. Compare the fair value of debt against its carrying amount to gauge hidden leverage.