Fair Value Measurements, Guarantees, and Concentration of Credit Risk (Tables)

12 Months Ended

Dec. 31, 2024

Fair Value Assets and Liabilities Measured On Recurring Basis [Table Text Block]

The following table presents, by level within the fair value hierarchy, certain of Williams’, Transco’s, and NWP’s significant financial assets and liabilities. The carrying values of cash and cash equivalents, accounts receivable, accounts payable, and commercial paper approximate fair value because of the short-term nature of these instruments. Therefore, these assets and liabilities are not presented in the following table.


					Fair Value Measurements Using
	Carrying Amount		Fair Value		Quoted Prices In Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(Millions)
Assets (liabilities) at December 31, 2024:
Measured on a recurring basis:
ARO Trust investments - Transco	$	297	$	297	$	297	$	—	$	—
Commodity derivative assets (1)	344		726		427		188		111
Commodity derivative liabilities (1)	(400)		(1,070)		(532)		(475)		(63)


Additional disclosures:


Debt by issuer, including current portion:
Williams	(20,167)		(19,517)		—		(19,517)		—
Transco	(5,235)		(5,276)		—		(5,276)		—
NWP	(582)		(573)		—		(573)		—
MountainWest	(372)		(364)		—		(364)		—
Gulf Coast Storage deferred consideration obligation (Note 3)	(100)		(100)		—		(100)		—
Total debt	(26,456)		(25,830)		—		(25,830)		—

Guarantees	(36)		(28)		—		(12)		(16)

Assets (liabilities) at December 31, 2023:
Measured on a recurring basis:
ARO Trust investments - Transco	$	269	$	269	$	269	$	—	$	—
Commodity derivative assets (1)(2)	314		866		514		196		156
Commodity derivative liabilities (1)(2)	(287)		(841)		(376)		(362)		(103)
Interest rate derivatives	6		6		—		6		—
Additional disclosures:

Debt by issuer, including current portion:
Williams	(18,837)		(18,494)		—		(18,494)		—
Transco	(5,261)		(5,438)		—		(5,438)		—
NWP	(581)		(581)		—		(581)		—
MountainWest	(369)		(375)		—		(375)		—
RMM deferred consideration obligation (Note 3)	(665)		(665)		—		(665)		—
Total debt	(25,713)		(25,553)		—		(25,553)		—

Guarantees	(37)		(28)		—		(12)		(16)

(1)The carrying amount is presented net of counterparty offsetting arrangements and collateral (see Note 17 – Commodity Derivatives).

(2)Previously, the fair value of Williams’ commodity derivative assets and liabilities were disclosed by level within the fair value hierarchy net of counterparty offsetting arrangements. The December 31, 2023, amounts have been corrected to disclose the fair values by level on a gross basis, as presented above.

Debt Securities, Trading, and Equity Securities, FV-NI

Transco investments within the ARO Trust were as follows:


	December 31, 2024				December 31, 2023
	Amortized Cost Basis		Fair Value		Amortized Cost Basis		Fair Value
	(Millions)
Money Market Funds	$	27	$	27	$	26	$	26
U.S. Equity Funds	53		146		53		120
International Equity Funds	32		40		32		39
Municipal Bond Funds	88		84		87		84
Total	$	200	$	297	$	198	$	269

Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation

The following table presents a reconciliation of changes in fair value of the net commodity derivatives classified as Level 3 in the fair value hierarchy.




	Year Ended December 31,
	2024		2023
	(Millions)
Balance at beginning of period	$	53	$	(56)
Gains (losses) included in Williams’ Consolidated Statement of Income	(5)		91
Purchases, issuances, and settlements	(1)		20
Transfers into Level 3	1		—
Transfers out of Level 3	—		(2)
Balance at end of period	$	48	$	53

Contract With Customer Accounts Receivable

The following table summarizes Williams’ concentration of receivables, net of allowances:


	December 31,
	2024		2023
	(Millions)
NGLs, natural gas, and related products and services	$	594	$	589
Regulated interstate natural gas transportation and storage	339		310
Marketing of natural gas and NGLs	516		321
Upstream activities	45		72
Accounts receivable related to revenues from contracts with customers	1,494		1,292
Receivables from derivatives	294		311
Other accounts receivable	75		52
Trade accounts and other receivables - net	$	1,863	$	1,655

Fair Value, Concentration of Risk

Customers representing 10 percent or more of Transco’s and NWP’s revenues include:


	Year Ended December 31,
	2024		2023		2022
	(Millions)
Transco:
Dominion Energy, Inc (1)	$	217	$	287	$	293

NWP:
Puget Sound Energy, Inc.	$	136	$	126	$	131
Cascade Natural Gas Corporation	46		47		49
Northwest Natural Gas Company	47		47		49

_______________

(1) The 2024 amount is less than 10 percent of Transco’s revenue.

- Definition

Tabular disclosure of all significant concentrations of risk, including credit risk and market risk, arising from all financial instruments (as defined), whether from an individual counterparty or groups of counterparties. The disclosure concerning concentrations of risk may consist of the following information: (1) for concentrations of credit risk disclosure may include: (a) information about the (shared) activity, region, or economic characteristic that identifies the concentration, (b) the maximum amount of loss due to credit risk that, based on the gross fair value of the financial instrument, the entity would incur if parties to the financial instruments that make up the concentration failed completely to perform according to the terms of the contracts and the collateral or other security, if any, for the amount due proved to be of no value to the entity, (c) the policy of requiring collateral or other security to support financial instruments subject to credit risk, information about the entity's access to that collateral or other security, and the nature and a brief description of the collateral or other security supporting those financial instruments, and (d) the policy of entering into master netting arrangements to mitigate the credit risk of financial instruments, information about the arrangements for which the entity is a party, and a brief description of the terms of those arrangements, including the extent to which they would reduce the entity's maximum amount of loss due to credit risk and (2) for disclosure of quantitative information about the market risks of financial instruments that is consistent with the way the company manages or adjusts those risks, disclosure may include: (a) more details about current positions and perhaps activity during the period, (b) the hypothetical effects on comprehensive income (or net assets), or annual income, of several possible changes in market prices, (c) a gap analysis of interest rate re-pricing or maturity dates, (d) the duration of the financial instruments, (e) the entity's value at risk from derivatives and from other positions at the end of the reporting period and the average value at risk during the year, or (f) other ways of reporting quantitative information as internally developed.

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