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Segment Disclosures
 3 Months Ended
Mar. 31, 2025
Segment Reporting [Abstract]  
Segment Disclosures [Text Block]
Note 11 – Segment Disclosures
Williams
Williams’ reportable segments are Transmission & Gulf of America, Northeast G&P, West, and Gas & NGL Marketing Services. All remaining business activities are included in Other. (See Note 1 – General, Description of Business, and Basis of Presentation.)
Performance Measurement
Williams’ CODM is the Chief Executive Officer. Williams’ CODM primarily utilizes Modified EBITDA, its measure of segment profit and loss, to evaluate performance and make decisions on capital allocation and human resources. Such evaluation includes periodic comparisons of actual performance versus historical and budget, as well as projections of Modified EBITDA.
Williams defines Modified EBITDA as follows:
•Income (loss) before income taxes excluding:
◦Depreciation, depletion, and amortization expenses;
◦Equity earnings (losses);
◦Other investing income (loss) – net;
◦Interest expense; and
◦Accretion expense associated with AROs for nonregulated operations.
•This measure is further adjusted to include Williams’ proportionate share (based on ownership interest) of Modified EBITDA from its equity-method investments, including its indirect share from interests owned by equity-method investees, calculated consistently with the definition described above.
Significant noncash items which are components of Modified EBITDA may include net unrealized gain (loss) from commodity derivatives within Total revenues, net unrealized gain (loss) from commodity derivatives within Net processing commodity expenses for Williams’ Gas & NGL Marketing Services segment, charges associated with lower of cost or net realizable value adjustments to the Gas & NGL Marketing Services segment inventory within Product sales (for natural gas marketing inventory as these sales are presented net of the related costs) and Product costs (for NGL marketing inventory), and impairments of certain assets within Other (income) expense – net within Operating income (loss).
Intersegment Service revenues primarily represent transportation services provided to Williams’ marketing business and gathering services provided to its oil and gas properties. Intersegment Product sales primarily represent the sale of natural gas and NGLs from Williams’ natural gas processing plants and its oil and gas properties to its marketing business.
Segment assets include Investments, Property, plant, and equipment – net, and Intangible assets – net of accumulated amortization.
The following tables present revenues, Modified EBITDA, significant expenses, and certain segment assets measures, as well as reconciliations to the consolidated totals for Modified EBITDA:
Transmission & Gulf of AmericaNortheast G&PWestGas & NGL Marketing Services (1)Total
(Millions)
Three Months Ended March 31, 2025
Segment revenues:
Service revenues
External$1,113 $493 $393 $— $1,999 
Internal22 4 45 — 71 
Total service revenues1,135 497 438 — 2,070 
Total service revenues – commodity consideration23 1 25 — 49 
Product sales
External26 18 40 932 1,016 
Internal89 39 224 (193)159 
Total product sales115 57 264 739 1,175 
Net gain (loss) from commodity derivatives
Realized(1)— (2)(35)(38)
Unrealized— — — 7 7 
Total net gain (loss) from commodity derivatives (2)(1)— (2)(28)(31)
Total revenues of reportable segments$1,272 $555 $725 $711 $3,263 
Segment costs and expenses and Proportional Modified EBITDA of equity-method investments:
Product costs and net realized processing commodity expenses(123)(52)(254)(513)
Net unrealized gain (loss) from commodity derivatives within Net processing commodity expenses— — — (10)
Operating and administrative expenses (3)
(270)(106)(152)(39)
Recoverable power, transportation, and storage costs (4)
(70)(42)(14)— 
Other segment income (expenses) - net (5)
13 — 11 — 
Proportional Modified EBITDA of equity-method investments36 159 38 3 
Modified EBITDA of reportable segments$858 $514 $354 $152 $1,878 
Modified EBITDA from upstream operations, corporate, and other business activities75 
Total consolidated Modified EBITDA$1,953 
Reconciliation of Modified EBITDA:
Depreciation, depletion, and amortization expenses
$(585)
Equity earnings (losses)155 
Other investing income (loss) - net8 
Interest expense(349)
Accretion expense associated with AROs for nonregulated operations
(24)
Proportional Modified EBITDA of equity-method investments(236)
Income (loss) before income taxes
$922 
Additions to long-lived segment assets
$302 $59 $557 $— $918 
Transmission & Gulf of AmericaNortheast G&PWestGas & NGL Marketing Services (1)Total
(Millions)
Three Months Ended March 31, 2024
Segment revenues:
Service revenues
External$1,029 $475 $397 $— $1,901 
Internal20 4 40 — 64 
Total service revenues1,049 479 437 — 1,965 
Total service revenues – commodity consideration9 5 16 — 30 
Product sales
External30 2 72 707 811 
Internal31 23 176 (120)110 
Total product sales61 25 248 587 921 
Net gain (loss) from commodity derivatives
Realized— — — 81 81 
Unrealized— — — (98)(98)
Total net gain (loss) from commodity derivatives (2)— — — (17)(17)
Total revenues of reportable segments
$1,119 $509 $701 $570 $2,899 
Segment costs and expenses and Proportional Modified EBITDA of equity-method investments:
Product costs and net realized processing commodity expenses(61)(19)(249)(432)
Net unrealized gain (loss) from commodity derivatives within Net processing commodity expenses— — — 3 
Operating and administrative expenses (3)
(255)(108)(139)(40)
Recoverable power, transportation, and storage costs (4)
(64)(34)(11)— 
Other segment income (expenses) - net (5)
44 (1)— — 
Proportional Modified EBITDA of equity-method investments46 157 25 — 
Modified EBITDA of reportable segments$829 $504 $327 $101 $1,761 
Modified EBITDA from upstream operations, corporate, and other business activities76 
Total consolidated Modified EBITDA$1,837 
Reconciliation of Modified EBITDA:
Depreciation, depletion, and amortization expenses
$(548)
Equity earnings (losses)137 
Other investing income (loss) - net24 
Interest expense(349)
Accretion expense associated with AROs for nonregulated operations
(18)
Proportional Modified EBITDA of equity-method investments(228)
Income (loss) before income taxes
$855 
Additions to long-lived segment assets
$2,487 $64 $91 $— $2,642 
As of March 31, 2025
Equity-method investments by reportable segment$271 $3,367 $463 $153 $4,254 
Segment assets$23,275 $12,878 $12,533 $193 $48,879 
As of December 31, 2024
Equity-method investments by reportable segment$272 $3,346 $476 $— $4,094 
Segment assets$23,149 $12,918 $12,144 $46 $48,257 
_______________________
(1)    As Williams is acting as agent for natural gas marketing customers or engages in energy trading activities, the resulting revenues are presented net of the related costs of those activities.
(2)    Williams records transactions that qualify as commodity derivatives at fair value with changes in fair value recognized in earnings in the period of change and characterized as unrealized gains or losses. Gains and losses from commodity derivatives held for energy trading purposes are presented on a net basis in revenue.
(3)     Segment operating and administrative expenses primarily include payroll, maintenance and operating costs and taxes, and general and administrative expenses, including acquisition and transition-related expenses. It also includes project execution, information technology, finance and accounting, real estate and aviation, central engineering services, safety and operational discipline, supply chain and digital transformation, corporate strategic development, human resources, legal and government affairs, and executive and audit support services costs which are centrally managed and allocated to segments.
(4)     Recoverable power, transportation and storage costs are charges incurred which are reimbursable pursuant to FERC stipulations or customer contracts.
(5)    Other segment income (expenses) primarily includes equity AFUDC and regulatory credits and charges related to Williams’ regulated operations.
Transco
Transco manages and evaluates its business as a single reportable segment. Transco’s CODM is the Senior Vice President, Transmission & Gulf of America. Transco’s CODM determines resource allocation, measures and evaluates segment operating performance based upon Net income (loss) as reported on the Statement of Net Income.
Significant expenses within net income include Operating and maintenance expenses and Selling, general, and administrative expenses, which are each separately presented on Transco’s Statement of Net Income. Other segment items within net income include natural gas product costs, depreciation and amortization expense, taxes, other than income taxes, interest expense, interest income, other income (expense) – net, and AFUDC.
Transco’s segment assets include Property, plant, and equipment – net as presented on the Balance Sheet.
NWP
NWP manages and evaluates its business as a single reportable segment. NWP’s CODM is the Senior Vice President, Transmission & Gulf of America. NWP’s CODM determines resource allocation, measures and evaluates segment operating performance based upon Net income (loss) as reported on the Statement of Net Income.
Significant expenses within net income include Operating and maintenance expenses and Selling, general, and administrative expenses, which are each separately presented on NWP’s Statement of Net Income. Other segment items within net income include depreciation and amortization expense, taxes, other than income taxes, interest expense, other income (expense) – net, and AFUDC.
NWP’s segment assets include Property, plant, and equipment – net as presented on the Balance Sheet.