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Segment Disclosures
 6 Months Ended
Jun. 30, 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 of reportable segments as follows:
•Income (loss) before income taxes excluding:
◦Contributions from upstream operations, corporate, and other business activities;
◦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.
The following tables present revenues, Modified EBITDA, significant expenses, and certain segment assets measures:
Transmission & Gulf of AmericaNortheast G&PWestGas & NGL Marketing Services (1)Total
(Millions)
Three Months Ended June 30, 2025
Segment revenues:
Service revenues
External$1,150 $494 $393 $— $2,037 
Internal26 3 53 — 82 
Total service revenues1,176 497 446 — 2,119 
Total service revenues – commodity consideration28 — 19 — 47 
Product sales
External31 17 31 529 608 
Internal77 27 179 (126)157 
Total product sales108 44 210 403 765 
Net gain (loss) from commodity derivatives
Realized— — 1 2 3 
Unrealized— — — (16)(16)
Total net gain (loss) from commodity derivatives (2)— — 1 (14)(13)
Total revenues of reportable segments
$1,312 $541 $676 $389 $2,918 
Segment costs and expenses and Proportional Modified EBITDA of equity-method investments:
Product costs and net realized processing commodity expenses(119)(38)(201)(421)
Net unrealized gain (loss) from commodity derivatives within Net processing commodity expenses— — — 12 
Operating and administrative expenses (3)(286)(113)(150)(19)
Recoverable power, transportation, and storage costs (4)(55)(41)(15)— 
Other segment income (expenses) - net (5)2 (2)(1)1 
Proportional Modified EBITDA of equity-method investments37 154 32 8 
Total Modified EBITDA of reportable segments$891 $501 $341 $(30)$1,703 
Reconciliation of Modified EBITDA:
Contribution from upstream operations, corporate, and other business activities118 
Depreciation, depletion, and amortization expenses(605)
Equity earnings (losses)142 
Other investing income (loss) - net4 
Interest expense(350)
Accretion expense associated with AROs for nonregulated operations
(24)
Proportional Modified EBITDA of equity-method investments(231)
Income (loss) before income taxes$757 
Additions to long-lived segment assets
$725 $54 $238 $1 $1,018 
Transmission & Gulf of AmericaNortheast G&PWestGas & NGL Marketing Services (1)Total
(Millions)
Three Months Ended June 30, 2024
Segment revenues:
Service revenues
External$999 $462 $372 $— $1,833 
Internal24 3 35 — 62 
Total service revenues1,023 465 407 — 1,895 
Total service revenues – commodity consideration5 (5)18 — 18 
Product sales
External25 5 34 508 572 
Internal15 18 157 (85)105 
Total product sales40 23 191 423 677 
Net gain (loss) from commodity derivatives
Realized— — 5 (33)(28)
Unrealized— — — (99)(99)
Total net gain (loss) from commodity derivatives (2)— — 5 (132)(127)
Total revenues of reportable segments$1,068 $483 $621 $291 $2,463 
Segment costs and expenses and Proportional Modified EBITDA of equity-method investments:
Product costs and net realized processing commodity expenses(40)(18)(177)(387)
Net unrealized gain (loss) from commodity derivatives within Net processing commodity expenses— — — (7)
Operating and administrative expenses (3)(260)(108)(148)(23)
Recoverable power, transportation, and storage costs (4)(62)(32)(12)— 
Other segment income (expenses) - net (5)53 3 (2)— 
Proportional Modified EBITDA of equity-method investments49 153 36 — 
Total Modified EBITDA of reportable segments$808 $481 $318 $(126)$1,481 
Reconciliation of Modified EBITDA:
Contribution from upstream operations, corporate, and other business activities47 
Depreciation, depletion, and amortization expenses(540)
Equity earnings (losses)147 
Other investing income (loss) - net18 
Interest expense(339)
Accretion expense associated with AROs for nonregulated operations
(21)
Proportional Modified EBITDA of equity-method investments(238)
Income (loss) before income taxes$555 
Additions to long-lived segment assets
$515 $43 $71 $— $629 
Transmission & Gulf of AmericaNortheast G&PWestGas & NGL Marketing Services (1)Total
(Millions)
Six Months Ended June 30, 2025
Segment revenues:
Service revenues
External$2,263 $987 $786 $— $4,036 
Internal48 7 98 — 153 
Total service revenues2,311 994 884 — 4,189 
Total service revenues – commodity consideration51 1 44 — 96 
Product sales
External57 35 71 1,461 1,624 
Internal166 66 403 (319)316 
Total product sales223 101 474 1,142 1,940 
Net gain (loss) from commodity derivatives
Realized(1)— (1)(33)(35)
Unrealized— — — (9)(9)
Total net gain (loss) from commodity derivatives (2)(1)— (1)(42)(44)
Total revenues of reportable segments$2,584 $1,096 $1,401 $1,100 $6,181 
Segment costs and expenses and Proportional Modified EBITDA of equity-method investments:
Product costs and net realized processing commodity expenses(242)(90)(455)(934)
Net unrealized gain (loss) from commodity derivatives within Net processing commodity expenses— — — 2 
Operating and administrative expenses (3)(556)(219)(302)(58)
Recoverable power, transportation, and storage costs (4)(125)(83)(29)— 
Other segment income (expenses) - net (5)15 (2)10 1 
Proportional Modified EBITDA of equity-method investments73 313 70 11 
Total Modified EBITDA of reportable segments
$1,749 $1,015 $695 $122 $3,581 
Reconciliation of Modified EBITDA:
Contribution from upstream operations, corporate, and other business activities
193 
Depreciation, depletion, and amortization expenses(1,190)
Equity earnings (losses)297 
Other investing income (loss) - net12 
Interest expense(699)
Accretion expense associated with AROs for nonregulated operations
(48)
Proportional Modified EBITDA of equity-method investments(467)
Income (loss) before income taxes$1,679 
Additions to long-lived segment assets$1,027 $113 $795 $1 $1,936 
Transmission & Gulf of AmericaNortheast G&PWestGas & NGL Marketing Services (1)Total
(Millions)
Six Months Ended June 30, 2024
Segment revenues:
Service revenues
External$2,028 $937 $769 $— $3,734 
Internal44 7 75 — 126 
Total service revenues2,072 944 844 — 3,860 
Total service revenues – commodity consideration14 — 34 — 48 
Product sales
External55 7 106 1,215 1,383 
Internal46 41 333 (205)215 
Total product sales101 48 439 1,010 1,598 
Net gain (loss) from commodity derivatives
Realized— — 5 48 53 
Unrealized— — — (197)(197)
Total net gain (loss) from commodity derivatives (2)— — 5 (149)(144)
Total revenues of reportable segments
$2,187 $992 $1,322 $861 $5,362 
Segment costs and expenses and Proportional Modified EBITDA of equity-method investments:
Product costs and net realized processing commodity expenses(101)(37)(426)(819)
Net unrealized gain (loss) from commodity derivatives within Net processing commodity expenses— — — (4)
Operating and administrative expenses (3)
(515)(216)(287)(63)
Recoverable power, transportation, and storage costs (4)
(126)(66)(23)— 
Other segment income (expenses) - net (5)
97 2 (2)— 
Proportional Modified EBITDA of equity-method investments95 310 61 — 
Total Modified EBITDA of reportable segments
$1,637 $985 $645 $(25)$3,242 
Reconciliation of Modified EBITDA:
Contribution from upstream operations, corporate, and other business activities
123 
Depreciation, depletion, and amortization expenses
(1,088)
Equity earnings (losses)284 
Other investing income (loss) - net42 
Interest expense(688)
Accretion expense associated with AROs for nonregulated operations
(39)
Proportional Modified EBITDA of equity-method investments(466)
Income (loss) before income taxes
$1,410 
Additions to long-lived segment assets
$3,002 $107 $162 $— $3,271 
As of June 30, 2025
Equity-method investments by reportable segment$263 $3,279 $458 $153 $4,153 
Segment assets$23,744 $12,727 $12,753 $188 $49,412 
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 expenses, 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 expenses, 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.