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Financial Instruments, Derivatives, Guarantees and Concentration of Credit Risk (Tables)

6 Months Ended

Jun. 30, 2011

Financial Instruments, Derivatives, Guarantees and Concentration of Credit Risk [Abstract]

Carrying amounts and fair values of financial instruments


	June 30, 2011						December 31, 2010
	Carrying						Carrying
Asset (Liability)	Amount			Fair Value			Amount			Fair Value
	(Millions)
Cash and cash equivalents	$	1,166		$	1,166		$	795		$	795
Restricted cash (current and noncurrent)	$	29		$	29		$	28		$	28
ARO Trust investments	$	40		$	40		$	40		$	40
Long-term debt, including current portion (a)	$	(9,305	)	$	(10,325	)	$	(9,104	)	$	(9,990	)
Guarantees	$	(34	)	$	(32	)	$	(35	)	$	(34	)
Other	$	42		$	41	(b)	$	(23	)	$	(25	)(b)
Net energy derivatives:
Energy commodity cash flow hedges	$	182		$	182		$	266		$	266
Other energy derivatives	$	3		$	3		$	18		$	18


(a)		Excludes capital leases.

(b)		Excludes certain cost-based investments in companies that are not publicly traded and therefore it is not practicable to estimate fair value. The carrying value of these investments was $1 million and $2 million at June 30, 2011 and December 31, 2010, respectively.

Notional quantities of the net long (short) positions in commodity derivatives portfolio


		Unit of	Central Hub			Basis			Index
Derivative Notional Volumes		Measure	Risk			Risk			Risk			Options
Designated as Hedging Instruments
Exploration & Production	Risk Management	MMBtu		(258,680,000	)		(258,680,000	)					(50,600,000	)
Exploration & Production	Risk Management	Barrels		(3,405,500	)
Williams Partners	Risk Management	MMBtu		10,735,000			9,355,000
Williams Partners	Risk Management	Barrels		(2,960,000	)

Not Designated as Hedging Instruments
Exploration & Production	Risk Management	MMBtu		(12,940,000	)		(15,965,000	)		(46,487,263	)
Williams Partners	Risk Management	Barrels		(54,000	)
Midstream Canada & Olefins	Risk Management	Barrels		(50,000	)					(144,300	)
Exploration & Production	Other	MMBtu					(8,007,500	)

Fair value of energy commodity derivatives


	June 30, 2011				December 31, 2010
	Assets		Liabilities		Assets		Liabilities
	(Millions)
Designated as hedging instruments	$	209	$	27	$	288	$	22
Not designated as hedging instruments:
Legacy natural gas contracts from former power business		174		173		186		187
All other		18		16		99		80

Total derivatives not designated as hedging instruments		192		189		285		267

Total derivatives	$	401	$	216	$	573	$	289

Pre-tax gains and losses for energy commodity derivatives designated as cash flow hedges, as recognized in accumulated other comprehensive income (loss) (AOCI), revenues or costs and operating expense


	Three months					Six months
	ended June 30,					ended June 30,
	2011		2010			2011		2010		Classification
	(Millions)					(Millions)
Net gain (loss) recognized in other comprehensive income (loss) (effective portion)	$	75	$	32		$	52	$	310	AOCI
Net gain (loss) reclassified from accumulated other income (effective portion)	$	63	$	100		$	138	$	125	Revenues or Costs and Operating Expenses
Gain (loss) recognized in income (ineffective portion)	$	—	$	(2	)	$	—	$	3	Revenues or Costs and Operating Expenses

Pre-tax gains and losses for energy commodity derivatives not designated as hedging instruments


	Three months ended June 30,					Six months ended June 30,
	2011		2010			2011		2010
	(Millions)					(Millions)
Revenues	$	2	$	(15	)	$	4	$	11
Costs and operating expenses		—		7			—		7

Net gain (loss)	$	2	$	(22	)	$	4	$	4

Gross credit exposure from derivative contracts


	Investment
Counterparty Type	Grade(a)		Total
	(Millions)
Gas and electric utilities	$	3	$	3
Energy marketers and traders		—		112
Financial institutions		286		286

	$	289		401


Credit reserves				—

Gross credit exposure from derivatives			$	401

Net credit exposure from derivative contracts


	Investment
Counterparty Type	Grade(a)		Total
	(Millions)
Gas and electric utilities	$	2	$	2
Energy marketers and traders		—		1
Financial institutions		204		204

	$	206		207

Credit reserves				—

Net credit exposure from derivatives			$	207


(a)		We determine investment grade primarily using publicly available credit ratings. We include counterparties with a minimum Standard & Poor’s rating of BBB- or Moody’s Investors Service rating of Baa3 in investment grade.

- Definition

Tabular disclosure of the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments, assets, and liabilities. Such certain disclosures about the financial instruments, assets, and liabilities include: (1) the fair value of the required items together with their carrying amounts (as appropriate) and (2) the methodology and assumptions used in developing such estimates of fair value.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 10
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=6947722&loc=d3e13433-108611

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 2
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=6925170&loc=d3e19207-110258

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 107
-Paragraph 14
-Subparagraph a
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 30
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=6957238&loc=d3e14172-108612

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 107
-Paragraph 15
-Subparagraph b-d
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 12
-URI http://asc.fasb.org/extlink&oid=6947722&loc=d3e13476-108611

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 107
-Paragraph 10
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 11
-URI http://asc.fasb.org/extlink&oid=6947722&loc=d3e13467-108611

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6447952&loc=d3e13220-108610

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 159
-Paragraph 18
-Subparagraph c(2), d, e, f
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 157
-Paragraph 32
-Subparagraph a, c(1), c(2), c(3), d
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 159
-Paragraph 19
-Subparagraph a, b, c(1), d(1)
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

- 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.

+ References+ Details

- Definition

Tabular disclosure of the location and amount of gains and losses reported in the statement of financial performance, or when applicable, the statement of financial position. For example, (a) gains and losses recognized in the income statement on derivative instruments designated and qualifying as hedging instruments in fair value hedges and related hedged items designated and qualifying in fair value hedges and (b) gains and losses initially recognized in other comprehensive income on derivative instruments designated and qualifying as cash flow hedges.

+ References+ Details

- Definition

Tabular disclosure of the location and fair value amounts of derivative instruments (and nonderivative instruments that are designated and qualify as hedging instruments) reported in the statement of financial position.

+ References+ Details