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Fair Value Measurements and Guarantees | 9 Months Ended
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Sep. 30, 2025
Fair Value Disclosures [Abstract] |
Fair Value Measurements and Guarantees [Text Block] | Note 8 – Fair Value Measurements and Guarantees 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 September 30, 2025: |  |  |  |  |  |  |  |  |
Measured on a recurring basis: |  |  |  |  |  |  |  |  |
ARO Trust - Transco | $ | 346 |  |  | $ | 346 |  |  | $ | 346 |  |  | $ | — |  |  | $ | — |
Commodity derivative assets (1) | 231 |  |  | 565 |  |  | 367 |  |  | 133 |  |  | 65 |
Commodity derivative liabilities (1) | (308) |  |  | (853) |  |  | (459) |  |  | (337) |  |  | (57) |
Additional disclosures: |  |  |  |  |  |  |  |  |
Guarantees | (35) |  |  | (28) |  |  | — |  |  | (12) |  |  | (16) |
Debt by issuer, including current portion: |  |  |  |  |  |  |  |  |
Williams | (21,645) |  |  | (21,503) |  |  | — |  |  | (21,503) |  |  | — |
Transco | (5,214) |  |  | (5,282) |  |  | — |  |  | (5,282) |  |  | — |
NWP | (583) |  |  | (581) |  |  | — |  |  | (581) |  |  | — |
MountainWest | (375) |  |  | (382) |  |  | — |  |  | (382) |  |  | — |
Total debt | (27,817) |  |  | (27,748) |  |  | — |  |  | (27,748) |  |  | — |
Assets (liabilities) at December 31, 2024: |  |  |  |  |  |  |  |  |
Measured on a recurring basis: |  |  |  |  |  |  |  |  |
ARO Trust - 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: |  |  |  |  |  |  |  |  |
Guarantees | (36) |  |  | (28) |  |  | — |  |  | (12) |  |  | (16) |
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 (Note 3) | (100) |  |  | (100) |  |  | — |  |  | (100) |  |  | — |
Total debt | (26,456) |  |  | (25,830) |  |  | — |  |  | (25,830) |  |  | — |
(1)The carrying amount is presented net of counterparty offsetting arrangements and collateral (see Note 9 – Commodity Derivatives). Fair Value Methods The following methods and assumptions are used in estimating the fair value of financial instruments: Assets and Liabilities Measured at Fair Value on a Recurring Basis ARO Trust Transco is entitled to collect rates in the amounts necessary to fund its future asset retirement obligations (AROs) and deposits a portion of the collected rates into an external trust (ARO Trust). The ARO Trust invests in a moderate risk portfolio of actively traded mutual funds that are measured at fair value on a recurring basis based on quoted prices in an active market and is reported in Regulatory assets, deferred charges, and other in Williams’ Consolidated Balance Sheet and in Deferred charges and other in the Transco Balance Sheet. The Money market fund held in the ARO Trust is considered an investment. Both realized and unrealized gains and losses are ultimately recorded to the ARO regulatory asset. Effective March 1, 2025, the annual funding obligation is approximately $64 million, with deposits made monthly. Investments within the ARO Trust were as follows:
|  | September 30, 2025 |  | December 31, 2024
|  | Amortized Cost Basis |  | Fair Value |  | Amortized Cost Basis |  | Fair Value
|  | (Millions)
Money market fund |  | $ | 30 |  |  | $ | 30 |  |  | $ | 27 |  |  | $ | 27 |
U.S. equity funds |  | 53 |  |  | 165 |  |  | 53 |  |  | 146 |
International equity fund |  | 32 |  |  | 50 |  |  | 32 |  |  | 40 |
Municipal bond fund |  | 104 |  |  | 101 |  |  | 88 |  |  | 84 |
Total |  | $ | 219 |  |  | $ | 346 |  |  | $ | 200 |  |  | $ | 297 |
Commodity derivatives Williams’ commodity derivatives include exchange-traded contracts and over-the-counter (OTC) contracts, which consist of physical forwards, futures, and swaps that are measured at fair value on a recurring basis. Williams also has other derivatives related to asset management agreements and other contracts that require physical delivery. Derivatives classified as Level 1 are valued using New York Mercantile Exchange (NYMEX) futures prices. Derivatives classified as Level 2 are valued using basis transactions that represent the cost to transport natural gas from a NYMEX delivery point to the contract delivery point. These transactions are based on quotes obtained either through electronic trading platforms or directly from brokers. Derivatives classified as Level 3 are valued using a combination of observable and unobservable inputs. See Note 9 – Commodity Derivatives for additional information. Additional Fair Value Disclosures Long-term debt, including current portion The disclosed fair value of long-term debt is determined primarily by a market approach using broker quoted indicative period-end bond prices. The quoted prices are based on observable transactions in less active markets for the debt or similar instruments. The fair values of the financing obligations associated with Transco’s Dalton, Leidy South, and Atlantic Sunrise projects, as well as the deferred consideration obligation associated with the Gulf Coast Storage Acquisition (see Note 3 – Acquisitions and Divestitures), all included within long-term debt including current portion, were determined using an income approach. Guarantees Guarantees primarily consist of a guarantee Williams has provided in the event of nonpayment by a previously owned communications subsidiary, Williams Communications Group, Inc., (WilTel), on a lease performance obligation that extends through 2042. Guarantees also include an indemnification related to a disposed operation. To estimate the fair value of the WilTel guarantee, an estimated default rate is applied to the sum of the future contractual lease payments using an income approach. The estimated default rate is determined by obtaining the average cumulative issuer-weighted default rate based on the credit rating of WilTel’s current owner and the term of the underlying obligation. The default rate is published by Moody’s Investors Service. The carrying value of the WilTel guarantee is reported in Other current liabilities. The maximum potential undiscounted liquidity exposure is approximately $21 million at September 30, 2025. The exposure declines systematically through the remaining term of WilTel’s obligation. The fair value of the guarantee associated with the indemnification related to a disposed operation was estimated using an income approach that considered probability-weighted scenarios of potential levels of future performance. The terms of the indemnification do not limit the maximum potential future payments associated with the guarantee. The carrying value of this guarantee is reported in Regulatory liabilities, deferred income, and other. Williams is required by its revolving credit agreement to indemnify lenders for certain taxes required to be withheld from payments due to the lenders and for certain tax payments made by the lenders. The maximum potential amount of future payments under these indemnifications is based on the related borrowings and such future payments cannot currently be determined. These indemnifications generally continue indefinitely unless limited by the underlying tax regulations and have no carrying value. Williams has never been called upon to perform under these indemnifications and there is no current expectation of a future claim. Nonrecurring fair value measurements During the third quarter of 2025, Williams’ management decided to abandon certain compression assets in the Denver-Julesburg basin resulting in a $25 million write-off of Property, plant, and equipment – net within the West segment. This write-off represents a level 3 measurement within the fair value hierarchy, reflecting significant unobservable inputs, and is included in Other (income) expense – net within Operating income (loss).

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- Definition The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (bbb)(1) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 2: http://www.xbrl.org/2003/role/exampleRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 107 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482078/820-10-55-107 Reference 3: http://www.xbrl.org/2003/role/exampleRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 100 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482078/820-10-55-100 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (c)(3) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2E -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2E Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (h) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (h) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (g) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 940 -SubTopic 820 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147478119/940-820-50-1 + Details
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