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Commodity Derivatives
 6 Months Ended
Jun. 30, 2026
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Commodity Derivatives [Text Block]
Note 8 – Commodity Derivatives
Williams is exposed to commodity price risk and utilizes derivatives to manage a portion of that risk. Williams reports the fair value of commodity derivatives in Derivative assets; Regulatory assets, deferred charges, and other; Derivative liabilities; or Regulatory liabilities, deferred income, and other. The asset and liability derivative positions are netted by counterparty as permitted under the terms of the master netting arrangements and are also presented net of cash held on deposit in margin accounts that Williams has received or remitted to collateralize certain derivative positions. See Note 7 – Fair Value Measurements and Guarantees for additional fair value
information. In Williams’ Consolidated Statement of Cash Flows, any cash impacts of settled commodity derivatives are recorded as operating activities.
Williams experiences significant earnings volatility from the fair value accounting required for the derivatives used to hedge a portion of the economic value of the underlying transportation and storage capacity portfolios as well as upstream-related production. However, the unrealized fair value measurement gains and losses on the derivatives are generally offset by valuation changes in the economic value of the underlying production or transportation and storage capacity contracts, which are not recognized until the underlying transaction occurs.
Volumes
At June 30, 2026, the notional volume of the net long (short) positions for Williams’ commodity derivative contracts were as follows:
CommodityUnit of MeasureNet Long (Short) Position
Index RiskNatural GasMMBtu940,413,340
Central Hub Risk - Henry HubNatural GasMMBtu(32,484,566)
Basis RiskNatural GasMMBtu488,887,861
Central Hub Risk - Mont BelvieuNatural Gas LiquidsBarrels(2,910,000)
Basis RiskNatural Gas LiquidsBarrels(350,000)
Central Hub Risk - WTICrude OilBarrels(860,000)
Financial Statement Presentation
The fair value of commodity derivatives, which are not designated as hedging instruments for accounting purposes, is reflected as follows:
June 30,
2026		December 31,
2025
Commodity Derivatives Categories
Assets(Liabilities)Assets(Liabilities)
(Millions)
Current$412 $(525)$494 $(535)
Noncurrent219 (394)228 (380)
Total commodity derivatives
631 (919)722 (915)
Counterparty and collateral netting offset(365)610 (386)575 
Amounts recognized in Williams’ Consolidated Balance Sheet$266 $(309)$336 $(340)
The pre-tax impacts of Williams’ commodity derivatives, which are not designated as hedging instruments for accounting purposes, are reflected as follows:
Three Months Ended  
June 30,		Six Months Ended  
June 30,
2026202520262025
(Millions)
Net gain (loss) from commodity derivatives within Total revenues:
Realized
$(47)$12 $(181)$(28)
Unrealized
141 24 (84)2 
$94 $36 $(265)$(26)
Net gain (loss) from commodity derivatives within Net processing commodity expenses:
Realized
$(2)$(1)$(3)$(2)
Unrealized
1 12 1 2 
$(1)$11 $(2)$— 
Total net gain (loss) from commodity derivatives
$93 $47 $(267)$(26)
Contingent Features
Generally, collateral may be provided in the form of a parent guaranty, letter of credit, or cash. If collateral is required, fair value amounts recognized for the right to reclaim cash collateral or the obligation to return cash collateral are offset against fair value amounts recognized for derivatives executed with the same counterparty.
Williams has specific trade and credit contracts that contain minimum credit rating requirements. These credit rating requirements typically give counterparties the right to suspend or terminate credit if Williams’ credit ratings are downgraded to non-investment grade status. Under such circumstances, Williams would need to post collateral to continue transacting business with these counterparties. At June 30, 2026, the contractually required collateral in the event of a credit rating downgrade to non-investment grade status was $60 million.
Williams maintains accounts with brokers or the clearing houses of certain exchanges to facilitate financial derivative transactions. Based on the value of the positions in these accounts and the associated margin requirements, Williams may be required to deposit cash into these accounts. At June 30, 2026 and December 31, 2025, net cash collateral held on deposit in broker margin accounts was $245 million and $189 million, respectively.