WILLIAMS COMPANIES, INC.WMB
WILLIAMS COMPANIES, INC. Revenue Disclosure
Note 5 – Revenue Recognition
Revenue by Category
The following tables present Williams’ revenue disaggregated by major service line:
| Transmission, Power & Gulf | Northeast G&P | West | Gas & NGL Marketing Services | Other | Eliminations | Total | |||||||||||||||||||||||||||||||||||
(Millions) | |||||||||||||||||||||||||||||||||||||||||
| 2025 | |||||||||||||||||||||||||||||||||||||||||
| Revenues from contracts with customers: | |||||||||||||||||||||||||||||||||||||||||
| Service revenues: | |||||||||||||||||||||||||||||||||||||||||
| Regulated interstate natural gas transportation and storage | $ | 3,804 | $ | — | $ | — | $ | — | $ | — | $ | (83) | $ | 3,721 | |||||||||||||||||||||||||||
| Gathering, processing, transportation, fractionation, and storage: | |||||||||||||||||||||||||||||||||||||||||
| Monetary consideration | 933 | 1,850 | 1,824 | — | — | (235) | 4,372 | ||||||||||||||||||||||||||||||||||
| Commodity consideration | 104 | 2 | 86 | — | — | — | 192 | ||||||||||||||||||||||||||||||||||
| Other | 51 | 99 | 24 | — | 1 | (20) | 155 | ||||||||||||||||||||||||||||||||||
| Total service revenues | 4,892 | 1,951 | 1,934 | — | 1 | (338) | 8,440 | ||||||||||||||||||||||||||||||||||
| Product sales | 512 | 171 | 906 | 6,047 | 580 | (1,757) | 6,459 | ||||||||||||||||||||||||||||||||||
| Total revenues from contracts with customers | 5,404 | 2,122 | 2,840 | 6,047 | 581 | (2,095) | 14,899 | ||||||||||||||||||||||||||||||||||
| Other revenues (1) | 39 | 46 | 7 | 3,303 | 61 | (2) | 3,454 | ||||||||||||||||||||||||||||||||||
| Other adjustments (2) | — | — | — | (7,175) | — | 772 | (6,403) | ||||||||||||||||||||||||||||||||||
| Total revenues | $ | 5,443 | $ | 2,168 | $ | 2,847 | $ | 2,175 | $ | 642 | $ | (1,325) | $ | 11,950 | |||||||||||||||||||||||||||
| 2024 | |||||||||||||||||||||||||||||||||||||||||
| Revenues from contracts with customers: | |||||||||||||||||||||||||||||||||||||||||
| Service revenues: | |||||||||||||||||||||||||||||||||||||||||
| Regulated interstate natural gas transportation and storage | $ | 3,500 | $ | — | $ | — | $ | — | $ | — | $ | (81) | $ | 3,419 | |||||||||||||||||||||||||||
| Gathering, processing, transportation, fractionation, and storage: | |||||||||||||||||||||||||||||||||||||||||
| Monetary consideration | 661 | 1,778 | 1,693 | — | — | (162) | 3,970 | ||||||||||||||||||||||||||||||||||
| Commodity consideration | 54 | 2 | 78 | — | — | — | 134 | ||||||||||||||||||||||||||||||||||
| Other | 46 | 92 | 21 | — | — | (19) | 140 | ||||||||||||||||||||||||||||||||||
| Total service revenues | 4,261 | 1,872 | 1,792 | — | — | (262) | 7,663 | ||||||||||||||||||||||||||||||||||
| Product sales | 328 | 110 | 869 | 4,530 | 420 | (1,288) | 4,969 | ||||||||||||||||||||||||||||||||||
| Total revenues from contracts with customers | 4,589 | 1,982 | 2,661 | 4,530 | 420 | (1,550) | 12,632 | ||||||||||||||||||||||||||||||||||
| Other revenues (1) | 39 | 43 | 8 | 2,236 | 24 | (2) | 2,348 | ||||||||||||||||||||||||||||||||||
| Other adjustments (2) | — | — | — | (4,977) | — | 500 | (4,477) | ||||||||||||||||||||||||||||||||||
| Total revenues | $ | 4,628 | $ | 2,025 | $ | 2,669 | $ | 1,789 | $ | 444 | $ | (1,052) | $ | 10,503 | |||||||||||||||||||||||||||
| Transmission, Power & Gulf | Northeast G&P | West | Gas & NGL Marketing Services | Other | Eliminations | Total | |||||||||||||||||||||||||||||||||||
(Millions) | |||||||||||||||||||||||||||||||||||||||||
| 2023 | |||||||||||||||||||||||||||||||||||||||||
| Revenues from contracts with customers: | |||||||||||||||||||||||||||||||||||||||||
| Service revenues: | |||||||||||||||||||||||||||||||||||||||||
| Regulated interstate natural gas transportation and storage | $ | 3,334 | $ | — | $ | — | $ | — | $ | — | $ | (60) | $ | 3,274 | |||||||||||||||||||||||||||
| Gathering, processing, transportation, fractionation, and storage: | |||||||||||||||||||||||||||||||||||||||||
Monetary consideration | 443 | 1,782 | 1,478 | — | — | (170) | 3,533 | ||||||||||||||||||||||||||||||||||
| Commodity consideration | 38 | 5 | 103 | — | — | — | 146 | ||||||||||||||||||||||||||||||||||
Other | 30 | 87 | 12 | 1 | — | (15) | 115 | ||||||||||||||||||||||||||||||||||
| Total service revenues | 3,845 | 1,874 | 1,593 | 1 | — | (245) | 7,068 | ||||||||||||||||||||||||||||||||||
| Product sales | 252 | 132 | 441 | 4,615 | 442 | (954) | 4,928 | ||||||||||||||||||||||||||||||||||
| Total revenues from contracts with customers | 4,097 | 2,006 | 2,034 | 4,616 | 442 | (1,199) | 11,996 | ||||||||||||||||||||||||||||||||||
| Other revenues (1) | 53 | 27 | 101 | 4,294 | 64 | (2) | 4,537 | ||||||||||||||||||||||||||||||||||
| Other adjustments (2) | — | — | — | (6,032) | — | 406 | (5,626) | ||||||||||||||||||||||||||||||||||
| Total revenues | $ | 4,150 | $ | 2,033 | $ | 2,135 | $ | 2,878 | $ | 506 | $ | (795) | $ | 10,907 | |||||||||||||||||||||||||||
______________
(1)Revenues not derived from contracts with customers primarily consist of physical product sales related to commodity derivative contracts, realized and unrealized gains and losses associated with Williams’ commodity derivative contracts, which are reported in Net gain (loss) from commodity derivatives in the Consolidated Statement of Income, management fees received for certain services provided to operated equity-method investments, and leasing revenues associated with the Williams headquarters building.
(2)Other adjustments reflect certain costs of Gas & NGL Marketing Services’ risk management activities. 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 in the Consolidated Statement of Income.
For Transco and NWP, revenue disaggregation by major service line includes Natural gas transportation, Natural gas storage, Natural gas product sales, and Other, which are separately presented in their Statements of Net Income.
Contract Assets
The following table presents a reconciliation of contract assets:
| Year Ended December 31, | |||||||||||||||||||||||||||||||||||
| Williams | Transco | NWP | |||||||||||||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||||||||||||
| (Millions) | |||||||||||||||||||||||||||||||||||
| Balance at beginning of year | $ | 98 | $ | 36 | $ | 10 | $ | — | $ | 21 | $ | 17 | |||||||||||||||||||||||
| Revenue recognized in excess of amounts invoiced | 86 | 170 | 5 | 10 | 6 | 6 | |||||||||||||||||||||||||||||
| Contract assets acquired | — | 36 | — | — | — | — | |||||||||||||||||||||||||||||
| Minimum volume commitments invoiced | (58) | (144) | — | — | — | — | |||||||||||||||||||||||||||||
| Amortization of contract assets | (17) | — | (2) | — | (3) | (2) | |||||||||||||||||||||||||||||
| Balance at end of year | $ | 109 | $ | 98 | $ | 13 | $ | 10 | $ | 24 | $ | 21 | |||||||||||||||||||||||
Contract Liabilities
The following table presents a reconciliation of contract liabilities:
| Year Ended December 31, | |||||||||||||||||||||||||||||||||||
| Williams | Transco | NWP | |||||||||||||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||||||||||||
| (Millions) | |||||||||||||||||||||||||||||||||||
| Balance at beginning of year | $ | 1,046 | $ | 1,081 | $ | 173 | $ | 184 | $ | — | $ | 2 | |||||||||||||||||||||||
| Payments received and deferred | 198 | 183 | — | — | — | — | |||||||||||||||||||||||||||||
| Liabilities acquired and other additions | 23 | 53 | — | — | — | — | |||||||||||||||||||||||||||||
Significant financing component | 7 | 8 | — | — | — | — | |||||||||||||||||||||||||||||
| Liabilities reclassified as held for sale | (19) | — | — | — | — | — | |||||||||||||||||||||||||||||
| Recognized in revenue | (307) | (279) | (10) | (11) | — | (2) | |||||||||||||||||||||||||||||
| Balance at end of year | $ | 948 | $ | 1,046 | $ | 163 | $ | 173 | $ | — | $ | — | |||||||||||||||||||||||
Remaining Performance Obligations
Remaining performance obligations primarily include reservation charges on contracted capacity for Williams’ gas pipeline firm transportation contracts with customers, storage capacity contracts, long-term contracts containing MVC associated with midstream businesses, and fixed payments associated with offshore gathering and transportation. For Williams’ interstate natural gas pipeline businesses, including Transco and NWP, remaining performance obligations generally reflect the expected rates for such services for the life of the related contracts; however, these rates may change based on future tariffs approved by the FERC.
Remaining performance obligations exclude variable consideration, including contracts with variable consideration for which it has elected the practical expedient for consideration recognized in revenue as billed. Certain of its contracts contain evergreen and other renewal provisions for periods beyond the initial term of the contract. The remaining performance obligation amounts as of December 31, 2025, do not consider potential future performance obligations for which the renewal has not been exercised and exclude contracts with customers for which the underlying facilities have not received FERC authorization to be placed into service. Consideration received prior to December 31, 2025, that will be recognized in future periods is also excluded from its remaining performance obligations and is instead reflected in contract liabilities.
The following tables present the amount of the contract liabilities balance expected to be recognized as revenue when performance obligations are satisfied and the transaction price allocated to the remaining performance obligations under certain contracts as of December 31, 2025.
| Contract Liabilities | |||||||||||||||||
| Williams | Transco | NWP | |||||||||||||||
| (Millions) | |||||||||||||||||
2026 (one year) | $ | 169 | $ | 10 | $ | — | |||||||||||
2027 (one year) | 145 | 10 | — | ||||||||||||||
2028 (one year) | 120 | 11 | — | ||||||||||||||
2029 (one year) | 91 | 11 | — | ||||||||||||||
2030 (one year) | 68 | 10 | — | ||||||||||||||
Thereafter | 355 | 111 | — | ||||||||||||||
| Total | $ | 948 | $ | 163 | $ | — | |||||||||||
| Remaining Performance Obligations | |||||||||||||||||
| Williams | Transco | NWP | |||||||||||||||
| (Millions) | |||||||||||||||||
2026 (one year) | $ | 4,589 | $ | 2,990 | $ | 399 | |||||||||||
2027 (one year) | 4,265 | 2,772 | 386 | ||||||||||||||
2028 (one year) | 3,865 | 2,576 | 367 | ||||||||||||||
2029 (one year) | 2,970 | 1,846 | 348 | ||||||||||||||
2030 (one year) | 2,703 | 1,759 | 342 | ||||||||||||||
Thereafter | 13,779 | 9,990 | 1,919 | ||||||||||||||
| Total | $ | 32,171 | $ | 21,933 | $ | 3,761 | |||||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 24, 2026 | Showing above |
| 2024 | Feb 25, 2025 | |
| 2023 | Feb 21, 2024 | |
| 2022 | Feb 27, 2023 | |
| 2021 | Feb 28, 2022 | |
| 2020 | Feb 24, 2021 | |
| 2019 | Feb 24, 2020 | |
| 2018 | Feb 21, 2019 | |
About Revenue Disclosures
Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.
Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.