WILLIAMS COMPANIES, INC.WMB
WILLIAMS COMPANIES, INC. Segments Disclosure
Note 19 – Segment Disclosures
Williams
Williams’ reportable segments are Transmission, Power & Gulf; Northeast G&P; West; and Gas & NGL Marketing Services. All remaining business activities are included in Other. (See Note 1 – Description of Business, Basis of Presentation, and Summary of Significant Accounting Policies.)
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 or write-offs 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 upstream 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, Power & Gulf | Northeast G&P | West | Gas & NGL Marketing Services (1) | Total | |||||||||||||||||||||||||
| (Millions) | |||||||||||||||||||||||||||||
| 2025 | |||||||||||||||||||||||||||||
| Segment revenues: | |||||||||||||||||||||||||||||
| Service revenues | |||||||||||||||||||||||||||||
| External | $ | 4,731 | $ | 1,980 | $ | 1,621 | $ | — | $ | 8,332 | |||||||||||||||||||
| Internal | 95 | 15 | 230 | — | 340 | ||||||||||||||||||||||||
| Total service revenues | 4,826 | 1,995 | 1,851 | — | 8,672 | ||||||||||||||||||||||||
| Total service revenues – commodity consideration | 104 | 2 | 86 | — | 192 | ||||||||||||||||||||||||
| Product sales | |||||||||||||||||||||||||||||
| External | 156 | 49 | 142 | 2,776 | 3,123 | ||||||||||||||||||||||||
| Internal | 356 | 122 | 764 | (670) | 572 | ||||||||||||||||||||||||
| Total product sales | 512 | 171 | 906 | 2,106 | 3,695 | ||||||||||||||||||||||||
| Net gain (loss) from commodity derivatives | |||||||||||||||||||||||||||||
| Realized | 1 | — | 4 | (69) | (64) | ||||||||||||||||||||||||
| Unrealized | — | — | — | 138 | 138 | ||||||||||||||||||||||||
| Total net gain (loss) from commodity derivatives (2) | 1 | — | 4 | 69 | 74 | ||||||||||||||||||||||||
| Total revenues of reportable segments | $ | 5,443 | $ | 2,168 | $ | 2,847 | $ | 2,175 | $ | 12,633 | |||||||||||||||||||
| Reconciliation of revenues: | |||||||||||||||||||||||||||||
| Revenues from upstream operations, corporate, and other business activities | 632 | ||||||||||||||||||||||||||||
| Net unrealized gain (loss) from commodity derivatives for upstream operations | 10 | ||||||||||||||||||||||||||||
| Eliminations | (1,325) | ||||||||||||||||||||||||||||
| Total consolidated revenues | $ | 11,950 | |||||||||||||||||||||||||||
| Segment costs and expenses and Proportional Modified EBITDA of equity-method investments: | |||||||||||||||||||||||||||||
| Product costs and net realized processing commodity expenses | (549) | (149) | (876) | (1,811) | |||||||||||||||||||||||||
| Net unrealized gain (loss) from commodity derivatives within Net processing commodity expenses | — | — | — | 2 | |||||||||||||||||||||||||
| Operating and administrative expenses (3) | (1,142) | (449) | (605) | (93) | |||||||||||||||||||||||||
| Recoverable power, transportation, and storage costs (4) | (247) | (172) | (62) | — | |||||||||||||||||||||||||
| Other segment income (expenses) - net (5) | 68 | (10) | 4 | 2 | |||||||||||||||||||||||||
| Impairment or write-off of certain assets (6) | — | — | (212) | — | |||||||||||||||||||||||||
| Proportional Modified EBITDA of equity-method investments | 147 | 640 | 142 | 36 | |||||||||||||||||||||||||
Total Modified EBITDA of reportable segments | $ | 3,720 | $ | 2,028 | $ | 1,238 | $ | 311 | $ | 7,297 | |||||||||||||||||||
| Reconciliation of Modified EBITDA: | |||||||||||||||||||||||||||||
Contributions from upstream operations, corporate, and other business activities | 376 | ||||||||||||||||||||||||||||
| Depreciation, depletion, and amortization expenses | (2,347) | ||||||||||||||||||||||||||||
| Equity earnings (losses) | 760 | ||||||||||||||||||||||||||||
| Other investing income (loss) - net | 42 | ||||||||||||||||||||||||||||
| Interest expense | (1,442) | ||||||||||||||||||||||||||||
Accretion expense associated with AROs for nonregulated operations | (96) | ||||||||||||||||||||||||||||
| Proportional Modified EBITDA of equity-method investments | (965) | ||||||||||||||||||||||||||||
| Income (loss) before income taxes | $ | 3,625 | |||||||||||||||||||||||||||
| Equity-method investments by reportable segment | $ | 512 | $ | 3,236 | $ | 460 | $ | 292 | $ | 4,500 | |||||||||||||||||||
| Other equity-method investments | 18 | ||||||||||||||||||||||||||||
| Total equity-method investments | $ | 4,518 | |||||||||||||||||||||||||||
| Segment assets | $ | 26,515 | $ | 12,533 | $ | 12,398 | $ | 317 | $ | 51,763 | |||||||||||||||||||
| Total current assets | 3,244 | ||||||||||||||||||||||||||||
Regulatory assets, deferred charges, and other | 2,011 | ||||||||||||||||||||||||||||
| Assets of upstream operations, corporate, and other business activities | 1,555 | ||||||||||||||||||||||||||||
| Total assets | $ | 58,573 | |||||||||||||||||||||||||||
| Additions to long-lived segment assets | $ | 3,845 | $ | 209 | $ | 1,067 | $ | 1 | $ | 5,122 | |||||||||||||||||||
| Additions to long-lived assets of upstream operations, corporate, and other business activities | 302 | ||||||||||||||||||||||||||||
| Total additions to long-lived assets | $ | 5,424 | |||||||||||||||||||||||||||
| Transmission, Power & Gulf | Northeast G&P | West | Gas & NGL Marketing Services (1) | Total | |||||||||||||||||||||||||
| (Millions) | |||||||||||||||||||||||||||||
| 2024 | |||||||||||||||||||||||||||||
| Segment revenues: | |||||||||||||||||||||||||||||
| Service revenues | |||||||||||||||||||||||||||||
| External | $ | 4,157 | $ | 1,900 | $ | 1,558 | $ | — | $ | 7,615 | |||||||||||||||||||
| Internal | 89 | 13 | 160 | — | 262 | ||||||||||||||||||||||||
| Total service revenues | 4,246 | 1,913 | 1,718 | — | 7,877 | ||||||||||||||||||||||||
| Total service revenues – commodity consideration | 54 | 2 | 78 | — | 134 | ||||||||||||||||||||||||
| Product sales | |||||||||||||||||||||||||||||
| External | 144 | 24 | 178 | 2,500 | 2,846 | ||||||||||||||||||||||||
| Internal | 184 | 86 | 691 | (448) | 513 | ||||||||||||||||||||||||
| Total product sales | 328 | 110 | 869 | 2,052 | 3,359 | ||||||||||||||||||||||||
| Net gain (loss) from commodity derivatives | |||||||||||||||||||||||||||||
| Realized | — | — | 4 | 72 | 76 | ||||||||||||||||||||||||
| Unrealized | — | — | — | (335) | (335) | ||||||||||||||||||||||||
| Total net gain (loss) from commodity derivatives (2) | — | — | 4 | (263) | (259) | ||||||||||||||||||||||||
Total revenues of reportable segments | $ | 4,628 | $ | 2,025 | $ | 2,669 | $ | 1,789 | $ | 11,111 | |||||||||||||||||||
| Reconciliation of revenues: | |||||||||||||||||||||||||||||
| Revenues from upstream operations, corporate, and other business activities | 470 | ||||||||||||||||||||||||||||
| Net unrealized gain (loss) from commodity derivatives for upstream operations | (26) | ||||||||||||||||||||||||||||
| Eliminations | (1,052) | ||||||||||||||||||||||||||||
| Total consolidated revenues | $ | 10,503 | |||||||||||||||||||||||||||
| Segment costs and expenses and Proportional Modified EBITDA of equity-method investments: | |||||||||||||||||||||||||||||
| Product costs and net realized processing commodity expenses | (329) | (88) | (844) | (1,799) | |||||||||||||||||||||||||
| Net unrealized gain (loss) from commodity derivatives within Net processing commodity expenses | — | — | — | (6) | |||||||||||||||||||||||||
Operating and administrative expenses (3) | (1,104) | (441) | (591) | (108) | |||||||||||||||||||||||||
Recoverable power, transportation, and storage costs (4) | (250) | (143) | (49) | — | |||||||||||||||||||||||||
Other segment income (expenses) - net (5) | 155 | 3 | (5) | — | |||||||||||||||||||||||||
| Proportional Modified EBITDA of equity-method investments | 173 | 602 | 132 | — | |||||||||||||||||||||||||
Total Modified EBITDA of reportable segments | $ | 3,273 | $ | 1,958 | $ | 1,312 | $ | (124) | $ | 6,419 | |||||||||||||||||||
| Reconciliation of Modified EBITDA: | |||||||||||||||||||||||||||||
Contributions from upstream operations, corporate, and other business activities | 237 | ||||||||||||||||||||||||||||
Depreciation, depletion, and amortization expenses | (2,219) | ||||||||||||||||||||||||||||
| Equity earnings (losses) | 560 | ||||||||||||||||||||||||||||
| Other investing income (loss) - net | 343 | ||||||||||||||||||||||||||||
| Interest expense | (1,364) | ||||||||||||||||||||||||||||
Accretion expense associated with AROs for nonregulated operations | (81) | ||||||||||||||||||||||||||||
| Proportional Modified EBITDA of equity-method investments | (909) | ||||||||||||||||||||||||||||
| Income (loss) before income taxes | $ | 2,986 | |||||||||||||||||||||||||||
| Equity-method investments by reportable segment | $ | 272 | $ | 3,346 | $ | 476 | $ | — | $ | 4,094 | |||||||||||||||||||
Other equity-method investments | 13 | ||||||||||||||||||||||||||||
| Total equity-method investments | $ | 4,107 | |||||||||||||||||||||||||||
| Segment assets | $ | 23,149 | $ | 12,918 | $ | 12,144 | $ | 46 | $ | 48,257 | |||||||||||||||||||
| Total current assets | 2,661 | ||||||||||||||||||||||||||||
Regulatory assets, deferred charges, and other | 1,830 | ||||||||||||||||||||||||||||
| Assets of upstream operations, corporate, and other business activities | 1,784 | ||||||||||||||||||||||||||||
| Total assets | $ | 54,532 | |||||||||||||||||||||||||||
Additions to long-lived segment assets | $ | 4,399 | $ | 210 | $ | 529 | $ | 2 | $ | 5,140 | |||||||||||||||||||
Additions to long-lived assets of upstream operations, corporate, and other business activities | 458 | ||||||||||||||||||||||||||||
Total additions to long-lived assets | $ | 5,598 | |||||||||||||||||||||||||||
| Transmission, Power & Gulf | Northeast G&P | West | Gas & NGL Marketing Services (1) | Total | |||||||||||||||||||||||||
| (Millions) | |||||||||||||||||||||||||||||
| 2023 | |||||||||||||||||||||||||||||
| Segment revenues: | |||||||||||||||||||||||||||||
| Service revenues | |||||||||||||||||||||||||||||
| External | $ | 3,766 | $ | 1,868 | $ | 1,376 | $ | 1 | $ | 7,011 | |||||||||||||||||||
| Internal | 92 | 28 | 126 | — | 246 | ||||||||||||||||||||||||
| Total service revenues | 3,858 | 1,896 | 1,502 | 1 | 7,257 | ||||||||||||||||||||||||
| Total service revenues – commodity consideration | 38 | 5 | 103 | — | 146 | ||||||||||||||||||||||||
| Product sales | |||||||||||||||||||||||||||||
| External | 146 | 34 | 80 | 2,382 | 2,642 | ||||||||||||||||||||||||
| Internal | 106 | 98 | 361 | (322) | 243 | ||||||||||||||||||||||||
| Total product sales | 252 | 132 | 441 | 2,060 | 2,885 | ||||||||||||||||||||||||
| Net gain (loss) from commodity derivatives | |||||||||||||||||||||||||||||
| Realized | 2 | — | 89 | 115 | 206 | ||||||||||||||||||||||||
| Unrealized | — | — | — | 702 | 702 | ||||||||||||||||||||||||
| Total net gain (loss) from commodity derivatives (2) | 2 | — | 89 | 817 | 908 | ||||||||||||||||||||||||
| Total revenues of reportable segments | $ | 4,150 | $ | 2,033 | $ | 2,135 | $ | 2,878 | $ | 11,196 | |||||||||||||||||||
| Reconciliation of revenues: | |||||||||||||||||||||||||||||
| Revenues from upstream operations, corporate, and other business activities | 505 | ||||||||||||||||||||||||||||
Net unrealized gain (loss) from commodity derivatives for upstream operations | 1 | ||||||||||||||||||||||||||||
| Eliminations | (795) | ||||||||||||||||||||||||||||
| Total consolidated revenues | $ | 10,907 | |||||||||||||||||||||||||||
| Segment costs and expenses and Proportional Modified EBITDA of equity-method investments: | |||||||||||||||||||||||||||||
| Product costs and net realized processing commodity expenses | (259) | (125) | (517) | (1,786) | |||||||||||||||||||||||||
| Net unrealized gain (loss) from commodity derivatives within Net processing commodity expenses | — | — | — | (43) | |||||||||||||||||||||||||
Operating and administrative expenses (3) | (1,034) | (424) | (502) | (98) | |||||||||||||||||||||||||
Recoverable power, transportation, and storage costs (4) | (241) | (132) | (37) | — | |||||||||||||||||||||||||
| Other segment income (expenses) - net (5) | 118 | (10) | 7 | (1) | |||||||||||||||||||||||||
| Impairment or write-off of certain assets | — | — | (10) | — | |||||||||||||||||||||||||
| Gain on sale of business (7) | 129 | — | — | — | |||||||||||||||||||||||||
| Proportional Modified EBITDA of equity-method investments | 205 | 574 | 162 | — | |||||||||||||||||||||||||
Total Modified EBITDA of reportable segments | $ | 3,068 | $ | 1,916 | $ | 1,238 | $ | 950 | $ | 7,172 | |||||||||||||||||||
| Reconciliation of Modified EBITDA: | |||||||||||||||||||||||||||||
Contributions from upstream operations, corporate, and other business activities | 307 | ||||||||||||||||||||||||||||
| Unallocated Net gain from Energy Transfer litigation judgment (8) | 534 | ||||||||||||||||||||||||||||
Depreciation, depletion, and amortization expenses | (2,071) | ||||||||||||||||||||||||||||
| Equity earnings (losses) | 589 | ||||||||||||||||||||||||||||
| Other investing income (loss) - net | 108 | ||||||||||||||||||||||||||||
| Interest expense | (1,236) | ||||||||||||||||||||||||||||
Accretion expense associated with AROs for nonregulated operations | (59) | ||||||||||||||||||||||||||||
| Proportional Modified EBITDA of equity-method investments | (939) | ||||||||||||||||||||||||||||
Income (loss) before income taxes | $ | 4,405 | |||||||||||||||||||||||||||
| Equity-method investments by reportable segment | $ | 652 | $ | 3,477 | $ | 477 | $ | — | $ | 4,606 | |||||||||||||||||||
Other equity-method investments | 8 | ||||||||||||||||||||||||||||
| Total equity-method investments | $ | 4,614 | |||||||||||||||||||||||||||
| Segment assets | $ | 19,705 | $ | 13,319 | $ | 12,188 | $ | 77 | $ | 45,289 | |||||||||||||||||||
| Total current assets | 4,513 | ||||||||||||||||||||||||||||
Regulatory assets, deferred charges, and other | 1,573 | ||||||||||||||||||||||||||||
| Assets of upstream operations, corporate, and other business activities | 1,252 | ||||||||||||||||||||||||||||
| Total assets | $ | 52,627 | |||||||||||||||||||||||||||
Additions to long-lived segment assets | $ | 2,501 | $ | 340 | $ | 1,186 | $ | 7 | $ | 4,034 | |||||||||||||||||||
Additions to long-lived assets of upstream operations, corporate, and other business activities | 279 | ||||||||||||||||||||||||||||
Total additions to long-lived assets | $ | 4,313 | |||||||||||||||||||||||||||
_______________________
(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.
(6) Impairment or write-off of certain assets primarily includes a $25 million write-off of certain compression assets within the West segment in September 2025 and a $176 million impairment of certain gas gathering assets within the West segment in December 2025 (Note 16 – Fair Value Measurements, Guarantees, and Concentration of Credit Risk).
(7) Gain on sale of business reflects a gain recognized on the sale of certain liquids pipelines in the Gulf Coast region in September 2023 (Note 3 – Acquisitions and Divestitures).
(8) Net gain from Energy Transfer litigation judgment resulted from a favorable ruling in November 2023 (Note 1 – Description of Business, Basis of Presentation, and Summary of Significant Accounting Policies).
Transco
Transco manages and evaluates its business as a single reportable segment. Transco’s CODM is the Senior Vice President, Transmission, Power & Gulf. 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 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, Power & Gulf. 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 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.
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 | |
| 2017 | Feb 22, 2018 | |
| 2016 | Feb 22, 2017 | |
| 2015 | Feb 26, 2016 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.