QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | ||||||||||||||||
(Address of principal executive offices) | (Zip Code) |
Large accelerated filer | ¨ | Accelerated filer | ¨ | þ | Smaller reporting company | Emerging growth company |
Page | |||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
(Thousands) | |||||||||||||||||||||||
Operating Revenues: | |||||||||||||||||||||||
Natural gas transportation | $ | $ | $ | $ | |||||||||||||||||||
Natural gas storage | |||||||||||||||||||||||
Other | |||||||||||||||||||||||
Total operating revenues | |||||||||||||||||||||||
Operating Expenses: | |||||||||||||||||||||||
General and administrative | |||||||||||||||||||||||
Operation and maintenance | |||||||||||||||||||||||
Depreciation and amortization | |||||||||||||||||||||||
Regulatory debits | |||||||||||||||||||||||
Taxes — other than income taxes | |||||||||||||||||||||||
Regulatory charges resulting from tax rate changes | |||||||||||||||||||||||
Other (income) loss, net | ( | ( | ( | ( | |||||||||||||||||||
Total operating expenses | |||||||||||||||||||||||
Operating Income | |||||||||||||||||||||||
Other (Income) and Other Expenses: | |||||||||||||||||||||||
Interest expense | |||||||||||||||||||||||
Allowance for equity and borrowed funds used during construction (AFUDC) | ( | ( | ( | ( | |||||||||||||||||||
Miscellaneous other (income) loss, net | ( | ( | ( | ( | |||||||||||||||||||
Total other (income) and other expenses | |||||||||||||||||||||||
Net Income | $ | $ | $ | $ |
June 30, 2022 | December 31, 2021 | ||||||||||
(Thousands) | |||||||||||
ASSETS | |||||||||||
Current Assets: | |||||||||||
Cash | $ | $ | |||||||||
Receivables: | |||||||||||
Advances to affiliate | |||||||||||
Trade | |||||||||||
Affiliates | |||||||||||
Other | |||||||||||
Materials and supplies, at average cost | |||||||||||
Exchange gas due from others | |||||||||||
Prepayments and other | |||||||||||
Total current assets | |||||||||||
Property, plant and equipment | |||||||||||
Less-Accumulated depreciation and amortization | |||||||||||
Total property, plant and equipment, net | |||||||||||
Other Assets: | |||||||||||
Regulatory assets | |||||||||||
Right-of-use assets | |||||||||||
Deferred charges and other long-term assets | |||||||||||
Total other assets | |||||||||||
Total assets | $ | $ |
June 30, 2022 | December 31, 2021 | ||||||||||
(Thousands) | |||||||||||
LIABILITIES AND MEMBER’S EQUITY | |||||||||||
Current Liabilities: | |||||||||||
Payables: | |||||||||||
Trade | $ | $ | |||||||||
Affiliates | |||||||||||
Accrued liabilities: | |||||||||||
Exchange gas due to others | |||||||||||
Customer advances | |||||||||||
Taxes — other than income taxes | |||||||||||
Interest | |||||||||||
Other | |||||||||||
Total current liabilities | |||||||||||
Long-Term Debt | |||||||||||
Other Long-Term Liabilities: | |||||||||||
Regulatory liabilities | |||||||||||
Asset retirement obligations | |||||||||||
Lease liability | |||||||||||
Other | |||||||||||
Total other long-term liabilities | |||||||||||
Contingent Liabilities and Commitments (Note 3) | |||||||||||
Member’s Equity: | |||||||||||
Member’s capital | |||||||||||
Retained earnings | |||||||||||
Total member’s equity | |||||||||||
Total liabilities and member’s equity | $ | $ |
Three Months Ended June 30, | |||||||||||
2022 | 2021 | ||||||||||
(Thousands) | |||||||||||
Member’s Capital: | |||||||||||
Balance at beginning and end of period | $ | $ | |||||||||
Retained Earnings: | |||||||||||
Balance at beginning of period | |||||||||||
Net income | |||||||||||
Cash distributions to parent | ( | ( | |||||||||
Balance at end of period | |||||||||||
Total Member’s Equity | $ | $ | |||||||||
Six Months Ended June 30, | |||||||||||
2022 | 2021 | ||||||||||
(Thousands) | |||||||||||
Member’s Capital: | |||||||||||
Balance at beginning and end of period | $ | $ | |||||||||
Retained Earnings: | |||||||||||
Balance at beginning of period | |||||||||||
Net income | |||||||||||
Cash distributions to parent | ( | ( | |||||||||
Balance at end of period | |||||||||||
Total Member’s Equity | $ | $ |
Six Months Ended June 30, | |||||||||||
2022 | 2021 | ||||||||||
(Thousands) | |||||||||||
OPERATING ACTIVITIES: | |||||||||||
Net income | $ | $ | |||||||||
Adjustments to reconcile net cash provided (used) by operating activities: | |||||||||||
Depreciation and amortization | |||||||||||
Regulatory debits | |||||||||||
Regulatory charges resulting from tax rate changes | |||||||||||
Amortization of deferred charges and credits | ( | ( | |||||||||
Allowance for equity funds used during construction (equity AFUDC) | ( | ( | |||||||||
Changes in current assets and liabilities: | |||||||||||
Trade and other accounts receivable | ( | ||||||||||
Affiliate receivables | ( | ||||||||||
Materials and supplies | ( | ||||||||||
Other current assets | ( | ||||||||||
Trade accounts payable | |||||||||||
Affiliate payables | ( | ||||||||||
Other accrued liabilities | ( | ||||||||||
Changes in long-term assets and liabilities: | |||||||||||
Regulatory liabilities | |||||||||||
Other, net | |||||||||||
Net cash provided (used) by operating activities | |||||||||||
FINANCING ACTIVITIES: | |||||||||||
Cash distributions to parent | ( | ( | |||||||||
Net cash provided (used) by financing activities | ( | ( | |||||||||
INVESTING ACTIVITIES: | |||||||||||
Property, plant and equipment: | |||||||||||
Capital expenditures (1) | ( | ( | |||||||||
Contributions and advances for construction costs | |||||||||||
Disposal of property, plant and equipment, net | ( | ( | |||||||||
Advances to affiliate, net | ( | ( | |||||||||
Net cash provided (used) by investing activities | ( | ( | |||||||||
Increase (decrease) in cash | |||||||||||
Cash at beginning of period | |||||||||||
Cash at end of period | $ | $ | |||||||||
____________________________________ | |||||||||||
(1) Increases to property, plant and equipment, exclusive of equity AFUDC | $ | ( | $ | ( | |||||||
Changes in related accounts payable and accrued liabilities | ( | ||||||||||
Capital expenditures | $ | ( | $ | ( |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
June 30, | June 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
(Thousands) | |||||||||||||||||||||||
Balance at beginning of period | $ | $ | $ | $ | |||||||||||||||||||
Revenue recognized in excess of amounts invoiced | |||||||||||||||||||||||
Balance at end of period | $ | $ | $ | $ |
Notes (Continued) |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
June 30, | June 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
(Thousands) | |||||||||||||||||||||||
Balance at beginning of period | $ | $ | $ | $ | |||||||||||||||||||
Recognized in revenue | ( | ( | ( | ( | |||||||||||||||||||
Balance at end of period | $ | $ | $ | $ |
Contract Liabilities | Remaining Performance Obligations | ||||||||||
(Thousands) | |||||||||||
2022 ( | $ | $ | |||||||||
2023 ( | |||||||||||
2024 ( | |||||||||||
2025 ( | |||||||||||
2026 ( | |||||||||||
Thereafter | |||||||||||
Total | $ | $ |
Notes (Continued) |
Notes (Continued) |
Notes (Continued) |
Exhibit | Description | |||||||
2 | ||||||||
3.1 | ||||||||
3.2 | ||||||||
31.1* | ||||||||
31.2* | ||||||||
32** | ||||||||
101.INS* | XBRL Instance Document. The instance document does not appear in the interactive data file because its XBRL tags are embedded within the inline XBRL document. | |||||||
101.SCH* | XBRL Taxonomy Extension Schema. | |||||||
101.CAL* | XBRL Taxonomy Extension Calculation Linkbase. | |||||||
101.DEF* | XBRL Taxonomy Definition Linkbase. | |||||||
101.LAB* | XBRL Taxonomy Extension Label Linkbase. | |||||||
101.PRE* | XBRL Taxonomy Extension Presentation Linkbase. | |||||||
104* | Cover Page Interactive Data File. The cover page interactive data file does not appear in the interactive data file because its XBRL tags are embedded within the inline XBRL document (contained in Exhibit 101). |
* | Filed herewith. | ||||
** | Furnished herewith. |
NORTHWEST PIPELINE LLC (Registrant) | ||||||||||||||
Date: | August 1, 2022 | By: | /s/ Billeigh W. Mark | |||||||||||
Billeigh W. Mark | ||||||||||||||
Controller | ||||||||||||||
(Principal Accounting Officer) |
By: | /s/ Scott A. Hallam | ||||
Scott A. Hallam | |||||
Senior Vice President | |||||
(Principal Executive Officer) |
By: | /s/ Mary A. Hausman | ||||
Mary A. Hausman | |||||
Vice President and Chief Accounting Officer | |||||
(Principal Financial Officer) |
/s/ Scott A. Hallam | ||
Scott A. Hallam | ||
Senior Vice President | ||
August 1, 2022 |
/s/ Mary A. Hausman | ||
Mary A. Hausman | ||
Vice President and Chief Accounting Officer | ||
August 1, 2022 |
Statement of Net Income (Unaudited) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2022 |
Jun. 30, 2021 |
Jun. 30, 2022 |
Jun. 30, 2021 |
|
Operating Revenues: | ||||
Revenues | $ 107,858 | $ 107,922 | $ 221,677 | $ 220,816 |
Operating Expenses: | ||||
General and administrative | 13,030 | 11,460 | 24,789 | 23,130 |
Operation and maintenance | 22,741 | 19,533 | 40,486 | 36,179 |
Depreciation and amortization | 28,507 | 28,200 | 57,149 | 56,268 |
Regulatory debits | 364 | 350 | 818 | 698 |
Taxes — other than income taxes | 4,349 | 4,281 | 8,430 | 8,497 |
Regulatory charges resulting from tax rate changes | 5,879 | 5,879 | 11,693 | 11,693 |
Other (income) loss, net | (56) | (15) | (95) | (46) |
Total operating expenses | 74,814 | 69,688 | 143,270 | 136,419 |
Operating Income | 33,044 | 38,234 | 78,407 | 84,397 |
Other (Income) and Other Expenses: | ||||
Interest expense | 7,691 | 7,480 | 15,319 | 14,841 |
Allowance for equity and borrowed funds used during construction (AFUDC) | (769) | (374) | (1,469) | (639) |
Miscellaneous other (income) loss, net | (802) | (184) | (1,601) | (345) |
Total other (income) and other expenses | 6,120 | 6,922 | 12,249 | 13,857 |
Net Income | 26,924 | 31,312 | 66,158 | 70,540 |
Natural gas transportation | ||||
Operating Revenues: | ||||
Revenues | 104,213 | 104,051 | 213,920 | 213,328 |
Natural gas storage | ||||
Operating Revenues: | ||||
Revenues | 3,223 | 3,589 | 6,407 | 6,633 |
Other | ||||
Operating Revenues: | ||||
Revenues | $ 422 | $ 282 | $ 1,350 | $ 855 |
Statement of Changes in Member's Equity (Unaudited) - USD ($) $ in Thousands |
Total |
Member's Capital |
Retained Earnings |
---|---|---|---|
Balance at beginning of period at Dec. 31, 2020 | $ 1,073,892 | $ 66,503 | |
Net income | $ 70,540 | 70,540 | |
Cash distributions to parent | (99,000) | (99,000) | |
Balance at end of period at Jun. 30, 2021 | 1,111,935 | 1,073,892 | 38,043 |
Balance at beginning of period at Mar. 31, 2021 | 1,073,892 | 50,731 | |
Net income | 31,312 | 31,312 | |
Cash distributions to parent | (44,000) | ||
Balance at end of period at Jun. 30, 2021 | 1,111,935 | 1,073,892 | 38,043 |
Balance at beginning of period at Dec. 31, 2021 | 1,109,403 | 1,073,892 | 35,511 |
Net income | 66,158 | 66,158 | |
Cash distributions to parent | (78,500) | (78,500) | |
Balance at end of period at Jun. 30, 2022 | 1,097,061 | 1,073,892 | 23,169 |
Balance at beginning of period at Mar. 31, 2022 | 1,073,892 | 32,745 | |
Net income | 26,924 | 26,924 | |
Cash distributions to parent | (36,500) | ||
Balance at end of period at Jun. 30, 2022 | $ 1,097,061 | $ 1,073,892 | $ 23,169 |
Basis of Presentation (Notes) |
6 Months Ended |
---|---|
Jun. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation In this report, Northwest Pipeline LLC (Northwest) is at times referred to in the first person as “we,” “us,” or “our.” Northwest is indirectly owned by The Williams Companies, Inc. (Williams), a publicly traded Delaware corporation. We own and operate an interstate natural gas pipeline system that is regulated by the Federal Energy Regulatory Commission (FERC). General Our accompanying interim financial statements do not include all the notes in our annual financial statements and, therefore, should be read in conjunction with our financial statements and notes thereto for the year ended December 31, 2021, in our Annual Report on Form 10-K. The accompanying unaudited financial statements include all normal recurring adjustments and others that, in the opinion of management, are necessary to present fairly our interim financial statements. The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in our financial statements and accompanying notes. Actual results could differ from those estimates. A reclassification within Operating Revenues on the Statement of Net Income from the service line of Natural gas storage to Other of approximately $0.3 million and $0.9 million for the three and six months ended June 30, 2021, respectively, has been made to conform to the 2022 presentation.
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Revenue Recognition (Notes) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue Recognition [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue Recognition | Revenue Recognition Revenue by Category Our revenue disaggregation by major service line includes Natural gas transportation, Natural gas storage, and Other, which are separately presented on the Statement of Net Income. Contract Assets The following table presents a reconciliation of our contract assets:
Contract Liabilities The following table presents a reconciliation of our contract liabilities:
Remaining Performance Obligations Our remaining performance obligations primarily include reservation charges on contracted capacity on our firm transportation and storage contracts with customers. Amounts from certain contracts included in the table below, which are subject to periodic review and approval by the FERC, reflect the rates for such services in our current FERC tariffs for the life of the related contracts; however, these rates may change based on future rate cases or settlements approved by the FERC. This table excludes the variable consideration component for commodity charges. Certain of our contracts contain evergreen and other renewal provisions for periods beyond the initial term of the contract. The remaining performance obligations as of June 30, 2022 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. The following table presents 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 June 30, 2022.
Accounts Receivable Receivables from contracts with customers are included within Receivables - Trade and Receivables - Affiliated companies and receivables that are not related to contracts with customers are included within the balance of Receivables - Advances to affiliate and Receivables - Other on our Balance Sheet.
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Contingent Liabilities and Commitments (Notes) |
6 Months Ended |
---|---|
Jun. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingent Liabilities and Commitments [Text Block] | Contingent Liabilities and Commitments Environmental Matters We are subject to the National Environmental Policy Act and other federal and state legislation regulating the environmental aspects of our business. Except as discussed below, our management believes that we are in substantial compliance with existing environmental requirements. Environmental expenditures are expensed or capitalized depending on their future economic benefit and potential for rate recovery. We believe that, with respect to any expenditures required to meet applicable standards and regulations, the FERC would grant the requisite rate relief so that substantially all of such expenditures would be permitted to be recovered through rates. Beginning in the mid-1980s, we evaluated many of our facilities for the presence of toxic and hazardous substances to determine to what extent, if any, remediation might be necessary. We identified polychlorinated biphenyl (PCB) contamination in air compressor systems, soils, and related properties at certain compressor station sites. Similarly, we identified hydrocarbon impacts at these facilities due to the former use of earthen pits, lubricating oil leaks or spills, and excess pipe coating released to the environment. In addition, heavy metals have been identified at these sites due to the former use of mercury containing meters and paint and welding rods containing lead, cadmium, and arsenic. The PCBs were remediated pursuant to a Consent Decree with the U.S. Environmental Protection Agency (EPA) in the late 1980s, and we conducted a voluntary clean-up of the hydrocarbon and mercury impacts in the early 1990s. In 2005, the Washington Department of Ecology required us to re-evaluate our previous clean-ups in Washington. During 2006 to 2015, 129 meter stations were evaluated, of which 82 required remediation. As of June 30, 2022, two meter stations are still being remediated. During 2006 to 2018, 14 compressor stations were evaluated, of which 11 required remediation. As of June 30, 2022, five compressor stations are still being remediated. At June 30, 2022, we had accrued liabilities totaling approximately $1.0 million, $0.1 million of which is recorded in Accrued liabilities - Other and $0.9 million of which is recorded in Other Long-Term Liabilities - Other on the Balance Sheet. At December 31, 2021, we had accrued liabilities totaling approximately $1.0 million, $0.1 million of which is recorded in Accrued liabilities - Other and $0.9 million of which is recorded in Other Long-Term Liabilities - Other on the Balance Sheet. We are conducting environmental assessments and implementing a variety of remedial measures that may result in increases or decreases in the total estimated costs. The EPA and various state regulatory agencies routinely propose and promulgate new rules, and issue updated guidance to existing rules. These rulemakings include, but are not limited to, rules for reciprocating internal combustion engine and combustion turbine maximum achievable control technology, review and updates to the National Ambient Air Quality Standards, and rules for new and existing source performance standards for volatile organic compounds and methane. We continuously monitor these regulatory changes and how they may impact our operations. Implementation of new or modified regulations may result in impacts to our operations and increase the cost additions to Total property, plant, and equipment, net on the Balance Sheet for both new and existing facilities in affected areas; however, due to regulatory uncertainty on final rule content and applicability timeframes, we are unable to reasonably estimate the cost of these regulatory impacts at this time. Other Matters Various other proceedings are pending against us and are considered incidental to our operations. Summary We have disclosed all significant matters for which we are unable to reasonably estimate a range of possible loss. We estimate that for all matters for which we are able to reasonably estimate a range of loss, including those noted above and others that are not individually significant, our aggregate reasonably possible losses beyond amounts accrued for all of our contingent liabilities are immaterial to our expected future annual results of operations, liquidity and financial position. These calculations have been made without consideration of any potential recovery from third parties.
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Debt and Financing Arrangements (Notes) |
6 Months Ended |
---|---|
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
Debt and Financing Arrangements | Debt and Financing Arrangements Credit Facility We, along with Williams and Transcontinental Gas Pipe Line Company, LLC (Transco), are party to a credit agreement with aggregate commitments available of $3.75 billion, with up to an additional $500 million increase in aggregate commitments available under certain circumstances. We and Transco are each able to borrow up to $500 million under this credit facility to the extent not otherwise utilized by the other co-borrowers. At June 30, 2022, no letters of credit have been issued and no loans were outstanding under the credit facility. Commercial Paper Williams participates in a $3.5 billion commercial paper program, and Williams’ management considers amounts outstanding under this program to be a reduction of available capacity under the credit facility. At June 30, 2022, $1.040 billion was outstanding under Williams’ commercial paper program.
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Financial Instruments (Notes) |
6 Months Ended |
---|---|
Jun. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Financial Instruments | Financial Instruments Fair Value of Financial Instruments The following methods and assumptions were used to estimate the fair value of each class of financial instruments for which it is practicable to estimate that value: Short-term financial assets: The carrying values of short-term financial assets that have variable interest rates (advances to affiliate), accounts receivable and accounts payable approximate fair value because of the short-term nature of these instruments. Long-term debt: The disclosed fair value of our long-term debt, which we consider as a level 2 measurement, is determined 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 our debt or similar instruments. The carrying amount and estimated fair value of our long-term debt were $579.6 million and $578.7 million, respectively, at June 30, 2022, and $579.0 million and $646.2 million, respectively, at December 31, 2021.
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Transactions with Affiliates (Notes) |
6 Months Ended |
---|---|
Jun. 30, 2022 | |
Related Party Transactions [Abstract] | |
Transactions with Affiliates | Transactions with Affiliates We are a participant in Williams’ cash management program, and we make advances to and receive advances from Williams. At June 30, 2022 and December 31, 2021, our advances to Williams totaled approximately $313.2 million and $281.4 million, respectively. These advances are represented by demand notes and are classified as Receivables - Advances to affiliate on the Balance Sheet. Advances are stated at the historical carrying amounts. Interest expense and income are recognized when earned and the collectability is reasonably assured. The interest rate on these intercompany demand notes is based upon the daily overnight investment rate paid on Williams’ excess cash at the end of each month, which was 1.21 percent at June 30, 2022. The interest income from these advances was $0.5 million for each of the three and six months ended June 30, 2022 and minimal for each of the three and six months ended June 30, 2021. Such interest income is included in Other (Income) and Other Expenses – Miscellaneous other (income) loss, net on the Statement of Net Income. Included in Operating Revenues on the Statement of Net Income are revenues received from affiliates of $0.6 million and $1.0 million for the three and six months ended June 30, 2022, respectively, and $0.2 million and $0.6 million for the three and six months ended June 30, 2021, respectively. The rates charged to provide services to affiliates are the same as those that are charged to similarly-situated nonaffiliated customers. We have no employees. Services necessary to operate our business are provided to us by Williams and certain affiliates of Williams. We reimburse Williams and its affiliates for all direct and indirect expenses incurred or payments made (including salary, bonus, incentive compensation and benefits) in connection with these services. Employees of Williams also provide general, administrative and management services to us, and we are charged for certain administrative expenses incurred by Williams. These charges are either directly identifiable or allocated to our assets. Direct charges are for goods and services provided by Williams at our request. Allocated charges are based on a three-factor formula, which considers revenues; property, plant, and equipment; and payroll. In management’s estimation, the allocation methodologies used are reasonable and result in a reasonable allocation to us of our costs of doing business incurred by Williams. We have recorded approximately $21.9 million and $42.2 million for the three and six months ended June 30, 2022, respectively, and $19.9 million and $40.5 million for the three and six months ended June 30, 2021, respectively, for these service expenses, which are primarily included in General and administrative and Operation and maintenance expenses on the Statement of Net Income. During July 2022, we declared and paid a cash distribution of $29.5 million to our parent.
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Revenue Recognition (Tables) |
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Contract with Customer, Asset and Liability [Table Text Block] | Contract Assets The following table presents a reconciliation of our contract assets:
Contract Liabilities The following table presents a reconciliation of our contract liabilities:
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Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Table Text Block] | The following table presents the amount of the contract liabilities balance expected to be recognized as revenue when performance obligations are satisfied and the transaction price allocated to the remaining performance obligations under certain contracts as of June 30, 2022.
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Basis of Presentation (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
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Jun. 30, 2022 |
Jun. 30, 2021 |
Jun. 30, 2022 |
Jun. 30, 2021 |
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Reclassification [Line Items] | ||||
Revenues | $ 107,858 | $ 107,922 | $ 221,677 | $ 220,816 |
Natural gas storage | ||||
Reclassification [Line Items] | ||||
Revenues | 3,223 | 3,589 | 6,407 | 6,633 |
Other | ||||
Reclassification [Line Items] | ||||
Revenues | $ 422 | 282 | $ 1,350 | 855 |
Previously Reported [Member] | Natural gas storage | ||||
Reclassification [Line Items] | ||||
Revenues | 300 | 900 | ||
Revision of Prior Period, Adjustment [Member] | Other | ||||
Reclassification [Line Items] | ||||
Revenues | $ 300 | $ 900 |
Contract Assets (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
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Jun. 30, 2022 |
Jun. 30, 2021 |
Jun. 30, 2022 |
Jun. 30, 2021 |
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Revenue Recognition [Abstract] | ||||
Balance at beginning of period | $ 9,064 | $ 4,516 | $ 7,943 | $ 3,395 |
Revenue recognized in excess of amounts invoiced | 1,134 | 1,134 | 2,255 | 2,255 |
Balance at end of period | $ 10,198 | $ 5,650 | $ 10,198 | $ 5,650 |
Revenue Recognition Contract Liabilities (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
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Jun. 30, 2022 |
Jun. 30, 2021 |
Jun. 30, 2022 |
Jun. 30, 2021 |
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Contract With Customer, Liability [Line Items] | ||||
Balance at beginning of period | $ 3,418 | $ 4,378 | $ 3,672 | $ 4,610 |
Recognized in revenue | (257) | (234) | (511) | (466) |
Balance at end of period | $ 3,161 | $ 4,144 | $ 3,161 | $ 4,144 |
Contingent Liabilities and Commitments (Details) - Environmental assessment and remediation [Member] - USD ($) $ in Millions |
Jun. 30, 2022 |
Dec. 31, 2021 |
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Site Contingency [Line Items] | ||
Total accrued liabilities | $ 1.0 | $ 1.0 |
Accrued liabilities - other | 0.1 | 0.1 |
Other long-term liabilities | $ 0.9 | $ 0.9 |
Debt and Financing Arrangement (Details) |
Jun. 30, 2022
USD ($)
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Credit Agreement | |
Credit Facility and Commercial Paper [Line Items] | |
Credit facility capacity | $ 500,000,000 |
Williams Companies Inc | |
Credit Facility and Commercial Paper [Line Items] | |
Commercial paper outstanding | 1,040,000,000.00 |
Williams Companies Inc | Commercial paper program | |
Credit Facility and Commercial Paper [Line Items] | |
Credit facility capacity | 3,500,000,000 |
Williams Companies Inc | Credit Agreement | |
Credit Facility and Commercial Paper [Line Items] | |
Credit facility capacity | 3,750,000,000 |
Additional amount by which credit facility can be increased | 500,000,000 |
Letters of credit outstanding | 0 |
Loans outstanding | $ 0 |
Financial Instruments (Details) - USD ($) $ in Millions |
Jun. 30, 2022 |
Dec. 31, 2021 |
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Carrying (reported) amount, fair value disclosure [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt | $ 579.6 | $ 579.0 |
Estimate of fair value, fair value disclosure [Member] | Fair value, inputs, level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt | $ 578.7 | $ 646.2 |
Transactions with Affiliates (Details) $ in Thousands |
1 Months Ended | 3 Months Ended | 6 Months Ended | ||||
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Jun. 30, 2022
USD ($)
employee
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Jul. 31, 2022
USD ($)
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Jun. 30, 2022
USD ($)
employee
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Jun. 30, 2021
USD ($)
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Jun. 30, 2022
USD ($)
employee
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Jun. 30, 2021
USD ($)
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Dec. 31, 2021
USD ($)
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Related Party Transaction [Line Items] | |||||||
Advances to affiliate | $ 313,215 | $ 313,215 | $ 313,215 | $ 281,442 | |||
Related party transaction, rate | 1.21% | ||||||
Interest Income, Related Party | 500 | 500 | |||||
Revenue from Related Parties | $ 600 | $ 200 | $ 1,000 | $ 600 | |||
Entity number of employees | employee | 0 | 0 | 0 | ||||
Related party transaction, expenses from transactions with related party | $ 21,900 | $ 19,900 | $ 42,200 | 40,500 | |||
Cash distributions to parent | $ 78,500 | $ 99,000 | |||||
Subsequent Event | |||||||
Related Party Transaction [Line Items] | |||||||
Cash distributions to parent | $ 29,500 |
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