In 2002, the company found itself in financial distress due to changed market conditions, its competition with Enron Corp. and the large debt of its subsidiary Williams Communications Group.

The company obtained and paid off an emergency high interest loan from Warren Buffett to stay out of bankruptcy, and redirected its focus toward natural gas production, processing, and transportation as well as increasing its resource holdings.

One of the moves it made around that time (2004) was the sale of two of Canada's largest natural gas straddle plants, and its interest in another to Inter Pipeline Fund for US$540 million.

[6] On February 16, 2011, Williams' board of directors had approved pursuing a plan to separate the company's businesses into two stand-alone, publicly traded corporations.

[7][8][needs update] The company helped to get the modern telecommunications industry off the ground by running fiber optic cable through its decommissioned pipelines.

[12] On March 1, 1999, Jack D. McCarthy, chief financial officer, said the company's additional review and its annual audit process resulted in the previously announced 1998 pre-tax income being adjusted downward by $21.2 million.

[13] On September 16, 2004, Williams Cos. said it amended its fiscal 2003 and first-quarter 2004 filings with the Securities and Exchange Commission to show a reclassification to its discontinued operations and a segment reporting change.