Accomplishments in 1997
*Achieved record operating profit and growth that exceeds the country’s growth in demand for natural gas.

*Began acting as one national pipeline, leveraging collective size and talents by initiating common information systems and best practices.

*Remained low-cost provider in virtually all markets.

Key Tasks in 1998
*Work to achieve regulatory environment that stimulates future investments and allows earning capacity to be more closely aligned with the business risk.

*Fully implement best practices to become more efficient, reliable and responsive.

*Aggressively pursue scheduled expansions if allowed rates warrant.

Goals, Strategies in 1998, Beyond
*Achieve fair rates of return and grow operating profit by at least 6 percent annually.

*Aggressively compete in every  market possible.

*Develop into the premier national gas pipeline by all measures.

Accomplishments in 1997
*Achieved record operating profit.

*Entered into definitive agreement to acquire a major energy company.

*Expanded businesses and initiated major projects.

Key Tasks in 1998
*Close acquisition of major energy company; integrate its assets and talent; develop attendant growth opportunities.

*Push major expansion projects in Gulf Coast region and Texas to or near completion.

*Continue to increase levels of physical and financial trading, while expanding presence as an “energy superstore.”

Goals, Strategies in 1998, Beyond
*Continue expanding all businesses.

*Grow operating profit by approximately 15 percent annually.

*Acquire, grow and leverage assets in ways that provide increased earnings and further position Williams as a market leader in each of its businesses.

Accomplishments in 1997
*Doubled size and revenues of its equipment distribution and network integration unit, becoming largest independent provider of end-to-end services for America’s businesses.

*Began greatly expanding the fiber-optic network. In January 1998, announced it is re-entering the wholesale network services business.

*Integrated assets into clearly defined, network-oriented businesses.

Key Tasks in 1998
*Turn promise into performance.

*Deliver more than 7,000 miles of new fiber-optic network on schedule and on budget while booking future business to re-establish position as the wholesale network carrier of choice.

Goals, Strategies in 1998, Beyond
*Continue developing high-quality, low-cost network capacity, along with network-oriented communications solutions.

*Establish leadership position as an integrator of voice, data and video services.

*Provide 15 to 20 percent of Williams’ total operating profit by the year 2000.