Williams Pipe Line
Delivering Excellence
Williams Pipe Line's 9,200-mile system provides petroleum products transportation, distribution and storage services throughout the Midwest. The company also offers truck-loading terminal technology software and design internationally. Williams Energy Ventures' financial results are included within this segment.
More than gasoline - "Fill 'er with Ethyl" - has changed since this Corvette Sting Ray first roared down the road. About that same time, we began delivering excellence in the Midwest. Since then, we have built and expanded facilities, added many products and grades, and brought virtual real-time control to the fingertips of our shipper customers. We're running strong and plan to shatter another volume record during this, our 30th anniversary year. The next 30 almost certainly will bring more changes than the past, but one thing will remain the same here at Williams Pipe Line - delivering excellence.
| Selected Financial Data (dollars in millions) | 1995 | 1994** | 1993** |
| Revenues | $350.20 | $310.70 | $180.50 |
| Operating profit | 69.8 | 52 | 47.2 |
| Identifiable assets* | 870.5 | 680.4 | 588.3 |
| Operating profit as % of average assets | 9.00% | 8.20% | 8.40% |
| Capital expenditures | 87.9 | 46.6 | 62.9 |
| Depreciation | 26.4 | 22.4 | 21.4 |
| Operating Statistics | |||
| Shipments (million barrels) | 217 | 203 | 186 |
| Average transportation revenue per barrel | $0.82 | $0.83 | $0.82 |
| Barrel miles (billions) | 58 | 58 | 52 |
| Employees (December 31) | 989 | 713 | 672 |
| *Defined in Note 16 of the Notes to Consolidated Financial Statements, page 53. | |||
| **Reclassified as described in Note 1 of the Notes to Consolidated Financial Statements, page 42. | |||
Key Points
- We achieved record volumes and financial results in 1995, marking the fourth consecutive year of double-digit growth in operating profit - continuing our trend of outperforming the underlying growth in demand for these petroleum products.
- Constructed a tank farm and pump station in southwest Missouri to expand receipt capabilities from Gulf Coast refineries. This facility is to come fully on line in the first part of 1996.
- Completed our 27th and 28th truck-loading terminal conversions to cleaner, more efficient bottom-loading facilities. Thirteen top-loading facilities remain.
- Reactivated a line to ship petroleum feedstock from Tulsa to Cushing, Okla., which is site of the world's largest convergence of oil and gas pipelines and a crossroads for nine major pipeline companies.
- Signed a contract to provide rack engineering and design consultation for use in Saudi Arabia.
- The FERC in May 1995 declared seven more of our market areas "workably competitive," allowing us to set prices in those markets based solely upon competitive dynamics. All told, the FERC has determined that 20 of our 33 market areas are workably competitive. Prices are regulated in the remaining market areas under an inflation index.
- Joined Longhorn Partners Pipeline in December 1995 to acquire and construct a $325 million pipeline system that will cost-effectively link Gulf Coast refiners with new southwestern markets. We own a 48 percent interest in Longhorn. The Williams-operated system, slated to begin operation in early 1997, will have an initial capacity of 120,000 barrels per day.
- We expect to continue our record-breaking volume/financial performance in 1996. Seventy-six percent of our $31 million 1996 capital budget is dedicated to expansion and efficiency projects. Our recent construction of tankage in Missouri and the unfolding Longhorn Pipeline venture in Texas testify to our ability to capitalize on opportunities within and beyond our traditional service area.
