Summarized quarterly financial data are as follows (millions, except per-share amounts). Revenues and costs and operating expenses for the six months ended June 30, 1995, have been reclassified to report natural gas sales net of related gas purchase costs.
| First | Second | Third | Fourth | |
| 1995 | Quarter | Quarter | Quarter | Quarter |
| Revenues | $642.40 | $663.90 | $712.40 | $837.00 |
| Costs and operating expenses | 351.1 | 400.1 | 438.9 | 510.6 |
| Net income | 1,088.90 | 83.3 | 68.5 | 77.5 |
| Primary earnings per common | ||||
| and common-equivalent share | 11.57 | 0.79 | 0.58 | 0.7 |
| Fully diluted earnings per common | ||||
| and common-equivalent share | 11.55 | 0.78 | 0.58 | 0.69 |
| 1994 | ||||
| Revenues | $386.60 | $419.90 | $467.30 | $477.30 |
| Costs and operating expenses | 248.5 | 274 | 335.4 | 329.8 |
| Income before extraordinary loss | 52.8 | 74 | 55.6 | 76.5 |
| Net income | 52.8 | 62.9 | 55.6 | 75.4 |
| Primary earnings per common and | ||||
| common-equivalent share: | ||||
| Income before extraordinary loss | 0.48 | 0.69 | 0.51 | 0.77 |
| Net income | 0.48 | 0.58 | 0.51 | 0.76 |
| Fully diluted earnings per common | ||||
| and common-equivalent share: | ||||
| Income before extraordinary loss | 0.48 | 69 | 0.51 | 0.77 |
| Net income | 0.48 | 0.58 | 0.51 | 0.76 |
The sum of earnings per share for the four quarters may not equal the total earnings per share for the year due to changes in the average number of common shares outstanding.
First-quarter 1995 net income includes the after-tax gain of $1 billion on the sale of Williams' network services operations (see Note 3 of Notes to Consolidated Financial Statements). The second quarter of 1995 includes a $16 million after-tax gain from the sale of Williams' 15 percent interest in Texasgulf Inc. (see Note 5 of Notes to Consolidated Financial Statements) and an $8 million income tax benefit resulting from settlements with taxing authorities. Northwest Pipeline's third-quarter 1995 operating profit includes the approximate $11 million net favorable effect of two reserve accrual adjustments. In third-quarter 1995, Williams Field Services Group recorded $20 million of income from the favorable resolution of contingency issues involving previously regulated gathering and processing assets, partially offset by an $8 million accrual for a future minimum price natural gas purchase commitment. Second-quarter 1994 includes a $23 million gain from the sale of assets (see Note 6 of Notes to Consolidated Financial Statements).
Selected comparative fourth-quarter data are as follows (millions, except per-share amounts). Certain 1994 amounts have been restated as described in Note 1 of Notes to Consolidated Financial Statements.
| 1995 | 1994 | |||
| Operating profit (loss): | ||||
| Williams Interstate Natural Gas Systems: | ||||
| Northwest Pipeline | $25.10 | $22.70 | ||
| Williams Natural Gas | 15.5 | 15.1 | ||
| Transcontinental Gas Pipe Line | 47.4 | - | ||
| Texas Gas Transmission | 28.6 | - | ||
| Williams Field Services Group | 43.2 | 40.4 | ||
| Williams Energy Services | 0.3 | -3.9 | ||
| Williams Pipe Line | 19.3 | 11.9 | ||
| WilTel | 7.2 | 6.7 | ||
| WilTech Group | 0.8 | -4.5 | ||
| Other | -0.2 | - | ||
| Total operating profit | 187.2 | 88.4 | ||
| General corporate expenses | -12.1 | -7 | ||
| Interest expense - net | -69.7 | -39.1 | ||
| Investing income | 12.7 | 10.8 | ||
| Write-off of project costs | -41.4 | - | ||
| Other income (expense) - net | 5.2 | -2.5 | ||
| Income from continuing operations | ||||
| before income taxes | 81.9 | 50.6 | ||
| Provision for income taxes | 17.5 | 16.4 | ||
| Income from continuing operations | 64.4 | 34.2 | ||
| Income from discontinued operations | 13.1 | 42.3 | ||
| Income before extraordinary loss | 77.5 | 76.5 | ||
| Extraordinary loss | - | -1.1 | ||
| Net income | $77.50 | $75.40 | ||
| Primary earnings per common and | ||||
| common-equivalent share | $0.70 | $0.76 | ||
| Fully diluted earnings per common and | ||||
| common-equivalent share | $0.69 | $0.76 |
Williams Energy Services' fourth-quarter 1995 operating profit includes loss accruals of approximately $6 million, primarily related to contract disputes. In fourth-quarter 1995, the development of a commercial coal gasification venture in south-central Wyoming was canceled, resulting in a $41.4 million pre-tax charge (see Note 6 of Notes to Consolidated Financial Statements). Fourth-quarter 1995 income from discontinued operations reflects the after-tax effect of the reversal of accruals established at the time of the sale of the network services operations (see Note 3 of Notes to Consolidated Financial Statements).
In fourth-quarter 1994, Williams Natural Gas recorded a $7 million reversal of excess contract-reformation accruals. Williams Pipe Line's fourth-quarter 1994 operating profit includes $5 million in costs for evaluating and determining whether to build an oil refinery. Fourth-quarter 1994 discontinued operations includes favorable adjustments of approximately $15 million relating to bad debt recoveries and accrual reversals.
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