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SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
In the Matter of
TRANSOK, INC. CERTIFICATE
CENTRAL AND SOUTH WEST CORPORATION OF
File No. 70-7872 NOTIFICATION
(Public Utility Holding Company Act of 1935)
Transok, Inc. ("Transok") is a wholly owned non-utility
subsidiary of Central and South West Corporation ("CSW"), a
public utility holding company. Transok's purpose, as a
natural gas pipeline company, is to provide CSW's electric
operating companies with a reliable and economical source of
natural gas for their electric power generation needs.
CSW's electric operating companies ("associate companies")
are: Central Power and Light Company; Public Service
Company of Oklahoma; Southwestern Electric Power Company and
West Texas Utilities Company. Transok also provides
services to Central and South West Energy, Inc. and to
Central and South West Services, Inc.
As a result of Security and Exchange Commission order number
70-7872 authorizing Transok's purchase of the common stock
of Lear Petroleum Corporation ("Lear"), Transok is required
to file semi-annual reports to include (a) current financial
statements of Transok and Lear; (b) a separate listing of
the types of services being rendered by Transok and Lear to
(i) CSW's associate companies and (ii) non-associates; and
(c) the total revenues received by Transok and Lear from and
on behalf of CSW's associate companies, set forth
separately, and from non-associates.
(A) Financial statements, including consolidated income
statements for the twelve months ended December 31, 1993 and
1992, consolidated balance sheets ending December 31, 1993,
and 1992, and consolidated cash flow statements for the
twelve months ended December 31, 1993 and 1992, are attached
hereto as Exhibit 1.
(B) A matrix of services provided to associates and non-
associates is attached hereto as Exhibit 2.
(C) Revenues received from and on behalf of each associate
company and from non-associates is presented in Exhibit 3
attached hereto.
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EXHIBIT 1
TRANSOK, INC.
CONSOLIDATED STATEMENTS OF INCOME
For the Years Ended December 31 1993 1992
(thousands)
OPERATING REVENUES $704,913 $543,331
OPERATING EXPENSES AND TAXES
Gas purchased for resale 497,784 353,176
Product extraction 90,812 76,418
Other operating 47,121 36,482
Maintenance 6,240 5,502
Depreciation and amortization 29,225 22,103
Taxes, other than Federal income 10,210 9,339
Federal income taxes 3,274 8,651
TOTAL EXPENSES 684,666 511,671
OPERATING INCOME 20,247 31,660
Other Income and Deductions 7,524 461
INCOME BEFORE INTEREST CHARGES 27,771 32,121
Interest Charges
Interest on long-term debt 14,211 4,629
Interest on short-term debt and other 1,107 7,095
NET INCOME BEFORE CUMULATIVE EFFECT OF
ACCOUNTING CHANGES 12,453 20,397
Cumulative Effect of Change in Accounting
for FAS 109 and FAS 112 6,691 --
NET INCOME $19,144 $20,397
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EXHIBIT 1
TRANSOK, INC.
CONSOLIDATED BALANCE SHEETS
For the Years Ended December 31 1993 1992
(thousands)
ASSETS
Gas Plant $752,149 $666,468
Less - Accumulated depreciation 181,657 160,002
570,492 506,466
Current Assets
Cash and cash equivalents 10,975 9,127
Accounts receivable 28,293 89,562
Materials and supplies, at average cost 6,710 6,972
Gas stored underground 21,495 5,139
Extracted products, at weighted
average cost 6,635 4,695
Taxes receivable 7,984 --
Note receivable 2,294 2,194
Prepaid pension expense 4,286 2,958
Prepayments and other 2,336 3,668
91,008 124,315
Other Investments, net 22,979 24,148
Deferred Charges and Other Assets 7,274 19,438
$691,753 $674,367
CAPITALIZATION AND LIABILITIES
Capitalization
Common stock, $100 par value, authorized
95,000 shares, issued and outstanding
92,186 shares $ 9,219 $ 9,219
Paid-in capital 142,000 97,000
Retained earnings 104,387 85,243
255,606 191,462
Current Liabilities
Advances from affiliates 21,274 92,219
Note payable to CSW -- 47,468
Accounts payable 111,916 118,807
Accrued taxes -- 63
Accrued interest 4,992 3,318
Other 12,419 4,981
150,601 266,856
Notes Payable 200,000 140,000
Deferred Income Taxes 85,546 76,049
$691,753 $674,367
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EXHIBIT 1
TRANSOK, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Years Ended December 31 1993 1992
(thousands)
Operating Activities
Net Income $19,144 $20,397
Non-cash items included in net income
Depreciation and amortization 29,974 22,686
Deferred income taxes 16,461 17,502
TexCon reserve write off (3,430) --
Operations reserve 3,743 --
Cumulative effect of change in
accounting for FAS 109 & 112 (6,691) --
Changes in assets and liabilities
Accounts receivable 61,269 (26,365)
Inventories (18,034) 2,960
Taxes receivable (7,984) --
Note receivable (100) 1,751
Prepaid pension expense (1,328) (1,187)
Prepayments and other current assets 1,332 15,580
Deferred charges and other assets 12,164 2,597
Accounts payable (6,891) 30,445
Accrued taxes (63) (10,587)
Accrued interest 1,674 1,967
Other current liabilities 6,853 (12,024)
108,093 65,722
Investing Activities
Acquisitions (33,068) (26,680)
Capital expenditures (55,193) (72,854)
Other (4,571) (67)
(92,832) (99,601)
Financing Activities
Medium term notes issued 60,000 140,000
Capital contribution 45,000 --
Advances from affiliates (70,945) 16,905
Note payable to CSW (47,468) (114,939)
(13,413) 41,966
Net Change in Cash and Cash Equivalents 1,848 8,087
Cash and Cash Equivalents at Beginning
of Year 9,127 1,040
Cash and Cash Equivalents at End of Year $10,975 $9,127
Supplementary Information:
Interest paid less capitalized amounts $12,837 $13,339
Income taxes paid $(3,302) --
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<TABLE>
<CAPTION>
SERVICES PROVIDED BY TRANSOK, INC. PSO WTU CPL SWP ENERGY NON-
ASSOC.
<S> <C> <C> <C> <C> <C> <C>
Spot Gas Purchases X X X X
Long Term Gas Purchases X X X X X
Pipeline Engineering / Construction Services X X X X X X
Lease of Pipeline Capacity from Transok X
Transportation Services X X X X
Access to Gas Supply at the Wellhead X X X X X
Backup Supply and Transportation Capacity X X X X X
No-Notice Gas Supply & Gas Supply Swing X X X X
Capabilities
Auditing Services for Gas Supply & X X X
Transportation Contracts
Rate Case Assistance X X X X
Gas Control and Dispatching X X X X
Legal Services X X X
</TABLE>
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<TABLE>
<CAPTION>
EXHIBIT 2
SERVICES PROVIDED BY TRANSOK, INC. PSO WTU CPL SWP ENERGY NON-
ASSOC.
<S> <C> <C> <C> <C> <C> <C>
Admininstrative Services Including:
Gas Measurement X X X X
Gas Nominations X X X
Gas Allocation X X X
Gas Accounting X X X
Gas Reporting X X X
Computer Information Services X X X
Gas Contract Administration X X X X
</TABLE>
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EXHIBIT 3
TRANSOK, INC.
REVENUES FROM & ON BEHALF OF ASSOCIATE
COMPANIES AND FROM NON ASSOCIATES
FOR THE YEAR ENDED DECEMBER 31, 1993
(thousands)
PSO Transport $ 23,361
PSO Agency 5,140
PSO - Gas Sales 54,438
Transport of PSO Release Gas 17,701
Sales of PSO Release Gas 221,357
PSO Purchased Gas Receipts 99,352
CPL - Gas Sales 6,919
WTU - Gas Sales 5,627
WTU - Transportation 823
SWP - Gas Sales 5,157
Energy 203
CSWS 44
ASSOCIATE COMPANY $440,122
NON-ASSOCIATE $364,390
TOTAL $804,512
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