SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
In the Matter of
TRANSOK, INC. CERTIFICATE
OF
NOTIFICATION
CENTRAL AND SOUTH WEST CORPORATION
File No. 70-7872
(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 six months ended June 30, 1994 and 1993,
consolidated balance sheets at June 30, 1994, and December 31,
1993, consolidated cash flow statements for the six months
ended June 30, 1994 and 1993, and notes to consolidated
financial statements, 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.
EXHIBIT 1
TRANSOK, INC.
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
For the Six Months Ended June 30 1994 1993
(thousands)
OPERATING REVENUES $340,083 $351,041
OPERATING EXPENSES AND TAXES
Gas purchased for resale 221,949 238,984
Product extraction 47,663 48,387
Other operating 22,982 22,044
Maintenance 2,699 2,677
Depreciation and amortization 17,247 15,643
Taxes, other than income 5,213 4,507
317,753 332,242
OPERATING INCOME 22,330 18,799
OTHER EXPENSE
Interest on long-term debt 7,710 6,497
Interest on short-term debt 331 858
Less capitalized interest (479) (234)
Other, net (455) 2,342
7,107 9,463
INCOME BEFORE INCOME TAXES 15,223 9,336
Federal and state income taxes 4,514 3,262
NET INCOME BEFORE CUMULATIVE EFFECT
OF CHANGES IN ACCOUNTING PRINCIPLES 10,709 6,074
Cumulative effect of changes in
accounting principles -- 6,691
NET INCOME $10,709 $12,765
The accompanying notes to consolidated financial statements
are an integral part of these statements.
EXHIBIT 1
TRANSOK, INC.
CONSOLIDATED BALANCE SHEETS
(Unaudited)
June 30, December 31,
1994 1993
(thousands)
ASSETS
Current Assets
Cash and cash equivalents $5,547 $10,975
Accounts receivable 30,024 28,293
Notes receivable 187 2,294
Income taxes receivable 17,191 11,299
Materials and supplies, at average cost 8,396 6,710
Gas stored underground 13,740 21,495
Extracted products, at average cost 677 6,635
Prepayments and other 10,998 6,622
86,760 94,323
Property, Plant and Equipment 783,834 752,149
Less - Accumulated depreciation 194,812 181,657
Net Property, Plant and Equipment 589,022 570,492
Other Investments, net 19,129 22,979
Deferred Charges and Other Assets 9,572 7,274
$704,483 $695,068
CAPITALIZATION AND LIABILITIES
Current Liabilities
Advances from affiliates $24,757 $21,274
Accounts payable 103,523 111,916
Accrued interest 5,024 5,042
Accrued taxes 3,783 3,265
Other 7,346 12,419
144,433 153,916
Notes Payable 200,000 200,000
Deferred Income Taxes 93,735 85,546
Capitalization
Common stock, $100 par value, authorized
95,000 shares, issued and outstanding
92,186 shares 9,219 9,219
Paid-in capital 142,000 142,000
Retained earnings 115,096 104,387
266,315 255,606
$704,483 $695,068
The accompanying notes to consolidated financial statements
are an integral part of these statements.
EXHIBIT 1
TRANSOK, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
For the Six Months Ended June 30 1994 1993
(thousands)
Operating Activities
Net Income $10,709 $12,765
Non-cash items included in net income
Depreciation 17,733 16,045
Deferred income taxes 8,189 5,762
Cumulative effect of changes in
accounting principles -- (6,691)
Other (419) --
Changes in assets and liabilities
Accounts receivable (1,731) 54,305
Notes receivable 2,107 (66)
Income taxes receivable (5,892) (1,111)
Materials and supplies (1,686) 405
Gas stored underground 7,755 (7,578)
Extracted products 5,958 (1,500)
Prepayments and other current assets (4,376) (8,025)
Deferred charges and other assets (2,393) 7,661
Accounts payable (8,393) 9,134
Accrued taxes 518 (66)
Accrued interest (18) 1,306
Other current liabilities (5,073) 5,183
22,988 87,529
Investing Activities
Acquisitions -- (32,106)
Capital expenditures (31,960) (23,464)
Proceeds from disposition of property 362 --
Other (301) 592
(31,899) (54,978)
Financing Activities
Medium-term notes sold -- 60,000
Capital contribution -- 15,000
Advances from affiliates 3,483 (63,804)
Note payable to CSW -- (47,468)
3,483 (36,272)
Net Change in Cash and Cash Equivalents (5,428) (3,721)
Beginning Cash and Cash Equivalents 10,975 9,127
Ending Cash and Cash Equivalents $5,547 $5,406
The accompanying notes to consolidated financial statements
are an integral part of these statements.
EXHIBIT 1
TRANSOK, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
June 30, 1994
(Unaudited)
(Thousands)
The unaudited financial information of Transok, Inc. (Company)
furnished herewith reflects all adjustments (consisting only
of normal recurring adjustments in 1994) which are, in the
opinion of management, necessary for a fair statement of
results of operations for the interim periods. Information
for interim periods is affected by seasonal variations in
sales, price changes, and other factors.
Certain information and footnote disclosures normally included
in the financial statements prepared in accordance with
generally accepted accounting principles have been omitted,
although the Company believes that the disclosures are
adequate to make the information presented not to be misleading.
It is suggested that these consolidated financial statements
be read in conjunction with the consolidated financial
statements and the notes thereto included in the Company's
Annual Report for the year ended December 31, 1993.
Certain financial statement items for prior years have been
reclassified to conform to the 1994 presentation. Pursuant to
changes in accounting principles made in December 1993, but
effective January 1, 1993, the Company restated the 1993 first
quarter information to reflect the adoption of Statement of
Financial Accounting Standard No. 112, Employers' Accounting
for Postemployment Benefits. The effect of restating net
income for the six months ended June 30, 1993, was as follows:
1993 Net Income
June 30 - Reported $13,038
Adjustment (273)
June 30 - Restated $12,765
EXHIBIT 2
SERVICES PROVIDED BY TRANSOK, INC. PSO WTU CPL SWP ENERGY NON-
ASSOC.
Spot Gas Purchases X X 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 X X
Transportation Services X X 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 X
No-Notice Gas Supply & Gas Supply Swing
Capacity X X X X X X
Auditing Services for Gas Supply &
Transportation Contracts X X X X
Rate Case Assistance X X X X X
Gas Control and Dispatching X X X X X X
Legal Services X X X X
EXHIBIT 2
SERVICES PROVIDED BY TRANSOK, INC. PSO WTU CPL SWP ENERGY NON-
ASSOC.
Administrative Services Including:
Gas Measurement X X X X X
Gas Nominations X X X X X X
Gas Allocation X X X X X X
Gas Accounting X X X X X
Gas Reporting X X X X X X
Computer Information Services X X X X X X
Gas Contract Administration X X X X X
EXHIBIT 3
TRANSOK, INC.
REVENUES FROM & ON BEHALF OF ASSOCIATE
COMPANIES AND FROM NON ASSOCIATES
FOR THE SIX MONTHS ENDED JUNE 30, 1994
(thousands)
PSO Transport $ 12,000
PSO Agency 2,250
PSO - Gas Sales 30,336
Transport of PSO Release Gas 6,986
Sales of PSO Release Gas 123,209
PSO Purchased Gas Receipts 42,936
CPL - Gas Sales 1,599
WTU - Gas Sales 3,035
WTU - Transportation 1,960
SWP - Gas Sales 509
Energy 131
CSWS 100
ASSOCIATE COMPANY 225,051
NON-ASSOCIATE 158,199
TOTAL $ 383,250
