<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
In the Matter of
TRANSOK, INC. CERTIFICATE
OF
CENTRAL AND SOUTH WEST CORPORATION
NOTIFICATION
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 years ended December 31, 1994, 1993 and
1992, consolidated balance sheets as of December 31, 1994,
and December 31, 1993, and consolidated cash flow statements
for the years ended December 31, 1994, 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.
<PAGE> 2
EXHIBIT 1
TRANSOK, INC.
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(thousands of dollars)
For the Years Ended December 31 1994 1993 1992
Operating Revenues $646,719 $702,192 $542,983
Operating Expenses and Taxes
Natural gas purchased for resale 404,569 501,719 357,033
Product extraction and marketing 98,103 85,613 71,710
Operations and maintenance 24,163 24,559 21,018
Administrative and general 28,986 28,700 21,690
Depreciation and Amortization 32,162 28,822 22,103
Taxes, other than income taxes 9,693 8,377 6,959
597,676 677,790 500,513
Operating Income 49,043 24,402 42,470
Other Income and (Deductions)
Interest expense (15,783) (15,318) (11,724)
Other, net 1,926 7,832 450
(13,857) (7,486) (11,274)
Income Before Income Taxes and
Cumulative Effect of Changes
in Accounting Principles 35,186 16,916 31,196
Provision for Income Taxes 10,053 4,463 10,799
Income Before Cumulative Effect of
Changes in Accounting Principles 25,133 12,453 20,397
Cumulative Effect of Changes in
Accounting Principles -- 6,691 --
Net Income $25,133 $19,144 $20,397
The accompanying notes to consolidated financial statements
are an integral part of these statements.
<PAGE> 3
EXHIBIT 1
TRANSOK, INC.
CONSOLIDATED BALANCE SHEETS
(Unaudited)
(thousands of dollars)
As of December 31 1994 1993
ASSETS
Current Assets
Cash and cash equivalents $3,601 $10,975
Accounts receivable 35,014 27,939
Materials and supplies, at average cost 10,796 6,710
Gas stored underground 22,550 17,375
Extracted products, at weighted average cost 821 6,635
Income taxes receivable 3,144 11,299
Note receivable 185 2,294
Prepayments and other 4,425 4,343
80,536 87,570
Property, Plant and Equipment 798,312 738,036
Less - Accumulated Depreciation 203,488 181,106
594,824 556,930
Other Investments, net 32,392 36,971
Deferred Charges and Other Assets 18,997 13,599
$726,749 $695,070
LIABILITIES AND STOCKHOLDER'S EQUITY
Current Liabilities
Advances from affiliates $28,104 $21,274
Accounts payable 77,913 111,975
Accrued taxes 3,884 3,230
Accrued interest 5,105 5,042
Other 6,019 12,397
121,025 153,918
Long-Term Debt 200,000 200,000
Deferred Income Taxes 104,985 85,546
Stockholder's Equity
Common stock, $100 par value,
authorized 95,000 shares, issued
and outstanding 92,186 shares 9,219 9,219
Paid-in capital 162,000 142,000
Retained earnings 129,520 104,387
300,739 255,606
$726,749 $695,070
The accompanying notes to consolidated financial statements
are an integral part of these statements.
<PAGE> 4
EXHIBIT 1
TRANSOK, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(thousands of dollars)
For the Years Ended December 31 1994 1993 1992
Operating Activities
Net Income $25,133 $19,144 $20,397
Non-cash items included in net income
Depreciation and amortization 33,149 29,689 22,726
Deferred income taxes 19,439 16,461 17,502
TexCon reserve write off -- (3,430) --
Operations reserve -- 3,743 --
Cumulative effect of changes in
accounting principles -- (6,691) --
Other (1,767) (1,490) (14)
Funds provided by operations 75,954 57,426 60,611
Changes in assets and liabilities (45,653) 47,086 18,759
30,301 104,512 79,370
Investing Activities
Capital expenditures (64,893) (88,310) (70,984)
Other 388 (941) (42,265)
(64,505) (89,251) (113,249)
Financing Activities
Medium-term notes issued -- 60,000 140,000
Capital contribution 20,000 45,000 --
Advances from affiliates 6,830 (70,945) 16,905
Note payable to CSW -- (47,468) (114,939)
26,830 (13,413) 41,966
Net Change in Cash and Cash Equivalents (7,374) 1,848 8,087
Cash and Cash Equivalents at Beginning of Year 10,975 9,127 1,040
Cash and Cash Equivalents at End of Year $3,601 $10,975 $9,127
The accompanying notes to consolidated financial statements
are an integral part of these statements.
<PAGE> 5
EXHIBIT 1
TRANSOK, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
December 31, 1994
(Unaudited)
The unaudited financial information of Transok, Inc.
(Company) furnished herewith reflects all adjustments which
are, in the opinion of management, necessary for a fair
statement of the results of operations for the periods
presented.
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.
<PAGE> 6
<TABLE>
EXHIBIT 2
<S> <C> <C> <C> <C> <C> <C>
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 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 X X X X X X
Capabilities
Auditing Services for Gas Supply & X X X X
Transportation Contracts
Rate Case Assistance X X X X X
<PAGE> 7
EXHIBIT 2
SERVICES PROVIDED BY TRANSOK, INC. PSO WTU CPL SWP ENERGY NON-
ASSOC.
Gas Control and Dispatching X X X X X X
Legal Services X X X X
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
</TABLE>
<PAGE> 8
EXHIBIT 3
TRANSOK, INC.
REVENUES FROM & ON BEHALF OF ASSOCIATE
COMPANIES AND FROM NON ASSOCIATES
FOR THE YEAR ENDED DECEMBER 31, 1994
(thousands)
PSO Transport $ 30,335
PSO Agency 1,111
PSO - Gas Sales 76,911
Transport of PSO Release Gas 12,764
Sales of PSO Release Gas 198,541
PSO Purchased Gas Receipts 92,924
CPL - Gas Sales 2,964
WTU - Gas Sales 6,445
WTU - Transportation 3,106
SWP - Gas Sales 4,933
CSW Energy 258
CSWS 671
ASSOCIATE COMPANY 430,963
NON-ASSOCIATE 309,609
TOTAL $ 740,572
<PAGE> 9
SIGNATURE
As requested by order of the Securities and Exchange
Commission pursuant to the Public Utility Holding Company
Act of 1935, Transok, Inc. has duly caused this report to be
signed on February 28, 1995.
By /S/ O.T. Stewart
O.T. Stewart
Vice President,
Finance,
Transok, Inc.
