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, 1995, 1994 and 1993,
consolidated balance sheets as of December 31, 1995, and 1994,
and consolidated cash flow statements for the years ended
December 31, 1995, 1994 and 1993, 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.
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 27, 1996.
By /s/ O. T. Stewart
O.T. Stewart
Vice President, Finance,
and Treasurer
Transok, Inc.
EXHIBIT 1
TRANSOK, INC.
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(thousands of dollars)
For the Year Ended December 31 1995 1994 1993
Operating Revenues $ 720,866 $ 646,719 $ 702,192
Operating Expenses and Taxes
Natural gas purchased for resale 466,384 404,569 501,719
Product extraction and marketing 109,237 98,103 85,613
Operations and maintenance 25,123 24,163 24,559
Administrative and general 22,750 25,350 24,953
Depreciation and amortization 31,478 32,162 28,822
Taxes, other than income taxes 9,248 9,693 8,377
664,220 594,040 674,043
Operating Income 56,646 52,679 28,149
Other Income and (Deductions)
Interest expense (14,031) (15,783) (15,318)
Factoring expense (4,795) (3,636) (3,747)
Other, net 1,269 1,926 7,832
(17,557) (17,493) (11,233)
Income Before Income Taxes and Cumulative
Effect of Changes in Accounting Principles 39,089 35,186 16,916
Provision for Income Taxes 13,762 10,053 4,463
Income Before Cumulative Effect of
Changes in Accounting Principles 25,327 25,133 12,453
Cumulative Effect of Changes in Accounting
Principles -- -- 6,691
Net Income $ 25,327 $ 25,133 $ 19,144
EXHIBIT 1
TRANSOK, INC.
CONSOLIDATED BALANCE SHEETS
(Unaudited)
(thousands of dollars)
As of December 31 1995 1994
ASSETS
Current Assets
Cash and cash equivalents $ 7,195 $ 3,601
Accounts receivable 44,660 35,014
Advances to affiliates 6,586 --
Gas stored underground 10,567 22,550
Materials and supplies, at average cost 8,869 10,796
Extracted products, at average cost 1,878 821
Income taxes receivable 143 3,144
Prepayments and other 8,121 4,610
88,019 80,536
Property, Plant and Equipment 868,595 798,312
Less - Accumulated Depreciation 236,043 203,488
632,552 594,824
Other Investments, net 30,576 32,392
Deferred Charges and Other Assets 21,133 18,997
$ 772,280 $ 726,749
LIABILITIES AND STOCKHOLDER'S EQUITY
Current Liabilities
Advances from affiliates $ -- $ 28,104
Accounts payable 118,198 77,913
Accrued interest 5,107 5,105
Accrued taxes 5,102 3,884
Other 1,615 6,019
130,022 121,025
Long-Term Debt 200,000 200,000
Deferred Income Taxes 116,192 104,985
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 162,000 162,000
Retained earnings 154,847 129,520
326,066 300,739
$ 772,280 $ 726,749
EXHIBIT 1
TRANSOK, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(thousands of dollars)
For the Year Ended December 31 1995 1994 1993
Operating Activities
Net Income $ 25,327 $ 25,133 $ 19,144
Non-cash items included in net income
Depreciation and amortization 32,453 33,149 29,689
Deferred income taxes 11,207 19,439 16,461
TexCon reserve write off -- -- (3,430)
Operations reserve -- -- 3,743
Cumulative effect of changes in
accounting principles -- -- (6,691)
Other (1,659) (1,767) (1,490)
Funds provided by operations 67,328 75,954 57,426
Changes in assets and liabilities 37,470 (45,653) 47,086
104,798 30,301 104,512
Investing Activities
Capital expenditures (65,931) (64,893) (88,310)
Other (583) 388 (941)
(66,514) (64,505) (89,251)
Financing Activities
Medium-term notes issued -- -- 60,000
Capital contribution -- 20,000 45,000
Advances from/to affiliates (34,690) 6,830 (70,945)
Note payable to CSW -- -- (47,468)
(34,690) 26,830 (13,413)
Net Change in Cash and Cash Equivalents 3,594 (7,374) 1,848
Cash and Cash Equivalents at Beginning of Year 3,601 10,975 9,127
Cash and Cash Equivalents at End of Year $ 7,195 $ 3,601 $ 10,975
EXHIBIT 2
SERVICES PROVIDED BY TRANSOK, INC. PSO WTU CPL SWP ENERGY NON-
ASSOC.
Spot Gas Purchases X X X X
Long Term Gas Purchases X X X X X
Pipeline Construction Services X X X X
Lease of Pipeline Capacity from Transok X
Transportation Services 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
Capabilities X X X X
Auditing Services for Gas Supply &
Transportation Contracts X X X
Rate Case Assistance X X X X
Gas Control and Dispatching X X X X
Legal Services 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
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
EXHIBIT 3
TRANSOK, INC.
REVENUES FROM & ON BEHALF OF ASSOCIATE
COMPANIES AND FROM NON ASSOCIATES
FOR THE YEAR ENDED DECEMBER 31, 1995
(thousands)
PSO Transport $ 31,782
PSO Agency 0
PSO - Gas Sales 77,584
Transport of PSO Release Gas 14,219
Sales of PSO Release Gas 195,752
PSO Purchased Gas Receipts 75,292
CPL - Gas Sales 2,569
WTU - Gas Sales 9,686
WTU - Transportation 2,486
SWP - Gas Sales 4,505
SWP - Transportation 539
Energy 291
CSWS 938
ASSOCIATE COMPANY $ 415,643
NON-ASSOCIATE $ 381,744
TOTAL $ 797,387
