SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 11-K
[X] ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended December 31, 1996
OR
[_] TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from _______________ to _______________
Commission file number 0-17389
A. Full title of the plan and the address of the plan, if different from
that of the issuer named below:
TEJAS GAS CORPORATION THRIFT PLAN
B. Name of issuer of the securities held pursuant to the plan and the
address of its principal executive office:
TEJAS GAS CORPORATION
1301 McKinney
Suite 700
Houston, Texas 77010
<PAGE>
TABLE OF CONTENTS
Page
(a) FINANCIAL STATEMENTS:
Independent Auditors' Report ........................................ 1
Statements of Net Assets Available for Benefits,
December 31, 1996 and 1995 ........................................ 2
Statements of Changes in Net Assets Available for Benefits for
the Years Ended December 31, 1996 and 1995 ........................ 3
Notes to Financial Statements for the Years Ended December 31,
1996 and 1995 ..................................................... 4
(b) SUPPLEMENTAL SCHEDULES:
Item 27a - Schedule of Assets Held for Investment Purposes As of
December 31, 1996 ................................................. 12
Item 27d - Schedule of Reportable Transactions for the Year Ended
December 31, 1996 ................................................. 13
(c) Signatures ........................................................ 14
(d) EXHIBIT - Independent Auditors' Consent ........................... 15
<PAGE>
INDEPENDENT AUDITORS' REPORT
Tejas Gas Corporation Thrift Plan:
We have audited the accompanying statements of net assets available for benefits
of the Tejas Gas Corporation Thrift Plan (the "Plan") as of December 31, 1996
and 1995, and the related statements of changes in net assets available for
benefits for the years then ended. These financial statements are the
responsibility of the Plan's management. Our responsibility is to express an
opinion on these financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, such financial statements present fairly, in all material
respects, the net assets available for benefits of the Plan as of December 31,
1996 and 1995, and the changes in net assets available for benefits for the
years then ended in conformity with generally accepted accounting principles.
Our audits were conducted for the purpose of forming an opinion on the basic
financial statements taken as a whole. The supplemental schedules of (1) assets
held for investment purposes as of December 31, 1996 and (2) reportable
transactions for the year ended December 31, 1996 are presented for the purpose
of additional analysis and are not a required part of the basic financial
statements, but are supplementary information required by the Department of
Labor's Rules and Regulations for Reporting and Disclosure under the Employee
Retirement Income Security Act of 1974. The schedules are the responsibility of
the Plan's management. Such schedules have been subjected to the auditing
procedures applied in our audit of the basic 1996 financial statements and, in
our opinion, are fairly stated in all material respects when considered in
relation to the basic financial statements taken as a whole.
DELOITTE & TOUCHE LLP
Houston, Texas
June 27, 1997
- 1 -
<PAGE>
TEJAS GAS CORPORATION THRIFT PLAN
STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS,
DECEMBER 31, 1996 AND 1995
ASSETS 1996 1995
INVESTMENTS - At fair value:
Stock of Tejas Gas Corporation:
Common stock ............................... $ 13,292,709 $ 7,682,156
Preferred stock ............................ 1,103,792 791,936
Mutual funds .................................. -- 3,120,622
Cash equivalents .............................. 1,569,187 1,556,983
Loans to participants ......................... 1,480,136 682,943
------------ ------------
Total ............................ 17,445,824 13,834,640
------------ ------------
RECEIVABLES:
Dividends and interest ........................ 7,806 7,760
From broker ................................... 7,391,791 162,228
Company contribution .......................... 816,551 473,966
Participants' contributions ................... 101,730 --
Due from other funds .......................... -- 68,564
------------ ------------
Total ............................ 8,317,878 712,518
------------ ------------
TOTAL ASSETS ..................................... $ 25,763,702 $ 14,547,158
============ ============
LIABILITIES AND NET ASSETS AVAILABLE FOR BENEFITS
LIABILITIES:
Due to other funds ............................ -- $ 68,564
Payable to brokers ............................ -- 234,612
NET ASSETS AVAILABLE FOR BENEFITS ................ $ 25,763,702 14,243,982
------------ ------------
TOTAL LIABILITIES AND NET ASSETS AVAILABLE
FOR BENEFITS .................................. $ 25,763,702 $ 14,547,158
============ ============
See notes to financial statements.
<PAGE>
TEJAS GAS CORPORATION THRIFT PLAN
STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
FOR THE YEARS ENDED DECEMBER 31, 1996 AND 1995
1996 1995
NET ASSETS AVAILABLE FOR BENEFITS,
BEGINNING OF YEAR ........................... $ 14,243,982 $ 10,816,596
INVESTMENT INCOME:
Interest and dividends ...................... 167,398 159,686
Interest on loans to participants ........... 97,260 48,384
Net appreciation (depreciation) in fair
value of investments ...................... 4,268,343 1,927,642
------------ ------------
Total .......................... 4,533,001 2,135,712
------------ ------------
CONTRIBUTIONS:
Employees ................................... 2,015,831 1,076,992
Company ..................................... 816,551 473,966
Rollover contributions from Transok, Inc. ... 4,183,292 --
------------ ------------
Total .......................... 7,015,674 1,550,958
------------ ------------
PARTICIPANT LOAN TRANSFER FROM TRANSOK, INC ....
PROFIT SHARING PLAN ......................... 623,316 --
TRANSFER FROM LEDCO, INC. PROFIT SHARING PLAN .. -- 103,076
WITHDRAWALS .................................... (652,271) (362,360)
------------ ------------
NET ASSETS AVAILABLE FOR BENEFITS, END OF YEAR . $ 25,763,702 $ 14,243,982
============ ============
See notes to financial statements.
<PAGE>
TEJAS GAS CORPORATION THRIFT PLAN
NOTES TO FINANCIAL STATEMENTS
FOR THE YEARS ENDED DECEMBER 31, 1996 and 1995
1. ACCOUNTING POLICIES
BASIS OF ACCOUNTING - The financial statements of the Tejas Gas Corporation
(the "Company") Thrift Plan (the "Plan") are prepared under the accrual basis of
accounting.
INVESTMENT VALUATION AND INCOME RECOGNITION - The Plan's investments are
stated at fair value. Shares of publicly traded Frank Russell Trust Company
investment funds are valued at quoted market prices which represent the net
asset value of shares held by the Plan at year-end. The Company's Common
Stock and depositary shares, each depositary share representing a one-tenth
interest in a share of its 9.96% cumulative preferred stock ("Preferred
Stock"), are valued at their quoted market prices. Loans to participants are
valued at their cost which approximates their fair value.
Purchases and sales of securities are recorded on a trade date basis.
Interest income is recorded on the accrual basis. Dividends are recorded on
the ex-dividend date.
PAYMENT OF WITHDRAWALS - Withdrawals are recorded when paid.
The Company's Board of Directors has appointed a committee to administer the
Plan. The assets of the Plan are held in trust by Frank Russell Trust
Company (the "Trustee"). As described in Note 2, effective January 1, 1997,
the trustee changed to Charles Schwab Trust Company. The Company has hired a
recordkeeper to maintain the individual participant account records. The
investment management fees and recordkeeping fees for 1996 and 1995 were
paid by the Company.
2. DESCRIPTION OF THE PLAN
The description of the Plan is intended for the purpose of providing
information of a general nature only. Participants should refer to the Plan
agreement, as amended, for a complete description of the Plan's provisions.
FUNDING - Contributions to the Plan are made by participating employees (the
"Participants") and by the Company. Each Participant may contribute to the
Plan annually an amount equal to any whole percentage up to and including
15% of his or her base compensation. The Company makes matching
contributions to the Plan equal to the Participant's contribution, but not
to exceed 3% of the Participant's annual base compensation paid to the
employee during the year (the "Company Contribution").
Participants make their contributions to the Plan through salary deferral.
INVESTMENT PROGRAM - The Plan consists of six investment funds as follows:
FUND A: A Frank Russell Trust Company investment fund invested primarily
in bonds, notes, debentures, mortgages, preferred stocks, certificates
of indebtedness, certificates of deposit and Treasury bills, the
maturity of which shall not generally exceed three years.
<PAGE>
FUND B: A Frank Russell Trust Company investment fund invested in common
and convertible preferred stock, bonds and other forms of equity
investments, including collective investment funds composed primarily of
equity securities.
FUND C: A Frank Russell Trust Company investment fund invested in bonds,
notes, debentures, mortgages, certificates of deposit, Treasury bills
and any obligation with no restriction as to maturity, including
collective investment funds composed primarily of fixed-income
securities.
FUND D: Invested solely in depositary shares representing the Company's
Preferred Stock and temporary short-term securities.
FUND E: A Frank Russell Trust Company investment fund invested in
various collective investment funds composed primarily of securities or
other financial instruments.
FUND F: Invested solely in common stock of the Company and temporary
short-term securities.
Participants have the right to direct the Trustee to invest their
contributions in any manner. All Company Contributions are invested in Fund
F. Participants may redirect their Company Contribution to other investment
funds.
PARTICIPATION - Any employee of the Company is eligible to participate in
the Plan on the first day of the next month following completion of one hour
of service with the Company.
WITHDRAWALS AND FORFEITURES - Participants or their designated beneficiaries
are entitled to withdraw the value of their contribution account plus their
entire Company Contribution account in case of disability, retirement at or
after the age of 65 or death. In case of termination of service for other
reasons, Participants are entitled to the value of their contribution
accounts plus the vested portion of their Company Contribution account.
Vesting is determined by vested service years in accordance with the
following schedule:
COMPLETED YEARS VESTED
OF SERVICE PERCENTAGE
Less than one year 0
One year 20
Two years 40
Three years 60
Four years 80
Five years 100
Any portion of the value of Company Contributions not vested will be
forfeited upon termination of service. The amount forfeited by a Participant
is applied so as to reduce the Company's subsequent contributions to the
Plan. Forfeitures were $9,925 in 1996 and $7,568 in 1995.
Participants may also withdraw from their accounts upon attaining the age of
59 1/2. In addition, participants may make hardship withdrawals from their
contributions and fully vested Company Contributions. After a hardship
withdrawal, participant contributions are suspended for one year.
<PAGE>
LOANS TO PARTICIPANTS - Participants may borrow against their contributions.
Loans, which bear interest at rates ranging from 7.0% to 10%, are limited to
50% of the Participants' vested account balances up to a maximum of $50,000.
Interest rates are equal to the prime rate charged by First Interstate Bank
of Texas, NA, on the first day of the month in which the loan is made, plus
one percentage point. Loans may not exceed a five-year maturity, unless
funds are used to purchase a principal residence.
TERMINATION - Although it has not expressed any intent to do so, the Company
has the right under the Plan to discontinue its contributions at any time
and terminate the Plan subject to the provisions of ERISA. In the event of
Plan termination, participants will become fully vested and entitled to the
full distribution of their accounts.
AMENDMENTS - Effective January 1, 1996, the Plan was amended by the Fifth
Amendment to allow employees transferred to Coral Energy Resources, L.P., a
joint venture between the Company and Shell Oil Company, or to Coral Energy
Resource Services Company, a related service company, to be treated as
continuing employees of the Company for purposes of vesting, withdrawals,
loans, distributions, and investment direction. Effective June 6, 1996, the
Company, through one of its subsidiaries, acquired Transok, Inc.
("Transok"), and the Plan was amended by the Sixth Amendment to provide that
Transok adopt the Plan and its employees become participants in the Plan.
The Sixth Amendment also credited prior service with Transok for vesting and
permitted employees to roll over assets and loans held under their prior
plan, Central and South West Corporation ("CSW"), to the Plan. Effective
January 1, 1997, the Plan was amended and restated.
Effective January 1, 1997, the trustee was changed from Frank Russell Trust
Company to Charles Schwab Trust Company and the record keeper was changed
from William M. Mercer, Incorporated to Charles Schwab Retirement Plan
Services ("Schwab"). In anticipation of the change, all investments other
than the Company stock funds were sold as of December 31, 1996.
Under the agreement with Schwab, investment choices include nine Schwab
source mutual funds, two Company stock funds, and a personal choice
retirement account, which is a brokerage account that enables the
participant to buy or sell any listed securities. Participants may make
investment changes monthly as compared to the prior restriction of one
change per quarter.
3. TAX STATUS
The Internal Revenue Service has determined and informed the Company by a
letter dated May 16, 1996, that the Plan and the related trust are designed
in accordance with the applicable sections of the Internal Revenue Code
("IRC").
4. RELATED-PARTY TRANSACTIONS
The Trustee purchased 61,180 shares of the Company's common stock in the
open market at a cost of $2,393,472 in 1996; 15,258 shares were purchased at
a cost of $722,327 in 1995. The Trustee sold, in 1996, on the Plan's behalf,
2,381 shares (cost: $46,602) of the Company's common stock in the open
market; 5,847 shares (cost: $136,266) were sold in 1995. The proceeds from
such sales amounted to $90,745 in 1996 and $285,853 in 1995. At December 31,
1996 and 1995, the Plan held less than 1.39% and 1% of the Company's
outstanding common stock, respectively.
The Trustee purchased 14,640 depositary shares representing the Company's
Preferred Stock in the open market at a cost of $389,535 in 1996, 5,040
shares were purchased at a cost of $133,382 in 1995. The Trustee sold, in
1996, on the Plan's behalf, 3,165 depositary shares (cost: $86,479)
representing the
<PAGE>
Company's Preferred Stock in the open market, 8,175 depositary shares (cost:
$224,827) were sold in 1995. The proceeds from such sales amounted to
$82,566 in 1996 and $205,590 in 1995.
5. TRANSFER OF ASSETS FROM ACQUIRED SUBSIDIARY
During February 1995, the Company, through one of its subsidiaries, acquired
a group of companies collectively referred to as the LEDCO Companies. LEDCO,
Inc. ("LEDCO"), the principal operating entity of the LEDCO Companies, was
the sponsor of the LEDCO, Inc. Profit Sharing Plan, a qualified profit
sharing plan. This plan was merged into the Plan effective June 30, 1995,
and the transfer of assets in the amount of $103,076 was completed during
December 1995.
As described in Note 2, effective June 6, 1996, the Company, through one of
its subsidiaries, acquired Transok, Inc. ("Transok"), a wholly owned
subsidiary of Central and South West Corporation ("CSW"). Transok was an
adopting employer of CSW Thrift Plan. Under the provisions of the
purchase/sale agreement, continuing employees were eligible to participate
in the Plan immediately, were given vesting service credits for periods of
service with Transok, and, at the employee's option, were permitted to
roll over assets and loans held under the CSW Thrift Plan to the Plan.
Assets in the amount of $4,183,292 and loans in the amount of $623,316 were
rolled over to the Plan by individual participants.
6. RECONCILIATION OF FINANCIAL STATEMENTS TO FORM 5500
The Department of Labor clarified its definition of benefits payable which
resulted in no liability for benefits payable on Form 5500 as of December
31, 1996.
The following is a reconciliation of net assets available for benefits per
the financial statements to Form 5500:
December 31,
------------------------------
1996 1995
------------ ------------
Net assets available for benefits
per the financial statements ......... $ 25,763,702 $ 14,243,982
Amounts allocated to withdrawing
participants ......................... -- (339,296)
------------ ------------
Net assets available for benefits
per the Form 5500 .................... $ 25,763,702 $ 13,904,686
============ ============
The following is a reconciliation of benefits paid to participants per the
financial statements to the Form 5500:
Year Ended
December 31, 1996
------------
Withdrawals paid to participants per
the financial statements .............................. $ 652,271
Add: Amounts allocated to withdrawing
participants at December 31, 1996 ..................... --
Less: Amounts allocated to withdrawing
participants at December 31, 1995 ..................... (339,296)
------------
Benefits paid to participants per the Form 5500 ............ $ 312,975
============
Amounts allocated to withdrawing participants for claims from terminated
employees that have been processed and approved prior to December 31, 1996
and 1995 are $1,497,295 and $642,472, respectively.
<PAGE>
7. NET ASSETS AVAILABLE FOR BENEFITS - BY FUND
December 31, 1996
<TABLE>
<CAPTION>
Investment funds
-------------------------------------------------------------------------------------------------------------
ASSETS A B C D E F SCHWAB Total
----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
INVESTMENTS
At fair value:
Stock of Tejas Gas
Corporation:
Preferred ..... -- -- -- $ 1,103,792 -- -- -- $ 1,103,792
Common ........ -- -- -- -- -- $13,292,709 -- 13,292,709
Cash equivalents . $ 1,479,906 -- -- 11,357 -- 77,924 -- 1,569,187
Loans to
Participants ... 1,480,136 -- -- -- -- -- -- 1,480,136
----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
Total 2,960,042 -- -- 1,115,149 -- 13,370,633 -- 17,445,824
RECEIVABLES:
Dividends and
interest ....... 7,481 $ 13 $ 3 45 $ 7 257 -- 7,806
Sale of stock .... -- 3,712,888 1,211,395 -- 2,467,508 -- -- 7,391,791
Participants'
contributions .. -- -- -- -- -- -- $ 101,730 101,730
Company
contribution ... -- -- -- -- -- 816,551 -- 816,551
Total 7,481 3,712,901 1,211,398 45 2,467,515 816,808 101,730 8,317,878
----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
TOTAL ASSETS ........ $ 2,967,523 $ 3,712,901 $ 1,211,398 $ 1,115,194 $ 2,467,515 $14,187,441 $ 101,730 $25,763,702
=========== =========== =========== =========== =========== =========== =========== ===========
LIABILITIES AND NET
ASSETS AVAILABLE
FOR BENEFITS
NET ASSETS
AVAILABLE FOR
BENEFITS ......... $ 2,967,523 $ 3,712,901 $ 1,211,398 $ 1,115,194 $ 2,467,515 $14,187,441 $ 101,730 $25,763,702
----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
TOTAL LIABILITIES
AND NET ASSETS
AVAILABLE FOR
BENEFITS ......... $ 2,967,523 $ 3,712,901 $ 1,211,398 $ 1,115,194 $ 2,467,515 $14,187,441 $ 101,730 $25,763,702
=========== =========== =========== =========== =========== =========== =========== ===========
</TABLE>
<PAGE>
December 31, 1995
<TABLE>
<CAPTION>
Investment funds
-----------------------------------------------------------------------------------------------
ASSETS A B C D E F Total
----------- ----------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C> <C>
INVESTMENTS
At fair value:
Stock of Tejas Gas
Corporation:
Preferred .............. -- -- -- $ 791,936 -- -- $ 791,936
Common ................. -- -- -- -- -- $ 7,682,156 7,682,156
Mutual funds .............. -- $ 1,337,138 $ 528,567 -- $ 1,254,917 -- 3,120,622
Cash equivalents .......... $ 1,522,322 -- -- 8,665 -- 25,996 1,556,983
Loans to Participants ..... 682,943 -- -- -- -- -- 682,943
----------- ----------- ----------- ----------- ----------- ----------- -----------
Total ........ 2,205,265 1,337,138 528,567 800,601 1,254,917 7,708,152 13,834,640
----------- ----------- ----------- ----------- ----------- ----------- -----------
RECEIVABLES:
Dividends and interest .... 7,495 3 7 161 3 91 7,760
Sale of stock ............. -- -- 162,228 -- -- -- 162,228
Company contribution ...... -- -- -- -- -- 473,966 473,966
Due from other funds ...... -- 8,083 6,817 19,939 -- 33,725 68,564
----------- ----------- ----------- ----------- ----------- ----------- -----------
Total ........ 7,495 8,086 169,052 20,100 3 507,782 712,518
----------- ----------- ----------- ----------- ----------- ----------- -----------
TOTAL ASSETS ................. $ 2,212,760 $ 1,345,224 $ 697,619 $ 820,701 $ 1,254,920 $ 8,215,934 $14,547,158
=========== =========== =========== =========== =========== =========== ===========
LIABILITIES AND NET
ASSETS AVAILABLE
FOR BENEFITS
PAYABLE TO BROKERS ........... -- $ 204,164 -- -- $ 30,448 -- $ 234,612
DUE TO OTHER FUNDS ........... $ 63,719 -- -- -- 4,845 -- 68,564
NET ASSETS
AVAILABLE FOR
BENEFITS .................. 2,149,041 1,141,060 $ 697,619 $ 820,701 1,219,627 $ 8,215,934 14,243,982
----------- ----------- ----------- ----------- ----------- ----------- -----------
TOTAL LIABILITIES
AND NET ASSETS
AVAILABLE FOR
BENEFITS .................. $ 2,212,760 $ 1,345,224 $ 697,619 $ 820,701 $ 1,254,920 $ 8,215,934 $14,547,158
=========== =========== =========== =========== =========== =========== ===========
</TABLE>
<PAGE>
8. CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS - BY FUND
December 31, 1996
<TABLE>
<CAPTION>
Investment Funds
------------------------------------------------------------
A B C D
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
NET ASSETS AVAILABLE FOR BENEFITS,
BEGINNING OF YEAR ............... $ 2,149,041 $ 141,860 $ 697,619 $ 820,701
INVESTMENT INCOME:
Dividends ....................... -- -- -- 81,540
Interest ........................ 81,675 18 5 545
Interest on loans to Participants 97,260 -- -- --
------------ ------------ ------------ ------------
178,935 18 5 82,085
------------ ------------ ------------ ------------
NET APPRECIATION OR (DEPRECIATION)
IN FAIR VALUE OF INVESTMENTS .... -- 518,273 53,614 9,968
------------ ------------ ------------ ------------
Total ...................... 178,935 518,273 53,614 92,053
------------ ------------ ------------ ------------
CONTRIBUTIONS:
Employees ....................... 124,100 520,320 127,820 110,778
Company .........................
Rollovers from Transok, Inc. .... 136,661 1,335,957 600,612 184,374
------------ ------------ ------------ ------------
Total ...................... 260,761 1,856,277 728,432 295,152
------------ ------------ ------------ ------------
FUND TRANSFERS ..................... (163,993) 256,905 (240,443) (63,887)
LOAN ROLLOVERS FROM TRANSOK ........ 623,316 -- -- --
WITHDRAWALS ........................ (80,537) (59,632) (27,829) (28,825)
------------ ------------ ------------ ------------
NET ASSETS AVAILABLE FOR BENEFITS,
END OF YEAR ..................... $ 2,967,523 $ 3,712,901 $ 1,211,398 $ 1,115,194
============ ============ ============ ============
</TABLE>
<TABLE>
<CAPTION>
Investment Funds
------------------------------------------------------------
E F SCHWAB Total
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
NET ASSETS AVAILABLE FOR BENEFITS,
BEGINNING OF YEAR ............... $ 1,219,627 $ 8,215,934 -- $ 14,243,982
INVESTMENT INCOME:
Dividends ....................... -- -- -- 81,540
Interest ........................ 9 3,606 85,858
Interest on loans to Participants -- -- -- 97,260
------------ ------------ ------------ ------------
9 3,606 -- 264,658
------------ ------------ ------------ ------------
NET APPRECIATION OR (DEPRECIATION)
IN FAIR VALUE OF INVESTMENTS .... 271,021 3,415,467 -- 4,268,343
------------ ------------ ------------ ------------
Total ...................... 271,030 3,419,073 -- 4,533,001
------------ ------------ ------------ ------------
CONTRIBUTIONS:
Employees ....................... 307,334 723,749 $ 101,730 2,015,831
Company ......................... 816,551 816,551
Rollovers from Transok, Inc. .... 790,603 1,135,085 -- 4,183,292
------------ ------------ ------------ ------------
Total ...................... 1,097,937 2,675,385 101,730 7,015,674
------------ ------------ ------------ ------------
FUND TRANSFERS ..................... 45,134 166,284 -- --
LOAN ROLLOVERS FROM TRANSOK ........ -- -- -- 623,316
WITHDRAWALS ........................ (266,213) (289,235) -- (652,271)
------------ ------------ ------------ ------------
NET ASSETS AVAILABLE FOR BENEFITS,
END OF YEAR ..................... $ 2,467,515 $ 14,187,441 $ 101,730 $ 25,763,782
============ ============ ============ ============
</TABLE>
<PAGE>
December 31, 1995
<TABLE>
<CAPTION>
Investment Funds
------------------------------------------------------------------------------------------------------
A B C D E F Total
------------ ------------ ------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C> <C>
NET ASSETS AVAILABLE
FOR BENEFITS,
BEGINNING OF YEAR ..... $ 1,761,453 $ 547,898 $ 612,216 $ 787,085 $ 664,074 $ 6,443,870 $ 10,816,596
INVESTMENT INCOME:
Dividends ............. -- -- -- 72,421 -- -- 72,421
Interest .............. 83,976 3 7 496 4 2,779 87,265
Interest on loans to
Participants ....... 48,384 -- -- -- -- -- 48,384
------------ ------------ ------------ ------------ ------------ ------------ ------------
132,360 3 7 72,917 4 2,779 208,070
------------ ------------ ------------ ------------ ------------ ------------ ------------
NET APPRECIATION
OR (DEPRECIATION)
IN FAIR VALUE OF
INVESTMENTS ........... -- 204,827 81,955 37,656 224,018 1,379,190 1,927,642
------------ ------------ ------------ ------------ ------------ ------------ ------------
Total .... 132,360 204,830 81,962 110,573 224,018 1,381,969 2,135,712
------------ ------------ ------------ ------------ ------------ ------------ ------------
CONTRIBUTIONS:
Employees ............. 97,280 221,514 87,086 115,533 169,592 385,987 1,076,992
Company ............... -- -- -- -- -- 473,966 473,966
------------ ------------ ------------ ------------ ------------ ------------ ------------
Total .... 97,280 221,514 87,086 115,533 169,592 859,953 1,550,958
------------ ------------ ------------ ------------ ------------ ------------ ------------
FUND TRANSFERS ........... 219,198 193,577 (126,455) (161,560) 223,375 (348,135) --
TRANSFER FROM
LEDCO, INC. PROFIT
SHARING PLAN .......... 3,096 18,985 43,924 -- 15,887 21,184 103,076
WITHDRAWALS .............. (64,346) (45,744) (1,114) (30,930) (77,319) (142,907) (362,360)
------------ ------------ ------------ ------------ ------------ ------------ ------------
NET ASSETS AVAILABLE
FOR BENEFITS, END
OF YEAR ............... $ 2,149,041 $ 1,141,060 $ 697,619 $ 820,701 $ 1,219,627 $ 8,215,934 $ 14,243,982
============ ============ ============ ============ ============ ============ ============
</TABLE>
******
<PAGE>
TEJAS GAS CORPORATION THRIFT PLAN
Item 27a - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
AS OF DECEMBER 31, 1996
EIN 76-0263364
- --------------------------------------------------------------------------------
Shares/ Market
Par Value Cost Value
FUND A:
CASH EQUIVALENTS - Short-Term
Investment Fund ................... 1,479,906 $1,479,906 $ 1,479,906
LOAN INVESTMENTS - Ranging from
7.0% to 10% ....................... 1,480,136 1,480,136
---------- -----------
TOTAL FUND A INVESTMENTS ................ $2,960,042 $ 2,960,042
========== ===========
FUND D:
PREFERRED STOCK - Tejas Gas
Corporation ....................... 41,457 $1,123,914 $ 1,103,792
CASH EQUIVALENTS - Short-Term
Investment Fund ................... 11,357 11,357 11,357
---------- -----------
TOTAL FUND D INVESTMENTS ................ $1,135,271 $ 1,115,149
========== ===========
FUND F:
COMMON STOCK - Tejas Gas
Corporation ....................... 279,112 $5,493,751 $13,292,709
CASH EQUIVALENTS - Short-Term
Investment Fund ................... 77,924 77,924 77,924
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TOTAL FUND F INVESTMENTS ................ $5,571,675 $13,370,633
========== ===========
<PAGE>
TEJAS GAS CORPORATION THRIFT PLAN
Item 27d - SCHEDULE OF REPORTABLE TRANSACTIONS
FOR THE YEAR ENDED DECEMBER 31, 1996
EIN 76-0263364
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<TABLE>
<CAPTION>
Shares Value of Shares Value Cost of
Description of Assets Purchased Purchase Sold of Sale Asset Gain
SERIES OF TRANSACTIONS:
Mutual Funds:
<S> <C> <C> <C> <C> <C> <C>
Short-term investment .. 4,130,237 $4,130,237 4,118,032 $4,118,032 $4,118,032 $ --
Equity I Fund .......... 77,607 1,457,858 145,877 3,134,873 2,365,783 769,090
Equity II Fund ......... 29,570 523,188 53,387 1,062,774 835,814 226,960
Fixed Income I Fund .... 58,212 780,560 106,059 1,479,484 1,298,300 181,184
Fixed Income II Fund ... 40,026 524,408 70,448 951,259 853,178 98,081
Tejas Gas Corporation -
Common stock ........... 61,180 2,393,472 2,381 90,745 46,602 44,143
</TABLE>
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
trustees (or other persons who administer the Plan) have duly caused this annual
report to be signed on its behalf by the undersigned thereunto duly authorized.
TEJAS GAS CORPORATION THRIFT PLAN
By: /s/ C.M. BRADFORD
C.M. Bradford (Plan Administrator)
June 27, 1997
<PAGE>
EXHIBIT
INDEPENDENT AUDITORS' CONSENT
We consent to the incorporation by reference in Registration Statements No.
33-70746, 33-60064, 33-32792, 33-91436, 33-44615 and 333-18349 on Form S-8 for
Tejas Gas Corporation Thrift Plan of our report dated June 27, 1997 appearing in
this Annual Report on Form 11-K of Tejas Gas Corporation Thrift Plan for the
year ended December 31, 1996.
DELOITTE & TOUCHE LLP
Houston, Texas
June 27, 1997
