UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C. 20549
FORM 10-Q
(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 1996
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from ___________ to ___________
Commission file number 1-4169
TEXAS GAS TRANSMISSION CORPORATION
(Exact name of registrant as specified in its charter)
Delaware 61-0405152
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
3800 Frederica Street, Owensboro, Kentucky 42301
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (502) 926-8686
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to
such filing requirements for the past 90 days. Yes X No_
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date. 1,000 shares as of May 10,
1996
REGISTRANT MEETS THE CONDITIONS SET FORTH IN GENERAL INSTRUCTIONS H(1)(a) and
(b) OF FORM 10-Q AND IS THEREFORE FILING THIS FORM WITH THE REDUCED DISCLOSURE
FORMAT.
<PAGE>
TEXAS GAS TRANSMISSION CORPORATION
INDEX
Page
Number
Part I. Financial Information
Item 1. Financial Statements..................................... 3
Post-acquisition and Pre-acquisition Operations:
Balance Sheets at
March 31, 1996 and December 31, 1995........................ 3-4
Statements of Income
For the Three Months Ended March 31, 1996,
For the Period January 18, 1995 to March 31, 1995, and
For the Period January 1, 1995 to January 17, 1995 ......... 5
Statements of Cash Flows
For the Three Months Ended March 31, 1996,
For the Period January 18, 1995 to March 31, 1995, and
For the Period January 1, 1995 to January 17, 1995 ......... 6
Condensed Notes to Financial Statements........................ 7-10
Item 2. Management's Narrative Analysis of
the Results of Operations................................11-13
Part II. Other Information
Item 6.Exhibits and Reports on Form 8-K .......................... 14
Signatures........................................................ 15
<PAGE>
Item 1. Financial Statements
TEXAS GAS TRANSMISSION CORPORATION
BALANCE SHEETS
(Thousands of Dollars)
(Unaudited)
<TABLE>
<CAPTION>
March 31, December 31,
ASSETS 1996 1995
<S> <C> <C>
Current Assets:
Cash and temporary cash investments $ 540 $ 206
Receivables:
Trade 3,671 6,798
Affiliates 1,505 1,546
Other 474 1,150
Advances to affiliates 125,330 113,289
Transportation and exchange gas
receivable 4,586 3,113
Costs recoverable from customers:
Gas purchase - 1,729
Gas supply realignment 10,380 15,730
Other 8,712 10,912
Inventories 14,852 14,707
Deferred income taxes 4,589 12,744
Gas stored underground 14,926 -
Other 3,321 2,636
Total current assets 192,886 184,560
Advances to Affiliates 125,000 125,000
Investments, at Cost 1,552 5,853
Property, Plant and Equipment, at cost:
Natural gas transmission plant 915,724 925,829
Less -- Accumulated depreciation and
amortization 35,095 26,643
Property, plant and equipment, net 880,629 899,186
Other Assets:
Gas stored underground 104,458 103,421
Costs recoverable from customers 72,247 73,879
Other 7,103 6,218
Total other assets 183,808 183,518
Total Assets $1,383,875 $1,398,117
</TABLE>
The accompanying condensed notes are an integral part of these financial
statements.
<PAGE>
TEXAS GAS TRANSMISSION CORPORATION
BALANCE SHEETS
(Thousands of Dollars)
(Unaudited)
<TABLE>
<CAPTION>
March 31, December 31,
LIABILITIES AND STOCKHOLDER'S EQUITY 1996 1995
<S> <C> <C>
Current Liabilities:
Payables:
Trade $ 6,088 $ 6,857
Affiliates 21,792 20,566
Other 7,199 20,733
Transportation and exchange gas payable 3,157 8,031
Accrued liabilities 69,556 52,250
Accrued gas supply realignment costs 6,084 16,717
Costs refundable to customers 8,202 4,618
Reserve for regulatory and rate matters 23,248 25,576
Total current liabilities 145,326 155,348
Long-Term Debt 255,052 255,860
Other Liabilities and Deferred Credits:
Income taxes refundable to customers 4,096 4,979
Deferred income taxes 139,742 138,308
Postretirement benefits other than pensions 49,222 54,400
Other 46,714 43,984
Total other liabilities and deferred
credits 239,774 241,671
Contingent Liabilities and Commitments
Stockholder's Equity:
Common stock, $1.00 par value, 1,000 shares
authorized, issued and outstanding 1 1
Premium on capital stock and other paid-in
capital 734,446 740,446
Retained earnings 9,276 4,791
Total stockholder's equity 743,723 745,238
Total Liabilities and Stockholder's
Equity $1,383,875 $1,398,117
</TABLE>
The accompanying condensed notes are an integral part of these financial
statements.
<PAGE>
The acquisition of the Company by The Williams Companies, Inc. was accounted
for using the purchase method of accounting. Accordingly, the purchase price
was "pushed down" and recorded in the accompanying financial statements which
affects the comparability of the post-acquisition and pre-acquisition results
of operations and cash flows.
TEXAS GAS TRANSMISSION CORPORATION
STATEMENTS OF INCOME
(Thousands of Dollars)
(Unaudited)
<TABLE>
<CAPTION>
Post-Acquisition Pre-Acquisition
For the Period
For the Three For the Period January 1,
Months Ended January 18, 1995 1995 to
March 31, to March 31, January 17,
1996 1995 1995
<S> <C> <C> <C>
Operating Revenues:
Gas sales $ 21,772 $ 14,272 $ 3,239
Gas transportation 100,695 66,810 15,932
Other 503 396 130
Total operating revenues 122,970 81,478 19,301
Operating Costs and Expenses:
Cost of gas sold 21,786 14,160 3,188
Cost of gas transportation 16,602 8,039 2,134
Operation and maintenance 13,686 11,009 2,433
Administrative and general 16,193 13,333 3,086
Provision for severance benefits - - 6,772
Depreciation and amortization 10,730 9,503 1,779
Taxes other than income taxes 3,911 2,953 721
Total operating costs and expenses 82,908 58,997 20,113
Operating Income (Loss) 40,062 22,481 (812)
Other (Income) Deductions:
Interest expense 5,316 4,634 1,122
Interest income (3,553) (2,410) (560)
Miscellaneous other (income)
deductions 300 (25) 56
Total other deductions 2,063 2,199 618
Income (Loss) Before Income Taxes 37,999 20,282 (1,430)
Provision for Income Taxes 15,057 8,475 1,884
Net Income (Loss) $ 22,942 $ 11,807 $ (3,314)
</TABLE>
The accompanying condensed notes are an integral part of these financial
statements.
<PAGE>
The acquisition of the Company by The Williams Companies, Inc. was accounted
for using the purchase method of accounting. Accordingly, the purchase price
was "pushed down" and recorded in the accompanying financial statements which
affects the comparability of the post-acquisition and pre-acquisition results
of operations and cash flows.
TEXAS GAS TRANSMISSION CORPORATION
STATEMENTS OF CASH FLOWS
(Thousands of Dollars)
(Unaudited)
<TABLE>
<CAPTION>
Post-Acquisition Pre-Acquisition
For the Period
For the Three For the Period January 1,
Months Ended January 18, 1995 1995 to
March 31, to March 31, January 17,
1996 1995 1995
<S> <C> <C> <C>
OPERATING ACTIVITIES:
Net income (loss) $ 22,942 $ 11,807 $ (3,314)
Adjustments to reconcile to cash
provided from operations:
Depreciation and depletion 10,730 9,503 1,779
Provision for deferred income taxes 9,589 1,428 (695)
Changes in receivables sold 400 (12,194) (14,806)
Changes in receivables 2,422 3,630 2,113
Changes in inventories (145) 513 118
Changes in other current assets 8,531 8,138 2,048
Changes in accounts payable (14,302) (5,857) (3,607)
Changes in accrued liabilities (4,176) 8,416 4,913
Other, including changes in non-
current assets and liabilities 838 8,410 5,490
Net cash provided (used) by
operating activities 36,829 33,794 (5,961)
FINANCING ACTIVITIES:
Dividends and returns of capital (20,000) - -
Other -- net - 13 59
Net cash (used) provided by
financing activities (20,000) 13 59
INVESTING ACTIVITIES:
Property, plant and equipment:
Capital expenditures, net of AFUDC (4,443) (11,879) (1,898)
Proceeds from sales and salvage
values, net of costs of removal (11) 224 (21)
Advances to affiliates, net (12,041) (23,016) 7,852
Net cash (used) provided by
investing activities (16,495) (34,671) 5,933
Increase (Decrease) in Cash and Cash
Equivalents 334 (864) 31
Cash and Cash Equivalents at Beginning
of Period 206 943 912
Cash and Cash Equivalents at End of
Period $ 540 $ 79 $ 943
Supplemental Disclosure of Cash Flow
Information:
Cash paid during the period for:
Interest (net of amount capitalized)$ 4,752 $ - $ 4,856
Income taxes, net 5,414 - (7,395)
</TABLE>
The accompanying condensed notes are an integral part of these financial
statements.
<PAGE>
TEXAS GAS TRANSMISSION CORPORATION
CONDENSED NOTES TO FINANCIAL STATEMENTS
(Unaudited)
A. Corporate Structure and Control, Nature of Operations and Basis of
Presentation
Corporate Structure and Control
Effective May 1, 1995, Texas Gas Transmission Corporation (the Company)
became a wholly owned subsidiary of The Williams Companies, Inc. (Williams).
Prior to May 1, 1995, the Company was a wholly owned subsidiary of Transco Gas
Company, which was a wholly owned subsidiary of Transco Energy Company
(Transco). As used herein, the term Williams refers to The Williams
Companies, Inc. together with its wholly owned subsidiaries, unless the
context otherwise requires.
Seasonal Variation
Operating income may vary by quarter. Based on current rate structure, the
Company experiences higher operating income in the first and fourth quarters
as compared to the second and third quarters.
Basis of Presentation
The financial statements have been prepared from the books and records of
the Company without audit, pursuant to the rules and regulations of the
Securities and Exchange Commission. Certain information and footnote
disclosures normally included in financial statements prepared in accordance
with generally accepted accounting principles have been condensed or omitted.
As a result of the change in control of the Company to Williams on January 18,
1995, the Statement of Income and Statement of Cash Flows for the three months
ended March 31, 1995 have been segregated into a pre-acquisition period ending
January 17, 1995 and a post-acquisition period beginning January 18, 1995.
The accompanying unaudited financial statements include all adjustments, both
normal recurring and others, which, in the opinion of the Company's
management, are necessary to present fairly its financial position at March
31, 1996, and results of operations and cash flows for the three months ended
March 31, 1996, the period January 18, 1995 to March 31, 1995, and the period
January 1, 1995 to January 17, 1995, and cash flows for the three months ended
March 31, 1996, the period January 18, 1995 to March 31, 1995, and the period
January 1, 1995 to January 17, 1995. These financial statements should be
read in conjunction with the financial statements, notes thereto and
management's narrative analysis contained in the Company's 1995 Annual Report
on Form 10-K.
The acquisition by Williams has been accounted for using the purchase
method of accounting. Accordingly, an allocation of the purchase price was
assigned to the assets and liabilities of the Company, based on their
estimated fair values. The accompanying financial statements reflect the
pushdown of the purchase price allocation (amounts in excess of book value) to
the Company. Included in property, plant and equipment at March 31, 1996 is
an aggregate of $430 million related to amounts in excess of the original cost
<PAGE>
of the regulated facilities as a result of the Williams' and prior
acquisitions. This amount is being amortized over the estimated useful lives
of these assets at approximately $11 million per year. Current Federal Energy
Regulatory Commission (FERC) policy does not permit the Company to recover
through its rates amounts in excess of original cost.
Certain reclassifications have been made in the 1995 financial statements
to conform to the 1996 presentation.
B. Contingent Liabilities and Commitments
Regulatory and Rate Matters and Related Litigation
FERC Order 636
Effective November 1, 1993, the Company restructured its business to
implement the provisions of FERC Order 636, which, among other things,
required pipelines to unbundle their merchant role from their transportation
services. Certain aspects of the Company's FERC Order 636 restructuring are
under appeal. FERC Order 636 also provides that pipelines should be allowed
the opportunity to recover all prudently incurred transition costs which, for
the Company, are primarily related to Gas Supply Realignment (GSR) costs and
unrecovered purchased gas costs.
In September 1995, the Company received FERC approval of a settlement
agreement which resolves all issues regarding the Company's recovery of GSR
costs. The settlement provides that the Company will recover 100% of its GSR
costs up to $50 million, will share in costs incurred between $50 million and
$80 million and will absorb any GSR costs above $80 million. Under the
settlement, all challenges to these costs, on the grounds of imprudence or
otherwise, will be withdrawn and no future challenges will be filed. Ninety
percent of the cost recovery will be collected via demand surcharges on the
Company's firm transportation rates; the remaining 10% should be recovered
from its interruptible transportation service.
Through March 31, 1996, the Company had paid approximately $63.9 million
for GSR costs, primarily as a result of contract terminations, and has
recorded a liability of approximately $16.1 million for its estimated
remaining GSR costs. The Company has recovered approximately $49.6 million,
plus interest, in GSR costs and has recorded a regulatory asset of
approximately $17.6 million for the estimated future recovery of its GSR
costs, most of which will be collected from customers prior to December 31,
1997.
The settlement also extends the Company's pricing differential recovery
mechanism to November 1, 1996, and beyond that date for GSR contracts in
litigation as of that date. This mechanism allows the Company to recover
purchased gas costs incurred under remaining GSR contracts in excess of
amounts recovered through the sale of such gas at auction. Except for any
contracts in litigation, the Company anticipates that all of its remaining GSR
contracts will expire or be negotiated for termination by November 1, 1996.
Additionally, the Company's transition costs include unrecovered purchased
gas costs for periods prior to November 1, 1993, pursuant to FERC Order 636.
<PAGE>
In October 1995, the Company received FERC approval of a settlement with its
customers, under which requirements the Company ultimately absorbed
approximately $0.7 million of these costs, which was recognized as expense in
1995. Refunds of overrecovered amounts totaling $4 million were issued in
December 1995 and January 1996.
General Rate Issues
On September 30, 1994, the Company filed a general rate case (Docket No.
RP94-423) which became effective April 1, 1995, subject to refund. A proposed
settlement was filed with the FERC on September 29, 1995, and approved by the
FERC on February 20, 1996. Refunds of approximately $23.2 million including
interest, for which the Company had provided a reserve, were made to
customers in April 1996.
During 1995 and 1996, the Company made filings to reflect changes in costs
of transportation by others, pursuant to the Transportation Cost Adjustment
tracker provisions of its approved tariff. Pursuant to that tariff, in May
1995, the Company refunded $13.3 million of overcollected transportation
costs.
Royalty Claims and Producer Litigation
In connection with the Company's renegotiations of supply contracts with
producers to resolve take-or-pay and other contract claims, the Company has
entered into certain settlements which may require the indemnification by the
Company of certain claims for royalties which a producer may be required to
pay as a result of such settlements. The Company has been made aware of
demands on producers for additional royalties and may receive other demands
which could result in claims against the Company pursuant to the
indemnification provision in its settlements. Indemnification for royalties
will depend on, among other things, the specific lease provisions between the
producer and the lessor and the terms of the settlement between the producer
and the Company. The Company may file to recover 75% of any such amounts it
may be required to pay pursuant to indemnifications for royalties under the
provisions of FERC Order 528. The Company has provided reserves for the
estimated settlement costs of its royalty claims and litigation.
On March 3, 1995, Ergon, Inc. and Ergon Exploration (Ergon) filed a
lawsuit against the Company in the U.S. District Court, West District
Louisiana, seeking approximately $45,000 in damages for gas purchased in
calendar year 1994, a declaratory judgment concerning the proper construction
of the pricing provisions of a gas purchase contract, unspecified future
damages and, alternatively, a reformation of or rescission of an agreement
amending the gas purchase contract. The Company is currently recovering costs
incurred under subject contract as GSR costs pursuant to FERC Order 636 and
anticipates continued recovery of future amounts consistent with the GSR
settlement discussed above.
Environmental Matters
Since 1989, the Company has had studies underway to test certain of its
facilities for the presence of toxic and hazardous substances to determine to
what extent, if any, remediation may be necessary. On the basis of the
<PAGE>
findings to date, the Company estimates that environmental assessment and
remediation costs that may be incurred over the next two to three years will
total approximately $4 million to $10 million. As of March 31, 1996, the
Company had a reserve of approximately $5 million for these estimated costs.
This estimate depends upon a number of assumptions concerning the scope of
remediation that will be required at certain locations and the cost of
remedial measures to be undertaken. The Company is continuing to conduct
environmental assessments and is implementing a variety of remedial measures
that may result in increases or decreases in the total estimated costs.
The Company used lubricating oils containing polychlorinated biphenyls
(PCBs) and, although the use of such oils was discontinued in the 1970's,
has discovered residual PCB contamination in equipment and soils at certain
gas compressor station sites. The Company continues to work closely with the
U. S. Environmental Protection Agency (EPA) and state regulatory authorities
regarding PCB issues and has programs to assess and remediate such conditions
where they exist, the costs of which are a significant portion of the $4
million to $10 million range discussed above.
The Company currently is either named as a potentially responsible party
or has received an information request regarding its potential involvement at
two Superfund waste disposal sites and one state waste disposal site. The
anticipated remediation costs, if any, associated with these sites have been
included in the $4 million to $10 million range discussed above.
The Company considers environmental assessment and remediation costs and
costs associated with compliance with environmental standards to be
recoverable through rates, as they are prudent costs incurred in the ordinary
course of business. The actual costs incurred will depend on the actual
amount and extent of contamination discovered, the final cleanup standards
mandated by the EPA or other governmental authorities, and other factors. To
date, the Company has been permitted recovery of environmental costs incurred,
and it is the Company's intent to continue seeking recovery of such costs, as
incurred, through rate filings. Therefore, the estimated recoveries of
environmental assessment and remediation costs have been recorded as
regulatory assets in the accompanying balance sheets.
Summary of Contingent Liabilities and Commitments
While no assurances may be given, the Company does not believe that the
ultimate resolution of the foregoing matters, taken as a whole and after
consideration of amounts accrued, insurance coverage, recovery from customers
or other indemnification arrangements, will have a materially adverse effect
upon the Company's future financial position, results of operations and cash
flow requirements.
C. Adoption of Accounting Standard
Effective January 1, 1996, the Company adopted Statement of Financial
Accounting Standards No. 121, "Accounting for Impairment of Long-Lived Assets
and for Long-Lived Assets to be Disposed Of." Adoption of the standard had no
effect on the Company's financial position or results of operations.
<PAGE>
Item 2. Management's Narrative Analysis of the Results of Operations
(Filed Pursuant to General Instruction H)
Introduction
As discussed in Note A, the Company was acquired by Williams through a
merger of a Williams' subsidiary and Transco, effective May 1, 1995. Williams
became a majority owner of Transco effective January 18, 1995, at which date
the effects of the acquisition were pushed down and recorded on the books and
records of the Company. The pushdown of the acquisition affects the
comparability of the Company's pre- and post-acquisition results of
operations. The following analysis represents a pro forma comparison of the
full first quarters of the current and prior years, with disclosure of
material variances due to the acquisition.
Financial Analysis of Operations
Three Months Ended March 31, 1996 Compared to
Three Months Ended March 31, 1995
Operating income was $18 million higher for the three months ended March
31, 1996, than for the three months ended March 31, 1995. The increase in
operating income was primarily attributable to higher transportation revenues
due to new rates that became effective on April 1, 1995, a recent rate case
settlement which resulted in a first quarter 1996 adjustment to rate refund
accruals and the first quarter 1995 provision for severance benefits that
resulted from the acquisition by Williams. Compared to 1995, net income was
$14 million higher due to the same reasons discussed above and the lack of tax
benefits associated with the provision for severance benefits incurred in
1995.
Operating revenues increased $22 million primarily attributable to higher
transportation revenues due to new rates that became effective on April 1,
1995, a recent rate case settlement which resulted in a first quarter 1996
adjustment to rate refund accruals and higher gas sales due to higher gas
prices in 1996 than in 1995. As discussed in Note B, "Summary of Significant
Accounting Policies," of the Company's 1995 Annual Report on Form 10-K, the
Company's gas sales have no impact on its results of operations. Mainline
deliveries were 240.1 TBtu and 193.6 TBtu for the first quarter of 1996 and
1995, respectively, which, to a lesser extent, also contributed to increased
revenues.
Operating expenses increased $4 million primarily attributable to higher
cost of gas sold due to higher gas prices and higher cost of transportation of
gas by others which is recovered through rates, partially offset by the first
quarter 1995 provision for severance benefits that resulted from the
acquisition by Williams.
Competition for natural gas transportation has intensified in recent years
due to customer access to other pipelines, rate competitiveness among
pipelines and customers' desire to have more than one supplier. The FERC's
stated purpose for its Order 636 was to improve the competitive structure of
the natural gas pipeline industry. Future utilization of the Company's
<PAGE>
pipeline capacity will depend on competition from other pipelines and
alternative fuels, the general level of natural gas demand and weather
conditions. Several of the ultimate consumers within the Company's markets
have the ability to switch to alternate fuels; to date, however, losses due to
fuel switching have not been significant. The Company estimates its maximum
potential loss to fuel switching is less than one quarter of total deliveries.
When restructured tariffs became effective under FERC Order 636, all
suppliers of natural gas were able to compete for any gas markets capable of
being served by the pipelines using nondiscriminatory transportation services
provided by the pipelines. As the FERC Order 636 regulated environment has
matured, many pipelines have faced reduced levels of subscribed capacity as
contractual terms expire and customers opt for alternative sources of
transmission and related services. This issue is known as "capacity turnback"
in the industry. While the Company has not currently experienced any major
capacity turnback, the Company, like other pipelines, is evaluating the
consequences of potential demand reductions on system utilization and cost
structure to remaining customers. The Company expects it will be able to
remarket most, if not all, capacity which becomes available on its system.
Financial Condition and Liquidity
On May 1, 1995, Transco paid as a dividend to Williams all of Transco's
interests in the Company. Williams has indicated that it intends to maintain
and expand the existing core business of the Company and to promptly pursue
new business opportunities made available as a result of the merger. Through
the years, the Company has consistently maintained its financial strength and
experienced strong operational results. The Company expects that its
acquisition by Williams will further enhance its financial and operational
strength, as well as allow the Company to take advantage of new opportunities
for growth. If necessary, the Company also expects to be able to access
public and private capital markets to finance its capital requirements.
The Company is a participant with other Williams subsidiaries in an $800
million credit agreement under which the Company may borrow up to $200
million. Interest rates vary with current market conditions. As of March 31,
1996, the Company had no amounts outstanding under this facility.
Effective May 1, 1995, the Company began participation in Williams' cash
management program. On that date, the balance of the advances due from
Transco were transferred by Transco to Williams. These advances are
represented by demand notes payable to the Company. Those amounts that the
Company anticipates Williams will repay in the next twelve months are
classified as current assets, while the remainder are classified as
noncurrent. The interest rate on intercompany demand notes is the London
Interbank Offered Rate on the first day of the month plus 0.45%.
In May 1995, the Company entered into a program with a bank to sell up to
$35 million of trade receivables with limited recourse. On March 31, 1996,
and on December 31, 1995, $27 million of such receivables were sold.
The Company's capital expenditures for the first three months of 1996 and
1995 were $4 million and $14 million, respectively. Capital expenditures for
<PAGE>
1996 are expected to approximate $55 million. The Company's debt as a
percentage of total capitalization at March 31, 1996 and December 31, 1995 was
25.5% and 25.6%, respectively.
In September 1994, the Company filed a general rate case (Docket No. RP94-
423) which was effective April 1, 1995, subject to refund. A proposed
settlement was filed with the FERC on September 29, 1995, and was approved by
the FERC on February 20, 1996. Refunds of approximately $23.2 million
including interest, for which the Company had provided a reserve, were made to
customers in April 1996.
<PAGE>
PART II - OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits
None
(b) Reports on Form 8-K
None
<PAGE>
S I G N A T U R E S
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
TEXAS GAS TRANSMISSION CORPORATION
DATE: May 13, 1996 BY: /s/ G. D. Lauderdale
-------------------------------
G. D. Lauderdale
Senior Vice President
and General Manager
DATE: May 13, 1996 BY: /s/ E. J. Ralph
-------------------------------
E. J. Ralph
Vice President, Treasurer,
Controller, and Assistant Secretary
<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 0000097452
<NAME> TEXAS GAS TRANSMISSION CORPORATION
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> MAR-31-1996
<CASH> 540
<SECURITIES> 0
<RECEIVABLES> 3,671
<ALLOWANCES> 0
<INVENTORY> 14,852
<CURRENT-ASSETS> 192,886
<PP&E> 915,724
<DEPRECIATION> 35,095
<TOTAL-ASSETS> 1,383,875
<CURRENT-LIABILITIES> 145,326
<BONDS> 255,052
<COMMON> 1
0
0
<OTHER-SE> 743,723
<TOTAL-LIABILITY-AND-EQUITY> 1,383,875
<SALES> 21,772
<TOTAL-REVENUES> 122,970
<CGS> 21,786
<TOTAL-COSTS> 52,074
<OTHER-EXPENSES> 14,641
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 5,316
<INCOME-PRETAX> 37,999
<INCOME-TAX> 15,057
<INCOME-CONTINUING> 22,942
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 22,942
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
