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RECORD WEATHER REFLECTED IN WILLIAMS' FIRST-QUARTER 1992 RESULTS

RECORD WEATHER REFLECTED IN WILLIAMS' FIRST-QUARTER 1992 RESULTS
 TULSA, Okla., April 27 /PRNewswire/ -- The Williams Companies, Inc. (NYSE: WMB), in the wake of record warm weather that reduced demand for natural gas, reported an unaudited net income of $39.5 million, or 85 cents per share,in the first quarter that ended March 31.
 This compares with a net income of $42.8 million, or 96 cents per share, for the quarter in 1991. Revenues were $583 million, compared with $608 million for the quarter in 1991. This year's first quarter includes a $14.6 million pre-tax gain from the March 6 sale of a tract of land in Florida that had been retained from the assets of Agrico Chemical Co., which was sold several years ago.
 Joseph H. Williams, chairman and chief executive officer, said the gain from the land sale "helped blunt the full effects of extraordinarily warm weather.
 "If we had experienced 30-year average temperatures during the period, our operating profit would have been increased by an estimated $25 million," he said. "Also, other factors have slightly dampened our short-term expectations for the telecommunication side of our company."
 Williams, noting the company is in the midst of the largest capital expansion program in its history, said several positive developments occurred during the quarter:
 -- The Kern River Gas Transmission Co. pipeline, which began operation in mid-February, is now shipping 450 million cubic feet per day (MMcfd). Its volumes are expected to exceed 600 MMcfd in May.
 -- Construction is to begin in June on a $373 million, 22 percent expansion of the mainline capacity of Northwest Pipeline Corp., a unit of Williams Western Group. Elements of the expansion should be ready for the 1992-93 heating season. It is to be in full service in the second quarter of 1993.
 -- Because of demand, another unit of Williams Western, Williams Field Services Company, will expand capacity of its newly constructed Manzanares coal-seam gas gathering and processing system in the San Juan Basin from 440 MMcfd to 575 MMcfd by year end.
 -- A new tariff to be effective in May will allow Williams Pipe Line Co. an average 7.9 percent rate increase system-wide.
 -- On April 8, the Federal Energy Regulatory Commission issued Order 636, which changes the way interstate gas pipeline companies provide services. Williams said the new order will either modestly benefit or have a minimal financial impact on the company's pipeline systems.
 WilTel reported a first-quarter operating profit of $8.6 million, compared with an operating profit of $15.2 million in the same quarter of 1991.
 The benefits of a 26 percent increase in voice-grade-equivalent circuit miles were more than offset by costs associated with the ongoing network integration and enhancement of a switched services company acquired last November.
 Revenues were $180 million, compared with $129 million in 1991's first quarter. The majority of the increase was due to WilTel Communications Systems, a telecommunications equipment provider acquired in late January 1991.
 "Even though demand is healthy, WilTel continues to see consolidation of its traditional carrier customers. Also, aggressive pricing is keeping pressure on margins across the full spectrum of this company's products and services.
 "These factors, combined with the start-up cost of developing and marketing a wide range of switched services, make it likely that WilTel's 1992 financial results will be less than last year's," he said.
 Williams added that WilTel should "benefit more fully later this year from an expanding range of services as it selectively brings switched products to market that match the performance and reliability standards of its other offerings."
 Williams Western Group reported a first-quarter operating profit of $34.7 million, compared with an operating profit of $35.5 million in the first quarter of 1991.
 Warm temperatures were responsible for a 7 percent reduction in mainline throughput compared with the same quarter a year ago. The resulting decline in operating profit was partially offset by higher gathering, processing and gas liquids volumes.
 Newly constructed facilities in the San Juan Basin were largely responsible for a 29 percent increase in gathering volumes and a 40 percent increase in processing volumes when compared with the first quarter of 1991.
 Williams Natural Gas Co. reported a first-quarter operating profit of $31.4 million, compared with an operating profit of $45.4 million in the first quarter of 1991.
 Temperatures during the first quarter of 1992 were 15 percent warmer than the abnormally warm first quarter of 1991. As a result, natural gas sales volumes declined 35 percent. Transportation volumes were essentially unchanged and gathering volumes increased 11 percent when compared to volumes in the first quarter of 1991.
 Williams Energy Co. reported a first-quarter operating profit of $1.5 million, compared with an operating profit of $5.1 million in the first
quarter of 1991. The decline in operating profit was due to significantly lower per-unit gas sales margins compared with the first quarter of 1991.
 "Although this company is relatively insensitive to warm temperatures in terms of demand," Williams said, "low prices and abundant supplies served to trim the already thin margins that are characteristic of its competitive business environment."
 Combined transportation and gas sales volumes were virtually unchanged when compared with volumes in the first quarter of 1991.
 Williams Pipe Line Co. reported a first-quarter operating profit of $7.6 million, compared with an operating profit of $7 million in the first quarter of 1991.
 The increase in operating profit was primarily due to lower general and administrative expenses.
 Shipments increased slightly when compared to the first quarter of last year, but were restricted because of unscheduled maintenance at several Midcontinent refineries.
 In summary, Williams said the corporation's first-quarter results "dramatically demonstrate the fact that most of the nation basked in unusually mild weather from January through March of this year -- the warmest on record since 1921.
 "The record warmth was too large a speed bump to dodge, but it hasn't stopped us from going forward," he said, "The largest capital expansion program in the history of our company is moving ahead on schedule, reinforcing the significant strategic advantages of our solid mix of businesses and our optimism about the future we are building for the company."
 THE WILLIAMS COMPANIES INC.
 FINANCIAL HIGHLIGHTS
 (Unaudited)
 (Dollars in millions, except per-share amounts)
 Three months ended March 31,
 1992 1991
 Revenues $583.2 $607.6
 Net income 39.5 42.8
 Earnings per common and
 common-equivalent share .85 .96
 Average shares (thousands) 42,947 41,635
 THE WILLIAMS COMPANIES INC.
 CONSOLIDATED STATEMENT OF INCOME
 (Unaudited)
 (Millions, except per-share amounts)
 Three months ended March 31,
 1992 1991
 Revenues:
 Williams Western Group $113.4 $122.9
 Williams Natural Gas Co. 142.9 193.3
 Williams Energy Co. 132.0 145.8
 Williams Pipe Line Co. 31.7 33.9
 Williams Telecommunications Group 180.2 129.0
 Intercompany eliminations (17.9) (17.3)
 Total revenues 583.2 607.6
 Profit-center costs and expenses:
 Costs and operating expenses 427.9 440.8
 Selling, general and
 administrative expenses 75.4 58.9
 Other (income) expense - net (3.9) (.3)
 Total profit-center costs
 and expenses 499.4 499.4
 Operating profit:
 Williams Western Group 34.7 35.5
 Williams Natural Gas Co. 31.4 45.4
 Williams Energy Co. 1.5 5.1
 Williams Pipe Line Co. 7.6 7.0
 Williams Telecommunications Group 8.6 15.2
 Total operating profit 83.8 108.2
 General corporate expenses (8.0) (7.0)
 Interest accrued (40.9) (40.3)
 Interest capitalized 1.3 1.2
 Investing income 4.5 8.2
 Other expense--net (1.6) (2.5)
 Income before income taxes 53.7 67.8
 Provision for income taxes 14.2 25.0
 Net income 39.5 42.8
 Preferred stock dividends 2.9 2.9
 Income applicable to common stock $ 36.6 $ 39.9
 Earnings per common and
 common-equivalent share $ .85 $ .96
 Operating profit of operating companies may vary substantially by quarter. Williams Western Group and Williams Natural Gas Co. historically have experienced their greatest profitability in the first and fourth quarter.
 THE WILLIAMS COMPANIES INC.
 OPERATING STATISTICS
 Three months ended March 31,
 1992 1991
 Williams Western Group
 Natural gas sales (TBtu) 5.4 15.0
 Transportation volumes (TBtu) 148.4 150.8
 Gathering volumes (TBtu) 96.0 74.7
 Third-party processing
 Williams Natural Gas Co.
 Natural gas sales (TBtu) 29.8 45.7
 Transportation volumes (TBtu) 85.7 85.3
 Gathering volumes (TBtu) 41.2 37.0
 Williams Energy Co.
 Natural gas sales (TBtu):
 On-system 42.8 43.3
 Off-system 45.0 41.7
 Transportation volumes (TBtu) 17.5 22.1
 Williams Pipe Line Co.
 Shipments (million barrels) 38.9 38.5
 Barrel miles (billions) 10.6 11.1
 Williams Telecommunications Group, Inc.
 Billable circuits at Dec. 31:
 DS-0 10,927 8,489
 DS-1 3,610 3,810
 DS-3 678 588
 Total 15,215 12,887
 -0- 4/27/92
 /CONTACT: Jim Gipson of the Williams Cos., 918-588-2111/
 (WMB) CO: The Williams Companies ST: Oklahoma IN: OIL SU: ERN


RM -- SF009 -- 3093 04/27/92 11:29 EDT
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