WILLIAMS &lt;WMB> SEES FLAT PIPELINE VOLUMES IN 1987
  Williams Cos said it expected oil and
  fertilizer transportation volumes to be flat in 1987 but said
  operating profits from the pipeline unit should improve from
  49.4 mln dlrs earned last year when a seven mln dlr special
  charge was incurred.
      Williams Pipeline Co took the charge against earnings in
  1986 for the removal of more than 500 miles of old pipeline
  from service and for casualty losses. Companywide, Williams had
  a net loss of 134 mln dlrs on total revenues of 1.85 billion
  dlrs, a decline from profits of 32 mln dlrs on sales of 2.46
  billion in 1985.
      In its annual report, Williams said its Northwest Pipeline
  Corp and Williams Natural Gas Co had natural gas costs that are
  among the lowest in the nation, averaging 2.04 dlrs and 2.07
  dlrs per mcf, respectively, last year. Total natural gas
  reserves for both units declined to 10,010 billion cubic feet
  in 1986 from 11,334 billion cubic feet the previous year.
      The company said its Williams Natural Gas unit, which has
  less take-or-pay exposure than most major pipelines, should
  show improvement in its 1987 operating results because of
  changes tariff and federal tax rates.
      The company's gas marketing business is expected to have
  somewhat lower earnings in 1987 because of competition in its
  operating region, the annual report said. The gas marketing
  unit earned 26.0 mln dlrs on sales of 285.6 mln dlrs last year.
      Williams also said it expected a substantial decline in its
  debt to equity ratio this year because of more than 250 mln
  dlrs received in cash from the sale of Agrico Chemical Co and
  proceeds from the sale and leaseback of Williams
  Telecommunications Co. The telecommunications business, a
  2,000-mile fiber optic system for long distance use, will not
  be profitable until late 1988, Williams said.
  

