Williams said it cut about $600 million of debt in the fourth quarter to a total of $14 billion and has current liquidity of $1.6 billion. In a brief preview of its year-end financials last Thursday, the company said it expects recurring operating earnings to fall within its previous guidance for 2002 of $1.4 billion to $1.5 billion from its gas pipeline, exploration and production, and midstream gas and liquids businesses, along with its investment in Williams Energy Partners

Williams said it expects its gas pipeline division, which provides natural gas transportation and storage services through 20,400 miles of systems in the United States, to have recurring segment profit of $685 million to $695 million. Williams said the significant factors affecting the division included the benefit of rate-refund liability reductions, increased gas transportation revenues from new expansion projects, and new transportation rates for Transco and Texas Gas.

From its exploration and production division, which includes natural gas production, development and exploration in the U.S. Rocky Mountains, San Juan Basin and Midcontinent, Williams expects 2002 recurring segment profit of $375 million to $385 million. Positive factors include increased production and higher net realized average prices.

It’s midstream gas and liquids operations, which provides gathering, processing, natural gas liquids fractionation, transportation and storage services, and olefins production, are expected to produce recurring segment profit of $305 million to $320 million for the year. The expected results do not include any segment profit from two pipelines, Mid-America and Seminole, which are reported as discontinued operations following their sale last summer. Williams said the significant factors affecting this sector include higher natural gas liquid margins in the western region and Canada and two new deep water projects in the Gulf of Mexico that began contributing operating profit mid year.

The company plans to issue its full earnings report during the week of Feb. 17 but will provide another update on 2002 recurring earnings in the next few weeks.

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