What is the main financial event reported in this 8-K?

The main financial event is the completion of the sale of Williams' Kern River interstate natural gas pipeline business to a unit of MidAmerican Energy Holdings Company for $450 million in cash and the assumption of $510 million in debt. This significant transaction is reflected in the company's restated financial statements, with the Kern River operations classified as discontinued operations.

How does the sale of the Kern River pipeline impact Williams' financial reporting?

The sale leads to the Kern River Gas Transmission Company being reported as discontinued operations. This means its results are segregated from continuing operations in the restated financial statements for the three years ended December 31, 2001, providing a clearer view of the company's ongoing business performance.

Are there any other significant changes in operational structure or reporting mentioned?

Yes, the report notes reclassifications of certain operations subsequent to the March 7, 2002, 10-K filing. These include Williams Energy Partners acquiring Williams Pipe Line, and the transfer of management responsibility for an Argentina oil and gas exploration company. These changes have necessitated restatements of segment information.

What historical financial information is being restated?

The company has restated its Management's Discussion and Analysis (MD&A), Consolidated Financial Statements, Selected Financial Data, and Valuation and Qualifying Accounts for the three years ended December 31, 2001. This restatement is primarily to reflect the Kern River business as discontinued operations and to account for the other operational reclassifications.

WMB 8-K SEC Disclosure — May 28, 2002

Summary

This Current Report (8-K) filed by Williams Companies, Inc. (WMB) on May 27, 2002, primarily details the completion of the sale of its Kern River interstate natural gas pipeline business. The sale, which closed on March 27, 2002, generated $450 million in cash and involved the assumption of $510 million in debt by the buyer, a unit of MidAmerican Energy Holdings Company. This transaction has resulted in Kern River Gas Transmission Company being classified as discontinued operations in the company's restated financial statements and related disclosures for the three years ended December 31, 2001. The filing also announces certain operational reclassifications made subsequent to the filing of the company's Annual Report on Form 10-K on March 7, 2002. These include the acquisition of Williams Pipe Line by Williams Energy Partners and the transfer of management for an Argentina oil and gas exploration company. These changes have led to restated segment information for Petroleum Services, Williams Energy Partners, Exploration & Production, and International segments.

Key Highlights

1Completion of the sale of the Kern River interstate natural gas pipeline business for $450 million in cash and assumption of $510 million in debt.
2Kern River Gas Transmission Company is now treated as discontinued operations in restated financial statements.
3Restated financial statements and MD&A are provided for the three years ended December 31, 2001.
4Operational reclassification: Williams Energy Partners acquired Williams Pipe Line.
5Management transfer of an Argentina oil and gas exploration company from International to Exploration & Production segment.
6Restatement of segment information for Petroleum Services, Williams Energy Partners, Exploration & Production, and International segments to reflect changes.
7Filing includes computation of earnings to fixed charges ratio and other supporting financial exhibits, all marked as restated.

WILLIAMS COMPANIES, INC. 8-K Report (May 28, 2002)

Summary

Key Highlights

Frequently Asked Questions