WILLIAMS <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.