##### 



Exhibit 99.1
 Financial Statements   Years Ended December 31, 2006, 2005 and 2004




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##### 



Contents
 Report of Independent Auditors
    
    
    1Audited Financial StatementsBalance Sheets
    
    
    2Statements of Income and Comprehensive Income
    
    
    3Statements of Shareholders Equity
    
    
    4Statements of Cash Flows
    
    
    5Notes to Financial Statements
    
    
    6




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1




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##### 



December 31,2006
    
    
    2005AssetsCurrent assets:Cash and cash equivalents
    
    $
    197,857
    
    
    $
    143,547Restricted cash and cash equivalents
    
    
    48,631,168
    
    
    
    41,906,949Accounts receivable:Trade  PDVSA Petroleo, S.A.
    
    
    7,735,557
    
    
    
    14,700,382Other
    
    
    512,432
    
    
    
    154,290Prepaid taxes
    
    
    7,792,229
    
    
    
    1,790,322Prepaid expenses
    
    
    2,760,067
    
    
    
    2,479,277Total current assets
    
    
    67,629,310
    
    
    
    61,174,767Restricted cash and cash equivalents
    
    
    18,354,872
    
    
    
    20,144,541Property, plant and equipment, net
    
    
    234,482,992
    
    
    
    249,696,527Deferred financing costs, net
    
    
    21,534,754
    
    
    
    23,743,447Derivative asset
    
    
    486,583
    
    
    
    808,870Other asset
    
    
    
    
    
    
    309,706Total assets
    
    $
    342,488,511
    
    
    $
    355,877,858Liabilities and shareholders equityCurrent liabilities:Accounts payable:Trade
    
    $
    1,557,200
    
    
    $
    2,296,920Affiliates
    
    
    428,617
    
    
    
    372,438Other
    
    
    582,749
    
    
    
    235,927Taxes payable:Foreign income tax
    
    
    24,220,109
    
    
    
    Value-added tax
    
    
    77,583
    
    
    
    938,299Accrued liabilities
    
    
    309,575
    
    
    
    525,678Notes payable due within one year
    
    
    22,310,000
    
    
    
    22,310,000Accrued interest
    
    
    3,082,152
    
    
    
    3,149,564Deferred revenue
    
    
    521,519
    
    
    
    521,519Total current liabilities
    
    
    53,089,504
    
    
    
    30,350,345Notes payable due after one year
    
    
    140,760,000
    
    
    
    163,070,000Deferred revenue
    
    
    7,692,405
    
    
    
    8,213,924Deferred foreign income taxes
    
    
    26,292,844
    
    
    
    21,066,346Shareholders equity:Common stock, class A, $1 par value, 35,000 shares
authorized, 70 shares issued and outstanding
    
    
    70
    
    
    
    70Common stock, class B, $1 par value, 15,000 shares
authorized, 30 shares issued and outstanding
    
    
    30
    
    
    
    30Additional paid-in capital
    
    
    101,914,330
    
    
    
    101,914,330Retained earnings
    
    
    14,455,631
    
    
    
    32,892,729Accumulated
other comprehensive loss  net loss on cash flow hedge instruments
    
    
    (1,716,303
    )
    
    
    (1,629,916
    )Total shareholders equity
    
    
    114,653,758
    
    
    
    133,177,243Total liabilities and shareholders equity
    
    $
    342,488,511
    
    
    $
    355,877,858
 See accompanying notes.
 2




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##### 



Years Ended December 31,2006
    
    
    2005
    
    
    2004Revenues
    
    $
    93,667,872
    
    
    $
    91,626,354
    
    
    $
    85,767,089Costs and expenses:Operating expenses, exclusive of
items shown separately below
    
    
    20,496,705
    
    
    
    19,619,632
    
    
    
    15,781,494Depreciation
    
    
    15,945,079
    
    
    
    15,966,865
    
    
    
    15,995,101General and administrative expenses
    
    
    2,957,228
    
    
    
    2,494,235
    
    
    
    4,043,891Total costs and expenses
    
    
    39,399,012
    
    
    
    38,080,732
    
    
    
    35,820,486Operating income
    
    
    54,268,860
    
    
    
    53,545,622
    
    
    
    49,946,603Other income (expense):Interest expense
    
    
    (13,985,012
    )
    
    
    (14,164,670
    )
    
    
    (12,281,461
    )Interest income
    
    
    3,145,474
    
    
    
    1,238,517
    
    
    
    528,590Foreign currency transaction loss
    
    
    (1,872
    )
    
    
    (915,059
    )
    
    
    (854,915
    )Other expense, net
    
    
    (373,439
    )
    
    
    (293,023
    )
    
    
    (63,097
    )Total other income (expense)
    
    
    (11,214,849
    )
    
    
    (14,134,235
    )
    
    
    (12,670,883
    )Income before provision for foreign
income taxes
    
    
    43,054,011
    
    
    
    39,411,387
    
    
    
    37,275,720Provision for foreign income taxes
    
    
    29,491,109
    
    
    
    5,822,000
    
    
    
    6,523,000Net income
    
    
    13,562,902
    
    
    
    33,589,387
    
    
    
    30,752,720Other comprehensive loss:Cash flow hedging activities:Losses reclassified to
earnings during year (net of
income tax benefit of $65,075
in 2006 and $7,331 in 2005)
    
    
    126,322
    
    
    
    14,230
    
    
    
    Unrealized mark-to-market
losses during year (net of
income tax benefit of
$109,578 in 2006, $147,989 in
2005 and $510,332 in 2004)
    
    
    (212,709
    )
    
    
    (287,273
    )
    
    
    (990,644
    )Other comprehensive loss
    
    
    (86,387
    )
    
    
    (273,043
    )
    
    
    (990,644
    )Comprehensive income
    
    $
    13,476,515
    
    
    $
    33,316,344
    
    
    $
    29,762,076
 See accompanying notes.
 3




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##### 



AccumulatedAdditional
    
    
    
    
    
    
    OtherCommon Stock
    
    
    Paid-In
    
    
    Retained
    
    
    ComprehensiveClass A
    
    
    Class B
    
    
    Capital
    
    
    Earnings
    
    
    Loss
    
    
    TotalBalance, December 31, 2003
    
    $
    70
    
    
    $
    30
    
    
    $
    101,914,330
    
    
    $
    8,050,622
    
    
    $
    (366,229
    )
    
    $
    109,598,823Net income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    30,752,720
    
    
    
    
    
    
    
    30,752,720Other comprehensive loss
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (990,644
    )
    
    
    (990,644
    )Balance, December 31, 2004
    
    
    70
    
    
    
    30
    
    
    
    101,914,330
    
    
    
    38,803,342
    
    
    
    (1,356,873
    )
    
    
    139,360,899Net income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    33,589,387
    
    
    
    
    
    
    
    33,589,387Other comprehensive loss
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (273,043
    )
    
    
    (273,043
    )Dividends paid
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (39,500,000
    )
    
    
    
    
    
    
    (39,500,000
    )Balance, December 31, 2005
    
    
    70
    
    
    
    30
    
    
    
    101,914,330
    
    
    
    32,892,729
    
    
    
    (1,629,916
    )
    
    
    133,177,243Net income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    13,562,902
    
    
    
    
    
    
    
    13,562,902Other comprehensive loss
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (86,387
    )
    
    
    (86,387
    )Dividends paid
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (32,000,000
    )
    
    
    
    
    
    
    (32,000,000
    )Balance, December 31, 2006
    
    $
    70
    
    
    $
    30
    
    
    $
    101,914,330
    
    
    $
    14,455,631
    
    
    $
    (1,716,303
    )
    
    $
    114,653,758
 See accompanying notes.
 4




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##### 



Years Ended December 31,2006
    
    
    2005
    
    
    2004Operating activitiesNet income
    
    $
    13,562,902
    
    
    $
    33,589,387
    
    
    $
    30,752,720Adjustments to reconcile net income to net cash
provided by operating activities:Depreciation
    
    
    15,945,079
    
    
    
    15,966,865
    
    
    
    15,995,101Amortization of deferred financing costs
    
    
    2,208,693
    
    
    
    2,208,693
    
    
    
    2,212,347Provision for loss on other assets
    
    
    309,706
    
    
    
    
    
    
    
    Provision for deferred foreign income taxes
    
    
    5,271,000
    
    
    
    5,822,003
    
    
    
    6,523,332Changes in operating assets and liabilities:Accounts receivable
    
    
    6,606,683
    
    
    
    1,409,695
    
    
    
    (7,098,318
    )Prepaid taxes
    
    
    (6,001,907
    )
    
    
    184,000
    
    
    
    395,537Prepaid expenses
    
    
    (280,790
    )
    
    
    (1,321,073
    )
    
    
    (158,806
    )Accounts payable
    
    
    (392,898
    )
    
    
    773,694
    
    
    
    (2,754,574
    )Taxes payable
    
    
    23,359,393
    
    
    
    (988,980
    )
    
    
    628,850Receivables/payables with affiliates
    
    
    56,179
    
    
    
    7,157
    
    
    
    (4,556,271
    )Accrued liabilities
    
    
    (216,103
    )
    
    
    (9,305
    )
    
    
    (554,736
    )Accrued interest
    
    
    (67,412
    )
    
    
    167,922
    
    
    
    815,254Deferred revenue
    
    
    (521,519
    )
    
    
    (521,519
    )
    
    
    (521,519
    )Other, including changes in other
non-current assets
    
    
    191,398
    
    
    
    51,567
    
    
    
    (339,711
    )Net cash provided by operating activities
    
    
    60,030,404
    
    
    
    57,340,106
    
    
    
    41,339,206Investing activitiesPurchases of property, plant and equipment
    
    
    (731,544
    )
    
    
    (848,201
    )
    
    
    (173,287
    )Net cash used in investing activities
    
    
    (731,544
    )
    
    
    (848,201
    )
    
    
    (173,287
    )Financing activitiesPayments of notes payable
    
    
    (22,310,000
    )
    
    
    (22,310,000
    )
    
    
    (22,310,000
    )Dividends paid
    
    
    (32,000,000
    )
    
    
    (39,500,000
    )
    
    
    Additions to deferred financing costs
    
    
    
    
    
    
    
    
    
    
    (190,041
    )Changes in restricted cash and cash equivalents
    
    
    (4,934,550
    )
    
    
    5,367,085
    
    
    
    (18,698,887
    )Net cash used in financing activities
    
    
    (59,244,550
    )
    
    
    (56,442,915
    )
    
    
    (41,198,928
    )Net increase (decrease) in cash and cash equivalents
    
    
    54,310
    
    
    
    48,990
    
    
    
    (33,009
    )Cash and cash equivalents, beginning of year
    
    
    143,547
    
    
    
    94,557
    
    
    
    127,566Cash and cash equivalents, end of year
    
    $
    197,857
    
    
    $
    143,547
    
    
    $
    94,557Supplemental Disclosures of Cash Flow InformationForeign income taxes paid
    
    $
    13,691,485
    
    
    $
    1,916,418
    
    
    $
    1,532,899Interest paid
    
    $
    10,903,538
    
    
    $
    11,766,494
    
    
    $
    9,253,859
 See accompanying notes.
 5




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1. Organization and Description of Business
   2. Summary of Significant Accounting Policies
 Reclassifications
  Use of Estimates
  6




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2. Summary of Significant Accounting Policies (continued)
 Cash and Cash Equivalents
  Restricted Cash and Cash Equivalents
 Istituto per i Servizi Assicurativi del Commercio Estero
 Accounts Receivable
  Derivative instruments
  7




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2. Summary of Significant Accounting Policies (continued)
  Property, Plant and Equipment
  Accounting for Asset Retirement
Obligations,
 Revenue Recognition Policy
  8




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2. Summary of Significant Accounting Policies (continued)
  Impairment of Long-lived Assets
  Provision for Severance Benefits
  Foreign Currency
  Income Taxes
  9




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3. Risks and Uncertainties
      10




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4. Related Party Transactions
   2006
    
    
    2005Accounts payable:Williams International Services Company
    
    $
    317,692
    
    
    $
    293,232WilPro Energy Services (El Furrial) Limited
    
    
    110,925
    
    
    
    79,206$
    428,617
    
    
    $
    372,438
 5. Property, Plant and Equipment
  2006
    
    
    2005Natural gas compression plant facilities
    
    $
    316,948,162
    
    
    $
    316,593,960Spare parts
    
    
    816,891
    
    
    
    715,467Vehicles
    
    
    793,972
    
    
    
    643,721Computer software and equipment
    
    
    363,062
    
    
    
    325,199Other
    
    
    138,880
    
    
    
    135,128319,060,967
    
    
    
    318,413,475Accumulated depreciation
    
    
    (84,577,975
    )
    
    
    (68,716,948
    )$
    234,482,992
    
    
    $
    249,696,527
 11




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##### 



6. Notes Payable and Credit Facilities
  2006
    
    
    2005Overseas Private Investment Corporation:6.62% note payable, due in
semi-annual payments plus interest
through September 15, 2016
    
    $
    88,625,000
    
    
    $
    100,750,000ABN AMRO Bank N.V.:Variable rate note payable, due in
semi-annual payments plus interest
through September 15, 2016
    
    
    74,445,000
    
    
    
    84,630,000163,070,000
    
    
    
    185,380,000Notes payable due within one year
    
    
    22,310,000
    
    
    
    22,310,000Notes payable due after one year
    
    $
    140,760,000
    
    
    $
    163,070,000
   2007
    
    $
    22,310,0002008
    
    
    23,000,0002009
    
    
    26,220,0002010
    
    
    26,680,0002011
    
    
    16,100,000
 12




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##### 



6. Notes Payable and Credit Facilities (continued)
   7. Income Taxes
   2006
    
    
    2005Deferred tax liabilities:Property, plant and equipment
    
    $
    26,558,420
    
    
    $
    21,327,000Mark to market on interest rate cap
    
    
    132,600
    
    
    
    Deferred financing costs
    
    
    2,394,244
    
    
    
    2,851,000Total deferred tax liabilities
    
    
    29,085,264
    
    
    
    24,178,000Deferred tax assets:Mark to market on interest rate cap
    
    
    
    
    
    
    141,000Deferred revenue
    
    
    2,792,420
    
    
    
    2,971,000Total deferred tax assets
    
    
    2,792,420
    
    
    
    3,112,000Net deferred tax liabilities
    
    $
    26,292,844
    
    
    $
    21,066,000
 13




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##### 



7. Income Taxes (continued)
  2006
    
    
    2005
    
    
    2004Current
    
    $
    24,220,109
    
    
    $
    
    
    
    $
    Deferred
    
    
    5,271,000
    
    
    
    5,822,000
    
    
    
    6,523,000Total
    
    $
    29,491,109
    
    
    $
    5,822,000
    
    
    $
    6,523,000
  2006
    
    
    2005
    
    
    2004Provision at statutory rate (34%)
    
    $
    14,638,109
    
    
    $
    13,399,000
    
    
    $
    12,674,000Increase (decrease) in taxes
resulting from:Income/expense not subject to tax
    
    
    (857,000
    )
    
    
    (434,000
    )
    
    
    Inflation adjustment
    
    
    3,348,000
    
    
    
    3,801,000
    
    
    
    6,712,000Exchange rate impact on fixed
asset accounting
    
    
    7,378,000
    
    
    
    7,392,000
    
    
    
    6,999,000Tax reserve
    
    
    4,620,000
    
    
    
    
    
    
    
    Return to accrual and other
permanent adjustments
    
    
    364,000
    
    
    
    15,000
    
    
    
    3,463,000Currency losses
    
    
    
    
    
    
    (7,177,000
    )
    
    
    (13,874,000
    )Utilization of business asset
tax (BAT), investment tax credit
(ITC) and net operating loss
(NOL) credits
    
    
    
    
    
    
    (11,174,000
    )
    
    
    (9,451,000
    )Total
    
    $
    29,491,109
    
    
    $
    5,822,000
    
    
    $
    6,523,000
 14




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##### 



8. Financial Instruments
  Cash and cash equivalents and restricted cash and cash equivalents:
 Derivative asset:
 Notes payable:
  2006
    
    
    2005Carrying
    
    
    
    
    
    
    CarryingAsset (liability)
    
    amount
    
    
    Fair value
    
    
    amount
    
    
    Fair valueCash and cash
equivalents
    
    $
    197,857
    
    
    $
    197,857
    
    
    $
    143,547
    
    
    $
    143,547Restricted cash and
cash equivalents
    
    
    66,986,040
    
    
    
    66,986,040
    
    
    
    62,051,490
    
    
    
    62,051,490Derivative asset
    
    
    486,583
    
    
    
    486,583
    
    
    
    808,870
    
    
    
    808,870Notes payable
    
    
    (163,070,000
    )
    
    
    (135,195,488
    )
    
    
    (185,380,000
    )
    
    
    (172,045,697
    )
 15