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KERR-MCGEE REPORTS 1992 RESULTS

 OKLAHOMA CITY, Feb. 1 /PRNewswire/ -- Kerr-McGee Corp.'s (NYSE: KMG) 1992 net income before special non-cash charges and an extraordinary charge was $91 million, or $1.89 per share, down 10 percent from $102 million, or $2.10 per share, in 1991.
 As previously announced, Kerr-McGee recorded in 1992 a cumulative non-cash, after-tax charge of $57 million for the adoption of two new accounting changes and a non-cash, after-tax charge of $130 million for future environmental expenditures. In addition, Kerr-McGee incurred an extraordinary, after-tax charge of $5 million in 1992 for the early redemption of 9.75 percent debt.
 Including the special and extraordinary charges, Kerr-McGee incurred a net loss of $101 million in 1992, or $2.08 per share, compared with net income of $102 million, or $2.10 per share, in 1991.
 The company's fourth-quarter net income, excluding the special charges, was $27 million, or 56 cents per share, compared with $35 million, or 72 cents per share, in the like 1991 period. Including the special charges, the company incurred a net loss of $102 million, or $2.12 per share, in the 1992 fourth quarter.
 Sales of $3.4 billion for the year were up 3 percent from 1991, while sales of $865 million for the 1992 fourth quarter were down slightly from the 1991 period.
 Comments on 1992 results
 "Kerr-McGee experienced mixed operating results for 1992, compared with 1991," said Frank A. McPherson, chairman and chief executive officer. "Significantly higher operating profit from exploration and production could not completely offset a refining and marketing operating loss and lower operating profit from chemicals.
 "Our exploration and production operations turned in a strong performance during 1992 and made the largest contribution to the company's operating profit," McPherson said. "The unit benefited primarily from lower exploration costs as well as higher natural gas deliveries and sales prices, while crude oil sales prices declined from 1991."
 The coal unit also had a good year, maintaining the 1991 level of operating profit despite a 6 percent decline in 1992 shipments, McPherson noted.
 The chemical unit's decline in operating profit was due primarily to lower titanium dioxide pigment sales prices and higher unit costs for ammonium perchlorate.
 Refining and marketing recorded an operating loss in 1992, compared with an operating profit of $31 million in 1991. The operating loss was the result of negative margins, particularly in the fourth quarter, due to product prices declining faster than feedstock costs.
 Comments on fourth-quarter results
 Exploration and production operating profit was lower in the fourth quarter, compared with the like 1991 period, due to lower natural gas deliveries, lower average oil sales prices and higher exploration costs, partly offset by higher natural gas sales prices.
 Coal's fourth-quarter operating profit improved compared with the 1991 fourth quarter due to higher average sales prices. The chemical unit had higher operating profit in the fourth quarter than in the previous year's period. Increased domestic pigment sales volumes and lower costs more than offset lower sales prices.
 Oil, natural gas production and prices
 Average daily oil production of 50,500 barrels, up slightly from last year, was the highest in Kerr-McGee's history. For the fourth quarter, the company's average oil production was 49,800 barrels per day, down 3 percent from the 1991 fourth quarter. Crude oil sales prices averaged $18.11 for the year, a 5 percent decline from 1991. The average price for the fourth quarter was $17.96, down 8 percent from the 1991 period.
 Average daily natural gas deliveries were 296 million cubic feet for the year, compared with 281 million cubic feet for 1991. For the 1992 fourth quarter, average daily natural gas deliveries were 277 million cubic feet, down 15 percent from the 1991 period. The average natural gas sales price increased 8 percent for the year and 22 percent for the fourth quarter from the like 1991 periods.
 Cash flow, capital expenditures
 Cash flow from operations was $421 million for the year, compared with $436 million for 1991. Fourth-quarter 1992 cash flow from operations was $118 million, up from $115 million for the 1991 period.
 Capital expenditures were $415 million for the year and $138 million for the fourth quarter, compared with $514 million for 1991 and $118 million for last year's fourth quarter. As previously announced, capital expenditures for 1993 are expected to approximate the 1992 level.
 Accounting changes
 The Jan. 1, 1992, adoption of the mandated accounting change covering the projected cost of retiree medical and life insurance benefits resulted in a non-cash, after-tax charge of $64 million applicable to prior years. Application of the accounting change in 1992 resulted in an after-tax charge of $3 million.
 Similarly, the adoption of the mandated deferred income tax accounting change resulted in a non-cash, after-tax charge of $6 million applicable to prior years and after-tax income of $16 million applicable to 1992. Adoption of these accounting changes will not affect the company's cash flow.
 KERR-MCGEE CORP.
 OPERATING RESULTS AND FINANCIAL DATA
 (In millions of dollars, except per-share amounts)
 Fourth Quarter Ended Percent
 Dec. 31, Increase
 1992 1991 (Decrease)
 Sales $ 865.1 $ 872.1 (1)
 Income before Environmental
 Provision, Extraordinary
 Charge, and Accounting
 Changes 26.9 34.8 (23)
 Environmental Provision,
 Net of Income Taxes (130.0) --- NM
 Effect of Accounting Changes
 for 1992 3.0 --- NM
 Income (Loss) before
 Extraordinary Charge and Prior
 Years Accounting Changes (100.1) 34.8 NM
 Extraordinary Charge, Net of
 Income Taxes (2.3) --- NM
 Cumulative Effect on Prior Years
 of Accounting Changes,
 Net of Income Taxes --- --- NM
 Net Income (Loss) $ (102.4) $ 34.8 NM
 Income (Loss) per Common Share -
 Income before Environmental
 Provision, Extraordinary
 Charge, and Accounting
 Changes $ 0.56 $ 0.72 (22)
 Environmental Provision,
 Net of Income Taxes (2.69) --- NM
 Effect of Accounting Changes
 for 1992 0.06 --- NM
 Income (Loss) before
 Extraordinary Charge and Prior
 Years Accounting Changes (2.07) 0.72 NM
 Extraordinary Charge, Net of
 Income Taxes (0.05) --- NM
 Cumulative Effect on Prior Years
 of Accounting Changes, Net of
 Income Taxes --- --- NM
 Net Income (Loss) $ (2.12) $ 0.72 NM
 Weighted Average Shares
 Outstanding (thousands) 48,283 48,229 ---
 Net Income Plus Net Noncash
 Operating Items $ 118.3 $ 114.7 3
 Cash Provided by Operating
 Activities 67.3 84.1 (20)
 Interest Expense, Net
 of Interest Income 11.3 16.6 (32)
 Nonoperating Expense, Net (1) 212.1 5.6 NM
 Income Tax Expense (Benefit) (68.2) 21.8 NM
 Total Tax Expense (Benefit) (48.2) 44.4 NM
 Dividends Paid 18.4 18.3 1
 Capital Expenditures -
 Exploration and production 90.4 66.2 37
 Refining and marketing 7.6 19.7 (61)
 Chemicals 10.1 15.7 (36)
 Coal 29.4 7.4 NM
 Other 0.7 8.9 (92)
 Total Capital Expenditures 138.2 117.9 17
 Exploration Expenses -
 Petroleum
 Dry hole costs 2.6 1.8 44
 Amortization of undeveloped
 leases 4.2 4.5 (7)
 Other 9.0 7.3 23
 Total 15.8 13.6 16
 Minerals and other 0.3 0.6 (50)
 Total Exploration
 Expenses 16.1 14.2 13
 Less - Amortization of oil
 and gas and minerals leases
 and other noncash expenses 4.2 4.5 (7)
 11.9 9.7 23
 Total Capital Expenditures
 and Cash Exploration

 Expenses $ 150.1 $ 127.6 18
 Twelve Months Ended Percent
 Dec. 31, Increase
 1992 1991 (Decrease)
 Sales $3,381.5 $3,274.1 3
 Income Before Environmental
 Provision, Extraordinary
 Charge, and Accounting
 Changes 91.2 101.6 (10)
 Environmental Provision,
 Net of Income Taxes (130.0) --- NM
 Effect of Accounting Changes
 for 1992 12.8 --- NM
 Income (Loss) Before
 Extraordinary Charge and Prior
 Years Accounting Changes (26.0) 101.6 NM
 Extraordinary Charge, Net of
 Income Taxes (4.7) --- NM
 Cumulative Effect on Prior Years
 of Accounting Changes,
 Net of Income Taxes (69.8) --- NM
 Net Income (Loss) $ (100.5) $ 101.6 NM
 Income per Common Share -
 Income before Environmental
 Provision, Extraordinary Charge,
 and Accounting Changes $ 1.89 $ 2.10 (10)
 Environmental Provision,
 Net of Income Taxes (2.69) --- NM
 Effect of Accounting Changes
 for 1992 0.27 --- NM
 Income (Loss) before
 Extraordinary Charge and Prior
 Years Accounting Changes (0.53) 2.10 NM
 Extraordinary Charge, Net of
 Income Taxes (0.10) --- NM
 Cumulative Effect on Prior Years
 of Accounting Changes, Net of
 Income Taxes (1.45) --- NM
 Net Income (Loss) $ (2.08) $ 2.10 NM
 Weighted Average Shares
 Outstanding (thousands) 48,276 48,302 ---
 Shares Outstanding at End of
 Period (thousands) 48,284 48,229 ---
 Net Income Plus Net Noncash
 Operating Items $ 420.8 $ 436.0 (3)
 Cash Provided by Operating
 Activities 277.3 193.8 43
 Interest Expense, Net
 of Interest Income 56.5 52.2 8
 Nonoperating Expense, Net (1) 236.3 49.8 NM
 Income Tax Expense (Benefit) (38.2) 63.6 NM
 Total Tax Expense 45.5 146.3 (69)
 Dividends Paid 73.4 71.6 3
 Capital Expenditures -
 Exploration and production 264.3 330.7 (20)
 Refining and marketing 39.6 53.6 (26)
 Chemicals 32.7 88.8 (63)
 Coal 68.7 19.8 NM
 Other 9.2 20.8 (56)
 Total Capital Expenditures 414.5 513.7 (19)
 Exploration Expenses -
 Petroleum
 Dry hole costs 4.6 26.9 (83)
 Amortization of
 undeveloped leases 17.9 18.7 (4)
 Other 29.0 30.6 (5)
 Total 51.5 76.2 (32)
 Minerals and other 3.1 4.9 (37)
 Total Exploration
 Expenses 54.6 81.1 (33)
 Less - Amortization of oil
 and gas and minerals leases
 and other noncash expenses 17.9 18.8 (5)
 36.7 62.3 (41)
 Total Capital Expenditures
 and Cash Exploration
 Expenses $ 451.2 $ 576.0 (22)
 (1) Includes 1992 environmental provision of $130 million
 ($205 million before tax)
 BUSINESS SEGMENT INFORMATION
 (In millions of dollars)
 Fourth Quarter Ended Percent
 Dec. 31, Increase
 1992 1991 (Decrease)
 Sales
 Exploration and
 production (1) $ 100.6 $ 114.9 (12)
 Refining and marketing 543.7 563.3 (3)
 Chemicals 140.9 111.3 27
 Coal 79.7 82.5 (3)
 Other 0.2 0.1 100
 Total $ 865.1 $ 872.1 (1)
 Operating Profit (Loss)
 Exploration and production $ 26.9 $ 32.8 (18)
 Refining and marketing (20.1) 6.0 NM
 Chemicals 25.8 22.9 13
 Coal 20.2 18.2 11
 Other 2.3 (1.1) NM
 Total $ 55.1 $ 78.8 (30)
 Net Operating Profit (Loss)
 Exploration and production $ 16.9 $ 21.4 (21)
 Refining and marketing (12.7) 4.2 NM
 Chemicals 16.1 14.4 12
 Coal 11.1 11.3 (2)
 Other 1.3 (0.1) NM
 Total 32.7 51.2 (36)
 Net Interest Expense (8.5) (12.8) (34)
 Net Nonoperating Expense (2) (124.3) (3.6) NM
 Income (Loss) Before Extraordinary
 Charge and Accounting
 Changes (100.1) 34.8 NM
 Extraordinary Charge, Net of
 Income Taxes (2.3) --- NM
 Cumulative Effect on Prior Years
 of Accounting Changes,
 Net of Income Taxes --- --- NM
 Net Income (Loss) $ (102.4) $ 34.8 NM
 Twelve Months Ended Percent
 Dec. 31, Increase
 1992 1991 (Decrease)
 Sales
 Exploration and
 production (1) $ 383.5 $ 377.1 2
 Refining and marketing 2,175.3 2,127.3 2
 Chemicals 514.7 453.8 13
 Coal 307.3 315.2 (3)
 Other 0.7 0.7 ---
 Total $3,381.5 $3,274.1 3
 Operating Profit (Loss)
 Exploration and production $ 90.3 $ 63.4 42
 Refining and marketing (20.6) 30.9 NM
 Chemicals 78.8 101.1 (22)
 Coal 76.6 76.5 ---
 Other 3.5 (4.7) NM
 Total $ 228.6 $ 267.2 (14)
 Net Operating Profit (Loss)
 Exploration and production $ 52.8 $ 32.4 63
 Refining and marketing (13.0) 20.2 NM
 Chemicals 50.3 64.1 (22)
 Coal 53.3 56.9 (6)
 Other 2.2 (2.9) NM
 Total 145.6 170.7 (15)
 Net Interest Expense (33.5) (36.3) (8)
 Net Nonoperating Expense (2) (138.1) (32.8) NM
 Income (Loss) before Extraordinary
 Charge and Accounting
 Changes (26.0) 101.6 NM
 Extraordinary Charge, Net of
 Income Taxes (4.7) --- NM
 Cumulative Effect on Prior Years
 of Accounting Changes,
 Net of Income Taxes (69.8) --- NM
 Net Income (Loss) $ (100.5) $ 101.6 NM
 (1) Excludes intercompany sales, primarily crude oil sales,
 of $54.1 and $50.8 for the fourth quarter of 1992 and
 1991, respectively, and $211.5 and $200.1 for twelve
 months of 1992 and 1991, respectively.
 (2) Includes 1992 environmental provision of $130 million
 ($205 million before tax).
 OPERATING STATISTICS
 Fourth Quarter Ended Percent
 Dec. 31, Increase
 1992 1991 (Decrease)
 Crude oil & condensate prod.
 (thousands of bbls/day)
 United States 25.5 25.0 2
 Canada 4.4 4.6 (4)
 North Sea 15.4 17.7 (13)
 Other international 4.5 4.1 10
 Total 49.8 51.4 (3)
 Average price of crude oil
 sold (per bbl.)
 United States $ 17.95 $ 19.51 (8)
 Canada 16.36 17.53 (7)
 North Sea 18.64 20.43 (9)
 Other international 17.41 17.68 (2)
 Average $ 17.96 $ 19.47 (8)
 Natural gas sales (MMCF/day) 277 326 (15)
 Average price of natural gas
 sold (per MCF) $ 2.02 $ 1.65 22
 Total refinery runs
 (thousands of bbls/day) 139.8 126.4 11
 Refined product sales
 (thousands of bbls/day) 244.9 239.5 2
 Industrial chemical sales (1)
 (thousands of tons) 111 100 11
 Treated forest product sales
 (millions of board feet) 46 41 12
 Coal shipped from company
 mines (thousands of tons) 5,126 5,550 (8)
 Twelve Months Ended Percent
 Dec. 31, Increase
 1992 1991 (Decrease)
 Crude oil & condensate prod.
 (thousands of bbls/day)
 United States 25.5 23.0 11
 Canada 4.5 4.6 (2)
 North Sea 16.0 18.6 (14)
 Other international 4.5 4.2 7
 Total 50.5 50.4 ---
 Average price of crude oil
 sold (per bbl.)
 United States $ 18.17 $ 19.24 (6)
 Canada 16.24 17.36 (6)
 North Sea 18.71 19.64 (5)
 Other international 17.44 16.71 4
 Average $ 18.11 $ 19.01 (5)
 Natural gas sales (MMCF/day) 296 281 5
 Average price of natural gas
 sold (per MCF) $ 1.56 $ 1.44 8
 Total refinery runs
 (thousands of bbls/day) 135.4 129.5 5
 Refined product sales
 (thousands of bbls/day) 242.8 220.7 10
 Industrial chemical sales
 (thousands of tons) 408 380 7
 Treated forest product sales
 (millions of board feet) 237 202 17
 Coal shipped from company
 mines (thousands of tons) 20,687 21,918 (6)
 -0- 2/1/93
 /CONTACT: Sigrid A. Bowman of Kerr-McGee, 405-270-3992/
 (KMG)


CO: Kerr-McGee Corp. ST: Oklahoma IN: OIL SU: ERN

BB -- DV005 -- 1567 02/01/93 17:41 EST
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