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KERR-McGEE REPORTS LOWER NET INCOME FOR 1991

 KERR-McGEE REPORTS LOWER NET INCOME FOR 1991
 OKLAHOMA CITY, Jan. 30 /PRNewswire/ -- Kerr-McGee Corp.'s


(NYSE: KMG) net income for 1991 was $102 million ($2.10 per share), down 32 percent from $150 million ($3.01 per share) in 1990.
 For the fourth quarter, the company's net income was $35 million (72 cents per share), down 30 percent from $50 million ($1.01 per share) in the same quarter of 1990.
 "Our financial results reflect lower oil and gas prices and the negative impact of the economic downturn on our other businesses," said Frank A. McPherson, chairman and chief executive officer.
 McPherson also noted, "Additions to oil and gas reserves, the key to future production and revenues, were equal to 176 percent of the year's production. In our chemical unit, a major project brought on stream in Western Australia will significantly expand production of titanium dioxide pigment, our most important chemical. At the same time, we have been streamlining our existing operations to improve efficiency and reduce costs."
 Comments on 1991 results
 Key factors in the earnings decline for the year and the fourth quarter were lower operating profits from exploration and production, refining and marketing, and chemical operations. Coal operations achieved about the same level of operating profit in 1991 as in 1990.
 Lower net interest cost had a positive impact on 1991 earnings, while reserves set aside for streamlining and environmental costs were offset by gains on sales of timberland.
 The decline in exploration and production operating profit for 1991 was the result of lower crude oil and natural gas sales prices. The decline was greatest in the fourth quarter of 1991, which is compared with a period of higher crude oil prices during the Middle East conflict. Kerr-McGee's average crude oil sales price was down $10.19 per barrel in the 1991 fourth quarter compared with the same 1990 quarter.
 The decreases in 1991 oil and gas prices were offset in part by higher natural gas sales volumes and lower exploration expenses.
 Lower sales prices for refined products decreased refining and marketing results for the year and quarter from the same l990 periods.
 Chemical operating results for the year and quarter reflect the absence of the soda products operations, which were sold in late 1990. Also, the worldwide economic downturn resulted in lower sales prices for some of the company's chemical products.
 Crude oil, natural gas production
 Kerr-McGee maintained its record 1990 crude oil production rate through 1991. Production averaged 50,400 barrels per day for both 1991 and 1990. For the fourth quarter, the company's average crude oil production was 51,400 barrels, down 2 percent from the 1990 fourth quarter.
 Average daily natural gas deliveries were 10 percent higher for the year and 11 percent higher for the fourth quarter compared with the 1990 periods.
 Cash flow, capital expenditures
 Cash flow from operations was $436 million, compared with $506 million for 1990. For the fourth quarter, cash flow from operations was $115 million, down 22 percent.
 Capital expenditures of $514 million during the year were up slightly from $506 million in 1990.
 As previously announced, capital expenditures, excluding acquisitions, for 1992 are budgeted at $355 million, a decline from 1991 and 1990 expenditures due to the completion of major projects and to acquisitions. Kerr-McGee spent $101 million in 1991 and $44 million in 1990 on acquisitions of oil and gas properties.
 KERR-McGEE CORP.
 OPERATING RESULTS
 (In millions of dollars,
 except per-share amounts) Fourth Quarter Ended Percent
 Dec. 31, Increase
 1991 1990 (Decrease)
 Sales $ 872.1 $1,116.0 (22)
 Net Income before Sale of Soda
 Products Division and
 Discontinued Operations 34.8 50.3 (31)
 Net Loss on Sale of Soda Products
 Division - (37.4) N/A
 Net Income from Discontinued
 Operations - 37.0 N/A
 Net Income 34.8 49.9 (30)
 Net Income per Common Share $ 0.72 $ 1.01 (29)
 Weighted Average Shares
 Outstanding (thousands) 48,229 48,697 (1)
 Net Income Plus Net Noncash
 Operating Items $ 114.7 $ 147.7 (22)
 Cash Provided by Operating
 Activities 79.3 235.1 (66)
 Twelve Months Ended Percent
 Dec. 31, Increase
 1991 1990 (Decrease)
 Sales $3,274.1 $3,682.6 (11)
 Net Income before Sale of Soda
 Products Division and
 Discontinued Operations 101.6 150.3 (32)
 Net Loss on Sale of Soda Products
 Division - (37.4) N/A
 Net Income from Discontinued
 Operations - 37.3 N/A
 Net Income 101.6 150.2 (32)
 Net Income per Common Share $ 2.10 $ 3.01 (30)
 Weighted Average Shares
 Outstanding (thousands) 48,302 49,687 (3)
 Shares Outstanding at
 End of Period (thousands) 48,229 48,453 -
 Net Income Plus Net Noncash
 Operating Items $ 436.0 $ 505.7 (14)
 Cash Provided by Operating
 Activities 189.0 579.5 (67)
 FINANCIAL DATA
 Fourth Quarter Ended Percent
 (In millions of dollars) Dec. 31, Increase
 1991 1990 (Decrease)
 Interest Expense, Net
 of Interest Income $ 16.6 $ 14.6 14
 Nonoperating Expense, Net 5.6 19.2 (71)
 Loss on Sale of Soda Products
 Division - 84.5 N/A
 Income Tax Expense 21.8 57.7 (62)
 Total Tax Expense 44.4 80.6 (45)
 Dividends Paid 18.3 18.0 2
 Capital Expenditures -
 Exploration and production 66.2 51.8 28
 Refining and marketing 19.7 6.7 194
 Chemicals 15.7 55.7 (72)
 Coal 7.4 9.4 (21)
 Other 8.9 7.5 19
 Discontinued operations - 1.3 N/A
 Total Capital Expenditures 117.9 132.4 (11)
 Exploration Expenses -
 Petroleum
 Dry hole costs 1.8 19.1 (91)
 Amortization of undeveloped
 leases 4.5 6.6 (32)
 Other 7.3 7.2 1
 Total 13.6 32.9 (59)
 Minerals and other 0.6 1.4 (57)
 Total Exploration Expenses 14.2 34.3 (59)
 Less - Amortization of oil and
 gas and minerals leases and
 other noncash expenses 4.5 12.2 (63)
 9.7 22.1 (56)
 Total Capital Expenditures
 and Cash Exploration
 Expenses $127.6 $154.5 (17)
 Twelve Months Ended Percent
 Dec. 31, Increase
 1991 1990 (Decrease)
 Interest Expense, Net
 of Interest Income $ 52.2 $ 68.3 (24)
 Nonoperating Expense, Net 49.8 55.0 (9)
 Loss on Sale of Soda Products
 Division - 84.5 N/A
 Income Tax Expense 63.6 117.1 (46)
 Total Tax Expense 146.3 204.0 (28)
 Dividends Paid 71.6 69.3 3
 Capital Expenditures -
 Exploration and production 330.7 254.0 30
 Refining and marketing 53.6 34.7 54
 Chemicals 88.8 173.6 (49)
 Coal 19.8 24.1 (18)
 Other 20.8 15.3 36
 Discontinued operations - 3.9 N/A
 Total Capital Expenditures 513.7 505.6 2
 Exploration Expenses -
 Petroleum
 Dry hole costs 26.9 36.8 (27)
 Amortization of undeveloped
 leases 18.7 21.2 (12)
 Other 30.6 30.3 1
 Total 76.2 88.3 (14)
 Minerals and other 4.9 6.6 (26)
 Total Exploration Expenses 81.1 94.9 (15)
 Less - Amortization of oil and
 gas and minerals leases and
 other noncash expenses 18.8 28.1 (33)
 62.3 66.8 (7)
 Total Capital Expenditures
 and Cash Exploration
 Expenses $576.0 $572.4 1
 BUSINESS SEGMENT INFORMATION
 Fourth Quarter Ended Percent
 (In millions of dollars) Dec. 31, Increase
 1991 1990 (Decrease)
 Sales
 Exploration and production (1) $114.9 $ 134.2 (14)
 Refining and marketing 563.3 765.3 (26)
 Chemicals 111.3 143.0 (22)
 Coal 82.5 73.1 13
 Other 0.1 0.4 (75)
 Total $872.1 $1,116.0 (22)
 Operating Profit (Loss)
 Exploration and production $ 32.8 $ 59.8 (45)
 Refining and marketing 6.0 17.9 (66)
 Chemicals 22.9 29.7 (23)
 Coal 18.2 19.2 (5)
 Other (1.1) (11.6) (91)
 Total $ 78.8 $ 115.0 (31)
 Net Operating Profit (Loss)
 Exploration and production $ 21.4 $ 33.8 (37)
 Refining and marketing 4.2 11.5 (63)
 Chemicals 14.4 21.4 (33)
 Coal 11.3 13.6 (17)
 Other (0.1) (7.7) (99)
 Total 51.2 72.6 (29)
 Net Interest Expense (12.8) (9.7) 32
 Net Nonoperating Expense (3.6) (12.6) (71)
 Net Income Before Sale of Soda
 Products Division and Discontinued
 Operations 34.8 50.3 (31)
 Net Loss on Sale of Soda Products
 Division - (37.4) N/A
 Net Income from Discontinued
 Operations - 37.0 N/A
 Net Income $ 34.8 $ 49.9 (30)
 Twelve Months Ended Percent
 Dec. 31, Increase
 1991 1990 (Decrease)
 Sales
 Exploration and production (1) $ 377.1 $ 387.3 (3)
 Refining and marketing 2,127.3 2,383.4 (11)
 Chemicals 453.8 642.1 (29)
 Coal 315.2 268.3 17
 Other 0.7 1.5 (53)
 Total $3,274.1 $3,682.6 (11)
 Operating Profit (Loss)
 Exploration and production $ 63.4 $ 110.2 (42)
 Refining and marketing 30.9 71.4 (57)
 Chemicals 101.1 122.7 (18)
 Coal 76.5 77.3 (1)
 Other (4.7) (18.0) (74)
 Total $ 267.2 $ 363.6 (27)
 Net Operating Profit (Loss)
 Exploration and production $ 32.4 $ 56.6 (43)
 Refining and marketing 20.2 46.5 (57)
 Chemicals 64.1 82.3 (22)
 Coal 56.9 56.5 1
 Other (2.9) (10.3) (72)
 Total 170.7 231.6 (26)
 Net Interest Expense (36.3) (45.1) (20)
 Net Nonoperating Expense (32.8) (36.2) (9)
 Net Income before Sale of Soda
 Products Division and Discontinued
 Operations 101.6 150.3 (32)
 Net Loss on Sale of Soda Products
 Division - (37.4) N/A
 Net Income from Discontinued
 Operations - 37.3 N/A
 Net Income $ 101.6 $ 150.2 (32)
 (1) Excludes intercompany sales, primarily crude oil sales, of $50.8 and $75.1 million for the fourth quarter of 1991 and 1990, respectively, and $200.1 and $224.9 million for twelve months of 1991 and 1990, respectively.
 OPERATING STATISTICS
 Fourth Quarter Ended Percent
 Dec. 31, Increase
 1991 1990 (Decrease)
 Crude oil & condensate prod.
 (thousands of bbls/day)
 United States 25.0 20.9 20
 Canada 4.6 4.4 5
 North Sea 17.7 22.8 (22)
 Other international 4.1 4.3 (5)
 Total 51.4 52.4 (2)
 Average price of crude oil
 sold (per bbl.)
 United States $19.51 $29.62 (34)
 Canada 17.53 26.73 (34)
 North Sea 20.43 30.80 (34)
 Other international 17.68 26.79 (34)
 Average $19.47 $29.66 (34)
 Natural gas sales (MMCF/day) 326 293 11
 Total refinery runs
 (thousands of bbls/day) 126.4 127.4 (1)
 Refined product sales
 (thousands of bbls/day) 239.5 231.0 4
 Industrial chemical sales (1)
 (thousands of tons) 100 92 9
 Treated forest product sales
 (millions of board feet) 41 44 (7)
 Coal shipped (thousands of tons) 5,550 5,208 7
 Twelve Months Ended Percent
 Dec. 31, Increase
 1991 1990 (Decrease)
 Crude oil & condensate prod.
 (thousands of bbls/day)
 United States 23.0 20.7 11
 Canada 4.6 4.3 7
 North Sea 18.6 21.2 (12)
 Other international 4.2 4.2 -
 Total 50.4 50.4 -
 Average price of crude oil
 sold (per bbl.)
 United States $19.24 $22.22 (13)
 Canada 17.36 20.58 (16)
 North Sea 19.64 21.84 (10)
 Other international 16.71 20.43 (18)
 Average $19.01 $21.77 (13)
 Natural gas sales (MMCF/day) 281 255 10
 Total refinery runs
 (thousands of bbls/day) 129.5 141.8 (9)
 Refined product sales
 (thousands of bbls/day) 220.7 215.3 3
 Industrial chemical sales (1)
 (thousands of tons) 380 334 14
 Treated forest product sales
 (millions of board feet) 202 228 (11)
 Coal shipped (thousands of tons) 21,918 19,805 11
 (1) The 1990 amounts have been restated to exclude the soda
 products operations sold in late 1990.
 -0- 1/30/92
 /CONTACT: Sigrid A. Bowman of Kerr-McGee, 405-270-3992/
 (KMG) CO: Kerr-McGee Corp. ST: Oklahoma IN: OIL SU: ERN


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