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KERR-McGEE REPORTS SIGNIFICANT SECOND-QUARTER EARNINGS INCREASE

 KERR-McGEE REPORTS SIGNIFICANT SECOND-QUARTER EARNINGS INCREASE
 OKLAHOMA CITY, July 28 /PRNewswire/ -- Kerr-McGee Corp.'s (NYSE: KMG) net income for the second quarter of 1992 was $30.3 million (63 cents per share), up from $10.3 million (22 cents per share) for the 1991 second quarter.
 For the first six months, net income before an extraordinary, after-tax charge of $2.4 million was $38.9 million (81 cents per share), compared with $40 million (83 cents per share) for the 1991 period. The first-quarter 1992 extraordinary charge was for the early redemption of 9.75 percent debt.
 Major factors contributing to the improved second-quarter results were higher crude oil and natural gas sales prices and volumes, lower exploration costs, and higher refining and marketing sales volumes and margins, said Frank A. McPherson, chairman and chief executive officer. The 1991 second-quarter results included a $14 million pre- tax charge for the company's streamlining program, he said.
 Second-quarter crude oil sales prices averaged $18.54 per barrel, up 74 cents per barrel from the 1991 quarter. Natural gas sales prices in the second quarter rose 8 percent compared with the like 1991 period.
 Kerr-McGee's production of crude oil averaged 52,400 barrels per day for the quarter, compared with 50,900 barrels per day for the like quarter last year. Average daily natural gas deliveries were 312 million cubic feet per day in the second quarter, up 29 percent from the 1991 period.
 Coal's operating profit was higher in the 1992 second quarter due to lower operating costs. Chemicals reported lower operating profit for the quarter due to reduced margins in the titanium dioxide pigment and ammonium perchlorate operations.
 Sales for the second quarter were $876 million, compared with $784 million for the 1991 quarter. For the first six months, sales were $1.7 billion, up from $1.6 billion in the like period last year.
 Capital expenditures for the second quarter of 1992 were $85 million, compared with $193 million for the like period last year. The 1991 quarter included $100 million of oil and and gas property acquisitions.
 Cash flow from operations was $111 million in the second quarter, up from $84 million for the 1991 period.
 Kerr-McGee is an energy and chemical company with approximately $3.3 billion in annual sales from domestic and international operations.
 KERR-MCGEE CORP.
 OPERATING RESULTS
 (In millions of dollars, except per-share amounts)
 Second Quarter Ended
 June 30, Percent
 Increase
 1992 1991 (Decrease)
 Sales $ 876.2 $ 784.2 12
 Income before Extraordinary Charge 30.3 10.3 194
 Extraordinary Charge, Net of
 Income Taxes - - N/A
 Net Income 30.3 10.3 194
 Income per Common Share
 Income before Extraordinary Charge 0.63 0.22 186
 Extraordinary Charge - - N/A
 Net Income $0.63 $0.22 186
 Weighted Average Shares
 Outstanding (thousands) 48,273 48,286 -
 Shares Outstanding at End of Period
 (thousands)
 Net Income Plus Net Noncash
 Operating Items $ 111.0 $ 84.3 32
 Cash Provided by Operating
 Activities 106.0 34.3 209
 Six Months Ended
 June 30, Percent
 Increase
 1992 1991 (Decrease)
 Sales $1,658.9 $1,569.8 6
 Income before Extraordinary Charge 38.9 40.0 (3)
 Extraordinary Charge, Net of
 Income Taxes (2.4) - N/A
 Net Income 36.5 40.0 (9)
 Income per Common Share
 Income before Extraordinary Charge 0.81 0.83 (2)
 Extraordinary Charge (0.05) - N/A
 Net Income $0.76 $0.83 (8)
 Weighted Average Shares
 Outstanding (thousands) 48,270 48,377 -
 Shares Outstanding at End of Period
 (thousands) 48,275 48,226 -
 Net Income Plus Net Noncash
 Operating Items $ 198.2 $ 194.6 2
 Cash Provided by Operating
 Activities 128.5 81.1 58
 FINANCIAL DATA
 (In millions of dollars)
 Second Quarter Ended
 June 30, Percent
 Increase
 1992 1991 (Decrease)
 Interest Expense, Net of
 Interest Income $16.1 $ 11.9 35
 Nonoperating Expense, Net 18.5 19.3 (4)
 Income Tax Expense 20.4 6.5 214
 Total Tax Expense 40.4 26.7 51
 Dividends Paid 18.3 17.5 5
 Capital Expenditures -
 Exploration and production 54.9 147.1 (63)
 Refining and marketing 11.1 11.4 (3)
 Chemicals 8.2 27.1 (70)
 Coal 9.6 2.1 357
 Other 1.5 4.9 (69)
 Total Capital Expenditures 85.3 192.6 (56)
 Exploration Expenses -
 Petroleum
 Dry hole costs 0.4 14.5 (97)
 Amortization of undeveloped
 leases 4.6 4.7 (2)
 Other 5.4 8.6 (37)
 Total 10.4 27.8 (63)
 Minerals and other 0.8 1.8 (56)
 Total Exploration Expenses 11.2 29.6 (62)
 Less - Amortization of oil and
 gas and minerals leases and
 other noncash expenses 4.6 4.8 (4)
 6.6 24.8 (73)
 Total Capital Expenditures
 and Cash Exploration Expenses $91.9 $217.4 (58)
 Six Months Ended
 June 30, Percent
 Increase
 1992 1991 (Decrease)
 Interest Expense, Net of Interest
 Income $ 32.2 $ 19.5 65
 Nonoperating Expense, Net 26.5 29.9 (11)
 Income Tax Expense 24.2 25.1 (4)
 Total Tax Expense 64.9 66.2 (2)
 Dividends Paid 36.7 35.0 5
 Capital Expenditures -
 Exploration and production 108.2 206.1 (48)
 Refining and marketing 24.3 19.5 25
 Chemicals 16.6 55.4 (70)
 Coal 34.2 6.7 410
 Other 8.1 6.7 21
 Total Capital Expenditures 191.4 294.4 (35)
 Exploration Expenses -
 Petroleum
 Dry hole costs 0.8 20.6 (96)
 Amortization of undeveloped
 leases 9.1 9.5 (4)
 Other 11.8 16.0 (26)
 Total 21.7 46.1 (53)
 Minerals and other 1.7 2.7 (37)
 Total Exploration Expenses 23.4 48.8 (52)
 Less - Amortization of oil and
 gas and minerals leases and
 other noncash expenses 9.1 9.6 (5)
 14.3 39.2 (64)
 Total Capital Expenditures
 and Cash Exploration Expenses $205.7 $333.6 (38)
 BUSINESS SEGMENT INFORMATION
 (In millions of dollars)
 Second Quarter Ended
 June 30, Percent
 Increase
 1992 1991 (Decrease)
 Sales
 Exploration and production (1) $100.8 $ 82.5 22
 Refining and marketing 574.4 501.7 14
 Chemicals 130.3 125.9 3
 Coal 70.7 73.9 (4)
 Other - 0.2 N/A
 Total $876.2 $784.2 12
 Operating Profit (Loss)
 Exploration and production $ 30.3 $ (2.7) N/A
 Refining and marketing 13.6 3.9 249
 Chemicals 19.2 29.8 (36)
 Coal 20.0 18.2 10
 Other 2.2 (1.2) N/A
 Total $ 85.3 $ 48.0 78
 Net Operating Profit (Loss)
 Exploration and production $ 17.3 $ (4.7) N/A
 Refining and marketing 9.1 2.6 250
 Chemicals 10.8 19.7 (45)
 Coal 14.5 14.1 3
 Other 1.5 (0.8) N/A
 Total 53.2 30.9 72
 Net Interest Expense (10.6) (7.9) 34
 Net Nonoperating Expense (12.3) (12.7) (3)
 Income before Extraordinary Charge 30.3 10.3 194
 Extraordinary Charge, Net of
 Income Taxes - - N/A
 Net Income $ 30.3 $ 10.3 194
 Six Months Ended
 June 30, Percent
 Increase
 1992 1991 (Decrease)
 Sales
 Exploration and production (1) $ 188.4 $ 172.8 9
 Refining and marketing 1,078.9 1,013.6 6
 Chemicals 243.9 230.1 6
 Coal 147.5 152.7 (3)
 Other 0.2 0.6 (67)
 Total $1,658.9 $1,569.8 6
 Operating Profit (Loss)
 Exploration and production $ 42.0 $ 15.9 164
 Refining and marketing 5.9 9.4 (37)
 Chemicals 35.1 52.0 (33)
 Coal 38.2 39.6 (4)
 Other 2.1 (2.4) N/A
 Total $ 123.3 $ 114.5 8
 Net Operating Profit (Loss)
 Exploration and production $ 22.8 $ 5.7 300
 Refining and marketing 3.8 6.0 (37)
 Chemicals 20.2 32.4 (38)
 Coal 28.0 30.6 (8)
 Other 1.4 (2.1) N/A
 Total 76.2 72.6 5
 Net Interest Expense (19.8) (12.9) 53
 Net Nonoperating Expense (17.5) (19.7) (11)
 Income before Extraordinary Charge 38.9 40.0 (3)
 Extraordinary Charge, Net of
 Income Taxes (2.4) - N/A
 Net Income $ 36.5 $ 40.0 (9)
 (1) Excludes intercompany sales, primarily crude oil sales, of
 $56.5 and $48.8 for the second quarter of 1992 and 1991,
 respectively, and $100.2 and $101.9 for the first six months
 of 1992 and 1991, respectively.
 OPERATING STATISTICS
 Second Quarter Ended
 June 30, Percent
 Increase
 1992 1991 (Decrease)
 Crude oil & condensate prod.
 (thousands of bbls/day)
 United States 26.4 22.8 16
 Canada 4.7 4.6 2
 North Sea 16.8 19.2 (13)
 Other international 4.5 4.3 5
 Total 52.4 50.9 3
 Average price of crude oil sold
 (per bbl.)
 United States $18.63 $17.91 4
 Canada 16.36 16.84 (3)
 North Sea 19.05 18.32 4
 Other international 17.87 15.82 13
 Average $18.54 $17.80 4
 Natural gas sales (MMCF/day) 312 242 29
 Total refinery runs
 (thousands of bbls/day) 141.2 145.8 (3)
 Refined product sales
 (thousands of bbls/day) 247.0 210.6 17
 Industrial chemical sales
 (thousands of tons) 104 118 (12)
 Treated forest product sales
 (millions of board feet) 78 61 28
 Coal shipped from company mines
 (thousands of tons) 4,742 4,829 (2)
 Six Months Ended
 June 30, Percent
 Increase
 1992 1991 (Decrease)
 Crude oil & condensate prod.
 (thousands of bbls/day)
 United States 25.3 21.8 16
 Canada 5.0 4.7 6
 North Sea 16.9 19.1 (12)
 Other international 4.4 4.2 5
 Total 51.6 49.8 4
 Average price of crude oil sold
 (per bbl.)
 United States $17.72 $19.16 (8)
 Canada 15.53 17.25 (10)
 North Sea 18.45 19.63 (6)
 Other international 16.89 15.98 6
 Average $17.70 $18.90 (6)
 Natural gas sales (MMCF/day) 316 260 22
 Total refinery runs
 (thousands of bbls/day) 133.4 124.4 7
 Refined product sales
 (thousands of bbls/day) 246.2 207.8 18
 Industrial chemical sales
 (thousands of tons) 205 193 6
 Treated forest product sales
 (millions of board feet) 125 108 16
 Coal shipped from company mines
 (thousands of tons) 9,978 10,331 (3)
 -0- 7/28/92
 /CONTACT: Sigrid A. Bowman of Kerr-McGee, 405-270-3992/
 (KMG) CO: Kerr-McGee Corp. ST: Oklahoma IN: OIL SU: ERN


BB-MC -- DV006 -- 4071 07/28/92 11:58 EDT
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