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KERR-MCGEE'S SECOND-QUARTER NET INCOME UP SLIGHTLY

    OKLAHOMA CITY, July 26 /PRNewswire/ -- Kerr-McGee Corp.'s (NYSE: KMG) net income for the second quarter of 1993 was $34 million (70 cents per share), up slightly from last year's restated second- quarter net income of $33 million (68 cents per share).
    For the first six months, net income was $58 million ($1.20 per share), up 29 percent from the 1992 period's restated net income of $45 million (94 cents per share).
    The restated amounts for the first six months of 1992 do not include the extraordinary charge for the early retirement of 9.75 percent debt and prior years' cumulative effect of accounting changes adopted effective Jan. 1, 1992.  After these adjustments, Kerr-McGee had a loss of $27 million (56 cents per share) for the first six months of 1992.
    Sales for the second quarter were $846 million, down from $876 million for the previous year's second quarter.  For the first six months, sales were $1.6 billion, down slightly from the like 1992 period.
    Comments on results
    Major factors contributing to the improved second-quarter results, compared with the like 1992 period, were higher operating profit for all business units except refining and marketing, lower interest expense, and 1992 foreign currency losses, said Frank A. McPherson, Kerr-McGee chairman and chief executive officer.
    Exploration and production operating profit for the second quarter was up due to increased natural gas sales prices and lower operating costs, partially offset by lower crude oil sales volumes and prices, lower natural gas sales volumes, and higher exploration expenses.
    Coal's operating profit was higher due to higher sales volumes. Operating profit from chemicals was up due to higher sales volumes and higher prices for certain products.
    Refining and marketing results were down significantly from the 1992 second quarter due to lower sales volumes and reduced margins as sales prices declined faster than the cost of products.
    Oil and natural gas production, prices
    Natural gas sales prices averaged $1.98 per thousand cubic feet in the second quarter and $1.86 for the six months, up from last year's $1.41 in the second quarter and $1.33 in the first half.
    Average daily natural gas deliveries were 289 million cubic feet for the second quarter and 291 million cubic feet for the six months, down about 8 percent from the like 1992 periods.
    Crude oil sales prices for the second quarter averaged $16.88 per barrel, compared with $18.54 for the 1992 period.  For the six months, the average crude oil sales price was $16.92 per barrel, 78 cents lower than for the like 1992 period.
    Kerr-McGee's daily production of crude oil averaged 50,800 barrels for the second quarter and 50,900 barrels for the first six months, slightly below the average production for the like 1992 periods.
    Cash flow, capital expenditures
    Cash flow from operations was $123 million for the second quarter and $229 million for the first six months, up from $111 million and $198 million for the like 1992 periods.
    Capital expenditures for the second quarter were $105 million, up from $85 million for the 1992 second quarter.  For the first six months, capital expenditures were $225 million, compared with $191 million for the like 1992 period.  The increases were primarily for continuing investments in North Sea crude oil and natural gas development projects.
    Three large North Sea fields are scheduled to start production in the last quarter of 1993.  Kerr-McGee's share of oil production from these fields -- Gryphon, East Brae and Scott -- is projected at 27,000 barrels per day in 1994.
                             KERR-MCGEE CORP.
                   OPERATING RESULTS AND FINANCIAL DATA
            (In millions of dollars, except per-share amounts)
                                       Second Quarter Ended
                                             June 30,         Percent
                                                              Increase
                                          1993     1992(1)   (Decrease)
    Sales                              $  845.8  $  876.2       (3)
    Income before Extraordinary
      Charge and Cumulative
       Effect on Prior Years of
        Accounting Changes                 33.7      32.5        4
    Extraordinary Charge,
      Net of Income Taxes                 ---         ---       ---
    Cumulative Effect on Prior
      Years of Accounting
       Changes, Net of Income
        Taxes                             ---         ---       ---
    Net Income (Loss)                  $   33.7  $   32.5        4
    Income (Loss) per Common Share
      Income before Extraordinary
        Charge and Cumulative
         Effect on Prior Years of
          Accounting Changes           $   0.70  $   0.68        3
      Extraordinary Charge,
       Net of Income Taxes                  ---       ---       ---
      Cumulative Effect on Prior
       Years of Accounting
        Changes, Net of Income
         Taxes                              ---       ---       ---
      Net Income (Loss)                $   0.70  $   0.68        3
    Weighted Average Shares
     Outstanding (thousands)             48,323    48,273       ---
    Shares Outstanding at End
     of Period (thousands)                 ---       ---        ---
    Net Income Plus Net Noncash
     Operating Items                   $  123.3  $  111.0       11
    Cash Provided by Operating
     Activities                            47.4     106.0      (55)
    Interest Expense, Net of
     Interest Income                       10.4      16.1      (35)
    Nonoperating Expense, Net               9.2      17.8      (48)
    Income Tax Expense                     18.1      16.9        7
    Total Tax Expense                      38.7      36.9        5
    Dividends Paid                         18.3      18.3      ---
    Capital Expenditures -
     Exploration and production            79.9      54.9       46
     Refining and marketing                 9.4      11.1      (15)
     Chemicals                              8.4       8.2        2
     Coal                                   6.1       9.6      (36)
     Other                                  0.9       1.5      (40)
          Total Capital Expenditures      104.7      85.3       23
    Exploration Expenses -
     Petroleum
       Dry Hole Costs                       1.8       0.4       NM
       Amortization of
        undeveloped leases                  4.1       4.6      (11)
       Other                                5.5       5.5      ---
          Total                            11.4      10.5        9
       Minerals and other                   0.7       0.8      (13)
       Total Exploration Expense           12.1      11.3        7
       Less - Amortization of oil
        and gas and minerals
         leases and other noncash
          expenses                          4.1       4.6      (11)
                                            8.0       6.7       19
       Total Capital Expenditures
        and Cash Exploration
         Expenses                        $112.7     $92.0       23
    (1) Restated to reflect the adoption of Financial Accounting Standards Board Statements No. 106 and No. 109 effective Jan. 1, 1992.
                                         Six Months Ended
                                             June 30,         Percent
                                                              Increase
                                          1993     1992(1)   (Decrease)
    Sales                              $1,629.3  $1,658.9       (2)
    Income before Extraordinary
     Charge and Cumulative
      Effect on Prior Years of
       Accounting Changes                  58.1      45.1       29
    Extraordinary Charge,
     Net of Income Taxes                   ---       (2.4)      NM
    Cumulative Effect on Prior
     Years of Accounting
      Changes, Net of Income Taxes         ---      (69.8)      NM
    Net Income (Loss)                  $   58.1  $  (27.1)      NM
    Income (Loss) per Common Share
     Income before Extraordinary
      Charge and Cumulative
       Effect on Prior Years of
        Accounting Changes             $   1.20  $   0.94       28
     Extraordinary Charge,
      Net of Income Taxes                  ---      (0.05)      NM
      Cumulative Effect on Prior
       Years of Accounting
        Changes, Net of Income Taxes       ---      (1.45)      NM
      Net Income (Loss)                $   1.20  $  (0.56)      NM
    Weighted Average Shares
     Outstanding (thousands)             48,309    48,270       ---
    Shares Outstanding at End
     of Period (thousands)               48,333    48,275       ---
    Net Income Plus Net Noncash
     Operating Items                   $  228.7  $  198.2       15
    Cash Provided by Operating
     Activities                           209.6     128.5       63
    Interest Expense, Net of
     Interest Income                       21.3      32.2      (34)
    Nonoperating Expense, Net              17.3      23.4      (26)
    Income Tax Expense                     29.7      18.5       61
    Total Tax Expense                      70.9      59.2       20
    Dividends Paid                         36.6      36.7      ---
    Capital Expenditures -
     Exploration and production           176.1     108.2       63
     Refining and marketing                17.6      24.3      (28)
     Chemicals                             14.9      16.6      (10)
     Coal                                  14.8      34.2      (57)
     Other                                  1.4       8.1      (83)
          Total Capital Expenditures      224.8     191.4       17
    Exploration Expenses - Petroleum
     Dry Hole Costs                         6.8       0.8       NM
     Amortization of
      undeveloped leases                    8.6       9.1       (5)
     Other                                  9.2      12.0      (23)
          Total                            24.6      21.9       12
     Minerals and other                     1.4       1.7      (18)
     Total Exploration Expense             26.0      23.6       10
     Less - Amortization of oil and
      gas and minerals leases and
       other noncash expenses               8.6       9.1       (5)
                                           17.4      14.5       20
     Total Capital Expenditures
      and Cash Exploration Expenses      $242.2    $205.9       18
    (1) Restated to reflect the adoption of Financial Accounting Standards Board Statements No. 106 and No. 109 effective Jan. 1, 1992.
                       BUSINESS SEGMENT INFORMATION
                          (In millions of dollars)
                                       Second Quarter Ended
                                                              Percent
                                             June 30,         Increase
                                          1993     1992(1)   (Decrease)
    Sales
     Exploration and
      production(2)                      $101.1    $100.8        ---
     Refining and marketing               525.1     574.4       (9)
     Chemicals                            139.4     130.3        7
     Coal                                  80.1      70.7       13
     Other                                  0.1       ---       NM
          Total                          $845.8    $876.2       (3)
    Operating Profit (Loss)
     Exploration and production          $ 31.5    $ 29.0        9
     Refining and marketing                (0.2)     13.3       NM
     Chemicals                             21.3      19.2       11
     Coal                                  20.5      19.6        5
     Other                                 (1.7)      2.2       NM
          Total                          $ 71.4    $ 83.3      (14)
    Net Operating Profit (Loss)
     Exploration and production          $ 19.6    $ 16.9       16
     Refining and marketing                (0.1)      8.6       NM
     Chemicals                             13.2      11.7       13
     Coal                                  14.8      13.8        7
     Other                                 (1.1)      1.5       NM
          Total                            46.4      52.5      (12)
    Net Interest Expense                   (6.7)     (8.4)     (20)
    Net Nonoperating Expense               (6.0)    (11.6)     (48)
    Income before Extraordinary
     Charge and Cumulative Effect
      on Prior Years of Accounting
       Changes                             33.7      32.5        4
    Extraordinary Charge,
     Net of Income Taxes                    ---       ---       ---
    Cumulative Effect on Prior
     Years of Accounting Changes,
      Net of Income Taxes                   ---       ---       ---
    Net Income (Loss)                    $ 33.7    $ 32.5        4
                                          Six Months Ended
                                                              Percent
                                             June 30,         Increase
                                          1993     1992(1)   (Decrease)
    Sales
     Exploration and
      production(2)                    $  198.6  $  188.4        5
     Refining and marketing             1,011.1   1,078.9       (6)
     Chemicals                            260.5     243.9        7
     Coal                                 159.0     147.5        8
     Other                                  0.1       0.2      (50)
          Total                        $1,629.3  $1,658.9       (2)
    Operating Profit (Loss)
     Exploration and production        $   61.3  $   39.3       56
     Refining and marketing                (9.4)      5.1       NM
     Chemicals                             36.1      35.3        2
     Coal                                  41.2      37.4       10
     Other                                 (2.8)      2.1       NM
          Total                        $  126.4  $  119.2        6
    Net Operating Profit (Loss)
     Exploration and production        $   38.3  $   22.4       71
     Refining and marketing                (6.2)      3.3       NM
     Chemicals                             22.7      22.8       ---
     Coal                                  30.0      27.7        8
     Other                                 (1.8)      1.4       NM
          Total                            83.0      77.6        7
    Net Interest Expense                  (13.7)    (18.0)     (24)
    Net Nonoperating Expense              (11.2)    (14.5)     (23)
    Income before Extraordinary
     Charge and Cumulative Effect
      on Prior Years of Accounting
       Changes                             58.1      45.1       29
    Extraordinary Charge,
     Net of Income Taxes                    ---      (2.4)      NM
    Cumulative Effect on Prior
     Years of Accounting Changes,
      Net of Income Taxes                   ---     (69.8)      NM
    Net Income (Loss)                  $   58.1  $  (27.1)      NM
    (1) Restated to reflect the adoption of Financial Accounting Standards Board Statements No. 106 and No. 109 effective Jan. 1, 1992.
    (2) Excludes intercompany sales, primarily crude oil sales, of $55.7 and $56.5 for the second quarter of 1993 and 1992, respectively, and $101.9 and $100.2 for the first six months of 1993 and 1992, respectively.
                         OPERATING STATISTICS
                                       Second Quarter Ended
                                                              Percent
                                              June 30,        Increase
                                           1993     1992     (Decrease)
    Crude oil & condensate prod.
     (thousands of bbls/day)
        United States                      29.5      26.4       12
        Canada                              4.9       4.7        4
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