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KERR-MCGEE REPORTS SLIGHT DECREASE IN NET INCOME

 KERR-MCGEE REPORTS SLIGHT DECREASE IN NET INCOME
 OKLAHOMA CITY, Oct. 26 /PRNewswire/ -- Third-quarter net income for


Kerr-McGee Corp. (NYSE: KMG) was $25.4 million (52 cents per share), down slightly from the 1991 third-quarter net income of $26.8 million (55 cents per share).
 Net income for the first nine months, before an extraordinary after-tax charge of $2.4 million, was $64.3 million ($1.33 per share), compared with $66.8 million ($1.38 per share) in the like period last year. The first-quarter 1992 extraordinary charge was for early redemption of 9.75 percent debt.
 Sales for the third quarter were $858 million, up from $832 million for the 1991 quarter. For the first nine months, sales were $2.5 billion, compared with $2.4 billion last year.
 Comments on results
 Higher natural gas sales prices and lower exploration expenses increased operating profit from exploration and production, the largest contributor to the company's third-quarter operating profit, said Frank A. McPherson, chairman and chief executive officer of Kerr-McGee. Coal's significant contribution to total operating profit continued in the third quarter at a slightly higher level than last year, he said.
 These increases were more than offset by lower operating profit from chemicals and an operating loss in refining and marketing. Chemical operations experienced lower margins for titanium dioxide pigment. The operating loss in refining and marketing was due to negative margins in the third quarter.
 Other factors contributing to third-quarter net income include a favorable windfall profit tax adjustment, foreign currency exchange gains versus losses in the 1991 third quarter, and lower costs as a result of the company's streamlining program.
 For the nine months, operating profit was up for exploration and production due to higher natural gas sales volumes and prices and lower exploration costs. Operating profit for coal was about the same as in 1991. Chemical operating profit declined due to lower pigment margins and lower ammonium perchlorate sales volumes. Refining and marketing operating profit was down significantly due to weak margins in the first nine months.
 Oil and natural gas
 Third-quarter crude oil sales prices averaged $19.13 per barrel, up 36 cents per barrel from the 1991 quarter. Kerr-McGee's oil production averaged 49,100 barrels per day for the quarter, compared with 50,300 barrels per day for the like quarter last year.
 Average daily natural gas deliveries were 275 million cubic feet in the third quarter, about the same as in the 1991 period. Natural gas sales prices were 29 percent higher in the 1992 third quarter.
 Cash flow, capital expenditures
 Cash flow from operations was $104 million in the third quarter, compared with $127 million in the 1991 period. Capital expenditures in the third quarter were $85 million, down from $101 million in the like 1991 quarter.
 New coal lease
 A federal coal lease awarded to the company in the third quarter covering coal reserves adjacent to its Jacobs Ranch surface mine in Wyoming will extend mine operations until the year 2012. The lease increases the Jacobs Ranch coal reserve by 132 million tons of low- sulfur coal.
 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
 Third Quarter
 (In millions of dollars, Ended Percent
 except per-share amounts) Sept. 30, Increase
 1992 1991 (Decrease)
 Sales $ 857.5 $ 832.2 3
 Income before Extraordinary
 Charge 25.4 26.8 (5)
 Extraordinary Charge,
 Net of Income Taxes - - -
 Net Income 25.4 26.8 (5)
 Income per Common Share
 Income before Extraordinary
 Charge 0.52 0.55 (5)
 Extraordinary Charge - - -
 Net Income $ 0.52 $ 0.55 (5)
 Weighted Average Shares
 Outstanding (thousands) 48,281 48,226 -
 Shares Outstanding at End
 of Period (thousands)
 Net Income Plus Net Noncash
 Operating Items $ 104.3 $ 126.7 (18)
 Cash Provided by Operating
 Activities 81.5 28.6 185
 Nine Months
 Ended Percent
 Sept. 30, Increase
 1992 1991 (Decrease)
 Sales $2,516.4 $2,402.0 5
 Income before Extraordinary
 Charge 64.3 66.8 (4)
 Extraordinary Charge,
 Net of Income Taxes (2.4) - NM
 Net Income 61.9 66.8 (7)
 Income per Common Share
 Income before Extraordinary
 Charge 1.33 1.38 (4)
 Extraordinary Charge (0.05) - NM
 Net Income $ 1.28 $ 1.38 (7)
 Weighted Average Shares
 Outstanding (thousands) 48,274 48,327 -
 Shares Outstanding at End of
 Period (thousands) 48,283 48,227 -
 Net Income Plus Net Noncash
 Operating Items $ 302.5 $ 321.3 (6)
 Cash Provided by Operating
 Activities 210.0 109.7 91
 FINANCIAL DATA
 Third Quarter
 Ended Percent
 (In millions of dollars) Sept. 30, Increase
 1992 1991 (Decrease)
 Interest Expense,
 Net of Interest Income $13.0 $ 16.1 (19)
 Nonoperating Expense, Net 3.8 14.3 (73)
 Income Tax Expense 13.9 16.7 (17)
 Total Tax Expense 36.9 35.7 3
 Dividends Paid 18.3 18.3 -
 Capital Expenditures -
 Exploration and production 65.7 58.4 13
 Refining and marketing 7.7 14.4 (47)
 Chemicals 6.0 17.7 (66)
 Coal 5.1 5.7 (11)
 Other 0.4 5.2 (92)
 Total Capital Expenditures 84.9 101.4 (16)
 Exploration Expenses -
 Petroleum
 Dry hole costs 1.2 4.5 (73)
 Amortization of
 undeveloped leases 4.6 4.7 (2)
 Other 8.0 7.3 10
 Total 13.8 16.5 (16)
 Minerals and other 1.1 1.6 (31)
 Total Exploration
 Expenses 14.9 18.1 (18)
 Less - Amortization of oil
 and gas and minerals
 leases and other
 noncash expenses 4.6 4.7 (2)
 10.3 13.4 (23)
 Total Capital Expenditures
 and Cash Exploration
 Expenses $95.2 $114.8 (17)
 Nine Months
 Ended Percent
 Sept. 30, Increase
 1992 1991 (Decrease)
 Interest Expense, Net of
 Interest Income $ 45.2 $ 35.6 27
 Nonoperating Expense, Net 30.3 44.2 (31)
 Income Tax Expense 38.1 41.8 (9)
 Total Tax Expense 101.8 101.9 -
 Dividends Paid 55.0 53.3 3
 Capital Expenditures -
 Exploration and production 173.9 264.5 (34)
 Refining and marketing 32.0 33.9 (6)
 Chemicals 22.6 73.1 (69)
 Coal 39.3 12.4 217
 Other 8.5 11.9 (29)
 Total Capital Expenditures 276.3 395.8 (30)
 Exploration Expenses -
 Petroleum
 Dry hole costs 2.0 25.1 (92)
 Amortization of
 undeveloped leases 13.7 14.2 (4)
 Other 19.8 23.3 (15)
 Total 35.5 62.6 (43)
 Minerals and other 2.8 4.3 (35)
 Total Exploration
 Expenses 38.3 66.9 (43)
 Less - Amortization of oil
 and gas and minerals
 leases and other noncash
 expenses 13.7 14.3 (4)
 24.6 52.6 (53)
 Total Capital Expenditures
 and Cash Exploration
 Expenses $300.9 $448.4 (33)
 BUSINESS SEGMENT INFORMATION
 Third Quarter
 Ended Percent
 (In millions of dollars) Sept. 30, Increase
 1992 1991 (Decrease)
 Sales
 Exploration and
 production (1) $ 94.5 $ 89.4 6
 Refining and marketing 552.7 550.4 -
 Chemicals 129.9 112.4 16
 Coal 80.1 80.0 -
 Other 0.3 - NM
 Total $857.5 $832.2 3
 Operating Profit (Loss)
 Exploration and production $ 25.4 $ 14.7 73
 Refining and marketing (5.4) 15.5 NM
 Chemicals 17.5 26.2 (33)
 Coal 19.5 18.7 4
 Other (0.9) (1.2) (25)
 Total $ 56.1 $ 73.9 (24)
 Net Operating Profit (Loss)
 Exploration and production $ 14.1 $ 5.3 166
 Refining and marketing (3.5) 10.0 NM
 Chemicals 10.9 17.3 (37)
 Coal 14.9 15.0 (1)
 Other (0.5) (0.7) (29)
 Total 35.9 46.9 (23)
 Net Interest Expense (8.1) (10.6) (24)
 Net Nonoperating Expense (2.4) (9.5) (75)
 Income before Extraordinary
 Charge 25.4 26.8 (5)
 Extraordinary Charge,
 Net of Income Taxes - - -
 Net Income $ 25.4 $ 26.8 (5)
 Nine Months
 Ended Percent
 Sept. 30, Increase
 1992 1991 (Decrease)
 Sales
 Exploration and
 production (1) $ 282.9 $ 262.2 8
 Refining and marketing 1,631.6 1,564.0 4
 Chemicals 373.8 342.5 9
 Coal 227.6 232.7 (2)
 Other 0.5 0.6 (17)
 Total $2,516.4 $2,402.0 5
 Operating Profit (Loss)
 Exploration and production $ 67.4 $ 30.6 120
 Refining and marketing 0.5 24.9 (98)
 Chemicals 52.6 78.2 (33)
 Coal 57.7 58.3 (1)
 Other 1.2 (3.6) NM
 Total $ 179.4 $ 188.4 (5)
 Net Operating Profit (Loss)
 Exploration and production $ 36.9 $ 11.0 235
 Refining and marketing 0.3 16.0 (98)
 Chemicals 31.1 49.7 (37)
 Coal 42.9 45.6 (6)
 Other 0.9 (2.8) NM
 Total 112.1 119.5 (6)
 Net Interest Expense (27.9) (23.5) 19
 Net Nonoperating Expense (19.9) (29.2) (32)
 Income before Extraordinary
 Charge 64.3 66.8 (4)
 Extraordinary Charge,
 Net of Income Taxes (2.4) - NM
 Net Income $ 61.9 $ 66.8 (7)
 (1) Excludes intercompany sales, primarily crude oil sales, of
 $57.2 and $47.4 for the third quarter of 1992 and 1991,
 respectively, and $157.4 and $149.3 for the first nine months of
 1992 and 1991, respectively.
 OPERATING STATISTICS
 Third Quarter
 Ended Percent
 Sept. 30, Increase
 1992 1991 (Decrease)
 Crude oil & condensate prod.
 (thousands of bbls/day)
 United States 25.9 23.3 11
 Canada 3.8 4.2 (10)
 North Sea 14.9 18.6 (20)
 Other international 4.5 4.2 7
 Total 49.1 50.3 (2)
 Average price of crude oil
 sold (per bbl.)
 United States $19.25 $19.10 1
 Canada 17.94 17.43 3
 North Sea 19.40 19.00 2
 Other international 18.50 17.20 8
 Average $19.13 $18.77 2
 Natural gas sales (MMCF/day) 275 272 1
 Total refinery runs
 (thousands of bbls/day) 134.9 142.5 (5)
 Refined product sales
 (thousands of bbls/day) 233.8 227.4 3
 Industrial chemical sales
 (thousands of tons) 92 87 6
 Treated forest product sales
 (millions of board feet) 66 53 25
 Coal shipped from company mines
 (thousands of tons) 5,583 6,037 (8)
 Nine Months
 Ended Percent
 Sept. 30, Increase
 1992 1991 (Decrease)
 Crude oil & condensate prod.
 (thousands of bbls/day)
 United States 25.5 22.3 14
 Canada 4.6 4.5 2
 North Sea 16.2 19.0 (15)
 Other international 4.5 4.2 7
 Total 50.8 50.0 2
 Average price of crude oil
 sold (per bbl.)
 United States $18.24 $19.14 (5)
 Canada 16.20 17.30 (6)
 North Sea 18.73 19.42 (4)
 Other international 17.44 16.39 6
 Average $18.16 $18.85 (4)
 Natural gas sales (MMCF/day) 302 265 14
 Total refinery runs
 (thousands of bbls/day) 133.9 130.5 3
 Refined product sales
 (thousands of bbls/day) 242.1 214.4 13
 Industrial chemical sales
 (thousands of tons) 297 280 6
 Treated forest product sales
 (millions of board feet) 191 161 19
 Coal shipped from company mines
 (thousands of tons) 15,561 16,368 (5)
 -0- 10/26/92
 /CONTACT: Sigrid Bowman of Kerr-McGee, 405-270-3992/
 (KMG) CO: Kerr-McGee Corp. ST: Oklahoma IN: OIL SU: ERN


BB -- DV006 -- 4851 10/26/92 13:38 EST
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