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KERR-MCGEE STOCKHOLDERS TOLD FUTURE LOOKING MORE FAVORABLE

 OKLAHOMA CITY, May 4 /PRNewswire/ -- While Kerr-McGee Corp.'s (NYSE: KMG) financial results will continue to be affected by external events, investors can look forward to progress in several areas, Frank A. McPherson, chairman and chief executive officer, told stockholders attending today's annual meeting here.
 He cited six examples:
 -- Startup of three North Sea Fields, which will increase oil
 production by about 40 percent in 1994;
 -- Drilling on high-potential foreign and domestic oil and gas
 exploration prospects;
 -- Increasing operating profit from chemical operations as the
 world's economies recover from recession;
 -- Another strong performance in 1993 from coal operations;
 -- Continued financial flexibility from a relatively low debt
 ratio; and
 -- Another year of strong cash flow, currently exceeding $9 per
 share.
 "For all these reasons, we believe that shareholder confidence in Kerr-McGee's future will continue to be rewarded," McPherson said.
 McPherson noted that Kerr-McGee's common stock price rose 17 percent in 1992. That appreciation plus dividends brought total stockholder return to 20 percent, making Kerr-McGee the best performer in 1992 among the 11 companies in Standard and Poor's index of domestic integrated oil companies.
 "We believe this increase is a continuing reflection of investor confidence in the strategic plan Kerr-McGee has been following for several years, plus our recent and projected growth in oil production."
 OIL AND GAS OPERATIONS
 Exploration and production of oil and natural gas was the largest contributor to Kerr-McGee's 1992 operating profit. In the last few years, gas has become increasingly important to the company's profitability.
 "There is mounting evidence that the so-called 'gas bubble' has finally dissipated," McPherson said. "While seasonal fluctuations will continue, we believe that average annual gas prices have bottomed out and will likely increase this year and in the future."
 Kerr-McGee's gas production increased by 5 percent in 1992 to an average of 296 million cubic feet per day, the highest level in 20 years.
 The prospects for increased oil production are also improving, according to McPherson. "Our most promising area for new oil production is in the United Kingdom sector of the North Sea. In 1994, first production from the Gryphon, East Brae and Scott fields will increase our North Sea production to about 38,000 barrels of oil per day. As a result, the North Sea will provide 55 percent of the company's worldwide production in 1994, compared with about one-third last year. Company- wide production should increase nearly 4 percent in 1994," he said.
 "We continue to drill additional prospects in the Scott area, where we have a 10.8 percent interest in Block 15/21. A delineation well currently drilling in the Perth area has encountered pay and is potentially the best well on the Perth structure. The discovery well flowed 5,900 barrels per day," McPherson said.
 Two new areas, Papua New Guinea and the South China Sea, are on the company's prospect list.
 "We have entered into an agreement, subject to government approval, for a one-third interest in a block covering about 1.9 million acres in the Foreland Basin area of Papua New Guinea. Drilling will begin in 1994.
 "We have also entered into an agreement with Amoco and the government of China involving a 4 million-acre block in the South China Sea. Our interest is 50 percent, and we plan to drill a well there late this year," McPherson said.
 CHEMICAL OPERATIONS
 Even though operating profit from chemical operations declined in 1992, the segment still made a significant contribution of $79 million to total earnings, McPherson noted.
 "Our major chemical product is titanium dioxide, a white pigment used primarily in paint, plastics and paper. Although world pigment prices were down the last two years, the product still accounted for more than half of last year's operating profit from chemicals," McPherson said.
 "We believe pigment prices will improve as the world's economies recover from recession. With its low-cost production and high product quality, Kerr-McGee is in an excellent position to take advantage of a market upturn," the chairman said.
 Another important industrial chemical produced by Kerr-McGee is manganese dioxide, the primary component in alkaline batteries. Demand for these batteries is projected to grow at a rate of about 5 percent annually through the end of the century. Kerr-McGee is one of only two commercial suppliers of manganese dioxide in the country, according to McPherson.
 "To take advantage of this projected demand growth, we are expanding our manganese dioxide plant in Henderson, Nev., by 50 percent," McPherson said.
 He stated that another chemical product with excellent growth potential is sodium chlorate, used by pulp and paper mills in an environmentally preferred process for bleaching pulp.
 "Sales volume for sodium chlorate was up 35 percent in 1992 over 1991, and we project an annual growth rate of about 7 percent for the next few years as more pulp and paper mills convert to sodium chlorate, replacing the more widely used chlorine process," McPherson said.
 COAL OPERATIONS
 "For 1993, we project increased deliveries of coal that will set a new record of 22.3 million tons. We are forecasting a strong performance for our coal business in 1993, even though lower spot prices are exerting downward pressure on our contract prices," McPherson said.
 Because most Kerr-McGee coal is relatively low in sulfur content, Clean Air Act amendments taking effect in 1995 and 2000 should result in increased sales to electric utilities, McPherson predicted.
 The company's Jacobs Ranch surface mine in northern Wyoming is the nation's third-largest coal mine. Kerr-McGee is expanding the No. 5 seam of its large underground mine at Galatia, in southern Illinois. A third mining property is Pioneer Fuel in West Virginia.
 DIRECTORS ELECTED
 Also at the annual meeting, stockholders elected eight incumbent directors and two new directors, Farah M. Walters, president and chief executive officer of University Hospitals in Cleveland, Ohio, and Martin Jischke, president of Iowa State University, Ames, Iowa.
 In addition, stockholders ratified the appointment of Arthur Andersen & Co. as independent public accountants, and defeated a proposal that the company adopt the CERES principles, formerly known as the Valdez principles.
 -0- 5/4/93
 /CONTACT: Dow Dozier of Kerr-McGee, 405-270-2877/
 (KMG)


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

MC -- DV006 -- 4503 05/04/93 16:24 EDT
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Date:May 4, 1993
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