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STOCKHOLDERS HEAR REVIEW OF OUTLOOK, OPERATIONS: KERR-MCGEE BUILDING ON A SOLID FOUNDATION

 STOCKHOLDERS HEAR REVIEW OF OUTLOOK, OPERATIONS:
 KERR-MCGEE BUILDING ON A SOLID FOUNDATION
 OKLAHOMA CITY, May 5 /PRNewswire/ -- Although earnings have been affected by poor industry conditions, Kerr-McGee Corp. (NYSE: KMG) is sound financially as well as operationally, Frank A. McPherson, chairman and chief executive officer, told stockholders at the company's annual meeting here today.
 "The company's debt is at a very prudent, manageable level. Cash available from operations is sufficient to pay our dividend and meet most of our 1992 capital requirements," McPherson said.
 "Low oil and natural gas prices have clouded a number of positive results in our exploration and production operations," he said. For example, "our prospect inventory is at a record high and reserve additions have exceeded production in each of the past four years by an average of 70 percent."
 Building on its technological and operating expansions, chemicals should be "a growing source of earnings and cashflow." The coal unit will also be a very important contributor to income, he commented.
 McPherson said Kerr-McGee is a more efficient organization as a result of recent streamlining and "determined to build on our strong operational and asset foundation."
 "Our employees have been challenged to work smarter, and I am proud of how well they are responding," McPherson said.
 Jere W. McKenny, president and chief operating officer, reviewed the company's operations. Following are highlights of his presentation:
 -- Large development projects in the North Sea and elsewhere will significantly increase oil production volumes in the mid-1990s.
 -- Kerr-McGee's large prospect inventory provides high-potential opportunities for finding new oil and gas reserves and adding to stockholder value in the next few years.
 -- The company has been upgrading its refineries to increase the yield of higher-value products and to meet new environmental requirements.
 -- Kerr-McGee's coal production has reached a record level, and most of it is sold under long-term contracts. The company is increasing production capacity from its lower-sulfur coal mines to take advantage of developing opportunities.
 -- Completion of the overseas titanium dioxide projects and doubling of sodium chlorate production capacity have improved earnings prospects of the company's chemical business.
 In addition to his comments on Kerr-McGee, McPherson discussed the country's progress in the environmental area.
 Our government's adversarial approach to environmental regulation has fed the public's fears that the quality of the environment is deteriorating, McPherson said.
 "But the facts are just the opposite. By every measure, major improvements have been made in environmental quality over the past 20 years... These improvements have not been without great cost, both direct and indirect," McPherson said.
 Citing a recent study, he noted that the total annualized cost for all pollution-control activities in the United States had risen from $30 billion (in 1990 dollars) in 1972, to $115 billion in 1990.
 "$115 billion spent in 1990 is about $450 for each man, woman and child in the United States," McPherson observed.
 McPherson projected those costs to rise as new environmental bills are ratified and laws enacted. He proposed three "sensible guidelines" to continue current environmental improvements:
 -- Make better use of science -- and stop using scare tactics, emotion and political rhetoric -- in addressing environmental concerns;
 -- carefully weigh additional costs against incremental benefit; and
 -- encourage the government to work with businesses as partners rather than an adversary.
 McPherson cited a current proposal to add oil and gas exploration and production wastes to those covered by the Resource Conservation and Recovery Act as an example of poorly considered environmental legislation. The cost of compliance, estimated at $100 billion, is about the cost of the savings and loan bailout -- with little environmental improvement. State laws already stringently control such wastes, which rarely pose a health or environmental hazard, he said.
 Also at the annual meeting, stockholders defeated a shareholder proposal that the company adopt the Valdez principles.
 In addition, stockholders approved an amendment to the long-term incentive program, re-elected nine directors, and ratified the appointment of Arthur Anderson & Co. as independent public accountants.
 -0- 5/5/92
 /CONTACT: Karin C. Eccellente of Kerr-McGee, 405-270-3925/
 (KMG) CO: Kerr-McGee Corp. ST: Oklahoma IN: OIL CHM MNG SU:


BB-MC -- DV008 -- 6634 05/05/92 14:15 EDT
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Date:May 5, 1992
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