Kerr-McGee's net income down for second quarter

Kerr-McGee Corp. said Wednesday second-quarter net income was $175 million, vs. $217 million before special items a year ago. For the first 6 months, income before special items and an accounting change was $428 million, compared with $397 million a year earlier. Net income for the first 6 months was a record $510 million, compared with $295 million in 2000.


By the OGJ Online Staff

HOUSTON, July 25 -- Kerr-McGee Corp. said Wednesday second-quarter net income was $175 million, vs. $217 million before special items a year ago.

For the first 6 months, income before special items and an accounting change was $428 million, compared with $397 million a year earlier. Net income for the first 6 months was a record $510 million, compared with $295 million in 2000. Special items in the first half of 2001 contributed $102 million to net income, primarily as a result of the adoption of new accounting requirements for derivatives, while the cumulative effect of the accounting change reduced net income by $20 million.

Luke Corbett, chairman and CEO, said, "Offshore, development of four new fields is on schedule to dramatically increase production volumes beginning in the fourth quarter of this year, and we have enhanced our prospect portfolio through additional lease acquisitions in proven, high-potential trends around the world."

Production in the second quarter was 191,000 b/d vs. 206,700 b/d a year earlier. The average oil price fell $24.90/bbl compared with $26.33 a year earlier. Gas sales were 523 MMcfd vs. 543 MMcfd a year earlier and prices increased 27% to $4.36/Mcf.

Capital expenditures, excluding acquisitions, were $494 million, compared with $151 million in the previous year's second quarter. For the first 6 months, capital expenditures excluding acquisitions were $886 million, compared with $235 million in 2000.

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