Kerr-McGee net income up 59%

Wednesday, July 28th 2004, 8:45 am
By: News On 6

OKLAHOMA CITY (Dow Jones/AP) _ Oil and gas producer Kerr-McGee Corp.'s second-quarter profit surged 59 percent due to higher fuel prices and fewer charges than the year-ago period.

Kerr-McGee also benefited from ongoing cost controls, improved performance in its chemical operations and the acquisition of Westport Resources Corp. late in the quarter, which boosted oil and gas production volumes.

Kerr-McGee said Wednesday its net income for the second quarter rose to $110.6 million, or $1.01 a share, from $69.6 million, or 68 cents a share, in the same period a year earlier.

The latest quarter included a number of charges totaling $9.2 million, while last year's quarter included $43.2 million in charges. Excluding these items, earnings from continuing operations increased to $119.8 million, or $1.09 a share, a penny a share above the average analyst estimate from Thomson First Call. Last year's second-quarter earnings, excluding items, were $113 million, or $1.07 a share.

Second-quarter revenue improved to $1.1 billion from $1.05 billion.

Kerr-McGee, which is based in Oklahoma City, said it expects total oil and gas volumes to increase by 25 percent in the third quarter as it ramps up production from several new developments and realizes the full impact of the Westport acquisition.

The company's daily oil production from continuing operations averaged 140,500 barrels in the second quarter, down 9 percent from 154,800 barrels in the year-ago period.

Including the effect of the company's hedging program, the per-barrel sales price for oil from continuing operations averaged $26.97 for the quarter, up from $25.28 last year.

Natural gas sales averaged 740 million cubic feet per day, up 6 percent from last year's second quarter. The average natural gas sales price, including the effects of the hedging program, rose 10 percent to $4.70 per thousand cubic feet.

Second-quarter capital expenditures fell to $289.2 million from $340.1 million last year.

For the first six months of the year, net income jumped to $262.8 million from $139.5 million last year. Six-month revenue rose to $2.2 billion from $2.15 billion.