Kerr-McGree 4Q profit surges

Wednesday, January 26th 2005, 10:39 am
By: News On 6

OKLAHOMA CITY (AP) _ Kerr-McGee Corp. on Wednesday said revenue growth and higher energy prices helped fourth-quarter profit more than double, and the oil and gas producer forecast improved production in 2005.

Quarterly income was $133.8 million, or 86 cents per share, up from $50.5 million, or 50 cents per share, last year. The company's 2004 fourth-quarter adjusted income, excluding accounting changes and other items, was $167.5 million, or $1.07 per share, compared with $86.9 million, or 86 cents per share, for the 2003 fourth quarter.

Revenue was $1.6 billion, up from $1.03 billion last year. Analysts surveyed by Thomson First Call expected earnings of 98 cents per share on revenue of $1.2 billion.

Kerr-McGee reported fourth-quarter production averaged 372,100 barrels of oil equivalent a day, up 41 percent from the previous year.

``We expect to achieve record production in 2005, with volumes projected to increase in the range of 13 percent to 18 percent versus 2004,'' said Luke R. Corbett, chairman and chief executive, in a statement. ``We're confident we also will grow our reserves as we execute our 2005 capital and exploratory program.''

For the full year, Kerr-McGee posted net income of $404 million, or $3.11 per share, up from $218.6 million, or $2.17 per share. Adjusted income totaled $622.9 million, or $4.71 per share. Analysts expected earnings of $4.58 per share.

Revenue increased to $5.18 billion from $4.19 billion.