Kerr-McGee boosts capital spending to reflect merger with Westport Resources

Ray Tyson

Petroleum News Houston correspondent

Kerr-McGee says it is increasing its estimated 2004 capital program for oil and gas operations from $900 million to $1.1 billion, and its exploration expense from $300 million to $340 million, to reflect six months of combined company operations with recently acquired Westport Resources.

As a result of the merger, Kerr-McGee said it expects to reduce the new company’s total debt as a percent of capitalization to about 42 percent by year-end.

The combined company’s workforce also will be reduced by about 150 positions, resulting in a combined workforce of about 1,400 worldwide, Kerr-McGee said.

The merger, approved June 25 by the shareholders of both companies, increases Kerr-McGee’s proved reserves by nearly 30 percent.

Kerr-McGee’s executive management team members will continue in their current roles, and the company will retain the Kerr-McGee name and maintain its headquarters in Oklahoma City. The company’s oil and gas operations will continue to be based in Houston, with primary regional offices in Denver; Dallas, Aberdeen, Scotland and Beijing.