Kerr-McGee weighs in with net income of $69.9 million

Exploration and production independent Kerr-McGee, like many of its peers, rode out of the 2003 first quarter on high commodity prices and strong earnings. The company posted net income of $69.9 million or 68 cents share, up dramatically from the $5.5 million the company earned for the same quarter last year.

However, first-quarter natural gas production dropped to 761,000 million cubic feet per day from 792,000 million cubic feet per day in the prior quarter, but was up 5 percent compared to the year-ago quarter. Oil output fell to 165,000 barrels a day and plunged 19 percent versus the year ago quarter.

The company said the decline was due largely to lost production from nearly $1 billion in property divestitures.

Rick Buterbaugh, Kerr-McGee’s vice president of investor relations, said in an April 30 conference call that additional property sales could affect volumes this year. However, he said divestitures “should have minimal impact” on production.

Operating profit for the first quarter was $269.6 million, more than double the $110.8 million compared to the year-ago quarter. Capital expenditures were $306 million compared to $346.9 million for the same period last year.