Kerr-McGee rebounds from last year’s loss

Petroleum News Houston staff

Oklahoma’s Kerr-McGee reported 2003 second-quarter net income of $69.8 million or 68 cents per share, compared to a loss of $177.7 million or $1.77 per share in the 2002 second quarter. And the turnaround came on higher prices but lower production.

The company’s oil production averaged 154,800 barrels per day in the 2003 second quarter compared to 189,300 barrels per day in the year-ago quarter. Natural gas averaged 697,000 million cubic feet per day versus 731,000 million cubic feet per day. The decrease in both oil and gas production was attributed largely to the sale of nearly $1 billion in non-core producing properties.

Kerr-McGee said it cut $35 million from its $3.9 billion debt in the second quarter and intends to do more. “We intend to use free cash flow to make additional reductions for the rest of year,” Robert Wohlebar, the company’s chief financial officer, said in a conference call. The company’s debt at June 2002 was $4.4 billion.