Exhibit 99.4
Kerr-McGee Corporation
Oil and Gas Derivatives
As of January 26, 2005
| | 2004 | |
| | First Quarter | | Second Quarter | | Third Quarter | | Fourth Quarter | |
| | Avg Price/Collar | | BOPD | | Avg Price/Collar | | BOPD | | Avg Price/Collar | | BOPD | | Avg Price/Collar | | BOPD | |
Crude Oil ($/Barrel) | | | | | | | | | | | | | | | | | |
Fixed-price swaps (WTI) | | $ | 29.03 | | 52,352 | | $ | 28.23 | | 54,300 | | $ | 27.93 | | 65,882 | | $ | 28.54 | | 68,015 | |
| | | | | | | | | | | | | | | | | |
Fixed-price swaps (Brent) | | $ | 26.76 | | 49,286 | | $ | 26.27 | | 51,800 | | $ | 26.45 | | 46,850 | | $ | 26.71 | | 52,000 | |
| | | | | | | | | | | | | | | | | |
Costless collars (WTI) | | — | | — | | — | | — | | — | | — | | — | | — | |
| | | | | | | | | | | | | | | | | |
Three-way Collars (NYMEX) | | — | | — | | — | | — | | $24.38 - $27.71 | | 4,000 | (2) | $24.38 - $27.71 | | 4,000 | (2) |
Three-way average floor | | | | | | | | | | $ | 19.25 | | | | $ | 19.25 | | | |
| | | | | | | | | | | | | | | | | |
Total | | | | 101,638 | | | | 106,100 | | | | 116,732 | | | | 124,015 | |
| | 2004 | |
| | First Quarter | | Second Quarter | | Third Quarter | | Fourth Quarter | |
| | Avg Price/Collar | | MMBtu/D | | Avg Price/Collar | | MMBtu/D | | Avg Price/Collar | | MMBtu/D | | Avg Price/Collar | | MMBtu/D | |
Natural Gas ($/MMBtu) (1) | | | | | | | | | | | | | | | | | |
Fixed-price swaps (NYMEX) | | $ | 5.33 | | 195,000 | | $ | 4.74 | | 565,000 | | $ | 4.89 | | 807,663 | | $ | 4.96 | | 870,000 | |
| | | | | | | | | | | | | | | | | |
Fixed-price swaps (NWPRM) | | — | | — | | — | | — | | $ | 3.33 | | 30,000 | | $ | 3.33 | | 30,000 | |
| | | | | | | | | | | | | | | | | |
Costless collars (NYMEX) | | $4.48 - $6.00 | | 85,000 | | — | | — | | $3.70 - $4.00 | | 44,674 | (2) | $3.70 - $4.00 | | 44,674 | (2) |
| | $4.64 - $7.00 | | 50,000 | | | | | | | | | | | | | |
| | $4.71 - $7.50 | | 50,000 | | | | | | | | | | | | | |
| | $5.00 - $6.74 | | 50,000 | | | | | | | | | | | | | |
| | $5.00 - $6.06 | | 100,000 | | | | | | | | | | | | | |
| | $5.00 - $6.01 | | 25,000 | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Three-way collars (NYMEX) | | — | | — | | — | | — | | $4.00 - $5.00 | | 10,000 | (2) | $4.00 - $5.00 | | 10,000 | (2) |
Three-way average floor | | | | | | | | | | $ | 3.15 | | | | $ | 3.15 | | | |
| | | | | | | | | | | | | | | | | |
Total | | | | 555,000 | | | | 565,000 | | | | 892,337 | | | | 954,674 | |
| | | | | | | | | | | | | | | | | | | | | |
| | 2004 | |
| | First Quarter | | Second Quarter | | Third Quarter | | Fourth Quarter | |
| | Avg Price/Collar | | MMBtu/D | | Avg Price/Collar | | MMBtu/D | | Avg Price/Collar | | MMBtu/D | | Avg Price/Collar | | MMBtu/D | |
Basis swaps versus NYMEX ($/MMBtu) (1) | | | | | | | | | | | | | | | | | |
CIG | | $ | 0.62 | �� | 120,000 | | $ | 0.59 | | 46,703 | | $ | 0.65 | | 75,000 | | $ | 0.68 | | 161,196 | |
CIG | | — | | — | | — | | — | | — | | — | | $ | 0.80 | | 3,316 | (2) |
NWPRM | | $ | 0.20 | | 15,000 | | $ | 0.20 | | 15,000 | | $ | 0.38 | | 25,000 | | $ | 0.44 | | 31,630 | |
NWPRM | | — | | — | | — | | — | | — | | — | | $ | 0.78 | | 16,576 | (2) |
| | | | | | | | | | | | | | | | | |
Total | | | | 135,000 | | | | 61,703 | | | | 100,000 | | | | 212,718 | |
Notes:
MMBtu/D = million British thermal units per day
NWPRM = Northwest Pipeline Rocky Mountain Index
(1) Derivative transactions are on a million Btu (MMBtu) basis. Kerr-McGee reports production/sales on a MCF basis. The conversion rate is 1.080 MMBtu to 1 MCF.
(2) Derivatives that have not been designated as hedges or that do not qualify for hedge accounting treatment.
For further disclosure regarding accounting treatment of derivatives, please refer to the Quarterly Report on Form 10-Q for the third quarter 2004, filed on November 9, 2004.
** Cautionary Statement Concerning Forward-Looking Statements **
The information contained in this table represents Kerr-McGee’s current derivative contracts. These derivative contracts were entered into based on projected production volume forecasts. These forecasts are estimated projections that may or may not occur in the future, and constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, in those documents in which such projections are provided. Future results and developments set forth in this statement may be affected by numerous uncertainties, factors and risks, such as but not limited to the accuracy of the assumptions that underlie the statement, the success of the oil and gas exploration and production program, drilling risks, market value of oil and gas, uncertainties in interpreting engineering data, changes in laws and regulations, the ability to respond to challenges in international markets, political or economic conditions, trade and regulatory matters, and other factors and risks identified in the Risk Factors section of Kerr-McGee’s Annual Report on Form 10-K and other SEC filings. Actual results and developments may differ materially from those expressed or implied in this statement. Therefore, the information contained in this statement may not be accurate. Kerr-McGee does not undertake to update, revise or correct any of the forward-looking information.
As of February 23, 2005
| | 2005 | | 2006 | |
| | First Quarter | | Second Quarter | | Third Quarter | | Fourth Quarter | | Full Year | |
| | Avg Price/Collar | | BOPD | | Avg Price/Collar | | BOPD | | Avg Price/Collar | | BOPD | | Avg Price/Collar | | BOPD | | Avg Price/Collar | | BOPD | |
Crude Oil ($/Barrel) | | | | | | | | | | | | | | | | | | | | | |
Hedge | | | | | | | | | | | | | | | | | | | | | |
Fixed Price Swaps (WTI) | | $ | 29.23 | | 3,000 | | $ | 29.23 | | 3,000 | | $ | 29.23 | | 3,000 | | $ | 29.23 | | 3,000 | | — | | — | |
| | $ | 43.78 | | 4,589 | | $ | 43.78 | | 7,000 | | $ | 43.78 | | 7,000 | | $ | 43.78 | | 7,000 | | — | | — | |
| | | | | | | | | | | | | | | | | | | | | |
Fixed Price Swaps (Brent) | | $ | 41.03 | | 16,000 | | $ | 41.03 | | 16,000 | | $ | 41.03 | | 16,000 | | $ | 41.03 | | 16,000 | | — | | — | |
| | | | | | | | | | | | | | | | | | | | | |
Costless Collars (WTI) | | $28.50 - $31.89 | | 14,000 | | $28.50 - $31.89 | | 14,000 | | $28.50 - $31.89 | | 14,000 | | $28.50 - $31.89 | | 14,000 | | $27.00 - $30.58 | | 19,000 | |
| | $40.00 - $49.18 | | 10,089 | | $40.00 - $49.05 | | 12,500 | | $40.00 - $49.05 | | 12,500 | | $40.00 - $49.05 | | 12,500 | | — | | — | |
| | | | | | | | | | | | | | | | | | | | | |
Costless Collars (Brent) | | $38.00 - $48.38 | | 13,778 | | $38.00 - $48.48 | | 15,500 | | $38.00 - $48.48 | | 15,500 | | $38.00 - $48.48 | | 15,500 | | — | | — | |
| | | | | | | | | | | | | | | | | | | | | |
Non-hedge | | | | | | | | | | | | | | | | | | | | | |
Three-way Collars (WTI) | | $25.00 - $28.23 | | 5,000 | | $25.00 - $28.23 | | 5,000 | | $25.00 - $28.23 | | 5,000 | | $25.00 - $28.23 | | 5,000 | | $25.00 - $28.65 | | 2,000 | |
Three-way Average Floor | | $ | 20.93 | | | | $ | 20.93 | | | | $ | 20.93 | | | | $ | 20.93 | | | | $ | 20.88 | | | |
| | | | 66,456 | | | | 73,000 | | | | 73,000 | | | | 73,000 | | | | 21,000 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | 2005 | | 2006 | |
| | First Quarter | | Second Quarter | | Third Quarter | | Fourth Quarter | | Full Year | |
| | Avg Price/Collar | | MMBtu/D | | Avg Price/Collar | | MMBtu/D | | Avg Price/Collar | | MMBtu/D | | Avg Price/Collar | | MMBtu/D | | Avg Price/Collar | | MMBtu/D | |
Natural Gas ($/MMBtu) | | | | | | | | | | | | | | | | | | | | | |
Hedge | | | | | | | | | | | | | | | | | | | | | |
Fixed Price Swaps (NYMEX) | | $ | 4.42 | | 55,000 | | $ | 4.42 | | 55,000 | | $ | 4.42 | | 55,000 | | $ | 4.42 | | 55,000 | | — | | — | |
| | — | | — | | $ | 6.29 | | 150,000 | | $ | 6.29 | | 150,000 | | $ | 6.29 | | 50,544 | | — | | — | |
| | | | | | | | | | | | | | | | | | | | | |
Costless Collars (NYMEX) | | $5.00 - $6.25 | | 280,000 | | $5.00 - $6.25 | | 280,000 | | $5.00 - $6.25 | | 280,000 | | $5.00 - $6.25 | | 280,000 | | $4.75 - $5.50 | | 340,000 | |
| | $6.50 - $10.31 | | 225,000 | | $6.00 - $7.33 | | 195,000 | | $6.00 - $7.33 | | 195,000 | | $6.00 - $7.33 | | 65,707 | | — | | — | |
| | | | | | | | | | | | | | | | | | | | | |
Non-hedge | | | | | | | | | | | | | | | | | | | | | |
Costless Collars (NYMEX) | | $4.09 - $5.57 | | 60,000 | | $4.09 - $5.57 | | 60,000 | | $4.09 - $5.57 | | 60,000 | | $4.09 - $5.57 | | 60,000 | | — | | — | |
| | | | | | | | | | | | | | | | | | | | | |
Three-way Collars (WTI) | | — | | — | | — | | — | | — | | — | | — | | — | | $4.00 - $6.00 | | 20,000 | |
Three-way Average Floor | | | | | | | | | | | | | | | | | | $ | 3.04 | | | |
| | | | 620,000 | | | | 740,000 | | | | 740,000 | | | | 511,251 | | | | 360,000 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | 2005 | | 2006 | |
| | First Quarter | | Second Quarter | | Third Quarter | | Fourth Quarter | | Full Year | |
| | Avg Price/Collar | | MMBtu/D | | Avg Price/Collar | | MMBtu/D | | Avg Price/Collar | | MMBtu/D | | Avg Price/Collar | | MMBtu/D | | Avg Price/Collar | | MMBtu/D | |
Basis swaps versus NYMEX ($/MMBtu) | | | | | | | | | | | | | | | | | | | | | |
Hedge | | | | | | | | | | | | | | | | | | | | | |
CIG | | $ | 0.39 | | 20,000 | | $ | 0.61 | | 50,000 | | $ | 0.61 | | 50,000 | | $ | 0.51 | | 21,109 | | — | | — | |
NWPL | | $ | 0.43 | | 25,000 | | $ | 0.62 | | 67,500 | | $ | 0.62 | | 67,500 | | $ | 0.54 | | 39,321 | | — | | — | |
HSC | | | | | | $ | 0.13 | | 70,000 | | $ | 0.13 | | 70,000 | | $ | 0.13 | | 23,587 | | — | | — | |
| | | | | | | | | | | | | | | | | | | | | |
Non-hedge | | | | | | | | | | | | | | | | | | | | | |
CIG | | $ | 0.71 | | 175,000 | | — | | — | | — | | — | | — | | — | | $ | 0.39 | | 20,000 | |
NWPL | | $ | 0.71 | | 70,000 | | — | | — | | — | | — | | — | | — | | $ | 0.20 | | 15,000 | |
HSC | | $ | 0.35 | | 54,500 | | — | | — | | — | | — | | $ | 0.33 | | 13,261 | | — | | — | |
| | | | 344,500 | | | | 187,500 | | | | 187,500 | | | | 97,278 | | | | 35,000 | |
Acquired in the Westport merger
Placed by Kerr-McGee in connection with the Westport merger
(1) Derivative transactions are on a million Btu (MMBtu) basis. Kerr-McGee reports production/sales on a MCF basis. The conversion rate is 1.095 MMBtu to 1 MCF.
Certain collars are presented on a weighted-average basis. Actual collar prices may differ.
** Cautionary Statement Concerning Forward-Looking Statements **
The information contained in this table represents Kerr-McGee’s current derivative contracts. These derivative contracts were entered into based on projected production volume forecasts. These forecasts are estimated projections that may or may not occur in the future, and constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, in those documents in which such projections are provided. Future results and developments set forth in this statement may be affected by numerous uncertainties, factors and risks, such as but not limited to the accuracy of the assumptions that underlie the statement, the success of the oil and gas exploration and production program, drilling risks, market value of oil and gas, uncertainties in interpreting engineering data, changes in laws and regulations, the ability to respond to challenges in international markets, political or economic conditions, trade and regulatory matters, and other factors and risks identified in the Risk Factors section of Kerr-McGee’s Annual Report on Form 10-K and other SEC filings. Actual results and developments may differ materially from those expressed or implied in this statement. Therefore, the information contained in this statement may not be accurate. Kerr-McGee does not undertake to update, revise or correct any of the forward-looking information.
