Exhibit 99.1
Kerr-McGee Corporation
Oil and Gas Derivatives
As of September 2004
2004
----------------------------------------------------------------------------------------------------------
First Quarter Second Quarter Third Quarter Fourth Quarter
------------------------- ------------------------- ------------------------- -------------------------
Crude Oil ($/Barrel) Avg Price/Collar BOPD Avg Price/Collar BOPD Avg Price/Collar BOPD Avg Price/Collar BOPD
---------------- ------- ---------------- ------- ---------------- ------- ---------------- -------
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 $24.38 - $27.71 4,000
Three-way average floor $19.25 $19.25
------- ------- ------- -------
Total 101,638 106,100 116,732 124,015
======= ======= ======= =======
2004
----------------------------------------------------------------------------------------------------------
First Quarter Second Quarter Third Quarter Fourth Quarter
------------------------- ------------------------- ------------------------- -------------------------
Natural Gas ($/MMBtu) (1) Avg Price/Collar MMBtu/D Avg Price/Collar MMBtu/D Avg Price/Collar MMBtu/D Avg Price/Collar MMBtu/D
---------------- ------- ---------------- ------- ---------------- ------- ---------------- -------
Fixed-price swaps (NYMEX) $5.33 195,000 $4.74 565,000 $4.89 807,663 $4.97 870,000
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 $3.70 - $4.00 44,674
$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 $4.00 - $5.00 10,000
Three-way average floor $3.15 $3.15
------- ------- ------- -------
Total 555,000 565,000 892,337 954,674
======= ======= ======= =======
2004
----------------------------------------------------------------------------------------------------------
First Quarter Second Quarter Third Quarter Fourth Quarter
------------------------- ------------------------- ------------------------- -------------------------
Basis swaps versus
NYMEX ($/MMBtu)(1) Avg Price/Collar MMBtu/D Avg Price/Collar MMBtu/D Avg Price/Collar MMBtu/D Avg Price/Collar MMBtu/D
---------------- ------- ---------------- ------- ---------------- ------- ---------------- -------
CIG $0.62 120,000 $0.59 46,703 $0.65 75,000 $0.68 161,196
NWPRM $0.20 15,000 $0.20 15,000 $0.38 25,000 $0.38 25,000
------- ------- ------- -------
Total 135,000 61,703 100,000 186,196
======= ======= ======= =======
Notes:
- ------
MMBtu/D = million British thermal units per day
NWPRM = Northwest Pipeline Rocky Mountain Index
Hedges attributed to Westport and hedges applicable to the Westport merger are
included as of third quarter 2004.
For further disclosure regarding accounting treatment of derivatives, please
refer to the Quarterly Report on Form 10-Q for the second quarter 2004, filed on
August 6, 2004.
(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.
** 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.
Kerr-McGee Corporation
Oil and Gas Derivatives
As of September 2004
2005 2006
------------------------- -------------------------
Full Year Full Year
------------------------- -------------------------
Crude Oil ($/Barrel) Avg Price/Collar BOPD Avg Price/Collar BOPD
---------------- ------- ---------------- -------
Fixed-price swaps (WTI) $29.23 3,000 - -
Fixed-price swaps (Brent) - - - -
Costless collars (WTI) $28.50 - $31.89 14,000 $27.00 - $30.58 19,000
Three-way Collars (NYMEX)$25.00 - $28.23 5,000 $25.00 - $28.65 2,000
Three-way average floor $20.93 $20.88
------- -------
Total 22,000 21,000
======= =======
2005 2006
------------------------- -------------------------
Full Year Full Year
------------------------- -------------------------
Natural Gas ($/MMBtu) (1) Avg Price/Collar MMBtu/D Avg Price/Collar MMBtu/D
---------------- ------- ---------------- -------
Fixed-price swaps (NYMEX) $4.42 55,000 - -
Fixed-price swaps (NWPRM) - - - -
Costless collars (NYMEX) $4.09 - $5.57 60,000 $4.75 - $5.51 340,000
$5.00 - $6.25 280,000
Three-way collars (NYMEX) - - $4.00 - $6.00 20,000
Three-way average floor $3.04
------- -------
Total 395,000 360,000
======= =======
2005 2006
------------------------- -------------------------
Full Year Full Year
------------------------- -------------------------
Basis swaps versus
NYMEX ($/MMBtu)(1) Avg Price/Collar MMBtu/D Avg Price/Collar MMBtu/D
---------------- ------- ---------------- -------
CIG $0.60 59,452 $0.39 20,000
NWPRM $0.49 33,630 $0.20 15,000
------- -------
Total 93,082 35,000
======= =======
Notes:
- ------
MMBtu/D = million British thermal units per day
NWPRM = Northwest Pipeline Rocky Mountain Index
Hedges attributed to Westport and hedges applicable to the Westport merger are
included as of third quarter 2004.
For further disclosure regarding accounting treatment of derivatives, please
refer to the Quarterly Report on Form 10-Q for the second quarter 2004, filed on
August 6, 2004.
(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.
** 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.