SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 11-K
ANNUAL REPORT
Pursuant to Section 15(d) of the Securities Exchange Act of 1934
For the Year Ended December 31, 1998
Commission File Number 1-3939
Kerr-McGee Corporation Savings Investment Plan
(full title of the Plan)
Kerr-McGee Corporation
Kerr-McGee Center
Oklahoma City, Oklahoma 73102
(Name of the issuer of the securities held pursuant to
the Plan and address of its principal executive office)
<PAGE>
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
To the Kerr-McGee Corporation Benefits Committee:
We have audited the accompanying Statement of Net Assets Available for
Benefits of the KERR-McGEE CORPORATION SAVINGS INVESTMENT PLAN (the Plan) as of
December 31, 1998 and 1997, and the related Statement of Changes in Net Assets
Available for Benefits for the year ended December 31, 1998. These financial
statements and the schedules referred to below are the responsibility of the
Plan's management. Our responsibility is to express an opinion on these
financial statements and schedules based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audits to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present
fairly, in all material respects, the net assets available for benefits as of
December 31, 1998 and 1997, and the changes in the net assets available for
benefits for the year ended December 31, 1998, in conformity with generally
accepted accounting principles.
Our audits were performed for the purpose of forming an opinion on the
basic financial statements taken as a whole. The supplemental Schedule of Assets
Held for Investment Purposes as of December 31, 1998, and the supplemental
Schedule of Reportable Transactions for the year ended December 31, 1998, are
presented for purposes of additional analysis and are not a required part of the
basic financial statements but are supplementary information required by the
Department of Labor's Rules and Regulations for Reporting and Disclosure under
the Employee Retirement Income Security Act of 1974. The fund information in the
Statement of Net Assets Available for Benefits and Statement of Changes in Net
Assets Available for Benefits is presented for purposes of additional analysis
rather than to present the net assets available for benefits and the changes in
net assets available for benefits of each fund. The supplemental schedules and
fund information have been subjected to the auditing procedures applied in the
audits of the basic financial statements and, in our opinion, are fairly stated
in all material respects in relation to the basic financial statements taken as
a whole.
(ARTHUR ANDERSEN LLP)
ARTHUR ANDERSEN LLP
Oklahoma City, Oklahoma,
June 16, 1999
<PAGE>
<TABLE>
KERR-MCGEE CORPORATION SAVINGS INVESTMENT PLAN
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS
December 31, 1998
(Thousands of dollars)
<CAPTION>
Putnam Putnam
Putnam Putnam Putnam Bal- Conser-
Kerr- Putnam Growth Interna- Putnam Growth anced vative
McGee Putnam Stable Putnam & tional S&P Port- Port- Port-
Stock Income Value Vista Income Growth 500 folio folio folio Loan
Fund Fund Fund Fund Fund Fund Fund Fund Fund Fund Account Total
------- ------ ------- ------ ------- -------- ------ ------ ------ ------- ------- ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
ASSETS:
Investments, at fair value:
Kerr-McGee Corporation
Common Stock $38,580 $ $ $ $ $ $ $ $ $ $ $ 38,580
Putnam Income Fund 1,789 1,789
Putnam Stable Value Fund 17,486 17,486
Putnam Vista Fund 26,209 26,209
Putnam Growth and
Income Fund 31,255 31,255
Putnam International
Growth Fund 4,942 4,942
Putnam S&P 500 Index
Fund 8,693 8,693
Putnam Asset Allocation
Growth Fund 1,844 1,844
Putnam Asset Allocation
Balanced Fund 4,052 4,052
Putnam Asset Allocation
Conservative Fund 885 885
Loans to participants 6,332 6,332
Short-term investments 162 162
------- ------ ------- ------- ------- ------ ------ ------ ------ ---- ------ --------
Total Investments 38,742 1,789 17,486 26,209 31,255 4,942 8,693 1,844 4,052 885 6,332 142,229
Dividends receivable 460 460
Receivable from
investments sale 35 35
Other assets 17 17
------- ------ ------- ------- ------- ------ ------ ------ ------ ---- ------ --------
Total Assets 39,254 1,789 17,486 26,209 31,255 4,942 8,693 1,844 4,052 885 6,332 142,741
------- ------ ------- ------- ------- ------ ------ ------ ------ ---- ------ --------
LIABILITIES:
Purchases pending
settlement 158 158
------- ------ ------- ------- ------- ------ ------ ------ ------ ---- ------ --------
NET ASSETS AVAILABLE
FOR BENEFITS $39,096 $1,789 $17,486 $26,209 $31,255 $4,942 $8,693 $1,844 $4,052 $885 $6,332 $142,583
======= ====== ======= ======= ======= ====== ====== ====== ====== ==== ====== ========
The accompanying notes are an integral part of this statement.
</TABLE>
<PAGE>
<TABLE>
KERR-MCGEE CORPORATION SAVINGS INVESTMENT PLAN
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS
December 31, 1997
(Thousands of dollars)
<CAPTION>
Putnam Putnam
Putnam Putnam Putnam Bal- Conser-
Kerr- Putnam Growth Interna- Putnam Growth anced vative
McGee Putnam Stable Putnam & tional S&P Port- Port- Port-
Stock Income Value Vista Income Growth 500 folio folio folio Loan
Fund Fund Fund Fund Fund Fund Fund Fund Fund Fund Account Total
------- ------ ------- ------- ------- -------- ------ ------ ------ ------- ------- ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
ASSETS:
Investments, at fair value:
Kerr-McGee Corporation
Common Stock $62,894 $ $ $ $ $ $ $ $ $ $ $ 62,894
Putnam Income Fund 1,928 1,928
Putnam Stable Value Fund 26,758 26,758
Putnam Vista Fund 29,698 29,698
Putnam Growth and
Income Fund 40,193 40,193
Putnam International
Growth Fund 5,262 5,262
Putnam S&P 500 Index
Fund 4,484 4,484
Putnam Asset Allocation
Growth Fund 1,697 1,697
Putnam Asset Allocation
Balanced Fund 5,122 5,122
Putnam Asset Allocation
Conservative Fund 420 420
Loans to participants 10,654 10,654
Short-term investments 17 17
------- ------ ------- ------- ------- ------ ------ ------ ------ ---- ------ --------
Total Investments 62,911 1,928 26,758 29,698 40,193 5,262 4,484 1,697 5,122 420 10,654 189,127
Dividends receivable 449 449
Receivable from
investments sale 30 30
Other assets 6 6
------- ------ ------- ------- ------- ------ ------ ------ ------ ---- ------ --------
Total Assets 63,396 1,928 26,758 29,698 40,193 5,262 4,484 1,697 5,122 420 10,654 189,612
------- ------ ------- ------- ------- ------ ------ ------ ------ ---- ------ --------
LIABILITIES:
Purchases pending
settlement 19 19
------- ------ ------- ------- ------- ------ ------ ------ ------ ---- ------ --------
NET ASSETS AVAILABLE
FOR BENEFITS $63,377 $1,928 $26,758 $29,698 $40,193 $5,262 $4,484 $1,697 $5,122 $420 $10,654 $189,593
======= ====== ======= ======= ======= ====== ====== ====== ====== ==== ======= ========
The accompanying notes are an integral part of this statement.
</TABLE>
<PAGE>
<TABLE>
KERR-MCGEE CORPORATION SAVINGS INVESTMENT PLAN
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
For the Year Ended December 31, 1998
(Thousands of dollars)
<CAPTION>
Nonparti-
pant-
Directed Participant-Directed
-------- -------------------------------------------------------------------------------------------------
Putnam
Putnam Con-
Putnam Putnam Putnam Bal- serva-
Kerr- Kerr- Putnam Growth Interna- Growth anced tive
McGee McGee Putnam Stable Putnam & tional Putnam Port- Port- Port-
Stock Stock Income Value Vista Income Growth S&P 500 folio folio folio Loan
Fund Fund Fund Fund Fund Fund Fund Fund Fund Fund Fund Account Total
------- ------- ------ ------- ------- ------- ------- ------ ------ ------ ----- ------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Investment income (loss):
Dividends $ 460 $ 1,363 $ 142 $ 1,356 $ 1,922 $ 3,005 $ 148 $ - $ 49 $ 145 $ 40 $ - $ 8,630
Interest - 125 12 43 69 93 37 81 43 40 6 - 549
Net appreciation
(depreciation) of
investments (6,298) (18,642) (69) (2) 2,483 1,598 659 1,653 110 290 3 - (18,215)
------- ------- ------ ------- ------- ------- ------ ------ ------ ------ ---- ------- --------
Total investment
income (loss) (5,838) (17,154) 85 1,397 4,474 4,696 844 1,734 202 475 49 - (9,036)
Employee contributions - 2,599 305 784 1,968 2,532 965 2,208 922 898 208 - 13,389
Distributions to
terminating and
withdrawing
participants (7,487) (4,600) (922) (8,979) (8,013)(11,088) (1,582) (2,764) (904) (1,578) (483) (2,963) (51,363)
Loans to participants,
net of repayments - (52) 17 (208) 70 212 231 579 216 257 37 (1,359) -
Transfers (to) from
other funds - 8,251 376 (2,266) (1,988) (5,290) (778) 2,452 (289) (1,122) 654 - -
------- ------- ------ ------- ------- ------- ------ ------ ------ ------ ---- ------- --------
Increase (decrease)
in net assets (13,325) (10,956) (139) (9,272) (3,489) (8,938) (320) 4,209 147 (1,070) 465 (4,322) (47,010)
Net assets available
for benefits:
Beginning of year 23,224 40,153 1,928 26,758 29,698 40,193 5,262 4,484 1,697 5,122 420 10,654 189,593
------- ------- ------ ------- ------- ------- ------ ------ ------ ------ ---- ------- --------
End of year $ 9,899 $29,197 $1,789 $17,486 $26,209 $31,255 $4,942 $8,693 $1,844 $4,052 $885 $ 6,332 $142,583
======= ======= ====== ======= ======= ======= ====== ====== ====== ====== ==== ======= ========
The accompanying notes are an integral part of this statement.
</TABLE>
<PAGE>
KERR-McGEE CORPORATION SAVINGS INVESTMENT PLAN
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1998 AND 1997
(1) DESCRIPTION OF THE PLAN
General -
The Kerr-McGee Corporation Savings Investment Plan (the Plan) is a
defined contribution plan in which eligible employees of Kerr-McGee
Corporation and its affiliated companies (collectively referred to as
the Company) may participate. The Plan and the trust established
thereunder (the Trust) were executed on September 26, 1975, and became
fully effective on January 1, 1976.
The Plan allows participants to defer taxable earnings through
contributions to the Plan as provided for under Section 401(k) of the
Internal Revenue Code (the Code), and to borrow from their accounts
within the Plan.
The Plan is administered by the Kerr-McGee Corporation Benefits
Committee (the Committee), which is appointed by the Board of Directors
of the Company. Accounting and administration for the Plan are provided
by the Company at no cost to the Plan. In addition, all expenses of the
Trust are borne by the Company. During 1998, the Company paid $46,000
of administrative and trust expenses
The Company intends to continue the Plan indefinitely, but reserves the
right to alter, amend, modify, revoke or terminate the Plan at any time
upon the direction of the Company's Board of Directors. If the Plan is
terminated for any reason, the Committee will direct that the
participants' account balances be distributed as soon as practical. The
Company has no continuing liability under the Plan after the final
disposition of the assets of the Plan.
Effective January 1, 1990, all employer matching contributions are made
to the Employee Stock Ownership Plan (ESOP), which was established in
September 1989. All matching contributions are invested in Kerr-McGee
Corporation common stock. The ESOP is not part of the Plan; therefore,
the employer contributions to the ESOP and the ESOP assets and earnings
are not included in the Plan's accompanying financial statements. The
maximum Company matching contribution is 6% of salary, and the maximum
employee contribution is 15% of salary. Employees are allowed to
participate in the Plan from their initial date of employment. Company
contributions vest on the basis of 20% for each completed year of
vesting service. Vesting service is completed years of Company service
reduced in certain limited situations.
Prior to January 1, 1990, employer matching contributions were made
into the Plan and invested in Kerr-McGee Corporation common stock. The
1998 activity related to these contributions is shown as
nonparticipant-directed in the Kerr-McGee Stock Fund in the
accompanying Statement of Changes in Net Assets Available for Benefits.
The participants' contributions to the Plan and earnings thereon are
fully vested at all times. For both years ended December 31, 1998 and
1997, the participants' share of the Company contributions and earnings
thereon were fully vested. Each participant's account is credited with
the participant's contributions and an allocation of Plan earnings.
Allocations are based on the rate of return of participant earnings on
elected investment options. With the exception of the Kerr-McGee Stock
Fund, participants designate how their balances are invested in any one
or more of several investment options.
On termination of service due to death, disability, or retirement,
a participant or participant's beneficiary may elect to receive an
amount equal to the value of the participant's account. The normal form
of such distribution is a single lump sum payment; however, certain
eligible members may elect to have an annuity purchased from an
insurance company in lieu of a lump sum payment. Terminating
participants with more than $5,000 in the Plan may defer distribution
until age 70 1/2. Investments relating to these participants remain
in the Trust until the terminated participant requests distribution.
Participants who defer distribution continue to share in earnings and
losses of the Plan.
The following is a description of the investment options available
under the Plan at December 31, 1998 :
Kerr-McGee Stock Fund - common stock of the Company.
Income Fund - debt securities including both government and
corporate obligations, preferred stocks and dividend paying
common stock.
Stable Value Fund - primarily investments in contracts issued
by insurance companies, banks and similar financial
institutions.
Vista Fund - shares of stock in companies believed to have the
potential for above-average growth.
Growth and Income Fund - primarily stocks of mature companies
that offer long-term growth while providing income.
International Fund - primarily stocks and bonds of companies
and governments outside of the United States.
S&P 500 Fund - mirrors the performance and composition of
Standard & Poor's 500 Composite Index through investments in
common stocks.
Growth Portfolio - asset allocation for capital appreciation
typically consisting of 80% domestic and international stocks
and 20% bonds and money market investments.
Balanced Portfolio - asset allocation for total return
typically consisting of 65% domestic and international stocks
and 35% bonds and money market investments.
Conservative Portfolio - asset allocation for capital
preservation typically consisting of 35% domestic and
international stocks and 65% bonds and money market
investments.
The Kerr-McGee Stock Fund is the only fund consisting of both
participant-directed contributions and nonparticipant-directed company
matching contributions as follows:
Participant- Company Total
(Dollars in thousands) Directed Matching Fund
------------ ---------- ----------
1998
----
Market Value $ 29,197 $ 9,899 $ 39,096
Shares 753,924 254,700 1,008,624
1997
----
Market Value $ 42,564 $ 20,330 $ 62,894
Shares 672,273 321,110 993,383
The Putnam Stable Value Fund investment option is a collective
investment trust that invests in various investment contracts. This
investment option is fully benefit-responsive and is, therefore,
recorded at contract value in the accompanying Statements of Net Assets
Available for Benefits. Contract value represents the principal balance
of the fund, plus accrued interest at the stated contract rate, less
payments received and contract charges by the fund manager. The
crediting interest rate is based on the average rates of the underlying
investment contracts. The average yield of this fund for the year
ended December 31, 1998 was 5.8%. The crediting interest rate at
December 31, 1998, the Putnam Stable Value Fund's fiscal year-end, was
6.1%. The fair value of the fund approximates contract value at
December 31, 1998.
SMART and CAPITAL Savings Programs -
All participants participate in the Plan under the SMART and CAPITAL
Savings Programs. Participants may direct their savings, up to a
maximum of 15% of salary, to be invested in 1% increments among one or
more of the funds provided for under the Plan. An unlimited number of
transfers are allowed between funds.
Contributions to the SMART Savings Program are from a participant's
salary, before income taxes. The participant's income taxes on the
pre-tax contributions are deferred until the contributions are
distributed after termination, at the time of hardship withdrawal, or
under minimum distribution rules at age 70 1/2. The annual SMART
Savings Program contribution limitation is subject to annual
adjustments for inflation and was $10,000 for 1998 in accordance with
the Code. Participant contributions in excess of this amount are
considered to be contributions to the CAPITAL Savings Program.
Contributions to the CAPITAL Savings Program are from a participant's
salary, after income taxes. If a participant has authorized less than
15% of their salary to be contributed to the SMART Savings Program,
they may contribute the remaining whole percentages up to 15% to the
CAPITAL Savings Program. Participant contributions may be invested in
the same proportions and the same funds as outlined above for the SMART
Savings Program. The maximum contributions allowed to each program may
be limited for highly compensated employees, depending upon the balance
of contributions at all levels.
Participants may borrow from the Plan against their contributions to
the SMART and CAPITAL Savings Programs and against their vested
interest in Company matching contributions, held in the SIP. By
administrative rule established by the Committee, new loans to
participants bear interest at a fixed rate equal to the national
average interest rate for five-year certificates of deposit (as
published in The Wall Street Journal), plus 1.5%. Such interest is
credited to the participant's accounts in the Plan when repaid. The
average interest rate for new loans, which is adjusted quarterly, was
6.7% for 1998. The minimum loan amount, determined periodically by the
Committee, is currently $1,000. The maximum amount of all loans to a
participant under the Plan and any other plans of any employer may not
exceed the lesser of (a) $50,000, reduced by an amount equal to the
difference between (i) the participant's highest loan balance under the
Plan during the one-year period ending on the day before the date on
which such loan is made and (ii) the outstanding loan balance of the
participant under the Plan on the date on which such loan was made or
(b) one-half the current value of the participant's vested interest in
their accounts. Loans must be repaid within five years from the initial
date of the loan, with certain special provisions available for
military reservists called to active duty. In the event of a
participant's termination of employment and subsequent default on the
loan, any outstanding balance will be considered a distribution and
will be taxable to the participant as prescribed by the Code.
(2) SIGNIFICANT ACCOUNTING POLICIES
Basis of Accounting - The financial statements of the Plan are prepared
under the accrual method of accounting.
Use of Estimates - The preparation of financial statements in
conformity with generally accepted accounting principles requires
management to make estimates and assumptions that affect the reported
amounts of net assets available for benefits and changes therein.
Actual results could differ from those estimates as additional
information becomes known.
Investment Valuation and Income Recognition - The Plan's investments
are stated at fair value except for its investment contract which is
valued at contract value (Note 1). Shares of registered investment
companies are valued at quoted market prices which represent the net
asset value of shares held by the Plan at year-end. The Company stock
is valued at its quoted market price. Loans to participants are valued
at cost which approximates fair value. Purchases and sales of
securities are recorded on a trade-date basis. Interest income is
recorded on the accrual basis.
Payment of Benefits - Distributions to terminating and withdrawing
participants are recorded when paid.
(3) TAX STATUS
The Plan is a qualified plan under provisions of Section 401(a) of the
Code and is exempt from Federal income taxes under provisions of
Section 501(a) of the Code. The Plan has been amended since receiving
the latest determination letter, dated April 29, 1996. However, the
Company is of the opinion that the Plan is currently designed and being
operated in compliance with the applicable requirements of the Code.
Therefore, the Company believes the Plan is qualified and continues to
be tax-exempt.
Prior Company contributions and employee contributions to the SMART
Savings Program are not taxed until the receipt of a distribution
pursuant to the terms of the Plan. Taxes on any income earned thereon
are also deferred until the receipt of a distribution.
(4) LOANS TO PARTICIPANTS
Loan activity during 1998 and 1997 is set forth below:
(Thousands of dollars) 1998 1997
--------- --------
Balance at beginning of year $ 10,654 $10,090
New loans 3,628 5,807
Principal repayments (4,987) (4,734)
Loans included as distributions
to terminated participants (2,963) (509)
--------- --------
Balance at end of year $ 6,332 $10,654
========= =======
Interest income applicable to these loans during 1998 was $549,000
which is reported as interest income in the funds to which the
participants are currently contributing.
(5) CONTRIBUTIONS
Contributions to the Plan during 1998 totaled $13,389,000. This total
amount represents contributions made by employees to the SMART and
CAPITAL Savings Programs.
The Company's matching contributions to the ESOP during 1998 totaled
$8,535,000. Common stock of the Company held by the ESOP and allocated
to participant's accounts totaled 1,182,879 shares with a market value
of $45,245,000 at December 31, 1998.
(6) SUBSEQUENT EVENTS
In February 1999, the Company merged with Oryx Energy Company (Oryx).
The total effect of the merger on the Plan and its net assets is not
currently known. Oryx had a defined contribution plan, the Oryx Capital
Accumulation Plan (Oryx CAP), which contained a 401(k) benefit. The
401(k) benefit of the Oryx CAP will be merged into the Plan on August
2, 1999.
In May 1999, three new investment options were added to the plan. The
Vanguard U.S. Growth Fund, Vanguard Windsor II Fund and Vanguard
Balanced Index Fund. Additionally, all Company contributions to the
ESOP beginning January 1999 are 100% vested in participants' accounts.
<PAGE>
<TABLE>
KERR-McGEE CORPORATION SAVINGS INVESTMENT PLAN
LINE 27a - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
(Employer Identification Number 73-0311467)
(Plan Number 007)
DECEMBER 31, 1998
(Thousands of dollars)
<CAPTION>
(b) (c) (e)
Identity of issue, borrower, Description of investment including maturity date, (d) Current
(a)* lessor or similar party rate of interest, collateral, par or maturity value Cost Value
---- ---------------------------- --------------------------------------------------------- --------- -------
<S> <C> <C> <C> <C>
* Kerr-McGee Corporation Common Stock - 1,008,624 shares $47,742 $38,580
* Putnam Investments Putnam Income Fund - 258,566 shares 1,816 1,789
* Putnam Investments Putnam Stable Value Fund - 17,486,519 shares 17,486 17,486
* Putnam Investments Putnam Vista Fund - 2,005,295 shares 23,335 26,209
* Putnam Investments Putnam Growth & Income Fund - 1,525,384 shares 30,667 31,255
* Putnam Investments Putnam Asset Allocation Balanced Fund - 337,409 shares 3,892 4,052
* Putnam Investments Putnam International Growth Fund - 256,990 shares 4,527 4,942
* Putnam Investments Putnam S&P 500 Index Fund - 300,491 shares 7,268 8,693
* Putnam Investments Putnam Asset Allocation Growth Fund - 135,284 shares 1,759 1,844
* Putnam Investments Putnam Asset Allocation Conservative Fund - 85,227 shares 878 885
* Various Participants Participant loans - interest rates from 5.9% to 8.0%,
maturity dates from January 1999 to September 2004 6,332 6,332
* Putnam Investments Collective Short-term Investment Fund 162 162
*Party-in-interest
</TABLE>
<PAGE>
<TABLE>
KERR-McGEE CORPORATION SAVINGS INVESTMENT PLAN
LINE 27d - SCHEDULE OF REPORTABLE TRANSACTIONS
(Employer Identification Number 73-0311467)
(Plan Number 007)
FOR THE YEAR ENDED DECEMBER 31, 1998
(Thousands of dollars)
<CAPTION>
(f) (h)
Expense Current
incurred value
(c) (d) (e) with (g) of asset on (i)
(a) (b) Purchase Selling Lease trans- Cost of transaction Net gain
Identity of party involved Description of asset price price rental action asset date or loss
- -------------------------- -------------------- -------- -------- ------ -------- ------- ----------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Kerr-McGee Corporation Common Stock $22,481 $ - - - $22,481 $22,481 -
Putnam Investments Putnam Stable Value Fund 10,080 - - - 10,080 10,080 -
Putnam Investments S&P 500 Fund 9,482 - - - 9,482 9,482 -
Putnam Investments Putnam Growth & Income Fund 8,836 - - - 8,836 8,836 -
Putnam Investments Putnam Vista Fund 7,276 - - - 7,276 7,276 -
Kerr-McGee Corporation Common Stock - 21,857 - - 20,794 21,857 1,063
Putnam Investments Putnam Vista Fund - 13,251 - - 12,599 13,251 652
Putnam Investments Putnam Growth & Income Fund - 19,373 - - 19,509 19,373 (136)
Putnam Investments Putnam Stable Value Fund - 19,349 - - 19,349 19,349 -
Putnam Investments S&P 500 Fund - 6,926 - - 6,528 6,926 398
</TABLE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Kerr-McGee Corporation Benefits Committee has duly caused this annual report
to be signed by the undersigned thereunto duly authorized.
KERR-McGEE CORPORATION SAVINGS INVESTMENT PLAN
By (JOHN C. LINEHAN)
John C. Linehan
Chairman of the Kerr-McGee Corporation
Benefits Committee
Date: June 30, 1999
EXHIBIT
Consent of Independent Public Accountants
As independent public accountants, we hereby consent to the
incorporation of our report dated June 16, 1999, included in the Kerr-McGee
Corporation Savings Investment Plan 1997 annual report in this Form 11-K, into
the Company's previously filed Form S-8 File No. 333-28235.
(ARTHUR ANDERSEN LLP)
ARTHUR ANDERSEN LLP
Oklahoma City, Oklahoma
June 30, 1999
