Kerr-McGee reports net income for the 2005 third quarter of $359.3 million ($3.09 per diluted common share), compared with $7.4 million ($.05 per share) for the 2004 third quarter. The company's 2005 third-quarter adjusted after-tax income was $294.1 million ($2.53 per share), compared with $143.0 million ($.95 per share) for the third quarter of 2004. Adjusted after-tax income is determined by excluding from net income results from discontinued operations (primarily North Sea operations) and other items.(1) Adjusted
after-tax income for the 2005 third quarter increased $151.1 million from the 2004 quarter, primarily due to higher oil and natural gas sales prices and lower exploration costs. This increase was partially offset by the effect of lower oil and gas sales volumes due to recent hurricanes, higher lifting costs, losses on nonhedge derivatives and hedge ineffectiveness. Results of the company's North Sea oil and gas business, including the gain on sale of the
company's interests in certain nonoperated oil and gas properties in the North Sea, are reported as income from discontinued operations for all periods presented.