Kerr-McGee to redeem 7% debentures

New York, Jan. 10 - Kerr-McGee Corp. said it plans to redeem its $250 million of 7% debentures due 2011.

The redemption was authorized by the company's board of directors along with a $1 billion stock repurchase program.

Both activities will be fund from cash on hand an anticipated free cash flow.

"We believe the current stock price does not reflect the value of the company's transformation into a pure-play exploration and production company with two large resource plays in the Rockies, identified production growth and meaningful unbooked discoveries," said Luke R. Corbett, Kerr-McGee chairman and chief executive officer, in a news release.

"The impact of the debt reduction coupled with the stock repurchase enables the company to enhance value for our stockholders while maintaining a strong capital structure."

Kerr-McGee is an Oklahoma City-based oil and gas company.

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