End of OKC-based Kerr-McGee's battle with Icahn called a victory for

Journal Record, The (Oklahoma City), Apr 19, 2005 by Jerry Shottenkirk

When financier Carl Icahn dropped his proxy challenge with Kerr- McGee last week, it was a victory for the community, according to energy officials.

Devon and Chesapeake officials, along with other major players locally, lent their support to Kerr-McGee through correspondence.

It was very encouraging and reaffirming to read the letters and hear the words of support from people throughout community - business leaders, elected officials, friends, neighbors and citizens, Kerr-McGee Chairman and Chief Executive Luke Corbett said Monday. We respect and appreciate this state and our community, and it's great to know those feelings are reciprocated.

Devon CEO J. Larry Nichols, who addressed the Society of Petroleum Engineers on Monday, said afterward that it was a favorable result for the area.

In Oklahoma City and Oklahoma, we need more public corporations, not less, Nichols said. Where companies are headquartered is where they tend to make their charitable contributions and it's where they tend to be more active and supportive of the community. Rather than three large public (energy) corporations in Oklahoma, I wish we had twice that or triple that. I thought it was appropriate for the other two here to provide moral support for our colleague.

Tom Price, Chesapeake vice-president of investor and government relations, said everyone on the local corporate scene watched with interest.

There was anxiety for those involved in energy or with any public company, Price said. There was concern as to what impact a successful takeover would have on a sister oil and gas company. Kerr- McGee is a great contributor to the state of Oklahoma. Carl Icahn has a history, but we don't know a lot about him, how many people he employs, or what he does with his money. Are there charitable contributions he makes? What is he doing to make people around him better?.

My sense is that he's interested in having more money, Price added. He invests for today, and that may not be in the interest of all shareholders. Kerr-McGee is an excellent community asset.

Corbett said the support within the company also was a factor during the proxy battle.

Kerr-McKee has been in business for 76 years, and that's primarily because of our talented, committed and determined employees, Corbett said.

Through the last few weeks, our employees have truly stepped up to the challenge and maintained their focus on achieving our objectives. I say it often - we're a good company, with great people and a lot left to be done.