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KOCH TO BUY KERR-MCGEE'S TEXAS REFINERY

June 19, 1995

Koch Refining Co. L.P. has signed a definitive agreement to buy Kerr-McGee Corp.'s 104,000 b/d Corpus Christi, Tex., refinery. The acquisition, which continues Koch's significant expansion of its South Texas operations, is expected to close in August. Koch Refining & Chemical Group Pres. Cy Nobles said his company plans to consolidate Kerr-McGee's operations with Koch's existing downstream operations to capitalize on increased production opportunities for light refined

Koch Refining Co. L.P. has signed a definitive agreement to buy Kerr-McGee Corp.'s 104,000 b/d Corpus Christi, Tex., refinery.

The acquisition, which continues Koch's significant expansion of its South Texas operations, is expected to close in August.

Koch Refining & Chemical Group Pres. Cy Nobles said his company plans to consolidate Kerr-McGee's operations with Koch's existing downstream operations to capitalize on increased production opportunities for light refined products, chemicals, residual fuels, and asphalt.

SOUTH TEXAS EXPANSION

Koch Refining has invested more than $1 billion in its South Texas operations the past 14 years. Among those investments are:

The 1981 acquisition of Sun Oil's Corpus Christi refinery. Koch has increased employment at the refinery to nearly 1,000 from 450 and processing capacity to 230,000 b/d from 60,000 b/d.
The 1982 acquisition of the adjacent 40,000 b/d Gulf States refinery at Corpus Christi. Koch combined it with its existing plant to enhance operating efficiencies and optimize production.
The 1990 construction of a major fuel products pipeline from Corpus Christi to Dallas-Fort Worth. Pipeline terminals associated with this project were built in San Antonio, Austin, Waco, and Dallas-Fort Worth.
The 1993 completion of new paraxylene production and water treatment facilities at Corpus Christi. The paraxylene expansion has made Koch the largest single-site merchant producer of paraxylene in the world.
The 1994 completion of a mid-plant refining complex in Corpus Christi with a capacity to process 150,000 b/d. This major expansion included installation of best available control technology to limit emissions.
The 1995 acquisition of 1,400 miles of crude oil pipelines from Exxon Pipeline Co. The newly acquired tines will be integrated into Koch's pipeline system to serve customers more efficiently and flexibly.
The current expansion of the Texas Pipeline from Corpus Christi to Dallas-Fort Worth. The expansion will add as much as 80,000 b/d of refined products pipeline capacity into the Dallas-Fort Worth market.