The attached is being filed  pursuant to Rule 425 under the  Securities Act
of  1933  and is part of  "Endeavors,"  a  quarterly  publication  that  will be
distributed to employees and selected  external  audiences.  The attached is the
section that discusses the company's  acquisition  of HS Resources.  It does not
constitute an offer for the sale of  securities.  Shareholders  of HS Resources,
Inc. and other investors are urged to read the proxy statement/prospectus in the
registration  statement on Form S-4 filed on May 30, 2001 by Kerr-McGee  Holdco,
Inc.  in  connection  with the  merger  and all the  amendments  thereto.  These
materials  will  contain  important   information  about  HS  Resources,   Inc.,
Kerr-McGee  Corporation,  the merger,  the people soliciting proxies relating to
the merger, their interests in the merger and related matters.

     In   addition  to  the   registration   statement   containing   the  proxy
statement/prospectus filed in connection with the merger, HS Resources, Inc. and
Kerr-McGee  file annual,  quarterly and special  reports,  proxy  statements and
other information with the Securities and Exchange Commission.  You may read and
copy any reports, statements or other information filed by HS Resources, Inc. or
Kerr-McGee  Corporation at the SEC Public  Reference  Rooms at 450 Fifth Street,
N.W., Washington, D.C. 20549 or at any of the SEC's other public reference rooms
in New York and  Chicago.  Please  call the SEC at (800)  SEC-0330  for  further
information  on the public  reference  rooms.  Kerr-McGee  Corporation's  and HS
Resources,  Inc.'s  filings  with the SEC are also  available to the public from
commercial document-retrieval services and at the web site maintained by the SEC
at www.sec.gov.  Free copies of the proxy statement/prospectus,  and these other
documents  may also be obtained from  Kerr-McGee by directing a request  through
the investor  relations portion of Kerr-McGee's  website at Kerr-McGee.com or by
mail to Kerr-McGee  Corporation,  Investor Relations,  P.O. Box 25861,  Oklahoma
City, OK 713125.

     Statements  in  this  document  regarding  the  company's  or  management's
intentions,  beliefs or expectations including the number of ultimate prospects,
timing and order for drilling  prospects,  timing of  installation of production
facilities  and first  production  and  timing of  completion  of the merger are
"forward-looking  statements"  within the meaning of the  Securities  Litigation
Reform Act. Future results and developments discussed in these statements may be
affected by numerous factors and risks,  such as the accuracy of the assumptions
that  underlie  the  statements,  the  risk  that  the  businesses  will  not be
integrated  successfully,  the  success  of the  oil  and  gas  exploration  and
production program,  the price of oil and gas, drilling risks,  uncertainties in
interpreting   engineering   data,   demand  for  consumer  products  for  which
Kerr-McGee's  oil and gas business  supplies  raw  materials,  general  economic
conditions,  and other factors and risks discussed in the company's SEC filings.
Actual results and  developments  may differ  materially from those expressed or
implied in this document.



     This first issue of Kerr-McGee's  new magazine  features major endeavors in
three main regions of our company's oil and gas business: onshore United States,
the Gulf of Mexico and the North Sea. We also highlight some of the end products
of our chemical business.
     Balancing  our  portfolio  of  worldwide  oil and gas  assets is an ongoing
effort.  We  look  at  the  oil-gas  ratio  of  our  reserve  base,   geographic
distribution  of our  assets  and  potential  reward  versus  risk.  In May,  we
announced an  acquisition  valued at $1.7 billion that will greatly enhance this
balance.  In a transaction  expected to close in the third  quarter,  Kerr-McGee
will acquire HS Resources, a natural gas producer.
     The acquisition  will add 1.3 trillion cubic feet of natural gas equivalent
in proved reserves,  increasing  Kerr-McGee's U.S. gas reserves by 77% and daily
U.S. gas production by 45%. The  geographic  balance will tilt toward the United
States  after the  acquisition,  increasing  domestic  reserves  to 51% of total
reserves.
     In addition,  we will create a new core area of operations  for our company
in one of the nation's  fastest-growing  markets, at a time of rising demand for
natural gas. Nearly all of the proved  reserves  involved in the transaction are
concentrated in the Wattenberg  field northeast of Denver.  The very low risk of
exploiting  these   well-defined   resources  will  balance  our  high-potential
deepwater  exploration program and reduce Kerr-McGee's average cost of producing
a barrel of oil equivalent by about 6%.
     Clearly, this acquisition will add value for our company. We also add value
by bringing  large  projects on stream very quickly in core areas.  In the North
Sea, the multifield  Leadon  development is scheduled to start  production  late
this year, less than two years after we drilled the discovery  well.  Kerr-McGee
has 100%  interest in the  Leadon-area  fields  located in a familiar  North Sea
quadrant where we have operated for 16 years.
     In the Gulf of Mexico,  we are developing the deepwater Nansen and Boomvang
fields with  innovative  truss spar  production  systems.  When installed only 9
miles apart in about 3,700 feet of water, these spars will form the hub of a new
operating area for our company.  We have identified other exciting  prospects on
nearby leases. With infrastructure in place, future discoveries can be developed
even faster and at lower cost.
     In our chemical  business,  we focus on titanium  dioxide,  a white pigment
that most of us see, touch and eat every day. It's in paint, plastics, paper and
many products  found on grocery store shelves.  Kerr-McGee  markets about 16% of
the  titanium  dioxide  pigment  used around the world.  In all of  Kerr-McGee's
operations,  nothing  is more  important  than  the  safety  of  people  and the
protection of the natural environment.  I take great pride in the recognition we
have  earned  in these  areas  and  congratulate  our  employees  on their  many
achievements.  Two of our  most  recent  safety  and  environmental  honors  are
featured in this publication.

Luke R. Corbett
Chairman and Chief Executive Officer



PORTFOLIO BALANCE

     $1.7 billion  acquisition to increase  Kerr-McGee's  natural gas production
and reserves

     In the Wattenberg field northeast of Denver, formations rich in natural gas
underlie farmland and rolling prairie.  For nearly 20 years, the field's largest
operator,  HS  Resources,  has  been  building  ownership  and  an  unparalleled
understanding of the field's gas-bearing sands by methodically analyzing data on
thousands of wells. The company's  technical and operational people know exactly
what to expect when drilling a new well or  recompleting  an existing one to tap
additional  reserves.  Their approach has made field exploitation and production
as predictable as an efficient manufacturing operation.
     For  Kerr-McGee,  this  unique  operation  represented  a  very  attractive
opportunity  to increase  domestic  natural gas reserves and  production  and to
balance its overall oil and gas portfolio.  On May 14, the company  announced an
agreement  to  acquire  HS  Resources  in a deal  valued  at $1.7  billion.  The
transaction  - subject to approval by HS Resources  stockholders  and  customary
closing conditions - is expected to close in the third quarter.
     "An amazing  number of  opportunities  are  available  in this field," said
Lonny Towell,  Kerr-McGee vice president of acquisitions.  "That's what makes it
such a valuable addition to our portfolio. HS Resources has identified more than
10,000 projects to optimize future value. These include new wells,  deepening of
existing  wells,  recompletions  and  stimulating  production  by  fracturing  a
producing  formation.  Each is defined  precisely  on a  schedule  that shows in
detail the work required, the costs and the expectations.  They're accomplishing
500 to 600 of these per year."
     To enhance  operating  and cost  control,  HS  Resources  has  extended its
operations  to field  services,  gas  gathering  and gas  processing  in an area
covering  more than 600 square  miles.  The wells are  producing  from up to six
reservoirs 4,000 to 8,000 feet below the surface.
     "HS  Resources  can  move  quickly  because  they use  both  their  own and
contractors'  equipment,"  Towell said. "They are relentless in their efforts to
control costs.  Rather than shopping for the standard,  they set the standard in
well service."
     The predictable  geology,  the very low risk and the proved reserves of 1.3
trillion  cubic feet of  natural  gas  equivalent  involved  in the  transaction
provide the right balance for Kerr-McGee's  reserve base and extensive portfolio
of high-potential deepwater and international  prospects.  Kerr-McGee's reserves
currently consist of 64% oil and 36% natural gas. Upon closing of the deal, this
ratio will change to 57% oil, 43% natural gas. In the  critical  North  American
market,  Kerr-McGee's natural gas production will increase to 59% of the product
mix as domestic gas sales rise by more than 45%.
     "This  acquisition will increase the life of Kerr-McGee's  domestic natural
gas reserves by about two years," said Kenneth  Crouch,  senior vice  president,
oil and gas  exploration  and  production.  "The  Wattenberg  assets  offer  the
potential  to add more than 800  billion  cubic  feet of gas from  probable  and
possible  reserves.  In  addition,  HS Resources  has a  successful  exploration
program  along  the gulf  coast of Texas  and  Louisiana  that  will  supplement
Kerr-McGee's  existing onshore  operations in that area."  Kerr-McGee's  onshore
group  is  operating   primarily  in  Texas,  New  Mexico  and  Oklahoma.   "The
exploitation of the Wattenberg field reflects a remarkable level of efficiency,"
Crouch  said.  "The  employees  of HS  Resources  will  bring  valuable,  highly
specialized  expertise  to our  onshore  operations,  and  we  look  forward  to
welcoming them into Kerr-McGee.



The operations of HS Resources are concentrated in the Wattenberg field of the
Denver-Julesburg basin and in the gulf coast region.


Forward-Looking Information

This publication contains forward-looking  statements regarding the company's or
management's  intentions,  beliefs or  expectations  within  the  meaning of the
Securities  Litigation Reform Act. Future results and developments  discussed in
these  statements  may be affected by  numerous  factors and risks,  such as the
accuracy of the assumptions that underlie the statements, the success of the oil
and gas exploration and production program,  drilling risks, the market value of
Kerr-McGee's  products,  uncertainties in interpreting  engineering data, demand
for consumer  products for which  Kerr-McGee's  businesses supply raw materials,
general  economic  conditions,  and other  factors  and risks  discussed  in the
company's SEC filings.  Actual results and  developments  may differ  materially
from those expressed or implied in this document.

This publication also contains  information about the proposed acquisition of HS
Resources,  Inc., by Kerr-McGee in a transaction involving the creation of a new
holding  company.  Investors  are urged to read the S-4  Registration  Statement
filed by the newly created holding company,  Kerr-McGee  Holdco,  Inc., with the
Securities and Exchange Commission.