8-K

                       SECURITIES AND EXCHANGE COMMISSION

                             Washington, D.C. 20549



                                    Form 8-K


                                 CURRENT REPORT



                     Pursuant to Section 13 or 15(d) of the

                         Securities Exchange Act of 1934




                                January 14, 1999
               (Date of Report - Date of earliest event reported)





                             KERR-MCGEE CORPORATION
             (Exact name of registrant as specified in its charter)


   Delaware                         1-3939                     73-0311467 
  (State of                (Commission File Number)          (IRS Employer
Incorporation)                                             Identification No.)



           Kerr-McGee Center
        Oklahoma City, Oklahoma                                  73125  
(Address of principal executive offices)                      (Zip Code)



                                 (405) 270-1313
                         (Registrant's telephone number)





Item 5.  Other Events

     Kerr-McGee  Corporation  announced it is budgeting $545 million for capital
spending in 1999,  following  the  completion  of the  proposed  merger  between
Kerr-McGee and Oryx Energy Company.

     Kerr-McGee  also  announced it would take a non-cash,  after-tax  charge of
$250  million in the fourth  quarter of 1998 related  primarily  to  write-downs
resulting from low oil and natural gas prices.

     As a result of the  proposed  merger  with Oryx,  the  Kerr-McGee  board of
directors  voted to rescind the $300 million stock  repurchase  program that was
announced in July 1998.


Item 7.  Financial Statements, Pro Forma Financial Information and Exhibits

         (c)     Exhibits

         99.1    News Release dated  January 14,  1999,  announcing Kerr-McGee's
                 capital budget for 1999, a fourth quarter 1998 asset impairment
                 write-down  and the rescission of its stock repurchase program.



                                   SIGNATURES

         Pursuant to the  requirements  of the Securities  Exchange Act of 1934,
the  registrant  has duly  caused  this report to be signed on its behalf by the
undersigned hereunto duly authorized.


                                                  KERR-MCGEE CORPORATION


                                         By:      (Deborah A. Kitchens)
                                                   Deborah A. Kitchens
                                                   Vice President and Controller

Dated:        January 19, 1999

EX-99

                                  EXHIBIT INDEX


Exhibit No.            Description

     99.1   News Release dated January 14, 1999, announcing Kerr-McGee's capital
            budget for 1999, a fourth  quarter 1998  asset impairment write-down
            and the rescission of its stock repurchase program.

EX-99.1

                                                                    Exhibit 99.1


                  Kerr-McGee Announces Capital Budget for 1999

     OKLAHOMA CITY (Jan.  14, 1999) - Kerr-McGee  Corp.  (NYSE:  KMG)  announced
plans for its 1999 capital expenditure  budget,  following the completion of the
proposed  merger between  Kerr-McGee  and Oryx Energy  Company (NYSE:  ORX). The
corporation is budgeting $545 million for capital  expenditures in 1999, about a
45% decrease from the companies' combined 1998 capital expenditures.
     After completion of the proposed merger, the capital budget for exploration
and  production  in 1999 will be $430 million.  Of this amount,  $140 million is
allocated to the North Sea,  $160 million to the Gulf of Mexico,  $65 million to
U.S. onshore, and $65 million to other international areas.
     The merged  company's  daily  production  volumes for 1999 are estimated at
approximately 190,000 barrels of oil and approximately 580 million cubic feet of
natural gas.
     Capital  expenditures for chemical  operations are budgeted at $110 million
in 1999.  This  includes  funds to  complete a $57  million  expansion  that was
started  last  year  at the  company's  titanium  dioxide  pigment  facility  in
Hamilton,  Miss. This expansion,  with completion expected in the third quarter,
will increase the facility's annual production  capacity to 178,000 metric tons.
The Hamilton  pigment  facility  represents  approximately  50% of  Kerr-McGee's
pigment  production  capacity  and ranks as the  third-largest  chloride-process
titanium dioxide pigment plant in the United States.
     The remaining $5 million will be corporate capital expenditures.
     Kerr-McGee  also  announced it would take a non-cash,  after-tax  charge of
$250  million  in the fourth  quarter  of 1998,  in  accordance  with  Financial
Accounting  Standard 121. The  write-down is primarily a result of continued low
oil and natural gas prices.
     As a result of the proposed merger, the Kerr-McGee board of directors voted
to rescind the $300 million stock repurchase  program that was announced in July
1998.
     Kerr-McGee Corp. is an Oklahoma City-based energy and chemical company with
worldwide  operations and assets of $3.7 billion.  This capital budget will only
be implemented  upon  completion of the proposed  merger with Oryx. The proposed
transaction is subject to approval by the  shareholders of both  companies,  and
completion is anticipated in the first quarter of 1999.
                                      # # #

CONTACT: Debbie Schramm
         (405) 270-2877

99-04