U.S. oil producer Continental Resources Inc reported a 19.7% fall in quarterly adjusted profit on Aug. 5 as weaker crude and natural gas prices more than offset a rise in overall production.
Crude prices have come under pressure from fears of slowing global demand and a shortage in takeaway pipeline capacity even though surging shale output has made United States the world's largest crude producer.
U.S. light crude prices averaged $59.91 per barrel in the company's second quarter, 11.8% lower than a year earlier.
The company's average net sales price, excluding hedging, fell to $36.03 per barrel of oil equivalent from $42.16 in the year-ago period.
However, total production rose to 331,414 barrels of oil equivalent per day (boe/d) from 284,059 boe/d a year earlier.
Continental focuses on shale assets in the oil-rich Bakken field of North Dakota and Montana as well as the Scoop and Stack plays in southern Oklahoma.
Adjusted net income fell to $219.1 million, or 59 cents per share, in the second quarter ended June 30, from $272.9 million or 73 cents per share, a year earlier.
For the full year, the company raised the lower end of its oil production outlook by 5,000 bbl/d to 195,000 bbl/d, while keeping the higher end of the outlook unchanged at 200,000 bbl/d.
It also lowered its expenses per barrel of oil equivalent to a range of between $3.50 and $4 from prior forecast of between $3.75 and $4.25.
U.S. pipeline operator Plains All American Pipeline LP expects to begin partial service on its 670,000-barrel-per-day (bbl/d) Cactus II pipeline next week, CEO Willie Chiang said on Aug. 6.
Offshore terminal will be able to handle VLCCs for the export of Permian oil.
New projects will total $170 in improvements to Pasadena and Galena Park terminals.