U.S. oil and gas producer Concho Resources Inc. posted a bigger quarterly loss on July 29, hurt by a sharp decline in crude prices as the COVID-19 pandemic hammered global demand for the commodity and its refined products.
U.S. crude plunged to a stunning low of -$38/bbl in April, and remains about 33% lower from January's levels despite a recent rally.
Concho said average realized prices fell 15.1% to $30.57 per boe, from a year ago.
Production for the second quarter stood at 319,000 boe/d, down from 329,000 boe/d in the year-ago period.
Shares of the company were down 4.7% in extended trade.
The slump in prices, however, was cushioned by cost cutting measures taken by the company which helped it beat Wall Street estimates.
Concho posted an adjusted profit of $1.13 per share, beating analysts' average estimates of 46 cents per share, according to Refinitiv IBES.
Controllable costs, which includes production expenses, cash general and administrative expenses, fell $7.49 per boe, down 25% from last year.
The Midland, Texas-based company's net loss widened to $435 million, or $2.23 per share, in the second quarter ended June 30, from $97 million, or 48 cents per share, a year earlier.
Peer QEP Resources Inc. also reported a quarterly loss of $184.4 million, compared with a year ago profit of $48.8 million.
The Denver-based company reduced its 2020 production outlook to between 28.1 MMboe and 29.6 MMboe from 31.5 MMboe to 33.7 MMboe.
Devon Energy’s Barnett Shale exit, a deal potentially worth up to $830 million, will now close at the beginning of October rather than the end of the year.
Terrence M. Pegula joins other NFL owners, most notably Dallas Cowboys owner Jerry Jones, in making large new investments during a stagnant time for the oil and gas industry.
Tokyo Gas will pay about $620 million as it increases its ownership in Castleton Resources, a U.S. shale gas operator focused on being a consolidator of E&P assets in the Ark-La-Tex region.