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.
Recommended Reading
Minerals M&A to Heat Up in ‘25 with $4B Diamondback Sale–KeyBanc
2025-01-13 - KeyBanc analysts expect an “imminent” Diamondback Energy dropdown to Viper Energy and at least a couple of $500 million deals by public mineral and royalty companies in 2025, with Sitio Royalties a likely acquirer.
Constellation Bets Big on NatGas in $16.4B Deal for Calpine
2025-01-10 - Constellation Energy will acquire Calpine Corp. in a $26.6 billion deal, including debt, that will give the pure-play nuclear company the largest natural gas power generation fleet.
LS Power Completes Acquisition of Algonquin Power’s Renewables Unit
2025-01-09 - With the transaction’s closure on Jan. 8, LS Power formed Clearlight Energy to manage the acquired renewable energy assets.
Florida Fuel Distributors Palmdale, Combs Oil Merge
2025-01-08 - Palmdale Oil’s acquisition of Combs Oil Co. combines two Florida-based fuels and refined products distributors.
Constellation Energy Nearing $30B Deal for Calpine, Sources Say
2025-01-08 - Constellation Energy is nearing a roughly $30 billion deal to acquire power producer Calpine that could be announced as early as Jan. 13, sources familiar with the matter said.