(Reuters) – Pioneer Natural Resources Co and Devon Energy Corp reported significant declines in their second-quarter profits on Tuesday, as the shale producers were negatively impacted by the decrease in oil prices compared to the high levels seen last year.
Profits for oil and gas companies have fallen from the exceptional levels of the previous year, following the easing of crude prices from multi-year highs caused by Russia’s invasion of Ukraine, which disrupted the markets.
Shares of Devon fell 2.4% to $52.41 in after-hours trading.
Pioneer experienced a 53.5% drop in second-quarter profit, while Devon’s income declined by 64.3%.
Both companies stated that their average realized price for oil fell by 34% for the April-June quarter compared to the previous year.
However, crude prices have stabilized and traded between $70-$80 per barrel during the quarter, which are still profitable levels for production. This has led both companies to report higher output for the quarter.
Energy prices had soared last year due to Russia’s invasion of Ukraine, causing market disruptions.
Pioneer, which focuses on the Permian basin, stated that its total…
2023-08-01 15:23:05
Link from finance.yahoo.com