(Reuters) -Pioneer Natural Resources Co and Devon Energy Corp posted a sharp drop in their second-quarter profits on Tuesday, as the shale producers were hurt by a decline in oil prices from last year’s sky-high levels.
Profits for oil and gas companies have dropped from last year’s bumper levels after crude prices eased from multi-year highs when Russia’s invasion of Ukraine upended markets.
Shares of Devon fell 2.4% to $52.41 in extended trade.
Pioneer posted a 53.5% drop in second-quarter profit, while Devon’s income declined 64.3%.
The two companies said their average realized price for oil fell 34% for the April-June quarter from last year.
However, crude prices have steadied and traded between $70-$80 per barrel during the quarter, levels which remain lucrative for production, pushing both the companies to report higher output for the quarter.
Energy prices had sky-rocketed last year when Russia’s invasion of Ukraine upended markets.
Permian basin-focused Pioneer said its total average daily production rose 10.5% to 710,678 barrels of oil equivalent (boe), while Devon’s oil production averaged 323,000 boe in the second quarter, an increase of 8% from the year-ago period.
The rise in production helped Pioneer beat Wall Street estimate.
Its adjusted income of $4.49 per share for the three months ended June 30 beat analysts’ average estimate of $4.18 per share, according to Refinitiv data.
Pioneer also raised the midpoint of its annual oil and total production forecasts to 369,000 bopd and 707,000 bopd.
Its shares were up 0.9% at $226.75.
(Reporting by Arunima Kumar in Bengaluru; Editing by Maju Samuel)
