Weak prices drag down Cimarex Energy, Swift's oil and gas revenue

Thu Aug 2, 2012 6:42am EDT

Aug 2 (Reuters) - Oil and natural gas producers Cimarex Energy Co and Swift Energy Co reported lower quarterly sales for the second time in a row, hurt by lower prices for oil, natural gas and nat gas liquids (NGL).

Both companies managed to ramp up production in the quarter, but that did not earn them higher revenue as lower commodity prices weighed.

Natural gas prices fell 46 percent from last year to average $2.4 per million British thermal unit in the April-June quarter, while U.S. crude oil prices fell 9 percent to average $93 per barrel.

The fall in crude oil prices pressurized NGL prices, which have fallen about 15 percent from the first quarter.

Cimarex, which primarily operates in the Mid-Continent and Permian Basin areas, said oil and gas revenue in the second quarter fell 24 percent to $343.2 million. Revenue at Swift Energy fell 14 percent to $134.8 million.

Denver-based Cimarex's net income more than halved to $64.3 million, or 74 cents per share in the second quarter.

Swift Energy's earnings from continuing operations fell 89 percent to $3 million, or 7 cents per share.

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