(Reuters) - U.S. oil producer Continental Resources Inc reported a 19.7% fall in quarterly adjusted profit on Monday as weaker crude and natural gas prices more than offset a rise in overall production.
Crude prices have come under pressure from fears of slowing global demand and a shortage in takeaway pipeline capacity even though surging shale output has made United States the world’s largest crude producer.
U.S. light crude prices averaged $59.91 per barrel in the company’s second quarter, 11.8% lower than a year earlier.
The company’s average net sales price, excluding hedging, fell to $36.03 per barrel of oil equivalent from $42.16 in the year-ago period.
However, total production rose to 331,414 barrels of oil equivalent per day (boepd) from 284,059 boepd a year earlier.
Continental focuses on shale assets in the oil-rich Bakken field of North Dakota and Montana as well as the SCOOP and STACK plays in southern Oklahoma.
Adjusted net income fell to $219.1 million, or 59 cents per share, in the second quarter ended June 30, from $272.9 million or 73 cents per share, a year earlier.
For the full year, the company raised the lower end of its oil production outlook by 5,000 barrels per day to 195,000 barrels per day, while keeping the higher end of the outlook unchanged at 200,000 barrels per day.
It also lowered its expenses per barrel of oil equivalent to a range of between $3.50 and $4 from prior forecast of between $3.75 and $4.25.
Reporting by Debroop Roy in Bengaluru; Editing by Arun Koyyur