(Reuters) - U.S. oil and gas producer Concho Resources Inc on Tuesday missed Wall Street estimates for adjusted profit for the fourth straight quarter, dragged down by natural gas and crude prices.
U.S. oil prices remained in the mid-$50s in the September quarter, down more than 18% on average from a year earlier, after a spike to over $60 a barrel in September following an attack on Saudi Arabian oil infrastructure.
Excluding items, Concho’s profit fell to 61 cents per share, below analysts’ average estimate of 69 cents per share, according Refinitiv IBES.
Concho said in early September it would sell a portion of its New Mexico assets for $925 million to KKR-backed Spur Energy Partners LLC and planned to use the money to lower its debt and buy back shares.
Special items impacting earnings for the quarter included a $101 million impairment, primarily related to the sale of its New Mexico Shelf assets.
Concho said average realized price for crude oil and natural gas for the third-quarter, including hedging was $36.46 per barrel of oil equivalent (boe) compared to $43.56 per boe in the year-ago quarter.
The company reported net income of $558 million, or $2.78 per share, in the quarter ended Sept. 30, compared with a loss of $199 million, or $1.05 per share, a year earlier.
Concho said total production in the quarter rose to 329,803 barrels of oil equivalent per day (boepd) from 286,634 boepd a year earlier.
Reporting by Arunima Kumar in Bengaluru; Editing by Shailesh Kuber