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Constellation Energy Partners posts 2Q loss

287 days ago

(AP:HOUSTON) Constellation Energy Partners LLC posted a second-quarter loss as it cut back production with the price of oil and natural gas falling.

Benchmark U.S. crude prices fell 8.8 percent in the spring compared with a year earlier, while natural gas prices plunged 46.2 percent and at one point hit a 10-year low. About two-thirds of Constellation's sales in the second quarter were from natural gas.

The company's production decline 3 percent for natural gas, or natural gas equivalent, though oil production remained flat.

The Houston company posted a loss of $5 million, or 21 cents per share, compared with a year-ago profit of $2.5 million, or 10 cents per share. Constellation took a $4.9 million charge on the declining value of assets, compared with a charge of $43.7 million a year earlier.

Taking out all one-time charges, adjusted pre-tax earnings were $6.3 million in the most recent quarter compared with $56.7 million a year ago.

Revenue fell by more than half to $11.8 million. Total production fell 11 percent.

The stock lost 4 cents, or 2.6 percent, to $1.50 in midday trading.

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