Shares of California Resources Corp. gained more than 10 percent Thursday before the company reported a loss.
The Chatsworth oil producer, which was spun off from Occidental Petroleum Corp. late last year, reported an adjusted net loss of $51 million (-13 cents a share) for the quarter ended June 30, compared with adjusted net income of $246 million (63 cents) for the second quarter last year. Revenue declined 44 percent to $634 million.
No analysts cover the company.
The company’s performance was impacted by “a weak commodity market,” particularly the massive drop in oil prices since last summer. Chief Executive Todd Stevens said the company is working to live within its means by investing less in drilling and maximizing revenue from existing wells.
“CRC is well positioned with our low-decline portfolio to weather this cyclical downturn in prices,” he said in a statement. “Our operating teams continue to drive additional improvements, both by reducing operating costs and increasing capital efficiencies.”
The company reported results after market close. Shares ended the day up 46 cents or 11 percent to $4.66 on the New York Stock Exchange.