Oilsands producer MEG Energy Corp. is reporting a higher second-quarter net loss on voluntarily curtailed bitumen production and lower oil prices.
The Calgary-based company says it had a net loss of $80 million or 26 cents per share in the three months ended June 30 on revenue of $307 million, versus a net loss of $64 million or 21 cents per share on revenue of $1.06 billion in the second quarter of 2019.
Analysts had expected a loss of $34 million or nine cents per share, according to financial markets data firm Refinitiv.
MEG, which produces bitumen from steam-activated wells in northeastern Alberta, reported production of 75,700 barrels per day, down from 91,560 in the first quarter and 97,300 bpd in the second quarter of 2019.
Its realized price per barrel was C$10.18, down from C$19.45 in the first quarter and C$62.23 in the year-earlier period.
In response to low oil prices in the second quarter, MEG cut its 2020 capital budget to $150 million from the original guidance of $250 million and rolled back salaries and benefits across the company.
“The second quarter was characterized by extreme negative movements in commodity prices coupled with unprecedented uncertainty regarding near-term crude oil supply and demand balances due to COVID-19,” said CEO Derek Evans in a statement.
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