The pain continued Wednesday for Devon Energy Corp (NYSE:DVN), which fell 6% following Tuesday's earnings miss.
The shale oil producer's Q2 net income dropped to $690 million, or $1.08 per share, from $1.93 billion, or $2.94 per share, in the same quarter last year. Free cash flow also fell by 85% year-over-year to $326 million.
At 10.45 am, the stock was changing hands for $50.39, down $3.26.
It was better news for Pioneer Natural Resources Co, which bounced back $9.96, or 4%, to $233.72 after telling a similar tale to Devon on Tuesday.
Both have tightened budgets and warned of lower drilling and completions activity in coming months after a drop in oil and gas prices, which has had a significant impact on both the top and bottom lines.
According to a Reuters report, US shale producers have been forced to reduce the number of rigs in operation and delay well completions as profits have fallen from bumper 2022 levels after crude prices eased from multi-year highs.
The canary in the coal mine for these and other onshore oil and gas producers has been the performance of oilfield service companies that have been hit by weakening North American oilfield activity.
Pioneer is a top producer in the Permian shale basin, which can be found in Texas and Mexico, while Devon operates in the Delaware Basin, West Texas.