Lexington-based NGAS Resources, which explores for and produces natural gas, reported a net loss Tuesday for its second quarter of $975,000, or 4 cents per share.
That's down from a profit of $1.5 million, or 6 cents per share, in the same period a year ago.
The drop was driven by "significantly lower commodity prices," according to a company statement.
Revenue for the quarter totaled $14.7 million, down 31 percent from $21.3 million a year ago.
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"The operating environment remains challenging. Demand is down, inventories are rising and natural gas prices remain depressed," CEO William S. Daugherty said in a statement.
The company said the average natural gas price was $6.47 per Mcf, or thousand cubic feet, compared to $9.88 per Mcf last year.
NGAS benefited from a 26 percent year-over-year drop in selling, general and administrative expenses during the quarter. That was primarily due to the timing and extent of marketing costs for sponsored drilling partnerships, the company said.
The company also noted that its recent sale of a stake in part of its business to Seminole Gas Co. has helped lower its outstanding borrowing to $46 million. Under the deal, NGAS received $28 million from Seminole.
Daugherty said a number of factors, including the Seminole deal, "provides us with the flexibility to operate successfully in this environment."