The company on Wednesday reported a net loss of $392 million for the second quarter of 2016, compared with a net loss of $567 million in the second quarter of 2015.

Hess’ revenues for the quarter dropped to $1.269 billion, compared to $1.935 billion in the prior-year quarter.

The company explained that lower production and realized selling prices reduced second quarter 2016 after-tax results by approximately $365 million compared to the second quarter of 2015.

Operating costs, general and administrative expenses, and depreciation, depletion and amortization expense decreased compared with the prior-year quarter due to lower production and ongoing cost reduction efforts.

Chief Executive Officer John Hess said: “During the quarter, we continued to pursue further cost reductions and now project our full-year 2016 E&P capital and exploratory expenditures to be about 48 percent below 2015 levels.”

The Exploration and Production net loss in the second quarter of 2016 was $328 million compared to a net loss of $502 million in the prior-year quarter.

The company’s average realized crude oil selling price was $41.95 per barrel in the second quarter of 2016, down 25 percent from $55.83 per barrel in the year-ago quarter, including the effect of hedging.

Oil and gas production during the quarter was 313,000 barrels of oil equivalent per day (boepd).

Exploration and Production capital and exploratory expenditures were $485 million in the second quarter of 2016, down 52 percent from $1.006 billion in the prior-year quarter reflecting reduced activities in response to the weak commodity price environment.

Exploration and Production capital and exploratory expenditures are now projected to be approximately $2.1 billion for the full year of 2016, down 48 percent from 2015, and $300 million lower than the company’s previous guidance. Hess said that the reduced spending reflects certain deferred activity and the corporation’s efforts to reduce costs and improve operating efficiencies across the portfolio.