Oil and gas producer Beach Energy's sales revenue slumped in the three months to September despite a steady production rates.
The Cooper Basin-focused producer produced 2.26 million barrels of oil equivalents (MMboe), up one per cent on the June quarter.
The company benefited from the start of shipments under a long term gas sale agreement with Origin Energy, and it expects these deliveries to increase over the course of the financial year.
However, realised oil prices were lower, resulting in a 15 per cent decline in sales revenue to $145 million.
Shares in the company slipped on the news, dropping five cents, or 7.3 per cent, to 63.5 cents.
Beach said it realised an average of $68 per barrel, down 19 per cent from the price it received in the three months to June.
Global crude oil prices have halved over the past year to below $US50 a barrel, amid rising supplies and lacklustre demand.
The company's capital expenditure of $44 million in the September quarter was 36 per cent lower than the previous quarter, but in line with the revised full year program.
Beach In July forecast a drop in capital expenditure to a range of $240 million to $270 million, down from $416 million in the previous year, in an effort to ride out weak oil prices.
Earlier in October, Beach announced it plans to merge with fellow central Australia-based producer Drillsearch, creating a $1.2 billion energy company.
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