NEW YORK (TheStreet) -- Shares of ConocoPhillips (COP) - Get Report  are slipping 0.87% to $39.72 in mid-morning trading after the independent exploration and production company reported lower-than-expected second quarter earnings before today's market open and cut its 2016 budget.

ConocoPhillips posted a net earnings loss of 79 cents per share, missing analysts projected earnings loss of 61 cents. The company also cut its 2016 budget to $5.5 billion from $5.7 billion. 

Global oil prices have fallen 60% since 2014, causing oil producers to scale back drilling and slash spending, Reuters reports.

"The price environment remains challenging, but our business is running well and we continue to beat our production, capital expenditures and operating cost targets," said ConocoPhillips CEO Ryan Lance in a statement.

The company's total realized price fell to $27.79 boe from $39.06 boe in the second quarter of 2015. Its 2016 second quarter production also dipped to 1.546 million boe per day due to the wildfires in Canada and normal field decline, among other things.

Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:

We rate CONOCOPHILLIPS as a Sell with a ratings score of D+. This is driven by some concerns, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, poor profit margins, weak operating cash flow, disappointing return on equity and generally disappointing historical performance in the stock itself.

You can view the full analysis from the report here: COP

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