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ConocoPhillips's (COP) second-quarter earnings fell 76% amid sharply lower prices from a year earlier, when the sector was in the midst of an unprecedented boom.

Its refining segment also swung to a loss on lower volumes and margins.

Oil exploration and production companies also have been coping with falling demand as consumers and industry cut back on consumption. The oil giant has been considering cutting crude processing at a New Jersey refinery as a storage problem looms. ConocoPhillips is not alone, with storage concerns pressuring Gulf Coast and Midwest hubs in recent months. However, Conoco is more exposed to lower natural gas prices than rivals.

The company reported a profit of $1.3 billion, or 87 cents a share, down from $5.4 billion, or $3.50 a share, a year earlier. The latest period included a $192 million gain related to its 20% stake in Russian oil giant OAO Lukoil Holdings.

Revenue tumbled 50% to $35.4 billion.

Analysts polled by Thomson Reuters most recently were looking for earnings of 85 cents on revenue of $39.08 billion.

At its exploration and production business, production rose 7%, though profit was off by 81% mostly owing to lower prices.

Its refining and marketing business posted a loss due to narrowing light-heavy crude spreads. ConocoPhillips is among a number of refiners that invested in pricey equipment to process lower-cost "heavy crude" to boost margins, only to see the strategy backfire as supplies dwindled and the cost advantage over lighter crude evaporate.

Shares closed at $44.43 on Tuesday and didn't trade premarket. The stock has lost nearly half its value in the past year.

-By Tess Stynes, Dow Jones Newswires; 212-416-2481; tess.stynes@dowjones.com