Several US companies have reported sharp drops in profits, affected by the high oil and gas prices on their valuations of derivatives, which were measured at fair value on June 30.

Finance executives who recalculated the fair-value assessments a month later, after oil prices declined, however, had a more positive story to tell and now expect their third-quarter results to reflect that change, cfo.com reports.

Roger Manny, chief financial officer of oil and gas company Range Resources, at a recent conference call with investors, revealed the company's $US164m (₤89m) noncash accounting charge — taken when it applied fair value to its open commodity derivatives — would have been "completely eliminated" had the company made its calculations on July 23.

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