(Reuters) -U.S. shale oil producer EOG Resources (NYSE:EOG) on Thursday soared past Wall Street estimates for third-quarter profit and raised its annual production forecast amid resilient fuel demand.
U.S. WTI crude prices climbed 9.4% on an average, sequentially, during the quarter as OPEC+ members Russia and Saudi Arabia extended output cuts, encouraging energy producing companies to drill more.
Shares of EOG rose 1% after the bell.
The company's production averaged at 998,500 barrels of oil equivalent per day during the quarter, rising from 919,200 boepd in the previous year, helped by a rise in natural gas liquids production.
Oil and gas production in the United States has been on the rise, even with fewer drilling rigs in operation, with the industry looking to improve efficiency and mitigate the effects of declining oil prices.
The company said its average crude oil prices fell nearly 13% to $83.60 per barrel, compared to last year, when it soared following Russia's invasion of Ukraine.
EOG also raised its full-year production outlook in the range of 971,900 boepd to 992,100 boepd, from its previous outlook of 965,300 boepd to 991,500 boepd.
The company said it is increasing its cash return commitment to a minimum of 70% of annual free cash flow from 2024. It also raised its quarterly dividend by 10% to 91 cents per share.
On an adjusted basis, the Houston, Texas-based company earned $3.44 per share in the quarter ended Sept. 30, while analysts had expected $3.02 per share, according to LSEG data.