HOUSTON, Oct 30 (Reuters) - U.S. oil producer Whiting Petroleum posted profit on Tuesday that easily topped analysts’ third quarter forecasts, as higher domestic oil prices and production growth boosted results.
Whiting’s third quarter production averaged 128,680 barrels of oil equivalent per day, up 13 percent from a year ago. The Denver-based company forecast its production to increase 5 percent sequentially in the fourth quarter, Chief Executive Bradley Holly said in a statement.
Its shares rose more than 3 percent to $36.50 in after hours trading on Tuesday.
Oil prices have jumped about 44 percent in the past year, prompting a surge in activity as producers are able to fetch a higher price for their crude.
In the Bakken shale, where Whiting is one of the top producers, output is achieving new records and anticipated to hit 1.35 million barrels per day in November, according to the U.S. Energy Information Administration.
Whiting reported adjusted net income of $84.7 million, or 92 cents per share, topping analysts’ consensus for 58 cents per share, according to Refinitiv estimates. Last year, the company reported a $50 million loss for the third quarter.
Revenues for the quarter were $566.7 million, beating analysts’ forecasts of $521.3 million, and up from $324.2 million a year ago.
Although oil prices have climbed significantly in the last year, Whiting had hedged some of its production to lock in prices. It took a $7.88 per barrel hit to realized prices during the quarter as a result of its crude oil hedges that cost it $62.4 million.
Other producers, including Pioneer Natural Resources and EOG Resources have warned of similar earnings hits this quarter after crude rose above hedged prices. (Reporting by Liz Hampton, Editing by Rosalba O’Brien)