(Reuters) -U.S. shale oil producers Marathon Oil Corp (NYSE:MRO) and APA Corp on Wednesday topped Wall Street's first-quarter profit estimates on strong crude prices and demand.
Shares of APA rose 2% in extended trade on a pledge to reduce spending on new production this year, while Marathon fell 3% after promising to retain its output and spending plans.
Global energy markets have been volatile during the first quarter, falling nearly 20% from last year, but supply tightness following sanctions on Russian crude have kept prices at levels which are encouraging oil and gas producers to increase their output.
"Our oil production exceeded expectations in the first quarter, and we plan to focus on oil-driven activity," APA Chief Executive John Christmann IV said in a statement.
APA lowered its full-year capital spending estimate to about $1.9 billion from about $2 billion, citing a decrease in natural gas output. Gas prices have collapsed this year.
Total oil production rose 4% in the January-March quarter to 197,185 barrels per day (bpd).
Rival Marathon said its quarterly oil production increased 10.7% to 186,000 bpd. It forecast second-quarter oil production of about 190,000 bpd, or around the mid-point of its full-year outlook.
Marathon posted adjusted income of 67 cents per share, beating analysts' average estimate of 60 cents, according to Refinitiv data.
APA's adjusted earnings of $1.19 per share topped the consensus estimate of $1.03.