(Reuters) -ConocoPhillips exceeded Wall Street's third-quarter profit estimates on Thursday as the Texas-based oil and gas producer reaped the benefits of higher production, sending its shares rising 2.6% at $105.5 in premarket trading.

Commodity price volatility has been in focus in the past few months, driven by several factors including the escalating conflict in the Middle East, weak China demand, rate decisions by the U.S. Federal Reserve and OPEC actions.

Benchmark Brent crude averaged $78.3 a barrel in the reported quarter, nearly 9% lower than last year, but still favorable enough for oil and gas producers to drill profitably.

Production for the quarter stood at 1.92 million barrels of oil equivalent per day, up 6% from 1.8 million boepd in the year-ago quarter.

The company increased its existing share repurchase authorization by up to $20 billion and reiterated its $9 billion minimum shareholder return for 2024.

The beat comes as ConocoPhillips is waiting to close its $22.5-billion takeover of rival Marathon Oil. The deal, which was approved by Marathon shareholders in August, is still under U.S. Federal Trade Commission review.

Plans to close the deal this quarter remain on track and the company expects to significantly exceed its initial $500 million synergy forecast, CEO Ryan Lance said.

ConocoPhillips forecast its full-year output to be between 1.94 million and 1.95 million boepd, compared with 1.93 million to 1.94 million previously.

On an adjusted basis, ConocoPhillips reported a profit of $1.78 per share for the three months ended Sept. 30, compared with analysts' average estimate of $1.64 per share, according to data compiled by LSEG.