May 2 (Reuters) - Coterra Energy ( CTRA ) beat estimates

for first-quarter profit on Thursday as higher output volumes

helped U.S. shale producer counter a steep decline in natural

gas prices.

Coterra said it was increasing its 2024 oil production

outlook to 107,000 bopd from 102,000 bopd, up 2.5% at the

mid-point of prior expectation, driven by strong well

performance and faster cycle time.

Cottera Energy shares were up 2.2% in trading after the

bell.

Its total production stood at 686,100 barrels of oil

equivalent per day (boepd) in the January-March quarter, 8%

higher than last year.

For the current quarter, production is expected to be

between 625,0000 boepd and 655,000 boepd.

However, sales prices, without hedges, for natural gas in

the reported period declined nearly 40% to $2.00 per thousand

cubic feet (mcf).

Henry Hub futures, the benchmark for U.S. gas, have

traded below $2 per million British thermal unit (mmBtu) and

during the first three months of the year dropped to a

3-1/2-year low on warm winter weather and oversupply.

While crude prices were largely flat against last

year at $76 a barrel in the quarter, they remained at a

profitable level for oil and gas drilling.

"Coterra continues to fire on all cylinders, and shifting

our near-term capital program to focus on oil and liquids-rich

plays remains prudent. However, the company maintains

optionality to take advantage of a structural change in the

natural gas macro as LNG exports grow and electricity demand

increases," said Tom Jorden, CEO of Coterra.

The company reported adjusted net income of 51 cents per

share for the three months ended March 31, topping average

analysts' estimate of 41 cents per share, according to LSEG

data.