U.S. shale companies Devon Energy Corp. and Diamondback Energy Inc. on Aug. 1 surpassed estimates for second-quarter profit, joining global oil majors in posting bumper earnings on red-hot energy prices.

Oil and gas prices have skyrocketed as sanctions on major producer Russia throttle supply amid a rebound in demand from pandemic lows thanks to economies reopening after restrictions.

Benchmark Brent futures ave risen more than 140% over the past year and averaged around $114/bbl during the second quarter, helping U.S. and European heavyweights Exxon Mobil Corp., Chevron Corp., Shell Plc and TotalEnergies SE post record profits.

Both Devon and Diamondback sweetened the pot for investors by announcing higher returns, with Devon Energy raising its quarterly dividend to $1.55 from $1.27 and Diamondback Energy hiking share repurchases by $2 billion to $4 billion.

Shares of both the companies inched down in extended trading, after dropping more than 2% in the Aug. 1 session that saw oil prices settle 4% lower.

Devon and Diamondback also lifted their 2022 production forecasts.

Oklahoma-based Devon Energy now expects production to average 600,000 to 610,000 boe/d this year, up from its previous forecast of 570,000 to 600,000 boe/d earlier, due to better-than-expected well performance and its purchase of Williston Basin assets.

Diamondback Energy said it now expects production to range between 374,000 and 380,000 boe/d this year, compared with a previous range of 369,000 to 376,000 boe/d.

However, acquisitions and inflationary pressures also forced both companies to raise their capex forecasts.

Excluding items, Devon Energy earned $2.59 a share, above analysts’ estimates of $2.38 per share, according to Refinitiv data.

Diamondback Energy’s adjusted earnings of $7.07 per share also beat estimates of $6.58 per share.

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