U.S. oil producer ConocoPhillips Co. on Feb. 3 topped market estimates for fourth-quarter profit and pledged to increase shareholder returns while warning investors that oil prices may be overheating.

A recovery in demand from the coronavirus pandemic and tight supplies have sent crude oil prices to seven-year highs. U.S. crude was trading near $90/bbl on Feb. 3 helping to boost cash available to drill more.

ConocoPhillips CEO Ryan Lance, however, said the high prices may lead U.S. oil producers to add production too quickly, leading to oversupply.

“If we are getting back to the level of growth in the U.S.” comparable to the 2014-2015 shale boom, said Lance, and “if you’re not worried about it, you should be,” he told investors during a conference call.

ConocoPhillips, which made two multibillion-dollar acquisitions over the last two years, said its core oil and gas production hit 1.6 million boe/d in the fourth quarter, up 423,000 boe/d from last year. Most of the increase in the company’s output came from the Permian Basin, the top U.S. oil field, where the company acquired Shell Plc’s assets for $8.7 billion during the quarter.

Its 10-year plan eyes high single-digit volume growth from its shale business in the Permian Basin, while rivals Exxon Mobil Corp. and Chevron Corp. said they could expand their Permian output this year by 100,000 bbl/d and 60,000 bbl/d, respectively.

U.S. shale overall is expected to grow by 104,000 bbl/d in February, to 9.5 million bbl/d, according to a U.S. Energy Information Administration (EIA) estimate. The Permian Basin could hit a record 5.1 million bbl/d this month, according to the EIA.

Shares of ConocoPhillips fell 1.2% to $91.16 apiece in midday trading amid a broad market sell off that pushed many oil stocks lower.

The company, which boosted its plans for shareholder returns to $8 billion, said the planned increase will be implemented mainly through share repurchases and variable dividends.

ConocoPhillips posted an adjusted per-share profit of $2.27 for the three months ended Dec. 31, higher than analysts’ average estimate of $2.20, according to Refinitiv data.

Editor’s note: This story was updated at 3:31 p.m. CT Feb. 3.

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