U.S. oil and gas producer Apache Corp. reported a better-than-expected quarterly profit and raised its U.S. production forecast for the year as it benefited from rising oil prices and increased output from the Permian Basin.

Apache and its peers are reaping the benefit of a 44% surge in global crude oil prices from a year earlier. Oil prices are expected to rise further as U.S. sanctions on Iran remove a major supplier from the market.

The Houston-based company said average realized oil prices jumped about 40% to $69.12 per barrel, while total production rose to 476,255 barrels of oil equivalent per day (boe/d) from 448,235 boe/d a year earlier.

Production from Permian Basin, the largest U.S. oil field and the center of the country’s shale industry, rose 38% to 222,259 boe/d.

U.S. shale oil production in the Permian has nearly doubled in the last three years to 3.4 MMbbl/d.

Excluding certain items, Apache earned 63 cents per share, beating analysts' average estimate of 47 cents per share, according to Refinitiv data.

The company raised its 2018 U.S. production forecast to 262,000 boe/d from 260,000 boe/d.

Net income attributable to common stock rose to $81 million, or 21 cents per share, in the third quarter ended Sept. 30 from $63 million, or 16 cents per share, a year earlier.

Oil and gas revenue rose 42.3% to $1.98 billion.

Shares of the company rose 2.7% to $38.85 after the bell.