U.S. shale oil producer Diamondback Energy Inc on Tuesday reported higher-than-expected fourth-quarter profit and boosted its dividend to shareholders as fuel prices hit multi-year highs on stronger energy demand.

Global crude prices jumped more than 50% last year, rebounding from a pandemic-driven slump in demand. They averaged $80 per barrel in the last three months of 2021, nearly double that of a year earlier.

Diamondback said it would increase its annual dividend by 20% to $2.40 per share, mirroring rivals' moves to increase shareholder returns as oil profits soar.

Shares rose 1.4% to $129.80 in after hours trading after closing down more than 2%.

Diamondback said its average unhedged realized prices during the fourth quarter more than doubled to $56.47 per barrel of oil equivalent.

Its fourth-quarter output was 387,100 barrels of oil equivalent per day (boepd), compared with 299,000 last year.

The Midland, Texas-based company forecast first-quarter production between 369,000 and 376,000 boepd. That is up from around 307,400 boepd during the first quarter of 2021.

Diamondback on Tuesday also said Steven West will step down as chairman but remain on its board. Chief Executive Travis Stice will add chairman duties, the company said.

Diamondback's adjusted income jumped to $657 million, or $3.63 per share, in the quarter, from $130 million, or 82 cents per share, a year earlier. Wall Street analysts had expected earnings of $3.38 per share, according to Refinitiv IBES.