May 2 (Reuters) - Coterra Energy 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. (Reporting by Arunima Kumar in Bengaluru; Editing by Alan Barona)