(Reuters) -U.S. shale producer Devon Energy reported a fall in fourth-quarter profit on Tuesday, hurt by lower oil and gas prices and forecast a 2% impact in first-quarter production resulting from severe winter weather.

Concerns over global demand weighed on commodity prices throughout the reported quarter, with U.S. natural gas prices declining by greater than half.

Devon’s averaged realized price without hedges fell to $44.93 per barrel of oil equivalent throughout the quarter, compared with $53.66 boe a 12 months ago, with realized natural gas prices tumbling 58%.

The company reaffirmed its 2024 production forecast at about 650,000 barrels of oil equivalent per day (boepd) but forecast first-quarter production to be down 2% resulting from curtailments arising from severe winter weather.

A severe winter storm dumped snow across a broad a component of the country In January, shutting a Gulf Coast refinery in Texas and halving North Dakota’s oil production.

Devon’s fourth-quarter production rose to 662,000 boepd, compared with 636,000 boepd inside the year-ago quarter, backed by strong output from its Delaware assets.

U.S. crude oil production had reached record heights in 2023 as firms focused on boosting drilling efficiency and cut costs.

The company said it added a fourth frac crew inside the Delaware basin in January and expects its capital program to be weighted towards the first half of 2024.

Its adjusted profit of $1.41 per share was in line with estimates, in accordance with LSEG data.

The Oklahoma City-based company also raised its fixed quarterly dividend by 10%.

The company’s net income fell to $1.15 billion, or $1.81 per share, inside the three months ended Dec. 31, from $1.20 billion, or $1.83 per share, a 12 months earlier.

(Reporting by Sourasis Bose in Bengaluru; Editing by Shailesh Kuber and Maju Samuel)