Midcontinent oil and natural gas activity improved during the first quarter, climbing higher than year-ago levels for the first time since March 2019, according to the Federal Reserve Bank of Kansas City.

The Kansas City Fed, as it is better known, compiles energy activity every quarter for the Tenth District, which encompasses firms headquartered in Colorado, Missouri, Nebraska, northern New Mexico and Oklahoma.

“District drilling and business activity continued to be quite solid in the first quarter, and expectations indicated further growth in the next six months,” Kansas City Fed economist Chad Wilkerson said. “In addition, many firms reported growth in employment for the first time since early 2019, and price expectations for crude oil were the highest they have been...