Occidental Petroleum Corp. said Tuesday its third-quarter net income increased 28 percent as the Los Angeles company produced oil and gas in record amounts.
The company's oil and gas division produced the equivalent of 751,000 barrels of oil per day, a company record and an increase of 6.5 percent from the prior year. Occidental took in about $8 more per barrel of oil and $1.16 more per 1,000 cubic feet of gas than a year ago.
Occidental's net income rose to $1.19 billion, or $1.46 per share, for the third quarter. That compares with $927 million, or $1.14 per share, in the same period last year. Revenue increased 19.3 percent to $4.9 billion.
Analysts had expected earnings of $1.34 per share on revenue of $4.75 billion. Shares fell almost 1 percent in premarket trading. They've gained about 14 percent over the past two weeks.
Thanks to higher prices, Occidental's oil and gas business reported a 19 percent increase in profit to $1.75 billion. In the third quarter, crude sold for $70.71 per barrel, up from $62.79 per barrel in the same period of 2009. Natural gas prices rose to $4.20 per 1,000 cubic feet from $3.04 per 1,000 cubic feet.
Occidental's smaller chemicals and petroleum marketing businesses each more than doubled earnings to $189 million and $163 million respectively.
© 2010 The Associated Press.