Oxy Profit Surges as Production, Oil Prices Jump

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Occidental Petroleum Corp. posted a 63 percent leap in second quarter profit Thursday as production increased and crude oil prices climbed above $140 a barrel for a time.


Occidental reported net income of $2.3 billion ($2.78 per share), compared to $1.41 billion ($1.68) from the same period a year earlier. The results beat Wall Street’s expectations of $2.75 per share, according to Thomson Financial.


The company said revenue jumped 61 percent to $7.12 billion from $4.41 billion in the same period a year earlier, also beating expectations of $6.77 billion.


Production increased 5.4 percent during the quarter, helping profits from oil and gas sales more than double to $3.81 billion. The Los Angeles-based oil and natural gas company upped spending by 21 percent to expand drilling in the United States, Argentina, Colombia and Libya.


Daily oil and gas production averaged 588,000 barrels per day during the second quarter, up from 558,000 barrels per day last year.


Occidental said its realized price for crude oil in the second quarter was $110.12 per barrel, almost double the price last year. The average domestic natural gas price rose to $9.99 per 1,000 cubic feet from $7.07 in 2007.


Shares in Occidental rose 2 percent to $73.87 in early trading Thursday.