Occidental Petroleum Corp. on Tuesday reported a 56 percent increase in net income in the second quarter due to higher oil and natural gas prices and a boost in production.

The Los Angeles oil producer reported net income of $1.1 billion ($1.31 per share), compared with $682 million (84 cents per share) a year earlier.

Analysts surveyed by Thomson Reuters on average expected earnings of $1.33 per share.

Revenue rose 29 percent to $4.76 billion. That exceeded analysts’ expectations of $4.72 billion.

Occidental said it increased oil and gas production 4 percent to 747,000 barrels of oil equivalent per day. Crude oil prices rose 36 percent to $72.13 per barrel, compared with $52.97 per barrel a year earlier.

Shares were down $2.74, or 3 percent, to $80.16 in midday trading on the New York Stock Exchange.