Occidental Petroleum Corp. reported a 12 percent increase in third quarter earnings thanks mainly to increased production and rising crude oil prices.

Oxy reported net income of $1.3 billion ($1.58 per share), up 12 percent from $1.2 billion ($1.36) from the same period a year earlier, beating handedly analysts’ expectations of $1.31, according to Thomson Financial.

Revenue for the Los Angeles-based oil company rose 10 percent to $4.8 billion, well ahead of Wall Streets estimate of $3.7 billion.

Oxy’s Chief Executive Ray Irani, said the rise was due to higher “production volume,” and was also boosted by the company’s natural gas pipeline project called the Dolphin Project, which is a joint venture with Qatar.

“This has been a good quarter for Oxy,” Irani said. “We are confident in our prospects for continued strong financial performance and growth in our volume.”

Oxy’s daily production rose 7 percent to an average of 570,000 barrels per day, the company said.

Shares in Oxy closed up 1.6 percent to $67.83 in trading Wednesday on the New York stock Exchange.