Nov 8 (Reuters) - Occidental Petroleum Corp on Tuesday posted a four-fold increase in third-quarter profit from a year earlier, while receding from the previous quarter as energy prices eased from peaks.
Oil producers are benefiting this year from crude prices that have cooled down in recent months but are still hovering at their highest levels in years in sanctions on Russia and output cuts by OPEC+.
Shares of the Houston-based oil and gas producer, the most recent stock-darling of billionaire investor Warren Buffett, rose 140% this year despite little change in production levels.
Occidental used the extra cash to accelerate buybacks, repurchasing a record $1.8 billion in the quarter while also paying debt. It bought until September $2.6 billion in shares, close to its $3 billion annual target.
"It is a very large buyback," said Ali Ragih, a research analyst with VerityData, with the volume indicating the program should be expanded "pretty soon."
Net income in the third quarter was $2.55 billion, or $2.52 a share, a four-fold increase from $628 million, or 65 cents per share, from a year earlier. But profit decreased 29% from the $3.6 billion posted in the second quarter.
Lower crude oil and natural gas liquids prices contributed to the reduction from the second quarter, which was partially offset by higher sales volumes across all commodities and higher gas prices, the company said.
Occidental's total average global production was 1.18 million barrels of oil equivalent per day (boed) in the third quarter, 10,000 boed above the top end of its guidance. It plans to raise production by about 50,000 boed in the fourth quarter.
Occidental reduced debt to less than $19 billion in the quarter, meeting its short-term target that would enable a potential upgrade to investment grade by rating agencies.
During the quarter, Warren Buffett's Berkshire Hathaway grew its stake in Occidental to about 20.9%. In August, a U.S. energy regulator gave Berkshire permission to buy up to 50% of Occidental's common stock.
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