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Oil and gas producer Apache Corp. on Thursday posted a decline in third-quarter earnings as weaker oil production, lower natural gas prices and increased operating costs weighed on results.

After paying preferred dividends, net income fell to $645.6 million, or $1.94 per share, from $685.6 million, or $2.05 per share, in the year-ago period.

Revenue rose 10 percent to $2.26 billion from $2.06 billion in the year-earlier quarter. Operating costs climbed 22 percent.

The results topped the expectations of Wall Street analysts, and the company's shares rose 34 cents in premarket activity to $69.25. The stock closed at $68.91 Wednesday on the New York Stock Exchange.

Analysts polled by Thomson Financial forecast earnings of $1.89 per share and sales of $2.18 billion.

Oil production dropped to 216,468 barrels per day, down 6 percent from 233,692 barrels per day due to the sale of an oil field in China and shutdowns at fields in the North Sea and Egypt. The company's average oil price rose to $63.66 from $58.66 year-over-year.

Natural gas volume rose to 1.71 billion cubic feet per day, up 35 percent from 1.26 billion cubic feet per day. Natural gas prices slid to $4.83 per thousand cubic feet from $6.54.

Apache said it remains "on track" for 10 percent to 15 percent growth in production this year.