UPDATE 1-Occidental Petroleum profit beats expectations on rising oil price

(Adds earnings comparison, unit details, stock movement)

HOUSTON, Aug 8 (Reuters) - U.S. oil producer Occidental Petroleum Corp posted a better-than-expected quarterly profit on Wednesday as rising crude prices helped offset a production dip.

The company posted net income of $848 million, or $1.10 per share, compared to $507 million, or 66 cents per share, in the year-ago period.

Excluding one-time items, the company earned $1.22 per share. By that measure, analysts expected earnings of $1.21 per share, according to Thomson Reuters I/B/E/S.

Production fell 6 percent to 639,000 barrels of oil equivalent per day. While output jumped in the Permian, it slipped in Oman, dragging down overall output.

Shares of the company, the largest oil producer in the Permian Basin of West Texas and New Mexico, fell 2 percent to $79.42 in after-hours trading.

The company plans to hold a conference call to discuss quarterly results on Thursday morning. (Reporting by Ernest Scheyder Editing by Alistair Bell and Tom Brown)