Occidental Petroleum said it expects to grow its 2016 production at the high end of its forecast by up to a six percent increase.
The company said it will make the boost while staying within its $3billion budget.
The fall in the costs of oilfield services as well as increased productivity in the fracking process has meant lower costs for each new well.
Occidental said its production from US fields increased to more than 300,000 barrels of oil equivalent per day.
Increases in output came from its Permian resources in West Texas and southeast New Mexico.
Occidental’s total cash operating costs for oil and gas production declined nearly 16%, but were outpaced by a 27% fall in revenue.
The company’s net loss was $139 million, compared with a profit of $176 million, a year earlier.