UPDATE 1-Plains Exploration Q3 profit beats Street

* Q3 adj shr $1.41 vs est of $0.53

* Q3 rev down 57 pct

* Sees FY10 capex $900 mln-$1.1 bln

Nov 5 (Reuters) - Independent oil and natural gas company Plains Exploration and Production Co (PXP.N) reported better-than-expected quarterly profit, helped by sequentially higher production and lower production costs.

For the third quarter, net income was $39.3 million, or 30 cents a share, compared with net income of $493.1 million, or $4.58 a share, a year earlier. Excluding items, net income was $1.41 per share, according to Thomson Reuters I/B/E/S.

Revenue more than halved to $312.2 million.

Analysts were expecting Plains to report third-quarter profit of 53 cents a share, on revenue of $375.6 million.

The company forecast 2010 capital expenditure of $900 million to $1.1 billion.

"Approximately 10 percent of 2010 capital plan is allocated to Gulf of Mexico exploration," Chief Executive James Flores said.