(Reuters) – Anadarko Petroleum Corp, the target of a bidding war between Occidental Petroleum Corp and Chevron Corp, beat analysts’ estimates for quarterly profit on Thursday, fueled by tighter cost controls and higher sales volume.
Occidental on Wednesday sought to derail Chevron’s bid for Anadarko with a $57 billion offer, as the companies seek the oil and gas producer’s vast shale holdings in the prolific Permian Basin of West Texas and New Mexico.
Anadarko has said it had not yet determined whether Occidental was a “superior proposal,” and reaffirmed its recommendation of a sale to Chevron.
Average sales volumes of oil, natural gas and natural gas liquids rose 11.2 percent to 715,000 barrels of oil equivalent per day (boe/d) in the first quarter, while total expenses fell 4.4 percent to $2.38 billion.
This helped the Woodlands, Texas-based company cushion an 11.2 percent fall in average sales price of oil to $56.51 per barrel.
Anadarko said adjusted net income fell to $259 million in the three months ended March 31, from $279 million.
On a per share basis, the company reported 53 cents, compared with 52 cents a year earlier.
Analysts on average had expected a profit of 25 cents per share, according to IBES data from Refinitiv.
Reporting by Shanti S Nair in Bengaluru; Editing by Arun Koyyur