(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 higher sales volume and lower costs.
Occidental made a counterbid for Anadarko’s vast shale holdings in the prolific Permian Basin of West Texas and New Mexico on Wednesday, offering $57 billion compared with Chevron’s $50 billion bid, both including debt.
If Anadarko’s board accepts Occidental’s offer, it may lead Chevron to raise its bid or the second-largest U.S. oil producer could walk away from the deal with a $1 billion breakup fee.
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 earned 53 cents per share and beat expectation of 25 cents, according to IBES data from Refinitiv.
Shares of the company, which have risen 16.2 percent since Chevron’s bid, were trading flat at $71.80 after the bell.
Anadarko has not scheduled an investor conference call to discuss the results.
Reporting by Shanti S Nair in Bengaluru; Editing by Arun Koyyur