Chevron beats earnings estimates with cuts to operating expenses
HOUSTON (Bloomberg) -- Chevron beat analysts’ estimates for the first quarter as it cut expenses, bolstering its coffers ahead of a brewing bidding war for Anadarko Petroleum.
Key Takeaways
Earnings will take a backseat on Chevron’s quarterly conference call, where CEO Mike Wirth will be questioned about whether the company will sweeten its bid for Anadarko. Occidental made a competing, higher bid this week. Earlier Friday, Exxon Mobil posted lower-than-expected earnings as its production dropped versus last quarter. Investors at Janus Capital Management and Miller/Howard Investments are urging Anadarko to consider abandoning the Chevron deal and accept Occidental’s offer regardless of the $1 billion breakup fee Anadarko would incur. Absorbing Anadarko would help secure Chevron’s long-term goal of becoming the dominant Permian basin oil producer, and also would give the California-based explorer marquee developments in East Africa and the Gulf of Mexico.
Market Reaction
Chevron traded were down less than 1% at $117.75 a share in pre-market trading in New York.
