Chevron Beats Earnings Estimates With Cuts to Operating Expenses

(Bloomberg) -- Chevron Corp. beat analysts’ estimates for the first quarter as it cut expenses, bolstering its coffers ahead of a brewing bidding war for Anadarko Petroleum Corp.

Key Takeaways

• Earnings will take a backseat on Chevron’s quarterly conference call, where Chief Executive Officer 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 Corp. posted lower-than-expected earnings as its production dropped versus last quarter.
• Investors at Janus Capital Management and Miller/Howard Investments Inc. 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 percent at $117.75 a share at 8:35 a.m. in pre-market trading in New York.

Get More

• Read Chevron’s statement here.

To contact the reporter on this story: Kevin Crowley in Houston at kcrowley1@bloomberg.net

To contact the editors responsible for this story: Simon Casey at scasey4@bloomberg.net, Joe Carroll, Christine Buurma

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