Occidental Petroleum (OXY) - Get Report reported earnings that topped analysts' forecasts as the company moved to sweeten its bid for Anadarko Petroleum (APC) - Get Report with more cash and less stock.
The Houston-based company on Sunday reported net income for the first quarter of $631 million, or 84 cents a share, below the $708 million, or 92 cents a share it earned in the comparable year-earlier quarter, and below the 74 cents a share expected by analysts surveyed by FactSet.
Total revenue rose to $4.09 billion from $3.83 billion, with oil and gas revenue making up the bulk of that figure, climbing to $2.45 billion from $2.35 billion in the prior-year quarter, the company said.
Occidental over the weekend sweetened its offer - still offering to buy Anadarko for $76 a share but now with 75% cash and 22% stock vs. 50-50 cash-stock it initially offered when it first made its public bid for Anadarko nearly two weeks ago.
Anadarko agreed to sell its business to Chevron last month for $65 a share in a 75% stock and 25% cash deal worth $50 billion including debt. Anadarko's board of directors resumed negotiations with Occidental last week after determining the rival bid could be superior to Chevron's offer.
Shares of Anadarko gained 3% to $74.90 in early trading on Monday, while shares of Occidental fell 0.3% to $57.78. Chevron stock was up just over 1% at $118.49.