Anadarko Petroleum Corp, in its last earnings report before shareholders vote on its sale to Occidental Petroleum, on Friday reported a quarterly profit that topped analysts' estimates, as higher production offset lower prices for its oil.
It reported a net loss on a $1 billion breakup fee paid to Chevron Corp. Anadarko accepted a $38 billion offer from Occidental after having initially agreed to a deal with Chevron. The deal would make Occidental the largest oil producer in the Permian Basin, the top U.S. shale field.
Anadarko's second-quarter average daily production rose nearly 17% to 744,000 barrels of oil and gas, beating analysts' expectations of 719,130, according to IBES data from Refinitiv.
Average oil prices fell 8.7% in the quarter, while gas prices dropped 10.2% and natural gas liquids prices tumbled 41%, Anadarko said. It received an average $66.03 per barrel for its oil compared with $68.43 a year earlier.
Billionaire investor Carl Icahn, who owns a 4.4% stake in Occidental, has launched a proxy fight seeking four seats on Occidental's board, arguing that directors overpaid for Anadarko and failed to give shareholders a say in the proposed deal. Icahn aims to influence the pace and scale of Occidental's post-deal asset sales.
Occidental has attacked Icahn's slate of board nominees as inadequate for the job.
Anadarko's net loss was $1.03 billion, or $2.09 per share, in the latest quarter ended June 30, including the breakup fee, a loss on derivatives and merger-related costs. Its shareholders are scheduled to vote on the deal on Aug. 8.
Anadarko, which has operations in the United States, South America and Africa, said adjusted net income fell 10% to $249 million, or 51 cents per share. It earned $278 million, or 54 cents a share, on the same basis a year-earlier quarter.
Analysts on average had expected 50 cents per share.
(Reporting by Shanti S Nair; editing by Anil D'Silva and Leslie Adler)