Anadarko Petroleum, the independent oil and gas producer that owns a 25% non-operating interest in the now infamous Macondo well project, said its fourth-quarter profit fell to $111 million, or 22 cents per share, from $229 million, or 46 cents per share.
Texas-based Anadarko (APC) took a $318 million loss related to commodity derivatives in the quarter compared with an $82 million in the fourth quarter of 2009, leading to the slack profits. Excluding charges, the company earned 29 cents a share on sales of $2.69 billion. Analysts were expecting a profit of 21 cents a share on revenue of $2.75 billion.
The company's oil and gas output rose 4% to 608,000 barrels of oil equivalent per day in the quarter. It added 359 million barrels of oil equivalent of proved reserves in 2010 -- including 29 million barrels of oil equivalent due to price revisions -- for a reserve replacement rate of 153%, according to Reuters.
Separately, Anadarko said it will delay its $1.3 billion Caesar/Tonga project in the Gulf of Mexico until the middle of this year due to a mechanical issue. Anadarko said a test of the riser production system showed the system was not fit for daily production duties.