During second-quarter 2013, FCX completed its $19 billion acquisitions of Plains Exploration & Production
Company (PXP) and McMoRan Exploration Co. (MMR), creating a premier U.S.-based natural resource
company. FCX's second-quarter 2013 financial results include PXP's operations beginning June 1, 2013, and
MMR's operations beginning June 4, 2013.
Net income attributable to common stock totaled $482 million, $0.49 per share for second-quarter 2013,
compared with net income of $710 million, $0.74 per share, for second-quarter 2012. Net income attributable to
common stock for the first six months of 2013 totaled $1.1 billion, $1.17 per share, compared with $1.5 billion,
$1.55 per share, for the first six months of 2012.
Consolidated sales for second-quarter 2013 totaled 951 million pounds of copper, 173 thousand ounces of gold,
23 million pounds of molybdenum and 5.0 million barrels of oil equivalents (MMBOE), reflecting results from
Freeport-McMoRan Oil & Gas (FM O&G) beginning June 1, 2013. For the year 2013, sales are expected to
approximate 4.1 billion pounds of copper, 1.1 million ounces of gold, 92 million pounds of molybdenum and 35
MMBOE (reflecting results for FM O&G beginning June 1, 2013).
Operating cash flows totaled $1.0 billion (including $235 million in working capital sources and changes in other
tax payments) for second-quarter 2013 and $1.9 billion (net of $195 million in working capital uses and changes
in other tax payments) for the first six months of 2013. Based on current sales volume and cost estimates and
assuming average prices of $3.15 per pound for copper, $1,300 per ounce for gold, $10 per pound of
molybdenum and $105 per barrel for Brent crude oil for the second half of 2013, operating cash flows for the year
2013 are expected to approximate $5.8 billion (net of $30 million of net working capital uses and other tax
Capital expenditures totaled $1.2 billion for second-quarter 2013 and $2.0 billion for the first six months of 2013.
Capital expenditures are expected to approximate $5.5 billion for the year 2013, including $2.3 billion for major
projects at mining operations and $1.5 billion for oil and gas operations for the period beginning June 1, 2013.
During second-quarter 2013, FCX took actions to reduce or defer capital expenditures and other costs, and
initiated efforts to identify potential asset sales to reduce debt and maintain financial strength and flexibility in
response to recent declines in metals prices. As a first step, FCX has reduced budgeted future capital
expenditures, exploration and other costs by a total of $1.9 billion in 2013 and 2014. FCX has also initiated a
process to divest certain oil and gas properties from its conventional Gulf of Mexico (GOM) Shelf properties. FCX
has a broad set of natural resource assets which provide many alternatives for future actions to enhance FCX's
financial flexibility and value for shareholders. Additional capital cost reductions and divestitures will be pursued
as required to maintain a strong balance sheet while preserving a strong resource position and portfolio of assets
with attractive long-term growth prospects.
At June 30, 2013, consolidated cash totaled $3.3 billion and consolidated debt totaled $21.2 billion, including
$0.7 billion of fair value adjustments to the stated value of assumed debt.
On May 31, 2013, FCX's Board of Directors declared a supplemental common stock dividend of $1.00 per
share, which was paid on July 1, 2013. This supplemental dividend, which totaled $1.0 billion, is in addition to
FCX's regular quarterly dividend of $0.3125 per share and is the eleventh supplemental dividend paid by FCX
since 2004, which have totaled $3.0 billion.