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Freeport-McMoRan Announces Agreement to Sell Eagle Ford Interests for $3.1 Billion

PHOENIX, AZ, May 7, 2014 – Freeport-McMoRan Copper & Gold Inc. (NYSE: FCX) announced today that its oil and gas subsidiary, Freeport-McMoRan Oil & Gas (FM O&G), has entered into a definitive purchase and sale agreement to sell its Eagle Ford Shale assets for $3.1 billion to a subsidiary of Encana Corporation (Encana) (TSX, NYSE: ECA). FCX estimates after tax net proceeds from the transaction of approximately $2.5 billion.

Approximately half of the proceeds will be used to repay outstanding indebtedness and the balance is expected to be used for investments in additional assets in the Deepwater Gulf of Mexico to accelerate the company's growth initiatives.

James R. Moffett, Chairman of the Board; Richard C. Adkerson, Vice Chairman, and FCX
President and Chief Executive Officer; and James C. Flores, Vice Chairman, and FM O&G President
and Chief Executive Officer, said, "This transaction represents an important step in our ongoing
debt reduction plan while providing additional capital to enhance our portfolio of assets with
superior margins and growth characteristics."

Mr. Flores continued: "Our team built a solid position in the Eagle Ford which will enable
Encana to build on our success. The transaction is part of our plan to monetize approximately $4
billion in energy assets to provide meaningful proceeds for debt repayment while enabling us to
refocus our asset base and capital allocation on our strategic growth areas in the Gulf of Mexico,
which we believe provide industry leading margins, high impact long-term growth opportunities
and superior investment returns."

The Eagle Ford assets include all of FM O&G's interests on approximately 45,500 net acres with
estimated net proved reserves totaling 59 million barrels of oil equivalents (BOE) and estimated net proved and probable reserves of 69 million BOE at year-end 2013. Production from the field averaged 53,000 BOE per day in the first quarter of 2014.

The transaction effective date is April 1, 2014 and is expected to close by the end of the second quarter of 2014, subject to customary closing conditions and purchase price adjustments from the effective date until closing.

No gain or loss is expected to be recorded on the transaction.

Barclays Capital Inc. provided financial advisory services to FM O&G in connection with this transaction.

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