Print
Category: Front Page News Front Page News
Published: 05 August 2015 05 August 2015

PHOENIX, AZ, August 5, 2015 - Freeport-McMoRan Inc. (NYSE: FCX) today provided an update on its progress in reducing costs and capital spending

In response to current oil and gas market conditions, Freeport-McMoRan Oil and Gas (FM O&G) is deferring investments in several long-term projects. In addition, FM O&G has revised its estimate of the start-up of initial production from its recent drilling success in the Horn Mountain area to 2016 from the previously estimated start-up in 2017. This revised operating plan will allow FM O&G to continue to grow production and enhance cash flow in a weak oil and gas price environment.

The company announced the following revisions to its oil and gas capital expenditure and production outlook:

The revised plans, together with the previously announced potential initial public offering of a minority interest in FM O&G and potential other actions, will be pursued as required to fund oil and gas capital spending within cash flow for 2016 and subsequent years.

FCX is also completing a review of operating plans at each of its global copper and molybdenum operations and will revise operating and capital plans to strengthen its financial position in a weak copper price environment. The revised plans will target lower operating and capital costs to achieve maximum cash flow under the current market conditions. Production at certain operations challenged by low commodity prices will be curtailed. The company expects to complete this review promptly and will report its revised plans during the third quarter of 2015.

In addition, FCX will continue to assess opportunities to partner with strategic investors potentially interested in investing capital with FCX in the development of its oil and gas and its mining properties. FCX has a broad set of assets with valuable infrastructure and associated resources with attractive long-term production and development potential.

James R. Moffett, FCX’s Chairman, Richard C. Adkerson, Vice Chairman and Chief Executive Officer and James C. Flores, Vice Chairman and FM O&G Chief Executive Officer, said, “The steps we are taking are necessary under current market conditions to strengthen our financial positon and preserve our large resource base for improved future market conditions. Our high quality portfolio of long-lived assets, flexible operating structure and experienced management team position FCX for success. Our “leaner, longer” plan at FM O&G will enhance near-term cash flow while preserving long-term growth opportunities.”