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Management Presentations – Freeport-Mcmoran Inc.

Freeport-Mcmoran Inc. · Jun 24, 2013 · 176 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. Management Presentations – Freeport-Mcmoran Inc. – slide 1
    EXPANDING RESOURCES Management Presentations New York City June 24, 2013 www.fcx.com
  2. Management Presentations – Freeport-Mcmoran Inc. – slide 2
    EXPANDING RESOURCES Agenda 1:30 pm Welcome - Richard Adkerson 1:35 pm Chairmans Remarks - Jim Bob Moffett 2:00 pm Corporate Overview and Update on Indonesia - Richard Adkerson 2:30 pm Americas Mining Update - Red Conger 2:45…
  3. Management Presentations – Freeport-Mcmoran Inc. – slide 3
    EXPANDING RESOURCES EXPANDING RESOURCES James R. Moffett Chairman of the Board
  4. Management Presentations – Freeport-Mcmoran Inc. – slide 4
    EXPANDING RESOURCES Freeport-McMoRan History Long Track Record for Creating Value for Shareholders One of Most Active Oil/Gas Drillers on the GOM Shelf Early 1981 1988 1995 2007 2013 1900s Freeport Minerals Merged with…
  5. Management Presentations – Freeport-Mcmoran Inc. – slide 5
    The Grasberg Story EXPANDING RESOURCES 8th Wonder of the World 80 Reserve Growth 70 Worlds Premier Mining Resource Reserves + 60 Copper Production* billion lbs 50 Grasberg 100% State of the Art Engineering, 40 Discovery…
  6. Management Presentations – Freeport-Mcmoran Inc. – slide 6
    EXPANDING RESOURCES Indonesia Grasberg Grasberg Grasberg Underground Development Mill Complex 7
  7. Management Presentations – Freeport-Mcmoran Inc. – slide 7
    EXPANDING RESOURCES Phelps Dodge Transaction Exploration Drives Organic Growth Properties Underexplored Reserve Additions +46 billion lbs Cu* 1.7x cumulative production Invested 1 Billion in since 12/31/06 Candelaria/Ojos…
  8. Management Presentations – Freeport-Mcmoran Inc. – slide 8
    EXPANDING RESOURCES Exploration Update Brownfield & Greenfield Opportunities Brownfield Greenfield North America Serbia Potential Brownfield Reserve Indonesia Additions Africa (North & South America) South 40-60 billion…
  9. Management Presentations – Freeport-Mcmoran Inc. – slide 9
    EXPANDING RESOURCES Bagdad X-Section Significant Intercepts, 2011-2012 Drilling 1 km W E 2012 Reserve Pit 2012 Mineralized Material Cone Cu% 579 meters 0.51% Cu & =0 0.030% Mo =0.2 500 meters =0.3 0.42% Cu & =0.4…
  10. Management Presentations – Freeport-Mcmoran Inc. – slide 10
    EXPANDING RESOURCES Cerro Verde X-Section Significant Intercepts, 2012 Drilling 1 km W E Cerro Santa Verde Pit Rosa Pit 600 meters 0.69% Cu & 2012 Reserve Pit 0.028% Mo 2012 Mineralized Plan View Material Cone 528…
  11. Management Presentations – Freeport-Mcmoran Inc. – slide 11
    EXPANDING RESOURCES Morenci X-Section Significant Intercepts, 2010-2012 Drilling 1 km SW NE Morenci Western Copper Garfield 2012 Reserve Pit Plan View N Garfield Cu % 2012 Mineralized Material Cone Coronado =0…
  12. Management Presentations – Freeport-Mcmoran Inc. – slide 12
    EXPANDING RESOURCES El Abra X-Section Significant Intercepts, 2012 Drilling W 1 km E 2012 Reserve Pit 576 meters 0.71% Cu 2012 Mineralized Material Cone 441 meters 0.70% Cu Plan View Cu% 900 meters =0 0.66% Cu =0.2 =0.35…
  13. Management Presentations – Freeport-Mcmoran Inc. – slide 13
    EXPANDING RESOURCES Oil & Gas Assets Significant Current Operations & Resource Base California High Impact GOM Exploration Leverage Meaningful Development Opportunities. Lucius Spar Offloaded in Corpus Christi.…
  14. Management Presentations – Freeport-Mcmoran Inc. – slide 14
    EXPANDING RESOURCES Conceptual Model - Ultra-Deep Play Industry Leading Position in This New Exploration Frontier Drilling activities to date have successfully confirmed geologic model and have indicated the potential for a…
  15. Management Presentations – Freeport-Mcmoran Inc. – slide 15
    EXPANDING RESOURCES Management Structure Office of the Chairman James R. Moffett Chairman of the Board Richard C. Adkerson Vice Chairman, President and CEO James C. Flores Vice Chairman, President and CEO of Oil & Gas…
  16. Management Presentations – Freeport-Mcmoran Inc. – slide 16
    EXPANDING RESOURCES EXPANDING RESOURCES Richard C. Adkerson President & CEO
  17. Management Presentations – Freeport-Mcmoran Inc. – slide 17
    EXPANDING RESOURCES FCX A Premier U.S. Based Natural Resource Company Worlds Largest Publicly Traded Copper Producer High Quality U.S. Focused Oil & Gas Assets Strong Margins & Cash Flows Visible and Predictable Organic…
  18. Management Presentations – Freeport-Mcmoran Inc. – slide 18
    EXPANDING RESOURCES Completion of Oil & Gas Transactions Transactions Totaled 19 Billion PXP Closed May 31, 2013 MMR Closed June 3, 2013 FCX Financial Profile Pro Forma for O&G Transactions ( in billions) PF 2012 Revenues…
  19. Management Presentations – Freeport-Mcmoran Inc. – slide 19
    EXPANDING RESOURCES FCXs Global Footprint Major Operations & Development Projects North America1 All major mining assets majority-controlled and operated Reserves Cu 38.8 bn lbs Mo 2.7 bn lbs Copper Oil & Gas 688 MMBOE2 Sales…
  20. Management Presentations – Freeport-Mcmoran Inc. – slide 20
    EXPANDING RESOURCES Worlds Leading Copper Producers Top 10 Copper Producers (2013e) (000 t) 2,000 1,800 1,600 1,400 1,200 1,000 800 600 400 200 0 Codelco FCX BHP Billiton Xstrata Southern Rio Tinto…
  21. Management Presentations – Freeport-Mcmoran Inc. – slide 21
    EXPANDING RESOURCES Freeport-McMoRan Oil & Gas Portfolio Diverse Asset Base with Scale Positioned in Attractive U.S. Basins Hedge Protected Cash Flows 90% of Revenues from Oil/Liquids (Brent/LLS Based Pricing) Attractive…
  22. Management Presentations – Freeport-Mcmoran Inc. – slide 22
    EXPANDING RESOURCES Visible Organic Growth Mining Oil & Gas Targeting +5 Billion Pounds Potential to Double Production Annual Production by 2015 (37% Over Next 5 Years Increase from 2012) Substantial Production Capacity from…
  23. Management Presentations – Freeport-Mcmoran Inc. – slide 23
    EXPANDING RESOURCES Clear Objectives A Strong & Focused Organization Maximize Total Shareholder Returns Strong Management of the Base Operational Excellence Achieve Production Targets Effective Cost and Capital Management…
  24. Management Presentations – Freeport-Mcmoran Inc. – slide 24
    EXPANDING RESOURCES Ongoing Cost & Capital Initiatives Reviewing Entire Asset Portfolio for Opportunities to Reduce Costs and Defer Capital Expenditures Reviewing Potential Divestments of Non-strategic Assets Prepared to…
  25. Management Presentations – Freeport-Mcmoran Inc. – slide 25
    EXPANDING RESOURCES Phelps Dodge Case Study 26 Billion Acquisition in 2007 Rapid Delevering Highly Successful Transformational Transaction ( in bns) Asset & Geographic 20 Diversification 17.6 Significant Reserve Additions…
  26. Management Presentations – Freeport-Mcmoran Inc. – slide 26
    EXPANDING RESOURCES Copper Markets Favorable Long-term Demand Drivers & Supply Constraints Total Consumption Supply From Existing Mines 40,000 20,000 +4.7Mt (4.6Mt) +10.7Mt 34% (25%) 32,000 39% 15,000 +7.5Mt 38% 24,000 Cu…
  27. Management Presentations – Freeport-Mcmoran Inc. – slide 27
    EXPANDING RESOURCES World Class Copper Discoveries Are Extremely Rare Recoverable Copper Reserves 2013e Copper Production Million metric tons Thousand metric tons 0 5 10 15 20 25 30 0 200 400 600 800 1000 1200 1979 Escondida -…
  28. Management Presentations – Freeport-Mcmoran Inc. – slide 28
    EXPANDING RESOURCES Copper Supply Considerations Supply Development has been a Challenge Examples of Time to Develop Greenfield Projects Country Year of First Time Discovery Production in Years Oyu Tolgoi Mongolia 1997 2013 16…
  29. Management Presentations – Freeport-Mcmoran Inc. – slide 29
    EXPANDING RESOURCES Oil & Gas Market Fundamentals Population Growth, Urbanization and Global Economic Growth to Drive Energy Demand Global Energy Demand Expected to Grow by 35% by 2040 (1) Crude Oil and Natural Gas Primary…
  30. Management Presentations – Freeport-Mcmoran Inc. – slide 30
    EXPANDING RESOURCES Portfolio of World Scale Mines Positive Exploration Results Big Mines Get Bigger Mines with Potential Capacity for 1 billion lbs of copper per annum* Morenci Tenke Grasberg Fungurume Cerro Verde El Abra…
  31. Management Presentations – Freeport-Mcmoran Inc. – slide 31
    EXPANDING RESOURCES Brownfield Development Projects +1 Billion Pounds per Annum Increase by 2016 Tenke Phase II Expansion Morenci SO2 Furnace Ball Mill Tenke Phase 2 0.9 Billion(1) Morenci 1.4 Billion Completed on Time and…
  32. Management Presentations – Freeport-Mcmoran Inc. – slide 32
    EXPANDING RESOURCES Update on PT Freeport Indonesia QMS Training Center May 14th Tunnel Collapse in Training Facility (accident location) 28 Fatalities; 10 Injuries Sudden Ground Failure in Long-Standing Area is Unusual and…
  33. Management Presentations – Freeport-Mcmoran Inc. – slide 33
    EXPANDING RESOURCES History of Underground Operations at PT-FI Freeport is a Recognized Global Leader in Underground Mining and Development Initial Block Caving Operations Commenced in 1980 Decades of Successful and Safe…
  34. Management Presentations – Freeport-Mcmoran Inc. – slide 34
    EXPANDING RESOURCES Strong Safety Culture & Commitment Safety of Our Employees Our Highest Priority Hardrock Mining Industry with Inherent Safety Hazards Strong Safety Culture Throughout Organization Paramount in Maintaining…
  35. Management Presentations – Freeport-Mcmoran Inc. – slide 35
    EXPANDING RESOURCES Underground Development 240 miles of underground tunnels completed with an additional 540 miles projected through the life of the mine Tunnels are projected to total 780 miles over the life of the mine 540…
  36. Management Presentations – Freeport-Mcmoran Inc. – slide 36
    EXPANDING RESOURCES Mine Design Summary Grasberg BC Deep MLZ 1 bln t, 1.0% Cu & 0.8 g/t Au 0.5 bln t, 0.8% Cu & 0.7 g/t Au Reserves* 19 bln lbs Cu & 16 mm ozs Au 8 bln lbs Cu & 9 mm ozs Au 2,400 drawpoints 1,900 drawpoints El…
  37. Management Presentations – Freeport-Mcmoran Inc. – slide 37
    EXPANDING RESOURCES COW Discussion Items PT-FI has Strong Legal Contract (Term Through 2041) Positive Long-term Partnership with Government Since 1960s Discussion Topics: Royalties Downstream Processing Divestiture…
  38. Management Presentations – Freeport-Mcmoran Inc. – slide 38
    EXPANDING RESOURCES Tax Comparison 1992 - 2012 Royalty and Income-based Tax Comparison From 1992-2012 by Country ( in billions) 12 PTFIs 1991 Contract of Work Estimated Income Taxes and Royalties Under Other Countries…
  39. Management Presentations – Freeport-Mcmoran Inc. – slide 39
    EXPANDING RESOURCES Financial Benefits to Indonesia ( millions) Contributed Over 60 Billion to National GDP in Total Since 1992 Largest Private Employer in Papua and One of the Largest Taxpayers in Indonesia Last Next 5 Years…
  40. Management Presentations – Freeport-Mcmoran Inc. – slide 40
    EXPANDING RESOURCES Pro Forma Capitalization Table (US billions) Pro Forma March 31, 2013 Capitalization Amount % Rates Cash and Cash Equivalents (1) 4.6 -- Revolver (2) 0.0 0% FCX Senior Notes & Term Loan 13.5 25% 3.0% FMC…
  41. Management Presentations – Freeport-Mcmoran Inc. – slide 41
    EXPANDING RESOURCES Financial Policy Maintain Strong Balance Sheet & Liquidity Position Achieve Targeted Debt Reductions Over Next 3 Years Invest in Projects with Strong Financial Returns/Capital Discipline Anticipate…
  42. Management Presentations – Freeport-Mcmoran Inc. – slide 42
    EXPANDING RESOURCES Long Track Record of Generating Value for Shareholders History of Prudent Capital Exploration & Solid Financial Allocation & Opportunistic Development Performance Acquisitions Grasberg Discovery & Financial…
  43. Management Presentations – Freeport-Mcmoran Inc. – slide 43
    EXPANDING RESOURCES EXPANDING RESOURCES Red Conger President, Freeport-McMoRan Americas
  44. Management Presentations – Freeport-Mcmoran Inc. – slide 44
    EXPANDING RESOURCES Copper Reserves & Mineralized Material as of 12/31/12 billion lbs of copper 12/31/12 230 Mineralized Material (b) by Geographical Region Mineralized 113 Material (b) billion (contained copper) lbs North…
  45. Management Presentations – Freeport-Mcmoran Inc. – slide 45
    EXPANDING RESOURCES North America 7 Copper Mines & 2 Molybdenum Mines 12/31/12 (Billion lbs of Copper) Reserves: 39 Mineralized Material: 59 Morenci Sierrita 1.35 Billion lbs of Copper Sold in 2012 Unit Net Cash Cost of…
  46. Management Presentations – Freeport-Mcmoran Inc. – slide 46
    EXPANDING RESOURCES Colorado Molybdenum Mines Climax Mine 12/31/12 (Billion lbs of Molydenum) COLORADO From primary and by-product mines. Climax and Reserves: 3.4 Henderson Mines Mineralized Material: 3.7 83 Million lbs of…
  47. Management Presentations – Freeport-Mcmoran Inc. – slide 47
    EXPANDING RESOURCES South America 4 Copper Mines 12/31/12 (Billion lbs of Copper) Reserves: 39 Peru Mineralized Material: 22 Lima Cerro Verde (53.6%) 1.25 Billion lbs of El Abra (51%) Copper Sold in 2012 Candelaria/Ojos…
  48. Management Presentations – Freeport-Mcmoran Inc. – slide 48
    EXPANDING RESOURCES Morenci Mill Expansion Ball Mill June 2013 49
  49. Management Presentations – Freeport-Mcmoran Inc. – slide 49
    EXPANDING RESOURCES Morenci Mill Expansion Flotation 50
  50. Management Presentations – Freeport-Mcmoran Inc. – slide 50
    EXPANDING RESOURCES Morenci Mill Expansion Flotation 51
  51. Management Presentations – Freeport-Mcmoran Inc. – slide 51
    EXPANDING RESOURCES Cerro Verde Mill Expansion CV II Site Preparation June 2013 52
  52. Management Presentations – Freeport-Mcmoran Inc. – slide 52
    EXPANDING RESOURCES Cerro Verde Mill Expansion Core Material Haul Road 53
  53. Management Presentations – Freeport-Mcmoran Inc. – slide 53
    EXPANDING RESOURCES El Abra Development Potential Current Production 300 mm lbs per Annum Exploration Results Indicate Potential Sulfide Resource Engaged in Studies to Evaluate Potential Large Scale Milling Operation Potential for…
  54. Management Presentations – Freeport-Mcmoran Inc. – slide 54
    EXPANDING RESOURCES Americas Growth Outlook Copper Production billion lbs per year 3.5 Potential Projects under review 2.9 Cerro Verde Expansion 2.6 Morenci Morenci 2.4 Expansion Chino Mill Restart Exp. 2 Ajo El…
  55. Management Presentations – Freeport-Mcmoran Inc. – slide 55
    EXPANDING RESOURCES EXPANDING RESOURCES Break
  56. Management Presentations – Freeport-Mcmoran Inc. – slide 56
    Oil & Gas Business Overview Jim Bob Moffett, Jim Flores and team
  57. Management Presentations – Freeport-Mcmoran Inc. – slide 57
    EXPANDING RESOURCES Business Profile U.S. based oil and gas production business, industry leading operating cash margin 1,200 employees Houston based with additional offices throughout California, Louisiana and Texas Assets and…
  58. Management Presentations – Freeport-Mcmoran Inc. – slide 58
    EXPANDING RESOURCES Key Attributes Solid base of oil operating assets provides strong cash margins Reinvestment in high ROR development projects and portfolio of high impact exploration Cash margin growth at 15% CAGR 4
  59. Management Presentations – Freeport-Mcmoran Inc. – slide 59
    EXPANDING RESOURCES Dynamic Operating Cash Margin Growth 1Q13 vs 1Q12 /BOE Note: Companies referenced in this chart: Apache, Anadarko, Chesapeake, ConocoPhillips, Devon, EOG, Marathon and Occidental. Source: public filings.…
  60. Management Presentations – Freeport-Mcmoran Inc. – slide 60
    EXPANDING RESOURCES Operating Cash Margin Leader Quarter Ending March 31, 2013 /BOE 60.00 50.00 40.00 30.00 20.00 10.00 0.00 FM O&G Note: Companies referenced in this chart: Apache, Anadarko, Chesapeake,…
  61. Management Presentations – Freeport-Mcmoran Inc. – slide 61
    EXPANDING RESOURCES Strong Cash Margin From Operating Assets Eagle Ford Haynesville 3.3 B Madden GOM 2013 California + 1,050 MM R/P 38.0 yrs (1) + 1,400 MM R/P 13.6 yrs (1) = Cash 850 MM Margin PV-10 3.4 B (2)…
  62. Management Presentations – Freeport-Mcmoran Inc. – slide 62
    EXPANDING RESOURCES Potential to Triple Cash Margin by 2020 Through Investment Est. % of Future Cash Margin Development 65% Brownfield 35%-45% 3.3 B Pre-Tax ROR(1) Cash Margin in 2013 12% Exploration 25%-35% 9.3 B Pre-Tax…
  63. Management Presentations – Freeport-Mcmoran Inc. – slide 63
    EXPANDING RESOURCES Strong Growth Potential and High ROR on Invested Capital Risked Net Pre-Tax Pre-Tax Assets ROR (1) Resource (2) PV-10 (3) MMBOE Billion Operating 74% 1,565 20.1 Development 43% 644 10.4 Exploration 31%…
  64. Management Presentations – Freeport-Mcmoran Inc. – slide 64
    EXPANDING RESOURCES Operating Assets Strong Potential and High ROR on Invested Capital Risked Net Pre-Tax Pre-Tax Assets Resource PV-10 (2) (3) ROR (1) MMBOE Billion California 60% 350 7.3 Eagle Ford 40% 78 1.4 Deepwater GOM…
  65. Management Presentations – Freeport-Mcmoran Inc. – slide 65
    EXPANDING RESOURCES Operating Assets Highlighted Assets San Joaquin Valley-Midway Sunset Eagle Ford Gathering System 37,200 BOE/D 1Q 2013 Total 44,700 BOE/D 1Q 2013 Production CA Production 500+ Future Locations 2,300+ Future…
  66. Management Presentations – Freeport-Mcmoran Inc. – slide 66
    EXPANDING RESOURCES Operating Assets Highlighted Gas Assets Haynesville Drilling Site Madden Lost Cabin Gas Plant 134,200 MCFE/D 1Q 2013 24,700 MCFE/D 1Q 2013 Production Production 11,000+ Future Locations 30+ Future…
  67. Management Presentations – Freeport-Mcmoran Inc. – slide 67
    EXPANDING RESOURCES Development Assets Highlighted Assets - Holstein, Marlin & Horn Mtn Capacity Capacity Capacity 113,500 BOPD 60,000 BOPD 75,000 BOPD 142,300 MCFD 235,000 MCFD 72,000 MCFD Truss SPAR: 149 ft. diameter Tension Leg…
  68. Management Presentations – Freeport-Mcmoran Inc. – slide 68
    EXPANDING RESOURCES Development Assets Highlighted Project - Lucius Lucius Spar Lucius Topside On Time/On Budget Processing Capacity 80,000 120,000 BOPD 450,000 MCFD 1st Oil - Mid 2014 14
  69. Management Presentations – Freeport-Mcmoran Inc. – slide 69
    EXPANDING RESOURCES Development Assets High ROR Drives Powerful Growth Strong development project portfolio that provides compounding growth from existing, large, near-term projects 15
  70. Management Presentations – Freeport-Mcmoran Inc. – slide 70
    EXPANDING RESOURCES Development Assets Eagle Ford, GOM Deepwater & Ultra-Deep Texas Louisiana Lineham Creek Eagle Ford King West Deep HM NWFX Viosca Marlin Eagle Ford Davy Jones HM Alliance Knoll HM Kudu Risked Net Resource 76…
  71. Management Presentations – Freeport-Mcmoran Inc. – slide 71
    EXPANDING RESOURCES Dynamic Production Growth Portfolio From Development Assets Operating Development 350 300 250 King MBOE/D Horn Mtn West King Tango Phobos 200 Blackbeard Redev. Horn Mtn Lineham East Holstein Horn…
  72. Management Presentations – Freeport-Mcmoran Inc. – slide 72
    EXPANDING RESOURCES Development Assets Strong Growth Potential and High ROR on Invested Capital Risked Net Pre-Tax Pre-Tax Assets Resource PV-10 (2) (3) ROR (1) MMBOE Billion Brownfield Development Assets Deepwater GOM 45% 318…
  73. Management Presentations – Freeport-Mcmoran Inc. – slide 73
    EXPANDING RESOURCES Operating & Development Assets Operational Plan FM O&G Net Production Cash Margin(1)(2) 480 8,000 420 7,000 360 6,000 300 5,000 MBOE/D MM 240 4,000 180 3,000 120 2,000 3.0 B 2.2 B 2.4 B 60 2.0 B…
  74. Management Presentations – Freeport-Mcmoran Inc. – slide 74
    EXPANDING RESOURCES Exploration Assets High Impact Assets Drive Powerful Growth Dynamic exploration portfolio continues to create new high cash margin development projects that will fuel future profitable growth for the company and…
  75. Management Presentations – Freeport-Mcmoran Inc. – slide 75
    EXPANDING RESOURCES Exploration Assets Gulf of Mexico Deepwater & Ultra-Deep Lomond North Texas Louisiana England Marlin Viosca Knoll Platinum Ultra-Deep GOM (7 Prospects) Barbosa Horn Mountain Risked Net Resource 317 MMBOE…
  76. Management Presentations – Freeport-Mcmoran Inc. – slide 76
    EXPANDING RESOURCES Dynamic Production Growth Portfolio From Exploration Assets Operating Development Exploration 350 Captain Tara Blood 300 Titanium Tungsten Martinique Platinum 250 England MBOE/D Calico Copper Jack…
  77. Management Presentations – Freeport-Mcmoran Inc. – slide 77
    EXPANDING RESOURCES Exploration Assets Strong Potential and High ROR on Invested Capital Risked Net Pre-Tax Pre-Tax Assets Resource PV-10 (2) (3) ROR (1) MMBOE Billion High Impact Exploration Assets Ultra-Deep GOM 25% 463 2.5…
  78. Management Presentations – Freeport-Mcmoran Inc. – slide 78
    EXPANDING RESOURCES Strong Growth Potential and High ROR on Invested Capital Risked Net Pre-Tax Assets Pre-Tax Resource (2) PV-10 (3) ROR (1) MMBOE Billion Operating California 60% 350 7.3 Eagle Ford 40% 78 1.4 Deepwater GOM…
  79. Management Presentations – Freeport-Mcmoran Inc. – slide 79
    EXPANDING RESOURCES Exploration Risk Sensitivity % of Exploration 0% 25% 50% 75% Success MBOEPD (1) 256 462 668 874 Risked Net Resource (2) 2,209 3,254 4,299 5,344 MMBOE Pre-Tax PV-10 Billion (3) 31 42 53 64 (1)…
  80. Management Presentations – Freeport-Mcmoran Inc. – slide 80
    EXPANDING RESOURCES Total Operational Plan Operating, Development & Exploration Assets FM O&G Net Production Cash Margin(1)(2) 600 9.3 B 10,000 Cash Margin in 2020 500 8,000 400 MBOE/D 6,000 3.3 B MM 300 Cash…
  81. Management Presentations – Freeport-Mcmoran Inc. – slide 81
    EXPANDING RESOURCES Strong Cash Margin From Operating Assets Eagle Ford Haynesville 3.3 B Madden GOM 2013 California + 1,050 MM R/P 38.0 yrs (1) + 1,400 MM R/P 13.6 yrs (1) = Cash 850 MM Margin PV-10 3.4 B (2)…
  82. Management Presentations – Freeport-Mcmoran Inc. – slide 82
    EXPANDING RESOURCES California Decline Curve & Forecast 100 90 San Joaquin Valley-Midway Sunset 80 70 60 50 3P Net MBOEPD 40 Proved 30 20 PDP 10 Jan10 Jan11 Jan12 Jan13 Jan14 Jan15 Jan16 Jan17 Jan18…
  83. Management Presentations – Freeport-Mcmoran Inc. – slide 83
    EXPANDING RESOURCES Eagle Ford Decline Curve & Forecast 100 Eagle Ford Gathering System 3P & Development Resource Net MBOEPD 10 Proved PDP 1 Jan10 Jan11 Jan12 Jan13 Jan14 Jan15 Jan16 Jan17 Jan18 Jan19…
  84. Management Presentations – Freeport-Mcmoran Inc. – slide 84
    EXPANDING RESOURCES Haynesville/ Madden Decline Curve & Forecast Haynesville Drilling Site 100 3P Net MBOEPD Proved 10 Madden Lost Cabin Gas Plant PDP 1 Jan10 Jan11 Jan12 Jan13 Jan14 Jan15 Jan16 Jan17 Jan18…
  85. Management Presentations – Freeport-Mcmoran Inc. – slide 85
    EXPANDING RESOURCES Holstein Decline Curve & Forecast 100 3P & Development Resource 10 3P Net MBOEPD SI for fa cility Proved modi fications to a ccomodate s ubsea tiebacks 1 PDP 0 2013 2014 2015 2016…
  86. Management Presentations – Freeport-Mcmoran Inc. – slide 86
    EXPANDING RESOURCES Horn Mountain Decline Curve & Forecast 100 3P + Development Resource Curta i led for Pa s cagoula Pl ant turna round Net MBOEPD 10 3P Proved SI for fa cility modi fications to a ccomodate…
  87. Management Presentations – Freeport-Mcmoran Inc. – slide 87
    EXPANDING RESOURCES Marlin Decline Curve & Forecast 100 3P + Development Resource SI for fa cility 10 modi fications to 3P a ccomodate Net MBOEPD s ubsea tiebacks Proved 1 PDP 0 2013 2014 2015 2016 2017…
  88. Management Presentations – Freeport-Mcmoran Inc. – slide 88
    EXPANDING RESOURCES Lucius Decline Curve & Forecast 100 Net MBOEPD 3P + Development 10 Resource 3P Proved 1 2013 2014 2015 2016 2017 2018 2019 2020 34
  89. Management Presentations – Freeport-Mcmoran Inc. – slide 89
    EXPANDING RESOURCES Operating Assets Strong Potential and High ROR on Invested Capital Risked Net Pre-Tax Pre-Tax Assets Resource PV-10 (2) (3) ROR (1) MMBOE Billion California 60% 350 7.3 Eagle Ford 40% 78 1.4 Deepwater GOM…
  90. Management Presentations – Freeport-Mcmoran Inc. – slide 90
    EXPANDING RESOURCES Dynamic Production Growth Portfolio From Development Assets Operating Development 350 300 250 King MBOE/D Horn Mtn West King Tango Phobos 200 Blackbeard Redev. Horn Mtn Lineham East Holstein Horn…
  91. Management Presentations – Freeport-Mcmoran Inc. – slide 91
    EXPANDING RESOURCES Development Assets Eagle Ford, GOM Deepwater & Ultra-Deep Texas Louisiana Lineham Creek Eagle Ford King West Deep HM NWFX Viosca Marlin Eagle Ford Davy Jones HM Alliance Knoll HM Kudu Risked Net Resource 76…
  92. Management Presentations – Freeport-Mcmoran Inc. – slide 92
    EXPANDING RESOURCES Development Assets Overview Table of Contents GOM Deepwater Development Lucius Phobos Holstein + tiebacks Marlin Hub King/Dorado + tiebacks Horn Mountain + tiebacks GOM Ultra-Deep Development Lineham Creek…
  93. Management Presentations – Freeport-Mcmoran Inc. – slide 93
    EXPANDING RESOURCES Lucius-Phobos Development Louisiana Texas Breton Main Pass Sound Main S & E Add Marlin Pass West Cam Hub SMI Eugene Isl. Platinum Dorado Viosca Knoll East Cam N. Add West Grand South High Island West…
  94. Management Presentations – Freeport-Mcmoran Inc. – slide 94
    EXPANDING RESOURCES Lucius-Phobos Development Lucius Discovery Composite Type Log Cascade Discovery Wilcox Type Log Lucius 1st Oil Mid 2014 Thick Pliocene oil column, large upside Miocene potential PL IOCENE Resource…
  95. Management Presentations – Freeport-Mcmoran Inc. – slide 95
    EXPANDING RESOURCES Lucius Development C Sand Keathley Canyon 919 OCS-G 21447 3BP1 A Lucius 5 Currently Drilling C Sands Lucius 1 429 NFP Lucius 6 Lucius 3 Lucius 2 A Thick Pliocene oil column Oil Gas…
  96. Management Presentations – Freeport-Mcmoran Inc. – slide 96
    EXPANDING RESOURCES Lucius Development D Sand Keathley Canyon 919 OCS-G 21447 3BP1 Lucius 5 Currently Drilling Will not penetrate D-1 Sand A Lucius 4 D Sands 200 NFP A Large upside Miocene potential Oil Gas…
  97. Management Presentations – Freeport-Mcmoran Inc. – slide 97
    EXPANDING RESOURCES NW-SE Seismic Line Through Lucius 5 Seismic Image Removed PL IOCENE Per Licensing Agreement MIOCENE Oil Gas 43
  98. Management Presentations – Freeport-Mcmoran Inc. – slide 98
    EXPANDING RESOURCES Phobos Development Louisiana Texas Breton Main Pass Sound Main S & E Add Marlin Pass West Cam Hub SMI Eugene Isl. Platinum Dorado Viosca Knoll East Cam N. Add West Grand South High Island West Cam…
  99. Management Presentations – Freeport-Mcmoran Inc. – slide 99
    EXPANDING RESOURCES Phobos Development Wilcox Potential stand alone or tieback to Lucius. Cascade Discovery Wilcox Type Log Seismic Image Removed Per Licensing Phobos 1BP2 Agreement Proven oil column in Upper…
  100. Management Presentations – Freeport-Mcmoran Inc. – slide 100
    EXPANDING RESOURCES Holstein Development Louisiana Texas Breton Main Pass Sound Main S & E Add Marlin Pass West Cam Hub SMI Eugene Isl. Platinum Dorado Viosca Knoll East Cam N. Add West Grand South High Island West Cam…

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