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Deutsche Bank Global Industrials & Basic Materials Conference – Freeport-Mcmoran Inc.

Freeport-Mcmoran Inc. · Jun 12, 2013 · 24 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. Deutsche Bank Global Industrials & Basic Materials Conference – Freeport-Mcmoran Inc. – slide 1
    EXPANDING RESOURCES Deutsche Bank Global Industrials & Basic Materials Conference Chicago, IL Kathleen L. Quirk Executive Vice President & CFO June 12, 2013 www.fcx.com
  2. Deutsche Bank Global Industrials & Basic Materials Conference – Freeport-Mcmoran Inc. – slide 2
    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…
  3. Deutsche Bank Global Industrials & Basic Materials Conference – Freeport-Mcmoran Inc. – slide 3
    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…
  4. Deutsche Bank Global Industrials & Basic Materials Conference – Freeport-Mcmoran Inc. – slide 4
    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…
  5. Deutsche Bank Global Industrials & Basic Materials Conference – Freeport-Mcmoran Inc. – slide 5
    EXPANDING RESOURCES Geographic & Commodity Diversification Pro Forma EBITDA (1) North Mining America 74% EBITDA Margin: 48% South America Mining: 50% 21% Oil & Gas: 75% Oil & Gas Africa Indonesia 26% 8% 23% (1)…
  6. Deutsche Bank Global Industrials & Basic Materials Conference – Freeport-Mcmoran Inc. – slide 6
    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…
  7. Deutsche Bank Global Industrials & Basic Materials Conference – Freeport-Mcmoran Inc. – slide 7
    EXPANDING RESOURCES Freeport-McMoRan Oil & Gas Portfolio Diverse Asset Base with Scale Positioned in Attractive U.S. MADDEN Basins Hedge Protected Cash Flows CALIFORNIA 90% of Revenues from Oil/Liquids (Brent/LLS Based…
  8. Deutsche Bank Global Industrials & Basic Materials Conference – Freeport-Mcmoran Inc. – slide 8
    EXPANDING RESOURCES Visible Organic Growth Mining Oil & Gas Targeting +5 Billion Pounds Production Targeted to More than Annual Production by 2015 Double Over Next 5 Years (37% Increase from 2012) Substantial Production…
  9. Deutsche Bank Global Industrials & Basic Materials Conference – Freeport-Mcmoran Inc. – slide 9
    EXPANDING RESOURCES Update on PT Freeport Indonesia QMS Training Center Tunnel Collapse in Underground Training (accident location) Grasberg Facility Outside of Mining Area Occurred open pit on May 14th 28 Fatalities; 10…
  10. Deutsche Bank Global Industrials & Basic Materials Conference – Freeport-Mcmoran Inc. – slide 10
    EXPANDING RESOURCES History of Underground Operations at PT-FI Initial Block Caving Operations Commenced in 1980 Decades of Successful and Safe Underground Mining Operations Designed to Highest International Standards…
  11. Deutsche Bank Global Industrials & Basic Materials Conference – Freeport-Mcmoran Inc. – slide 11
    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…
  12. Deutsche Bank Global Industrials & Basic Materials Conference – Freeport-Mcmoran Inc. – slide 12
    EXPANDING RESOURCES Grasberg Underground Development To date, completed 80 km of development Grasberg open pit in Grasberg BC & 53 km in DMLZ Tracking start-up schedule Grasberg Block Cave Kucing Liar DMLZ start-up in 2015…
  13. Deutsche Bank Global Industrials & Basic Materials Conference – Freeport-Mcmoran Inc. – slide 13
    EXPANDING RESOURCES Growing Production Profile Gold Sales (million ozs) Copper Sales (billion lbs) 2 1.8 1.8 5.0+ 5 1.4 4.5 1.0 Under 4.3 1 Review (1) 4 Under 3.65 Review (1) 0 2012 ____________________ 2013e 2014e…
  14. Deutsche Bank Global Industrials & Basic Materials Conference – Freeport-Mcmoran Inc. – slide 14
    EXPANDING RESOURCES FCX Pro forma (1) EBITDA, Cash Flows & Capital Expenditures 25 EBITDA (2) Operating Cash Flow (2)* CAPEX (3) 20 45% 15 Increase 2015e/ billions 2016e 45% Avg. 2015e/ Increase 10 2016e Avg. O&G…
  15. Deutsche Bank Global Industrials & Basic Materials Conference – Freeport-Mcmoran Inc. – slide 15
    EXPANDING RESOURCES Significant Debt Reduction Year-End Net Debt at Varying Copper Prices (US billions) 20 Target: 12 Billion 16.2 15 10 7.7 5 2.0 0 (3.5) -5 3/31/13 13-16 Avg. Copper Price 3.00 3.50 4.00 Pro…
  16. Deutsche Bank Global Industrials & Basic Materials Conference – Freeport-Mcmoran Inc. – slide 16
    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…
  17. Deutsche Bank Global Industrials & Basic Materials Conference – Freeport-Mcmoran Inc. – slide 17
    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…
  18. Deutsche Bank Global Industrials & Basic Materials Conference – Freeport-Mcmoran Inc. – slide 18
    EXPANDING RESOURCES EXPANDING RESOURCES Reference Slides 19
  19. Deutsche Bank Global Industrials & Basic Materials Conference – Freeport-Mcmoran Inc. – slide 19
    EXPANDING RESOURCES 2013e Operating Estimates Mining 2013e Unit Production Costs (per pound of copper) North South America America Indonesia Africa Consolidated Cash Unit Costs (1) (Under Review(3)) Site Production & Delivery (2)…
  20. Deutsche Bank Global Industrials & Basic Materials Conference – Freeport-Mcmoran Inc. – slide 20
    EXPANDING RESOURCES 2013e Operating Estimates Oil & Gas Rocky Mtns. & Operating Cost: 1.65/Mcfe California Haynesville Pricing: NYMEX Operating Cost: 27/bbl Pricing: Brent Based Gulf of Mexico Shelf/ Deepwater Operating Cost:…
  21. Deutsche Bank Global Industrials & Basic Materials Conference – Freeport-Mcmoran Inc. – slide 21
    EXPANDING RESOURCES Oil & Gas Cash Flows Targeted to be Self-funding Operating Cash Flow CAPEX* (US billions) 4.0 3.0 2.0 1.0 0.0 2013e 2014e 2015e NOTE: Assumes pricing of 100/bbl Brent crude for oil and…
  22. Deutsche Bank Global Industrials & Basic Materials Conference – Freeport-Mcmoran Inc. – slide 22
    EXPANDING RESOURCES Oil & Natural Gas Hedging Positions Oil Indexed to Brent 2013 2014 2015 Puts Collars 25k bbls/d 5k bbls/d 75k bbls/d 30k bbls/d Swaps 90 floor 95 floor 100 floor 90 floor 40k bbls/d 80 limit 70 limit 70…
  23. Deutsche Bank Global Industrials & Basic Materials Conference – Freeport-Mcmoran Inc. – slide 23
    EXPANDING RESOURCES Sensitivities Operating Change EBITDA Cash Flow (US millions) Copper: -/+ 0.10/lb 405 275 Molybdenum: -/+ 1.00/lb 80 65 Gold: -/+ 50/ounce 75 45 Diesel(1): -/+ 10% 100 75 Purchased Power(2): -/+ 10% 50…
  24. Deutsche Bank Global Industrials & Basic Materials Conference – Freeport-Mcmoran Inc. – slide 24
    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…

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