Skip to main content 3rd Quarter 2014 Earnings Conference Call – Freeport-Mcmoran Inc. Investor Presentation | Shale Experts
Loading...
Pm

3rd Quarter 2014 Earnings Conference Call – Freeport-Mcmoran Inc.

Freeport-Mcmoran Inc. · Oct 28, 2014 · 37 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. 3rd Quarter 2014 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 1
    3rd Quarter 2014 Earnings Conference Call October 28, 2014 www.fcx.com
  2. 3rd Quarter 2014 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 2
    Financial Highlights Sales Data 3Q14 3Q13 Copper Consolidated Volumes (mm lbs) 1,077 1,041 Average Realization (per lb) 3.12 3.28 Site Production & Delivery Unit Costs (per lb) 1.91 1.85 Unit Net Cash Costs (per lb) 1.34 (1) 1.46…
  3. 3rd Quarter 2014 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 3
    3Q14 Highlights Focused on Execution Solid Performance from Global Mining Units and O&G Operations - Indonesian Operations Resumed Concentrate Exports in August Advanced Important Projects for Profitable Future Growth - Morenci…
  4. 3rd Quarter 2014 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 4
    Agreement to Divest Candelaria/ Ojos del Salado Sale of FCXs 80% Interest to Lundin for 1.8 billion in Cash Plus Contingent Consideration Contingent Consideration Up to 0.2 billion - Calculated as 5% of Net Copper Revenues when…
  5. 3rd Quarter 2014 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 5
    Copper Market Commentary Global Macroeconomics Contributing to Demand Uncertainty - Europe Facing Financial and Geopolitical Headwinds - China Growth Rate Slowing - Copper Consumption Remains Strong U.S. Market Continues to Grow at…
  6. 3rd Quarter 2014 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 6
    3Q 2014 Mining Operating Summary 3Q14 Unit Production Costs Cash Unit Costs North South (per pound of copper) America America Indonesia Africa Consolidated Site Production & Delivery 1.83 1.67 2.42 1.61 1.91 By-Product Credits…
  7. 3rd Quarter 2014 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 7
    Value Creation Focus INVESTMENT CASH MINERAL RESERVE IN ATTRACTIVE PRODUCTION DEVELOPMENT FLOWS/ RESOURCES ADDITIONS GROWTH PROJECTS RETURNS FCX Consolidated Copper Resources at 12/31/2013 (a) Recoverable Reserves 111 bn lbs…
  8. 3rd Quarter 2014 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 8
    Brownfield Development Projects Morenci Mill Expansion Cerro Verde Mill Expansion 1.6 billion 4.6 billion Construction substantially complete Detailed engineering & procurement Commenced operations in May 2014 complete; construction…
  9. 3rd Quarter 2014 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 9
    Grasberg BC & DMLZ Underground Mine Development History of PT-FI UG Operations Completed development on access to underground ore bodies Recognized Global Leader in Underground Mining & Development Completed 122 km of development…
  10. 3rd Quarter 2014 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 10
    Indonesian Matters Resumed Export Shipments in August 2014 Sales Had Been Restricted Since Mid-January Execution of MOU with Government of Indonesia Enabled Resumption of Exports Agreement to Pay Increased Royalties Agreement to…
  11. 3rd Quarter 2014 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 11
    Brownfield Development Studies El Abra Bagdad Large sulfide resource 0.4% Cu Large sulfide resource 0.3% Cu supports 260 mt/d mill Resource supports potential to Potential incremental production more than double mill capacity* 750…
  12. 3rd Quarter 2014 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 12
    Morenci Sulfide Potential Exploration Drives the Mine Plan 1 km % Copper N =0.00% =0.10% =0.20% =0.30% 2013 Reserve Pit =0.40% =0.60% =0.80% =1.00% +0.3% Cu Potential Resource 25 billion lbs Cu* * 100% operations 13
  13. 3rd Quarter 2014 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 13
    Lone Star Sulfide Potential Exploration Drives the Mine Plan Safford San Lone Star 2013 Resource Pit N Juan Dos Pobres Pit Pit Lone Star Pit Safford Leach Leach Pad Cu 0.30% Stockpile Oxide Chalcocite Lone Star Project…
  14. 3rd Quarter 2014 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 14
    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 Grasberg Tenke Cerro Verde Fungurume El Abra * Grasberg capable…
  15. 3rd Quarter 2014 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 15
    3Q 2014 Oil & Gas Operating Summary Continued Steady Production Performance Brent and HLS Pricing per Bbl from California & Deepwater GOM 150 125 Sales: 12.5 MMBOE 100 Slightly Above July Estimate 75 Over 90% of O&G Revenues…
  16. 3rd Quarter 2014 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 16
    Reserves & Resource Potential Year-end 2013 Proved Reserves & Net Unrisked Resource Potential 4.4 3.3 18.1 5.1 0.4 0.2 0.2 N/A 0.3 N/A Reserves Resource Reserves Resource Reserves Resource Reserves Resource Reserves…
  17. 3rd Quarter 2014 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 17
    Portfolio Optimization Sold Eagle Ford Shale Interests Net Resource Potential Comparison for 3.1 bn in June 2014 (MMBOE) Reinvested 1.4 bn in Deepwater GOM 1,300 Interests, Including: - Lucius Oil Development (5.1% WI) -…
  18. 3rd Quarter 2014 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 18
    Strategic Position in Deepwater Gulf of Mexico Major Exploration/ Operating/ Development Exploitation Producing Assets Projects Opportunities Significant Current Oil Financially Attractive Strategic Acreage Near Production…
  19. 3rd Quarter 2014 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 19
    Deepwater Gulf of Mexico Focus Areas Development/Exploration Project Inventory Net Unrisked Louisiana Resource Potential Asset Area (Billion BOE) Green Canyon Area 1.6 Marlin/Horn Mountain Area 0.6 Dorado Marlin Vito Area 1.0…
  20. 3rd Quarter 2014 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 20
    Holstein Deep Drilling Results Subsea Tie-back Opportunity Green Canyon Area Miocene Type Log to the Holstein facility GC 643 (4 Miles West) OCS-G 16772 1 & 1ST2 2 Successful Wells Drilled on Structure in 2006/2009 (500 Net Oil…
  21. 3rd Quarter 2014 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 21
    Lucius & Heidelberg Deepwater GOM Development Projects Commissioning Work is in Progress First Production Expected in 4Q 2014 300+ MMBOE Gross Resource Potential Processing Capacity 80,000 BOPD 450,000 MCFD FM O&G 25.1% WI Lucius…
  22. 3rd Quarter 2014 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 22
    Inboard Lower Tertiary/ Cretaceous Activities Industry Leader in Emerging New ILT Trend Cretaceous Tuscaloosa Trend Cumulative Production 3.1 TCF, 121 mmbc Tuscaloosa Trend LOUISIANA Farthest Gate West Lineham Creek…
  23. 3rd Quarter 2014 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 23
    2014e Outlook Sales Outlook Unit Cost Copper(1): 3.9 Billion lbs. 1.52/lb(3) of Copper Gold(1): 1.2 Million ozs. 21/BOE Molybdenum: 95 Million lbs. Oil Equivalents(2): 56.2 MMBOE (70% Oil) Operating Cash Flows (4) Capital…
  24. 3rd Quarter 2014 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 24
    Sales Profile Copper Sales (billion lbs) (1) Gold Sales (million ozs) (2) 3 6 2 2.5 5.5 1 1.2 1.2 1.3 0 4 4.4 2013 2014e 2015e 2016e 4.1 3.9 Note: Consolidated gold sales include 123k ozs in 2013, 120k ozs in 2014e, 125k ozs…
  25. 3rd Quarter 2014 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 25
    2014e Quarterly Sales Gold Sales (thousand ozs) Copper Sales (million lbs) 700 1,250 525 525 350 350 175 1,077 187 159 1,000 0 1,000 1Q14 2Q14 3Q14 4Q14e (1) 968 Note: Consolidated gold sales include approximately 20k ozs in…
  26. 3rd Quarter 2014 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 26
    2014e Operating Estimates 2014e Unit Production Costs (per pound of copper) North South America America Indonesia Africa Consolidated Cash Unit Costs (1) Site Production & Delivery (2) 1.85 1.61 2.72 1.55 1.91 By-product Credits…
  27. 3rd Quarter 2014 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 27
    EBITDA and Cash Flow at Various Copper Prices Average EBITDA (1,200 Gold, 10 Molybdenum & 100 Oil) (US billions) 20 15 10 5 2015e/2016e Average 0 Cu 3.00/lb Cu 3.50/lb Cu 4.00/lb Average Operating Cash Flow (excluding…
  28. 3rd Quarter 2014 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 28
    Capital Expenditures (1) (US billions) 8 7.5 7.5 6.5 6 Oil & Gas 3.5 3.4 4.0 4 Major Projects TOTAL 2.7 (2) 2 3.0 MINING 4.0 1.4 4.1 2.5 Other Mining 1.3 1.1 1.1 0 2014e 2015e 2016e (1) Capital expenditure estimates…
  29. 3rd Quarter 2014 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 29
    Committed to Balance Sheet Management Strong Track Record Large Resource Base with Strong Cash Flows and Capital Discipline 9/30/2014 Balances ( in bns) 2014 Completed/Announced Asset Sales 5 bn in Gross Proceeds (4.3 bn after…
  30. 3rd Quarter 2014 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 30
    Summary A Strong & Focused Organization Maximize Total Shareholder Returns Strong Management of the Base Operational Excellence Achieve Production Targets Effective Cost and Capital Management Manage HS&E and Other Inherent…
  31. 3rd Quarter 2014 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 31
    Reference Slides
  32. 3rd Quarter 2014 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 32
    Quarterly Oil & Gas Operating Summary 3Q 2014 Oil & Gas Margins by Region Haynesville/ Operating Margin Madden/ California Other GOM Consolidated Realized Revenue per BOE 86.03 28.92 80.36 69.08 Cash Production Costs per BOE 37.96…
  33. 3rd Quarter 2014 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 33
    2H 2014e Oil & Gas Operating Estimates Madden & Operating Cost: 1.85/Mcfe California Haynesville Pricing: NYMEX Operating Cost: 36/bbl Pricing: Brent Based Gulf of Mexico Operating Cost: 18/bbl Pricing: HLS/NYMEX 2H 2014e…
  34. 3rd Quarter 2014 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 34
    Oil & Natural Gas Hedging Positions Oil Hedges Indexed to Brent 4Q 2014 100% Hedged 2015 Puts Unhedged 75 MBbls/d 30 MBbls/d 21% 90 floor 95 floor 70 limit 75 limit 5.74 ADP 6.09 ADP Puts 5 MBbls/d 100 floor 84 MBbls/d 80…
  35. 3rd Quarter 2014 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 35
    PT-FI Mine Plan PT-FIs Share of Metal Sales, 2014e-2021e 2014e 2018e PT-FI Share Total: 5.4 billion lbs copper Copper, billion lbs Annual Average: 1.1 billion lbs Gold, million ozs 2014e 2018e PT-FI Share Total: 8.0 million ozs…
  36. 3rd Quarter 2014 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 36
    PT Freeport Indonesia Grasberg Minerals District Life-of-Mine Production Sequencing* Plan View 206mm mt Grasberg Open Pit 0.95% Cu & 1.08 g/t Au 152mm mt Grasberg & DOZ 0.56% Cu & 0.73 g/t Au Kucing Liar Grasberg Big Gossan…
  37. 3rd Quarter 2014 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 37
    Sensitivities (US millions) 2015e/2016e Operating Change EBITDA Cash Flow Copper: +/- 0.10/lb 480 335 Molybdenum: +/- 1.00/lb 90 70 Gold: +/- 50/ounce 90 50 Oil Sales: +/- 5/bbl(1) 225 180 Oil Sales Net of Diesel Costs:(1,2)…

From the store

Browse maps, data & reports in the Shale Experts store