FCX to Acquire PXP and MMR in Transactions Totaling 20 Billion, Creating a Premier U.S. Based Natural Resource Company December 5, 2012 www.fcx.com CONNECTING THE FUTURE
Additional Information about the Proposed Transactions and Where to Find It PXP Transaction In connection with the proposed transaction, FCX intends to file with the SEC a registration statement on Form S-4 that will include a proxy…
Transaction Highlights Creates A Premier U.S. Based Natural Resource Company Adds High Quality U.S. Oil & Gas Assets to World-Class Mining Portfolio Asset Quality Consistent with Characteristics Sought in Mining Business Large,…
Transaction Summary PXP MMR (1) Price FCX to acquire PXP for: 0.6531 shares of FCX common stock and 25.00 in cash, FCX to acquire MMR for: 14.75 cash plus 1.15 Ultra-Deep Royalty Trust equivalent to total consideration of 50.00…
A Premier U.S. Based Natural Resource Company Pro forma FCX will be the 5th largest U.S. domiciled natural resource company and the 5th largest global mining company by enterprise value Top US Domiciled Resource Companies* Top Global…
Benefits of the Transactions High Quality U.S. Resource Base Provides Exposure to Energy Market with Attractive Fundamentals - 85% of Acquired Revenues from Oil (1) - Favorable Entry Point to Source of Low Cost, Long-term Gas Supply…
Enhanced Commodity Exposure to Long-term Global Growth Trends Emerging Market Growth and Urbanization Will Continue to Drive Commodity Demand Global Energy Consumption Expected to Grow by 30% by 2035 (1) Global Refined Copper…
History & Corporate Relationships FCX & MMR Spun out of Parent Company Freeport-McMoRan Inc. in Mid-90s Parent had Long History in Natural Resources Business Including Minerals, Oil & Gas, Fertilizer Management has Significant…
Proven Management Team Complementary Management Teams with Substantial Experience and Track Record of Success in Mining and Oil & Gas Exploration and Development Global Industry Leading Capabilities: - Operational Excellence -…
Phelps Dodge Case Study Highly Successful Rapid Delevering Transformational Transaction ( in bns) Asset & Geographic 20 Diversification 17.6 Significant Reserve Additions 15 +46 billion lbs Cu* Developed World-Class Copper 10…
Acquired Assets
Acquired Asset Overview PXP Strong Current Cash Flows with Growth Onshore Established California Oil Production Growing Oil Production Profile in Eagle Ford Large Natural Gas Resource Position in Haynesville Offshore Quality…
High Quality U.S. Oil & Gas Portfolio Proved Reserves (1) Natural Gas 575 MMBOE Oil Other 5% Haynesville 22% California 6% GOM 38% Shelf Deepwater GOM 4% 25% Eagle Ford 2013e Production by Region 175 MBOE/d 2013e…
Oil & Gas Reserves & Resources (MMBOE) PXP(1) MMR(2) Total % Oil/Liquids Proved Reserves 538 37 575 64% Probable Reserves 337 11 348 44% Possible Reserves 646 12 658 29% Total 1,521 60 1,581 45% Near-term Resource Potential…
Enhanced Exploration Leverage with Multiple Near-term Catalysts Deepwater GOM Shallow Water Ultra-Deep Onshore U.S. Near-term Net Potential 3 Wells Drilling Eagle Ford 71 MMBOE of 995 MMBOE Recent Positive Results on Haynesville…
Pro Forma Combined Company Profile
FCXs Global Footprint Major Operations & Development Projects North America1 All major mining assets majority-controlled and operated Reserves Cu 40.6 bn lbs Mo 2.71 bn lbs Oil & Gas 575 mm bbls2 Copper Sales Copper/Gold/Silver…
Combined Reserves and Resources (billion lbs of copper) (million barrels of oil equivalents) 7,900 235 115 Mineralized Near-term billion Material (b) Potential: 6,300 lbs (contained copper) 120 at 2.20 Cu price 923…
Highly Attractive Brownfield Copper Development Projects Expansion Projects in Progress North America* Mill Expansions (t/d) Incr. Cu (mm lbs/yr) Capital* Achieve ( blns) Full Rates Morenci Expansion Cerro Verde (360K) 600 4.4…
Focused and Disciplined Capital Allocation Philosophy Maintain Strong Balance Sheet & Credit Profile Ensure Establish Short, Allocate Capital to Focus on Potential Medium and Long Low Cost, Long-lived, Largest is Well Term…
Capital Expenditures (1) (2) Major Mining Projects Other Mining Oil & Gas (US billions) 8 7.3 7.1 6.3 6 2.5 2.9 3.3 4 1.6 1.4 1.0 2 3.0 3.0 (2) 2.0 0 2013e 2014e 2015e (1) Capital expenditure estimates include…
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 4.50/MMbtu for natural gas…
Financial Policy Maintain Strong Balance Sheet & Liquidity Position Reduce Debt Incurred in Acquisitions Using Substantial Cash Flows Generated from Combined Business Invest in Projects with Strong Financial Returns/Capital…
Combined Company Highlights Creates A Premier U.S. Based Natural Resources Producer Worlds Largest Publicly Traded Copper Producer Significant Producer of Oil, Gold & Molybdenum Significant Long-term Natural Gas Resources…
Appendix
2013e Oil & Gas Operating Estimates 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: 15/bbl Pricing: LLS…
Pro Forma Balance Sheet & Credit Statistics (US billions) Pro Forma September 30, 2012 Capitalization Amount % Cash and Cash Equivalents 3.7 -- Revolver (1) 0.0 0% FCX New Sr. Unsecured Notes 5.5 9% FCX New (Unsecured) Term…
FCX Pro Forma Debt Maturities 9/30/12 (US millions) 12,000 Pro Forma Total Debt & Cash at 9/30/12 New FCX Debt (US billions) FCX Sr. Notes 10,600 New Term Loans 4.0 MMR Sr. Notes New FCX 10,000 New Notes 5.5 PXP Sr. Notes Sr.…
Royalty Trust Terms 5% Gross Royalty Override on MMR's Ultra-Deep Exploration Portfolio 20-Year Term Non-callable for First 5 Years Callable at FCXs Option in Years 6-20 at 10 per Unit Shares Risk/Upside Between FCX and MMR…
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