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3rd Quarter 2013 Earnings Conference Call – Freeport-Mcmoran Inc.

Freeport-Mcmoran Inc. · Oct 22, 2013 · 33 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 2013 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 1
    EXPANDING RESOURCES 3rd Quarter 2013 Earnings Conference Call October 22, 2013 www.fcx.com
  2. 3rd Quarter 2013 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 2
    EXPANDING RESOURCES 3Q13 Highlights Focused on Execution Strong Margins and Cash Flow - Solid Operating Performance from Global Mining Business - Improved Grasberg Results - Significant Contribution from O&G Business…
  3. 3rd Quarter 2013 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 3
    EXPANDING RESOURCES Financial Highlights Sales Data 3Q13 3Q12 Copper Consolidated Volumes (mm lbs) 1,041 922 Average Realization (per lb) 3.28 3.64 Site Production & Delivery Unit Costs (per lb) 1.85 2.03 Unit Net Cash Costs (per…
  4. 3rd Quarter 2013 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 4
    EXPANDING RESOURCES Copper Market Commentary China Remains Important Demand Driver - Large Consumption Base Growing at a Sustainable Rate Continued Improvement in U.S. Demand - Automotive Production and Sales Back to Pre-crisis…
  5. 3rd Quarter 2013 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 5
    EXPANDING RESOURCES Quarterly Mining Operating Summary 3Q13 Unit Production Costs (per pound of copper) North South America America Indonesia Africa Consolidated Cash Unit Costs Site Production & Delivery 2.00 1.49 2.30 1.43 1.85…
  6. 3rd Quarter 2013 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 6
    EXPANDING RESOURCES Quarterly Oil & Gas Operating Summary 3Q 2013 Oil & Gas Margins by Region Haynesville/ Eagle Madden/ California Ford Other GOM Consolidated Operating Margin Realized Revenue per BOE 98.75 83.47 22.08 89.05…
  7. 3rd Quarter 2013 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 7
    EXPANDING RESOURCES Grasberg Update Improving productivity & performance metrics % 1H13 3Q13 change Mill rates (K t/d) 157 198 +26% Cu grades (%) 0.69 0.74 +7% Au grades (g/t) 0.53 0.65 +23% Unit net cash cost (/lb) 1.95 0.99…
  8. 3rd Quarter 2013 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 8
    EXPANDING RESOURCES Brownfield Development Projects Tenke Fungurume Cerro Verde Morenci Phase II Expansion Mill Expansion Mill Expansion 0.9 billion* 4.6 billion 1.6 billion Completed on time & within budget Commenced construction…
  9. 3rd Quarter 2013 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 9
    EXPANDING RESOURCES Exploration Targets in Major Mineral Districts 2013e 2014e 185 mm 130 mm North South America 19% 19% America 20% 23% Other Areas 21% 13% 21% Africa 16% 28% Indonesia 20% Note: FCXs consolidated…
  10. 3rd Quarter 2013 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 10
    EXPANDING RESOURCES Strong Brent & LLS Crude Oil Pricing Over 90% of FCXs 3Q13 O&G Revenues are from Oil/NGLs* 150 Brent and LLS Pricing per Bbl 125 100 75 50 25 3Q13 Realized Oil Price: 106/bbl* (97% of Brent) 0…
  11. 3rd Quarter 2013 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 11
    EXPANDING RESOURCES Oil & Gas Operating Assets California 3Q 2013 Cash Operating Margin: Haynesville 1.1 Billion Long Established Oil Significant Gas Production History Haynesville/ Resource (5+ Tcfe) Strong Margins and 2% Other…
  12. 3rd Quarter 2013 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 12
    EXPANDING RESOURCES Lucius Deepwater GOM Development Project Lucius Topside 6 Wells have been Drilled Geologic Results Confirmed Significant Oil Resource Truss Spar Hull Anchored in Place Lucius Spar First Production Expected…
  13. 3rd Quarter 2013 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 13
    EXPANDING RESOURCES Deepwater Infrastructure Provides Subsea Tieback Opportunities Texas Louisiana MARLIN HUB Breton Sound Main Main Pass S & E Add DORADO Pass West Cam PLATINUM Large Scale Infrastructure at SMI Eugene Isl.…
  14. 3rd Quarter 2013 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 14
    EXPANDING RESOURCES Ultra-Deep Activities Lomond North Louisiana Lineham Creek England Davy Jones Blackbeard Area Barbosa Calico Jack Industry Leading Position in Emerging Trend Lomond North (72% WI) Exploratory Well…
  15. 3rd Quarter 2013 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 15
    EXPANDING RESOURCES 2013 Outlook Sales Outlook: Copper: 4.1 Billion lbs. Gold: 1.1 Million ozs. Molybdenum: 92 Million lbs. Oil Equivalents(1): 37.5 MMBOE (70% Oil) Unit Cost: 1.58/lb(2) of Copper in 2013e 17/BOE Operating…
  16. 3rd Quarter 2013 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 16
    EXPANDING RESOURCES Production Profile Gold Sales (million ozs) Copper Sales (billion lbs) 2 1.7 1.7 5.0+ 1.1 5 1 4.4 4.1 4 0 2013e ____________________ 2014e 2015e Note: Consolidated gold sales include approximately…
  17. 3rd Quarter 2013 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 17
    EXPANDING RESOURCES 2013e Operating Estimates 2013e Unit Production Costs (per pound of copper) North South America America Indonesia Africa Consolidated (3) Cash Unit Costs (1) Site Production & Delivery (2) 2.00 1.56 2.70 1.45…
  18. 3rd Quarter 2013 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 18
    EXPANDING RESOURCES EBITDA and Cash Flow at Various Copper Prices Average EBITDA (1,300 Gold, 10 Molybdenum & 100 Oil) 24 (US billions) 18 +40% 2016e Increase 12 6 2014e/2015e Average 0 Cu 3.00/lb Cu 3.50/lb Cu…
  19. 3rd Quarter 2013 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 19
    EXPANDING RESOURCES Sensitivities (US millions) 2014e/2015e Operating Change EBITDA Cash Flow Copper: +/- 0.10/lb 465 325 Molybdenum: +/- 1.00/lb 80 65 Gold: +/- 50/ounce 75 45 Oil Sales:(1) + 10/bbl 405 340 - 10/bbl (2)…
  20. 3rd Quarter 2013 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 20
    EXPANDING RESOURCES Capital Expenditures (1) (US billions) 8 6.7 6.7 6 5.5 Oil & Gas 2.7 2.9 1.5 (2) 4 Major Projects 2.4 (3) TOTAL 2.9 2.6 2 MINING 4.0 3.8 Other 4.0 (2) Mining 1.6 1.1 1.2 0 2013e 2014e 2015e (1)…
  21. 3rd Quarter 2013 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 21
    EXPANDING RESOURCES Committed to Balance Sheet Management Strong Track Record Debt Targeted at 12 Billion 9/30/2013 Balances Within 3-year Period ( in bns) Anticipate Continuing Current 20.4 Common Stock Dividend Rate: 18.2…
  22. 3rd Quarter 2013 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 22
    EXPANDING RESOURCES 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…
  23. 3rd Quarter 2013 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 23
    EXPANDING RESOURCES EXPANDING RESOURCES Reference Slides
  24. 3rd Quarter 2013 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 24
    EXPANDING RESOURCES 2013e Quarterly Payable Metal Sales Gold Sales (thousand ozs) 390 400 305 Copper Sales (million lbs) 300 214 173 1,250 200 1,120 100 1,041 0 1,000 954 951 1Q13 ____________________ 2Q13 3Q13 4Q13e…
  25. 3rd Quarter 2013 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 25
    EXPANDING RESOURCES 2nd Half 2013e Oil & Gas Operating Estimates Madden & Operating Cost: 1.65/Mcfe California Haynesville Pricing: NYMEX Operating Cost: 30/bbl Pricing: Brent Based Gulf of Mexico Shelf/ Deepwater Operating…
  26. 3rd Quarter 2013 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 26
    EXPANDING RESOURCES Oil & Natural Gas Hedging Positions Oil Hedges Indexed to Brent 4Q13 2014 2015 Collars Puts 25k Bbls/d 5k Bbls/d Unhedged Swaps 100 floor 90 floor 75k Bbls/d 30k Bbls/d 80 limit 70 limit 90 floor 95 floor…
  27. 3rd Quarter 2013 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 27
    EXPANDING RESOURCES PT-FI Mine Plan PT-FIs Share of Metal Sales, 2013e-2021e 2013e 2017e PT-FI Share Total: 5.7 billion lbs copper Copper, billion lbs Annual Average: 1.14 billion lbs Gold, million ozs 2013e 2017e PT-FI Share…
  28. 3rd Quarter 2013 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 28
    EXPANDING RESOURCES Grasberg Open Pit 9N 8E 9S N 29
  29. 3rd Quarter 2013 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 29
    EXPANDING RESOURCES Mining Sequence in 2013 Copper Equivalent Cross Section A B 9N and 9S are the Primary Ore Pushbacks in 2013 9S 1Q13 9N 1Q13 2Q13 3Q13 3Q13 End 2Q13 2012 Grasberg Plan View 4Q13 4Q13 B Legend:…
  30. 3rd Quarter 2013 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 30
    EXPANDING RESOURCES Mining Sequence in 2014 Copper Equivalent Cross Section A B 9N and 9S are the Primary Ore Pushbacks in 2014 9S 9N End 2013 Grasberg Plan View B Legend: LEGEND 0.25 0.50-0.99% 0.99 %CuEq Eq Cu…
  31. 3rd Quarter 2013 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 31
    EXPANDING RESOURCES Mining Sequence in 2015 Copper Equivalent Cross Section A B 9N and 9S are the Primary Ore Pushbacks in 2015 9S 9S End 9N 2014 Grasberg Plan View B Legend: LEGEND 0.25 0.50-0.99% 0.99 %CuEq Eq Cu…
  32. 3rd Quarter 2013 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 32
    EXPANDING RESOURCES Mining Sequence in 2016 Copper Equivalent Cross Section A B 9S is the Primary Ore Pushback in 2016 End 2015 9S Grasberg Plan View B Legend: LEGEND 0.25 0.50-0.99% 0.99 %CuEq 1.00-1.99% 1.00 Eq…
  33. 3rd Quarter 2013 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 33
    EXPANDING RESOURCES PT Freeport Indonesia Life-of-Mine Production Sequencing 258mm mt Grasberg Open Pit 0.90% Cu & 0.98 g/t Au 176mm mt DOZ 0.57% Cu & 0.71 g/t Au 54mm mt Big Gossan 2.26% Cu & 0.97 g/t Au 517mm mt Deep MLZ…

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