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Freeport-McMoRan to Offer Up Energy Assets: Will It Be Enough? Freeport’s energy business goes public
Freeport-McMoRan (FCX) has finally announced an IPO (initial public offering) for its energy business after filing a registration statement with the US SEC (Securities and Exchange Commission). The IPO registration comes almost two months after Freeport first disclosed its plans to launch the IPO during its 1Q 2015 earnings conference call.
Series overview
In this series, we’ll analyze how Freeport-McMoRan investors could be affected by an IPO for the firm’s energy business.
Freeport acquired these energy assets for a consideration of $9 billion two years ago. The logic behind a predominantly copper producer entering the energy business was to create a diversified natural resources company. But the bet went sideways when energy prices tumbled toward the end of last year.
The impact of lower energy prices is quite visible on Freeport’s share price. It has fallen by ~15% this year, as you can see in the chart above.
Together, Freeport and Teck Resources (TCK) form 1.5% of the iShares North American Natural Resources ETF (IGE).
Diversification saga
Freeport-McMoRan wasn’t alone in its desire to create a diversified company. BHP Billiton (BHP) also tried its hand at this. Earlier this year, however, it spun off its non-core assets into a new entity called South32 (SOUHY). South32 will have aluminum, manganese, silver, and coal assets. This would leave BHP with mainly iron ore, petroleum, and copper assets.
In this series, we’ll also look at how things are moving in Freeport-McMoRan’s core copper market. First, we’ll consider the company’s energy IPO in the next part of this series.
Continue to Next Part Browse this series on Market Realist:
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Freeport McMoRan Copper and Gold Inc.
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PRODUCER |
CODE : FCX |
ISIN : US35671D8570 |
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ProfileMarket IndicatorsVALUE : Projects & res.Press releasesAnnual reportRISK : Asset profileContact Cpy |
Freeport McMoran is a gold and copper producing company based in United states of america. Freeport McMoran produces gold, copper, cobalt, molybdenum and silver in Chile, in Congo Dem. Rep. of, in Indonesia and in Peru, develops copper in Peru, and holds various exploration projects in Chile. Its main assets in production are CANDELARIA, EL ABRA, CHINO - MILL, HENDERSON, MIAMI - ROM LEACH, MORENCI - MILL, OJOS DEL SALADO, MORENCI and MORENCI - ROM LEACH in Chile, GRASBERG, SIERRITA and BAGDAD in Indonesia, TENKE FUNGURUME and TYRONE in Congo Dem. Rep. of and CERRO VERDE in Peru, its main asset in development is SAFFORD in Peru and its main exploration properties are BAGDAD - ROM LEACH and CHINO - ROM LEACH in Peru and CERRO VERDE - MILL, CERRO VERDE - CRUSHED LEACH, CERRO VERDE - ROM LEACH, EL ABRA - ROM LEACH and CLIMAX in Chile. Freeport McMoran is listed in Germany and in United States of America. Its market capitalisation is US$ 69.0 billions as of today (€ 64.5 billions). Its stock quote reached its lowest recent point on March 06, 2020 at US$ 10.00, and its highest recent level on April 24, 2024 at US$ 47.66. Freeport McMoran has 1 448 000 000 shares outstanding. |