| Freeport's (FCX) Oil and Gas Subsidiary Files for IPO - Analyst Blog | |
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Freeport-McMoRan Inc. FCX said that its fully-owned subsidiary, Freeport-McMoRan Oil & Gas Inc. (FM O&G), has filed a registration with the U.S. Securities and Exchange Commission (SEC) for a potential initial public offering (IPO) of common stock. This will represent a minority interest in FM O&G.
FM O&G plans to apply to list the common stock on the NYSE under the ticker symbol “FMOG.” Barclays will act as book-runner for the planned IPO.
Freeport added a high quality portfolio of U.S.-based oil and gas assets to its global mining business in 2013 through its acquisitions of Plains Exploration & Production Company and McMoRan Exploration. The buyouts represent a part Freeport’s strategy to diversify away from its bread-and-butter copper mining business which has been hit by weak prices.
Freeport’s copper business remains affected by sluggish copper demand in China (a major market) and supply related issues. Copper prices remain under pressure given the oversupply of the metal in the market.
The twin acquisitions have provided Freeport the opportunity to exploit energy markets with positive fundamentals, strong margins and cash flows and a large resource base with financially attractive exploration and development investment opportunities.
In the first quarter of 2015, realized revenues for oil and gas operations were $43.71 per barrels of oil equivalents (BOE), primarily reflecting lower oil prices, partly offset by the impact of higher realized cash gains on derivative contracts. Daily sales volumes averaged 139 million barrels of oil equivalent (MBOE) in the first quarter.
For 2015, oil and gas sales volumes are expected to average 143 MBOE per day, comprising 67% oil, 29% percent natural gas and 4% natural gas liquids. Freeport expects consolidated sales to be around 52.35 million barrels of oil equivalent. Capital expenditures for oil and gas operations are estimated to total $2.8 billion in 2015. Freeport is taking aggressive actions to reduce or defer capital expenditures and is considering funding alternatives to advance growth projects in its oil and gas business, including consideration of a sale of public equity for a minority interest in its oil and gas subsidiary. Freeport currently carries a Zacks Rank #3 (Hold). Better-ranked mining companies include Amerigo Resources Ltd. ARREF, Southern Copper Corp. SCCO and Newmont Mining Corp. NEM. All of them hold a Zacks Rank #2 (Buy). Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report FREEPT MC COP-B (FCX): Free Stock Analysis Report NEWMONT MINING (NEM): Free Stock Analysis Report SOUTHERN COPPER (SCCO): Free Stock Analysis Report AMERIGO RES LTD (ARREF): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research
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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 Congo Dem. Rep. of, and holds various exploration projects in Chile. Its main assets in production are CANDELARIA, EL ABRA, HENDERSON, CHINO - MILL and OJOS DEL SALADO in Chile, GRASBERG, SIERRITA and BAGDAD in Indonesia, TENKE FUNGURUME, TYRONE, MIAMI - ROM LEACH, MORENCI - MILL, MORENCI and MORENCI - ROM LEACH in Congo Dem. Rep. of and CERRO VERDE in Peru, its main asset in development is SAFFORD in Congo Dem. Rep. of and its main exploration properties are CERRO VERDE - ROM LEACH, EL ABRA - ROM LEACH, CERRO VERDE - MILL, CERRO VERDE - CRUSHED LEACH, BAGDAD - ROM LEACH, CHINO - ROM LEACH and CLIMAX in Chile. Freeport McMoran is listed in Germany and in United States of America. Its market capitalisation is US$ 71.5 billions as of today (€ 66.8 billions). Its stock quote reached its lowest recent point on March 06, 2020 at US$ 10.00, and its highest recent level on April 25, 2024 at US$ 49.40. Freeport McMoran has 1 448 000 000 shares outstanding. |