| Has Freeport Become a Play on Energy Prices? | |
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Copper and the Economy: What Should Investors Watch? (Continued from Prior Part) Freeport’s energy assets
Freeport-McMoRan (FCX) has diversified into the energy exploration business over the last couple of years. In 2013, Freeport acquired Plains Exploration & Production Company for $16.2 billion. It was a major investment by Freeport in energy assets. Freeport also acquired Moran Exploration Company for $2.2 billion the same year.
Play on energy prices?
The above chart shows the movement in share prices for Freeport and Southern Copper (SCCO). We’ve compared the movement in these companies to crude oil and copper prices. As you can see, Freeport’s share price has moved in tandem with crude oil prices. Freeport’s share price is down 32% in the last one year. West Texas Intermediate (or WTI) crude oil prices have lost ~40% over this period.
Spot copper price is down almost 4% in the last one year, while Southern Copper has gained 12% since then.
Higher energy prices positive for Freeport
Crude oil prices rebounded in April. Higher energy prices bode well for Freeport. In its 1Q15 earnings conference call, Freeport said it might look at selling a minority stake in its energy business. Freeport might come out with an IPO (initial public offering) of its oil and gas subsidiary later this year, subject to market conditions and regulatory approvals. Higher energy prices would help Freeport price the IPO at a better price.
Energy exploration companies (XOP) like ConocoPhillips (COP) and Suncor Energy (SU) also benefit from higher crude oil prices.
You can learn more about Freeport by visiting our copper page.
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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$ 73.1 billions as of today (€ 68.3 billions). Its stock quote reached its lowest recent point on March 06, 2020 at US$ 10.00, and its highest recent level on April 26, 2024 at US$ 50.50. Freeport McMoran has 1 448 000 000 shares outstanding. |