| Freeport-McMoRan: Is a Public Offering the Correct Strategy? | |
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Freeport-McMoRan to Offer Up Energy Assets: Will It Be Enough? (Continued from Prior Part) Energy business going public
In the previous part of this series, we discussed how Freeport-McMoRan’s (FCX) leverage ratios soared after it had acquired energy assets at a substantial premium to the prevailing market value. In this part of the series, we’ll discuss whether the IPO (initial public offering) for its energy business is the correct strategy. After all, in all probability, the company will get a much lower price for its energy assets than what it paid to acquire them.
Lower crude prices
Lower energy prices have prompted a lot of energy companies to rethink their business plans. Leading companies including ConocoPhillips (COP) and Suncor Energy (SU) have cut their capital expenditure budgets.
Though crude oil prices have recovered smartly from 2015 lows, they remain far below what energy companies would like them to be. The US rig count is now down to levels last seen in 2003, as you can see in the above chart.
Other options for Freeport-McMoRan
Earlier, Freeport-McMoRan had considered third-party financing for oil and gas exploration (XLE) (XOP). It also looked at equity participation by other companies in specific projects. Either option would have helped Freeport reduce some of its capital expenditures on these projects.
Freeport-McMoRan also considered selling assets to reduce its debt levels. However, it faced challenges finding prospective buyers. It’s tough to find a buyer for commodity assets when prices are trading at multiyear lows. Any company looking to sell these assets would have had to settle for a lower price.
Did something change in the commodity markets that prompted Freeport-McMoRan to register the IPO for its energy assets? We’ll explore this in detail in the next part of our series.
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Freeport McMoRan Copper and Gold Inc.
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PRODUCTEUR |
CODE : FCX |
ISIN : US35671D8570 |
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ProfilIndicateurs de MarchéVALEUR : Projets & res.Communiqués de PresseRapport annuelRISQUE : Profile actifsContactez la cie |
Freeport McMoran est une société de production minière d'or et de cuivre basée aux Etats-Unis D'Amerique. Freeport McMoran est productrice d'or, de cuivre, d'argent, de cobalt et de molybdène au Chili, au Perou, en Indonesie et en Republique Democratique Du Congo, en développement de projets de cuivre au Perou, et détient divers projets d'exploration au Chili. Ses principaux projets en production sont CANDELARIA, EL ABRA, CHINO - MILL, HENDERSON, MIAMI - ROM LEACH, MORENCI - MILL, OJOS DEL SALADO, MORENCI et MORENCI - ROM LEACH au Chili, GRASBERG, SIERRITA et BAGDAD en Indonesie, TENKE FUNGURUME et TYRONE en Republique Democratique Du Congo et CERRO VERDE au Perou, son principal projet en développement est SAFFORD au Perou et ses principaux projets en exploration sont BAGDAD - ROM LEACH et CHINO - ROM LEACH au Perou et CERRO VERDE - MILL, CERRO VERDE - CRUSHED LEACH, CERRO VERDE - ROM LEACH, EL ABRA - ROM LEACH et CLIMAX au Chili. Freeport McMoran est cotée aux Etats-Unis D'Amerique et en Allemagne. Sa capitalisation boursière aujourd'hui est 73,0 milliards US$ (68,6 milliards €). La valeur de son action a atteint son plus bas niveau récent le 06 mars 2020 à 10,00 US$, et son plus haut niveau récent le 19 avril 2024 à 50,41 US$. Freeport McMoran possède 1 448 000 000 actions en circulation. |