| Freeport-McMoRan Looks to Clear Debt Woes with Public Offering | |
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Freeport-McMoRan to Offer Up Energy Assets: Will It Be Enough? (Continued from Prior Part) Energy initial public offering
Freeport-McMoRan (FCX) has filed a prospectus with the US SEC (Securities and Exchange Commission) for an IPO (initial public offering) of $100 million for its oil and gas assets.
You should note that the $100 million figure is only an indicative figure used for calculating the registration fees. The final IPO might differ from this, but we’ll have to await further details from the company to know by how much.
Debt woes
The chart above shows how Freeport-McMoRan’s net debt has increased over the last few years. You can define net debt as total debt minus cash and cash equivalents. As you can see, Freeport’s net debt was negative in 4Q 2012. This basically means that the cash on the company’s balance sheet was greater than its debt.
Freeport had to borrow heavily to acquire these energy (XLE) (XOP) assets. This increased its debt levels. Freeport’s debt ratios are currently much higher than other copper producers such as Southern Copper (SCCO) and Teck Resources (TCK).
Energy business
Freeport-McMoRan acquired its energy assets when crude oil was trading at elevated levels. The energy business was expected to enhance its earning capacity.
The energy business was expected to be self-funding over the long term. The business was expected to generate sufficient cash flow to meet its capital expenditure needs. However, crude oil prices have seen a sharp correction over the last eight months.
Freeport was planning to reduce its debt levels. Lower crude oil prices have changed the equation. It has had to defer its debt reduction targets since commodity prices fell.
Is the energy IPO in the best interests of its shareholders? We’ll discuss this 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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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 69,5 milliards US$ (65,2 milliards €). La valeur de son action a atteint son plus bas niveau récent le 06 mars 2020 à 10,00 US$, et son plus haut niveau récent le 23 avril 2024 à 47,99 US$. Freeport McMoran possède 1 448 000 000 actions en circulation. |