| 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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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 68,1 milliards US$ (59,6 milliards €). La valeur de son action a atteint son plus bas niveau récent le 06 mars 2020 à 10,00 US$, et son plus haut niveau récent le 28 mars 2024 à 47,02 US$. Freeport McMoran possède 1 448 000 000 actions en circulation. |