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UNITED STATES
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SECURITIES AND EXCHANGE COMMISSION
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Washington, D.C. 20549
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FORM 10-K
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(Mark One)
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[X] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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For the fiscal year ended December 31, 2014
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OR
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[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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For the transition period from
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to
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Commission File Number: 001-11307-01
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Freeport-McMoRan Inc.
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(Exact name of registrant as specified in its charter)
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Delaware
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74-2480931
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(State or other jurisdiction of
incorporation or organization)
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(I.R.S. Employer Identification No.)
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333 North Central Avenue
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Phoenix, Arizona
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85004-2189
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(Address of principal executive offices)
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(Zip Code)
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(602) 366-8100
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(Registrant's telephone number, including area code)
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Title of each class
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Name of each exchange on which registered
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Common Stock, par value $0.10 per share
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New York Stock Exchange
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Portions of our proxy statement for our 2014 annual meeting of stockholders are incorporated by reference into Part III (Items 10, 11, 12, 13 and 14) of this report.
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TABLE OF CONTENTS
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Page
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a.
|
FMC has an 85 percent undivided interest in Morenci via an unincorporated joint venture. Additionally, PT-FI has established an unincorporated joint venture with Rio Tinto plc (Rio Tinto) related to our Indonesia operations. Refer to Note
3
for further discussion of our ownership in subsidiaries and joint ventures.
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Copper
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Gold
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Molybdenum
|
|
Silver
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|
Cobalt
|
North America
|
34%
|
|
1%
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|
78%
|
|
30%
|
|
—
|
South America
|
31%
|
|
—
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22%
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31%
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|
—
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Indonesia
|
28%
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99%
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|
—
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39%
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|
—
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Africa
|
7%
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|
—
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—
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|
—
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100%
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|
100%
|
|
100%
|
|
100%
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|
100%
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|
100%
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|
Copper
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|
Gold
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Molybdenum
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North America
|
43%
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|
1%
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|
88%
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|
South America
|
30%
|
a
|
6%
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a
|
12%
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|
Indonesia
|
16%
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|
93%
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|
—
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Africa
|
11%
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—
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—
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100%
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100%
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100%
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a.
|
Includes production from the Candelaria and Ojos del Salado mines totaling 284 million pound of copper (7 percent of consolidated FCX production) and 72 thousand ounces of gold (6 percent of consolidated FCX production). On November 3, 2014, FCX completed the sale of its 80 percent ownership interests in the Candelaria and Ojos del Salado mining operations.
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2014
|
|
2013
|
|
2012
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|||
PT Smelting
|
58
|
%
|
|
41
|
%
|
|
52
|
%
|
Atlantic Copper
|
6
|
%
|
|
9
|
%
|
|
11
|
%
|
Third parties
|
36
|
%
|
|
50
|
%
|
|
37
|
%
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|
100
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%
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|
100
|
%
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100
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%
|
Location
|
Number of Unions
|
Number of
Union-
Represented Employees
|
Expiration Date
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PT-FI – Indonesia
|
1
|
9,244
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|
September 2015
|
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|
TFM – DRC
|
11
|
3,404
|
|
N/A
|
a
|
|
Cerro Verde – Peru
|
3
|
2,058
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|
August 2018
|
|
|
El Abra – Chile
|
2
|
1,069
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|
May 2016
|
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|
Atlantic Copper – Spain
|
2
|
434
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|
December 2015
|
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Kokkola - Finland
|
3
|
412
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|
November 2016
|
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|
Rotterdam – The Netherlands
|
2
|
59
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|
March 2015
|
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Bayway – New Jersey
|
1
|
37
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April 2016
|
|
|
Stowmarket – United Kingdom
|
1
|
35
|
|
May 2017
|
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a.
|
The Collective Labor Agreement between TFM and its workers’ unions has no expiration date, but can be amended at any time in accordance with an established process. In September 2012, TFM negotiated a 4-year salary scale with union-represented employees.
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2014
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2013
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|
2012
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|||
North America copper mines
|
21
|
%
|
|
13
|
%
|
|
16
|
%
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South America mining
|
21
|
%
|
|
32
|
%
|
|
31
|
%
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Indonesia mining
|
8
|
%
|
|
16
|
%
|
|
10
|
%
|
Third parties
|
50
|
%
|
|
39
|
%
|
|
43
|
%
|
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
•
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comprehensive job training programs
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•
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basic education programs
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•
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public health programs, including malaria control and HIV
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•
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agricultural assistance programs
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•
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small and medium enterprise development programs
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•
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cultural promotion and preservation programs
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•
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clean water and sanitation projects
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•
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community infrastructure development
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•
|
charitable donations
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Years Ended December 31,
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|||||||||||||
(FCX’s net interest in %)
|
2014
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2013
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2012
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2011
|
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2010
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|||||
COPPER
(millions of recoverable pounds)
|
|
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North America
|
|
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Morenci (85%)
a
|
691
|
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|
564
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|
537
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|
522
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|
437
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Bagdad (100%)
|
237
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|
216
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|
197
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|
194
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|
|
203
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|
Safford (100%)
|
139
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|
|
146
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|
|
175
|
|
|
151
|
|
|
143
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|
Sierrita (100%)
|
195
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|
171
|
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|
157
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|
177
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|
147
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|
Miami (100%)
|
57
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|
61
|
|
|
66
|
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|
66
|
|
|
18
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|
Chino (100%)
|
250
|
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|
171
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|
144
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|
69
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|
|
34
|
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|
Tyrone (100%)
|
94
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|
96
|
|
|
83
|
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|
76
|
|
|
82
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|
Other (100%)
|
7
|
|
|
6
|
|
|
4
|
|
|
3
|
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|
3
|
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|
Total North America
|
1,670
|
|
|
1,431
|
|
|
1,363
|
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|
1,258
|
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|
1,067
|
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|
South America
|
|
|
|
|
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|
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Cerro Verde (53.56%)
|
500
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|
558
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|
595
|
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|
647
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|
668
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|
El Abra (51%)
|
367
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|
343
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|
338
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|
274
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|
320
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|
Candelaria/Ojos del Salado (80%)
b
|
284
|
|
|
422
|
|
|
324
|
|
|
385
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|
|
366
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|
Total South America
|
1,151
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|
|
1,323
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|
|
1,257
|
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|
1,306
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1,354
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|
Indonesia
|
|
|
|
|
|
|
|
|
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Grasberg (90.64%)
c
|
636
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|
|
915
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|
|
695
|
|
|
846
|
|
|
1,222
|
|
|
Africa
|
|
|
|
|
|
|
|
|
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|||||
Tenke Fungurume (56%)
d
|
447
|
|
|
462
|
|
|
348
|
|
|
281
|
|
|
265
|
|
|
Consolidated
|
3,904
|
|
|
4,131
|
|
|
3,663
|
|
|
3,691
|
|
|
3,908
|
|
|
Less noncontrolling interests
|
725
|
|
|
801
|
|
|
723
|
|
|
710
|
|
|
766
|
|
|
Net
|
3,179
|
|
|
3,330
|
|
|
2,940
|
|
|
2,981
|
|
|
3,142
|
|
|
|
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|
|
|
|
|
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|
|||||
GOLD
(thousands of recoverable ounces)
|
|
|
|
|
|
|
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|||||
North America (100%)
a
|
12
|
|
|
7
|
|
|
13
|
|
|
10
|
|
|
7
|
|
|
South America (80%)
b
|
72
|
|
|
101
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|
|
83
|
|
|
101
|
|
|
93
|
|
|
Indonesia (90.64%)
c
|
1,130
|
|
|
1,142
|
|
|
862
|
|
|
1,272
|
|
|
1,786
|
|
|
Consolidated
|
1,214
|
|
|
1,250
|
|
|
958
|
|
|
1,383
|
|
|
1,886
|
|
|
Less noncontrolling interests
|
120
|
|
|
127
|
|
|
98
|
|
|
139
|
|
|
186
|
|
|
Net
|
1,094
|
|
|
1,123
|
|
|
860
|
|
|
1,244
|
|
|
1,700
|
|
|
|
|
|
|
|
|
|
|
|
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|||||
MOLYBDENUM
(millions of recoverable pounds)
|
|
|
|
|
|
|
|
|
|
|
|||||
Henderson (100%)
|
30
|
|
|
30
|
|
|
34
|
|
|
38
|
|
|
40
|
|
|
Climax (100%)
e
|
21
|
|
|
19
|
|
|
7
|
|
|
—
|
|
|
—
|
|
|
North America copper mines (100%)
a
|
33
|
|
|
32
|
|
|
36
|
|
|
35
|
|
|
25
|
|
|
Cerro Verde (53.56%)
|
11
|
|
|
13
|
|
|
8
|
|
|
10
|
|
|
7
|
|
|
Consolidated
|
95
|
|
|
94
|
|
|
85
|
|
|
83
|
|
|
72
|
|
|
Less noncontrolling interest
|
5
|
|
|
6
|
|
|
4
|
|
|
5
|
|
|
3
|
|
|
Net
|
90
|
|
|
88
|
|
|
81
|
|
|
78
|
|
|
69
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
COBALT
(millions of contained pounds)
|
|
|
|
|
|
|
|
|
|
|
|||||
Consolidated - Tenke Fungurume (56%)
d
|
29
|
|
|
28
|
|
|
26
|
|
|
25
|
|
|
20
|
|
|
Less noncontrolling interests
|
13
|
|
|
12
|
|
|
11
|
|
|
11
|
|
|
8
|
|
|
Net
|
16
|
|
|
16
|
|
|
15
|
|
|
14
|
|
|
12
|
|
|
|
|
|
|
|
|
|
|
|
|
|
a.
|
Amounts are net of Morenci’s 15 percent joint venture partner interest.
|
b.
|
On November 3, 2014, FCX completed the sale of its 80 percent interests in the Candelaria and Ojos del Salado mines.
|
c.
|
Amounts are net of joint venture partner interest, which varies in accordance with terms of the joint venture agreement (refer to Note 3). Under the joint venture arrangements, PT-FI's share of copper production totaled
98 percent
in
2014
,
99 percent
in
2013
,
100 percent
in
2012
, 96 percent in 2011 and 92 percent in 2010.
|
d.
|
Effective March 26, 2012, FCX's effective ownership interest in TFM was prospectively reduced from 57.75 percent to 56 percent.
|
e.
|
The Climax molybdenum mine began commercial operations in May 2012.
|
|
Years Ended December 31,
|
|
||||||||||||||||||
(FCX’s net interest in %)
|
2014
|
|
2013
|
|
2012
|
|
2011
|
|
2010
|
|
||||||||||
COPPER
(millions of recoverable pounds)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
North America
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Morenci (85%)
a
|
680
|
|
|
561
|
|
|
532
|
|
|
521
|
|
|
434
|
|
|
|||||
Bagdad (100%)
|
240
|
|
|
212
|
|
|
196
|
|
|
201
|
|
|
206
|
|
|
|||||
Safford (100%)
|
142
|
|
|
151
|
|
|
175
|
|
|
147
|
|
|
155
|
|
|
|||||
Sierrita (100%)
|
196
|
|
|
170
|
|
|
162
|
|
|
175
|
|
|
152
|
|
|
|||||
Miami (100%)
|
60
|
|
|
60
|
|
|
68
|
|
|
59
|
|
|
17
|
|
|
|||||
Chino (100%)
|
243
|
|
|
168
|
|
|
132
|
|
|
62
|
|
|
35
|
|
|
|||||
Tyrone (100%)
|
96
|
|
|
94
|
|
|
82
|
|
|
79
|
|
|
83
|
|
|
|||||
Other (100%)
|
7
|
|
|
6
|
|
|
4
|
|
|
3
|
|
|
3
|
|
|
|||||
Total North America
|
1,664
|
|
|
1,422
|
|
|
1,351
|
|
|
1,247
|
|
|
1,085
|
|
|
|||||
South America
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cerro Verde (53.56%)
|
501
|
|
|
560
|
|
|
589
|
|
|
657
|
|
|
654
|
|
|
|||||
El Abra (51%)
|
366
|
|
|
341
|
|
|
338
|
|
|
276
|
|
|
315
|
|
|
|||||
Candelaria/Ojos del Salado (80%)
b
|
268
|
|
|
424
|
|
|
318
|
|
|
389
|
|
|
366
|
|
|
|||||
Total South America
|
1,135
|
|
|
1,325
|
|
|
1,245
|
|
|
1,322
|
|
|
1,335
|
|
|
|||||
Indonesia
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Grasberg (90.64%)
c
|
664
|
|
|
885
|
|
|
716
|
|
|
846
|
|
|
1,214
|
|
|
|||||
Africa
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Tenke Fungurume (56%)
d
|
425
|
|
|
454
|
|
|
336
|
|
|
283
|
|
|
262
|
|
|
|||||
Consolidated sales from mines
|
3,888
|
|
|
4,086
|
|
|
3,648
|
|
|
3,698
|
|
|
3,896
|
|
|
|||||
Less noncontrolling interests
|
715
|
|
|
795
|
|
|
717
|
|
|
717
|
|
|
756
|
|
|
|||||
Net
|
3,173
|
|
|
3,291
|
|
|
2,931
|
|
|
2,981
|
|
|
3,140
|
|
|
|||||
Consolidated sales from mines
|
3,888
|
|
|
4,086
|
|
|
3,648
|
|
|
3,698
|
|
|
3,896
|
|
|
|||||
Purchased copper
|
125
|
|
|
223
|
|
|
125
|
|
|
223
|
|
|
182
|
|
|
|||||
Total copper sales, including purchases
|
4,013
|
|
|
4,309
|
|
|
3,773
|
|
|
3,921
|
|
|
4,078
|
|
|
|||||
Average realized price per pound
|
$
|
3.09
|
|
|
$
|
3.30
|
|
|
$
|
3.60
|
|
|
$
|
3.86
|
|
|
$
|
3.59
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
GOLD
(thousands of recoverable ounces)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
North America (100%)
a
|
13
|
|
|
6
|
|
|
13
|
|
|
7
|
|
|
5
|
|
|
|||||
South America (80%)
b
|
67
|
|
|
102
|
|
|
82
|
|
|
101
|
|
|
93
|
|
|
|||||
Indonesia (90.64%)
c
|
1,168
|
|
|
1,096
|
|
|
915
|
|
|
1,270
|
|
|
1,765
|
|
|
|||||
Consolidated sales from mines
|
1,248
|
|
|
1,204
|
|
|
1,010
|
|
|
1,378
|
|
|
1,863
|
|
|
|||||
Less noncontrolling interests
|
123
|
|
|
123
|
|
|
102
|
|
|
139
|
|
|
184
|
|
|
|||||
Net
|
1,125
|
|
|
1,081
|
|
|
908
|
|
|
1,239
|
|
|
1,679
|
|
|
|||||
Average realized price per ounce
|
$
|
1,231
|
|
|
$
|
1,315
|
|
|
$
|
1,665
|
|
|
$
|
1,583
|
|
|
$
|
1,271
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
MOLYBDENUM
(millions of recoverable pounds)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Consolidated sales from mines
|
95
|
|
|
93
|
|
|
83
|
|
|
79
|
|
|
67
|
|
|
|||||
Less noncontrolling interests
|
5
|
|
|
5
|
|
|
4
|
|
|
4
|
|
|
3
|
|
|
|||||
Net
|
90
|
|
|
88
|
|
|
79
|
|
|
75
|
|
|
64
|
|
|
|||||
Average realized price per pound
|
$
|
12.74
|
|
|
$
|
11.85
|
|
|
$
|
14.26
|
|
|
$
|
16.98
|
|
|
$
|
16.47
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
COBALT
(millions of contained pounds)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Consolidated
-
Tenke Fungurume (56%)
d
|
30
|
|
|
25
|
|
|
25
|
|
|
25
|
|
|
20
|
|
|
|||||
Less noncontrolling interests
|
13
|
|
|
11
|
|
|
11
|
|
|
10
|
|
|
8
|
|
|
|||||
Net
|
17
|
|
|
14
|
|
|
14
|
|
|
15
|
|
|
12
|
|
|
|||||
Average realized price per pound
|
$
|
9.66
|
|
|
$
|
8.02
|
|
|
$
|
7.83
|
|
|
$
|
9.99
|
|
|
$
|
10.95
|
|
|
|
|
|
|
|
|
|
|
|
|
|
a.
|
Amounts are net of Morenci’s joint venture partner’s 15 percent interest.
|
b.
|
On November 3, 2014, FCX completed the sale of its 80 percent interests in the Candelaria and Ojos del Salado mines.
|
c.
|
Amounts are net of joint venture partner interest, which varies in accordance with terms of the joint venture agreement (refer to Note 3). Under the joint venture arrangements, PT-FI's share of copper sales totaled
98 percent
in
2014
,
99 percent
in
2013
,
100 percent
in
2012
, 96 percent in 2011 and 92 percent in 2010.
|
d.
|
Effective March 26, 2012, FCX's effective ownership interest in TFM was prospectively reduced from 57.75 percent to 56 percent.
|
|
Recoverable Proven and Probable Mineral Reserves
Estimated at December 31, 2014
|
|||||||||||||
|
Copper
a
(billion pounds)
|
|
Gold
(million ounces)
|
|
Molybdenum
(billion pounds)
|
|
Silver
b
(million ounces)
|
|
Cobalt
b
(billion pounds)
|
|||||
North America
|
35.6
|
|
|
0.3
|
|
|
2.42
|
|
|
86.2
|
|
|
—
|
|
South America
|
31.8
|
|
|
—
|
|
|
0.69
|
|
|
86.6
|
|
|
—
|
|
Indonesia
|
29.0
|
|
|
28.2
|
|
|
—
|
|
|
110.1
|
|
|
—
|
|
Africa
|
7.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.85
|
|
Consolidated basis
c
|
103.5
|
|
|
28.5
|
|
|
3.11
|
|
|
282.9
|
|
|
0.85
|
|
Net equity interest
d
|
82.8
|
|
|
25.9
|
|
|
2.79
|
|
|
232.4
|
|
|
0.47
|
|
a.
|
Consolidated recoverable copper reserves include
3.6 billion
pounds in leach stockpiles and
0.9 billion
pounds in mill stockpiles (refer to “Mill and Leach Stockpiles” for further discussion).
|
b.
|
Determined using long-term average prices of
$15
per ounce for silver and
$10
per pound for cobalt.
|
c.
|
Consolidated reserves represent estimated metal quantities after reduction for joint venture partner interests at the Morenci mine in North America and at the Grasberg minerals district in Indonesia.
|
d.
|
Net equity interest reserves represent estimated consolidated metal quantities further reduced for noncontrolling interest ownership.
|
|
|
|
Recoverable Proven and Probable Mineral Reserves
|
|||||||||||||||||||||||||||||||||||
|
|
|
Estimated at December 31, 2014
|
|||||||||||||||||||||||||||||||||||
|
|
|
Proven Reserves
|
|
Probable Reserves
|
|
||||||||||||||||||||||||||||||||
|
|
|
|
|
Average Ore Grade
|
|
|
|
Average Ore Grade
|
|
||||||||||||||||||||||||||||
|
Processing
|
|
Million
|
|
Copper
|
|
Gold
|
|
Moly
|
|
Silver
|
|
Cobalt
|
|
Million
|
|
Copper
|
|
Gold
|
|
Moly
|
|
Silver
|
|
Cobalt
|
|
||||||||||||
|
Method
|
|
metric tons
|
|
%
|
|
g/t
|
|
%
|
|
g/t
|
|
%
|
|
metric tons
|
|
%
|
|
g/t
|
|
%
|
|
g/t
|
|
%
|
|
||||||||||||
North America
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Morenci
|
Mill
|
|
635
|
|
|
0.44
|
|
|
—
|
|
|
0.02
|
|
|
—
|
|
|
—
|
|
|
130
|
|
|
0.45
|
|
|
—
|
|
|
0.02
|
|
|
—
|
|
|
—
|
|
|
|
Crushed leach
|
|
379
|
|
|
0.49
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
102
|
|
|
0.46
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
ROM leach
|
|
1,976
|
|
|
0.18
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
701
|
|
|
0.17
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Bagdad
|
Mill
|
|
1,007
|
|
|
0.34
|
|
|
—
|
|
a
|
0.02
|
|
|
1.63
|
|
|
—
|
|
|
152
|
|
|
0.32
|
|
|
—
|
|
a
|
0.02
|
|
|
1.54
|
|
|
—
|
|
|
|
ROM leach
|
|
129
|
|
|
0.21
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
46
|
|
|
0.19
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Safford
|
Crushed leach
|
|
81
|
|
|
0.46
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
41
|
|
|
0.47
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Sierrita
|
Mill
|
|
2,252
|
|
|
0.24
|
|
|
—
|
|
a
|
0.03
|
|
|
1.42
|
|
|
—
|
|
|
212
|
|
|
0.20
|
|
|
—
|
|
a
|
0.02
|
|
|
1.20
|
|
|
—
|
|
|
Miami
|
ROM leach
|
|
2
|
|
|
0.59
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
0.57
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Chino
|
Mill
|
|
97
|
|
|
0.53
|
|
|
0.04
|
|
|
0.01
|
|
|
0.46
|
|
|
—
|
|
|
63
|
|
|
0.49
|
|
|
0.03
|
|
|
0.01
|
|
|
0.42
|
|
|
—
|
|
|
|
ROM leach
|
|
112
|
|
|
0.26
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
29
|
|
|
0.20
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Tyrone
|
ROM leach
|
|
57
|
|
|
0.33
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
0.21
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Henderson
|
Mill
|
|
74
|
|
|
—
|
|
|
—
|
|
|
0.18
|
|
|
—
|
|
|
—
|
|
|
16
|
|
|
—
|
|
|
—
|
|
|
0.14
|
|
|
—
|
|
|
—
|
|
|
Climax
|
Mill
|
|
162
|
|
|
—
|
|
|
—
|
|
|
0.17
|
|
|
—
|
|
|
—
|
|
|
23
|
|
|
—
|
|
|
—
|
|
|
0.10
|
|
|
—
|
|
|
—
|
|
|
Cobre
b
|
Mill
|
|
12
|
|
|
0.61
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
0.53
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
ROM leach
|
|
57
|
|
|
0.32
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
0.31
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
|
|
7,032
|
|
|
|
|
|
|
|
|
|
|
|
|
1,520
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
South America
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cerro Verde
|
Mill
|
|
881
|
|
|
0.39
|
|
|
—
|
|
|
0.02
|
|
|
1.62
|
|
|
—
|
|
|
2,904
|
|
|
0.37
|
|
|
—
|
|
|
0.01
|
|
|
1.52
|
|
|
—
|
|
|
|
Crushed leach
|
|
36
|
|
|
0.52
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
64
|
|
|
0.45
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
ROM leach
|
|
10
|
|
|
0.26
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
58
|
|
|
0.24
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
El Abra
|
Crushed leach
|
|
287
|
|
|
0.51
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
77
|
|
|
0.49
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
ROM leach
|
|
61
|
|
|
0.24
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
19
|
|
|
0.22
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
|
|
1,275
|
|
|
|
|
|
|
|
|
|
|
|
|
3,122
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Indonesia
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Grasberg open pit
|
Mill
|
|
77
|
|
|
1.10
|
|
|
1.37
|
|
|
—
|
|
|
2.83
|
|
|
—
|
|
|
102
|
|
|
0.86
|
|
|
0.82
|
|
|
—
|
|
|
2.10
|
|
|
—
|
|
|
Deep Ore Zone
|
Mill
|
|
47
|
|
|
0.56
|
|
|
0.68
|
|
|
—
|
|
|
2.27
|
|
|
—
|
|
|
99
|
|
|
0.53
|
|
|
0.69
|
|
|
—
|
|
|
2.20
|
|
|
—
|
|
|
Big Gossan
|
Mill
|
|
17
|
|
|
2.39
|
|
|
1.02
|
|
|
—
|
|
|
15.15
|
|
|
—
|
|
|
37
|
|
|
2.20
|
|
|
0.98
|
|
|
—
|
|
|
13.22
|
|
|
—
|
|
|
Grasberg Block Cave
b
|
Mill
|
|
447
|
|
|
1.19
|
|
|
0.96
|
|
|
—
|
|
|
3.75
|
|
|
—
|
|
|
565
|
|
|
0.85
|
|
|
0.61
|
|
|
—
|
|
|
3.28
|
|
|
—
|
|
|
Kucing Liar
b
|
Mill
|
|
152
|
|
|
1.31
|
|
|
1.11
|
|
|
—
|
|
|
7.45
|
|
|
—
|
|
|
254
|
|
|
1.21
|
|
|
1.04
|
|
|
—
|
|
|
6.21
|
|
|
—
|
|
|
Deep Mill Level Zone
b
|
Mill
|
|
65
|
|
|
0.92
|
|
|
0.74
|
|
|
—
|
|
|
4.60
|
|
|
—
|
|
|
407
|
|
|
0.86
|
|
|
0.71
|
|
|
—
|
|
|
4.33
|
|
|
—
|
|
|
|
|
|
805
|
|
|
|
|
|
|
|
|
|
|
|
|
1,464
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Africa
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Tenke Fungurume
|
Agitation leach
|
|
47
|
|
|
3.56
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.43
|
|
|
51
|
|
|
3.01
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.34
|
|
|
Total FCX - 100% Basis
|
|
|
9,159
|
|
|
|
|
|
|
|
|
|
|
|
|
6,157
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
a.
|
Grade not shown because of rounding.
|
b.
|
Undeveloped reserves that would require additional capital investment, which could be significant, to bring into production.
|
•
|
g/t – grams per metric ton
|
•
|
Moly – Molybdenum
|
•
|
ROM – Run of Mine
|
|
|
|
Recoverable Proven and Probable Mineral Reserves
|
|||||||||||||||||||||||||||||||
|
|
|
Estimated at December 31, 2014
|
|||||||||||||||||||||||||||||||
|
|
|
(continued)
|
|||||||||||||||||||||||||||||||
|
|
|
Proven and
|
|
|
|
|
|||||||||||||||||||||||||||
|
|
|
Probable
|
|
Average Ore Grade
|
|
Recoveries
a
|
|||||||||||||||||||||||||||
|
Processing
|
|
Million
|
|
Copper
|
|
Gold
|
|
Moly
|
|
Silver
|
|
Cobalt
|
|
Copper
|
|
Gold
|
|
Moly
|
|
Silver
|
|
Cobalt
|
|||||||||||
|
Method
|
|
metric tons
|
|
%
|
|
g/t
|
|
%
|
|
g/t
|
|
%
|
|
%
|
|
%
|
|
%
|
|
%
|
|
%
|
|||||||||||
North America
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Morenci
|
Mill
|
|
765
|
|
|
0.44
|
|
|
—
|
|
|
0.02
|
|
|
—
|
|
|
—
|
|
|
79.7
|
|
|
—
|
|
|
50.7
|
|
|
—
|
|
|
—
|
|
|
Crushed leach
|
|
481
|
|
|
0.49
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
75.7
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
ROM leach
|
|
2,677
|
|
|
0.18
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
42.7
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Bagdad
|
Mill
|
|
1,159
|
|
|
0.34
|
|
|
—
|
|
b
|
0.02
|
|
|
1.62
|
|
|
—
|
|
|
85.9
|
|
|
59.1
|
|
|
70.8
|
|
|
49.3
|
|
|
—
|
|
|
ROM leach
|
|
175
|
|
|
0.21
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
23.0
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Safford
|
Crushed leach
|
|
122
|
|
|
0.47
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
63.9
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Sierrita
|
Mill
|
|
2,464
|
|
|
0.23
|
|
|
—
|
|
b
|
0.02
|
|
|
1.40
|
|
|
—
|
|
|
83.9
|
|
|
59.1
|
|
|
75.9
|
|
|
49.3
|
|
|
—
|
|
Miami
|
ROM leach
|
|
3
|
|
|
0.58
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
53.6
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Chino
|
Mill
|
|
160
|
|
|
0.51
|
|
|
0.03
|
|
|
0.01
|
|
|
0.45
|
|
|
—
|
|
|
79.4
|
|
|
77.9
|
|
|
42.7
|
|
|
78.5
|
|
|
—
|
|
|
ROM leach
|
|
141
|
|
|
0.24
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
42.9
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Tyrone
|
ROM leach
|
|
59
|
|
|
0.32
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
58.7
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Henderson
|
Mill
|
|
90
|
|
|
—
|
|
|
—
|
|
|
0.17
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
84.4
|
|
|
—
|
|
|
—
|
|
Climax
|
Mill
|
|
185
|
|
|
—
|
|
|
—
|
|
|
0.16
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
88.8
|
|
|
—
|
|
|
—
|
|
Cobre
c
|
Mill
|
|
13
|
|
|
0.61
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
79.9
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
ROM leach
|
|
58
|
|
|
0.32
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
49.6
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
|
8,552
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
South America
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Cerro Verde
|
Mill
|
|
3,785
|
|
|
0.37
|
|
|
—
|
|
|
0.02
|
|
|
1.54
|
|
|
—
|
|
|
86.2
|
|
|
—
|
|
|
54.3
|
|
|
44.7
|
|
|
—
|
|
|
Crushed leach
|
|
100
|
|
|
0.47
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
79.9
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
ROM leach
|
|
68
|
|
|
0.24
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
53.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
El Abra
|
Crushed leach
|
|
364
|
|
|
0.51
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
57.6
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
ROM leach
|
|
80
|
|
|
0.23
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
43.4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
|
4,397
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Indonesia
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Grasberg open pit
|
Mill
|
|
179
|
|
|
0.96
|
|
|
1.06
|
|
|
—
|
|
|
2.41
|
|
|
—
|
|
|
84.1
|
|
|
81.1
|
|
|
—
|
|
|
43.5
|
|
|
—
|
|
Deep Ore Zone
|
Mill
|
|
146
|
|
|
0.54
|
|
|
0.69
|
|
|
—
|
|
|
2.22
|
|
|
—
|
|
|
86.4
|
|
|
77.2
|
|
|
—
|
|
|
65.8
|
|
|
—
|
|
Big Gossan
|
Mill
|
|
54
|
|
|
2.26
|
|
|
0.99
|
|
|
—
|
|
|
13.82
|
|
|
—
|
|
|
91.5
|
|
|
65.6
|
|
|
—
|
|
|
63.7
|
|
|
—
|
|
Grasberg Block Cave
c
|
Mill
|
|
1,012
|
|
|
1.00
|
|
|
0.77
|
|
|
—
|
|
|
3.49
|
|
|
—
|
|
|
84.3
|
|
|
65.0
|
|
|
—
|
|
|
57.1
|
|
|
—
|
|
Kucing Liar
c
|
Mill
|
|
406
|
|
|
1.25
|
|
|
1.07
|
|
|
—
|
|
|
6.67
|
|
|
—
|
|
|
85.0
|
|
|
45.1
|
|
|
—
|
|
|
38.8
|
|
|
—
|
|
Deep Mill Level Zone
c
|
Mill
|
|
472
|
|
|
0.87
|
|
|
0.71
|
|
|
—
|
|
|
4.36
|
|
|
—
|
|
|
86.8
|
|
|
79.3
|
|
|
—
|
|
|
64.9
|
|
|
—
|
|
|
|
|
2,269
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Africa
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Tenke Fungurume
|
Agitation leach
|
|
98
|
|
|
3.27
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.38
|
|
|
86.4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
75.9
|
|
Total FCX - 100% Basis
|
|
|
15,316
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
a.
|
Recoveries are net of estimated mill and smelter losses.
|
b.
|
Grade not shown because of rounding.
|
c.
|
Undeveloped reserves that would require additional capital investment, which could be significant, to bring into production.
|
Recoverable Proven and Probable Mineral Reserves
|
||||||||||||||||||
Estimated at December 31, 2014
|
||||||||||||||||||
(continued)
|
||||||||||||||||||
|
|
|
|
|
Recoverable Reserves
|
|||||||||||||
|
|
|
|
|
Copper
|
|
Gold
|
|
Moly
|
|
Silver
|
|
Cobalt
|
|||||
|
FCX’s
|
|
Processing
|
|
billion
|
|
million
|
|
billion
|
|
million
|
|
billion
|
|||||
|
Interest
|
|
Method
|
|
lbs.
|
|
ozs.
|
|
lbs.
|
|
ozs.
|
|
lbs.
|
|||||
North America
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Morenci
|
85%
|
|
Mill
|
|
6.0
|
|
|
—
|
|
|
0.17
|
|
|
—
|
|
|
—
|
|
|
|
|
Crushed leach
|
|
3.9
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
|
ROM leach
|
|
4.5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Bagdad
|
100%
|
|
Mill
|
|
7.5
|
|
|
0.1
|
|
|
0.38
|
|
|
29.8
|
|
|
—
|
|
|
|
|
ROM leach
|
|
0.2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Safford
|
100%
|
|
Crushed leach
|
|
0.8
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Sierrita
|
100%
|
|
Mill
|
|
10.6
|
|
|
0.1
|
|
|
1.01
|
|
|
54.6
|
|
|
—
|
|
Miami
|
100%
|
|
ROM leach
|
|
—
|
|
a
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Chino
|
100%
|
|
Mill
|
|
1.4
|
|
|
0.1
|
|
|
0.01
|
|
|
1.8
|
|
|
—
|
|
|
|
|
ROM leach
|
|
0.3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Tyrone
|
100%
|
|
ROM leach
|
|
0.2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Henderson
|
100%
|
|
Mill
|
|
—
|
|
|
—
|
|
|
0.28
|
|
|
—
|
|
|
—
|
|
Climax
|
100%
|
|
Mill
|
|
—
|
|
|
—
|
|
|
0.58
|
|
|
—
|
|
|
—
|
|
Cobre
|
100%
|
|
Mill
|
|
0.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
|
ROM leach
|
|
0.2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
|
|
|
35.7
|
|
|
0.3
|
|
|
2.43
|
|
|
86.2
|
|
|
—
|
|
Recoverable metal in stockpiles
b
|
|
|
|
2.1
|
|
|
—
|
|
|
0.01
|
|
|
—
|
|
|
—
|
|
|
100% operations
|
|
|
|
37.8
|
|
|
0.3
|
|
|
2.44
|
|
|
86.2
|
|
|
—
|
|
|
Consolidated
c
|
|
|
|
35.6
|
|
|
0.3
|
|
|
2.42
|
|
|
86.2
|
|
|
—
|
|
|
Net equity interest
d
|
|
|
|
35.6
|
|
|
0.3
|
|
|
2.42
|
|
|
86.2
|
|
|
—
|
|
|
South America
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Cerro Verde
|
53.56%
|
|
Mill
|
|
26.8
|
|
|
—
|
|
|
0.66
|
|
|
83.9
|
|
|
—
|
|
|
|
|
Crushed leach
|
|
0.8
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
|
ROM leach
|
|
0.2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
El Abra
|
51%
|
|
Crushed leach
|
|
2.3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
|
ROM leach
|
|
0.2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
|
|
|
30.3
|
|
|
—
|
|
|
0.66
|
|
|
83.9
|
|
|
—
|
|
Recoverable metal in stockpiles
b
|
|
|
|
1.5
|
|
|
—
|
|
|
0.03
|
|
|
2.7
|
|
|
—
|
|
|
100% operations
|
|
|
|
31.8
|
|
|
—
|
|
|
0.69
|
|
|
86.6
|
|
|
—
|
|
|
Consolidated
c
|
|
|
|
31.8
|
|
|
—
|
|
|
0.69
|
|
|
86.6
|
|
|
—
|
|
|
Net equity interest
d
|
|
|
|
16.9
|
|
|
—
|
|
|
0.37
|
|
|
46.4
|
|
|
—
|
|
|
Indonesia
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Grasberg open pit
|
e
|
|
Mill
|
|
3.2
|
|
|
4.9
|
|
|
—
|
|
|
6.1
|
|
|
—
|
|
Deep Ore Zone
|
e
|
|
Mill
|
|
1.5
|
|
|
2.5
|
|
|
—
|
|
|
6.8
|
|
|
—
|
|
Big Gossan
|
e
|
|
Mill
|
|
2.4
|
|
|
1.1
|
|
|
—
|
|
|
15.3
|
|
|
—
|
|
Grasberg Block Cave
|
e
|
|
Mill
|
|
18.9
|
|
|
16.3
|
|
|
—
|
|
|
64.7
|
|
|
—
|
|
Kucing Liar
|
e
|
|
Mill
|
|
9.5
|
|
|
6.3
|
|
|
—
|
|
|
33.8
|
|
|
—
|
|
Deep Mill Level Zone
|
e
|
|
Mill
|
|
7.9
|
|
|
8.6
|
|
|
—
|
|
|
43.0
|
|
|
—
|
|
100% operations
|
|
|
|
43.4
|
|
|
39.7
|
|
|
—
|
|
|
169.7
|
|
|
—
|
|
|
Consolidated
c
|
|
|
|
29.0
|
|
|
28.2
|
|
|
—
|
|
|
110.1
|
|
|
—
|
|
|
Net equity interest
d
|
|
|
|
26.3
|
|
|
25.6
|
|
|
—
|
|
|
99.8
|
|
|
—
|
|
|
Africa
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Tenke Fungurume
|
56%
|
|
Agitation leach
|
|
6.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.62
|
|
Recoverable metal in stockpiles
b
|
|
|
|
1.0
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.23
|
|
|
100% operations
|
|
|
|
7.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.85
|
|
|
Consolidated
c
|
|
|
|
7.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.85
|
|
|
Net equity interest
d
|
|
|
|
4.0
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.47
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Total FCX – 100% basis
|
|
|
|
120.1
|
|
|
40.0
|
|
|
3.13
|
|
|
342.5
|
|
|
0.85
|
|
|
Total FCX – Consolidated basis
c
|
|
|
|
103.5
|
|
|
28.5
|
|
|
3.11
|
|
|
282.9
|
|
|
0.85
|
|
|
Total FCX – Net equity interest
d
|
|
|
|
82.8
|
|
|
25.9
|
|
|
2.79
|
|
|
232.4
|
|
|
0.47
|
|
a.
|
Amounts not shown because of rounding.
|
b.
|
Refer to "Mill and Leach Stockpiles" for additional information.
|
c.
|
Consolidated reserves represent estimated metal quantities after reduction for joint venture partner interests at the Morenci mine in North America and at the Grasberg minerals district in Indonesia.
|
d.
|
Net equity interest represents estimated consolidated metal quantities further reduced for noncontrolling interest ownership.
|
e.
|
Our joint venture agreement with Rio Tinto provides that PT-FI will receive cash flow from specified annual amounts of copper, gold and silver through 2021, calculated by reference to its proven and probable reserves as of December 31, 1994, and 60 percent of all remaining cash flow.
|
|
Copper Equivalent Cutoff Grade (Percent)
|
|
Molybdenum
Cutoff Grade
(Percent)
|
||||
|
Mill
|
|
Crushed or
Agitation Leach
|
|
ROM
Leach
|
|
Mill
|
North America
|
|
|
|
|
|
|
|
Morenci
|
0.25
|
|
0.19
|
|
0.03
|
|
—
|
Bagdad
|
0.18
|
|
—
|
|
0.08
|
|
—
|
Safford
|
—
|
|
0.13
|
|
—
|
|
—
|
Sierrita
|
0.18
|
|
—
|
|
—
|
|
—
|
Miami
|
—
|
|
—
|
|
0.05
|
|
—
|
Chino
|
0.20
|
|
—
|
|
0.08
|
|
—
|
Tyrone
|
—
|
|
—
|
|
0.07
|
|
—
|
Henderson
|
—
|
|
—
|
|
—
|
|
0.12
|
Climax
|
—
|
|
—
|
|
—
|
|
0.05
|
Cobre
|
0.50
|
|
—
|
|
0.10
|
|
—
|
South America
|
|
|
|
|
|
|
|
Cerro Verde
|
0.17
|
|
0.19
|
|
0.14
|
|
—
|
El Abra
|
—
|
|
0.11
|
|
0.08
|
|
—
|
Indonesia
|
|
|
|
|
|
|
|
Grasberg open pit
|
0.25
|
|
—
|
|
—
|
|
—
|
Deep Ore Zone
|
0.83
|
|
—
|
|
—
|
|
—
|
Big Gossan
|
1.88
|
|
—
|
|
—
|
|
—
|
Grasberg Block Cave
|
0.74
|
|
—
|
|
—
|
|
—
|
Kucing Liar
|
0.86
|
|
—
|
|
—
|
|
—
|
Deep Mill Level Zone
|
0.75
|
|
—
|
|
—
|
|
—
|
Africa
|
|
|
|
|
|
|
|
Tenke Fungurume
|
—
|
|
1.31
|
|
—
|
|
—
|
|
|
|
|
|
|
|
Recoverable
|
|||||
|
Million
|
|
Average
|
|
Recovery
|
|
Copper
|
|||||
|
Metric Tons
|
|
Ore Grade (%)
|
|
Rate (%)
|
|
(billion pounds)
|
|||||
Mill stockpiles
|
|
|
|
|
|
|
|
|
||||
Cerro Verde
|
131
|
|
|
0.37
|
|
|
81.4
|
|
|
0.9
|
|
|
|
|
|
|
|
|
|
|
|
||||
Leach stockpiles
|
|
|
|
|
|
|
|
|
||||
Morenci
|
5,730
|
|
|
0.24
|
|
|
2.4
|
|
|
0.7
|
|
|
Bagdad
|
498
|
|
|
0.25
|
|
|
2.0
|
|
|
0.1
|
|
|
Safford
|
187
|
|
|
0.41
|
|
|
15.2
|
|
|
0.3
|
|
|
Sierrita
|
650
|
|
|
0.15
|
|
|
11.4
|
|
|
0.2
|
|
|
Miami
|
494
|
|
|
0.39
|
|
|
3.2
|
|
|
0.1
|
|
|
Chino
|
1,665
|
|
|
0.26
|
|
|
5.2
|
|
|
0.5
|
|
|
Tyrone
|
1,107
|
|
|
0.28
|
|
|
2.7
|
|
|
0.2
|
|
|
Cerro Verde
|
479
|
|
|
0.51
|
|
|
3.4
|
|
|
0.2
|
|
|
El Abra
|
592
|
|
|
0.43
|
|
|
7.7
|
|
|
0.4
|
|
|
Tenke Fungurume
|
39
|
|
|
1.26
|
|
|
91.2
|
|
|
1.0
|
|
|
|
11,441
|
|
|
|
|
|
|
3.7
|
|
|
||
|
|
|
|
|
|
|
|
|
||||
Total FCX - 100% basis
|
|
|
|
|
|
|
4.6
|
|
|
|||
Total FCX - Consolidated basis
a
|
|
|
|
|
|
|
4.5
|
|
|
|||
Total FCX - Net equity interest
b
|
|
|
|
|
|
|
3.3
|
|
|
|||
|
|
|
|
|
|
|
|
|
a.
|
Consolidated represents estimated metal quantities after reduction for our joint venture partner’s interest in the Morenci mine in North America.
|
b.
|
Net equity interest represents estimated consolidated metal quantities further reduced for noncontrolling interest ownership.
|
Mineralized Material
|
|||||||||||||||||||||||||||
Estimated at December 31, 2014
|
|||||||||||||||||||||||||||
|
|
|
|
Milling Material
|
|
Leaching Material
|
|
Total Mineralized Material
|
|
||||||||||||||||||
|
|
|
|
Million
|
|
|
|
|
|
|
|
|
|
Million
|
|
|
|
Million
|
|
||||||||
|
|
FCX’s
|
|
metric
|
|
Copper
|
|
Gold
|
|
Moly
|
|
SIlver
|
|
metric
|
|
Copper
|
|
metric
|
|
||||||||
|
|
Interest
|
|
tons
|
|
%
|
|
g/t
|
|
%
|
|
g/t
|
|
tons
|
|
%
|
|
tons
|
|
||||||||
North America
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Morenci
|
|
85%
|
|
1,042
|
|
|
0.27
|
|
|
—
|
|
|
0.02
|
|
|
—
|
|
|
1,085
|
|
|
0.21
|
|
|
2,127
|
|
|
Bagdad
|
|
100%
|
|
652
|
|
|
0.27
|
|
|
—
|
|
a
|
0.02
|
|
|
1.3
|
|
|
6
|
|
|
0.17
|
|
|
658
|
|
|
Safford
|
|
100%
|
|
272
|
|
|
0.61
|
|
|
0.11
|
|
|
—
|
|
|
2.3
|
|
|
47
|
|
|
0.29
|
|
|
319
|
|
|
Sierrita
|
|
100%
|
|
1,535
|
|
|
0.18
|
|
|
—
|
|
a
|
0.02
|
|
|
1.1
|
|
|
—
|
|
|
—
|
|
|
1,535
|
|
|
Chino
|
|
100%
|
|
163
|
|
|
0.43
|
|
|
0.03
|
|
|
0.01
|
|
|
0.4
|
|
|
30
|
|
|
0.28
|
|
|
193
|
|
|
Tyrone
|
|
100%
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
31
|
|
|
0.33
|
|
|
31
|
|
|
Henderson
|
|
100%
|
|
226
|
|
|
—
|
|
|
—
|
|
|
0.12
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
226
|
|
|
Climax
|
|
100%
|
|
460
|
|
|
—
|
|
|
—
|
|
|
0.15
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
460
|
|
|
Cobre
|
|
100%
|
|
31
|
|
|
0.50
|
|
|
0.07
|
|
|
—
|
|
|
1.2
|
|
|
5
|
|
|
0.33
|
|
|
36
|
|
|
Ajo
|
|
100%
|
|
434
|
|
|
0.40
|
|
|
0.06
|
|
|
0.01
|
|
|
0.8
|
|
|
—
|
|
|
—
|
|
|
434
|
|
|
Cochise/Bisbee
|
|
100%
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
254
|
|
|
0.46
|
|
|
254
|
|
|
Lone Star
|
|
100%
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
656
|
|
|
0.44
|
|
|
656
|
|
|
Sanchez
|
|
100%
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
180
|
|
|
0.29
|
|
|
180
|
|
|
Tohono
|
|
100%
|
|
152
|
|
|
0.69
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
165
|
|
|
0.68
|
|
|
317
|
|
|
Twin Buttes
|
|
100%
|
|
73
|
|
|
0.62
|
|
|
—
|
|
|
0.04
|
|
|
6.4
|
|
|
44
|
|
|
0.23
|
|
|
117
|
|
|
Christmas
|
|
100%
|
|
245
|
|
|
0.39
|
|
|
0.05
|
|
|
—
|
|
a
|
1.0
|
|
|
—
|
|
|
—
|
|
|
245
|
|
|
South America
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Cerro Verde
|
|
53.56%
|
|
272
|
|
|
0.34
|
|
|
—
|
|
|
0.01
|
|
|
1.4
|
|
|
5
|
|
|
0.40
|
|
|
277
|
|
|
El Abra
|
|
51%
|
|
1,765
|
|
|
0.46
|
|
|
0.02
|
|
|
0.01
|
|
|
1.5
|
|
|
187
|
|
|
0.30
|
|
|
1,952
|
|
|
Indonesia
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Grasberg minerals district
|
|
54.38%
b
|
|
2,489
|
|
|
0.67
|
|
|
0.60
|
|
|
—
|
|
|
3.6
|
|
|
—
|
|
|
—
|
|
|
2,489
|
|
|
Africa
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Tenke Fungurume
c
|
|
56%
|
|
49
|
|
|
4.05
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
21
|
|
|
2.99
|
|
|
70
|
|
|
Kisanfu
c
|
|
95%
|
|
49
|
|
|
2.48
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
47
|
|
|
3.16
|
|
|
96
|
|
|
Total FCX - 100% basis
|
|
|
|
9,909
|
|
|
|
|
|
|
|
|
|
|
2,763
|
|
|
|
|
12,672
|
|
|
|||||
Total FCX - Consolidated basis
d
|
|
|
|
8,756
|
|
|
|
|
|
|
|
|
|
|
2,600
|
|
|
|
|
11,356
|
|
|
|||||
Total FCX - Net equity interest
e
|
|
|
|
7,602
|
|
|
|
|
|
|
|
|
|
|
2,494
|
|
|
|
|
10,096
|
|
|
|||||
|
|
|
a.
|
Amounts not shown because of rounding.
|
b.
|
FCX's interest in the Grasberg minerals district reflects our 60 percent joint venture ownership further reduced by noncontrolling interest ownership.
|
c.
|
Stated tonnage also includes cobalt at Tenke Fungurume (0.33 percent) and Kisanfu (1.15 percent).
|
d.
|
Consolidated basis represents estimated mineralized materials after reduction for our joint venture partners' interest in the Morenci mine and the Grasberg minerals district.
|
e.
|
Net equity interest represents estimated consolidated mineralized material further reduced for noncontrolling interest ownership.
|
|
|
|
|
Developed
|
|
Undeveloped
|
|
||||||||
|
|
|
|
Gross Acres
|
|
Net Acres
|
|
Gross Acres
|
|
Net Acres
|
|
||||
U.S.:
|
|
|
|
|
|
|
|
|
|||||||
|
Louisiana:
|
|
|
|
|
|
|
|
|
||||||
|
|
Onshore
|
403,860
|
|
|
81,034
|
|
|
207,870
|
|
|
160,487
|
|
|
|
|
|
Offshore
|
363,162
|
|
|
210,342
|
|
|
1,058,752
|
|
|
673,251
|
|
|
|
|
Texas:
|
|
|
|
|
|
|
|
|
||||||
|
|
Onshore
|
21,526
|
|
|
4,358
|
|
|
3,760
|
|
|
745
|
|
|
|
|
|
Offshore
|
46,080
|
|
|
26,850
|
|
|
—
|
|
|
—
|
|
|
|
|
California:
|
|
|
|
|
|
|
|
|
||||||
|
|
Onshore
|
60,898
|
|
|
60,406
|
|
|
63,755
|
|
|
39,970
|
|
|
|
|
|
Offshore
|
43,335
|
|
|
39,062
|
|
|
—
|
|
|
—
|
|
|
|
|
Wyoming
|
80,692
|
|
|
13,688
|
|
|
65,527
|
|
|
51,965
|
|
|
||
|
Nevada
|
—
|
|
|
—
|
|
|
246,073
|
|
|
246,073
|
|
|
||
|
Other states
|
2,984
|
|
|
449
|
|
|
217,610
|
|
|
165,846
|
|
|
||
|
|
1,022,537
|
|
|
436,189
|
|
|
1,863,347
|
|
|
1,338,337
|
|
|
||
|
Morocco
|
—
|
|
|
—
|
|
|
2,154,014
|
|
|
1,120,087
|
|
|
||
|
|
1,022,537
|
|
|
436,189
|
|
|
4,017,361
|
|
|
2,458,424
|
|
|
|
|
|
|
|
|
|
|
|
Capacity per Day
|
||
Platform
|
|
Field Location
|
|
Type of Platform
|
|
Production Commenced
|
|
Water Depth (feet)
|
Oil (MBbls)
|
|
Gas (MMcf)
|
Holstein
a
|
|
Green Canyon Blocks 644, 645 and 688
|
|
Truss Spar
|
|
2004
|
|
4,300
|
113
|
|
142
|
Horn Mountain
a
|
|
Mississippi Canyon Blocks 126 and 127
|
|
Truss Spar
|
|
2002
|
|
5,400
|
75
|
|
72
|
Marlin Hub
a
|
|
Several
b
|
|
Tension Leg
|
|
2000
|
|
3,200
|
60
|
|
235
|
Ram Powell
|
|
Viosca Knoll Blocks 911 to 913 and 955 to 957
|
|
Tension Leg
|
|
1997
|
|
3,200
|
70
|
|
310
|
Hoover
|
|
Several
c
|
|
Deep Draft Caisson Vessel
|
|
2000
|
|
4,800
|
100
|
|
325
|
Lucius
|
|
Keathley Canyon Blocks 874,875,918 and 919
|
|
Truss Spar
|
|
2015
|
|
7,200
|
80
|
|
450
|
|
Year Ended December 31, 2014
|
||||||||||||||
|
GOM
a
|
|
California
|
|
Haynesville/Madden/Other
|
|
Eagle Ford
b
|
|
Total
c
|
||||||
Oil Sales
(MBbls)
|
19,681
|
|
|
13,732
|
|
|
222
|
|
|
6,481
|
|
|
40,116
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Natural Gas Sales
(MMcf)
|
|
|
|
|
|
|
|
|
|
||||||
Production
|
28,700
|
|
|
3,558
|
|
|
42,364
|
|
|
7,410
|
|
|
82,032
|
|
|
Less: fuel used in our operations
|
—
|
|
|
1,190
|
|
|
—
|
|
|
—
|
|
|
1,190
|
|
|
Sales
|
28,700
|
|
|
2,368
|
|
|
42,364
|
|
|
7,410
|
|
|
80,842
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
NGL Sales
(MBbls)
|
2,027
|
|
|
171
|
|
|
35
|
|
|
978
|
|
|
3,211
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
MBOE
|
|
|
|
|
|
|
|
|
|
||||||
Production
|
26,491
|
|
|
14,496
|
|
|
7,318
|
|
|
8,694
|
|
|
56,999
|
|
|
Sales
|
26,491
|
|
|
14,298
|
|
|
7,318
|
|
|
8,694
|
|
|
56,801
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Average Realizations, excluding derivatives
|
|
|
|
|
|
|
|
|
|
||||||
Oil (per barrel)
|
|
|
|
|
|
|
|
|
$
|
92.76
|
|
||||
Natural gas (per MMBtu)
|
|
|
|
|
|
|
|
|
$
|
4.37
|
|
||||
NGLs (per barrel)
|
|
|
|
|
|
|
|
|
$
|
39.73
|
|
||||
|
|
|
|
|
|
|
|
|
|
||||||
Average Cost per BOE
|
|
|
|
|
|
|
|
|
|
||||||
Production costs
d
|
|
|
|
|
|
|
|
|
$
|
18.00
|
|
||||
Production and ad valorem taxes
|
|
|
|
|
|
|
|
|
2.08
|
|
|||||
Cash production costs
e
|
|
|
|
|
|
|
|
|
$
|
20.08
|
|
|
Seven-Month Period Ending December 31, 2013
|
||||||||||||||
|
GOM
a
|
|
California
|
|
Haynesville/Madden/Other
|
|
Eagle Ford
|
|
Total
c
|
||||||
Oil Sales
(MBbls)
|
11,364
|
|
|
7,977
|
|
|
83
|
|
|
7,206
|
|
|
26,630
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Natural Gas Sales
(MMcf)
|
|
|
|
|
|
|
|
|
|
||||||
Production
|
17,231
|
|
|
2,098
|
|
|
26,782
|
|
|
8,844
|
|
|
54,955
|
|
|
Less: fuel used in our operations
|
—
|
|
|
780
|
|
|
—
|
|
|
—
|
|
|
780
|
|
|
Sales
|
17,231
|
|
|
1,318
|
|
|
26,782
|
|
|
8,844
|
|
|
54,175
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
NGL Sales
(MBbls)
|
1,049
|
|
|
97
|
|
|
27
|
|
|
1,244
|
|
|
2,417
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
MBOE
|
|
|
|
|
|
|
|
|
|
||||||
Production
|
15,286
|
|
|
8,423
|
|
|
4,574
|
|
|
9,924
|
|
|
38,207
|
|
|
Sales
|
15,286
|
|
|
8,293
|
|
|
4,574
|
|
|
9,924
|
|
|
38,077
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Average Realizations, excluding derivatives
|
|
|
|
|
|
|
|
|
|
||||||
Oil (per barrel)
|
|
|
|
|
|
|
|
|
$
|
99.67
|
|
||||
Natural gas (per MMBtu)
|
|
|
|
|
|
|
|
|
$
|
3.73
|
|
||||
NGLs (per barrel)
|
|
|
|
|
|
|
|
|
$
|
38.20
|
|
||||
|
|
|
|
|
|
|
|
|
|
||||||
Average Cost per BOE
|
|
|
|
|
|
|
|
|
|
||||||
Production costs
d
|
|
|
|
|
|
|
|
|
$
|
15.18
|
|
||||
Production and ad valorem taxes
|
|
|
|
|
|
|
|
|
1.96
|
|
|||||
Cash production costs
e
|
|
|
|
|
|
|
|
|
$
|
17.14
|
|
a.
|
Includes properties in the Deepwater GOM and on the Shelf.
|
b.
|
Includes the results of Eagle Ford through June 19, 2014.
|
c.
|
At December 31, 2014 and 2013, no individual fields represented 15 percent or more of our proved oil and gas reserves.
|
d.
|
Reflects costs incurred to operate and maintain wells and related equipment and facilities.
|
e.
|
Refer to MD&A for further discussion of cash production costs per BOE and for a reconciliation to production and delivery costs reported in our consolidated financial statements.
|
|
|
Proved Oil and Natural Gas Reserves
|
|
|||||||
|
|
Estimated at December 31, 2014
|
|
|||||||
|
|
Oil
a
|
|
Natural Gas
|
|
Total
|
|
|||
|
|
(MMBbls)
|
|
(Bcf)
|
|
(MMBOE)
|
|
|||
Proved Developed:
|
|
|
|
|
|
|
|
|||
GOM
|
|
69
|
|
|
118
|
|
|
89
|
|
|
California
|
|
114
|
|
|
22
|
|
|
118
|
|
|
Haynesville/Madden/Other
|
|
1
|
|
|
229
|
|
|
39
|
|
|
|
|
184
|
|
|
369
|
|
|
246
|
|
|
Proved Undeveloped:
|
|
|
|
|
|
|
|
|||
GOM
|
|
69
|
|
|
57
|
|
|
79
|
|
|
California
|
|
35
|
|
|
3
|
|
|
35
|
|
|
Haynesville/Madden/Other
|
|
—
|
|
|
181
|
|
|
30
|
|
|
|
|
104
|
|
|
241
|
|
|
144
|
|
|
Total Proved Reserves
|
|
288
|
|
|
610
|
|
|
390
|
|
|
|
|
|
|
|
|
|
|
|
|
Probable Oil and Natural Gas Reserves
|
|
|||||||
|
|
Estimated at December 31, 2014
|
|
|||||||
|
|
Oil
a
|
|
Natural Gas
|
|
Total
|
|
|||
|
|
(MMBbls)
|
|
(Bcf)
|
|
(MMBOE)
|
|
|||
Probable Developed
b
:
|
|
|
|
|
|
|
|
|||
GOM
|
|
27
|
|
|
33
|
|
|
32
|
|
|
California
|
|
8
|
|
|
—
|
|
|
8
|
|
|
Haynesville/Madden/Other
|
|
—
|
|
|
6
|
|
|
1
|
|
|
|
|
35
|
|
|
39
|
|
|
41
|
|
|
Probable Undeveloped:
|
|
|
|
|
|
|
|
|||
GOM
|
|
81
|
|
|
75
|
|
|
93
|
|
|
California
|
|
83
|
|
|
22
|
|
|
87
|
|
|
Haynesville/Madden/Other
|
|
—
|
|
|
142
|
|
|
24
|
|
|
|
|
164
|
|
|
239
|
|
|
204
|
|
|
Total Probable Reserves
|
|
199
|
|
|
278
|
|
|
245
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended
|
|
Seven Month Period Ending
|
||||||||
|
|
|
December 31, 2014
|
|
December 31, 2013
|
||||||||
|
|
|
Gross
|
|
Net
|
|
Gross
|
|
Net
|
||||
Exploratory
|
|
|
|
|
|
|
|
||||||
|
Productive:
|
|
|
|
|
|
|
|
|||||
|
Oil
|
25
|
|
|
21
|
|
|
40
|
|
|
35
|
|
|
|
Gas
|
21
|
|
|
2
|
|
|
25
|
|
|
2
|
|
|
|
Dry
|
4
|
|
|
3
|
|
|
1
|
|
|
1
|
|
|
|
|
|
50
|
|
|
26
|
|
|
66
|
|
|
38
|
|
Development
|
|
|
|
|
|
|
|
||||||
|
Productive:
|
|
|
|
|
|
|
|
|||||
|
Oil
|
184
|
|
|
174
|
|
|
71
|
|
|
66
|
|
|
|
Gas
|
75
|
|
|
10
|
|
|
23
|
|
|
8
|
|
|
|
Dry
|
2
|
|
|
—
|
|
|
1
|
|
|
1
|
|
|
|
|
|
261
|
|
|
184
|
|
|
95
|
|
|
75
|
|
|
|
|
311
|
|
|
210
|
|
|
161
|
|
|
113
|
|
•
|
Limiting our flexibility in planning for, or reacting to, changes in the industries in which we operate;
|
•
|
Increasing our vulnerability to general adverse economic and industry conditions;
|
•
|
Limiting our ability to fund future working capital and capital expenditures, to engage in future development activities, or to otherwise realize the value of our assets and opportunities fully because of the need to dedicate a substantial portion of our cash flows from operations to payments on our debt; or
|
•
|
Placing us at a competitive disadvantage compared to our competitors that have less debt and/or fewer financial commitments.
|
•
|
Renegotiation, cancellation or forced modification of existing contracts;
|
•
|
Expropriation or nationalization of property;
|
•
|
Changes in another country's laws, regulations and policies, including those relating to labor, taxation, royalties, divestment, imports, exports, trade regulations, currency and environmental matters, which because of rising "resource nationalism" in countries around the world, may impose increasingly onerous requirements on foreign operations and investment;
|
•
|
Political instability, bribery, extortion, corruption, civil strife, acts of war, guerrilla activities, insurrection and terrorism;
|
•
|
Changes in the aspirations and expectations of local communities in which we operate with respect to our contributions to employee health and safety, infrastructure and community development and other factors that may affect our social license to operate, all of which lead to increased costs;
|
•
|
Foreign exchange controls and movements in foreign currency exchange rates; and
|
•
|
The risk of having to submit to the jurisdiction of an international court or arbitration panel or having to enforce the judgment of an international court or arbitration panel against a sovereign nation within its own territory.
|
•
|
Our knowledge and beliefs about complex scientific and historical facts and circumstances that in many cases occurred many decades ago;
|
•
|
Our beliefs and assumptions regarding the nature, extent and duration of remediation activities that we will be required to undertake and the estimated costs of those remediation activities, which are subject to varying interpretations; and
|
•
|
Our beliefs regarding the requirements that are imposed on us by existing laws and regulations and, in some cases, the clarification of uncertain regulatory requirements that could materially affect our environmental obligation estimates.
|
•
|
Authorize our Board of Directors (the Board) to issue preferred stock without stockholder approval and to designate the rights, preferences and privileges of each class; if issued, such preferred stock would increase the number of outstanding shares of our capital stock and could include terms that may deter an acquisition of us;
|
•
|
Establish advance notice requirements for nominations to the Board or for proposals that can be presented at stockholder meetings;
|
•
|
Limit removal of directors for cause only;
|
•
|
Limit who may call stockholder meetings; and
|
•
|
Require the approval of the holders of two thirds of our outstanding common stock to enter into certain business combination transactions, subject to certain exceptions, including if the consideration to be received by our common stockholders in the transaction is deemed to be a fair price.
|
Name
|
|
Age
|
|
Position or Office
|
James R. Moffett
|
|
76
|
|
Chairman of the Board
|
Richard C. Adkerson
|
|
68
|
|
Vice Chairman of the Board, and FCX President and Chief Executive Officer
|
James C. Flores
|
|
55
|
|
Vice Chairman of the Board, and FM O&G President and Chief Executive Officer
|
Michael J. Arnold
|
|
62
|
|
Executive Vice President and Chief Administrative Officer
|
Kathleen L. Quirk
|
|
51
|
|
Executive Vice President, Chief Financial Officer and Treasurer
|
|
|
2014
|
|
2013
|
||||
|
|
High
|
|
Low
|
|
High
|
|
Low
|
First Quarter
|
|
$38.09
|
|
$30.38
|
|
$36.26
|
|
$30.72
|
Second Quarter
|
|
$36.51
|
|
$32.35
|
|
$34.00
|
|
$26.37
|
Third Quarter
|
|
$39.32
|
|
$32.29
|
|
$34.99
|
|
$26.95
|
Fourth Quarter
|
|
$32.91
|
|
$20.94
|
|
$38.00
|
|
$32.34
|
|
|
2014
|
||||
|
|
Per Share
Amount
|
|
Record Date
|
|
Payment Date
|
First Quarter
|
|
$0.3125
|
|
01/15/2014
|
|
02/03/2014
|
Second Quarter
|
|
$0.3125
|
|
04/15/2014
|
|
05/01/2014
|
Third Quarter
|
|
$0.3125
|
|
07/15/2014
|
|
08/01/2014
|
Fourth Quarter
|
|
$0.3125
|
|
10/15/2014
|
|
11/03/2014
|
|
|
2013
|
||||
|
|
Per Share
Amount
|
|
Record Date
|
|
Payment Date
|
First Quarter
|
|
$0.3125
|
|
01/15/2013
|
|
02/01/2013
|
Second Quarter
|
|
$0.3125
|
|
04/15/2013
|
|
05/01/2013
|
Supplemental Dividend
|
|
$1.0000
|
|
06/14/2013
|
|
07/01/2013
|
Third Quarter
|
|
$0.3125
|
|
07/15/2013
|
|
08/01/2013
|
Fourth Quarter
|
|
$0.3125
|
|
10/15/2013
|
|
11/01/2013
|
Period
|
|
(a) Total
Number of
Shares Purchased
|
|
(b) Average
Price Paid Per Share
|
|
(c) Total Number of
Shares Purchased as Part of Publicly Announced Plans or Programs
a
|
|
(d) Maximum Number of Shares That May
Yet Be Purchased Under the Plans or Programs
a
|
|||||
October 1-31, 2014
|
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
23,685,500
|
|
November 1-30, 2014
|
|
214,923
|
|
b
|
$
|
27.79
|
|
|
—
|
|
|
23,685,500
|
|
December 1-31, 2014
|
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
23,685,500
|
|
Total
|
|
214,923
|
|
|
$
|
27.79
|
|
|
—
|
|
|
23,685,500
|
|
a.
|
On July 21, 2008, the Board approved an increase in our open-market share purchase program for up to 30 million shares. The program does not have an expiration date.
|
b.
|
Consists of shares acquired in connection with stock option exercises.
|
|
Years Ended December 31,
|
|
||||||||||||||||||
|
2014
|
|
2013
a
|
|
2012
|
|
2011
|
|
2010
|
|
||||||||||
CONSOLIDATED FINANCIAL DATA
|
(In millions, except per share amounts)
|
|
||||||||||||||||||
Revenues
|
$
|
21,438
|
|
b
|
$
|
20,921
|
|
b
|
$
|
18,010
|
|
|
$
|
20,880
|
|
|
$
|
18,982
|
|
|
Operating income
|
$
|
97
|
|
b,c
|
$
|
5,351
|
|
b,d,e
|
$
|
5,814
|
|
|
$
|
9,140
|
|
e
|
$
|
9,068
|
|
|
Net (loss) income
|
$
|
(745
|
)
|
|
$
|
3,441
|
|
|
$
|
3,980
|
|
|
$
|
5,747
|
|
|
$
|
5,544
|
|
|
Net (loss) income attributable to common stockholders
|
$
|
(1,308
|
)
|
b,c,f,g
|
$
|
2,658
|
|
b,d,e,f,g,h
|
$
|
3,041
|
|
f,g
|
$
|
4,560
|
|
e,f,g
|
$
|
4,273
|
|
f
|
Basic net (loss) income per share attributable to common stockholders
|
$
|
(1.26
|
)
|
|
$
|
2.65
|
|
|
$
|
3.20
|
|
|
$
|
4.81
|
|
|
$
|
4.67
|
|
|
Basic weighted-average common shares outstanding
|
1,039
|
|
|
1,002
|
|
|
949
|
|
|
947
|
|
|
915
|
|
|
|||||
Diluted net (loss) income per share attributable to common stockholders
|
$
|
(1.26
|
)
|
b,c,f,g
|
$
|
2.64
|
|
b,d,e,f,g,h
|
$
|
3.19
|
|
f,g
|
$
|
4.78
|
|
e,f,g
|
$
|
4.57
|
|
f
|
Diluted weighted-average common shares outstanding
|
1,039
|
|
|
1,006
|
|
|
954
|
|
|
955
|
|
|
949
|
|
|
|||||
Dividends declared per share of common stock
|
$
|
1.25
|
|
|
$
|
2.25
|
|
|
$
|
1.25
|
|
|
$
|
1.50
|
|
|
$
|
1.125
|
|
|
Operating cash flows
|
$
|
5,631
|
|
|
$
|
6,139
|
|
|
$
|
3,774
|
|
|
$
|
6,620
|
|
|
$
|
6,273
|
|
|
Capital expenditures
|
$
|
7,215
|
|
|
$
|
5,286
|
|
|
$
|
3,494
|
|
|
$
|
2,534
|
|
|
$
|
1,412
|
|
|
At December 31:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
$
|
464
|
|
|
$
|
1,985
|
|
|
$
|
3,705
|
|
|
$
|
4,822
|
|
|
$
|
3,738
|
|
|
Property, plant, equipment and mining development costs, net
|
$
|
26,220
|
|
|
$
|
24,042
|
|
|
$
|
20,999
|
|
|
$
|
18,449
|
|
|
$
|
16,785
|
|
|
Oil and gas properties, net
|
$
|
19,274
|
|
|
$
|
23,359
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
Goodwill
|
$
|
—
|
|
|
$
|
1,916
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
Total assets
|
$
|
58,795
|
|
|
$
|
63,473
|
|
|
$
|
35,440
|
|
|
$
|
32,070
|
|
|
$
|
29,386
|
|
|
Total debt, including current portion
|
$
|
18,970
|
|
|
$
|
20,706
|
|
|
$
|
3,527
|
|
|
$
|
3,537
|
|
|
$
|
4,755
|
|
|
Redeemable noncontrolling interest
|
$
|
751
|
|
|
$
|
716
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
Total stockholders’ equity
|
$
|
18,287
|
|
|
$
|
20,934
|
|
|
$
|
17,543
|
|
|
$
|
15,642
|
|
|
$
|
12,504
|
|
|
a.
|
Includes the results of FCX Oil & Gas Inc. (FM O&G) beginning June 1, 2013.
|
b.
|
Includes net noncash mark-to-market realized gains (losses) associated with crude oil and natural gas derivative contracts totaling
$627 million
(
$389 million
to net loss attributable to common stockholders or
$0.37
per share) for
2014
and
$(312) million
(
$(194) million
to net income attributable to common stockholders or
$(0.19)
per share) for the seven-month period from June 1, 2013, to
December 31, 2013
.
|
c.
|
Includes (i) impairment charges of
$5.5 billion
(
$4.0 billion
to net loss attributable to common stockholders or
$3.89
per share) to reduce the carrying value of oil and gas properties pursuant to full cost accounting rules and to fully impair goodwill and (ii) gains of
$717 million
(
$481 million
to net loss attributable to common stockholders or
$0.46
per share) primarily from the sale of our
80 percent
interests in the Candelaria and Ojos del Salado mining operations.
|
d.
|
Includes transaction and related costs principally associated with our oil and gas acquisitions totaling
$80 million
(
$50 million
to net income attributable to common stockholders or
$0.05
per share).
|
e.
|
Includes charges associated with labor agreements totaling
$36 million
(
$13 million
to net income attributable to common stockholders or
$0.01
per share) at Cerro Verde in 2013 and
$116 million
(
$50 million
to net income attributable to common stockholders or
$0.05
per share) at PT-FI, Cerro Verde and El Abra in 2011.
|
f.
|
Includes after-tax net gains (losses) on early extinguishment of debt totaling
$3 million
(less than
$0.01
per share) in
2014
,
$(28) million
(
$(0.03)
per share) in
2013
,
$(149) million
(
$(0.16)
per share) in 2012,
$(60) million
(
$(0.06)
per share) in 2011 and
$(71) million
(
$(0.07)
per share) in 2010.
|
g.
|
As further discussed in "Consolidated Results - Provision for Income Taxes" contained in Part 7. and 7a. Management's Discussion and Analysis of Financial Condition and Results of Operations, net (loss) income attributable to common stockholders includes a net tax charge of $121 million (
$103 million
net of noncontrolling interests or
$0.10
per share) in 2014, a net tax benefit of
$199 million
(
$0.20
per share) in 2013 and a net tax benefit of $205 million (
$98 million
net of noncontrolling interests or
$0.11
per share) in 2012. The year 2011 includes a tax charge of $53 million (
$49 million
net of noncontrolling interests or
$0.05
per share) for additional taxes associated with Cerro Verde's election to pay a special mining burden during the remaining term of its 1998 stability agreement.
|
h.
|
Includes a gain of $128 million to net income attributable to common stockholders ($0.13 per share) related to our preferred stock investments in and the subsequent acquisition of McMoRan Exploration Co.
|
|
Years Ended December 31,
|
|
||||||||||||||||||
|
2014
|
|
2013
|
|
2012
|
|
2011
|
|
2010
|
|
||||||||||
CONSOLIDATED MINING OPERATING DATA
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Copper (recoverable)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Production (millions of pounds)
|
3,904
|
|
|
4,131
|
|
|
3,663
|
|
|
3,691
|
|
|
3,908
|
|
|
|||||
Production (thousands of metric tons)
|
1,771
|
|
|
1,874
|
|
|
1,662
|
|
|
1,674
|
|
|
1,773
|
|
|
|||||
Sales, excluding purchases (millions of pounds)
|
3,888
|
|
|
4,086
|
|
|
3,648
|
|
|
3,698
|
|
|
3,896
|
|
|
|||||
Sales, excluding purchases (thousands of metric tons)
|
1,764
|
|
|
1,853
|
|
|
1,655
|
|
|
1,678
|
|
|
1,767
|
|
|
|||||
Average realized price per pound
|
$
|
3.09
|
|
|
$
|
3.30
|
|
|
$
|
3.60
|
|
|
$
|
3.86
|
|
|
$
|
3.59
|
|
|
Gold (thousands of recoverable ounces)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Production
|
1,214
|
|
|
1,250
|
|
|
958
|
|
|
1,383
|
|
|
1,886
|
|
|
|||||
Sales, excluding purchases
|
1,248
|
|
|
1,204
|
|
|
1,010
|
|
|
1,378
|
|
|
1,863
|
|
|
|||||
Average realized price per ounce
|
$
|
1,231
|
|
|
$
|
1,315
|
|
|
$
|
1,665
|
|
|
$
|
1,583
|
|
|
$
|
1,271
|
|
|
Molybdenum (millions of recoverable pounds)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Production
|
95
|
|
|
94
|
|
|
85
|
|
|
83
|
|
|
72
|
|
|
|||||
Sales, excluding purchases
|
95
|
|
|
93
|
|
|
83
|
|
|
79
|
|
|
67
|
|
|
|||||
Average realized price per pound
|
$
|
12.74
|
|
|
$
|
11.85
|
|
|
$
|
14.26
|
|
|
$
|
16.98
|
|
|
$
|
16.47
|
|
|
NORTH AMERICA COPPER MINES
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Operating Data, Net of Joint Venture Interest
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Copper (recoverable)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Production (millions of pounds)
|
1,670
|
|
|
1,431
|
|
|
1,363
|
|
|
1,258
|
|
|
1,067
|
|
|
|||||
Production (thousands of metric tons)
|
757
|
|
|
649
|
|
|
618
|
|
|
571
|
|
|
484
|
|
|
|||||
Sales, excluding purchases (millions of pounds)
|
1,664
|
|
|
1,422
|
|
|
1,351
|
|
|
1,247
|
|
|
1,085
|
|
|
|||||
Sales, excluding purchases (thousands of metric tons)
|
755
|
|
|
645
|
|
|
613
|
|
|
566
|
|
|
492
|
|
|
|||||
Average realized price per pound
|
$
|
3.13
|
|
|
$
|
3.36
|
|
|
$
|
3.64
|
|
|
$
|
3.99
|
|
|
$
|
3.42
|
|
|
Molybdenum (millions of recoverable pounds)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Production
|
33
|
|
|
32
|
|
|
36
|
|
|
35
|
|
|
25
|
|
|
|||||
100% Operating Data
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Solution extraction/electrowinning (SX/EW) operations
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Leach ore placed in stockpiles (metric tons per day)
|
1,005,300
|
|
|
1,003,500
|
|
|
998,600
|
|
|
888,300
|
|
|
648,800
|
|
|
|||||
Average copper ore grade (percent)
|
0.25
|
|
|
0.22
|
|
|
0.22
|
|
|
0.24
|
|
|
0.24
|
|
|
|||||
Copper production (millions of recoverable pounds)
|
963
|
|
|
889
|
|
|
866
|
|
|
801
|
|
|
746
|
|
|
|||||
Mill operations
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Ore milled (metric tons per day)
|
273,800
|
|
|
246,500
|
|
|
239,600
|
|
|
222,800
|
|
|
189,200
|
|
|
|||||
Average ore grade (percent):
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Copper
|
0.45
|
|
|
0.39
|
|
|
0.37
|
|
|
0.38
|
|
|
0.32
|
|
|
|||||
Molybdenum
|
0.03
|
|
|
0.03
|
|
|
0.03
|
|
|
0.03
|
|
|
0.03
|
|
|
|||||
Copper recovery rate (percent)
|
85.8
|
|
|
85.3
|
|
|
83.9
|
|
|
83.1
|
|
|
83.0
|
|
|
|||||
Copper production (millions of recoverable pounds)
|
828
|
|
|
642
|
|
|
592
|
|
|
549
|
|
|
398
|
|
|
|||||
SOUTH AMERICA MINING
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Copper (recoverable)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Production (millions of pounds)
|
1,151
|
|
|
1,323
|
|
|
1,257
|
|
|
1,306
|
|
|
1,354
|
|
|
|||||
Production (thousands of metric tons)
|
522
|
|
|
600
|
|
|
570
|
|
|
592
|
|
|
614
|
|
|
|||||
Sales (millions of pounds)
|
1,135
|
|
|
1,325
|
|
|
1,245
|
|
|
1,322
|
|
|
1,335
|
|
|
|||||
Sales (thousands of metric tons)
|
515
|
|
|
601
|
|
|
565
|
|
|
600
|
|
|
606
|
|
|
|||||
Average realized price per pound
|
$
|
3.08
|
|
|
$
|
3.30
|
|
|
$
|
3.58
|
|
|
$
|
3.77
|
|
|
$
|
3.68
|
|
|
Gold (thousands of recoverable ounces)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Production
|
72
|
|
|
101
|
|
|
83
|
|
|
101
|
|
|
93
|
|
|
|||||
Sales
|
67
|
|
|
102
|
|
|
82
|
|
|
101
|
|
|
93
|
|
|
|||||
Average realized price per ounce
|
$
|
1,271
|
|
|
$
|
1,350
|
|
|
$
|
1,673
|
|
|
$
|
1,580
|
|
|
$
|
1,263
|
|
|
Molybdenum (millions of recoverable pounds)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Production
|
11
|
|
|
13
|
|
|
8
|
|
|
10
|
|
|
7
|
|
|
|||||
SX/EW operations
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Leach ore placed in stockpiles (metric tons per day)
|
275,200
|
|
|
274,600
|
|
|
229,300
|
|
|
245,200
|
|
|
268,800
|
|
|
|||||
Average copper ore grade (percent)
|
0.48
|
|
|
0.50
|
|
|
0.55
|
|
|
0.50
|
|
|
0.41
|
|
|
|||||
Copper production (millions of recoverable pounds)
|
491
|
|
|
448
|
|
|
457
|
|
|
439
|
|
|
504
|
|
|
|||||
Mill operations
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Ore milled (metric tons per day)
|
180,500
|
|
|
192,600
|
|
|
191,400
|
|
|
189,200
|
|
|
188,800
|
|
|
|||||
Average ore grade:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Copper (percent)
|
0.54
|
|
|
0.65
|
|
|
0.60
|
|
|
0.66
|
|
|
0.65
|
|
|
|||||
Gold (grams per metric ton)
|
0.10
|
|
|
0.12
|
|
|
0.10
|
|
|
0.12
|
|
|
0.10
|
|
|
|||||
Molybdenum (percent)
|
0.02
|
|
|
0.02
|
|
|
0.02
|
|
|
0.02
|
|
|
0.02
|
|
|
|||||
Copper recovery rate (percent)
|
88.1
|
|
|
90.9
|
|
|
90.1
|
|
|
89.6
|
|
|
90.0
|
|
|
|||||
Copper production (millions of recoverable pounds)
|
660
|
|
|
875
|
|
|
800
|
|
|
867
|
|
|
850
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
Years Ended December 31,
|
|
||||||||||||||||||
|
2014
|
|
2013
|
|
2012
|
|
2011
|
|
2010
|
|
||||||||||
INDONESIA MINING
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Operating Data, Net of Joint Venture Interest
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Copper (recoverable)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Production (millions of pounds)
|
636
|
|
|
915
|
|
|
695
|
|
|
846
|
|
|
1,222
|
|
|
|||||
Production (thousands of metric tons)
|
288
|
|
|
415
|
|
|
315
|
|
|
384
|
|
|
554
|
|
|
|||||
Sales (millions of pounds)
|
664
|
|
|
885
|
|
|
716
|
|
|
846
|
|
|
1,214
|
|
|
|||||
Sales (thousands of metric tons)
|
301
|
|
|
401
|
|
|
325
|
|
|
384
|
|
|
551
|
|
|
|||||
Average realized price per pound
|
$
|
3.01
|
|
|
$
|
3.28
|
|
|
$
|
3.58
|
|
|
$
|
3.85
|
|
|
$
|
3.69
|
|
|
Gold (thousands of recoverable ounces)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Production
|
1,130
|
|
|
1,142
|
|
|
862
|
|
|
1,272
|
|
|
1,786
|
|
|
|||||
Sales
|
1,168
|
|
|
1,096
|
|
|
915
|
|
|
1,270
|
|
|
1,765
|
|
|
|||||
Average realized price per ounce
|
$
|
1,229
|
|
|
$
|
1,312
|
|
|
$
|
1,664
|
|
|
$
|
1,583
|
|
|
$
|
1,271
|
|
|
100% Operating Data
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Ore milled (metric tons per day):
a
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Grasberg open pit
|
69,100
|
|
|
127,700
|
|
|
118,800
|
|
|
112,900
|
|
|
149,800
|
|
|
|||||
Deep Ore Zone underground mine
|
50,500
|
|
|
49,400
|
|
|
44,600
|
|
|
51,700
|
|
|
79,600
|
|
|
|||||
Big Gossan underground mine
|
900
|
|
|
2,100
|
|
|
1,600
|
|
|
1,500
|
|
|
800
|
|
|
|||||
Total
|
120,500
|
|
|
179,200
|
|
|
165,000
|
|
|
166,100
|
|
|
230,200
|
|
|
|||||
Average ore grade:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Copper (percent)
|
0.79
|
|
|
0.76
|
|
|
0.62
|
|
|
0.79
|
|
|
0.85
|
|
|
|||||
Gold (grams per metric ton)
|
0.99
|
|
|
0.69
|
|
|
0.59
|
|
|
0.93
|
|
|
0.90
|
|
|
|||||
Recovery rates (percent):
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Copper
|
90.3
|
|
|
90.0
|
|
|
88.7
|
|
|
88.3
|
|
|
88.9
|
|
|
|||||
Gold
|
83.2
|
|
|
80.0
|
|
|
75.7
|
|
|
81.2
|
|
|
81.7
|
|
|
|||||
Production (recoverable):
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Copper (millions of pounds)
|
651
|
|
|
928
|
|
|
695
|
|
|
882
|
|
|
1,330
|
|
|
|||||
Gold (thousands of ounces)
|
1,132
|
|
|
1,142
|
|
|
862
|
|
|
1,444
|
|
|
1,964
|
|
|
|||||
AFRICA MINING
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Copper (recoverable)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Production (millions of pounds)
|
447
|
|
|
462
|
|
|
348
|
|
|
281
|
|
|
265
|
|
|
|||||
Production (thousands of metric tons)
|
203
|
|
|
210
|
|
|
158
|
|
|
127
|
|
|
120
|
|
|
|||||
Sales (millions of pounds)
|
425
|
|
|
454
|
|
|
336
|
|
|
283
|
|
|
262
|
|
|
|||||
Sales (thousands of metric tons)
|
193
|
|
|
206
|
|
|
152
|
|
|
128
|
|
|
119
|
|
|
|||||
Average realized price per pound
|
$
|
3.06
|
|
|
$
|
3.21
|
|
|
$
|
3.51
|
|
|
$
|
3.74
|
|
|
$
|
3.45
|
|
|
Cobalt (millions of contained pounds)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Production
|
29
|
|
|
28
|
|
|
26
|
|
|
25
|
|
|
20
|
|
|
|||||
Sales
|
30
|
|
|
25
|
|
|
25
|
|
|
25
|
|
|
20
|
|
|
|||||
Average realized price per pound
|
$
|
9.66
|
|
|
$
|
8.02
|
|
|
$
|
7.83
|
|
|
$
|
9.99
|
|
|
10.95
|
|
|
|
Ore milled (metric tons per day)
|
14,700
|
|
|
14,900
|
|
|
13,000
|
|
|
11,100
|
|
|
10,300
|
|
|
|||||
Average ore grade (percent):
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Copper
|
4.06
|
|
|
4.22
|
|
|
3.62
|
|
|
3.41
|
|
|
3.51
|
|
|
|||||
Cobalt
|
0.34
|
|
|
0.37
|
|
|
0.37
|
|
|
0.40
|
|
|
0.40
|
|
|
|||||
Copper recovery rate (percent)
|
92.6
|
|
|
91.4
|
|
|
92.4
|
|
|
92.5
|
|
|
91.4
|
|
|
|||||
MOLYBDENUM MINES
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Molybdenum production (millions of recoverable pounds)
|
51
|
|
|
49
|
|
|
41
|
|
b
|
38
|
|
|
40
|
|
|
|||||
Ore milled (metric tons per day)
c
|
39,400
|
|
|
35,700
|
|
|
20,800
|
|
|
22,300
|
|
|
22,900
|
|
|
|||||
Average molybdenum ore grade (percent)
c
|
0.19
|
|
|
0.19
|
|
|
0.23
|
|
|
0.24
|
|
|
0.25
|
|
|
|||||
OIL AND GAS OPERATIONS
d
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Sales Volumes:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Oil (million barrels)
|
40.1
|
|
|
26.6
|
|
|
|
|
|
|
|
|
||||||||
Natural gas (billion cubic feet)
|
80.8
|
|
|
54.2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|||||
Natural gas liquids (NGLs) (million barrels)
|
3.2
|
|
|
2.4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|||||
Million barrels of oil equivalents (MMBOE)
|
56.8
|
|
|
38.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|||||
Average Realizations:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Oil (per barrel)
|
$
|
90.00
|
|
|
$
|
98.32
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|||
Natural gas
(per million British thermal units)
|
$
|
4.23
|
|
|
$
|
3.99
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|||
NGLs (per barrel)
|
$
|
39.73
|
|
|
$
|
38.20
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
a.
|
Represents the approximate average daily throughput processed at PT-FI’s mill facilities from each producing mine.
|
b.
|
Includes production from the Climax molybdenum mine, which began commercial operations in May 2012.
|
c.
|
The 2014 and 2013 periods reflect operating data for the Henderson and Climax mines; the prior periods reflect operating data of only the Henderson mine.
|
d.
|
Represents the results of FM O&G beginning June 1, 2013.
|
|
Years Ended December 31,
|
||||||||
|
2014
|
|
2013
|
|
2012
|
|
2011
|
|
2010
|
Ratio of earnings to fixed charges
|
—
|
a
|
7.4x
|
|
19.8x
|
|
20.7x
|
|
16.3x
|
Ratio of earnings to fixed charges
|
|
|
|
|
|
|
|
|
|
and preferred stock dividends
|
—
|
a
|
7.4x
|
|
19.8x
|
|
20.7x
|
|
13.9x
|
a.
|
As a result of the loss recorded in 2014, the ratio coverage was less than 1:1. FCX would have needed to generate additional earnings of $657 million to achieve coverage of 1:1 in 2014.
|
a.
|
For
2014
,
61 percent
of our consolidated molybdenum production in North America was from the Henderson and Climax primary molybdenum mines.
|
|
2015
|
|
2014
|
|
||
|
(Projected)
|
|
(Actual)
|
|
||
Copper
(millions of recoverable pounds):
|
|
|
|
|
||
North America copper mines
|
1,930
|
|
|
1,664
|
|
|
South America mining
|
935
|
|
|
1,135
|
|
|
Indonesia mining
|
960
|
|
|
664
|
|
|
Africa mining
|
445
|
|
|
425
|
|
|
|
4,270
|
|
|
3,888
|
|
|
Gold
(thousands of recoverable ounces):
|
|
|
|
|
||
Indonesia mining
|
1,285
|
|
|
1,168
|
|
|
North and South America mining
|
—
|
|
|
80
|
|
|
|
1,285
|
|
|
1,248
|
|
|
Molybdenum
(millions of recoverable pounds)
|
95
|
|
a
|
95
|
|
|
Oil Equivalents
(MMBOE)
|
55.5
|
|
|
56.8
|
|
|
a.
|
Projected molybdenum sales include
47 million
pounds produced at our molybdenum mines and
48 million
pounds produced at our North and South America copper mines.
|
|
|
Copper
a
(billion
pounds)
|
|
Gold
(million
ounces)
|
|
Molybdenum
(billion
pounds)
|
|
Consolidated reserves at December 31, 2012
|
|
116.5
|
|
|
32.5
|
|
3.42
|
Net additions/revisions
|
|
(1.2
|
)
|
|
—
|
|
(0.07)
|
Production
|
|
(4.1
|
)
|
|
(1.2)
|
|
(0.09)
|
Consolidated reserves at December 31, 2013
|
|
111.2
|
|
|
31.3
|
|
3.26
|
Net additions/revisions
|
|
(0.1
|
)
|
|
(0.6)
|
|
(0.05)
|
Production
|
|
(3.9
|
)
|
|
(1.2)
|
|
(0.10)
|
Sale of Candelaria/Ojos
|
|
(3.7
|
)
|
|
(1.0)
|
|
—
|
Consolidated reserves at December 31, 2014
|
|
103.5
|
|
|
28.5
|
|
3.11
|
|
|
|
|
|
|
|
a.
|
Includes estimated recoverable metals contained in stockpiles. See below for additional discussion of recoverable copper in stockpiles.
|
|
Years Ended December 31,
|
|
||||||||||
|
2014
|
|
2013
a
|
|
2012
|
|
||||||
SUMMARY FINANCIAL DATA
|
(in millions, except per share amounts)
|
|
||||||||||
Revenues
b
|
$
|
21,438
|
|
c,d
|
$
|
20,921
|
|
c,d
|
$
|
18,010
|
|
c
|
Operating income
b
|
$
|
97
|
|
c,d,e,f,g,h
|
$
|
5,351
|
|
c,d,g,h,i,j
|
$
|
5,814
|
|
c,g,h,i,j
|
Net (loss) income attributable to common stockholders
k
|
$
|
(1,308
|
)
|
c,d,e,f,g,h,l,m
|
$
|
2,658
|
|
c,d,g,h,i,j,l,n
|
$
|
3,041
|
|
c,g,h,i,j,l,m
|
Diluted net (loss) income per share attributable to common stockholders
|
$
|
(1.26
|
)
|
c,d,e,f,g,h,l,m
|
$
|
2.64
|
|
c,d,g,h,i,j,l,n
|
$
|
3.19
|
|
c,g,h,i,j,l,m
|
Diluted weighted-average common shares outstanding
|
1,039
|
|
|
1,006
|
|
|
954
|
|
|
|||
Operating cash flows
o
|
$
|
5,631
|
|
|
$
|
6,139
|
|
|
$
|
3,774
|
|
|
Capital expenditures
|
$
|
7,215
|
|
|
$
|
5,286
|
|
|
$
|
3,494
|
|
|
At December 31:
|
|
|
|
|
|
|
||||||
Cash and cash equivalents
|
$
|
464
|
|
|
$
|
1,985
|
|
|
$
|
3,705
|
|
|
Total debt, including current portion
|
$
|
18,970
|
|
|
$
|
20,706
|
|
|
$
|
3,527
|
|
|
a.
|
Includes the results of FM O&G beginning June 1, 2013.
|
|
Years Ended December 31,
|
||||||||||
Revenues
|
2014
|
|
2013
|
|
2012
|
||||||
North America copper mines
|
$
|
5,616
|
|
|
$
|
5,183
|
|
|
$
|
5,486
|
|
South America mining
|
3,532
|
|
|
4,485
|
|
|
4,728
|
|
|||
Indonesia mining
|
3,071
|
|
|
4,087
|
|
|
3,921
|
|
|||
Africa mining
|
1,558
|
|
|
1,637
|
|
|
1,359
|
|
|||
Molybdenum mines
|
587
|
|
|
522
|
|
|
529
|
|
|||
Rod & Refining
|
4,655
|
|
|
5,022
|
|
|
5,016
|
|
|||
Atlantic Copper Smelting & Refining
|
2,412
|
|
|
2,041
|
|
|
2,709
|
|
|||
U.S. oil & gas operations
|
4,710
|
|
|
2,616
|
|
|
—
|
|
|||
Other mining, corporate, other & eliminations
|
(4,703
|
)
|
|
(4,672
|
)
|
|
(5,738
|
)
|
|||
Total revenues
|
$
|
21,438
|
|
|
$
|
20,921
|
|
|
$
|
18,010
|
|
|
|
|
|
|
|
||||||
Operating income (loss)
|
|
|
|
|
|
||||||
North America copper mines
|
$
|
1,698
|
|
|
$
|
1,506
|
|
|
$
|
2,204
|
|
South America mining
|
1,220
|
|
|
2,063
|
|
|
2,321
|
|
|||
Indonesia mining
|
719
|
|
|
1,420
|
|
|
1,298
|
|
|||
Africa mining
|
548
|
|
|
625
|
|
|
562
|
|
|||
Molybdenum mines
|
167
|
|
|
123
|
|
|
150
|
|
|||
Rod & Refining
|
12
|
|
|
23
|
|
|
14
|
|
|||
Atlantic Copper Smelting & Refining
|
(2
|
)
|
|
(75
|
)
|
|
8
|
|
|||
U.S. oil & gas operations
|
(4,479
|
)
|
|
450
|
|
|
—
|
|
|||
Other mining, corporate, other & eliminations
|
214
|
|
|
(784
|
)
|
|
(743
|
)
|
|||
Total operating income
|
$
|
97
|
|
|
$
|
5,351
|
|
|
$
|
5,814
|
|
c.
|
Includes (unfavorable) favorable adjustments to provisionally priced concentrate and cathode sales recognized in prior periods totaling
$(118) million
(
$(65) million
to net loss attributable to common stockholders or
$(0.06)
per share) in
2014
,
$(26) million
(
$(12) million
to net income attributable to common stockholders or
$(0.01)
per share) in
2013
and
$101 million
(
$43 million
to net income attributable to common stockholders or
$0.05
per share) in
2012
. Refer to “Revenues” for further discussion.
|
d.
|
Includes net noncash mark-to-market gains (losses) associated with crude oil and natural gas derivative contracts totaling
$627 million
(
$389 million
to net loss attributable to common stockholders or
$0.37
per share) in
2014
and
$(312) million
(
$(194) million
to net income attributable to common stockholders or
$(0.19)
per share) for the seven-month period from June 1,
2013
, to December 31, 2013. Refer to "Revenues" for further discussion.
|
e.
|
Includes charges of
$3.7 billion
(
$2.3 billion
to net loss attributable to common stockholders or
$2.24
per share) to reduce the carrying value of oil and gas properties pursuant to full cost accounting rules and a goodwill impairment charge of
$1.7 billion
(
$1.7 billion
to net loss attributable to common stockholders or
$1.65
per share) for the full carrying value of goodwill.
|
f.
|
Includes gains of
$717 million
(
$481 million
to net loss attributable to common stockholders or
$0.46
per share) primarily from the sale of Candelaria/Ojos.
|
g.
|
Includes net (charges) credits for adjustments to environmental obligations and related litigation reserves totaling
$(76) million
(
$(50) million
to net loss attributable to common stockholders or
$(0.05)
per share) in
2014
,
$(19) million
(
$(17) million
to net income attributable to common stockholders or
$(0.02)
per share) in
2013
and
$62 million
(
$40 million
to net income attributable to common stockholders or
$0.04
per share) in
2012
.
|
h.
|
The year 2014 includes charges totaling
$37 million
(
$23 million
to net loss attributable to common stock or
$0.02
per share) associated with early rig termination and inventory write offs at FCX's oil and gas operations
.
The year
2013
includes charges of (i)
$76 million
(
$49 million
to net income attributable to common stockholders or
$0.05
per share) associated with updated mine plans at Morenci that resulted in a loss in recoverable copper in leach stockpiles and (ii)
$37 million
(
$23 million
to net income attributable to common stockholders or
$0.02
per share) for restructuring an executive employment arrangement. The year
2012
includes a gain of
$59 million
(
$31 million
to net income attributable to common stockholders or
$0.03
per share) for the settlement of the insurance claim for business interruption and property damage relating to the 2011 incidents affecting PT-FI's concentrate pipelines.
|
i.
|
Includes transaction and related costs totaling
$80 million
(
$50 million
to net income attributable to common stockholders or
$0.05
per share) in
2013
and
$9 million
(
$7 million
to net income attributable to common stockholders or
$0.01
per share) in
2012
principally associated with the oil and gas acquisitions.
|
j.
|
Includes charges associated with new labor agreements totaling
$36 million
(
$13 million
to net income attributable to common stockholders or
$0.01
per share) at Cerro Verde in
2013
and
$16 million
(
$8 million
to net income attributable to common stockholders or
$0.01
per share) at Candelaria in
2012
.
|
k.
|
We defer recognizing profits on intercompany sales until final sales to third parties occur. Refer to "Operations - Smelting & Refining" for a summary of net impacts from changes in these deferrals.
|
l.
|
Includes net gains (losses) on early extinguishment of debt totaling
$73 million
(
$3 million
to net loss attributable to common stockholders or less than $0.01 per share) in
2014
,
$(35) million
(
$(28) million
to net income attributable to common stockholders or
$(0.03)
per share) in
2013
and
$(168) million
(
$(149) million
to net income attributable to common stockholders or
$(0.16)
per share) in
2012
. Refer to Note
8
for further discussion.
|
m.
|
The year 2014 includes a net tax charge of
$103 million
(
$0.10
per share) and the year 2012 includes a net tax credit of
$98 million
, net of noncontrolling interests (
$0.11
per share).
Refer to Note 11 and "Provision for Income Taxes" below for further discussion of the net tax benefits (charges) impacting 2014 and 2012.
|
n.
|
Includes gains associated with the oil and gas acquisitions, including (i)
$199 million
to net income attributable to common stockholders (
$0.20
per share) associated with net reductions in our deferred tax liabilities and deferred tax asset valuation allowances, and (ii) $
128 million
to net income attributable to common stockholders ($0.13 per share) related to our preferred stock investment in and the subsequent acquisition of McMoRan Exploration Co. Refer to Note 11 and "Provision for Income Taxes" below for further discussion.
|
o.
|
Includes net working capital uses and changes in other tax payments of
$632 million
in
2014
,
$377 million
in
2013
and
$1.4 billion
in
2012
.
|
|
Years Ended December 31,
|
|
||||||||||
|
2014
|
|
2013
a
|
|
2012
|
|
||||||
SUMMARY OPERATING DATA
|
|
|
|
|
|
|
||||||
Copper
(recoverable)
|
|
|
|
|
|
|
||||||
Production (millions of pounds)
|
3,904
|
|
|
4,131
|
|
|
3,663
|
|
|
|||
Sales, excluding purchases (millions of pounds)
|
3,888
|
|
|
4,086
|
|
|
3,648
|
|
|
|||
Average realized price per pound
|
$
|
3.09
|
|
|
$
|
3.30
|
|
|
$
|
3.60
|
|
|
Site production and delivery costs per pound
b
|
$
|
1.90
|
|
c
|
$
|
1.88
|
|
|
$
|
2.00
|
|
|
Unit net cash costs per pound
b
|
$
|
1.51
|
|
c,d
|
$
|
1.49
|
|
|
$
|
1.48
|
|
|
Gold
(recoverable)
|
|
|
|
|
|
|
||||||
Production (thousands of ounces)
|
1,214
|
|
|
1,250
|
|
|
958
|
|
|
|||
Sales, excluding purchases (thousands of ounces)
|
1,248
|
|
|
1,204
|
|
|
1,010
|
|
|
|||
Average realized price per ounce
|
$
|
1,231
|
|
|
$
|
1,315
|
|
|
$
|
1,665
|
|
|
Molybdenum
(recoverable)
|
|
|
|
|
|
|
||||||
Production (millions of pounds)
|
95
|
|
|
94
|
|
|
85
|
|
|
|||
Sales, excluding purchases (millions of pounds)
|
95
|
|
|
93
|
|
|
83
|
|
|
|||
Average realized price per pound
|
$
|
12.74
|
|
|
$
|
11.85
|
|
|
$
|
14.26
|
|
|
Oil Equivalents
|
|
|
|
|
|
|
||||||
Sales volumes:
|
|
|
|
|
|
|
||||||
MMBOE
|
56.8
|
|
|
38.1
|
|
|
|
|
||||
Thousand BOE (MBOE) per day
|
156
|
|
|
178
|
|
|
|
|
||||
Cash operating margin per BOE:
e
|
|
|
|
|
|
|
||||||
Realized revenues
|
$
|
71.83
|
|
|
$
|
76.87
|
|
|
|
|
||
Cash production costs
|
20.08
|
|
|
17.14
|
|
|
|
|
||||
Cash operating margin
|
$
|
51.75
|
|
|
$
|
59.73
|
|
|
|
|
a.
|
Includes the results of FM O&G beginning June 1, 2013.
|
b.
|
Reflects per pound weighted-average production and delivery costs and unit net cash costs (net of by-product credits) for all copper mines, excluding net noncash and other costs. For reconciliations of the per pound unit costs by operating division to production and delivery costs applicable to sales reported in our consolidated financial statements, refer to “Product Revenues and Production Costs.”
|
c.
|
Excludes
$0.04
per pound of copper for fixed costs charged directly to cost of sales as a result of the impact of export restrictions on PT Freeport Indonesia's (PT-FI) operating rates.
|
d.
|
Includes $0.03 per pound of copper for export duties and increased royalty rates at PT-FI.
|
e.
|
Cash operating margin for oil and gas operations reflects realized revenues less cash production costs. Realized revenues exclude noncash mark-to-market adjustments on derivative contracts, and cash production costs exclude accretion and other costs. For reconciliations of realized revenues and cash production costs per BOE to revenues and production and delivery costs reported in our consolidated financial statements, refer to "Product Revenues and Production Costs."
|
|
2014
|
|
2013
|
|
||||
|
|
|
|
|
||||
Consolidated revenues - prior year
|
$
|
20,921
|
|
|
$
|
18,010
|
|
|
Mining operations:
|
|
|
|
|
||||
(Lower) higher sales volumes from mining operations:
|
|
|
|
|
||||
Copper
|
(650
|
)
|
|
1,576
|
|
|
||
Gold
|
58
|
|
|
323
|
|
|
||
Molybdenum
|
17
|
|
|
151
|
|
|
||
(Lower) higher price realizations from mining operations:
|
|
|
|
|
||||
Copper
|
(817
|
)
|
|
(1,226
|
)
|
|
||
Gold
|
(105
|
)
|
|
(421
|
)
|
|
||
Molybdenum
|
84
|
|
|
(225
|
)
|
|
||
Unfavorable impact of net adjustments for prior year provisionally priced copper sales
|
(92
|
)
|
|
(127
|
)
|
|
||
(Lower) higher revenues from purchased copper
|
(361
|
)
|
|
313
|
|
|
||
Higher (lower) Atlantic Copper revenues
|
371
|
|
|
(668
|
)
|
|
||
Oil and gas operations:
a
|
|
|
|
|
||||
Higher oil and gas revenues, including realized cash losses on derivative contracts
|
1,155
|
|
|
2,928
|
|
|
||
Favorable (unfavorable) impact of net noncash mark-to-market adjustments on derivative contracts
|
939
|
|
|
(312
|
)
|
|
||
Other, including intercompany eliminations
|
(82
|
)
|
|
599
|
|
|
||
Consolidated revenues - current year
|
$
|
21,438
|
|
|
$
|
20,921
|
|
|
|
2014
|
|
2013
|
|
||||||||||||||||
|
Income (Loss)
a
|
|
Effective
Tax Rate
|
|
Income Tax
(Provision) Benefit |
|
Income
a
|
|
Effective
Tax Rate |
|
Income Tax
(Provision) Benefit |
|
||||||||
U.S.
|
$
|
1,857
|
|
|
30%
|
|
$
|
(550
|
)
|
b,c
|
$
|
1,080
|
|
|
23%
|
|
$
|
(243
|
)
|
|
South America
|
1,221
|
|
|
43%
|
|
(531
|
)
|
d
|
2,021
|
|
|
36%
|
|
(720
|
)
|
|
||||
Indonesia
|
709
|
|
|
41%
|
|
(293
|
)
|
|
1,370
|
|
|
44%
|
|
(603
|
)
|
|
||||
Africa
|
379
|
|
|
31%
|
|
(116
|
)
|
|
425
|
|
|
31%
|
|
(131
|
)
|
|
||||
Impairment of oil and gas properties
|
(3,737
|
)
|
|
38%
|
|
1,413
|
|
|
—
|
|
|
N/A
|
|
—
|
|
|
||||
Gain on sale of Candelaria/Ojos
|
671
|
|
|
33%
|
|
(221
|
)
|
|
—
|
|
|
N/A
|
|
—
|
|
|
||||
Eliminations and other
|
193
|
|
|
N/A
|
|
(26
|
)
|
|
17
|
|
|
N/A
|
|
23
|
|
|
||||
|
1,293
|
|
|
25%
|
g
|
(324
|
)
|
|
4,913
|
|
|
34%
|
|
(1,674
|
)
|
|
||||
Adjustments
|
(1,717
|
)
|
e
|
N/A
|
|
—
|
|
|
—
|
|
|
N/A
|
|
199
|
|
f
|
||||
Consolidated FCX
|
$
|
(424
|
)
|
|
(76)%
|
|
$
|
(324
|
)
|
|
$
|
4,913
|
|
|
30%
|
|
$
|
(1,475
|
)
|
|
a.
|
Represents income (loss) by geographic location before income taxes and equity in affiliated companies’ net earnings.
|
b.
|
Includes an
$84 million
charge for deferred taxes recorded in connection with the allocation of goodwill to the sale of Eagle Ford properties.
|
c.
|
Includes a net benefit of
$41 million
, comprised of
$57 million
related to changes in U.S. state income tax filing positions, partly offset by a charge of
$16 million
for a change in U.S. federal income tax law.
|
d.
|
Includes charges related to changes in Chilean and Peruvian tax rules totaling
$78 million
(
$60 million
net of noncontrolling interests).
|
e.
|
Reflects goodwill impairment charges, which were non-deductible for tax purposes.
|
f.
|
Reflects net reductions in our deferred tax liabilities and deferred tax asset valuation allowances resulting from the oil and gas acquisitions.
|
g.
|
Our consolidated effective income tax rate is a function of the combined effective tax rates for the jurisdictions in which we conduct operations. Accordingly, variations in the relative proportions of jurisdictional income result in fluctuations to our consolidated effective income tax rate. Assuming average prices of
$2.60
per pound for copper,
$1,300
per ounce for gold,
$9
per pound for molybdenum and Brent crude oil of
$50
per barrel for the year ended 2015 and achievement of current sales volume and cost estimates, we estimate no tax provision for 2015. The effective tax rate at $3.00 per pound of copper and $65 per barrel of Brent crude oil for 2015, would approximate
30 percent
.
|
|
2012
|
|
||||||||
|
Income
a
|
|
Effective
Tax Rate |
|
Income Tax
(Provision) Benefit |
|
||||
U.S.
|
$
|
1,571
|
|
|
23%
|
|
$
|
(357
|
)
|
|
South America
|
2,211
|
|
|
36%
|
|
(791
|
)
|
b
|
||
Indonesia
|
1,287
|
|
|
39%
|
|
(497
|
)
|
|
||
Africa
|
357
|
|
|
31%
|
|
(112
|
)
|
|
||
Eliminations and other
|
61
|
|
|
N/A
|
|
13
|
|
|
||
|
5,487
|
|
|
32%
|
|
(1,744
|
)
|
|
||
Adjustments
|
—
|
|
|
N/A
|
|
234
|
|
c
|
||
Consolidated FCX
|
$
|
5,487
|
|
|
28%
|
|
$
|
(1,510
|
)
|
|
a.
|
Represents income by geographic location before income taxes and equity in affiliated companies’ net earnings.
|
b.
|
Cerro Verde signed a new 15-year mining stability agreement with the Peruvian government, which became effective January 1, 2014. In connection with the new mining stability agreement, Cerro Verde's income tax rate increased from 30 percent to 32 percent, and we recognized additional deferred tax expense of
$29 million
(
$25 million
net of noncontrolling interests) in 2012.
|
c.
|
Reflects the reversal of a net deferred tax liability totaling
$234 million
(
$123 million
of noncontrolling interest) related to reinvested profits at Cerro Verde that were not distributed prior to expiration of its 1998 stability agreement on December 31, 2013.
|
|
2014
|
|
2013
|
|
2012
|
||||||
Operating Data, Net of Joint Venture Interest
|
|
|
|
|
|
||||||
Copper
(recoverable)
|
|
|
|
|
|
||||||
Production (millions of pounds)
|
1,670
|
|
|
1,431
|
|
|
1,363
|
|
|||
Sales, excluding purchases (millions of pounds)
|
1,664
|
|
|
1,422
|
|
|
1,351
|
|
|||
Average realized price per pound
|
$
|
3.13
|
|
|
$
|
3.36
|
|
|
$
|
3.64
|
|
|
|
|
|
|
|
||||||
Molybdenum
(millions of recoverable pounds)
|
|
|
|
|
|
||||||
Production
a
|
33
|
|
|
32
|
|
|
36
|
|
|||
|
|
|
|
|
|
||||||
100% Operating Data
|
|
|
|
|
|
||||||
SX/EW operations
|
|
|
|
|
|
||||||
Leach ore placed in stockpiles (metric tons per day)
|
1,005,300
|
|
|
1,003,500
|
|
|
998,600
|
|
|||
Average copper ore grade (percent)
|
0.25
|
|
|
0.22
|
|
|
0.22
|
|
|||
Copper production (millions of recoverable pounds)
|
963
|
|
|
889
|
|
|
866
|
|
|||
|
|
|
|
|
|
||||||
Mill operations
|
|
|
|
|
|
||||||
Ore milled (metric tons per day)
|
273,800
|
|
|
246,500
|
|
|
239,600
|
|
|||
Average ore grade (percent):
|
|
|
|
|
|
||||||
Copper
|
0.45
|
|
|
0.39
|
|
|
0.37
|
|
|||
Molybdenum
|
0.03
|
|
|
0.03
|
|
|
0.03
|
|
|||
Copper recovery rate (percent)
|
85.8
|
|
|
85.3
|
|
|
83.9
|
|
|||
Copper production (millions of recoverable pounds)
|
828
|
|
|
642
|
|
|
592
|
|
a.
|
Refer to "Consolidated Results" for our consolidated molybdenum sales volumes, which includes sales of molybdenum produced at the North America copper mines.
|
|
2014
|
|
2013
|
||||||||||||||||||||
|
By-
|
|
Co-Product Method
|
|
By-
|
|
Co-Product Method
|
||||||||||||||||
|
Product
Method
|
|
Copper
|
|
Molyb-
denum
a
|
|
Product
Method
|
|
Copper
|
|
Molyb-
denum
a
|
||||||||||||
Revenues, excluding adjustments
|
$
|
3.13
|
|
|
$
|
3.13
|
|
|
$
|
11.52
|
|
|
$
|
3.36
|
|
|
$
|
3.36
|
|
|
$
|
10.79
|
|
Site production and delivery, before net noncash
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
and other costs shown below
|
1.85
|
|
|
1.81
|
|
|
2.74
|
|
|
2.00
|
|
|
1.94
|
|
|
3.79
|
|
||||||
By-product credits
|
(0.24
|
)
|
|
—
|
|
|
—
|
|
|
(0.24
|
)
|
|
—
|
|
|
—
|
|
||||||
Treatment charges
|
0.12
|
|
|
0.12
|
|
|
—
|
|
|
0.11
|
|
|
0.11
|
|
|
—
|
|
||||||
Unit net cash costs
|
1.73
|
|
|
1.93
|
|
|
2.74
|
|
|
1.87
|
|
|
2.05
|
|
|
3.79
|
|
||||||
Depreciation, depletion and amortization
|
0.29
|
|
|
0.28
|
|
|
0.14
|
|
|
0.28
|
|
|
0.27
|
|
|
0.22
|
|
||||||
Noncash and other costs, net
|
0.09
|
|
|
0.09
|
|
|
0.03
|
|
|
0.14
|
|
b
|
0.14
|
|
|
0.04
|
|
||||||
Total unit costs
|
2.11
|
|
|
2.30
|
|
|
2.91
|
|
|
2.29
|
|
|
2.46
|
|
|
4.05
|
|
||||||
Revenue adjustments, primarily for pricing on prior period open sales
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Gross profit per pound
|
$
|
1.02
|
|
|
$
|
0.83
|
|
|
$
|
8.61
|
|
|
$
|
1.07
|
|
|
$
|
0.90
|
|
|
$
|
6.74
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Copper sales (millions of recoverable pounds)
|
1,657
|
|
|
1,657
|
|
|
|
|
1,416
|
|
|
1,416
|
|
|
|
||||||||
Molybdenum sales (millions of recoverable pounds)
a
|
|
|
|
|
33
|
|
|
|
|
|
|
32
|
|
a.
|
Reflects sales of molybdenum produced by certain of the North America copper mines to our molybdenum sales company at market-based pricing.
|
b.
|
Includes $76 million ($0.05 per pound) associated with updated mine plans at Morenci that resulted in a loss in recoverable copper in leach stockpiles.
|
|
2013
|
|
2012
|
||||||||||||||||||||
|
By-
|
|
Co-Product Method
|
|
By-
|
|
Co-Product Method
|
||||||||||||||||
|
Product
Method
|
|
Copper
|
|
Molyb-
denum
a
|
|
Product
Method
|
|
Copper
|
|
Molyb-
denum
a
|
||||||||||||
Revenues, excluding adjustments
|
$
|
3.36
|
|
|
$
|
3.36
|
|
|
$
|
10.79
|
|
|
$
|
3.64
|
|
|
$
|
3.64
|
|
|
$
|
13.00
|
|
Site production and delivery, before net noncash
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
and other costs shown below
|
2.00
|
|
|
1.94
|
|
|
3.79
|
|
|
1.91
|
|
|
1.75
|
|
|
6.32
|
|
||||||
By-product credits
|
(0.24
|
)
|
|
—
|
|
|
—
|
|
|
(0.36
|
)
|
|
—
|
|
|
—
|
|
||||||
Treatment charges
|
0.11
|
|
|
0.11
|
|
|
—
|
|
|
0.12
|
|
|
0.11
|
|
|
—
|
|
||||||
Unit net cash costs
|
1.87
|
|
|
2.05
|
|
|
3.79
|
|
|
1.67
|
|
|
1.86
|
|
|
6.32
|
|
||||||
Depreciation, depletion and amortization
|
0.28
|
|
|
0.27
|
|
|
0.22
|
|
|
0.26
|
|
|
0.24
|
|
|
0.48
|
|
||||||
Noncash and other costs, net
|
0.14
|
|
b
|
0.14
|
|
|
0.04
|
|
|
0.10
|
|
|
0.10
|
|
|
0.09
|
|
||||||
Total unit costs
|
2.29
|
|
|
2.46
|
|
|
4.05
|
|
|
2.03
|
|
|
2.20
|
|
|
6.89
|
|
||||||
Revenue adjustments, primarily for pricing on prior period open sales
|
—
|
|
|
—
|
|
|
—
|
|
|
0.01
|
|
|
0.01
|
|
|
—
|
|
||||||
Gross profit per pound
|
$
|
1.07
|
|
|
$
|
0.90
|
|
|
$
|
6.74
|
|
|
$
|
1.62
|
|
|
$
|
1.45
|
|
|
$
|
6.11
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Copper sales (millions of recoverable pounds)
|
1,416
|
|
|
1,416
|
|
|
|
|
1,347
|
|
|
1,347
|
|
|
|
||||||||
Molybdenum sales (millions of recoverable pounds)
a
|
|
|
|
|
32
|
|
|
|
|
|
|
36
|
|
a.
|
Reflects sales of molybdenum produced by certain of the North America copper mines to our molybdenum sales company at market-based pricing.
|
b.
|
Includes $76 million ($0.05 per pound) associated with updated mine plans at Morenci that resulted in a loss in recoverable copper in leach stockpiles.
|
|
2014
a
|
|
2013
|
|
2012
|
||||||
Copper
(recoverable)
|
|
|
|
|
|
||||||
Production (millions of pounds)
|
1,151
|
|
|
1,323
|
|
|
1,257
|
|
|||
Sales (millions of pounds)
|
1,135
|
|
|
1,325
|
|
|
1,245
|
|
|||
Average realized price per pound
|
$
|
3.08
|
|
|
$
|
3.30
|
|
|
$
|
3.58
|
|
|
|
|
|
|
|
||||||
Gold
(recoverable)
|
|
|
|
|
|
||||||
Production (thousands of ounces)
|
72
|
|
|
101
|
|
|
83
|
|
|||
Sales (thousands of ounces)
|
67
|
|
|
102
|
|
|
82
|
|
|||
Average realized price per ounce
|
$
|
1,271
|
|
|
$
|
1,350
|
|
|
$
|
1,673
|
|
|
|
|
|
|
|
||||||
Molybdenum
(millions of recoverable pounds)
|
|
|
|
|
|
||||||
Production
b
|
11
|
|
|
13
|
|
|
8
|
|
|||
|
|
|
|
|
|
||||||
SX/EW operations
|
|
|
|
|
|
||||||
Leach ore placed in stockpiles (metric tons per day)
|
275,200
|
|
|
274,600
|
|
|
229,300
|
|
|||
Average copper ore grade (percent)
|
0.48
|
|
|
0.50
|
|
|
0.55
|
|
|||
Copper production (millions of recoverable pounds)
|
491
|
|
|
448
|
|
|
457
|
|
|||
|
|
|
|
|
|
||||||
Mill operations
|
|
|
|
|
|
||||||
Ore milled (metric tons per day)
|
180,500
|
|
|
192,600
|
|
|
191,400
|
|
|||
Average ore grade:
|
|
|
|
|
|
||||||
Copper (percent)
|
0.54
|
|
|
0.65
|
|
|
0.60
|
|
|||
Gold (grams per metric ton)
|
0.10
|
|
|
0.12
|
|
|
0.10
|
|
|||
Molybdenum (percent)
|
0.02
|
|
|
0.02
|
|
|
0.02
|
|
|||
Copper recovery rate (percent)
|
88.1
|
|
|
90.9
|
|
|
90.1
|
|
|||
Copper production (millions of recoverable pounds)
|
660
|
|
|
875
|
|
|
800
|
|
a.
|
Includes the results of Candelaria/Ojos through November 3, 2014.
|
b.
|
Refer to "Consolidated Results" for our consolidated molybdenum sales volumes, which includes sales of molybdenum produced at Cerro Verde.
|
|
2014
a
|
|
2013
|
||||||||||||
|
By-Product
Method
|
|
Co-Product
Method
|
|
By-Product
Method
|
|
Co-Product
Method
|
||||||||
Revenues, excluding adjustments
|
$
|
3.08
|
|
|
$
|
3.08
|
|
|
$
|
3.30
|
|
|
$
|
3.30
|
|
Site production and delivery, before net noncash
|
|
|
|
|
|
|
|
||||||||
and other costs shown below
|
1.62
|
|
|
1.50
|
|
|
1.53
|
|
b
|
1.42
|
|
||||
By-product credits
|
(0.22
|
)
|
|
—
|
|
|
(0.27
|
)
|
|
—
|
|
||||
Treatment charges
|
0.17
|
|
|
0.17
|
|
|
0.17
|
|
|
0.17
|
|
||||
Royalty on metals
|
0.01
|
|
|
0.01
|
|
|
—
|
|
|
—
|
|
||||
Unit net cash costs
|
1.58
|
|
|
1.68
|
|
|
1.43
|
|
|
1.59
|
|
||||
Depreciation, depletion and amortization
|
0.32
|
|
|
0.30
|
|
|
0.26
|
|
|
0.24
|
|
||||
Noncash and other costs, net
|
0.06
|
|
|
0.07
|
|
|
0.04
|
|
|
0.03
|
|
||||
Total unit costs
|
1.96
|
|
|
2.05
|
|
|
1.73
|
|
|
1.86
|
|
||||
Revenue adjustments, primarily for pricing on
|
|
|
|
|
|
|
|
||||||||
prior period open sales
|
(0.05
|
)
|
|
(0.05
|
)
|
|
(0.03
|
)
|
|
(0.03
|
)
|
||||
Gross profit per pound
|
$
|
1.07
|
|
|
$
|
0.98
|
|
|
$
|
1.54
|
|
|
$
|
1.41
|
|
|
|
|
|
|
|
|
|
||||||||
Copper sales (millions of recoverable pounds)
|
1,135
|
|
|
1,135
|
|
|
1,325
|
|
|
1,325
|
|
a.
|
Includes the results of Candelaria/Ojos through November 3, 2014.
|
b.
|
Includes labor agreement costs totaling
$36 million
($0.03 per pound) at Cerro Verde.
|
|
2013
|
|
2012
|
||||||||||||
|
By-Product
Method
|
|
Co-Product
Method
|
|
By-Product
Method
|
|
Co-Product
Method
|
||||||||
Revenues, excluding adjustments
|
$
|
3.30
|
|
|
$
|
3.30
|
|
|
$
|
3.58
|
|
|
$
|
3.58
|
|
Site production and delivery, before net noncash
|
|
|
|
|
|
|
|
||||||||
and other costs shown below
|
1.53
|
|
a
|
1.42
|
|
|
1.60
|
|
a
|
1.49
|
|
||||
By-product credits
|
(0.27
|
)
|
|
—
|
|
|
(0.26
|
)
|
|
—
|
|
||||
Treatment charges
|
0.17
|
|
|
0.17
|
|
|
0.16
|
|
|
0.16
|
|
||||
Unit net cash costs
|
1.43
|
|
|
1.59
|
|
|
1.50
|
|
|
1.65
|
|
||||
Depreciation, depletion and amortization
|
0.26
|
|
|
0.24
|
|
|
0.23
|
|
|
0.22
|
|
||||
Noncash and other costs, net
|
0.04
|
|
|
0.03
|
|
|
0.09
|
|
|
0.06
|
|
||||
Total unit costs
|
1.73
|
|
|
1.86
|
|
|
1.82
|
|
|
1.93
|
|
||||
Revenue adjustments, primarily for pricing on
|
|
|
|
|
|
|
|
||||||||
prior period open sales
|
(0.03
|
)
|
|
(0.03
|
)
|
|
0.09
|
|
|
0.09
|
|
||||
Gross profit per pound
|
$
|
1.54
|
|
|
$
|
1.41
|
|
|
$
|
1.85
|
|
|
$
|
1.74
|
|
|
|
|
|
|
|
|
|
||||||||
Copper sales (millions of recoverable pounds)
|
1,325
|
|
|
1,325
|
|
|
1,245
|
|
|
1,245
|
|
a.
|
Includes labor agreement costs totaling
$36 million
($0.03 per pound) at Cerro Verde in 2013 and $16 million ($0.01 per pound) at Candelaria in 2012.
|
|
2014
|
|
2013
|
|
2012
|
||||||
Operating Data, Net of Joint Venture Interest
|
|
|
|
|
|
||||||
Copper
(recoverable)
|
|
|
|
|
|
||||||
Production (millions of pounds)
|
636
|
|
|
915
|
|
|
695
|
|
|||
Sales (millions of pounds)
|
664
|
|
|
885
|
|
|
716
|
|
|||
Average realized price per pound
|
$
|
3.01
|
|
|
$
|
3.28
|
|
|
$
|
3.58
|
|
|
|
|
|
|
|
||||||
Gold
(recoverable)
|
|
|
|
|
|
||||||
Production (thousands of ounces)
|
1,130
|
|
|
1,142
|
|
|
862
|
|
|||
Sales (thousands of ounces)
|
1,168
|
|
|
1,096
|
|
|
915
|
|
|||
Average realized price per ounce
|
$
|
1,229
|
|
|
$
|
1,312
|
|
|
$
|
1,664
|
|
|
|
|
|
|
|
||||||
100% Operating Data
|
|
|
|
|
|
||||||
Ore milled (metric tons per day):
a
|
|
|
|
|
|
||||||
Grasberg open pit
|
69,100
|
|
|
127,700
|
|
|
118,800
|
|
|||
DOZ underground mine
b
|
50,500
|
|
|
49,400
|
|
|
44,600
|
|
|||
Big Gossan underground mine
c
|
900
|
|
|
2,100
|
|
|
1,600
|
|
|||
Total
|
120,500
|
|
|
179,200
|
|
|
165,000
|
|
|||
|
|
|
|
|
|
||||||
Average ore grade:
|
|
|
|
|
|
||||||
Copper (percent)
|
0.79
|
|
|
0.76
|
|
|
0.62
|
|
|||
Gold (grams per metric ton)
|
0.99
|
|
|
0.69
|
|
|
0.59
|
|
|||
Recovery rates (percent):
|
|
|
|
|
|
||||||
Copper
|
90.3
|
|
|
90.0
|
|
|
88.7
|
|
|||
Gold
|
83.2
|
|
|
80.0
|
|
|
75.7
|
|
|||
Production (recoverable):
|
|
|
|
|
|
||||||
Copper (millions of pounds)
|
651
|
|
|
928
|
|
|
695
|
|
|||
Gold (thousands of ounces)
|
1,132
|
|
|
1,142
|
|
|
862
|
|
a.
|
Amounts represent the approximate average daily throughput processed at PT-FI’s mill facilities from each producing mine.
|
b.
|
Ore milled from the DOZ underground mine is expected to ramp up to 70,000 metric tons of ore per day in the second half of 2015.
|
c.
|
Ore milled from the Big Gossan underground mine is expected to ramp up to 7,000 metric tons of ore per day in 2018.
|
|
2014
|
|
2013
|
||||||||||||||||||||
|
By-
Product
|
|
Co-Product Method
|
|
By-
Product |
|
Co-Product Method
|
||||||||||||||||
|
Method
|
|
Copper
|
|
Gold
|
|
Method
|
|
Copper
|
|
Gold
|
||||||||||||
Revenues, excluding adjustments
|
$
|
3.01
|
|
|
$
|
3.01
|
|
|
$
|
1,229
|
|
|
$
|
3.28
|
|
|
$
|
3.28
|
|
|
$
|
1,312
|
|
Site production and delivery, before net noncash
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
and other costs shown below
|
2.76
|
|
a
|
1.59
|
|
|
648
|
|
|
2.46
|
|
|
1.62
|
|
|
648
|
|
||||||
Gold and silver credits
|
(2.25
|
)
|
|
—
|
|
|
—
|
|
|
(1.69
|
)
|
|
—
|
|
|
—
|
|
||||||
Treatment charges
|
0.26
|
|
|
0.15
|
|
|
61
|
|
|
0.23
|
|
|
0.15
|
|
|
61
|
|
||||||
Export duties
|
0.12
|
|
|
0.06
|
|
|
27
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Royalty on metals
|
0.17
|
|
b
|
0.10
|
|
|
41
|
|
|
0.12
|
|
|
0.08
|
|
|
33
|
|
||||||
Unit net cash costs
|
1.06
|
|
|
1.90
|
|
|
777
|
|
|
1.12
|
|
|
1.85
|
|
|
742
|
|
||||||
Depreciation and amortization
|
0.40
|
|
|
0.23
|
|
|
94
|
|
|
0.28
|
|
|
0.19
|
|
|
73
|
|
||||||
Noncash and other costs, net
|
0.29
|
|
|
0.17
|
|
|
68
|
|
|
0.13
|
|
|
0.09
|
|
|
35
|
|
||||||
Total unit costs
|
1.75
|
|
|
2.30
|
|
|
939
|
|
|
1.53
|
|
|
2.13
|
|
|
850
|
|
||||||
Revenue adjustments, primarily for pricing on
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
prior period open sales
|
(0.08
|
)
|
|
(0.08
|
)
|
|
15
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
||||||
PT Smelting intercompany profit (loss)
|
0.05
|
|
|
0.03
|
|
|
12
|
|
|
(0.02
|
)
|
|
(0.01
|
)
|
|
(6
|
)
|
||||||
Gross profit per pound/ounce
|
$
|
1.23
|
|
|
$
|
0.66
|
|
|
$
|
317
|
|
|
$
|
1.73
|
|
|
$
|
1.14
|
|
|
$
|
455
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Copper sales (millions of recoverable pounds)
|
664
|
|
|
664
|
|
|
|
|
885
|
|
|
885
|
|
|
|
||||||||
Gold sales (thousands of recoverable ounces)
|
|
|
|
|
1,168
|
|
|
|
|
|
|
1,096
|
|
a.
|
Excludes fixed costs totaling $0.22 per pound of copper charged directly to cost of sales as a result of the impact of export restrictions on PT-FI's operating rates.
|
b.
|
Includes $0.05 per pound of copper associated with increased royalty rates.
|
|
2013
|
|
2012
|
||||||||||||||||||||
|
By-
Product |
|
Co-Product Method
|
|
By-
Product |
|
Co-Product Method
|
||||||||||||||||
|
Method
|
|
Copper
|
|
Gold
|
|
Method
|
|
Copper
|
|
Gold
|
||||||||||||
Revenues, excluding adjustments
|
$
|
3.28
|
|
|
$
|
3.28
|
|
|
$
|
1,312
|
|
|
$
|
3.58
|
|
|
$
|
3.58
|
|
|
$
|
1,664
|
|
Site production and delivery, before net noncash
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
and other costs shown below
|
2.46
|
|
|
1.62
|
|
|
648
|
|
|
3.12
|
|
|
1.93
|
|
|
894
|
|
||||||
Gold and silver credits
|
(1.69
|
)
|
|
—
|
|
|
—
|
|
|
(2.22
|
)
|
|
—
|
|
|
—
|
|
||||||
Treatment charges
|
0.23
|
|
|
0.15
|
|
|
61
|
|
|
0.21
|
|
|
0.13
|
|
|
61
|
|
||||||
Royalty on metals
|
0.12
|
|
|
0.08
|
|
|
33
|
|
|
0.13
|
|
|
0.08
|
|
|
38
|
|
||||||
Unit net cash costs
|
1.12
|
|
|
1.85
|
|
|
742
|
|
|
1.24
|
|
|
2.14
|
|
|
993
|
|
||||||
Depreciation and amortization
|
0.28
|
|
|
0.19
|
|
|
73
|
|
|
0.30
|
|
|
0.18
|
|
|
85
|
|
||||||
Noncash and other costs, net
|
0.13
|
|
|
0.09
|
|
|
35
|
|
|
0.11
|
|
|
0.07
|
|
|
33
|
|
||||||
Total unit costs
|
1.53
|
|
|
2.13
|
|
|
850
|
|
|
1.65
|
|
|
2.39
|
|
|
1,111
|
|
||||||
Revenue adjustments, primarily for pricing on
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
prior period open sales
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
0.02
|
|
|
0.02
|
|
|
3
|
|
||||||
PT Smelting intercompany loss
|
(0.02
|
)
|
|
(0.01
|
)
|
|
(6
|
)
|
|
(0.05
|
)
|
|
(0.03
|
)
|
|
(15
|
)
|
||||||
Gross profit per pound/ounce
|
$
|
1.73
|
|
|
$
|
1.14
|
|
|
$
|
455
|
|
|
$
|
1.90
|
|
|
$
|
1.18
|
|
|
$
|
541
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Copper sales (millions of recoverable pounds)
|
885
|
|
|
885
|
|
|
|
|
716
|
|
|
716
|
|
|
|
||||||||
Gold sales (thousands of recoverable ounces)
|
|
|
|
|
1,096
|
|
|
|
|
|
|
915
|
|
|
2014
|
|
2013
|
|
2012
|
|
||||||
Copper
(recoverable)
|
|
|
|
|
|
|
||||||
Production (millions of pounds)
|
447
|
|
|
462
|
|
|
348
|
|
|
|||
Sales (millions of pounds)
|
425
|
|
|
454
|
|
|
336
|
|
|
|||
Average realized price per pound
a
|
$
|
3.06
|
|
|
$
|
3.21
|
|
|
$
|
3.51
|
|
|
|
|
|
|
|
|
|
||||||
Cobalt
(contained)
|
|
|
|
|
|
|
||||||
Production (millions of pounds)
|
29
|
|
|
28
|
|
|
26
|
|
|
|||
Sales (millions of pounds)
|
30
|
|
|
25
|
|
|
25
|
|
|
|||
Average realized price per pound
|
$
|
9.66
|
|
|
$
|
8.02
|
|
|
$
|
7.83
|
|
|
|
|
|
|
|
|
|
||||||
Ore milled (metric tons per day)
|
14,700
|
|
|
14,900
|
|
|
13,000
|
|
|
|||
Average ore grade (percent):
|
|
|
|
|
|
|
||||||
Copper
|
4.06
|
|
|
4.22
|
|
|
3.62
|
|
|
|||
Cobalt
|
0.34
|
|
|
0.37
|
|
|
0.37
|
|
|
|||
Copper recovery rate (percent)
|
92.6
|
|
|
91.4
|
|
|
92.4
|
|
|
a.
|
Includes point-of-sale transportation costs as negotiated in customer contracts.
|
|
2014
|
|
2013
|
||||||||||||||||||||
|
By-Product
|
|
Co-Product Method
|
|
By-Product
|
|
Co-Product Method
|
||||||||||||||||
|
Method
|
|
Copper
|
|
Cobalt
|
|
Method
|
|
Copper
|
|
Cobalt
|
||||||||||||
Revenues, excluding adjustments
a
|
$
|
3.06
|
|
|
$
|
3.06
|
|
|
$
|
9.66
|
|
|
$
|
3.21
|
|
|
$
|
3.21
|
|
|
$
|
8.02
|
|
Site production and delivery, before net noncash
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
and other costs shown below
|
1.56
|
|
|
1.39
|
|
|
5.30
|
|
|
1.43
|
|
|
1.35
|
|
|
4.35
|
|
||||||
Cobalt credits
b
|
(0.48
|
)
|
|
—
|
|
|
—
|
|
|
(0.29
|
)
|
|
—
|
|
|
—
|
|
||||||
Royalty on metals
|
0.07
|
|
|
0.06
|
|
|
0.16
|
|
|
0.07
|
|
|
0.06
|
|
|
0.14
|
|
||||||
Unit net cash costs
|
1.15
|
|
|
1.45
|
|
|
5.46
|
|
|
1.21
|
|
|
1.41
|
|
|
4.49
|
|
||||||
Depreciation, depletion and amortization
|
0.54
|
|
|
0.46
|
|
|
1.13
|
|
|
0.54
|
|
|
0.48
|
|
|
1.00
|
|
||||||
Noncash and other costs, net
|
0.05
|
|
|
0.04
|
|
|
0.11
|
|
|
0.06
|
|
|
0.06
|
|
|
0.11
|
|
||||||
Total unit costs
|
1.74
|
|
|
1.95
|
|
|
6.70
|
|
|
1.81
|
|
|
1.95
|
|
|
5.60
|
|
||||||
Revenue adjustments, primarily for pricing on
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
prior period open sales
|
—
|
|
|
—
|
|
|
0.07
|
|
|
—
|
|
|
—
|
|
|
0.09
|
|
||||||
Gross profit per pound
|
$
|
1.32
|
|
|
$
|
1.11
|
|
|
$
|
3.03
|
|
|
$
|
1.40
|
|
|
$
|
1.26
|
|
|
$
|
2.51
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Copper sales (millions of recoverable pounds)
|
425
|
|
|
425
|
|
|
|
|
454
|
|
|
454
|
|
|
|
||||||||
Cobalt sales (millions of contained pounds)
|
|
|
|
|
30
|
|
|
|
|
|
|
25
|
|
a.
|
Includes point-of-sale transportation costs as negotiated in customer contracts.
|
b.
|
Net of cobalt downstream processing and freight costs.
|
|
2013
|
|
2012
|
||||||||||||||||||||
|
By-Product
|
|
Co-Product Method
|
|
By-Product
|
|
Co-Product Method
|
||||||||||||||||
|
Method
|
|
Copper
|
|
Cobalt
|
|
Method
|
|
Copper
|
|
Cobalt
|
||||||||||||
Revenues, excluding adjustments
a
|
$
|
3.21
|
|
|
$
|
3.21
|
|
|
$
|
8.02
|
|
|
$
|
3.51
|
|
|
$
|
3.51
|
|
|
$
|
7.83
|
|
Site production and delivery, before net noncash
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
and other costs shown below
|
1.43
|
|
|
1.35
|
|
|
4.35
|
|
|
1.49
|
|
|
1.39
|
|
|
4.86
|
|
||||||
Cobalt credits
b
|
(0.29
|
)
|
|
—
|
|
|
—
|
|
|
(0.33
|
)
|
|
—
|
|
|
—
|
|
||||||
Royalty on metals
|
0.07
|
|
|
0.06
|
|
|
0.14
|
|
|
0.07
|
|
|
0.06
|
|
|
0.12
|
|
||||||
Unit net cash costs
|
1.21
|
|
|
1.41
|
|
|
4.49
|
|
|
1.23
|
|
|
1.45
|
|
|
4.98
|
|
||||||
Depreciation, depletion and amortization
|
0.54
|
|
|
0.48
|
|
|
1.00
|
|
|
0.52
|
|
|
0.47
|
|
|
0.67
|
|
||||||
Noncash and other costs, net
|
0.06
|
|
|
0.06
|
|
|
0.11
|
|
|
0.09
|
|
|
0.08
|
|
|
0.11
|
|
||||||
Total unit costs
|
1.81
|
|
|
1.95
|
|
|
5.60
|
|
|
1.84
|
|
|
2.00
|
|
|
5.76
|
|
||||||
Revenue adjustments, primarily for pricing on
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
prior period open sales
|
—
|
|
|
—
|
|
|
0.09
|
|
|
0.02
|
|
|
0.02
|
|
|
0.09
|
|
||||||
Gross profit per pound
|
$
|
1.40
|
|
|
$
|
1.26
|
|
|
$
|
2.51
|
|
|
$
|
1.69
|
|
|
$
|
1.53
|
|
|
$
|
2.16
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Copper sales (millions of recoverable pounds)
|
454
|
|
|
454
|
|
|
|
|
336
|
|
|
336
|
|
|
|
||||||||
Cobalt sales (millions of contained pounds)
|
|
|
|
|
25
|
|
|
|
|
|
|
25
|
|
a.
|
Includes point-of-sale transportation costs as negotiated in customer contracts.
|
b.
|
Net of cobalt downstream processing and freight costs.
|
|
|
2014
a
|
|
2013
b
|
||||
Sales Volumes
|
|
|
|
|
||||
Oil (MMBbls)
|
|
40.1
|
|
|
26.6
|
|
||
Natural gas (Bcf)
|
|
80.8
|
|
|
54.2
|
|
||
NGLs (MMBbls)
|
|
3.2
|
|
|
2.4
|
|
||
MMBOE
|
|
56.8
|
|
|
38.1
|
|
||
|
|
|
|
|
||||
Average Realizations
c
|
|
|
|
|
||||
Oil (per barrel)
|
|
$
|
90.00
|
|
|
$
|
98.32
|
|
Natural gas
(per MMBtu)
|
|
$
|
4.23
|
|
|
$
|
3.99
|
|
NGLs (per barrel)
|
|
$
|
39.73
|
|
|
$
|
38.20
|
|
|
|
|
|
|
||||
Gross (Loss) Profit per BOE
|
|
|
|
|
||||
Realized revenues
c
|
|
$
|
71.83
|
|
|
$
|
76.87
|
|
Less: cash production costs
c
|
|
20.08
|
|
|
17.14
|
|
||
Cash operating margin
c
|
|
51.75
|
|
|
59.73
|
|
||
Less: depreciation, depletion and amortization
|
|
40.34
|
|
|
35.81
|
|
||
Less: impairment of oil and gas properties
|
|
65.80
|
|
|
—
|
|
||
Less: accretion and other costs
|
|
1.69
|
|
|
0.79
|
|
||
Plus: net noncash mark-to-market gains (losses) on derivative contracts
|
|
11.03
|
|
|
(8.20
|
)
|
||
Plus: other net adjustments
|
|
0.06
|
|
|
0.04
|
|
||
Gross (loss) profit
|
|
$
|
(44.99
|
)
|
|
$
|
14.97
|
|
a.
|
Includes results from Eagle Ford through June 19, 2014.
|
b.
|
Include the results of FM O&G beginning June 1, 2013.
|
c.
|
Cash operating margin for oil and gas operations reflects realized revenues less cash production costs. Realized revenues exclude noncash mark-to-market adjustments on derivative contracts, and cash production costs exclude accretion and other costs. For reconciliations of realized revenues (including average realizations for oil, natural gas and NGLs) and cash production costs to revenues and production and delivery costs reported in our consolidated financial statements, refer to the supplemental schedule, "Product Revenues and Production Costs."
|
|
|
2014
|
|
2013
a
|
||
Sales Volumes (MBOE per day):
|
|
|
|
|
||
GOM
b
|
|
73
|
|
|
72
|
|
California
|
|
39
|
|
|
39
|
|
Haynesville/Madden/Other
|
|
20
|
|
c
|
21
|
|
Eagle Ford
|
|
24
|
|
d
|
46
|
|
Total oil and gas operations
|
|
156
|
|
|
178
|
|
a.
|
Reflects the results of FM O&G beginning June 1, 2013.
|
b.
|
Includes sales from properties on the GOM Shelf and in the Deepwater GOM. Production from the GOM Shelf totaled 13 MBOE per day for
2014
(17 percent of the GOM total) and 13 MBOE per day (18 percent of the GOM total) for the seven-month period from June 1, 2013, to
December 31, 2013
.
|
c.
|
Results include volume adjustments related to Eagle Ford's pre-close sales.
|
d.
|
FM O&G completed the sale of Eagle Ford on June 20, 2014.
|
|
2014
|
|
2013
|
||||
Cash at domestic companies
|
$
|
78
|
|
|
$
|
410
|
|
Cash at international operations
|
386
|
|
|
1,575
|
|
||
Total consolidated cash and cash equivalents
|
464
|
|
|
1,985
|
|
||
Less: Noncontrolling interests’ share
|
(91
|
)
|
|
(602
|
)
|
||
Cash, net of noncontrolling interests’ share
|
373
|
|
|
1,383
|
|
||
Less: Withholding taxes and other
|
(16
|
)
|
|
(75
|
)
|
||
Net cash available
|
$
|
357
|
|
|
$
|
1,308
|
|
|
2014
|
|
2013
|
|
||||||||
|
|
|
Weighted-
|
|
|
|
Weighted-
|
|
||||
|
|
|
Average
|
|
|
|
Average
|
|
||||
|
|
|
Interest Rate
|
|
|
|
Interest Rate
|
|
||||
FCX Senior Notes
|
$
|
12.0
|
|
|
3.8%
|
|
$
|
9.5
|
|
|
3.6%
|
|
FM O&G Senior Notes
|
2.6
|
|
|
6.6%
|
|
6.7
|
|
|
6.8%
|
|
||
FCX Term Loan
|
3.1
|
|
|
1.7%
|
|
4.0
|
|
|
1.7%
|
|
||
Other FCX debt
|
1.3
|
|
|
3.3%
|
|
0.5
|
|
|
6.4%
|
|
||
Total debt
|
$
|
19.0
|
|
|
3.8%
|
|
$
|
20.7
|
|
|
4.2%
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
2015
|
|
2016 to
2017
|
|
2018 to
2019
|
|
Thereafter
|
||||||||||
Debt maturities
|
$
|
18,752
|
|
|
$
|
478
|
|
|
$
|
2,102
|
|
|
$
|
4,363
|
|
|
$
|
11,809
|
|
Scheduled interest payment obligations
a
|
7,720
|
|
|
704
|
|
|
1,382
|
|
|
1,186
|
|
|
4,448
|
|
|||||
ARO and environmental obligations
b
|
8,062
|
|
|
319
|
|
|
728
|
|
|
428
|
|
|
6,587
|
|
|||||
Take-or-pay contracts
c
|
4,273
|
|
|
2,128
|
|
|
1,711
|
|
|
230
|
|
|
204
|
|
|||||
Operating lease obligations
|
354
|
|
|
44
|
|
|
86
|
|
|
59
|
|
|
165
|
|
|||||
Total
d
|
$
|
39,161
|
|
|
$
|
3,673
|
|
|
$
|
6,009
|
|
|
$
|
6,266
|
|
|
$
|
23,213
|
|
a.
|
Scheduled interest payment obligations were calculated using stated coupon rates for fixed-rate debt and interest rates applicable at
December 31, 2014
, for variable-rate debt.
|
b.
|
Represents estimated cash payments, on an undiscounted and unescalated basis, associated with ARO and environmental activities (including $1.9 billion for our oil and gas operations). The timing and the amount of these payments could change as a result of changes in regulatory requirements, changes in scope and timing of ARO activities, the settlement of environmental matters and as actual spending occurs. Refer to Note
12
for additional discussion of environmental and ARO matters.
|
c.
|
Represents contractual obligations for purchases of goods or service agreements enforceable and legally binding and that specify all significant terms, including minimum commitments for deepwater drillships to be utilized in the GOM drilling campaign (
$1.8 billion
), transportation services (
$732 million
), the procurement of copper concentrates (
$572 million
), electricity (
$316 million
) and deferred premium costs and future interest on the crude oil derivative contracts (
$231 million
). Some of our take-or-pay contracts are settled based on the prevailing market rate for the service or commodity purchased, and in some cases, the amount of the actual obligation may change over time because of market conditions. Drillship obligations provide for an operating rate over the contractual term upon delivery of the drillship. Transportation obligations are primarily for South America contracted ocean freight and FM O&G contracted gathering. Obligations for copper concentrates provide for deliveries of specified volumes to Atlantic Copper at market-based prices. Electricity obligations are primarily for contractual minimum demand at the South America and Tenke mines.
|
d.
|
This table excludes certain other obligations in our consolidated balance sheets, such as estimated funding for pension obligations as the funding may vary from year to year based on changes in the fair value of plan assets and actuarial assumptions, commitments and contingencies totaling $191 million and unrecognized tax benefits totaling
$68 million
where the timing of settlement is not determinable, and other less significant amounts.This table also excludes purchase orders for the purchase of inventory and other goods and services, as purchase orders typically represent authorizations to purchase rather than binding agreements.
|
|
2014
|
|
2013
|
|
2012
|
|
||||||
Revenues
|
$
|
(118
|
)
|
|
$
|
(26
|
)
|
|
$
|
101
|
|
|
Net income attributable to common stockholders
|
$
|
(65
|
)
|
|
$
|
(12
|
)
|
|
$
|
43
|
|
|
Net income per share of common stockholders
|
$
|
(0.06
|
)
|
|
$
|
(0.01
|
)
|
|
$
|
0.05
|
|
|
|
2014
|
|
2013
a
|
||||
Revenues
|
$
|
627
|
|
|
$
|
(312
|
)
|
Net income to common stockholders
|
$
|
389
|
|
|
$
|
(194
|
)
|
Net income per share attributable to common stockholders
|
$
|
0.37
|
|
|
$
|
(0.19
|
)
|
a.
|
Reflects the seven-month period from June 1, 2013, to December 31, 2013.
|
|
Exchange Rate per $1
at December 31,
|
|
Estimated Annual Payments
|
|
10% Change in
Exchange Rate
(in millions)
a
|
|||||||||||||||||
|
2014
|
|
2013
|
|
2012
|
|
(in local currency)
|
|
(in millions)
b
|
|
Increase
|
|
Decrease
|
|||||||||
Indonesia
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Rupiah
|
12,378
|
|
|
12,128
|
|
|
9,622
|
|
|
7.6 trillion
|
|
$
|
614
|
|
|
$
|
(56
|
)
|
|
$
|
68
|
|
Australian dollar
|
1.22
|
|
|
1.12
|
|
|
0.93
|
|
|
225 million
|
|
$
|
185
|
|
|
$
|
(17
|
)
|
|
$
|
21
|
|
South America
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Chilean peso
|
607
|
|
|
525
|
|
|
480
|
|
|
170 billion
|
|
$
|
280
|
|
|
$
|
(25
|
)
|
|
$
|
31
|
|
Peruvian nuevo sol
|
2.99
|
|
|
2.80
|
|
|
2.55
|
|
|
600 million
|
|
$
|
201
|
|
|
$
|
(18
|
)
|
|
$
|
22
|
|
Atlantic Copper
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Euro
|
0.82
|
|
|
0.73
|
|
|
0.76
|
|
|
135 million
|
|
$
|
164
|
|
|
$
|
(15
|
)
|
|
$
|
18
|
|
a.
|
Reflects the estimated impact on annual operating costs assuming a 10 percent increase or decrease in the exchange rate reported at
December 31, 2014
.
|
b.
|
Based on
December 31, 2014
, exchange rates.
|
|
2015
|
|
2016
|
|
2017
|
|
2018
|
|
2019
|
|
Thereafter
|
|
Fair Value
|
||||||||||||||
Fixed-rate debt
|
$
|
4
|
|
|
$
|
1
|
|
|
$
|
1,251
|
|
|
$
|
1,501
|
|
|
$
|
237
|
|
|
$
|
11,702
|
|
|
$
|
14,679
|
|
Average interest rate
|
1.1
|
%
|
|
3.9
|
%
|
|
2.2
|
%
|
|
2.4
|
%
|
|
6.1
|
%
|
|
4.8
|
%
|
|
4.4
|
%
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Variable-rate debt
|
$
|
474
|
|
|
$
|
650
|
|
|
$
|
200
|
|
|
$
|
2,200
|
|
|
$
|
425
|
|
|
$
|
107
|
|
|
$
|
4,056
|
|
Average interest rate
|
1.3
|
%
|
|
1.7
|
%
|
|
1.7
|
%
|
|
1.7
|
%
|
|
2.1
|
%
|
|
3.9
|
%
|
|
1.7
|
%
|
a.
|
Reflects sales of molybdenum by certain of the North America copper mines to our molybdenum sales company at market-based pricing.
|
b.
|
Includes gold and silver product revenues and production costs
.
|
c.
|
Represents the combined total for all other mining operations and the related eliminations, as presented in Note
16
.
|
d.
|
Includes impairment of oil and gas properties of
$3.7 billion
.
|
a.
|
Reflects sales of molybdenum by certain of the North America copper mines to our molybdenum sales company at market-based pricing.
|
b.
|
Includes gold and silver product revenues and production costs.
|
c.
|
Includes $76 million ($0.05 per pound) associated with updated mine plans at Morenci that resulted in a loss in recoverable copper in leach stockpiles.
|
d.
|
Represents the combined total for all other mining operations and the related eliminations, as presented in Note
16
.
|
a.
|
Reflects sales of molybdenum by certain of the North America copper mines to our molybdenum sales company at market-based pricing.
|
b.
|
Includes gold and silver product revenues and production costs.
|
c.
|
Represents the combined total for all other mining operations and the related eliminations, as presented in Note
16
.
|
Year Ended December 31, 2014
|
|
|
|
|
|
|
|
||||||||
(In millions)
|
By-Product
|
|
Co-Product Method
|
||||||||||||
|
Method
|
|
Copper
|
|
Other
|
|
Total
|
||||||||
Revenues, excluding adjustments
|
$
|
3,498
|
|
|
$
|
3,498
|
|
|
$
|
269
|
|
a
|
$
|
3,767
|
|
Site production and delivery, before net noncash
|
|
|
|
|
|
|
|
||||||||
and other costs shown below
|
1,839
|
|
|
1,708
|
|
|
153
|
|
|
1,861
|
|
||||
By-product credits
|
(247
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Treatment charges
|
191
|
|
|
191
|
|
|
—
|
|
|
191
|
|
||||
Royalty on metals
|
6
|
|
|
5
|
|
|
1
|
|
|
6
|
|
||||
Net cash costs
|
1,789
|
|
|
1,904
|
|
|
154
|
|
|
2,058
|
|
||||
Depreciation, depletion and amortization
|
367
|
|
|
345
|
|
|
22
|
|
|
367
|
|
||||
Noncash and other costs, net
|
67
|
|
|
78
|
|
|
(11
|
)
|
|
67
|
|
||||
Total costs
|
2,223
|
|
|
2,327
|
|
|
165
|
|
|
2,492
|
|
||||
Revenue adjustments, primarily for pricing
on prior period open sales
|
(65
|
)
|
|
(65
|
)
|
|
—
|
|
|
(65
|
)
|
||||
Gross profit
|
$
|
1,210
|
|
|
$
|
1,106
|
|
|
$
|
104
|
|
|
$
|
1,210
|
|
|
|
|
|
|
|
|
|
||||||||
Copper sales (millions of recoverable pounds)
|
1,135
|
|
|
1,135
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
||||||||
Gross profit per pound of copper:
|
|
|
|
||||||||||||
|
|
|
|
|
|
|
|
||||||||
Revenues, excluding adjustments
|
$
|
3.08
|
|
|
$
|
3.08
|
|
|
|
|
|
||||
Site production and delivery, before net noncash
|
|
|
|
|
|
|
|
||||||||
and other costs shown below
|
1.62
|
|
|
1.50
|
|
|
|
|
|
||||||
By-product credits
|
(0.22
|
)
|
|
—
|
|
|
|
|
|
||||||
Treatment charges
|
0.17
|
|
|
0.17
|
|
|
|
|
|
||||||
Royalty on metals
|
0.01
|
|
|
0.01
|
|
|
|
|
|
||||||
Unit net cash costs
|
1.58
|
|
|
1.68
|
|
|
|
|
|
||||||
Depreciation, depletion and amortization
|
0.32
|
|
|
0.30
|
|
|
|
|
|
||||||
Noncash and other costs, net
|
0.06
|
|
|
0.07
|
|
|
|
|
|
||||||
Total unit costs
|
1.96
|
|
|
2.05
|
|
|
|
|
|
||||||
Revenue adjustments, primarily for pricing
|
|
|
|
|
|
|
|
||||||||
on prior period open sales
|
(0.05
|
)
|
|
(0.05
|
)
|
|
|
|
|
||||||
Gross profit per pound
|
$
|
1.07
|
|
|
$
|
0.98
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Reconciliation to Amounts Reported
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
Depreciation,
|
|
|
||||||||
|
|
|
Production
|
|
Depletion and
|
|
|
||||||||
(In millions)
|
Revenues
|
|
and Delivery
|
|
Amortization
|
|
|
||||||||
Totals presented above
|
$
|
3,767
|
|
|
$
|
1,861
|
|
|
$
|
367
|
|
|
|
||
Treatment charges
|
(191
|
)
|
|
—
|
|
|
—
|
|
|
|
|||||
Royalty on metals
|
(6
|
)
|
|
—
|
|
|
—
|
|
|
|
|||||
Noncash and other costs, net
|
—
|
|
|
67
|
|
|
—
|
|
|
|
|||||
Revenue adjustments, primarily for pricing
on prior period open sales
|
(65
|
)
|
|
—
|
|
|
—
|
|
|
|
|||||
Eliminations and other
|
27
|
|
|
11
|
|
|
—
|
|
|
|
|||||
South America mining
|
3,532
|
|
|
1,939
|
|
|
367
|
|
|
|
|||||
Other mining & eliminations
b
|
13,196
|
|
|
8,726
|
|
|
1,191
|
|
|
|
|||||
Total mining
|
16,728
|
|
|
10,665
|
|
|
1,558
|
|
|
|
|||||
U.S. oil & gas operations
|
4,710
|
|
|
1,237
|
|
|
6,028
|
|
c
|
|
|||||
Corporate, other & eliminations
|
—
|
|
|
2
|
|
|
14
|
|
|
|
|||||
As reported in FCX’s consolidated financial statements
|
$
|
21,438
|
|
|
$
|
11,904
|
|
|
$
|
7,600
|
|
c
|
|
a.
|
Includes gold sales of
67 thousand
ounces (
$1,271
per ounce average realized price) and silver sales of
2.9 million
ounces (
$18.54
per ounce average realized price). Also reflects sales of molybdenum produced by Cerro Verde to our molybdenum sales company at market-based pricing.
|
b.
|
Represents the combined total for all other mining operations and the related eliminations, as presented in Note
16
.
|
c.
|
Includes impairment of oil and gas properties of
$3.7 billion
.
|
Year Ended December 31, 2013
|
|
|
|
|
|
|
|
||||||||
(In millions)
|
By-Product
|
|
Co-Product Method
|
||||||||||||
|
Method
|
|
Copper
|
|
Other
|
|
Total
|
||||||||
Revenues, excluding adjustments
|
$
|
4,366
|
|
|
$
|
4,366
|
|
|
$
|
374
|
|
a
|
$
|
4,740
|
|
Site production and delivery, before net noncash
|
|
|
|
|
|
|
|
||||||||
and other costs shown below
|
2,023
|
|
b
|
1,875
|
|
|
170
|
|
|
2,045
|
|
||||
By-product credits
|
(352
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Treatment charges
|
226
|
|
|
226
|
|
|
—
|
|
|
226
|
|
||||
Net cash costs
|
1,897
|
|
|
2,101
|
|
|
170
|
|
|
2,271
|
|
||||
Depreciation, depletion and amortization
|
346
|
|
|
323
|
|
|
23
|
|
|
346
|
|
||||
Noncash and other costs, net
|
49
|
|
|
44
|
|
|
5
|
|
|
49
|
|
||||
Total costs
|
2,292
|
|
|
2,468
|
|
|
198
|
|
|
2,666
|
|
||||
Revenue adjustments, primarily for pricing on prior period open sales
|
(28
|
)
|
|
(28
|
)
|
|
—
|
|
|
(28
|
)
|
||||
Gross profit
|
$
|
2,046
|
|
|
$
|
1,870
|
|
|
$
|
176
|
|
|
$
|
2,046
|
|
|
|
|
|
|
|
|
|
||||||||
Copper sales (millions of recoverable pounds)
|
1,325
|
|
|
1,325
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
||||||||
Gross profit per pound of copper:
|
|
|
|
||||||||||||
|
|
|
|
|
|
|
|
||||||||
Revenues, excluding adjustments
|
$
|
3.30
|
|
|
$
|
3.30
|
|
|
|
|
|
||||
Site production and delivery, before net noncash
|
|
|
|
|
|
|
|
||||||||
and other costs shown below
|
1.53
|
|
b
|
1.42
|
|
|
|
|
|
||||||
By-product credits
|
(0.27
|
)
|
|
—
|
|
|
|
|
|
||||||
Treatment charges
|
0.17
|
|
|
0.17
|
|
|
|
|
|
||||||
Unit net cash costs
|
1.43
|
|
|
1.59
|
|
|
|
|
|
||||||
Depreciation, depletion and amortization
|
0.26
|
|
|
0.24
|
|
|
|
|
|
||||||
Noncash and other costs, net
|
0.04
|
|
|
0.03
|
|
|
|
|
|
||||||
Total unit costs
|
1.73
|
|
|
1.86
|
|
|
|
|
|
||||||
Revenue adjustments, primarily for pricing
|
|
|
|
|
|
|
|
||||||||
on prior period open sales
|
(0.03
|
)
|
|
(0.03
|
)
|
|
|
|
|
||||||
Gross profit per pound
|
$
|
1.54
|
|
|
$
|
1.41
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Reconciliation to Amounts Reported
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
Depreciation,
|
|
|
||||||||
|
|
|
Production
|
|
Depletion and
|
|
|
||||||||
(In millions)
|
Revenues
|
|
and Delivery
|
|
Amortization
|
|
|
||||||||
Totals presented above
|
$
|
4,740
|
|
|
$
|
2,045
|
|
|
$
|
346
|
|
|
|
||
Treatment charges
|
(226
|
)
|
|
—
|
|
|
—
|
|
|
|
|||||
Noncash and other costs, net
|
—
|
|
|
49
|
|
|
—
|
|
|
|
|||||
Revenue adjustments, primarily for pricing on prior period open sales
|
(28
|
)
|
|
—
|
|
|
—
|
|
|
|
|||||
Eliminations and other
|
(1
|
)
|
|
(25
|
)
|
|
—
|
|
|
|
|||||
South America mining
|
4,485
|
|
|
2,069
|
|
|
346
|
|
|
|
|||||
Other mining & eliminations
c
|
13,816
|
|
|
9,082
|
|
|
1,076
|
|
|
|
|||||
Total mining
|
18,301
|
|
|
11,151
|
|
|
1,422
|
|
|
|
|||||
U.S. oil & gas operations
|
2,616
|
|
|
682
|
|
|
1,364
|
|
|
|
|||||
Corporate, other & eliminations
|
4
|
|
|
7
|
|
|
11
|
|
|
|
|||||
As reported in FCX’s consolidated financial statements
|
$
|
20,921
|
|
|
$
|
11,840
|
|
|
$
|
2,797
|
|
|
|
a.
|
Includes gold sales of
102 thousand
ounces (
$1,350
per ounce average realized price) and silver sales of
4.1 million
ounces (
$21.88
per ounce average realized price). Also reflects sales of molybdenum produced by Cerro Verde to our molybdenum sales company at market-based pricing.
|
b.
|
Includes
$36 million
($0.03 per pound) associated with labor agreement costs at Cerro Verde.
|
c.
|
Represents the combined total for all other mining operations and the related eliminations, as presented in Note
16
.
|
Year Ended December 31, 2012
|
|
|
|
|
|
|
|
||||||||
(In millions)
|
By-Product
|
|
Co-Product Method
|
||||||||||||
|
Method
|
|
Copper
|
|
Other
|
|
Total
|
||||||||
Revenues, excluding adjustments
|
$
|
4,462
|
|
|
$
|
4,462
|
|
|
$
|
355
|
|
a
|
$
|
4,817
|
|
Site production and delivery, before net noncash
|
|
|
|
|
|
|
|
||||||||
and other costs shown below
|
1,995
|
|
b
|
1,846
|
|
|
173
|
|
|
2,019
|
|
||||
By-product credits
|
(331
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Treatment charges
|
202
|
|
|
202
|
|
|
—
|
|
|
202
|
|
||||
Net cash costs
|
1,866
|
|
|
2,048
|
|
|
173
|
|
|
2,221
|
|
||||
Depreciation, depletion and amortization
|
287
|
|
|
272
|
|
|
15
|
|
|
287
|
|
||||
Noncash and other costs, net
|
110
|
|
|
75
|
|
|
35
|
|
|
110
|
|
||||
Total costs
|
2,263
|
|
|
2,395
|
|
|
223
|
|
|
2,618
|
|
||||
Revenue adjustments, primarily for pricing on prior period open sales
|
106
|
|
|
106
|
|
|
—
|
|
|
106
|
|
||||
Gross profit
|
$
|
2,305
|
|
|
$
|
2,173
|
|
|
$
|
132
|
|
|
$
|
2,305
|
|
|
|
|
|
|
|
|
|
||||||||
Copper sales (millions of recoverable pounds)
|
1,245
|
|
|
1,245
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
||||||||
Gross profit per pound of copper:
|
|
|
|
||||||||||||
|
|
|
|
|
|
|
|
||||||||
Revenues, excluding adjustments
|
$
|
3.58
|
|
|
$
|
3.58
|
|
|
|
|
|
||||
Site production and delivery, before net noncash
|
|
|
|
|
|
|
|
||||||||
and other costs shown below
|
1.60
|
|
b
|
1.49
|
|
|
|
|
|
||||||
By-product credits
|
(0.26
|
)
|
|
—
|
|
|
|
|
|
||||||
Treatment charges
|
0.16
|
|
|
0.16
|
|
|
|
|
|
||||||
Unit net cash costs
|
1.50
|
|
|
1.65
|
|
|
|
|
|
||||||
Depreciation, depletion and amortization
|
0.23
|
|
|
0.22
|
|
|
|
|
|
||||||
Noncash and other costs, net
|
0.09
|
|
|
0.06
|
|
|
|
|
|
||||||
Total unit costs
|
1.82
|
|
|
1.93
|
|
|
|
|
|
||||||
Revenue adjustments, primarily for pricing
|
|
|
|
|
|
|
|
||||||||
on prior period open sales
|
0.09
|
|
|
0.09
|
|
|
|
|
|
||||||
Gross profit per pound
|
$
|
1.85
|
|
|
$
|
1.74
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Reconciliation to Amounts Reported
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
Depreciation,
|
|
|
||||||||
|
|
|
Production
|
|
Depletion and
|
|
|
||||||||
(In millions)
|
Revenues
|
|
and Delivery
|
|
Amortization
|
|
|
||||||||
Totals presented above
|
$
|
4,817
|
|
|
$
|
2,019
|
|
|
$
|
287
|
|
|
|
||
Treatment charges
|
(202
|
)
|
|
—
|
|
|
—
|
|
|
|
|||||
Noncash and other costs, net
|
—
|
|
|
110
|
|
|
—
|
|
|
|
|||||
Revenue adjustments, primarily for pricing on prior period open sales
|
106
|
|
|
—
|
|
|
—
|
|
|
|
|||||
Eliminations and other
|
7
|
|
|
(15
|
)
|
|
—
|
|
|
|
|||||
South America mining
|
4,728
|
|
|
2,114
|
|
|
287
|
|
|
|
|||||
Other mining & eliminations
c
|
13,275
|
|
|
8,265
|
|
|
885
|
|
|
|
|||||
Total mining
|
18,003
|
|
|
10,379
|
|
|
1,172
|
|
|
|
|||||
U.S. oil & gas operations
|
—
|
|
|
—
|
|
|
—
|
|
|
|
|||||
Corporate, other & eliminations
|
7
|
|
|
3
|
|
|
7
|
|
|
|
|||||
As reported in FCX’s consolidated financial statements
|
$
|
18,010
|
|
|
$
|
10,382
|
|
|
$
|
1,179
|
|
|
|
a.
|
Includes gold sales of
82 thousand
ounces (
$1,673
per ounce average realized price) and silver sales of
3.2 million
ounces (
$30.33
per ounce average realized price). Also reflects sales of molybdenum produced by Cerro Verde to our molybdenum sales company at market-based pricing.
|
b.
|
Includes
$16 million
($0.01 per pound) associated with labor agreement costs at Candelaria.
|
c.
|
Represents the combined total for all other mining operations and the related eliminations, as presented in Note
16
.
|
b.
|
Includes $143 million ($0.22 per pound) of fixed costs charged directly to cost of sales as a result of the impact of export restrictions on PT-FI's operating rates.
|
c.
|
Represents the combined total for all other mining operations and the related eliminations, as presented in Note
16
.
|
a.
|
Includes silver sales of
2.9 million
ounces (
$21.32
per ounce average realized price).
|
b.
|
Represents the combined total for all other mining operations and the related eliminations, as presented in Note
16
.
|
a.
|
Includes silver sales of
2.1 million
ounces (
$30.70
per ounce average realized price).
|
b.
|
Represents the combined total for all other mining operations and the related eliminations, as presented in Note
16
.
|
a.
|
Includes point-of-sale transportation costs as negotiated in customer contracts.
|
b.
|
Net of cobalt downstream processing and freight costs.
|
c.
|
Represents the combined total for all other mining operations and the related eliminations, as presented in Note
16
.
|
d.
|
Includes impairment of oil and gas properties of
$3.7 billion
.
|
a.
|
Includes point-of-sale transportation costs as negotiated in customer contracts.
|
b.
|
Net of cobalt downstream processing and freight costs.
|
c.
|
Represents the combined total for all other mining operations and the related eliminations, as presented in Note
16
.
|
a.
|
Includes point-of-sale transportation costs as negotiated in customer contracts.
|
b.
|
Net of cobalt downstream processing and freight costs.
|
c.
|
Represents the combined total for all other mining operations and the related eliminations, as presented in Note
16
.
|
|
|
|
|
|
|
|
|
|
||||||||
Year Ended December 31, 2014
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
Total
|
|
||||||||
|
|
|
Natural
|
|
|
|
U.S. Oil
|
|
||||||||
(In millions)
|
Oil
|
|
Gas
|
|
NGLs
|
|
& Gas
|
|
||||||||
Oil and gas revenues before derivatives
|
$
|
3,721
|
|
|
$
|
353
|
|
|
$
|
128
|
|
|
$
|
4,202
|
|
|
Realized cash losses on derivative contracts
|
(111
|
)
|
|
(11
|
)
|
|
—
|
|
|
(122
|
)
|
|
||||
Realized revenues
|
$
|
3,610
|
|
|
$
|
342
|
|
|
$
|
128
|
|
|
4,080
|
|
|
|
Less: cash production costs
|
|
|
|
|
|
|
1,140
|
|
|
|||||||
Cash operating margin
|
|
|
|
|
|
|
2,940
|
|
|
|||||||
Less: depreciation, depletion and amortization
|
|
|
|
|
|
|
2,291
|
|
|
|||||||
Less: impairment of oil and gas properties
|
|
|
|
|
|
|
3,737
|
|
|
|||||||
Less: accretion and other costs
|
|
|
|
|
|
|
97
|
|
|
|||||||
Plus: net noncash mark-to-market gains on derivative contracts
|
|
|
|
|
|
|
627
|
|
|
|||||||
Plus: other net adjustments
|
|
|
|
|
|
|
3
|
|
|
|||||||
Gross loss
|
|
|
|
|
|
|
$
|
(2,555
|
)
|
|
||||||
|
|
|
|
|
|
|
|
|
||||||||
Oil (MMBbls)
|
40.1
|
|
|
|
|
|
|
|
|
|||||||
Gas (Bcf)
|
|
|
80.8
|
|
|
|
|
|
|
|||||||
NGLs (MMBbls)
|
|
|
|
|
3.2
|
|
|
|
|
|||||||
Oil Equivalents (MMBOE)
|
|
|
|
|
|
|
56.8
|
|
|
|||||||
|
|
|
|
|
|
|
|
|
||||||||
|
Oil
|
|
Natural Gas
|
|
NGLs
|
|
|
|
||||||||
|
(per barrel)
|
|
(per MMBtu)
|
|
(per barrel)
|
|
Per BOE
|
|
||||||||
Oil and gas revenues before derivatives
|
$
|
92.76
|
|
|
$
|
4.37
|
|
|
$
|
39.73
|
|
|
$
|
73.98
|
|
|
Realized cash losses on derivative contracts
|
(2.76
|
)
|
|
(0.14
|
)
|
|
—
|
|
|
(2.15
|
)
|
|
||||
Realized revenues
|
$
|
90.00
|
|
|
$
|
4.23
|
|
|
$
|
39.73
|
|
|
71.83
|
|
|
|
Less: cash production costs
|
|
|
|
|
|
|
20.08
|
|
|
|||||||
Cash operating margin
|
|
|
|
|
|
|
51.75
|
|
|
|||||||
Less: depreciation, depletion and amortization
|
|
|
|
|
|
|
40.34
|
|
|
|||||||
Less: impairment of oil and gas properties
|
|
|
|
|
|
|
65.80
|
|
|
|||||||
Less: accretion and other costs
|
|
|
|
|
|
|
1.69
|
|
|
|||||||
Plus: net noncash mark-to-market gains on derivative contracts
|
|
|
|
|
|
|
11.03
|
|
|
|||||||
Plus: other net adjustments
|
|
|
|
|
|
|
0.06
|
|
|
|||||||
Gross loss
|
|
|
|
|
|
|
$
|
(44.99
|
)
|
|
||||||
|
|
|
|
|
|
|
|
|
||||||||
Reconciliation to Amounts Reported
|
|
|||||||||||||||
(In millions)
|
Revenues
|
|
Production and Delivery
|
|
Depreciation, Depletion and Amortization
|
|
|
|
||||||||
Totals presented above
|
$
|
4,202
|
|
|
$
|
1,140
|
|
|
$
|
2,291
|
|
|
|
|
||
Realized cash losses on derivative contracts
|
(122
|
)
|
|
—
|
|
|
—
|
|
|
|
|
|||||
Net noncash mark-to-market gains on derivative contracts
|
627
|
|
|
—
|
|
|
—
|
|
|
|
|
|||||
Accretion and other costs
|
—
|
|
|
97
|
|
|
—
|
|
|
|
|
|||||
Impairment of oil and gas properties
|
—
|
|
|
—
|
|
|
3,737
|
|
|
|
|
|||||
Other net adjustments
|
3
|
|
|
—
|
|
|
—
|
|
|
|
|
|||||
U.S. oil & gas operations
|
4,710
|
|
|
1,237
|
|
|
6,028
|
|
|
|
|
|||||
Total mining
a
|
16,728
|
|
|
10,665
|
|
|
1,558
|
|
|
|
|
|||||
Corporate, other & eliminations
|
—
|
|
|
2
|
|
|
14
|
|
|
|
|
|||||
As reported in FCX's consolidated financial statements
|
$
|
21,438
|
|
|
$
|
11,904
|
|
|
$
|
7,600
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
Seven months from June 1, 2013, to December 31, 2013
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
Total
|
|
||||||||
(In millions)
|
Oil
|
|
Natural Gas
|
|
NGLs
|
|
U.S.Oil
& Gas
|
|
||||||||
Oil and gas revenues before derivatives
|
$
|
2,655
|
|
|
$
|
202
|
|
|
$
|
92
|
|
|
$
|
2,949
|
|
|
Realized cash (losses) gains on derivative contracts
|
(36
|
)
|
|
14
|
|
|
—
|
|
|
(22
|
)
|
|
||||
Realized revenues
|
$
|
2,619
|
|
|
$
|
216
|
|
|
$
|
92
|
|
|
2,927
|
|
|
|
Less: cash production costs
|
|
|
|
|
|
|
653
|
|
|
|||||||
Cash operating margin
|
|
|
|
|
|
|
2,274
|
|
|
|||||||
Less: depreciation, depletion and amortization
|
|
|
|
|
|
|
1,364
|
|
|
|||||||
Less: accretion and other costs
|
|
|
|
|
|
|
29
|
|
|
|||||||
Plus: net noncash mark-to-market losses on derivative contracts
|
|
|
|
|
|
|
(312
|
)
|
|
|||||||
Plus: other net adjustments
|
|
|
|
|
|
|
1
|
|
|
|||||||
Gross profit
|
|
|
|
|
|
|
$
|
570
|
|
|
||||||
|
|
|
|
|
|
|
|
|
||||||||
Oil (MMBbls)
|
26.6
|
|
|
|
|
|
|
|
|
|||||||
Gas (Bcf)
|
|
|
54.2
|
|
|
|
|
|
|
|||||||
NGLs (MMBbls)
|
|
|
|
|
2.4
|
|
|
|
|
|||||||
Oil Equivalents (MMBOE)
|
|
|
|
|
|
|
38.1
|
|
|
|||||||
|
|
|
|
|
|
|
|
|
||||||||
|
Oil
|
|
Natural Gas
|
|
NGLs
|
|
|
|
||||||||
|
(per barrel)
|
|
(per MMbtu)
|
|
(per barrel)
|
|
Per BOE
|
|
||||||||
Oil and gas revenues before derivatives
|
$
|
99.67
|
|
|
$
|
3.73
|
|
|
$
|
38.20
|
|
|
$
|
77.45
|
|
|
Realized cash (losses) gains on derivative contracts
|
(1.35
|
)
|
|
0.26
|
|
|
—
|
|
|
(0.58
|
)
|
|
||||
Realized revenues
|
$
|
98.32
|
|
|
$
|
3.99
|
|
|
$
|
38.20
|
|
|
76.87
|
|
|
|
Less: cash production costs
|
|
|
|
|
|
|
17.14
|
|
|
|||||||
Cash operating margin
|
|
|
|
|
|
|
59.73
|
|
|
|||||||
Less: depreciation, depletion and amortization
|
|
|
|
|
|
|
35.81
|
|
|
|||||||
Less: accretion and other costs
|
|
|
|
|
|
|
0.79
|
|
|
|||||||
Plus: net noncash mark-to-market losses on derivative contracts
|
|
|
|
|
|
|
(8.20
|
)
|
|
|||||||
Plus: other net adjustments
|
|
|
|
|
|
|
0.04
|
|
|
|||||||
Gross profit
|
|
|
|
|
|
|
$
|
14.97
|
|
|
||||||
|
|
|
|
|
|
|
|
|
||||||||
Reconciliation to Amounts Reported
|
||||||||||||||||
(In millions)
|
Revenues
|
|
Production and Delivery
|
|
Depreciation, Depletion and Amortization
|
|
|
|
||||||||
Totals presented above
|
$
|
2,949
|
|
|
$
|
653
|
|
|
$
|
1,364
|
|
|
|
|
||
Realized cash losses on derivative contracts
|
(22
|
)
|
|
—
|
|
|
—
|
|
|
|
|
|||||
Net noncash mark-to-market losses on derivative contracts
|
(312
|
)
|
|
—
|
|
|
—
|
|
|
|
|
|||||
Accretion and other costs
|
—
|
|
|
29
|
|
|
—
|
|
|
|
|
|||||
Other net adjustments
|
1
|
|
|
—
|
|
|
—
|
|
|
|
|
|||||
U.S. oil & gas operations
|
2,616
|
|
|
682
|
|
|
1,364
|
|
|
|
|
|||||
Total mining
a
|
18,301
|
|
|
11,151
|
|
|
1,422
|
|
|
|
|
|||||
Corporate, other & eliminations
|
4
|
|
|
7
|
|
|
11
|
|
|
|
|
|||||
As reported in FCX's consolidated financial statements
|
$
|
20,921
|
|
|
$
|
11,840
|
|
|
$
|
2,797
|
|
|
|
|
a.
|
Represents the combined total for all mining operations and the related eliminations, as presented in Note
16
.
|
•
|
Pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of the Company’s assets;
|
•
|
Provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the Company are being made only in accordance with authorizations of management and directors of the Company; and
|
•
|
Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the Company’s assets that could have a material effect on the financial statements.
|
/s/ Richard C. Adkerson
|
|
/s/ Kathleen L. Quirk
|
Richard C. Adkerson
|
|
Kathleen L. Quirk
|
Vice Chairman of the Board,
|
|
Executive Vice President,
|
President and Chief Executive Officer
|
|
Chief Financial Officer and Treasurer
|
|
Years Ended December 31,
|
||||||||||
|
2014
|
|
2013
|
|
2012
|
||||||
|
(In millions, except per share amounts)
|
||||||||||
Revenues
|
$
|
21,438
|
|
|
$
|
20,921
|
|
|
$
|
18,010
|
|
Cost of sales:
|
|
|
|
|
|
||||||
Production and delivery
|
11,904
|
|
|
11,840
|
|
|
10,382
|
|
|||
Depreciation, depletion and amortization
|
3,863
|
|
|
2,797
|
|
|
1,179
|
|
|||
Impairment of oil and gas properties
|
3,737
|
|
|
—
|
|
|
—
|
|
|||
Total cost of sales
|
19,504
|
|
|
14,637
|
|
|
11,561
|
|
|||
Selling, general and administrative expenses
|
592
|
|
|
657
|
|
|
431
|
|
|||
Mining exploration and research expenses
|
126
|
|
|
210
|
|
|
285
|
|
|||
Environmental obligations and shutdown costs
|
119
|
|
|
66
|
|
|
(22
|
)
|
|||
Goodwill impairment
|
1,717
|
|
|
—
|
|
|
—
|
|
|||
Net gain on sales of assets
|
(717
|
)
|
|
—
|
|
|
—
|
|
|||
Gain on insurance settlement
|
—
|
|
|
—
|
|
|
(59
|
)
|
|||
Total costs and expenses
|
21,341
|
|
|
15,570
|
|
|
12,196
|
|
|||
Operating income
|
97
|
|
|
5,351
|
|
|
5,814
|
|
|||
Interest expense, net
|
(630
|
)
|
|
(518
|
)
|
|
(186
|
)
|
|||
Net gain (loss) on early extinguishment of debt
|
73
|
|
|
(35
|
)
|
|
(168
|
)
|
|||
Gain on investment in McMoRan Exploration Co. (MMR)
|
—
|
|
|
128
|
|
|
—
|
|
|||
Other income (expense), net
|
36
|
|
|
(13
|
)
|
|
27
|
|
|||
(Loss) income before income taxes and equity in affiliated companies' net earnings
|
(424
|
)
|
|
4,913
|
|
|
5,487
|
|
|||
Provision for income taxes
|
(324
|
)
|
|
(1,475
|
)
|
|
(1,510
|
)
|
|||
Equity in affiliated companies’ net earnings
|
3
|
|
|
3
|
|
|
3
|
|
|||
Net (loss) income
|
(745
|
)
|
|
3,441
|
|
|
3,980
|
|
|||
Net income attributable to noncontrolling interests
|
(523
|
)
|
|
(761
|
)
|
|
(939
|
)
|
|||
Preferred dividends attributable to redeemable noncontrolling interest
|
(40
|
)
|
|
(22
|
)
|
|
—
|
|
|||
Net (loss) income attributable to FCX common stockholders
|
$
|
(1,308
|
)
|
|
$
|
2,658
|
|
|
$
|
3,041
|
|
|
|
|
|
|
|
||||||
Net (loss) income per share attributable to FCX common stockholders:
|
|
|
|
|
|
||||||
Basic
|
$
|
(1.26
|
)
|
|
$
|
2.65
|
|
|
$
|
3.20
|
|
Diluted
|
$
|
(1.26
|
)
|
|
$
|
2.64
|
|
|
$
|
3.19
|
|
|
|
|
|
|
|
||||||
Weighted-average common shares outstanding:
|
|
|
|
|
|
||||||
Basic
|
1,039
|
|
|
1,002
|
|
|
949
|
|
|||
Diluted
|
1,039
|
|
|
1,006
|
|
|
954
|
|
|||
|
|
|
|
|
|
||||||
Dividends declared per share of common stock
|
$
|
1.25
|
|
|
$
|
2.25
|
|
|
$
|
1.25
|
|
|
Years Ended December 31,
|
||||||||||
|
2014
|
|
2013
|
|
2012
|
||||||
|
(In millions)
|
||||||||||
Net (loss) income
|
$
|
(745
|
)
|
|
$
|
3,441
|
|
|
$
|
3,980
|
|
|
|
|
|
|
|
||||||
Other comprehensive (loss) income, net of taxes:
|
|
|
|
|
|
||||||
Defined benefit plans:
|
|
|
|
|
|
||||||
Actuarial (losses) gains arising during the period
|
(161
|
)
|
|
73
|
|
|
(69
|
)
|
|||
Prior service costs arising during the period
|
—
|
|
|
(21
|
)
|
|
—
|
|
|||
Amortization of unrecognized amounts included in net periodic benefit costs
|
25
|
|
|
30
|
|
|
26
|
|
|||
Foreign exchange gains
|
1
|
|
|
12
|
|
|
3
|
|
|||
Adjustment to deferred tax valuation allowance
|
(5
|
)
|
|
—
|
|
|
(1
|
)
|
|||
Translation adjustments and unrealized losses on securities
|
(1
|
)
|
|
4
|
|
|
(1
|
)
|
|||
Other comprehensive (loss) income
|
(141
|
)
|
|
98
|
|
|
(42
|
)
|
|||
|
|
|
|
|
|
||||||
Total comprehensive (loss) income
|
(886
|
)
|
|
3,539
|
|
|
3,938
|
|
|||
Total comprehensive income attributable to noncontrolling interests
|
(521
|
)
|
|
(758
|
)
|
|
(938
|
)
|
|||
Preferred dividends attributable to redeemable noncontrolling interest
|
(40
|
)
|
|
(22
|
)
|
|
—
|
|
|||
Total comprehensive (loss) income attributable to FCX common stockholders
|
$
|
(1,447
|
)
|
|
$
|
2,759
|
|
|
$
|
3,000
|
|
|
|
Years Ended December 31,
|
||||||||||
|
|
2014
|
|
2013
|
|
2012
|
||||||
|
|
(In millions)
|
||||||||||
Cash flow from operating activities:
|
|
|
|
|
|
|
||||||
Net (loss) income
|
|
$
|
(745
|
)
|
|
$
|
3,441
|
|
|
$
|
3,980
|
|
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
|
|
|
|
|
|
|
||||||
Depreciation, depletion and amortization
|
|
3,863
|
|
|
2,797
|
|
|
1,179
|
|
|||
Impairment of oil and gas properties and goodwill
|
|
5,454
|
|
|
—
|
|
|
—
|
|
|||
Net (gains) losses on crude oil and natural gas derivative contracts
|
|
(504
|
)
|
|
334
|
|
|
—
|
|
|||
Gain on investment in MMR
|
|
—
|
|
|
(128
|
)
|
|
—
|
|
|||
Stock-based compensation
|
|
106
|
|
|
173
|
|
|
100
|
|
|||
Net charges for environmental and asset retirement obligations, including accretion
|
|
200
|
|
|
164
|
|
|
22
|
|
|||
Payments for environmental and asset retirement obligations
|
|
(176
|
)
|
|
(237
|
)
|
|
(246
|
)
|
|||
Net (gain) loss on early extinguishment of debt
|
|
(73
|
)
|
|
35
|
|
|
168
|
|
|||
Net gain on sales of assets
|
|
(717
|
)
|
|
—
|
|
|
—
|
|
|||
Deferred income taxes
|
|
(929
|
)
|
|
277
|
|
|
269
|
|
|||
Increase in long-term mill and leach stockpiles
|
|
(233
|
)
|
|
(431
|
)
|
|
(269
|
)
|
|||
Other, net
|
|
17
|
|
|
91
|
|
|
(12
|
)
|
|||
Decreases (increases) in working capital and changes in other tax payments, excluding amounts from acquisitions and dispositions:
|
|
|
|
|
|
|
||||||
Accounts receivable
|
|
215
|
|
|
49
|
|
|
(365
|
)
|
|||
Inventories
|
|
(249
|
)
|
|
(288
|
)
|
|
(729
|
)
|
|||
Other current assets
|
|
—
|
|
|
26
|
|
|
(76
|
)
|
|||
Accounts payable and accrued liabilities
|
|
(394
|
)
|
|
(359
|
)
|
|
209
|
|
|||
Accrued income taxes and changes in other tax payments
|
|
(204
|
)
|
|
195
|
|
|
(456
|
)
|
|||
Net cash provided by operating activities
|
|
5,631
|
|
|
6,139
|
|
|
3,774
|
|
|||
|
|
|
|
|
|
|
||||||
Cash flow from investing activities:
|
|
|
|
|
|
|
||||||
Capital expenditures:
|
|
|
|
|
|
|
||||||
North America copper mines
|
|
(969
|
)
|
|
(1,066
|
)
|
|
(825
|
)
|
|||
South America
|
|
(1,785
|
)
|
|
(1,145
|
)
|
|
(931
|
)
|
|||
Indonesia
|
|
(948
|
)
|
|
(1,030
|
)
|
|
(843
|
)
|
|||
Africa
|
|
(159
|
)
|
|
(205
|
)
|
|
(539
|
)
|
|||
Molybdenum mines
|
|
(54
|
)
|
|
(164
|
)
|
|
(245
|
)
|
|||
U.S. oil and gas operations
|
|
(3,205
|
)
|
|
(1,436
|
)
|
|
—
|
|
|||
Other
|
|
(95
|
)
|
|
(240
|
)
|
|
(111
|
)
|
|||
Acquisition of Deepwater Gulf of Mexico interests
|
|
(1,426
|
)
|
|
—
|
|
|
—
|
|
|||
Acquisition of Plains Exploration & Production Company, net of cash acquired
|
|
—
|
|
|
(3,465
|
)
|
|
—
|
|
|||
Acquisition of MMR, net of cash acquired
|
|
—
|
|
|
(1,628
|
)
|
|
—
|
|
|||
Acquisition of cobalt chemical business, net of cash acquired
|
|
—
|
|
|
(348
|
)
|
|
—
|
|
|||
Net proceeds from sale of Candelaria and Ojos del Salado
|
|
1,709
|
|
|
—
|
|
|
—
|
|
|||
Net proceeds from sale of Eagle Ford shale assets
|
|
2,910
|
|
|
—
|
|
|
—
|
|
|||
Other, net
|
|
221
|
|
|
(181
|
)
|
|
31
|
|
|||
Net cash used in investing activities
|
|
(3,801
|
)
|
|
(10,908
|
)
|
|
(3,463
|
)
|
|||
|
|
|
|
|
|
|
||||||
Cash flow from financing activities:
|
|
|
|
|
|
|
||||||
Proceeds from debt
|
|
8,710
|
|
|
11,501
|
|
|
3,029
|
|
|||
Repayments of debt
|
|
(10,306
|
)
|
|
(5,476
|
)
|
|
(3,186
|
)
|
|||
Redemption of MMR preferred stock
|
|
—
|
|
|
(228
|
)
|
|
—
|
|
|||
Cash dividends and distributions paid:
|
|
|
|
|
|
|
||||||
Common stock
|
|
(1,305
|
)
|
|
(2,281
|
)
|
|
(1,129
|
)
|
|||
Noncontrolling interests
|
|
(424
|
)
|
|
(256
|
)
|
|
(113
|
)
|
|||
Stock-based awards net proceeds (payments), including excess tax benefit
|
|
9
|
|
|
(98
|
)
|
|
7
|
|
|||
Debt financing costs and other, net
|
|
(35
|
)
|
|
(113
|
)
|
|
(36
|
)
|
|||
Net cash (used in) provided by financing activities
|
|
(3,351
|
)
|
|
3,049
|
|
|
(1,428
|
)
|
|||
Net decrease in cash and cash equivalents
|
|
(1,521
|
)
|
|
(1,720
|
)
|
|
(1,117
|
)
|
|||
Cash and cash equivalents at beginning of year
|
|
1,985
|
|
|
3,705
|
|
|
4,822
|
|
|||
Cash and cash equivalents at end of year
|
|
$
|
464
|
|
|
$
|
1,985
|
|
|
$
|
3,705
|
|
|
December 31,
|
||||||
|
2014
|
|
2013
|
||||
|
(In millions, except par value)
|
||||||
ASSETS
|
|
|
|
||||
Current assets:
|
|
|
|
||||
Cash and cash equivalents
|
$
|
464
|
|
|
$
|
1,985
|
|
Trade accounts receivable
|
953
|
|
|
1,728
|
|
||
Income and other tax receivables
|
1,322
|
|
|
695
|
|
||
Other accounts receivable
|
288
|
|
|
139
|
|
||
Inventories:
|
|
|
|
||||
Mill and leach stockpiles
|
1,914
|
|
|
1,705
|
|
||
Materials and supplies, net
|
1,886
|
|
|
1,730
|
|
||
Product
|
1,561
|
|
|
1,583
|
|
||
Other current assets
|
657
|
|
|
407
|
|
||
Total current assets
|
9,045
|
|
|
9,972
|
|
||
Property, plant, equipment and mining development costs, net
|
26,220
|
|
|
24,042
|
|
||
Oil and gas properties, net - full cost method:
|
|
|
|
||||
Subject to amortization, less accumulated amortization of $7,360 and $1,357, respectively
|
9,187
|
|
|
12,472
|
|
||
Not subject to amortization
|
10,087
|
|
|
10,887
|
|
||
Long-term mill and leach stockpiles
|
2,179
|
|
|
2,386
|
|
||
Goodwill
|
—
|
|
|
1,916
|
|
||
Other assets
|
2,077
|
|
|
1,798
|
|
||
Total assets
|
$
|
58,795
|
|
|
$
|
63,473
|
|
|
|
|
|
||||
LIABILITIES AND EQUITY
|
|
|
|
||||
Current liabilities:
|
|
|
|
||||
Accounts payable and accrued liabilities
|
$
|
3,653
|
|
|
$
|
3,708
|
|
Current portion of debt
|
478
|
|
|
312
|
|
||
Accrued income taxes
|
410
|
|
|
184
|
|
||
Dividends payable
|
335
|
|
|
333
|
|
||
Current portion of environmental and asset retirement obligations
|
296
|
|
|
236
|
|
||
Total current liabilities
|
5,172
|
|
|
4,773
|
|
||
Long-term debt, less current portion
|
18,492
|
|
|
20,394
|
|
||
Deferred income taxes
|
6,398
|
|
|
7,410
|
|
||
Environmental and asset retirement obligations, less current portion
|
3,647
|
|
|
3,259
|
|
||
Other liabilities
|
1,861
|
|
|
1,690
|
|
||
Total liabilities
|
35,570
|
|
|
37,526
|
|
||
|
|
|
|
||||
Redeemable noncontrolling interest
|
751
|
|
|
716
|
|
||
|
|
|
|
||||
Equity:
|
|
|
|
||||
Stockholders’ equity:
|
|
|
|
||||
Common stock, par value $0.10, 1,167 shares and 1,165 shares issued, respectively
|
117
|
|
|
117
|
|
||
Capital in excess of par value
|
22,281
|
|
|
22,161
|
|
||
Retained earnings
|
128
|
|
|
2,742
|
|
||
Accumulated other comprehensive loss
|
(544
|
)
|
|
(405
|
)
|
||
Common stock held in treasury – 128 shares and 127 shares, respectively, at cost
|
(3,695
|
)
|
|
(3,681
|
)
|
||
Total stockholders’ equity
|
18,287
|
|
|
20,934
|
|
||
Noncontrolling interests
|
4,187
|
|
|
4,297
|
|
||
Total equity
|
22,474
|
|
|
25,231
|
|
||
Total liabilities and equity
|
$
|
58,795
|
|
|
$
|
63,473
|
|
|
Stockholders' Equity
|
|
|
|
|
||||||||||||||||||||||||||||||||
|
Common Stock
|
|
|
|
Retained Earnings
|
|
Accumu-
lated
Other Compre-hensive
Loss
|
|
Common Stock
Held in Treasury
|
|
Total
Stock-
holders’
Equity
|
|
|
|
|
||||||||||||||||||||||
|
Number
of
Shares
|
|
At Par
Value
|
|
Capital in
Excess of
Par Value
|
|
|
|
Number
of
Shares
|
|
At
Cost
|
|
|
Non-
controlling
Interests
|
|
Total
Equity
|
|||||||||||||||||||||
|
|
||||||||||||||||||||||||||||||||||||
Balance at January 1, 2012
|
1,071
|
|
|
$
|
107
|
|
|
$
|
19,007
|
|
|
$
|
546
|
|
|
$
|
(465
|
)
|
|
123
|
|
|
$
|
(3,553
|
)
|
|
$
|
15,642
|
|
|
$
|
2,911
|
|
|
$
|
18,553
|
|
Exercised and issued stock-based awards
|
2
|
|
|
—
|
|
|
15
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
15
|
|
|
—
|
|
|
15
|
|
||||||||
Stock-based compensation
|
—
|
|
|
—
|
|
|
100
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
100
|
|
|
—
|
|
|
100
|
|
||||||||
Tax benefit for stock-based awards
|
—
|
|
|
—
|
|
|
7
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
7
|
|
|
—
|
|
|
7
|
|
||||||||
Tender of shares for stock-based awards
|
—
|
|
|
—
|
|
|
7
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
(23
|
)
|
|
(16
|
)
|
|
—
|
|
|
(16
|
)
|
||||||||
Dividends on common stock
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,188
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,188
|
)
|
|
—
|
|
|
(1,188
|
)
|
||||||||
Dividends to noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(113
|
)
|
|
(113
|
)
|
||||||||
Change in ownership interests
|
—
|
|
|
—
|
|
|
(17
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(17
|
)
|
|
17
|
|
|
—
|
|
||||||||
Contributions from noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
15
|
|
|
15
|
|
||||||||
Net income attributable to FCX common stockholders
|
—
|
|
|
—
|
|
|
—
|
|
|
3,041
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,041
|
|
|
—
|
|
|
3,041
|
|
||||||||
Net income attributable to noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
939
|
|
|
939
|
|
||||||||
Other comprehensive loss
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(41
|
)
|
|
—
|
|
|
—
|
|
|
(41
|
)
|
|
(1
|
)
|
|
(42
|
)
|
||||||||
Balance at December 31, 2012
|
1,073
|
|
|
107
|
|
|
19,119
|
|
|
2,399
|
|
|
(506
|
)
|
|
124
|
|
|
(3,576
|
)
|
|
17,543
|
|
|
3,768
|
|
|
21,311
|
|
||||||||
Common stock issued to acquire Plains Exploration & Production Company
|
91
|
|
|
9
|
|
|
2,822
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,831
|
|
|
—
|
|
|
2,831
|
|
||||||||
Exchange of employee stock-based awards in connection with acquisitions
|
—
|
|
|
—
|
|
|
67
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
67
|
|
|
—
|
|
|
67
|
|
||||||||
Exercised and issued stock-based awards
|
1
|
|
|
1
|
|
|
8
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
9
|
|
|
—
|
|
|
9
|
|
||||||||
Stock-based compensation
|
—
|
|
|
—
|
|
|
153
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
153
|
|
|
—
|
|
|
153
|
|
||||||||
Reserve of tax benefit for stock-based awards
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
(1
|
)
|
||||||||
Tender of shares for stock-based awards
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3
|
|
|
(105
|
)
|
|
(105
|
)
|
|
—
|
|
|
(105
|
)
|
||||||||
Dividends on common stock
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,315
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,315
|
)
|
|
—
|
|
|
(2,315
|
)
|
||||||||
Dividends to noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(236
|
)
|
|
(236
|
)
|
||||||||
Noncontrolling interests' share of contributed capital in subsidiary
|
—
|
|
|
—
|
|
|
(7
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(7
|
)
|
|
7
|
|
|
—
|
|
||||||||
Net income attributable to FCX common stockholders
|
—
|
|
|
—
|
|
|
—
|
|
|
2,658
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,658
|
|
|
—
|
|
|
2,658
|
|
||||||||
Net income attributable to noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
761
|
|
|
761
|
|
||||||||
Other comprehensive income (loss)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
101
|
|
|
—
|
|
|
—
|
|
|
101
|
|
|
(3
|
)
|
|
98
|
|
||||||||
Balance at December 31, 2013
|
1,165
|
|
|
$
|
117
|
|
|
$
|
22,161
|
|
|
$
|
2,742
|
|
|
$
|
(405
|
)
|
|
127
|
|
|
$
|
(3,681
|
)
|
|
$
|
20,934
|
|
|
$
|
4,297
|
|
|
$
|
25,231
|
|
|
Stockholders’ Equity
|
|
|
|
|
||||||||||||||||||||||||||||||||
|
Common Stock
|
|
|
|
Retained Earnings
|
|
Accumu-
lated
Other Compre-hensive
Loss
|
|
Common Stock
Held in Treasury
|
|
Total
Stock-
holders’
Equity
|
|
|
|
|
||||||||||||||||||||||
|
Number
of
Shares
|
|
At Par
Value
|
|
Capital in
Excess of
Par Value
|
|
|
|
Number
of
Shares
|
|
At
Cost
|
|
|
Non-
controlling
Interests
|
|
Total
Equity
|
|||||||||||||||||||||
|
|
||||||||||||||||||||||||||||||||||||
Balance at December 31, 2013
|
1,165
|
|
|
$
|
117
|
|
|
$
|
22,161
|
|
|
$
|
2,742
|
|
|
$
|
(405
|
)
|
|
127
|
|
|
$
|
(3,681
|
)
|
|
$
|
20,934
|
|
|
$
|
4,297
|
|
|
$
|
25,231
|
|
Exercised and issued stock-based awards
|
2
|
|
|
—
|
|
|
12
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
12
|
|
|
—
|
|
|
12
|
|
||||||||
Stock-based compensation
|
—
|
|
|
—
|
|
|
98
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
98
|
|
|
—
|
|
|
98
|
|
||||||||
Tax benefit for stock-based awards
|
—
|
|
|
—
|
|
|
5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5
|
|
|
1
|
|
|
6
|
|
||||||||
Tender of shares for stock-based awards
|
—
|
|
|
—
|
|
|
6
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
(14
|
)
|
|
(8
|
)
|
|
—
|
|
|
(8
|
)
|
||||||||
Dividends on common stock
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,306
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,306
|
)
|
|
—
|
|
|
(1,306
|
)
|
||||||||
Dividends to noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(396
|
)
|
|
(396
|
)
|
||||||||
Noncontrolling interests' share of contributed capital in subsidiary
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
7
|
|
|
6
|
|
||||||||
Sale of Candelaria and Ojos del Salado
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(243
|
)
|
|
(243
|
)
|
||||||||
Net loss attributable to FCX common stockholders
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,308
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,308
|
)
|
|
—
|
|
|
(1,308
|
)
|
||||||||
Net income attributable to noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
523
|
|
|
523
|
|
||||||||
Other comprehensive loss
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(139
|
)
|
|
—
|
|
|
—
|
|
|
(139
|
)
|
|
(2
|
)
|
|
(141
|
)
|
||||||||
Balance at December 31, 2014
|
1,167
|
|
|
$
|
117
|
|
|
$
|
22,281
|
|
|
$
|
128
|
|
|
$
|
(544
|
)
|
|
128
|
|
|
$
|
(3,695
|
)
|
|
$
|
18,287
|
|
|
$
|
4,187
|
|
|
$
|
22,474
|
|
•
|
the present value, discounted at
10 percent
, of estimated future net cash flows from the related proved oil and natural gas reserves, net of estimated future income taxes; plus
|
•
|
the cost of the related unproved properties not being amortized; plus
|
•
|
the lower of cost or estimated fair value of the related unproved properties included in the costs being amortized (net of related tax effects).
|
|
2014
|
|
2013
|
|
2012
|
|
||||||
Net (loss) income
|
$
|
(745
|
)
|
|
$
|
3,441
|
|
|
$
|
3,980
|
|
|
Net income attributable to noncontrolling interests
|
(523
|
)
|
|
(761
|
)
|
|
(939
|
)
|
|
|||
Preferred dividends on redeemable noncontrolling interest
|
(40
|
)
|
|
(22
|
)
|
|
—
|
|
|
|||
Undistributed earnings allocable to participating securities
|
(3
|
)
|
|
—
|
|
|
—
|
|
|
|||
Net (loss) income allocable to FCX common stockholders
|
$
|
(1,311
|
)
|
|
$
|
2,658
|
|
|
$
|
3,041
|
|
|
|
|
|
|
|
|
|
||||||
Basic weighted-average shares of common stock outstanding (millions)
|
1,039
|
|
|
1,002
|
|
|
949
|
|
|
|||
Add shares issuable upon exercise or vesting of dilutive stock options and RSUs (millions)
|
—
|
|
a
|
4
|
|
a
|
5
|
|
a
|
|||
Diluted weighted-average shares of common stock outstanding (millions)
|
1,039
|
|
|
1,006
|
|
|
954
|
|
|
|||
|
|
|
|
|
|
|
||||||
Basic net (loss) income per share attributable to FCX common stockholders
|
$
|
(1.26
|
)
|
|
$
|
2.65
|
|
|
$
|
3.20
|
|
|
|
|
|
|
|
|
|
||||||
Diluted net (loss) income per share attributable to FCX common stockholders
|
$
|
(1.26
|
)
|
|
$
|
2.64
|
|
|
$
|
3.19
|
|
|
a.
|
Excludes shares of common stock associated with outstanding stock options with exercise prices less than the average market price of FCX's common stock and RSUs that were anti-dilutive, with related amounts totaling approximately
ten million
for the year ended
December 31, 2014
, and
one million
for the years ended
December 31, 2013
and
2012
.
|
Current assets
|
$
|
482
|
|
Long-term assets
|
1,155
|
|
|
Current liabilities
|
129
|
|
|
Long-term liabilities
|
89
|
|
|
Noncontrolling interests
|
242
|
|
|
|
January 1, 2014,
|
|
|
|
|
||||||
|
|
to
|
|
Years Ended December 31,
|
||||||||
|
|
November 3, 2014
|
|
2013
|
|
2012
|
||||||
Net income before income taxes
|
|
$
|
270
|
|
|
$
|
689
|
|
|
$
|
547
|
|
Net income attributable to FCX common stockholders
|
|
144
|
|
|
341
|
|
|
304
|
|
Number of shares of PXP common stock acquired (millions)
|
132.280
|
|
|
|
Exchange ratio of FCX common stock for each PXP share
|
0.6531
|
|
|
|
|
86.392
|
|
|
|
Shares of FCX common stock issued for certain PXP equity awards (millions)
|
4.769
|
|
|
|
Total shares of FCX common stock issued (millions)
|
91.161
|
|
|
|
|
|
|
||
Closing share price of FCX common stock at May 31, 2013
|
$
|
31.05
|
|
|
FCX stock consideration
|
$
|
2,831
|
|
|
Cash consideration
|
3,725
|
|
a
|
|
Employee stock-based awards, primarily cash-settled stock-based awards
|
83
|
|
|
|
Total purchase price
|
$
|
6,639
|
|
|
a.
|
Cash consideration includes the payment of
$25.00
in cash for each PXP share (
$3.3 billion
), cash paid in lieu of any fractional shares of FCX common stock, cash paid for certain equity awards (
$7 million
) and the value of the
$3
per share PXP special cash dividend (
$411 million
) paid on
May 31, 2013
.
|
Number of shares of MMR common stock acquired (millions)
|
112.362
|
|
a
|
|
Cash consideration of $14.75 per share
|
$
|
14.75
|
|
|
Cash consideration paid by FCX
|
$
|
1,657
|
|
|
Employee stock-based awards
|
63
|
|
|
|
Total
|
1,720
|
|
|
|
Fair value of FCX's investment in 51 million shares of MMR common stock acquired on
|
|
|
||
May 31, 2013, through the acquisition of PXP
|
854
|
|
|
|
Fair value of FCX's investment in MMR's 5.75% Convertible Perpetual Preferred Stock, Series 2
|
554
|
|
|
|
Total purchase price
|
$
|
3,128
|
|
|
a.
|
Excludes
51 million
shares of MMR common stock owned by FCX through its acquisition of PXP on
May 31, 2013
.
|
|
PXP
|
|
MMR
|
|
Eliminations
|
|
Total
|
||||||||
Current assets
|
$
|
1,193
|
|
|
$
|
98
|
|
|
$
|
—
|
|
|
$
|
1,291
|
|
Oil and gas properties - full cost method:
|
|
|
|
|
|
|
|
||||||||
Subject to amortization
|
11,447
|
|
|
751
|
|
|
—
|
|
|
12,198
|
|
||||
Not subject to amortization
|
9,401
|
|
|
1,711
|
|
|
—
|
|
|
11,112
|
|
||||
Property, plant and equipment
|
261
|
|
|
1
|
|
|
—
|
|
|
262
|
|
||||
Investment in MMR
a
|
848
|
|
|
—
|
|
|
(848
|
)
|
|
—
|
|
||||
Other assets
|
12
|
|
|
382
|
|
|
—
|
|
|
394
|
|
||||
Current liabilities
|
(906
|
)
|
|
(174
|
)
|
|
—
|
|
|
(1,080
|
)
|
||||
Debt (current and long-term)
|
(10,631
|
)
|
|
(620
|
)
|
|
—
|
|
|
(11,251
|
)
|
||||
Deferred income taxes
b
|
(3,917
|
)
|
|
—
|
|
|
—
|
|
|
(3,917
|
)
|
||||
Other long-term liabilities
|
(799
|
)
|
|
(262
|
)
|
|
—
|
|
|
(1,061
|
)
|
||||
Redeemable noncontrolling interest
|
(708
|
)
|
|
(259
|
)
|
|
—
|
|
|
(967
|
)
|
||||
Total fair value, excluding goodwill
|
6,201
|
|
|
1,628
|
|
|
(848
|
)
|
|
6,981
|
|
||||
Goodwill
|
438
|
|
|
1,500
|
|
|
—
|
|
|
1,938
|
|
||||
Total purchase price
|
$
|
6,639
|
|
|
$
|
3,128
|
|
|
$
|
(848
|
)
|
|
$
|
8,919
|
|
a.
|
PXP owned
51 million
shares of MMR common stock, which were eliminated in FCX's consolidated balance sheet at the acquisition date of MMR.
|
b.
|
Deferred income taxes have been recognized based on the estimated fair value adjustments to net assets using a
38 percent
tax rate, which reflected a
35 percent
federal statutory rate and a
3 percent
weighted-average of the applicable statutory state tax rates (net of federal benefit).
|
Balance at January 1, 2013
|
|
$
|
—
|
|
Acquisitions of PXP and MMR
|
|
1,916
|
|
|
Balance at December 31, 2013
|
|
1,916
|
|
|
Purchase accounting adjustments
|
|
22
|
|
|
Disposal of Eagle Ford (see above)
|
|
(221
|
)
|
|
Impairment charge
|
|
(1,717
|
)
|
|
Balance at December 31, 2014
|
|
$
|
—
|
|
|
Years Ended December 31,
|
|
||||||
|
2013
|
|
2012
|
|
||||
Revenues
|
$
|
23,075
|
|
|
$
|
22,713
|
|
|
Operating income
|
6,267
|
|
|
6,815
|
|
|
||
Income from continuing operations
|
3,626
|
|
|
4,277
|
|
|
||
Net income attributable to FCX common stockholders
|
2,825
|
|
|
3,301
|
|
|
||
|
|
|
|
|
||||
Net income per share attributable to FCX common stockholders:
|
|
|
|
|
||||
Basic
|
$
|
2.71
|
|
|
$
|
3.17
|
|
|
Diluted
|
2.70
|
|
|
3.16
|
|
|
|
December 31,
|
|
||||||
|
2014
|
|
2013
|
|
||||
Current inventories:
|
|
|
|
|
||||
Mill stockpiles
|
$
|
86
|
|
|
$
|
91
|
|
|
Leach stockpiles
|
1,828
|
|
|
1,614
|
|
a
|
||
Total current mill and leach stockpiles
|
$
|
1,914
|
|
|
$
|
1,705
|
|
|
|
|
|
|
|
||||
Total materials and supplies, net
b
|
$
|
1,886
|
|
|
$
|
1,730
|
|
|
|
|
|
|
|
||||
Raw materials (primarily concentrates)
|
$
|
288
|
|
|
$
|
238
|
|
|
Work-in-process
|
174
|
|
|
199
|
|
|
||
Finished goods
|
1,099
|
|
|
1,146
|
|
|
||
Total product inventories
|
$
|
1,561
|
|
|
$
|
1,583
|
|
|
|
|
|
|
|
||||
Long-term inventories:
|
|
|
|
|
||||
Mill stockpiles
|
$
|
360
|
|
|
$
|
698
|
|
|
Leach stockpiles
|
1,819
|
|
|
1,688
|
|
|
||
Total long-term mill and leach stockpiles
c
|
$
|
2,179
|
|
|
$
|
2,386
|
|
|
a.
|
Amount is net of a
$76 million
charge associated with updated mine plans at Morenci that resulted in a loss in recoverable copper in leach stockpiles.
|
b.
|
Materials and supplies inventory was net of obsolescence reserves totaling
$20 million
at
December 31, 2014
, and
$24 million
at
December 31, 2013
.
|
c.
|
Estimated metals in stockpiles not expected to be recovered within the next 12 months.
|
|
December 31,
|
||||||
|
2014
|
|
2013
|
||||
Proven and probable mineral reserves
|
$
|
4,651
|
|
|
$
|
4,651
|
|
VBPP
|
1,042
|
|
|
1,044
|
|
||
Mining development and other
|
4,712
|
|
|
4,335
|
|
||
Buildings and infrastructure
|
5,100
|
|
|
4,334
|
|
||
Machinery and equipment
|
11,251
|
|
|
10,379
|
|
||
Mobile equipment
|
3,926
|
|
|
3,903
|
|
||
Construction in progress
|
6,802
|
|
|
5,603
|
|
||
Property, plant, equipment and mining development costs
|
37,484
|
|
|
34,249
|
|
||
Accumulated depreciation, depletion and amortization
|
(11,264
|
)
|
|
(10,207
|
)
|
||
Property, plant, equipment and mining development costs, net
|
$
|
26,220
|
|
|
$
|
24,042
|
|
|
December 31,
|
||||||
|
2014
|
|
2013
|
||||
|
|
|
|
||||
Disputed tax assessments:
a
|
|
|
|
||||
PT-FI
|
$
|
279
|
|
|
$
|
255
|
|
Cerro Verde
|
232
|
|
|
72
|
|
||
Intangible assets
b
|
334
|
|
|
380
|
|
||
Investments:
|
|
|
|
||||
Assurance bond
c
|
115
|
|
|
—
|
|
||
PT Smelting
d
|
107
|
|
|
71
|
|
||
Available-for-sale securities
|
46
|
|
|
44
|
|
||
Other
|
60
|
|
|
63
|
|
||
Legally restricted funds
e
|
172
|
|
|
392
|
|
||
Loan to a DRC public electric utility
|
164
|
|
|
152
|
|
||
Debt issue costs
|
141
|
|
|
107
|
|
||
Deferred drillship costs
|
113
|
|
|
—
|
|
||
Long-term receivable for income tax refunds
|
63
|
|
|
77
|
|
||
Loan to Gécamines (related party)
|
37
|
|
|
34
|
|
||
Other
|
214
|
|
|
151
|
|
||
Total other assets
|
$
|
2,077
|
|
|
$
|
1,798
|
|
a.
|
Refer to Note
12
for further discussion.
|
b.
|
Intangible assets were net of accumulated amortization totaling
$62 million
at
December 31, 2014
, and
$57 million
at
December 31, 2013
.
|
c.
|
Relates to PT-FI's commitment for smelter development in Indonesia at December 31, 2014 (refer to Note 13 for further discussion).
|
d.
|
FCX's
25 percent
ownership in PT Smelting (smelter and refinery in Gresik, Indonesia) is recorded using the equity method. Amounts were reduced by unrecognized profits on sales from PT-FI to PT Smelting totaling
$24 million
at
December 31, 2014
, and
$58 million
at
December 31, 2013
.
|
e.
|
Includes
$168 million
for AROs related to properties in New Mexico at
December 31, 2014
, and a
$210 million
time deposit that secured a bank guarantee (until the time deposit was released as security for the bank guarantee in 2014) associated with the Cerro Verde royalty dispute and
$158 million
for AROs related to properties in New Mexico at
December 31, 2013
(refer to Note
12
for further discussion).
|
|
December 31,
|
||||||
|
2014
|
|
2013
|
||||
Accounts payable
|
$
|
2,439
|
|
|
$
|
2,144
|
|
Salaries, wages and other compensation
|
373
|
|
|
352
|
|
||
Accrued interest
a
|
166
|
|
|
210
|
|
||
Other accrued taxes
|
137
|
|
|
142
|
|
||
Pension, postretirement, postemployment and other employee benefits
b
|
106
|
|
|
161
|
|
||
Deferred revenue
|
105
|
|
|
115
|
|
||
Oil and gas royalty and revenue payable
|
76
|
|
|
169
|
|
||
Rio Tinto's share of joint venture cash flows
|
29
|
|
|
33
|
|
||
Commodity derivative contracts
|
43
|
|
|
205
|
|
||
Other
|
179
|
|
|
177
|
|
||
Total accounts payable and accrued liabilities
|
$
|
3,653
|
|
|
$
|
3,708
|
|
a.
|
Third-party interest paid, net of capitalized interest, was
$637 million
in
2014
,
$397 million
in
2013
and
$111 million
in
2012
.
|
b.
|
Refer to Note
9
for long-term portion.
|
|
December 31,
|
||||||
|
2014
|
|
2013
|
||||
Bank term loan
|
$
|
3,050
|
|
|
$
|
4,000
|
|
Revolving credit facility
|
—
|
|
|
—
|
|
||
Lines of credit
|
474
|
|
|
—
|
|
||
Subsidiary credit facility
|
425
|
|
|
—
|
|
||
Senior notes and debentures:
|
|
|
|
||||
Issued by FCX:
|
|
|
|
||||
1.40% Senior Notes due 2015
|
—
|
|
|
500
|
|
||
2.15% Senior Notes due 2017
|
500
|
|
|
500
|
|
||
2.30% Senior Notes due 2017
|
749
|
|
|
—
|
|
||
2.375% Senior Notes due 2018
|
1,500
|
|
|
1,500
|
|
||
3.100% Senior Notes due 2020
|
1,000
|
|
|
999
|
|
||
4.00% Senior Notes due 2021
|
598
|
|
|
—
|
|
||
3.55% Senior Notes due 2022
|
1,996
|
|
|
1,996
|
|
||
3.875% Senior Notes due 2023
|
1,999
|
|
|
1,999
|
|
||
4.55% Senior Notes due 2024
|
849
|
|
|
—
|
|
||
5.40% Senior Notes due 2034
|
796
|
|
|
—
|
|
||
5.450% Senior Notes due 2043
|
1,991
|
|
|
1,991
|
|
||
Issued by FM O&G:
|
|
|
|
||||
6.125% Senior Notes due 2019
|
255
|
|
|
817
|
|
||
8.625% Senior Notes due 2019
|
—
|
|
|
447
|
|
||
7.625% Senior Notes due 2020
|
—
|
|
|
336
|
|
||
6½% Senior Notes due 2020
|
670
|
|
|
1,647
|
|
||
6.625% Senior Notes due 2021
|
284
|
|
|
659
|
|
||
6.75% Senior Notes due 2022
|
493
|
|
|
1,111
|
|
||
6⅞% Senior Notes due 2023
|
866
|
|
|
1,686
|
|
||
Issued by FMC:
|
|
|
|
||||
7
1
/
8
% Debentures due 2027
|
115
|
|
|
115
|
|
||
9½% Senior Notes due 2031
|
129
|
|
|
130
|
|
||
6
1
/
8
% Senior Notes due 2034
|
116
|
|
|
115
|
|
||
Other (including equipment capital leases and other short-term borrowings)
|
115
|
|
|
158
|
|
||
Total debt
|
18,970
|
|
|
20,706
|
|
||
Less current portion of debt
|
(478
|
)
|
|
(312
|
)
|
||
Long-term debt
|
$
|
18,492
|
|
|
$
|
20,394
|
|
Debt Instrument
|
|
Date
|
6.125% Senior Notes due 2019
|
|
June 15, 2016
|
6½% Senior Notes due 2020
|
|
November 15, 2015
|
6.625% Senior Notes due 2021
|
|
May 1, 2016
|
6.75% Senior Notes due 2022
|
|
February 1, 2017
|
6⅞% Senior Notes due 2023
|
|
February 15, 2018
|
|
Principal Amount
|
|
Purchase Accounting Fair Value Adjustments
|
|
Book Value
|
|
(Loss) Gain
|
||||||||
|
|
|
|
|
|
|
|
||||||||
1.40% Senior Notes due 2015
|
$
|
500
|
|
|
$
|
—
|
|
|
$
|
500
|
|
|
$
|
(1
|
)
|
6.125% Senior Notes due 2019
|
513
|
|
|
40
|
|
|
553
|
|
|
(2
|
)
|
||||
8.625% Senior Notes due 2019
|
400
|
|
|
41
|
|
|
441
|
|
|
24
|
|
||||
7.625% Senior Notes due 2020
|
300
|
|
|
32
|
|
|
332
|
|
|
14
|
|
||||
6½% Senior Notes due 2020
|
883
|
|
|
79
|
|
|
962
|
|
|
10
|
|
||||
6.625% Senior Notes due 2021
|
339
|
|
|
31
|
|
|
370
|
|
|
3
|
|
||||
6.75% Senior Notes due 2022
|
551
|
|
|
57
|
|
|
608
|
|
|
8
|
|
||||
6⅞% Senior Notes due 2023
|
722
|
|
|
84
|
|
|
806
|
|
|
21
|
|
||||
|
$
|
4,208
|
|
|
$
|
364
|
|
|
$
|
4,572
|
|
|
$
|
77
|
|
|
December 31,
|
||||||
|
2014
|
|
2013
|
||||
Pension, postretirement, postemployment and other employment benefits
a
|
$
|
1,430
|
|
|
$
|
1,225
|
|
Reserve for uncertain tax positions
|
68
|
|
|
87
|
|
||
Commodity derivative contracts
|
—
|
|
|
115
|
|
||
Other
|
363
|
|
|
263
|
|
||
Total other liabilities
|
$
|
1,861
|
|
|
$
|
1,690
|
|
a.
|
Refer to Note
7
for current portion.
|
|
December 31,
|
||||||
|
2014
|
|
2013
|
||||
Projected benefit obligation
|
$
|
2,221
|
|
|
$
|
2,180
|
|
Accumulated benefit obligation
|
2,090
|
|
|
1,933
|
|
||
Fair value of plan assets
|
1,433
|
|
|
1,490
|
|
|
FCX
|
|
PT-FI
|
||||||||||||
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||||||
Change in benefit obligation:
|
|
|
|
|
|
|
|
||||||||
Benefit obligation at beginning
|
|
|
|
|
|
|
|
||||||||
of year
|
$
|
1,871
|
|
|
$
|
1,954
|
|
|
$
|
259
|
|
|
$
|
240
|
|
Service cost
|
30
|
|
|
30
|
|
|
22
|
|
|
20
|
|
||||
Interest cost
|
92
|
|
|
77
|
|
|
23
|
|
|
14
|
|
||||
Actuarial losses (gains)
|
278
|
|
|
(103
|
)
|
|
30
|
|
|
13
|
|
||||
Plan amendment
|
—
|
|
|
—
|
|
|
—
|
|
|
33
|
|
||||
Foreign exchange (gains) losses
|
(2
|
)
|
|
1
|
|
|
(7
|
)
|
|
(53
|
)
|
||||
Benefits paid
|
(90
|
)
|
|
(88
|
)
|
|
(9
|
)
|
|
(8
|
)
|
||||
Benefit obligation at end of year
|
2,179
|
|
|
1,871
|
|
|
318
|
|
|
259
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Change in plan assets:
|
|
|
|
|
|
|
|
||||||||
Fair value of plan assets at
|
|
|
|
|
|
|
|
||||||||
beginning of year
|
1,350
|
|
|
1,300
|
|
|
124
|
|
|
130
|
|
||||
Actual return on plan assets
|
151
|
|
|
112
|
|
|
20
|
|
|
(3
|
)
|
||||
Employer contributions
a
|
6
|
|
|
26
|
|
|
55
|
|
|
35
|
|
||||
Foreign exchange losses
|
(1
|
)
|
|
—
|
|
|
(5
|
)
|
|
(30
|
)
|
||||
Benefits paid
|
(90
|
)
|
|
(88
|
)
|
|
(9
|
)
|
|
(8
|
)
|
||||
Fair value of plan assets at end
|
|
|
|
|
|
|
|
||||||||
of year
|
1,416
|
|
|
1,350
|
|
|
185
|
|
|
124
|
|
||||
Funded status
|
$
|
(763
|
)
|
|
$
|
(521
|
)
|
|
$
|
(133
|
)
|
|
$
|
(135
|
)
|
|
|
|
|
|
|
|
|
||||||||
Accumulated benefit obligation
|
$
|
2,048
|
|
|
$
|
1,742
|
|
|
$
|
168
|
|
|
$
|
141
|
|
|
|
|
|
|
|
|
|
||||||||
Weighted-average assumptions
|
|
|
|
|
|
|
|
||||||||
used to determine benefit obligations:
|
|
|
|
|
|
|
|
||||||||
Discount rate
|
4.10
|
%
|
|
5.00
|
%
|
|
8.25
|
%
|
|
9.00
|
%
|
||||
Rate of compensation increase
|
3.25
|
%
|
|
3.75
|
%
|
|
9.00
|
%
|
|
9.00
|
%
|
||||
|
|
|
|
|
|
|
|
||||||||
Balance sheet classification of
|
|
|
|
|
|
|
|
||||||||
funded status:
|
|
|
|
|
|
|
|
||||||||
Other assets
|
$
|
8
|
|
|
$
|
8
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Accounts payable and
|
|
|
|
|
|
|
|
||||||||
accrued liabilities
|
(4
|
)
|
|
(4
|
)
|
|
—
|
|
|
—
|
|
||||
Other liabilities
|
(767
|
)
|
|
(525
|
)
|
|
(133
|
)
|
|
(135
|
)
|
||||
Total
|
$
|
(763
|
)
|
|
$
|
(521
|
)
|
|
$
|
(133
|
)
|
|
$
|
(135
|
)
|
a.
|
Employer contributions for
2015
are expected to approximate
$98 million
for the FCX plans and
$20 million
for the PT-FI plan (based on a
December 31, 2014
, exchange rate of
12,378
Indonesian rupiah to one U.S. dollar).
|
|
2014
|
|
2013
|
|
2012
|
||||||
Weighted-average assumptions:
a
|
|
|
|
|
|
||||||
Discount rate
|
5.00
|
%
|
|
4.10
|
%
|
|
4.60
|
%
|
|||
Expected return on plan assets
|
7.50
|
%
|
|
7.50
|
%
|
|
7.50
|
%
|
|||
Rate of compensation increase
|
3.75
|
%
|
|
3.75
|
%
|
|
3.75
|
%
|
|||
|
|
|
|
|
|
||||||
Service cost
|
$
|
30
|
|
|
$
|
30
|
|
|
$
|
27
|
|
Interest cost
|
92
|
|
|
77
|
|
|
79
|
|
|||
Expected return on plan assets
|
(98
|
)
|
|
(95
|
)
|
|
(86
|
)
|
|||
Amortization of prior service credit
|
(1
|
)
|
|
—
|
|
|
(1
|
)
|
|||
Amortization of net actuarial losses
|
28
|
|
|
38
|
|
|
33
|
|
|||
Net periodic benefit cost
|
$
|
51
|
|
|
$
|
50
|
|
|
$
|
52
|
|
a.
|
The assumptions shown relate only to the FMC plans.
|
|
2014
|
|
2013
|
|
2012
|
||||||
Weighted-average assumptions:
|
|
|
|
|
|
||||||
Discount rate
|
9.00
|
%
|
|
6.25
|
%
|
|
7.00
|
%
|
|||
Expected return on plan assets
|
7.75
|
%
|
|
7.50
|
%
|
|
9.25
|
%
|
|||
Rate of compensation increase
|
9.00
|
%
|
|
8.00
|
%
|
|
8.00
|
%
|
|||
|
|
|
|
|
|
||||||
Service cost
|
$
|
22
|
|
|
$
|
20
|
|
|
$
|
17
|
|
Interest cost
|
23
|
|
|
14
|
|
|
14
|
|
|||
Expected return on plan assets
|
(10
|
)
|
|
(10
|
)
|
|
(9
|
)
|
|||
Amortization of prior service cost
|
3
|
|
|
—
|
|
|
1
|
|
|||
Amortization of net actuarial loss
|
8
|
|
|
8
|
|
|
7
|
|
|||
Net periodic benefit cost
|
$
|
46
|
|
|
$
|
32
|
|
|
$
|
30
|
|
|
2014
|
|
2013
|
||||||||||||
|
Before Taxes
|
|
After Taxes and Noncontrolling Interests
|
|
Before Taxes
|
|
After Taxes and Noncontrolling Interests
|
||||||||
Prior service costs
|
$
|
28
|
|
|
$
|
15
|
|
|
$
|
32
|
|
|
$
|
17
|
|
Net actuarial loss
|
749
|
|
|
456
|
|
|
542
|
|
|
326
|
|
||||
|
$
|
777
|
|
|
$
|
471
|
|
|
$
|
574
|
|
|
$
|
343
|
|
|
Fair Value at December 31, 2014
|
||||||||||||||
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||
Commingled/collective funds:
|
|
|
|
|
|
|
|
||||||||
Global equity
|
$
|
487
|
|
|
$
|
—
|
|
|
$
|
487
|
|
|
$
|
—
|
|
Global fixed income securities
|
106
|
|
|
—
|
|
|
106
|
|
|
—
|
|
||||
Fixed income securities
|
99
|
|
|
—
|
|
|
99
|
|
|
—
|
|
||||
U.S. small-cap equity
|
69
|
|
|
—
|
|
|
69
|
|
|
—
|
|
||||
U.S. real estate securities
|
54
|
|
|
—
|
|
|
54
|
|
|
—
|
|
||||
Real estate property
|
54
|
|
|
—
|
|
|
—
|
|
|
54
|
|
||||
Short-term investments
|
8
|
|
|
—
|
|
|
8
|
|
|
—
|
|
||||
Open-ended mutual funds:
|
|
|
|
|
|
|
|
||||||||
Emerging markets equity
|
38
|
|
|
38
|
|
|
—
|
|
|
—
|
|
||||
Mutual funds:
|
|
|
|
|
|
|
|
||||||||
Emerging markets equity
|
25
|
|
|
25
|
|
|
—
|
|
|
—
|
|
||||
Fixed income:
|
|
|
|
|
|
|
|
||||||||
Government bonds
|
244
|
|
|
—
|
|
|
244
|
|
|
—
|
|
||||
Corporate bonds
|
148
|
|
|
—
|
|
|
148
|
|
|
—
|
|
||||
Private equity investments
|
39
|
|
|
—
|
|
|
—
|
|
|
39
|
|
||||
Other investments
|
35
|
|
|
—
|
|
|
35
|
|
|
—
|
|
||||
Total investments
|
1,406
|
|
|
$
|
63
|
|
|
$
|
1,250
|
|
|
$
|
93
|
|
|
|
|
|
|
|
|
|
|
||||||||
Cash and receivables
|
19
|
|
|
|
|
|
|
|
|||||||
Payables
|
(9
|
)
|
|
|
|
|
|
|
|||||||
Total pension plan net assets
|
$
|
1,416
|
|
|
|
|
|
|
|
|
Fair Value at December 31, 2013
|
||||||||||||||
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||
Commingled/collective funds:
|
|
|
|
|
|
|
|
||||||||
Global equity
|
$
|
623
|
|
|
$
|
—
|
|
|
$
|
623
|
|
|
$
|
—
|
|
U.S. small-cap equity
|
65
|
|
|
—
|
|
|
65
|
|
|
—
|
|
||||
Real estate property
|
47
|
|
|
—
|
|
|
—
|
|
|
47
|
|
||||
U.S. real estate securities
|
40
|
|
|
—
|
|
|
40
|
|
|
—
|
|
||||
Fixed income debt securities
|
30
|
|
|
—
|
|
|
30
|
|
|
—
|
|
||||
Short-term investments
|
5
|
|
|
—
|
|
|
5
|
|
|
—
|
|
||||
Open-ended mutual funds:
|
|
|
|
|
|
|
|
||||||||
Government bonds
|
43
|
|
|
43
|
|
|
—
|
|
|
—
|
|
||||
Emerging markets equity
|
41
|
|
|
41
|
|
|
—
|
|
|
—
|
|
||||
Corporate bonds
|
33
|
|
|
33
|
|
|
—
|
|
|
—
|
|
||||
Mutual funds:
|
|
|
|
|
|
|
|
||||||||
Foreign bonds
|
51
|
|
|
51
|
|
|
—
|
|
|
—
|
|
||||
Emerging markets equity
|
26
|
|
|
26
|
|
|
—
|
|
|
—
|
|
||||
Emerging markets bond
|
20
|
|
|
20
|
|
|
—
|
|
|
—
|
|
||||
Fixed income:
|
|
|
|
|
|
|
|
||||||||
Government bonds
|
198
|
|
|
—
|
|
|
198
|
|
|
—
|
|
||||
Corporate bonds
|
52
|
|
|
—
|
|
|
52
|
|
|
—
|
|
||||
Private equity investments
|
43
|
|
|
—
|
|
|
—
|
|
|
43
|
|
||||
Other investments
|
29
|
|
|
1
|
|
|
28
|
|
|
—
|
|
||||
Total investments
|
1,346
|
|
|
$
|
215
|
|
|
$
|
1,041
|
|
|
$
|
90
|
|
|
|
|
|
|
|
|
|
|
||||||||
Cash and receivables
|
18
|
|
|
|
|
|
|
|
|||||||
Payables
|
(14
|
)
|
|
|
|
|
|
|
|||||||
Total pension plan net assets
|
$
|
1,350
|
|
|
|
|
|
|
|
|
Real
Estate
Property
|
|
Private
Equity Investments |
|
Total
|
||||||
Balance at January 1, 2013
|
$
|
41
|
|
|
$
|
45
|
|
|
$
|
86
|
|
Actual return on plan assets:
|
|
|
|
|
|
||||||
Realized gains
|
1
|
|
|
—
|
|
|
1
|
|
|||
Net unrealized gains (losses) related to
|
|
|
|
|
|
||||||
assets still held at the end of the year
|
6
|
|
|
(1
|
)
|
|
5
|
|
|||
Purchases
|
—
|
|
|
3
|
|
|
3
|
|
|||
Sales
|
(1
|
)
|
|
—
|
|
|
(1
|
)
|
|||
Settlements, net
|
—
|
|
|
(4
|
)
|
|
(4
|
)
|
|||
Balance at December 31, 2013
|
47
|
|
|
43
|
|
|
90
|
|
|||
Actual return on plan assets:
|
|
|
|
|
|
||||||
Realized gains
|
2
|
|
|
—
|
|
|
2
|
|
|||
Net unrealized gains (losses) related to
|
|
|
|
|
|
||||||
assets still held at the end of the year
|
6
|
|
|
(1
|
)
|
|
5
|
|
|||
Purchases
|
—
|
|
|
1
|
|
|
1
|
|
|||
Sales
|
(1
|
)
|
|
—
|
|
|
(1
|
)
|
|||
Settlements, net
|
—
|
|
|
(4
|
)
|
|
(4
|
)
|
|||
Balance at December 31, 2014
|
$
|
54
|
|
|
$
|
39
|
|
|
$
|
93
|
|
|
Fair Value at December 31, 2014
|
||||||||||||||
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||
Common stocks
|
$
|
43
|
|
|
$
|
43
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Government bonds
|
27
|
|
|
27
|
|
|
—
|
|
|
—
|
|
||||
Mutual funds
|
14
|
|
|
14
|
|
|
—
|
|
|
—
|
|
||||
Total investments
|
84
|
|
|
$
|
84
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
||||||||
Cash and receivables
a
|
101
|
|
|
|
|
|
|
|
|||||||
Total pension plan net assets
|
$
|
185
|
|
|
|
|
|
|
|
|
Fair Value at December 31, 2013
|
||||||||||||||
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||
Common stocks
|
$
|
27
|
|
|
$
|
27
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Government bonds
|
23
|
|
|
23
|
|
|
—
|
|
|
—
|
|
||||
Mutual funds
|
12
|
|
|
12
|
|
|
—
|
|
|
—
|
|
||||
Total investments
|
62
|
|
|
$
|
62
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
||||||||
Cash and receivables
a
|
62
|
|
|
|
|
|
|
|
|||||||
Total pension plan net assets
|
$
|
124
|
|
|
|
|
|
|
|
a.
|
Cash consists primarily of short-term time deposits.
|
|
FCX
|
|
PT-FI
a
|
||||
2015
|
$
|
97
|
|
|
$
|
20
|
|
2016
|
155
|
|
|
9
|
|
||
2017
|
103
|
|
|
16
|
|
||
2018
|
107
|
|
|
20
|
|
||
2019
|
110
|
|
|
24
|
|
||
2020 through 2024
|
603
|
|
|
172
|
|
a.
|
Based on a
December 31, 2014
, exchange rate of
12,378
Indonesian rupiah to one U.S. dollar.
|
|
Unrealized Losses on Securities
|
|
Translation Adjustment
|
|
Defined Benefit Plans
|
|
Total
|
||||||||
Balance at January 1, 2012
|
$
|
(4
|
)
|
|
$
|
6
|
|
|
$
|
(467
|
)
|
|
$
|
(465
|
)
|
Amounts arising during the period
a,b,c,d
|
—
|
|
|
(1
|
)
|
|
(66
|
)
|
|
(67
|
)
|
||||
Amounts reclassified
e
|
—
|
|
|
—
|
|
|
26
|
|
|
26
|
|
||||
Balance at December 31, 2012
|
(4
|
)
|
|
5
|
|
|
(507
|
)
|
|
(506
|
)
|
||||
Amounts arising during the period
a,b,c
|
(1
|
)
|
|
—
|
|
|
67
|
|
|
66
|
|
||||
Amounts reclassified
e
|
—
|
|
|
5
|
|
|
30
|
|
|
35
|
|
||||
Balance at December 31, 2013
|
(5
|
)
|
|
10
|
|
|
(410
|
)
|
|
(405
|
)
|
||||
Amounts arising during the period
a,b,c,d
|
(1
|
)
|
|
—
|
|
|
(162
|
)
|
|
(163
|
)
|
||||
Amounts reclassified
e
|
—
|
|
|
—
|
|
|
24
|
|
|
24
|
|
||||
Balance at December 31, 2014
|
$
|
(6
|
)
|
|
$
|
10
|
|
|
$
|
(548
|
)
|
|
$
|
(544
|
)
|
a.
|
Includes net actuarial (losses) gains, net of noncontrolling interest, totaling
$(106) million
for
2012
,
$126 million
for
2013
and
$(252) million
for
2014
. The year
2013
also included
$33 million
for prior service costs.
|
b.
|
Includes foreign exchange gains (losses), net of noncontrolling interest, totaling
$3 million
for
2012
,
$11 million
for
2013
and
$1 million
for
2014
.
|
c.
|
Includes tax benefits (provision) totaling
$39 million
for
2012
,
$(37) million
for
2013
and
$94 million
for
2014
.
|
d.
|
Includes adjustments to deferred tax valuation allowance of
$1 million
for
2012
and
$5 million
for
2014
.
|
e.
|
Includes amortization primarily related to actuarial losses that were net of taxes of
$15 million
for
2012
,
$17 million
for
2013
and
$14 million
for
2014
.
|
|
|
2014
|
|
2013
|
|
2012
|
||||||
Selling, general and administrative expenses
|
|
$
|
79
|
|
|
$
|
145
|
|
|
$
|
77
|
|
Production and delivery
|
|
28
|
|
|
28
|
|
|
23
|
|
|||
Capitalized costs
|
|
23
|
|
|
13
|
|
|
—
|
|
|||
Total stock-based compensation
|
|
130
|
|
|
186
|
|
|
100
|
|
|||
Less: capitalized costs
|
|
(23
|
)
|
|
(13
|
)
|
|
—
|
|
|||
Tax benefit and noncontrolling interests' share
|
|
(42
|
)
|
|
(66
|
)
|
|
(39
|
)
|
|||
Impact on net income
|
|
$
|
65
|
|
|
$
|
107
|
|
|
$
|
61
|
|
|
Number of
Options and SARs
|
|
Weighted-
Average
Exercise Price
Per Share
|
|
Weighted-
Average
Remaining
Contractual
Term (years)
|
|
Aggregate
Intrinsic
Value
|
|||||
Balance at January 1
|
45,130,661
|
|
|
$
|
35.39
|
|
|
|
|
|
||
Granted
|
3,276,000
|
|
|
31.01
|
|
|
|
|
|
|||
Exercised
|
(1,950,130
|
)
|
|
21.23
|
|
|
|
|
|
|||
Expired/Forfeited
|
(526,792
|
)
|
|
37.51
|
|
|
|
|
|
|||
Balance at December 31
|
45,929,739
|
|
|
35.65
|
|
|
5.1
|
|
$
|
38
|
|
|
|
|
|
|
|
|
|
|
|||||
Vested and exercisable at December 31
|
35,062,748
|
|
|
$
|
35.15
|
|
|
4.2
|
|
$
|
38
|
|
|
Number of Awards
|
|
Weighted-Average Grant-Date Fair Value
|
|
Weighted-
Average
Remaining
Contractual
Term (years)
|
|
Aggregate
Intrinsic
Value
|
|||||
Balance at January 1
|
4,255,476
|
|
|
$
|
35.13
|
|
|
|
|
|
||
Granted
|
2,161,700
|
|
|
31.17
|
|
|
|
|
|
|||
Vested
|
(436,610
|
)
|
|
37.93
|
|
|
|
|
|
|||
Forfeited
|
(175,421
|
)
|
|
31.46
|
|
|
|
|
|
|||
Balance at December 31
|
5,805,145
|
|
|
33.57
|
|
|
4.7
|
|
$
|
128
|
|
|
Number of Cash-Settled RSUs
|
|
Weighted-Average Grant-Date Fair Value
|
|
Weighted-
Average
Remaining
Contractual
Term (years)
|
|
Aggregate
Intrinsic
Value
|
|||||
Balance at January 1
|
2,219,812
|
|
|
$
|
31.05
|
|
|
|
|
|
||
Granted
|
2,204,986
|
|
|
30.95
|
|
|
|
|
|
|||
Vested
|
(544,048
|
)
|
|
31.05
|
|
|
|
|
|
|||
Forfeited
|
(293,186
|
)
|
|
31.01
|
|
|
|
|
|
|||
Balance at December 31
|
3,587,564
|
|
|
30.99
|
|
|
1.3
|
|
$
|
84
|
|
|
2014
|
|
2013
|
|
2012
|
||||||
FCX shares tendered to pay the exercise price
|
|
|
|
|
|
||||||
and/or the minimum required taxes
a
|
474,480
|
|
|
3,294,624
|
|
|
515,558
|
|
|||
Cash received from stock option exercises
|
$
|
12
|
|
|
$
|
8
|
|
|
$
|
15
|
|
Actual tax benefit realized for tax deductions
|
$
|
16
|
|
|
$
|
8
|
|
|
$
|
16
|
|
Amounts FCX paid for employee taxes
|
$
|
8
|
|
|
$
|
105
|
|
|
$
|
16
|
|
a.
|
Under terms of the related plans, upon exercise of stock options and vesting of RSUs, employees may tender existing FCX shares to FCX to pay the exercise price and/or the minimum required taxes.
|
|
2014
|
|
2013
|
|
2012
|
||||||
United States
|
$
|
(2,997
|
)
|
|
$
|
1,104
|
|
|
$
|
1,539
|
|
Foreign
|
2,573
|
|
|
3,809
|
|
|
3,948
|
|
|||
Total
|
$
|
(424
|
)
|
|
$
|
4,913
|
|
|
$
|
5,487
|
|
|
2014
|
|
2013
|
|
2012
|
|
||||||
Current income taxes:
|
|
|
|
|
|
|
||||||
Federal
|
$
|
281
|
|
|
$
|
203
|
|
|
$
|
238
|
|
|
State
|
35
|
|
|
9
|
|
|
7
|
|
|
|||
Foreign
|
1,128
|
|
|
1,081
|
|
|
1,002
|
|
|
|||
Total current
|
1,444
|
|
|
1,293
|
|
|
1,247
|
|
|
|||
|
|
|
|
|
|
|
||||||
Deferred income taxes (benefits):
|
|
|
|
|
|
|
||||||
Federal
|
(606
|
)
|
|
234
|
|
|
87
|
|
|
|||
State
|
(214
|
)
|
|
(35
|
)
|
|
18
|
|
|
|||
Foreign
|
33
|
|
|
346
|
|
|
363
|
|
|
|||
Total deferred
|
(787
|
)
|
|
545
|
|
|
468
|
|
|
|||
|
|
|
|
|
|
|
||||||
Adjustments
|
—
|
|
|
(199
|
)
|
a
|
(205
|
)
|
b,c
|
|||
Federal operating loss carryforwards
|
(333
|
)
|
d
|
(164
|
)
|
d
|
—
|
|
|
|||
Provision for income taxes
|
$
|
324
|
|
|
$
|
1,475
|
|
|
$
|
1,510
|
|
|
a.
|
As a result of the oil and gas acquisitions, FCX recognized a net tax benefit of
$199 million
consisting of income tax benefits of
$190 million
associated with net reductions in FCX's valuation allowances,
$69 million
related to the release of the deferred tax liability on PXP's investment in MMR common stock and
$16 million
associated with the revaluation of state deferred tax liabilities, partially offset by income tax expense of
$76 million
associated with the write off of deferred tax assets related to environmental liabilities.
|
b.
|
In 2012, Cerro Verde signed a new
15
-year mining stability agreement with the Peruvian government, which became effective
January 1, 2014
. In connection with the new mining stability agreement, Cerro Verde's income tax rate increased from
30 percent
to
32 percent
, and FCX recognized additional deferred tax expense of
$29 million
.
|
c.
|
Cerro Verde previously recorded deferred Peruvian income tax liabilities for income taxes that would become payable if the reinvested profits used to fund the initial Cerro Verde sulfide expansion were distributed prior to the expiration of Cerro Verde's 1998 stability agreement on December 31, 2013. Because reinvested profits at Cerro Verde were not expected to be distributed prior to December 31, 2013, a net deferred income tax liability of
$234 million
was reversed and recognized as an income tax benefit in 2012.
|
d.
|
Benefit from the use of federal operating loss carryforwards acquired as part of the oil and gas acquisitions.
|
a.
|
Includes a net charge of
$16 million
related to a change in U.S. federal income tax law.
|
b.
|
Includes charges related to changes in Chilean and Peruvian tax rules of
$54 million
and
$24 million
, respectively.
|
c.
|
Includes a net charge of
$221 million
related to the sale of Candelaria/Ojos.
|
d.
|
Includes a net tax benefit of
$199 million
as a result of the oil and gas acquisitions.
|
e.
|
Includes the reversal of Cerro Verde's deferred income tax liability of
$234 million
.
|
|
December 31,
|
||||||
|
2014
|
|
2013
|
||||
Deferred tax assets:
|
|
|
|
||||
Foreign tax credits
|
$
|
2,306
|
|
|
$
|
2,144
|
|
Accrued expenses
|
1,047
|
|
|
1,098
|
|
||
Minimum tax credits
|
737
|
|
|
603
|
|
||
Net operating loss carryforwards
|
590
|
|
|
925
|
|
||
Employee benefit plans
|
422
|
|
|
443
|
|
||
Other
|
734
|
|
|
557
|
|
||
Deferred tax assets
|
5,836
|
|
|
5,770
|
|
||
Valuation allowances
|
(2,434
|
)
|
|
(2,487
|
)
|
||
Net deferred tax assets
|
3,402
|
|
|
3,283
|
|
||
|
|
|
|
||||
Deferred tax liabilities:
|
|
|
|
||||
Property, plant, equipment and mining development costs
|
(5,331
|
)
|
|
(4,887
|
)
|
||
Oil and gas properties
|
(3,392
|
)
|
|
(4,708
|
)
|
||
Undistributed earnings
|
(807
|
)
|
|
(936
|
)
|
||
Other
|
(185
|
)
|
|
(34
|
)
|
||
Total deferred tax liabilities
|
(9,715
|
)
|
|
(10,565
|
)
|
||
Net deferred tax liabilities
|
$
|
(6,313
|
)
|
|
$
|
(7,282
|
)
|
|
Unrecognized
Tax Benefits
|
|
Interest
|
|
Penalties
|
||||||
Balance at January 1, 2013
|
$
|
138
|
|
|
$
|
31
|
|
|
$
|
—
|
|
Additions:
|
|
|
|
|
|
||||||
Prior year tax positions
|
18
|
|
|
*
|
|
|
*
|
|
|||
Current year tax positions
|
14
|
|
|
*
|
|
|
*
|
|
|||
Acquisition of PXP
|
5
|
|
|
*
|
|
|
*
|
|
|||
Interest and penalties
|
—
|
|
|
7
|
|
|
—
|
|
|||
Decreases:
|
|
|
|
|
|
||||||
Prior year tax positions
|
(37
|
)
|
|
*
|
|
|
*
|
|
|||
Current year tax positions
|
—
|
|
|
*
|
|
|
*
|
|
|||
Settlements with tax authorities
|
—
|
|
|
*
|
|
|
*
|
|
|||
Lapse of statute of limitations
|
(28
|
)
|
|
*
|
|
|
*
|
|
|||
Interest and penalties
|
—
|
|
|
(17
|
)
|
|
—
|
|
|||
Balance at December 31, 2013
|
110
|
|
|
21
|
|
|
—
|
|
|||
Additions:
|
|
|
|
|
|
||||||
Prior year tax positions
|
4
|
|
|
*
|
|
|
*
|
|
|||
Current year tax positions
|
11
|
|
|
*
|
|
|
*
|
|
|||
Interest and penalties
|
—
|
|
|
1
|
|
|
—
|
|
|||
Decreases:
|
|
|
|
|
|
||||||
Prior year tax positions
|
(12
|
)
|
|
*
|
|
|
*
|
|
|||
Current year tax positions
|
—
|
|
|
*
|
|
|
*
|
|
|||
Settlements with tax authorities
|
(9
|
)
|
|
*
|
|
|
*
|
|
|||
Lapse of statute of limitations
|
—
|
|
|
*
|
|
|
*
|
|
|||
Interest and penalties
|
—
|
|
|
(7
|
)
|
|
—
|
|
|||
Balance at December 31, 2014
|
$
|
104
|
|
|
$
|
15
|
|
|
$
|
—
|
|
Jurisdiction
|
|
Years Subject to Examination
|
|
Additional Open Years
|
U.S. Federal
|
|
2007-2012
|
|
2013-2014
|
Indonesia
|
|
2006-2008, 2011-2012
|
|
2010, 2013-2014
|
Peru
|
|
2010
|
|
2011-2014
|
Chile
|
|
2012-2013
|
|
2014
|
DRC
|
|
2013
|
|
2012, 2014
|
|
2014
|
|
2013
|
|
2012
|
||||||
Balance at beginning of year
|
$
|
1,167
|
|
|
$
|
1,222
|
|
|
$
|
1,453
|
|
Accretion expense
a
|
77
|
|
|
79
|
|
|
80
|
|
|||
Additions
|
16
|
|
|
73
|
|
|
70
|
|
|||
Reductions
b
|
(6
|
)
|
|
(77
|
)
|
|
(182
|
)
|
|||
Spending
|
(80
|
)
|
|
(130
|
)
|
|
(199
|
)
|
|||
Balance at end of year
|
1,174
|
|
|
1,167
|
|
|
1,222
|
|
|||
Less current portion
|
(105
|
)
|
|
(121
|
)
|
|
(186
|
)
|
|||
Long-term portion
|
$
|
1,069
|
|
|
$
|
1,046
|
|
|
$
|
1,036
|
|
a.
|
Represents accretion of the fair value of environmental obligations assumed in the 2007 acquisition of FMC, which were determined on a discounted cash flow basis.
|
b.
|
Reductions primarily reflect revisions for changes in the anticipated scope and timing of projects and other noncash adjustments.
|
|
2014
|
|
2013
|
|
2012
|
||||||
Balance at beginning of year
|
$
|
2,328
|
|
|
$
|
1,146
|
|
|
$
|
921
|
|
Liabilities assumed in the acquisitions of PXP and MMR
a
|
—
|
|
|
1,028
|
|
|
—
|
|
|||
Liabilities incurred
|
430
|
|
b
|
45
|
|
|
6
|
|
|||
Settlements and revisions to cash flow estimates, net
|
65
|
|
|
123
|
|
|
211
|
|
|||
Accretion expense
|
117
|
|
|
95
|
|
|
55
|
|
|||
Dispositions
|
(61
|
)
|
|
—
|
|
|
—
|
|
|||
Spending
|
(99
|
)
|
|
(107
|
)
|
|
(47
|
)
|
|||
Other
|
(11
|
)
|
|
(2
|
)
|
|
—
|
|
|||
Balance at end of year
|
2,769
|
|
|
2,328
|
|
|
1,146
|
|
|||
Less current portion
|
(191
|
)
|
|
(115
|
)
|
|
(55
|
)
|
|||
Long-term portion
|
$
|
2,578
|
|
|
$
|
2,213
|
|
|
$
|
1,091
|
|
a.
|
The fair value of AROs assumed in the acquisitions of PXP and MMR (
$741 million
and
$287 million
, respectively) were estimated based on projected cash flows, an estimated long-term annual inflation rate of
2.5 percent
, and discount rates based on FCX's estimated credit-adjusted, risk-free interest rates ranging from
1.3 percent
to
6.3 percent
.
|
b.
|
Primarily reflects revisions to the closure approach to reclaim an overburden stockpile in Indonesia.
|
Tax Year
|
|
Tax Assessment
|
|
Penalty and Interest Assessment
|
|
Total
|
|
||||||
2002 to 2005
|
|
$
|
16
|
|
|
$
|
49
|
|
|
$
|
65
|
|
|
2006
|
|
7
|
|
|
45
|
|
|
52
|
|
|
|||
2007
|
|
12
|
|
|
18
|
|
|
30
|
|
|
|||
2008
|
|
21
|
|
|
13
|
|
|
34
|
|
|
|||
2009
|
|
59
|
|
|
49
|
|
|
108
|
|
|
|||
2010
|
|
63
|
|
|
85
|
|
|
148
|
|
a
|
|||
2014
|
|
5
|
|
|
—
|
|
|
5
|
|
|
|||
|
|
$
|
183
|
|
|
$
|
259
|
|
|
$
|
442
|
|
|
a.
|
The tax assessment for the year 2010 was issued in February 2015.
|
Tax Year
|
|
Tax Assessment
|
|
Interest Assessment
|
|
Total
|
||||||
2005
|
|
$
|
103
|
|
|
$
|
49
|
|
|
$
|
152
|
|
2006
|
|
22
|
|
|
10
|
|
|
32
|
|
|||
2007
|
|
91
|
|
|
44
|
|
|
135
|
|
|||
2008
|
|
62
|
|
|
52
|
|
|
114
|
|
|||
2011
|
|
56
|
|
|
13
|
|
|
69
|
|
|||
2012
|
|
137
|
|
|
—
|
|
|
137
|
|
|||
|
|
$
|
471
|
|
|
$
|
168
|
|
|
$
|
639
|
|
|
2014
|
|
2013
|
|
2012
|
||||||
Copper futures and swap contracts:
|
|
|
|
|
|
||||||
Unrealized (losses) gains:
|
|
|
|
|
|
||||||
Derivative financial instruments
|
$
|
(12
|
)
|
|
$
|
1
|
|
|
$
|
15
|
|
Hedged item – firm sales commitments
|
12
|
|
|
(1
|
)
|
|
(15
|
)
|
|||
|
|
|
|
|
|
||||||
Realized losses:
|
|
|
|
|
|
||||||
Matured derivative financial instruments
|
(9
|
)
|
|
(17
|
)
|
|
(2
|
)
|
|
Open
|
|
Average Price
Per Unit
|
|
Maturities
|
|||||||
|
Positions
|
|
Contract
|
|
Market
|
|
Through
|
|||||
Embedded derivatives in provisional sales contracts:
|
|
|
|
|
|
|
|
|||||
Copper (millions of pounds)
|
574
|
|
|
$
|
3.02
|
|
|
$
|
2.86
|
|
|
May 2015
|
Gold (thousands of ounces)
|
178
|
|
|
1,207
|
|
|
1,200
|
|
|
April 2015
|
||
Embedded derivatives in provisional purchase contracts:
|
|
|
|
|
|
|
|
|||||
Copper (millions of pounds)
|
101
|
|
|
3.01
|
|
|
2.87
|
|
|
April 2015
|
a.
|
The average strike prices do not reflect any premiums to purchase the put options.
|
b.
|
If the index price is less than the per barrel floor, FCX receives the difference between the per barrel floor and the index price up to a maximum of
$20
per barrel less the option premium. If the index price is at or above the per barrel floor, FCX pays the option premium and no cash settlement is received.
|
|
2014
|
|
2013
|
|
2012
|
|||||||
Embedded derivatives in provisional copper and gold
|
|
|
|
|
|
|||||||
sales contracts
a
|
$
|
(289
|
)
|
|
$
|
(136
|
)
|
|
$
|
77
|
|
|
Crude oil options and swaps
a
|
513
|
|
|
(344
|
)
|
|
—
|
|
||||
Natural gas swaps
a
|
(8
|
)
|
|
10
|
|
—
|
|
—
|
|
|||
Copper forward contracts
b
|
(4
|
)
|
|
3
|
|
|
15
|
|
a.
|
Amounts recorded in revenues.
|
b.
|
Amounts recorded in cost of sales as production and delivery costs.
|
|
December 31,
|
||||||
|
2014
|
|
2013
|
||||
Commodity Derivative Assets:
|
|
|
|
||||
Derivatives designated as hedging instruments:
|
|
|
|
||||
Copper futures and swap contracts
a
|
$
|
—
|
|
|
$
|
6
|
|
Derivatives not designated as hedging instruments:
|
|
|
|
||||
Embedded derivatives in provisional copper and gold
|
|
|
|
|
|
||
sales/purchase contracts
|
15
|
|
|
63
|
|
||
Crude oil options
b
|
316
|
|
|
—
|
|
||
Total derivative assets
|
$
|
331
|
|
|
$
|
69
|
|
Commodity Derivative Liabilities:
|
|
|
|
||||
Derivatives designated as hedging instruments:
|
|
|
|
||||
Copper futures and swap contracts
a
|
$
|
7
|
|
|
$
|
—
|
|
Derivatives not designated as hedging instruments:
|
|
|
|
||||
Embedded derivatives in provisional copper and gold
|
|
|
|
||||
sales/purchase contracts
|
93
|
|
|
16
|
|
||
Crude oil options
b
|
—
|
|
|
309
|
|
||
Natural gas swaps
|
—
|
|
|
4
|
|
||
Copper forward contracts
|
—
|
|
|
1
|
|
||
Total derivative liabilities
|
$
|
100
|
|
|
$
|
330
|
|
a.
|
FCX had paid
$10 million
to brokers at
December 31, 2014
, and
$1 million
at
December 31, 2013
, for margin requirements (recorded in other current assets).
|
b.
|
Includes
$210 million
at
December 31, 2014
, and
$444 million
at
December 31, 2013
, for deferred premiums and accrued interest.
|
|
|
Assets at December 31,
|
|
Liabilities at December 31,
|
||||||||||||
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
Gross amounts recognized:
|
|
|
|
|
|
|
|
|
||||||||
Commodity contracts:
|
|
|
|
|
|
|
|
|
||||||||
Embedded derivatives on provisional
|
|
|
|
|
|
|
|
|
||||||||
sales/purchase contracts
|
|
$
|
15
|
|
|
$
|
63
|
|
|
$
|
93
|
|
|
$
|
16
|
|
Crude oil and natural gas derivatives
a
|
|
316
|
|
|
—
|
|
|
—
|
|
|
313
|
|
||||
Copper derivatives
|
|
—
|
|
|
6
|
|
|
7
|
|
|
1
|
|
||||
|
|
331
|
|
|
69
|
|
|
100
|
|
|
330
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Less gross amounts of offset:
|
|
|
|
|
|
|
|
|
||||||||
Commodity contracts:
|
|
|
|
|
|
|
|
|
||||||||
Embedded derivatives on provisional
|
|
|
|
|
|
|
|
|
||||||||
sales/purchase contracts
|
|
1
|
|
|
10
|
|
|
1
|
|
|
10
|
|
||||
Crude oil and natural gas derivatives
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Copper derivatives
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
|
|
1
|
|
|
10
|
|
|
1
|
|
|
10
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Net amounts presented in balance sheet:
|
|
|
|
|
|
|
|
|
||||||||
Commodity contracts:
|
|
|
|
|
|
|
|
|
||||||||
Embedded derivatives on provisional
|
|
|
|
|
|
|
|
|
||||||||
sales/purchase contracts
|
|
14
|
|
|
53
|
|
|
92
|
|
|
6
|
|
||||
Crude oil and natural gas derivatives
a
|
|
316
|
|
|
—
|
|
|
—
|
|
|
313
|
|
||||
Copper derivatives
|
|
—
|
|
|
6
|
|
|
7
|
|
|
1
|
|
||||
|
|
$
|
330
|
|
|
$
|
59
|
|
|
$
|
99
|
|
|
$
|
320
|
|
|
|
|
|
|
|
|
|
|
||||||||
Balance sheet classification:
|
|
|
|
|
|
|
|
|
||||||||
Trade accounts receivable
|
|
$
|
5
|
|
|
$
|
53
|
|
|
$
|
56
|
|
|
$
|
—
|
|
Other current assets
|
|
316
|
|
|
6
|
|
|
—
|
|
|
—
|
|
||||
Accounts payable and accrued liabilities
|
|
9
|
|
|
—
|
|
|
43
|
|
|
205
|
|
||||
Other liabilities
|
|
—
|
|
|
—
|
|
|
—
|
|
|
115
|
|
||||
|
|
$
|
330
|
|
|
$
|
59
|
|
|
$
|
99
|
|
|
$
|
320
|
|
a.
|
Includes only crude oil derivatives at December 31, 2014.
|
|
At December 31, 2014
|
||||||||||||||||||
|
Carrying
|
|
Fair Value
|
||||||||||||||||
|
Amount
|
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
||||||||||
Investment securities:
a,b,c
|
|
|
|
|
|
|
|
|
|
||||||||||
U.S. core fixed income fund
|
$
|
23
|
|
|
$
|
23
|
|
|
$
|
—
|
|
|
$
|
23
|
|
|
$
|
—
|
|
Money market funds
|
20
|
|
|
20
|
|
|
20
|
|
|
—
|
|
|
—
|
|
|||||
Equity securities
|
3
|
|
|
3
|
|
|
3
|
|
|
—
|
|
|
—
|
|
|||||
Total
|
46
|
|
|
46
|
|
|
23
|
|
|
23
|
|
|
—
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Legally restricted funds:
a,b,d
|
|
|
|
|
|
|
|
|
|
||||||||||
U.S. core fixed income fund
|
52
|
|
|
52
|
|
|
—
|
|
|
52
|
|
|
—
|
|
|||||
Government bonds and notes
|
39
|
|
|
39
|
|
|
—
|
|
|
39
|
|
|
—
|
|
|||||
Corporate bonds
|
27
|
|
|
27
|
|
|
—
|
|
|
27
|
|
|
—
|
|
|||||
Government mortgage-backed securities
|
25
|
|
|
25
|
|
|
—
|
|
|
25
|
|
|
—
|
|
|||||
Asset-backed securities
|
17
|
|
|
17
|
|
|
—
|
|
|
17
|
|
|
—
|
|
|||||
Money market funds
|
11
|
|
|
11
|
|
|
11
|
|
|
—
|
|
|
—
|
|
|||||
Municipal bonds
|
1
|
|
|
1
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|||||
Total
|
172
|
|
|
172
|
|
|
11
|
|
|
161
|
|
|
—
|
|
Derivatives:
a,e
|
|
|
|
|
|
|
|
|
|
||||||||||
Embedded derivatives in provisional sales/purchase
|
|
|
|
|
|
|
|
|
|
||||||||||
contracts in a gross asset position
|
15
|
|
|
15
|
|
|
—
|
|
|
15
|
|
|
—
|
|
|||||
Crude oil options
|
316
|
|
|
316
|
|
|
—
|
|
|
—
|
|
|
316
|
|
|||||
Total
|
331
|
|
|
331
|
|
|
—
|
|
|
15
|
|
|
316
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Total assets
|
|
|
$
|
549
|
|
|
$
|
34
|
|
|
$
|
199
|
|
|
$
|
316
|
|
||
|
|
|
|
|
|
|
|
|
|
||||||||||
Liabilities
|
|
|
|
|
|
|
|
|
|
||||||||||
Derivatives:
a,e
|
|
|
|
|
|
|
|
|
|
||||||||||
Embedded derivatives in provisional sales/purchase
|
|
|
|
|
|
|
|
|
|
||||||||||
contracts in a gross liability position
|
$
|
93
|
|
|
$
|
93
|
|
|
$
|
—
|
|
|
$
|
93
|
|
|
$
|
—
|
|
Copper futures and swap contracts
|
7
|
|
|
7
|
|
|
6
|
|
|
1
|
|
|
—
|
|
|||||
Total
|
100
|
|
|
100
|
|
|
6
|
|
|
94
|
|
|
—
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Long-term debt, including current portion
f
|
18,970
|
|
|
18,735
|
|
|
—
|
|
|
18,735
|
|
|
—
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Total liabilities
|
|
|
$
|
18,835
|
|
|
$
|
6
|
|
|
$
|
18,829
|
|
|
$
|
—
|
|
|
At December 31, 2013
|
||||||||||||||||||
|
Carrying
|
|
Fair Value
|
||||||||||||||||
|
Amount
|
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
||||||||||
Investment securities:
a,b
|
|
|
|
|
|
|
|
|
|
||||||||||
U.S. core fixed income fund
|
$
|
21
|
|
|
$
|
21
|
|
|
$
|
—
|
|
|
$
|
21
|
|
|
$
|
—
|
|
Money market funds
|
18
|
|
|
18
|
|
|
18
|
|
|
—
|
|
|
—
|
|
|||||
Equity securities
|
5
|
|
|
5
|
|
|
5
|
|
|
—
|
|
|
—
|
|
|||||
Total
|
44
|
|
|
44
|
|
|
23
|
|
|
21
|
|
|
—
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Legally restricted funds:
a,b,d
|
|
|
|
|
|
|
|
|
|
||||||||||
U.S. core fixed income fund
|
48
|
|
|
48
|
|
|
—
|
|
|
48
|
|
|
—
|
|
|||||
Government mortgage-backed securities
|
34
|
|
|
34
|
|
|
—
|
|
|
34
|
|
|
—
|
|
|||||
Corporate bonds
|
28
|
|
|
28
|
|
|
—
|
|
|
28
|
|
|
—
|
|
|||||
Government bonds and notes
|
28
|
|
|
28
|
|
|
—
|
|
|
28
|
|
|
—
|
|
|||||
Money market funds
|
28
|
|
|
28
|
|
|
28
|
|
|
—
|
|
|
—
|
|
|||||
Asset-backed securities
|
15
|
|
|
15
|
|
|
—
|
|
|
15
|
|
|
—
|
|
|||||
Municipal bonds
|
1
|
|
|
1
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|||||
Total
|
182
|
|
|
182
|
|
|
28
|
|
|
154
|
|
|
—
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Derivatives:
a,e
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Embedded derivatives in provisional sales/purchase
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
contracts in a gross asset position
|
63
|
|
|
63
|
|
|
—
|
|
|
63
|
|
|
—
|
|
|||||
Copper futures and swap contracts
|
6
|
|
|
6
|
|
|
5
|
|
|
1
|
|
|
—
|
|
|||||
Total
|
69
|
|
|
69
|
|
|
5
|
|
|
64
|
|
|
—
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Total assets
|
|
|
$
|
295
|
|
|
$
|
56
|
|
|
$
|
239
|
|
|
$
|
—
|
|
||
|
|
|
|
|
|
|
|
|
|
||||||||||
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Derivatives:
a
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Embedded derivatives in provisional sales/purchase
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
contracts in a gross liability position
e
|
$
|
16
|
|
|
$
|
16
|
|
|
$
|
—
|
|
|
$
|
16
|
|
|
$
|
—
|
|
Crude oil options
e
|
309
|
|
|
309
|
|
|
—
|
|
|
—
|
|
|
309
|
|
|||||
Natural gas swaps
e
|
4
|
|
|
4
|
|
|
—
|
|
|
4
|
|
|
—
|
|
|||||
Copper forward contracts
e
|
1
|
|
|
1
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|||||
Plains Offshore warrants
g
|
2
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|||||
Total
|
332
|
|
|
332
|
|
|
1
|
|
|
20
|
|
|
311
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Long-term debt, including current portion
f
|
20,706
|
|
|
20,487
|
|
|
—
|
|
|
20,487
|
|
|
—
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Total liabilities
|
|
|
$
|
20,819
|
|
|
$
|
1
|
|
|
$
|
20,507
|
|
|
$
|
311
|
|
a.
|
Recorded at fair value.
|
b.
|
Current portion included in other current assets and long-term portion included in other assets.
|
c.
|
Excludes
$115 million
of time deposits (which approximated fair value) at
December 31, 2014
(included in other assets), associated with an assurance bond to support PT-FI's commitment for smelter development in Indonesia (refer to Note
13
for further discussion).
|
d.
|
Excludes time deposits (which approximated fair value) of
$17 million
(included in other current assets) associated with a customs audit assessment and a reclamation guarantee at PT-FI at
December 31, 2014
, and
$15 million
included in other current assets and
$210 million
in other assets at
December 31, 2013
, associated with the Cerro Verde royalty dispute (refer to Note
12
for further discussion).
|
e.
|
Refer to Note
14
for further discussion and balance sheet classifications. Crude oil options were net of
$210 million
at
December 31, 2014
, and
$444 million
at
December 31, 2013
, for deferred premiums and accrued interest.
|
f.
|
Recorded at cost except for debt assumed in acquisitions, which are recorded at fair value at the respective acquisition dates.
|
g.
|
Included in other liabilities.
|
Fair value at January 1, 2013
|
$
|
—
|
|
|
Crude oil options assumed in the PXP acquisition
|
(83
|
)
|
|
|
Net realized losses
|
(38
|
)
|
a
|
|
Net unrealized losses included in earnings related to liabilities still held at the end of the period
|
(230
|
)
|
b
|
|
Settlement payments
|
42
|
|
|
|
Fair value at December 31, 2013
|
$
|
(309
|
)
|
|
Net realized losses
|
(42
|
)
|
a
|
|
Net unrealized gains included in earnings related to assets still held at the end of the period
|
430
|
|
b
|
|
Settlement payments
|
237
|
|
|
|
Fair value at December 31, 2014
|
$
|
316
|
|
|
a.
|
Includes net realized losses of
$37 million
recorded in revenues in 2013 and
$41 million
in
2014
, and
$1 million
of interest expense associated with deferred premiums in 2013 and
2014
.
|
b.
|
Includes unrealized losses (gains) of
$228 million
recorded in revenues in 2013 and
$(432) million
in
2014
, and
$2 million
of interest expense associated with deferred premiums in 2013 and
2014
.
|
|
2014
|
|
2013
|
|
2012
|
||||||
Refined copper products
|
$
|
9,451
|
|
|
$
|
9,178
|
|
|
$
|
9,699
|
|
Copper in concentrates
a
|
3,366
|
|
|
5,328
|
|
|
4,589
|
|
|||
Gold
|
1,584
|
|
|
1,656
|
|
|
1,741
|
|
|||
Molybdenum
|
1,207
|
|
|
1,110
|
|
|
1,187
|
|
|||
Oil
|
4,233
|
|
|
2,310
|
|
|
—
|
|
|||
Other
|
1,597
|
|
|
1,339
|
|
|
794
|
|
|||
Total
|
$
|
21,438
|
|
|
$
|
20,921
|
|
|
$
|
18,010
|
|
a.
|
Amounts are net of treatment and refining charges totaling
$374 million
for
2014
,
$400 million
for
2013
and
$311 million
for
2012
.
|
|
December 31,
|
||||||||||
|
2014
|
|
2013
|
|
2012
|
||||||
Long-lived assets:
a
|
|
|
|
|
|
||||||
United States
|
$
|
29,468
|
|
|
$
|
32,969
|
|
b
|
$
|
8,689
|
|
Indonesia
|
6,961
|
|
|
5,799
|
|
|
5,127
|
|
|||
Peru
|
6,848
|
|
|
5,181
|
|
|
3,933
|
|
|||
Democratic Republic of Congo
|
4,071
|
|
|
3,994
|
|
|
3,926
|
|
|||
Chile
|
1,542
|
|
c
|
2,699
|
|
|
2,587
|
|
|||
Other
|
522
|
|
|
562
|
|
|
327
|
|
|||
Total
|
$
|
49,412
|
|
|
$
|
51,204
|
|
|
$
|
24,589
|
|
a.
|
Long-lived assets exclude deferred tax assets, intangible assets and goodwill.
|
b.
|
Increased from 2012 primarily because of the PXP and MMR acquisitions.
|
c.
|
Decreased from 2013 primarily because of the sale of Candelaria/Ojos.
|
a.
|
Revenues are attributed to countries based on the location of the customer.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||
|
Mining Operations
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
North America Copper Mines
|
|
South America
|
|
Indonesia
|
|
Africa
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Atlantic
|
|
Other
|
|
|
|
|
|
Corporate,
|
|
|
||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Molyb-
|
|
|
|
Copper
|
|
Mining
|
|
|
|
U.S.
|
|
Other
|
|
|
||||||||||||||||||||||||||||||||
|
|
|
Other
|
|
|
|
Cerro
|
|
Other
|
|
|
|
|
|
|
|
denum
|
|
Rod &
|
|
Smelting
|
|
& Elimi-
|
|
Total
|
|
Oil & Gas
|
|
& Elimi-
|
|
FCX
|
||||||||||||||||||||||||||||||||
|
Morenci
|
|
Mines
|
|
Total
|
|
Verde
|
|
Mines
|
|
Total
|
|
Grasberg
|
|
Tenke
|
|
Mines
|
|
Refining
|
|
& Refining
|
|
nations
|
|
Mining
|
|
Operations
|
|
nations
|
|
Total
|
||||||||||||||||||||||||||||||||
Year Ended December 31, 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||
Unaffiliated customers
|
$
|
364
|
|
|
$
|
336
|
|
|
$
|
700
|
|
|
$
|
1,282
|
|
|
$
|
1,740
|
|
|
$
|
3,022
|
|
|
$
|
2,848
|
|
a
|
$
|
1,437
|
|
|
$
|
—
|
|
|
$
|
4,626
|
|
|
$
|
2,391
|
|
|
$
|
1,704
|
|
b
|
$
|
16,728
|
|
|
$
|
4,710
|
|
c
|
$
|
—
|
|
|
$
|
21,438
|
|
Intersegment
|
1,752
|
|
|
3,164
|
|
|
4,916
|
|
|
206
|
|
|
304
|
|
|
510
|
|
|
223
|
|
|
121
|
|
|
587
|
|
|
29
|
|
|
21
|
|
|
(6,407
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||||||||||
Production and delivery
|
1,287
|
|
|
2,153
|
|
|
3,440
|
|
|
741
|
|
|
1,198
|
|
|
1,939
|
|
|
1,988
|
|
|
770
|
|
|
328
|
|
|
4,633
|
|
|
2,356
|
|
|
(4,789
|
)
|
|
10,665
|
|
|
1,237
|
|
|
2
|
|
|
11,904
|
|
||||||||||||||||
Depreciation, depletion and amortization
|
168
|
|
|
316
|
|
|
484
|
|
|
159
|
|
|
208
|
|
|
367
|
|
|
266
|
|
|
228
|
|
|
92
|
|
|
10
|
|
|
41
|
|
|
70
|
|
|
1,558
|
|
|
2,291
|
|
|
14
|
|
|
3,863
|
|
||||||||||||||||
Impairment of oil and gas properties
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,737
|
|
|
—
|
|
|
3,737
|
|
||||||||||||||||
Selling, general and administrative expenses
|
2
|
|
|
3
|
|
|
5
|
|
|
3
|
|
|
3
|
|
|
6
|
|
|
98
|
|
|
12
|
|
|
—
|
|
|
—
|
|
|
17
|
|
|
25
|
|
|
163
|
|
|
207
|
|
|
222
|
|
|
592
|
|
||||||||||||||||
Mining exploration and research expenses
|
—
|
|
|
8
|
|
|
8
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
118
|
|
|
126
|
|
|
—
|
|
|
—
|
|
|
126
|
|
||||||||||||||||
Environmental obligations and shutdown costs
|
—
|
|
|
(5
|
)
|
|
(5
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
123
|
|
|
118
|
|
|
—
|
|
|
1
|
|
|
119
|
|
||||||||||||||||
Goodwill impairment
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,717
|
|
|
—
|
|
|
1,717
|
|
||||||||||||||||
Net gain on sales of assets
|
—
|
|
|
(14
|
)
|
|
(14
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(703
|
)
|
d
|
(717
|
)
|
|
—
|
|
|
—
|
|
|
(717
|
)
|
||||||||||||||||
Operating income (loss)
|
659
|
|
|
1,039
|
|
|
1,698
|
|
|
585
|
|
|
635
|
|
|
1,220
|
|
|
719
|
|
|
548
|
|
|
167
|
|
|
12
|
|
|
(2
|
)
|
|
453
|
|
|
4,815
|
|
|
(4,479
|
)
|
|
(239
|
)
|
|
97
|
|
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||
Interest expense, net
|
3
|
|
|
1
|
|
|
4
|
|
|
1
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
13
|
|
|
84
|
|
|
102
|
|
|
241
|
|
|
287
|
|
|
630
|
|
||||||||||||||||
Provision for (benefit from) income taxes
|
—
|
|
|
—
|
|
|
—
|
|
|
265
|
|
|
266
|
|
|
531
|
|
|
293
|
|
|
116
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
221
|
|
d
|
1,161
|
|
|
—
|
|
|
(837
|
)
|
|
324
|
|
||||||||||||||||
Total assets at December 31, 2014
|
3,780
|
|
|
5,611
|
|
|
9,391
|
|
|
7,513
|
|
|
1,993
|
|
|
9,506
|
|
|
8,626
|
|
|
5,073
|
|
|
2,095
|
|
|
235
|
|
|
898
|
|
|
1,319
|
|
|
37,143
|
|
|
20,834
|
|
|
818
|
|
|
58,795
|
|
||||||||||||||||
Capital expenditures
|
826
|
|
|
143
|
|
|
969
|
|
|
1,691
|
|
|
94
|
|
|
1,785
|
|
|
948
|
|
|
159
|
|
|
54
|
|
|
4
|
|
|
17
|
|
|
52
|
|
|
3,988
|
|
|
3,205
|
|
|
22
|
|
|
7,215
|
|
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||
Year Ended December 31, 2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||
Unaffiliated customers
|
$
|
244
|
|
|
$
|
326
|
|
|
$
|
570
|
|
|
$
|
1,473
|
|
|
$
|
2,379
|
|
|
$
|
3,852
|
|
|
$
|
3,751
|
|
a
|
$
|
1,590
|
|
|
$
|
—
|
|
|
$
|
4,995
|
|
|
$
|
2,027
|
|
|
$
|
1,516
|
|
b
|
$
|
18,301
|
|
|
$
|
2,616
|
|
c
|
$
|
4
|
|
|
$
|
20,921
|
|
Intersegment
|
1,673
|
|
|
2,940
|
|
|
4,613
|
|
|
360
|
|
|
273
|
|
|
633
|
|
|
336
|
|
|
47
|
|
|
522
|
|
|
27
|
|
|
14
|
|
|
(6,192
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||||||||||
Production and delivery
|
1,233
|
|
|
2,033
|
|
|
3,266
|
|
|
781
|
|
|
1,288
|
|
|
2,069
|
|
|
2,309
|
|
|
754
|
|
|
317
|
|
|
4,990
|
|
|
2,054
|
|
|
(4,608
|
)
|
|
11,151
|
|
|
682
|
|
|
7
|
|
|
11,840
|
|
||||||||||||||||
Depreciation, depletion and amortization
|
133
|
|
|
269
|
|
|
402
|
|
|
152
|
|
|
194
|
|
|
346
|
|
|
247
|
|
|
246
|
|
|
82
|
|
|
9
|
|
|
42
|
|
|
48
|
|
|
1,422
|
|
|
1,364
|
|
|
11
|
|
|
2,797
|
|
||||||||||||||||
Selling, general and administrative expenses
|
2
|
|
|
3
|
|
|
5
|
|
|
3
|
|
|
4
|
|
|
7
|
|
|
110
|
|
|
12
|
|
|
—
|
|
|
—
|
|
|
20
|
|
|
29
|
|
|
183
|
|
|
120
|
|
|
354
|
|
|
657
|
|
||||||||||||||||
Mining exploration and research expenses
|
—
|
|
|
5
|
|
|
5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
193
|
|
|
199
|
|
|
—
|
|
|
11
|
|
|
210
|
|
||||||||||||||||
Environmental obligations and shutdown costs
|
—
|
|
|
(1
|
)
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
67
|
|
|
66
|
|
|
—
|
|
|
—
|
|
|
66
|
|
||||||||||||||||
Operating income (loss)
|
549
|
|
|
957
|
|
|
1,506
|
|
|
897
|
|
|
1,166
|
|
|
2,063
|
|
|
1,420
|
|
|
625
|
|
|
123
|
|
|
23
|
|
|
(75
|
)
|
e
|
(405
|
)
|
|
5,280
|
|
|
450
|
|
|
(379
|
)
|
|
5,351
|
|
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||
Interest expense, net
|
3
|
|
|
1
|
|
|
4
|
|
|
2
|
|
|
1
|
|
|
3
|
|
|
12
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
16
|
|
|
80
|
|
|
117
|
|
|
181
|
|
|
220
|
|
|
518
|
|
||||||||||||||||
Provision for income taxes
|
—
|
|
|
—
|
|
|
—
|
|
|
316
|
|
|
404
|
|
|
720
|
|
|
603
|
|
|
131
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,454
|
|
|
—
|
|
|
21
|
|
f
|
1,475
|
|
||||||||||||||||
Total assets at December 31, 2013
|
3,110
|
|
|
5,810
|
|
|
8,920
|
|
|
6,584
|
|
|
3,996
|
|
|
10,580
|
|
|
7,437
|
|
|
4,849
|
|
|
2,107
|
|
|
239
|
|
|
1,039
|
|
|
1,003
|
|
|
36,174
|
|
|
26,252
|
|
|
1,047
|
|
|
63,473
|
|
||||||||||||||||
Capital expenditures
|
737
|
|
|
329
|
|
|
1,066
|
|
|
960
|
|
|
185
|
|
|
1,145
|
|
|
1,030
|
|
|
205
|
|
|
164
|
|
|
4
|
|
|
67
|
|
|
113
|
|
|
3,794
|
|
|
1,436
|
|
|
56
|
|
|
5,286
|
|
a.
|
Includes PT-FI's sales to PT Smelting totaling
$1.8 billion
in 2014 and
$1.7 billion
in 2013.
|
b.
|
Includes revenues from FCX's molybdenum sales company, which included sales of molybdenum produced by the molybdenum mines and by certain of the North and South America copper mines.
|
c.
|
Includes net mark-to-market gains (losses) associated with crude oil and natural gas derivative contracts totaling
$505 million
in 2014 and
$(334) million
for the period from June 1, 2013, to December 31, 2013.
|
d.
|
Includes a gain of
$671 million
for the sale of Candelaria/Ojos and related provision for income taxes of
$221 million
.
|
e.
|
Includes
$50 million
for shutdown costs associated with Atlantic Copper's scheduled
68
-day maintenance turnaround, which was completed in fourth-quarter 2013.
|
f.
|
Includes
$199 million
of net benefits resulting from oil and gas acquisitions.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||
|
Mining Operations
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
North America Copper Mines
|
|
South America
|
|
Indonesia
|
|
Africa
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Atlantic
|
|
Other
|
|
|
|
|
|
Corporate,
|
|
|
||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Molyb-
|
|
|
|
Copper
|
|
Mining
|
|
|
|
U.S.
|
|
Other
|
|
|
||||||||||||||||||||||||||||||||
|
|
|
Other
|
|
|
|
Cerro
|
|
Other
|
|
|
|
|
|
|
|
denum
|
|
Rod &
|
|
Smelting
|
|
& Elimi-
|
|
Total
|
|
Oil & Gas
|
|
& Elimi-
|
|
FCX
|
||||||||||||||||||||||||||||||||
|
Morenci
|
|
Mines
|
|
Total
|
|
Verde
|
|
Mines
|
|
Total
|
|
Grasberg
|
|
Tenke
|
|
Mines
|
|
Refining
|
|
& Refining
|
|
nations
|
|
Mining
|
|
Operations
|
|
nations
|
|
Total
|
||||||||||||||||||||||||||||||||
Year Ended December 31, 2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||
Unaffiliated customers
|
$
|
156
|
|
|
$
|
46
|
|
|
$
|
202
|
|
|
$
|
1,767
|
|
|
$
|
2,143
|
|
|
$
|
3,910
|
|
|
$
|
3,611
|
|
a
|
$
|
1,349
|
|
|
$
|
—
|
|
|
$
|
4,989
|
|
|
$
|
2,683
|
|
|
$
|
1,259
|
|
b
|
$
|
18,003
|
|
|
$
|
—
|
|
|
$
|
7
|
|
|
$
|
18,010
|
|
Intersegment
|
1,846
|
|
|
3,438
|
|
|
5,284
|
|
|
388
|
|
|
430
|
|
|
818
|
|
|
310
|
|
|
10
|
|
|
529
|
|
|
27
|
|
|
26
|
|
|
(7,004
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||||||||||
Production and delivery
|
1,076
|
|
|
1,857
|
|
|
2,933
|
|
|
813
|
|
|
1,301
|
|
|
2,114
|
|
|
2,349
|
|
|
615
|
|
|
320
|
|
|
4,993
|
|
|
2,640
|
|
|
(5,585
|
)
|
|
10,379
|
|
|
—
|
|
|
3
|
|
|
10,382
|
|
||||||||||||||||
Depreciation, depletion and amortization
|
122
|
|
|
238
|
|
|
360
|
|
|
139
|
|
|
148
|
|
|
287
|
|
|
212
|
|
|
176
|
|
|
59
|
|
|
9
|
|
|
42
|
|
|
27
|
|
|
1,172
|
|
|
—
|
|
|
7
|
|
|
1,179
|
|
||||||||||||||||
Selling, general and administrative expenses
|
2
|
|
|
2
|
|
|
4
|
|
|
3
|
|
|
3
|
|
|
6
|
|
|
121
|
|
|
6
|
|
|
—
|
|
|
—
|
|
|
19
|
|
|
18
|
|
|
174
|
|
|
—
|
|
|
257
|
|
|
431
|
|
||||||||||||||||
Mining exploration and research expenses
|
1
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
272
|
|
|
273
|
|
|
—
|
|
|
12
|
|
|
285
|
|
||||||||||||||||
Environmental obligations and shutdown costs
|
(11
|
)
|
|
(5
|
)
|
|
(16
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3
|
)
|
|
(19
|
)
|
|
—
|
|
|
(3
|
)
|
|
(22
|
)
|
||||||||||||||||
Gain on insurance settlement
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(59
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(59
|
)
|
|
—
|
|
|
—
|
|
|
(59
|
)
|
||||||||||||||||
Operating income (loss)
|
812
|
|
|
1,392
|
|
|
2,204
|
|
|
1,200
|
|
|
1,121
|
|
|
2,321
|
|
|
1,298
|
|
|
562
|
|
|
150
|
|
|
14
|
|
|
8
|
|
|
(474
|
)
|
|
6,083
|
|
|
—
|
|
|
(269
|
)
|
|
5,814
|
|
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||
Interest expense, net
|
1
|
|
|
—
|
|
|
1
|
|
|
7
|
|
|
—
|
|
|
7
|
|
|
5
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
12
|
|
|
81
|
|
|
107
|
|
|
—
|
|
|
79
|
|
|
186
|
|
||||||||||||||||
Provision for income taxes
|
—
|
|
|
—
|
|
|
—
|
|
|
228
|
|
c
|
329
|
|
|
557
|
|
|
497
|
|
|
112
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,166
|
|
|
—
|
|
|
344
|
|
|
1,510
|
|
||||||||||||||||
Total assets at December 31, 2012
|
2,445
|
|
|
5,703
|
|
|
8,148
|
|
|
5,821
|
|
|
4,342
|
|
|
10,163
|
|
|
6,591
|
|
|
4,622
|
|
|
2,018
|
|
|
242
|
|
|
992
|
|
|
614
|
|
|
33,390
|
|
|
—
|
|
|
2,050
|
|
|
35,440
|
|
||||||||||||||||
Capital expenditures
|
266
|
|
|
559
|
|
|
825
|
|
|
558
|
|
|
373
|
|
|
931
|
|
|
843
|
|
|
539
|
|
|
245
|
|
|
6
|
|
|
16
|
|
|
69
|
|
|
3,474
|
|
|
—
|
|
|
20
|
|
|
3,494
|
|
a.
|
Includes PT-FI's sales to PT Smelting totaling
$2.1 billion
in 2012.
|
b.
|
Includes revenues from FCX's molybdenum sales company, which included sales of molybdenum produced by the molybdenum mines and by certain of the North and South America copper mines.
|
c.
|
Includes a credit of
$234 million
for the reversal of a net deferred tax liability.
|
|
FCX
|
|
FM O&G LLC
|
|
Non-guarantor
|
|
|
|
Consolidated
|
||||||||||
|
Issuer
|
|
Guarantor
|
|
Subsidiaries
|
|
Eliminations
|
|
FCX
|
||||||||||
ASSETS
|
|
|
|
|
|
|
|
|
|
||||||||||
Current assets:
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
$
|
—
|
|
|
$
|
1
|
|
|
$
|
463
|
|
|
$
|
—
|
|
|
$
|
464
|
|
Accounts receivable
|
234
|
|
|
2,230
|
|
|
2,671
|
|
|
(2,572
|
)
|
|
2,563
|
|
|||||
Other current assets
|
89
|
|
|
404
|
|
|
5,525
|
|
|
—
|
|
|
6,018
|
|
|||||
Total current assets
|
323
|
|
|
2,635
|
|
|
8,659
|
|
|
(2,572
|
)
|
|
9,045
|
|
|||||
Property, plant, equipment and mining development costs, net
|
22
|
|
|
46
|
|
|
26,152
|
|
|
—
|
|
|
26,220
|
|
|||||
Oil and gas properties, net - full cost method:
|
|
|
|
|
|
|
|
|
|
||||||||||
Subject to amortization, less accumulated amortization
|
—
|
|
|
3,296
|
|
|
5,907
|
|
|
(16
|
)
|
|
9,187
|
|
|||||
Not subject to amortization
|
—
|
|
|
2,447
|
|
|
7,640
|
|
|
—
|
|
|
10,087
|
|
|||||
Investments in consolidated subsidiaries
|
28,765
|
|
|
6,460
|
|
|
10,246
|
|
|
(45,471
|
)
|
|
—
|
|
|||||
Other assets
|
9,012
|
|
|
3,947
|
|
|
4,084
|
|
|
(12,787
|
)
|
|
4,256
|
|
|||||
Total assets
|
$
|
38,122
|
|
|
$
|
18,831
|
|
|
$
|
62,688
|
|
|
$
|
(60,846
|
)
|
|
$
|
58,795
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
LIABILITIES AND EQUITY
|
|
|
|
|
|
|
|
|
|
||||||||||
Current liabilities
|
$
|
1,592
|
|
|
$
|
560
|
|
|
$
|
5,592
|
|
|
$
|
(2,572
|
)
|
|
$
|
5,172
|
|
Long-term debt, less current portion
|
15,028
|
|
|
3,874
|
|
|
8,902
|
|
|
(9,312
|
)
|
|
18,492
|
|
|||||
Deferred income taxes
|
3,161
|
|
a
|
—
|
|
|
3,237
|
|
|
—
|
|
|
6,398
|
|
|||||
Environmental and asset retirement obligations, less current portion
|
—
|
|
|
302
|
|
|
3,345
|
|
|
—
|
|
|
3,647
|
|
|||||
Other liabilities
|
54
|
|
|
3,372
|
|
|
1,910
|
|
|
(3,475
|
)
|
|
1,861
|
|
|||||
Total liabilities
|
19,835
|
|
|
8,108
|
|
|
22,986
|
|
|
(15,359
|
)
|
|
35,570
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Redeemable noncontrolling interest
|
—
|
|
|
—
|
|
|
751
|
|
|
—
|
|
|
751
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Equity:
|
|
|
|
|
|
|
|
|
|
||||||||||
Stockholders' equity
|
18,287
|
|
|
10,723
|
|
|
35,268
|
|
|
(45,991
|
)
|
|
18,287
|
|
|||||
Noncontrolling interests
|
—
|
|
|
—
|
|
|
3,683
|
|
|
504
|
|
|
4,187
|
|
|||||
Total equity
|
18,287
|
|
|
10,723
|
|
|
38,951
|
|
|
(45,487
|
)
|
|
22,474
|
|
|||||
Total liabilities and equity
|
$
|
38,122
|
|
|
$
|
18,831
|
|
|
$
|
62,688
|
|
|
$
|
(60,846
|
)
|
|
$
|
58,795
|
|
a.
|
All U.S. related deferred income taxes are recorded at the parent company.
|
|
FCX
|
|
FM O&G LLC
|
|
Non-guarantor
|
|
|
|
Consolidated
|
||||||||||
|
Issuer
|
|
Guarantor
|
|
Subsidiaries
|
|
Eliminations
|
|
FCX
|
||||||||||
ASSETS
|
|
|
|
|
|
|
|
|
|
||||||||||
Current assets:
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,985
|
|
|
$
|
—
|
|
|
$
|
1,985
|
|
Accounts receivable
|
855
|
|
|
659
|
|
|
2,258
|
|
|
(1,210
|
)
|
|
2,562
|
|
|||||
Other current assets
|
114
|
|
|
38
|
|
|
5,273
|
|
|
—
|
|
|
5,425
|
|
|||||
Total current assets
|
969
|
|
|
697
|
|
|
9,516
|
|
|
(1,210
|
)
|
|
9,972
|
|
|||||
Property, plant, equipment and mining development costs, net
|
27
|
|
|
43
|
|
|
23,972
|
|
|
—
|
|
|
24,042
|
|
|||||
Oil and gas properties, net - full cost method:
|
|
|
|
|
|
|
|
|
|
||||||||||
Subject to amortization, less accumulated amortization
|
—
|
|
|
6,207
|
|
|
6,265
|
|
|
—
|
|
|
12,472
|
|
|||||
Not subject to amortization
|
—
|
|
|
2,649
|
|
|
8,238
|
|
|
—
|
|
|
10,887
|
|
|||||
Investment in consolidated subsidiaries
|
31,162
|
|
|
9,712
|
|
|
12,468
|
|
|
(53,342
|
)
|
|
—
|
|
|||||
Goodwill
|
—
|
|
|
437
|
|
|
1,479
|
|
|
—
|
|
|
1,916
|
|
|||||
Other assets
|
7,126
|
|
|
4,640
|
|
|
4,128
|
|
|
(11,710
|
)
|
|
4,184
|
|
|||||
Total assets
|
$
|
39,284
|
|
|
$
|
24,385
|
|
|
$
|
66,066
|
|
|
$
|
(66,262
|
)
|
|
$
|
63,473
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
LIABILITIES AND EQUITY
|
|
|
|
|
|
|
|
|
|
||||||||||
Current liabilities
|
$
|
1,003
|
|
|
$
|
758
|
|
|
$
|
4,222
|
|
|
$
|
(1,210
|
)
|
|
$
|
4,773
|
|
Long-term debt, less current portion
|
13,184
|
|
|
7,199
|
|
|
8,056
|
|
|
(8,045
|
)
|
|
20,394
|
|
|||||
Deferred income taxes
|
4,137
|
|
a
|
—
|
|
|
3,273
|
|
|
—
|
|
|
7,410
|
|
|||||
Environmental and asset retirement obligations, less current portion
|
—
|
|
|
301
|
|
|
2,958
|
|
|
—
|
|
|
3,259
|
|
|||||
Other liabilities
|
26
|
|
|
3,436
|
|
|
1,893
|
|
|
(3,665
|
)
|
|
1,690
|
|
|||||
Total liabilities
|
18,350
|
|
|
11,694
|
|
|
20,402
|
|
|
(12,920
|
)
|
|
37,526
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Redeemable noncontrolling interest
|
—
|
|
|
—
|
|
|
716
|
|
|
—
|
|
|
716
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Equity:
|
|
|
|
|
|
|
|
|
|
||||||||||
Stockholders' equity
|
20,934
|
|
|
12,691
|
|
|
41,100
|
|
|
(53,791
|
)
|
|
20,934
|
|
|||||
Noncontrolling interests
|
—
|
|
|
—
|
|
|
3,848
|
|
|
449
|
|
|
4,297
|
|
|||||
Total equity
|
20,934
|
|
|
12,691
|
|
|
44,948
|
|
|
(53,342
|
)
|
|
25,231
|
|
|||||
Total liabilities and equity
|
$
|
39,284
|
|
|
$
|
24,385
|
|
|
$
|
66,066
|
|
|
$
|
(66,262
|
)
|
|
$
|
63,473
|
|
a.
|
All U.S. related deferred income taxes are recorded at the parent company
.
|
Year Ended December 31, 2014
|
|
|
|
|
|
|
|
|
|
||||||||||
|
FCX
|
|
FM O&G LLC
|
|
Non-guarantor
|
|
|
|
Consolidated
|
||||||||||
|
Issuer
|
|
Guarantor
|
|
Subsidiaries
|
|
Eliminations
|
|
FCX
|
||||||||||
Revenues
|
$
|
—
|
|
|
$
|
2,356
|
|
|
$
|
19,082
|
|
|
$
|
—
|
|
|
21,438
|
|
|
Total costs and expenses
|
59
|
|
|
3,498
|
|
a
|
17,762
|
|
a
|
22
|
|
|
21,341
|
|
|||||
Operating (loss) income
|
(59
|
)
|
|
(1,142
|
)
|
|
1,320
|
|
|
(22
|
)
|
|
97
|
|
|||||
Interest expense, net
|
(382
|
)
|
|
(139
|
)
|
|
(189
|
)
|
|
80
|
|
|
(630
|
)
|
|||||
Net (loss) gain on early extinguishment of debt
|
(5
|
)
|
|
78
|
|
|
—
|
|
|
—
|
|
|
73
|
|
|||||
Other income (expense), net
|
72
|
|
|
3
|
|
|
41
|
|
|
(80
|
)
|
|
36
|
|
|||||
(Loss) income before income taxes and equity in affiliated companies' net (losses) earnings
|
(374
|
)
|
|
(1,200
|
)
|
|
1,172
|
|
|
(22
|
)
|
|
(424
|
)
|
|||||
Benefit from (provision for) income taxes
|
73
|
|
|
281
|
|
|
(686
|
)
|
|
8
|
|
|
(324
|
)
|
|||||
Equity in affiliated companies' net (losses) earnings
|
(1,007
|
)
|
|
(3,429
|
)
|
|
(4,633
|
)
|
|
9,072
|
|
|
3
|
|
|||||
Net (loss) income
|
(1,308
|
)
|
|
(4,348
|
)
|
|
(4,147
|
)
|
|
9,058
|
|
|
(745
|
)
|
|||||
Net income and preferred dividends attributable to noncontrolling interests
|
—
|
|
|
—
|
|
|
(519
|
)
|
|
(44
|
)
|
|
(563
|
)
|
|||||
Net (loss) income attributable to FCX common stockholders
|
$
|
(1,308
|
)
|
|
$
|
(4,348
|
)
|
|
$
|
(4,666
|
)
|
|
$
|
9,014
|
|
|
$
|
(1,308
|
)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Other comprehensive loss
|
—
|
|
|
—
|
|
|
(139
|
)
|
|
—
|
|
|
(139
|
)
|
|||||
Total comprehensive (loss) income
|
$
|
(1,308
|
)
|
|
$
|
(4,348
|
)
|
|
$
|
(4,805
|
)
|
|
$
|
9,014
|
|
|
$
|
(1,447
|
)
|
a.
|
Includes impairment charges totaling
$1.9 billion
at the FM O&G LLC Guarantor and
$3.5 billion
at the non-guarantor subsidiaries related to ceiling test impairment charges for FCX's oil and gas properties pursuant to full cost accounting rules and a goodwill impairment charge.
|
Year Ended December 31, 2013
|
|
|
|
|
|
|
|
|
|
||||||||||
|
FCX
|
|
FM O&G LLC
|
|
Non-guarantor
|
|
|
|
Consolidated
|
||||||||||
|
Issuer
|
|
Guarantor
|
|
Subsidiaries
|
|
Eliminations
|
|
FCX
|
||||||||||
Revenues
|
$
|
—
|
|
|
$
|
1,177
|
|
|
$
|
19,744
|
|
|
$
|
—
|
|
|
$
|
20,921
|
|
Total costs and expenses
|
134
|
|
|
1,065
|
|
|
14,371
|
|
|
—
|
|
|
15,570
|
|
|||||
Operating (loss) income
|
(134
|
)
|
|
112
|
|
|
5,373
|
|
|
—
|
|
|
5,351
|
|
|||||
Interest expense, net
|
(319
|
)
|
|
(129
|
)
|
|
(129
|
)
|
|
59
|
|
|
(518
|
)
|
|||||
Net (loss) gain on early extinguishment of debt
|
(45
|
)
|
|
—
|
|
|
10
|
|
|
—
|
|
|
(35
|
)
|
|||||
Gain on investment in MMR
|
128
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
128
|
|
|||||
Other income (expense), net
|
61
|
|
|
—
|
|
|
(15
|
)
|
|
(59
|
)
|
|
(13
|
)
|
|||||
(Loss) income before income taxes and equity in affiliated companies' net earnings (losses)
|
(309
|
)
|
|
(17
|
)
|
|
5,239
|
|
|
—
|
|
|
4,913
|
|
|||||
Benefit from (provision for) income taxes
|
81
|
|
|
17
|
|
|
(1,573
|
)
|
|
—
|
|
|
(1,475
|
)
|
|||||
Equity in affiliated companies' net earnings (losses)
|
2,886
|
|
|
281
|
|
|
268
|
|
|
(3,432
|
)
|
|
3
|
|
|||||
Net income (loss)
|
2,658
|
|
|
281
|
|
|
3,934
|
|
|
(3,432
|
)
|
|
3,441
|
|
|||||
Net income and preferred dividends attributable to noncontrolling interests
|
—
|
|
|
—
|
|
|
(706
|
)
|
|
(77
|
)
|
|
(783
|
)
|
|||||
Net income (loss) attributable to FCX common stockholders
|
$
|
2,658
|
|
|
$
|
281
|
|
|
$
|
3,228
|
|
|
$
|
(3,509
|
)
|
|
$
|
2,658
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Other comprehensive income
|
—
|
|
|
—
|
|
|
101
|
|
|
—
|
|
|
101
|
|
|||||
Total comprehensive income (loss)
|
$
|
2,658
|
|
|
$
|
281
|
|
|
$
|
3,329
|
|
|
$
|
(3,509
|
)
|
|
$
|
2,759
|
|
|
FCX
|
|
FM O&G LLC
|
|
Non-guarantor
|
|
|
|
Consolidated
|
||||||||||
|
Issuer
|
|
Guarantor
|
|
Subsidiaries
|
|
Eliminations
|
|
FCX
|
||||||||||
Cash flow from operating activities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Net (loss) income
|
$
|
(1,308
|
)
|
|
$
|
(4,348
|
)
|
|
$
|
(4,147
|
)
|
|
$
|
9,058
|
|
|
$
|
(745
|
)
|
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Depreciation, depletion and amortization
|
4
|
|
|
806
|
|
|
3,077
|
|
|
(24
|
)
|
|
3,863
|
|
|||||
Impairment of oil and gas properties and goodwill
|
—
|
|
|
1,922
|
|
|
3,486
|
|
|
46
|
|
|
5,454
|
|
|||||
Net gains on crude oil and natural gas derivative contracts
|
—
|
|
|
(504
|
)
|
|
—
|
|
|
—
|
|
|
(504
|
)
|
|||||
Equity in (earnings) losses of consolidated subsidiaries
|
1,007
|
|
|
3,429
|
|
|
4,633
|
|
|
(9,072
|
)
|
|
(3
|
)
|
|||||
Other, net
|
(882
|
)
|
|
(113
|
)
|
|
(807
|
)
|
|
—
|
|
|
(1,802
|
)
|
|||||
Decreases (increases) in working capital and changes in other tax payments, excluding amounts from dispositions
|
723
|
|
|
(1,750
|
)
|
|
395
|
|
|
—
|
|
|
(632
|
)
|
|||||
Net cash (used in) provided by operating activities
|
(456
|
)
|
|
(558
|
)
|
|
6,637
|
|
|
8
|
|
|
5,631
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash flow from investing activities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Capital expenditures
|
—
|
|
|
(2,143
|
)
|
|
(5,072
|
)
|
|
—
|
|
|
(7,215
|
)
|
|||||
Acquisition of Deepwater GOM interests
|
—
|
|
|
—
|
|
|
(1,426
|
)
|
|
—
|
|
|
(1,426
|
)
|
|||||
Intercompany loans
|
(1,328
|
)
|
|
704
|
|
|
—
|
|
|
624
|
|
|
—
|
|
|||||
Dividend from (investment in) consolidated subsidiary
|
1,221
|
|
|
(130
|
)
|
|
(2,408
|
)
|
|
1,317
|
|
|
—
|
|
|||||
Net proceeds from sale of Candelaria and Ojos del Salado
|
—
|
|
|
—
|
|
|
1,709
|
|
|
—
|
|
|
1,709
|
|
|||||
Net proceeds from sale of Eagle Ford shale assets
|
—
|
|
|
2,910
|
|
|
—
|
|
|
—
|
|
|
2,910
|
|
|||||
Other, net
|
—
|
|
|
41
|
|
|
180
|
|
|
—
|
|
|
221
|
|
|||||
Net cash (used in) provided by investing activities
|
(107
|
)
|
|
1,382
|
|
|
(7,017
|
)
|
|
1,941
|
|
|
(3,801
|
)
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash flow from financing activities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Proceeds from debt
|
7,464
|
|
|
—
|
|
|
1,246
|
|
|
—
|
|
|
8,710
|
|
|||||
Repayments of debt
|
(5,575
|
)
|
|
(3,994
|
)
|
|
(737
|
)
|
|
—
|
|
|
(10,306
|
)
|
|||||
Intercompany loans
|
—
|
|
|
810
|
|
|
(186
|
)
|
|
(624
|
)
|
|
—
|
|
|||||
Cash dividends and distributions paid, and contributions received
|
(1,305
|
)
|
|
2,364
|
|
|
(1,463
|
)
|
|
(1,325
|
)
|
|
(1,729
|
)
|
|||||
Other, net
|
(21
|
)
|
|
(3
|
)
|
|
(2
|
)
|
|
—
|
|
|
(26
|
)
|
|||||
Net cash provided by (used in) financing activities
|
563
|
|
|
(823
|
)
|
|
(1,142
|
)
|
|
(1,949
|
)
|
|
(3,351
|
)
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Net increase (decrease) in cash and cash equivalents
|
—
|
|
|
1
|
|
|
(1,522
|
)
|
|
—
|
|
|
(1,521
|
)
|
|||||
Cash and cash equivalents at beginning of year
|
—
|
|
|
—
|
|
|
1,985
|
|
|
—
|
|
|
1,985
|
|
|||||
Cash and cash equivalents at end of year
|
$
|
—
|
|
|
$
|
1
|
|
|
$
|
463
|
|
|
$
|
—
|
|
|
$
|
464
|
|
|
FCX
|
|
FM O&G LLC
|
|
Non-guarantor
|
|
|
|
Consolidated
|
||||||||||
|
Issuer
|
|
Guarantor
|
|
Subsidiaries
|
|
Eliminations
|
|
FCX
|
||||||||||
Cash flow from operating activities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income (loss)
|
$
|
2,658
|
|
|
$
|
281
|
|
|
$
|
3,934
|
|
|
$
|
(3,432
|
)
|
|
$
|
3,441
|
|
Adjustments to reconcile net income (loss) to net cash (used in) provided by operating activities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Depreciation, depletion and amortization
|
4
|
|
|
616
|
|
|
2,177
|
|
|
—
|
|
|
2,797
|
|
|||||
Net losses on crude oil and natural gas derivative contracts
|
—
|
|
|
334
|
|
|
—
|
|
|
—
|
|
|
334
|
|
|||||
Gain on investment in MMR
|
(128
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(128
|
)
|
|||||
Equity in (earnings) losses of consolidated subsidiaries
|
(2,886
|
)
|
|
(281
|
)
|
|
(265
|
)
|
|
3,432
|
|
|
—
|
|
|||||
Other, net
|
8
|
|
|
(14
|
)
|
|
78
|
|
|
—
|
|
|
72
|
|
|||||
Decreases (increases) in working capital and changes in other tax payments, excluding amounts from acquisitions and dispositions
|
272
|
|
|
735
|
|
|
(1,384
|
)
|
|
—
|
|
|
(377
|
)
|
|||||
Net cash (used in) provided by operating activities
|
(72
|
)
|
|
1,671
|
|
|
4,540
|
|
|
—
|
|
|
6,139
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash flow from investing activities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Capital expenditures
|
—
|
|
|
(894
|
)
|
|
(4,392
|
)
|
|
—
|
|
|
(5,286
|
)
|
|||||
Acquisitions, net of cash acquired
|
(5,437
|
)
|
|
—
|
|
|
(4
|
)
|
|
—
|
|
|
(5,441
|
)
|
|||||
Intercompany loans
|
834
|
|
|
—
|
|
|
(162
|
)
|
|
(672
|
)
|
|
—
|
|
|||||
Dividend from (investment in) consolidated subsidiary
|
629
|
|
|
—
|
|
|
—
|
|
|
(629
|
)
|
|
—
|
|
|||||
Other, net
|
15
|
|
|
30
|
|
|
(226
|
)
|
|
—
|
|
|
(181
|
)
|
|||||
Net cash used in investing activities
|
(3,959
|
)
|
|
(864
|
)
|
|
(4,784
|
)
|
|
(1,301
|
)
|
|
(10,908
|
)
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash flow from financing activities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Proceeds from debt
|
11,260
|
|
|
—
|
|
|
241
|
|
|
—
|
|
|
11,501
|
|
|||||
Repayments of debt and redemption of MMR preferred stock
|
(4,737
|
)
|
|
(416
|
)
|
|
(551
|
)
|
|
—
|
|
|
(5,704
|
)
|
|||||
Intercompany loans
|
—
|
|
|
(391
|
)
|
|
(281
|
)
|
|
672
|
|
|
—
|
|
|||||
Cash dividends and distributions paid
|
(2,281
|
)
|
|
—
|
|
|
(885
|
)
|
|
629
|
|
|
(2,537
|
)
|
|||||
Other, net
|
(211
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(211
|
)
|
|||||
Net cash provided by (used in) financing activities
|
4,031
|
|
|
(807
|
)
|
|
(1,476
|
)
|
|
1,301
|
|
|
3,049
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Net decrease in cash and cash equivalents
|
—
|
|
|
—
|
|
|
(1,720
|
)
|
|
—
|
|
|
(1,720
|
)
|
|||||
Cash and cash equivalents at beginning of year
|
—
|
|
|
—
|
|
|
3,705
|
|
|
—
|
|
|
3,705
|
|
|||||
Cash and cash equivalents at end of year
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,985
|
|
|
$
|
—
|
|
|
$
|
1,985
|
|
|
First
Quarter
|
|
Second
Quarter
|
|
Third
Quarter
|
|
Fourth
Quarter
|
|
Year
|
|
||||||||||
2014
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Revenues
|
$
|
4,985
|
|
a
|
$
|
5,522
|
|
a
|
$
|
5,696
|
|
a
|
$
|
5,235
|
|
a
|
$
|
21,438
|
|
a
|
Operating income (loss)
|
1,111
|
|
|
1,153
|
|
|
1,132
|
|
b,c
|
(3,299
|
)
|
b,c
|
97
|
|
b,c
|
|||||
Net income (loss)
|
626
|
|
|
660
|
|
d,e
|
704
|
|
d,e
|
(2,735
|
)
|
d,e
|
(745
|
)
|
d,e
|
|||||
Net income and preferred dividends
|
|
|
|
|
|
|
|
|
|
|
||||||||||
attributable to noncontrolling interests
|
116
|
|
|
178
|
|
|
152
|
|
|
117
|
|
|
563
|
|
|
|||||
Net income (loss) attributable to FCX
|
|
|
|
|
|
|
|
|
|
|
||||||||||
common stockholders
|
510
|
|
a
|
482
|
|
a,d,e
|
552
|
|
a,b,c,d,e
|
(2,852
|
)
|
a,b,c,d,e
|
(1,308
|
)
|
a,b,c,d,e
|
|||||
Basic net income (loss) per share
|
|
|
|
|
|
|
|
|
|
|
||||||||||
attributable to FCX common stockholders
|
0.49
|
|
|
0.46
|
|
|
0.53
|
|
|
(2.75
|
)
|
|
(1.26
|
)
|
|
|||||
Diluted net income (loss) per share
|
|
|
|
|
|
|
|
|
|
|
||||||||||
attributable to FCX common stockholders
|
0.49
|
|
a
|
0.46
|
|
a,d,e
|
0.53
|
|
a,b,c,d,e
|
(2.75
|
)
|
a,b,c,d,e
|
(1.26
|
)
|
a,b,c,d,e
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
2013
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Revenues
|
$
|
4,583
|
|
|
$
|
4,288
|
|
f
|
$
|
6,165
|
|
f
|
$
|
5,885
|
|
f
|
$
|
20,921
|
|
f
|
Operating income
|
1,355
|
|
g
|
639
|
|
g
|
1,707
|
|
g
|
1,650
|
|
g,h
|
5,351
|
|
g,h
|
|||||
Net income
|
824
|
|
|
610
|
|
i
|
1,048
|
|
|
959
|
|
i
|
3,441
|
|
i
|
|||||
Net income and preferred dividends
|
|
|
|
|
|
|
|
|
|
|
||||||||||
attributable to noncontrolling interests
|
176
|
|
|
128
|
|
|
227
|
|
|
252
|
|
|
783
|
|
|
|||||
Net income attributable to FCX common
|
|
|
|
|
|
|
|
|
|
|
||||||||||
stockholders
|
648
|
|
g,j
|
482
|
|
f,g,i,j,k
|
821
|
|
f,g
|
707
|
|
f,g,h,i,j
|
2,658
|
|
f,g,h,i,j,k
|
|||||
Basic net income per share attributable
|
|
|
|
|
|
|
|
|
|
|
||||||||||
to FCX common stockholders
|
0.68
|
|
|
0.49
|
|
|
0.79
|
|
|
0.68
|
|
|
2.65
|
|
|
|||||
Diluted net income per share attributable
|
|
|
|
|
|
|
|
|
|
|
||||||||||
to FCX common stockholders
|
0.68
|
|
g,j
|
0.49
|
|
f,g,i,j,k
|
0.79
|
|
f,g
|
0.68
|
|
f,g,h,i,j
|
2.64
|
|
f,g,h,i,j,k
|
a.
|
Includes credits (charges) of
$15 million
(
$9 million
to net income attributable to common stockholders or
$0.01
per share) in the first quarter,
$(7) million
(
$(4) million
to net income attributable to common stockholders) in the second quarter,
$122 million
(
$76 million
to net income attributable to common stockholders or
$0.07
per share) in the third quarter,
$497 million
(
$309 million
to net loss attributable to common stockholders or
$0.30
per share) in the fourth quarter and
$627 million
(
$389 million
to net loss attributable to common stockholders or
$0.37
per share) for the year for net unrealized and noncash realized gains (losses) on crude oil and natural gas derivative contracts.
|
b.
|
Includes a charge of
$308 million
(
$192 million
to net income attributable to common stockholders or
$0.18
per share) in the third quarter,
$3.4 billion
(
$2.1 billion
to net loss attributable to common stockholders or
$2.05
per share) in the fourth quarter and
$3.7 billion
(
$2.3 billion
to net loss attributable to common stockholders or
$2.24
per share) for the year to reduce the carrying value of oil and gas properties pursuant to full cost accounting rules. Additionally, the fourth quarter and the year includes a goodwill impairment charge of
$1.7 billion
(
$1.65
per share) for the full carrying value of goodwill.
|
c.
|
Includes net gains of
$46 million
(
$31 million
to net income attributable to common stockholders or
$0.03
per share) in third quarter,
$671 million
(
$450 million
to net loss attributable to common stockholders or
$0.43
per share) in the fourth quarter and
$717 million
(
$481 million
to net loss attributable to common stockholders or
$0.46
per share) for the year primarily from the sale of the Candelaria and Ojos del Salado copper mining operations in the fourth quarter (refer to Note 2 for further discussion) and the sale of a metals injection molding plant in the third quarter.
|
d.
|
Includes a tax charge of
$57 million
(
$0.06
per share) in the second quarter,
$5 million
in the third quarter,
$22 million
(
$0.02
per share) in the fourth quarter and
$84 million
(
$0.08
per share) for the year associated with deferred taxes recorded in connection with the allocation of goodwill to the sale of the Eagle Ford properties. Additionally, includes a net tax charge (benefit) of
$54 million
(
$7 million
attributable to noncontrolling interests and
$47 million
to net income attributable to common stockholders or
$0.04
per share) in the third quarter,
$(17) million
(
$11 million
attributable to noncontrolling interests and
$(28) million
to net loss attributable to common stockholders or
$(0.03)
per share) in the fourth quarter and
$37 million
(
$18 million
attributable to noncontrolling interests and
$19 million
to net loss attributable to common stockholders or
$0.02
per share) for the year associated with changes in Chilean tax rules, U.S. federal income tax regulations and Peruvian tax rules, partially offset by a tax benefit related to changes in U.S. state income tax filing positions.
|
e.
|
Includes net gains (losses) on early extinguishment of debt totaling
$4 million
in the second quarter,
$17 million
(
$0.02
per share) in the third quarter,
$(18) million
($
(0.02)
per share) in the fourth quarter and
$3 million
for the year. Refer to Note 8 for further discussion.
|
f.
|
Includes charges of
$36 million
(
$23 million
to net income attributable to common stockholders or
$0.02
per share) in the second quarter,
$158 million
(
$98 million
to net income attributable to common stockholders or
$0.09
per share) in the third quarter,
$118 million
(
$73 million
to net income attributable to common stockholders or
$0.07
per share) in the fourth quarter and
$312 million
(
$194 million
to net income attributable to common stockholders or
$0.19
per share) for the year (reflecting the seven-month period from June 1, 2013, to December 31, 2013) for unrealized and noncash realized losses on crude oil and natural gas derivative contracts.
|
g.
|
Includes charges of
$14 million
(
$10 million
to net income attributable to common stockholders or
$0.01
per share) in the first quarter,
$61 million
(
$36 million
to net income attributable to common stockholders or
$0.04
per share) in the second quarter,
$1 million
(
$1 million
to net income attributable to common stockholders) in the third quarter,
$4 million
(
$3 million
to net income attributable to common stockholders) in the fourth quarter and
$80 million
(
$50 million
to net income attributable to common stockholders or
$0.05
per share) for the year for transaction and related costs principally associated with the acquisitions of PXP and MMR.
|
h.
|
Includes charges in the fourth quarter and for the year of (i)
$76 million
(
$49 million
to net income attributable to common stockholders or
$0.05
per share) associated with updated mine plans at Morenci that resulted in a loss in recoverable copper in leach stockpiles, (ii)
$37 million
(
$23 million
to net income attributable to common stockholders or
$0.02
per share) associated with the restructuring of an executive employment arrangement and (iii)
$36 million
(
$13 million
to net income attributable to common stockholders or
$0.01
per share) associated with a new labor agreement at Cerro Verde.
|
i.
|
Includes a net tax benefit of
$183 million
(
$0.19
per share) in the second quarter,
$16 million
(
$0.01
per share) in the fourth quarter and
$199 million
(
$0.20
per share) for the year associated with net reductions in FCX's deferred tax liabilities and deferred tax asset valuation allowances related to the acquisitions of PXP and MMR.
|
j.
|
Includes net (losses) gains on early extinguishment of debt totaling
$(40) million
(
$(0.04)
per share) in the first quarter,
$5 million
(
$0.01
per share) in the second quarter for an adjustment related to taxes on the first quarter losses,
$7 million
(
$0.01
per share) in the fourth quarter and
$(28) million
(
$(0.03)
per share) for the year. Refer to Note 8 for further discussion.
|
k.
|
Includes a gain of
$128 million
(
$0.13
per share) in the second quarter and for the year related to FCX's preferred stock investment in and the subsequent acquisition of MMR. Refer to Note 2 for further discussion.
|
|
Recoverable Proven and Probable Mineral Reserves
|
|||||||
|
Estimated at December 31, 2014
|
|||||||
|
Copper
a
(billion pounds)
|
|
Gold
(million ounces)
|
|
Molybdenum
(billion pounds)
|
|||
North America
|
35.6
|
|
|
0.3
|
|
|
2.42
|
|
South America
|
31.8
|
|
|
—
|
|
|
0.69
|
|
Indonesia
|
29.0
|
|
|
28.2
|
|
|
—
|
|
Africa
|
7.1
|
|
|
—
|
|
|
—
|
|
Consolidated
b
|
103.5
|
|
|
28.5
|
|
|
3.11
|
|
|
|
|
|
|
|
|||
Net equity interest
c
|
82.8
|
|
|
25.9
|
|
|
2.79
|
|
a.
|
Consolidated recoverable copper reserves included
3.6 billion
pounds in leach stockpiles and
0.9 billion
pounds in mill stockpiles.
|
b.
|
Consolidated reserves represent estimated metal quantities after reduction for joint venture partner interests at the Morenci mine in North America and the Grasberg minerals district in Indonesia. Excluded from the table above were FCX’s estimated recoverable proven and probable reserves of
0.85 billion
pounds of cobalt at Tenke and
282.9 million
ounces of silver in Indonesia, South America and North America, which were determined using long-term average prices of
$10
per pound for cobalt and
$15
per ounce for silver.
|
c.
|
Net equity interest reserves represent estimated consolidated metal quantities further reduced for noncontrolling interest ownership. Excluded from the table above were FCX’s estimated recoverable proven and probable reserves of
0.47 billion
pounds of cobalt at Tenke and
232.4 million
ounces of silver in Indonesia, South America and North America.
|
|
|
Recoverable Proven and Probable Mineral Reserves
|
|||||||||||||||||
|
|
Estimated at December 31, 2014
|
|||||||||||||||||
|
|
|
|
Average Ore Grade
Per Metric Ton
a
|
|
Recoverable Proven and
Probable Reserves
b
|
|||||||||||||
|
|
Ore
a
(million metric tons)
|
|
Copper (%)
|
|
Gold (grams)
|
|
Molybdenum (%)
|
|
Copper
(billion pounds)
|
|
Gold
(million ounces)
|
|
Molybdenum
(billion pounds)
|
|||||
North America
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Developed and producing:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Morenci
|
|
3,923
|
|
|
0.27
|
|
—
|
|
|
—
|
c
|
15.1
|
|
|
—
|
|
|
0.17
|
|
Bagdad
|
|
1,334
|
|
|
0.32
|
|
—
|
|
c
|
0.02
|
|
7.8
|
|
|
0.1
|
|
|
0.38
|
|
Safford
|
|
122
|
|
|
0.47
|
|
—
|
|
|
—
|
|
1.1
|
|
|
—
|
|
|
—
|
|
Sierrita
|
|
2,464
|
|
|
0.23
|
|
—
|
|
c
|
0.02
|
|
10.8
|
|
|
0.1
|
|
|
1.01
|
|
Miami
|
|
3
|
|
|
0.58
|
|
—
|
|
|
—
|
|
0.1
|
|
|
—
|
|
|
—
|
|
Chino
|
|
301
|
|
|
0.39
|
|
0.02
|
|
|
—
|
c
|
2.2
|
|
|
0.1
|
|
|
0.01
|
|
Tyrone
|
|
59
|
|
|
0.32
|
|
—
|
|
|
—
|
|
0.4
|
|
|
—
|
|
|
—
|
|
Henderson
|
|
90
|
|
|
—
|
|
—
|
|
|
0.17
|
|
—
|
|
|
—
|
|
|
0.28
|
|
Climax
|
|
185
|
|
|
—
|
|
—
|
|
|
0.16
|
|
—
|
|
|
—
|
|
|
0.59
|
|
Undeveloped:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Cobre
|
|
71
|
|
|
0.37
|
|
—
|
|
|
—
|
|
0.3
|
|
|
—
|
|
|
—
|
|
South America
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Developed and producing:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Cerro Verde
|
|
3,953
|
|
|
0.37
|
|
—
|
|
|
0.01
|
|
28.9
|
|
|
—
|
|
|
0.69
|
|
El Abra
|
|
444
|
|
|
0.46
|
|
—
|
|
|
—
|
|
2.9
|
|
|
—
|
|
|
—
|
|
Indonesia
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Developed and producing:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Grasberg open pit
|
|
179
|
|
|
0.96
|
|
1.06
|
|
|
—
|
|
3.2
|
|
|
4.9
|
|
|
—
|
|
Deep Ore Zone
|
|
146
|
|
|
0.54
|
|
0.69
|
|
|
—
|
|
1.5
|
|
|
2.5
|
|
|
—
|
|
Big Gossan
|
|
54
|
|
|
2.26
|
|
0.99
|
|
|
—
|
|
2.4
|
|
|
1.1
|
|
|
—
|
|
Undeveloped:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Grasberg Block Cave
|
|
1,012
|
|
|
1.00
|
|
0.77
|
|
|
—
|
|
18.9
|
|
|
16.3
|
|
|
—
|
|
Kucing Liar
|
|
406
|
|
|
1.25
|
|
1.07
|
|
|
—
|
|
9.5
|
|
|
6.3
|
|
|
—
|
|
Deep Mill Level Zone
|
|
472
|
|
|
0.87
|
|
0.71
|
|
|
—
|
|
7.9
|
|
|
8.6
|
|
|
—
|
|
Africa
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Developed and producing:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Tenke Fungurume
|
|
98
|
|
|
3.27
|
|
—
|
|
|
—
|
|
7.1
|
|
|
—
|
|
|
—
|
|
Total 100% basis
|
|
15,316
|
|
|
|
|
|
|
|
|
120.1
|
|
|
40.0
|
|
|
3.13
|
|
|
Consolidated
d
|
|
|
|
|
|
|
|
|
|
103.5
|
|
|
28.5
|
|
|
3.11
|
|
||
FCX’s equity share
e
|
|
|
|
|
|
|
|
|
|
82.8
|
|
|
25.9
|
|
|
2.79
|
|
a.
|
Excludes material contained in stockpiles.
|
b.
|
Includes estimated recoverable metals contained in stockpiles.
|
c.
|
Amounts not shown because of rounding.
|
d.
|
Consolidated reserves represent estimated metal quantities after reduction for joint venture partner interests at the Morenci mine in North America and the Grasberg minerals district in Indonesia.
|
e.
|
Net equity interest reserves represent estimated consolidated metal quantities further reduced for noncontrolling interest ownership.
|
|
2014
|
|
2013
a
|
|
||||
Property acquisition costs:
|
|
|
|
|
||||
Proved properties
|
$
|
463
|
|
|
$
|
12,205
|
|
b
|
Unproved properties
|
1,460
|
|
|
11,259
|
|
c
|
||
Exploration costs
|
1,482
|
|
|
502
|
|
|
||
Development costs
|
1,270
|
|
|
854
|
|
|
||
|
$
|
4,675
|
|
|
$
|
24,820
|
|
|
a.
|
Includes the results of FM O&G beginning June 1, 2013.
|
b.
|
Includes
$12.2 billion
from the acquisitions of PXP and MMR.
|
c.
|
Includes
$11.1 billion
from the acquisitions of PXP and MMR.
|
|
2014
|
|
2013
|
|
||||
Properties subject to amortization
|
$
|
16,547
|
|
|
$
|
13,829
|
|
|
Accumulated amortization
|
(7,360
|
)
|
a
|
(1,357
|
)
|
|
||
|
$
|
9,187
|
|
|
$
|
12,472
|
|
|
a.
|
Includes charges of
$3.7 billion
to reduce the carrying value of oil and gas properties pursuant to full cost accounting rules.
|
|
|
December 31,
|
||||||||||
|
|
Total
|
|
2014
|
|
2013
|
||||||
U.S.:
|
|
|
|
|
|
|
||||||
Onshore
|
|
|
|
|
|
|
||||||
Acquisition costs
|
|
$
|
2,303
|
|
|
$
|
18
|
|
|
$
|
2,285
|
|
Exploration costs
|
|
121
|
|
|
119
|
|
|
2
|
|
|||
Capitalized interest
|
|
27
|
|
|
22
|
|
|
5
|
|
|||
Offshore
|
|
|
|
|
|
|
||||||
Acquisition costs
|
|
7,094
|
|
|
1,413
|
|
|
5,681
|
|
|||
Exploration costs
|
|
429
|
|
|
387
|
|
|
42
|
|
|||
Capitalized interest
|
|
75
|
|
|
39
|
|
|
36
|
|
|||
International:
|
|
|
|
|
|
|
||||||
Offshore
|
|
|
|
|
|
|
||||||
Acquisition costs
|
|
15
|
|
|
—
|
|
|
15
|
|
|||
Exploration costs
|
|
23
|
|
|
23
|
|
|
—
|
|
|||
Capitalized interest
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
|
|
$
|
10,087
|
|
|
$
|
2,021
|
|
|
$
|
8,066
|
|
|
Year Ended
|
|
June 1, 2013 to
|
||||
|
December 31, 2014
|
|
December 31, 2013
|
||||
Revenues from oil and gas producing activities
|
$
|
4,710
|
|
|
$
|
2,616
|
|
Production and delivery costs
|
(1,237
|
)
|
|
(682
|
)
|
||
Depreciation, depletion and amortization
|
(2,265
|
)
|
|
(1,358
|
)
|
||
Impairment of oil and gas properties
|
(3,737
|
)
|
|
—
|
|
||
Income tax benefit (expense) (based on FCX's statutory tax rate)
|
958
|
|
|
(219
|
)
|
||
Results of operations from oil and gas producing activities
|
$
|
(1,571
|
)
|
|
$
|
357
|
|
|
|
Oil
|
|
Gas
|
|
Total
|
|||
|
|
(MMBbls)
a,b
|
|
(Bcf)
a
|
|
(MMBOE)
a
|
|||
2014
|
|
|
|
|
|
|
|||
Proved reserves:
|
|
|
|
|
|
|
|||
Balance at beginning of year
|
|
370
|
|
|
562
|
|
|
464
|
|
Extensions and discoveries
|
|
10
|
|
|
35
|
|
|
16
|
|
Acquisitions of reserves in-place
|
|
14
|
|
|
9
|
|
|
16
|
|
Revisions of previous estimates
|
|
(10
|
)
|
|
140
|
|
|
13
|
|
Sale of reserves in-place
|
|
(53
|
)
|
|
(54
|
)
|
|
(62
|
)
|
Production
|
|
(43
|
)
|
|
(82
|
)
|
|
(57
|
)
|
Balance at end of year
|
|
288
|
|
|
610
|
|
|
390
|
|
|
|
|
|
|
|
|
|||
Proved developed reserves at December 31, 2014
|
|
184
|
|
|
369
|
|
|
246
|
|
|
|
|
|
|
|
|
|||
Proved undeveloped reserves at December 31, 2014
|
|
104
|
|
|
241
|
|
|
144
|
|
2013
|
|
|
|
|
|
|
|||
Proved reserves:
|
|
|
|
|
|
|
|||
Balance at beginning of year
|
|
—
|
|
|
—
|
|
|
—
|
|
Acquisitions of PXP and MMR
|
|
368
|
|
|
626
|
|
|
472
|
|
Extensions and discoveries
|
|
20
|
|
|
20
|
|
|
24
|
|
Revisions of previous estimates
|
|
11
|
|
|
(26
|
)
|
|
7
|
|
Sale of reserves in-place
|
|
—
|
|
|
(3
|
)
|
|
(1
|
)
|
Production
|
|
(29
|
)
|
|
(55
|
)
|
|
(38
|
)
|
Balance at end of year
|
|
370
|
|
|
562
|
|
|
464
|
|
|
|
|
|
|
|
|
|||
Proved developed reserves at December 31, 2013
|
|
236
|
|
|
423
|
|
|
307
|
|
|
|
|
|
|
|
|
|||
Proved undeveloped reserves at December 31, 2013
|
|
134
|
|
|
139
|
|
|
157
|
|
a.
|
MMBbls = million barrels; Bcf = billion cubic feet; MMBOE = million BOE
|
b.
|
Includes
10
MMBbls of NGL proved reserves (
7
MMBbls of developed and
3
MMBbls of undeveloped) at
December 31, 2014
, and
20
MMBbls of NGL proved reserves (
14
MMBbls of developed and
6
MMBbls of undeveloped) at December 31, 2013.
|
|
2014
|
|
2013
|
||||
Future cash inflows
|
$
|
29,504
|
|
|
$
|
38,901
|
|
Future production expense
|
(10,991
|
)
|
|
(12,774
|
)
|
||
Future development costs
a
|
(6,448
|
)
|
|
(6,480
|
)
|
||
Future income tax expense
|
(2,487
|
)
|
|
(4,935
|
)
|
||
Future net cash flows
|
9,578
|
|
|
14,712
|
|
||
Discounted at 10% per year
|
(3,157
|
)
|
|
(5,295
|
)
|
||
Standardized Measure
|
$
|
6,421
|
|
|
$
|
9,417
|
|
a.
|
Includes estimated asset retirement costs of
$1.8 billion
at December 31, 2014 and 2013.
|
|
|
2014
|
|
2013
a
|
||||
Balance at beginning of year
|
|
$
|
9,417
|
|
|
$
|
—
|
|
Changes during the year:
|
|
|
|
|
||||
Reserves acquired in the acquisitions of PXP and MMR
|
|
—
|
|
|
14,467
|
|
||
Sales, net of production expenses
|
|
(3,062
|
)
|
|
(2,296
|
)
|
||
Net changes in sales and transfer prices, net of production expenses
|
|
(2,875
|
)
|
|
(459
|
)
|
||
Extensions, discoveries and improved recoveries
|
|
194
|
|
|
752
|
|
||
Changes in estimated future development costs
|
|
(498
|
)
|
|
(1,190
|
)
|
||
Previously estimated development costs incurred during the year
|
|
982
|
|
|
578
|
|
||
Sales of reserves in-place
|
|
(1,323
|
)
|
|
(12
|
)
|
||
Other purchases of reserves in-place
|
|
487
|
|
|
—
|
|
||
Revisions of quantity estimates
|
|
399
|
|
|
102
|
|
||
Accretion of discount
|
|
1,195
|
|
|
701
|
|
||
Net change in income taxes
|
|
1,505
|
|
|
(3,226
|
)
|
||
Total changes
|
|
(2,996
|
)
|
|
9,417
|
|
||
Balance at end of year
|
|
$
|
6,421
|
|
|
$
|
9,417
|
|
a.
|
Includes the results of FM O&G beginning June 1, 2013.
|
*
|
Chairman of the Board
|
James R. Moffett
|
|
|
|
/s/ Richard C. Adkerson
|
Vice Chairman of the Board, President and Chief Executive Officer
|
Richard C. Adkerson
|
(Principal Executive Officer)
|
|
|
*
|
Vice Chairman of the Board
|
James C. Flores
|
|
|
|
/s/ Kathleen L. Quirk
|
Executive Vice President, Chief Financial Officer and Treasurer
|
Kathleen L. Quirk
|
(Principal Financial Officer)
|
|
|
*
|
Vice President and Controller - Financial Reporting
|
C. Donald Whitmire, Jr.
|
(Principal Accounting Officer)
|
|
|
*
|
Director
|
Robert J. Allison, Jr.
|
|
|
|
*
|
Director
|
Alan R. Buckwalter III
|
|
|
|
*
|
Director
|
Robert A. Day
|
|
|
|
*
|
Director
|
Gerald J. Ford
|
|
|
|
*
|
Director
|
Thomas A. Fry, III
|
|
|
|
|
|
*
|
Director
|
H. Devon Graham, Jr.
|
|
|
|
*
|
Director
|
Lydia H. Kennard
|
|
|
|
*
|
Director
|
Charles C. Krulak
|
|
|
|
*
|
Director
|
Bobby Lee Lackey
|
|
|
|
*
|
Director
|
Jon C. Madonna
|
|
|
|
*
|
Director
|
Dustan E. McCoy
|
|
|
|
*
|
Director
|
Stephen H. Siegele
|
|
|
|
*
|
Director
|
Frances Fragos Townsend
|
|
|
|
|
|
|
|
* By: /s/ Richard C. Adkerson
|
|
Richard C. Adkerson
|
|
Attorney-in-Fact
|
|
|
Page
|
Report of Independent Registered Public Accounting Firm
|
F-1
|
Schedule II-Valuation and Qualifying Accounts
|
F-2
|
|
|
|
|
Additions
|
|
|
|
|
||||||||||||
|
|
Balance at
|
|
Charged to
|
|
Charged to
|
|
Other
|
|
Balance at
|
||||||||||
|
|
Beginning of
|
|
Costs and
|
|
Other
|
|
Additions
|
|
End of
|
||||||||||
|
|
Year
|
|
Expense
|
|
Accounts
|
|
(Deductions)
|
|
Year
|
||||||||||
Reserves and allowances deducted
|
|
|
|
|
|
|
|
|
|
|
||||||||||
from asset accounts:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Valuation allowance for deferred tax assets
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Year Ended December 31, 2014
|
|
$
|
2,487
|
|
|
$
|
(53
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2,434
|
|
Year Ended December 31, 2013
|
|
2,443
|
|
|
44
|
|
|
—
|
|
|
—
|
|
|
2,487
|
|
|||||
Year Ended December 31, 2012
|
|
2,393
|
|
|
49
|
|
|
1
|
|
|
—
|
|
|
2,443
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Reserves for non-income taxes:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Year Ended December 31, 2014
|
|
$
|
78
|
|
|
$
|
16
|
|
|
$
|
—
|
|
|
$
|
(1
|
)
|
a
|
$
|
93
|
|
Year Ended December 31, 2013
|
|
80
|
|
|
35
|
|
|
(1
|
)
|
|
(36
|
)
|
a
|
78
|
|
|||||
Year Ended December 31, 2012
|
|
73
|
|
|
21
|
|
|
(2
|
)
|
|
(12
|
)
|
a
|
80
|
|
a.
|
Represents amounts paid or adjustments to reserves based on revised estimates.
|
FREEPORT-McMoRan INC.
|
|||||
EXHIBIT INDEX
|
|||||
|
|
Filed
|
|
|
|
Exhibit
|
|
with this
|
Incorporated by Reference
|
||
Number
|
Exhibit Title
|
Form 10-K
|
Form
|
File No.
|
Date Filed
|
4.10
|
Supplemental Indenture dated as of May 31, 2013, among FCX, Freeport-McMoRan Oil & Gas LLC and U.S. Bank National Association, as Trustee (relating to the 2.375% Senior Notes due 2018, the 3.100% Senior Notes due 2020, the 3.875% Senior Notes due 2023, and the 5.450% Senior Notes due 2043).
|
|
8-K
|
001-11307-01
|
6/3/2013
|
4.11
|
Indenture dated as of March 13, 2007, among Plains Exploration & Production Company, the Subsidiary Guarantors parties thereto, and Wells Fargo Bank, N.A., as Trustee (relating to the 6.625% Senior Notes due 2021, the 6.75% Senior Notes due 2022, the 6.125% Senior Notes due 2019, the 6.5% Senior Notes due 2020, and the 6.875% Senior Notes due 2023).
|
|
8-K
|
001-31470
|
3/13/2007
|
4.12
|
Twelfth Supplemental Indenture dated as of March 29, 2011 to the Indenture dated as of March 13, 2007, among Plains Exploration & Production Company, the Subsidiary Guarantors parties thereto and Wells Fargo Bank, N.A., as Trustee (relating to the 6.625% Senior Notes due 2021).
|
|
8-K
|
001-31470
|
3/29/2011
|
4.13
|
Thirteenth Supplemental Indenture dated as of November 21, 2011 to the Indenture dated as of March 13, 2007, among Plains Exploration & Production Company, the Subsidiary Guarantors parties thereto and Wells Fargo Bank, N.A., as Trustee (relating to the 6.75% Senior Notes due 2022).
|
|
8-K
|
001-31470
|
11/22/2011
|
4.14
|
Fourteenth Supplemental Indenture dated as of April 27, 2012 to the Indenture dated as of March 13, 2007, among Plains Exploration & Production Company, the Subsidiary Guarantors parties thereto and Wells Fargo Bank, N.A., as Trustee (relating to the 6.125% Senior Notes due 2019).
|
|
8-K
|
001-31470
|
4/27/2012
|
4.15
|
Sixteenth Supplemental Indenture dated as of October 26, 2012 to the Indenture dated as of March 13, 2007, among Plains Exploration & Production Company, the Subsidiary Guarantors parties thereto and Wells Fargo Bank, N.A., as Trustee (relating to the 6.5% Senior Notes due 2020).
|
|
8-K
|
001-31470
|
10/26/2012
|
4.16
|
Seventeenth Supplemental Indenture dated as of October 26, 2012 to the Indenture dated as of March 13, 2007, among Plains Exploration & Production Company, the Subsidiary Guarantors parties thereto and Wells Fargo Bank, N.A., as Trustee (relating to the 6.875% Senior Notes due 2023).
|
|
8-K
|
001-31470
|
10/26/2012
|
4.17
|
Eighteenth Supplemental Indenture dated as of May 31, 2013 to the Indenture dated as of March 13, 2007, among Freeport-McMoRan Oil & Gas LLC, as Successor Issuer, FCX Oil & Gas Inc., as Co-Issuer, FCX, as Parent Guarantor, Plains Exploration & Production Company, as Original Issuer, and Wells Fargo Bank, N.A., as Trustee (relating to the 6.625% Senior Notes due 2021, the 6.75% Senior Notes due 2022, the 6.125% Senior Notes due 2019, the 6.5% Senior Notes due 2020, and the 6.875% Senior Notes due 2023).
|
|
8-K
|
001-11307-01
|
6/3/2013
|
4.18
|
Form of Indenture dated as of September 22, 1997, between Phelps Dodge Corporation and The Chase Manhattan Bank, as Trustee (relating to the 7.125% Senior Notes due 2027, the 9.50% Senior Notes due 2031, and the 6.125% Senior Notes due 2034).
|
|
S-3
|
333-36415
|
9/25/1997
|
4.19
|
Form of 7.125% Debenture due November 1, 2027 of Phelps Dodge Corporation issued on November 5, 1997, pursuant to the Indenture dated as of September 22, 1997, between Phelps Dodge Corporation and The Chase Manhattan Bank, as Trustee (relating to the 7.125% Senior Notes due 2027).
|
|
8-K
|
001-00082
|
11/3/1997
|
FREEPORT-McMoRan INC.
|
|||||
EXHIBIT INDEX
|
|||||
|
|
Filed
|
|
|
|
Exhibit
|
|
with this
|
Incorporated by Reference
|
||
Number
|
Exhibit Title
|
Form 10-K
|
Form
|
File No.
|
Date Filed
|
4.20
|
Form of 9.5% Note due June 1, 2031 of Phelps Dodge Corporation issued on May 30, 2001, pursuant to the Indenture dated as of September 22, 1997, between Phelps Dodge Corporation and First Union National Bank, as successor Trustee (relating to the 9.50% Senior Notes due 2031).
|
|
8-K
|
001-00082
|
5/30/2001
|
4.21
|
Form of 6.125% Note due March 15, 2034 of Phelps Dodge Corporation issued on March 4, 2004, pursuant to the Indenture dated as of September 22, 1997, between Phelps Dodge Corporation and First Union National Bank, as successor Trustee (relating to the 6.125% Senior Notes due 2034).
|
|
10-K
|
001-00082
|
3/7/2005
|
10.1
|
Contract of Work dated December 30, 1991, between the Government of the Republic of Indonesia and PT Freeport Indonesia.
|
|
S-3
|
333-72760
|
11/5/2001
|
10.2
|
Memorandum of Understanding dated as of July 25, 2014, between the Directorate General of Mineral and Coal, the Ministry of Energy and Mineral Resources and PT Freeport Indonesia on Adjustment of the Contract of Work.
|
|
8-K
|
001-11307-01
|
7/8/2014
|
Extension dated as of January 23, 2015, to Memorandum of Understanding Between the Government of the Republic of Indonesia and PT Freeport Indonesia dated as of July 25, 2014.
|
X
|
|
|
|
|
10.4
|
Participation Agreement dated as of October 11, 1996, between PT Freeport Indonesia and P.T. RTZ-CRA Indonesia (a subsidiary of Rio Tinto PLC) with respect to a certain contract of work.
|
|
S-3
|
333-72760
|
11/5/2001
|
First Amendment dated April 30, 1999, Second Amendment dated February 22, 2006, Third Amendment dated October 7, 2009, Fourth Amendment dated November 14, 2013, and Fifth Amendment dated August 4, 2014, to the Participation Agreement dated as of October 11, 1996, between PT Freeport Indonesia and P.T. Rio Tinto Indonesia (formerly P.T. RTZ-CRA Indonesia).
|
X
|
|
|
|
|
10.6
|
Agreement dated as of October 11, 1996, to Amend and Restate Trust Agreement among PT Freeport Indonesia, FCX, the RTZ Corporation PLC (now Rio Tinto PLC), P.T. RTZ-CRA Indonesia, RTZ Indonesian Finance Limited and First Trust of New York, National Association, and The Chase Manhattan Bank, as Administrative Agent, JAA Security Agent and Security Agent.
|
|
8-K
|
001-09916
|
11/13/1996
|
10.7
|
Concentrate Purchase and Sales Agreement dated effective December 11, 1996, between PT Freeport Indonesia and PT Smelting.
|
|
S-3
|
333-72760
|
11/5/2001
|
Amendment No. 1, dated as of March 19, 1998, Amendment No. 2 dated as of December 1, 2000, Amendment No. 3 dated as of January 1, 2003, Amendment No. 4 dated as of May 10, 2004, Amendment No. 5 dated as of March 19, 2009, Amendment No. 6 dated as of January 1, 2011, and Amendment No. 7 dated as of October 29, 2012, to the Concentrate Purchase and Sales Agreement dated effective December 11, 1996, between PT Freeport Indonesia and PT Smelting.
|
X
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FREEPORT-McMoRan INC.
|
|||||
EXHIBIT INDEX
|
|||||
|
|
Filed
|
|
|
|
Exhibit
|
|
with this
|
Incorporated by Reference
|
||
Number
|
Exhibit Title
|
Form 10-K
|
Form
|
File No.
|
Date Filed
|
Third Amended and Restated Joint Venture and Shareholders Agreement dated as of December 11, 2003 among PT Freeport Indonesia, Mitsubishi Corporation, Nippon Mining & Metals Company, Limited and PT Smelting, as amended by the First Amendment dated as of September 30, 2005, and the Second Amendment dated as of April 30, 2008.
|
X
|
|
|
|
|
10.10
|
Participation Agreement, dated as of March 16, 2005, among Phelps Dodge Corporation, Cyprus Amax Minerals Company, a Delaware corporation, Cyprus Metals Company, a Delaware corporation, Cyprus Climax Metals Company, a Delaware corporation, Sumitomo Corporation, a Japanese corporation, Summit Global Management, B.V., a Dutch corporation, Sumitomo Metal Mining Co., Ltd., a Japanese corporation, Compañia de Minas Buenaventura S.A.A., a Peruvian sociedad anonima abierta, and Sociedad Minera Cerro Verde S.A.A., a Peruvian sociedad anonima abierta.
|
|
8-K
|
001-00082
|
3/22/2005
|
10.11
|
Shareholders Agreement, dated as of June 1, 2005, among Phelps Dodge Corporation, Cyprus Climax Metals Company, a Delaware corporation, Sumitomo Corporation, a Japanese corporation, Sumitomo Metal Mining Co., Ltd., a Japanese corporation, Summit Global Management B.V., a Dutch corporation, SMM Cerro Verde Netherlands, B.V., a Dutch corporation, Compañia de Minas Buenaventura S.A.A., a Peruvian sociedad anonima abierta, and Sociedad Minera Cerro Verde S.A.A., a Peruvian sociedad anonima abierta.
|
|
8-K
|
001-00082
|
6/7/2005
|
10.13
|
Amended and Restated Mining Convention dated as of September 28, 2005, among the Democratic Republic of Congo, La Générale des Carrières et des Mines, Lundin Holdings Ltd. (now TF Holdings Limited) and Tenke Fungurume Mining S.A.R.L.
|
|
8-K
|
001-11307-01
|
9/2/2008
|
10.14
|
Addendum No.1 to the Amended and Restated Mining Convention dated as of September 28, 2005, among the Democratic Republic of Congo, La Générale des Carrières et des Mines, TF Holdings Limited and Tenke Fungurume Mining S.A.R.L., dated as of December 11, 2010
|
|
10-Q
|
001-11307-01
|
5/6/2011
|
10.15
|
Amended and Restated Shareholders Agreement dated as of September 28, 2005, by and between La Générale des Carrières et des Mines and Lundin Holdings Ltd. (now TF Holdings Limited) and its subsidiaries.
|
|
8-K
|
001-11307-01
|
9/2/2008
|
10.16
|
Addendum No.1 to the Amended and Restated Shareholders Agreement dated as of September 28, 2005, among La Générale des Carrières et des Mines and TF Holdings Limited, Chui Ltd., Faru Ltd., Mboko Ltd., Tembo Ltd., and Tenke Fungurume Mining S.A.R.L., dated as of December 11, 2010.
|
|
10-Q
|
001-11307-01
|
5/6/2011
|
10.17
|
Term Loan Agreement dated as of February 14, 2013, among FCX, And Freeport-McMoRan Oil & Gas LLC, as borroweres, JPMorgan Chase Bank, N.A., as administrative agent, Bank of America, N.A., as syndication agent, HSBC Bank USA, National Association, Mizuho Corporate Bank, Ltd., Sumitomo Mitsui Banking Corporation, The Bank of Nova Scotia and The Bank of Tokyo-Mitsubishi UFJ, Ltd., as co-documentation agents, and each of the lenders party thereto.
|
|
8-K
|
001-11307-01
|
2/15/2013
|
|
|
|
|
|
|
FREEPORT-McMoRan INC.
|
|||||
EXHIBIT INDEX
|
|||||
|
|
Filed
|
|
|
|
Exhibit
|
|
with this
|
Incorporated by Reference
|
||
Number
|
Exhibit Title
|
Form 10-K
|
Form
|
File No.
|
Date Filed
|
First Amendment dated as of February 27, 2015, to Term Loan Agreement dated as of February 14, 2013, among FCX and Freeport-McMoRan Oil & Gas LLC, as borrowers, JPMorgan Chase Bank, N.A., as administrative agent, Bank of America, N.A., as syndication agent, HSBC Bank USA, National Association, Mizuho Corporate Bank, Ltd., Sumitomo Mitsui Banking Corporation, The Bank of Nova Scotia and The Bank of Tokyo-Mitsubishi UFJ, Ltd., as co-documentation agents, and each of the lenders party thereto.
|
X
|
|
|
|
|
10.19
|
Revolving Credit Agreement dated as of February 14, 2013, among FCX, PT Freeport Indonesia, and Freeport-McMoRan Oil & Gas LLC, as borrowers, JPMorgan Chase Bank, N.A., as administrative agent and the swingline lender, Bank of America, N.A., as syndication agent, BNP Paribas, Citibank, N.A., HSBC Bank USA, National Association, Muzho Corporate Bank, Ltd., Sumitomo Mitsui Banking Corporation, The Bank of Nova Scotia and The Bank of Tokyo-Mitsubishi UFJ, Ltd., as co-documentation agents, and each of the lenders and issuing banks party thereto.
|
|
8-K
|
001-11307-01
|
2/15/2013
|
10.20
|
First Amendment dated as of May 30, 2014, to the Revolving Credit Agreement dated as of February 14, 2013, among FCX, PT Freeport Indonesia and Freeport-McMoRan Oil & Gas LLC, as borrowers, JPMorgan Chase Bank, N.A., as administrative agent and the swingline lender, Bank of America, N.A., as syndication agent, BNP Paribas, Citibank, N.A., HSBC Bank USA, National Association, Mizuho Bank, Ltd., Sumitomo Mitsui Banking Corporation, The Bank of Nova Scotia and The Bank of Tokyo-Mitsubishi UFJ, Ltd., as co-documentation agents, and each of the lenders and issuing banks party thereto.
|
|
8-K
|
001-11307-01
|
6/2/2014
|
Second Amendment dated as of February 27, 2015, to the Revolving Credit Agreement dated as of February 14, 2013, as amended by the First Amendment dated as of May 30, 2014, among FCX, PT Freeport Indonesia and Freeport-McMoRan Oil & Gas LLC, as borrowers, JPMorgan Chase Bank, N.A., as administrative agent and the swingline lender, Bank of America, N.A., as syndication agent, BNP Paribas, Citibank, N.A., HSBC Bank USA, National Association, Mizuho Bank, Ltd., Sumitomo Mitsui Banking Corporation, The Bank of Nova Scotia and The Bank of Tokyo-Mitsubishi UFJ, Ltd., as co-documentation agents, and each of the lenders and issuing banks party thereto.
|
X
|
|
|
|
|
10.22#
|
Crude Oil Purchase Agreement dated January 1, 2012, between Plains Exploration & Production Company and ConocoPhillips Company.
|
|
10-Q/A
|
001-31470
|
9/22/2011
|
First Amendment, dated January 1, 2014, to the Crude Oil Purchase Agreement dated January 1, 2012, between Freeport-McMoRan Oil & Gas LLC (formerly Plains Exploration & Production Company) and ConocoPhillips Company.
|
X
|
|
|
|
|
Second Amendment, dated July 1, 2014, to the Crude Oil Purchase Agreement dated January 1, 2012, between Freeport-McMoRan Oil & Gas LLC and ConocoPhillips Company.
|
X
|
|
|
|
|
10.25*
|
Letter Agreement, dated as of December 5, 2012, by and among James C. Flores, Plains Exploration & Production Company and FCX
|
|
8-K
|
001-11307-01
|
12/6/2012
|
10.26*
|
Amended and Restated Employment Agreement dated February 27, 2014, between FCX and James C. Flores.
|
|
8-K
|
001-11307-01
|
3/3/2014
|
FREEPORT-McMoRan INC.
|
|||||
EXHIBIT INDEX
|
|||||
|
|
Filed
|
|
|
|
Exhibit
|
|
with this
|
Incorporated by Reference
|
||
Number
|
Exhibit Title
|
Form 10-K
|
Form
|
File No.
|
Date Filed
|
10.27*
|
Letter Agreement dated as of December 19, 2013, by and between FCX and Richard C. Adkerson.
|
|
8-K
|
001-11307-01
|
12/23/2013
|
FCX Director Compensation.
|
X
|
|
|
|
|
10.29*
|
Amended and Restated Executive Employment Agreement dated effective as of December 2, 2008, between FCX and James R. Moffett.
|
|
10-K
|
001-11307-01
|
2/26/2009
|
10.30*
|
Amended and Restated Change of Control Agreement dated effective as of December 2, 2008, between FCX and James R. Moffett.
|
|
10-K
|
001-11307-01
|
2/26/2009
|
10.31*
|
Letter Agreement dated February 27, 2014, between FCX and James R. Moffett.
|
|
8-K
|
001-11307-01
|
3/3/2014
|
10.32*
|
Amended and Restated Executive Employment Agreement dated effective as of December 2, 2008, between FCX and Kathleen L. Quirk.
|
|
10-K
|
001-11307-01
|
2/26/2009
|
10.33*
|
Amendment to Amended and Restated Executive Employment Agreement dated December 2, 2008, by and between FCX and Kathleen L. Quirk, dated April 27, 2011.
|
|
8-K
|
001-11307-01
|
4/29/2011
|
10.34*
|
FCX Executive Services Program
|
|
10-K
|
001-11307-01
|
2/27/2012
|
10.35*
|
FCX Supplemental Executive Retirement Plan, as amended and restated.
|
|
8-K
|
001-11307-01
|
2/5/2007
|
10.36*
|
FCX Supplemental Executive Capital Accumulation Plan.
|
|
10-Q
|
001-11307-01
|
5/12/2008
|
10.37*
|
FCX Supplemental Executive Capital Accumulation Plan Amendment One.
|
|
10-Q
|
001-11307-01
|
5/12/2008
|
10.38*
|
FCX Supplemental Executive Capital Accumulation Plan Amendment Two.
|
|
10-K
|
001-11307-01
|
2/26/2009
|
FCX Supplemental Executive Capital Accumulation Plan Amendment Three.
|
X
|
|
|
|
|
FCX Supplemental Executive Capital Accumulation Plan Amendment Four.
|
X
|
|
|
|
|
FCX 2005 Supplemental Executive Capital Accumulation Plan, as amended and restated effective January 1, 2015.
|
X
|
|
|
|
|
10.42*
|
FCX 1995 Stock Option Plan for Non-Employee Directors, as amended and restated.
|
|
10-Q
|
001-11307-01
|
5/10/2007
|
10.43*
|
FCX Amended and Restated 1999 Stock Incentive Plan, as amended and restated.
|
|
10-Q
|
001-11307-01
|
5/10/2007
|
10.44*
|
FCX 2003 Stock Incentive Plan, as amended and restated.
|
|
10-Q
|
001-11307-01
|
5/10/2007
|
10.45*
|
Form of Amendment No. 1 to Notice of Grant of Nonqualified Stock Options and Stock Appreciation Rights under the 2004 Director Compensation Plan.
|
|
8-K
|
001-11307-01
|
5/5/2006
|
10.46*
|
FCX 2004 Director Compensation Plan, as amended and restated.
|
|
10-Q
|
001-11307-01
|
8/6/2010
|
10.47*
|
FCX Amended and Restated 2006 Stock Incentive Plan.
|
|
10-K
|
001-11307-01
|
2/27/2014
|
10.48*
|
Form of Notice of Grant of Nonqualified Stock Options for grants under the FCX 1999 Stock Incentive Plan, the 2003 Stock Incentive Plan and the 2006 Stock Incentive Plan.
|
|
10-K
|
001-11307-01
|
2/29/2008
|
10.49*
|
Form of Notice of Grant of Nonqualified Stock Options and Restricted Stock Units under the 2006 Stock Incentive Plan (for grants made to non-management directors and advisory directors).
|
|
8-K
|
001-11307-01
|
6/14/2010
|
10.50*
|
FCX 2009 Annual Incentive Plan
|
|
8-K
|
001-11307-01
|
6/17/2009
|
FREEPORT-McMoRan INC.
|
|||||
EXHIBIT INDEX
|
|||||
|
|
Filed
|
|
|
|
Exhibit
|
|
with this
|
Incorporated by Reference
|
||
Number
|
Exhibit Title
|
Form 10-K
|
Form
|
File No.
|
Date Filed
|
10.51*
|
Form of Nonqualified Stock Options Grant Agreement (effective February 2012).
|
|
10-K
|
001-11307-01
|
2/27/2012
|
10.52*
|
Form of Restricted Stock Unit Agreement (effective February 2012).
|
|
10-K
|
001-11307-01
|
2/27/2012
|
10.53*
|
Form of Performance-Based Restricted Stock Unit Agreement (effective February 2012).
|
|
10-K
|
001-11307-01
|
2/27/2012
|
10.54*
|
Form of Nonqualified Stock Options Grant Agreement under the FCX stock incentive plans (effective February 2014).
|
|
10-K
|
001-11307-01
|
2/27/2014
|
10.55*
|
Form of Restricted Stock Unit Agreement under the FCX stock incentive plans (effective February 2014).
|
|
10-K
|
001-11307-01
|
2/27/2014
|
10.56*
|
Form of Performance Share Unit Agreement (effective February 2014).
|
|
8-K
|
001-11307-01
|
3/3/2014
|
10.57*
|
FCX Annual Incentive Plan (For Fiscal Years Ending 2014 - 2018).
|
|
8-K
|
001-11307-01
|
6/18/2014
|
10.58*
|
Form of Notice of Grant of Restricted Stock Units under the 2006 Stock Incentive Plan (for grants made to non-management directors).
|
|
10-Q
|
001-11307-01
|
8/11/2014
|
Form of Restricted Stock Unit Agreement under the FCX stock incentive plans (effective February 2015).
|
X
|
|
|
|
|
FCX Computation of Ratio of Earnings to Fixed Charges.
|
X
|
|
|
|
|
14.1
|
FCX Principles of Business Conduct.
|
|
10-K
|
001-11307-01
|
2/29/2008
|
Subsidiaries of FCX.
|
X
|
|
|
|
|
Consent of Ernst & Young LLP.
|
X
|
|
|
|
|
Consent of Netherland, Sewell & Associates, Inc.
|
X
|
|
|
|
|
Consent of Ryder Scott Company, L.P.
|
X
|
|
|
|
|
Certified resolution of the Board of Directors of FCX authorizing this report to be signed on behalf of any officer or director pursuant to a Power of Attorney.
|
X
|
|
|
|
|
Powers of Attorney pursuant to which this report has been signed on behalf of certain officers and directors of FCX.
|
X
|
|
|
|
|
Certification of Principal Executive Officer pursuant to Rule 13a-14(a)/15d – 14(a).
|
X
|
|
|
|
|
Certification of Principal Financial Officer pursuant to Rule 13a-14(a)/15d – 14(a).
|
X
|
|
|
|
|
Certification of Principal Executive Officer pursuant to 18 U.S.C. Section 1350.
|
X
|
|
|
|
|
Certification of Principal Financial Officer pursuant to 18 U.S.C Section 1350.
|
X
|
|
|
|
|
Mine Safety Disclosure.
|
X
|
|
|
|
|
99.1
|
Asset and Stock Purchase Agreement among OMG Harjavalta Chemicals Holding BV, OMG Americas, Inc., OM Group, Inc., Koboltti Chemicals Holdings Limited and solely for purposes of Section 10.13 and Exhibit A, Freeport-McMoRan Corporation, dated as of January 21, 2013.
|
|
10-K
|
001-11307-01
|
2/22/2013
|
Report of Netherland, Sewell & Associates, Inc.
|
X
|
|
|
|
|
Report of Ryder Scott Company, L.P.
|
X
|
|
|
|
|
101.INS
|
XBRL Instance Document.
|
X
|
|
|
|
101.SCH
|
XBRL Taxonomy Extension Schema.
|
X
|
|
|
|
101.CAL
|
XBRL Taxonomy Extension Calculation Linkbase.
|
X
|
|
|
|
FREEPORT-McMoRan INC.
|
|||||
EXHIBIT INDEX
|
|||||
|
|
Filed
|
|
|
|
Exhibit
|
|
with this
|
Incorporated by Reference
|
||
Number
|
Exhibit Title
|
Form 10-K
|
Form
|
File No.
|
Date Filed
|
101.DEF
|
XBRL Taxonomy Extension Definition Linkbase.
|
X
|
|
|
|
101.LAB
|
XBRL Taxonomy Extension Label Linkbase.
|
X
|
|
|
|
101.PRE
|
XBRL Taxonomy Extension Presentation Linkbase.
|
X
|
|
|
|
Atas nama Pemerintah
Direktur Jenderal Mineral dan Batubara Kementerian Energi dan Sumber Daya Mineral
/s/ R. Sukhyar
(R. Sukhyar)
|
Atas nama PT Freeport Indonesia
Presiden Direktur
PT Freeport Indonesia
/s/ Maroef Sjamsoeddin
(Maroef Sjamsoeddin)
|
(1)
|
P.T. FREEPORT INDONESIA COMPANY, a limited liability company organized under the laws of the Republic of Indonesia and domesticated in the State of Delaware, U.S.A. (“PT-FI”) and
|
(2)
|
P.T. RTZ-CRA INDONESIA, a limited liability company organized under the laws of the Republic of Indonesia (“PTRTI”),
|
(A)
|
By a Contract of Work dated 30 December 1991 made between The Government of the Republic of Indonesia (the “Government”) and PT-FI, the Government appointed PT-FI as the sole contractor for the Government with respect to the Contract Area, as defined in the Contract of Work, with the sole rights to explore, mine, process, store, transport, market, sell, and dispose of Products, as defined below, in the Contract Area (defined as aforesaid)
|
(B)
|
Pursuant to that certain Participation Agreement dated October 11, 1996, between PT-FI and PTRTI (as in effect prior to the effectiveness of this Amendment, the “Participation Agreement”), PT-FI and PTRTI participate in operations under the COW (as defined below) on the terms and conditions set forth therein
|
(C)
|
PT-FI and PTRTI desire to amend the Participation Agreement as hereinafter set forth
|
1.
|
Definitions
. In this Amendment (including the Schedules and Annexes hereto), unless the context otherwise requires, capitalized terms used herein shall have the meanings provided under the Participation Agreement.
|
2.
|
Amendments To The Participation Agreement (including Annexes A and B thereto)
. The Participation Agreement (including Annex A and Annex B thereto) is hereby amended as follows:
|
(a)
|
Concerning Close-Down (Clauses 1.1.12 and 8.8.2 of the Participation Agreement and paragraph 10.4.2 of the Financial and Accounting Procedures)
.
|
(i)
|
With effect from the date of this Amendment, Clause 1.1.12 of the Participation Agreement is hereby amended and restated in its entirety as follows:
|
(ii)
|
With effect from the date of this Amendment, Clause 8.8.2 of the Participation Agreement is hereby amended and restated in its entirety as follows:
|
(iii)
|
With effect from the date of this Amendment, paragraph 10.4.2 of the Financial and Accounting Procedures is hereby amended and restated in its entirety as follows:
|
(b)
|
Concerning the Operating Committee (Clauses 8.2 and 8.6 of the Participation Agreement)
.
|
(i)
|
With effect from January 1, 1998, Clause 8.2 of the Participation Agreement is hereby amended and restated in its entirety as follows:
|
“8.2
|
Operating Committee. PT-FI shall establish an Operating Committee to, among other things:
|
(i)
|
receive reports on all operations within the Contract Area, including Joint Operations,
|
(ii)
|
design for presentation to the board of directors of FCX and the boards of commissioners of PT-FI and PTRTI appropriate actions respecting the Joint Operations,
|
(iii)
|
develop plans and make recommendations to the board of directors of PT‑FI,
|
(iv)
|
monitor execution of plans approved by the board of directors of PT-FI, and
|
(v)
|
subject to the control of the board of directors of PT-FI, be involved generally in directing day-to-day operations of the business of PT-FI,
|
(i)
|
note any such AFE in an amount equal to or in excess of $2.5 million but less than $5.0 million which has been
|
(ii)
|
be the relevant body to, and shall have authority to, approve any such AFE in an amount equal to or in excess of $5.0 million; but less than or equal to $10.0 million; and
|
(iii)
|
have the authority to recommend for approval by the appropriate bodies within PT-FI and PTRTI any such AFE in an amount in excess of $10.0 million.”
|
(i)
|
a review of forecasts for quarter and year-to-date results;
|
(ii)
|
a determination of forecasts of projected Incremental Production; and
|
(iii)
|
approval of annual plans for Operating Costs and Replacement Capital Costs (as those terms are defined in paragraphs 1.1I and 1.1J of the Financial and Accounting Procedures) together with quarterly re-forecasts thereof.”
|
(c)
|
Concerning Hedging Activities (Clause 9.2.6 of the Participation Agreement)
. With effect from January 1, 1998, Clause 9.2.6 of the Participation Agreement is hereby amended and restated in its entirety as follows:
|
“9.2.6
|
The Operator shall sell on behalf of the Participants with an interest in such Products, the Products derived from Enterprise Operations on terms which shall be discussed with such Participants. In carrying out its obligations pursuant to this Clause 9.2.6, the Operator shall conduct such hedging and other price protection activities as are authorized by the relevant Participant with an interest in such Products. However, the costs and benefits of such price protection activities shall be specifically allocated to and borne solely by the authorizing Participant.
|
(d)
|
Concerning Adjustments to the Product Schedule (Clause 16.4.2 of the Participation Agreement)
.
|
(i)
|
With effect from January 1, 1998, Clause 16.4.2 of the Participation Agreement is hereby amended and restated in its entirety as follows:
|
(i)
|
The Operator shall determine in relation to each Product separately the Deemed Metal Loss according to the following formula:
|
where
n
|
=
|
the Product in question
|
E
|
=
|
the number of days in the Interruption Period
|
F
|
=
|
average planned throughput in tonnes of ore per day of the Interruption Period, according to the planned production of Products for the Year as shown in the then current programme and budget (which, in the case of Joint Operations, shall be the Approved Programme and Budget) for that Year (such Planned Production being the “Planned Production”)
|
G
|
=
|
actual throughput in tonnes of ore during the Interruption Period
|
H
|
=
|
planned mill grade for the Product in question for the Year in question as shown in the then current programme and budget (which, in the case of Joint Operations, shall be the Approved Programme and Budget)
|
I
|
=
|
planned mill recoveries for the Product in question for the Year in question as shown in the then current programme and budget (which in the case of Joint Operations, shall be the Approved Programme and Budget).
|
(ii)
|
If the Deemed Metal Loss for any Product determined according to (i) above either alone or when aggregated with any previous Deemed Metal Loss in the same Year for that Product which has not resulted in an adjustment to the Product Schedule pursuant to (iii) below exceeds an amount equal to one percent (1%) of the Planned Production of that Product (such Deemed Metal Loss either alone or as aggregated being, in such case, the “Metal Loss”), the adjustment specified in (iii) below shall be made. If the Deemed Metal Loss either alone or when so aggregated does not exceed an amount equal to one percent (1%) of the Planned Production for that Year of that Product, the amount of such Deemed Metal Loss shall be carried forward for aggregation with any subsequent Deemed Metal Loss for that Product which occurs in the same Year. For the avoidance of doubt, it is hereby agreed and declared that any Deemed Metal Loss outstanding at the end of any Year will not be carried forward.
|
(iii)
|
On each occasion that any determination made pursuant to (ii) above shows that there has been a
|
(iv)
|
At the same time as any adjustment to the Product Schedule pursuant to (iii) above is made, an amount equal to the Metal Loss of each Product shall be added to the final Year of production as shown by the Product Schedule prior to the occurrence of the cause or causes. If, in the final Year, the scheduled production as so revised would exceed the production which would result from a daily rate of 118,000 tonnes per day, the excess shall be carried forward to the subsequent Year (and the Cut-off Date shall be extended accordingly) and appropriate adjustments made to the production of recovered metal for that Year.
|
(v)
|
Each reduction and adjustment of the Product Schedule pursuant to (iii) and/or (iv) above shall be made to the nearest whole mil.lbs or 000 oz. as the case may be.”
|
(ii)
|
Pursuant to Clause 16.4.2 of the Participation Agreement (as amended by this First Amendment), with effect from September 30, 1998, the Product Schedule annexed to the Participation Agreement as Annex A is hereby amended as follows for the years 1998 and 2021:
|
Year
|
Recovered Metal in Concentrate
|
|||||
|
|
|||||
|
Cu (mil. lbs.)
|
Au (000 oz.)
|
Ag (000 oz.)
|
|||
|
Current
|
Revised
|
Current
|
Revised
|
Current
|
Revised
|
1998
|
1,033
|
1,022
|
1,365
|
1,350
|
3,275
|
3,239
|
2021
|
219
|
230
|
344
|
359
|
716
|
752
|
(e)
|
Concerning the Voluntary Additional Royalties
. With effect from January 1, 1999, the Participants acknowledge and agree that the voluntary additional royalties on Products produced and sold from mill throughput in excess of 200,000 tonnes per day as described in the letter dated February 11, 1999 from the Operator to the Director General of General Mining shall be paid to the Government by and allocated between the Participants in both cases on the same basis as royalties required to be paid under the COW.
|
(f)
|
Concerning Certain Definitions in the Financial and Accounting Procedures
.
|
(a)
|
expenditures, adjusted for changes in inventory, that is either directly incurred or allocable to Chargeable Operations, including but not limited to production, maintenance and repair costs, logistical support and freight and handling costs, infrastructure and support facility costs (including similar expenditures under Privatization Agreements), Taxes (other than those imposed on net income of the Participants), and general and administrative costs of PT-FI (but not PTRTI) of the kind identified in PT-FI’s annual financial statements for the period ended 31 December 1994 under the heading “General and Administrative Costs”, but excluding depreciation, non-cash charges, interest, payments in the nature of principal and interest under Privatization Agreements, and accounting provisions and reserves;
|
(b)
|
Replacement Capital Costs in carrying out Chargeable Operations (including such expenditures under Privatization Agreements);
|
(c)
|
the cash element of specific accounting provisions incurred in the normal course of business in conducting Chargeable Operations; and
|
(d)
|
the original cash amount for materials and/or supplies purchased after the Sharing Commencement Date that are specifically identified as obsolete and written off against the reserve maintained therefor or, if such materials or supplies are sold, the excess of such original cash purchase price over the net proceeds from the sale of such materials or supplies.
|
(ii)
|
With effect from January 1, 1998, the definition of “Sales Revenues” in paragraph 1.1 K of the Financial and Accounting Procedures is hereby amended and restated in its entirety as follows:
|
(iii)
|
With effect from January 1, 1998, the following definitions shall be added to paragraph 1.1 of the Financial and Accounting Procedures:
|
(i)
|
smelting, treatment and refining charges, concentrate freight and handling costs, and other selling expenses attributable to concentrate sold other than refining charges relating specifically to payable gold and/or silver contained in concentrate,
|
(ii)
|
royalties required to be paid to the Government under the COW on copper sold as concentrate, and
|
(iii)
|
voluntary additional royalties paid to the Government on copper sold as concentrate.
|
M.
|
“Gold Sales Revenues” means the sales value of payable gold in concentrate based on actual prices realized (or which would have been realized but for any hedging and other price protection activities) net of
|
(i)
|
refining charges relating specifically to payable gold contained in concentrate,
|
(ii)
|
royalties required to be paid to the Government under the COW on gold sold as concentrate, and
|
(iii)
|
voluntary additional royalties paid to the Government on gold sold as concentrate.
|
N.
|
“Silver Sales Revenues” means the sales value of payable silver in concentrate based on actual prices realized (or which would have been realized but for any hedging and other price protection activities) net of
|
(i)
|
refining charges relating specifically to payable silver contained in concentrate,
|
(ii)
|
royalties required to be paid to the Government under the COW on silver sold as concentrate, and
|
(iii)
|
voluntary additional royalties paid to the Government on silver sold as concentrate.
|
O.
|
“Other Product Sales Revenues” means the value of Products other than copper, gold or silver (if any) sold
|
P.
|
The term “payable”, when used in connection with the copper, gold and/or silver content of concentrates sold shall mean that portion of such content for which a price is paid to the Operator (selling on behalf of the Participants pursuant to Clause 9.2.6 of this Agreement.)”
|
(iii)
|
With effect from January 1, 1998, the definition of “Sharing Commencement Date” in paragraph 1.2 E of the Financial and Accounting Procedures is hereby amended and restated in its entirety as follows:
|
(g)
|
Concerning Distribution of Incremental Expansion Revenues (paragraph 5.3.2 of the Financial and Accounting Procedures)
|
(i)
|
With effect from January 1, 1998, paragraph 5.3.2 of the Financial and Accounting Procedures is hereby amended and restated in its entirety as follows:
|
“5.3.2
|
Distribution of Incremental Expansion Revenues
|
(ii)
|
With effect from January 1, 1998, the following paragraph shall be added to the Financial and Accounting Procedures as paragraph 5.3.3:
|
“5.3.3
|
Statements and Annual Adjustment
|
(a)
|
Not later than the 20
th
business day of each month during the Production Period, the Operator shall submit to each Participant schedules, substantially in the form of Schedule 5.3 hereto or as such form may be revised from time to time by agreement between the Participants, showing on a Year-to-date basis as at the end of the immediately preceding calendar month (i) Incremental Expansion Cashflow, (ii) projected Incremental Production, (iii) the calculation of Incremental Expansion Revenues and Expansion Share of Costs, (iv) a summary of distributions of Incremental Expansion Revenues and/or Cashflows, (v) accounting rollforward of Product inventory, (vi) opening metal inventory sales analysis and (vii) data input for accounting/reporting.
|
(b)
|
Not later than 120 business days after the end of each Year during the Production Period, a statement of the previous Year’s Incremental Expansion Cashflow shall be prepared by the Operator and distributed to the Participants. If the annual settlement statement indicates an overpayment of Incremental Expansion Cashflow, each Participant shall pay the Operator its share of such over-payment within 30 business days. If the annual settlement statement indicates an underpayment of Incremental Expansion Cashflow, the Operator shall pay to each Participant its share of such underpayment within 30 business days.
|
(c)
|
Any adjustment that is determined to be required at any time shall be included in the next monthly statement.”
|
(h)
|
Concerning Unutilized Cash Calls (paragraph 10.3.4 of the Financial and Accounting Procedures)
. With effect from January 1, 1998, paragraph 10.3.4 of the Financial and Accounting Procedures is hereby amended and restated in its entirety as follows:
|
(a)
|
Each calendar month, each of the Participants shall be entitled to or (as the case may be) liable for interest on its Notional Balance (as defined in (b) below) for that month at the rate per annum which is the Operator’s average cost of borrowing under its corporate line of credit for that month as determined and certified by the Treasurer of PT-FI. The amount of such interest for each month shall be calculated in accordance with the provisions of (b) below and paid in accordance with the provisions of (c) below.
|
(b)
|
Each calendar month (a “Calculation Month”), the Operator shall determine in relation to each Participant the amount which is:
|
(i)
|
the net under- or over-call (being the cumulative difference as at the end of the calendar month which is two months prior to the Calculation Month of all of such Participant’s contributions pursuant to cash calls made by the Operator in accordance with this Agreement less the aggregate amount equal to such Participant’s share pursuant to paragraphs 3, 4, 5 and/or 6 of the Financial and Accounting Procedures of the amount actually spent by the Operator on Joint Operations) brought forward at the beginning of the previous calendar month, any negative amount being a net under-call and any positive amount being a net over-call plus
|
(ii)
|
the amount of that Participant’s cash contributions made in respect of the previous calendar month pursuant to cash calls made by the Operator in accordance with this Agreement less
|
(iii)
|
50% of the amount equal to that Participant’s share pursuant to paragraphs 3, 4, 5 and/or 6 of the Financial and Accounting Procedures of the amount actually spent by the Operator on Joint Operations during the previous calendar month.
|
(c)
|
Not later than the tenth business day after the end of each Calculation Month, the Operator shall distribute to the Participants a schedule in such form as agreed between the Participants from time to time showing the interest to which either or both of the Participants is entitled or (as the case may be) for which either or both of the Participants is liable under the provisions of (b) of this paragraph 10.3.4 above in respect of the Relevant Month. The amount of any such interest to which a Participant is entitled or (as the case may be) for which a Participant is liable in respect of each Relevant Month shall be taken into account (as a deduction from or, as the case may be, addition to, the billing) in the billing for estimated cash requirements submitted by the Operator pursuant to paragraph 10.3.1 of the Financial and Accounting Procedures for the calendar month which is two months after the Relevant Month in question.”
|
(i)
|
Concerning Cash Calls
. With effect from January 1, 1998, the following sub-paragraph shall be inserted as paragraph 10.3.6 of the Financial and Accounting Procedures:
|
“10.3.6
|
The Participants hereby acknowledge that, notwithstanding anything to the contrary in either paragraphs 5.3 or 10.3.1 of the Financial and Accounting Procedures, the Operator shall make cash calls for estimated cash requirements for the next following calendar month without regard to any revenues to which the Participants may be entitled under paragraph 5.3 of the Financial and Accounting Procedures.”
|
(j)
|
Concerning certain Capital Costs in relation to Grasberg Underground, Kucing Liar, DOM, Big Gossan and DOZ
.
|
(i)
|
With effect from January 1, 1998, the definition of “Replacement Capital Costs” in paragraph 1.1J of the Financial and Accounting Procedures shall be amended and restated in its entirety as follows:
|
“J.
|
“Replacement Capital Costs” means
|
(a)
|
Capital Costs incurred other than for Expansion, a Greenfield Project or a Sole Risk Venture
|
(b)
|
Exploration Costs in respect of Grasberg Underground, DOM and Big Gossan
|
(c)
|
the costs of any Feasibility Study in respect of the Development and Mining of Grasberg Underground, DOM and Big Gossan
|
(d)
|
one half of Common Infrastructure Costs and
|
(e)
|
Capital Costs for the Development of Grasberg Underground, DOM and Big Gossan other than any part of such Capital Costs as constitute Common Infrastructure Costs.”
|
(ii)
|
With effect from January 1, 1998, the following definitions shall be added to paragraph 1.1 of the Financial and Accounting Procedures:
|
“Q.
|
“Common Infrastructure Costs” means Capital Costs incurred in respect of drift development (including, without limitation, equipment, labour and supervision, materials and engineering) and installations (including, without limitation, central shops, power supply and distribution, ore flow, water control structures and water treatment plants) which are common to the Development of both Kucing Liar and Grasberg Underground.
|
R.
|
“Kucing Liar” means the orebody referred to as such by the Participants which lies on the southern flank of and underneath the southern portion of the Grasberg open pit.
|
S.
|
“DOZ” means the copper-gold skarn deposit, known to the Participants as the Deep Ore Zone, comprising the lower elevations (currently defined to be between 3450/L and 3050/L (block cave reserves) and between 3050/L and 2950/L (sublevel cave reserves)) of the Erstberg East Skarn System occurring on the northeast flank of the Erstberg Diorite and located about one kilometre east of the original Ertsberg pit.
|
T.
|
“DOM” means the copper-gold skarn deposit which is roughly wedge-shaped in the plan view and shaped like a double-rooted tooth in a north-south cross-section occurring on the southern flank of the Ertsberg Diorite and located almost two kilometres east-southeast of the original Ertsberg pit.
|
U.
|
“Big Gossan” means the tabular copper-gold skarn deposit occurring at elevations from below 2500 meters to over 3100 meters located about one kilometre south of the original Ertsberg pit and the eastern end of which is just east of the Grasberg de-watering drift and north of the Amole portal.
|
V.
|
“Grasberg Underground” means the deposit wholly contained within the Grasberg intrusive complex and its contact zone which is the lower portion of the Grasberg orebody and primarily below the final open pit, and is continuous with the open pit reserve, and includes mineralized material on the lower benches of the final pit that were not included in the final pit configuration.”
|
(iii)
|
With effect from January 1, 1998, paragraph 4.2 of the Financial and Accounting Procedures shall be amended by the addition to the end of the sub-paragraph of the following proviso:
|
(iv)
|
With effect from January 1, 1998, there shall be inserted at the end of and as part of sub-paragraph (i) of paragraph 5.3.1 of the Financial and Accounting Procedures the following:
|
(k)
|
Concerning Chargeable Operations Financial Statement.
|
(i)
|
With effect from 1 January 1998, there shall be added to paragraph 9.1 of the Financial and Accounting Procedures the following subparagraph:
|
“(F)
|
The Operator shall, not later than the date falling 120 days after the end of each Year, prepare financial statements showing a true and fair view of the state of affairs of the Chargeable Operations as at the end of the Year just ended and of the results of the Chargeable Operations for the period ended on the last day of the Year just ended. Such financial statements shall be prepared on a basis agreed upon by the Participants from time to time. Such agreement from time to time shall be recorded in and by Operating Committee minute.”
|
(ii)
|
With effect from 1 January 1998, there shall be inserted at the end of paragraph 9.2(A) of the Financial and Accounting Procedures the following:
|
(iii)
|
With effect from 1 January 1998, paragraph 9.2(B) of the Financial and Accounting Procedures shall be amended and restated in its entirety as follows:
|
“(B)
|
The audits shall be conducted by a firm of accountants of international standing selected by the Operator and approved by the Operating Committee and such accountants shall provide certification that the records and accounts have been properly maintained in accordance with the provisions of this Agreement, that the revenues and costs have been properly calculated and allocated to the Participants in accordance with the provisions of this Annex and the Agreement and that the financial statements prepared pursuant to paragraph 9.1(F) of this Annex have been prepared in accordance with the accounting principles agreed from time to time by the Participants.”
|
3.
|
Representations and Warranties
. Each Participant hereby represents and warrants to the other Participant as follows:
|
(a)
|
The execution, delivery and performance by such Participant of this Amendment (i) are within such Participant’s corporate powers, (ii) have been duly authorized by all necessary corporate action, (iii) require no action by or in respect of, or filing with, any governmental body, agency or official, (iv) do not contravene, or constitute a default under, any provision of any applicable law, statute, ordinance, regulation, rule, order or other governmental restriction or of the certificate or articles of incorporation or by-laws of such Participant, (v) do not contravene, or constitute a default under, any agreement, judgment, injunction, order, decree, indenture, contract lease, instrument or other commitment to which such Participant is a party or by which such Participant or any of its assets are bound and (vi) will not result in the creation or imposition of any lien upon any asset of such Participant under any existing indenture, mortgage, deed of trust, loan or loan agreement or other agreement or instrument to which such Participant is a party or by which it or any of its assets may be bound or affected.
|
(b)
|
The Participation Agreement, as amended by this Amendment is the legal, valid and binding obligation of such Participant, and is enforceable against such Participant in accordance with its terms, subject to bankruptcy, reorganization, insolvency, moratorium or other laws affecting the enforcement of creditors’ rights generally and subject to any limitation acts and to general equitable principles.
|
4.
|
Reference to and Effect Upon the Participation Agreement
. Upon the signature of this Amendment, each reference in the Participation Agreement to “this Agreement”, “hereunder”, “hereof”, “herein”, or words of like import, shall mean and be a reference to the Participation Agreement, as amended hereby.
|
5.
|
Reaffirmation
. Each Participant hereby reaffirms to the other that, except as modified hereby, the Participation Agreement remains in full force and effect and has not been otherwise waived, modified or amended. Except as expressly modified hereby, all of the terms and conditions of the Participation Agreement shall remain unaltered and in full force and effect.
|
6.
|
Choice of Law
. This Amendment shall be governed by and construed in accordance with the laws of the State of New York.
|
7.
|
Counterparts
. This Amendment may be executed in one or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. One or more counterparts of this Amendment may be delivered by telecopier, and if so delivered shall be deemed to be delivered with the intention that they shall have the same effect as an original counterpart hereof. Any party delivering any such counterpart by telecopy shall promptly forward to the other party an original counterpart hereof.
|
By:
|
/s/ Adrianto Machribie
|
Its:
|
President Director
|
By:
|
/s/ Noke Kiroyan
|
Its:
|
President Director
|
(iii)
|
Calculation of Incremental Expansion Revenues and Expansion Share of Costs
|
(iv)
|
Summary of Distributions/Loan Repayments from Incremental Expansion Cashflow
|
(v)
|
Accounting Rollforward of Product Inventory
|
(vi)
|
Opening Metal Inventory Sales Analysis
|
(1)
|
P.T. FREEPORT INDONESIA, a limited liability company organized under the laws of the Republic of Indonesia and domesticated in the State of Delaware, U.S.A. (“PT-FI”) and
|
(2)
|
P.T. RIO TINTO INDONESIA, a limited liability company organized under the laws of the Republic of Indonesia (“PTRTI”),
|
(A)
|
By a Contract of Work dated December 30, 1991 made between The Government of the Republic of Indonesia (the “Government”) and PT-FI, the Government appointed PT-FI as the sole contractor for the Government with respect to the Contract Area, as defined in the Contract of Work, with the sole rights to explore, mine, process, store, transport, market, sell, and dispose of Products, as defined below, in the Contract Area (defined as aforesaid).
|
(B)
|
Pursuant to that certain Participation Agreement dated October 11, 1996, between PT-FI and PTRTI, as amended by the First Amendment to Participation Agreement dated April 30, 1999 (as amended and in effect prior to the effectiveness of this Second Amendment, the “Participation Agreement”), PT-FI and PTRTI participate in operations under the COW (as defined below) on the terms and conditions set forth therein.
|
(C)
|
PT-FI and PTRTI desire to amend the Participation Agreement as hereinafter set forth.
|
1.
|
Definitions
. In this Second Amendment (including the Schedules and Annexes hereto), unless the context otherwise requires, capitalized terms used herein shall have the meanings provided under the Participation Agreement.
|
2.
|
Amendments To Annex A of The Participation Agreement
. With effect from January 1, 2000, the Product Schedule will be amended so that it comprises the Product Schedule as set forth on the Schedule hereto.
|
3.
|
Representations and Warranties
. Each Participant hereby represents and warrants to the other Participant as follows:
|
(a)
|
The execution, delivery and performance by such Participant of this Second Amendment (i) are within such Participant’s corporate powers, (ii) have been duly authorized by all necessary corporate action, (iii) require no action by or in respect of, or filing with, any governmental body, agency or official, (iv) do not contravene, or constitute a default under, any provision of any applicable law, statute, ordinance, regulation, rule, order or other governmental restriction or of the certificate or articles of incorporation or by-laws of such Participant, (v) do not contravene, or constitute a default under, any agreement, judgment, injunction, order, decree, indenture, contract lease, instrument or other commitment to which such Participant is a party or by which such Participant or any of its assets are bound and (vi) will not result in the creation or imposition of any lien upon any asset of such Participant under any existing indenture, mortgage, deed of trust, loan or loan agreement or other agreement or instrument to which such Participant is a party or by which it or any of its assets may be bound or affected.
|
(b)
|
The Participation Agreement, as amended by this Second Amendment is the legal, valid and binding obligation of such Participant, and is enforceable against such Participant in accordance with its terms, subject to bankruptcy, reorganization, insolvency, moratorium or other laws affecting the enforcement of creditors’ rights generally and subject to any limitation acts and to general equitable principles.
|
4.
|
Reference to and Effect Upon the Participation Agreement
. Upon the signature of this Second Amendment, each reference in the Participation Agreement to “this Agreement”, “hereunder”, “hereof”, “herein”, or words of like import, shall mean and be a reference to the Participation Agreement, as amended hereby.
|
5.
|
Reaffirmation
. Each Participant hereby reaffirms to the other that, except as modified hereby, the Participation Agreement remains in full force and effect and has not been otherwise waived, modified or amended. Except as expressly modified hereby, all of the terms and conditions of the Participation Agreement shall remain unaltered and in full force and effect.
|
6.
|
Choice of Law
. This Second Amendment shall be governed by and construed in accordance with the laws of the State of New York.
|
7.
|
Counterparts
. This Second Amendment may be executed in one or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. One or more counterparts of this Second Amendment may be delivered by telecopier, and if so delivered shall be
|
By:
|
/s/ Richard C. Adkerson
|
Its:
|
Director and Executive Vice President
|
By:
|
/s/ Mike Jolley
|
Its:
|
President Director
|
Year
|
|
Copper
|
|
Gold
|
|
Silver
|
|
|
(million lbs)
|
|
(000's ozs)
|
|
(000's ozs)
|
|
|
|
|
|
|
|
1995
|
|
1,029
|
|
1,318
|
|
2,872
|
1996
|
|
1,085
|
|
1,279
|
|
2,828
|
1997
|
|
1,140
|
|
1,791
|
|
2,969
|
1998
|
|
1,022
|
|
1,350
|
|
3,239
|
1999
|
|
1,165
|
|
1,503
|
|
3,822
|
2000
|
|
1,052
|
|
1,242
|
|
4,039
|
2001
|
|
1,132
|
|
1,397
|
|
3,943
|
2002
|
|
1,090
|
|
1,375
|
|
3,795
|
2003
|
|
979
|
|
1,456
|
|
3,659
|
2004
|
|
874
|
|
1,377
|
|
3,077
|
2005
|
|
1,146.368
|
|
1,870
|
|
4,121
|
2006
|
|
1,099
|
|
1,653
|
|
3,934
|
2007
|
|
1,099
|
|
1,631
|
|
4,045
|
2008
|
|
1,110
|
|
1,614
|
|
4,158
|
2009
|
|
1,107
|
|
1,589
|
|
4,203
|
2010
|
|
1,099
|
|
1,567
|
|
4,296
|
2011
|
|
1,049
|
|
1,269
|
|
4,138
|
2012
|
|
1,035
|
|
1,283
|
|
4,010
|
2013
|
|
1,066
|
|
1,471
|
|
4,268
|
2014
|
|
1,066
|
|
1,461
|
|
4,277
|
2015
|
|
1,057
|
|
1,493
|
|
4,156
|
2016
|
|
1,044
|
|
1,529
|
|
3,768
|
2017
|
|
1,008
|
|
1,589
|
|
3,359
|
2018
|
|
1,008
|
|
1,589
|
|
3,359
|
2019
|
|
1,024
|
|
1,589
|
|
3,396
|
2020
|
|
1,027
|
|
1,593
|
|
3,405
|
2021
|
|
463.632
|
|
638
|
|
1,437
|
|
|
28,076
|
|
39,616
|
|
98,579
|
(1)
|
P.T. FREEPORT INDONESIA, a limited liability company organized under the laws of the Republic of Indonesia and domesticated in the State of Delaware, U.S.A. (“PT-FI”) and
|
(2)
|
P.T. RIO TINTO INDONESIA, a limited liability company organized under the laws of the Republic of Indonesia (“PTRTI”),
|
(A)
|
By a Contract of Work dated December 30, 1991 made between The Government of the Republic of Indonesia (the “Government”) and PT-FI, the Government appointed PT-FI as the sole contractor for the Government with respect to the Contract Area, as defined in the Contract of Work, with the sole rights to explore, mine, process, store, transport, market, sell, and dispose of Products, as defined below, in the Contract Area (defined as aforesaid).
|
(B)
|
Pursuant to that certain Participation Agreement dated October 11, 1996, between PT-FI and PTRTI, as amended by the First Amendment to Participation Agreement dated April 30, 1999 and the Second Amendment to Participation Agreement dated February 22, 2006 (as amended and in effect prior to the effectiveness of this Third Amendment, the “Participation Agreement”), PT-FI and PTRTI participate in operations under the COW (as defined below) on the terms and conditions set forth therein.
|
(C)
|
PT-FI and PTRTI desire to amend the Participation Agreement as hereinafter set forth.
|
1.
|
Definitions
. In this Third Amendment (including the Schedules and Annexes hereto), unless the context otherwise requires, capitalized terms used herein shall have the meanings provided under the Participation Agreement.
|
2.
|
Amendments To Annex A of The Participation Agreement.
With effect from January 1, 2006, the Product Schedule is hereby amended so that it comprises the Product Schedule as set forth on the Schedule attached to this Third Amendment.
|
3.
|
Representations and Warranties
. Each Participant hereby represents and warrants to the other Participant as follows:
|
(a)
|
The execution, delivery and performance by such Participant of this Third Amendment (i) is within such Participant’s corporate powers, (ii) has been duly authorized by all necessary corporate action, (iii) requires no action by or in respect of, or filing with, any governmental body, agency or official, (iv) does not contravene, or constitute a default under, any provision of any applicable law, statute, ordinance, regulation, rule, order or other governmental restriction or of the certificate or articles of incorporation or by-laws of such Participant, (v) does not contravene, or constitute a default under, any agreement, judgment, injunction, order, decree, indenture, contract lease, instrument or other commitment to which such Participant is a party or by which such Participant or any of its assets are bound and (vi) will not result in the creation or imposition of any lien upon any asset of such Participant under any existing indenture, mortgage, deed of trust, loan or loan agreement or other agreement or instrument to which such Participant is a party or by which it or any of its assets may be bound or affected.
|
(b)
|
The Participation Agreement, as amended by this Third Amendment, is the legal, valid and binding obligation of such Participant, and is enforceable against such Participant in accordance with its terms, subject to bankruptcy, reorganization, insolvency, moratorium or other laws affecting the enforcement of creditors’ rights generally and subject to any limitation acts and to general equitable principles.
|
4.
|
Reference to and Effect Upon the Participation Agreement
. Upon the execution by both Participants of this Third Amendment, each reference in the Participation Agreement to “this Agreement”, “hereunder”, “hereof”, “herein”, or words of like import, shall mean and be a reference to the Participation Agreement, as amended hereby.
|
5.
|
Reaffirmation
. Each Participant hereby reaffirms to the other that, except as modified hereby, the Participation Agreement remains in full force and effect and has not been otherwise waived, modified or amended. Except as expressly modified hereby, all of the terms and conditions of the Participation Agreement shall remain unaltered and in full force and effect.
|
6.
|
Choice of Law
. This Third Amendment shall be governed by and construed in accordance with the laws of the State of New York.
|
7.
|
Counterparts
. This Third Amendment may be executed in one or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. One or more counterparts of this
|
By:
|
/s/ Clayton A. Wenas
|
Its:
|
Director & Executive Vice President
|
By:
|
/s/ Mark Hunter
|
Its:
|
Director
|
|
|
Recovered Metal in Concentrate
|
|||||
Year
|
|
Copper
|
|
Gold
|
Silver
|
||
|
|
(million lbs)
|
|
(000's ozs)
|
(000's ozs)
|
||
|
|
|
|
|
|
||
1995
|
|
1,029
|
|
1,318
|
2,872
|
||
1996
|
|
1,085
|
|
1,379
|
2,828
|
||
1997
|
|
1,140
|
|
1,791
|
2,969
|
||
1998
|
|
1,022
|
|
1,350
|
3,239
|
||
1999
|
|
1,165
|
|
1,503
|
3,822
|
||
2000
|
|
1,052
|
|
1,242
|
4,039
|
||
2001
|
|
1,132
|
|
1,397
|
3,943
|
||
2002
|
|
1,090
|
|
1,375
|
3,795
|
||
2003
|
|
979
|
|
1,456
|
3,659
|
||
2004
|
|
874
|
|
1,377
|
3,077
|
||
2005
|
|
1,146.368
|
|
1,870
|
4,121
|
||
2006
|
|
1,092.005
|
|
1,642.69
|
3,934
|
||
2007
|
|
1,099
|
|
1,631
|
4,045
|
||
2008
|
|
1,110
|
|
1,198.7
|
4,158
|
||
2009
|
|
1,107
|
|
2,004.3
|
4,203
|
||
2010
|
|
1,099
|
|
1,567
|
4,296
|
||
2011
|
|
1,049
|
|
1,269
|
4,138
|
||
2012
|
|
1,035
|
|
1,283
|
4,010
|
||
2013
|
|
1,066
|
|
1,471
|
4,268
|
||
2014
|
|
1,066
|
|
1,461
|
4,277
|
||
2015
|
|
1,057
|
|
1,493
|
4,156
|
||
2016
|
|
1,044
|
|
1,529
|
3,768
|
||
2017
|
|
1,008
|
|
1,589
|
3,359
|
||
2018
|
|
1,008
|
|
1,589
|
3,359
|
||
2019
|
|
1,024
|
|
1,589
|
3,396
|
||
2020
|
|
1,027
|
|
1,593
|
3,405
|
||
2021
|
|
470.627
|
|
648.31
|
1,437
|
||
|
|
28,076
|
|
39,616
|
98,573
|
(1)
|
P.T. FREEPORT INDONESIA, a limited liability company organized under the laws of the Republic of Indonesia and domesticated in the State of Delaware, U.S.A. (“PT-FI”) and
|
(2)
|
P.T. RIO TINTO INDONESIA, a limited liability company organized under the laws of the Republic of Indonesia (“PTRTI”),
|
(A)
|
By a Contract of Work dated December 30, 1991 made between The Government of the Republic of Indonesia (the “Government”) and PT-FI, the Government appointed PT-FI as the sole contractor for the Government with respect to the Contract Area, as defined in the Contract of Work, with the sole rights to explore, mine, process, store, transport, market, sell, and dispose of Products, as defined below, in the Contract Area (defined as aforesaid).
|
(B)
|
Pursuant to that certain Participation Agreement dated October 11, 1996, between PT-FI and PTRTI, as amended by the First Amendment to Participation Agreement dated April 30, 1999, the Second Amendment to Participation Agreement dated February 22, 2006, and the Third Amendment to Participation Agreement dated October 7, 2009 (as amended and in effect prior to the effectiveness of this Fourth Amendment, the “Participation Agreement”), PT-FI and PTRTI participate in operations under the COW (as defined below) on the terms and conditions set forth therein.
|
(C)
|
PT-FI and PTRTI desire to amend the Participation Agreement as hereinafter set forth.
|
1.
|
Definitions
. In this Fourth Amendment (including the Schedules and Annexes hereto), unless the context otherwise requires, capitalized terms used herein shall have the meanings provided under the Participation Agreement.
|
2.
|
Amendments To Annex A of The Participation Agreement.
With effect from January 1, 2011, the Product Schedule is hereby amended so that it comprises the Product Schedule as set forth on the Schedule attached to this Fourth Amendment.
|
3.
|
Representations and Warranties
. Each Participant hereby represents and warrants to the other Participant as follows:
|
(a)
|
The execution, delivery and performance by such Participant of this Fourth Amendment (i) is within such Participant’s corporate powers, (ii) has been duly authorized by all necessary corporate action, (iii) requires no action by or in respect of, or filing with, any governmental body, agency or official, (iv) does not contravene, or constitute a default under, any provision of any applicable law, statute, ordinance, regulation, rule, order or other governmental restriction or of the certificate or articles of incorporation or by-laws of such Participant, (v) does not contravene, or constitute a default under, any agreement, judgment, injunction, order, decree, indenture, contract lease, instrument or other commitment to which such Participant is a party or by which such Participant or any of its assets are bound and (vi) will not result in the creation or imposition of any lien upon any asset of such Participant under any existing indenture, mortgage, deed of trust, loan or loan agreement or other agreement or instrument to which such Participant is a party or by which it or any of its assets may be bound or affected.
|
(b)
|
The Participation Agreement, as amended by this Fourth Amendment, is the legal, valid and binding obligation of such Participant, and is enforceable against such Participant in accordance with its terms, subject to bankruptcy, reorganization, insolvency, moratorium or other laws affecting the enforcement of creditors’ rights generally and subject to any limitation acts and to general equitable principles.
|
4.
|
Reference to and Effect Upon the Participation Agreement
. Upon the execution by both Participants of this Fourth Amendment, each reference in the Participation Agreement to “this Agreement”, “hereunder”, “hereof”, “herein”, or words of like import, shall mean and be a reference to the Participation Agreement, as amended hereby.
|
5.
|
Reaffirmation
. Each Participant hereby reaffirms to the other that, except as modified hereby, the Participation Agreement remains in full force and effect and has not been otherwise waived, modified or amended. Except as expressly modified hereby, all of the terms and conditions of the Participation Agreement shall remain unaltered and in full force and effect.
|
6.
|
Choice of Law
. This Fourth Amendment shall be governed by and construed in accordance with the laws of the State of New York.
|
7.
|
Counterparts
. This Fourth Amendment may be executed in one or more counterparts, each of which shall be deemed an original, but all of which together
|
By:
|
/s/ Rozik B. Soetjipto
|
Its:
|
President Director
|
By:
|
/s/ Mark Hunter
|
Its:
|
President Director
|
|
|
Recovered Metal in Concentrate
|
|||||
Year
|
|
Copper
|
|
Gold
|
Silver
|
||
|
|
(million lbs)
|
|
(000's ozs)
|
(000's ozs)
|
||
|
|
|
|
|
|
||
1995
|
|
1,029
|
|
1,318
|
2,872
|
||
1996
|
|
1,085
|
|
1,379
|
2,828
|
||
1997
|
|
1,140
|
|
1,791
|
2,969
|
||
1998
|
|
1,022
|
|
1,350
|
3,239
|
||
1999
|
|
1,165
|
|
1,503
|
3,822
|
||
2000
|
|
1,052
|
|
1,242
|
4,039
|
||
2001
|
|
1,132
|
|
1,397
|
3,943
|
||
2002
|
|
1,090
|
|
1,375
|
3,795
|
||
2003
|
|
979
|
|
1,456
|
3,659
|
||
2004
|
|
874
|
|
1,377
|
3,077
|
||
2005
|
|
1,146.368
|
|
1,870
|
4,121
|
||
2006
|
|
1,092.005
|
|
1,642.69
|
3,934
|
||
2007
|
|
1,099
|
|
1,631
|
4,045
|
||
2008
|
|
1,110
|
|
1,198.7
|
4,158
|
||
2009
|
|
1,107
|
|
2,004.30
|
4,203
|
||
2010
|
|
1,099
|
|
1,567
|
4,296
|
||
2011
|
|
821
|
|
1,045
|
3,379
|
||
2012
|
|
1,035
|
|
1,283
|
4,010
|
||
2013
|
|
1,066
|
|
1,471
|
4,268
|
||
2014
|
|
1,066
|
|
1,461
|
4,277
|
||
2015
|
|
1,057
|
|
1,493
|
4,156
|
||
2016
|
|
1,044
|
|
1,529
|
3,768
|
||
2017
|
|
1,008
|
|
1,589
|
3,359
|
||
2018
|
|
1,008
|
|
1,589
|
3,359
|
||
2019
|
|
1,024
|
|
1,589
|
3,396
|
||
2020
|
|
1,027
|
|
1,593
|
3,405
|
||
2021
|
|
470.627
|
|
648.31
|
2,196
|
||
Future Adjustment
Amount
1
|
|
228
|
|
224
|
---
|
||
Total
|
|
28,076
|
|
39,616
|
98,573
|
(A)
|
if the Cumulative Target is exceeded prior to January 1, 2021, (i) the Future Adjustment Amount for copper shall be added to the Product Schedule pro rata over a single period of
|
(B)
|
if the Cumulative Target is not exceeded prior to January 1, 2021, the Future Adjustment Amount shall be added to the Product Schedule in calendar year 2021.
|
(1)
|
P.T. FREEPORT INDONESIA, a limited liability company organized under the laws of the Republic of Indonesia and domesticated in the State of Delaware, U.S.A. (“PT-FI”) and
|
(2)
|
P.T. RIO TINTO INDONESIA, a limited liability company organized under the laws of the Republic of Indonesia (“PTRTI”),
|
(A)
|
By a Contract of Work dated December 30, 1991 made between The Government of the Republic of Indonesia (the “Government”) and PT-FI, the Government appointed PT-FI as the sole contractor for the Government with respect to the Contract Area, as defined in the Contract of Work, with the sole rights to explore, mine, process, store, transport, market, sell, and dispose of Products, as defined below, in the Contract Area (defined as aforesaid).
|
(B)
|
Pursuant to that certain Participation Agreement dated October 11, 1996, between PT-FI and PTRTI, as amended by the First Amendment to Participation Agreement dated April 30, 1999, the Second Amendment to Participation Agreement dated February 22, 2006, the Third Amendment to Participation Agreement dated October 7, 2009, and the Fourth Amendment to Participation Agreement dated November 14, 2013 (as amended and in effect prior to the effectiveness of this Fifth Amendment, the “Participation Agreement”), PT-FI and PTRTI participate in operations under the COW (as defined below) on the terms and conditions set forth therein.
|
(C)
|
PT-FI and PTRTI desire to amend the Participation Agreement as hereinafter set forth.
|
1.
|
Definitions
. In this Fifth Amendment (including the Schedules and Annexes hereto), unless the context otherwise requires, capitalized terms used herein shall have the meanings provided under the Participation Agreement.
|
2.
|
Amendments To Annex A of The Participation Agreement.
With effect from January 1, 2012, the Product Schedule is hereby amended so that it comprises the Product Schedule as set forth on the Schedule attached to this Fifth Amendment.
|
3.
|
Representations and Warranties
. Each Participant hereby represents and warrants to the other Participant as follows:
|
(a)
|
The execution, delivery and performance by such Participant of this Fifth Amendment (i) is within such Participant’s corporate powers, (ii) has been duly authorized by all necessary corporate action, (iii) requires no action by or in respect of, or filing with, any governmental body, agency or official, (iv) does not contravene, or constitute a default under, any provision of any applicable law, statute, ordinance, regulation, rule, order or other governmental restriction or of the certificate or articles of incorporation or by-laws of such Participant, (v) does not contravene, or constitute a default under, any agreement, judgment, injunction, order, decree, indenture, contract lease, instrument or other commitment to which such Participant is a party or by which such Participant or any of its assets are bound and (vi) will not result in the creation or imposition of any lien upon any asset of such Participant under any existing indenture, mortgage, deed of trust, loan or loan agreement or other agreement or instrument to which such Participant is a party or by which it or any of its assets may be bound or affected.
|
(b)
|
The Participation Agreement, as amended by this Fifth Amendment, is the legal, valid and binding obligation of such Participant, and is enforceable against such Participant in accordance with its terms, subject to bankruptcy, reorganization, insolvency, moratorium or other laws affecting the enforcement of creditors’ rights generally and subject to any limitation acts and to general equitable principles.
|
4.
|
Reference to and Effect Upon the Participation Agreement
. Upon the execution by both Participants of this Fifth Amendment, each reference in the Participation Agreement to “this Agreement”, “hereunder”, “hereof”, “herein”, or words of like import, shall mean and be a reference to the Participation Agreement, as amended hereby.
|
5.
|
Reaffirmation
. Each Participant hereby reaffirms to the other that, except as modified hereby, the Participation Agreement remains in full force and effect and has not been otherwise waived, modified or amended. Except as expressly modified hereby, all of the terms and conditions of the Participation Agreement shall remain unaltered and in full force and effect.
|
6.
|
Choice of Law
. This Fifth Amendment shall be governed by and construed in accordance with the laws of the State of New York.
|
7.
|
Counterparts
. This Fifth Amendment may be executed in one or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. One or more counterparts of this Fifth Amendment may be delivered by telecopier, and if so delivered shall be deemed to be delivered with the intention that they shall have the same effect as an original counterpart hereof. Any party delivering any such counterpart by telecopy shall promptly forward to the other party an original counterpart hereof.
|
By:
|
/s/ Rozik B. Soetjipto
|
Its:
|
President Director
|
By:
|
/s/ Mark Hunter
|
Its:
|
President Director
|
|
|
Recovered Metal in Concentrate
|
|||||
Year
|
|
Copper
|
|
Gold
|
Silver
|
||
|
|
(million lbs)
|
|
(000's ozs)
|
(000's ozs)
|
||
|
|
|
|
|
|
||
1995
|
|
1,029
|
|
1,318
|
2,872
|
||
1996
|
|
1,085
|
|
1,379
|
2,828
|
||
1997
|
|
1,140
|
|
1,791
|
2,969
|
||
1998
|
|
1,022
|
|
1,350
|
3,239
|
||
1999
|
|
1,165
|
|
1,503
|
3,822
|
||
2000
|
|
1,052
|
|
1,242
|
4,039
|
||
2001
|
|
1,132
|
|
1,397
|
3,943
|
||
2002
|
|
1,090
|
|
1,375
|
3,795
|
||
2003
|
|
979
|
|
1,456
|
3,659
|
||
2004
|
|
874
|
|
1,377
|
3,077
|
||
2005
|
|
1,146.368
|
|
1,870
|
4,121
|
||
2006
|
|
1,092.005
|
|
1,642.69
|
3,934
|
||
2007
|
|
1,099
|
|
1,631
|
4,045
|
||
2008
|
|
1,110
|
|
1,198.7
|
4,158
|
||
2009
|
|
1,107
|
|
2,004.30
|
4,203
|
||
2010
|
|
1,099
|
|
1,567
|
4,296
|
||
2011
|
|
821
|
|
1,045
|
3,379
|
||
2012
|
|
720.75
|
|
888.28
|
2,591.31
|
||
2013
|
|
1,186.25
|
|
1,688.72
|
4,994.69
|
||
2014
|
|
1,066
|
|
1,461
|
4,277
|
||
2015
|
|
1,057
|
|
1,493
|
4,156
|
||
2016
|
|
1,044
|
|
1,529
|
3,768
|
||
2017
|
|
1,008
|
|
1,589
|
3,359
|
||
2018
|
|
1,008
|
|
1,589
|
3,359
|
||
2019
|
|
1,024
|
|
1,589
|
3,396
|
||
2020
|
|
1,027
|
|
1,593
|
3,405
|
||
2021
|
|
470.627
|
|
648.31
|
2,888
|
||
Future Adjustment
Amount
1
|
|
422
|
|
401
|
---
|
||
Total
|
|
28,076
|
|
39,616
|
98,573
|
(A)
|
if the Cumulative Target is exceeded prior to January 1, 2021, (i) the Future Adjustment Amount for copper shall be added to the Product Schedule pro rata over a single period of
|
(B)
|
if the Cumulative Target is not exceeded prior to January 1, 2021, the Future Adjustment Amount shall be added to the Product Schedule in calendar year 2021.
|
(x)
|
The Reference Contract must be for copper concentrates which are generally considered within the market as “clean concentrates” and which have a current average annual copper grade of 26% to 46%, it being understood that the parties will endeavor to designate concentrate sales agreements for copper concentrates which generally reflect the expected copper grade of Seller’s concentrates in preference to agreements for concentrates which are less comparable. “Clean concentrates” shall mean copper concentrates not containing impurities or other characteristics which cause the smelting and refining charges for such concentrates to be inflated relative to the generally applicable market level of such charges; and
|
1.
|
Commercial Terms
. The following provisions of this Paragraph 1 of this Amendment constitute the Commercial Terms specified in Section 10.2 that will be applicable (except as specifically provided in clause 1(B)(ii) below) to all Contractual Tonnages of Concentrates that are sold under the Agreement for Contract Year 2003 through Contract Year 2007 (i.e. Contract Years 6 through 10) and, in accordance with Amendment Number Two, the Additional Quantities of Concentrates that are sold under such Amendment for Contract Year 2003 and Contract Year 2004.
|
A.
|
Definitions of Payable Copper, Payable Gold and Payable Silver Contained in Sections 8.1, 8.2 and 8.3.
|
(i)
|
The first sentence of Section 8.1 of the Agreement is revised to read as follows: “The term “Payable Copper” shall mean 96.55% of the full copper content (as ascertained by assay in accordance with Article 13) of each DMT of Concentrates, subject to a minimum deduction of 1.0 unit.”
|
(ii)
|
The first sentence of Section 8.2 of the Agreement is revised to read as follows:
|
(iii)
|
The first sentence of Section 8.3 of the Agreement is revised to read as follows: “The term “Payable Silver” shall have the following meaning: If the full silver content (as ascertained by assay in accordance with Article 13) of each DMT of Concentrates is ≥ 30 grams per DMT then the term “Payable Silver” shall mean 100% of such full silver content less a 15 grams per DMT deduction; and if the full silver content (as ascertained by assay in accordance with Article 13) of each DMT of Concentrates is < 30 grams per DMT then the term “Payable Silver” shall mean zero percent (0%) of such full silver content (i.e. no payment).”
|
(i)
|
Section 8.4 of the Agreement is revised to read as follows: “The term “Quotational Period” shall mean, with respect to Payable Copper in any portion of any shipment, unless otherwise mutually agreed in writing by Buyer and Seller, the second calendar month following the month in which the Date of Arrival occurs (i.e. 2 MAMA), it being understood and agreed that Buyer and Seller may by mutual written agreement select a Payable Copper Quotational Period that is to be applicable to future cargoes of Concentrates that is either 2 MAMA or 3 MAMA. The term “Quotational Period” shall mean, with respect to Payable Gold and Payable Silver in any portion of any shipment, the calendar month that immediately precedes the Month of Scheduled Shipment.”
|
(ii)
|
The change of Quotational Period with respect to Payable Gold and Payable Silver shall commence with lots for which the Month of Scheduled Shipment is the second calendar month following the month in which Seller receives written notice of approval of this Amendment by the Department of Energy and Mineral Resources (formerly the DOME) of the Government of Indonesia. Prior to Seller’s receipt of such notice the Payable Gold and Payable Silver Quotational Period shall remain the Month of Scheduled Shipment as provided in the Agreement prior to this Amendment.
|
C.
|
Payment Terms of Article 11
. The payment terms of Article 11 of the Agreement shall remain unchanged,
except
that the date on which Buyer shall make a provisional payment equal to 90% of the provisional price as more fully described in the second sentence of Section 11.3 is changed from “the fifth Business Day after the Date of Arrival” to “the seventh Business Day after the Date of Arrival”.
|
D.
|
Penalties Contained in Section 9.4
. The penalties contained in Section 9.4 of the Agreement shall remain unchanged.
|
E.
|
Discharging Rates Contained in Section 5.3
. The discharging rate contained in Section 5.3(a) of the Agreement is changed from “3,500 WMT’s per weather working day” to “4,000 WMT’s per weather working day”. All other provisions of Section 5.3 shall remain unchanged.
|
F.
|
The Amount of Dispatch and Demurrage for Bulk Carriers Contained in Section 5.6(a)
. Notwithstanding wording to the contrary in Section 5.6(a) of the Agreement, the amount of dispatch and demurrage for bulk carriers shall be as per Seller’s applicable charter party or other ocean shipping arrangement (with no maximum limit specified).
|
G.
|
The Definition of Contracts Criteria Contained in Appendix “A” and the Number of Reference Contracts Recited in Section 9.2(i)(c) to be Included in Each of Buyer’s and Seller’s Group of Reference Contracts
. The definition of Contracts Criteria contained in Appendix “A” and the number of Reference Contracts recited in Section 9.2(i)(c) to be included in each of Buyer’s and Seller’s group of Reference Contracts shall remain unchanged as provided in the Agreement and the Auditor Guidelines.
|
2.
|
Payable Gold and Payable Silver Refining Charges for Part B Tonnage
. In determining the price payable for the Part B Tonnage in each lot of Concentrates that are sold under the Agreement for Contract Year 2003 through Contract Year 2007 (i.e. Contract Years 6 through 10) and, in accordance with Amendment Number Two, for the applicable Additional Quantities of Concentrates that are sold under such Amendment for Contract Year 2003 and Contract Year 2004, notwithstanding the provisions of Section 9.2(ii) of the Agreement, the Payable Gold refining charge for all Part B Tonnage shall be $2.00 per ounce of Payable Gold, and the Payable Silver refining charge for all Part B Tonnage shall be $0.00 (zero) per ounce of Payable Silver.
|
3.
|
Effect
. Except as provided in this Amendment, the Agreement remains in full force and effect as set forth in the original text of the Agreement as amended by Amendment Number One and Amendment Number Two.
|
Contract Year
|
Additional Quantity
|
2009
|
100,000 DMT
|
2010
|
120,000 DMT
|
2011
|
100,000 DMT
|
2012
|
60,000 DMT
|
2013
|
60,000 DMT
|
2014
|
60,000 DMT
|
9.
|
Section 10.2, Periodic Review of Certain Commercial Terms
. Buyer and Seller hereby
|
WITNESS:
/s/
|
PT FREEPORT INDONESIA
By:
/s/ Javier Targhetta
Javier Targhetta
Senior Vice President
|
WITNESS:
/s/
|
PT SMELTING
By:
/s/ Makoto Miki
Makoto Miki
President Director
|
|
|
|
|
Execution Version
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
THIRD AMENDED AND RESTATED JOINT VENTURE
|
||||
|
|
|
|
|
|
|
|
|
|
AND SHAREHOLDERS AGREEMENT
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FOR P.T. SMELTING
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
between
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MITSUBISHI MATERIALS CORPORATION,
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
P.T. FREEPORT INDONESIA,
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MITSUBISHI CORPORATION,
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NIPPON MINING & METALS COMPANY, LIMITED and
|
||||
|
|
|
|
|
P.T. SMELTING
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
as amended on December 11, 2003
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TABLE OF CONTENTS
|
||||
|
|
|
|
|
|
|
|
PAGE
|
|
|
|
|
|
|
Article
|
1
|
DEFINITIONS AND INTERPRETATION
|
1
|
|
|
1.1
|
Definitions
|
1
|
|
|
1.2
|
Construction
|
5
|
|
|
|
|
|
|
Article
|
2
|
ESTABLISHMENT OF PTS
|
5
|
|
|
2.1
|
Organization and Registration
|
5
|
|
|
2.2
|
Articles of Association
|
5
|
|
|
2.3
|
Undertaking by PTS
|
5
|
|
|
|
|
|
|
Article
|
3
|
CAPITAL, SHARES
|
6
|
|
|
|
|
|
|
Article
|
4
|
PREEMPTIVE RIGHTS
|
6
|
|
|
4.1
|
Increase in Authorized Capital
|
6
|
|
|
4.2
|
Preemptive Rights of Shareholders
|
6
|
|
|
4.3
|
Consequences of Failure to Subscribe for Full Proportionate Share
|
6
|
|
|
|
|
|
|
Article
|
5
|
TRANSFER OF SHARES OR SUBORDINATED LOANS
|
7
|
|
|
5.1
|
Approval Required for Transfer
|
7
|
|
|
5.2
|
Prohibition on Certain Transfers
|
7
|
|
|
5.3
|
Right of First Offer
|
7
|
|
|
5.4
|
Consent to Certain Transfers by MMC, MC and NMM
|
8
|
|
|
5.5
|
Consent to Certain Transfers to Subsidiaries
|
9
|
|
|
5.6
|
Consent to Share Pledges in Connection With the Project Loans
|
9
|
|
|
5.7
|
Shareholder's Right to Assign Shareholder Rights and Subordinated Shareholder Loans
|
9
|
|
|
5.8
|
Mandatory Participation by a Third Party in the Share Capital of PTS
|
10
|
|
|
5.9
|
New Shareholder to Become Bound by this Agreement
|
11
|
|
|
5.10
|
Obligations Continuing
|
11
|
|
|
|
|
|
|
Article
|
6
|
BOARD OF DIRECTORS; PRESIDENT DIRECTOR
|
11
|
|
|
|
|
|
|
Article
|
7
|
BOARD OF COMMISSIONERS; PRESIDENT COMMISSIONER
|
11
|
|
|
|
|
|
|
Article
|
8
|
GENERAL PROVISIONS RELATING TO DIRECTORS AND COMMISSIONERS
|
12
|
|
|
8.1
|
Dismissal
|
12
|
|
|
8.2
|
Vacancy
|
12
|
|
|
|
|
|
|
Article
|
9
|
DIVIDEND POLICY
|
12
|
|
|
|
|
|
|
Article
|
10
|
NOT USED
|
12
|
|
|
|
|
|
|
Article
|
11
|
FINANCING
|
12
|
|
|
11.1
|
Financial Plan
|
12
|
|
|
11.2
|
Financing and Guarantees
|
12
|
|
|
11.3
|
Share and Subordinated Loan Transfers
|
14
|
|
|
11.4
|
Repayment of Shareholder Support
|
14
|
|
|
|
|
|
|
Article
|
12
|
COVENANTS
|
15
|
|
|
12.1
|
General
|
15
|
|
|
12.2
|
Governmental Approvals
|
15
|
|
|
12.3
|
Execution Of Other Agreements
|
15
|
|
|
12.4
|
Competition With PTS
|
15
|
|
|
12.5
|
Agreed Return Adjustments
|
15
|
|
|
12.6
|
Two Cent Support
|
16
|
|
|
12.7
|
Subordination of Support Fee
|
16
|
|
|
12.8
|
Subordination of Smelter License Royalty
|
16
|
|
|
12.9
|
Subordination of Financial Disadvantage Payable to MMC, MC or NMM
|
16
|
|
|
|
|
|
|
Article
|
13
|
TERM OF THIS AGREEMENT
|
17
|
|
|
|
|
|
|
Article
|
14
|
DEFAULT
|
17
|
|
|
14.1
|
Default
|
17
|
|
|
14.2
|
Effect of Default
|
17
|
|
|
14.3
|
Share and Subordinated Shareholder Loan Purchase Right
|
17
|
|
|
14.4
|
Share Price
|
18
|
|
|
14.5
|
Share and Subordinated Loan Transfer
|
18
|
|
|
|
|
|
|
Article
|
15
|
EFFECT OF TERMINATION AND DISSOLUTION
|
19
|
|
|
|
|
|
|
Article
|
16
|
DISPUTE RESOLUTION
|
19
|
|
|
16.1
|
Amicable Settlement
|
19
|
|
|
16.2
|
Arbitration Rules
|
19
|
|
|
16.3
|
Arbitrators
|
19
|
|
|
16.4
|
Arbitration Award
|
20
|
|
|
16.5
|
Award to be Final and Conclusive
|
20
|
|
|
16.6
|
Performance of Obligations Pending Decision
|
20
|
|
|
16.7
|
Waiver of Right to Terminate Board of Arbitration
|
20
|
|
|
|
|
|
|
Article
|
17
|
REPRESENTATIONS AND WARRANTIES
|
20
|
|
|
17.1
|
Corporate Power
|
20
|
|
|
17.2
|
Statements True
|
20
|
|
|
|
|
|
|
Article
|
18
|
CONFIDENTIALITY
|
20
|
|
|
18.1
|
Confidential Treatment/Permitted Disclosures
|
20
|
|
|
18.2
|
Each of the Parties covenants and agrees not to
|
20
|
|
|
18.2
|
Implementation
|
21
|
|
|
18.3
|
Treatment of Project Information by PTS
|
22
|
|
|
18.4
|
Obligations to Survive
|
22
|
|
|
|
|
|
|
Article
|
19
|
ASSIGNMENT
|
22
|
|
|
|
|
|
|
Article
|
20
|
LAW AND INTERPRETATION
|
22
|
|
|
20.1
|
Governing Law
|
22
|
|
|
20.2
|
Governing Language of this Agreement
|
22
|
|
|
20.3
|
Headings
|
22
|
|
|
|
|
|
|
Article
|
21
|
SEVERABILITY
|
22
|
|
|
|
|
|
|
Article
|
22
|
NOTICES
|
23
|
|
|
22.1
|
Manner of Delivery/Addresses
|
23
|
|
|
22.2
|
Change of Address
|
24
|
|
|
|
|
|
|
Article
|
23
|
FORCE MAJEURE
|
24
|
|
|
|
|
|
|
Article
|
24
|
ENTIRE AGREEMENT
|
24
|
|
|
|
|
|
|
Article
|
25
|
AMENDMENTS
|
24
|
|
|
|
|
|
|
Article
|
26
|
NO THIRD PARTY BENEFICIARIES
|
24
|
|
|
|
|
|
|
Article
|
27
|
NO CONFLICT WITH CREDIT DOCUMENTS
|
25
|
|
|
|
|
|
|
Article
|
28
|
MISCELLANEOUS
|
25
|
|
ARTICLE 1
|
DEFINITIONS AND INTERPRETATION
|
ARTICLE 2
|
ESTABLISHMENT OF PTS
|
ARTICLE 3
|
CAPITAL, SHARES
|
ARTICLE 4
|
PREEMPTIVE RIGHTS
|
ARTICLE 5
|
TRANSFER OF SHARES OR SUBORDINATED LOANS
|
ARTICLE 6
|
BOARD OF DIRECTORS; PRESIDENT DIRECTOR
|
ARTICLE 7
|
BOARD OF COMMISSIONERS; PRESIDENT COMMISSIONER
|
ARTICLE 8
|
GENERAL PROVISIONS RELATING TO DIRECTORS AND COMMISSIONERS
|
ARTICLE 9
|
DIVIDEND POLICY
|
ARTICLE 10
|
NOT USED
|
ARTICLE 11
|
FINANCING
|
ARTICLE 12
|
COVENANTS
|
ARTICLE 13
|
TERM OF THIS AGREEMENT
|
ARTICLE 14
|
DEFAULT
|
ARTICLE 15
|
EFFECT OF TERMINATION AND DISSOLUTION
|
ARTICLE 16
|
DISPUTE RESOLUTION
|
ARTICLE 17
|
REPRESENTATIONS AND WARRANTIES
|
ARTICLE 18
|
CONFIDENTIALITY
|
ARTICLE 19
|
ASSIGNMENT
|
ARTICLE 20
|
LAW AND INTERPRETATION
|
ARTICLE 21
|
SEVERABILITY
|
ARTICLE 22
|
NOTICES
|
NMM:
|
Nippon Mining & Metals Company, Limited
|
ARTICLE 23
|
FORCE MAJEURE
|
ARTICLE 24
|
ENTIRE AGREEMENT
|
ARTICLE 25
|
AMENDMENTS
|
ARTICLE 26
|
NO THIRD PARTY BENEFICIARIES
|
ARTICLE 27
|
NO CONFLICT WITH CREDIT DOCUMENTS
|
ARTICLE 28
|
MISCELLANEOUS
|
|
ARTICLE 2.
AMENDMENTS
|
Title:
|
General Manager, Planning & Administration Dept. Metals Company
|
Title:
|
Senior Vice President, Division C.O.O.,
|
FIRST AMENDMENT TO TERM LOAN AGREEMENT
dated as of February 14, 2013,
among
FREEPORT-MCMORAN INC.,
FREEPORT-MCMORAN OIL & GAS LLC,
The Lenders Party thereto,
JPMORGAN CHASE BANK, N.A.,
as Administrative Agent,
BANK OF AMERICA, N.A.,
as Syndication Agent,
and
HSBC BANK USA, NATIONAL ASSOCIATION,
MIZUHO CORPORATE BANK, LTD.,
SUMITOMO MITSUI BANKING CORPORATION,
THE BANK OF NOVA SCOTIA,
and
THE BANK OF TOKYO-MITSUBISHI UFJ, LTD.,
as Co-Documentation Agents,
_____________________________________________________________
J.P. MORGAN SECURITIES LLC,
MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED,
HSBC SECURITIES (USA) INC.,
MIZUHO CORPORATE BANK, LTD.,
SUMITOMO MITSUI BANKING CORPORATION,
THE BANK OF NOVA SCOTIA,
and
THE BANK OF TOKYO-MITSUBISHI UFJ, LTD.,
as Joint Lead Arrangers and Joint Bookrunners,
_____________________________________________________________
aGRICULTURAL BANK OF CHINA, NEW YORK BRANCH,
Bank of Montreal, Chicago Branch,
Canadian Imperial Bank of Commerce, New York Agency,
Compass Bank,
Royal Bank of Canada,
The Toronto-Dominion Bank,
Standard Chartered Bank,
U.S. Bank National Association,
and
Wells Fargo Bank, National Association,
as Senior Managing Agents
|
FREEPORT-MCMORAN INC.,
|
|
by
|
|
|
/s/ Kathleen L. Quirk
|
|
Name:Kathleen L. Quirk
|
|
Title:Executive Vice President,
Chief Financial Officer and Treasurer
|
FREEPORT MCMORAN OIL & GAS LLC,
|
|
by
|
|
|
/s/ Kathleen L. Quirk
|
|
Name:Kathleen L. Quirk
|
|
Title:Executive Vice President
|
JPMORGAN CHASE BANK, N.A., individually and as Administrative Agent,
|
|
by
|
|
|
|
|
Name:
|
|
Title:
|
FREEPORT-MCMORAN INC.,
|
|
by
|
|
|
|
|
Name:
|
|
Title:
|
FREEPORT MCMORAN OIL & GAS
LLC,
|
|
by
|
|
|
|
|
Name:
|
|
Title:
|
JPMORGAN CHASE BANK, N.A.,
individually and as Administrative Agent,
|
|
by
|
|
|
/s/ Gitanjali Pundir
|
|
Name:Gitanjali Pundir
|
|
Title:Vice President
|
Name of Lender:
Bank of America, N.A.
|
|
By
|
|
|
/s/ James K.G. Campbell
|
|
Name:James K.G. Campbell
|
|
Title:Director
|
Name of
Lender: HSBC Bank USA, N.A.
|
|
By:
|
|
|
/s/ Adam Hendley
|
Name: Adam Hendley
|
|
Title: Senior Vice President
|
Name of
Lender:
Mizuho Bank, Ltd.
|
|
By
|
|
|
/s/ Donna DeMagistris
|
|
Name:Donna DeMagistris
|
|
Title:Authorized Signatory
|
For any Lender requiring a second signature
line:
|
|
Name of
Lender:
|
|
By
|
|
|
|
|
Name:
|
|
Title:
|
Name of
Lender:
THE BANK OF NOVA SCOTIA
|
|
By
|
|
|
/s/ Ian Stephenson
|
|
Name:Ian Stephenson
|
|
Title:Director
|
For any Lender requiring a second signature
line:
|
|
Name of
Lender:
THE BANK OF NOVA SCOTIA
|
|
By
|
|
|
/s/ Asif Rafiq
|
|
Name:Asif Rafiq
|
|
Title:Associate Director
|
Name of
Lender:
The Bank of Tokyo-Mitsubuishi UFJ, Ltd.
|
|
By
|
|
|
/s/ Mark Maloney
|
|
Name:Mark Maloney
|
|
Title:Authorized Signatory
|
For any Lender requiring a second signature
line:
|
|
Name of
Lender:
|
|
By
|
|
|
|
|
Name:
|
|
Title:
|
Name of
Lender:
Sumitomo Mitsui Banking Corporation
|
|
By
|
|
|
/s/ James D. Weinstein
|
|
Name:James D. Weinstein
|
|
Title:Managing Director
|
For any Lender requiring a second signature
line:
|
|
Name of
Lender:
|
|
By
|
|
|
|
|
Name:
|
|
Title:
|
Name of
Lender:Canadian Imperial Bank of Commerce,
New York Branch
|
|
By
|
|
|
/s/ Robert Robin
|
|
Name:Robert Robin
|
|
Title:Authorized Signatory
|
For any Lender requiring a second signature
line:
|
|
Name of
Lender:Canadian Imperial Bank of Commerce,
New York Branch
|
|
By
|
|
|
/s/ Rhema Asaam
|
|
Name:Rhema Asaam
|
|
Title:Authorized Signatory
|
Name of
Lender:
U.S. BANK NATIONAL ASSOCIATION
|
|
By
|
|
|
/s/ Marty McDonald
|
|
Name:Marty McDonald
|
|
Title:AVP
|
For any Lender requiring a second signature
line:
|
|
Name of
Lender:
|
|
By
|
|
|
|
|
Name:
|
|
Title:
|
Name of
Lender:
Bank of Montreal, Chicago Branch
|
|
By
|
|
|
/s/ Yaconba Kane
|
|
Name:Yaconba Kane
|
|
Title:Vice President
|
For any Lender requiring a second signature
line:
|
|
Name of
Lender:
|
|
By
|
|
|
|
|
Name:
|
|
Title:
|
Name of
Lender:
Santander Bank, N.A.
|
|
By
|
|
|
/s/ William Maag
|
|
Name:William Maag
|
|
Title:Managing Director
|
For any Lender requiring a second signature
line:
|
|
Name of
Lender:
|
|
By
|
|
|
|
|
Name:
|
|
Title:
|
WELLS FARGO BANK,
NATIONAL ASSOCIATION
|
|
By
|
|
|
/s/ Mark Halldorson
|
|
Name:Mark H. Halldorson
|
|
Title:Director
|
Name of
Lender:
COMPASS BANK
|
|
By
|
|
|
/s/ Susana Campuzano
|
|
Name:Susana Campuzano
|
|
Title:Sr. Vice President
|
For any Lender requiring a second signature
line:
|
|
Name of
Lender:
|
|
By
|
|
|
|
|
Name:
|
|
Title:
|
Name of
Lender:
ROYAL BANK OF CANADA
|
|
By
|
|
|
/s/ Stam Fountoulakis
|
|
Name:Stam Fountoulakis
|
|
Title:Authorized Signatory
|
For any Lender requiring a second signature
line:
|
|
Name of
Lender:
|
|
By
|
|
|
|
|
Name:
|
|
Title:
|
Name of
Lender:The Toronto-Dominion Bank,
New York Banch
|
|
By
|
|
|
/s/ Robyn Zeller
|
|
Name:Robyn Zeller
|
|
Title:Senior Vice President
|
For any Lender requiring a second signature
line:
|
|
Name of
Lender:
|
|
By
|
|
|
|
|
Name:
|
|
Title:
|
Name of Lender: DBS Bank Ltd.
|
|
By
|
|
|
/s/ Thomas McCabe
|
|
Name:Thomas McCabe
|
|
Title:Country Head
|
Name of
Lender:
BNP PARIBAS
|
|
By
|
|
|
/s/ Nicholas Anberree
|
|
Name:Nicholas Anberree
|
|
Title:Vice President
|
For any Lender requiring a second signature
line:
|
|
Name of
Lender:
BNP PARIBAS
|
|
By
|
|
|
/s/ Claudia Zarate
|
|
Name:Claudia Zarate
|
|
Title:Director
|
Name of
Lender:
Siemens Financial Services, Inc.
|
|
By
|
|
|
/s/ Edward F. Kubicas
|
|
Name:Edward F. Kubicas
|
|
Title:Vice President
|
For any Lender requiring a second signature
line:
|
|
Name of
Lender:
/s/ Doug Maker
|
|
By
|
|
|
|
|
Name:Doug Maker
|
|
Title:CRO
|
Name of
Lender:
THE NORTHERN TRUST COMPANY
|
|
By
|
|
|
/s/ John L. Lascody
|
|
Name:John L. Lascody
|
|
Title:Vice President
|
For any Lender requiring a second signature
line:
|
|
Name of
Lender:
|
|
By
|
|
|
|
|
Name:
|
|
Title:
|
Name of Lender: Sabadell United Bank, N.A.
|
|
By
|
|
|
/s/ Maurici Lladó
|
|
Name:Maurici Lladó
|
|
Title:EVP - Corporate & Commercial Banking
|
Name of
Lender:
Capital Bank, N.A.
|
|
By
|
|
|
/s/ Nathan Hall
|
|
Name:Nathan Hall
|
|
Title:Vice President
|
Name of
Lender:
Bank of China, New York Branch
|
|
By
|
|
|
/s/ Dong Yuan
|
|
Name:Dong Yuan
|
|
Title:Executive Vice President
|
For any Lender requiring a second signature
line:
|
|
Name of
Lender:
|
|
By
|
|
|
--------------------------------
|
|
Name:
|
|
Title:
|
Name of
Lender:
Capital One, N.A.
|
|
By
|
|
|
/s/ Tony Alexander
|
|
Name:Tony Alexander
|
|
Title:VP
|
For any Lender requiring a second signature
line:
|
|
Name of
Lender:
|
|
By
|
|
|
|
|
Name:
|
|
Title:
|
Name of
Lender:
Natixis, New York Branch
|
|
By
|
|
|
/s/ Carla Gray
|
|
Name:Carla Gray
|
|
Title:Director
|
For any Lender requiring a second signature
line:
|
|
Name of
Lender:
Natixis, New York Branch
|
|
By
|
|
|
/s/ Alisa Trani
|
|
Name:Alisa Trani
|
|
Title:Director
|
Name of
Lender: UBS AG, STAMFORD BRANCH
|
|
By
|
|
|
/s/ Darlene Arias
|
|
Name: Darlene Arias
|
|
Title: Director
|
|
|
|
|
By
|
|
|
/s/ Houssem Daly
|
|
Name: Houssem Daly
|
|
Title: Associate Director
|
National Bank of Kuwait, S.A.K.P.,
Grand Cayman Branch
As a “Declining Lender”
|
|
By
|
|
|
/s/ Wendy Wanninger
|
|
Name:Wendy Wanninger
|
|
Title:Executive Manager
|
By
|
|
/s/ Michael McHugh
|
|
|
Name:Michael McHugh
|
|
Title:Executive Manager
|
Name of Lender: Manufacturers Bank
|
|
By
|
|
|
/s/ Sandy Lee*
|
|
Name:Sandy Lee
|
|
Title:Vice Presdient
|
Name of
Lender:
UMB BANK NA
|
|
By
|
|
|
/s/ David A. Proffitt
|
|
Name:David A. Proffitt
|
|
Title:Senior Vice President
|
For any Lender requiring a second signature
line:
|
|
Name of
Lender:
|
|
By
|
|
|
|
|
Name:
|
|
Title:
|
Name of Lender: Sumitomo Mitsui Trust Bank, Limited, New York Branch
|
|
By
|
|
|
/s/ Albert C. Tew II
|
|
Name:Albert C. Tew II
|
|
Title:Vice President
|
Name of Lender: First Niagara Bank, N.A.
|
|
By
|
|
|
/s/ Ken Jamison
|
|
Name:Ken Jamison
|
|
Title:Managing Director
|
Name of Lender: Bank of the Cascades
|
|
By
|
|
|
/s/ Dan Lee
|
|
Name:Dan Lee
|
|
Title:EVP, Chief Credit Officer
|
Name of Lender: CHANG HWA COMMERCIAL BANK LTD., LOS ANGELES BRANCH
|
|
By
|
|
|
/s/ Kang Yang
|
|
Name:Kang Yang
|
|
Title:Vice President & General Manager
|
Name of Lender: United Community Bank
|
|
By
|
|
|
/s/ Allen Schmale
|
|
Name:Allen Schmale
|
|
Title:EVP/Chief Credit Officer
|
2018 Term Loans
|
|
TOTAL:
|
$1,056,980,432.19
|
2020 Term Loans
|
|
Lender
|
Principal Amount
|
Bank of America, N.A.
|
$191,169,642.87
|
HSBC Bank USA, National Association
|
$174,285,714.29
|
Mizuho Bank, Ltd.
|
$174,285,714.28
|
The Bank of Nova Scotia
|
$174,285,714.29
|
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
|
$174,285,714.29
|
Sumitomo Mitsui Banking Corporation
|
$162,848,214.29
|
U.S. Bank National Association
|
144,875,000.00
|
Bank of Montreal, Chicago Branch
|
$108,928,571.43
|
JPMorgan Chase Bank, N.A.
|
$91,294,052.41
|
Santander Bank, N.A.
|
$79,503,891.95
|
Compass Bank
|
$61,000,000.00
|
Royal Bank of Canada
|
$61,000,000.00
|
The Toronto-Dominion Bank, New York Branch
|
$61,000,000.00
|
Wells Fargo Bank, National Association
|
$61,000,000.00
|
DBS Bank, Ltd.
|
$55,288,473.22
|
BNP Paribas
|
$44,772,435.90
|
The Northern Trust Company
|
$32,678,571.43
|
Capital Bank, N.A.
|
$22,875,000.00
|
Bank of China, New York Branch
|
$21,785,714.29
|
Capital One, N.A.
|
$21,785,714.29
|
Natixis, New York Branch
|
$21,785,714.29
|
UBS AG, Stamford Branch
|
$21,785,714.29
|
First Niagara Bank, N.A.
|
$11,437,500.00
|
Bank of Cascades
|
$7,625,000.00
|
Chang Hwa Commercial Bank Ltd., Los Angeles Branch
|
$7,625,000.00
|
United Community Bank
|
$3,812,500.00
|
TOTAL:
|
$1,993,019,567.81
|
AGGREGATE TERM LOANS:
|
$3,050,000,000.00
|
SECOND AMENDMENT TO REVOLVING CREDIT AGREEMENT
dated as of February 14, 2013,
among
FREEPORT-MCMORAN INC.,
PT FREEPORT INDONESIA,
FREEPORT-MCMORAN OIL & GAS LLC,
The Lenders Party Hereto,
The Issuing Banks Party Hereto,
JPMORGAN CHASE BANK, N.A.,
as Administrative Agent and Swingline Lender,
BANK OF AMERICA, N.A.,
as Syndication Agent,
and
BNP PARIBAS,
CITIBANK, N.A.,
HSBC BANK USA, NATIONAL ASSOCIATION,
MIZUHO BANK, LTD.,
SUMITOMO MITSUI BANKING CORPORATION,
THE BANK OF NOVA SCOTIA and
THE BANK OF TOKYO-MITSUBISHI UFJ, LTD.,
as Co-Documentation Agents,
_____________________________________________________________
J.P. MORGAN SECURITIES LLC,
MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED,
BNP PARIBAS SECURITIES CORP.,
CITIGROUP GLOBAL MARKETS INC.,
HSBC SECURITIES (USA) INC.,
MIZUHO BANK, LTD.,
SUMITOMO MITSUI BANKING CORPORATION,
THE BANK OF NOVA SCOTIA and
THE BANK OF TOKYO-MITSUBISHI UFJ, LTD.,
as Joint Lead Arrangers and Joint Bookrunners,
_____________________________________________________________
Bank of Montreal, Chicago Branch,
Canadian Imperial Bank of Commerce, New York Agency,
Compass Bank,
Royal Bank of Canada,
The Toronto-Dominion Bank,
Standard Chartered Bank,
U.S. Bank National Association and
Wells Fargo Bank, National Association,
as Senior Managing Agents
|
FREEPORT-MCMORAN INC.,
|
|
by
|
/s/ Kathleen L. Quirk
|
|
Name:Kathleen L. Quirk
|
|
Title:Executive Vice President, Chief Financial Officer and Treasurer
|
PT FREEPORT INDONESIA,
|
|
by
|
/s/ Robert R. Boyce
|
|
Name:Robert R. Boyce
|
|
Title:Assistant Treasurer
|
FREEPORT MCMORAN OIL & GAS LLC,
|
|
by
|
/s/ Kathleen L. Quirk
|
|
Name:Kathleen L. Quirk
|
|
Title:Executive Vice President,
|
JPMORGAN CHASE BANK, N.A., individually and as Administrative Agent and Issuing Bank,
|
|
by
|
/s/ Gitanjali Pundir
|
|
Name:Gitanjali Pundir
|
|
Title:Vice President
|
BANK OF AMERICA, NA., individually and as Issuing Bank,
|
|
by
|
/s/ Marc Ahlers
|
|
Name:Marc Ahlers
|
|
Title:Vice President
|
Name of Lender
|
BNP PARIBAS
|
|
individually and as Issuing Bank,
|
||
|
By
|
/s/ Nicolas Anberree
|
|
Name:Nicolas Anberree
|
|
|
Title:Vice President
|
For any Lender requiring a second signature line:
|
||
Name of Lender
|
||
individually and as Issuing Bank,
|
||
By
|
/s/ Clausdia Zarate
|
|
|
Name:Claudia Zarate
|
|
|
Title:Director
|
Name of Lender
|
The Bank of Nova Scotia
|
|
individually and as Issuing Bank,
|
||
|
By
|
/s/ Ian Stephenson
|
|
Name:Ian Stephenson
|
|
|
Title:Director
|
For any Lender requiring a second signature line:
|
||
Name of Lender
|
||
individually and as Issuing Bank,
|
||
By
|
/s/ Asif Rafiq
|
|
|
Name:Asif Rafiq
|
|
|
Title:Associate Director
|
Name of Lender
|
Citibank, N.A.
|
|
|
By
|
/s/ John Tucker
|
|
Name:John Tucker
|
|
|
Title:Vice President
|
For any Lender requiring a second signature line:
|
||
Name of Lender
|
|
|
By
|
|
|
|
Name:
|
|
|
Title:
|
Name of Lender
|
HSBC Bank USA, N.A.
|
|
|
By
|
/s/ Adam Hendley
|
|
Name:
Adam Hendley
|
|
|
Title:
Senior Vice President
|
Name of Lender
|
Mizuho Bank, Ltd.
|
|
|
By
|
/s/ Donna DeMagistris
|
|
Name:Donna DeMagistris
|
|
|
Title:Authorized Signatory
|
For any Lender requiring a second signature line:
|
||
Name of Lender
|
|
|
By
|
|
|
|
Name:
|
|
|
Title:
|
Name of Lender
|
Sumitono Mitsui Banking Corporation
|
|
|
By
|
/s/ James D. Weinstein
|
|
Name:James D. Weinstein
|
|
|
Title:Managing Director
|
For any Lender requiring a second signature line:
|
||
Name of Lender
|
|
|
By
|
|
|
|
Name:
|
|
|
Title:
|
Name of Lender
|
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
|
|
|
By
|
/s/ Mark Maloney
|
|
Name:Mark Maloney
|
|
|
Title:Authorized Signatory
|
For any Lender requiring a second signature line:
|
||
Name of Lender
|
|
|
By
|
|
|
|
Name:
|
|
|
Title:
|
Name of Lender
|
Standard Chartered Bank
|
|
|
By
|
/s/ Steven Aloupis
|
|
Name:STEVEN ALOUPIS A2388
|
|
|
Title:MANAGING DIRECTOR
CAPITAL MARKETS
|
For any Lender requiring a second signature line:
|
||
Name of Lender
|
Standard Chartered Bank
|
|
By
|
/s/ Hsing H. Huang
|
|
|
Name:HSING H. HUANG
|
|
|
Title:ASSOCIATE DIRECTOR
STANDARD CHARTERED BANK NY
|
Name of Lender
|
Bank of Montreal, Chicago Branch
|
|
|
By
|
/s/ Yacomba Kane
|
|
Name:Yacomba Kane
|
|
|
Title:Vice President
|
For any Lender requiring a second signature line:
|
||
Name of Lender
|
|
|
By
|
|
|
|
Name:
|
|
|
Title:
|
Name of Lender
|
Santander Bank, N.A.
|
|
|
By
|
/s/ William Maag
|
|
Name:William Maag
|
|
|
Title:Managing Director
|
For any Lender requiring a second signature line:
|
||
Name of Lender
|
|
|
By
|
|
|
|
Name:
|
|
|
Title:
|
Name of Lender
|
U.S. BANK NATIONAL ASSOCIATION
|
|
|
By
|
/s/ Marty McDonald
|
|
Name:Marty McDonald
|
|
|
Title:AVP
|
For any Lender requiring a second signature line:
|
||
Name of Lender
|
|
|
By
|
|
|
|
Name:
|
|
|
Title:
|
Name of Lender
|
WELLS FARGO BANK, NATIONAL ASSOCIATION
|
|
|
By
|
/s/ Mark H. Halldorson
|
|
Name:Mark H. Halldorson
|
|
|
Title:Director
|
Name of Lender
|
CRÉDIT AGRICOLE CORPORATE AND INVESTMENT BANK
|
|
|
By
|
/s/ Blake Wright
|
|
Name:Blake Wright
|
|
|
Title:Managing Director
|
For any Lender requiring a second signature line:
|
||
Name of Lender
|
CRÉDIT AGRICOLE CORPORATE AND INVESTMENT BANK
|
|
By
|
/s/ James Austin
|
|
|
Name:James Austin
|
|
|
Title:Vice President
|
Name of Lender
|
Societe Generale
|
|
|
By
|
/s/ P.E. Kavanagh
|
|
Name:P.E. Kavanagh
|
|
|
Title:Director
|
For any Lender requiring a second signature line:
|
||
Name of Lender
|
|
|
By
|
|
|
|
Name:
|
|
|
Title:
|
Name of Lender
|
Compass Bank
|
|
|
By
|
/s/ Susan Campuzano
|
|
Name:Susane Campuzano
|
|
|
Title:Service President
|
For any Lender requiring a second signature line:
|
||
Name of Lender
|
|
|
By
|
|
|
|
Name:
|
|
|
Title:
|
Name of Lender
|
Deutsche Bank AG New York Branch
|
|
|
By
|
/s/ Virginia Cosenza
|
|
Name:Virginia Cosenza
|
|
|
Title:Vice President
|
For any Lender requiring a second signature line:
|
||
Name of Lender
|
Deutsche Bank AG New York Branch
|
|
By
|
/s/ John S. McGill
|
|
|
Name:John S. McGill
|
|
|
Title:Director
|
Name of Lender
|
Royal Bank of Canada
|
|
|
By
|
/s/ Stam Fountoulakis
|
|
Name:Stam Fountoulakis
|
|
|
Title:Authorized Signatory
|
For any Lender requiring a second signature line:
|
||
Name of Lender
|
|
|
By
|
|
|
|
Name:
|
|
|
Title:
|
Name of Lender
|
The Toronto-Dominion Bank, New York Bank
|
|
|
By
|
/s/ Robyn Zeller
|
|
Name:Robyn Zeller
|
|
|
Title:Senior Vice President
|
For any Lender requiring a second signature line:
|
||
Name of Lender
|
|
|
By
|
|
|
|
Name:
|
|
|
Title:
|
Name of Lender
|
Goldman Sachs Bank USA
|
|
|
By
|
/s/ Michelle Latzoni
|
|
Name:Michelle Latzoni
|
|
|
Title:Authorized Signatory
|
For any Lender requiring a second signature line:
|
||
Name of Lender
|
|
|
By
|
|
|
|
Name:
|
|
|
Title:
|
Name of Lender
|
Citizens Bank, N.A.
|
|
|
By
|
/s/ Peter van der Horst
|
|
Name:Peter van der Horst
|
|
|
Title:Senior Vice President
|
For any Lender requiring a second signature line:
|
||
Name of Lender
|
|
|
By
|
|
|
|
Name:
|
|
|
Title:
|
Name of Lender
|
Canadian Imperial Bank of Commerce, New York Branch
|
|
|
By
|
/s/ Robert Robin
|
|
Name:Robert Robin
|
|
|
Title:Authorized Signatory
|
For any Lender requiring a second signature line:
|
||
Name of Lender
|
Canadian Imperial Bank of Commerce, New York Branch
|
|
By
|
/s/ Rhema Asaam
|
|
|
Name:Rhema Asaam
|
|
|
Title:Authorized Signatory
|
Name of Lender
|
Bank of China, New York Branch
|
|
|
By
|
/s/ Doug Yuan
|
|
Name:
Dong Yuan
|
|
|
Title:
Executive Vice President
|
For any Lender requiring a second signature line:
|
||
Name of Lender
|
|
|
By
|
|
|
|
Name:
|
|
|
Title:
|
Name of Lender
|
DBS Bank Ltd.
|
|
|
By
|
/s/ William Stafeil
|
|
Name:William Stafeil
|
|
|
Title:Portfolio Director
|
For any Lender requiring a second signature line:
|
||
Name of Lender
|
|
|
By
|
|
|
|
Name:
|
|
|
Title:
|
Name of Lender
|
THE NORTHERN TRUST COMPANY
|
|
|
By
|
/s/ John L. Lascody
|
|
Name:John L. Lascody
|
|
|
Title:Vice President
|
For any Lender requiring a second signature line:
|
||
Name of Lender
|
|
|
By
|
|
|
|
Name:
|
|
|
Title:
|
Name of Lender
|
Intesa Sanpaolo S.p.A., New York Branch
|
|
|
By
|
/s/ Katherine Hand
|
|
Name:Katherine Hand
|
|
|
Title:Relationship Manager
|
For any Lender requiring a second signature line:
|
||
Name of Lender
|
|
|
By
|
/s/ Francesco Di Mario
|
|
|
Name:Francesco Di Mario
|
|
|
Title:FVP & Head of Credit
|
Name of Lender
|
Capital One, N.A.
|
|
|
By
|
/s/ Tony Alexander
|
|
Name:Tony Alexander
|
|
|
Title:VP
|
For any Lender requiring a second signature line:
|
||
Name of Lender
|
|
|
By
|
|
|
|
Name:
|
|
|
Title:
|
Name of Lender
|
Natixis, New York Branch
|
|
|
By
|
/s/ Carla Gray
|
|
Name:Carla Gray
|
|
|
Title:Director
|
For any Lender requiring a second signature line:
|
||
Name of Lender
|
Natixis, New York Branch
|
|
By
|
/s/ Alisa Trani
|
|
|
Name:Alisa Trani
|
|
|
Title:Director
|
Name of Lender
|
UBS AG, STAMFORD BRANCH
|
|
|
By
|
/s/ Darlene Arias
|
|
Name:Darlene Arias
|
|
|
Title:Director
|
By
|
/s/ Houssem Daly
|
|
|
Name:Houssem Daly
|
|
|
Title:Associate Director
|
National Bank Of Kuwait, S.A.K.P,
Grand Cayman Branch
|
|
By
|
/s/ Wendy Wanniger
|
|
Name:Wendy Wanniger
|
|
Title:Executive Manager
|
National Bank Of Kuwait, S.A.K.P,
Grand Cayman Branch
|
|
By
|
/s/ Michael McHugh
|
|
Name:Michael McHugh
|
|
Title:Executive Manager
|
Name of Lender
|
UMB BANK NA
|
|
|
By
|
/s/ David A. Proffitt
|
|
Name:DAVID A. PROFFITT
|
|
|
Title:SENIOR VICE PRESIDENT
|
For any Lender requiring a second signature line:
|
||
Name of Lender
|
|
|
By
|
|
|
|
Name:
|
|
|
Title:
|
Phillips 66 Company
By:
/s/ Glenn E. Simpson
Name: Glenn E. Simpson
Title: General Manager
|
Freeport-McMoRan Oil & Gas LLC
By:
/s/ Doss R. Bourgeois
Name: Doss R. Bourgeois
Title: Executive Vice President, Exploration & Production
|
Phillips 66 Company
By: /s/ John W. Wright
Name: John W. Wright
Title:
|
Freeport-McMoRan Oil & Gas LLC
By: /s/ Doss R. Bourgeois
Name: Doss R. Bourgeois
Title: Executive Vice President, Exploration & Production
|
I.
|
|
II.
|
|
III.
|
|
(c)
|
All assets accounted for in Transfer Credits Accounts in this Plan, including Transfer Credit Accounts formerly maintained in the FM Services Company 1996 Supplemental Executive Capital Accumulation Plan, have been distributed to the Participants of record who have terminated employment. The Transfer Credit Contributions, defined in Section 1.07(f) of the FM Services Company 1996 Supplemental Executive Capital Accumulation Plan and Section 1.08(f) of the Freeport-McMoRan Copper & Gold Inc. 1996 Supplemental Executive Capital Accumulation Plan, are maintained with employer contributions in the FCX-SECAP Enhanced Company Contributions Credit Account.
|
ARTICLE I -- DEFINITIONS
|
2
|
1.00
|
Account or Accounts
2
|
1.01
|
Compensation
2
|
1.02
|
Beneficiary
3
|
1.03
|
Board of Directors
3
|
1.04
|
Committee
3
|
1.05
|
Company
3
|
1.06
|
Contribution
3
|
1.07
|
ECAP
3
|
1.08
|
Employee
3
|
1.09
|
Employer
3
|
1.10
|
Internal Revenue Code or Code
4
|
1.11
|
Participant
4
|
1.12
|
Participating Company
4
|
1.13
|
Plan
4
|
1.14
|
Plan Year
4
|
1.15
|
Separation from Service
4
|
1.16
|
Specified Employee
5
|
1.17
|
Value Determination Date
5
|
ARTICLE II -- ELIGIBILITY
|
5
|
2.00
|
Eligible Employee for Basic and Matching Contribution
5
|
2.01
|
Automatic Eligibility for Enhanced Company Contribution Credit
5
|
2.02
|
Automatic Eligibility for PIAP Equalization Group
5
|
ARTICLE III -- SECAP BASIC CREDITS
|
5
|
3.00
|
Deferral Election
5
|
3.01
|
Earnings
6
|
ARTICLE IV -- OTHER SECAP CREDITS
|
7
|
4.00
|
SECAP Company Matching Contribution Credit
7
|
4.01
|
SECAP Enhanced Company Contribution Credits
7
|
ARTICLE V -- VALUATION OF A PARTICIPANT’S INTEREST IN A FUND
|
8
|
5.00
|
Annual Statements
8
|
5.01
|
Valuation
8
|
ARTICLE VI -- PAYMENTS
|
8
|
6.00
|
Distribution Upon Separation from Service
8
|
6.01
|
Distribution Upon Death
9
|
6.02
|
Form of Payments
9
|
6.03
|
Loans Prohibited
9
|
6.04
|
409A Transition Period Election
9
|
ARTICLE VII -- VESTING AND FORFEITURES
|
9
|
7.00
|
Vesting and Forfeitures
9
|
7.01
|
Restoration of Forfeitures
9
|
ARTICLE VIII -- ADMINISTRATION
|
10
|
8.00
|
Committee
10
|
8.01
|
Notices, Statements, Etc.
10
|
8.02
|
Indemnification
10
|
8.03
|
Bookkeeping Accounts
10
|
8.04
|
Determination of Eligibility
11
|
ARTICLE IX -- CLAIMS PROCEDURES
|
11
|
9.00
|
Claims Procedures
11
|
ARTICLE X -- GENERAL PROVISIONS
|
12
|
10.00
|
Beneficiary Designation
12
|
10.01
|
Status of the Plan
12
|
10.02
|
Not a Contract of Employment
12
|
10.03
|
Unsecured General Creditor
12
|
10.04
|
Amendment and Termination
12
|
10.05
|
Non-Assignability
13
|
10.06
|
Offset
13
|
10.07
|
Governing Law 13
|
(a)
|
Basic Compensation
means Participant’s Basic Compensation, as defined in the ECAP.
|
(b)
|
SECAP Enhanced Compensation
means regular salary or wages actually paid by a Participating Company to a Participant, and which would have been payable to him or her but for his or her Employee Pre-tax Contributions, Catch-up Contributions, and contributions to Code Section 125 plans during the year, and any transportation fringe benefits under Code Section 132(f)(4), plus Differential Wage Payments as defined under Code Section 3401(h), shift differentials and fifty percent (50%) of all overtime and bonuses (including performance based special awards, PBA Performance Awards, and annual incentive bonuses paid under the Annual Incentive Program or the Performance Incentive Awards Program, whether received in cash or restricted stock units) and excluding, without limitation, completion, copper and sign-on bonuses, non-performance based discretionary special awards, stock-based incentive compensation (except as noted above), fringe benefits, reimbursements, overseas premiums, tax equalization payments, living and other allowances, and contributions to a plan of deferred compensation (e.g. SECAP) which are not included in the Participant’s gross income for the taxable year in which contributed.
|
(c)
|
PIAP Bonus Compensation
means the Eligible Employee’s bonus under the Performance Incentive Awards Program (PIAP) or its successor (PIAP Bonus) minus his
Net Compensation
. Net Compensation represents the portion of the Eligible Employee’s PIAP Bonus that is considered in calculating his PIAP Equalization Contribution in the ECAP. Net Compensation is defined as A, not to exceed B, where A equals 100% of the Employee’s PIAP Bonus and B equals the Code Section 401(a)(17) limit minus the Employee’s Annualized Basic Compensation based on Basic Compensation received in the full month immediately preceding the PIAP Bonus.
|
(a)
|
Basic Credits
means amounts credited to a Participant's Account pursuant to Section 3.00 of this Plan.
|
(b)
|
Company Savings Contribution Credits
means matching contribution amounts credited to a Participant’s Account prior to 2009.
|
(c)
|
Company Matching Contribution Credits
means matching contribution amounts credited to a Participant’s Account pursuant to Section 4.00 of this Plan.
|
(d)
|
Enhanced Company Contribution Credits
means amounts credited to a Participant’s Account pursuant to Section 4.01 of this Plan.
|
(e)
|
DC Adjustment Contribution Credits
means amounts that were contributed to the SECAP and FMS-SECAP as DC Adjustment Contribution for a period of sixty (60) months starting in July, 2000. The DC Adjustment Contribution Credits are accounted for in the Participant’s Enhanced Company Contribution Credits Account.
|
(a)
|
Basic Credits Deferral Election
. Each Eligible Employee (as defined in Section 2.00) may elect prior to the first day of each Plan Year to defer a
|
(b)
|
Irrevocable Election
. Once a Plan Year has begun, Participant elections shall be irrevocable. Notwithstanding, as permitted by Treasury Regulation Section 1.409A-3(j)(4)(viii), a Participant’s deferral election is cancelled as required by the ECAP to receive a hardship distribution pursuant to Treasury Regulation Section 1.401(k)-1(d)(3). If a Participant discontinues a deferral election, he will not be permitted to elect to make deferrals again until open enrollment for the succeeding Plan Year.
|
(c)
|
Duration of Deferral Election
. A Participant’s election to make deferrals to this Plan must be executed prior to the beginning of the Plan Year to which the agreement relates and shall be effective only for the Plan Year to which it relates.
|
(a)
|
The SECAP Company Matching Contribution Credit is 100% of the Participant’s Basic Credits, limited to five percent (5%) of such Participant’s Basic Compensation in excess of the Code Section 401(a)(17) dollar limit for the applicable year.
|
(b)
|
The SECAP Company Matching Contributions are credited to a Participant’s Company Matching Contributions Credit Account concurrently with the crediting of the SECAP Basic Credit to an Eligible Employee’s Account. If a Participant’s SECAP Company Matching Contributions are less than the dollar amount he or she would have received had the contributions been based upon the annual Basic Compensation in excess of the Code Section 401(a)(17) dollar amount, a “true-up” Company Matching Contribution Credit will be made.
|
(c)
|
The Participant's Company Savings Contribution Credits Account and Company Matching Contribution Credits Account shall be treated as if invested by the Committee in a manner to produce a rate of interest equal to the prime rate, as published in the Federal Reserve Statistical Report at the beginning of each month.
|
(a)
|
Each Eligible Employee (as defined in Section 2.01) will receive a SECAP Enhanced Company Contribution Credit equal to a percentage of his or her SECAP Enhanced Compensation that is in excess of the Code Section 401(a)(17) compensation limit. Such percentage will be the same as the percentage applied in determining the Eligible Employee’s ECAP Enhanced Company Contributions.
|
(b)
|
If the Company has imposed an administrative limit on an Eligible Employee’s ECAP Enhanced Company Contributions to prevent excess annual additions under the Code section 415 limit, the Eligible Employee will receive a SECAP Enhanced Company Contribution Credit equal to the amount that would have been contributed to the ECAP if such limit did not apply.
|
(c)
|
Each Eligible Employee (as defined in Section 2.02) will receive a SECAP Enhanced Company Contribution Credit equal to 50% of his PIAP Bonus Compensation multiplied by a percentage. Such percentage will be the same as the percentage applied in determining the Eligible Employee’s ECAP PIAP Equalization Contributions. For 2015 such percentage is 5%.
|
(d)
|
Enhanced Company Contributions for the Service Based Defined Contribution Grandfathered Group pursuant to ECAP section 4.03(c) and Discretionary Company Contributions pursuant to ECAP section 4.04 are not eligible for SECAP Enhanced Company Contribution Credits.
|
(e)
|
The Participant’s Enhanced Company Contribution Credits Account shall be treated as if invested by the Committee in a manner to produce a rate of interest equal to the prime rate, as published in the Federal Reserve Statistical Report at the beginning of each month.
|
(a)
|
Vesting
. A Participant’s interest in his Basic Credits Account, Company Savings Contribution Credits Account, and Company Matching Contribution Credits Account shall be 100% vested at all times. A Participant’s interest in his Enhanced Company Contribution Credits Account will vest at the same rate as his or her Enhanced Company Contribution Account in the ECAP.
|
(b)
|
Forfeitures
. A Participant’s non-vested amounts, if any, will forfeit when he or she receives a distribution of vested amounts. If the Participant does not have any vested amount, his or her Accounts will forfeit at the end of the year in which the Participant terminated employment.
|
(a)
|
If a claimant is dissatisfied with the determination of his or her benefits, eligibility, participation, service, or any other interest in the Plan, the claimant may submit a written request for a review of such determination to the Committee. The Committee will review the claim and will notify the claimant as to whether such claim has been granted or denied within 90 days (unless the claimant is advised that special circumstances require an extension of time).
|
(b)
|
If the claim is denied, the claimant will receive written or electronic notice of the adverse benefit determination explaining the denial in detail. The notice will include: (i) specific reason(s) for the denial; (ii) specific references to the Plan provision(s) on which the denial is based; (iii) whether any additional material or information is required; and (iv) explanation of the Plan’s review and appeal procedures.
|
(c)
|
The claimant has the right to appeal a denied claim. The claimant, his authorized representative, or beneficiary may file a written request for review of the claim with the Plan Administrator within 60 days after receipt of notification of the claim denial. As part of the claimant’s request for review, the claimant will have the opportunity to review pertinent documents and submit issues and comments in writing for consideration.
|
(d)
|
The Plan Administrator will hear and make a determination on the claimant’s appeal at the meeting that immediately follows receipt of the request for review, unless the appeal is received within 30 days preceding the date of such meeting in which case the appeal may be heard and decided at the second meeting following receipt of the request for appeal. The claimant will be notified of the decision on appeal no later than five (5) days after such decision is made.
|
(e)
|
No legal action for recovery of benefits may be commenced before a claimant has exhausted the claims and claims review procedure described above. Any legal action for recovery of benefits under this Plan must be commenced no later than the earlier of: (1) the shortest applicable statute of limitations provided by law; or (2) two years from the date the decision on appeal is delivered.
|
(a)
|
The Employer may terminate the Plan within 12 months of a corporate dissolution taxed under Code Section 331 or with the approval of a bankruptcy court, provided that Treasury Regulations Section 1.409A-3(j)(4)(ix)(A) is complied with.
|
(b)
|
Within the 30 days preceding or the 12 months following a Change in Control Event (as defined in Treasury Regulations §1.409A-3(i)(5)) provided that Treasury Regulations §1.409A-3(j)(4)(ix)(B) is complied with.
|
(c)
|
The Company may in its discretion terminate this Plan, provided, (i) the termination and liquidation does not occur proximate to a downturn in the financial health of the Employer; (ii) all arrangements sponsored by the Employer that would be aggregated with any terminated arrangement under Section 1.409A-1(c) of the Treasury Regulations if the same Employee participated in all of the arrangements are terminated; (iii) no payments other than payments that would be payable under the terms of the arrangements if the termination had not occurred are made within 12 months of the termination of the arrangements; (iv) all payments are made within 24 months of the termination of the arrangements; and (v) the Employer does not adopt a new arrangement that would be aggregated under Section 1.409A-1(c) of the Treasury Regulations if the same Employee participated in both arrangements, at any time within three years following the date of termination of the arrangement.
|
(a)
|
Affiliate
means Freeport Minerals Corporation (“FMC”), formerly Freeport-McMoRan Corporation, and all members of a controlled group of corporations (within the meaning of Code Section 414(b)) that includes FMC, all trades or business (whether or not incorporated) that are included in a group of trades or businesses under the common control (within the meaning of Code Section 414(c)) of FMC; all members of an affiliated service group (within the meaning of Code Section 414(m)) that includes FMC; and any other entity required to be aggregated with FMC under Code Section 414(o).
|
(b)
|
Beneficiary
means the person or trust that a SSP Participant, in his most recent written designation on file, shall have designated to receive his SSP Account in the event of his death.
|
(c)
|
SSP
means the Freeport-McMoRan Corporation Supplemental Savings Plan.
|
(d)
|
SSP Account
means the bookkeeping account balances as of June 30, 2009 that were transferred to this Plan from the Freeport-McMoRan Corporation Supplemental Savings Plan and credited for earnings attributable thereto.
|
(e)
|
SSP Participant
means a Participant in the Plan that was a participant in the SSP and whose SSP Account was transferred to the Plan, effective July 1, 2009.
|
(f)
|
Trust Agreement
means that certain trust agreement established pursuant to the Plan between the Company and the Trustee or any trust agreement hereafter established, the provisions of which are incorporated herein by reference.
|
(g)
|
Trustee
means Charles Schwab Trust Company.
|
(h)
|
Trust Fund
means all assets held by the Trustee pursuant to the Trust Agreement solely for the purpose of paying the SSP Accounts to the SSP Participants.
|
(a)
|
SSP Participant Election
. Except as otherwise stated herein, the timing and form of payment shall be determined based upon the election made by the SSP Participant on or before December 31, 2008 on the form titled “Freeport-McMoRan Corporation Supplemental Savings Plan, Distribution Consent Form (Applies to Entire Account Balance)”. The distribution options were (a) to elect to receive the SSP Account per an existing method of distribution on file or, if there was more than one form or date of payment on file, then an election was made to treat the entire account balance according to one of the elections on file; and (b), if currently employed, additional options were (i) receive in lump sum after termination of employment or (ii) receive in lump sum by February 28 in the year following termination of employment.
|
(b)
|
Small Amounts
. Notwithstanding, if upon the SSP Participant’s termination of employment or death, the value of his SSP Account is $10,000 or less, the Committee, regardless of any elections made by the SSP Participant, shall direct the Trustee to pay the benefits in the form of a single lump sum distribution on the last business day of February in the Plan Year following such termination of employment or death.
|
(c)
|
Six-Month Payment Delay
. Notwithstanding any provision herein, if the SSP Participant is a Specified Employee payment shall not be made earlier than the first business day that is six months after the Participant’s Separation from Service or, if earlier, the date of death of the Participant.
|
(d)
|
Distribution upon Death
. Following the SSP Participant’s death, distributions will commence on the last business day of the February in the Plan Year following the end of the Plan Year in which the SSP Participant dies. Distributions will be made to the Beneficiary, if any, designated by the SSP Participant, or if the SSP Participant is not survived by any such designated Beneficiary or there is no validly designated Beneficiary, the Beneficiary shall be the SSP Participant’s estate. If the designated Beneficiary dies after the payment of benefits begin, then the Beneficiary for the remainder of the benefits payable shall be the estate of the Beneficiary.
|
(e)
|
Special Payment Provision Applicable on Sale of Affiliate
. A SSP Participant who is employed by an Affiliate of FMC as of the date that the Affiliate ceases to be an Affiliate for purposes of this Plan due to a “change in the ownership or effective control” or “in the ownership of a
|
Scheduled Vesting Date
|
Number of RSUs
|
|
|
|
|
|
|
|
|
|
|
|
For the years ended December 31,
|
|
||||||||||||||
|
2014
|
|
2013
|
|
2012
|
|
2011
|
|
2010
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
||||||
(Loss) income before income taxes and equity in affiliated companies' net earnings
|
$
|
(424
|
)
|
|
4,913
|
|
|
5,486
|
|
|
8,818
|
|
|
8,512
|
|
|
Amortization of previously capitalized interest
|
55
|
|
|
45
|
|
|
41
|
|
|
36
|
|
|
34
|
|
|
|
Less: capitalized interest
|
(235
|
)
|
|
(174
|
)
|
|
(81
|
)
|
|
(109
|
)
|
|
(66
|
)
|
|
|
Less: preferred dividends of a consolidated subsidiary
|
(53
|
)
|
|
(31
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
(Losses) earnings from continuing operations before fixed charges
|
$
|
(657
|
)
|
|
4,753
|
|
|
5,446
|
|
|
8,745
|
|
|
8,480
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Fixed charges:
|
|
|
|
|
|
|
|
|
|
|
||||||
Interest expense, net of capitalized interest
|
$
|
673
|
|
|
550
|
|
|
180
|
|
|
301
|
|
|
448
|
|
|
Capitalized interest
|
235
|
|
|
174
|
|
|
81
|
|
|
109
|
|
|
66
|
|
|
|
Amortization of debt expenses, premiums and and discounts
|
(42
|
)
|
|
(32
|
)
|
|
7
|
|
|
11
|
|
|
14
|
|
|
|
Interest portion of rental expense
|
27
|
|
|
23
|
|
|
22
|
|
|
23
|
|
|
26
|
|
|
|
Preferred dividends of a consolidated subsidiary
|
53
|
|
|
31
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Total fixed charges
|
$
|
946
|
|
|
746
|
|
|
290
|
|
|
444
|
|
|
554
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Adjusted earnings
|
289
|
|
|
5,499
|
|
|
5,736
|
|
|
9,189
|
|
|
9,034
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Ratio of earnings to fixed charges
a
|
$
|
—
|
|
b
|
7.4
|
|
|
19.8
|
|
|
20.7
|
|
|
16.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Preferred dividend requirements:
|
|
|
|
|
|
|
|
|
|
|
||||||
Total fixed charges
|
$
|
946
|
|
|
746
|
|
|
290
|
|
|
444
|
|
|
554
|
|
|
Preferred stock dividends
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
96
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Combined fixed charges and preferred stock dividends
|
946
|
|
|
746
|
|
|
290
|
|
|
444
|
|
|
650
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Ratio of earnings to combined fixed charges and preferred stock dividends
a
|
$
|
—
|
|
b
|
7.4
|
|
|
19.8
|
|
|
20.7
|
|
|
13.9
|
|
|
a.
|
For purposes of computing the consolidated ratio of earning to fixed charges, earnings consist of (loss) income before income taxes and equity in affiliated companies' net earnings. Noncontrolling interests were not deducted from earnings as all such subsidiaries had fixed charges. Fixed charges consist of interest (including capitalized interest) of all indebtedness; amortization of debt discounts, premiums and expenses; the portion of rental expense that FCX believes to be representative of interest; and preferred stock dividends of a consolidated subsidiary. For purposes of calculating the ratio of earnings to combined fixed charges and preferred stock dividends, the preferred stock dividend requirements were assumed to be equal to the pre-tax earnings that would be required to cover such dividend requirements. The amount of pre-tax earnings required to cover such preferred stock dividends was computed using the effective tax rate for each applicable year.
|
b.
|
As a result of the loss recorded in 2014, the ratio coverage was less than 1:1. FCX would have needed to generate additional earnings of $657 million to achieve coverage of 1:1 in 2014.
|
List of Subsidiaries of
|
||
Freeport-McMoRan Inc.
|
||
|
|
|
|
|
|
Entity(1)
|
Jurisdiction of Organization
|
|
Climax Molybdenum Company
|
Delaware
|
|
Cyprus Amax Minerals Company
|
Delaware
|
|
FCX Oil & Gas Inc.
|
Delaware
|
|
Freeport-McMoRan Bagdad Inc.
|
Delaware
|
|
Freeport-McMoRan Chino Mines Company
|
New Mexico
|
|
Freeport-McMoRan Morenci Inc.
|
Delaware
|
|
Freeport-McMoRan Oil & Gas LLC
|
Delaware
|
|
Freeport-McMoRan Safford Inc.
|
Delaware
|
|
Freeport-McMoRan Sierrita Inc.
|
Delaware
|
|
Freeport Minerals Corporation
|
Delaware
|
|
McMoRan Exploration LLC
|
Delaware
|
|
PT Freeport Indonesia
|
Indonesia and Delaware
|
|
PXP Offshore LLC
|
Delaware
|
|
Sociedad Contractual Minera El Abra
|
Chile
|
|
Sociedad Minera Cerro Verde S.A.A.
|
Peru
|
|
Tenke Fungurume Mining S.A.
|
Democratic Republic of Congo
|
|
|
|
|
|
|
|
(1)
|
Omitted from this list are subsidiaries that, considered in the aggregate as a single subsidiary, would not constitute a significant subsidiary as of December 31, 2014.
|
1)
|
Registration Statement (Form S-8 No. 333-85803) pertaining to the Freeport-McMoRan Copper & Gold Inc. 1999 Stock Incentive Plan,
|
2)
|
Registration Statement (Form S-8 No. 333-105535) pertaining to the Freeport-McMoRan Copper & Gold Inc. 2003 Stock Incentive Plan,
|
3)
|
Registration Statement (Form S-8 No. 333-115292) pertaining to the Freeport-McMoRan Copper & Gold Inc. 2004 Director Compensation Plan,
|
4)
|
Registration Statement (Form S-8 No. 333-136084) pertaining to the Freeport-McMoRan Copper & Gold Inc. 2006 Stock Incentive Plan,
|
5)
|
Registration Statement (Form S-8 No. 333-141358) pertaining to the Phelps Dodge 2003 Stock Option and Restricted Stock Plan and the Phelps Dodge 1998 Stock Option and Restricted Stock Plan,
|
6)
|
Registration Statement (Form S-8 No. 333-147413) pertaining to the Amended and Restated Freeport-McMoRan Copper & Gold Inc. 2006 Stock Incentive Plan, and
|
7)
|
Registration Statement (Form S-8 No. 333-189047) pertaining to the Plains Exploration & Production Company 2010 Incentive Award Plan; the Plains Exploration & Production 2004 Stock Incentive Plan; the McMoRan Exploration Co. Amended and Restated 2008 Stock Incentive Plan; the McMoRan Exploration Co. 2005 Stock Incentive Plan, as amended and restated; the McMoRan Exploration Co. 2004 Director Compensation Plan, as amended and restated; the McMoRan Exploration Co. 2003 Stock Incentive Plan, as amended and restated; the McMoRan Exploration Co. 2001 Stock Incentive Plan, as amended and restated; the McMoRan Exploration Co. 2000 Stock Incentive Plan, as amended and restated; the McMoRan Exploration Co. 1998 Stock Option Plan, as amended and restated; and the McMoRan Exploration Co. 1998 Stock Option Plan for Non-Employee Directors, as amended and restated;
|
|
/s/ Douglas N. Currault II
|
|
Douglas N. Currault II
|
|
Secretary
|
|
/s/ Robert A. Day
|
|
Robert A. Day
|
|
/s/ Bobby Lee Lackey
|
|
Bobby Lee Lackey
|
|
/s/ James R. Moffett
|
|
James R. Moffett
|
|
/s/ Richard C. Adkerson
|
|
Richard C. Adkerson
|
|
/s/ Kathleen L. Quirk
|
|
Kathleen L. Quirk
|
|
/s/ C. Donald Whitmire, Jr.
|
|
C. Donald Whitmire, Jr.
|
|
/s/ H. Devon Graham, Jr.
|
|
H. Devon Graham, Jr.
|
|
/s/ Gerald J. Ford
|
|
Gerald J. Ford
|
|
/s/ Robert J. Allison, Jr.
|
|
Robert J. Allison, Jr.
|
|
/s/ Stephen H. Siegele
|
|
Stephen H. Siegele
|
|
/s/ Charles C. Krulak
|
|
Charles C. Krulak
|
|
/s/ Jon C. Madonna
|
|
Jon C. Madonna
|
|
/s/ Dustan E. McCoy
|
|
Dustan E. McCoy
|
|
/s/ Lydia H. Kennard
|
|
Lydia H. Kennard
|
|
/s/ Frances Fragos Townsend
|
|
Frances Fragos Townsend
|
|
/s/ Alan R. Buckwalter, III
|
|
Alan R. Buckwalter, III
|
|
/s/ James C. Flores
|
|
James C. Flores
|
|
/s/ Thomas A. Fry, III
|
|
Thomas A. Fry, III
|
1.
|
I have reviewed this annual report on Form 10-K of Freeport-McMoRan Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
|
/s/ Richard C. Adkerson
|
|
Richard C. Adkerson
|
|
Vice Chairman,
|
|
President and Chief Executive Officer
|
1.
|
I have reviewed this annual report on Form 10-K of Freeport-McMoRan Copper & Gold Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
|
/s/ Kathleen L. Quirk
|
|
Kathleen L. Quirk
|
|
Executive Vice President,
|
|
Chief Financial Officer and Treasurer
|
|
/s/ Richard C. Adkerson
|
|
Richard C. Adkerson
|
|
Vice Chairman,
|
|
President and Chief Executive Officer
|
|
/s/ Kathleen L. Quirk
|
|
Kathleen L. Quirk
|
|
Executive Vice President,
|
|
Chief Financial Officer and Treasurer
|
•
|
Section 104 S&S Citations
: Citations issued by MSHA under Section 104(a) of the Mine Act for violations of health or safety standards that could significantly and substantially contribute to a serious injury if left unabated.
|
•
|
Section 104(b) Orders
: Orders issued under Section 104(b) of the Mine Act, which represent a failure to abate a citation under Section 104(a) within the period prescribed by MSHA. This results in an order of immediate withdrawal from the area of the mine affected by the condition until MSHA determines that the violation has been abated.
|
•
|
Section 104(d) Citations and Orders
: Citations and orders issued by MSHA under Section 104(d) of the Mine Act for unwarrantable failure to comply with mandatory health or safety standards. These types of violations could significantly and substantially contribute to a serious injury; however, the conditions do not cause imminent danger (refer to discussion of imminent danger orders below).
|
•
|
Section 110(b)(2) Violations
: Flagrant violations identified by MSHA under Section 110(b)(2) of the Mine Act. The term flagrant with respect to a violation is defined as “a reckless or repeated failure to make reasonable efforts to eliminate a known violation of a mandatory health or safety standard that substantially and proximately caused, or reasonably could have expected to cause, death or serious bodily injury.”
|
•
|
Section 107(a) Orders
: Orders issued by MSHA under Section 107(a) of the Mine Act for situations in which MSHA determined an imminent danger existed. Orders issued under Section 107(a) of the Mine Act require the operator of the mine to cause all persons (except authorized persons) to be withdrawn from the mine until the imminent danger and the conditions that caused such imminent danger cease to exist.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Potential
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
to Have
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pattern of
|
|
Pattern of
|
|||||||
|
|
|
|
|
|
|
|
Section
|
|
|
|
|
|
|
|
|
|
Violations
|
|
Violation
|
|||||||
|
|
|
|
Section
|
|
Section
|
|
104(d)
|
|
Section
|
|
Section
|
|
|
|
Mining
|
|
Under
|
|
Under
|
|||||||
|
|
|
|
104 S&S
|
|
104(b)
|
|
Citations
|
|
110(b)(2)
|
|
107(a)
|
|
Proposed
|
|
Related
|
|
Section
|
|
Section
|
|||||||
|
|
|
|
Citations
|
|
Orders
|
|
and Orders
|
|
Violations
|
|
Orders
|
|
Assessments
(2)
|
|
Fatalities
|
|
104(e)
|
|
104(e)
|
|||||||
Mine ID
(1)
|
|
Mine or Operation Name
|
|
(#)
|
|
(#)
|
|
(#)
|
|
(#)
|
|
(#)
|
|
($)
|
|
(#)
|
|
(yes/no)
|
|
(yes/no)
|
|||||||
0200137
|
|
Freeport-McMoRan Bagdad Inc. (Bagdad)
|
|
9
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
16,575
|
|
|
—
|
|
|
No
|
|
No
|
2900708
|
|
Freeport-McMoRan Chino Mines Company (Chino)
|
|
38
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
110,435
|
|
|
—
|
|
|
No
|
|
No
|
0200112
|
|
Freeport-McMoRan Miami Inc. (Miami)
|
|
12
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8,646
|
|
|
—
|
|
|
No
|
|
No
|
0200024
|
|
Freeport-McMoRan Morenci Inc. (Morenci)
|
|
68
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
114,254
|
|
|
—
|
|
|
No
|
|
No
|
0203131
|
|
Freeport-McMoRan Safford Inc. (Safford)
|
|
11
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
10,015
|
|
|
—
|
|
|
No
|
|
No
|
0200144
|
|
Freeport-McMoRan Sierrita Inc. (Sierrita)
|
|
38
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
78,297
|
|
|
—
|
|
|
No
|
|
No
|
2900159
|
|
Tyrone Mine (Tyrone)
|
|
11
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
16,188
|
|
|
—
|
|
|
No
|
|
No
|
0500790
|
|
Henderson Operations (Henderson)
|
|
22
|
|
|
3
|
|
(3)
|
—
|
|
|
—
|
|
|
—
|
|
|
34,568
|
|
|
—
|
|
|
No
|
|
No
|
0502256
|
|
Climax Mine (Climax)
|
|
9
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
8,238
|
|
|
—
|
|
|
No
|
|
No
|
|
|
Freeport-McMoRan Cobre Mining Company:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
2900725
|
|
Open Pit & Continental Surf Comp
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
100
|
|
|
—
|
|
|
No
|
|
No
|
2900731
|
|
Continental Mill Complex
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
100
|
|
|
—
|
|
|
No
|
|
No
|
0201656
|
|
Copper Queen Branch
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
No
|
|
No
|
0202579
|
|
Cyprus Tohono Corporation
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
745
|
|
|
—
|
|
|
No
|
|
No
|
0203262
|
|
Twin Buttes Mine
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
No
|
|
No
|
2902395
|
|
Chieftain 2100 Screening Plant
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
No
|
|
No
|
0203254
|
|
Warrior 1800 Screening Plant
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
No
|
|
No
|
(1)
|
MSHA assigns an identification number to each mine or operation and may or may not assign separate identification numbers to related facilities.
|
(2)
|
Amounts represent the total dollar value of proposed assessments received on or before
February 20, 2015
, for citations or orders issued by MSHA during the year ended
December 31, 2014
. FCX is contesting approximately $200 thousand of these proposed assessments.
|
(3)
|
During the year ended
December 31, 2014
, Henderson was issued a 104(b) citation that was subsequently vacated.
|
•
|
Contest Proceedings
- A contest proceeding may be filed by an operator to challenge the issuance of a citation or order issued by MSHA.
|
•
|
Civil Penalty Proceedings
- A civil penalty proceeding is an administrative proceeding that may be filed by an operator to challenge a civil penalty MSHA has proposed for an alleged violation contained in a citation or order. The validity of the citation may be challenged in this proceeding as well.
|
•
|
Discrimination Proceedings
- Involves a miner's allegation that he or she has suffered adverse employment action because he or she engaged in activity protected under the Mine Act, such as making a safety complaint. Also includes temporary reinstatement proceedings involving cases in which a miner has filed a complaint with MSHA stating that he or she has suffered discrimination and the miner has lost his or her position.
|
•
|
Compensation Proceedings
- A compensation proceeding may be filed by miners entitled to compensation when a mine is closed by certain closure orders issued by MSHA. The purpose of the proceeding is to determine the amount of compensation, if any, due to miners idled by the orders.
|
•
|
Temporary Relief -
Applications for temporary relief are applications filed under section 105(b)(2) of the Mine Act for temporary relief from any modification or termination of any order.
|
•
|
Appeals -
An appeal may be filed by an operator to challenge judges decisions or orders to the commission, including petitions for discretionary review and review by the commission on its own motion.
|
|
|
Legal Actions Pending at December 31, 2014
2
|
|
|
|
|
|
|||||||||||||||||||||
|
|
Contest
|
|
Civil Penalty
|
|
Discrimination
|
|
Compensation
|
|
Temporary
|
|
|
|
|
|
Legal Actions
|
|
Legal Actions
|
|
|||||||||
|
|
Proceedings
|
|
Proceedings
|
|
Proceedings
|
|
Proceedings
|
|
Relief
|
|
Appeals
|
|
Total
|
|
Instituted
(2)
|
|
Resolved
(3)
|
|
|||||||||
Mine ID
(1)
|
|
(#)
|
|
(#)
|
|
(#)
|
|
(#)
|
|
(#)
|
|
(#)
|
|
(#)
|
|
(#)
|
|
(#)
|
|
|||||||||
0200137
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2900708
|
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
4
|
|
|
—
|
|
|
0200112
|
|
—
|
|
|
6
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6
|
|
|
—
|
|
|
—
|
|
|
0200024
|
|
—
|
|
|
8
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8
|
|
|
5
|
|
|
9
|
|
|
0203131
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0200144
|
|
5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5
|
|
|
—
|
|
|
—
|
|
|
2900159
|
|
—
|
|
|
6
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6
|
|
|
—
|
|
|
6
|
|
|
0500790
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0502256
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2900725
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2900731
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0201656
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0202579
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0203262
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2902395
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0203254
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1)
|
MSHA assigns an identification number to each mine or operation and may or may not assign separate identification numbers to related facilities. Refer to "Mine Safety Data" table for related mine or operation name.
|
(2)
|
Legal actions pending at
December 31, 2014
, and legal actions instituted during the year are based on the date that a docket number was assigned to the proceeding.
|
(3)
|
Legal actions resolved during the year are based on the date that the settlement motion resolving disputed matters is filed with the Commission and the matter is effectively closed by MSHA.
|
|
|
Net Reserves
|
|
Future Net Revenue (M$)
|
||||||
|
|
Oil
|
|
NGL
|
|
Gas
|
|
|
|
Present Worth
|
Category
|
|
(MBBL)
|
|
(MBBL)
|
|
(MMCF)
|
|
Total
|
|
at 10%
|
|
|
|
|
|
|
|
|
|
|
|
Proved Developed Producing
|
|
136,033.5
|
|
5,072.5
|
|
269,410.9
|
|
5,559,246.0
|
|
4,568,107.3
|
Proved Developed Non-Producing
|
|
33,338.6
|
|
257.1
|
|
25,081.0
|
|
1,653,836.8
|
|
948,207.1
|
Proved Undeveloped
|
|
100,462.1
|
|
3,237.5
|
|
231,455.3
|
|
4,401,074.1
|
|
2,257,585.1
|
Total Proved
|
|
269,834.2
|
|
8,567.1
|
|
525,947.2
|
|
11,614,156.9
|
|
7,773,899.5
|
|
|
|
|
|
|
|
|
|
|
|
Probable Developed
|
|
31,298.9
|
|
1,463.5
|
|
25,371.9
|
|
2,343,950.4
|
|
1,520,093.7
|
Probable Undeveloped
|
|
158,075.7
|
|
4,098.4
|
|
205,773.4
|
|
7,624,497.1
|
|
3,172,808.6
|
Total Probable
|
|
189,374.6
|
|
5,561.8
|
|
231,145.3
|
|
9,968,447.5
|
|
4,692,902.3
|
(i)
|
Same geological formation (but not necessarily in pressure communication with the reservoir of interest);
|
(ii)
|
Same environment of deposition;
|
(iii)
|
Similar geological structure; and
|
(iv)
|
Same drive mechanism.
|
(i)
|
Through existing wells with existing equipment and operating methods or in which the cost of the required equipment is relatively minor compared to the cost of a new well; and
|
(ii)
|
Through installed extraction equipment and infrastructure operational at the time of the reserves estimate if the extraction is by means not involving a well.
|
(i)
|
Gain access to and prepare well locations for drilling, including surveying well locations for the purpose of determining specific development drilling sites, clearing ground, draining, road building, and relocating public roads, gas lines, and power lines, to the extent necessary in developing the proved reserves.
|
(ii)
|
Drill and equip development wells, development-type stratigraphic test wells, and service wells, including the costs of platforms and of well equipment such as casing, tubing, pumping equipment, and the wellhead assembly.
|
(iii)
|
Acquire, construct, and install production facilities such as lease flow lines, separators, treaters, heaters, manifolds, measuring devices, and production storage tanks, natural gas cycling and processing plants, and central utility and waste disposal systems.
|
(iv)
|
Provide improved recovery systems.
|
(i)
|
Costs of topographical, geographical and geophysical studies, rights of access to properties to conduct those studies, and salaries and other expenses of geologists, geophysical crews, and others conducting those studies. Collectively, these are sometimes referred to as geological and geophysical or "G&G" costs.
|
(ii)
|
Costs of carrying and retaining undeveloped properties, such as delay rentals, ad valorem taxes on properties, legal costs for title defense, and the maintenance of land and lease records.
|
(iii)
|
Dry hole contributions and bottom hole contributions.
|
(iv)
|
Costs of drilling and equipping exploratory wells.
|
(v)
|
Costs of drilling exploratory-type stratigraphic test wells.
|
(i)
|
Oil and gas producing activities include:
|
(A)
|
The search for crude oil, including condensate and natural gas liquids, or natural gas ("oil and gas") in their natural states and original locations;
|
(B)
|
The acquisition of property rights or properties for the purpose of further exploration or for the purpose of removing the oil or gas from such properties;
|
(C)
|
The construction, drilling, and production activities necessary to retrieve oil and gas from their natural reservoirs, including the acquisition, construction, installation, and maintenance of field gathering and storage systems, such as:
|
(1)
|
Lifting the oil and gas to the surface; and
|
(2)
|
Gathering, treating, and field processing (as in the case of processing gas to extract liquid hydrocarbons); and
|
(D)
|
Extraction of saleable hydrocarbons, in the solid, liquid, or gaseous state, from oil sands, shale, coalbeds, or other nonrenewable natural resources which are intended to be upgraded into synthetic oil or gas, and activities undertaken with a view to such extraction.
|
a.
|
The first point at which oil, gas, or gas liquids, natural or synthetic, are delivered to a main pipeline, a common carrier, a refinery, or a marine terminal; and
|
b.
|
In the case of natural resources that are intended to be upgraded into synthetic oil or gas, if those natural resources are delivered to a purchaser prior to upgrading, the first point at which the natural resources are delivered to a main pipeline, a common carrier, a refinery, a marine terminal, or a facility which upgrades such natural resources into synthetic oil or gas.
|
(ii)
|
Oil and gas producing activities do not include:
|
(A)
|
Transporting, refining, or marketing oil and gas;
|
(B)
|
Processing of produced oil, gas, or natural resources that can be upgraded into synthetic oil or gas by a registrant that does not have the legal right to produce or a revenue interest in such production;
|
(C)
|
Activities relating to the production of natural resources other than oil, gas, or natural resources from which synthetic oil and gas can be extracted; or
|
(D)
|
Production of geothermal steam.
|
(i)
|
When deterministic methods are used, the total quantities ultimately recovered from a project have a low probability of exceeding proved plus probable plus possible reserves. When probabilistic methods are used, there should be at least a 10% probability that the total quantities ultimately recovered will equal or exceed the proved plus probable plus possible reserves estimates.
|
(ii)
|
Possible reserves may be assigned to areas of a reservoir adjacent to probable reserves where data control and interpretations of available data are progressively less certain. Frequently, this will be in areas where geoscience and engineering data are unable to define clearly the area and vertical limits of commercial production from the reservoir by a defined project.
|
(iii)
|
Possible reserves also include incremental quantities associated with a greater percentage recovery of the hydrocarbons in place than the recovery quantities assumed for probable reserves.
|
(iv)
|
The proved plus probable and proved plus probable plus possible reserves estimates must be based on reasonable alternative technical and commercial interpretations within the reservoir or subject project that are clearly documented, including comparisons to results in successful similar projects.
|
(v)
|
Possible reserves may be assigned where geoscience and engineering data identify directly adjacent portions of a reservoir within the same accumulation that may be separated from proved areas by faults with displacement less than formation thickness or other geological discontinuities and that have not been penetrated by a wellbore, and the registrant believes that such adjacent portions are in communication with the known (proved) reservoir. Possible reserves may be assigned to areas that are structurally higher or lower than the proved area if these areas are in communication with the proved reservoir.
|
(vi)
|
Pursuant to paragraph (a)(22)(iii) of this section, where direct observation has defined a highest known oil (HKO) elevation and the potential exists for an associated gas cap, proved oil reserves should be assigned in the structurally higher portions of the reservoir above the HKO only if the higher contact can be established with reasonable certainty through reliable technology. Portions of the reservoir that do not meet this reasonable certainty criterion may be assigned as probable and possible oil or gas based on reservoir fluid properties and pressure gradient interpretations.
|
(i)
|
When deterministic methods are used, it is as likely as not that actual remaining quantities recovered will exceed the sum of estimated proved plus probable reserves. When probabilistic methods are used, there should be at least a 50% probability that the actual quantities recovered will equal or exceed the proved plus probable reserves estimates.
|
(ii)
|
Probable reserves may be assigned to areas of a reservoir adjacent to proved reserves where data control or interpretations of available data are less certain, even if the interpreted reservoir continuity of structure or productivity does not meet the reasonable certainty criterion. Probable reserves may be assigned to areas that are structurally higher than the proved area if these areas are in communication with the proved reservoir.
|
(iii)
|
Probable reserves estimates also include potential incremental quantities associated with a greater percentage recovery of the hydrocarbons in place than assumed for proved reserves.
|
(iv)
|
See also guidelines in paragraphs (a)(17)(iv) and (a)(17)(vi) of this section.
|
(i)
|
Costs incurred to operate and maintain wells and related equipment and facilities, including depreciation and applicable operating costs of support equipment and facilities and other costs of operating and maintaining those wells and related equipment and facilities. They become part of the cost of oil and gas produced. Examples of production costs (sometimes called lifting costs) are:
|
(A)
|
Costs of labor to operate the wells and related equipment and facilities.
|
(B)
|
Repairs and maintenance.
|
(C)
|
Materials, supplies, and fuel consumed and supplies utilized in operating the wells and related equipment and facilities.
|
(D)
|
Property taxes and insurance applicable to proved properties and wells and related equipment and facilities.
|
(E)
|
Severance taxes.
|
(ii)
|
Some support equipment or facilities may serve two or more oil and gas producing activities and may also serve transportation, refining, and marketing activities. To the extent that the support equipment and facilities are used in oil and gas producing activities, their depreciation and applicable operating costs become exploration, development or production costs, as appropriate. Depreciation, depletion, and amortization of capitalized acquisition, exploration, and development costs are not production costs but also become part of the cost of oil and gas produced along with production (lifting) costs identified above.
|
(i)
|
The area of the reservoir considered as proved includes:
|
(A)
|
The area identified by drilling and limited by fluid contacts, if any, and
|
(B)
|
Adjacent undrilled portions of the reservoir that can, with reasonable certainty, be judged to be continuous with it and to contain economically producible oil or gas on the basis of available geoscience and engineering data.
|
(ii)
|
In the absence of data on fluid contacts, proved quantities in a reservoir are limited by the lowest known hydrocarbons (LKH) as seen in a well penetration unless geoscience, engineering, or performance data and reliable technology establishes a lower contact with reasonable certainty.
|
(iii)
|
Where direct observation from well penetrations has defined a highest known oil (HKO) elevation and the potential exists for an associated gas cap, proved oil reserves may be assigned in the structurally higher portions of the reservoir only if geoscience, engineering, or performance data and reliable technology establish the higher contact with reasonable certainty.
|
(iv)
|
Reserves which can be produced economically through application of improved recovery techniques (including, but not limited to, fluid injection) are included in the proved classification when:
|
(A)
|
Successful testing by a pilot project in an area of the reservoir with properties no more favorable than in the reservoir as a whole, the operation of an installed program in the reservoir or an analogous
|
(B)
|
The project has been approved for development by all necessary parties and entities, including governmental entities.
|
(v)
|
Existing economic conditions include prices and costs at which economic producibility from a reservoir is to be determined. The price shall be the average price during the 12-month period prior to the ending date of the period covered by the report, determined as an unweighted arithmetic average of the first-day-of-the-month price for each month within such period, unless prices are defined by contractual arrangements, excluding escalations based upon future conditions.
|
(i)
|
Reserves on undrilled acreage shall be limited to those directly offsetting development spacing areas that are reasonably certain of production when drilled, unless evidence using reliable technology exists that establishes reasonable certainty of economic producibility at greater distances.
|
(ii)
|
Undrilled locations can be classified as having undeveloped reserves only if a development plan has been adopted indicating that they are scheduled to be drilled within five years, unless the specific circumstances, justify a longer time.
|
(iii)
|
Under no circumstances shall estimates for undeveloped reserves be attributable to any acreage for which an application of fluid injection or other improved recovery technique is contemplated, unless such techniques have been proved effective by actual projects in the same reservoir or an analogous reservoir, as defined in paragraph (a)(2) of this section, or by other evidence using reliable technology establishing reasonable certainty.
|
/s/ Val Rick Robinson
|
Val Rick Robinson, P.E.
|
TBPE License No. 105137
|
Senior Vice President
|
As of December 31, 2014
|
|
|
Proved
|
||||||||||||||||||
|
|
Developed
|
|
|
|
Total
|
||||||||||||||
|
|
Producing
|
|
Non-Producing
|
|
Undeveloped
|
|
Proved
|
||||||||||||
Net Remaining Reserves
|
|
|
|
|
|
|
|
|
||||||||||||
Oil/Condensate – Barrels
|
|
3,522,704
|
|
|
4,234,556
|
|
|
121,196
|
|
|
7,878,456
|
|
||||||||
Plant Products – Barrels
|
|
1,187,366
|
|
|
830,515
|
|
|
0
|
|
|
2,017,881
|
|
||||||||
Gas – MMCF
|
|
38,073
|
|
|
36,949
|
|
|
9,203
|
|
|
84,225
|
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||||||
Income Data
|
|
|
|
|
|
|
|
|
||||||||||||
Future Gross Revenue
|
|
|
$533,778,669
|
|
|
|
$592,865,851
|
|
|
$
|
48,884,369
|
|
|
|
$1,175,528,889
|
|
||||
Deductions
|
|
412,488,605
|
|
|
272,370,061
|
|
|
40,024,980
|
|
|
724,883,646
|
|
||||||||
Future Net Income (FNI)
|
|
$
|
121,290,064
|
|
|
|
$320,495,790
|
|
|
$
|
8,859,389
|
|
|
$
|
450,645,243
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||||||
Discounted FNI @ 10%
|
|
$
|
128,798,179
|
|
|
|
$237,098,354
|
|
|
$
|
1,951,173
|
|
|
$
|
367,847,706
|
|
|
|
Probable
|
||||||||||||||
|
|
Developed
|
|
|
|
Total
|
||||||||||
|
|
Producing
|
|
Non-Producing
|
|
Undeveloped
|
|
Probable
|
||||||||
Net Remaining Reserves
|
|
|
|
|
|
|
|
|
||||||||
Oil/Condensate – Barrels
|
|
156,684
|
|
|
1,349,434
|
|
|
1,162,301
|
|
|
2,668,419
|
|
||||
Plant Products – Barrels
|
|
98,978
|
|
|
324,050
|
|
|
640,093
|
|
|
1,063,121
|
|
||||
Gas – MMCF
|
|
3,006
|
|
|
11,455
|
|
|
33,778
|
|
|
48,239
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Income Data
|
|
|
|
|
|
|
|
|
||||||||
Future Gross Revenue
|
|
|
$31,657,900
|
|
|
|
$188,167,526
|
|
|
|
$270,712,804
|
|
|
|
$490,538,230
|
|
Deductions
|
|
9,742,275
|
|
|
23,694,745
|
|
|
182,621,155
|
|
|
216,058,175
|
|
||||
Future Net Income (FNI)
|
|
|
$21,915,625
|
|
|
|
$164,472,781
|
|
|
$
|
88,091,649
|
|
|
|
$274,480,055
|
|
|
|
|
|
|
|
|
|
|
||||||||
Discounted FNI @ 10%
|
|
|
$17,264,796
|
|
|
$
|
80,778,752
|
|
|
$
|
21,407,677
|
|
|
|
$119,451,225
|
|
|
|
Discounted Future Net Income
|
||
|
|
As of December 31, 2014
|
||
Discount Rate
|
|
Total
|
|
Total
|
Percent
|
|
Proved
|
|
Probable
|
|
|
|
|
|
8
|
|
$382,429,989
|
|
$140,212,080
|
15
|
|
$335,112,507
|
|
$80,461,263
|
20
|
|
$307,005,494
|
|
$54,062,681
|
25
|
|
$282,754,386
|
|
$35,655,363
|
Geographic
Area
|
Product
|
Price
Reference
|
Avg
Benchmark
Prices
|
Avg
Proved
Realized
Prices
|
Avg
Probable
Realized
Prices
|
United
States
|
Oil/Condensate
|
WTI Cushing
|
$94.99/Bbl
|
$93.54/Bbl
|
$92.01/Bbl
|
NGLs
|
WTI Cushing
|
$94.99/Bbl
|
$35.83/Bbl
|
$35.51/Bbl
|
|
Gas
|
Henry Hub
|
$4.35/MMBTU
|
$4.43/MCF
|
$4.38/MCF
|
(1)
|
completion intervals which are open at the time of the estimate, but which have not started producing;
|
(2)
|
wells which were shut-in for market conditions or pipeline connections; or
|
(3)
|
wells not capable of production for mechanical reasons.
|
(i)
|
Reserves on undrilled acreage shall be limited to those directly offsetting development spacing areas that are reasonably certain of production when drilled, unless evidence using reliable technology exists that establishes reasonable certainty of economic producibility at greater distances.
|