UNITED STATES
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SECURITIES AND EXCHANGE COMMISSION
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Washington, D.C. 20549
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FORM 10-Q
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(Mark One)
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[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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For the quarterly period ended June 30, 2015
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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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Delaware
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74-2480931
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(State or other jurisdiction of
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(I.R.S. Employer Identification No.)
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incorporation or organization)
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333 North Central Avenue
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Phoenix, AZ
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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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Page
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Part I.
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FINANCIAL INFORMATION
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Item 1.
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Financial Statements
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June 30,
2015 |
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December 31,
2014 |
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(In millions)
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||||||
ASSETS
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Current assets:
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||||
Cash and cash equivalents
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$
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466
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$
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464
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Trade accounts receivable
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949
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953
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Other accounts receivable
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1,323
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1,610
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Inventories:
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Materials and supplies, net
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2,014
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1,886
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Mill and leach stockpiles
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1,933
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1,914
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Product
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1,484
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1,561
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Other current assets
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528
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657
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Total current assets
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8,697
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9,045
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Property, plant, equipment and mining development costs, net
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27,095
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26,220
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Oil and gas properties, net - full cost method
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Subject to amortization, less accumulated amortization
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4,649
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9,187
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Not subject to amortization
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9,312
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10,087
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Long-term mill and leach stockpiles
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2,277
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2,179
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Other assets
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1,978
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1,956
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Total assets
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$
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54,008
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$
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58,674
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LIABILITIES AND EQUITY
|
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Current liabilities:
|
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Accounts payable and accrued liabilities
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$
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3,376
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$
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3,653
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Current portion of debt
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791
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478
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Current portion of environmental and asset retirement obligations
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330
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296
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Dividends payable
|
175
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335
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Accrued income taxes
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67
|
|
|
410
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Total current liabilities
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4,739
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5,172
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Long-term debt, less current portion
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20,111
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18,371
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||
Deferred income taxes
|
4,870
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6,398
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Environmental and asset retirement obligations, less current portion
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3,716
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3,647
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Other liabilities
|
1,760
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1,861
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Total liabilities
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35,196
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35,449
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Redeemable noncontrolling interest
|
757
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751
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Equity:
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Stockholders’ equity:
|
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Common stock
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117
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117
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Capital in excess of par value
|
22,330
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22,281
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(Accumulated deficit) retained earnings
|
(4,417
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)
|
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128
|
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||
Accumulated other comprehensive loss
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(523
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)
|
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(544
|
)
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||
Common stock held in treasury
|
(3,702
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)
|
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(3,695
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)
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||
Total stockholders’ equity
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13,805
|
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18,287
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Noncontrolling interests
|
4,250
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4,187
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Total equity
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18,055
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22,474
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Total liabilities and equity
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$
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54,008
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$
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58,674
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Three Months Ended
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Six Months Ended
|
||||||||||||
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June 30,
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June 30,
|
||||||||||||
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2015
|
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2014
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2015
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2014
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(In millions, except per share amounts)
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Revenues
|
$
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4,248
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$
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5,522
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$
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8,401
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$
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10,507
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Cost of sales:
|
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Production and delivery
|
2,848
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3,082
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5,760
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5,819
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Depreciation, depletion and amortization
|
890
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1,013
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1,829
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1,979
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|
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Impairment of oil and gas properties
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2,686
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—
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5,790
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—
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Total cost of sales
|
6,424
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4,095
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13,379
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7,798
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Selling, general and administrative expenses
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151
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164
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305
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299
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Mining exploration and research expenses
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36
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34
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69
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64
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Environmental obligations and shutdown costs
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11
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76
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24
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82
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Net gain on sale of assets
|
—
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—
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(39
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)
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—
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Total costs and expenses
|
6,622
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4,369
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13,738
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8,243
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Operating (loss) income
|
(2,374
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)
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1,153
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(5,337
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)
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2,264
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Interest expense, net
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(149
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)
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(164
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)
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(295
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)
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(325
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)
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Insurance and other third-party recoveries
|
92
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—
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92
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—
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Net gain on early extinguishment of debt
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—
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5
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—
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5
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|
||||
Other (expense) income, net
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(55
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)
|
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(8
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)
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(48
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)
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25
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|
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(Loss) income before income taxes and equity in affiliated companies' net earnings
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(2,486
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)
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986
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(5,588
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)
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|
1,969
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|
||||
Benefit from (provision for) income taxes
|
687
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|
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(328
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)
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1,382
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(685
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)
|
||||
Equity in affiliated companies’ net earnings
|
—
|
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|
2
|
|
|
1
|
|
|
2
|
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||||
Net (loss) income
|
(1,799
|
)
|
|
660
|
|
|
(4,205
|
)
|
|
1,286
|
|
||||
Net income attributable to noncontrolling interests
|
(42
|
)
|
|
(168
|
)
|
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(100
|
)
|
|
(274
|
)
|
||||
Preferred dividends attributable to redeemable noncontrolling interest
|
(10
|
)
|
|
(10
|
)
|
|
(20
|
)
|
|
(20
|
)
|
||||
Net (loss) income attributable to common stockholders
|
$
|
(1,851
|
)
|
|
$
|
482
|
|
|
$
|
(4,325
|
)
|
|
$
|
992
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|
|
|
|
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||||||||
Net (loss) income per share attributable to common stockholders:
|
|
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Basic
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$
|
(1.78
|
)
|
|
$
|
0.46
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|
$
|
(4.16
|
)
|
|
$
|
0.95
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Diluted
|
$
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(1.78
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)
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$
|
0.46
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$
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(4.16
|
)
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$
|
0.95
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|
|
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Weighted-average common shares outstanding:
|
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|
|
|
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||||||||
Basic
|
1,040
|
|
|
1,039
|
|
|
1,040
|
|
|
1,039
|
|
||||
Diluted
|
1,040
|
|
|
1,045
|
|
|
1,040
|
|
|
1,045
|
|
||||
|
|
|
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|
|
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||||||||
Dividends declared per share of common stock
|
$
|
0.1605
|
|
|
$
|
0.3125
|
|
|
$
|
0.2105
|
|
|
$
|
0.6250
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
|
June 30,
|
|
June 30,
|
||||||||||||
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||
|
|
(In millions)
|
||||||||||||||
Net (loss) income
|
|
$
|
(1,799
|
)
|
|
$
|
660
|
|
|
$
|
(4,205
|
)
|
|
$
|
1,286
|
|
|
|
|
|
|
|
|
|
|
||||||||
Other comprehensive income, net of taxes:
|
|
|
|
|
|
|
|
|
||||||||
Defined benefit plans:
|
|
|
|
|
|
|
|
|
||||||||
Amortization of unrecognized amounts included in net periodic benefit costs
|
|
8
|
|
|
4
|
|
|
16
|
|
|
7
|
|
||||
Foreign exchange gains (losses)
|
|
1
|
|
|
(3
|
)
|
|
5
|
|
|
(3
|
)
|
||||
Other comprehensive income
|
|
9
|
|
|
1
|
|
|
21
|
|
|
4
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Total comprehensive (loss) income
|
|
(1,790
|
)
|
|
661
|
|
|
(4,184
|
)
|
|
1,290
|
|
||||
Total comprehensive income attributable to noncontrolling interests
|
|
(42
|
)
|
|
(168
|
)
|
|
(100
|
)
|
|
(274
|
)
|
||||
Preferred dividends attributable to redeemable noncontrolling interest
|
|
(10
|
)
|
|
(10
|
)
|
|
(20
|
)
|
|
(20
|
)
|
||||
Total comprehensive (loss) income attributable to common stockholders
|
|
$
|
(1,842
|
)
|
|
$
|
483
|
|
|
$
|
(4,304
|
)
|
|
$
|
996
|
|
|
Six Months Ended
|
|
||||||
|
June 30,
|
|
||||||
|
2015
|
|
2014
|
|
||||
|
(In millions)
|
|
||||||
Cash flow from operating activities:
|
|
|
|
|
||||
Net (loss) income
|
$
|
(4,205
|
)
|
|
$
|
1,286
|
|
|
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
|
|
|
|
|
||||
Depreciation, depletion and amortization
|
1,829
|
|
|
1,979
|
|
|
||
Impairment of oil and gas properties
|
5,790
|
|
|
—
|
|
|
||
Lower of cost or market inventory adjustments
|
63
|
|
|
—
|
|
|
||
Net gain on sale of assets
|
(39
|
)
|
|
—
|
|
|
||
Net (gains) losses on crude oil and natural gas derivative contracts
|
(58
|
)
|
|
120
|
|
|
||
Net charges for environmental and asset retirement obligations, including accretion
|
109
|
|
|
97
|
|
|
||
Payments for environmental and asset retirement obligations
|
(81
|
)
|
|
(96
|
)
|
|
||
Net gain on early extinguishment of debt
|
—
|
|
|
(5
|
)
|
|
||
Deferred income taxes
|
(1,432
|
)
|
|
37
|
|
|
||
Increase in long-term mill and leach stockpiles
|
(104
|
)
|
|
(131
|
)
|
|
||
Other, net
|
104
|
|
|
77
|
|
|
||
Changes in working capital and other tax payments, excluding amounts from acquisitions and disposition:
|
|
|
|
|
||||
Accounts receivable
|
493
|
|
|
(243
|
)
|
|
||
Inventories
|
8
|
|
|
(230
|
)
|
|
||
Other current assets
|
(1
|
)
|
|
35
|
|
|
||
Accounts payable and accrued liabilities
|
(205
|
)
|
|
(186
|
)
|
|
||
Accrued income taxes and changes in other tax payments
|
(485
|
)
|
|
(153
|
)
|
|
||
Net cash provided by operating activities
|
1,786
|
|
|
2,587
|
|
|
||
|
|
|
|
|
||||
Cash flow from investing activities:
|
|
|
|
|
||||
Capital expenditures:
|
|
|
|
|
||||
North America copper mines
|
(214
|
)
|
|
(627
|
)
|
|
||
South America
|
(902
|
)
|
|
(839
|
)
|
|
||
Indonesia
|
(438
|
)
|
|
(479
|
)
|
|
||
Africa
|
(97
|
)
|
|
(60
|
)
|
|
||
Molybdenum mines
|
(7
|
)
|
|
(33
|
)
|
|
||
United States oil and gas operations
|
(1,795
|
)
|
|
(1,484
|
)
|
|
||
Other
|
(75
|
)
|
|
(40
|
)
|
|
||
Acquisition of Deepwater Gulf of Mexico interests
|
—
|
|
|
(925
|
)
|
|
||
Net proceeds from sale of Eagle Ford shale assets
|
—
|
|
|
3,009
|
|
|
||
Other, net
|
136
|
|
|
(363
|
)
|
|
||
Net cash used in investing activities
|
(3,392
|
)
|
|
(1,841
|
)
|
|
||
|
|
|
|
|
||||
Cash flow from financing activities:
|
|
|
|
|
||||
Proceeds from debt
|
4,422
|
|
|
1,248
|
|
|
||
Repayments of debt
|
(2,360
|
)
|
|
(1,611
|
)
|
|
||
Cash dividends and distributions paid:
|
|
|
|
|
||||
Common stock
|
(380
|
)
|
|
(653
|
)
|
|
||
Noncontrolling interests
|
(60
|
)
|
|
(250
|
)
|
|
||
Stock-based awards net (payments) proceeds, including excess tax benefit
|
(7
|
)
|
|
3
|
|
|
||
Debt financing costs and other, net
|
(7
|
)
|
|
(10
|
)
|
|
||
Net cash provided by (used in) financing activities
|
1,608
|
|
|
(1,273
|
)
|
|
||
|
|
|
|
|
||||
Net increase (decrease) in cash and cash equivalents
|
2
|
|
|
(527
|
)
|
|
||
Cash and cash equivalents at beginning of year
|
464
|
|
|
1,985
|
|
|
||
Cash and cash equivalents at end of period
|
$
|
466
|
|
|
$
|
1,458
|
|
|
|
Stockholders’ Equity
|
|
|
|
|
||||||||||||||||||||||||||||||||
|
Common Stock
|
|
|
|
Retained
Earnings(Accum-ulated Deficit) |
|
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
|
|||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||
|
(In millions)
|
||||||||||||||||||||||||||||||||||||
Balance at December 31, 2014
|
1,167
|
|
|
$
|
117
|
|
|
$
|
22,281
|
|
|
$
|
128
|
|
|
$
|
(544
|
)
|
|
128
|
|
|
$
|
(3,695
|
)
|
|
$
|
18,287
|
|
|
$
|
4,187
|
|
|
$
|
22,474
|
|
Exercised and issued stock-based awards
|
1
|
|
|
—
|
|
|
3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3
|
|
|
—
|
|
|
3
|
|
||||||||
Stock-based compensation
|
—
|
|
|
—
|
|
|
50
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
50
|
|
|
7
|
|
|
57
|
|
||||||||
Reserve of tax benefit for stock-based awards
|
—
|
|
|
—
|
|
|
(2
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2
|
)
|
|
—
|
|
|
(2
|
)
|
||||||||
Tender of shares for stock-based awards
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(7
|
)
|
|
(7
|
)
|
|
—
|
|
|
(7
|
)
|
||||||||
Dividends on common stock
|
—
|
|
|
—
|
|
|
—
|
|
|
(220
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(220
|
)
|
|
—
|
|
|
(220
|
)
|
||||||||
Dividends to noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(46
|
)
|
|
(46
|
)
|
||||||||
Noncontrolling interests' share of contributed capital in subsidiary
|
—
|
|
|
—
|
|
|
(2
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2
|
)
|
|
2
|
|
|
—
|
|
||||||||
Net loss attributable to common stockholders
|
—
|
|
|
—
|
|
|
—
|
|
|
(4,325
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(4,325
|
)
|
|
—
|
|
|
(4,325
|
)
|
||||||||
Net income attributable to noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
100
|
|
|
100
|
|
||||||||
Other comprehensive income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
21
|
|
|
—
|
|
|
—
|
|
|
21
|
|
|
—
|
|
|
21
|
|
||||||||
Balance at June 30, 2015
|
1,168
|
|
|
$
|
117
|
|
|
$
|
22,330
|
|
|
$
|
(4,417
|
)
|
|
$
|
(523
|
)
|
|
128
|
|
|
$
|
(3,702
|
)
|
|
$
|
13,805
|
|
|
$
|
4,250
|
|
|
$
|
18,055
|
|
•
|
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).
|
|
Three Months Ended
|
|
Six Months Ended
|
|
||||||||||||
|
June 30,
|
|
June 30,
|
|
||||||||||||
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
||||||||
Net (loss) income
|
$
|
(1,799
|
)
|
|
$
|
660
|
|
|
$
|
(4,205
|
)
|
|
$
|
1,286
|
|
|
Net income attributable to noncontrolling interests
|
(42
|
)
|
|
(168
|
)
|
|
(100
|
)
|
|
(274
|
)
|
|
||||
Preferred dividends on redeemable noncontrolling interest
|
(10
|
)
|
|
(10
|
)
|
|
(20
|
)
|
|
(20
|
)
|
|
||||
Undistributed earnings allocable to participating securities
|
(3
|
)
|
|
(2
|
)
|
|
(3
|
)
|
|
(3
|
)
|
|
||||
Net (loss) income allocable to common stockholders
|
$
|
(1,854
|
)
|
|
$
|
480
|
|
|
$
|
(4,328
|
)
|
|
$
|
989
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Basic weighted-average shares of common stock outstanding
|
1,040
|
|
|
1,039
|
|
|
1,040
|
|
|
1,039
|
|
|
||||
Add shares issuable upon exercise or vesting of dilutive stock options and RSUs
|
—
|
|
a
|
6
|
|
a
|
—
|
|
a
|
6
|
|
a
|
||||
Diluted weighted-average shares of common stock outstanding
|
1,040
|
|
|
1,045
|
|
|
1,040
|
|
|
1,045
|
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Basic net (loss) income per share attributable to common stockholders
|
$
|
(1.78
|
)
|
|
$
|
0.46
|
|
|
$
|
(4.16
|
)
|
|
$
|
0.95
|
|
|
Diluted net (loss) income per share attributable to common stockholders
|
$
|
(1.78
|
)
|
|
$
|
0.46
|
|
|
$
|
(4.16
|
)
|
|
$
|
0.95
|
|
|
a.
|
Excludes approximately
four million
shares of common stock for both the quarter and
six
months ended
June 30, 2015
, and
three million
shares of common stock for both the quarter and
six
months ended
June 30, 2014
, 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.
|
|
June 30,
2015 |
|
December 31, 2014
|
|
||||
Current inventories:
|
|
|
|
|
||||
Mill stockpiles
|
$
|
130
|
|
|
$
|
86
|
|
|
Leach stockpiles
|
1,803
|
|
|
1,828
|
|
|
||
Total current mill and leach stockpiles
|
$
|
1,933
|
|
|
$
|
1,914
|
|
|
|
|
|
|
|
||||
Total materials and supplies, net
a
|
$
|
2,014
|
|
|
$
|
1,886
|
|
|
|
|
|
|
|
||||
Raw materials (primarily concentrates)
|
$
|
306
|
|
|
$
|
288
|
|
|
Work-in-process
|
155
|
|
|
174
|
|
|
||
Finished goods
|
1,023
|
|
|
1,099
|
|
|
||
Total product inventories
|
$
|
1,484
|
|
|
$
|
1,561
|
|
|
|
|
|
|
|
||||
Long-term inventories:
|
|
|
|
|
||||
Mill stockpiles
|
$
|
361
|
|
|
$
|
360
|
|
|
Leach stockpiles
|
1,916
|
|
|
1,819
|
|
|
||
Total long-term mill and leach stockpiles
b
|
$
|
2,277
|
|
|
$
|
2,179
|
|
|
a.
|
Materials and supplies inventory was net of obsolescence reserves totaling
$25 million
at
June 30, 2015
, and
$20 million
at
December 31, 2014
.
|
b.
|
Estimated metals in stockpiles not expected to be recovered within the next 12 months.
|
|
Three Months Ended
|
|
Six Months Ended
|
|
||||||||||||
|
June 30,
|
|
June 30,
|
|
||||||||||||
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
||||||||
U.S. operations
|
$
|
(829
|
)
|
a
|
$
|
149
|
|
b
|
$
|
(1,664
|
)
|
a
|
$
|
285
|
|
b
|
International operations
|
142
|
|
|
179
|
|
|
282
|
|
|
400
|
|
|
||||
Total
|
$
|
(687
|
)
|
|
$
|
328
|
|
|
$
|
(1,382
|
)
|
|
$
|
685
|
|
|
a.
|
As a result of the impairment to oil and gas properties, FCX recorded tax charges of
$305 million
for
second-quarter
2015
and
$763 million
for
the first six months
of
2015
to establish a valuation allowance primarily against U.S. federal alternative minimum tax credits. Excluding this charge, FCX's consolidated effective income tax rate was
38 percent
for the first
six
months of 2015.
|
b.
|
FCX recognized a
$58 million
charge for deferred taxes recorded in connection with the allocation of goodwill to the sale of Eagle Ford shale assets.
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
June 30,
|
|
June 30,
|
||||||||||||
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||
Copper futures and swap contracts:
|
|
|
|
|
|
|
|
||||||||
Unrealized gains (losses):
|
|
|
|
|
|
|
|
||||||||
Derivative financial instruments
|
$
|
(4
|
)
|
|
$
|
12
|
|
|
$
|
2
|
|
|
$
|
—
|
|
Hedged item – firm sales commitments
|
4
|
|
|
(12
|
)
|
|
(2
|
)
|
|
—
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Realized (losses) gains:
|
|
|
|
|
|
|
|
||||||||
Matured derivative financial instruments
|
(1
|
)
|
|
(2
|
)
|
|
(11
|
)
|
|
(4
|
)
|
|
Open Positions
|
|
Average Price
Per Unit
|
|
Maturities Through
|
|||||||
|
|
Contract
|
|
Market
|
|
|||||||
Embedded derivatives in provisional sales contracts:
|
|
|
|
|
|
|
|
|||||
Copper (millions of pounds)
|
572
|
|
|
$
|
2.68
|
|
|
$
|
2.58
|
|
|
November 2015
|
Gold (thousands of ounces)
|
229
|
|
|
1,189
|
|
|
1,174
|
|
|
September 2015
|
||
Embedded derivatives in provisional purchase contracts:
|
|
|
|
|
|
|
|
|||||
Copper (millions of pounds)
|
134
|
|
|
2.75
|
|
|
2.61
|
|
|
October 2015
|
|
|
|
|
Daily Volumes (thousand barrels)
|
|
Average Strike Price (per barrel)
a
|
|
Weighted-Average Deferred Premium
(per barrel)
|
|
|
|||||||||
2015 Period
|
|
Instrument Type
|
|
|
Floor
|
|
Floor Limit
|
|
|
Index
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
July - December
|
|
Put options
b
|
|
84
|
|
|
$
|
90
|
|
|
$
|
70
|
|
|
$
|
6.89
|
|
|
Brent
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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.
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
June 30,
|
|
June 30,
|
||||||||||||
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||
Embedded derivatives in provisional copper and gold
|
|
|
|
|
|
|
|
||||||||
sales contracts
a
|
$
|
(78
|
)
|
|
$
|
84
|
|
|
$
|
(150
|
)
|
|
$
|
(85
|
)
|
Crude oil options
a
|
6
|
|
|
(68
|
)
|
|
58
|
|
|
(104
|
)
|
||||
Natural gas swaps
a
|
—
|
|
|
(2
|
)
|
|
—
|
|
|
(16
|
)
|
||||
Copper forward contracts
b
|
(6
|
)
|
|
4
|
|
|
(7
|
)
|
|
5
|
|
a.
|
Amounts recorded in revenues.
|
b.
|
Amounts recorded in cost of sales as production and delivery costs.
|
|
|
June 30,
2015 |
|
December 31, 2014
|
||||
Commodity Derivative Assets:
|
|
|
|
|
||||
Derivatives not designated as hedging instruments:
|
|
|
|
|
||||
Embedded derivatives in provisional copper and gold
|
|
|
|
|
||||
sales/purchase contracts
|
|
$
|
21
|
|
|
$
|
15
|
|
Crude oil options
a
|
|
174
|
|
|
316
|
|
||
Total derivative assets
|
|
$
|
195
|
|
|
$
|
331
|
|
|
|
|
|
|
||||
Commodity Derivative Liabilities:
|
|
|
|
|
||||
Derivatives designated as hedging instruments:
|
|
|
|
|
||||
Copper futures and swap contracts
b
|
|
$
|
5
|
|
|
$
|
7
|
|
Derivatives not designated as hedging instruments:
|
|
|
|
|
||||
Embedded derivatives in provisional copper and gold
|
|
|
|
|
||||
sales/purchase contracts
|
|
65
|
|
|
93
|
|
||
Copper forward contracts
|
|
1
|
|
|
—
|
|
||
Total derivative liabilities
|
|
$
|
71
|
|
|
$
|
100
|
|
a.
|
Amounts are net of
$106 million
at
June 30, 2015
, and
$210 million
at
December 31, 2014
, for deferred premiums and accrued interest.
|
b.
|
FCX paid
$9 million
to brokers at
June 30, 2015
, and
$10 million
at
December 31, 2014
, for margin requirements (recorded in other current assets).
|
|
|
Assets
|
|
Liabilities
|
||||||||||||
|
|
June 30,
2015
|
|
December 31, 2014
|
|
June 30,
2015
|
|
December 31, 2014
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
Gross amounts recognized:
|
|
|
|
|
|
|
|
|
||||||||
Commodity contracts:
|
|
|
|
|
|
|
|
|
||||||||
Embedded derivatives in provisional
|
|
|
|
|
|
|
|
|
||||||||
sales/purchase contracts
|
|
$
|
21
|
|
|
$
|
15
|
|
|
$
|
65
|
|
|
$
|
93
|
|
Crude oil derivatives
|
|
174
|
|
|
316
|
|
|
—
|
|
|
—
|
|
||||
Copper derivatives
|
|
—
|
|
|
—
|
|
|
6
|
|
|
7
|
|
||||
|
|
195
|
|
|
331
|
|
|
71
|
|
|
100
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Less gross amounts of offset:
|
|
|
|
|
|
|
|
|
||||||||
Commodity contracts:
|
|
|
|
|
|
|
|
|
||||||||
Embedded derivatives in provisional
|
|
|
|
|
|
|
|
|
||||||||
sales/purchase contracts
|
|
1
|
|
|
1
|
|
|
1
|
|
|
1
|
|
||||
Copper derivatives
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
|
|
1
|
|
|
1
|
|
|
1
|
|
|
1
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Net amounts presented in balance sheet:
|
|
|
|
|
|
|
|
|
||||||||
Commodity contracts:
|
|
|
|
|
|
|
|
|
||||||||
Embedded derivatives in provisional
|
|
|
|
|
|
|
|
|
||||||||
sales/purchase contracts
|
|
20
|
|
|
14
|
|
|
64
|
|
|
92
|
|
||||
Crude oil derivatives
|
|
174
|
|
|
316
|
|
|
—
|
|
|
—
|
|
||||
Copper derivatives
|
|
—
|
|
|
—
|
|
|
6
|
|
|
7
|
|
||||
|
|
$
|
194
|
|
|
$
|
330
|
|
|
$
|
70
|
|
|
$
|
99
|
|
|
|
|
|
|
|
|
|
|
||||||||
Balance sheet classification:
|
|
|
|
|
|
|
|
|
||||||||
Trade accounts receivable
|
|
$
|
3
|
|
|
$
|
5
|
|
|
$
|
53
|
|
|
$
|
56
|
|
Other current assets
|
|
174
|
|
|
316
|
|
|
—
|
|
|
—
|
|
||||
Accounts payable and accrued liabilities
|
|
17
|
|
|
9
|
|
|
17
|
|
|
43
|
|
||||
|
|
$
|
194
|
|
|
$
|
330
|
|
|
$
|
70
|
|
|
$
|
99
|
|
|
At June 30, 2015
|
||||||||||||||||||
|
Carrying
|
|
Fair Value
|
||||||||||||||||
|
Amount
|
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
||||||||||
Investment securities:
a,b
|
|
|
|
|
|
|
|
|
|
||||||||||
U.S. core fixed income fund
|
$
|
23
|
|
|
$
|
23
|
|
|
$
|
—
|
|
|
$
|
23
|
|
|
$
|
—
|
|
Money market funds
|
22
|
|
|
22
|
|
|
22
|
|
|
—
|
|
|
—
|
|
|||||
Equity securities
|
3
|
|
|
3
|
|
|
3
|
|
|
—
|
|
|
—
|
|
|||||
Total
|
48
|
|
|
48
|
|
|
25
|
|
|
23
|
|
|
—
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Legally restricted funds:
a,b,c,d
|
|
|
|
|
|
|
|
|
|
||||||||||
U.S. core fixed income fund
|
51
|
|
|
51
|
|
|
—
|
|
|
51
|
|
|
—
|
|
|||||
Government bonds and notes
|
35
|
|
|
35
|
|
|
—
|
|
|
35
|
|
|
—
|
|
|||||
Corporate bonds
|
28
|
|
|
28
|
|
|
—
|
|
|
28
|
|
|
—
|
|
|||||
Government mortgage-backed securities
|
24
|
|
|
24
|
|
|
—
|
|
|
24
|
|
|
—
|
|
|||||
Asset-backed securities
|
14
|
|
|
14
|
|
|
—
|
|
|
14
|
|
|
—
|
|
|||||
Money market funds
|
9
|
|
|
9
|
|
|
9
|
|
|
—
|
|
|
—
|
|
|||||
Collateralized mortgage-backed securities
|
8
|
|
|
8
|
|
|
—
|
|
|
8
|
|
|
—
|
|
|||||
Municipal bonds
|
1
|
|
|
1
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|||||
Total
|
170
|
|
|
170
|
|
|
9
|
|
|
161
|
|
|
—
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Derivatives:
a,e
|
|
|
|
|
|
|
|
|
|
||||||||||
Embedded derivatives in provisional sales/purchase
|
|
|
|
|
|
|
|
|
|
||||||||||
contracts in a gross asset position
|
21
|
|
|
21
|
|
|
—
|
|
|
21
|
|
|
—
|
|
|||||
Crude oil options
|
174
|
|
|
174
|
|
|
—
|
|
|
—
|
|
|
174
|
|
|||||
Total
|
195
|
|
|
195
|
|
|
—
|
|
|
21
|
|
|
174
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Total assets
|
|
|
$
|
413
|
|
|
$
|
34
|
|
|
$
|
205
|
|
|
$
|
174
|
|
||
|
|
|
|
|
|
|
|
|
|
||||||||||
Liabilities
|
|
|
|
|
|
|
|
|
|
||||||||||
Derivatives:
a,e
|
|
|
|
|
|
|
|
|
|
||||||||||
Embedded derivatives in provisional sales/purchase
|
|
|
|
|
|
|
|
|
|
||||||||||
contracts in a gross liability position
|
$
|
65
|
|
|
$
|
65
|
|
|
$
|
—
|
|
|
$
|
65
|
|
|
$
|
—
|
|
Copper futures and swap contracts
|
5
|
|
|
5
|
|
|
5
|
|
|
—
|
|
|
—
|
|
|||||
Copper forward contracts
|
1
|
|
|
1
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|||||
Total
|
71
|
|
|
71
|
|
|
5
|
|
|
66
|
|
|
—
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Long-term debt, including current portion
f
|
20,902
|
|
|
20,191
|
|
|
—
|
|
|
20,191
|
|
|
—
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Total liabilities
|
|
|
$
|
20,262
|
|
|
$
|
5
|
|
|
$
|
20,257
|
|
|
$
|
—
|
|
|
At December 31, 2014
|
||||||||||||||||||
|
Carrying
|
|
Fair Value
|
||||||||||||||||
|
Amount
|
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
||||||||||
Investment securities:
a,b
|
|
|
|
|
|
|
|
|
|
||||||||||
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,c,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
|
19
|
|
|
19
|
|
|
—
|
|
|
19
|
|
|
—
|
|
|||||
Asset-backed securities
|
17
|
|
|
17
|
|
|
—
|
|
|
17
|
|
|
—
|
|
|||||
Money market funds
|
11
|
|
|
11
|
|
|
11
|
|
|
—
|
|
|
—
|
|
|||||
Collateralized mortgage-backed securities
|
6
|
|
|
6
|
|
|
—
|
|
|
6
|
|
|
—
|
|
|||||
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
|
18,849
|
|
|
18,735
|
|
|
—
|
|
|
18,735
|
|
|
—
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Total liabilities
|
|
|
$
|
18,835
|
|
|
$
|
6
|
|
|
$
|
18,829
|
|
|
$
|
—
|
|
a.
|
Recorded at fair value.
|
b.
|
Current portion included in other current assets and long-term portion included in other assets.
|
c.
|
Excludes time deposits (which approximated fair value) included in other assets of
$117 million
at
June 30, 2015
, and
$115 million
at
December 31, 2014
, associated with an assurance bond to support PT Freeport Indonesia's (PT-FI) commitment for smelter development in Indonesia.
|
d.
|
Excludes time deposits (which approximated fair value) included in other current assets of
$10 million
at
June 30, 2015
, and
$8 million
at
December 31, 2014
, associated with a reclamation guarantee at PT-FI. Also, excludes a time deposit of
$9 million
at
December 31, 2014
, associated with a customs audit assessment.
|
e.
|
Refer to Note
7
for further discussion and balance sheet classifications. Crude oil options are net of
$106 million
at
June 30, 2015
, and
$210 million
at
December 31, 2014
, for deferred premiums and accrued interest.
|
f.
|
Recorded at cost except for debt assumed in acquisitions, which were recorded at fair value at the respective acquisition dates.
|
|
Crude Oil
|
|
||
|
Options
|
|
||
Fair value at December 31, 2014
|
$
|
316
|
|
|
Net realized gains
|
21
|
|
|
|
Net unrealized gains included in earnings related to assets and liabilities
still held at the end of the period
|
36
|
|
a
|
|
Net settlement receipts
|
(199
|
)
|
b
|
|
Fair value at June 30, 2015
|
$
|
174
|
|
|
a.
|
Includes net unrealized gains of
$37 million
, partially offset by
$1 million
of interest expense associated with the deferred premiums.
|
b.
|
Includes interest payments of
$2 million
.
|
(In millions)
|
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
a
|
|
Total
|
|
Grasberg
|
|
Tenke
|
|
Mines
|
|
Refining
|
|
& Refining
|
|
nations
|
|
Mining
|
|
Operations
b
|
|
nations
|
|
Total
|
||||||||||||||||||||||||||||||||
Three Months Ended June 30, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||
Unaffiliated customers
|
$
|
180
|
|
|
$
|
92
|
|
|
$
|
272
|
|
|
$
|
195
|
|
|
$
|
221
|
|
|
$
|
416
|
|
|
$
|
792
|
|
c
|
$
|
310
|
|
|
$
|
—
|
|
|
$
|
1,089
|
|
|
$
|
495
|
|
|
$
|
305
|
|
d
|
$
|
3,679
|
|
|
$
|
569
|
|
e
|
$
|
—
|
|
|
$
|
4,248
|
|
Intersegment
|
427
|
|
|
706
|
|
|
1,133
|
|
|
37
|
|
|
—
|
|
|
37
|
|
|
(2
|
)
|
f
|
41
|
|
|
102
|
|
|
8
|
|
|
5
|
|
|
(1,324
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||||||||||
Production and delivery
|
386
|
|
|
576
|
|
g
|
962
|
|
|
165
|
|
|
150
|
|
|
315
|
|
|
455
|
|
|
190
|
|
|
84
|
|
g
|
1,088
|
|
|
468
|
|
|
(997
|
)
|
g
|
2,565
|
|
|
281
|
|
|
2
|
|
|
2,848
|
|
||||||||||||||||
Depreciation, depletion and amortization
|
55
|
|
|
84
|
|
|
139
|
|
|
40
|
|
|
32
|
|
|
72
|
|
|
78
|
|
|
57
|
|
|
25
|
|
|
3
|
|
|
9
|
|
|
19
|
|
|
402
|
|
|
485
|
|
|
3
|
|
|
890
|
|
||||||||||||||||
Impairment of oil and gas properties
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,686
|
|
|
—
|
|
|
2,686
|
|
||||||||||||||||
Selling, general and administrative expenses
|
—
|
|
|
2
|
|
|
2
|
|
|
—
|
|
|
1
|
|
|
1
|
|
|
25
|
|
|
3
|
|
|
—
|
|
|
—
|
|
|
4
|
|
|
5
|
|
|
40
|
|
|
49
|
|
|
62
|
|
|
151
|
|
||||||||||||||||
Mining exploration and research expenses
|
—
|
|
|
2
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
34
|
|
|
36
|
|
|
—
|
|
|
—
|
|
|
36
|
|
||||||||||||||||
Environmental obligations and shutdown costs
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
11
|
|
|
11
|
|
|
—
|
|
|
—
|
|
|
11
|
|
||||||||||||||||
Operating income (loss)
|
166
|
|
|
134
|
|
|
300
|
|
|
27
|
|
|
38
|
|
|
65
|
|
|
232
|
|
|
101
|
|
|
(7
|
)
|
|
6
|
|
|
19
|
|
|
(91
|
)
|
|
625
|
|
|
(2,932
|
)
|
|
(67
|
)
|
|
(2,374
|
)
|
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||
Interest expense, net
|
—
|
|
|
1
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
39
|
|
|
42
|
|
|
41
|
|
|
66
|
|
|
149
|
|
||||||||||||||||
Provision for (benefit from) income taxes
|
—
|
|
|
—
|
|
|
—
|
|
|
(5
|
)
|
|
11
|
|
|
6
|
|
|
95
|
|
|
27
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
128
|
|
|
—
|
|
|
(815
|
)
|
|
(687
|
)
|
||||||||||||||||
Total assets at June 30, 2015
|
3,806
|
|
|
5,582
|
|
|
9,388
|
|
|
8,567
|
|
|
1,935
|
|
|
10,502
|
|
|
8,959
|
|
|
5,125
|
|
|
2,052
|
|
|
286
|
|
|
786
|
|
|
1,336
|
|
|
38,434
|
|
|
15,393
|
|
|
181
|
|
|
54,008
|
|
||||||||||||||||
Capital expenditures
|
79
|
|
|
28
|
|
|
107
|
|
|
444
|
|
|
13
|
|
|
457
|
|
|
213
|
|
|
58
|
|
|
4
|
|
|
—
|
|
|
4
|
|
|
11
|
|
|
854
|
|
|
777
|
|
|
30
|
|
|
1,661
|
|
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||
Three Months Ended June 30, 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||
Unaffiliated customers
|
$
|
52
|
|
|
$
|
55
|
|
|
$
|
107
|
|
|
$
|
421
|
|
|
$
|
524
|
|
|
$
|
945
|
|
|
$
|
523
|
|
c
|
$
|
386
|
|
|
$
|
—
|
|
|
$
|
1,234
|
|
|
$
|
623
|
|
|
$
|
468
|
|
d
|
$
|
4,286
|
|
|
$
|
1,236
|
|
e
|
$
|
—
|
|
|
$
|
5,522
|
|
Intersegment
|
474
|
|
|
888
|
|
|
1,362
|
|
|
23
|
|
|
63
|
|
|
86
|
|
|
—
|
|
|
32
|
|
|
170
|
|
|
8
|
|
|
6
|
|
|
(1,664
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||||||||||
Production and delivery
|
312
|
|
|
558
|
|
|
870
|
|
|
195
|
|
|
335
|
|
|
530
|
|
|
511
|
|
|
198
|
|
|
81
|
|
|
1,233
|
|
|
618
|
|
|
(1,287
|
)
|
|
2,754
|
|
|
329
|
|
|
(1
|
)
|
|
3,082
|
|
||||||||||||||||
Depreciation, depletion and amortization
|
43
|
|
|
85
|
|
|
128
|
|
|
43
|
|
|
52
|
|
|
95
|
|
|
54
|
|
|
63
|
|
|
24
|
|
|
3
|
|
|
10
|
|
|
17
|
|
|
394
|
|
|
616
|
|
|
3
|
|
|
1,013
|
|
||||||||||||||||
Selling, general and administrative expenses
|
1
|
|
|
—
|
|
|
1
|
|
|
1
|
|
|
1
|
|
|
2
|
|
|
25
|
|
|
3
|
|
|
—
|
|
|
—
|
|
|
5
|
|
|
6
|
|
|
42
|
|
|
59
|
|
|
63
|
|
|
164
|
|
||||||||||||||||
Mining exploration and research expenses
|
—
|
|
|
2
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
32
|
|
|
34
|
|
|
—
|
|
|
—
|
|
|
34
|
|
||||||||||||||||
Environmental obligations and shutdown costs
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
76
|
|
|
76
|
|
|
—
|
|
|
—
|
|
|
76
|
|
||||||||||||||||
Operating income (loss)
|
170
|
|
|
298
|
|
|
468
|
|
|
205
|
|
|
199
|
|
|
404
|
|
|
(67
|
)
|
|
154
|
|
|
65
|
|
|
6
|
|
|
(4
|
)
|
|
(40
|
)
|
|
986
|
|
|
232
|
|
|
(65
|
)
|
|
1,153
|
|
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||
Interest expense, net
|
—
|
|
|
1
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3
|
|
|
18
|
|
|
22
|
|
|
74
|
|
|
68
|
|
|
164
|
|
||||||||||||||||
Provision for (benefit from) income taxes
|
—
|
|
|
—
|
|
|
—
|
|
|
73
|
|
|
67
|
|
|
140
|
|
|
(33
|
)
|
|
33
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
140
|
|
|
—
|
|
|
188
|
|
|
328
|
|
||||||||||||||||
Total assets at June 30, 2014
|
3,675
|
|
|
5,822
|
|
|
9,497
|
|
|
6,876
|
|
|
3,791
|
|
|
10,667
|
|
|
7,972
|
|
|
4,952
|
|
|
2,095
|
|
|
299
|
|
|
882
|
|
|
1,127
|
|
|
37,491
|
|
|
25,293
|
|
|
1,119
|
|
|
63,903
|
|
||||||||||||||||
Capital expenditures
|
289
|
|
|
35
|
|
|
324
|
|
|
391
|
|
|
25
|
|
|
416
|
|
|
243
|
|
|
29
|
|
|
14
|
|
|
1
|
|
|
5
|
|
|
17
|
|
|
1,049
|
|
|
903
|
|
|
(2
|
)
|
|
1,950
|
|
a.
|
Second-quarter 2014 includes the results of the Candelaria and Ojos del Salado mining operations, which were sold in November 2014.
|
b.
|
Second-quarter 2014 includes the results from Eagle Ford, which was sold in June 2014.
|
c.
|
Includes PT-FI’s sales to PT Smelting totaling
$293 million
in
second-quarter
2015
and
$540 million
in
second-quarter
2014
.
|
d.
|
Includes revenues from FCX's molybdenum sales company, which includes sales of molybdenum produced by the Molybdenum mines and by certain of the North and South America copper mines.
|
e.
|
Includes net mark-to-market gains (losses) associated with crude oil and natural gas derivative contracts totaling
$6 million
in
second-quarter
2015
and
$(70) million
in
second-quarter
2014
.
|
f.
|
Amounts include net reductions for provisional pricing adjustments to prior period open sales. There were no intersegment sales from Grasberg in second-quarter 2015.
|
g.
|
Includes LCM inventory adjustments totaling
$11 million
at other North America copper mines,
$3 million
at Molybdenum mines and
$45 million
at other mining & eliminations (see Note 4).
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||
(In millions)
|
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
a
|
|
Total
|
|
Grasberg
|
|
Tenke
|
|
Mines
|
|
Refining
|
|
& Refining
|
|
nations
|
|
Mining
|
|
Operations
b
|
|
nations
|
|
Total
|
||||||||||||||||||||||||||||||||
Six Months Ended June 30, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||
Unaffiliated customers
|
$
|
286
|
|
|
$
|
207
|
|
|
$
|
493
|
|
|
$
|
443
|
|
|
$
|
452
|
|
|
$
|
895
|
|
|
$
|
1,413
|
|
c
|
$
|
692
|
|
|
$
|
—
|
|
|
$
|
2,151
|
|
|
$
|
1,035
|
|
|
$
|
653
|
|
d
|
$
|
7,332
|
|
|
$
|
1,069
|
|
e
|
$
|
—
|
|
|
$
|
8,401
|
|
Intersegment
|
877
|
|
|
1,370
|
|
|
2,247
|
|
|
51
|
|
|
(7
|
)
|
f
|
44
|
|
|
(16
|
)
|
f
|
69
|
|
|
215
|
|
|
15
|
|
|
11
|
|
|
(2,585
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||||||||||
Production and delivery
|
760
|
|
|
1,145
|
|
g
|
1,905
|
|
|
363
|
|
|
297
|
|
|
660
|
|
|
894
|
|
|
425
|
|
|
167
|
|
g
|
2,151
|
|
|
987
|
|
|
(1,998
|
)
|
g
|
5,191
|
|
|
564
|
|
|
5
|
|
|
5,760
|
|
||||||||||||||||
Depreciation, depletion and amortization
|
106
|
|
|
166
|
|
|
272
|
|
|
77
|
|
|
70
|
|
|
147
|
|
|
148
|
|
|
130
|
|
|
51
|
|
|
5
|
|
|
19
|
|
|
35
|
|
|
807
|
|
|
1,015
|
|
|
7
|
|
|
1,829
|
|
||||||||||||||||
Impairment of oil and gas properties
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5,790
|
|
|
—
|
|
|
5,790
|
|
||||||||||||||||
Selling, general and administrative expenses
|
1
|
|
|
2
|
|
|
3
|
|
|
1
|
|
|
1
|
|
|
2
|
|
|
50
|
|
|
6
|
|
|
—
|
|
|
—
|
|
|
9
|
|
|
11
|
|
|
81
|
|
|
103
|
|
|
121
|
|
|
305
|
|
||||||||||||||||
Mining exploration and research expenses
|
—
|
|
|
5
|
|
|
5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
64
|
|
|
69
|
|
|
—
|
|
|
—
|
|
|
69
|
|
||||||||||||||||
Environmental obligations and shutdown costs
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
24
|
|
|
24
|
|
|
—
|
|
|
—
|
|
|
24
|
|
||||||||||||||||
Net gain on sales of assets
|
—
|
|
|
(39
|
)
|
|
(39
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(39
|
)
|
|
—
|
|
|
—
|
|
|
(39
|
)
|
||||||||||||||||
Operating income (loss)
|
296
|
|
|
298
|
|
|
594
|
|
|
53
|
|
|
77
|
|
|
130
|
|
|
305
|
|
|
200
|
|
|
(3
|
)
|
|
10
|
|
|
31
|
|
|
(68
|
)
|
|
1,199
|
|
|
(6,403
|
)
|
|
(133
|
)
|
|
(5,337
|
)
|
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||
Interest expense, net
|
1
|
|
|
1
|
|
|
2
|
|
|
1
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5
|
|
|
79
|
|
|
87
|
|
|
78
|
|
|
130
|
|
|
295
|
|
||||||||||||||||
Provision for (benefit from) income taxes
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
30
|
|
|
30
|
|
|
124
|
|
|
53
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
207
|
|
|
—
|
|
|
(1,589
|
)
|
|
(1,382
|
)
|
||||||||||||||||
Capital expenditures
|
163
|
|
|
51
|
|
|
214
|
|
|
875
|
|
|
27
|
|
|
902
|
|
|
438
|
|
|
97
|
|
|
7
|
|
|
1
|
|
|
8
|
|
|
27
|
|
|
1,694
|
|
|
1,795
|
|
|
39
|
|
|
3,528
|
|
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||
Six Months Ended June 30, 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||
Unaffiliated customers
|
$
|
75
|
|
|
$
|
116
|
|
|
$
|
191
|
|
|
$
|
701
|
|
|
$
|
946
|
|
|
$
|
1,647
|
|
|
$
|
985
|
|
c
|
$
|
692
|
|
|
$
|
—
|
|
|
$
|
2,380
|
|
|
$
|
1,211
|
|
|
$
|
904
|
|
d
|
$
|
8,010
|
|
|
$
|
2,497
|
|
e
|
$
|
—
|
|
|
$
|
10,507
|
|
Intersegment
|
918
|
|
|
1,646
|
|
|
2,564
|
|
|
87
|
|
|
195
|
|
|
282
|
|
|
8
|
|
|
53
|
|
|
296
|
|
|
16
|
|
|
11
|
|
|
(3,230
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||||||||||
Production and delivery
|
595
|
|
|
1,061
|
|
|
1,656
|
|
|
360
|
|
|
646
|
|
|
1,006
|
|
|
894
|
|
|
350
|
|
|
157
|
|
|
2,381
|
|
|
1,206
|
|
|
(2,470
|
)
|
|
5,180
|
|
|
640
|
|
|
(1
|
)
|
|
5,819
|
|
||||||||||||||||
Depreciation, depletion and amortization
|
77
|
|
|
158
|
|
|
235
|
|
|
79
|
|
|
103
|
|
|
182
|
|
|
102
|
|
|
114
|
|
|
46
|
|
|
5
|
|
|
20
|
|
|
36
|
|
|
740
|
|
|
1,232
|
|
|
7
|
|
|
1,979
|
|
||||||||||||||||
Selling, general and administrative expenses
|
1
|
|
|
1
|
|
|
2
|
|
|
2
|
|
|
2
|
|
|
4
|
|
|
46
|
|
|
6
|
|
|
—
|
|
|
—
|
|
|
9
|
|
|
13
|
|
|
80
|
|
|
116
|
|
|
103
|
|
|
299
|
|
||||||||||||||||
Mining exploration and research expenses
|
—
|
|
|
4
|
|
|
4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
60
|
|
|
64
|
|
|
—
|
|
|
—
|
|
|
64
|
|
||||||||||||||||
Environmental obligations and shutdown costs
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
82
|
|
|
82
|
|
|
—
|
|
|
—
|
|
|
82
|
|
||||||||||||||||
Operating income (loss)
|
320
|
|
|
538
|
|
|
858
|
|
|
347
|
|
|
390
|
|
|
737
|
|
|
(49
|
)
|
|
275
|
|
|
93
|
|
|
10
|
|
|
(13
|
)
|
|
(47
|
)
|
|
1,864
|
|
|
509
|
|
|
(109
|
)
|
|
2,264
|
|
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||
Interest expense, net
|
1
|
|
|
1
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
7
|
|
|
36
|
|
|
45
|
|
|
150
|
|
|
130
|
|
|
325
|
|
||||||||||||||||
Provision for (benefit from) income taxes
|
—
|
|
|
—
|
|
|
—
|
|
|
130
|
|
|
137
|
|
|
267
|
|
|
(15
|
)
|
|
57
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
309
|
|
|
—
|
|
|
376
|
|
|
685
|
|
||||||||||||||||
Capital expenditures
|
533
|
|
|
94
|
|
|
627
|
|
|
791
|
|
|
48
|
|
|
839
|
|
|
479
|
|
|
60
|
|
|
33
|
|
|
2
|
|
|
6
|
|
|
27
|
|
|
2,073
|
|
|
1,484
|
|
|
5
|
|
|
3,562
|
|
a.
|
The first six months of 2014 include the results of the Candelaria and Ojos del Salado mining operations, which were sold in November 2014.
|
b.
|
The first six months of 2014 include the results from Eagle Ford, which was sold in June 2014.
|
c.
|
Includes PT-FI’s sales to PT Smelting totaling
$643 million
for
the first six months
of
2015
and
$913 million
for
the first six months
of
2014
.
|
d.
|
Includes revenues from FCX's molybdenum sales company, which includes sales of molybdenum produced by the Molybdenum mines and by certain of the North and South America copper mines.
|
e.
|
Includes net mark-to-market gains (losses) associated with crude oil and natural gas derivative contracts totaling
$58 million
for
the first six months
2015
and
$(120) million
for
the first six months
of
2014
.
|
f.
|
Amounts include net reductions for provisional pricing adjustments to prior period open sales. There were no intersegment sales from El Abra or Grasberg for the first six months of 2015.
|
g.
|
Includes LCM inventory adjustments totaling
$11 million
at other North America copper mines,
$3 million
at Molybdenum mines and
$49 million
at other mining & eliminations (see Note 4).
|
|
FCX
|
|
FM O&G LLC
|
|
Non-guarantor
|
|
|
|
Consolidated
|
||||||||||
|
Issuer
|
|
Guarantor
|
|
Subsidiaries
|
|
Eliminations
|
|
FCX
|
||||||||||
ASSETS
|
|
|
|
|
|
|
|
|
|
||||||||||
Current assets
|
$
|
257
|
|
|
$
|
2,900
|
|
|
$
|
9,665
|
|
|
$
|
(4,125
|
)
|
|
$
|
8,697
|
|
Property, plant, equipment and mining development costs, net
|
20
|
|
|
51
|
|
|
27,024
|
|
|
—
|
|
|
27,095
|
|
|||||
Oil and gas properties, net - full cost method:
|
|
|
|
|
|
|
|
|
|
||||||||||
Subject to amortization, less accumulated amortization
|
—
|
|
|
1,507
|
|
|
3,142
|
|
|
—
|
|
|
4,649
|
|
|||||
Not subject to amortization
|
—
|
|
|
2,649
|
|
|
6,659
|
|
|
4
|
|
|
9,312
|
|
|||||
Investments in consolidated subsidiaries
|
24,153
|
|
|
2,216
|
|
|
4,019
|
|
|
(30,388
|
)
|
|
—
|
|
|||||
Other assets
|
9,991
|
|
|
4,703
|
|
|
4,179
|
|
|
(14,618
|
)
|
|
4,255
|
|
|||||
Total assets
|
$
|
34,421
|
|
|
$
|
14,026
|
|
|
$
|
54,688
|
|
|
$
|
(49,127
|
)
|
|
$
|
54,008
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
LIABILITIES AND EQUITY
|
|
|
|
|
|
|
|
|
|
||||||||||
Current liabilities
|
$
|
3,106
|
|
|
$
|
433
|
|
|
$
|
5,325
|
|
|
$
|
(4,125
|
)
|
|
$
|
4,739
|
|
Long-term debt, less current portion
|
15,841
|
|
|
5,181
|
|
|
10,221
|
|
|
(11,132
|
)
|
|
20,111
|
|
|||||
Deferred income taxes
|
1,613
|
|
a
|
—
|
|
|
3,257
|
|
|
—
|
|
|
4,870
|
|
|||||
Environmental and asset retirement obligations, less current portion
|
—
|
|
|
307
|
|
|
3,409
|
|
|
—
|
|
|
3,716
|
|
|||||
Other liabilities
|
56
|
|
|
3,361
|
|
|
1,829
|
|
|
(3,486
|
)
|
|
1,760
|
|
|||||
Total liabilities
|
20,616
|
|
|
9,282
|
|
|
24,041
|
|
|
(18,743
|
)
|
|
35,196
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Redeemable noncontrolling interest
|
—
|
|
|
—
|
|
|
757
|
|
|
—
|
|
|
757
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Equity:
|
|
|
|
|
|
|
|
|
|
||||||||||
Stockholders' equity
|
13,805
|
|
|
4,744
|
|
|
26,173
|
|
|
(30,917
|
)
|
|
13,805
|
|
|||||
Noncontrolling interests
|
—
|
|
|
—
|
|
|
3,717
|
|
|
533
|
|
|
4,250
|
|
|||||
Total equity
|
13,805
|
|
|
4,744
|
|
|
29,890
|
|
|
(30,384
|
)
|
|
18,055
|
|
|||||
Total liabilities and equity
|
$
|
34,421
|
|
|
$
|
14,026
|
|
|
$
|
54,688
|
|
|
$
|
(49,127
|
)
|
|
$
|
54,008
|
|
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
|
$
|
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
|
8,914
|
|
|
3,947
|
|
|
4,061
|
|
|
(12,787
|
)
|
|
4,135
|
|
|||||
Total assets
|
$
|
38,024
|
|
|
$
|
18,831
|
|
|
$
|
62,665
|
|
|
$
|
(60,846
|
)
|
|
$
|
58,674
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
LIABILITIES AND EQUITY
|
|
|
|
|
|
|
|
|
|
||||||||||
Current liabilities
|
$
|
1,592
|
|
|
$
|
560
|
|
|
$
|
5,592
|
|
|
$
|
(2,572
|
)
|
|
$
|
5,172
|
|
Long-term debt, less current portion
|
14,930
|
|
|
3,874
|
|
|
8,879
|
|
|
(9,312
|
)
|
|
18,371
|
|
|||||
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
|
19,737
|
|
|
8,108
|
|
|
22,963
|
|
|
(15,359
|
)
|
|
35,449
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
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
|
$
|
38,024
|
|
|
$
|
18,831
|
|
|
$
|
62,665
|
|
|
$
|
(60,846
|
)
|
|
$
|
58,674
|
|
a.
|
All U.S. related deferred income taxes are recorded at the parent company.
|
Three Months Ended June 30, 2015
|
|
|
|
|
|
|
|
|
|
||||||||||
|
FCX
|
|
FM O&G LLC
|
|
Non-guarantor
|
|
|
|
Consolidated
|
||||||||||
|
Issuer
|
|
Guarantor
|
|
Subsidiaries
|
|
Eliminations
|
|
FCX
|
||||||||||
Revenues
|
$
|
—
|
|
|
$
|
169
|
|
|
$
|
4,079
|
|
|
$
|
—
|
|
|
$
|
4,248
|
|
Total costs and expenses
|
19
|
|
|
1,217
|
|
a
|
5,383
|
|
a
|
3
|
|
|
6,622
|
|
|||||
Operating (loss) income
|
(19
|
)
|
|
(1,048
|
)
|
|
(1,304
|
)
|
|
(3
|
)
|
|
(2,374
|
)
|
|||||
Interest expense, net
|
(121
|
)
|
|
(2
|
)
|
|
(67
|
)
|
|
41
|
|
|
(149
|
)
|
|||||
Other income (expense), net
|
127
|
|
|
—
|
|
|
(56
|
)
|
|
(34
|
)
|
|
37
|
|
|||||
(Loss) income before income taxes and equity in affiliated companies' net (losses) earnings
|
(13
|
)
|
|
(1,050
|
)
|
|
(1,427
|
)
|
|
4
|
|
|
(2,486
|
)
|
|||||
(Provision for) benefit from income taxes
|
(265
|
)
|
|
374
|
|
|
580
|
|
|
(2
|
)
|
|
687
|
|
|||||
Equity in affiliated companies' net (losses) earnings
|
(1,573
|
)
|
|
(1,920
|
)
|
|
(2,972
|
)
|
|
6,465
|
|
|
—
|
|
|||||
Net (loss) income
|
(1,851
|
)
|
|
(2,596
|
)
|
|
(3,819
|
)
|
|
6,467
|
|
|
(1,799
|
)
|
|||||
Net income and preferred dividends attributable to noncontrolling interests
|
—
|
|
|
—
|
|
|
(38
|
)
|
|
(14
|
)
|
|
(52
|
)
|
|||||
Net (loss) income attributable to common stockholders
|
$
|
(1,851
|
)
|
|
$
|
(2,596
|
)
|
|
$
|
(3,857
|
)
|
|
$
|
6,453
|
|
|
$
|
(1,851
|
)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Other comprehensive income (loss)
|
9
|
|
|
—
|
|
|
9
|
|
|
(9
|
)
|
|
9
|
|
|||||
Total comprehensive (loss) income
|
$
|
(1,842
|
)
|
|
$
|
(2,596
|
)
|
|
$
|
(3,848
|
)
|
|
$
|
6,444
|
|
|
$
|
(1,842
|
)
|
a.
|
Includes charges totaling
$1.0 billion
at the FM O&G LLC guarantor and
$1.7 billion
at the non-guarantor subsidiaries related to ceiling test impairment of FCX's oil and gas properties pursuant to full cost accounting rules.
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Six Months Ended June 30, 2015
|
|
|
|
|
|
|
|
|
|
||||||||||
|
FCX
|
|
FM O&G LLC
|
|
Non-guarantor
|
|
|
|
Consolidated
|
||||||||||
|
Issuer
|
|
Guarantor
|
|
Subsidiaries
|
|
Eliminations
|
|
FCX
|
||||||||||
Revenues
|
$
|
—
|
|
|
$
|
350
|
|
|
$
|
8,051
|
|
|
$
|
—
|
|
|
$
|
8,401
|
|
Total costs and expenses
|
35
|
|
|
2,535
|
|
a
|
11,181
|
|
a
|
(13
|
)
|
|
13,738
|
|
|||||
Operating (loss) income
|
(35
|
)
|
|
(2,185
|
)
|
|
(3,130
|
)
|
|
13
|
|
|
(5,337
|
)
|
|||||
Interest expense, net
|
(236
|
)
|
|
(6
|
)
|
|
(124
|
)
|
|
71
|
|
|
(295
|
)
|
|||||
Other income (expense), net
|
156
|
|
|
—
|
|
|
(48
|
)
|
|
(64
|
)
|
|
44
|
|
|||||
(Loss) income before income taxes and equity in affiliated companies' net (losses) earnings
|
(115
|
)
|
|
(2,191
|
)
|
|
(3,302
|
)
|
|
20
|
|
|
(5,588
|
)
|
|||||
(Provision for) benefit from income taxes
|
(686
|
)
|
|
790
|
|
|
1,286
|
|
|
(8
|
)
|
|
1,382
|
|
|||||
Equity in affiliated companies' net (losses) earnings
|
(3,524
|
)
|
|
(4,279
|
)
|
|
(6,502
|
)
|
|
14,306
|
|
|
1
|
|
|||||
Net (loss) income
|
(4,325
|
)
|
|
(5,680
|
)
|
|
(8,518
|
)
|
|
14,318
|
|
|
(4,205
|
)
|
|||||
Net income and preferred dividends attributable to noncontrolling interests
|
—
|
|
|
—
|
|
|
(94
|
)
|
|
(26
|
)
|
|
(120
|
)
|
|||||
Net (loss) income attributable to common stockholders
|
$
|
(4,325
|
)
|
|
$
|
(5,680
|
)
|
|
$
|
(8,612
|
)
|
|
$
|
14,292
|
|
|
$
|
(4,325
|
)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Other comprehensive income (loss)
|
21
|
|
|
—
|
|
|
21
|
|
|
(21
|
)
|
|
21
|
|
|||||
Total comprehensive (loss) income
|
$
|
(4,304
|
)
|
|
$
|
(5,680
|
)
|
|
$
|
(8,591
|
)
|
|
$
|
14,271
|
|
|
$
|
(4,304
|
)
|
|
|
|
|
|
|
|
|
|
|
a.
|
Includes charges totaling
$2.1 billion
at the FM O&G LLC guarantor and
$3.7 billion
at the non-guarantor subsidiaries related to ceiling test impairment of FCX's oil and gas properties pursuant to full cost accounting rules.
|
Three Months Ended June 30, 2014
|
|
|
|
|
|
|
|
|
|
||||||||||
|
FCX
|
|
FM O&G LLC
|
|
Non-guarantor
|
|
|
|
Consolidated
|
||||||||||
|
Issuer
|
|
Guarantor
|
|
Subsidiaries
|
|
Eliminations
|
|
FCX
|
||||||||||
Revenues
|
$
|
—
|
|
|
$
|
570
|
|
|
$
|
4,952
|
|
|
$
|
—
|
|
|
$
|
5,522
|
|
Total costs and expenses
|
21
|
|
|
489
|
|
|
3,865
|
|
|
(6
|
)
|
|
4,369
|
|
|||||
Operating (loss) income
|
(21
|
)
|
|
81
|
|
|
1,087
|
|
|
6
|
|
|
1,153
|
|
|||||
Interest expense, net
|
(87
|
)
|
|
(44
|
)
|
|
(51
|
)
|
|
18
|
|
|
(164
|
)
|
|||||
Net (loss) gain on early extinguishment of debt
|
(1
|
)
|
|
6
|
|
|
—
|
|
|
—
|
|
|
5
|
|
|||||
Other income (expense), net
|
17
|
|
|
1
|
|
|
(8
|
)
|
|
(18
|
)
|
|
(8
|
)
|
|||||
(Loss) income before income taxes and equity in affiliated companies' net earnings (losses)
|
(92
|
)
|
|
44
|
|
|
1,028
|
|
|
6
|
|
|
986
|
|
|||||
Benefit from (provision for) income taxes
|
26
|
|
|
26
|
|
|
(378
|
)
|
|
(2
|
)
|
|
(328
|
)
|
|||||
Equity in affiliated companies' net earnings (losses)
|
548
|
|
|
126
|
|
|
154
|
|
|
(826
|
)
|
|
2
|
|
|||||
Net income (loss)
|
482
|
|
|
196
|
|
|
804
|
|
|
(822
|
)
|
|
660
|
|
|||||
Net income and preferred dividends attributable to noncontrolling interests
|
—
|
|
|
—
|
|
|
(180
|
)
|
|
2
|
|
|
(178
|
)
|
|||||
Net income (loss) attributable to common stockholders
|
$
|
482
|
|
|
$
|
196
|
|
|
$
|
624
|
|
|
$
|
(820
|
)
|
|
$
|
482
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Other comprehensive income (loss)
|
1
|
|
|
—
|
|
|
1
|
|
|
(1
|
)
|
|
1
|
|
|||||
Total comprehensive income (loss)
|
$
|
483
|
|
|
$
|
196
|
|
|
$
|
625
|
|
|
$
|
(821
|
)
|
|
$
|
483
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Six Months Ended June 30, 2014
|
|
|
|
|
|
|
|
|
|
||||||||||
|
FCX
|
|
FM O&G LLC
|
|
Non-guarantor
|
|
|
|
Consolidated
|
||||||||||
|
Issuer
|
|
Guarantor
|
|
Subsidiaries
|
|
Eliminations
|
|
FCX
|
||||||||||
Revenues
|
$
|
—
|
|
|
$
|
1,214
|
|
|
$
|
9,293
|
|
|
$
|
—
|
|
|
$
|
10,507
|
|
Total costs and expenses
|
32
|
|
|
1,015
|
|
|
7,204
|
|
|
(8
|
)
|
|
8,243
|
|
|||||
Operating (loss) income
|
(32
|
)
|
|
199
|
|
|
2,089
|
|
|
8
|
|
|
2,264
|
|
|||||
Interest expense, net
|
(169
|
)
|
|
(85
|
)
|
|
(109
|
)
|
|
38
|
|
|
(325
|
)
|
|||||
Net (loss) gain on early extinguishment of debt
|
(1
|
)
|
|
6
|
|
|
—
|
|
|
—
|
|
|
5
|
|
|||||
Other income (expense), net
|
37
|
|
|
1
|
|
|
25
|
|
|
(38
|
)
|
|
25
|
|
|||||
(Loss) income before income taxes and equity in affiliated companies' net earnings (losses)
|
(165
|
)
|
|
121
|
|
|
2,005
|
|
|
8
|
|
|
1,969
|
|
|||||
Benefit from (provision for) income taxes
|
5
|
|
|
(17
|
)
|
|
(670
|
)
|
|
(3
|
)
|
|
(685
|
)
|
|||||
Equity in affiliated companies' net earnings (losses)
|
1,152
|
|
|
256
|
|
|
339
|
|
|
(1,745
|
)
|
|
2
|
|
|||||
Net income (loss)
|
992
|
|
|
360
|
|
|
1,674
|
|
|
(1,740
|
)
|
|
1,286
|
|
|||||
Net income and preferred dividends attributable to noncontrolling interests
|
—
|
|
|
—
|
|
|
(291
|
)
|
|
(3
|
)
|
|
(294
|
)
|
|||||
Net income (loss) attributable to common stockholders
|
$
|
992
|
|
|
$
|
360
|
|
|
$
|
1,383
|
|
|
$
|
(1,743
|
)
|
|
$
|
992
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Other comprehensive income (loss)
|
4
|
|
|
—
|
|
|
4
|
|
|
(4
|
)
|
|
4
|
|
|||||
Total comprehensive income (loss)
|
$
|
996
|
|
|
$
|
360
|
|
|
$
|
1,387
|
|
|
$
|
(1,747
|
)
|
|
$
|
996
|
|
|
|
|
|
|
|
|
|
|
|
|
FCX
|
|
FM O&G LLC
|
|
Non-guarantor
|
|
|
|
Consolidated
|
||||||||||
|
Issuer
|
|
Guarantor
|
|
Subsidiaries
|
|
Eliminations
|
|
FCX
|
||||||||||
Cash flow from operating activities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Net (loss) income
|
$
|
(4,325
|
)
|
|
$
|
(5,680
|
)
|
|
$
|
(8,518
|
)
|
|
$
|
14,318
|
|
|
$
|
(4,205
|
)
|
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Depreciation, depletion and amortization
|
2
|
|
|
223
|
|
|
1,638
|
|
|
(34
|
)
|
|
1,829
|
|
|||||
Impairment of oil and gas properties
|
—
|
|
|
2,052
|
|
|
3,717
|
|
|
21
|
|
|
5,790
|
|
|||||
Net gains on crude oil derivative contracts
|
—
|
|
|
(58
|
)
|
|
—
|
|
|
—
|
|
|
(58
|
)
|
|||||
Equity in losses (earnings) of consolidated subsidiaries
|
3,524
|
|
|
4,279
|
|
|
6,502
|
|
|
(14,306
|
)
|
|
(1
|
)
|
|||||
Other, net
|
(1,431
|
)
|
|
9
|
|
|
43
|
|
|
—
|
|
|
(1,379
|
)
|
|||||
Changes in working capital and other tax payments
|
2,222
|
|
|
(550
|
)
|
|
(1,870
|
)
|
|
8
|
|
|
(190
|
)
|
|||||
Net cash (used in) provided by operating activities
|
(8
|
)
|
|
275
|
|
|
1,512
|
|
|
7
|
|
|
1,786
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash flow from investing activities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Capital expenditures
|
—
|
|
|
(734
|
)
|
|
(2,787
|
)
|
|
(7
|
)
|
|
(3,528
|
)
|
|||||
Intercompany loans
|
(1,073
|
)
|
|
(794
|
)
|
|
—
|
|
|
1,867
|
|
|
—
|
|
|||||
Dividends from (investments in) consolidated subsidiaries
|
438
|
|
|
(31
|
)
|
|
74
|
|
|
(481
|
)
|
|
—
|
|
|||||
Other, net
|
(10
|
)
|
|
(1
|
)
|
|
137
|
|
|
10
|
|
|
136
|
|
|||||
Net cash (used in) provided by investing activities
|
(645
|
)
|
|
(1,560
|
)
|
|
(2,576
|
)
|
|
1,389
|
|
|
(3,392
|
)
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash flow from financing activities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Proceeds from debt
|
2,735
|
|
|
—
|
|
|
1,687
|
|
|
—
|
|
|
4,422
|
|
|||||
Repayments of debt
|
(1,690
|
)
|
|
—
|
|
|
(670
|
)
|
|
—
|
|
|
(2,360
|
)
|
|||||
Intercompany loans
|
—
|
|
|
1,321
|
|
|
546
|
|
|
(1,867
|
)
|
|
—
|
|
|||||
Cash dividends and distributions paid, and contributions received
|
(380
|
)
|
|
—
|
|
|
(481
|
)
|
|
421
|
|
|
(440
|
)
|
|||||
Other, net
|
(12
|
)
|
|
(37
|
)
|
|
(15
|
)
|
|
50
|
|
|
(14
|
)
|
|||||
Net cash provided by (used in) financing activities
|
653
|
|
|
1,284
|
|
|
1,067
|
|
|
(1,396
|
)
|
|
1,608
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Net (decrease) increase in cash and cash equivalents
|
—
|
|
|
(1
|
)
|
|
3
|
|
|
—
|
|
|
2
|
|
|||||
Cash and cash equivalents at beginning of period
|
—
|
|
|
1
|
|
|
463
|
|
|
—
|
|
|
464
|
|
|||||
Cash and cash equivalents at end of period
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
466
|
|
|
$
|
—
|
|
|
$
|
466
|
|
|
FCX
|
|
FM O&G LLC
|
|
Non-guarantor
|
|
|
|
Consolidated
|
|||||||||||
|
Issuer
|
|
Guarantor
|
|
Subsidiaries
|
|
Eliminations
|
|
FCX
|
|||||||||||
Cash flow from operating activities:
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net income (loss)
|
$
|
992
|
|
|
$
|
360
|
|
|
$
|
1,674
|
|
|
$
|
(1,740
|
)
|
|
$
|
1,286
|
|
|
Adjustments to reconcile net income (loss) to net cash (used in) provided by operating activities:
|
|
|
|
|
|
|
|
|
|
|||||||||||
Depreciation, depletion and amortization
|
2
|
|
|
545
|
|
|
1,440
|
|
|
(8
|
)
|
|
1,979
|
|
||||||
Net losses on crude oil and natural gas derivative contracts
|
—
|
|
|
120
|
|
|
—
|
|
|
—
|
|
|
120
|
|
||||||
Net gain (loss) on early extinguishment of debt
|
1
|
|
|
(6
|
)
|
|
—
|
|
|
—
|
|
|
(5
|
)
|
||||||
Equity in (earnings) losses of consolidated subsidiaries
|
(1,152
|
)
|
|
(256
|
)
|
|
39
|
|
|
1,367
|
|
|
(2
|
)
|
||||||
Other, net
|
121
|
|
|
(12
|
)
|
|
(123
|
)
|
|
—
|
|
|
(14
|
)
|
||||||
Changes in working capital and other tax payments
|
(164
|
)
|
|
(2,165
|
)
|
|
1,552
|
|
|
—
|
|
|
(777
|
)
|
||||||
Net cash (used in) provided by operating activities
|
(200
|
)
|
|
(1,414
|
)
|
|
4,582
|
|
|
(381
|
)
|
|
2,587
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Cash flow from investing activities:
|
|
|
|
|
|
|
|
|
|
|||||||||||
Capital expenditures
|
—
|
|
|
(897
|
)
|
|
(2,665
|
)
|
|
—
|
|
|
(3,562
|
)
|
||||||
Acquisition of Deepwater GOM interests
|
—
|
|
|
—
|
|
|
(925
|
)
|
|
—
|
|
|
(925
|
)
|
||||||
Intercompany loans
|
1,318
|
|
|
1,629
|
|
|
—
|
|
—
|
|
(2,947
|
)
|
|
—
|
|
|||||
(Investments in) dividends from consolidated subsidiaries
|
(364
|
)
|
|
(96
|
)
|
|
1,079
|
|
|
(619
|
)
|
|
—
|
|
||||||
Net proceeds from sale of Eagle Ford shale assets
|
—
|
|
|
3,009
|
|
|
—
|
|
|
—
|
|
|
3,009
|
|
||||||
Other, net
|
—
|
|
|
(381
|
)
|
|
18
|
|
|
—
|
|
|
(363
|
)
|
||||||
Net cash provided by (used in) investing activities
|
954
|
|
|
3,264
|
|
|
(2,493
|
)
|
|
(3,566
|
)
|
|
(1,841
|
)
|
||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Cash flow from financing activities:
|
|
|
|
|
|
|
|
|
|
|||||||||||
Proceeds from debt
|
890
|
|
|
—
|
|
|
358
|
|
|
—
|
|
|
1,248
|
|
||||||
Repayments of debt
|
(990
|
)
|
|
(224
|
)
|
|
(397
|
)
|
|
—
|
|
|
(1,611
|
)
|
||||||
Intercompany loans
|
—
|
|
|
(170
|
)
|
|
(2,777
|
)
|
|
2,947
|
|
|
—
|
|
||||||
Cash dividends and distributions paid, and contributions received
|
(653
|
)
|
|
(1,453
|
)
|
|
203
|
|
|
1,000
|
|
|
(903
|
)
|
||||||
Other, net
|
(1
|
)
|
|
(2
|
)
|
|
(4
|
)
|
|
—
|
|
|
(7
|
)
|
||||||
Net cash (used in) provided by financing activities
|
(754
|
)
|
|
(1,849
|
)
|
|
(2,617
|
)
|
|
3,947
|
|
|
(1,273
|
)
|
||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net increase (decrease) in cash and cash equivalents
|
—
|
|
|
1
|
|
|
(528
|
)
|
|
—
|
|
|
(527
|
)
|
||||||
Cash and cash equivalents at beginning of period
|
—
|
|
|
—
|
|
|
1,985
|
|
|
—
|
|
|
1,985
|
|
||||||
Cash and cash equivalents at end of period
|
$
|
—
|
|
|
$
|
1
|
|
|
$
|
1,457
|
|
|
$
|
—
|
|
|
$
|
1,458
|
|
Item 2.
|
Management's Discussion and Analysis of Financial Condition and Results of Operations.
|
Copper
(millions of recoverable pounds):
|
|
|
|
North America copper mines
|
1,960
|
|
|
South America mining
|
900
|
|
|
Indonesia mining
|
860
|
|
|
Africa mining
|
460
|
|
|
|
4,180
|
|
|
Gold
(thousands of recoverable ounces)
|
1,300
|
|
|
Molybdenum
(millions of recoverable pounds)
|
93
|
|
a
|
Oil Equivalents
(million BOE or MMBOE)
|
52.9
|
|
|
a.
|
Projected molybdenum sales include
44 million
pounds produced by our Molybdenum mines and
49 million
pounds produced by our North and South America copper mines.
|
|
Three Months Ended
|
|
Six Months Ended
|
|
||||||||||||
|
June 30,
|
|
June 30,
|
|
||||||||||||
|
2015
|
|
2014
a
|
|
2015
|
|
2014
a
|
|
||||||||
SUMMARY FINANCIAL DATA
|
(in millions, except per share amounts)
|
|
||||||||||||||
Revenues
b,c,d
|
$
|
4,248
|
|
|
$
|
5,522
|
|
|
$
|
8,401
|
|
|
$
|
10,507
|
|
|
Operating (loss) income
b,c,d
|
$
|
(2,374
|
)
|
e,f,g
|
$
|
1,153
|
|
h,i
|
$
|
(5,337
|
)
|
e,f,g,j
|
$
|
2,264
|
|
h,i
|
Net (loss) income attributable to common stock
c,d,k
|
$
|
(1,851
|
)
|
e,f,g,l,m
|
$
|
482
|
|
h,i,n
|
$
|
(4,325
|
)
|
e,f,g,j,l,m
|
$
|
992
|
|
h,i,n
|
Diluted net (loss) income per share attributable to common stock
|
$
|
(1.78
|
)
|
e,f,g,l,m
|
$
|
0.46
|
|
h,i,n
|
$
|
(4.16
|
)
|
e,f,g,j,l,m
|
$
|
0.95
|
|
h,i,n
|
Diluted weighted-average common shares outstanding
|
1,040
|
|
|
1,045
|
|
|
1,040
|
|
|
1,045
|
|
|
||||
Operating cash flows
o
|
$
|
1,069
|
|
|
$
|
1,386
|
|
|
$
|
1,786
|
|
|
$
|
2,587
|
|
|
Capital expenditures
|
$
|
1,661
|
|
|
$
|
1,950
|
|
|
$
|
3,528
|
|
|
$
|
3,562
|
|
|
At June 30:
|
|
|
|
|
|
|
|
|
||||||||
Cash and cash equivalents
|
$
|
466
|
|
|
$
|
1,458
|
|
|
$
|
466
|
|
|
$
|
1,458
|
|
|
Total debt, including current portion
|
$
|
20,902
|
|
|
$
|
20,190
|
|
|
$
|
20,902
|
|
|
$
|
20,190
|
|
|
|
|
|
|
|
|
|
|
|
a.
|
Includes the results of the Candelaria and Ojos del Salado mines that were sold in November 2014, and the Eagle Ford properties that were sold in June 2014.
|
|
Three Months Ended
|
|
Six Months Ended
|
|
||||||||||||
|
June 30,
|
|
June 30,
|
|
||||||||||||
Revenues
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
||||||||
North America copper mines
|
$
|
1,405
|
|
|
$
|
1,469
|
|
|
$
|
2,740
|
|
|
$
|
2,755
|
|
|
South America mining
|
453
|
|
|
1,031
|
|
|
939
|
|
|
1,929
|
|
|
||||
Indonesia mining
|
790
|
|
|
523
|
|
|
1,397
|
|
|
993
|
|
|
||||
Africa mining
|
351
|
|
|
418
|
|
|
761
|
|
|
745
|
|
|
||||
Molybdenum mines
|
102
|
|
|
170
|
|
|
215
|
|
|
296
|
|
|
||||
Rod & Refining
|
1,097
|
|
|
1,242
|
|
|
2,166
|
|
|
2,396
|
|
|
||||
Atlantic Copper Smelting & Refining
|
500
|
|
|
629
|
|
|
1,046
|
|
|
1,222
|
|
|
||||
U.S. oil & gas operations
|
569
|
|
|
1,236
|
|
|
1,069
|
|
|
2,497
|
|
|
||||
Other mining, corporate, other & eliminations
|
(1,019
|
)
|
|
(1,196
|
)
|
|
(1,932
|
)
|
|
(2,326
|
)
|
|
||||
Total revenues
|
$
|
4,248
|
|
|
$
|
5,522
|
|
|
$
|
8,401
|
|
|
$
|
10,507
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Operating income (loss)
|
|
|
|
|
|
|
|
|
||||||||
North America copper mines
|
$
|
300
|
|
|
$
|
468
|
|
|
$
|
594
|
|
|
$
|
858
|
|
|
South America mining
|
65
|
|
|
404
|
|
|
130
|
|
|
737
|
|
|
||||
Indonesia mining
|
232
|
|
|
(67
|
)
|
|
305
|
|
|
(49
|
)
|
|
||||
Africa mining
|
101
|
|
|
154
|
|
|
200
|
|
|
275
|
|
|
||||
Molybdenum mines
|
(7
|
)
|
|
65
|
|
|
(3
|
)
|
|
93
|
|
|
||||
Rod & Refining
|
6
|
|
|
6
|
|
|
10
|
|
|
10
|
|
|
||||
Atlantic Copper Smelting & Refining
|
19
|
|
|
(4
|
)
|
|
31
|
|
|
(13
|
)
|
|
||||
U.S. oil & gas operations
|
(2,932
|
)
|
|
232
|
|
|
(6,403
|
)
|
|
509
|
|
|
||||
Other mining, corporate, other & eliminations
|
(158
|
)
|
|
(105
|
)
|
|
(201
|
)
|
|
(156
|
)
|
|
||||
Total operating (loss) income
|
$
|
(2,374
|
)
|
|
$
|
1,153
|
|
|
$
|
(5,337
|
)
|
|
$
|
2,264
|
|
|
c.
|
Includes (unfavorable) favorable adjustments to provisionally priced concentrate and cathode copper sales recognized in prior periods totaling
$(20) million
(
$(10) million
to net loss attributable to common stock or
$(0.01)
per share) for
second-quarter
2015
,
$35 million
(
$16 million
to net income attributable to common stock or
$0.01
per share) for
second-quarter
2014
,
$(106) million
(
$(50) million
to net loss attributable to common stock or
$(0.05)
per share) for
the first six months
of
2015
and
$(118) million
(
$(65) million
to net income attributable to common stock or
$(0.06)
per share) for
the first six months
of
2014
. Refer to “Revenues” for further discussion.
|
d.
|
Includes net noncash mark-to-market (losses) gains associated with crude oil and natural gas derivative contracts totaling
$(95) million
(
$(59) million
to net loss attributable to common stock or
$(0.06)
per share) for
second-quarter
2015
,
$(7) million
(
$(4) million
to net income attributable to common stock or less than
$(0.01)
per share) for
second-quarter
2014
,
$(143) million
(
$(89) million
to net loss attributable to common stock or
$(0.09)
per share) for
the first six months
of
2015
|
e.
|
Includes charges to reduce the carrying value of oil and gas properties pursuant to full cost accounting rules of
$2.7 billion
(
$1.7 billion
to net loss attributable to common stock or
$1.61
per share) for
second-quarter
2015
and
$5.8 billion
(
$3.6 billion
to net loss attributable to common stock or
$3.47
per share) for
the first six months
of
2015
. See Note 1 and "Operations - Oil & Gas" for further discussion.
|
f.
|
Includes charges for lower of cost or market (LCM) adjustments primarily attributable to molybdenum inventories totaling
$59 million
(
$38 million
to net loss attributable to common stock or
$0.04
per share) for
second-quarter
2015
and
$63 million
(
$41 million
to net loss attributable to common stock or
$0.04
per share) for
the first six months
of
2015
. See Note 4 for further discussion.
|
g.
|
Includes net charges for idle/terminated rig costs and inventory write-downs at oil and gas operations of $
22 million
($
14 million
to net loss attributable to common stock or $
0.01
per share) for
second-quarter
2015
and $
39 million
($
24 million
to net loss attributable to common stock or
$0.02
per share) for the first six months of 2015.
|
h.
|
Includes net charges for adjustments to environmental obligations and related litigation reserves of
$69 million
(
$68 million
to net income attributable to common stock or
$0.06
per share) for the
second quarter
and first
six
months of
2014
.
|
i.
|
Includes charges 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 of
$56 million
(
$30 million
to net income attributable to common stock or
$0.03
per share) for
second-quarter
2014
and
$109 million
(
$58 million
to net income attributable to common stock or
$0.06
per share) for the first
six
months of
2014
.
|
j.
|
The first
six
months of
2015
includes a net gain of
$39 million
(
$25 million
to net loss attributable to common stock or
$0.02
per share) associated with the sale of FCX's one-third interest in the Luna Energy power facility in New Mexico.
|
k.
|
We defer recognizing profits on intercompany sales until final sales to third parties occur. For a summary of net impacts from changes in these deferrals, refer to "Operations - Smelting & Refining."
|
l.
|
The second quarter and first six months of 2015 include a gain of $92 million ($0.09 per share) related to net proceeds received from insurance carriers and other third parties related to the shareholder derivative litigation settlement.
|
m.
|
As a result of the impairment to oil and gas properties, we recorded tax charges to establish a valuation allowance primarily against U.S. federal alternative minimum tax credits of
$305 million
(
$0.29
per share) for
second-quarter
2015
and
$763 million
(
$0.73
per share) for the first
six
months of
2015
.
|
n.
|
The
second quarter
and first
six
months of
2014
included a tax charge of
$58 million
(
$0.06
per share) associated with deferred taxes recorded in connection with the allocation of goodwill to the sale of Eagle Ford.
|
o.
|
Includes net working capital uses and changes in other tax payments of
$104 million
for
second-quarter
2015
,
$364 million
for
second-quarter
2014
,
$190 million
for the first
six
months of
2015
, and
$777 million
for the first
six
months of
2014
.
|
|
Three Months Ended
|
|
Six Months Ended
|
|
||||||||||||
|
June 30,
|
|
June 30,
|
|
||||||||||||
|
2015
|
|
2014
a
|
|
2015
|
|
2014
a
|
|
||||||||
SUMMARY OPERATING DATA
|
|
|
|
|
|
|
||||||||||
Copper
|
|
|
|
|
|
|
|
|
||||||||
Production (millions of recoverable pounds)
|
977
|
|
|
931
|
|
|
1,892
|
|
|
1,879
|
|
|
||||
Sales, excluding purchases (millions of recoverable pounds)
|
964
|
|
|
968
|
|
|
1,924
|
|
|
1,839
|
|
|
||||
Average realized price per pound
|
$
|
2.71
|
|
|
$
|
3.16
|
|
|
$
|
2.70
|
|
|
$
|
3.17
|
|
|
Site production and delivery costs per pound
b
|
$
|
1.85
|
|
|
$
|
1.99
|
|
|
$
|
1.89
|
|
|
$
|
1.94
|
|
|
Unit net cash costs per pound
b
|
$
|
1.50
|
|
|
$
|
1.72
|
|
|
$
|
1.57
|
|
|
$
|
1.64
|
|
|
Gold
|
|
|
|
|
|
|
|
|
||||||||
Production (thousands of recoverable ounces)
|
367
|
|
|
166
|
|
|
626
|
|
|
397
|
|
|
||||
Sales, excluding purchases (thousands of recoverable ounces)
|
352
|
|
|
159
|
|
|
615
|
|
|
346
|
|
|
||||
Average realized price per ounce
|
$
|
1,174
|
|
|
$
|
1,296
|
|
|
$
|
1,183
|
|
|
$
|
1,299
|
|
|
Molybdenum
|
|
|
|
|
|
|
|
|
||||||||
Production (millions of recoverable pounds)
|
25
|
|
|
25
|
|
|
49
|
|
|
49
|
|
|
||||
Sales, excluding purchases (millions of recoverable pounds)
|
23
|
|
|
25
|
|
|
46
|
|
|
52
|
|
|
||||
Average realized price per pound
|
$
|
9.51
|
|
|
$
|
13.43
|
|
|
$
|
9.84
|
|
|
$
|
12.27
|
|
|
Oil Equivalents
|
|
|
|
|
|
|
|
|
||||||||
Sales volumes
|
|
|
|
|
|
|
|
|
||||||||
MMBOE
|
13.1
|
|
|
16.0
|
|
|
25.6
|
|
|
32.2
|
|
|
||||
Thousand BOE (MBOE) per day
|
144
|
|
|
176
|
|
|
142
|
|
|
178
|
|
|
||||
Cash operating margin per BOE
c
|
|
|
|
|
|
|
|
|
||||||||
Realized revenues
|
$
|
50.04
|
|
|
$
|
77.53
|
|
|
$
|
46.95
|
|
|
$
|
77.37
|
|
|
Cash production costs
|
19.04
|
|
|
19.57
|
|
|
19.62
|
|
|
19.03
|
|
|
||||
Cash operating margin
|
$
|
31.00
|
|
|
$
|
57.96
|
|
|
$
|
27.33
|
|
|
$
|
58.34
|
|
|
a.
|
The 2014 periods include the results of the Candelaria and Ojos del Salado mines that were sold in November 2014, and the Eagle Ford properties that were sold in June 2014. Sales volumes from Candelaria and Ojos del Salado totaled
80 million
pounds of copper and
20 thousand
ounces of gold for
second-quarter
2014
and
174 million
pounds of copper and
43 thousand
ounces of gold for
the first six months
of
2014
; sales volumes from Eagle Ford totaled 4.0 MMBOE (
44
MBOE per day) for
second-quarter
2014
and 8.7 MMBOE (
48
MBOE per day) for
the first six months
of
2014
.
|
b.
|
Reflects per pound weighted-average production and delivery costs and unit net cash costs (net of by-product credits) for all copper mines. For reconciliations of 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.
|
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. 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."
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||
|
|
|
|
||||
Consolidated revenues - 2014 periods
|
$
|
5,522
|
|
|
$
|
10,507
|
|
Mining operations:
|
|
|
|
||||
Higher (lower) sales volumes from mining operations:
|
|
|
|
||||
Copper
|
(14
|
)
|
|
268
|
|
||
Gold
|
248
|
|
|
349
|
|
||
Molybdenum
|
(26
|
)
|
|
(65
|
)
|
||
Lower average realized prices from mining operations:
|
|
|
|
||||
Copper
|
(434
|
)
|
|
(904
|
)
|
||
Gold
|
(43
|
)
|
|
(72
|
)
|
||
Molybdenum
|
(89
|
)
|
|
(112
|
)
|
||
Net adjustments for prior period provisionally priced copper sales
|
(55
|
)
|
|
12
|
|
||
Lower revenues from purchased copper
|
(44
|
)
|
|
(52
|
)
|
||
Lower Atlantic Copper revenues
|
(129
|
)
|
|
(176
|
)
|
||
Oil and gas operations:
|
|
|
|
||||
Lower oil sales volumes
|
(293
|
)
|
|
(613
|
)
|
||
Lower oil average realized prices, including cash gains (losses) on derivative contacts
|
(240
|
)
|
|
(552
|
)
|
||
Net noncash mark-to-market adjustments on derivative contracts
|
(88
|
)
|
|
(151
|
)
|
||
Other, including intercompany eliminations
|
(67
|
)
|
|
(38
|
)
|
||
Consolidated revenues - 2015 periods
|
$
|
4,248
|
|
|
$
|
8,401
|
|
|
|
|
|
|
|
10% Increase
|
|
10% Decrease
|
||||
Crude oil options
|
|
$
|
(37
|
)
|
|
$
|
18
|
|
|
|
|
|
|
|
Six Months Ended
|
|
Six Months Ended
|
|
||||||||||||||||
|
June 30, 2015
|
|
June 30, 2014
|
|
||||||||||||||||
|
Income(Loss)
a
|
|
Effective
Tax Rate
|
|
Income Tax (Provision) Benefit
|
|
Income (Loss)
a
|
|
Effective
Tax Rate
|
|
Income Tax
(Provision) Benefit |
|
||||||||
U.S.
|
$
|
(469
|
)
|
b
|
61%
|
|
$
|
288
|
|
|
$
|
936
|
|
|
31%
|
|
$
|
(291
|
)
|
c
|
South America
|
81
|
|
|
37%
|
|
(30
|
)
|
|
747
|
|
|
36%
|
|
(267
|
)
|
|
||||
Indonesia
|
289
|
|
|
43%
|
|
(124
|
)
|
|
(39
|
)
|
|
38%
|
|
15
|
|
|
||||
Africa
|
114
|
|
|
46%
|
|
(53
|
)
|
|
187
|
|
|
30%
|
|
(57
|
)
|
|
||||
Impairment of oil and gas properties
|
(5,790
|
)
|
|
38%
|
|
2,179
|
|
|
—
|
|
|
N/A
|
|
—
|
|
|
||||
Valuation allowance
|
—
|
|
|
N/A
|
|
(763
|
)
|
d
|
—
|
|
|
N/A
|
|
—
|
|
|
||||
Eliminations and other
|
187
|
|
|
N/A
|
|
(28
|
)
|
|
138
|
|
|
N/A
|
|
(37
|
)
|
|
||||
Annualized rate adjustment
e
|
—
|
|
|
N/A
|
|
(87
|
)
|
|
—
|
|
|
N/A
|
|
(48
|
)
|
|
||||
Consolidated FCX
|
$
|
(5,588
|
)
|
|
25%
|
f
|
$
|
1,382
|
|
|
$
|
1,969
|
|
|
35%
|
|
$
|
(685
|
)
|
|
a.
|
Represents income (loss) by geographic location before income taxes and equity in affiliated companies’ net earnings.
|
b.
|
Includes a gain of $92 million related to net proceeds received from insurance carriers and other third parties related to a shareholder derivative litigation settlement for which there is no related tax provision.
|
c.
|
Includes a
$58 million
charge for deferred taxes recorded in connection with the allocation of goodwill to the sale of Eagle Ford.
|
d.
|
As a result of the impairment to oil and gas properties, we recorded a tax charge to establish a valuation allowance primarily against U.S. federal alternative minimum tax credits.
|
e.
|
In accordance with applicable accounting rules, we adjust our interim provision for income taxes equal to our estimated annualized tax rate.
|
f.
|
Our consolidated effective income tax rate is a function of the combined effective tax rates for the jurisdictions in which we operate. Accordingly, variations in the relative proportions of jurisdictional income result in fluctuations to our consolidated effective income tax rate. Assuming achievement of current sales volume and cost estimates and average prices of
$2.50
per pound for copper,
$1,150
per ounce for gold,
$6
per pound for molybdenum and
$56
per barrel of Brent crude oil for the second half of
2015
, we estimated a tax benefit of
$1.4 billion
for 2015, substantially all of which relates to the impairment of oil and gas properties and resulting tax charge to establish a valuation allowance in the first half of 2015. See "Operations - Oil and Gas" for discussion regarding the likelihood of potentially significant ceiling charges during the remainder of 2015, which would give rise to additional tax benefits.
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
June 30,
|
|
June 30,
|
||||||||||||
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||
Operating Data, Net of Joint Venture Interest
|
|
|
|
|
|
|
|
||||||||
Copper
(recoverable)
|
|
|
|
|
|
|
|
||||||||
Production (millions of pounds)
|
469
|
|
|
395
|
|
|
921
|
|
|
780
|
|
||||
Sales (millions of pounds)
|
486
|
|
|
423
|
|
|
958
|
|
|
794
|
|
||||
Average realized price per pound
|
$
|
2.77
|
|
|
$
|
3.16
|
|
|
$
|
2.73
|
|
|
$
|
3.21
|
|
|
|
|
|
|
|
|
|
||||||||
Molybdenum
(recoverable)
|
|
|
|
|
|
|
|
||||||||
Production
(millions of pounds)
a
|
10
|
|
|
9
|
|
|
19
|
|
|
17
|
|
||||
|
|
|
|
|
|
|
|
||||||||
100% Operating Data
|
|
|
|
|
|
|
|
||||||||
SX/EW operations
|
|
|
|
|
|
|
|
||||||||
Leach ore placed in stockpiles (metric tons per day)
|
890,000
|
|
|
1,044,500
|
|
|
902,500
|
|
|
1,014,000
|
|
||||
Average copper ore grade (percent)
|
0.26
|
|
|
0.25
|
|
|
0.25
|
|
|
0.25
|
|
||||
Copper production (millions of recoverable pounds)
|
261
|
|
|
234
|
|
|
508
|
|
|
463
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Mill operations
|
|
|
|
|
|
|
|
||||||||
Ore milled (metric tons per day)
|
316,000
|
|
|
260,100
|
|
|
308,800
|
|
|
257,700
|
|
||||
Average ore grade (percent):
|
|
|
|
|
|
|
|
||||||||
Copper
|
0.47
|
|
|
0.44
|
|
|
0.48
|
|
|
0.43
|
|
||||
Molybdenum
|
0.03
|
|
|
0.03
|
|
|
0.03
|
|
|
0.03
|
|
||||
Copper recovery rate (percent)
|
85.8
|
|
|
82.8
|
|
|
85.6
|
|
|
84.4
|
|
||||
Copper production (millions of recoverable pounds)
|
247
|
|
|
188
|
|
|
488
|
|
|
370
|
|
a.
|
Refer to "Consolidated Results" for our consolidated molybdenum sales volumes, which includes sales of molybdenum produced at the North America copper mines.
|
|
Three Months Ended
|
|
Three Months Ended
|
|
||||||||||||||||||||
|
June 30, 2015
|
|
June 30, 2014
|
|
||||||||||||||||||||
|
By- Product Method
|
|
Co-Product Method
|
|
By- Product Method
|
|
Co-Product Method
|
|
||||||||||||||||
|
|
Copper
|
|
Molyb-
denum
a
|
|
|
Copper
|
|
Molyb-
denum a |
|
||||||||||||||
Revenues, excluding adjustments
|
$
|
2.77
|
|
|
$
|
2.77
|
|
|
$
|
7.80
|
|
|
$
|
3.16
|
|
|
$
|
3.16
|
|
|
$
|
12.49
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Site production and delivery, before net noncash and other costs shown below
|
1.78
|
|
|
1.66
|
|
|
6.24
|
|
|
1.87
|
|
|
1.74
|
|
|
6.73
|
|
|
||||||
By-product credits
|
(0.16
|
)
|
|
—
|
|
|
—
|
|
|
(0.28
|
)
|
|
—
|
|
|
—
|
|
|
||||||
Treatment charges
|
0.12
|
|
|
0.12
|
|
|
—
|
|
|
0.11
|
|
|
0.11
|
|
|
—
|
|
|
||||||
Unit net cash costs
|
1.74
|
|
|
1.78
|
|
|
6.24
|
|
|
1.70
|
|
|
1.85
|
|
|
6.73
|
|
|
||||||
Depreciation, depletion and amortization
|
0.28
|
|
|
0.27
|
|
|
0.53
|
|
|
0.30
|
|
|
0.28
|
|
|
0.64
|
|
|
||||||
Noncash and other costs, net
|
0.10
|
|
b
|
0.09
|
|
|
0.06
|
|
|
0.07
|
|
|
0.06
|
|
|
0.05
|
|
|
||||||
Total unit costs
|
2.12
|
|
|
2.14
|
|
|
6.83
|
|
|
2.07
|
|
|
2.19
|
|
|
7.42
|
|
|
||||||
Revenue adjustments, primarily for pricing on prior period open sales
|
(0.03
|
)
|
|
(0.03
|
)
|
|
—
|
|
|
0.02
|
|
|
0.02
|
|
|
—
|
|
|
||||||
Gross profit per pound
|
$
|
0.62
|
|
|
$
|
0.60
|
|
|
$
|
0.97
|
|
|
$
|
1.11
|
|
|
$
|
0.99
|
|
|
$
|
5.07
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Copper sales (millions of recoverable pounds)
|
485
|
|
|
485
|
|
|
|
|
421
|
|
|
421
|
|
|
|
|
||||||||
Molybdenum sales (millions of recoverable pounds)
a
|
|
|
|
|
10
|
|
|
|
|
|
|
9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Six Months Ended
|
|
Six Months Ended
|
|
||||||||||||||||||||
|
June 30, 2015
|
|
June 30, 2014
|
|
||||||||||||||||||||
|
By- Product Method
|
|
Co-Product Method
|
|
By- Product Method
|
|
Co-Product Method
|
|
||||||||||||||||
|
|
Copper
|
|
Molyb-
denum
a
|
|
|
Copper
|
|
Molyb-
denum
a
|
|
||||||||||||||
Revenues, excluding adjustments
|
$
|
2.73
|
|
|
$
|
2.73
|
|
|
$
|
8.28
|
|
|
$
|
3.21
|
|
|
$
|
3.21
|
|
|
$
|
11.39
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Site production and delivery, before net noncash and other costs shown below
|
1.79
|
|
|
1.68
|
|
|
6.24
|
|
|
1.87
|
|
|
1.76
|
|
|
6.45
|
|
|
||||||
By-product credits
|
(0.17
|
)
|
|
—
|
|
|
—
|
|
|
(0.25
|
)
|
|
—
|
|
|
—
|
|
|
||||||
Treatment charges
|
0.13
|
|
|
0.12
|
|
|
—
|
|
|
0.12
|
|
|
0.12
|
|
|
—
|
|
|
||||||
Unit net cash costs
|
1.75
|
|
|
1.80
|
|
|
6.24
|
|
|
1.74
|
|
|
1.88
|
|
|
6.45
|
|
|
||||||
Depreciation, depletion and amortization
|
0.28
|
|
|
0.27
|
|
|
0.58
|
|
|
0.29
|
|
|
0.27
|
|
|
0.58
|
|
|
||||||
Noncash and other costs, net
|
0.08
|
|
b
|
0.08
|
|
|
0.06
|
|
|
0.08
|
|
|
0.07
|
|
|
0.04
|
|
|
||||||
Total unit costs
|
2.11
|
|
|
2.15
|
|
|
6.88
|
|
|
2.11
|
|
|
2.22
|
|
|
7.07
|
|
|
||||||
Revenue adjustments, primarily for pricing on prior period open sales
|
(0.03
|
)
|
|
(0.03
|
)
|
|
—
|
|
|
(0.01
|
)
|
|
(0.01
|
)
|
|
—
|
|
|
||||||
Gross profit per pound
|
$
|
0.59
|
|
|
$
|
0.55
|
|
|
$
|
1.40
|
|
|
$
|
1.09
|
|
|
$
|
0.98
|
|
|
$
|
4.32
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Copper sales (millions of recoverable pounds)
|
956
|
|
|
956
|
|
|
|
|
790
|
|
|
790
|
|
|
|
|
||||||||
Molybdenum sales (millions of recoverable pounds)
a
|
|
|
|
|
19
|
|
|
|
|
|
|
17
|
|
|
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 charges for LCM inventory adjustments totaling $0.02 per pound for second-quarter 2015 and $0.01 per pound for the first six months of 2015.
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
June 30,
|
|
June 30,
|
||||||||||||
|
2015
|
|
2014
a
|
|
2015
|
|
2014
a
|
||||||||
Copper
(recoverable)
|
|
|
|
|
|
|
|
||||||||
Production (millions of pounds)
|
188
|
|
|
300
|
|
|
381
|
|
|
614
|
|
||||
Sales (millions of pounds)
|
178
|
|
|
310
|
|
|
378
|
|
|
617
|
|
||||
Average realized price per pound
|
$
|
2.69
|
|
|
$
|
3.17
|
|
|
$
|
2.68
|
|
|
$
|
3.16
|
|
|
|
|
|
|
|
|
|
||||||||
Gold
(recoverable)
|
|
|
|
|
|
|
|
||||||||
Production (thousands of ounces)
|
—
|
|
|
21
|
|
|
—
|
|
|
42
|
|
||||
Sales (thousands of ounces)
|
—
|
|
|
20
|
|
|
—
|
|
|
43
|
|
||||
Average realized price per ounce
|
$
|
—
|
|
|
$
|
1,302
|
|
|
$
|
—
|
|
|
$
|
1,302
|
|
|
|
|
|
|
|
|
|
||||||||
Molybdenum
(millions of recoverable pounds)
|
|
|
|
|
|
|
|
||||||||
Production
b
|
2
|
|
|
2
|
|
|
4
|
|
|
5
|
|
||||
|
|
|
|
|
|
|
|
||||||||
SX/EW operations
|
|
|
|
|
|
|
|
||||||||
Leach ore placed in stockpiles (metric tons per day)
|
237,000
|
|
|
281,700
|
|
|
235,300
|
|
|
284,200
|
|
||||
Average copper ore grade (percent)
|
0.41
|
|
|
0.52
|
|
|
0.41
|
|
|
0.51
|
|
||||
Copper production (millions of recoverable pounds)
|
109
|
|
|
125
|
|
|
223
|
|
|
248
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Mill operations
|
|
|
|
|
|
|
|
||||||||
Ore milled (metric tons per day)
|
116,500
|
|
|
182,200
|
|
|
117,900
|
|
|
185,500
|
|
||||
Average ore grade:
|
|
|
|
|
|
|
|
||||||||
Copper (percent)
|
0.46
|
|
|
0.56
|
|
|
0.45
|
|
|
0.58
|
|
||||
Molybdenum (percent)
|
0.01
|
|
|
0.02
|
|
|
0.02
|
|
|
0.02
|
|
||||
Gold (grams per metric ton)
|
—
|
|
|
0.11
|
|
|
—
|
|
|
0.11
|
|
||||
Copper recovery rate (percent)
|
78.2
|
|
|
88.7
|
|
|
78.9
|
|
|
89.4
|
|
||||
Copper production (millions of recoverable pounds)
|
79
|
|
|
175
|
|
|
158
|
|
|
366
|
|
a.
|
The 2014 periods include the results of the Candelaria and Ojos del Salado mines, which were sold in November 2014 and had sales volumes totaling 80 million pounds of copper and 20 thousand ounces of gold in
second-quarter
2015
and 174 million pounds of copper and 43 thousand ounces of gold for the first
six
months of 2014.
|
b.
|
Refer to "Consolidated Results" for our consolidated molybdenum sales volumes, which include sales of molybdenum produced at Cerro Verde.
|
|
Three Months Ended
|
|
Three Months Ended
|
|
||||||||||||
|
June 30, 2015
|
|
June 30, 2014
|
|
||||||||||||
|
By-Product
Method
|
|
Co-Product
Method
|
|
By-Product
Method
|
|
Co-Product
Method
|
|
||||||||
Revenues, excluding adjustments
|
$
|
2.69
|
|
|
$
|
2.69
|
|
|
$
|
3.17
|
|
|
$
|
3.17
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Site production and delivery, before net noncash
and other costs shown below
|
1.77
|
|
|
1.72
|
|
|
1.64
|
|
|
1.52
|
|
|
||||
By-product credits
|
(0.04
|
)
|
|
—
|
|
|
(0.23
|
)
|
|
—
|
|
|
||||
Treatment charges
|
0.17
|
|
|
0.17
|
|
|
0.18
|
|
|
0.18
|
|
|
||||
Royalty on metals
|
—
|
|
|
—
|
|
|
0.01
|
|
|
0.01
|
|
|
||||
Unit net cash costs
|
1.90
|
|
|
1.89
|
|
|
1.60
|
|
a
|
1.71
|
|
|
||||
Depreciation, depletion and amortization
|
0.40
|
|
|
0.39
|
|
|
0.30
|
|
|
0.29
|
|
|
||||
Noncash and other (credits) costs, net
|
(0.02
|
)
|
|
(0.03
|
)
|
|
0.08
|
|
|
0.06
|
|
|
||||
Total unit costs
|
2.28
|
|
|
2.25
|
|
|
1.98
|
|
|
2.06
|
|
|
||||
Revenue adjustments, primarily for pricing
on prior period open sales
|
(0.05
|
)
|
|
(0.05
|
)
|
|
0.10
|
|
|
0.10
|
|
|
||||
Gross profit per pound
|
$
|
0.36
|
|
|
$
|
0.39
|
|
|
$
|
1.29
|
|
|
$
|
1.21
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Copper sales (millions of recoverable pounds)
|
178
|
|
|
178
|
|
|
310
|
|
|
310
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Six Months Ended
|
|
Six Months Ended
|
||||||||||||
|
June 30, 2015
|
|
June 30, 2014
|
||||||||||||
|
By-Product
Method
|
|
Co-Product
Method
|
|
By-Product
Method
|
|
Co-Product
Method
|
||||||||
Revenues, excluding adjustments
|
$
|
2.68
|
|
|
$
|
2.68
|
|
|
$
|
3.16
|
|
|
$
|
3.16
|
|
|
|
|
|
|
|
|
|
||||||||
Site production and delivery, before net noncash and other costs shown below
|
1.76
|
|
|
1.70
|
|
|
1.57
|
|
|
1.46
|
|
||||
By-product credits
|
(0.06
|
)
|
|
—
|
|
|
(0.24
|
)
|
|
—
|
|
||||
Treatment charges
|
0.17
|
|
|
0.17
|
|
|
0.18
|
|
|
0.18
|
|
||||
Royalty on metals
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Unit net cash costs
|
1.87
|
|
|
1.87
|
|
|
1.51
|
|
a
|
1.64
|
|
||||
Depreciation, depletion and amortization
|
0.39
|
|
|
0.38
|
|
|
0.29
|
|
|
0.27
|
|
||||
Noncash and other costs, net
|
—
|
|
|
—
|
|
|
0.07
|
|
|
0.06
|
|
||||
Total unit costs
|
2.26
|
|
|
2.25
|
|
|
1.87
|
|
|
1.97
|
|
||||
Revenue adjustments, primarily for pricing on prior period open sales
|
(0.08
|
)
|
|
(0.08
|
)
|
|
(0.11
|
)
|
|
(0.11
|
)
|
||||
Gross profit per pound
|
$
|
0.34
|
|
|
$
|
0.35
|
|
|
$
|
1.18
|
|
|
$
|
1.08
|
|
|
|
|
|
|
|
|
|
||||||||
Copper sales (millions of recoverable pounds)
|
378
|
|
|
378
|
|
|
617
|
|
|
617
|
|
a.
|
Excluding the results of Candelaria and Ojos del Salado, South America mining's unit net cash costs for second-quarter 2014 averaged $1.55 per pound and $1.51 for the first six months of 2014.
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
June 30,
|
|
June 30,
|
||||||||||||
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||
Operating Data, Net of Joint Venture Interest
|
|
|
|
|
|
|
|
||||||||
Copper
(recoverable)
|
|
|
|
|
|
|
|
||||||||
Production (millions of pounds)
|
205
|
|
|
122
|
|
|
359
|
|
|
262
|
|
||||
Sales (millions of pounds)
|
196
|
|
|
117
|
|
|
351
|
|
|
226
|
|
||||
Average realized price per pound
|
$
|
2.61
|
|
|
$
|
3.19
|
|
|
$
|
2.66
|
|
|
$
|
3.15
|
|
|
|
|
|
|
|
|
|
||||||||
Gold
(thousands of recoverable ounces)
|
|
|
|
|
|
|
|
||||||||
Production (thousands of ounces)
|
360
|
|
|
142
|
|
|
615
|
|
|
350
|
|
||||
Sales (thousands of ounces)
|
346
|
|
|
135
|
|
|
606
|
|
|
297
|
|
||||
Average realized price per ounce
|
$
|
1,173
|
|
|
$
|
1,294
|
|
|
$
|
1,183
|
|
|
$
|
1,299
|
|
|
|
|
|
|
|
|
|
||||||||
100% Operating Data
|
|
|
|
|
|
|
|
||||||||
Ore milled (metric tons per day):
a
|
|
|
|
|
|
|
|
||||||||
Grasberg open pit
|
134,200
|
|
|
50,700
|
|
|
121,200
|
|
|
58,200
|
|
||||
DOZ underground mine
b
|
42,700
|
|
|
50,500
|
|
|
45,800
|
|
|
50,400
|
|
||||
Big Gossan underground mine
c
|
—
|
|
|
1,700
|
|
|
—
|
|
|
1,800
|
|
||||
Total
|
176,900
|
|
|
102,900
|
|
|
167,000
|
|
|
110,400
|
|
||||
Average ore grades:
|
|
|
|
|
|
|
|
||||||||
Copper (percent)
|
0.67
|
|
|
0.73
|
|
|
0.63
|
|
|
0.72
|
|
||||
Gold (grams per metric ton)
|
0.86
|
|
|
0.65
|
|
|
0.78
|
|
|
0.72
|
|
||||
Recovery rates (percent):
|
|
|
|
|
|
|
|
||||||||
Copper
|
90.6
|
|
|
89.0
|
|
|
90.6
|
|
|
88.7
|
|
||||
Gold
|
83.5
|
|
|
76.3
|
|
|
83.9
|
|
|
78.1
|
|
||||
Production (recoverable):
|
|
|
|
|
|
|
|
||||||||
Copper (millions of pounds)
|
205
|
|
|
125
|
|
|
359
|
|
|
269
|
|
||||
Gold (thousands of ounces)
|
360
|
|
|
142
|
|
|
615
|
|
|
351
|
|
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.
|
Production from the Big Gossan underground mine is expected to restart in the second half of 2016 and ramp up to 7,000 metric tons of ore per day in 2018.
|
|
Three Months Ended
|
|
Three Months Ended
|
||||||||||||||||||||
|
June 30, 2015
|
|
June 30, 2014
|
||||||||||||||||||||
|
By-Product Method
|
|
Co-Product Method
|
|
By-Product Method
|
|
Co-Product Method
|
||||||||||||||||
|
|
Copper
|
|
Gold
|
|
|
Copper
|
|
Gold
|
||||||||||||||
Revenues, excluding adjustments
|
$
|
2.61
|
|
|
$
|
2.61
|
|
|
$
|
1,173
|
|
|
$
|
3.19
|
|
|
$
|
3.19
|
|
|
$
|
1,294
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Site production and delivery, before net noncash and other costs shown below
|
2.26
|
|
|
1.25
|
|
|
560
|
|
|
3.86
|
|
a
|
2.59
|
|
|
1,050
|
|
||||||
Gold and silver credits
|
(2.13
|
)
|
|
—
|
|
|
—
|
|
|
(1.57
|
)
|
|
—
|
|
|
—
|
|
||||||
Treatment charges
|
0.32
|
|
|
0.18
|
|
|
79
|
|
|
0.26
|
|
|
0.17
|
|
|
70
|
|
||||||
Export duties
|
0.18
|
|
|
0.10
|
|
|
45
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Royalty on metals
|
0.18
|
|
b
|
0.10
|
|
|
45
|
|
|
0.11
|
|
|
0.08
|
|
|
31
|
|
||||||
Unit net cash costs
|
0.81
|
|
|
1.63
|
|
|
729
|
|
|
2.66
|
|
|
2.84
|
|
|
1,151
|
|
||||||
Depreciation and amortization
|
0.40
|
|
|
0.22
|
|
|
100
|
|
|
0.47
|
|
|
0.31
|
|
|
127
|
|
||||||
Noncash and other costs, net
|
0.04
|
|
|
0.02
|
|
|
10
|
|
|
0.55
|
|
a
|
0.37
|
|
|
151
|
|
||||||
Total unit costs
|
1.25
|
|
|
1.87
|
|
|
839
|
|
|
3.68
|
|
|
3.52
|
|
|
1,429
|
|
||||||
Revenue adjustments, primarily for pricing on prior period open sales
|
(0.02
|
)
|
|
(0.02
|
)
|
|
7
|
|
|
0.09
|
|
|
0.09
|
|
|
5
|
|
||||||
PT Smelting intercompany (loss) profit
|
(0.02
|
)
|
|
(0.01
|
)
|
|
(5
|
)
|
|
0.03
|
|
|
0.02
|
|
|
9
|
|
||||||
Gross profit (loss) per pound/ounce
|
$
|
1.32
|
|
|
$
|
0.71
|
|
|
$
|
336
|
|
|
$
|
(0.37
|
)
|
|
$
|
(0.22
|
)
|
|
$
|
(121
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Copper sales (millions of recoverable pounds)
|
196
|
|
|
196
|
|
|
|
|
117
|
|
|
117
|
|
|
|
||||||||
Gold sales (thousands of recoverable ounces)
|
|
|
|
|
346
|
|
|
|
|
|
|
135
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Six Months Ended
|
|
Six Months Ended
|
||||||||||||||||||||
|
June 30, 2015
|
|
June 30, 2014
|
||||||||||||||||||||
|
By-Product Method
|
|
Co-Product Method
|
|
By-Product Method
|
|
Co-Product Method
|
||||||||||||||||
|
|
Copper
|
|
Gold
|
|
|
Copper
|
|
Gold
|
||||||||||||||
Revenues, excluding adjustments
|
$
|
2.66
|
|
|
$
|
2.66
|
|
|
$
|
1,183
|
|
|
$
|
3.15
|
|
|
$
|
3.15
|
|
|
$
|
1,299
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Site production and delivery, before net noncash and other costs shown below
|
2.51
|
|
|
1.41
|
|
|
626
|
|
|
3.60
|
|
a
|
2.31
|
|
|
950
|
|
||||||
Gold and silver credits
|
(2.11
|
)
|
|
—
|
|
|
—
|
|
|
(1.85
|
)
|
|
—
|
|
|
—
|
|
||||||
Treatment charges
|
0.31
|
|
|
0.17
|
|
|
77
|
|
|
0.25
|
|
|
0.16
|
|
|
65
|
|
||||||
Export duties
|
0.16
|
|
|
0.09
|
|
|
41
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Royalty on metals
|
0.17
|
|
b
|
0.10
|
|
|
42
|
|
|
0.12
|
|
|
0.07
|
|
|
31
|
|
||||||
Unit net cash costs
|
1.04
|
|
|
1.77
|
|
|
786
|
|
|
2.12
|
|
|
2.54
|
|
|
1,046
|
|
||||||
Depreciation and amortization
|
0.42
|
|
|
0.24
|
|
|
106
|
|
|
0.45
|
|
|
0.29
|
|
|
120
|
|
||||||
Noncash and other costs, net
|
0.04
|
|
|
0.02
|
|
|
10
|
|
|
0.61
|
|
a
|
0.39
|
|
|
161
|
|
||||||
Total unit costs
|
1.50
|
|
|
2.03
|
|
|
902
|
|
|
3.18
|
|
|
3.22
|
|
|
1,327
|
|
||||||
Revenue adjustments, primarily for pricing on prior period open sales
|
(0.15
|
)
|
|
(0.15
|
)
|
|
14
|
|
|
(0.24
|
)
|
|
(0.24
|
)
|
|
59
|
|
||||||
PT Smelting intercompany profit
|
0.01
|
|
|
0.01
|
|
|
2
|
|
|
0.26
|
|
|
0.16
|
|
|
68
|
|
||||||
Gross profit (loss) per pound/ounce
|
$
|
1.02
|
|
|
$
|
0.49
|
|
|
$
|
297
|
|
|
$
|
(0.01
|
)
|
|
$
|
(0.15
|
)
|
|
$
|
99
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Copper sales (millions of recoverable pounds)
|
351
|
|
|
351
|
|
|
|
|
226
|
|
|
226
|
|
|
|
||||||||
Gold sales (thousands of recoverable ounces)
|
|
|
|
|
606
|
|
|
|
|
|
|
297
|
|
a.
|
Fixed costs totaling $0.48 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 are excluded from site production and delivery and included in net noncash and other costs for the second quarter and first six months of 2014.
|
b.
|
Includes $0.07 per pound of copper for the second quarter and first six months of 2015 associated with PT-FI's increased royalty rates.
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
June 30,
|
|
June 30,
|
||||||||||||
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||
Copper
(recoverable)
|
|
|
|
|
|
|
|
||||||||
Production (millions of pounds)
|
115
|
|
|
114
|
|
|
231
|
|
|
223
|
|
||||
Sales (millions of pounds)
|
104
|
|
|
118
|
|
|
237
|
|
|
202
|
|
||||
Average realized price per pound
a
|
$
|
2.63
|
|
|
$
|
3.08
|
|
|
$
|
2.66
|
|
|
$
|
3.08
|
|
|
|
|
|
|
|
|
|
||||||||
Cobalt
(contained)
|
|
|
|
|
|
|
|
||||||||
Production (millions of pounds)
|
9
|
|
|
7
|
|
|
16
|
|
|
14
|
|
||||
Sales (millions of pounds)
|
8
|
|
|
7
|
|
|
16
|
|
|
15
|
|
||||
Average realized price per pound
|
$
|
9.27
|
|
|
$
|
9.58
|
|
|
$
|
9.23
|
|
|
$
|
9.29
|
|
|
|
|
|
|
|
|
|
||||||||
Ore milled (metric tons per day)
|
15,300
|
|
|
15,200
|
|
|
14,900
|
|
|
14,800
|
|
||||
Average ore grades (percent):
|
|
|
|
|
|
|
|
||||||||
Copper
|
4.02
|
|
|
4.08
|
|
|
4.18
|
|
|
4.07
|
|
||||
Cobalt
|
0.44
|
|
|
0.34
|
|
|
0.40
|
|
|
0.33
|
|
||||
Copper recovery rate (percent)
|
93.9
|
|
|
92.7
|
|
|
93.9
|
|
|
93.7
|
|
a.
|
Includes point-of-sale transportation costs as negotiated in customer contracts.
|
|
Three Months Ended
|
|
Three Months Ended
|
||||||||||||||||||||
|
June 30, 2015
|
|
June 30, 2014
|
||||||||||||||||||||
|
By-Product Method
|
|
Co-Product Method
|
|
By-Product Method
|
|
Co-Product Method
|
||||||||||||||||
|
|
Copper
|
|
Cobalt
|
|
|
Copper
|
|
Cobalt
|
||||||||||||||
Revenues, excluding adjustments
a
|
$
|
2.63
|
|
|
$
|
2.63
|
|
|
$
|
9.27
|
|
|
$
|
3.08
|
|
|
$
|
3.08
|
|
|
$
|
9.58
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Site production and delivery, before net noncash and other costs shown below
|
1.54
|
|
|
1.35
|
|
|
5.48
|
|
|
1.46
|
|
|
1.35
|
|
|
5.22
|
|
||||||
Cobalt credits
b
|
(0.53
|
)
|
|
—
|
|
|
—
|
|
|
(0.34
|
)
|
|
—
|
|
|
—
|
|
||||||
Royalty on metals
|
0.06
|
|
|
0.05
|
|
|
0.16
|
|
|
0.06
|
|
|
0.06
|
|
|
0.15
|
|
||||||
Unit net cash costs
|
1.07
|
|
|
1.40
|
|
|
5.64
|
|
|
1.18
|
|
|
1.41
|
|
|
5.37
|
|
||||||
Depreciation, depletion and amortization
|
0.55
|
|
|
0.43
|
|
|
1.42
|
|
|
0.54
|
|
|
0.46
|
|
|
1.30
|
|
||||||
Noncash and other costs, net
|
0.03
|
|
|
0.03
|
|
|
0.10
|
|
|
0.03
|
|
|
0.03
|
|
|
0.08
|
|
||||||
Total unit costs
|
1.65
|
|
|
1.86
|
|
|
7.16
|
|
|
1.75
|
|
|
1.90
|
|
|
6.75
|
|
||||||
Revenue adjustments, primarily for pricing on prior period open sales
|
0.02
|
|
|
0.02
|
|
|
0.50
|
|
|
—
|
|
|
—
|
|
|
(0.19
|
)
|
||||||
Gross profit per pound
|
$
|
1.00
|
|
|
$
|
0.79
|
|
|
$
|
2.61
|
|
|
$
|
1.33
|
|
|
$
|
1.18
|
|
|
$
|
2.64
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Copper sales (millions of recoverable pounds)
|
104
|
|
|
104
|
|
|
|
|
118
|
|
|
118
|
|
|
|
||||||||
Cobalt sales (millions of contained pounds)
|
|
|
|
|
8
|
|
|
|
|
|
|
7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Six Months Ended
|
|
Six Months Ended
|
||||||||||||||||||||
|
June 30, 2015
|
|
June 30, 2014
|
||||||||||||||||||||
|
By-Product Method
|
|
Co-Product Method
|
|
By-Product Method
|
|
Co-Product Method
|
||||||||||||||||
|
|
Copper
|
|
Cobalt
|
|
|
Copper
|
|
Cobalt
|
||||||||||||||
Revenues, excluding adjustments
a
|
$
|
2.66
|
|
|
$
|
2.66
|
|
|
$
|
9.23
|
|
|
$
|
3.08
|
|
|
$
|
3.08
|
|
|
$
|
9.29
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Site production and delivery, before net noncash and other costs shown below
|
1.56
|
|
|
1.37
|
|
|
5.54
|
|
|
1.47
|
|
|
1.30
|
|
|
5.19
|
|
||||||
Cobalt credits
b
|
(0.44
|
)
|
|
—
|
|
|
—
|
|
|
(0.48
|
)
|
|
—
|
|
|
—
|
|
||||||
Royalty on metals
|
0.06
|
|
|
0.05
|
|
|
0.15
|
|
|
0.07
|
|
|
0.06
|
|
|
0.16
|
|
||||||
Unit net cash costs
|
1.18
|
|
|
1.42
|
|
|
5.69
|
|
|
1.06
|
|
|
1.36
|
|
|
5.35
|
|
||||||
Depreciation, depletion and amortization
|
0.55
|
|
|
0.46
|
|
|
1.31
|
|
|
0.57
|
|
|
0.49
|
|
|
1.03
|
|
||||||
Noncash and other costs, net
|
0.03
|
|
|
0.03
|
|
|
0.08
|
|
|
0.05
|
|
|
0.04
|
|
|
0.09
|
|
||||||
Total unit costs
|
1.76
|
|
|
1.91
|
|
|
7.08
|
|
|
1.68
|
|
|
1.89
|
|
|
6.47
|
|
||||||
Revenue adjustments, primarily for pricing on prior period open sales
|
(0.03
|
)
|
|
(0.03
|
)
|
|
(0.04
|
)
|
|
(0.01
|
)
|
|
(0.01
|
)
|
|
0.13
|
|
||||||
Gross profit per pound
|
$
|
0.87
|
|
|
$
|
0.72
|
|
|
$
|
2.11
|
|
|
$
|
1.39
|
|
|
$
|
1.18
|
|
|
$
|
2.95
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Copper sales (millions of recoverable pounds)
|
237
|
|
|
237
|
|
|
|
|
202
|
|
|
202
|
|
|
|
||||||||
Cobalt sales (millions of contained pounds)
|
|
|
|
|
16
|
|
|
|
|
|
|
15
|
|
a.
|
Includes point-of-sale transportation costs as negotiated in customer contracts.
|
b.
|
Net of cobalt downstream processing and freight costs.
|
|
|
Three Months Ended
|
|
Six Months Ended
|
|
||||||||||||
|
|
June 30,
|
|
June 30,
|
|
||||||||||||
|
|
2015
|
|
2014
a
|
|
2015
|
|
2014
a
|
|
||||||||
Sales Volumes
|
|
|
|
|
|
|
|
|
|
||||||||
Oil (MMBbls)
|
|
8.6
|
|
|
11.7
|
|
|
17.0
|
|
|
23.5
|
|
|
||||
Natural gas (Bcf)
|
|
23.5
|
|
|
20.3
|
|
|
45.3
|
|
|
39.8
|
|
|
||||
NGLs (MMBbls)
|
|
0.6
|
|
|
1.0
|
|
|
1.1
|
|
|
2.1
|
|
|
||||
MMBOE
|
|
13.1
|
|
|
16.0
|
|
|
25.6
|
|
|
32.2
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
||||||||
Average Realized Prices
b
|
|
|
|
|
|
|
|
|
|
||||||||
Oil (per barrel)
|
|
$
|
67.61
|
|
|
$
|
95.50
|
|
|
$
|
62.13
|
|
|
$
|
94.63
|
|
|
Natural gas
(per MMBtu)
|
|
$
|
2.66
|
|
|
$
|
4.44
|
|
|
$
|
2.75
|
|
|
$
|
4.55
|
|
|
NGLs (per barrel)
|
|
$
|
20.50
|
|
|
$
|
38.79
|
|
|
$
|
21.71
|
|
|
$
|
42.35
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Gross (Loss) Profit per BOE
|
|
|
|
|
|
|
|
|
|
||||||||
Realized revenues
b
|
|
$
|
50.04
|
|
|
$
|
77.53
|
|
|
$
|
46.95
|
|
|
$
|
77.37
|
|
|
Less: cash production costs
b
|
|
19.04
|
|
|
19.57
|
|
|
19.62
|
|
|
19.03
|
|
|
||||
Cash operating margin
b
|
|
31.00
|
|
|
57.96
|
|
|
27.33
|
|
|
58.34
|
|
|
||||
Less: depreciation, depletion and amortization
|
|
36.99
|
|
|
38.39
|
|
|
39.59
|
|
|
38.30
|
|
|
||||
Less: impairment of oil and gas properties
|
|
204.91
|
|
|
—
|
|
|
225.89
|
|
|
—
|
|
|
||||
Less: accretion and other costs
|
|
2.46
|
|
|
0.94
|
|
|
2.39
|
|
|
0.87
|
|
|
||||
Plus: net noncash mark-to-market (losses) gains on derivative contracts
|
|
(7.26
|
)
|
|
(0.44
|
)
|
|
(5.60
|
)
|
|
0.23
|
|
|
||||
Plus: other net adjustments
|
|
0.61
|
|
|
0.04
|
|
|
0.34
|
|
|
0.04
|
|
|
||||
Gross (loss) profit
|
|
$
|
(220.01
|
)
|
|
$
|
18.23
|
|
|
$
|
(245.80
|
)
|
|
$
|
19.44
|
|
|
a.
|
The 2014 periods include results from the Eagle Ford field through June 19, 2014. Eagle Ford had sales volumes totaling 4.0 MMBOE for second-quarter 2014 and 8.7 MMBOE for the first six months of 2014; excluding Eagle Ford, oil and gas cash production costs were $21.66 per BOE for second-quarter 2014 and $21.29 per BOE for the first six months of 2014.
|
b.
|
Cash operating margin for our oil and gas operations reflects realized revenues less cash production costs. Realized revenues exclude noncash mark-to-market adjustments on derivative contracts. For reconciliations of realized revenues (including average realized prices 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."
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||
|
June 30,
|
|
June 30,
|
||||||||
|
2015
|
|
2014
|
|
2015
|
|
2014
a
|
||||
Sales Volumes (MBOE per day):
|
|
|
|
|
|
|
|
||||
GOM
a
|
80
|
|
|
75
|
|
|
77
|
|
|
73
|
|
California
|
38
|
|
|
39
|
|
|
39
|
|
|
39
|
|
Haynesville/Madden/Other
|
26
|
|
|
18
|
|
|
26
|
|
|
18
|
|
Eagle Ford
b
|
—
|
|
|
44
|
|
|
—
|
|
|
48
|
|
Total oil and gas operations
|
144
|
|
|
176
|
|
|
142
|
|
|
178
|
|
a.
|
Includes sales from properties on the GOM Shelf and in the Deepwater GOM.
|
b.
|
FM O&G completed the sale of Eagle Ford in June 2014.
|
|
June 30, 2015
|
|
December 31, 2014
|
||||
Cash at domestic companies
|
$
|
29
|
|
|
$
|
78
|
|
Cash at international operations
|
437
|
|
|
386
|
|
||
Total consolidated cash and cash equivalents
|
466
|
|
|
464
|
|
||
Less: noncontrolling interests’ share
|
(119
|
)
|
|
(91
|
)
|
||
Cash, net of noncontrolling interests’ share
|
347
|
|
|
373
|
|
||
Less: withholding taxes and other
|
(19
|
)
|
|
(16
|
)
|
||
Net cash available
|
$
|
328
|
|
|
$
|
357
|
|
|
June 30, 2015
|
|
December 31, 2014
|
|
|||||||||
|
|
|
Weighted-
|
|
|
|
Weighted-
|
|
|||||
|
|
|
Average
|
|
|
|
Average
|
|
|||||
|
|
|
Interest Rate
|
|
|
|
Interest Rate
|
|
|||||
FCX Senior Notes
|
$
|
11.9
|
|
|
3.8%
|
|
$
|
12.0
|
|
|
3.8
|
%
|
|
FCX Term Loan
|
3.0
|
|
|
1.9%
|
|
3.1
|
|
|
1.7
|
%
|
|
||
FM O&G Senior Notes
|
2.6
|
|
|
6.6%
|
|
2.6
|
|
|
6.6
|
%
|
|
||
Cerro Verde Term Loan
|
1.3
|
|
a
|
2.1%
|
|
0.4
|
|
|
2.1
|
%
|
|
||
Other FCX debt
|
2.1
|
|
b
|
2.7%
|
|
0.9
|
|
|
3.9
|
%
|
|
||
Total debt
|
$
|
20.9
|
|
|
3.6%
|
|
$
|
19.0
|
|
|
3.8
|
%
|
|
|
|
|
|
|
|
|
|
|
a.
|
At June 30, 2015, Cerro Verde had $1.3 billion of borrowings outstanding and no letters of credit issued under its
$1.8 billion
senior unsecured credit facility to fund a portion of its expansion project (see "Operations - South America Mining") and for Cerro Verde's general corporate purposes.
|
b.
|
At June 30, 2015, we had
$985 million
of borrowings outstanding and
$42 million
in letters of credit issued under our $4 billion revolving credit facility. We also have uncommitted and short-term lines of credit with certain financial institutions that are unsecured, which have terms and pricing that are generally more favorable than our revolving credit facility. At
June 30, 2015
, there was
$410 million
of borrowings drawn on these lines of credit.
|
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 gold and silver product revenues and production costs.
|
c.
|
Includes charges totaling
$11 million
($0.02 per pound) for LCM inventory adjustments.
|
d.
|
Represents the combined total for all other mining operations and the related eliminations, as presented in Note
10
.
|
e.
|
Includes impairment of oil and gas properties of
$2.7 billion
.
|
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 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
10
.
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Six Months Ended June 30, 2015
|
|
|
|
||||||||||||||||
(In millions)
|
By-Product
|
|
Co-Product Method
|
||||||||||||||||
|
Method
|
|
Copper
|
|
Molybdenum
a
|
|
Other
b
|
|
Total
|
||||||||||
Revenues, excluding adjustments
|
$
|
2,612
|
|
|
$
|
2,612
|
|
|
$
|
162
|
|
|
$
|
54
|
|
|
$
|
2,828
|
|
Site production and delivery, before net noncash
and other costs shown below
|
1,715
|
|
|
1,605
|
|
|
122
|
|
|
41
|
|
|
1,768
|
|
|||||
By-product credits
|
(163
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Treatment charges
|
121
|
|
|
118
|
|
|
—
|
|
|
3
|
|
|
121
|
|
|||||
Net cash costs
|
1,673
|
|
|
1,723
|
|
|
122
|
|
|
44
|
|
|
1,889
|
|
|||||
Depreciation, depletion and amortization
|
270
|
|
|
254
|
|
|
11
|
|
|
5
|
|
|
270
|
|
|||||
Noncash and other costs, net
|
77
|
|
c
|
76
|
|
|
1
|
|
|
—
|
|
|
77
|
|
|||||
Total costs
|
2,020
|
|
|
2,053
|
|
|
134
|
|
|
49
|
|
|
2,236
|
|
|||||
Revenue adjustments, primarily for pricing
on prior period open sales
|
(28
|
)
|
|
(28
|
)
|
|
—
|
|
|
—
|
|
|
(28
|
)
|
|||||
Gross profit
|
$
|
564
|
|
|
$
|
531
|
|
|
$
|
28
|
|
|
$
|
5
|
|
|
$
|
564
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Copper sales (millions of recoverable pounds)
|
956
|
|
|
956
|
|
|
|
|
|
|
|
||||||||
Molybdenum sales (millions of recoverable pounds)
a
|
|
|
|
|
19
|
|
|
|
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Gross profit per pound of copper/molybdenum:
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Revenues, excluding adjustments
|
$
|
2.73
|
|
|
$
|
2.73
|
|
|
$
|
8.28
|
|
|
|
|
|
||||
Site production and delivery, before net noncash
|
|
|
|
|
|
|
|
|
|
||||||||||
and other costs shown below
|
1.79
|
|
|
1.68
|
|
|
6.24
|
|
|
|
|
|
|||||||
By-product credits
|
(0.17
|
)
|
|
—
|
|
|
—
|
|
|
|
|
|
|||||||
Treatment charges
|
0.13
|
|
|
0.12
|
|
|
—
|
|
|
|
|
|
|||||||
Unit net cash costs
|
1.75
|
|
|
1.80
|
|
|
6.24
|
|
|
|
|
|
|||||||
Depreciation, depletion and amortization
|
0.28
|
|
|
0.27
|
|
|
0.58
|
|
|
|
|
|
|||||||
Noncash and other costs, net
|
0.08
|
|
c
|
0.08
|
|
|
0.06
|
|
|
|
|
|
|||||||
Total unit costs
|
2.11
|
|
|
2.15
|
|
|
6.88
|
|
|
|
|
|
|||||||
Revenue adjustments, primarily for pricing
|
|
|
|
|
|
|
|
|
|
||||||||||
on prior period open sales
|
(0.03
|
)
|
|
(0.03
|
)
|
|
—
|
|
|
|
|
|
|||||||
Gross profit per pound
|
$
|
0.59
|
|
|
$
|
0.55
|
|
|
$
|
1.40
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Reconciliation to Amounts Reported
|
|
|
|
|
|
|
|
|
|
||||||||||
(In millions)
|
Revenues
|
|
Production and Delivery
|
|
Depreciation, Depletion and Amortization
|
|
|
|
|
||||||||||
Totals presented above
|
$
|
2,828
|
|
|
$
|
1,768
|
|
|
$
|
270
|
|
|
|
|
|
||||
Treatment charges
|
—
|
|
|
121
|
|
|
—
|
|
|
|
|
|
|||||||
Noncash and other costs, net
|
—
|
|
|
77
|
|
c
|
—
|
|
|
|
|
|
|||||||
Revenue adjustments, primarily for pricing
on prior period open sales
|
(28
|
)
|
|
—
|
|
|
—
|
|
|
|
|
|
|||||||
Eliminations and other
|
(60
|
)
|
|
(61
|
)
|
|
2
|
|
|
|
|
|
|||||||
North America copper mines
|
2,740
|
|
|
1,905
|
|
|
272
|
|
|
|
|
|
|||||||
Other mining & eliminations
d
|
4,592
|
|
|
3,286
|
|
|
535
|
|
|
|
|
|
|||||||
Total mining
|
7,332
|
|
|
5,191
|
|
|
807
|
|
|
|
|
|
|||||||
U.S. oil & gas operations
|
1,069
|
|
|
564
|
|
|
6,805
|
|
e
|
|
|
|
|||||||
Corporate, other & eliminations
|
—
|
|
|
5
|
|
|
7
|
|
|
|
|
|
|||||||
As reported in FCX’s consolidated financial statements
|
$
|
8,401
|
|
|
$
|
5,760
|
|
|
$
|
7,619
|
|
e
|
|
|
|
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 gold and silver product revenues and production costs.
|
c.
|
Includes charges totaling
$11 million
($0.01 per pound) for LCM inventory adjustments.
|
d.
|
Represents the combined total for all other mining operations and the related eliminations, as presented in Note
10
.
|
e.
|
Includes impairment of oil and gas properties of
$5.8 billion
.
|
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 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
10
.
|
Three Months Ended June 30, 2015
|
|
|
|
|
|
|
|
||||||||
(In millions)
|
By-Product
|
|
Co-Product Method
|
||||||||||||
|
Method
|
|
Copper
|
|
Other
a
|
|
Total
|
||||||||
Revenues, excluding adjustments
|
$
|
479
|
|
|
$
|
479
|
|
|
$
|
14
|
|
|
$
|
493
|
|
Site production and delivery, before net noncash
and other costs shown below
|
314
|
|
|
305
|
|
|
15
|
|
|
320
|
|
||||
By-product credits
|
(8
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Treatment charges
|
30
|
|
|
30
|
|
|
—
|
|
|
30
|
|
||||
Royalty on metals
|
1
|
|
|
1
|
|
|
—
|
|
|
1
|
|
||||
Net cash costs
|
337
|
|
|
336
|
|
|
15
|
|
|
351
|
|
||||
Depreciation, depletion and amortization
|
72
|
|
|
70
|
|
|
2
|
|
|
72
|
|
||||
Noncash and other (credits) costs, net
|
(4
|
)
|
|
(5
|
)
|
|
1
|
|
|
(4
|
)
|
||||
Total costs
|
405
|
|
|
401
|
|
|
18
|
|
|
419
|
|
||||
Revenue adjustments, primarily for pricing
on prior period open sales
|
(8
|
)
|
|
(8
|
)
|
|
—
|
|
|
(8
|
)
|
||||
Gross profit (loss)
|
$
|
66
|
|
|
$
|
70
|
|
|
$
|
(4
|
)
|
|
$
|
66
|
|
|
|
|
|
|
|
|
|
||||||||
Copper sales (millions of recoverable pounds)
|
178
|
|
|
178
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
||||||||
Gross profit per pound of copper:
|
|
|
|
||||||||||||
|
|
|
|
|
|
|
|
||||||||
Revenues, excluding adjustments
|
$
|
2.69
|
|
|
$
|
2.69
|
|
|
|
|
|
||||
Site production and delivery, before net noncash
and other costs shown below
|
1.77
|
|
|
1.72
|
|
|
|
|
|
||||||
By-product credits
|
(0.04
|
)
|
|
—
|
|
|
|
|
|
||||||
Treatment charges
|
0.17
|
|
|
0.17
|
|
|
|
|
|
||||||
Royalty on metals
|
—
|
|
|
—
|
|
|
|
|
|
||||||
Unit net cash costs
|
1.90
|
|
|
1.89
|
|
|
|
|
|
||||||
Depreciation, depletion and amortization
|
0.40
|
|
|
0.39
|
|
|
|
|
|
||||||
Noncash and other (credits) costs, net
|
(0.02
|
)
|
|
(0.03
|
)
|
|
|
|
|
||||||
Total unit costs
|
2.28
|
|
|
2.25
|
|
|
|
|
|
||||||
Revenue adjustments, primarily for pricing
|
|
|
|
|
|
|
|
||||||||
on prior period open sales
|
(0.05
|
)
|
|
(0.05
|
)
|
|
|
|
|
||||||
Gross profit per pound
|
$
|
0.36
|
|
|
$
|
0.39
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Reconciliation to Amounts Reported
|
|
|
|
|
|
|
|
||||||||
(In millions)
|
Revenues
|
|
Production and Delivery
|
|
Depreciation, Depletion and Amortization
|
|
|
||||||||
Totals presented above
|
$
|
493
|
|
|
$
|
320
|
|
|
$
|
72
|
|
|
|
||
Treatment charges
|
(30
|
)
|
|
—
|
|
|
—
|
|
|
|
|||||
Royalty on metals
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
|
|||||
Noncash and other (credits) costs, net
|
—
|
|
|
(4
|
)
|
|
—
|
|
|
|
|||||
Revenue adjustments, primarily for pricing
on prior period open sales
|
(8
|
)
|
|
—
|
|
|
—
|
|
|
|
|||||
Eliminations and other
|
(1
|
)
|
|
(1
|
)
|
|
—
|
|
|
|
|||||
South America mining
|
453
|
|
|
315
|
|
|
72
|
|
|
|
|||||
Other mining & eliminations
b
|
3,226
|
|
|
2,250
|
|
|
330
|
|
|
|
|||||
Total mining
|
3,679
|
|
|
2,565
|
|
|
402
|
|
|
|
|||||
U.S. oil & gas operations
|
569
|
|
|
281
|
|
|
3,171
|
|
c
|
|
|||||
Corporate, other & eliminations
|
—
|
|
|
2
|
|
|
3
|
|
|
|
|||||
As reported in FCX’s consolidated financial statements
|
$
|
4,248
|
|
|
$
|
2,848
|
|
|
$
|
3,576
|
|
c
|
|
a.
|
Includes silver sales of
373 thousand
ounces (
$15.15
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
10
.
|
c.
|
Includes impairment of oil and gas properties of
$2.7 billion
.
|
Three Months Ended June 30, 2014
|
|
|
|
|
|
|
|
||||||||
(In millions)
|
By-Product
|
|
Co-Product Method
|
||||||||||||
|
Method
|
|
Copper
|
|
Other
a
|
|
Total
|
||||||||
Revenues, excluding adjustments
|
$
|
984
|
|
|
$
|
984
|
|
|
$
|
75
|
|
|
$
|
1,059
|
|
Site production and delivery, before net noncash
and other costs shown below
|
511
|
|
|
474
|
|
|
41
|
|
|
515
|
|
||||
By-product credits
|
(71
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Treatment charges
|
55
|
|
|
55
|
|
|
—
|
|
|
55
|
|
||||
Royalty on metals
|
3
|
|
|
3
|
|
|
—
|
|
|
3
|
|
||||
Net cash costs
|
498
|
|
b
|
532
|
|
|
41
|
|
|
573
|
|
||||
Depreciation, depletion and amortization
|
95
|
|
|
90
|
|
|
5
|
|
|
95
|
|
||||
Noncash and other costs, net
|
23
|
|
|
19
|
|
|
4
|
|
|
23
|
|
||||
Total costs
|
616
|
|
|
641
|
|
|
50
|
|
|
691
|
|
||||
Revenue adjustments, primarily for pricing
on prior period open sales
|
32
|
|
|
32
|
|
|
—
|
|
|
32
|
|
||||
Gross profit
|
$
|
400
|
|
|
$
|
375
|
|
|
$
|
25
|
|
|
$
|
400
|
|
|
|
|
|
|
|
|
|
||||||||
Copper sales (millions of recoverable pounds)
|
310
|
|
b
|
310
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
||||||||
Gross profit per pound of copper:
|
|
|
|
||||||||||||
|
|
|
|
|
|
|
|
||||||||
Revenues, excluding adjustments
|
$
|
3.17
|
|
|
$
|
3.17
|
|
|
|
|
|
||||
Site production and delivery, before net noncash
and other costs shown below
|
1.64
|
|
|
1.52
|
|
|
|
|
|
||||||
By-product credits
|
(0.23
|
)
|
|
—
|
|
|
|
|
|
||||||
Treatment charges
|
0.18
|
|
|
0.18
|
|
|
|
|
|
||||||
Royalty on metals
|
0.01
|
|
|
0.01
|
|
|
|
|
|
||||||
Unit net cash costs
|
1.60
|
|
b
|
1.71
|
|
|
|
|
|
||||||
Depreciation, depletion and amortization
|
0.30
|
|
|
0.29
|
|
|
|
|
|
||||||
Noncash and other costs, net
|
0.08
|
|
|
0.06
|
|
|
|
|
|
||||||
Total unit costs
|
1.98
|
|
|
2.06
|
|
|
|
|
|
||||||
Revenue adjustments, primarily for pricing
|
|
|
|
|
|
|
|
||||||||
on prior period open sales
|
0.10
|
|
|
0.10
|
|
|
|
|
|
||||||
Gross profit per pound
|
$
|
1.29
|
|
|
$
|
1.21
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Reconciliation to Amounts Reported
|
|
|
|
|
|
|
|
||||||||
(In millions)
|
Revenues
|
|
Production and Delivery
|
|
Depreciation, Depletion and Amortization
|
|
|
||||||||
Totals presented above
|
$
|
1,059
|
|
|
$
|
515
|
|
|
$
|
95
|
|
|
|
||
Treatment charges
|
(55
|
)
|
|
—
|
|
|
—
|
|
|
|
|||||
Royalty on metals
|
(3
|
)
|
|
—
|
|
|
—
|
|
|
|
|||||
Noncash and other costs, net
|
—
|
|
|
23
|
|
|
—
|
|
|
|
|||||
Revenue adjustments, primarily for pricing
on prior period open sales
|
32
|
|
|
—
|
|
|
—
|
|
|
|
|||||
Eliminations and other
|
(2
|
)
|
|
(8
|
)
|
|
—
|
|
|
|
|||||
South America mining
|
1,031
|
|
|
530
|
|
|
95
|
|
|
|
|||||
Other mining & eliminations
c
|
3,255
|
|
|
2,224
|
|
|
299
|
|
|
|
|||||
Total mining
|
4,286
|
|
|
2,754
|
|
|
394
|
|
|
|
|||||
U.S. oil & gas operations
|
1,236
|
|
|
329
|
|
|
616
|
|
|
|
|||||
Corporate, other & eliminations
|
—
|
|
|
(1
|
)
|
|
3
|
|
|
|
|||||
As reported in FCX’s consolidated financial statements
|
$
|
5,522
|
|
|
$
|
3,082
|
|
|
$
|
1,013
|
|
|
|
a.
|
Includes gold sales of
20 thousand
ounces (
$1,302
per ounce average realized price) and silver sales of
748 thousand
ounces (
$18.83
per ounce average realized price). Also reflects sales of molybdenum produced by Cerro Verde to our molybdenum sales company at market-based pricing.
|
|
Net Cash Costs
(in millions)
|
|
Copper Sales
(millions of recoverable pounds)
|
|
Unit Net
Cash Costs
(per pound
of copper)
|
|
|||||
Presented above
|
$
|
498
|
|
|
310
|
|
|
$
|
1.60
|
|
|
Less: Candelaria and Ojos del Salado
|
140
|
|
|
80
|
|
|
|
|
|||
|
$
|
358
|
|
|
230
|
|
|
$
|
1.55
|
|
|
c.
|
Represents the combined total for all other mining operations and the related eliminations, as presented in Note
10
.
|
|
|
|
|
|
|
|
|
||||||||
Six Months Ended June 30, 2015
|
|
|
|
|
|
|
|
||||||||
(In millions)
|
By-Product
|
|
Co-Product Method
|
||||||||||||
|
Method
|
|
Copper
|
|
Other
a
|
|
Total
|
||||||||
Revenues, excluding adjustments
|
$
|
1,013
|
|
|
$
|
1,013
|
|
|
$
|
35
|
|
|
$
|
1,048
|
|
Site production and delivery, before net noncash
and other costs shown below
|
664
|
|
|
642
|
|
|
33
|
|
|
675
|
|
||||
By-product credits
|
(24
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Treatment charges
|
64
|
|
|
64
|
|
|
—
|
|
|
64
|
|
||||
Royalty on metals
|
1
|
|
|
1
|
|
|
—
|
|
|
1
|
|
||||
Net cash costs
|
705
|
|
|
707
|
|
|
33
|
|
|
740
|
|
||||
Depreciation, depletion and amortization
|
147
|
|
|
143
|
|
|
4
|
|
|
147
|
|
||||
Noncash and other costs, net
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Total costs
|
852
|
|
|
850
|
|
|
37
|
|
|
887
|
|
||||
Revenue adjustments, primarily for pricing
on prior period open sales
|
(31
|
)
|
|
(31
|
)
|
|
—
|
|
|
(31
|
)
|
||||
Gross profit (loss)
|
$
|
130
|
|
|
$
|
132
|
|
|
$
|
(2
|
)
|
|
$
|
130
|
|
|
|
|
|
|
|
|
|
||||||||
Copper sales (millions of recoverable pounds)
|
378
|
|
|
378
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
||||||||
Gross profit per pound of copper:
|
|
|
|
||||||||||||
|
|
|
|
|
|
|
|
||||||||
Revenues, excluding adjustments
|
$
|
2.68
|
|
|
$
|
2.68
|
|
|
|
|
|
||||
Site production and delivery, before net noncash
|
|
|
|
|
|
|
|
||||||||
and other costs shown below
|
1.76
|
|
|
1.70
|
|
|
|
|
|
||||||
By-product credits
|
(0.06
|
)
|
|
—
|
|
|
|
|
|
||||||
Treatment charges
|
0.17
|
|
|
0.17
|
|
|
|
|
|
||||||
Royalty on metals
|
—
|
|
|
—
|
|
|
|
|
|
||||||
Unit net cash costs
|
1.87
|
|
|
1.87
|
|
|
|
|
|
||||||
Depreciation, depletion and amortization
|
0.39
|
|
|
0.38
|
|
|
|
|
|
||||||
Noncash and other costs, net
|
—
|
|
|
—
|
|
|
|
|
|
||||||
Total unit costs
|
2.26
|
|
|
2.25
|
|
|
|
|
|
||||||
Revenue adjustments, primarily for pricing
|
|
|
|
|
|
|
|
||||||||
on prior period open sales
|
(0.08
|
)
|
|
(0.08
|
)
|
|
|
|
|
||||||
Gross profit per pound
|
$
|
0.34
|
|
|
$
|
0.35
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Reconciliation to Amounts Reported
|
|
|
|
|
|
|
|
||||||||
(In millions)
|
Revenues
|
|
Production and Delivery
|
|
Depreciation, Depletion and Amortization
|
|
|
||||||||
Totals presented above
|
$
|
1,048
|
|
|
$
|
675
|
|
|
$
|
147
|
|
|
|
||
Treatment charges
|
(64
|
)
|
|
—
|
|
|
—
|
|
|
|
|||||
Royalty on metals
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
|
|||||
Noncash and other costs, net
|
—
|
|
|
—
|
|
|
—
|
|
|
|
|||||
Revenue adjustments, primarily for pricing
on prior period open sales
|
(31
|
)
|
|
—
|
|
|
—
|
|
|
|
|||||
Eliminations and other
|
(13
|
)
|
|
(15
|
)
|
|
—
|
|
|
|
|||||
South America mining
|
939
|
|
|
660
|
|
|
147
|
|
|
|
|||||
Other mining & eliminations
b
|
6,393
|
|
|
4,531
|
|
|
660
|
|
|
|
|||||
Total mining
|
7,332
|
|
|
5,191
|
|
|
807
|
|
|
|
|||||
U.S. oil & gas operations
|
1,069
|
|
|
564
|
|
|
6,805
|
|
c
|
|
|||||
Corporate, other & eliminations
|
—
|
|
|
5
|
|
|
7
|
|
|
|
|||||
As reported in FCX’s consolidated financial statements
|
$
|
8,401
|
|
|
$
|
5,760
|
|
|
$
|
7,619
|
|
c
|
|
a.
|
Includes silver sales of
759 thousand
ounces (
$14.97
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
10
.
|
c.
|
Includes impairment of oil and gas properties of
$5.8 billion
.
|
|
|
|
|
|
|
|
|
||||||||
Six Months Ended June 30, 2014
|
|
|
|
|
|
|
|
||||||||
(In millions)
|
By-Product
|
|
Co-Product Method
|
||||||||||||
|
Method
|
|
Copper
|
|
Other
a
|
|
Total
|
||||||||
Revenues, excluding adjustments
|
$
|
1,951
|
|
|
$
|
1,951
|
|
|
$
|
159
|
|
|
$
|
2,110
|
|
Site production and delivery, before net noncash
and other costs shown below
|
972
|
|
|
900
|
|
|
81
|
|
|
981
|
|
||||
By-product credits
|
(150
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Treatment charges
|
108
|
|
|
108
|
|
|
—
|
|
|
108
|
|
||||
Royalty on metals
|
3
|
|
|
3
|
|
|
—
|
|
|
3
|
|
||||
Net cash costs
|
933
|
|
b
|
1,011
|
|
|
81
|
|
|
1,092
|
|
||||
Depreciation, depletion and amortization
|
182
|
|
|
170
|
|
|
12
|
|
|
182
|
|
||||
Noncash and other costs, net
|
40
|
|
|
38
|
|
|
2
|
|
|
40
|
|
||||
Total costs
|
1,155
|
|
|
1,219
|
|
|
95
|
|
|
1,314
|
|
||||
Revenue adjustments, primarily for pricing
on prior period open sales
|
(67
|
)
|
|
(67
|
)
|
|
—
|
|
|
(67
|
)
|
||||
Gross profit
|
$
|
729
|
|
|
$
|
665
|
|
|
$
|
64
|
|
|
$
|
729
|
|
|
|
|
|
|
|
|
|
||||||||
Copper sales (millions of recoverable pounds)
|
617
|
|
b
|
617
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
||||||||
Gross profit per pound of copper:
|
|
|
|
||||||||||||
|
|
|
|
|
|
|
|
||||||||
Revenues, excluding adjustments
|
$
|
3.16
|
|
|
$
|
3.16
|
|
|
|
|
|
||||
Site production and delivery, before net noncash
|
|
|
|
|
|
|
|
||||||||
and other costs shown below
|
1.57
|
|
|
1.46
|
|
|
|
|
|
||||||
By-product credits
|
(0.24
|
)
|
|
—
|
|
|
|
|
|
||||||
Treatment charges
|
0.18
|
|
|
0.18
|
|
|
|
|
|
||||||
Royalty on metals
|
—
|
|
|
—
|
|
|
|
|
|
||||||
Unit net cash costs
|
1.51
|
|
b
|
1.64
|
|
|
|
|
|
||||||
Depreciation, depletion and amortization
|
0.29
|
|
|
0.27
|
|
|
|
|
|
||||||
Noncash and other costs, net
|
0.07
|
|
|
0.06
|
|
|
|
|
|
||||||
Total unit costs
|
1.87
|
|
|
1.97
|
|
|
|
|
|
||||||
Revenue adjustments, primarily for pricing
|
|
|
|
|
|
|
|
||||||||
on prior period open sales
|
(0.11
|
)
|
|
(0.11
|
)
|
|
|
|
|
||||||
Gross profit per pound
|
$
|
1.18
|
|
|
$
|
1.08
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Reconciliation to Amounts Reported
|
|
|
|
|
|
|
|
||||||||
(In millions)
|
Revenues
|
|
Production and Delivery
|
|
Depreciation, Depletion and Amortization
|
|
|
||||||||
Totals presented above
|
$
|
2,110
|
|
|
$
|
981
|
|
|
$
|
182
|
|
|
|
||
Treatment charges
|
(108
|
)
|
|
—
|
|
|
—
|
|
|
|
|||||
Royalty on metals
|
(3
|
)
|
|
—
|
|
|
—
|
|
|
|
|||||
Noncash and other costs, net
|
—
|
|
|
40
|
|
|
—
|
|
|
|
|||||
Revenue adjustments, primarily for pricing
on prior period open sales
|
(67
|
)
|
|
—
|
|
|
—
|
|
|
|
|||||
Eliminations and other
|
(3
|
)
|
|
(15
|
)
|
|
—
|
|
|
|
|||||
South America mining
|
1,929
|
|
|
1,006
|
|
|
182
|
|
|
|
|||||
Other mining & eliminations
c
|
6,081
|
|
|
4,174
|
|
|
558
|
|
|
|
|||||
Total mining
|
8,010
|
|
|
5,180
|
|
|
740
|
|
|
|
|||||
U.S. oil & gas operations
|
2,497
|
|
|
640
|
|
|
1,232
|
|
|
|
|||||
Corporate, other & eliminations
|
—
|
|
|
(1
|
)
|
|
7
|
|
|
|
|||||
As reported in FCX’s consolidated financial statements
|
$
|
10,507
|
|
|
$
|
5,819
|
|
|
$
|
1,979
|
|
|
|
a.
|
Includes gold sales of
43 thousand
ounces (
$1,302
per ounce average realized price) and silver sales of
1.5 million
ounces (
$19.34
per ounce average realized price). Also reflects sales of molybdenum produced by Cerro Verde to our molybdenum sales company at market-based pricing.
|
b.
|
Following is a reconciliation of South America mining's unit net cash costs for the first six months of 2014, excluding the Candelaria and Ojos del Salado mines:
|
|
Net Cash Costs
(in millions)
|
|
Copper Sales
(millions of recoverable pounds)
|
|
Unit Net
Cash Costs
(per pound
of copper)
|
|
|||||
Presented above
|
$
|
933
|
|
|
617
|
|
|
$
|
1.51
|
|
|
Less: Candelaria and Ojos del Salado
|
263
|
|
|
174
|
|
|
|
|
|||
|
$
|
670
|
|
|
443
|
|
|
$
|
1.51
|
|
|
a.
|
Includes silver sales of
558 thousand
ounces (
$15.48
per ounce average realized price).
|
b.
|
Represents the combined total for all other mining operations and the related eliminations, as presented in Note
10
.
|
c.
|
Includes impairment of oil and gas properties of
$2.7 billion
.
|
a.
|
Includes silver sales of
367 thousand
ounces (
$19.67
per ounce average realized price).
|
b.
|
Includes $56 million ($0.48 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
10
.
|
a.
|
Includes silver sales of
993 thousand
ounces (
$15.75
per ounce average realized price).
|
b.
|
Represents the combined total for all other mining operations and the related eliminations, as presented in Note
10
.
|
c.
|
Includes impairment of oil and gas properties of
$5.8 billion
.
|
a.
|
Includes silver sales of
700 thousand
ounces (
$19.84
per ounce average realized price).
|
b.
|
Includes $109 million ($0.48 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
10
.
|
Three Months Ended June 30, 2015
|
|
|
|
|
|
|
|
||||||||
(In millions)
|
By-Product
|
|
Co-Product Method
|
||||||||||||
|
Method
|
|
Copper
|
|
Cobalt
|
|
Total
|
||||||||
Revenues, excluding adjustments
a
|
$
|
275
|
|
|
$
|
275
|
|
|
$
|
76
|
|
|
$
|
351
|
|
Site production and delivery, before net noncash
and other costs shown below
|
161
|
|
|
141
|
|
|
45
|
|
|
186
|
|
||||
Cobalt credits
b
|
(55
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Royalty on metals
|
6
|
|
|
5
|
|
|
1
|
|
|
6
|
|
||||
Net cash costs
|
112
|
|
|
146
|
|
|
46
|
|
|
192
|
|
||||
Depreciation, depletion and amortization
|
57
|
|
|
45
|
|
|
12
|
|
|
57
|
|
||||
Noncash and other costs, net
|
4
|
|
|
3
|
|
|
1
|
|
|
4
|
|
||||
Total costs
|
173
|
|
|
194
|
|
|
59
|
|
|
253
|
|
||||
Revenue adjustments, primarily for pricing
on prior period open sales
|
2
|
|
|
2
|
|
|
4
|
|
|
6
|
|
||||
Gross profit
|
$
|
104
|
|
|
$
|
83
|
|
|
$
|
21
|
|
|
$
|
104
|
|
|
|
|
|
|
|
|
|
||||||||
Copper sales (millions of recoverable pounds)
|
104
|
|
|
104
|
|
|
|
|
|
||||||
Cobalt sales (millions of contained pounds)
|
|
|
|
|
8
|
|
|
|
|||||||
|
|
|
|
|
|
|
|
||||||||
Gross profit per pound of copper/cobalt:
|
|
|
|
||||||||||||
|
|
|
|
|
|
|
|
||||||||
Revenues, excluding adjustments
a
|
$
|
2.63
|
|
|
$
|
2.63
|
|
|
$
|
9.27
|
|
|
|
||
Site production and delivery, before net noncash
and other costs shown below
|
1.54
|
|
|
1.35
|
|
|
5.48
|
|
|
|
|||||
Cobalt credits
b
|
(0.53
|
)
|
|
—
|
|
|
—
|
|
|
|
|||||
Royalty on metals
|
0.06
|
|
|
0.05
|
|
|
0.16
|
|
|
|
|||||
Unit net cash costs
|
1.07
|
|
|
1.40
|
|
|
5.64
|
|
|
|
|||||
Depreciation, depletion and amortization
|
0.55
|
|
|
0.43
|
|
|
1.42
|
|
|
|
|||||
Noncash and other costs, net
|
0.03
|
|
|
0.03
|
|
|
0.10
|
|
|
|
|||||
Total unit costs
|
1.65
|
|
|
1.86
|
|
|
7.16
|
|
|
|
|||||
Revenue adjustments, primarily for pricing
|
|
|
|
|
|
|
|
||||||||
on prior period open sales
|
0.02
|
|
|
0.02
|
|
|
0.50
|
|
|
|
|||||
Gross profit per pound
|
$
|
1.00
|
|
|
$
|
0.79
|
|
|
$
|
2.61
|
|
|
|
||
|
|
|
|
|
|
|
|
||||||||
Reconciliation to Amounts Reported
|
|
|
|
|
|
|
|
||||||||
(In millions)
|
Revenues
|
|
Production and Delivery
|
|
Depreciation, Depletion and Amortization
|
|
|
||||||||
Totals presented above
|
$
|
351
|
|
|
$
|
186
|
|
|
$
|
57
|
|
|
|
||
Royalty on metals
|
(6
|
)
|
|
—
|
|
|
—
|
|
|
|
|||||
Noncash and other costs, net
|
—
|
|
|
4
|
|
|
—
|
|
|
|
|||||
Revenue adjustments, primarily for pricing
on prior period open sales
|
6
|
|
|
—
|
|
|
—
|
|
|
|
|||||
Africa mining
|
351
|
|
|
190
|
|
|
57
|
|
|
|
|||||
Other mining & eliminations
c
|
3,328
|
|
|
2,375
|
|
|
345
|
|
|
|
|||||
Total mining
|
3,679
|
|
|
2,565
|
|
|
402
|
|
|
|
|||||
U.S. oil & gas operations
|
569
|
|
|
281
|
|
|
3,171
|
|
d
|
|
|||||
Corporate, other & eliminations
|
—
|
|
|
2
|
|
|
3
|
|
|
|
|||||
As reported in FCX’s consolidated financial statements
|
$
|
4,248
|
|
|
$
|
2,848
|
|
|
$
|
3,576
|
|
d
|
|
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
10
.
|
d.
|
Includes impairment of oil and gas properties of
$2.7 billion
.
|
Three Months Ended June 30, 2014
|
|
|
|
|
|
|
|
||||||||
(In millions)
|
By-Product
|
|
Co-Product Method
|
||||||||||||
|
Method
|
|
Copper
|
|
Cobalt
|
|
Total
|
||||||||
Revenues, excluding adjustments
a
|
$
|
362
|
|
|
$
|
362
|
|
|
$
|
65
|
|
|
$
|
427
|
|
Site production and delivery, before net noncash
and other costs shown below
|
171
|
|
|
159
|
|
|
35
|
|
|
194
|
|
||||
Cobalt credits
b
|
(41
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Royalty on metals
|
8
|
|
|
7
|
|
|
1
|
|
|
8
|
|
||||
Net cash costs
|
138
|
|
|
166
|
|
|
36
|
|
|
202
|
|
||||
Depreciation, depletion and amortization
|
63
|
|
|
54
|
|
|
9
|
|
|
63
|
|
||||
Noncash and other costs, net
|
4
|
|
|
3
|
|
|
1
|
|
|
4
|
|
||||
Total costs
|
205
|
|
|
223
|
|
|
46
|
|
|
269
|
|
||||
Revenue adjustments, primarily for pricing
on prior period open sales
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
(1
|
)
|
||||
Gross profit
|
$
|
157
|
|
|
$
|
139
|
|
|
$
|
18
|
|
|
$
|
157
|
|
|
|
|
|
|
|
|
|
||||||||
Copper sales (millions of recoverable pounds)
|
118
|
|
|
118
|
|
|
|
|
|
||||||
Cobalt sales (millions of contained pounds)
|
|
|
|
|
7
|
|
|
|
|||||||
|
|
|
|
|
|
|
|
||||||||
Gross profit per pound of copper/cobalt:
|
|
|
|
||||||||||||
|
|
|
|
|
|
|
|
||||||||
Revenues, excluding adjustments
a
|
$
|
3.08
|
|
|
$
|
3.08
|
|
|
$
|
9.58
|
|
|
|
||
Site production and delivery, before net noncash
and other costs shown below
|
1.46
|
|
|
1.35
|
|
|
5.22
|
|
|
|
|||||
Cobalt credits
b
|
(0.34
|
)
|
|
—
|
|
|
—
|
|
|
|
|||||
Royalty on metals
|
0.06
|
|
|
0.06
|
|
|
0.15
|
|
|
|
|||||
Unit net cash costs
|
1.18
|
|
|
1.41
|
|
|
5.37
|
|
|
|
|||||
Depreciation, depletion and amortization
|
0.54
|
|
|
0.46
|
|
|
1.30
|
|
|
|
|||||
Noncash and other costs, net
|
0.03
|
|
|
0.03
|
|
|
0.08
|
|
|
|
|||||
Total unit costs
|
1.75
|
|
|
1.90
|
|
|
6.75
|
|
|
|
|||||
Revenue adjustments, primarily for pricing
|
|
|
|
|
|
|
|
||||||||
on prior period open sales
|
—
|
|
|
—
|
|
|
(0.19
|
)
|
|
|
|||||
Gross profit per pound
|
$
|
1.33
|
|
|
$
|
1.18
|
|
|
$
|
2.64
|
|
|
|
||
|
|
|
|
|
|
|
|
||||||||
Reconciliation to Amounts Reported
|
|
|
|
|
|
|
|
||||||||
(In millions)
|
Revenues
|
|
Production and Delivery
|
|
Depreciation, Depletion and Amortization
|
|
|
||||||||
Totals presented above
|
$
|
427
|
|
|
$
|
194
|
|
|
$
|
63
|
|
|
|
||
Royalty on metals
|
(8
|
)
|
|
—
|
|
|
—
|
|
|
|
|||||
Noncash and other costs, net
|
—
|
|
|
4
|
|
|
—
|
|
|
|
|||||
Revenue adjustments, primarily for pricing
on prior period open sales
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
|
|||||
Africa mining
|
418
|
|
|
198
|
|
|
63
|
|
|
|
|||||
Other mining & eliminations
c
|
3,868
|
|
|
2,556
|
|
|
331
|
|
|
|
|||||
Total mining
|
4,286
|
|
|
2,754
|
|
|
394
|
|
|
|
|||||
U.S. oil & gas operations
|
1,236
|
|
|
329
|
|
|
616
|
|
|
|
|||||
Corporate, other & eliminations
|
—
|
|
|
(1
|
)
|
|
3
|
|
|
|
|||||
As reported in FCX’s consolidated financial statements
|
$
|
5,522
|
|
|
$
|
3,082
|
|
|
$
|
1,013
|
|
|
|
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
10
.
|
|
|
|
|
|
|
|
|
||||||||
Six Months Ended June 30, 2015
|
|
|
|
|
|
|
|
||||||||
(In millions)
|
By-Product
|
|
Co-Product Method
|
||||||||||||
|
Method
|
|
Copper
|
|
Cobalt
|
|
Total
|
||||||||
Revenues, excluding adjustments
a
|
$
|
631
|
|
|
$
|
631
|
|
|
$
|
152
|
|
|
$
|
783
|
|
Site production and delivery, before net noncash
and other costs shown below
|
370
|
|
|
325
|
|
|
92
|
|
|
417
|
|
||||
Cobalt credits
b
|
(104
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Royalty on metals
|
14
|
|
|
12
|
|
|
2
|
|
|
14
|
|
||||
Net cash costs
|
280
|
|
|
337
|
|
|
94
|
|
|
431
|
|
||||
Depreciation, depletion and amortization
|
130
|
|
|
109
|
|
|
21
|
|
|
130
|
|
||||
Noncash and other costs, net
|
8
|
|
|
6
|
|
|
2
|
|
|
8
|
|
||||
Total costs
|
418
|
|
|
452
|
|
|
117
|
|
|
569
|
|
||||
Revenue adjustments, primarily for pricing
on prior period open sales
|
(7
|
)
|
|
(7
|
)
|
|
(1
|
)
|
|
(8
|
)
|
||||
Gross profit
|
$
|
206
|
|
|
$
|
172
|
|
|
$
|
34
|
|
|
$
|
206
|
|
|
|
|
|
|
|
|
|
||||||||
Copper sales (millions of recoverable pounds)
|
237
|
|
|
237
|
|
|
|
|
|
||||||
Cobalt sales (millions of contained pounds)
|
|
|
|
|
16
|
|
|
|
|||||||
|
|
|
|
|
|
|
|
||||||||
Gross profit per pound of copper/cobalt:
|
|
|
|
||||||||||||
|
|
|
|
|
|
|
|
||||||||
Revenues, excluding adjustments
a
|
$
|
2.66
|
|
|
$
|
2.66
|
|
|
$
|
9.23
|
|
|
|
||
Site production and delivery, before net noncash
|
|
|
|
|
|
|
|
||||||||
and other costs shown below
|
1.56
|
|
|
1.37
|
|
|
5.54
|
|
|
|
|||||
Cobalt credits
b
|
(0.44
|
)
|
|
—
|
|
|
—
|
|
|
|
|||||
Royalty on metals
|
0.06
|
|
|
0.05
|
|
|
0.15
|
|
|
|
|||||
Unit net cash costs
|
1.18
|
|
|
1.42
|
|
|
5.69
|
|
|
|
|||||
Depreciation, depletion and amortization
|
0.55
|
|
|
0.46
|
|
|
1.31
|
|
|
|
|||||
Noncash and other costs, net
|
0.03
|
|
|
0.03
|
|
|
0.08
|
|
|
|
|||||
Total unit costs
|
1.76
|
|
|
1.91
|
|
|
7.08
|
|
|
|
|||||
Revenue adjustments, primarily for pricing
|
|
|
|
|
|
|
|
||||||||
on prior period open sales
|
(0.03
|
)
|
|
(0.03
|
)
|
|
(0.04
|
)
|
|
|
|||||
Gross profit per pound
|
$
|
0.87
|
|
|
$
|
0.72
|
|
|
$
|
2.11
|
|
|
|
||
|
|
|
|
|
|
|
|
||||||||
Reconciliation to Amounts Reported
|
|
|
|
|
|
|
|
||||||||
(In millions)
|
Revenues
|
|
Production and Delivery
|
|
Depreciation, Depletion and Amortization
|
|
|
||||||||
Totals presented above
|
$
|
783
|
|
|
$
|
417
|
|
|
$
|
130
|
|
|
|
||
Royalty on metals
|
(14
|
)
|
|
—
|
|
|
—
|
|
|
|
|||||
Noncash and other costs, net
|
—
|
|
|
8
|
|
|
—
|
|
|
|
|||||
Revenue adjustments, primarily for pricing
on prior period open sales
|
(8
|
)
|
|
—
|
|
|
—
|
|
|
|
|||||
Africa mining
|
761
|
|
|
425
|
|
|
130
|
|
|
|
|||||
Other mining & eliminations
c
|
6,571
|
|
|
4,766
|
|
|
677
|
|
|
|
|||||
Total mining
|
7,332
|
|
|
5,191
|
|
|
807
|
|
|
|
|||||
U.S. oil & gas operations
|
1,069
|
|
|
564
|
|
|
6,805
|
|
d
|
|
|||||
Corporate, other & eliminations
|
—
|
|
|
5
|
|
|
7
|
|
|
|
|||||
As reported in FCX’s consolidated financial statements
|
$
|
8,401
|
|
|
$
|
5,760
|
|
|
$
|
7,619
|
|
d
|
|
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
10
.
|
d.
|
Includes impairment of oil and gas properties of
$5.8 billion
.
|
|
|
|
|
|
|
|
|
||||||||
Six Months Ended June 30, 2014
|
|
|
|
|
|
|
|
||||||||
(In millions)
|
By-Product
|
|
Co-Product Method
|
||||||||||||
|
Method
|
|
Copper
|
|
Cobalt
|
|
Total
|
||||||||
Revenues, excluding adjustments
a
|
$
|
621
|
|
|
$
|
621
|
|
|
$
|
137
|
|
|
$
|
758
|
|
Site production and delivery, before net noncash
and other costs shown below
|
296
|
|
|
262
|
|
|
77
|
|
|
339
|
|
||||
Cobalt credits
b
|
(96
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Royalty on metals
|
14
|
|
|
12
|
|
|
2
|
|
|
14
|
|
||||
Net cash costs
|
214
|
|
|
274
|
|
|
79
|
|
|
353
|
|
||||
Depreciation, depletion and amortization
|
114
|
|
|
99
|
|
|
15
|
|
|
114
|
|
||||
Noncash and other costs, net
|
11
|
|
|
10
|
|
|
1
|
|
|
11
|
|
||||
Total costs
|
339
|
|
|
383
|
|
|
95
|
|
|
478
|
|
||||
Revenue adjustments, primarily for pricing
on prior period open sales
|
(1
|
)
|
|
(1
|
)
|
|
2
|
|
|
1
|
|
||||
Gross profit
|
$
|
281
|
|
|
$
|
237
|
|
|
$
|
44
|
|
|
$
|
281
|
|
|
|
|
|
|
|
|
|
||||||||
Copper sales (millions of recoverable pounds)
|
202
|
|
|
202
|
|
|
|
|
|
||||||
Cobalt sales (millions of contained pounds)
|
|
|
|
|
15
|
|
|
|
|||||||
|
|
|
|
|
|
|
|
||||||||
Gross profit per pound of copper/cobalt:
|
|
|
|
||||||||||||
|
|
|
|
|
|
|
|
||||||||
Revenues, excluding adjustments
a
|
$
|
3.08
|
|
|
$
|
3.08
|
|
|
$
|
9.29
|
|
|
|
||
Site production and delivery, before net noncash
|
|
|
|
|
|
|
|
||||||||
and other costs shown below
|
1.47
|
|
|
1.30
|
|
|
5.19
|
|
|
|
|||||
Cobalt credits
b
|
(0.48
|
)
|
|
—
|
|
|
—
|
|
|
|
|||||
Royalty on metals
|
0.07
|
|
|
0.06
|
|
|
0.16
|
|
|
|
|||||
Unit net cash costs
|
1.06
|
|
|
1.36
|
|
|
5.35
|
|
|
|
|||||
Depreciation, depletion and amortization
|
0.57
|
|
|
0.49
|
|
|
1.03
|
|
|
|
|||||
Noncash and other costs, net
|
0.05
|
|
|
0.04
|
|
|
0.09
|
|
|
|
|||||
Total unit costs
|
1.68
|
|
|
1.89
|
|
|
6.47
|
|
|
|
|||||
Revenue adjustments, primarily for pricing
|
|
|
|
|
|
|
|
||||||||
on prior period open sales
|
(0.01
|
)
|
|
(0.01
|
)
|
|
0.13
|
|
|
|
|||||
Gross profit per pound
|
$
|
1.39
|
|
|
$
|
1.18
|
|
|
$
|
2.95
|
|
|
|
||
|
|
|
|
|
|
|
|
||||||||
Reconciliation to Amounts Reported
|
|
|
|
|
|
|
|
||||||||
(In millions)
|
Revenues
|
|
Production and Delivery
|
|
Depreciation, Depletion and Amortization
|
|
|
||||||||
Totals presented above
|
$
|
758
|
|
|
$
|
339
|
|
|
$
|
114
|
|
|
|
||
Royalty on metals
|
(14
|
)
|
|
—
|
|
|
—
|
|
|
|
|||||
Noncash and other costs, net
|
—
|
|
|
11
|
|
|
—
|
|
|
|
|||||
Revenue adjustments, primarily for pricing
on prior period open sales
|
1
|
|
|
—
|
|
|
—
|
|
|
|
|||||
Africa mining
|
745
|
|
|
350
|
|
|
114
|
|
|
|
|||||
Other mining & eliminations
c
|
7,265
|
|
|
4,830
|
|
|
626
|
|
|
|
|||||
Total mining
|
8,010
|
|
|
5,180
|
|
|
740
|
|
|
|
|||||
U.S. oil & gas operations
|
2,497
|
|
|
640
|
|
|
1,232
|
|
|
|
|||||
Corporate, other & eliminations
|
—
|
|
|
(1
|
)
|
|
7
|
|
|
|
|||||
As reported in FCX’s consolidated financial statements
|
$
|
10,507
|
|
|
$
|
5,819
|
|
|
$
|
1,979
|
|
|
|
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
10
.
|
|
Three Months Ended June 30,
|
|
|
|
||||||||
(In millions)
|
2015
|
|
2014
|
|
|
|
||||||
Revenues, excluding adjustments
a
|
$
|
112
|
|
|
$
|
181
|
|
|
|
|
||
Site production and delivery, before net noncash and other costs shown below
|
80
|
|
|
79
|
|
|
|
|
||||
Treatment charges and other
|
10
|
|
|
11
|
|
|
|
|
||||
Net cash costs
|
90
|
|
|
90
|
|
|
|
|
||||
Depreciation, depletion and amortization
|
25
|
|
|
24
|
|
|
|
|
||||
Noncash and other costs, net
|
4
|
|
b
|
2
|
|
|
|
|
||||
Total costs
|
119
|
|
|
116
|
|
|
|
|
||||
Gross (loss) profit
|
$
|
(7
|
)
|
|
$
|
65
|
|
|
|
|
||
|
|
|
|
|
|
|
||||||
Molybdenum sales (millions of recoverable pounds)
a
|
13
|
|
|
14
|
|
|
|
|
||||
|
|
|
|
|
|
|
||||||
Gross profit per pound of molybdenum:
|
|
|
|
|||||||||
|
|
|
|
|
|
|
||||||
Revenues, excluding adjustments
a
|
$
|
9.00
|
|
|
$
|
12.90
|
|
|
|
|
||
Site production and delivery, before net noncash and other costs shown below
|
6.35
|
|
|
5.64
|
|
|
|
|
||||
Treatment charges and other
|
0.84
|
|
|
0.83
|
|
|
|
|
||||
Unit net cash costs
|
7.19
|
|
|
6.47
|
|
|
|
|
||||
Depreciation, depletion and amortization
|
1.97
|
|
|
1.69
|
|
|
|
|
||||
Noncash and other costs, net
|
0.37
|
|
b
|
0.10
|
|
|
|
|
||||
Total unit costs
|
9.53
|
|
|
8.26
|
|
|
|
|
||||
Gross (loss) profit per pound
|
$
|
(0.53
|
)
|
|
$
|
4.64
|
|
|
|
|
||
|
|
|
|
|
|
|
||||||
Reconciliation to Amounts Reported
|
|
|
|
|
|
|
||||||
(In millions)
|
|
|
|
|
|
|
||||||
Three Months Ended June 30, 2015
|
Revenues
|
|
Production and Delivery
|
|
Depreciation, Depletion and Amortization
|
|
||||||
Totals presented above
|
$
|
112
|
|
|
$
|
80
|
|
|
$
|
25
|
|
|
Treatment charges and other
|
(10
|
)
|
|
—
|
|
|
—
|
|
|
|||
Noncash and other costs, net
|
—
|
|
|
4
|
|
b
|
—
|
|
|
|||
Molybdenum mines
|
102
|
|
|
84
|
|
|
25
|
|
|
|||
Other mining & eliminations
c
|
3,577
|
|
|
2,481
|
|
|
377
|
|
|
|||
Total mining
|
3,679
|
|
|
2,565
|
|
|
402
|
|
|
|||
U.S. oil & gas operations
|
569
|
|
|
281
|
|
|
3,171
|
|
d
|
|||
Corporate, other & eliminations
|
—
|
|
|
2
|
|
|
3
|
|
|
|||
As reported in FCX’s consolidated financial statements
|
$
|
4,248
|
|
|
$
|
2,848
|
|
|
$
|
3,576
|
|
d
|
|
|
|
|
|
|
|
||||||
Three Months Ended June 30, 2014
|
|
|
|
|
|
|
||||||
Totals presented above
|
$
|
181
|
|
|
$
|
79
|
|
|
$
|
24
|
|
|
Treatment charges and other
|
(11
|
)
|
|
—
|
|
|
—
|
|
|
|||
Noncash and other costs, net
|
—
|
|
|
2
|
|
|
—
|
|
|
|||
Molybdenum mines
|
170
|
|
|
81
|
|
|
24
|
|
|
|||
Other mining & eliminations
c
|
4,116
|
|
|
2,673
|
|
|
370
|
|
|
|||
Total mining
|
4,286
|
|
|
2,754
|
|
|
394
|
|
|
|||
U.S. oil & gas operations
|
1,236
|
|
|
329
|
|
|
616
|
|
|
|||
Corporate, other & eliminations
|
—
|
|
|
(1
|
)
|
|
3
|
|
|
|||
As reported in FCX’s consolidated financial statements
|
$
|
5,522
|
|
|
$
|
3,082
|
|
|
$
|
1,013
|
|
|
a.
|
Reflects sales of the Molybdenum mines' production to our molybdenum sales company at market-based pricing. On a consolidated basis, realizations are based on the actual contract terms for sales to third parties; as a result, our consolidated average realized price per pound of molybdenum will differ from the amounts reported in this table.
|
b.
|
Includes charges totaling
$3 million
($0.21 per pound) for LCM inventory adjustments.
|
c.
|
Represents the combined total for all other mining operations and the related eliminations, as presented in Note
10
. Also includes amounts associated with our molybdenum sales company, which includes sales of molybdenum produced by the Molybdenum mines and by certain of the North and South America copper mines.
|
d.
|
Includes impairment of oil and gas properties of
$2.7 billion
.
|
|
|
|
|
|
|
|
||||||
|
Six Months Ended June 30,
|
|
|
|
||||||||
(In millions)
|
2015
|
|
2014
|
|
|
|
||||||
Revenues, excluding adjustments
a
|
$
|
236
|
|
|
$
|
318
|
|
|
|
|
||
|
|
|
|
|
|
|
||||||
Site production and delivery, before net noncash
and other costs shown below
|
161
|
|
|
154
|
|
|
|
|
||||
Treatment charges and other
|
21
|
|
|
22
|
|
|
|
|
||||
Net cash costs
|
182
|
|
|
176
|
|
|
|
|
||||
Depreciation, depletion and amortization
|
51
|
|
|
46
|
|
|
|
|
||||
Noncash and other costs, net
|
6
|
|
b
|
3
|
|
|
|
|
||||
Total costs
|
239
|
|
|
225
|
|
|
|
|
||||
Gross (loss) profit
|
$
|
(3
|
)
|
|
$
|
93
|
|
|
|
|
||
|
|
|
|
|
|
|
||||||
Molybdenum sales (millions of recoverable pounds)
a
|
26
|
|
|
27
|
|
|
|
|
||||
|
|
|
|
|
|
|
||||||
Gross profit per pound of molybdenum:
|
|
|
|
|||||||||
|
|
|
|
|
|
|
||||||
Revenues, excluding adjustments
a
|
$
|
9.34
|
|
|
$
|
11.88
|
|
|
|
|
||
|
|
|
|
|
|
|
||||||
Site production and delivery, before net noncash
and other costs shown below
|
6.34
|
|
|
5.75
|
|
|
|
|
||||
Treatment charges and other
|
0.84
|
|
|
0.83
|
|
|
|
|
||||
Unit net cash costs
|
7.18
|
|
|
6.58
|
|
|
|
|
||||
Depreciation, depletion and amortization
|
2.00
|
|
|
1.72
|
|
|
|
|
||||
Noncash and other costs, net
|
0.25
|
|
b
|
0.10
|
|
|
|
|
||||
Total unit costs
|
9.43
|
|
|
8.40
|
|
|
|
|
||||
Gross (loss) profit per pound
|
$
|
(0.09
|
)
|
|
$
|
3.48
|
|
|
|
|
||
|
|
|
|
|
|
|
||||||
Reconciliation to Amounts Reported
|
|
|
|
|
|
|
||||||
(In millions)
|
|
|
|
|
|
|
||||||
Six Months Ended June 30, 2015
|
Revenues
|
|
Production and Delivery
|
|
Depreciation, Depletion and Amortization
|
|
||||||
Totals presented above
|
$
|
236
|
|
|
$
|
161
|
|
|
$
|
51
|
|
|
Treatment charges and other
|
(21
|
)
|
|
—
|
|
|
—
|
|
|
|||
Noncash and other costs, net
|
—
|
|
|
6
|
|
b
|
—
|
|
|
|||
Molybdenum mines
|
215
|
|
|
167
|
|
|
51
|
|
|
|||
Other mining & eliminations
c
|
7,117
|
|
|
5,024
|
|
|
756
|
|
|
|||
Total mining
|
7,332
|
|
|
5,191
|
|
|
807
|
|
|
|||
U.S. oil & gas operations
|
1,069
|
|
|
564
|
|
|
6,805
|
|
d
|
|||
Corporate, other & eliminations
|
—
|
|
|
5
|
|
|
7
|
|
|
|||
As reported in FCX’s consolidated financial statements
|
$
|
8,401
|
|
|
$
|
5,760
|
|
|
$
|
7,619
|
|
d
|
|
|
|
|
|
|
|
||||||
Six Months Ended June 30, 2014
|
|
|
|
|
|
|
||||||
Totals presented above
|
$
|
318
|
|
|
$
|
154
|
|
|
$
|
46
|
|
|
Treatment charges and other
|
(22
|
)
|
|
—
|
|
|
—
|
|
|
|||
Noncash and other costs,net
|
—
|
|
|
3
|
|
|
—
|
|
|
|||
Molybdenum mines
|
296
|
|
|
157
|
|
|
46
|
|
|
|||
Other mining & eliminations
c
|
7,714
|
|
|
5,023
|
|
|
694
|
|
|
|||
Total mining
|
8,010
|
|
|
5,180
|
|
|
740
|
|
|
|||
U.S. oil & gas operations
|
2,497
|
|
|
640
|
|
|
1,232
|
|
|
|||
Corporate, other & eliminations
|
—
|
|
|
(1
|
)
|
|
7
|
|
|
|||
As reported in FCX’s consolidated financial statements
|
$
|
10,507
|
|
|
$
|
5,819
|
|
|
$
|
1,979
|
|
|
a.
|
Reflects sales of the Molybdenum mines' production to our molybdenum sales company at market-based pricing. On a consolidated basis, realizations are based on the actual contract terms for sales to third parties; as a result, our consolidated average realized price per pound of molybdenum will differ from the amounts reported in this table.
|
b.
|
Includes charges totaling
$3 million
($0.11 per pound) for LCM inventory adjustments.
|
c.
|
Represents the combined total for all other mining operations and the related eliminations, as presented in Note
10
. Also includes amounts associated with our molybdenum sales company, which includes sales of molybdenum produced by the Molybdenum mines and by certain of the North and South America copper mines.
|
d.
|
Includes impairment of oil and gas properties of
$5.8 billion
.
|
Three Months Ended June 30, 2015
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
(In millions)
|
Oil
|
|
Natural Gas
|
|
NGLs
|
|
Total
U.S. Oil
& Gas
|
|
||||||||
Oil and gas revenues before derivatives
|
$
|
480
|
|
|
$
|
63
|
|
|
$
|
12
|
|
|
$
|
555
|
|
|
Cash gains on derivative contracts
|
101
|
|
|
—
|
|
|
—
|
|
|
101
|
|
|
||||
Realized revenues
|
$
|
581
|
|
|
$
|
63
|
|
|
$
|
12
|
|
|
656
|
|
|
|
Less: cash production costs
|
|
|
|
|
|
|
249
|
|
|
|||||||
Cash operating margin
|
|
|
|
|
|
|
407
|
|
|
|||||||
Less: depreciation, depletion and amortization
|
|
|
|
|
|
|
485
|
|
|
|||||||
Less: impairment of oil and gas properties
|
|
|
|
|
|
|
2,686
|
|
|
|||||||
Less: accretion and other costs
|
|
|
|
|
|
|
32
|
|
|
|||||||
Plus: net noncash mark-to-market losses on derivative contracts
|
|
|
|
|
|
|
(95
|
)
|
|
|||||||
Plus: other net adjustments
|
|
|
|
|
|
|
8
|
|
|
|||||||
Gross loss
|
|
|
|
|
|
|
$
|
(2,883
|
)
|
|
||||||
|
|
|
|
|
|
|
|
|
||||||||
Oil (MMBbls)
|
8.6
|
|
|
|
|
|
|
|
|
|||||||
Gas (Bcf)
|
|
|
23.5
|
|
|
|
|
|
|
|||||||
NGLs (MMBbls)
|
|
|
|
|
0.6
|
|
|
|
|
|||||||
Oil Equivalents (MMBOE)
|
|
|
|
|
|
|
13.1
|
|
|
|||||||
|
|
|
|
|
|
|
|
|
||||||||
|
Oil
(per barrel) |
|
Natural Gas
(per MMBtu) |
|
NGLs
(per barrel) |
|
Per BOE
|
|
||||||||
Oil and gas revenues before derivatives
|
$
|
55.82
|
|
|
$
|
2.66
|
|
|
$
|
20.50
|
|
|
$
|
42.31
|
|
|
Cash gains on derivative contracts
|
11.79
|
|
|
—
|
|
|
—
|
|
|
7.73
|
|
|
||||
Realized revenues
|
$
|
67.61
|
|
|
$
|
2.66
|
|
|
$
|
20.50
|
|
|
50.04
|
|
|
|
Less: cash production costs
|
|
|
|
|
|
|
19.04
|
|
|
|||||||
Cash operating margin
|
|
|
|
|
|
|
31.00
|
|
|
|||||||
Less: depreciation, depletion and amortization
|
|
|
|
|
|
|
36.99
|
|
|
|||||||
Less: impairment of oil and gas properties
|
|
|
|
|
|
|
204.91
|
|
|
|||||||
Less: accretion and other costs
|
|
|
|
|
|
|
2.46
|
|
|
|||||||
Plus: net noncash mark-to-market losses on derivative contracts
|
|
|
|
|
|
|
(7.26
|
)
|
|
|||||||
Plus: other net adjustments
|
|
|
|
|
|
|
0.61
|
|
|
|||||||
Gross loss
|
|
|
|
|
|
|
$
|
(220.01
|
)
|
|
||||||
|
|
|
|
|
|
|
|
|
||||||||
Reconciliation to Amounts Reported
|
||||||||||||||||
(In millions)
|
Revenues
|
|
Production and Delivery
|
|
Depreciation, Depletion and Amortization
|
|
|
|
||||||||
Totals presented above
|
$
|
555
|
|
|
$
|
249
|
|
|
$
|
485
|
|
|
|
|
||
Cash gains on derivative contracts
|
101
|
|
|
—
|
|
|
—
|
|
|
|
|
|||||
Net noncash mark-to-market losses on derivative contracts
|
(95
|
)
|
|
—
|
|
|
—
|
|
|
|
|
|||||
Accretion and other costs
|
—
|
|
|
32
|
|
|
—
|
|
|
|
|
|||||
Impairment of oil and gas properties
|
—
|
|
|
—
|
|
|
2,686
|
|
|
|
|
|||||
Other net adjustments
|
8
|
|
|
—
|
|
|
—
|
|
|
|
|
|||||
U.S. oil & gas operations
|
569
|
|
|
281
|
|
|
3,171
|
|
|
|
|
|||||
Total mining
a
|
3,679
|
|
|
2,565
|
|
|
402
|
|
|
|
|
|||||
Corporate, other & eliminations
|
—
|
|
|
2
|
|
|
3
|
|
|
|
|
|||||
As reported in FCX's consolidated financial statements
|
$
|
4,248
|
|
|
$
|
2,848
|
|
|
$
|
3,576
|
|
|
|
|
a.
|
Represents the combined total for mining operations and the related eliminations, as presented in Note
10
.
|
U.S. Oil & Gas Product Revenues, Cash Production Costs and Realizations (continued)
|
||||||||||||||||
|
|
|
|
|
||||||||||||
Three Months Ended June 30, 2014
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
Total
|
|
||||||||
|
|
|
Natural
|
|
|
|
U.S. Oil
|
|
||||||||
(In millions)
|
Oil
|
|
Gas
|
|
NGLs
|
|
& Gas
|
|
||||||||
Oil and gas revenues before derivatives
|
$
|
1,172
|
|
|
$
|
96
|
|
|
$
|
38
|
|
|
$
|
1,306
|
|
a
|
Cash losses on derivative contracts
|
(57
|
)
|
|
(6
|
)
|
|
—
|
|
|
(63
|
)
|
|
||||
Realized revenues
|
$
|
1,115
|
|
|
$
|
90
|
|
|
$
|
38
|
|
|
1,243
|
|
|
|
Less: cash production costs
|
|
|
|
|
|
|
314
|
|
a
|
|||||||
Cash operating margin
|
|
|
|
|
|
|
929
|
|
|
|||||||
Less: depreciation, depletion and amortization
|
|
|
|
|
|
|
616
|
|
|
|||||||
Less: accretion and other costs
|
|
|
|
|
|
|
15
|
|
|
|||||||
Plus: net noncash mark-to-market losses on derivative contracts
|
|
|
|
|
|
|
(7
|
)
|
|
|||||||
Plus: other net adjustments
|
|
|
|
|
|
|
—
|
|
|
|||||||
Gross profit
|
|
|
|
|
|
|
$
|
291
|
|
|
||||||
|
|
|
|
|
|
|
|
|
||||||||
Oil (MMBbls)
|
11.7
|
|
|
|
|
|
|
|
|
|||||||
Gas (Bcf)
|
|
|
20.3
|
|
|
|
|
|
|
|||||||
NGLs (MMBbls)
|
|
|
|
|
1.0
|
|
|
|
|
|||||||
Oil Equivalents (MMBOE)
|
|
|
|
|
|
|
16.0
|
|
|
|||||||
|
|
|
|
|
|
|
|
|
||||||||
|
Oil
|
|
Natural Gas
|
|
NGLs
|
|
|
|
||||||||
|
(per barrel)
|
|
(per MMBtu)
|
|
(per barrel)
|
|
Per BOE
|
|
||||||||
Oil and gas revenues before derivatives
|
$
|
100.46
|
|
|
$
|
4.70
|
|
|
$
|
38.79
|
|
|
$
|
81.47
|
|
a
|
Cash losses on derivative contracts
|
(4.96
|
)
|
|
(0.26
|
)
|
|
—
|
|
|
(3.94
|
)
|
|
||||
Realized revenues
|
$
|
95.50
|
|
|
$
|
4.44
|
|
|
$
|
38.79
|
|
|
77.53
|
|
|
|
Less: cash production costs
|
|
|
|
|
|
|
19.57
|
|
a
|
|||||||
Cash operating margin
|
|
|
|
|
|
|
57.96
|
|
|
|||||||
Less: depreciation, depletion and amortization
|
|
|
|
|
|
|
38.39
|
|
|
|||||||
Less: accretion and other costs
|
|
|
|
|
|
|
0.94
|
|
|
|||||||
Plus: net noncash mark-to-market losses on derivative contracts
|
|
|
|
|
|
|
(0.44
|
)
|
|
|||||||
Plus: other net adjustments
|
|
|
|
|
|
|
0.04
|
|
|
|||||||
Gross profit
|
|
|
|
|
|
|
$
|
18.23
|
|
|
||||||
|
|
|
|
|
|
|
|
|
||||||||
Reconciliation to Amounts Reported
|
|
|||||||||||||||
(In millions)
|
Revenues
|
|
Production and Delivery
|
|
Depreciation, Depletion and Amortization
|
|
|
|
||||||||
Totals presented above
|
$
|
1,306
|
|
|
$
|
314
|
|
|
$
|
616
|
|
|
|
|
||
Cash losses on derivative contracts
|
(63
|
)
|
|
—
|
|
|
—
|
|
|
|
|
|||||
Net noncash mark-to-market losses on derivative contracts
|
(7
|
)
|
|
—
|
|
|
—
|
|
|
|
|
|||||
Accretion and other costs
|
—
|
|
|
15
|
|
|
—
|
|
|
|
|
|||||
Other net adjustments
|
—
|
|
|
—
|
|
|
—
|
|
|
|
|
|||||
U.S. oil & gas operations
|
1,236
|
|
|
329
|
|
|
616
|
|
|
|
|
|||||
Total mining
b
|
4,286
|
|
|
2,754
|
|
|
394
|
|
|
|
|
|||||
Corporate, other & eliminations
|
—
|
|
|
(1
|
)
|
|
3
|
|
|
|
|
|||||
As reported in FCX's consolidated financial statements
|
$
|
5,522
|
|
|
$
|
3,082
|
|
|
$
|
1,013
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
Cash Production Costs
(in millions)
|
|
Oil Equivalents (MMBOE)
|
|
Cash Production Costs Per BOE
|
|||||
Presented above
|
$
|
314
|
|
|
16.0
|
|
|
$
|
19.57
|
|
Less: Eagle Ford
|
53
|
|
|
4.0
|
|
|
13.23
|
|
||
|
$
|
261
|
|
|
12.0
|
|
|
$
|
21.66
|
|
b.
|
Represents the combined total for mining operations and the related eliminations, as presented in Note
10
.
|
|
|
|
|
|
|
|
|
|
||||||||
Six Months Ended June 30, 2015
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
||||||||
(In millions)
|
Oil
|
|
Natural Gas
|
|
NGLs
|
|
Total
U.S. Oil
& Gas
|
|
||||||||
Oil and gas revenues before derivatives
|
$
|
853
|
|
|
$
|
125
|
|
|
$
|
24
|
|
|
$
|
1,002
|
|
|
Cash gains on derivative contracts
|
201
|
|
|
—
|
|
|
—
|
|
|
201
|
|
|
||||
Realized revenues
|
$
|
1,054
|
|
|
$
|
125
|
|
|
$
|
24
|
|
|
1,203
|
|
|
|
Less: cash production costs
|
|
|
|
|
|
|
503
|
|
|
|||||||
Cash operating margin
|
|
|
|
|
|
|
700
|
|
|
|||||||
Less: depreciation, depletion and amortization
|
|
|
|
|
|
|
1,015
|
|
|
|||||||
Less: impairment of oil and gas properties
|
|
|
|
|
|
|
5,790
|
|
|
|||||||
Less: accretion and other costs
|
|
|
|
|
|
|
61
|
|
|
|||||||
Plus: net noncash mark-to-market losses on derivative
contracts
|
|
|
|
|
|
|
(143
|
)
|
|
|||||||
Plus: other net adjustments
|
|
|
|
|
|
|
9
|
|
|
|||||||
Gross loss
|
|
|
|
|
|
|
$
|
(6,300
|
)
|
|
||||||
|
|
|
|
|
|
|
|
|
||||||||
Oil (MMBbls)
|
17.0
|
|
|
|
|
|
|
|
|
|||||||
Gas (Bcf)
|
|
|
45.3
|
|
|
|
|
|
|
|||||||
NGLs (MMBbls)
|
|
|
|
|
1.1
|
|
|
|
|
|||||||
Oil Equivalents (MMBOE)
|
|
|
|
|
|
|
25.6
|
|
|
|||||||
|
|
|
|
|
|
|
|
|
||||||||
|
Oil
(per barrel) |
|
Natural Gas
(per MMBtu) |
|
NGLs
(per barrel) |
|
Per BOE
|
|
||||||||
Oil and gas revenues before derivatives
|
$
|
50.25
|
|
|
$
|
2.75
|
|
|
$
|
21.71
|
|
|
$
|
39.08
|
|
|
Cash gains on derivative contracts
|
11.88
|
|
|
—
|
|
|
—
|
|
|
7.87
|
|
|
||||
Realized revenues
|
$
|
62.13
|
|
|
$
|
2.75
|
|
|
$
|
21.71
|
|
|
46.95
|
|
|
|
Less: cash production costs
|
|
|
|
|
|
|
19.62
|
|
|
|||||||
Cash operating margin
|
|
|
|
|
|
|
27.33
|
|
|
|||||||
Less: depreciation, depletion and amortization
|
|
|
|
|
|
|
39.59
|
|
|
|||||||
Less: impairment of oil and gas properties
|
|
|
|
|
|
|
225.89
|
|
|
|||||||
Less: accretion and other costs
|
|
|
|
|
|
|
2.39
|
|
|
|||||||
Plus: net noncash mark-to-market losses on derivative
contracts
|
|
|
|
|
|
|
(5.60
|
)
|
|
|||||||
Plus: other net adjustments
|
|
|
|
|
|
|
0.34
|
|
|
|||||||
Gross loss
|
|
|
|
|
|
|
$
|
(245.80
|
)
|
|
||||||
|
|
|
|
|
|
|
|
|
||||||||
Reconciliation to Amounts Reported
|
||||||||||||||||
(In Millions)
|
Revenues
|
|
Production and Delivery
|
|
Depreciation, Depletion and Amortization
|
|
|
|
||||||||
Totals presented above
|
$
|
1,002
|
|
|
$
|
503
|
|
|
$
|
1,015
|
|
|
|
|
||
Cash gains on derivative contracts
|
201
|
|
|
—
|
|
|
—
|
|
|
|
|
|||||
Net noncash mark-to-market losses on derivative contracts
|
(143
|
)
|
|
—
|
|
|
—
|
|
|
|
|
|||||
Accretion and other costs
|
—
|
|
|
61
|
|
|
—
|
|
|
|
|
|||||
Impairment of oil and gas properties
|
—
|
|
|
—
|
|
|
5,790
|
|
|
|
|
|||||
Other net adjustments
|
9
|
|
|
—
|
|
|
—
|
|
|
|
|
|||||
U.S. oil & gas operations
|
1,069
|
|
|
564
|
|
|
6,805
|
|
|
|
|
|||||
Total mining
a
|
7,332
|
|
|
5,191
|
|
|
807
|
|
|
|
|
|||||
Corporate, other & eliminations
|
—
|
|
|
5
|
|
|
7
|
|
|
|
|
|||||
As reported in FCX's consolidated financial statements
|
$
|
8,401
|
|
|
$
|
5,760
|
|
|
$
|
7,619
|
|
|
|
|
a.
|
Represents the combined total for mining operations and the related eliminations, as presented in Note
10
.
|
|
|
|
|
|
|
|
|
|
||||||||
Six Months Ended June 30, 2014
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
(In millions)
|
Oil
|
|
Natural Gas
|
|
NGLs
|
|
Total
U.S. Oil
& Gas
|
|
||||||||
Oil and gas revenues before derivatives
|
$
|
2,334
|
|
|
$
|
194
|
|
|
$
|
88
|
|
|
$
|
2,616
|
|
a
|
Cash losses on derivative contracts
|
(115
|
)
|
|
(13
|
)
|
|
—
|
|
|
(128
|
)
|
|
||||
Realized revenues
|
$
|
2,219
|
|
|
$
|
181
|
|
|
$
|
88
|
|
|
2,488
|
|
|
|
Less: cash production costs
|
|
|
|
|
|
|
612
|
|
a
|
|||||||
Cash operating margin
|
|
|
|
|
|
|
1,876
|
|
|
|||||||
Less: depreciation, depletion and amortization
|
|
|
|
|
|
|
1,232
|
|
|
|||||||
Less: accretion and other costs
|
|
|
|
|
|
|
28
|
|
|
|||||||
Plus: net noncash mark-to-market gains on derivative contracts
|
|
|
|
|
|
|
8
|
|
|
|||||||
Plus: other net adjustments
|
|
|
|
|
|
|
1
|
|
|
|||||||
Gross profit
|
|
|
|
|
|
|
$
|
625
|
|
|
||||||
|
|
|
|
|
|
|
|
|
||||||||
Oil (MMBbls)
|
23.5
|
|
|
|
|
|
|
|
|
|||||||
Gas (Bcf)
|
|
|
39.8
|
|
|
|
|
|
|
|||||||
NGLs (MMBbls)
|
|
|
|
|
2.1
|
|
|
|
|
|||||||
Oil Equivalents (MMBOE)
|
|
|
|
|
|
|
32.2
|
|
|
|||||||
|
|
|
|
|
|
|
|
|
||||||||
|
Oil
(per barrel) |
|
Natural Gas
(per MMBtu) |
|
NGLs
(per barrel) |
|
Per BOE
|
|
||||||||
Oil and gas revenues before derivatives
|
$
|
99.54
|
|
|
$
|
4.87
|
|
|
$
|
42.35
|
|
|
$
|
81.34
|
|
a
|
Cash losses on derivative contracts
|
(4.91
|
)
|
|
(0.32
|
)
|
|
—
|
|
|
(3.97
|
)
|
|
||||
Realized revenues
|
$
|
94.63
|
|
|
$
|
4.55
|
|
|
$
|
42.35
|
|
|
77.37
|
|
|
|
Less: cash production costs
|
|
|
|
|
|
|
19.03
|
|
a
|
|||||||
Cash operating margin
|
|
|
|
|
|
|
58.34
|
|
|
|||||||
Less: depreciation, depletion and amortization
|
|
|
|
|
|
|
38.30
|
|
|
|||||||
Less: accretion and other costs
|
|
|
|
|
|
|
0.87
|
|
|
|||||||
Plus: net noncash mark-to-market gains on derivative contracts
|
|
|
|
|
|
|
0.23
|
|
|
|||||||
Plus: other net adjustments
|
|
|
|
|
|
|
0.04
|
|
|
|||||||
Gross profit
|
|
|
|
|
|
|
$
|
19.44
|
|
|
||||||
|
|
|
|
|
|
|
|
|
||||||||
Reconciliation to Amounts Reported for the Six Months Ended June 30, 2014
|
||||||||||||||||
(In millions)
|
Revenues
|
|
Production and Delivery
|
|
Depreciation, Depletion and Amortization
|
|
|
|
||||||||
Totals presented above
|
$
|
2,616
|
|
|
$
|
612
|
|
|
$
|
1,232
|
|
|
|
|
||
Cash losses on derivative contracts
|
(128
|
)
|
|
—
|
|
|
—
|
|
|
|
|
|||||
Net noncash mark-to-market gains on derivative contracts
|
8
|
|
|
—
|
|
|
—
|
|
|
|
|
|||||
Accretion and other costs
|
—
|
|
|
28
|
|
|
—
|
|
|
|
|
|||||
Other net adjustments
|
1
|
|
|
—
|
|
|
—
|
|
|
|
|
|||||
U.S. oil & gas operations
|
2,497
|
|
|
640
|
|
|
1,232
|
|
|
|
|
|||||
Total mining
b
|
8,010
|
|
|
5,180
|
|
|
740
|
|
|
|
|
|||||
Corporate, other & eliminations
|
—
|
|
|
(1
|
)
|
|
7
|
|
|
|
|
|||||
As reported in FCX's consolidated financial statements
|
$
|
10,507
|
|
|
$
|
5,819
|
|
|
$
|
1,979
|
|
|
|
|
|
Cash Production Costs
(in millions)
|
|
Oil Equivalents (MMBOE)
|
|
Cash Production Costs Per BOE
|
|||||
Presented above
|
$
|
612
|
|
|
32.2
|
|
|
$
|
19.03
|
|
Less: Eagle Ford
|
113
|
|
|
8.7
|
|
|
12.97
|
|
||
|
$
|
499
|
|
|
23.5
|
|
|
$
|
21.29
|
|
b.
|
Represents the combined total for mining operations and the related eliminations, as presented in Note
10
.
|
Item 3.
|
Quantitative and Qualitative Disclosures About Market Risk.
|
Item 4.
|
Controls and Procedures.
|
(a)
|
Evaluation of disclosure controls and procedures.
Our chief executive officer and chief financial officer, with the participation of management, have evaluated the effectiveness of our “disclosure controls and procedures” (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934) as of the end of the period covered by this quarterly report on Form 10-Q. Based on their evaluation, they have concluded that our disclosure controls and procedures are effective as of
June 30, 2015
.
|
(b)
|
Changes in internal control over financial reporting.
There has been no change in our internal control over financial reporting that occurred during the quarter ended
June 30, 2015
, that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.
|
Part II.
|
OTHER INFORMATION
|
Item 1.
|
Legal Proceedings.
|
Item 2.
|
Unregistered Sales of Equity Securities and Use of Proceeds.
|
(c)
|
The following table sets forth information with respect to shares of our common stock purchased by us during the three months ended
June 30, 2015
:
|
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
|
||||||
April 1-30, 2015
|
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
23,685,500
|
|
|
May 1-31, 2015
|
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
23,685,500
|
|
|
June 1-30, 2015
|
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
23,685,500
|
|
|
Total
|
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
23,685,500
|
|
a.
|
On July 21, 2008, our Board of Directors approved an increase in our open-market share purchase program for up to 30 million shares. There have been no purchases under this program since 2008. This program does not have an expiration date.
|
Item 4.
|
Mine Safety Disclosure.
|
Item 6.
|
Exhibits.
|
|
FREEPORT-McMoRan INC.
|
|
|
|
|
|
By:
|
/s/ C. Donald Whitmire, Jr.
|
|
|
C. Donald Whitmire, Jr.
|
|
|
Vice President and
|
|
|
Controller - Financial Reporting
|
|
|
(authorized signatory
|
|
|
and Principal Accounting Officer)
|
FREEPORT-McMoRan INC.
|
|||||
EXHIBIT INDEX
|
|||||
|
|
Filed
|
|
||
Exhibit
|
|
with this
|
Incorporated by Reference
|
||
Number
|
Exhibit Title
|
Form 10-Q
|
Form
|
File No.
|
Date Filed
|
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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FREEPORT-McMoRan INC.
|
|||||
EXHIBIT INDEX
|
|||||
|
|
Filed
|
|
||
Exhibit
|
|
with this
|
Incorporated by Reference
|
||
Number
|
Exhibit Title
|
Form 10-Q
|
Form
|
File No.
|
Date Filed
|
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
|
01-00082
|
11/3/1997
|
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
|
01-00082
|
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
|
01-00082
|
3/7/2005
|
Amendment dated July 21, 2015, to the Restated Trust Agreement dated as of October 11, 1996, among PT Freeport Indonesia, PT Rio Tinto Indonesia (formerly P.T. RTZ-CRA Indonesia), U.S. Bank National Association, as trustee, JP Morgan Chase Bank, N.A., as depository, and the Secured Creditors.
|
X
|
|
|
|
|
Letter from Ernst & Young LLP regarding unaudited interim financial statements.
|
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 and Health Administration Safety Data.
|
X
|
|
|
|
|
101.INS
|
XBRL Instance Document.
|
X
|
|
|
|
101.SCH
|
XBRL Taxonomy Extension Schema.
|
X
|
|
|
|
101.CAL
|
XBRL Taxonomy Extension Calculation Linkbase.
|
X
|
|
|
|
101.DEF
|
XBRL Taxonomy Extension Definition Linkbase.
|
X
|
|
|
|
101.LAB
|
XBRL Taxonomy Extension Label Linkbase.
|
X
|
|
|
|
101.PRE
|
XBRL Taxonomy Extension Presentation Linkbase.
|
X
|
|
|
|
|
|
|
|
|
|
PT FREEPORT INDONESIA,
|
|
By:
|
|
|
/s/ Robert R. Boyce
|
|
Name: Robert R. Boyce
|
|
Title: Treasurer
|
PT RIO TINTO INDONESIA (F/K/A P.T. RTZ-CRA INDONESIA),
|
|
By:
|
|
|
/s/ Greg Sinclair
|
|
Name: Greg Sinclair
|
|
Title: President Director
|
US BANK NATIONAL ASSOCIATION, as Trustee,
|
|
By:
|
|
|
/s/ Beverly A. Freeney
|
|
Name: Beverly A. Freeney
|
|
Title: Vice President
|
1)
|
Registration Statement (Form S-8 No. 333-85803) pertaining to the Freeport-McMoRan Copper & Gold Inc.
|
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;
|
1.
|
I have reviewed this quarterly report on Form 10-Q 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 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.
|
|
By: /s/ Richard C. Adkerson
|
|
Richard C. Adkerson
|
|
Vice Chairman,
|
|
President and Chief Executive Officer
|
1.
|
I have reviewed this quarterly report on Form 10-Q 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 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.
|
|
By: /s/ Kathleen L. Quirk
|
|
Kathleen L. Quirk
|
|
Executive Vice President,
|
|
Chief Financial Officer and Treasurer
|
|
By: /s/ Richard C. Adkerson
|
|
Richard C. Adkerson
|
|
Vice Chairman,
|
|
President and Chief Executive Officer
|
|
By: /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)
|
|
34
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
55,466
|
|
|
—
|
|
|
No
|
|
No
|
2900708
|
|
Freeport-McMoRan Chino Mines Company (Chino)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
No
|
|
No
|
0200112
|
|
Freeport-McMoRan Miami Inc (Miami)
|
|
2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,119
|
|
|
—
|
|
|
No
|
|
No
|
0200024
|
|
Freeport-McMoRan Morenci Inc (Morenci)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
No
|
|
No
|
0203131
|
|
Freeport-McMoRan Safford Inc (Safford)
|
|
4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6,677
|
|
|
—
|
|
|
No
|
|
No
|
0200144
|
|
Freeport-McMoRan Sierrita Inc (Sierrita)
|
|
10
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
32,145
|
|
|
—
|
|
|
No
|
|
No
|
2900159
|
|
Tyrone Mine (Tyrone)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
No
|
|
No
|
0500790
|
|
Henderson Operations (Henderson)
|
|
4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,846
|
|
|
—
|
|
|
No
|
|
No
|
0502256
|
|
Climax Mine (Climax)
|
|
7
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
9,112
|
|
|
—
|
|
|
No
|
|
No
|
|
|
Freeport-McMoRan Cobre Mining Company:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
2900725
|
|
Open Pit & Continental Surf Comp
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
100
|
|
|
—
|
|
|
No
|
|
No
|
2900731
|
|
Continental Mill Complex
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
207
|
|
|
—
|
|
|
No
|
|
No
|
0201656
|
|
Copper Queen Branch
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
No
|
|
No
|
0202579
|
|
Cyprus Tohono Corporation
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
100
|
|
|
—
|
|
|
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
July 31, 2015
, for citations or orders issued by MSHA during the three months ended
June 30, 2015
. FCX is currently contesting $500 of these proposed assessments.
|
•
|
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 may be filed by an operator to challenge a civil penalty MSHA has proposed for a violation contained in a citation or order. FCX does not institute civil penalty proceedings based solely on the assessment amount of proposed penalties. Any initiated adjudications described in the table below address substantive matters of law and policy instituted on conditions that are alleged to be in violation of mandatory standards or the Mine Act.
|
•
|
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 June 30, 2015
|
|
|
|
|
|
|||||||||||||||||||||
|
|
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
|
|
|
9
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
10
|
|
|
—
|
|
|
—
|
|
|
0200112
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0200024
|
|
—
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
3
|
|
|
0203131
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0200144
|
|
9
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
9
|
|
|
—
|
|
|
—
|
|
|
2900159
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0500790
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0502256
|
|
1
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3
|
|
|
—
|
|
|
—
|
|
|
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
June 30, 2015
, and legal actions instituted during the three month period are based on the date that a docket number was assigned to the proceeding.
|
(3)
|
Legal actions resolved during the three month period 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.
|