GUARANTOR FINANCIAL STATEMENTS

All of the senior notes issued by FCX and discussed in Note 8 are fully and unconditionally guaranteed on a senior basis jointly and severally by FM O&G LLC, as guarantor, which is a 100-percent-owned subsidiary of FM O&G and FCX. The guarantee is an unsecured obligation of the guarantor and ranks equal in right of payment with all existing and future indebtedness of FM O&G LLC, including indebtedness under the revolving credit facility. The guarantee ranks senior in right of payment with all of FM O&G LLC's future subordinated obligations and is effectively subordinated in right of payment to any debt of FM O&G LLC's subsidiaries. The indentures provide that FM O&G LLC's guarantee may be released or terminated for certain obligations under the following circumstances: (i) all or substantially all of the equity interests or assets of FM O&G LLC are sold to a third party; or (ii) FM O&G LLC no longer has any obligations under any FM O&G senior notes or any refinancing thereof and no longer guarantees any obligations of FCX under the revolver, the Term Loan or any other senior debt.

The following condensed consolidating financial information includes information regarding FCX, as issuer, FM O&G LLC, as guarantor, and all other non-guarantor subsidiaries of FCX. Included are the condensed consolidating balance sheets at December 31, 2015 and 2014, and the related condensed consolidating statements of comprehensive (loss) income and the condensed consolidating statements of cash flows for the years ended December 31, 2015, 2014 and 2013, which should be read in conjunction with FCX's notes to the consolidated financial statements:

CONDENSED CONSOLIDATING BALANCE SHEET

December 31, 2015



	FCX			FM O&G LLC			Non-guarantor					Consolidated
	Issuer			Guarantor			Subsidiaries		Eliminations			FCX
ASSETS
Current assets	$	181		$	3,831		$	10,982	$	(7,532	)	$	7,462
Property, plant, equipment and mining development costs, net	26			57			27,426		—			27,509
Oil and gas properties, net - full cost method:
Subject to amortization, less accumulated amortization	—			710			1,552		—			2,262
Not subject to amortization	—			1,393			3,432		6			4,831
Investments in consolidated subsidiaries	24,311			—			—		(24,311		)	—
Other assets	5,038			1,826			4,447		(6,798		)	4,513
Total assets	$	29,556		$	7,817		$	47,839	$	(38,635	)	$	46,577

LIABILITIES AND EQUITY
Current liabilities	$	6,012		$	666		$	5,155	$	(7,526	)	$	4,307
Long-term debt, less current portion	14,735			5,883			11,594		(12,433		)	19,779
Deferred income taxes	941		^a	—			3,347		—			4,288
Environmental and asset retirement obligations, less current portion	—			305			3,434		—			3,739
Investment in consolidated subsidiary	—			—			2,397		(2,397		)	—
Other liabilities	40			3,360			1,747		(3,491		)	1,656
Total liabilities	21,728			10,214			27,674		(25,847		)	33,769

Redeemable noncontrolling interest	—			—			764		—			764

Equity:
Stockholders' equity	7,828			(2,397		)	15,725		(13,328		)	7,828
Noncontrolling interests	—			—			3,676		540			4,216
Total equity	7,828			(2,397		)	19,401		(12,788		)	12,044
Total liabilities and equity	$	29,556		$	7,817		$	47,839	$	(38,635	)	$	46,577


a.	All U.S. related deferred income taxes are recorded at the parent company.

CONDENSED CONSOLIDATING BALANCE SHEET

December 31, 2014



	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.

CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE (LOSS) INCOME



Year Ended December 31, 2015
	FCX			FM O&G LLC				Non-guarantor							Consolidated
	Issuer			Guarantor				Subsidiaries				Eliminations			FCX
Revenues	$	—		$	613			$	15,264			$	—		$	15,877
Total costs and expenses	60			5,150			^a	24,060			^a	(11		)	29,259
Operating (loss) income	(60		)	(4,537		)		(8,796		)		11			(13,382		)
Interest expense, net	(489		)	(8		)		(300		)		152			(645		)
Other income (expense), net	225			1				(81		)		(139		)	6
(Loss) income before income taxes and equity in affiliated companies' net (losses) earnings	(324		)	(4,544		)		(9,177		)		24			(14,021		)
(Provision for) benefit from income taxes	(3,227		)	1,718				3,453				(9		)	1,935
Equity in affiliated companies' net (losses) earnings	(8,685		)	(9,976		)		(12,838		)		31,496			(3		)
Net (loss) income	(12,236		)	(12,802		)		(18,562		)		31,511			(12,089		)
Net income and preferred dividends attributable to noncontrolling interests	—			—				(114		)		(33		)	(147		)
Net (loss) income attributable to common stockholders	$	(12,236	)	$	(12,802	)		$	(18,676	)		$	31,478		$	(12,236	)

Other comprehensive income (loss)	41			—				41				(41		)	41
Total comprehensive (loss) income	$	(12,195	)	$	(12,802	)		$	(18,635	)		$	31,437		$	(12,195	)


a.	Includes charges totaling $4.2 billion at the FM O&G LLC guarantor and $8.9 billion at the non-guarantor subsidiaries related to impairment of FCX's oil and gas properties pursuant to full cost accounting rules.

CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE (LOSS) INCOME



Year Ended December 31, 2014
	FCX			FM O&G LLC				Non-guarantor							Consolidated
	Issuer			Guarantor				Subsidiaries				Eliminations			FCX
Revenues	$	—		$	2,356			$	19,082			$	—		$	21,438
Total costs and expenses	59			3,498			^a	17,762			^a	22			21,341
Operating (loss) income	(59		)	(1,142		)		1,320				(22		)	97
Interest expense, net	(382		)	(139		)		(189		)		80			(630		)
Net (loss) gain on early extinguishment of debt	(5		)	78				—				—			73
Other income (expense), net	72			3				41				(80		)	36
(Loss) income before income taxes and equity in affiliated companies' net (losses) earnings	(374		)	(1,200		)		1,172				(22		)	(424		)
Benefit from (provision for) income taxes	73			281				(686		)		8			(324		)
Equity in affiliated companies' net (losses) earnings	(1,007		)	(3,429		)		(4,633		)		9,072			3
Net (loss) income	(1,308		)	(4,348		)		(4,147		)		9,058			(745		)
Net income and preferred dividends attributable to noncontrolling interests	—			—				(519		)		(44		)	(563		)
Net (loss) income attributable to common stockholders	$	(1,308	)	$	(4,348	)		$	(4,666	)		$	9,014		$	(1,308	)

Other comprehensive (loss) income	(139		)	—				(139		)		139			(139		)
Total comprehensive (loss) income	$	(1,447	)	$	(4,348	)		$	(4,805	)		$	9,153		$	(1,447	)


a.	Includes impairment charges totaling $1.9 billion at the FM O&G LLC Guarantor and $3.5 billion at the non-guarantor subsidiaries related to ceiling test impairment charges for FCX's oil and gas properties pursuant to full cost accounting rules and a goodwill impairment charge.



Year Ended December 31, 2013
	FCX			FM O&G LLC			Non-guarantor						Consolidated
	Issuer			Guarantor			Subsidiaries			Eliminations			FCX
Revenues	$	—		$	1,177		$	19,744		$	—		$	20,921
Total costs and expenses	134			1,065			14,371			—			15,570
Operating (loss) income	(134		)	112			5,373			—			5,351
Interest expense, net	(319		)	(129		)	(129		)	59			(518		)
Net (loss) gain on early extinguishment of debt	(45		)	—			10			—			(35		)
Gain on investment in MMR	128			—			—			—			128
Other income (expense), net	61			—			(15		)	(59		)	(13		)
(Loss) income before income taxes and equity in affiliated companies' net earnings (losses)	(309		)	(17		)	5,239			—			4,913
Benefit from (provision for) income taxes	81			17			(1,573		)	—			(1,475		)
Equity in affiliated companies' net earnings (losses)	2,886			281			268			(3,432		)	3
Net income (loss)	2,658			281			3,934			(3,432		)	3,441
Net income and preferred dividends attributable to noncontrolling interests	—			—			(706		)	(77		)	(783		)
Net income (loss) attributable to common stockholders	$	2,658		$	281		$	3,228		$	(3,509	)	$	2,658

Other comprehensive income (loss)	101			—			101			(101		)	101
Total comprehensive income (loss)	$	2,759		$	281		$	3,329		$	(3,610	)	$	2,759

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

Year Ended December 31, 2015



	FCX			FM O&G LLC			Non-guarantor						Consolidated
	Issuer			Guarantor			Subsidiaries			Eliminations			FCX
Cash flow from operating activities:
Net (loss) income	$	(12,236	)	$	(12,802	)	$	(18,562	)	$	31,511		$	(12,089	)
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities:
Depreciation, depletion and amortization	5			370			3,195			(73		)	3,497
Impairment of oil and gas properties	—			4,220			8,862			62			13,144
Copper and molybdenum inventory adjustments	—			—			338			—			338
Other asset impairments, inventory write-downs, restructuring and other	—			11			245			—			256
Net gains on crude oil gas derivative contracts	—			(87		)	—			—			(87		)
Equity in losses (earnings) of consolidated subsidiaries	8,685			9,976			12,838			(31,496		)	3
Other, net	(2,127		)	2			(90		)	—			(2,215		)
Changes in working capital and other tax payments	5,506			(1,428		)	(3,714		)	9			373
Net cash (used in) provided by operating activities	(167		)	262			3,112			13			3,220

Cash flow from investing activities:
Capital expenditures	(7		)	(847		)	(5,486		)	(13		)	(6,353		)
Intercompany loans	(1,812		)	(1,310		)	—			3,122			—
Dividends from (investments in) consolidated subsidiaries	852			(71		)	130			(913		)	(2		)
Other, net	(21		)	(2		)	111			21			109
Net cash (used in) provided by investing activities	(988		)	(2,230		)	(5,245		)	2,217			(6,246		)

Cash flow from financing activities:
Proceeds from debt	4,503			—			3,769			—			8,272
Repayments of debt	(4,660		)	—			(2,017		)	—			(6,677		)
Intercompany loans	—			2,038			1,084			(3,122		)	—
Net proceeds from sale of common stock	1,936			—			—			—			1,936
Cash dividends and distributions paid	(605		)	—			(924		)	804			(725		)
Other, net	(19		)	(71		)	(18		)	88			(20		)
Net cash provided by (used in) financing activities	1,155			1,967			1,894			(2,230		)	2,786

Net decrease in cash and cash equivalents	—			(1		)	(239		)	—			(240		)
Cash and cash equivalents at beginning of year	—			1			463			—			464
Cash and cash equivalents at end of year	$	—		$	—		$	224		$	—		$	224

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

Year Ended December 31, 2014



	FCX			FM O&G LLC			Non-guarantor						Consolidated
	Issuer			Guarantor			Subsidiaries			Eliminations			FCX
Cash flow from operating activities:
Net (loss) income	$	(1,308	)	$	(4,348	)	$	(4,147	)	$	9,058		$	(745	)
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities:
Depreciation, depletion and amortization	4			806			3,077			(24		)	3,863
Impairment of oil and gas properties and goodwill	—			1,922			3,486			46			5,454
Net gains on crude oil and natural gas derivative contracts	—			(504		)	—			—			(504		)
Equity in losses (earnings) of consolidated subsidiaries	1,007			3,429			4,633			(9,072		)	(3		)
Other, net	(882		)	(113		)	(807		)	—			(1,802		)
Changes in working capital and other tax payments, excluding amounts from dispositions	723			(1,750		)	395			—			(632		)
Net cash (used in) provided by operating activities	(456		)	(558		)	6,637			8			5,631

Cash flow from investing activities:
Capital expenditures	—			(2,143		)	(5,072		)	—			(7,215		)
Acquisition of Deepwater GOM interests	—			—			(1,426		)	—			(1,426		)
Intercompany loans	(1,328		)	704			—			624			—
Dividends from (investments in) consolidated subsidiaries	1,221			(130		)	(2,408		)	1,317			—
Net proceeds from sale of Candelaria and Ojos del Salado	—			—			1,709			—			1,709
Net proceeds from sale of Eagle Ford shale assets	—			2,910			—			—			2,910
Other, net	—			41			180			—			221
Net cash (used in) provided by investing activities	(107		)	1,382			(7,017		)	1,941			(3,801		)

Cash flow from financing activities:
Proceeds from debt	7,464			—			1,246			—			8,710
Repayments of debt	(5,575		)	(3,994		)	(737		)	—			(10,306		)
Intercompany loans	—			810			(186		)	(624		)	—
Cash dividends and distributions paid, and contributions received	(1,305		)	2,364			(1,463		)	(1,325		)	(1,729		)
Other, net	(21		)	(3		)	(2		)	—			(26		)
Net cash provided by (used in) financing activities	563			(823		)	(1,142		)	(1,949		)	(3,351		)

Net increase (decrease) in cash and cash equivalents	—			1			(1,522		)	—			(1,521		)
Cash and cash equivalents at beginning of year	—			—			1,985			—			1,985
Cash and cash equivalents at end of year	$	—		$	1		$	463		$	—		$	464

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

Year Ended December 31, 2013



	FCX			FM O&G LLC			Non-guarantor						Consolidated
	Issuer			Guarantor			Subsidiaries			Eliminations			FCX
Cash flow from operating activities:
Net income (loss)	$	2,658		$	281		$	3,934		$	(3,432	)	$	3,441
Adjustments to reconcile net income (loss) to net cash (used in) provided by operating activities:
Depreciation, depletion and amortization	4			616			2,177			—			2,797
Net losses on crude oil and natural gas derivative contracts	—			334			—			—			334
Gain on investment in MMR	(128		)	—			—			—			(128		)
Equity in (earnings) losses of consolidated subsidiaries	(2,886		)	(281		)	(265		)	3,432			—
Other, net	8			(14		)	78			—			72
Changes in working capital and other tax payments, excluding amounts from acquisitions and dispositions	272			735			(1,384		)	—			(377		)
Net cash (used in) provided by operating activities	(72		)	1,671			4,540			—			6,139

Cash flow from investing activities:
Capital expenditures	—			(894		)	(4,392		)	—			(5,286		)
Acquisitions, net of cash acquired	(5,437		)	—			(4		)	—			(5,441		)
Intercompany loans	834			—			(162		)	(672		)	—
Dividends from (investments in) consolidated subsidiaries	629			—			—			(629		)	—
Other, net	15			30			(226		)	—			(181		)
Net cash used in investing activities	(3,959		)	(864		)	(4,784		)	(1,301		)	(10,908		)

Cash flow from financing activities:
Proceeds from debt	11,260			—			241			—			11,501
Repayments of debt and redemption of MMR preferred stock	(4,737		)	(416		)	(551		)	—			(5,704		)
Intercompany loans	—			(391		)	(281		)	672			—
Cash dividends and distributions paid	(2,281		)	—			(885		)	629			(2,537		)
Other, net	(211		)	—			—			—			(211		)
Net cash provided by (used in) financing activities	4,031			(807		)	(1,476		)	1,301			3,049

Net decrease in cash and cash equivalents	—			—			(1,720		)	—			(1,720		)
Cash and cash equivalents at beginning of year	—			—			3,705			—			3,705
Cash and cash equivalents at end of year	$	—		$	—		$	1,985		$	—		$	1,985