GUARANTOR FINANCIAL STATEMENTS

All of the senior notes issued by FCX 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 March 31, 2016, and December 31, 2015, and the related condensed consolidating statements of comprehensive (loss) income and cash flows for the three months ended March 31, 2016 and 2015 (in millions), which should be read in conjunction with FCX's notes to the consolidated financial statements.

CONDENSED CONSOLIDATING BALANCE SHEET

March 31, 2016



	FCX			FM O&G LLC			Non-guarantor					Consolidated
	Issuer			Guarantor			Subsidiaries		Eliminations			FCX
ASSETS
Current assets	$	272		$	2,600		$	8,092	$	(3,731	)	$	7,233
Property, plant, equipment and mining development costs, net	25			59			27,292		—			27,376
Oil and gas properties, net - full cost method:
Subject to amortization, less accumulated amortization and impairments	—			517			1,183		—			1,700
Not subject to amortization	—			415			1,326		2			1,743
Investments in consolidated subsidiaries	20,674			—			—		(20,674		)	—
Other assets	1,135			34			4,533		(1,090		)	4,612
Total assets	$	22,106		$	3,625		$	42,426	$	(25,493	)	$	42,664

LIABILITIES AND EQUITY
Current liabilities	$	2,714		$	660		$	4,782	$	(3,730	)	$	4,426
Long-term debt, less current portion	14,599			6,592			11,818		(13,371		)	19,638
Deferred income taxes	1,060		^a	—			3,382		—			4,442
Environmental and asset retirement obligations, less current portion	—			310			3,452		—			3,762
Investments in consolidated subsidiaries	—			483			7,775		(8,258		)	—
Other liabilities	41			3,355			1,751		(3,488		)	1,659
Total liabilities	18,414			11,400			32,960		(28,847		)	33,927

Redeemable noncontrolling interest	—			—			767		—			767

Equity:
Stockholders' equity	3,692			(7,775		)	4,966		2,809			3,692
Noncontrolling interests	—			—			3,733		545			4,278
Total equity	3,692			(7,775		)	8,699		3,354			7,970
Total liabilities and equity	$	22,106		$	3,625		$	42,426	$	(25,493	)	$	42,664


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

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 and impairments	—			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 STATEMENTS OF COMPREHENSIVE (LOSS) INCOME



Three Months Ended March 31, 2016
	FCX			FM O&G LLC				Non-guarantor							Consolidated
	Issuer			Guarantor				Subsidiaries				Eliminations			FCX
Revenues	$	—		$	78			$	3,449			$	—		$	3,527
Total costs and expenses	27			1,629			^a	5,741			^a	6			7,403
Operating loss	(27		)	(1,551		)		(2,292		)		(6		)	(3,876		)
Interest expense, net	(137		)	(4		)		(114		)		55			(200		)
Other income (expense), net	50			—				42				(54		)	38
Loss before income taxes and equity in affiliated companies' net (losses) earnings	(114		)	(1,555		)		(2,364		)		(5		)	(4,038		)
(Provision for) benefit from income taxes	(1,783		)	616				1,095				2			(70		)
Equity in affiliated companies' net (losses) earnings	(2,286		)	(2,704		)		(3,630		)		8,627			7
Net (loss) income	(4,183		)	(3,643		)		(4,899		)		8,624			(4,101		)
Net income and preferred dividends attributable to noncontrolling interests	—			—				(77		)		(6		)	(83		)
Net (loss) income attributable to common stockholders	$	(4,183	)	$	(3,643	)		$	(4,976	)		$	8,618		$	(4,184	)

Other comprehensive income (loss)	—			—				—				—			—
Total comprehensive (loss) income	$	(4,183	)	$	(3,643	)		$	(4,976	)		$	8,618		$	(4,184	)


a.	Includes charges totaling $1.3 billion at the FM O&G LLC guarantor and $2.5 billion at the non-guarantor subsidiaries related to impairment of FCX's oil and gas properties pursuant to full cost accounting rules.



Three Months Ended March 31, 2015
	FCX			FM O&G LLC				Non-guarantor							Consolidated
	Issuer			Guarantor				Subsidiaries				Eliminations			FCX
Revenues	$	—		$	181			$	3,972			$	—		$	4,153
Total costs and expenses	16			1,318			^a	5,798			^a	(16		)	7,116
Operating (loss) income	(16		)	(1,137		)		(1,826		)		16			(2,963		)
Interest expense, net	(115		)	(4		)		(57		)		30			(146		)
Other income (expense), net	29			—				8				(30		)	7
(Loss) income before income taxes and equity in affiliated companies' net (losses) earnings	(102		)	(1,141		)		(1,875		)		16			(3,102		)
(Provision for) benefit from income taxes	(421		)	1,157				(35		)		(6		)	695
Equity in affiliated companies' net (losses) earnings	(1,951		)	(2,359		)		(3,530		)		7,841			1
Net (loss) income	(2,474		)	(2,343		)		(5,440		)		7,851			(2,406		)
Net income and preferred dividends attributable to noncontrolling interests	—			—				(56		)		(12		)	(68		)
Net (loss) income attributable to common stockholders	$	(2,474	)	$	(2,343	)		$	(5,496	)		$	7,839		$	(2,474	)

Other comprehensive income (loss)	12			—				12				(12		)	12
Total comprehensive (loss) income	$	(2,462	)	$	(2,343	)		$	(5,484	)		$	7,827		$	(2,462	)


a.	Includes charges totaling $1.1 billion at the FM O&G LLC guarantor and $2.0 billion at the non-guarantor subsidiaries related to impairment of FCX's oil and gas properties pursuant to full cost accounting rules.

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

Three Months Ended March 31, 2016



	FCX			FM O&G LLC			Non-guarantor						Consolidated
	Issuer			Guarantor			Subsidiaries			Eliminations			FCX
Cash flow from operating activities:
Net (loss) income	$	(4,183	)	$	(3,643	)	$	(4,899	)	$	8,624		$	(4,101	)
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities:
Depreciation, depletion and amortization	1			51			677			(7		)	722
Impairment of oil and gas properties	—			1,291			2,483			13			3,787
Equity in losses (earnings) of consolidated subsidiaries	2,286			2,704			3,630			(8,627		)	(7		)
Other, net	127			7			17			—			151
Changes in working capital and other tax payments	1,652			(442		)	(1,024		)	2			188
Net cash (used in) provided by operating activities	(117		)	(32		)	884			5			740

Cash flow from investing activities:
Capital expenditures	—			(244		)	(736		)	(2		)	(982		)
Intercompany loans	(561		)	(377		)	—			938			—
Dividends from (investments in) consolidated subsidiaries	358			(41		)	35			(352		)	—
Other, net	—			2			—			—			2
Net cash (used in) provided by investing activities	(203		)	(660		)	(701		)	584			(980		)

Cash flow from financing activities:
Proceeds from debt	1,060			—			736			—			1,796
Repayments of debt	(750		)	—			(692		)	—			(1,442		)
Intercompany loans	—			716			222			(938		)	—
Net proceeds from sale of common stock	32			—			42			(42		)	32
Cash dividends and distributions paid, and contributions received	(4		)	—			(373		)	355			(22		)
Other, net	(18		)	(24		)	(11		)	36			(17		)
Net cash provided by (used in) financing activities	320			692			(76		)	(589		)	347

Net increase in cash and cash equivalents	—			—			107			—			107
Cash and cash equivalents at beginning of period	—			—			224			—			224
Cash and cash equivalents at end of period	$	—		$	—		$	331		$	—		$	331

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

Three Months Ended March 31, 2015



	FCX			FM O&G LLC			Non-guarantor						Consolidated
	Issuer			Guarantor			Subsidiaries			Eliminations			FCX
Cash flow from operating activities:
Net (loss) income	$	(2,474	)	$	(2,343	)	$	(5,440	)	$	7,851		$	(2,406	)
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities:
Depreciation, depletion and amortization	1			119			835			(16		)	939
Impairment of oil and gas properties	—			1,062			2,042			—			3,104
Net gains on crude oil derivative contracts	—			(52		)	—			—			(52		)
Equity in losses (earnings) of consolidated subsidiaries	1,951			2,359			3,530			(7,841		)	(1		)
Other, net	(701		)	6			(86		)	—			(781		)
Changes in working capital and other tax payments	1,171			(1,321		)	58			6			(86		)
Net cash (used in) provided by operating activities	(52		)	(170		)	939			—			717

Cash flow from investing activities:
Capital expenditures	—			(302		)	(1,565		)	—			(1,867		)
Intercompany loans	(905		)	(400		)	—			1,305			—
Dividends from (investments in) consolidated subsidiaries	310			(14		)	32			(328		)	—
Other, net	—			—			127			—			127
Net cash (used in) provided by investing activities	(595		)	(716		)	(1,406		)	977			(1,740		)

Cash flow from financing activities:
Proceeds from debt	1,515			—			758			—			2,273
Repayments of debt	(530		)	—			(272		)	—			(802		)
Intercompany loans	—			903			402			(1,305		)	—
Cash dividends and distributions paid, and contributions received	(327		)	—			(319		)	296			(350		)
Other, net	(11		)	(18		)	(16		)	32			(13		)
Net cash provided by (used in) financing activities	647			885			553			(977		)	1,108

Net (decrease) increase in cash and cash equivalents	—			(1		)	86			—			85
Cash and cash equivalents at beginning of period	—			1			463			—			464
Cash and cash equivalents at end of period	$	—		$	—		$	549		$	—		$	549