Delaware | 001-11307-01 | 74-2480931 | ||
(State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification Number) |
333 North Central Avenue | |
Phoenix, AZ | 85004 |
(Address of principal executive offices) | (Zip Code) |
333 North Central Avenue Phoenix, AZ 85004 | Financial Contacts: | Media Contact: | |||
Kathleen L. Quirk (602) 366-8016 | David P. Joint (504) 582-4203 | Eric E. Kinneberg (602) 366-7994 |
▪ | Net loss attributable to common stock totaled $479 million, $0.38 per share, for second-quarter 2016. After adjusting for net charges totaling $452 million, $0.36 per share, second-quarter 2016 adjusted net loss attributable to common stock totaled $27 million, $0.02 per share. |
▪ | Consolidated sales (including volumes from Tenke Fungurume (Tenke), which is being reported as a discontinued operation) totaled 1.1 billion pounds of copper, 156 thousand ounces of gold, 19 million pounds of molybdenum and 12.4 million barrels of oil equivalents (MMBOE) for second-quarter 2016, compared with 964 million pounds of copper, 352 thousand ounces of gold, 23 million pounds of molybdenum and 13.1 MMBOE for second-quarter 2015. |
▪ | Consolidated sales for the year 2016 (including volumes from Tenke through the anticipated closing date) are expected to approximate 5.0 billion pounds of copper, 1.7 million ounces of gold, 76 million pounds of molybdenum and 47.4 MMBOE, including 1.3 billion pounds of copper, 410 thousand ounces of gold, 20 million pounds of molybdenum and 11.4 MMBOE for third-quarter 2016. |
▪ | Average realized prices were $2.18 per pound of copper, $1,292 per ounce for gold and $41.10 per barrel for oil for second-quarter 2016. |
▪ | Average unit net cash costs were $1.33 per pound of copper for mining operations and $15.00 per barrel of oil equivalents (BOE) for oil and gas operations for second-quarter 2016. Unit net cash costs for the year 2016 are expected to average $1.06 per pound of copper for mining operations (including Tenke) and $15.50 per BOE for oil and gas operations. |
▪ | Operating cash flows totaled $874 million (including $278 million in working capital sources and changes in other tax payments) for second-quarter 2016. Based on current sales volume and cost estimates and assuming average prices of $2.25 per pound for copper, $1,300 per ounce for gold, $6 per pound for molybdenum and $48 per barrel for Brent crude oil for the second half of 2016, operating cash flows for the year 2016 are expected to approximate $4.5 billion (including $0.7 billion in working capital sources and changes in other tax payments). |
▪ | Capital expenditures totaled $833 million for second-quarter 2016, consisting of $441 million for mining operations (including $350 million for major projects) and $392 million for oil and gas operations. Capital expenditures are expected to approximate $3.1 billion for the year 2016, consisting of $1.7 billion for mining operations (including $1.3 billion for major projects) and $1.4 billion for oil and gas operations. |
▪ | During second-quarter 2016, FCX completed previously announced asset sales for aggregate cash consideration of $1.3 billion, including the $1.0 billion sale of an additional 13 percent undivided interest in Morenci. In May 2016, FCX entered into a definitive agreement to sell its interest in TF Holdings Limited for $2.65 billion in cash and contingent consideration of up to $120 million. In accordance with accounting guidelines, the results of Tenke are reported as discontinued operations for all periods presented. |
▪ | During second-quarter 2016, FCX entered into agreements to terminate FM O&G's three drilling rig contracts for a total of $755 million and potential contingent consideration depending on future oil prices. The settlements result in aggregate savings of approximately $350 million, compared to the previously contracted commitments. |
▪ | Through July 25, 2016, FCX exchanged $369 million in senior notes for approximately 28 million shares of its common stock in a series of privately negotiated transactions, including $268 million exchanged during second-quarter 2016. |
▪ | At June 30, 2016, consolidated debt totaled $19.3 billion and consolidated cash totaled $352 million. At June 30, 2016, FCX had no borrowings and $3.5 billion available under its $3.5 billion revolving credit facility. |
Freeport-McMoRan | 1 |
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||||||
(in millions, except per share amounts) | ||||||||||||||||
Revenuesa,b | $ | 3,334 | $ | 3,938 | $ | 6,576 | $ | 7,709 | ||||||||
Operating income (loss)a | $ | 18 | $ | (2,421 | ) | $ | (3,854 | ) | $ | (5,451 | ) | |||||
Net loss from continuing operations | $ | (229 | ) | $ | (1,828 | ) | $ | (4,326 | ) | $ | (4,275 | ) | ||||
Net (loss) income from discontinued operationsc | $ | (181 | ) | $ | 29 | $ | (185 | ) | $ | 70 | ||||||
Net loss attributable to common stockd,e | $ | (479 | ) | $ | (1,851 | ) | $ | (4,663 | ) | $ | (4,325 | ) | ||||
Diluted net (loss) income per share of common stock: | ||||||||||||||||
Continuing operations | $ | (0.23 | ) | $ | (1.78 | ) | $ | (3.54 | ) | $ | (4.18 | ) | ||||
Discontinued operations | (0.15 | ) | — | (0.16 | ) | 0.02 | ||||||||||
$ | (0.38 | ) | $ | (1.78 | ) | $ | (3.70 | ) | $ | (4.16 | ) | |||||
Diluted weighted-average common shares outstanding | 1,269 | 1,040 | 1,260 | 1,040 | ||||||||||||
Operating cash flowsf | $ | 874 | $ | 1,069 | $ | 1,614 | $ | 1,786 | ||||||||
Capital expenditures | $ | 833 | $ | 1,661 | $ | 1,815 | $ | 3,528 | ||||||||
At June 30: | ||||||||||||||||
Cash and cash equivalents | $ | 352 | $ | 318 | $ | 352 | $ | 318 | ||||||||
Total debt, including current portion | $ | 19,319 | $ | 20,902 | $ | 19,319 | $ | 20,902 | ||||||||
a. | For segment financial results, refer to the supplemental schedules, "Business Segments," beginning on page XII, which are available on FCX's website, "fcx.com." |
b. | Includes (unfavorable) favorable adjustments to provisionally priced concentrate and cathode copper sales recognized in prior periods totaling $(28) million ($(15) million to net loss attributable to common stock from continuing operations or $(0.01) per share) in second-quarter 2016, $(22) million ($(11) million to net loss attributable to common stock from continuing operations or $(0.01) per share) in second-quarter 2015, $5 million ($2 million to net loss attributable to common stock from continuing operations or less than $0.01 per share) for the first six months of 2016 and $(99) million ($(47) million to net loss attributable to common stock from continuing operations or $(0.04) per share) for the first six months of 2015. For further discussion, refer to the supplemental schedule, "Derivative Instruments," on page XI, which is available on FCX's website, "fcx.com." |
Freeport-McMoRan | 2 |
c. | Net (loss) income from discontinued operations includes charges for (i) allocated interest expense totaling $11 million in second-quarter 2016, $7 million in second-quarter 2015, $21 million for the first six months of 2016 and $14 million for the first six months of 2015 associated with the portion of the term loan that is required to be repaid as a result of the sale of FCX's interest in Tenke and (ii) income tax (benefit) provision totaling $(16) million in second-quarter 2016, $12 million in second-quarter 2015, $(23) million for the first six months of 2016 and $31 million for the first six months of 2015. In accordance with accounting guidelines, the second quarter and first six months of 2016 are also net of an estimated loss on disposal, which will be adjusted through closing of the transaction (refer to the supplemental schedule, “Adjusted Net (Loss) Income,” on page IX, which is available on FCX’s website, “fcx.com”). |
d. | Includes net charges totaling $452 million ($0.36 per share) in second-quarter 2016, $2.0 billion ($1.92 per share) in second-quarter 2015, $4.4 billion ($3.53 per share) for the first six months of 2016 and $4.4 billion ($4.24 per share) for the first six months of 2015, which are described in the supplemental schedule, “Adjusted Net (Loss) Income,” on page IX, which is available on FCX’s website, “fcx.com.” |
e. | FCX defers 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 the supplemental schedule, "Deferred Profits," on page XI, which is available on FCX's website, "fcx.com." |
f. | Includes net working capital sources (uses) and changes in other tax payments of $278 million in second-quarter 2016, $(104) million in second-quarter 2015, $466 million for the first six months of 2016 and $(190) million for the first six months of 2015. |
Freeport-McMoRan | 3 |
Closing or Expected | Cash | |||||
Closing Date | Consideration | a | ||||
Morenci (13 percent interest) | Second-quarter 2016 | $ | 1.00 | |||
Timok exploration project in Serbia | Second-quarter 2016 | 0.13 | b | |||
Oil and gas royalty interests | Second-quarter 2016 | 0.10 | ||||
Other land sales | Second-quarter 2016 | 0.06 | ||||
Haynesville shale assets | Third-quarter 2016 | 0.09 | ||||
Tenke | Fourth-quarter 2016 | 2.65 | c | |||
Total, excluding potential transactions and contingent consideration | 4.03 | |||||
Potential Freeport Cobalt/Kinsanfu transactionsd | 0.15 | |||||
Contingent considerationb,c | 0.23 | |||||
Total | $ | 4.41 |
a. | Reflects aggregate cash consideration. |
b. | Excludes contingent consideration of up to $107 million payable to FCX in stages based upon achievement of defined development milestones. |
c. | Excludes contingent consideration of up to $120 million, consisting of $60 million if the average copper price exceeds $3.50 per pound and $60 million if the average cobalt price exceeds $20 per pound, for the 24-month period ending December 31, 2019. |
d. | FCX has agreed to negotiate exclusively with China Molybdenum Co., Ltd. (CMOC) until December 31, 2016, to enter into a definitive agreement to sell its interests in Freeport Cobalt for $100 million and the Kinsanfu exploration project in the Democratic Republic of Congo (DRC) for $50 million in separate transactions. |
Three Months Ended | Six Months Ended | ||||||||||||||||
June 30, | June 30, | ||||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||||
Copper (millions of recoverable pounds) | |||||||||||||||||
Productiona | 1,133 | 977 | 2,230 | 1,892 | |||||||||||||
Sales, excluding purchasesa | 1,111 | 964 | 2,234 | 1,924 | |||||||||||||
Average realized price per pounda | $ | 2.18 | $ | 2.71 | $ | 2.16 | $ | 2.70 | |||||||||
Site production and delivery costs per poundb | $ | 1.43 | $ | 1.85 | $ | 1.47 | $ | 1.89 | |||||||||
Unit net cash costs per poundb | $ | 1.33 | $ | 1.50 | $ | 1.35 | $ | 1.57 | |||||||||
Gold (thousands of recoverable ounces) | |||||||||||||||||
Production | 166 | 367 | 350 | 626 | |||||||||||||
Sales, excluding purchases | 156 | 352 | 357 | 615 | |||||||||||||
Average realized price per ounce | $ | 1,292 | $ | 1,174 | $ | 1,259 | $ | 1,183 | |||||||||
Molybdenum (millions of recoverable pounds) | |||||||||||||||||
Production | 19 | 25 | 39 | 49 | |||||||||||||
Sales, excluding purchases | 19 | 23 | 36 | 46 | |||||||||||||
Average realized price per pound | $ | 8.34 | $ | 9.51 | $ | 7.99 | $ | 9.84 | |||||||||
Oil Equivalents | |||||||||||||||||
Sales volumes | |||||||||||||||||
MMBOE | 12.4 | 13.1 | 24.5 | 25.6 | |||||||||||||
Thousand BOE (MBOE) per day | 136 | 144 | 135 | 142 | |||||||||||||
Cash operating margin per BOEc | |||||||||||||||||
Realized revenues | $ | 32.70 | $ | 50.04 | d | $ | 28.29 | $ | 46.95 | d | |||||||
Cash production costs | (15.00 | ) | (19.04 | ) | (15.42 | ) | (19.62 | ) | |||||||||
Cash operating margin | $ | 17.70 | $ | 31.00 | $ | 12.87 | $ | 27.33 |
Freeport-McMoRan | 4 |
a. | Includes production and sales volumes from the Tenke mine, which is reported as a discontinued operation. Copper sales volumes from the Tenke mine totaled 124 million pounds in second-quarter 2016, 104 million pounds in second-quarter 2015, 247 million pounds for the first six months of 2016 and 237 million pounds for the first six months of 2015. For realized copper prices (excluding Tenke), refer to the supplemental schedules, "Selected Mining Operating Data," beginning on page I, which are available on FCX's website, "fcx.com." |
b. | Reflects per pound weighted-average production and delivery costs and unit net cash costs (net of by-product credits) for all copper mines (including Tenke), before net noncash and other costs. Excluding the Tenke mine, mining unit net cash costs averaged $1.33 per pound in second-quarter 2016, $1.56 per pound in second-quarter 2015, $1.36 per pound for the first six months of 2016 and $1.63 per pound for the first six months of 2015. For reconciliations of per pound unit costs by operating division to production and delivery costs applicable to sales reported in FCX's consolidated financial statements, refer to the supplemental schedules, "Product Revenues and Production Costs," beginning on page XV, which are available on FCX's website, "fcx.com." |
c. | Cash operating margin for oil and gas operations reflects realized revenues less cash production costs. Cash production costs exclude accretion and other costs. For reconciliations of realized revenues and cash production costs per BOE to revenues and production and delivery costs reported in FCX's consolidated financial statements, refer to the supplemental schedules, “Product Revenues and Production Costs,” beginning on page XV, which are available on FCX's website, “fcx.com.” |
d. | Includes realized cash gains on crude oil derivative contracts of $7.73 per BOE in second-quarter 2015 and $7.87 per BOE for the first six months of 2015. FCX currently does not have oil and gas derivative contracts in place for 2016 or future years. |
Freeport-McMoRan | 5 |
Three Months Ended | Six Months Ended | ||||||||||||||||
June 30, | June 30, | ||||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||||
Copper (millions of recoverable pounds) | |||||||||||||||||
Production | 469 | 469 | 956 | 921 | |||||||||||||
Sales | 464 | 486 | 967 | 958 | |||||||||||||
Average realized price per pound | $ | 2.18 | $ | 2.77 | $ | 2.17 | $ | 2.73 | |||||||||
Molybdenum (millions of recoverable pounds) | |||||||||||||||||
Productiona | 8 | 10 | 16 | 19 | |||||||||||||
Unit net cash costs per pound of copperb | |||||||||||||||||
Site production and delivery, excluding adjustments | $ | 1.40 | $ | 1.78 | $ | 1.40 | $ | 1.79 | |||||||||
By-product credits | (0.11 | ) | (0.16 | ) | (0.10 | ) | (0.17 | ) | |||||||||
Treatment charges | 0.11 | 0.12 | 0.11 | 0.13 | |||||||||||||
Unit net cash costs | $ | 1.40 | $ | 1.74 | $ | 1.41 | $ | 1.75 | |||||||||
a. | Refer to summary operating data on page 4 for FCX's consolidated molybdenum sales, which includes sales of molybdenum produced at the North America copper mines. |
b. | For a reconciliation of unit net cash costs per pound to production and delivery costs applicable to sales reported in FCX's consolidated financial statements, refer to the supplemental schedules, "Product Revenues and Production Costs," beginning on page XV, which are available on FCX's website, "fcx.com." |
Freeport-McMoRan | 6 |
Three Months Ended | Six Months Ended | ||||||||||||||||
June 30, | June 30, | ||||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||||
Copper (millions of recoverable pounds) | |||||||||||||||||
Production | 334 | 188 | 669 | 381 | |||||||||||||
Sales | 327 | 178 | 650 | 378 | |||||||||||||
Average realized price per pound | $ | 2.19 | $ | 2.69 | $ | 2.18 | $ | 2.68 | |||||||||
Molybdenum (millions of recoverable pounds) | |||||||||||||||||
Productiona | 4 | 2 | 9 | 4 | |||||||||||||
Unit net cash costs per pound of copperb | |||||||||||||||||
Site production and delivery, excluding adjustments | $ | 1.20 | $ | 1.77 | $ | 1.22 | $ | 1.76 | |||||||||
By-product credits | (0.12 | ) | (0.04 | ) | (0.10 | ) | (0.06 | ) | |||||||||
Treatment charges | 0.23 | 0.17 | 0.23 | 0.17 | |||||||||||||
Royalty on metals | — | — | 0.01 | — | |||||||||||||
Unit net cash costs | $ | 1.31 | $ | 1.90 | $ | 1.36 | $ | 1.87 | |||||||||
Freeport-McMoRan | 7 |
a. | Refer to summary operating data on page 4 for FCX's consolidated molybdenum sales, which includes sales of molybdenum produced at Cerro Verde. |
b. | For a reconciliation of unit net cash costs per pound to production and delivery costs applicable to sales reported in FCX's consolidated financial statements, refer to the supplemental schedules, "Product Revenues and Production Costs," beginning on page XV, which are available on FCX's website, "fcx.com." |
Freeport-McMoRan | 8 |
Three Months Ended | Six Months Ended | ||||||||||||||||
June 30, | June 30, | ||||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||||
Copper (millions of recoverable pounds) | |||||||||||||||||
Production | 208 | 205 | 373 | 359 | |||||||||||||
Sales | 196 | 196 | 370 | 351 | |||||||||||||
Average realized price per pound | $ | 2.20 | $ | 2.61 | $ | 2.17 | $ | 2.66 | |||||||||
Gold (thousands of recoverable ounces) | |||||||||||||||||
Production | 158 | 360 | 336 | 615 | |||||||||||||
Sales | 151 | 346 | 346 | 606 | |||||||||||||
Average realized price per ounce | $ | 1,292 | $ | 1,173 | $ | 1,260 | $ | 1,183 | |||||||||
Unit net cash costs per pound of coppera | |||||||||||||||||
Site production and delivery, excluding adjustments | $ | 1.77 | $ | 2.26 | $ | 1.99 | $ | 2.51 | |||||||||
Gold and silver credits | (1.05 | ) | (2.13 | ) | (1.27 | ) | (2.11 | ) | |||||||||
Treatment charges | 0.29 | 0.32 | 0.30 | 0.31 | |||||||||||||
Export duties | 0.08 | 0.18 | 0.08 | 0.16 | |||||||||||||
Royalty on metals | 0.11 | 0.18 | 0.12 | 0.17 | |||||||||||||
Unit net cash costs | $ | 1.20 | $ | 0.81 | $ | 1.22 | $ | 1.04 | |||||||||
a. | For a reconciliation of unit net cash costs per pound to production and delivery costs applicable to sales reported in FCX's consolidated financial statements, refer to the supplemental schedules, "Product Revenues and Production Costs," beginning on page XV, which are available on FCX's website, "fcx.com." |
Freeport-McMoRan | 9 |
Three Months Ended | Six Months Ended | ||||||||||||||||
June 30, | June 30, | ||||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||||
Copper (millions of recoverable pounds) | |||||||||||||||||
Production | 122 | 115 | 232 | 231 | |||||||||||||
Sales | 124 | 104 | 247 | 237 | |||||||||||||
Average realized price per pounda | $ | 2.07 | $ | 2.63 | $ | 2.08 | $ | 2.66 | |||||||||
Cobalt (millions of contained pounds) | |||||||||||||||||
Production | 10 | 9 | 19 | 16 | |||||||||||||
Sales | 10 | 8 | 20 | 16 | |||||||||||||
Average realized price per pound | $ | 6.58 | $ | 9.27 | $ | 6.52 | $ | 9.23 | |||||||||
Unit net cash costs per pound of copperb | |||||||||||||||||
Site production and delivery, excluding adjustments | $ | 1.62 | $ | 1.54 | $ | 1.63 | $ | 1.56 | |||||||||
Cobalt creditsc | (0.33 | ) | (0.53 | ) | (0.35 | ) | (0.44 | ) | |||||||||
Royalty on metals | 0.05 | 0.06 | 0.05 | 0.06 | |||||||||||||
Unit net cash costs | $ | 1.34 | $ | 1.07 | $ | 1.33 | $ | 1.18 | |||||||||
a. | Includes point-of-sale transportation costs as negotiated in customer contracts. |
b. | For a reconciliation of unit net cash costs per pound to production and delivery costs applicable to sales reported in net (loss) income from discontinued operations in FCX's consolidated financial statements, refer to the supplemental schedules, "Product Revenues and Production Costs," beginning on page XV, which are available on FCX's website, "fcx.com." |
c. | Net of cobalt downstream processing and freight costs. |
Freeport-McMoRan | 10 |
Freeport-McMoRan | 11 |
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||||||
Financial Summary (in millions) | ||||||||||||||||
Realized revenuesa | $ | 405 | $ | 656 | b | $ | 694 | $ | 1,203 | |||||||
Cash production costsa | (186 | ) | (249 | ) | (378 | ) | (503 | ) | ||||||||
Cash operating margin | $ | 219 | $ | 407 | $ | 316 | $ | 700 | ||||||||
Capital expendituresc | $ | 388 | $ | 777 | $ | 868 | $ | 1,795 | ||||||||
Sales Volumes | ||||||||||||||||
Oil (MMBbls) | 8.7 | 8.6 | 17.0 | 17.0 | ||||||||||||
Natural gas (Bcf) | 18.8 | 23.5 | 38.4 | 45.3 | ||||||||||||
NGLs (MMBbls) | 0.6 | 0.6 | 1.2 | 1.1 | ||||||||||||
MMBOE | 12.4 | 13.1 | 24.5 | 25.6 | ||||||||||||
Average Realized Pricesa | ||||||||||||||||
Oil (per barrel) | $ | 41.10 | $ | 67.61 | b | $ | 35.21 | $ | 62.13 | b | ||||||
Natural gas (per million British thermal units, or MMBtu) | $ | 2.04 | $ | 2.66 | $ | 2.02 | $ | 2.75 | ||||||||
NGLs (per barrel) | $ | 18.00 | $ | 20.50 | $ | 16.44 | $ | 21.71 | ||||||||
Cash Operating Margin per BOEa | ||||||||||||||||
Realized revenues | $ | 32.70 | $ | 50.04 | b | $ | 28.29 | $ | 46.95 | b | ||||||
Cash production costs | (15.00 | ) | (19.04 | ) | (15.42 | ) | (19.62 | ) | ||||||||
Cash operating margin | $ | 17.70 | $ | 31.00 | $ | 12.87 | $ | 27.33 | ||||||||
a. | Cash operating margin for oil and gas operations reflects realized revenues less cash production costs. Cash production costs exclude accretion and other costs. 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 FCX's consolidated financial statements, refer to the supplemental schedules, “Product Revenues and Production Costs,” beginning on page XV, which are available on FCX's website, “fcx.com.” |
b. | Includes realized cash gains on crude oil derivative contracts of $101 million ($11.79 per barrel of oil and $7.73 per BOE) in second-quarter 2015 and $201 million ($11.88 per barrel of oil and $7.87 per BOE) for the first six months of 2015. FCX currently does not have oil and gas derivative contracts in place for 2016 or future years. |
c. | Excludes international oil and gas expenditures totaling $4 million in second-quarter 2016, $29 million in second-quarter 2015, $47 million for the first six months of 2016 and $44 million for the first six months of 2015, primarily related to the Morocco oil and gas properties. |
Freeport-McMoRan | 12 |
Three Months Ended | Six Months Ended | |||||||||||
June 30, | June 30, | |||||||||||
Sales Volumes (MBOE per day) | 2016 | 2015 | 2016 | 2015 | ||||||||
GOMa | 88 | 80 | 85 | 77 | ||||||||
California | 32 | 38 | 32 | 39 | ||||||||
Haynesville/Madden/Otherb | 16 | 26 | 18 | 26 | ||||||||
Total oil and gas operations | 136 | 144 | 135 | 142 | ||||||||
a. | Includes sales from properties on the GOM Shelf and in the Deepwater GOM, and the Inboard Lower Tertiary/Cretaceous natural gas trend. |
b. | In July 2016, FM O&G completed the sale of the Haynesville shale assets. |
Freeport-McMoRan | 13 |
Freeport-McMoRan | 14 |
Cash at domestic companies | $ | 20 | ||
Cash at international operations | 332 | |||
Total consolidated cash and cash equivalents | 352 | |||
Noncontrolling interests' share | (102 | ) | ||
Cash, net of noncontrolling interests' share | 250 | |||
Withholding taxes and other | (23 | ) | ||
Net cash available | $ | 227 | ||
Weighted- | ||||||
Average | ||||||
Interest Rate | ||||||
FCX Senior Notes | $ | 11.6 | 3.8% | |||
FCX Term Loan | 2.5 | a | 3.2% | |||
FM O&G Senior Notes | 2.5 | 6.6% | ||||
Cerro Verde Credit Facility | 1.8 | 2.8% | ||||
Other debt | 0.9 | 4.7% | ||||
$ | 19.3 | 4.0% | ||||
a. | In accordance with the mandatory prepayment provision of the amended Term Loan, 50 percent of the proceeds associated with the Tenke sale must be applied toward repaying the Term Loan. |
Freeport-McMoRan | 15 |
Freeport-McMoRan | 16 |
FREEPORT-McMoRan INC. | ||||||||||||||
SELECTED MINING OPERATING DATA | ||||||||||||||
Three Months Ended June 30, | ||||||||||||||
Production | Sales | |||||||||||||
COPPER (millions of recoverable pounds) | 2016 | 2015 | 2016 | 2015 | ||||||||||
(FCX's net interest in %) | ||||||||||||||
North America | ||||||||||||||
Morenci (72%)a | 224 | 219 | 221 | 225 | ||||||||||
Bagdad (100%) | 44 | 51 | 45 | 56 | ||||||||||
Safford (100%) | 53 | 39 | 52 | 40 | ||||||||||
Sierrita (100%) | 41 | 48 | 40 | 51 | ||||||||||
Miami (100%) | 6 | 12 | 7 | 12 | ||||||||||
Chino (100%) | 80 | 76 | 78 | 78 | ||||||||||
Tyrone (100%) | 19 | 23 | 19 | 23 | ||||||||||
Other (100%) | 2 | 1 | 2 | 1 | ||||||||||
Total North America | 469 | 469 | 464 | 486 | ||||||||||
South America | ||||||||||||||
Cerro Verde (53.56%) | 278 | 104 | 270 | 97 | ||||||||||
El Abra (51%) | 56 | 84 | 57 | 81 | ||||||||||
Total South America | 334 | 188 | 327 | 178 | ||||||||||
Indonesia | ||||||||||||||
Grasberg (90.64%)b | 208 | 205 | 196 | 196 | ||||||||||
Consolidated - continuing operations | 1,011 | 862 | 987 | c | 860 | c | ||||||||
Discontinued operation - Tenke Fungurume (Tenke) (56%) | 122 | 115 | 124 | 104 | ||||||||||
Total | 1,133 | 977 | 1,111 | 964 | ||||||||||
Less noncontrolling interests | 229 | 160 | 226 | 149 | ||||||||||
Net | 904 | 817 | 885 | 815 | ||||||||||
Average realized price per pound | $ | 2.19 | $ | 2.72 | ||||||||||
Average realized price per pound (including Tenke) | $ | 2.18 | $ | 2.71 | ||||||||||
GOLD (thousands of recoverable ounces) | ||||||||||||||
(FCX's net interest in %) | ||||||||||||||
North America (100%) | 8 | 7 | 5 | 6 | ||||||||||
Indonesia (90.64%)b | 158 | 360 | 151 | 346 | ||||||||||
Consolidated | 166 | 367 | 156 | 352 | ||||||||||
Less noncontrolling interests | 14 | 34 | 14 | 33 | ||||||||||
Net | 152 | 333 | 142 | 319 | ||||||||||
Average realized price per ounce | $ | 1,292 | $ | 1,174 | ||||||||||
MOLYBDENUM (millions of recoverable pounds) | ||||||||||||||
(FCX's net interest in %) | ||||||||||||||
Henderson (100%) | 3 | 7 | N/A | N/A | ||||||||||
Climax (100%) | 4 | 6 | N/A | N/A | ||||||||||
North America copper mines (100%)a | 8 | 10 | N/A | N/A | ||||||||||
Cerro Verde (53.56%) | 4 | 2 | N/A | N/A | ||||||||||
Consolidated | 19 | 25 | 19 | 23 | ||||||||||
Less noncontrolling interests | 2 | 1 | 2 | 1 | ||||||||||
Net | 17 | 24 | 17 | 22 | ||||||||||
Average realized price per pound | $ | 8.34 | $ | 9.51 | ||||||||||
COBALT (millions of contained pounds) | ||||||||||||||
(FCX's net interest in %) | ||||||||||||||
Discontinued operation - Tenke (56%) | 10 | 9 | 10 | 8 | ||||||||||
Less noncontrolling interests | 4 | 4 | 5 | 4 | ||||||||||
Net | 6 | 5 | 5 | 4 | ||||||||||
Average realized price per pound | $ | 6.58 | $ | 9.27 | ||||||||||
a. Amounts are net of Morenci's undivided joint venture partner's interest; effective May 31, 2016, FCX's undivided interest in Morenci was prospectively reduced from 85 percent to 72 percent. | ||||||||||||||
b. Amounts are net of Grasberg's joint venture partner's interest, which varies in accordance with the terms of the joint venture agreement. | ||||||||||||||
c. Consolidated sales volumes exclude purchased copper of 43 million pounds in second-quarter 2016 and 24 million pounds in second-quarter 2015. |
FREEPORT-McMoRan INC. | ||||||||||||||
SELECTED MINING OPERATING DATA (continued) | ||||||||||||||
Six Months Ended June 30, | ||||||||||||||
Production | Sales | |||||||||||||
COPPER (millions of recoverable pounds) | 2016 | 2015 | 2016 | 2015 | ||||||||||
(FCX's net interest in %) | ||||||||||||||
North America | ||||||||||||||
Morenci (72%)a | 456 | 424 | 459 | 436 | ||||||||||
Bagdad (100%) | 92 | 104 | 95 | 114 | ||||||||||
Safford (100%) | 109 | 79 | 111 | 81 | ||||||||||
Sierrita (100%) | 82 | 95 | 83 | 100 | ||||||||||
Miami (100%) | 14 | 23 | 16 | 25 | ||||||||||
Chino (100%) | 161 | 149 | 161 | 153 | ||||||||||
Tyrone (100%) | 39 | 45 | 39 | 47 | ||||||||||
Other (100%) | 3 | 2 | 3 | 2 | ||||||||||
Total North America | 956 | 921 | 967 | 958 | ||||||||||
South America | ||||||||||||||
Cerro Verde (53.56%) | 550 | 211 | 526 | 207 | ||||||||||
El Abra (51%) | 119 | 170 | 124 | 171 | ||||||||||
Total South America | 669 | 381 | 650 | 378 | ||||||||||
Indonesia | ||||||||||||||
Grasberg (90.64%)b | 373 | 359 | 370 | 351 | ||||||||||
Consolidated - continuing operations | 1,998 | 1,661 | 1,987 | c | 1,687 | c | ||||||||
Discontinued operation - Tenke (56%) | 232 | 231 | 247 | 237 | ||||||||||
Total | 2,230 | 1,892 | 2,234 | 1,924 | ||||||||||
Less noncontrolling interests | 450 | 317 | 448 | 317 | ||||||||||
Net | 1,780 | 1,575 | 1,786 | 1,607 | ||||||||||
Average realized price per pound | $ | 2.17 | $ | 2.71 | ||||||||||
Average realized price per pound (including Tenke) | $ | 2.16 | $ | 2.70 | ||||||||||
GOLD (thousands of recoverable ounces) | ||||||||||||||
(FCX's net interest in %) | ||||||||||||||
North America (100%) | 14 | 11 | 11 | 9 | ||||||||||
Indonesia (90.64%)b | 336 | 615 | 346 | 606 | ||||||||||
Consolidated | 350 | 626 | 357 | 615 | ||||||||||
Less noncontrolling interests | 31 | 58 | 32 | 57 | ||||||||||
Net | 319 | 568 | 325 | 558 | ||||||||||
Average realized price per ounce | $ | 1,259 | $ | 1,183 | ||||||||||
MOLYBDENUM (millions of recoverable pounds) | ||||||||||||||
(FCX's net interest in %) | ||||||||||||||
Henderson (100%) | 5 | 14 | N/A | N/A | ||||||||||
Climax (100%) | 9 | 12 | N/A | N/A | ||||||||||
North America copper mines (100%)a | 16 | 19 | N/A | N/A | ||||||||||
Cerro Verde (53.56%) | 9 | 4 | N/A | N/A | ||||||||||
Consolidated | 39 | 49 | 36 | 46 | ||||||||||
Less noncontrolling interests | 4 | 2 | 3 | 2 | ||||||||||
Net | 35 | 47 | 33 | 44 | ||||||||||
Average realized price per pound | $ | 7.99 | $ | 9.84 | ||||||||||
COBALT (millions of contained pounds) | ||||||||||||||
(FCX's net interest in %) | ||||||||||||||
Discontinued operation - Tenke (56%) | 19 | 16 | 20 | 16 | ||||||||||
Less noncontrolling interests | 8 | 7 | 9 | 7 | ||||||||||
Net | 11 | 9 | 11 | 9 | ||||||||||
Average realized price per pound | $ | 6.52 | $ | 9.23 | ||||||||||
a. Amounts are net of Morenci's undivided joint venture partner's interest; effective May 31, 2016, FCX's undivided interest in Morenci was prospectively reduced from 85 percent to 72 percent. | ||||||||||||||
b. Amounts are net of Grasberg's joint venture partner's interest, which varies in accordance with the terms of the joint venture agreement. | ||||||||||||||
c. Consolidated sales volumes exclude purchased copper of 70 million pounds for the first six months of 2016 and 64 million pounds for the first six months of 2015. |
FREEPORT-McMoRan INC. | ||||||||||||
SELECTED MINING OPERATING DATA (continued) | ||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||
100% North America Copper Mines | ||||||||||||
Solution Extraction/Electrowinning (SX/EW) Operations | ||||||||||||
Leach ore placed in stockpiles (metric tons per day) | 780,700 | 890,000 | 807,100 | 902,500 | ||||||||
Average copper ore grade (percent) | 0.33 | 0.26 | 0.32 | 0.25 | ||||||||
Copper production (millions of recoverable pounds) | 303 | 261 | 605 | 508 | ||||||||
Mill Operations | ||||||||||||
Ore milled (metric tons per day) | 300,400 | 316,000 | 299,500 | 308,800 | ||||||||
Average ore grades (percent): | ||||||||||||
Copper | 0.48 | 0.47 | 0.49 | 0.48 | ||||||||
Molybdenum | 0.03 | 0.03 | 0.03 | 0.03 | ||||||||
Copper recovery rate (percent) | 86.6 | 85.8 | 85.6 | 85.6 | ||||||||
Production (millions of recoverable pounds): | ||||||||||||
Copper | 219 | 247 | 445 | 488 | ||||||||
Molybdenum | 8 | 10 | 16 | 19 | ||||||||
100% South America Mining | ||||||||||||
SX/EW Operations | ||||||||||||
Leach ore placed in stockpiles (metric tons per day) | 170,400 | 237,000 | 155,500 | 235,300 | ||||||||
Average copper ore grade (percent) | 0.39 | 0.41 | 0.40 | 0.41 | ||||||||
Copper production (millions of recoverable pounds) | 82 | 109 | 172 | 223 | ||||||||
Mill Operations | ||||||||||||
Ore milled (metric tons per day) | 352,000 | 116,500 | 345,700 | 117,900 | ||||||||
Average ore grades: | ||||||||||||
Copper (percent) | 0.42 | 0.46 | 0.43 | 0.45 | ||||||||
Molybdenum (percent) | 0.02 | 0.01 | 0.02 | 0.02 | ||||||||
Copper recovery rate (percent) | 88.0 | 78.2 | 87.1 | 78.9 | ||||||||
Production (recoverable): | ||||||||||||
Copper (millions of pounds) | 252 | 79 | 497 | 158 | ||||||||
Molybdenum (millions of pounds) | 4 | 2 | 9 | 4 | ||||||||
100% Indonesia Mining | ||||||||||||
Ore milled (metric tons per day)a | ||||||||||||
Grasberg open pit | 110,200 | 134,200 | 108,000 | 121,200 | ||||||||
Deep Ore Zone underground mine | 36,700 | 42,700 | 40,500 | 45,800 | ||||||||
Deep Mill Level Zone (DMLZ) underground mineb | 4,900 | — | 4,500 | — | ||||||||
Grasberg Block Cave underground mineb | 2,600 | — | 2,400 | — | ||||||||
Big Gossan underground mineb | 1,000 | — | 600 | — | ||||||||
Total | 155,400 | 176,900 | 156,000 | 167,000 | ||||||||
Average ore grades: | ||||||||||||
Copper (percent) | 0.84 | 0.67 | 0.77 | 0.63 | ||||||||
Gold (grams per metric ton) | 0.48 | 0.86 | 0.50 | 0.78 | ||||||||
Recovery rates (percent): | ||||||||||||
Copper | 90.4 | 90.6 | 89.9 | 90.6 | ||||||||
Gold | 80.0 | 83.5 | 80.3 | 83.9 | ||||||||
Production (recoverable): | ||||||||||||
Copper (millions of pounds) | 226 | 205 | 409 | 359 | ||||||||
Gold (thousands of ounces) | 174 | 360 | 364 | 615 | ||||||||
100% Africa Mining (Discontinued Operation) | ||||||||||||
Ore milled (metric tons per day) | 15,900 | 15,300 | 15,500 | 14,900 | ||||||||
Average ore grades (percent): | ||||||||||||
Copper | 4.05 | 4.02 | 4.01 | 4.18 | ||||||||
Cobalt | 0.43 | 0.44 | 0.46 | 0.40 | ||||||||
Copper recovery rate (percent) | 94.5 | 93.9 | 93.7 | 93.9 | ||||||||
Production (millions of pounds): | ||||||||||||
Copper (recoverable) | 122 | 115 | 232 | 231 | ||||||||
Cobalt (contained) | 10 | 9 | 19 | 16 | ||||||||
100% Molybdenum Mines | ||||||||||||
Ore milled (metric tons per day) | 18,600 | 35,900 | 18,500 | 38,200 | ||||||||
Average molybdenum ore grade (percent) | 0.19 | 0.20 | 0.21 | 0.19 | ||||||||
Molybdenum production (millions of recoverable pounds) | 7 | 13 | 14 | 26 | ||||||||
a. Amounts represent the approximate average daily throughput processed at PT-FI's mill facilities from each producing mine and from development activities that result in metal production. | ||||||||||||
b. Targeted production rates once the DMLZ underground mine reaches full capacity are expected to approximate 80,000 metric tons of ore per day in 2021; production from the Grasberg Block Cave underground mine is expected to commence in 2018 and production from the Big Gossan underground mine is expected to restart in the first half of 2017. |
FREEPORT-McMoRan INC. | ||||||||||||||
SELECTED U.S. OIL AND GAS OPERATING DATA | ||||||||||||||
Three Months Ended June 30, | ||||||||||||||
Sales Volumes | Sales per Day | |||||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||||
Gulf of Mexico (GOM)a | ||||||||||||||
Oil (thousand barrels or MBbls) | 5,825 | 5,234 | 64 | 58 | ||||||||||
Natural gas (million cubic feet or MMcf) | 9,814 | 9,279 | 108 | 102 | ||||||||||
Natural gas liquids (NGLs, in MBbls) | 559 | 529 | 6 | 5 | ||||||||||
Thousand barrels of oil equivalents (MBOE) | 8,019 | 7,309 | 88 | 80 | ||||||||||
Average realized price per BOEb | $ | 35.02 | $ | 47.82 | ||||||||||
Cash production costs per BOEb | $ | 12.43 | $ | 16.98 | ||||||||||
Capital expenditures (in millions) | $ | 205 | $ | 676 | ||||||||||
CALIFORNIA | ||||||||||||||
Oil (MBbls) | 2,792 | 3,326 | 31 | 37 | ||||||||||
Natural gas (MMcf) | 405 | 562 | 5 | 6 | ||||||||||
NGLs (MBbls) | 30 | 42 | — | c | — | c | ||||||||
MBOE | 2,890 | 3,462 | 32 | 38 | ||||||||||
Average realized price per BOEb | $ | 36.70 | $ | 48.30 | ||||||||||
Cash production costs per BOEb | $ | 23.62 | $ | 27.13 | ||||||||||
Capital expenditures (in millions) | $ | 7 | $ | 24 | ||||||||||
HAYNESVILLE/MADDEN/OTHERd | ||||||||||||||
Oil (MBbls) | 37 | 39 | — | c | — | c | ||||||||
Natural gas (MMcf) | 8,576 | 13,693 | 94 | 151 | ||||||||||
NGLs (MBbls) | 7 | 15 | — | c | — | c | ||||||||
MBOE | 1,473 | 2,336 | 16 | 26 | ||||||||||
Average realized price per BOEb | $ | 12.09 | $ | 16.15 | ||||||||||
Cash production costs per BOEb | $ | 12.07 | $ | 13.55 | ||||||||||
Capital expenditures (in millions) | $ | 2 | $ | 6 | ||||||||||
TOTAL U.S. OIL AND GAS OPERATIONS | ||||||||||||||
Oil (MBbls) | 8,654 | 8,599 | 95 | 95 | ||||||||||
Natural gas (MMcf) | 18,795 | 23,534 | 207 | 259 | ||||||||||
NGLs (MBbls) | 596 | 586 | 6 | 5 | ||||||||||
MBOE | 12,382 | 13,107 | 136 | 144 | ||||||||||
Cash operating margin per BOE:b | ||||||||||||||
Realized revenues | $ | 32.70 | $ | 50.04 | e | |||||||||
Less: cash production costs | 15.00 | 19.04 | ||||||||||||
Cash operating margin | $ | 17.70 | $ | 31.00 | ||||||||||
Depreciation, depletion and amortization per BOE | $ | 17.61 | $ | 36.99 | ||||||||||
Capital expenditures (in millions) | $ | 388 | f | $ | 777 | f |
a. | Reflects properties in the Deepwater GOM and on the Shelf, including the Inboard Lower Tertiary/Cretaceous natural gas trend. |
b. | Cash operating margin for oil and gas operations reflects realized revenues less cash production costs. For reconciliations of average realized price and cash production costs per BOE to revenues and production and delivery costs reported in FCX's consolidated financial statements, refer to the supplemental schedules, “Product Revenues and Production Costs,” beginning on page XV, which are available on FCX's website, “fcx.com.” |
c. | Rounds to less than 1 MBbl per day. |
d. | In July 2016, FM O&G completed the sale of the Haynesville shale assets. |
e. | Includes realized cash gains on crude oil derivative contracts of $7.73 per BOE. These contracts were managed on a consolidated basis; accordingly, the average realized price per BOE by region did not reflect adjustments for crude oil derivative contracts. FM O&G currently does not have oil and gas derivative contracts in place for 2016 or future years. |
f. | Consolidated capital expenditures for U.S. oil and gas operations reflect total spending, which includes changes in capital expenditure accruals and other adjustments totaling $174 million for second-quarter 2016 and $71 million for second-quarter 2015 that are not specifically allocated to the above regions. Excludes international oil and gas capital expenditures totaling $4 million in second-quarter 2016 and $29 million for second-quarter 2015, primarily related to the Morocco oil and gas properties. |
FREEPORT-McMoRan INC. | ||||||||||||||
SELECTED U.S. OIL AND GAS OPERATING DATA (continued) | ||||||||||||||
Six Months Ended June 30, | ||||||||||||||
Sales Volumes | Sales per Day | |||||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||||
GOMa | ||||||||||||||
Oil (MBbls) | 11,198 | 10,197 | 62 | 56 | ||||||||||
Natural gas (MMcf) | 18,712 | 16,634 | 103 | 92 | ||||||||||
NGLs (MBbls) | 1,084 | 1,001 | 6 | 6 | ||||||||||
MBOE | 15,401 | 13,970 | 85 | 77 | ||||||||||
Average realized price per BOEb | $ | 30.55 | $ | 44.40 | ||||||||||
Cash production costs per BOEb | $ | 12.26 | $ | 17.17 | ||||||||||
Capital expenditures (in millions) | $ | 482 | $ | 1,381 | ||||||||||
CALIFORNIA | ||||||||||||||
Oil (MBbls) | 5,673 | 6,700 | 31 | 37 | ||||||||||
Natural gas (MMcf) | 885 | 1,146 | 5 | 6 | ||||||||||
NGLs (MBbls) | 66 | 84 | — | c | — | c | ||||||||
MBOE | 5,887 | 6,975 | 32 | 39 | ||||||||||
Average realized price per BOEb | $ | 31.24 | $ | 43.49 | ||||||||||
Cash production costs per BOEb | $ | 25.98 | $ | 29.43 | ||||||||||
Capital expenditures (in millions) | $ | 16 | $ | 53 | ||||||||||
HAYNESVILLE/MADDEN/OTHERd | ||||||||||||||
Oil (MBbls) | 81 | 74 | — | c | 1 | |||||||||
Natural gas (MMcf) | 18,837 | 27,521 | 103 | 152 | ||||||||||
NGLs (MBbls) | 20 | 25 | — | c | — | c | ||||||||
MBOE | 3,240 | 4,686 | 18 | 26 | ||||||||||
Average realized price per BOEb | $ | 12.18 | $ | 16.66 | ||||||||||
Cash production costs per BOEb | $ | 11.21 | $ | 12.42 | ||||||||||
Capital expenditures (in millions) | $ | 2 | $ | 27 | ||||||||||
TOTAL U.S. OIL AND GAS OPERATIONS | ||||||||||||||
Oil (MBbls) | 16,952 | 16,971 | 93 | 94 | ||||||||||
Natural gas (MMcf) | 38,434 | 45,301 | 211 | 250 | ||||||||||
NGLs (MBbls) | 1,170 | 1,110 | 6 | 6 | ||||||||||
MBOE | 24,528 | 25,631 | 135 | 142 | ||||||||||
Cash operating margin per BOE:b | ||||||||||||||
Realized revenue | $ | 28.29 | $ | 46.95 | e | |||||||||
Less: cash production costs | 15.42 | 19.62 | ||||||||||||
Cash operating margin | $ | 12.87 | $ | 27.33 | ||||||||||
Depreciation, depletion and amortization per BOE | $ | 19.27 | $ | 39.59 | ||||||||||
Capital expenditures (in millions) | $ | 868 | f | $ | 1,795 | f | ||||||||
a. | Reflects properties in the Deepwater GOM and on the Shelf, including the Inboard Lower Tertiary/Cretaceous natural gas trend. |
b. | Cash operating margin for oil and gas operations reflects realized revenues less cash production costs. For reconciliations of average realized price and cash production costs per BOE to revenues and production and delivery costs reported in FCX's consolidated financial statements, refer to the supplemental schedules, “Product Revenues and Production Costs,” beginning on page XV, which are available on FCX's website, “fcx.com.” |
c. | Rounds to less than 1 MBbl per day. |
d. | In July 2016, FM O&G completed the sale of the Haynesville shale assets. |
e. | Includes realized cash gains on crude oil derivative contracts of $7.87 per BOE. These contracts were managed on a consolidated basis; accordingly, the average realized price per BOE by region did not reflect adjustments for crude oil derivative contracts. FM O&G currently does not have oil and gas derivative contracts in place for 2016 or future years. |
f. | Consolidated capital expenditures for U.S. oil and gas operations reflect total spending, which includes changes in capital expenditure accruals and other adjustments totaling $368 million for the first six months of 2016 and $334 million for the first six months of 2015 that are not specifically allocated to the above regions. Excludes international oil and gas capital expenditures totaling $47 million for the first six months of 2016 and $44 million for the first six months of 2015, primarily related to the Morocco oil and gas properties. |
FREEPORT-McMoRan INC. | ||||||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||||||
(In millions, except per share amounts) | ||||||||||||||||
Revenuesa | $ | 3,334 | $ | 3,938 | $ | 6,576 | $ | 7,709 | ||||||||
Cost of sales: | ||||||||||||||||
Production and deliveryb | 2,956 | 2,651 | 5,455 | 5,330 | ||||||||||||
Depreciation, depletion and amortization | 632 | 833 | 1,294 | 1,699 | ||||||||||||
Impairment of oil and gas properties | 291 | 2,686 | 4,078 | 5,790 | ||||||||||||
Total cost of sales | 3,879 | 6,170 | 10,827 | 12,819 | ||||||||||||
Selling, general and administrative expenses | 160 | c | 148 | 298 | c | 299 | ||||||||||
Mining exploration and research expenses | 15 | 30 | 33 | 57 | ||||||||||||
Environmental obligations and shutdown costs | 11 | 11 | 21 | 24 | ||||||||||||
Net gain on sales of assets | (749 | ) | — | (749 | ) | (39 | ) | |||||||||
Total costs and expenses | 3,316 | 6,359 | 10,430 | 13,160 | ||||||||||||
Operating income (loss) | 18 | (2,421 | ) | (3,854 | ) | (5,451 | ) | |||||||||
Interest expense, netd | (196 | ) | (142 | ) | (387 | ) | (281 | ) | ||||||||
Net gain on early extinguishment of debt | 39 | — | 36 | — | ||||||||||||
Other income, net | 25 | 36 | e | 64 | 43 | e | ||||||||||
Loss from continuing operations before income taxes and equity in affiliated companies' net earnings | (114 | ) | (2,527 | ) | (4,141 | ) | (5,689 | ) | ||||||||
(Provision for) benefit from income taxesf | (116 | ) | 699 | (193 | ) | 1,413 | ||||||||||
Equity in affiliated companies' net earnings | 1 | — | 8 | 1 | ||||||||||||
Net loss from continuing operations | (229 | ) | (1,828 | ) | (4,326 | ) | (4,275 | ) | ||||||||
Net (loss) income from discontinued operationsg | (181 | ) | 29 | (185 | ) | 70 | ||||||||||
Net loss | (410 | ) | (1,799 | ) | (4,511 | ) | (4,205 | ) | ||||||||
Net income attributable to noncontrolling interests: | ||||||||||||||||
Continuing operations | (47 | ) | (16 | ) | (109 | ) | (48 | ) | ||||||||
Discontinued operations | (12 | ) | (26 | ) | (22 | ) | (52 | ) | ||||||||
Preferred dividends attributable to redeemable noncontrolling interest | (10 | ) | (10 | ) | (21 | ) | (20 | ) | ||||||||
Net loss attributable to common stockholdersh | $ | (479 | ) | $ | (1,851 | ) | $ | (4,663 | ) | $ | (4,325 | ) | ||||
Basic and diluted net (loss) income per share attributable to common stockholders: | ||||||||||||||||
Continuing operations | $ | (0.23 | ) | $ | (1.78 | ) | $ | (3.54 | ) | $ | (4.18 | ) | ||||
Discontinued operations | (0.15 | ) | — | (0.16 | ) | 0.02 | ||||||||||
$ | (0.38 | ) | $ | (1.78 | ) | $ | (3.70 | ) | $ | (4.16 | ) | |||||
Basic and diluted weighted-average common shares outstanding | 1,269 | 1,040 | 1,260 | 1,040 | ||||||||||||
Dividends declared per share of common stock | $ | — | $ | 0.1605 | $ | — | $ | 0.2105 |
a. | Revenues include favorable (unfavorable) adjustments to provisionally priced concentrate and cathode copper sales recognized in prior periods (refer to the supplemental schedule, "Derivative Instruments," on page XI for a summary of these amounts). Revenues for the 2015 periods also include net noncash mark-to-market losses associated with crude oil derivative contracts (refer to the supplemental schedule, "Adjusted Net (Loss) Income," on Page IX for a summary of these amounts). |
b. | Refer to the supplemental schedule, "Adjusted Net (Loss) Income," on page IX for a summary of amounts included in production and delivery costs for net charges at (i) oil and gas operations primarily associated with drillship contract settlements/idle rig costs and inventory write downs and (ii) mining operations for adjustments to inventories. |
c. | Includes net restructuring charges at oil and gas operations. Refer to the supplemental schedule, "Adjusted Net (Loss) Income," on page IX. |
d. | Consolidated interest expense, excluding capitalized interest, totaled $218 million in second-quarter 2016, $208 million in second-quarter 2015, $436 million for the first six months of 2016 and $411 million for the first six months of 2015. |
e. | Includes a gain for the proceeds received from insurance carriers and other third parties related to a shareholder derivative litigation settlement. Refer to the supplemental schedule, "Adjusted Net (Loss) Income," on page IX. |
f. | Refer to the supplemental schedule, "Income Taxes," on page X for a summary of income taxes from continuing operations. |
g. | Net of charges for (i) allocated interest expense associated with FCX's term loan that is required to be repaid as a result of the sale of FCX's interest in Tenke Fungurume (Tenke) totaling $11 million in second-quarter 2016, $7 million in second-quarter 2015, $21 million for the first six months of 2016 and $14 million for the first six months of 2015 and (ii) income tax (benefit) provision totaling $(16) million in second-quarter 2016, $12 million in second-quarter 2015, $(23) million for the first six months of 2016 and $31 million for the first six months of 2015. In accordance with accounting guidelines, the second quarter and first six months of 2016 are also net of $177 million for the estimated loss on disposal, which will be adjusted through closing of the transaction. |
h. | FCX defers recognizing profits on intercompany sales until final sales to third parties occur. Refer to the supplemental schedule, "Deferred Profits," on page XI for a summary of net impacts from changes in these deferrals. |
FREEPORT-McMoRan INC. | ||||||||
CONSOLIDATED BALANCE SHEETS (Unaudited) | ||||||||
June 30, | December 31, | |||||||
2016 | 2015 | |||||||
(In millions) | ||||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 352 | $ | 195 | ||||
Trade accounts receivable | 694 | 660 | ||||||
Income and other tax receivables | 916 | 1,341 | ||||||
Other accounts receivable | 102 | 154 | ||||||
Inventories: | ||||||||
Mill and leach stockpiles | 1,348 | 1,539 | ||||||
Materials and supplies, net | 1,338 | 1,594 | ||||||
Product | 1,058 | 1,071 | ||||||
Other current assets | 226 | 164 | ||||||
Held for sale | 4,666 | 744 | ||||||
Total current assets | 10,700 | 7,462 | ||||||
Property, plant, equipment and mining development costs, net | 23,609 | 24,248 | ||||||
Oil and gas properties, net - full cost method: | ||||||||
Subject to amortization, less accumulated amortization and impairment | 1,381 | 2,262 | ||||||
Not subject to amortization | 1,656 | 4,831 | ||||||
Long-term mill and leach stockpiles | 1,742 | 1,663 | ||||||
Other assets | 2,208 | 2,001 | ||||||
Held for sale | — | 4,110 | ||||||
Total assets | $ | 41,296 | $ | 46,577 | ||||
LIABILITIES AND EQUITY | ||||||||
Current liabilities: | ||||||||
Accounts payable and accrued liabilities | $ | 2,569 | $ | 3,255 | ||||
Current portion of debt | 770 | 649 | ||||||
Current portion of environmental and asset retirement obligations | 322 | 272 | ||||||
Accrued income taxes | 55 | 23 | ||||||
Held for sale | 824 | 108 | ||||||
Total current liabilities | 4,540 | 4,307 | ||||||
Long-term debt, less current portion | 18,549 | 19,779 | ||||||
Deferred income taxes | 3,758 | 3,607 | ||||||
Environmental and asset retirement obligations, less current portion | 3,697 | 3,717 | ||||||
Other liabilities | 1,662 | 1,641 | ||||||
Held for sale | — | 718 | ||||||
Total liabilities | 32,206 | 33,769 | ||||||
Redeemable noncontrolling interest | 771 | 764 | ||||||
Equity: | ||||||||
Stockholders' equity: | ||||||||
Common stock | 145 | 137 | ||||||
Capital in excess of par value | 25,105 | 24,283 | ||||||
Accumulated deficit | (17,049 | ) | (12,387 | ) | ||||
Accumulated other comprehensive loss | (488 | ) | (503 | ) | ||||
Common stock held in treasury | (3,710 | ) | (3,702 | ) | ||||
Total stockholders' equity | 4,003 | 7,828 | ||||||
Noncontrolling interestsa | 4,316 | 4,216 | ||||||
Total equity | 8,319 | 12,044 | ||||||
Total liabilities and equity | $ | 41,296 | $ | 46,577 | ||||
FREEPORT-McMoRan INC. | |||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) | |||||||||
Six Months Ended June 30, | |||||||||
2016 | 2015 | ||||||||
(In millions) | |||||||||
Cash flow from operating activities: | |||||||||
Net loss | $ | (4,511 | ) | $ | (4,205 | ) | |||
Adjustments to reconcile net loss to net cash provided by operating activities: | |||||||||
Depreciation, depletion and amortization | 1,374 | 1,829 | |||||||
Impairment of oil and gas properties | 4,078 | 5,790 | |||||||
Non-cash oil and gas drillship settlements/idle rig costs | 612 | — | |||||||
Oil and gas inventory adjustments and write downs | 82 | 23 | |||||||
Mining inventory adjustments | 7 | 63 | |||||||
Net gain on sales of assets | (749 | ) | (39 | ) | |||||
Net charges for environmental and asset retirement obligations, including accretion | 107 | 109 | |||||||
Payments for environmental and asset retirement obligations | (116 | ) | (81 | ) | |||||
Net gain on early extinguishment of debt | (36 | ) | — | ||||||
Deferred income taxes | 169 | (1,432 | ) | ||||||
Estimated loss on disposal of discontinued operations | 177 | — | |||||||
Increase in long-term mill and leach stockpiles | (99 | ) | (104 | ) | |||||
Net gains on crude oil derivative contracts | — | (58 | ) | ||||||
Other, net | 53 | 81 | |||||||
Changes in working capital and other tax payments, excluding amounts from dispositions: | |||||||||
Accounts receivable | 259 | 493 | |||||||
Inventories | 190 | 8 | |||||||
Other current assets | (53 | ) | (1 | ) | |||||
Accounts payable and accrued liabilities | 44 | (205 | ) | ||||||
Accrued income taxes and changes in other tax payments | 26 | (485 | ) | ||||||
Net cash provided by operating activities | 1,614 | 1,786 | |||||||
Cash flow from investing activities: | |||||||||
Capital expenditures: | |||||||||
North America copper mines | (76 | ) | (214 | ) | |||||
South America | (293 | ) | (902 | ) | |||||
Indonesia | (459 | ) | (438 | ) | |||||
Molybdenum mines | (1 | ) | (7 | ) | |||||
U.S. oil and gas operations | (868 | ) | (1,795 | ) | |||||
Other | (118 | ) | (172 | ) | |||||
Net proceeds from sale of additional interest in Morenci | 996 | — | |||||||
Net proceeds from sale of other assets | 290 | 150 | |||||||
Other, net | (6 | ) | (14 | ) | |||||
Net cash used in investing activities | (535 | ) | (3,392 | ) | |||||
Cash flow from financing activities: | |||||||||
Proceeds from debt | 2,811 | 4,422 | |||||||
Repayments of debt | (3,649 | ) | (2,360 | ) | |||||
Net proceeds from sale of common stock | 32 | — | |||||||
Cash dividends and distributions paid: | |||||||||
Common stock | (5 | ) | (380 | ) | |||||
Noncontrolling interests | (39 | ) | (60 | ) | |||||
Stock-based awards net payments, including excess tax benefit | (5 | ) | (7 | ) | |||||
Debt financing costs and other, net | (18 | ) | (7 | ) | |||||
Net cash (used in) provided by financing activities | (873 | ) | 1,608 | ||||||
Net increase in cash and cash equivalents | 206 | 2 | |||||||
Increase in cash and cash equivalents in assets held for sale | (49 | ) | (1 | ) | |||||
Cash and cash equivalents at beginning of year | 195 | 317 | |||||||
Cash and cash equivalents at end of period | $ | 352 | $ | 318 |
Three Months Ended June 30, | ||||||||||||||||||||||||
2016 | 2015 | |||||||||||||||||||||||
Pre-tax | After-tax | Per Share | Pre-tax | After-tax | Per Share | |||||||||||||||||||
Net loss attributable to common stockholders | N/A | $ | (479 | ) | $ | (0.38 | ) | N/A | $ | (1,851 | ) | $ | (1.78 | ) | ||||||||||
Net noncash mark-to-market losses on crude oil derivative contracts | $ | — | $ | — | $ | — | $ | (95 | ) | $ | (59 | ) | $ | (0.06 | ) | |||||||||
Impairment of oil and gas properties | (291 | ) | (291 | ) | a | (0.23 | ) | (2,686 | ) | (1,975 | ) | a | (1.90 | ) | ||||||||||
Other net charges for oil and gas operations: | ||||||||||||||||||||||||
Drillship settlements/idle rig costs | (639 | ) | (639 | ) | (0.50 | ) | (3 | ) | (2 | ) | — | |||||||||||||
Inventory write downs | (53 | ) | (53 | ) | (0.04 | ) | (19 | ) | (12 | ) | (0.01 | ) | ||||||||||||
Restructuring charges | (37 | ) | (37 | ) | (0.03 | ) | — | — | — | |||||||||||||||
Mining inventory adjustments | (2 | ) | (2 | ) | — | (59 | ) | (38 | ) | (0.04 | ) | |||||||||||||
Net gain on sales of assetsb | 749 | 744 | 0.59 | — | — | — | ||||||||||||||||||
Net gain on early extinguishment of debt | 39 | 39 | 0.03 | — | — | — | ||||||||||||||||||
Gain on shareholder derivative litigation settlement | — | — | — | 92 | 92 | 0.09 | ||||||||||||||||||
Net tax chargesc | N/A | (36 | ) | (0.03 | ) | N/A | — | — | ||||||||||||||||
Estimated loss on discontinued operations | (177 | ) | (177 | ) | (0.14 | ) | — | — | — | |||||||||||||||
$ | (411 | ) | $ | (452 | ) | $ | (0.36 | ) | d | $ | (2,770 | ) | $ | (1,994 | ) | $ | (1.92 | ) | ||||||
Adjusted net (loss) income attributable to common stockholders | N/A | $ | (27 | ) | $ | (0.02 | ) | N/A | $ | 143 | $ | 0.14 |
Six Months Ended June 30, | ||||||||||||||||||||||||
2016 | 2015 | |||||||||||||||||||||||
Pre-tax | After-tax | Per Share | Pre-tax | After-tax | Per Share | |||||||||||||||||||
Net loss attributable to common stockholders | N/A | $ | (4,663 | ) | $ | (3.70 | ) | N/A | $ | (4,325 | ) | $ | (4.16 | ) | ||||||||||
Net noncash mark-to-market losses on crude oil derivative contracts | $ | — | $ | — | $ | — | $ | (143 | ) | $ | (89 | ) | $ | (0.09 | ) | |||||||||
Impairment of oil and gas properties | (4,078 | ) | (4,078 | ) | a | (3.24 | ) | (5,790 | ) | (4,374 | ) | a | (4.20 | ) | ||||||||||
Other net charges for oil and gas operations: | ||||||||||||||||||||||||
Drillship settlements/idle rig costs | (804 | ) | (804 | ) | (0.64 | ) | (16 | ) | (10 | ) | (0.01 | ) | ||||||||||||
Inventory write downs | (88 | ) | (88 | ) | (0.07 | ) | (23 | ) | (14 | ) | (0.01 | ) | ||||||||||||
Restructuring charges | (39 | ) | (39 | ) | (0.03 | ) | — | — | — | |||||||||||||||
Mining inventory adjustments | (7 | ) | (7 | ) | (0.01 | ) | (63 | ) | (41 | ) | (0.04 | ) | ||||||||||||
Net gain on sales of assetsb | 749 | 744 | 0.59 | 39 | 25 | 0.02 | ||||||||||||||||||
Net gain on early extinguishment of debt | 36 | 36 | 0.03 | — | — | — | ||||||||||||||||||
Gain on shareholder derivative litigation settlement | — | — | — | 92 | 92 | 0.09 | ||||||||||||||||||
Net tax chargesc | N/A | (36 | ) | (0.03 | ) | N/A | — | — | ||||||||||||||||
Estimated loss on discontinued operations | (177 | ) | (177 | ) | (0.14 | ) | — | — | — | |||||||||||||||
$ | (4,408 | ) | $ | (4,449 | ) | $ | (3.53 | ) | d | $ | (5,904 | ) | $ | (4,411 | ) | $ | (4.24 | ) | ||||||
Adjusted net (loss) income attributable to common stockholders | N/A | $ | (214 | ) | $ | (0.17 | ) | N/A | $ | 86 | $ | 0.08 |
a. | As a result of the impairment to oil and gas properties, FCX recorded tax charges of $108 million in second-quarter 2016, $305 million in second-quarter 2015, $1.5 billion for the first six months of 2016 and $763 million for the first six months of 2015 to establish a valuation allowance against deferred tax assets that will not generate a future benefit. These tax charges have been reflected in the above after-tax impacts for the impairment of oil and gas properties. |
b. | Net gain on sales of assets primarily reflects the sales of a 13 percent undivided interest in the Morenci unincorporated joint venture and an interest in the Timok exploration project in Serbia for the second quarter and first six months of 2016, and the sale of FCX's one-third interest in the Luna Energy power facility in New Mexico for the first six months of 2015. |
c. | For further discussion of net tax charges impacting the second quarter and first six months of 2016, refer to "Income Taxes," on page X. |
d. | Per share amounts do not foot down because of rounding. |
Three Months Ended June 30, | ||||||||||||||||||||
2016 | 2015 | |||||||||||||||||||
Income Tax | Income Tax | |||||||||||||||||||
Income | Effective | Benefit | Income | Effective | Benefit | |||||||||||||||
(Loss)a | Tax Rate | (Provision) | (Loss)a | Tax Rate | (Provision) | |||||||||||||||
U.S. | $ | (81 | ) | (68)% | $ | (55 | ) | b | $ | (160 | ) | c | 101% | $ | 162 | |||||
South America | 106 | 41% | (43 | ) | 21 | 29% | (6 | ) | ||||||||||||
Indonesia | 73 | 25% | (18 | ) | 228 | 42% | (95 | ) | ||||||||||||
Impairment of oil and gas properties | (291 | ) | 37% | 108 | (2,686 | ) | 38% | 1,016 | ||||||||||||
Valuation allowance, netd | — | N/A | (108 | ) | — | N/A | (305 | ) | ||||||||||||
Eliminations and other | 79 | N/A | (22 | ) | 70 | N/A | (16 | ) | ||||||||||||
Rate adjustmente | — | N/A | 22 | — | N/A | (57 | ) | |||||||||||||
Continuing operations | $ | (114 | ) | (102)% | $ | (116 | ) | $ | (2,527 | ) | 28% | $ | 699 | |||||||
Six Months Ended June 30, | ||||||||||||||||||||
2016 | 2015 | |||||||||||||||||||
Income Tax | Income Tax | |||||||||||||||||||
Income | Effective | Benefit | Income | Effective | Benefit | |||||||||||||||
(Loss)a | Tax Rate | (Provision) | (Loss)a | Tax Rate | (Provision) | |||||||||||||||
U.S. | $ | (535 | ) | (7)% | $ | (39 | ) | b | $ | (455 | ) | c | 63% | $ | 288 | |||||
South America | 219 | 38% | (82 | ) | 81 | 37% | (30 | ) | ||||||||||||
Indonesia | 164 | 33% | (54 | ) | 289 | 43% | (124 | ) | ||||||||||||
Impairment of oil and gas properties | (4,078 | ) | 38% | 1,543 | (5,790 | ) | 38% | 2,179 | ||||||||||||
Valuation allowance, netd | — | N/A | (1,543 | ) | — | N/A | (763 | ) | ||||||||||||
Eliminations and other | 89 | N/A | (25 | ) | 186 | N/A | (50 | ) | ||||||||||||
Rate adjustmente | — | N/A | 7 | — | N/A | (87 | ) | |||||||||||||
Continuing operations | $ | (4,141 | ) | (5)% | f | $ | (193 | ) | $ | (5,689 | ) | 25% | $ | 1,413 |
a. | Represents income (loss) from continuing operations by geographic location before income taxes and equity in affiliated companies' net earnings. |
b. | Includes net tax charges of $36 million, comprised of a tax charge of $96 million related to the reversal of income tax benefits recognized in 2015 for carryback claims, partly offset by a tax benefit of $60 million associated with FCX's election to monetize alternative minimum tax credits. |
c. | Includes a gain of $92 million related to net proceeds received from insurance carriers and other third parties related to the shareholder derivative litigation settlement for which there was no related tax provision. |
d. | As a result of the impairment to U.S. oil and gas properties, FCX recorded tax charges to establish valuation allowances against U.S. federal and state deferred tax assets that will not generate a future benefit. |
e. | In accordance with applicable accounting rules, FCX adjusts its interim provision for income taxes equal to its consolidated tax rate. |
f. | The consolidated effective income tax rate is a function of the combined effective tax rates for the jurisdictions in which FCX operates. Accordingly, variations in the relative proportions of jurisdictional income result in fluctuations to FCX's consolidated effective income tax rate. Assuming achievement of current sales volume and cost estimates and average prices of $2.25 per pound for copper, $1,300 per ounce for gold, $6 per pound for molybdenum and $48 per barrel of Brent crude oil for the second half of 2016, FCX estimates its consolidated effective rate related to continuing operations for the year 2016 will approximate 40 percent, excluding U.S. domestic losses. |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Revenues from continuing operations | $ | (28 | ) | $ | (22 | ) | $ | 5 | $ | (99 | ) | ||||
Net income attributable to common stock from continuing operations | $ | (15 | ) | $ | (11 | ) | $ | 2 | $ | (47 | ) | ||||
Net income per share of common stock from continuing operations | $ | (0.01 | ) | $ | (0.01 | ) | $ | — | $ | (0.04 | ) |
(In millions) | Mining Operationsa | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
North America Copper Mines | South America | Indonesia | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Atlantic | Other | Corporate, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Molyb- | Copper | Mining | U.S. | Other | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cerro | denum | Rod & | Smelting | & Elimi- | Total | Oil & Gas | & Elimi- | FCX | |||||||||||||||||||||||||||||||||||||||||||||||||||
Morenci | Other | Total | Verde | Other | Total | Grasberg | Mines | Refining | & Refining | nations | Mining | Operations | nations | Total | |||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended June 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Unaffiliated customers | $ | 79 | $ | 43 | $ | 122 | $ | 494 | $ | 123 | $ | 617 | $ | 532 | b | $ | — | $ | 919 | $ | 493 | $ | 241 | c | $ | 2,924 | $ | 410 | $ | — | $ | 3,334 | |||||||||||||||||||||||||||
Intersegment | 404 | 534 | 938 | 60 | — | 60 | (1 | ) | d | 45 | 7 | 2 | (1,051 | ) | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Production and delivery | 298 | 428 | 726 | 303 | 103 | 406 | 356 | 50 | 919 | 466 | (866 | ) | 2,057 | 889 | e | 10 | 2,956 | ||||||||||||||||||||||||||||||||||||||||||
Depreciation, depletion and amortization | 57 | 77 | 134 | 109 | 27 | 136 | 93 | 17 | 3 | 7 | 20 | 410 | 218 | 4 | 632 | ||||||||||||||||||||||||||||||||||||||||||||
Impairment of oil and gas properties | — | — | — | — | — | — | — | — | — | — | — | — | 290 | 1 | f | 291 | |||||||||||||||||||||||||||||||||||||||||||
Selling, general and administrative expenses | 1 | 1 | 2 | 2 | — | 2 | 22 | — | — | 4 | 2 | 32 | 81 | g | 47 | 160 | |||||||||||||||||||||||||||||||||||||||||||
Mining exploration and research expenses | — | — | — | — | — | — | — | — | — | — | 15 | 15 | — | — | 15 | ||||||||||||||||||||||||||||||||||||||||||||
Environmental obligations and shutdown costs | — | — | — | — | — | — | — | — | — | — | 10 | 10 | — | 1 | 11 | ||||||||||||||||||||||||||||||||||||||||||||
Net gain on sale of assets | (577 | ) | — | (577 | ) | — | — | — | — | — | — | — | (172 | ) | (749 | ) | — | — | (749 | ) | |||||||||||||||||||||||||||||||||||||||
Operating income (loss) | 704 | 71 | 775 | 140 | (7 | ) | 133 | 60 | (22 | ) | 4 | 18 | 181 | 1,149 | (1,068 | ) | (63 | ) | 18 | ||||||||||||||||||||||||||||||||||||||||
Interest expense, net | — | 1 | 1 | 20 | — | 20 | — | — | — | 4 | 19 | 44 | 93 | 59 | 196 | ||||||||||||||||||||||||||||||||||||||||||||
Provision for (benefit from) income taxes | — | — | — | 45 | (2 | ) | 43 | 18 | — | — | — | — | 61 | — | 55 | 116 | |||||||||||||||||||||||||||||||||||||||||||
Total assets at June 30, 2016 | 2,960 | 4,676 | 7,636 | 9,330 | 1,609 | 10,939 | 9,550 | 1,969 | 217 | 607 | 6,151 | h | 37,069 | 3,902 | 325 | 41,296 | |||||||||||||||||||||||||||||||||||||||||||
Capital expenditures | 37 | 5 | 42 | 135 | 1 | 136 | 234 | — | — | 5 | 24 | i | 441 | 388 | j | 4 | 833 | ||||||||||||||||||||||||||||||||||||||||||
Three Months Ended June 30, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Unaffiliated customers | $ | 180 | $ | 92 | $ | 272 | $ | 195 | $ | 221 | $ | 416 | $ | 792 | b | $ | — | $ | 1,089 | $ | 495 | $ | 305 | c | $ | 3,369 | $ | 569 | k | $ | — | $ | 3,938 | ||||||||||||||||||||||||||
Intersegment | 427 | 706 | 1,133 | 37 | — | 37 | (2 | ) | d | 102 | 8 | 5 | (1,283 | ) | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Production and delivery | 386 | 576 | l | 962 | 165 | 150 | 315 | 455 | 84 | l | 1,088 | 468 | (1,004 | ) | l | 2,368 | 281 | e | 2 | 2,651 | |||||||||||||||||||||||||||||||||||||||
Depreciation, depletion and amortization | 55 | 84 | 139 | 40 | 32 | 72 | 78 | 25 | 3 | 9 | 19 | 345 | 485 | 3 | 833 | ||||||||||||||||||||||||||||||||||||||||||||
Impairment of oil and gas properties | — | — | — | — | — | — | — | — | — | — | — | — | 2,686 | — | 2,686 | ||||||||||||||||||||||||||||||||||||||||||||
Selling, general and administrative expenses | — | 2 | 2 | — | 1 | 1 | 25 | — | — | 4 | 5 | 37 | 49 | 62 | 148 | ||||||||||||||||||||||||||||||||||||||||||||
Mining exploration and research expenses | — | 2 | 2 | — | — | — | — | — | — | — | 28 | 30 | — | — | 30 | ||||||||||||||||||||||||||||||||||||||||||||
Environmental obligations and shutdown costs | — | — | — | — | — | — | — | — | — | — | 11 | 11 | — | — | 11 | ||||||||||||||||||||||||||||||||||||||||||||
Operating income (loss) | 166 | 134 | 300 | 27 | 38 | 65 | 232 | (7 | ) | 6 | 19 | (37 | ) | 578 | (2,932 | ) | (67 | ) | (2,421 | ) | |||||||||||||||||||||||||||||||||||||||
Interest expense, net | — | 1 | 1 | — | — | — | — | — | — | 2 | 39 | 42 | 41 | 59 | 142 | ||||||||||||||||||||||||||||||||||||||||||||
Provision for (benefit from) income taxes | — | — | — | (5 | ) | 11 | 6 | 95 | — | — | — | — | 101 | — | (800 | ) | (699 | ) | |||||||||||||||||||||||||||||||||||||||||
Total assets at June 30, 2015 | 3,806 | 5,582 | 9,388 | 8,567 | 1,935 | 10,502 | 8,959 | 2,052 | 286 | 786 | 6,461 | h | 38,434 | 15,393 | 181 | 54,008 | |||||||||||||||||||||||||||||||||||||||||||
Capital expenditures | 79 | 28 | 107 | 444 | 13 | 457 | 213 | 4 | — | 4 | 70 | i | 855 | 777 | j | 29 | 1,661 |
a. | Excludes the results of Tenke, which is reported as discontinued operations. Net (loss) income from discontinued operations totaled $(181) million in second-quarter 2016 and $29 million in second-quarter 2015. Refer to the supplemental schedules, "Product Revenues and Production Costs," beginning on page XV for a summary of the results of discontinued operations. |
b. | Includes PT-FI's sales to PT Smelting totaling $287 million in second-quarter 2016 and $293 million in second-quarter 2015. |
c. | 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. |
d. | Reflects net reductions for provisional pricing adjustments to prior period open sales. |
e. | Includes charges at oil and gas operations totaling $692 million in second-quarter 2016 and $22 million in second-quarter 2015 primarily associated with drillship settlements/idle rig costs and inventory write-downs. For a summary of these amounts, refer to the supplemental schedule, "Adjusted Net (Loss) Income," on Page IX for a summary of these amounts. |
f. | Reflects impairment charges for international oil and gas properties primarily in Morocco. |
g. | Includes $37 million for net restructuring charges at oil and gas operations. |
h. | Includes assets held for sale totaling $4.7 billion at June 30, 2016, and $4.9 billion at June 30, 2015, associated with the Tenke disposal group. |
i. | Includes capital expenditures of $20 million in second-quarter 2016 and $58 million in second-quarter 2015 associated with discontinued operations. |
j. | Excludes international oil and gas capital expenditures totaling $4 million in second-quarter 2016 and $29 million in second-quarter 2015, primarily related to the Morocco oil and gas properties, which are included in Corporate, Other & Eliminations. |
k. | Includes net mark-to-market gains of $6 million associated with crude oil derivative contracts. |
l. | Includes inventory adjustments totaling $11 million at other North America copper mines, $3 million at Molybdenum mines and $45 million at Other Mining & Eliminations. |
(In millions) | Mining Operationsa | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
North America Copper Mines | South America | Indonesia | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Atlantic | Other | Corporate, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Molyb- | Copper | Mining | U.S. | Other | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cerro | denum | Rod & | Smelting | & Elimi- | Total | Oil & Gas | & Elimi- | FCX | |||||||||||||||||||||||||||||||||||||||||||||||||||
Morenci | Other | Total | Verde | Other | Total | Grasberg | Mines | Refining | & Refining | nations | Mining | Operations | nations | Total | |||||||||||||||||||||||||||||||||||||||||||||
Six Months Ended June 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Unaffiliated customers | $ | 241 | $ | 99 | $ | 340 | $ | 980 | $ | 267 | $ | 1,247 | $ | 1,030 | b | $ | — | $ | 1,890 | $ | 915 | $ | 449 | c | $ | 5,871 | $ | 705 | $ | — | $ | 6,576 | |||||||||||||||||||||||||||
Intersegment | 761 | 1,095 | 1,856 | 101 | — | 101 | 57 | 90 | 15 | 3 | (2,122 | ) | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||
Production and delivery | 638 | 876 | 1,514 | 594 | 222 | 816 | 750 | 102 | 1,889 | 859 | (1,784 | ) | 4,146 | 1,296 | d | 13 | 5,455 | ||||||||||||||||||||||||||||||||||||||||||
Depreciation, depletion and amortization | 119 | 159 | 278 | 210 | 58 | 268 | 174 | 36 | 5 | 15 | 38 | 814 | 473 | 7 | 1,294 | ||||||||||||||||||||||||||||||||||||||||||||
Impairment of oil and gas properties | — | — | — | — | — | — | — | — | — | — | — | — | 4,061 | 17 | e | 4,078 | |||||||||||||||||||||||||||||||||||||||||||
Selling, general and administrative expenses | 1 | 2 | 3 | 4 | — | 4 | 36 | — | — | 8 | 6 | 57 | 130 | f | 111 | 298 | |||||||||||||||||||||||||||||||||||||||||||
Mining exploration and research expenses | — | 1 | 1 | — | — | — | — | — | — | — | 32 | 33 | — | — | 33 | ||||||||||||||||||||||||||||||||||||||||||||
Environmental obligations and shutdown costs | — | — | — | — | — | — | — | — | — | — | 20 | 20 | — | 1 | 21 | ||||||||||||||||||||||||||||||||||||||||||||
Net gain on sale of assets | (577 | ) | — | (577 | ) | — | — | — | — | — | — | — | (172 | ) | (749 | ) | — | — | (749 | ) | |||||||||||||||||||||||||||||||||||||||
Operating income (loss) | 821 | 156 | 977 | 273 | (13 | ) | 260 | 127 | (48 | ) | 11 | 36 | 187 | 1,550 | (5,255 | ) | (149 | ) | (3,854 | ) | |||||||||||||||||||||||||||||||||||||||
Interest expense, net | 1 | 1 | 2 | 42 | — | 42 | — | — | — | 8 | 39 | 91 | 164 | 132 | 387 | ||||||||||||||||||||||||||||||||||||||||||||
Provision for (benefit from) income taxes | — | — | — | 90 | (8 | ) | 82 | 54 | — | — | — | — | 136 | — | 57 | 193 | |||||||||||||||||||||||||||||||||||||||||||
Capital expenditures | 65 | 11 | 76 | 291 | 2 | 293 | 459 | 1 | 1 | 7 | 63 | g | 900 | 868 | h | 47 | 1,815 | ||||||||||||||||||||||||||||||||||||||||||
Six Months Ended June 30, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Unaffiliated customers | $ | 286 | $ | 207 | $ | 493 | $ | 443 | $ | 452 | $ | 895 | $ | 1,413 | b | $ | — | $ | 2,151 | $ | 1,035 | $ | 653 | c | $ | 6,640 | $ | 1,069 | i | $ | — | $ | 7,709 | ||||||||||||||||||||||||||
Intersegment | 877 | 1,370 | 2,247 | 51 | (7 | ) | j | 44 | (16 | ) | j | 215 | 15 | 11 | (2,516 | ) | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Production and delivery | 760 | 1,145 | k | 1,905 | 363 | 297 | 660 | 894 | 167 | k | 2,151 | 987 | (2,003 | ) | k | 4,761 | 564 | d | 5 | 5,330 | |||||||||||||||||||||||||||||||||||||||
Depreciation, depletion and amortization | 106 | 166 | 272 | 77 | 70 | 147 | 148 | 51 | 5 | 19 | 35 | 677 | 1,015 | 7 | 1,699 | ||||||||||||||||||||||||||||||||||||||||||||
Impairment of oil and gas properties | — | — | — | — | — | — | — | — | — | — | — | — | 5,790 | — | 5,790 | ||||||||||||||||||||||||||||||||||||||||||||
Selling, general and administrative expenses | 1 | 2 | 3 | 1 | 1 | 2 | 50 | — | — | 9 | 11 | 75 | 103 | 121 | 299 | ||||||||||||||||||||||||||||||||||||||||||||
Mining exploration and research expenses | — | 5 | 5 | — | — | — | — | — | — | — | 52 | 57 | — | — | 57 | ||||||||||||||||||||||||||||||||||||||||||||
Environmental obligations and shutdown costs | — | — | — | — | — | — | — | — | — | — | 24 | 24 | — | — | 24 | ||||||||||||||||||||||||||||||||||||||||||||
Net gain on sale of assets | — | (39 | ) | (39 | ) | — | — | — | — | — | — | — | — | (39 | ) | — | — | (39 | ) | ||||||||||||||||||||||||||||||||||||||||
Operating income (loss) | 296 | 298 | 594 | 53 | 77 | 130 | 305 | (3 | ) | 10 | 31 | 18 | 1,085 | (6,403 | ) | (133 | ) | (5,451 | ) | ||||||||||||||||||||||||||||||||||||||||
Interest expense, net | 1 | 1 | 2 | 1 | — | 1 | — | — | — | 5 | 79 | 87 | 78 | 116 | 281 | ||||||||||||||||||||||||||||||||||||||||||||
Provision for (benefit from) income taxes | — | — | — | — | 30 | 30 | 124 | — | — | — | — | 154 | — | (1,567 | ) | (1,413 | ) | ||||||||||||||||||||||||||||||||||||||||||
Capital expenditures | 163 | 51 | 214 | 875 | 27 | 902 | 438 | 7 | 1 | 8 | 119 | g | 1,689 | 1,795 | h | 44 | 3,528 |
a. | Excludes the results of Tenke, which is reported as discontinued operations. Net (loss) income from discontinued operations totaled $(185) million for the first six months of 2016 and $70 million for the first six months of 2015. Refer to the supplemental schedules, "Product Revenues and Production Costs," beginning on page XV for a summary of the results of discontinued operations. |
b. | Includes PT-FI's sales to PT Smelting totaling $564 million for the first six months of 2016 and $643 million for the first six months of 2015. |
c. | 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. |
d. | Includes charges at oil and gas operations totaling $892 million for the first six months of 2016 and $39 million for the first six months of 2015 primarily associated with drillship settlements/idle rig costs and inventory write downs. For a summary of these amounts, refer to the supplemental schedule, "Adjusted Net (Loss) Income," on Page IX for a summary of these amounts. |
e. | Reflects impairment charges for international oil and gas properties primarily in Morocco. |
f. | Includes $39 million for net restructuring charges at oil and gas operations. |
g. | Includes capital expenditures of $55 million for the first six months of 2016 and $97 million for the first six months of 2015 associated with discontinued operations. |
h. | Excludes international oil and gas capital expenditures totaling $47 million for the first six months of 2016 and $44 million for the first six months of 2015, primarily related to the Morocco oil and gas properties, which are included in Corporate, Other & Eliminations. |
i. | Includes net mark-to-market gains of $58 million associated with crude oil derivative contracts. |
j. | Reflects 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. |
k. | Includes inventory adjustments totaling $11 million at other North America copper mines, $3 million at Molybdenum mines and $49 million at Other Mining & Eliminations for the first six months of 2015. |
FREEPORT-McMoRan INC. | |||||||||||||||||||||
PRODUCT REVENUES AND PRODUCTION COSTS (continued) | |||||||||||||||||||||
North America Copper Mines Product Revenues, Production Costs and Unit Net Cash Costs | |||||||||||||||||||||
Three Months Ended June 30, 2016 | |||||||||||||||||||||
(In millions) | By-Product | Co-Product Method | |||||||||||||||||||
Method | Copper | Molybdenuma | Otherb | Total | |||||||||||||||||
Revenues, excluding adjustments | $ | 1,010 | $ | 1,010 | $ | 50 | $ | 20 | $ | 1,080 | |||||||||||
Site production and delivery, before net noncash | |||||||||||||||||||||
and other costs shown below | 647 | 617 | 39 | 11 | 667 | ||||||||||||||||
By-product credits | (50 | ) | — | — | — | — | |||||||||||||||
Treatment charges | 49 | 47 | — | 2 | 49 | ||||||||||||||||
Net cash costs | 646 | 664 | 39 | 13 | 716 | ||||||||||||||||
Depreciation, depletion and amortization (DD&A) | 134 | 127 | 5 | 2 | 134 | ||||||||||||||||
Noncash and other costs, net | 22 | 21 | 1 | — | 22 | ||||||||||||||||
Total costs | 802 | 812 | 45 | 15 | 872 | ||||||||||||||||
Revenue adjustments, primarily for pricing | |||||||||||||||||||||
on prior period open sales | (7 | ) | (7 | ) | — | — | (7 | ) | |||||||||||||
Gross profit | $ | 201 | $ | 191 | $ | 5 | $ | 5 | $ | 201 | |||||||||||
Copper sales (millions of recoverable pounds) | 462 | 462 | |||||||||||||||||||
Molybdenum sales (millions of recoverable pounds)a | 8 | ||||||||||||||||||||
Gross profit per pound of copper/molybdenum: | |||||||||||||||||||||
Revenues, excluding adjustments | $ | 2.18 | $ | 2.18 | $ | 5.92 | |||||||||||||||
Site production and delivery, before net noncash | |||||||||||||||||||||
and other costs shown below | 1.40 | 1.34 | 4.71 | ||||||||||||||||||
By-product credits | (0.11 | ) | — | — | |||||||||||||||||
Treatment charges | 0.11 | 0.10 | — | ||||||||||||||||||
Unit net cash costs | 1.40 | 1.44 | 4.71 | ||||||||||||||||||
DD&A | 0.29 | 0.27 | 0.57 | ||||||||||||||||||
Noncash and other costs, net | 0.05 | 0.05 | 0.08 | ||||||||||||||||||
Total unit costs | 1.74 | 1.76 | 5.36 | ||||||||||||||||||
Revenue adjustments, primarily for pricing | |||||||||||||||||||||
on prior period open sales | (0.01 | ) | (0.01 | ) | — | ||||||||||||||||
Gross profit per pound | $ | 0.43 | $ | 0.41 | $ | 0.56 | |||||||||||||||
Reconciliation to Amounts Reported | |||||||||||||||||||||
(In millions) | Production | ||||||||||||||||||||
Revenues | and Delivery | DD&A | |||||||||||||||||||
Totals presented above | $ | 1,080 | $ | 667 | $ | 134 | |||||||||||||||
Treatment charges | — | 49 | — | ||||||||||||||||||
Noncash and other costs, net | — | 22 | — | ||||||||||||||||||
Revenue adjustments, primarily for pricing | |||||||||||||||||||||
on prior period open sales | (7 | ) | — | — | |||||||||||||||||
Eliminations and other | (13 | ) | (12 | ) | — | ||||||||||||||||
North America copper mines | 1,060 | 726 | 134 | ||||||||||||||||||
Other mining & eliminationsc | 1,864 | 1,331 | 276 | ||||||||||||||||||
Total mining | 2,924 | 2,057 | 410 | ||||||||||||||||||
U.S. oil & gas operations | 410 | 889 | 218 | ||||||||||||||||||
Corporate, other & eliminations | — | 10 | 4 | ||||||||||||||||||
As reported in FCX’s consolidated financial statements | $ | 3,334 | $ | 2,956 | $ | 632 |
a. | Reflects sales of molybdenum produced by certain of the North America copper mines to FCX's 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 the supplemental schedule "Business Segments," beginning on page XII. |
FREEPORT-McMoRan INC. | |||||||||||||||||||||
PRODUCT REVENUES AND PRODUCTION COSTS (continued) | |||||||||||||||||||||
North America Copper Mines Product Revenues, Production Costs and Unit Net Cash Costs | |||||||||||||||||||||
Three Months Ended June 30, 2015 | |||||||||||||||||||||
(In millions) | By-Product | Co-Product Method | |||||||||||||||||||
Method | Copper | Molybdenuma | Otherb | Total | |||||||||||||||||
Revenues, excluding adjustments | $ | 1,341 | $ | 1,341 | $ | 80 | $ | 28 | $ | 1,449 | |||||||||||
Site production and delivery, before net noncash | |||||||||||||||||||||
and other costs shown below | 862 | 804 | 64 | 22 | 890 | ||||||||||||||||
By-product credits | (80 | ) | — | — | — | — | |||||||||||||||
Treatment charges | 60 | 58 | — | 2 | 60 | ||||||||||||||||
Net cash costs | 842 | 862 | 64 | 24 | 950 | ||||||||||||||||
DD&A | 137 | 129 | 5 | 3 | 137 | ||||||||||||||||
Noncash and other costs, net | 46 | 45 | 1 | — | 46 | ||||||||||||||||
Total costs | 1,025 | 1,036 | 70 | 27 | 1,133 | ||||||||||||||||
Revenue adjustments, primarily for pricing | |||||||||||||||||||||
on prior period open sales | (13 | ) | (13 | ) | — | — | (13 | ) | |||||||||||||
Gross profit | $ | 303 | $ | 292 | $ | 10 | $ | 1 | $ | 303 | |||||||||||
Copper sales (millions of recoverable pounds) | 485 | 485 | |||||||||||||||||||
Molybdenum sales (millions of recoverable pounds)a | 10 | ||||||||||||||||||||
Gross profit per pound of copper/molybdenum: | |||||||||||||||||||||
Revenues, excluding adjustments | $ | 2.77 | $ | 2.77 | $ | 7.80 | |||||||||||||||
Site production and delivery, before net noncash | |||||||||||||||||||||
and other costs shown below | 1.78 | 1.66 | 6.24 | ||||||||||||||||||
By-product credits | (0.16 | ) | — | — | |||||||||||||||||
Treatment charges | 0.12 | 0.12 | — | ||||||||||||||||||
Unit net cash costs | 1.74 | 1.78 | 6.24 | ||||||||||||||||||
DD&A | 0.28 | 0.27 | 0.53 | ||||||||||||||||||
Noncash and other costs, net | 0.10 | 0.09 | 0.06 | ||||||||||||||||||
Total unit costs | 2.12 | 2.14 | 6.83 | ||||||||||||||||||
Revenue adjustments, primarily for pricing | |||||||||||||||||||||
on prior period open sales | (0.03 | ) | (0.03 | ) | — | ||||||||||||||||
Gross profit per pound | $ | 0.62 | $ | 0.60 | $ | 0.97 | |||||||||||||||
Reconciliation to Amounts Reported | |||||||||||||||||||||
(In millions) | Production | ||||||||||||||||||||
Revenues | and Delivery | DD&A | |||||||||||||||||||
Totals presented above | $ | 1,449 | $ | 890 | $ | 137 | |||||||||||||||
Treatment charges | — | 60 | — | ||||||||||||||||||
Noncash and other costs, net | — | 46 | — | ||||||||||||||||||
Revenue adjustments, primarily for pricing | |||||||||||||||||||||
on prior period open sales | (13 | ) | — | — | |||||||||||||||||
Eliminations and other | (31 | ) | (34 | ) | 2 | ||||||||||||||||
North America copper mines | 1,405 | 962 | 139 | ||||||||||||||||||
Other mining & eliminationsc | 1,964 | 1,406 | 206 | ||||||||||||||||||
Total mining | 3,369 | 2,368 | 345 | ||||||||||||||||||
U.S. oil & gas operations | 569 | 281 | 485 | ||||||||||||||||||
Corporate, other & eliminations | — | 2 | 3 | ||||||||||||||||||
As reported in FCX’s consolidated financial statements | $ | 3,938 | $ | 2,651 | $ | 833 |
a. | Reflects sales of molybdenum produced by certain of the North America copper mines to FCX's 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 the supplemental schedule "Business Segments," beginning on page XII. |
FREEPORT-McMoRan INC. | |||||||||||||||||||||
PRODUCT REVENUES AND PRODUCTION COSTS (continued) | |||||||||||||||||||||
North America Copper Mines Product Revenues, Production Costs and Unit Net Cash Costs | |||||||||||||||||||||
Six Months Ended June 30, 2016 | |||||||||||||||||||||
(In millions) | By-Product | Co-Product Method | |||||||||||||||||||
Method | Copper | Molybdenuma | Otherb | Total | |||||||||||||||||
Revenues, excluding adjustments | $ | 2,092 | $ | 2,092 | $ | 90 | $ | 41 | $ | 2,223 | |||||||||||
Site production and delivery, before net noncash | |||||||||||||||||||||
and other costs shown below | 1,349 | 1,295 | 72 | 21 | 1,388 | ||||||||||||||||
By-product credits | (92 | ) | — | — | — | — | |||||||||||||||
Treatment charges | 103 | 99 | — | 4 | 103 | ||||||||||||||||
Net cash costs | 1,360 | 1,394 | 72 | 25 | 1,491 | ||||||||||||||||
DD&A | 277 | 263 | 9 | 5 | 277 | ||||||||||||||||
Noncash and other costs, net | 48 | 48 | — | — | 48 | ||||||||||||||||
Total costs | 1,685 | 1,705 | 81 | 30 | 1,816 | ||||||||||||||||
Revenue adjustments, primarily for pricing | |||||||||||||||||||||
on prior period open sales | (1 | ) | (1 | ) | — | — | (1 | ) | |||||||||||||
Gross profit | $ | 406 | $ | 386 | $ | 9 | $ | 11 | $ | 406 | |||||||||||
Copper sales (millions of recoverable pounds) | 964 | 964 | |||||||||||||||||||
Molybdenum sales (millions of recoverable pounds)a | 16 | ||||||||||||||||||||
Gross profit per pound of copper/molybdenum: | |||||||||||||||||||||
Revenues, excluding adjustments | $ | 2.17 | $ | 2.17 | $ | 5.61 | |||||||||||||||
Site production and delivery, before net noncash | |||||||||||||||||||||
and other costs shown below | 1.40 | 1.34 | 4.51 | ||||||||||||||||||
By-product credits | (0.10 | ) | — | — | |||||||||||||||||
Treatment charges | 0.11 | 0.11 | — | ||||||||||||||||||
Unit net cash costs | 1.41 | 1.45 | 4.51 | ||||||||||||||||||
DD&A | 0.29 | 0.27 | 0.55 | ||||||||||||||||||
Noncash and other costs, net | 0.05 | 0.05 | 0.02 | ||||||||||||||||||
Total unit costs | 1.75 | 1.77 | 5.08 | ||||||||||||||||||
Revenue adjustments, primarily for pricing | |||||||||||||||||||||
on prior period open sales | — | — | — | ||||||||||||||||||
Gross profit per pound | $ | 0.42 | $ | 0.40 | $ | 0.53 | |||||||||||||||
Reconciliation to Amounts Reported | |||||||||||||||||||||
(In millions) | Production | ||||||||||||||||||||
Revenues | and Delivery | DD&A | |||||||||||||||||||
Totals presented above | $ | 2,223 | $ | 1,388 | $ | 277 | |||||||||||||||
Treatment charges | — | 103 | — | ||||||||||||||||||
Noncash and other costs, net | — | 48 | — | ||||||||||||||||||
Revenue adjustments, primarily for pricing | |||||||||||||||||||||
on prior period open sales | (1 | ) | — | — | |||||||||||||||||
Eliminations and other | (26 | ) | (25 | ) | 1 | ||||||||||||||||
North America copper mines | 2,196 | 1,514 | 278 | ||||||||||||||||||
Other mining & eliminationsc | 3,675 | 2,632 | 536 | ||||||||||||||||||
Total mining | 5,871 | 4,146 | 814 | ||||||||||||||||||
U.S. oil & gas operations | 705 | 1,296 | 473 | ||||||||||||||||||
Corporate, other & eliminations | — | 13 | 7 | ||||||||||||||||||
As reported in FCX’s consolidated financial statements | $ | 6,576 | $ | 5,455 | $ | 1,294 |
a. | Reflects sales of molybdenum produced by certain of the North America copper mines to FCX's 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 the supplemental schedule "Business Segments," beginning on page XII. |
FREEPORT-McMoRan INC. | |||||||||||||||||||||
PRODUCT REVENUES AND PRODUCTION COSTS (continued) | |||||||||||||||||||||
North America Copper Mines Product Revenues, Production Costs and Unit Net Cash Costs | |||||||||||||||||||||
Six Months Ended June 30, 2015 | |||||||||||||||||||||
(In millions) | By-Product | Co-Product Method | |||||||||||||||||||
Method | Copper | Molybdenuma | Otherb | 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 | ||||||||||||||||
DD&A | 270 | 254 | 11 | 5 | 270 | ||||||||||||||||
Noncash and other costs, net | 77 | 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 | ||||||||||||||||||
DD&A | 0.28 | 0.27 | 0.58 | ||||||||||||||||||
Noncash and other costs, net | 0.08 | 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) | Production | ||||||||||||||||||||
Revenues | and Delivery | DD&A | |||||||||||||||||||
Totals presented above | $ | 2,828 | $ | 1,768 | $ | 270 | |||||||||||||||
Treatment charges | — | 121 | — | ||||||||||||||||||
Noncash and other costs, net | — | 77 | — | ||||||||||||||||||
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 & eliminationsc | 3,900 | 2,856 | 405 | ||||||||||||||||||
Total mining | 6,640 | 4,761 | 677 | ||||||||||||||||||
U.S. oil & gas operations | 1,069 | 564 | 1,015 | ||||||||||||||||||
Corporate, other & eliminations | — | 5 | 7 | ||||||||||||||||||
As reported in FCX’s consolidated financial statements | $ | 7,709 | $ | 5,330 | $ | 1,699 |
a. | Reflects sales of molybdenum produced by certain of the North America copper mines to FCX's 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 the supplemental schedule "Business Segments," beginning on page XII. |
FREEPORT-McMoRan INC. | |||||||||||||||||
PRODUCT REVENUES AND PRODUCTION COSTS (continued) | |||||||||||||||||
South America Mining Product Revenues, Production Costs and Unit Net Cash Costs | |||||||||||||||||
Three Months Ended June 30, 2016 | |||||||||||||||||
(In millions) | By-Product | Co-Product Method | |||||||||||||||
Method | Copper | Othera | Total | ||||||||||||||
Revenues, excluding adjustments | $ | 715 | $ | 715 | $ | 51 | $ | 766 | |||||||||
Site production and delivery, before net noncash | |||||||||||||||||
and other costs shown below | 391 | 369 | 33 | 402 | |||||||||||||
By-product credits | (40 | ) | — | — | — | ||||||||||||
Treatment charges | 76 | 76 | — | 76 | |||||||||||||
Royalty on metals | 2 | 2 | — | 2 | |||||||||||||
Net cash costs | 429 | 447 | 33 | 480 | |||||||||||||
DD&A | 136 | 127 | 9 | 136 | |||||||||||||
Noncash and other costs, net | 5 | 5 | — | 5 | |||||||||||||
Total costs | 570 | 579 | 42 | 621 | |||||||||||||
Revenue adjustments, primarily for pricing | |||||||||||||||||
on prior period open sales | (11 | ) | (11 | ) | — | (11 | ) | ||||||||||
Gross profit | $ | 134 | $ | 125 | $ | 9 | $ | 134 | |||||||||
Copper sales (millions of recoverable pounds) | 327 | 327 | |||||||||||||||
Gross profit per pound of copper: | |||||||||||||||||
Revenues, excluding adjustments | $ | 2.19 | $ | 2.19 | |||||||||||||
Site production and delivery, before net noncash | |||||||||||||||||
and other costs shown below | 1.20 | 1.13 | |||||||||||||||
By-product credits | (0.12 | ) | — | ||||||||||||||
Treatment charges | 0.23 | 0.23 | |||||||||||||||
Royalty on metals | — | — | |||||||||||||||
Unit net cash costs | 1.31 | 1.36 | |||||||||||||||
DD&A | 0.41 | 0.39 | |||||||||||||||
Noncash and other costs, net | 0.02 | 0.02 | |||||||||||||||
Total unit costs | 1.74 | 1.77 | |||||||||||||||
Revenue adjustments, primarily for pricing | |||||||||||||||||
on prior period open sales | (0.04 | ) | (0.04 | ) | |||||||||||||
Gross profit per pound | $ | 0.41 | $ | 0.38 | |||||||||||||
Reconciliation to Amounts Reported | |||||||||||||||||
(In millions) | Production | ||||||||||||||||
Revenues | and Delivery | DD&A | |||||||||||||||
Totals presented above | $ | 766 | $ | 402 | $ | 136 | |||||||||||
Treatment charges | (76 | ) | — | — | |||||||||||||
Royalty on metals | (2 | ) | — | — | |||||||||||||
Noncash and other costs, net | — | 5 | — | ||||||||||||||
Revenue adjustments, primarily for pricing | |||||||||||||||||
on prior period open sales | (11 | ) | — | — | |||||||||||||
Eliminations and other | — | (1 | ) | — | |||||||||||||
South America mining | 677 | 406 | 136 | ||||||||||||||
Other mining & eliminationsb | 2,247 | 1,651 | 274 | ||||||||||||||
Total mining | 2,924 | 2,057 | 410 | ||||||||||||||
U.S. oil & gas operations | 410 | 889 | 218 | ||||||||||||||
Corporate, other & eliminations | — | 10 | 4 | ||||||||||||||
As reported in FCX’s consolidated financial statements | $ | 3,334 | $ | 2,956 | $ | 632 |
a. | Includes silver sales of 911 thousand ounces ($17.50 per ounce average realized price). Also reflects sales of molybdenum produced by Cerro Verde to FCX's molybdenum sales company at market-based pricing. |
b. | Represents the combined total for all other mining operations and the related eliminations, as presented in the supplemental schedule, “Business Segments,” beginning on page XII. |
FREEPORT-McMoRan INC. | |||||||||||||||||
PRODUCT REVENUES AND PRODUCTION COSTS (continued) | |||||||||||||||||
South America Mining Product Revenues, Production Costs and Unit Net Cash Costs | |||||||||||||||||
Three Months Ended June 30, 2015 | |||||||||||||||||
(In millions) | By-Product | Co-Product Method | |||||||||||||||
Method | Copper | Othera | 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 | |||||||||||||
DD&A | 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 | |||||||||||||||
DD&A | 0.40 | 0.39 | |||||||||||||||
Noncash and other credits, 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) | Production | ||||||||||||||||
Revenues | and Delivery | DD&A | |||||||||||||||
Totals presented above | $ | 493 | $ | 320 | $ | 72 | |||||||||||
Treatment charges | (30 | ) | — | — | |||||||||||||
Royalty on metals | (1 | ) | — | — | |||||||||||||
Noncash and other credits, 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 & eliminationsb | 2,916 | 2,053 | 273 | ||||||||||||||
Total mining | 3,369 | 2,368 | 345 | ||||||||||||||
U.S. oil & gas operations | 569 | 281 | 485 | ||||||||||||||
Corporate, other & eliminations | — | 2 | 3 | ||||||||||||||
As reported in FCX’s consolidated financial statements | $ | 3,938 | $ | 2,651 | $ | 833 |
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 FCX's molybdenum sales company at market-based pricing. |
FREEPORT-McMoRan INC. | |||||||||||||||||
PRODUCT REVENUES AND PRODUCTION COSTS (continued) | |||||||||||||||||
South America Mining Product Revenues, Production Costs and Unit Net Cash Costs | |||||||||||||||||
Six Months Ended June 30, 2016 | |||||||||||||||||
(In millions) | By-Product | Co-Product Method | |||||||||||||||
Method | Copper | Othera | Total | ||||||||||||||
Revenues, excluding adjustments | $ | 1,414 | $ | 1,414 | $ | 80 | $ | 1,494 | |||||||||
Site production and delivery, before net noncash | |||||||||||||||||
and other costs shown below | 789 | 754 | 53 | 807 | |||||||||||||
By-product credits | (62 | ) | — | — | — | ||||||||||||
Treatment charges | 151 | 151 | — | 151 | |||||||||||||
Royalty on metals | 3 | 3 | — | 3 | |||||||||||||
Net cash costs | 881 | 908 | 53 | 961 | |||||||||||||
DD&A | 267 | 253 | 14 | 267 | |||||||||||||
Noncash and other costs, net | 12 | 12 | — | 12 | |||||||||||||
Total costs | 1,160 | 1,173 | 67 | 1,240 | |||||||||||||
Revenue adjustments, primarily for pricing | |||||||||||||||||
on prior period open sales | 8 | 8 | — | 8 | |||||||||||||
Gross profit | $ | 262 | $ | 249 | $ | 13 | $ | 262 | |||||||||
Copper sales (millions of recoverable pounds) | 650 | 650 | |||||||||||||||
Gross profit per pound of copper: | |||||||||||||||||
Revenues, excluding adjustments | $ | 2.18 | $ | 2.18 | |||||||||||||
Site production and delivery, before net noncash | |||||||||||||||||
and other costs shown below | 1.22 | 1.16 | |||||||||||||||
By-product credits | (0.10 | ) | — | ||||||||||||||
Treatment charges | 0.23 | 0.23 | |||||||||||||||
Royalty on metals | 0.01 | 0.01 | |||||||||||||||
Unit net cash costs | 1.36 | 1.40 | |||||||||||||||
DD&A | 0.41 | 0.39 | |||||||||||||||
Noncash and other costs, net | 0.02 | 0.02 | |||||||||||||||
Total unit costs | 1.79 | 1.81 | |||||||||||||||
Revenue adjustments, primarily for pricing | |||||||||||||||||
on prior period open sales | 0.01 | 0.01 | |||||||||||||||
Gross profit per pound | $ | 0.40 | $ | 0.38 | |||||||||||||
Reconciliation to Amounts Reported | |||||||||||||||||
(In millions) | Production | ||||||||||||||||
Revenues | and Delivery | DD&A | |||||||||||||||
Totals presented above | $ | 1,494 | $ | 807 | $ | 267 | |||||||||||
Treatment charges | (151 | ) | — | — | |||||||||||||
Royalty on metals | (3 | ) | — | — | |||||||||||||
Noncash and other costs, net | — | 12 | — | ||||||||||||||
Revenue adjustments, primarily for pricing | |||||||||||||||||
on prior period open sales | 8 | — | — | ||||||||||||||
Eliminations and other | — | (3 | ) | 1 | |||||||||||||
South America mining | 1,348 | 816 | 268 | ||||||||||||||
Other mining & eliminationsb | 4,523 | 3,330 | 546 | ||||||||||||||
Total mining | 5,871 | 4,146 | 814 | ||||||||||||||
U.S. oil & gas operations | 705 | 1,296 | 473 | ||||||||||||||
Corporate, other & eliminations | — | 13 | 7 | ||||||||||||||
As reported in FCX’s consolidated financial statements | $ | 6,576 | $ | 5,455 | $ | 1,294 |
a. | Includes silver sales of 1.8 million ounces ($16.03 per ounce average realized price). Also reflects sales of molybdenum produced by Cerro Verde to FCX's molybdenum sales company at market-based pricing. |
b. | Represents the combined total for all other mining operations and the related eliminations, as presented in the supplemental schedule, “Business Segments,” beginning on page XII. |
FREEPORT-McMoRan INC. | |||||||||||||||||
PRODUCT REVENUES AND PRODUCTION COSTS (continued) | |||||||||||||||||
South America Mining Product Revenues, Production Costs and Unit Net Cash Costs | |||||||||||||||||
Six Months Ended June 30, 2015 | |||||||||||||||||
(In millions) | By-Product | Co-Product Method | |||||||||||||||
Method | Copper | Othera | 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 | |||||||||||||
DD&A | 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 | |||||||||||||||
DD&A | 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) | Production | ||||||||||||||||
Revenues | and Delivery | DD&A | |||||||||||||||
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 & eliminationsb | 5,701 | 4,101 | 530 | ||||||||||||||
Total mining | 6,640 | 4,761 | 677 | ||||||||||||||
U.S. oil & gas operations | 1,069 | 564 | 1,015 | ||||||||||||||
Corporate, other & eliminations | — | 5 | 7 | ||||||||||||||
As reported in FCX’s consolidated financial statements | $ | 7,709 | $ | 5,330 | $ | 1,699 |
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 FCX's molybdenum sales company at market-based pricing. |
b. | Represents the combined total for all other mining operations and the related eliminations, as presented in the supplemental schedule, “Business Segments,” beginning on page XII. |
FREEPORT-McMoRan INC. | |||||||||||||||||||
PRODUCT REVENUES AND PRODUCTION COSTS (continued) | |||||||||||||||||||
Indonesia Mining Product Revenues, Production Costs and Unit Net Cash Costs | |||||||||||||||||||
Three Months Ended June 30, 2016 | |||||||||||||||||||
(In millions) | By-Product | Co-Product Method | |||||||||||||||||
Method | Copper | Gold | Silvera | Total | |||||||||||||||
Revenues, excluding adjustments | $ | 431 | $ | 431 | $ | 195 | $ | 10 | $ | 636 | |||||||||
Site production and delivery, before net noncash | |||||||||||||||||||
and other costs shown below | 347 | 235 | 107 | 5 | 347 | ||||||||||||||
Gold and silver credits | (206 | ) | — | — | — | — | |||||||||||||
Treatment charges | 57 | 39 | 17 | 1 | 57 | ||||||||||||||
Export duties | 16 | 11 | 5 | — | 16 | ||||||||||||||
Royalty on metals | 21 | 14 | 7 | — | 21 | ||||||||||||||
Net cash costs | 235 | 299 | 136 | 6 | 441 | ||||||||||||||
DD&A | 93 | 63 | 28 | 2 | 93 | ||||||||||||||
Noncash and other costs, net | 2 | 1 | 1 | — | 2 | ||||||||||||||
Total costs | 330 | 363 | 165 | 8 | 536 | ||||||||||||||
Revenue adjustments, primarily for pricing on | |||||||||||||||||||
prior period open sales | (12 | ) | (12 | ) | 1 | — | (11 | ) | |||||||||||
PT Smelting intercompany loss | (7 | ) | (5 | ) | (2 | ) | — | (7 | ) | ||||||||||
Gross profit | $ | 82 | $ | 51 | $ | 29 | $ | 2 | $ | 82 | |||||||||
Copper sales (millions of recoverable pounds) | 196 | 196 | |||||||||||||||||
Gold sales (thousands of recoverable ounces) | 151 | ||||||||||||||||||
Gross profit per pound of copper/per ounce of gold: | |||||||||||||||||||
Revenues, excluding adjustments | $ | 2.20 | $ | 2.20 | $ | 1,292 | |||||||||||||
Site production and delivery, before net noncash | |||||||||||||||||||
and other costs shown below | 1.77 | 1.20 | 706 | ||||||||||||||||
Gold and silver credits | (1.05 | ) | — | — | |||||||||||||||
Treatment charges | 0.29 | 0.20 | 116 | ||||||||||||||||
Export duties | 0.08 | 0.05 | 32 | ||||||||||||||||
Royalty on metals | 0.11 | 0.07 | 45 | ||||||||||||||||
Unit net cash costs | 1.20 | 1.52 | 899 | ||||||||||||||||
DD&A | 0.48 | 0.33 | 190 | ||||||||||||||||
Noncash and other costs, net | 0.01 | 0.01 | 4 | ||||||||||||||||
Total unit costs | 1.69 | 1.86 | 1,093 | ||||||||||||||||
Revenue adjustments, primarily for pricing on | |||||||||||||||||||
prior period open sales | (0.06 | ) | (0.06 | ) | 7 | ||||||||||||||
PT Smelting intercompany loss | (0.03 | ) | (0.02 | ) | (14 | ) | |||||||||||||
Gross profit per pound/ounce | $ | 0.42 | $ | 0.26 | $ | 192 | |||||||||||||
Reconciliation to Amounts Reported | |||||||||||||||||||
(In millions) | Production | ||||||||||||||||||
Revenues | and Delivery | DD&A | |||||||||||||||||
Totals presented above | $ | 636 | $ | 347 | $ | 93 | |||||||||||||
Treatment charges | (57 | ) | — | — | |||||||||||||||
Export duties | (16 | ) | — | — | |||||||||||||||
Royalty on metals | (21 | ) | — | — | |||||||||||||||
Noncash and other costs, net | — | 2 | — | ||||||||||||||||
Revenue adjustments, primarily for pricing on | |||||||||||||||||||
prior period open sales | (11 | ) | — | — | |||||||||||||||
PT Smelting intercompany loss | — | 7 | — | ||||||||||||||||
Indonesia mining | 531 | 356 | 93 | ||||||||||||||||
Other mining & eliminationsb | 2,393 | 1,701 | 317 | ||||||||||||||||
Total mining | 2,924 | 2,057 | 410 | ||||||||||||||||
U.S. oil & gas operations | 410 | 889 | 218 | ||||||||||||||||
Corporate, other & eliminations | — | 10 | 4 | ||||||||||||||||
As reported in FCX’s consolidated financial statements | $ | 3,334 | $ | 2,956 | $ | 632 |
FREEPORT-McMoRan INC. | |||||||||||||||||||
PRODUCT REVENUES AND PRODUCTION COSTS (continued) | |||||||||||||||||||
Indonesia Mining Product Revenues, Production Costs and Unit Net Cash Costs | |||||||||||||||||||
Three Months Ended June 30, 2015 | |||||||||||||||||||
(In millions) | By-Product | Co-Product Method | |||||||||||||||||
Method | Copper | Gold | Silvera | Total | |||||||||||||||
Revenues, excluding adjustments | $ | 511 | $ | 511 | $ | 406 | $ | 8 | $ | 925 | |||||||||
Site production and delivery, before net noncash | |||||||||||||||||||
and other costs shown below | 442 | 244 | 194 | 4 | 442 | ||||||||||||||
Gold and silver credits | (416 | ) | — | — | — | — | |||||||||||||
Treatment charges | 62 | 34 | 27 | 1 | 62 | ||||||||||||||
Export duties | 36 | 20 | 16 | — | 36 | ||||||||||||||
Royalty on metals | 35 | 19 | 16 | — | 35 | ||||||||||||||
Net cash costs | 159 | 317 | 253 | 5 | 575 | ||||||||||||||
DD&A | 78 | 43 | 34 | 1 | 78 | ||||||||||||||
Noncash and other costs, net | 8 | 5 | 3 | — | 8 | ||||||||||||||
Total costs | 245 | 365 | 290 | 6 | 661 | ||||||||||||||
Revenue adjustments, primarily for pricing on | |||||||||||||||||||
prior period open sales | (4 | ) | (4 | ) | 2 | — | (2 | ) | |||||||||||
PT Smelting intercompany loss | (5 | ) | (3 | ) | (2 | ) | — | (5 | ) | ||||||||||
Gross profit | $ | 257 | $ | 139 | $ | 116 | $ | 2 | $ | 257 | |||||||||
Copper sales (millions of recoverable pounds) | 196 | 196 | |||||||||||||||||
Gold sales (thousands of recoverable ounces) | 346 | ||||||||||||||||||
Gross profit per pound of copper/per ounce of gold: | |||||||||||||||||||
Revenues, excluding adjustments | $ | 2.61 | $ | 2.61 | $ | 1,173 | |||||||||||||
Site production and delivery, before net noncash | |||||||||||||||||||
and other costs shown below | 2.26 | 1.25 | 560 | ||||||||||||||||
Gold and silver credits | (2.13 | ) | — | — | |||||||||||||||
Treatment charges | 0.32 | 0.18 | 79 | ||||||||||||||||
Export duties | 0.18 | 0.10 | 45 | ||||||||||||||||
Royalty on metals | 0.18 | 0.10 | 45 | ||||||||||||||||
Unit net cash costs | 0.81 | 1.63 | 729 | ||||||||||||||||
DD&A | 0.40 | 0.22 | 100 | ||||||||||||||||
Noncash and other costs, net | 0.04 | 0.02 | 10 | ||||||||||||||||
Total unit costs | 1.25 | 1.87 | 839 | ||||||||||||||||
Revenue adjustments, primarily for pricing on | |||||||||||||||||||
prior period open sales | (0.02 | ) | (0.02 | ) | 7 | ||||||||||||||
PT Smelting intercompany loss | (0.02 | ) | (0.01 | ) | (5 | ) | |||||||||||||
Gross profit per pound/ounce | $ | 1.32 | $ | 0.71 | $ | 336 | |||||||||||||
Reconciliation to Amounts Reported | |||||||||||||||||||
(In millions) | Production | ||||||||||||||||||
Revenues | and Delivery | DD&A | |||||||||||||||||
Totals presented above | $ | 925 | $ | 442 | $ | 78 | |||||||||||||
Treatment charges | (62 | ) | — | — | |||||||||||||||
Export duties | (36 | ) | — | — | |||||||||||||||
Royalty on metals | (35 | ) | — | — | |||||||||||||||
Noncash and other costs, net | — | 8 | — | ||||||||||||||||
Revenue adjustments, primarily for pricing on | |||||||||||||||||||
prior period open sales | (2 | ) | — | — | |||||||||||||||
PT Smelting intercompany loss | — | 5 | — | ||||||||||||||||
Indonesia mining | 790 | 455 | 78 | ||||||||||||||||
Other mining & eliminationsb | 2,579 | 1,913 | 267 | ||||||||||||||||
Total mining | 3,369 | 2,368 | 345 | ||||||||||||||||
U.S. oil & gas operations | 569 | 281 | 485 | ||||||||||||||||
Corporate, other & eliminations | — | 2 | 3 | ||||||||||||||||
As reported in FCX’s consolidated financial statements | $ | 3,938 | $ | 2,651 | $ | 833 |
FREEPORT-McMoRan INC. | |||||||||||||||||||
PRODUCT REVENUES AND PRODUCTION COSTS (continued) | |||||||||||||||||||
Indonesia Mining Product Revenues, Production Costs and Unit Net Cash Costs | |||||||||||||||||||
Six Months Ended June 30, 2016 | |||||||||||||||||||
(In millions) | By-Product | Co-Product Method | |||||||||||||||||
Method | Copper | Gold | Silvera | Total | |||||||||||||||
Revenues, excluding adjustments | $ | 802 | $ | 802 | $ | 436 | $ | 17 | $ | 1,255 | |||||||||
Site production and delivery, before net noncash | |||||||||||||||||||
and other costs shown below | 737 | 471 | 256 | 10 | 737 | ||||||||||||||
Gold and silver credits | (470 | ) | — | — | — | — | |||||||||||||
Treatment charges | 112 | 72 | 39 | 1 | 112 | ||||||||||||||
Export duties | 29 | 18 | 10 | 1 | 29 | ||||||||||||||
Royalty on metals | 43 | 27 | 16 | — | 43 | ||||||||||||||
Net cash costs | 451 | 588 | 321 | 12 | 921 | ||||||||||||||
DD&A | 174 | 111 | 60 | 3 | 174 | ||||||||||||||
Noncash and other costs, net | 14 | 9 | 5 | — | 14 | ||||||||||||||
Total costs | 639 | 708 | 386 | 15 | 1,109 | ||||||||||||||
Revenue adjustments, primarily for pricing on | |||||||||||||||||||
prior period open sales | (1 | ) | (1 | ) | 17 | — | 16 | ||||||||||||
PT Smelting intercompany profit | 1 | 1 | — | — | 1 | ||||||||||||||
Gross profit | $ | 163 | $ | 94 | $ | 67 | $ | 2 | $ | 163 | |||||||||
Copper sales (millions of recoverable pounds) | 370 | 370 | |||||||||||||||||
Gold sales (thousands of recoverable ounces) | 346 | ||||||||||||||||||
Gross profit per pound of copper/per ounce of gold: | |||||||||||||||||||
Revenues, excluding adjustments | $ | 2.17 | $ | 2.17 | $ | 1,260 | |||||||||||||
Site production and delivery, before net noncash | |||||||||||||||||||
and other costs shown below | 1.99 | 1.27 | 740 | ||||||||||||||||
Gold and silver credits | (1.27 | ) | — | — | |||||||||||||||
Treatment charges | 0.30 | 0.20 | 113 | ||||||||||||||||
Export duties | 0.08 | 0.05 | 29 | ||||||||||||||||
Royalty on metals | 0.12 | 0.07 | 47 | ||||||||||||||||
Unit net cash costs | 1.22 | 1.59 | 929 | ||||||||||||||||
DD&A | 0.47 | 0.30 | 175 | ||||||||||||||||
Noncash and other costs, net | 0.04 | 0.02 | 14 | ||||||||||||||||
Total unit costs | 1.73 | 1.91 | 1,118 | ||||||||||||||||
Revenue adjustments, primarily for pricing on | |||||||||||||||||||
prior period open sales | — | — | 48 | ||||||||||||||||
PT Smelting intercompany profit | — | — | 2 | ||||||||||||||||
Gross profit per pound/ounce | $ | 0.44 | $ | 0.26 | $ | 192 | |||||||||||||
Reconciliation to Amounts Reported | |||||||||||||||||||
(In millions) | Production | ||||||||||||||||||
Revenues | and Delivery | DD&A | |||||||||||||||||
Totals presented above | $ | 1,255 | $ | 737 | $ | 174 | |||||||||||||
Treatment charges | (112 | ) | — | — | |||||||||||||||
Export duties | (29 | ) | — | — | |||||||||||||||
Royalty on metals | (43 | ) | — | — | |||||||||||||||
Noncash and other costs, net | — | 14 | — | ||||||||||||||||
Revenue adjustments, primarily for pricing on | |||||||||||||||||||
prior period open sales | 16 | — | — | ||||||||||||||||
PT Smelting intercompany profit | — | (1 | ) | — | |||||||||||||||
Indonesia mining | 1,087 | 750 | 174 | ||||||||||||||||
Other mining & eliminationsb | 4,784 | 3,396 | 640 | ||||||||||||||||
Total mining | 5,871 | 4,146 | 814 | ||||||||||||||||
U.S. oil & gas operations | 705 | 1,296 | 473 | ||||||||||||||||
Corporate, other & eliminations | — | 13 | 7 | ||||||||||||||||
As reported in FCX’s consolidated financial statements | $ | 6,576 | $ | 5,455 | $ | 1,294 |
FREEPORT-McMoRan INC. | |||||||||||||||||||
PRODUCT REVENUES AND PRODUCTION COSTS (continued) | |||||||||||||||||||
Indonesia Mining Product Revenues, Production Costs and Unit Net Cash Costs | |||||||||||||||||||
Six Months Ended June 30, 2015 | |||||||||||||||||||
(In millions) | By-Product | Co-Product Method | |||||||||||||||||
Method | Copper | Gold | Silvera | Total | |||||||||||||||
Revenues, excluding adjustments | $ | 933 | $ | 933 | $ | 716 | $ | 16 | $ | 1,665 | |||||||||
Site production and delivery, before net noncash | |||||||||||||||||||
and other costs shown below | 882 | 494 | 380 | 8 | 882 | ||||||||||||||
Gold and silver credits | (741 | ) | — | — | — | — | |||||||||||||
Treatment charges | 108 | 61 | 46 | 1 | 108 | ||||||||||||||
Export duties | 57 | 32 | 24 | 1 | 57 | ||||||||||||||
Royalty on metals | 60 | 33 | 26 | 1 | 60 | ||||||||||||||
Net cash costs | 366 | 620 | 476 | 11 | 1,107 | ||||||||||||||
DD&A | 148 | 83 | 64 | 1 | 148 | ||||||||||||||
Noncash and other costs, net | 14 | 8 | 6 | — | 14 | ||||||||||||||
Total costs | 528 | 711 | 546 | 12 | 1,269 | ||||||||||||||
Revenue adjustments, primarily for pricing on | |||||||||||||||||||
prior period open sales | (52 | ) | (52 | ) | 9 | — | (43 | ) | |||||||||||
PT Smelting intercompany profit | 2 | 2 | — | — | 2 | ||||||||||||||
Gross profit | $ | 355 | $ | 172 | $ | 179 | $ | 4 | $ | 355 | |||||||||
Copper sales (millions of recoverable pounds) | 351 | 351 | |||||||||||||||||
Gold sales (thousands of recoverable ounces) | 606 | ||||||||||||||||||
Gross profit per pound of copper/per ounce of gold: | |||||||||||||||||||
Revenues, excluding adjustments | $ | 2.66 | $ | 2.66 | $ | 1,183 | |||||||||||||
Site production and delivery, before net noncash | |||||||||||||||||||
and other costs shown below | 2.51 | 1.41 | 626 | ||||||||||||||||
Gold and silver credits | (2.11 | ) | — | — | |||||||||||||||
Treatment charges | 0.31 | 0.17 | 77 | ||||||||||||||||
Export duties | 0.16 | 0.09 | 41 | ||||||||||||||||
Royalty on metals | 0.17 | 0.10 | 42 | ||||||||||||||||
Unit net cash costs | 1.04 | 1.77 | 786 | ||||||||||||||||
DD&A | 0.42 | 0.24 | 106 | ||||||||||||||||
Noncash and other costs, net | 0.04 | 0.02 | 10 | ||||||||||||||||
Total unit costs | 1.50 | 2.03 | 902 | ||||||||||||||||
Revenue adjustments, primarily for pricing on | |||||||||||||||||||
prior period open sales | (0.15 | ) | (0.15 | ) | 14 | ||||||||||||||
PT Smelting intercompany profit | 0.01 | 0.01 | 2 | ||||||||||||||||
Gross profit per pound/ounce | $ | 1.02 | $ | 0.49 | $ | 297 | |||||||||||||
Reconciliation to Amounts Reported | |||||||||||||||||||
(In millions) | Production | ||||||||||||||||||
Revenues | and Delivery | DD&A | |||||||||||||||||
Totals presented above | $ | 1,665 | $ | 882 | $ | 148 | |||||||||||||
Treatment charges | (108 | ) | — | — | |||||||||||||||
Export duties | (57 | ) | — | — | |||||||||||||||
Royalty on metals | (60 | ) | — | — | |||||||||||||||
Noncash and other costs, net | — | 14 | — | ||||||||||||||||
Revenue adjustments, primarily for pricing on | |||||||||||||||||||
prior period open sales | (43 | ) | — | — | |||||||||||||||
PT Smelting intercompany profit | — | (2 | ) | — | |||||||||||||||
Indonesia mining | 1,397 | 894 | 148 | ||||||||||||||||
Other mining & eliminationsb | 5,243 | 3,867 | 529 | ||||||||||||||||
Total mining | 6,640 | 4,761 | 677 | ||||||||||||||||
U.S. oil & gas operations | 1,069 | 564 | 1,015 | ||||||||||||||||
Corporate, other & eliminations | — | 5 | 7 | ||||||||||||||||
As reported in FCX’s consolidated financial statements | $ | 7,709 | $ | 5,330 | $ | 1,699 |
FREEPORT-McMoRan INC. | |||||||||||||||||
PRODUCT REVENUES AND PRODUCTION COSTS (continued) | |||||||||||||||||
Africa Mining Product Revenues, Production Costs and Unit Net Cash Costs | |||||||||||||||||
Three Months Ended June 30, 2016 | |||||||||||||||||
(In millions) | By-Product | Co-Product Method | |||||||||||||||
Method | Copper | Cobalt | Total | ||||||||||||||
Revenues, excluding adjustmentsa | $ | 258 | $ | 258 | $ | 61 | $ | 319 | |||||||||
Site production and delivery, before net noncash | |||||||||||||||||
and other costs shown below | 201 | 177 | 46 | 223 | |||||||||||||
Cobalt creditsb | (40 | ) | — | — | — | ||||||||||||
Royalty on metals | 6 | 5 | 1 | 6 | |||||||||||||
Net cash costs | 167 | 182 | 47 | 229 | |||||||||||||
DD&A | 62 | 52 | 10 | 62 | |||||||||||||
Noncash and other costs, net | 11 | 9 | 2 | 11 | |||||||||||||
Total costs | 240 | 243 | 59 | 302 | |||||||||||||
Revenue adjustments, primarily for pricing | |||||||||||||||||
on prior period open sales | (1 | ) | (1 | ) | 1 | — | |||||||||||
Gross profit | $ | 17 | $ | 14 | $ | 3 | $ | 17 | |||||||||
Copper sales (millions of recoverable pounds) | 124 | 124 | |||||||||||||||
Cobalt sales (millions of contained pounds) | 10 | ||||||||||||||||
Gross profit per pound of copper/cobalt: | |||||||||||||||||
Revenues, excluding adjustmentsa | $ | 2.07 | $ | 2.07 | $ | 6.58 | |||||||||||
Site production and delivery, before net noncash | |||||||||||||||||
and other costs shown below | 1.62 | 1.42 | 5.03 | ||||||||||||||
Cobalt creditsb | (0.33 | ) | — | — | |||||||||||||
Royalty on metals | 0.05 | 0.04 | 0.11 | ||||||||||||||
Unit net cash costs | 1.34 | 1.46 | 5.14 | ||||||||||||||
DD&A | 0.49 | 0.41 | 1.07 | ||||||||||||||
Noncash and other costs, net | 0.09 | 0.08 | 0.20 | ||||||||||||||
Total unit costs | 1.92 | 1.95 | 6.41 | ||||||||||||||
Revenue adjustments, primarily for pricing | |||||||||||||||||
on prior period open sales | (0.01 | ) | (0.01 | ) | 0.17 | ||||||||||||
Gross profit per pound | $ | 0.14 | $ | 0.11 | $ | 0.34 | |||||||||||
Reconciliation to Amounts Reported | |||||||||||||||||
(In millions) | |||||||||||||||||
Production | |||||||||||||||||
Revenues | and Delivery | DD&A | |||||||||||||||
Totals presented above | $ | 319 | $ | 223 | $ | 62 | |||||||||||
Royalty on metals | (6 | ) | — | — | |||||||||||||
Noncash and other costs, net | — | 11 | — | ||||||||||||||
Revenue adjustments, primarily for pricing | |||||||||||||||||
on prior period open sales | — | — | — | ||||||||||||||
Eliminations and other adjustmentsc | (41 | ) | 22 | (42 | ) | ||||||||||||
Total | $ | 272 | d | $ | 256 | d | $ | 20 | d |
a. | Includes point-of-sale transportation costs as negotiated in customer contracts. |
b. | Net of cobalt downstream processing and freight costs. |
c. | Reflects adjustments associated with reporting Tenke as discontinued operations/assets held for sale, including the elimination of intercompany sales to FCX's consolidated subsidiaries and the impact of discontinuing DD&A. |
d. | Represents amounts included in net (loss) income from discontinued operations, as reported in FCX's consolidated financial statements (in millions): |
Revenues | $ | 272 | ||
Less: | ||||
Production and delivery costs | 256 | |||
DD&A | 20 | |||
Estimated loss on sale | 177 | |||
Allocated interest expense | 11 | |||
Benefit from income taxes | (16 | ) | ||
Other expense, net | 5 | |||
Net loss from discontinued operations | $ | (181 | ) |
FREEPORT-McMoRan INC. | |||||||||||||||||
PRODUCT REVENUES AND PRODUCTION COSTS (continued) | |||||||||||||||||
Africa Mining Product Revenues, Production Costs and Unit Net Cash Costs | |||||||||||||||||
Three Months Ended June 30, 2015 | |||||||||||||||||
(In millions) | By-Product | Co-Product Method | |||||||||||||||
Method | Copper | Cobalt | Total | ||||||||||||||
Revenues, excluding adjustmentsa | $ | 275 | $ | 275 | $ | 76 | $ | 351 | |||||||||
Site production and delivery, before net noncash | |||||||||||||||||
and other costs shown below | 161 | 141 | 45 | 186 | |||||||||||||
Cobalt creditsb | (55 | ) | — | — | — | ||||||||||||
Royalty on metals | 6 | 5 | 1 | 6 | |||||||||||||
Net cash costs | 112 | 146 | 46 | 192 | |||||||||||||
DD&A | 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 adjustmentsa | $ | 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 creditsb | (0.53 | ) | — | — | |||||||||||||
Royalty on metals | 0.06 | 0.05 | 0.16 | ||||||||||||||
Unit net cash costs | 1.07 | 1.40 | 5.64 | ||||||||||||||
DD&A | 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) | Production | ||||||||||||||||
Revenues | and Delivery | DD&A | |||||||||||||||
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 | — | — | ||||||||||||||
Eliminations and other adjustmentsc | (41 | ) | 7 | — | |||||||||||||
Total | $ | 310 | d | $ | 197 | d | $ | 57 | d |
a. | Includes point-of-sale transportation costs as negotiated in customer contracts. |
b. | Net of cobalt downstream processing and freight costs. |
c. | Reflects adjustments associated with the presentation of Tenke as discontinued operations, including the elimination of intercompany sales to FCX's consolidated subsidiaries. |
d. | Represents amounts included in net (loss) income from discontinued operations, as reported in FCX's consolidated financial statements (in millions): |
Revenues | $ | 310 | ||
Less: | ||||
Production and delivery costs | 197 | |||
DD&A | 57 | |||
Allocated interest expense | 7 | |||
Provision for income taxes | 12 | |||
Other expense, net | 8 | |||
Net income from discontinued operations | $ | 29 |
FREEPORT-McMoRan INC. | |||||||||||||||||
PRODUCT REVENUES AND PRODUCTION COSTS (continued) | |||||||||||||||||
Africa Mining Product Revenues, Production Costs and Unit Net Cash Costs | |||||||||||||||||
Six Months Ended June 30, 2016 | |||||||||||||||||
(In millions) | By-Product | Co-Product Method | |||||||||||||||
Method | Copper | Cobalt | Total | ||||||||||||||
Revenues, excluding adjustmentsa | $ | 514 | $ | 514 | $ | 128 | $ | 642 | |||||||||
Site production and delivery, before net noncash | |||||||||||||||||
and other costs shown below | 403 | 350 | 98 | 448 | |||||||||||||
Cobalt creditsb | (87 | ) | — | — | — | ||||||||||||
Royalty on metals | 11 | 9 | 2 | 11 | |||||||||||||
Net cash costs | 327 | 359 | 100 | 459 | |||||||||||||
DD&A | 122 | 101 | 21 | 122 | |||||||||||||
Noncash and other costs, net | 13 | 11 | 2 | 13 | |||||||||||||
Total costs | 462 | 471 | 123 | 594 | |||||||||||||
Revenue adjustments, primarily for pricing | |||||||||||||||||
on prior period open sales | (4 | ) | (4 | ) | 4 | — | |||||||||||
Gross profit | $ | 48 | $ | 39 | $ | 9 | $ | 48 | |||||||||
Copper sales (millions of recoverable pounds) | 247 | 247 | |||||||||||||||
Cobalt sales (millions of contained pounds) | 20 | ||||||||||||||||
Gross profit per pound of copper/cobalt: | |||||||||||||||||
Revenues, excluding adjustmentsa | $ | 2.08 | $ | 2.08 | $ | 6.52 | |||||||||||
Site production and delivery, before net noncash | |||||||||||||||||
and other costs shown below | 1.63 | 1.42 | 4.99 | ||||||||||||||
Cobalt creditsb | (0.35 | ) | — | — | |||||||||||||
Royalty on metals | 0.05 | 0.03 | 0.11 | ||||||||||||||
Unit net cash costs | 1.33 | 1.45 | 5.10 | ||||||||||||||
DD&A | 0.49 | 0.41 | 1.05 | ||||||||||||||
Noncash and other costs, net | 0.05 | 0.04 | 0.11 | ||||||||||||||
Total unit costs | 1.87 | 1.90 | 6.26 | ||||||||||||||
Revenue adjustments, primarily for pricing | |||||||||||||||||
on prior period open sales | (0.02 | ) | (0.02 | ) | 0.19 | ||||||||||||
Gross profit per pound | $ | 0.19 | $ | 0.16 | $ | 0.45 | |||||||||||
Reconciliation to Amounts Reported | |||||||||||||||||
(In millions) | Production | ||||||||||||||||
Revenues | and Delivery | DD&A | |||||||||||||||
Totals presented above | $ | 642 | $ | 448 | $ | 122 | |||||||||||
Royalty on metals | (11 | ) | — | — | |||||||||||||
Noncash and other costs, net | — | 13 | — | ||||||||||||||
Revenue adjustments, primarily for pricing | |||||||||||||||||
on prior period open sales | — | — | — | ||||||||||||||
Eliminations and other adjustmentsc | (73 | ) | 21 | (42 | ) | ||||||||||||
Total | $ | 558 | d | $ | 482 | d | $ | 80 | d |
a. | Includes point-of-sale transportation costs as negotiated in customer contracts. |
b. | Net of cobalt downstream processing and freight costs. |
c. | Reflects adjustments associated with reporting of Tenke as discontinued operations/assets held for sale, including the elimination of intercompany sales to FCX's consolidated subsidiaries and the impact of discontinuing DD&A. |
d. | Represents amounts included in net (loss) income from discontinued operations, as reported in FCX's consolidated financial statements (in millions): |
Revenues | $ | 558 | ||
Less: | ||||
Production and delivery costs | 482 | |||
DD&A | 80 | |||
Estimated loss on sale | 177 | |||
Allocated interest expense | 21 | |||
Benefit from income taxes | (23 | ) | ||
Other expense, net | 6 | |||
Net loss from discontinued operations | $ | (185 | ) |
FREEPORT-McMoRan INC. | |||||||||||||||||
PRODUCT REVENUES AND PRODUCTION COSTS (continued) | |||||||||||||||||
Africa Mining Product Revenues, Production Costs and Unit Net Cash Costs | |||||||||||||||||
Six Months Ended June 30, 2015 | |||||||||||||||||
(In millions) | By-Product | Co-Product Method | |||||||||||||||
Method | Copper | Cobalt | Total | ||||||||||||||
Revenues, excluding adjustmentsa | $ | 631 | $ | 631 | $ | 152 | $ | 783 | |||||||||
Site production and delivery, before net noncash | |||||||||||||||||
and other costs shown below | 370 | 325 | 92 | 417 | |||||||||||||
Cobalt creditsb | (104 | ) | — | — | — | ||||||||||||
Royalty on metals | 14 | 12 | 2 | 14 | |||||||||||||
Net cash costs | 280 | 337 | 94 | 431 | |||||||||||||
DD&A | 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 adjustmentsa | $ | 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 creditsb | (0.44 | ) | — | — | |||||||||||||
Royalty on metals | 0.06 | 0.05 | 0.15 | ||||||||||||||
Unit net cash costs | 1.18 | 1.42 | 5.69 | ||||||||||||||
DD&A | 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) | Production | ||||||||||||||||
Revenues | and Delivery | DD&A | |||||||||||||||
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 | ) | — | — | |||||||||||||
Eliminations and other adjustmentsc | (69 | ) | 5 | — | |||||||||||||
Total | $ | 692 | d | $ | 430 | d | $ | 130 | d |
a. | Includes point-of-sale transportation costs as negotiated in customer contracts. |
b. | Net of cobalt downstream processing and freight costs. |
c. | Reflects adjustments associated with the presentation of Tenke as discontinued operations, including the elimination of intercompany sales to FCX's consolidated subsidiaries. |
d. | Represents amounts included in net (loss) income from discontinued operations, as reported in FCX's consolidated financial statements (in millions): |
Revenues | $ | 692 | ||
Less: | ||||
Production and delivery costs | 430 | |||
DD&A | 130 | |||
Allocated interest expense | 14 | |||
Provision for income taxes | 31 | |||
Other expense, net | 17 | |||
Net income from discontinued operations | $ | 70 |
FREEPORT-McMoRan INC. | ||||||||||||
PRODUCT REVENUES AND PRODUCTION COSTS (continued) | ||||||||||||
Molybdenum Mines Product Revenues, Production Costs and Unit Net Cash Costs | ||||||||||||
Three Months Ended June 30, | ||||||||||||
(In millions) | 2016 | 2015 | ||||||||||
Revenues, excluding adjustmentsa | $ | 50 | $ | 112 | ||||||||
Site production and delivery, before net noncash | ||||||||||||
and other costs shown below | 45 | 80 | ||||||||||
Treatment charges and other | 5 | 10 | ||||||||||
Net cash costs | 50 | 90 | ||||||||||
DD&A | 17 | 25 | ||||||||||
Noncash and other costs, net | 5 | 4 | ||||||||||
Total costs | 72 | 119 | ||||||||||
Gross loss | $ | (22 | ) | $ | (7 | ) | ||||||
Molybdenum sales (millions of recoverable pounds)a | 7 | 13 | ||||||||||
Gross loss per pound of molybdenum: | ||||||||||||
Revenues, excluding adjustmentsa | $ | 7.87 | $ | 9.00 | ||||||||
Site production and delivery, before net noncash | ||||||||||||
and other costs shown below | 6.95 | 6.35 | ||||||||||
Treatment charges and other | 0.85 | 0.84 | ||||||||||
Unit net cash costs | 7.80 | 7.19 | ||||||||||
DD&A | 2.71 | 1.97 | ||||||||||
Noncash and other costs, net | 0.82 | 0.37 | ||||||||||
Total unit costs | 11.33 | 9.53 | ||||||||||
Gross loss per pound | $ | (3.46 | ) | $ | (0.53 | ) | ||||||
Reconciliation to Amounts Reported | ||||||||||||
(In millions) | ||||||||||||
Production | ||||||||||||
Three Months Ended June 30, 2016 | Revenues | and Delivery | DD&A | |||||||||
Totals presented above | $ | 50 | $ | 45 | $ | 17 | ||||||
Treatment charges and other | (5 | ) | — | — | ||||||||
Noncash and other costs, net | — | 5 | — | |||||||||
Molybdenum mines | 45 | 50 | 17 | |||||||||
Other mining & eliminationsb | 2,879 | 2,007 | 393 | |||||||||
Total mining | 2,924 | 2,057 | 410 | |||||||||
U.S. oil & gas operations | 410 | 889 | 218 | |||||||||
Corporate, other & eliminations | — | 10 | 4 | |||||||||
As reported in FCX’s consolidated financial statements | $ | 3,334 | $ | 2,956 | $ | 632 | ||||||
Three Months Ended June 30, 2015 | ||||||||||||
Totals presented above | $ | 112 | $ | 80 | $ | 25 | ||||||
Treatment charges and other | (10 | ) | — | — | ||||||||
Noncash and other costs, net | — | 4 | — | |||||||||
Molybdenum mines | 102 | 84 | 25 | |||||||||
Other mining & eliminationsb | 3,267 | 2,284 | 320 | |||||||||
Total mining | 3,369 | 2,368 | 345 | |||||||||
U.S. oil & gas operations | 569 | 281 | 485 | |||||||||
Corporate, other & eliminations | — | 2 | 3 | |||||||||
As reported in FCX’s consolidated financial statements | $ | 3,938 | $ | 2,651 | $ | 833 |
a. | Reflects sales of the Molybdenum mines' production to FCX's 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, FCX's consolidated average realized price per pound of molybdenum will differ from the amounts reported in this table. |
b. | Represents the combined total for all other mining operations and the related eliminations, as presented in the supplemental schedule, “Business Segments,” beginning on page XII. Also includes amounts associated with 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. |
FREEPORT-McMoRan INC. | |||||||||||||||
PRODUCT REVENUES AND PRODUCTION COSTS (continued) | |||||||||||||||
Molybdenum Mines Product Revenues, Production Costs and Unit Net Cash Costs | |||||||||||||||
Six Months Ended June 30, | |||||||||||||||
(In millions) | 2016 | 2015 | |||||||||||||
Revenues, excluding adjustmentsa | $ | 102 | $ | 236 | |||||||||||
Site production and delivery, before net noncash | |||||||||||||||
and other costs shown below | 92 | 161 | |||||||||||||
Treatment charges and other | 12 | 21 | |||||||||||||
Net cash costs | 104 | 182 | |||||||||||||
DD&A | 36 | 51 | |||||||||||||
Noncash and other costs, net | 10 | 6 | |||||||||||||
Total costs | 150 | 239 | |||||||||||||
Gross loss | $ | (48 | ) | $ | (3 | ) | |||||||||
Molybdenum sales (millions of recoverable pounds)a | 14 | 26 | |||||||||||||
Gross loss per pound of molybdenum: | |||||||||||||||
Revenues, excluding adjustmentsa | $ | 7.47 | $ | 9.34 | |||||||||||
Site production and delivery, before net noncash | |||||||||||||||
and other costs shown below | 6.76 | 6.34 | |||||||||||||
Treatment charges and other | 0.85 | 0.84 | |||||||||||||
Unit net cash costs | 7.61 | 7.18 | |||||||||||||
DD&A | 2.66 | 2.00 | |||||||||||||
Noncash and other costs, net | 0.69 | 0.25 | |||||||||||||
Total unit costs | 10.96 | 9.43 | |||||||||||||
Gross loss per pound | $ | (3.49 | ) | $ | (0.09 | ) | |||||||||
Reconciliation to Amounts Reported | |||||||||||||||
(In millions) | |||||||||||||||
Production | |||||||||||||||
Six Months Ended June 30, 2016 | Revenues | and Delivery | DD&A | ||||||||||||
Totals presented above | $ | 102 | $ | 92 | $ | 36 | |||||||||
Treatment charges and other | (12 | ) | — | — | |||||||||||
Noncash and other costs, net | — | 10 | — | ||||||||||||
Molybdenum mines | 90 | 102 | 36 | ||||||||||||
Other mining & eliminationsb | 5,781 | 4,044 | 778 | ||||||||||||
Total mining | 5,871 | 4,146 | 814 | ||||||||||||
U.S. oil & gas operations | 705 | 1,296 | 473 | ||||||||||||
Corporate, other & eliminations | — | 13 | 7 | ||||||||||||
As reported in FCX’s consolidated financial statements | $ | 6,576 | $ | 5,455 | $ | 1,294 | |||||||||
Six Months Ended June 30, 2015 | |||||||||||||||
Totals presented above | $ | 236 | $ | 161 | $ | 51 | |||||||||
Treatment charges and other | (21 | ) | — | — | |||||||||||
Noncash and other costs, net | — | 6 | — | ||||||||||||
Molybdenum mines | 215 | 167 | 51 | ||||||||||||
Other mining & eliminationsb | 6,425 | 4,594 | 626 | ||||||||||||
Total mining | 6,640 | 4,761 | 677 | ||||||||||||
U.S. oil & gas operations | 1,069 | 564 | 1,015 | ||||||||||||
Corporate, other & eliminations | — | 5 | 7 | ||||||||||||
As reported in FCX’s consolidated financial statements | $ | 7,709 | $ | 5,330 | $ | 1,699 |
a. | Reflects sales of the Molybdenum mines' production to FCX's 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, FCX's consolidated average realized price per pound of molybdenum will differ from the amounts reported in this table. |
b. | Represents the combined total for all other mining operations and the related eliminations, as presented in the supplemental schedule, “Business Segments,” beginning on page XII. Also includes amounts associated with 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. |
FREEPORT-McMoRan INC. | ||||||||||||||||||||
PRODUCT REVENUES AND PRODUCTION COSTS (continued) | ||||||||||||||||||||
U.S. Oil & Gas Product Revenues, Cash Production Costs and Realizations | ||||||||||||||||||||
Three Months Ended June 30, 2016 | ||||||||||||||||||||
(In millions) | ||||||||||||||||||||
Natural | ||||||||||||||||||||
Oil | Gas | NGLs | Total | |||||||||||||||||
Oil and gas revenues | $ | 356 | $ | 39 | $ | 10 | $ | 405 | a | |||||||||||
Cash production costs | (186 | ) | a | |||||||||||||||||
Cash operating margin | 219 | |||||||||||||||||||
DD&A | (218 | ) | ||||||||||||||||||
Impairment of oil and gas properties | (290 | ) | ||||||||||||||||||
Accretion and other costs | (703 | ) | b | |||||||||||||||||
Other revenue | 5 | |||||||||||||||||||
Gross loss | $ | (987 | ) | |||||||||||||||||
Oil (MMBbls) | 8.7 | |||||||||||||||||||
Gas (Bcf) | 18.8 | |||||||||||||||||||
NGLs (MMBbls) | 0.6 | |||||||||||||||||||
Oil Equivalents (MMBOE) | 12.4 | |||||||||||||||||||
Oil | Natural Gas | NGLs | ||||||||||||||||||
(per barrel) | (per MMBtu) | (per barrel) | Per BOE | |||||||||||||||||
Oil and gas revenues | $ | 41.10 | $ | 2.04 | $ | 18.00 | $ | 32.70 | a | |||||||||||
Cash production costs | (15.00 | ) | a | |||||||||||||||||
Cash operating margin | 17.70 | |||||||||||||||||||
DD&A | (17.61 | ) | ||||||||||||||||||
Impairment of oil and gas properties | (23.46 | ) | ||||||||||||||||||
Accretion and other costs | (56.76 | ) | b | |||||||||||||||||
Other revenue | 0.42 | |||||||||||||||||||
Gross loss | $ | (79.71 | ) | |||||||||||||||||
Reconciliation to Amounts Reported | ||||||||||||||||||||
(In millions) | Revenues | Production and Delivery | DD&A | Impairment of Oil and Gas Properties | ||||||||||||||||
Totals presented above | $ | 405 | $ | 186 | $ | 218 | $ | 290 | ||||||||||||
Accretion and other costs | — | 703 | — | — | ||||||||||||||||
Other revenue | 5 | — | — | — | ||||||||||||||||
U.S. oil & gas operations | 410 | 889 | 218 | 290 | ||||||||||||||||
Total miningc | 2,924 | 2,057 | 410 | — | ||||||||||||||||
Corporate, other & eliminations | — | 10 | 4 | 1 | ||||||||||||||||
As reported in FCX's consolidated financial statements | $ | 3,334 | $ | 2,956 | $ | 632 | $ | 291 | ||||||||||||
a. Following is a summary of revenue, average realized price and cash production costs by region: | ||||||||||||||||||||
MBOE | Revenues (in millions) | Average Realized Price per BOE | Cash Production Costs (in millions) | Cash Production Costs per BOE | ||||||||||||||||
Gulf of Mexico (GOM) | 8,019 | $ | 281 | $ | 35.02 | $ | 100 | $ | 12.43 | |||||||||||
California | 2,890 | 106 | 36.70 | 68 | 23.62 | |||||||||||||||
Haynesville/Madden/Other | 1,473 | 18 | 12.09 | 18 | 12.07 | |||||||||||||||
12,382 | $ | 405 | 32.70 | $ | 186 | 15.00 | ||||||||||||||
FREEPORT-McMoRan INC. | ||||||||||||||||||||
PRODUCT REVENUES AND PRODUCTION COSTS (continued) | ||||||||||||||||||||
U.S. Oil & Gas Product Revenues, Cash Production Costs and Realizations | ||||||||||||||||||||
Three Months Ended June 30, 2015 | ||||||||||||||||||||
(In millions) | ||||||||||||||||||||
Natural | ||||||||||||||||||||
Oil | Gas | NGLs | Total | |||||||||||||||||
Oil and gas revenues before derivatives | $ | 480 | $ | 63 | $ | 12 | $ | 555 | a | |||||||||||
Cash gains on derivative contracts | 101 | — | — | 101 | ||||||||||||||||
Realized revenues | $ | 581 | $ | 63 | $ | 12 | 656 | |||||||||||||
Cash production costs | (249 | ) | a | |||||||||||||||||
Cash operating margin | 407 | |||||||||||||||||||
DD&A | (485 | ) | ||||||||||||||||||
Impairment of oil and gas properties | (2,686 | ) | ||||||||||||||||||
Accretion and other costs | (32 | ) | b | |||||||||||||||||
Net noncash mark-to-market losses on derivative contracts | (95 | ) | ||||||||||||||||||
Other revenue | 8 | |||||||||||||||||||
Gross loss | $ | (2,883 | ) | |||||||||||||||||
Oil (MMBbls) | 8.6 | |||||||||||||||||||
Gas (Bcf) | 23.5 | |||||||||||||||||||
NGLs (MMBbls) | 0.6 | |||||||||||||||||||
Oil Equivalents (MMBOE) | 13.1 | |||||||||||||||||||
Oil | Natural Gas | NGLs | ||||||||||||||||||
(per barrel) | (per MMBtu) | (per barrel) | Per BOE | |||||||||||||||||
Oil and gas revenues before derivatives | $ | 55.82 | $ | 2.66 | $ | 20.50 | $ | 42.31 | a | |||||||||||
Cash gains on derivative contracts | 11.79 | — | — | 7.73 | ||||||||||||||||
Realized revenues | $ | 67.61 | $ | 2.66 | $ | 20.50 | 50.04 | |||||||||||||
Cash production costs | (19.04 | ) | a | |||||||||||||||||
Cash operating margin | 31.00 | |||||||||||||||||||
DD&A | (36.99 | ) | ||||||||||||||||||
Impairment of oil and gas properties | (204.91 | ) | ||||||||||||||||||
Accretion and other costs | (2.46 | ) | b | |||||||||||||||||
Net noncash mark-to-market losses on derivative contracts | (7.26 | ) | ||||||||||||||||||
Other revenue | 0.61 | |||||||||||||||||||
Gross loss | $ | (220.01 | ) | |||||||||||||||||
Reconciliation to Amounts Reported | ||||||||||||||||||||
(In millions) | Revenues | Production and Delivery | DD&A | Impairment of Oil and Gas Properties | ||||||||||||||||
Totals presented above | $ | 555 | $ | 249 | $ | 485 | $ | 2,686 | ||||||||||||
Cash gains on derivative contracts | 101 | — | — | — | ||||||||||||||||
Net noncash mark-to-market losses on derivative contracts | (95 | ) | — | — | — | |||||||||||||||
Accretion and other costs | — | 32 | — | — | ||||||||||||||||
Other revenue | 8 | — | — | — | ||||||||||||||||
U.S. oil & gas operations | 569 | 281 | 485 | 2,686 | ||||||||||||||||
Total miningc | 3,369 | 2,368 | 345 | — | ||||||||||||||||
Corporate, other & eliminations | — | 2 | 3 | — | ||||||||||||||||
As reported in FCX's consolidated financial statements | $ | 3,938 | $ | 2,651 | $ | 833 | $ | 2,686 | ||||||||||||
a. Following is a summary of revenue, average realized price (before derivatives) and cash production costs by region: | ||||||||||||||||||||
MBOE | Revenues (in millions) | Average Realized Price per BOE | Cash Production Costs (in millions) | Cash Production Costs per BOE | ||||||||||||||||
GOM | 7,309 | $ | 350 | $ | 47.82 | $ | 124 | $ | 16.98 | |||||||||||
California | 3,462 | 167 | 48.30 | 94 | 27.13 | |||||||||||||||
Haynesville/Madden/Other | 2,336 | 38 | 16.15 | 31 | 13.55 | |||||||||||||||
13,107 | $ | 555 | 42.31 | $ | 249 | 19.04 | ||||||||||||||
FREEPORT-McMoRan INC. | ||||||||||||||||||||
PRODUCT REVENUES AND PRODUCTION COSTS (continued) | ||||||||||||||||||||
U.S. Oil & Gas Product Revenues, Cash Production Costs and Realizations | ||||||||||||||||||||
Six Months Ended June 30, 2016 | ||||||||||||||||||||
(In millions) | ||||||||||||||||||||
Natural | ||||||||||||||||||||
Oil | Gas | NGLs | Total | |||||||||||||||||
Oil and gas revenues | $ | 597 | $ | 78 | $ | 19 | $ | 694 | a | |||||||||||
Cash production costs | (378 | ) | a | |||||||||||||||||
Cash operating margin | 316 | |||||||||||||||||||
DD&A | (473 | ) | ||||||||||||||||||
Impairment of oil and gas properties | (4,061 | ) | ||||||||||||||||||
Accretion and other costs | (918 | ) | b | |||||||||||||||||
Other revenue | 11 | |||||||||||||||||||
Gross loss | $ | (5,125 | ) | |||||||||||||||||
Oil (MMBbls) | 17.0 | |||||||||||||||||||
Gas (Bcf) | 38.4 | |||||||||||||||||||
NGLs (MMBbls) | 1.2 | |||||||||||||||||||
Oil Equivalents (MMBOE) | 24.5 | |||||||||||||||||||
Oil | Natural Gas | NGLs | ||||||||||||||||||
(per barrel) | (per MMBtu) | (per barrel) | Per BOE | |||||||||||||||||
Oil and gas revenues | $ | 35.21 | $ | 2.02 | $ | 16.44 | $ | 28.29 | a | |||||||||||
Cash production costs | (15.42 | ) | a | |||||||||||||||||
Cash operating margin | 12.87 | |||||||||||||||||||
DD&A | (19.27 | ) | ||||||||||||||||||
Impairment of oil and gas properties | (165.56 | ) | ||||||||||||||||||
Accretion and other costs | (37.41 | ) | b | |||||||||||||||||
Other revenue | 0.45 | |||||||||||||||||||
Gross loss | $ | (208.92 | ) | |||||||||||||||||
Reconciliation to Amounts Reported | ||||||||||||||||||||
(In millions) | Revenues | Production and Delivery | DD&A | Impairment of Oil and Gas Properties | ||||||||||||||||
Totals presented above | $ | 694 | $ | 378 | $ | 473 | $ | 4,061 | ||||||||||||
Accretion and other costs | — | 918 | — | — | ||||||||||||||||
Other revenue | 11 | — | — | — | ||||||||||||||||
U.S. oil & gas operations | 705 | 1,296 | 473 | 4,061 | ||||||||||||||||
Total miningc | 5,871 | 4,146 | 814 | — | ||||||||||||||||
Corporate, other & eliminations | — | 13 | 7 | 17 | ||||||||||||||||
As reported in FCX's consolidated financial statements | $ | 6,576 | $ | 5,455 | $ | 1,294 | $ | 4,078 | ||||||||||||
a. Following is a summary of average realized price and cash production costs per BOE by region. | ||||||||||||||||||||
MBOE | Revenues (in millions) | Average Realized Price per BOE | Cash Production Costs (in millions) | Cash Production Costs per BOE | ||||||||||||||||
GOM | 15,401 | $ | 471 | $ | 30.55 | $ | 189 | $ | 12.26 | |||||||||||
California | 5,887 | 184 | 31.24 | 153 | 25.98 | |||||||||||||||
Haynesville/Madden/Other | 3,240 | 39 | 12.18 | 36 | 11.21 | |||||||||||||||
24,528 | $ | 694 | 28.29 | $ | 378 | 15.42 | ||||||||||||||
FREEPORT-McMoRan INC. | ||||||||||||||||||||
PRODUCT REVENUES AND PRODUCTION COSTS (continued) | ||||||||||||||||||||
U.S. Oil & Gas Product Revenues, Cash Production Costs and Realizations | ||||||||||||||||||||
Six Months Ended June 30, 2015 | ||||||||||||||||||||
Natural | ||||||||||||||||||||
(In millions) | Oil | Gas | NGLs | Total | ||||||||||||||||
Oil and gas revenues before derivatives | $ | 853 | $ | 125 | $ | 24 | $ | 1,002 | a | |||||||||||
Cash gains on derivative contracts | 201 | — | — | 201 | ||||||||||||||||
Realized revenues | $ | 1,054 | $ | 125 | $ | 24 | 1,203 | |||||||||||||
Cash production costs | (503 | ) | a | |||||||||||||||||
Cash operating margin | 700 | |||||||||||||||||||
DD&A | (1,015 | ) | ||||||||||||||||||
Impairment of oil and gas properties | (5,790 | ) | ||||||||||||||||||
Accretion and other costs | (61 | ) | b | |||||||||||||||||
Net noncash mark-to-market losses on derivative contracts | (143 | ) | ||||||||||||||||||
Other revenue | 9 | |||||||||||||||||||
Gross loss | $ | (6,300 | ) | |||||||||||||||||
Oil (MMBbls) | 17.0 | |||||||||||||||||||
Gas (Bcf) | 45.3 | |||||||||||||||||||
NGLs (MMBbls) | 1.1 | |||||||||||||||||||
Oil Equivalents (MMBOE) | 25.6 | |||||||||||||||||||
Oil | Natural Gas | NGLs | ||||||||||||||||||
(per barrel) | (per MMbtu) | (per barrel) | Per BOE | |||||||||||||||||
Oil and gas revenues before derivatives | $ | 50.25 | $ | 2.75 | $ | 21.71 | $ | 39.08 | a | |||||||||||
Cash gains on derivative contracts | 11.88 | — | — | 7.87 | ||||||||||||||||
Realized revenues | $ | 62.13 | $ | 2.75 | $ | 21.71 | 46.95 | |||||||||||||
Cash production costs | (19.62 | ) | a | |||||||||||||||||
Cash operating margin | 27.33 | |||||||||||||||||||
DD&A | (39.59 | ) | ||||||||||||||||||
Impairment of oil and gas properties | (225.89 | ) | ||||||||||||||||||
Accretion and other costs | (2.39 | ) | b | |||||||||||||||||
Net noncash mark-to-market losses on derivative contracts | (5.60 | ) | ||||||||||||||||||
Other revenue | 0.34 | |||||||||||||||||||
Gross loss | $ | (245.80 | ) | |||||||||||||||||
Reconciliation to Amounts Reported | ||||||||||||||||||||
(In millions) | Revenues | Production and Delivery | DD&A | Impairment of Oil and Gas Properties | ||||||||||||||||
Totals presented above | $ | 1,002 | $ | 503 | $ | 1,015 | $ | 5,790 | ||||||||||||
Cash gains on derivative contracts | 201 | — | — | — | ||||||||||||||||
Net noncash mark-to-market losses on derivative contracts | (143 | ) | — | — | — | |||||||||||||||
Accretion and other costs | — | 61 | — | — | ||||||||||||||||
Other revenue | 9 | — | — | — | ||||||||||||||||
U.S. oil & gas operations | 1,069 | 564 | 1,015 | 5,790 | ||||||||||||||||
Total miningc | 6,640 | 4,761 | 677 | — | ||||||||||||||||
Corporate, other & eliminations | — | 5 | 7 | — | ||||||||||||||||
As reported in FCX's consolidated financial statements | $ | 7,709 | $ | 5,330 | $ | 1,699 | $ | 5,790 | ||||||||||||
a. Following is a summary of average realized price and cash production costs per BOE by region: | ||||||||||||||||||||
MBOE | Revenues (in millions) | Average Realized Price per BOE | Cash Production Costs (in millions) | Cash Production Costs per BOE | ||||||||||||||||
GOM | 13,970 | $ | 621 | $ | 44.40 | $ | 240 | $ | 17.17 | |||||||||||
California | 6,975 | 303 | 43.49 | 205 | 29.43 | |||||||||||||||
Haynesville/Madden/Other | 4,686 | 78 | 16.66 | 58 | 12.42 | |||||||||||||||
$ | 25,631 | $ | 1,002 | 39.08 | $ | 503 | 19.62 | |||||||||||||
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