GUARANTOR FINANCIAL STATEMENTS

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

The following condensed consolidating financial information includes information regarding FCX, as issuer, FM O&G LLC, as guarantor, and all other non-guarantor subsidiaries of FCX. Included are the condensed consolidating balance sheets at June 30, 2018, and December 31, 2017, and the related condensed consolidating statements of comprehensive income (loss) for the three and six months ended June 30, 2018 and 2017, and the condensed consolidating statements of cash flows for the six months ended June 30, 2018 and 2017 (in millions), which should be read in conjunction with FCX’s notes to the consolidated financial statements.

CONDENSED CONSOLIDATING BALANCE SHEET

June 30, 2018



	FCX			FM O&G LLC			Non-guarantor					Consolidated
	Issuer			Guarantor			Subsidiaries		Eliminations			FCX
ASSETS
Current assets	$	619		$	783		$	10,220	$	(1,279	)	$	10,343
Property, plant, equipment and mine development costs, net	19			4			22,900		—			22,923
Investments in consolidated subsidiaries	19,003			—			—		(19,003		)	—
Other assets	547			53			3,239		(77		)	3,762
Total assets	$	20,188		$	840		$	36,359	$	(20,359	)	$	37,028

LIABILITIES AND EQUITY
Current liabilities	$	237		$	120		$	4,837	$	(1,395	)	$	3,799
Long-term debt, less current portion	9,594			6,686			5,054		(10,211		)	11,123
Deferred income taxes	727		^a	—			2,975		—			3,702
Environmental and asset retirement obligations, less current portion	—			206			3,425		—			3,631
Investments in consolidated subsidiaries	—			857			10,368		(11,225		)	—
Other liabilities	156			3,339			1,922		(3,486		)	1,931
Total liabilities	10,714			11,208			28,581		(26,317		)	24,186

Equity:
Stockholders’ equity	9,474			(10,368		)	4,985		5,383			9,474
Noncontrolling interests	—			—			2,793		575			3,368
Total equity	9,474			(10,368		)	7,778		5,958			12,842
Total liabilities and equity	$	20,188		$	840		$	36,359	$	(20,359	)	$	37,028


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

CONDENSED CONSOLIDATING BALANCE SHEET

December 31, 2017



	FCX			FM O&G LLC			Non-guarantor					Consolidated
	Issuer			Guarantor			Subsidiaries		Eliminations			FCX
ASSETS
Current assets	$	75		$	671		$	10,733	$	(790	)	$	10,689
Property, plant, equipment and mine development costs, net	14			11			22,919		(10		)	22,934
Investments in consolidated subsidiaries	19,570			—			—		(19,570		)	—
Other assets	943			48			3,179		(491		)	3,679
Total assets	$	20,602		$	730		$	36,831	$	(20,861	)	$	37,302

LIABILITIES AND EQUITY
Current liabilities	$	1,683		$	220		$	4,046	$	(938	)	$	5,011
Long-term debt, less current portion	10,021			6,512			5,440		(10,270		)	11,703
Deferred income taxes	748		^a	—			2,901		—			3,649
Environmental and asset retirement obligations, less current portion	—			201			3,430		—			3,631
Investments in consolidated subsidiary	—			853			10,397		(11,250		)	—
Other liabilities	173			3,340			1,987		(3,488		)	2,012
Total liabilities	12,625			11,126			28,201		(25,946		)	26,006

Equity:
Stockholders’ equity	7,977			(10,396		)	5,916		4,480			7,977
Noncontrolling interests	—			—			2,714		605			3,319
Total equity	7,977			(10,396		)	8,630		5,085			11,296
Total liabilities and equity	$	20,602		$	730		$	36,831	$	(20,861	)	$	37,302


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

CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (LOSS)




Three Months Ended June 30, 2018
	FCX			FM O&G LLC			Non-guarantor						Consolidated
	Issuer			Guarantor			Subsidiaries			Eliminations			FCX
Revenues	$	—		$	16		$	5,152		$	—		$	5,168
Total costs and expenses	4			(16		)	3,525			(9		)	3,504
Operating (loss) income	(4		)	32			1,627			9			1,664
Interest expense, net	(97		)	(76		)	(92		)	123			(142		)
Other income (expense), net	132			2			18			(123		)	29
Income (loss) before income taxes and equity in affiliated companies’ net earnings (losses)	31			(42		)	1,553			9			1,551
(Provision for) benefit from income taxes	(11		)	10			(512		)	(2		)	(515		)
Equity in affiliated companies’ net earnings (losses)	849			2			(45		)	(803		)	3
Net income (loss) from continuing operations	869			(30		)	996			(796		)	1,039
Net loss from discontinued operations	—			—			(4		)	—			(4		)
Net income (loss)	869			(30		)	992			(796		)	1,035
Net income attributable to noncontrolling interests:
Continuing operations	—			—			(102		)	(64		)	(166		)
Net income (loss) attributable to common stockholders	$	869		$	(30	)	$	890		$	(860	)	$	869

Other comprehensive income (loss)	11			—			11			(11		)	11
Total comprehensive income (loss)	$	880		$	(30	)	$	901		$	(871	)	$	880




Three Months Ended June 30, 2017
	FCX			FM O&G LLC			Non-guarantor						Consolidated
	Issuer			Guarantor			Subsidiaries			Eliminations			FCX
Revenues	$	—		$	12		$	3,699		$	—		$	3,711
Total costs and expenses	14			11			2,990			10			3,025
Operating (loss) income	(14		)	1			709			(10		)	686
Interest expense, net	(117		)	(55		)	(74		)	84			(162		)
Other income (expense), net	80			—			(7		)	(84		)	(11		)
(Loss) income before income taxes and equity in affiliated companies’ net earnings (losses)	(51		)	(54		)	628			(10		)	513
(Provision for) benefit from income taxes	(72		)	19			(136		)	3			(186		)
Equity in affiliated companies’ net earnings (losses)	391			(26		)	(62		)	(304		)	(1		)
Net income (loss) from continuing operations	268			(61		)	430			(311		)	326
Net income from discontinued operations	—			—			9			—			9
Net income (loss)	268			(61		)	439			(311		)	335
Net income attributable to noncontrolling interests:
Continuing operations	—			—			(46		)	(20		)	(66		)
Discontinued operations	—			—			(1		)	—			(1		)
Net income (loss) attributable to common stockholders	$	268		$	(61	)	$	392		$	(331	)	$	268

Other comprehensive income (loss)	81			—			81			(81		)	81
Total comprehensive income (loss)	$	349		$	(61	)	$	473		$	(412	)	$	349

CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (LOSS)



Six Months Ended June 30, 2018
	FCX			FM O&G LLC			Non-guarantor						Consolidated
	Issuer			Guarantor			Subsidiaries			Eliminations			FCX
Revenues	$	—		$	31		$	10,005		$	—		$	10,036
Total costs and expenses	13			(8		)	6,918			(10		)	6,913
Operating (loss) income	(13		)	39			3,087			10			3,123
Interest expense, net	(201		)	(140		)	(177		)	225			(293		)
Other income (expense), net	233			2			47			(225		)	57
Income (loss) before income taxes and equity in affiliated companies’ net earnings (losses)	19			(99		)	2,957			10			2,887
(Provision for) benefit from income taxes	(94		)	22			(947		)	(2		)	(1,021		)
Equity in affiliated companies’ net earnings (losses)	1,636			(4		)	(79		)	(1,552		)	1
Net income (loss) from continuing operations	1,561			(81		)	1,931			(1,544		)	1,867
Net loss from discontinued operations	—			—			(15		)	—			(15		)
Net income (loss)	1,561			(81		)	1,916			(1,544		)	1,852
Net income attributable to noncontrolling interests:
Continuing operations	—			—			(173		)	(118		)	(291		)
Net income (loss) attributable to common stockholders	$	1,561		$	(81	)	$	1,743		$	(1,662	)	$	1,561

Other comprehensive income (loss)	23			—			23			(23		)	23
Total comprehensive income (loss)	$	1,584		$	(81	)	$	1,766		$	(1,685	)	$	1,584



Six Months Ended June 30, 2017
	FCX			FM O&G LLC			Non-guarantor						Consolidated
	Issuer			Guarantor			Subsidiaries			Eliminations			FCX
Revenues	$	—		$	25		$	7,027		$	—		$	7,052
Total costs and expenses	22			61			5,674			12			5,769
Operating (loss) income	(22		)	(36		)	1,353			(12		)	1,283
Interest expense, net	(239		)	(108		)	(145		)	163			(329		)
Other income (expense), net	158			—			2			(163		)	(3		)
(Loss) income before income taxes and equity in affiliated companies’ net earnings (losses)	(103		)	(144		)	1,210			(12		)	951
(Provision for) benefit from income taxes	(132		)	50			(282		)	4			(360		)
Equity in affiliated companies’ net earnings (losses)	731			(6		)	(98		)	(624		)	3
Net income (loss) from continuing operations	496			(100		)	830			(632		)	594
Net income from discontinued operations	—			—			47			—			47
Net income (loss)	496			(100		)	877			(632		)	641
Net income attributable to noncontrolling interests:
Continuing operations	—			—			(111		)	(30		)	(141		)
Discontinued operations	—			—			(4		)	—			(4		)
Net income (loss) attributable to common stockholders	$	496		$	(100	)	$	762		$	(662	)	$	496

Other comprehensive income (loss)	92			—			92			(92		)	92
Total comprehensive income (loss)	$	588		$	(100	)	$	854		$	(754	)	$	588

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS



Six Months Ended June 30, 2018
	FCX			FM O&G LLC			Non-guarantor						Consolidated
	Issuer			Guarantor			Subsidiaries			Eliminations			FCX
Net cash (used in) provided by operating activities	$	(163	)	$	(184	)	$	3,025		$	—		$	2,678

Cash flow from investing activities:
Capital expenditures	(2		)	—			(882		)	—			(884		)
Intercompany loans	(442		)	—			—			442			—
Dividends from (investments in) consolidated subsidiaries	2,519			—			45			(2,564		)	—
Asset sales and other, net	4			1			(91		)	—			(86		)
Net cash provided by (used in) investing activities	2,079			1			(928		)	(2,122		)	(970		)

Cash flow from financing activities:
Proceeds from debt	—			—			352			—			352
Repayments of debt	(1,826		)	(52		)	(419		)	—			(2,297		)
Intercompany loans	—			228			214			(442		)	—
Cash dividends paid and contributions received, net	(73		)	—			(2,789		)	2,548			(314		)
Other, net	(17		)	—			(17		)	16			(18		)
Net cash (used in) provided by financing activities	(1,916		)	176			(2,659		)	2,122			(2,277		)

Net decrease in cash, cash equivalents, restricted cash and restricted cash equivalents	—			(7		)	(562		)	—			(569		)
Decrease in cash and cash equivalents in assets held for sale	—			—			44			—			44
Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of year	—			7			4,624			—			4,631
Cash, cash equivalents, restricted cash and restricted cash equivalents at end of period	$	—		$	—		$	4,106		$	—		$	4,106



Six Months Ended June 30, 2017
	FCX			FM O&G LLC			Non-guarantor						Consolidated
	Issuer			Guarantor			Subsidiaries			Eliminations			FCX
Net cash (used in) provided by operating activities	$	(96	)	$	(284	)	$	2,209		$	—		$	1,829

Cash flow from investing activities:
Capital expenditures	—			(23		)	(683		)	—			(706		)
Intercompany loans	(427		)	—			—			427			—
Dividends from (investments in) consolidated subsidiaries	1,032			(16		)	62			(1,078		)	—
Asset sales and other, net	—			(5		)	8			—			3
Net cash provided by (used in) investing activities	605			(44		)	(613		)	(651		)	(703		)

Cash flow from financing activities:
Proceeds from debt	—			—			606			—			606
Repayments of debt	(499		)	—			(751		)	—			(1,250		)
Intercompany loans	—			337			90			(427		)	—
Cash dividends paid and contributions received, net	(2		)	—			(1,064		)	1,025			(41		)
Other, net	(8		)	(9		)	(55		)	53			(19		)
Net cash (used in) provided by financing activities	(509		)	328			(1,174		)	651			(704		)

Net increase in cash, cash equivalents, restricted cash and restricted cash equivalents	—			—			422			—			422
Decrease in cash and cash equivalents in assets held for sale	—			—			7			—			7
Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of year	—			11			4,392			—			4,403
Cash, cash equivalents, restricted cash and restricted cash equivalents at end of period	$	—		$	11		$	4,821		$	—		$	4,832