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 September 30, 2018, and December 31, 2017, and the related condensed consolidating statements of comprehensive income (loss) for the three and nine months ended September 30, 2018 and 2017, and the condensed consolidating statements of cash flows for the nine months ended September 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

September 30, 2018



	FCX			FM O&G LLC			Non-guarantor					Consolidated
	Issuer			Guarantor			Subsidiaries		Eliminations			FCX
ASSETS
Current assets	$	549		$	577		$	10,817	$	(1,022	)	$	10,921
Property, plant, equipment and mine development costs, net	19			3			22,991		—			23,013
Investments in consolidated subsidiaries	19,681			—			—		(19,681		)	—
Other assets	546			67			3,279		(77		)	3,815
Total assets	$	20,795		$	647		$	37,087	$	(20,780	)	$	37,749

LIABILITIES AND EQUITY
Current liabilities	$	246		$	137		$	4,614	$	(1,146	)	$	3,851
Long-term debt, less current portion	9,594			6,784			5,095		(10,350		)	11,123
Deferred income taxes	820		^a	—			3,019		—			3,839
Environmental and asset retirement obligations, less current portion	—			209			3,355		—			3,564
Investments in consolidated subsidiaries	—			601			10,424		(11,025		)	—
Other liabilities	158			3,340			1,907		(3,487		)	1,918
Total liabilities	10,818			11,071			28,414		(26,008		)	24,295

Equity:
Stockholders’ equity	9,977			(10,424		)	5,832		4,592			9,977
Noncontrolling interests	—			—			2,841		636			3,477
Total equity	9,977			(10,424		)	8,673		5,228			13,454
Total liabilities and equity	$	20,795		$	647		$	37,087	$	(20,780	)	$	37,749


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 September 30, 2018
	FCX			FM O&G LLC			Non-guarantor						Consolidated
	Issuer			Guarantor			Subsidiaries			Eliminations			FCX
Revenues	$	—		$	15		$	4,893		$	—		$	4,908
Total costs and expenses	7			(2		)	3,588			—			3,593
Operating (loss) income	(7		)	17			1,305			—			1,315
Interest expense, net	(93		)	(79		)	(96		)	125			(143		)
Other income (expense), net	124			—			15			(125		)	14
Income (loss) before income taxes and equity in affiliated companies’ net earnings (losses)	24			(62		)	1,224			—			1,186
(Provision for) benefit from income taxes	(188		)	11			(345		)	—			(522		)
Equity in affiliated companies’ net earnings (losses)	720			(6		)	(54		)	(656		)	4
Net income (loss) from continuing operations	556			(57		)	825			(656		)	668
Net loss from discontinued operations	—			—			(4		)	—			(4		)
Net income (loss)	556			(57		)	821			(656		)	664
Net income attributable to noncontrolling interests	—			—			(47		)	(61		)	(108		)
Net income (loss) attributable to common stockholders	$	556		$	(57	)	$	774		$	(717	)	$	556

Other comprehensive income (loss)	11			—			11			(11		)	11
Total comprehensive income (loss)	$	567		$	(57	)	$	785		$	(728	)	$	567




Three Months Ended September 30, 2017
	FCX			FM O&G LLC			Non-guarantor						Consolidated
	Issuer			Guarantor			Subsidiaries			Eliminations			FCX
Revenues	$	—		$	13		$	4,297		$	—		$	4,310
Total costs and expenses	8			25			3,350			(1		)	3,382
Operating (loss) income	(8		)	(12		)	947			1			928
Interest expense, net	(116		)	(59		)	(218		)	89			(304		)
Other income (expense), net	97			3			(9		)	(89		)	2
(Loss) income before income taxes and equity in affiliated companies’ net earnings (losses)	(27		)	(68		)	720			1			626
Benefit from (provision for) income taxes	21			24			(432		)	—			(387		)
Equity in affiliated companies’ net earnings (losses)	286			20			(20		)	(283		)	3
Net income (loss) from continuing operations	280			(24		)	268			(282		)	242
Net income from discontinued operations	—			—			3			—			3
Net income (loss)	280			(24		)	271			(282		)	245
Net loss (income) attributable to noncontrolling interests	—			—			69			(34		)	35
Net income (loss) attributable to common stockholders	$	280		$	(24	)	$	340		$	(316	)	$	280

Other comprehensive income (loss)	13			—			13			(13		)	13
Total comprehensive income (loss)	$	293		$	(24	)	$	353		$	(329	)	$	293

CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (LOSS)



Nine Months Ended September 30, 2018
	FCX			FM O&G LLC			Non-guarantor						Consolidated
	Issuer			Guarantor			Subsidiaries			Eliminations			FCX
Revenues	$	—		$	46		$	14,898		$	—		$	14,944
Total costs and expenses	20			(10		)	10,506			(10		)	10,506
Operating (loss) income	(20		)	56			4,392			10			4,438
Interest expense, net	(294		)	(219		)	(273		)	350			(436		)
Other income (expense), net	357			2			62			(350		)	71
Income (loss) before income taxes and equity in affiliated companies’ net earnings (losses)	43			(161		)	4,181			10			4,073
(Provision for) benefit from income taxes	(282		)	33			(1,292		)	(2		)	(1,543		)
Equity in affiliated companies’ net earnings (losses)	2,356			(10		)	(133		)	(2,208		)	5
Net income (loss) from continuing operations	2,117			(138		)	2,756			(2,200		)	2,535
Net loss from discontinued operations	—			—			(19		)	—			(19		)
Net income (loss)	2,117			(138		)	2,737			(2,200		)	2,516
Net income attributable to noncontrolling interests	—			—			(220		)	(179		)	(399		)
Net income (loss) attributable to common stockholders	$	2,117		$	(138	)	$	2,517		$	(2,379	)	$	2,117

Other comprehensive income (loss)	34			—			34			(34		)	34
Total comprehensive income (loss)	$	2,151		$	(138	)	$	2,551		$	(2,413	)	$	2,151



Nine Months Ended September 30, 2017
	FCX			FM O&G LLC			Non-guarantor						Consolidated
	Issuer			Guarantor			Subsidiaries			Eliminations			FCX
Revenues	$	—		$	38		$	11,324		$	—		$	11,362
Total costs and expenses	30			86			9,024			11			9,151
Operating (loss) income	(30		)	(48		)	2,300			(11		)	2,211
Interest expense, net	(355		)	(167		)	(363		)	252			(633		)
Other income (expense), net	255			3			(7		)	(252		)	(1		)
(Loss) income before income taxes and equity in affiliated companies’ net earnings (losses)	(130		)	(212		)	1,930			(11		)	1,577
(Provision for) benefit from income taxes	(111		)	74			(714		)	4			(747		)
Equity in affiliated companies’ net earnings (losses)	1,017			14			(118		)	(907		)	6
Net income (loss) from continuing operations	776			(124		)	1,098			(914		)	836
Net income from discontinued operations	—			—			50			—			50
Net income (loss)	776			(124		)	1,148			(914		)	886
Net income attributable to noncontrolling interests:
Continuing operations	—			—			(42		)	(64		)	(106		)
Discontinued operations	—			—			(4		)	—			(4		)
Net income (loss) attributable to common stockholders	$	776		$	(124	)	$	1,102		$	(978	)	$	776

Other comprehensive income (loss)	105			—			105			(105		)	105
Total comprehensive income (loss)	$	881		$	(124	)	$	1,207		$	(1,083	)	$	881

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS



Nine Months Ended September 30, 2018
	FCX			FM O&G LLC			Non-guarantor						Consolidated
	Issuer			Guarantor			Subsidiaries			Eliminations			FCX
Net cash (used in) provided by operating activities	$	(181	)	$	(285	)	$	4,391		$	—		$	3,925

Cash flow from investing activities:
Capital expenditures	(2		)	—			(1,389		)	—			(1,391		)
Intercompany loans	(558		)	—			—			558			—
Dividends from (investments in) consolidated subsidiaries	2,726			—			65			(2,791		)	—
Asset sales and other, net	4			3			(88		)	—			(81		)
Net cash provided by (used in) investing activities	2,170			3			(1,412		)	(2,233		)	(1,472		)

Cash flow from financing activities:
Proceeds from debt	—			—			475			—			475
Repayments of debt	(1,826		)	(52		)	(532		)	—			(2,410		)
Intercompany loans	—			327			231			(558		)	—
Cash dividends paid and contributions received, net	(145		)	—			(3,016		)	2,775			(386		)
Other, net	(18		)	—			(17		)	16			(19		)
Net cash (used in) provided by financing activities	(1,989		)	275			(2,859		)	2,233			(2,340		)

Net (decrease) increase in cash, cash equivalents, restricted cash and restricted cash equivalents	—			(7		)	120			—			113
Decrease in cash and cash equivalents in assets held for sale	—			—			55			—			55
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	$	—		$	—		$	4,799		$	—		$	4,799



Nine Months Ended September 30, 2017
	FCX			FM O&G LLC			Non-guarantor						Consolidated
	Issuer			Guarantor			Subsidiaries			Eliminations			FCX
Net cash (used in) provided by operating activities	$	(222	)	$	(383	)	$	3,617		$	—		$	3,012

Cash flow from investing activities:
Capital expenditures	—			(24		)	(996		)	—			(1,020		)
Intercompany loans	(609		)	—			—			609			—
Dividends from (investments in) consolidated subsidiaries	1,757			(16		)	93			(1,834		)	—
Asset sales and other, net	—			58			8			—			66
Net cash provided by (used in) investing activities	1,148			18			(895		)	(1,225		)	(954		)

Cash flow from financing activities:
Proceeds from debt	—			—			795			—			795
Repayments of debt	(915		)	(139		)	(937		)	—			(1,991		)
Intercompany loans	—			512			97			(609		)	—
Cash dividends paid and contributions received, net	(2		)	—			(1,839		)	1,772			(69		)
Other, net	(9		)	(11		)	(64		)	62			(22		)
Net cash (used in) provided by financing activities	(926		)	362			(1,948		)	1,225			(1,287		)

Net (decrease) increase in cash, cash equivalents, restricted cash and restricted cash equivalents	—			(3		)	774			—			771
Increase in cash and cash equivalents in assets held for sale	—			—			(45		)	—			(45		)
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	$	—		$	8		$	5,121		$	—		$	5,129