UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K/A

(Amendment No. 2)

CURRENT REPORT

Pursuant to Section 13 OR 15(d)

of The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): November 10, 2014 (June 3, 2013)

 

LOGO

Freeport-McMoRan Inc.

(Exact name of registrant as specified in its charter)

 

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

   85004-2189
(Address of principal executive offices)   (Zip Code)

Registrant’s telephone number, including area code: (602) 366-8100

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Explanatory Note

As previously disclosed, Freeport-McMoRan Inc. (“FCX”) completed the transactions contemplated by the Agreement and Plan of Merger, dated as of December 5, 2012, by and among Plains Exploration & Production Company (“PXP”), FCX, and Freeport-McMoRan Oil & Gas LLC (a wholly owned subsidiary of FCX) (the “PXP Acquisition”). This current report on Form 8-K/A (“Amendment No. 2”) amends and supplements the Current Report on Form 8-K filed with the Securities and Exchange Commission (the “SEC”) by FCX on June 3, 2013, as amended by the Current Report on Form 8-K/A filed with the SEC by FCX on August 13, 2013 (“Amendment No. 1”). This Amendment No. 2 is being filed to update the unaudited pro forma condensed combined statement of income of FCX previously provided related to the PXP Acquisition. Amendment No. 1 provided a pro forma income statement for the three months ended March 31, 2013, and this Amendment No. 2 provides a pro forma income statement for the year ended December 31, 2013. In addition, Part II, Item 9A of PXP’s Annual Report on Form 10-K for the fiscal year ended December 31, 2012, as filed on February 21, 2013, Commission File No. 001-31470, is incorporated by reference into this Amendment No. 2. No other amendments to the Form 8-K, as amended, are being made by this Amendment No. 2.

References in this current report to “us,” “we,” “our,” the “Company” or “FCX” are to Freeport-McMoRan Inc.

 

Item 2.01 Completion of Acquisition or Disposition of Assets.

Refer to Item 9.01 for amendments made regarding updating the unaudited pro forma condensed combined statement of income of FCX previously provided related to the PXP Acquisition.

 

Item 9.01. Financial Statements and Exhibits.

(a) Financial Statements of Business Acquired.

Management’s report on internal control over financial reporting is incorporated herein by reference to Part II, Item 9A of PXP’s Annual Report on Form 10-K for the fiscal year ended December 31, 2012, as filed on February 21, 2013, Commission File No. 001-31470.

(b) Pro Forma Financial Information.

 

  •   The unaudited pro forma condensed combined statement of income of FCX for the year ended December 31, 2013 and the notes thereto are filed as Exhibit 99.1 hereto and are incorporated herein by reference.

(d) Exhibits.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

Freeport-McMoRan Inc.

By:  

/s/ C. Donald Whitmire, Jr.

Name:   C. Donald Whitmire, Jr.
Title:  

Vice President and Controller -

Financial Reporting

 

(authorized signatory and

Principal Accounting Officer)

Date: November 10, 2014

EXHIBIT INDEX

 

EXHIBIT
NUMBER

   

DESCRIPTION

Exhibit 99.1    Unaudited pro forma condensed combined statement of income of Freeport-McMoRan Inc. for the year ended December 31, 2013.


Exhibit 99.1

Freeport-McMoRan Inc.

UNAUDITED PRO FORMA CONDENSED COMBINED STATEMENT OF INCOME

FOR THE YEAR ENDED DECEMBER 31, 2013

(IN MILLIONS, EXCEPT PER SHARE AMOUNTS)

 

     Historical(1)                         
           PXP     Adjustments             
     FCX     First
Quarter		     April 1
to May 31		     Conforming(2)     Pro
Forma(3)		          Combined  

Revenues

    $ 20,921      $         1,232      $ 810      $         (25 )    $ –         $         22,938   

Cost of sales:

                

Production and delivery

      11,840        248        158        26        (18 )    A      12,254   

Depreciation, depletion and amortization

      2,797        541        349        (29 )      (38 )    B      3,620   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

       

 

 

  

Total cost of sales

      14,637        789        507        (3 )      (56 )         15,874   

Other operating costs and expenses

      933        46        281        (9 )              (472 )    C      779   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

       

 

 

  

Total costs and expenses

              15,570        835        788        (12 )      (528 )         16,653   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

       

 

 

  

Operating income (loss)

      5,351        397        22        (13 )      528           6,285   

Interest expense, net

      (518 )      (141 )      (91 )      (12 )      13      D      (703 ) 
             46      E   

Losses on early extinguishment of debt

      (35 )      (18 )              (119 )      –        182      F      10   

Gain on investment in McMoRan Exploration Co.

      128        –        –        –        –           128   

Other (expense) income, net

      (13 )      (186 )      191        25        (30 )    G      (13 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

       

 

 

  

Income before income taxes and equity in affiliated companies’ net earnings

      4,913        52        3        –        739           5,707   

(Provision for) benefit from income taxes

      (1,475 )      (20 )      4        –        (451 )    H      (1,942 ) 

Equity in affiliated companies’ net earnings

      3        –        –        –        12      G      15   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

       

 

 

  

Net income

      3,441        32        7        –        300           3,780   

Net income and preferred dividends attributable to noncontrolling interests

      (783 )      (9 )      (9 )      –        –           (801 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

       

 

 

  

Net income attributable to common stockholders

    $ 2,658      $ 23      $ (2 )    $ –      $ 300         $ 2,979   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

       

 

 

  

Net income per share attributable to common stockholders:

                

Basic

    $ 2.65                 $ 2.86   
  

 

 

               

 

 

  

Diluted

    $ 2.64                 $ 2.85   
  

 

 

               

 

 

  

Weighted-average common shares outstanding:

                

Basic

      1,002                   1,041   
  

 

 

               

 

 

  

Diluted

      1,006                   1,045   
  

 

 

               

 

 

  

COMBINATION OF FCX AND PXP

NOTES TO THE UNAUDITED PRO FORMA CONDENSED COMBINED STATEMENT OF INCOME

 

(1) Historical Financial Information

FCX’s historical financial information has been derived from its annual report on Form 10-K for the year ended December 31, 2013. PXP’s historical information has been derived from its quarterly report on Form 10-Q for the period ended March 31, 2013 (first quarter), and from its books and records for the April 1, 2013, to May 31, 2013, period.

 

(2) Conforming Adjustments

Certain of PXP’s historical balances have been adjusted to conform to FCX’s presentation, including the reclassification of PXP’s gains and losses on mark-to-market oil and gas derivative contracts to revenues.

 

(3) Pro Forma Adjustments

The following pro forma adjustments for the pro forma condensed combined statement of income for the year ended December 31, 2013, are primarily based on the estimated fair value adjustments made to the assets acquired and liabilities assumed.

 

  A. Adjustments to accretion on assumed asset retirement obligations.

 

  B. Adjustments to depreciation, depletion and amortization expense primarily reflect updated reserve estimates and depletion rates for oil and gas properties subject to depletion. The pro forma depletion rate was $32.32 per barrel of oil equivalents for the year.

 

  C. Adjustment to reverse transaction costs related to the merger that were recorded in FCX’s and PXP’s historical results.

 

  D. Net adjustments to interest expense primarily relate to interest associated with the $6.5 billion of senior notes and the adjustment to fair value of the assumed PXP debt obligations.

 

  E. Adjustments reflect pro forma capitalized interest related to the interest adjustments described above in Note D, and adjustments to oil and gas properties not subject to depletion.

 

  F. Adjustment to reverse losses on early extinguishment of debt in PXP’s historical information and to reverse FCX’s losses on early extinguishment of debt associated with the termination of the bridge loan facilities for the PXP acquisition.

 

  G. PXP owned 51 million shares of MMR common stock and historically elected to measure this equity investment at fair value, with changes in fair value recognized as a component of other (expense) income, net, in the statement of income. For purposes of the Pro Forma Condensed Combined Statement of Income, FCX has recorded the equity investment in MMR under the equity method of accounting. Accordingly, adjustments were made to (i) reverse the income statement effects recorded by PXP under the fair value option and (ii) to record the equity in MMR losses under the equity method of accounting.

 

  H. The pro forma adjustment for income taxes reflects the incremental income taxes necessary to achieve an effective income tax rate of 34 percent on a combined basis.
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