UNITED STATES
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SECURITIES AND EXCHANGE COMMISSION
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Washington, D.C. 20549
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FORM 10-Q
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(Mark One)
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[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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For the quarterly period ended June 30, 2014
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OR
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[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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For the transition period from
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to
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Commission File Number: 001-11307-01
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Delaware
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74-2480931
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(State or other jurisdiction of
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(I.R.S. Employer Identification No.)
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incorporation or organization)
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333 North Central Avenue
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Phoenix, AZ
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85004-2189
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(Address of principal executive offices)
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(Zip Code)
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(602) 366-8100
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(Registrant's telephone number, including area code)
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Page
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Part I.
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FINANCIAL INFORMATION
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Item 1.
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Financial Statements
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June 30,
2014 |
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December 31,
2013 |
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(In millions)
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||||||
ASSETS
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Current assets:
|
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||||
Cash and cash equivalents
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$
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1,458
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$
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1,985
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Trade accounts receivable
|
1,838
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1,728
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Other accounts receivable
|
920
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834
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Inventories:
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|
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Mill and leach stockpiles
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1,880
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1,705
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Materials and supplies, net
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1,825
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1,730
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Product
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1,665
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1,583
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Other current assets
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668
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407
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Total current assets
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10,254
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9,972
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Property, plant, equipment and mining development costs, net
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25,407
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24,042
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Oil and gas properties - full cost method
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Subject to amortization, less accumulated amortization
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11,057
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12,472
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Not subject to amortization
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10,769
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10,887
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Long-term mill and leach stockpiles
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2,518
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2,386
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Goodwill
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1,717
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1,916
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Other assets
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2,287
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1,798
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Total assets
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$
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64,009
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$
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63,473
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LIABILITIES AND EQUITY
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Current liabilities:
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Accounts payable and accrued liabilities
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$
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3,950
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$
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3,708
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Current portion of debt
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2,784
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312
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Dividends payable
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334
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333
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Current portion of environmental and asset retirement obligations
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250
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236
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Accrued income taxes
|
240
|
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184
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||
Total current liabilities
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7,558
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|
4,773
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Long-term debt, less current portion
|
17,512
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20,394
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Deferred income taxes
|
7,451
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7,410
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Environmental and asset retirement obligations, less current portion
|
3,294
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3,259
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Other liabilities
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1,782
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1,690
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Total liabilities
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37,597
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37,526
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Redeemable noncontrolling interest
|
745
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716
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Equity:
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FCX stockholders’ equity:
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Common stock
|
117
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117
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Capital in excess of par value
|
22,221
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22,161
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Retained earnings
|
3,081
|
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2,742
|
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Accumulated other comprehensive loss
|
(401
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)
|
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(405
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)
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||
Common stock held in treasury
|
(3,686
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)
|
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(3,681
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)
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||
Total FCX stockholders’ equity
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21,332
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20,934
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Noncontrolling interests
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4,335
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4,297
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Total equity
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25,667
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25,231
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Total liabilities and equity
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$
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64,009
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$
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63,473
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Three Months Ended
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Six Months Ended
|
||||||||||||
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June 30,
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June 30,
|
||||||||||||
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2014
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2013
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2014
|
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2013
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||||||||
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(In millions, except per share amounts)
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Revenues
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$
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5,522
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$
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4,288
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$
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10,507
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$
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8,871
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Cost of sales:
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Production and delivery
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3,082
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2,853
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5,819
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5,572
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Depreciation, depletion and amortization
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1,013
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530
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1,979
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859
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Total cost of sales
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4,095
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3,383
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7,798
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6,431
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Selling, general and administrative expenses
|
164
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186
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299
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299
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Mining exploration and research expenses
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34
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64
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64
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116
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Environmental obligations and shutdown costs
|
76
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16
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82
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31
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Total costs and expenses
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4,369
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3,649
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8,243
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6,877
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|
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Operating income
|
1,153
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639
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2,264
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1,994
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Interest expense, net
|
(164
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)
|
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(132
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)
|
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(325
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)
|
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(189
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)
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Net gain (loss) on early extinguishment of debt
|
5
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—
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5
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(45
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)
|
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Gain on investment in McMoRan Exploration Co.
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—
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128
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—
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128
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|
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Other (expense) income, net
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(8
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)
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13
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25
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10
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|
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Income before income taxes and equity in affiliated companies' net earnings
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986
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648
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1,969
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1,898
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Provision for income taxes
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(328
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)
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(40
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)
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(685
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)
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(468
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)
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Equity in affiliated companies’ net earnings
|
2
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2
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2
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4
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Net income
|
660
|
|
|
610
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|
1,286
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|
1,434
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|
||||
Net income attributable to noncontrolling interests
|
(168
|
)
|
|
(125
|
)
|
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(274
|
)
|
|
(301
|
)
|
||||
Preferred dividends attributable to redeemable noncontrolling interest
|
(10
|
)
|
|
(3
|
)
|
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(20
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)
|
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(3
|
)
|
||||
Net income attributable to FCX common stockholders
|
$
|
482
|
|
|
$
|
482
|
|
|
$
|
992
|
|
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$
|
1,130
|
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|
|
|
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||||||||
Net income per share attributable to FCX common stockholders:
|
|
|
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|
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Basic
|
$
|
0.46
|
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$
|
0.49
|
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$
|
0.95
|
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$
|
1.17
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|
Diluted
|
$
|
0.46
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$
|
0.49
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$
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0.95
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$
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1.17
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Weighted-average common shares outstanding:
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Basic
|
1,039
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|
980
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1,039
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|
|
965
|
|
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Diluted
|
1,045
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|
|
984
|
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1,045
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|
|
968
|
|
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Dividends declared per share of common stock
|
$
|
0.3125
|
|
|
$
|
1.3125
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|
$
|
0.625
|
|
|
$
|
1.625
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
|
June 30,
|
|
June 30,
|
||||||||||||
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||||||
|
|
(In millions)
|
||||||||||||||
Net income
|
|
$
|
660
|
|
|
$
|
610
|
|
|
$
|
1,286
|
|
|
$
|
1,434
|
|
|
|
|
|
|
|
|
|
|
||||||||
Other comprehensive income, net of taxes:
|
|
|
|
|
|
|
|
|
||||||||
Defined benefit plans:
|
|
|
|
|
|
|
|
|
||||||||
Amortization of unrecognized amounts included in net periodic benefit costs
|
|
4
|
|
|
5
|
|
|
7
|
|
|
12
|
|
||||
Foreign exchange losses
|
|
(3
|
)
|
|
—
|
|
|
(3
|
)
|
|
—
|
|
||||
Translation adjustments and unrealized gains (losses) on securities
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
||||
Other comprehensive income
|
|
1
|
|
|
5
|
|
|
4
|
|
|
11
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Total comprehensive income
|
|
661
|
|
|
615
|
|
|
1,290
|
|
|
1,445
|
|
||||
Total comprehensive income attributable to noncontrolling interests
|
|
(168
|
)
|
|
(125
|
)
|
|
(274
|
)
|
|
(301
|
)
|
||||
Preferred dividends attributable to redeemable noncontrolling interest
|
|
(10
|
)
|
|
(3
|
)
|
|
(20
|
)
|
|
(3
|
)
|
||||
Total comprehensive income attributable to FCX common stockholders
|
|
$
|
483
|
|
|
$
|
487
|
|
|
$
|
996
|
|
|
$
|
1,141
|
|
|
Six Months Ended
|
|
||||||
|
June 30,
|
|
||||||
|
2014
|
|
2013
|
|
||||
|
(In millions)
|
|
||||||
Cash flow from operating activities:
|
|
|
|
|
||||
Net income
|
$
|
1,286
|
|
|
$
|
1,434
|
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
||||
Depreciation, depletion and amortization
|
1,979
|
|
|
859
|
|
|
||
Net losses on crude oil and natural gas derivative contracts
|
120
|
|
|
35
|
|
|
||
Gain on investment in McMoRan Exploration Co. (MMR)
|
—
|
|
|
(128
|
)
|
|
||
Stock-based compensation
|
69
|
|
|
65
|
|
|
||
Pension plans contributions
|
(28
|
)
|
|
(42
|
)
|
|
||
Net charges for environmental and asset retirement obligations, including accretion
|
97
|
|
|
73
|
|
|
||
Payments for environmental and asset retirement obligations
|
(96
|
)
|
|
(91
|
)
|
|
||
Net (gain) loss on early extinguishment of debt
|
(5
|
)
|
|
45
|
|
|
||
Deferred income taxes
|
37
|
|
|
43
|
|
|
||
Increase in long-term mill and leach stockpiles
|
(131
|
)
|
|
(236
|
)
|
|
||
Other, net
|
36
|
|
|
3
|
|
|
||
(Increases) decreases in working capital and changes in other tax payments, excluding amounts from acquisitions:
|
|
|
|
|
||||
Accounts receivable
|
(243
|
)
|
|
350
|
|
|
||
Inventories
|
(230
|
)
|
|
(160
|
)
|
|
||
Other current assets
|
35
|
|
|
58
|
|
|
||
Accounts payable and accrued liabilities
|
(186
|
)
|
|
(371
|
)
|
|
||
Accrued income taxes and other tax payments
|
(153
|
)
|
|
(72
|
)
|
|
||
Net cash provided by operating activities
|
2,587
|
|
|
1,865
|
|
|
||
|
|
|
|
|
||||
Cash flow from investing activities:
|
|
|
|
|
||||
Capital expenditures:
|
|
|
|
|
||||
North America copper mines
|
(627
|
)
|
|
(543
|
)
|
|
||
South America
|
(839
|
)
|
|
(470
|
)
|
|
||
Indonesia
|
(479
|
)
|
|
(511
|
)
|
|
||
Africa
|
(60
|
)
|
|
(103
|
)
|
|
||
Molybdenum mines
|
(33
|
)
|
|
(82
|
)
|
|
||
U.S. oil and gas operations
|
(1,484
|
)
|
|
(190
|
)
|
|
||
Other
|
(40
|
)
|
|
(79
|
)
|
|
||
Acquisition of Deepwater Gulf of Mexico interests
|
(925
|
)
|
|
—
|
|
|
||
Acquisition of Plains Exploration & Production Company, net of cash acquired
|
—
|
|
|
(3,465
|
)
|
|
||
Acquisition of MMR, net of cash acquired
|
—
|
|
|
(1,628
|
)
|
|
||
Acquisition of cobalt chemical business, net of cash acquired
|
—
|
|
|
(321
|
)
|
|
||
Net proceeds from sale of Eagle Ford shale assets
|
3,009
|
|
|
—
|
|
|
||
Restricted cash and other, net
|
(363
|
)
|
|
(264
|
)
|
|
||
Net cash used in investing activities
|
(1,841
|
)
|
|
(7,656
|
)
|
|
||
|
|
|
|
|
||||
Cash flow from financing activities:
|
|
|
|
|
||||
Proceeds from debt
|
1,248
|
|
|
11,021
|
|
|
||
Repayments of debt
|
(1,611
|
)
|
|
(4,541
|
)
|
|
||
Redemption of MMR preferred stock
|
—
|
|
|
(202
|
)
|
|
||
Cash dividends and distributions paid:
|
|
|
|
|
||||
Common stock
|
(653
|
)
|
|
(595
|
)
|
|
||
Noncontrolling interests
|
(250
|
)
|
|
(90
|
)
|
|
||
Contributions from noncontrolling interests
|
24
|
|
|
—
|
|
|
||
Debt financing costs
|
(34
|
)
|
|
(111
|
)
|
|
||
Stock-based awards net proceeds (payments), including excess tax benefit
|
3
|
|
|
(102
|
)
|
|
||
Net cash (used in) provided by financing activities
|
(1,273
|
)
|
|
5,380
|
|
|
||
|
|
|
|
|
||||
Net decrease in cash and cash equivalents
|
(527
|
)
|
|
(411
|
)
|
|
||
Cash and cash equivalents at beginning of year
|
1,985
|
|
|
3,705
|
|
|
||
Cash and cash equivalents at end of period
|
$
|
1,458
|
|
|
$
|
3,294
|
|
|
|
FCX Stockholders’ Equity
|
|
|
|
|
||||||||||||||||||||||||||||||||
|
Common Stock
|
|
|
|
Retained
Earnings |
|
Accumu-
lated Other Compre- hensive Loss |
|
Common Stock
Held in Treasury
|
|
Total FCX
Stock-holders' Equity |
|
|
|
|
||||||||||||||||||||||
|
Number
of
Shares
|
|
At Par
Value
|
|
Capital in
Excess of
Par Value
|
|
|
|
Number
of
Shares
|
|
At
Cost
|
|
|
Non-
controlling
Interests
|
|
Total
Equity
|
|||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||
|
(In millions)
|
||||||||||||||||||||||||||||||||||||
Balance at December 31, 2013
|
1,165
|
|
|
$
|
117
|
|
|
$
|
22,161
|
|
|
$
|
2,742
|
|
|
$
|
(405
|
)
|
|
127
|
|
|
$
|
(3,681
|
)
|
|
$
|
20,934
|
|
|
$
|
4,297
|
|
|
$
|
25,231
|
|
Exercised and issued stock-based awards
|
1
|
|
|
—
|
|
|
8
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8
|
|
|
—
|
|
|
8
|
|
||||||||
Stock-based compensation
|
—
|
|
|
—
|
|
|
52
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
52
|
|
|
—
|
|
|
52
|
|
||||||||
Tender of shares for stock-based awards
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(5
|
)
|
|
(5
|
)
|
|
—
|
|
|
(5
|
)
|
||||||||
Dividends on common stock
|
—
|
|
|
—
|
|
|
—
|
|
|
(653
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(653
|
)
|
|
—
|
|
|
(653
|
)
|
||||||||
Dividends to noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(236
|
)
|
|
(236
|
)
|
||||||||
Net income attributable to FCX common stockholders
|
—
|
|
|
—
|
|
|
—
|
|
|
992
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
992
|
|
|
—
|
|
|
992
|
|
||||||||
Net income attributable to noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
274
|
|
|
274
|
|
||||||||
Other comprehensive income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4
|
|
|
—
|
|
|
—
|
|
|
4
|
|
|
—
|
|
|
4
|
|
||||||||
Balance at June 30, 2014
|
1,166
|
|
|
$
|
117
|
|
|
$
|
22,221
|
|
|
$
|
3,081
|
|
|
$
|
(401
|
)
|
|
127
|
|
|
$
|
(3,686
|
)
|
|
$
|
21,332
|
|
|
$
|
4,335
|
|
|
$
|
25,667
|
|
|
|
Three Months
|
|
Six Months
|
||||
|
|
Ended
|
|
Ended
|
||||
|
|
June 30, 2013
|
|
June 30, 2013
|
||||
|
|
(in millions, except per share amounts)
|
||||||
|
|
|
|
|
||||
Revenues
|
|
$
|
5,330
|
|
|
$
|
11,025
|
|
Operating income
|
|
1,330
|
|
|
2,910
|
|
||
Income from continuing operations
|
|
722
|
|
|
1,635
|
|
||
Net income attributable to FCX common stockholders
|
|
585
|
|
|
1,313
|
|
||
|
|
|
|
|
||||
Net income per share attributable to FCX common stockholders:
|
|
|
|
|
||||
Basic
|
|
$
|
0.56
|
|
|
$
|
1.26
|
|
Diluted
|
|
0.56
|
|
|
1.26
|
|
|
Three Months Ended
|
|
Six Months Ended
|
|
||||||||||||
|
June 30,
|
|
June 30,
|
|
||||||||||||
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
||||||||
Net income
|
$
|
660
|
|
|
$
|
610
|
|
|
$
|
1,286
|
|
|
$
|
1,434
|
|
|
Net income attributable to noncontrolling interests
|
(168
|
)
|
|
(125
|
)
|
|
(274
|
)
|
|
(301
|
)
|
|
||||
Preferred dividends on redeemable noncontrolling interest
|
(10
|
)
|
|
(3
|
)
|
|
(20
|
)
|
|
(3
|
)
|
|
||||
Undistributed earnings allocable to participating securities
|
(2
|
)
|
|
—
|
|
|
(3
|
)
|
|
—
|
|
|
||||
Net income allocable to FCX common stockholders
|
$
|
480
|
|
|
$
|
482
|
|
|
$
|
989
|
|
|
$
|
1,130
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Basic weighted-average shares of common stock outstanding
|
1,039
|
|
|
980
|
|
|
1,039
|
|
|
965
|
|
|
||||
Add shares issuable upon exercise or vesting of dilutive stock options and RSUs
|
6
|
|
a
|
4
|
|
|
6
|
|
a
|
3
|
|
|
||||
Diluted weighted-average shares of common stock outstanding
|
1,045
|
|
|
984
|
|
|
1,045
|
|
|
968
|
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Basic net income per share attributable to FCX common stockholders
|
$
|
0.46
|
|
|
$
|
0.49
|
|
|
$
|
0.95
|
|
|
$
|
1.17
|
|
|
Diluted net income per share attributable to FCX common stockholders
|
$
|
0.46
|
|
|
$
|
0.49
|
|
|
$
|
0.95
|
|
|
$
|
1.17
|
|
|
a.
|
Excluded shares of common stock associated with outstanding stock options with exercise prices less than the average market price of FCX's common stock that were anti-dilutive totaled approximately
3 million
for both
second-quarter
2014 and for the
six
months ended
June 30, 2014
.
|
|
June 30,
2014 |
|
December 31, 2013
|
|
||||
Current inventories:
|
|
|
|
|
||||
Raw materials (primarily concentrates)
|
$
|
297
|
|
|
$
|
238
|
|
|
Work-in-process
a
|
154
|
|
|
199
|
|
|
||
Finished goods
b
|
1,214
|
|
|
1,146
|
|
|
||
Total product inventories
|
$
|
1,665
|
|
|
$
|
1,583
|
|
|
|
|
|
|
|
||||
Mill stockpiles
|
$
|
104
|
|
|
$
|
91
|
|
|
Leach stockpiles
|
1,776
|
|
|
1,614
|
|
|
||
Total current mill and leach stockpiles
|
$
|
1,880
|
|
|
$
|
1,705
|
|
|
|
|
|
|
|
||||
Total materials and supplies, net
c
|
$
|
1,825
|
|
|
$
|
1,730
|
|
|
|
|
|
|
|
||||
Long-term inventories:
|
|
|
|
|
||||
Mill stockpiles
|
$
|
753
|
|
|
$
|
698
|
|
|
Leach stockpiles
|
1,765
|
|
|
1,688
|
|
|
||
Total long-term mill and leach stockpiles
d
|
$
|
2,518
|
|
|
$
|
2,386
|
|
|
a.
|
FCX's mining operations also have work-in-process inventories that are reflected as mill and leach stockpiles.
|
b.
|
Primarily included molybdenum concentrates; copper concentrates, anodes, cathodes and rod; and various cobalt products.
|
c.
|
Materials and supplies inventory was net of obsolescence reserves totaling
$21 million
at
June 30, 2014
, and
$24 million
at
December 31, 2013
.
|
d.
|
Estimated metals in stockpiles not expected to be recovered within the next 12 months.
|
|
Three Months Ended
|
|
Six Months Ended
|
|
||||||||||||
|
June 30,
|
|
June 30,
|
|
||||||||||||
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
||||||||
U.S. operations
|
$
|
149
|
|
a
|
$
|
(95
|
)
|
b
|
$
|
285
|
|
a
|
$
|
(19
|
)
|
b
|
International operations
|
179
|
|
|
135
|
|
|
400
|
|
|
487
|
|
|
||||
Total
|
$
|
328
|
|
|
$
|
40
|
|
|
$
|
685
|
|
|
$
|
468
|
|
|
a.
|
FCX recognized a
$58 million
charge for deferred taxes recorded in connection with the allocation of goodwill to the sale of Eagle Ford.
|
b.
|
As a result of second-quarter 2013 oil and gas acquisitions, FCX recognized a net tax benefit of
$183 million
, consisting of income tax benefits of
$190 million
associated with net reductions in FCX's valuation allowances and
$69 million
related to the release of the deferred tax liability on PXP's investment in MMR common stock; partially offset by income tax expense of
$76 million
associated with the write off of deferred tax assets related to environmental liabilities.
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
June 30,
|
|
June 30,
|
||||||||||||
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||||||
Copper futures and swap contracts:
|
|
|
|
|
|
|
|
||||||||
Unrealized gains (losses):
|
|
|
|
|
|
|
|
||||||||
Derivative financial instruments
|
$
|
12
|
|
|
$
|
(6
|
)
|
|
$
|
—
|
|
|
$
|
(18
|
)
|
Hedged item – firm sales commitments
|
(12
|
)
|
|
6
|
|
|
—
|
|
|
18
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Realized losses:
|
|
|
|
|
|
|
|
||||||||
Matured derivative financial instruments
|
(2
|
)
|
|
(13
|
)
|
|
(4
|
)
|
|
(14
|
)
|
|
Open Positions
|
|
Average Price
Per Unit
|
|
Maturities Through
|
|||||||
|
|
Contract
|
|
Market
|
|
|||||||
Embedded derivatives in provisional sales contracts:
|
|
|
|
|
|
|
|
|||||
Copper (millions of pounds)
|
496
|
|
|
$
|
3.08
|
|
|
$
|
3.18
|
|
|
November 2014
|
Gold (thousands of ounces)
|
85
|
|
|
1,273
|
|
|
1,314
|
|
|
August 2014
|
||
Embedded derivatives in provisional purchase contracts:
|
|
|
|
|
|
|
|
|||||
Copper (millions of pounds)
|
84
|
|
|
3.07
|
|
|
3.19
|
|
|
October 2014
|
|
|
|
|
|
|
Average Strike Price (per barrel)
a
|
|
|
|
|
|||||||||
Period
|
|
Instrument Type
|
|
Daily Volumes (thousand barrels)
|
|
Floor
|
|
Floor Limit
|
|
Average Deferred Premium
(per barrel)
|
|
Index
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Jul - Dec
|
|
Put options
b
|
|
75
|
|
|
$
|
90
|
|
|
$
|
70
|
|
|
$
|
5.74
|
|
|
Brent
|
Jul - Dec
|
|
Put options
b
|
|
30
|
|
|
95
|
|
|
75
|
|
|
6.09
|
|
|
Brent
|
|||
Jul - Dec
|
|
Put options
b
|
|
5
|
|
|
100
|
|
|
80
|
|
|
7.11
|
|
|
Brent
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Jan - Dec
|
|
Put options
b
|
|
84
|
|
|
90
|
|
|
70
|
|
|
6.89
|
|
|
Brent
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
a.
|
The average strike prices do not reflect any premiums to purchase the put options.
|
b.
|
If the index price is less than the per barrel floor, FCX receives the difference between the per barrel floor and the index price up to a maximum of
$20
per barrel less the option premium. If the index price is at or above the per barrel floor, FCX pays the option premium and no cash settlement is received.
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
June 30,
|
|
June 30,
|
||||||||||||
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||||||
Embedded derivatives in provisional copper and gold
|
|
|
|
|
|
|
|
||||||||
sales contracts
a
|
$
|
84
|
|
|
$
|
(205
|
)
|
|
$
|
(85
|
)
|
|
$
|
(288
|
)
|
Crude oil options
a
|
(68
|
)
|
|
(54
|
)
|
|
(104
|
)
|
|
(54
|
)
|
||||
Natural gas swaps
a
|
(2
|
)
|
|
19
|
|
|
(16
|
)
|
|
19
|
|
||||
Copper forward contracts
b
|
4
|
|
|
—
|
|
|
5
|
|
|
3
|
|
a.
|
Amounts recorded in revenues.
|
b.
|
Amounts recorded in cost of sales as production and delivery costs.
|
|
|
June 30,
2014 |
|
December 31, 2013
|
||||
Commodity Derivative Assets:
|
|
|
|
|
||||
Derivatives designated as hedging instruments:
|
|
|
|
|
||||
Copper futures and swap contracts
a
|
|
$
|
6
|
|
|
$
|
6
|
|
Derivatives not designated as hedging instruments:
|
|
|
|
|
||||
Embedded derivatives in provisional copper and gold
|
|
|
|
|
||||
sales/purchase contracts
|
|
55
|
|
|
63
|
|
||
Copper forward contracts
|
|
2
|
|
|
—
|
|
||
Total derivative assets
|
|
$
|
63
|
|
|
$
|
69
|
|
|
|
|
|
|
||||
Commodity Derivative Liabilities:
|
|
|
|
|
||||
Derivatives designated as hedging instruments:
|
|
|
|
|
||||
Copper futures and swap contracts
a
|
|
$
|
1
|
|
|
$
|
—
|
|
Derivatives not designated as hedging instruments:
|
|
|
|
|
||||
Embedded derivatives in provisional copper and gold
|
|
|
|
|
||||
sales/purchase contracts
|
|
12
|
|
|
16
|
|
||
Crude oil options
b
|
|
298
|
|
|
309
|
|
||
Natural gas swaps
|
|
7
|
|
|
4
|
|
||
Copper forward contracts
|
|
—
|
|
|
1
|
|
||
Total derivative liabilities
|
|
$
|
318
|
|
|
$
|
330
|
|
a.
|
FCX paid
$1 million
to brokers at
June 30, 2014
, and at
December 31, 2013
, for margin requirements (recorded in other current assets).
|
b.
|
Included
$329 million
at
June 30, 2014
, and
$444 million
at
December 31, 2013
, for deferred premiums and accrued interest.
|
|
|
Assets
|
|
Liabilities
|
||||||||||||
|
|
June 30,
2014
|
|
December 31, 2013
|
|
June 30,
2014
|
|
December 31, 2013
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
Gross amounts recognized:
|
|
|
|
|
|
|
|
|
||||||||
Commodity contracts:
|
|
|
|
|
|
|
|
|
||||||||
Embedded derivatives on provisional
|
|
|
|
|
|
|
|
|
||||||||
sales/purchase contracts
|
|
$
|
55
|
|
|
$
|
63
|
|
|
$
|
12
|
|
|
$
|
16
|
|
Crude oil and natural gas derivatives
|
|
—
|
|
|
—
|
|
|
305
|
|
|
313
|
|
||||
Copper derivatives
|
|
8
|
|
|
6
|
|
|
1
|
|
|
1
|
|
||||
|
|
63
|
|
|
69
|
|
|
318
|
|
|
330
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Less gross amounts of offset:
|
|
|
|
|
|
|
|
|
||||||||
Commodity contracts:
|
|
|
|
|
|
|
|
|
||||||||
Embedded derivatives on provisional
|
|
|
|
|
|
|
|
|
||||||||
sales/purchase contracts
|
|
—
|
|
|
10
|
|
|
—
|
|
|
10
|
|
||||
Crude oil and natural gas derivatives
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Copper derivatives
|
|
1
|
|
|
—
|
|
|
1
|
|
|
—
|
|
||||
|
|
1
|
|
|
10
|
|
|
1
|
|
|
10
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Net amounts presented in balance sheet:
|
|
|
|
|
|
|
|
|
||||||||
Commodity contracts:
|
|
|
|
|
|
|
|
|
||||||||
Embedded derivatives on provisional
|
|
|
|
|
|
|
|
|
||||||||
sales/purchase contracts
|
|
55
|
|
|
53
|
|
|
12
|
|
|
6
|
|
||||
Crude oil and natural gas derivatives
|
|
—
|
|
|
—
|
|
|
305
|
|
|
313
|
|
||||
Copper derivatives
|
|
7
|
|
|
6
|
|
|
—
|
|
|
1
|
|
||||
|
|
$
|
62
|
|
|
$
|
59
|
|
|
$
|
317
|
|
|
$
|
320
|
|
|
|
|
|
|
|
|
|
|
||||||||
Balance sheet classification:
|
|
|
|
|
|
|
|
|
||||||||
Trade accounts receivable
|
|
$
|
55
|
|
|
$
|
53
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Other current assets
|
|
7
|
|
|
6
|
|
|
—
|
|
|
—
|
|
||||
Accounts payable and accrued liabilities
|
|
—
|
|
|
—
|
|
|
232
|
|
|
205
|
|
||||
Other liabilities
|
|
—
|
|
|
—
|
|
|
85
|
|
|
115
|
|
||||
|
|
$
|
62
|
|
|
$
|
59
|
|
|
$
|
317
|
|
|
$
|
320
|
|
|
At June 30, 2014
|
||||||||||||||||||
|
Carrying
|
|
Fair Value
|
||||||||||||||||
|
Amount
|
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
||||||||||
Investment securities:
a,b
|
|
|
|
|
|
|
|
|
|
||||||||||
Money market funds
c
|
$
|
434
|
|
|
$
|
434
|
|
|
$
|
434
|
|
|
$
|
—
|
|
|
$
|
—
|
|
U.S. core fixed income fund
|
22
|
|
|
22
|
|
|
—
|
|
|
22
|
|
|
—
|
|
|||||
Equity securities
|
4
|
|
|
4
|
|
|
4
|
|
|
—
|
|
|
—
|
|
|||||
Total
|
460
|
|
|
460
|
|
|
438
|
|
|
22
|
|
|
—
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Legally restricted funds:
a,b,d
|
|
|
|
|
|
|
|
|
|
||||||||||
U.S. core fixed income fund
|
50
|
|
|
50
|
|
|
—
|
|
|
50
|
|
|
—
|
|
|||||
Government bonds and notes
|
35
|
|
|
35
|
|
|
—
|
|
|
35
|
|
|
—
|
|
|||||
Government mortgage-backed securities
|
31
|
|
|
31
|
|
|
—
|
|
|
31
|
|
|
—
|
|
|||||
Corporate bonds
|
29
|
|
|
29
|
|
|
—
|
|
|
29
|
|
|
—
|
|
|||||
Asset-backed securities
|
16
|
|
|
16
|
|
|
—
|
|
|
16
|
|
|
—
|
|
|||||
Money market funds
|
6
|
|
|
6
|
|
|
6
|
|
|
—
|
|
|
—
|
|
|||||
Municipal bonds
|
1
|
|
|
1
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|||||
Total
|
168
|
|
|
168
|
|
|
6
|
|
|
162
|
|
|
—
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Derivatives:
a,e
|
|
|
|
|
|
|
|
|
|
||||||||||
Embedded derivatives in provisional sales/purchase
|
|
|
|
|
|
|
|
|
|
||||||||||
contracts in a gross asset position
|
55
|
|
|
55
|
|
|
—
|
|
|
55
|
|
|
—
|
|
|||||
Copper futures and swap contracts
|
6
|
|
|
6
|
|
|
6
|
|
|
—
|
|
|
—
|
|
|||||
Copper forward contracts
|
2
|
|
|
2
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|||||
Total
|
63
|
|
|
63
|
|
|
8
|
|
|
55
|
|
|
—
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Total assets
|
|
|
$
|
691
|
|
|
$
|
452
|
|
|
$
|
239
|
|
|
$
|
—
|
|
||
|
|
|
|
|
|
|
|
|
|
||||||||||
Liabilities
|
|
|
|
|
|
|
|
|
|
||||||||||
Derivatives:
a,e
|
|
|
|
|
|
|
|
|
|
||||||||||
Embedded derivatives in provisional sales/purchase
|
|
|
|
|
|
|
|
|
|
||||||||||
contracts in a gross liability position
|
$
|
12
|
|
|
$
|
12
|
|
|
$
|
—
|
|
|
$
|
12
|
|
|
$
|
—
|
|
Crude oil options
|
298
|
|
|
298
|
|
|
—
|
|
|
—
|
|
|
298
|
|
|||||
Natural gas swaps
|
7
|
|
|
7
|
|
|
—
|
|
|
7
|
|
|
—
|
|
|||||
Copper futures and swap contracts
|
1
|
|
|
1
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|||||
Total
|
318
|
|
|
318
|
|
|
1
|
|
|
19
|
|
|
298
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Long-term debt, including current portion
f
|
20,296
|
|
|
20,607
|
|
|
—
|
|
|
20,607
|
|
|
—
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Total liabilities
|
|
|
$
|
20,925
|
|
|
$
|
1
|
|
|
$
|
20,626
|
|
|
$
|
298
|
|
|
At December 31, 2013
|
||||||||||||||||||
|
Carrying
|
|
Fair Value
|
||||||||||||||||
|
Amount
|
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
||||||||||
Investment securities:
a,b
|
|
|
|
|
|
|
|
|
|
||||||||||
U.S. core fixed income fund
|
$
|
21
|
|
|
$
|
21
|
|
|
$
|
—
|
|
|
$
|
21
|
|
|
$
|
—
|
|
Money market funds
|
18
|
|
|
18
|
|
|
18
|
|
|
—
|
|
|
—
|
|
|||||
Equity securities
|
5
|
|
|
5
|
|
|
5
|
|
|
—
|
|
|
—
|
|
|||||
Total
|
44
|
|
|
44
|
|
|
23
|
|
|
21
|
|
|
—
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Legally restricted funds:
a,b,d
|
|
|
|
|
|
|
|
|
|
||||||||||
U.S. core fixed income fund
|
48
|
|
|
48
|
|
|
—
|
|
|
48
|
|
|
—
|
|
|||||
Government mortgage-backed securities
|
34
|
|
|
34
|
|
|
—
|
|
|
34
|
|
|
—
|
|
|||||
Corporate bonds
|
28
|
|
|
28
|
|
|
—
|
|
|
28
|
|
|
—
|
|
|||||
Government bonds and notes
|
28
|
|
|
28
|
|
|
—
|
|
|
28
|
|
|
—
|
|
|||||
Money market funds
|
28
|
|
|
28
|
|
|
28
|
|
|
—
|
|
|
—
|
|
|||||
Asset-backed securities
|
15
|
|
|
15
|
|
|
—
|
|
|
15
|
|
|
—
|
|
|||||
Municipal bonds
|
1
|
|
|
1
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|||||
Total
|
182
|
|
|
182
|
|
|
28
|
|
|
154
|
|
|
—
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Derivatives:
a,e
|
|
|
|
|
|
|
|
|
|
||||||||||
Embedded derivatives in provisional sales/purchase
|
|
|
|
|
|
|
|
|
|
||||||||||
contracts in a gross asset position
|
63
|
|
|
63
|
|
|
—
|
|
|
63
|
|
|
—
|
|
|||||
Copper futures and swap contracts
|
6
|
|
|
6
|
|
|
5
|
|
|
1
|
|
|
—
|
|
|||||
Total
|
69
|
|
|
69
|
|
|
5
|
|
|
64
|
|
|
—
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Total assets
|
|
|
$
|
295
|
|
|
$
|
56
|
|
|
$
|
239
|
|
|
$
|
—
|
|
||
|
|
|
|
|
|
|
|
|
|
||||||||||
Liabilities
|
|
|
|
|
|
|
|
|
|
||||||||||
Derivatives:
a
|
|
|
|
|
|
|
|
|
|
||||||||||
Embedded derivatives in provisional sales/purchase
|
|
|
|
|
|
|
|
|
|
||||||||||
contracts in a gross liability position
e
|
$
|
16
|
|
|
$
|
16
|
|
|
$
|
—
|
|
|
$
|
16
|
|
|
$
|
—
|
|
Crude oil options
e
|
309
|
|
|
309
|
|
|
—
|
|
|
—
|
|
|
309
|
|
|||||
Natural gas swaps
e
|
4
|
|
|
4
|
|
|
—
|
|
|
4
|
|
|
—
|
|
|||||
Copper forward contracts
e
|
1
|
|
|
1
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|||||
Plains Offshore warrants
g
|
2
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|||||
Total
|
332
|
|
|
332
|
|
|
1
|
|
|
20
|
|
|
311
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Long-term debt, including current portion
f
|
20,706
|
|
|
20,487
|
|
|
—
|
|
|
20,487
|
|
|
—
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Total liabilities
|
|
|
$
|
20,819
|
|
|
$
|
1
|
|
|
$
|
20,507
|
|
|
$
|
311
|
|
a.
|
Recorded at fair value.
|
b.
|
Current portion included in other current assets and long-term portion included in other assets.
|
c.
|
Included
$414 million
held in an escrow account for future oil and gas property acquisitions (refer to Note 2 for further discussion).
|
d.
|
Excluded
$225 million
of time deposits (which approximated fair value) at
June 30, 2014
(included in other current assets), and at
December 31, 2013
(
$15 million
included in other current assets and
$210 million
in other assets), associated with the Cerro Verde royalty dispute.
|
e.
|
Refer to Note
7
for further discussion and balance sheet classifications. Crude oil options are net of
$329 million
at
June 30, 2014
, and
$444 million
at
December 31, 2013
, for deferred premiums and accrued interest.
|
f.
|
Recorded at cost except for debt assumed in acquisitions, which were recorded at fair value at the respective acquisition dates.
|
g.
|
Included in other liabilities.
|
|
Crude Oil
|
|
Plains Offshore
|
|
||||
|
Options
|
|
Warrants
|
|
||||
Fair value at December 31, 2013
|
$
|
(309
|
)
|
|
$
|
(2
|
)
|
|
Net realized losses
|
(6
|
)
|
a
|
—
|
|
|
||
Net unrealized (losses) gains included in earnings related to assets and liabilities still held at the end of the period
|
(100
|
)
|
b
|
2
|
|
c
|
||
Settlement payments
|
117
|
|
|
—
|
|
|
||
Fair value at June 30, 2014
|
$
|
(298
|
)
|
|
$
|
—
|
|
|
a.
|
Recorded in revenues.
|
b.
|
Included net unrealized losses of
$98 million
recorded in revenues and
$2 million
of interest expense associated with the deferred premiums.
|
c.
|
Recorded in other (expense) income, net.
|
(In millions)
|
Mining Operations
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
North America Copper Mines
|
|
South America
|
|
Indonesia
|
|
Africa
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Atlantic
|
|
Other
|
|
|
|
|
|
Corporate,
|
|
|
||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Molyb-
|
|
|
|
Copper
|
|
Mining
|
|
|
|
U.S.
|
|
Other
|
|
|
||||||||||||||||||||||||||||||||||
|
|
|
Other
|
|
|
|
Cerro
|
|
Candel-
|
|
Other
|
|
|
|
|
|
|
|
denum
|
|
Rod &
|
|
Smelting
|
|
& Elimi-
|
|
Total
|
|
Oil & Gas
|
|
& Elimi-
|
|
FCX
|
||||||||||||||||||||||||||||||||||
|
Morenci
|
|
Mines
|
|
Total
|
|
Verde
|
|
aria
|
|
Mines
|
|
Total
|
|
Grasberg
|
|
Tenke
|
|
Mines
|
|
Refining
|
|
& Refining
|
|
nations
|
|
Mining
|
|
Operations
|
|
nations
|
|
Total
|
||||||||||||||||||||||||||||||||||
Three Months Ended June 30, 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||
Unaffiliated customers
|
$
|
52
|
|
|
$
|
55
|
|
|
$
|
107
|
|
|
$
|
421
|
|
|
$
|
213
|
|
|
$
|
311
|
|
|
$
|
945
|
|
|
$
|
523
|
|
a
|
$
|
386
|
|
|
$
|
—
|
|
|
$
|
1,234
|
|
|
$
|
623
|
|
|
$
|
468
|
|
b
|
$
|
4,286
|
|
|
$
|
1,236
|
|
c
|
$
|
—
|
|
|
$
|
5,522
|
|
Intersegment
|
474
|
|
|
888
|
|
|
1,362
|
|
|
23
|
|
|
62
|
|
|
1
|
|
|
86
|
|
|
—
|
|
|
32
|
|
|
170
|
|
|
8
|
|
|
6
|
|
|
(1,664
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||||||||||
Production and delivery
|
312
|
|
|
558
|
|
|
870
|
|
|
195
|
|
|
164
|
|
|
171
|
|
|
530
|
|
|
511
|
|
|
198
|
|
|
81
|
|
|
1,233
|
|
|
618
|
|
|
(1,287
|
)
|
|
2,754
|
|
|
329
|
|
|
(1
|
)
|
|
3,082
|
|
|||||||||||||||||
Depreciation, depletion and amortization
|
43
|
|
|
85
|
|
|
128
|
|
|
43
|
|
|
16
|
|
|
36
|
|
|
95
|
|
|
54
|
|
|
63
|
|
|
24
|
|
|
3
|
|
|
10
|
|
|
17
|
|
|
394
|
|
|
616
|
|
|
3
|
|
|
1,013
|
|
|||||||||||||||||
Selling, general and administrative expenses
|
1
|
|
|
—
|
|
|
1
|
|
|
1
|
|
|
1
|
|
|
—
|
|
|
2
|
|
|
25
|
|
|
3
|
|
|
—
|
|
|
—
|
|
|
5
|
|
|
6
|
|
|
42
|
|
|
59
|
|
|
63
|
|
|
164
|
|
|||||||||||||||||
Mining exploration and research expenses
|
—
|
|
|
2
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
32
|
|
|
34
|
|
|
—
|
|
|
—
|
|
|
34
|
|
|||||||||||||||||
Environmental obligations and shutdown costs
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
76
|
|
|
76
|
|
|
—
|
|
|
—
|
|
|
76
|
|
|||||||||||||||||
Operating income (loss)
|
170
|
|
|
298
|
|
|
468
|
|
|
205
|
|
|
94
|
|
|
105
|
|
|
404
|
|
|
(67
|
)
|
|
154
|
|
|
65
|
|
|
6
|
|
|
(4
|
)
|
|
(40
|
)
|
|
986
|
|
|
232
|
|
|
(65
|
)
|
|
1,153
|
|
|||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||
Interest expense, net
|
—
|
|
|
1
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3
|
|
|
18
|
|
|
22
|
|
|
74
|
|
|
68
|
|
|
164
|
|
|||||||||||||||||
Provision for income taxes
|
—
|
|
|
—
|
|
|
—
|
|
|
73
|
|
|
32
|
|
|
35
|
|
|
140
|
|
|
(33
|
)
|
|
33
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
140
|
|
|
—
|
|
|
188
|
|
|
328
|
|
|||||||||||||||||
Total assets at June 30, 2014
|
3,675
|
|
|
5,822
|
|
|
9,497
|
|
|
6,901
|
|
|
1,520
|
|
|
2,271
|
|
|
10,692
|
|
|
7,972
|
|
|
4,952
|
|
|
2,095
|
|
|
299
|
|
|
882
|
|
|
1,127
|
|
|
37,516
|
|
|
25,293
|
|
|
1,200
|
|
|
64,009
|
|
|||||||||||||||||
Capital expenditures
|
289
|
|
|
35
|
|
|
324
|
|
|
391
|
|
|
12
|
|
|
13
|
|
|
416
|
|
|
243
|
|
|
29
|
|
|
14
|
|
|
1
|
|
|
5
|
|
|
17
|
|
|
1,049
|
|
|
903
|
|
|
(2
|
)
|
|
1,950
|
|
|||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||
Three Months Ended June 30, 2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||
Unaffiliated customers
|
$
|
38
|
|
|
$
|
76
|
|
|
$
|
114
|
|
|
$
|
311
|
|
|
$
|
138
|
|
|
$
|
315
|
|
|
$
|
764
|
|
|
$
|
471
|
|
a
|
$
|
355
|
|
|
$
|
—
|
|
|
$
|
1,265
|
|
|
$
|
583
|
|
|
$
|
399
|
|
b
|
$
|
3,951
|
|
|
$
|
336
|
|
c
|
$
|
1
|
|
|
$
|
4,288
|
|
Intersegment
|
444
|
|
|
751
|
|
|
1,195
|
|
|
86
|
|
|
101
|
|
|
—
|
|
|
187
|
|
|
120
|
|
|
10
|
|
|
144
|
|
|
7
|
|
|
4
|
|
|
(1,667
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||||||||||
Production and delivery
|
301
|
|
|
552
|
|
|
853
|
|
|
189
|
|
|
174
|
|
|
153
|
|
|
516
|
|
|
563
|
|
|
185
|
|
|
78
|
|
|
1,262
|
|
|
575
|
|
|
(1,273
|
)
|
|
2,759
|
|
|
89
|
|
|
5
|
|
|
2,853
|
|
|||||||||||||||||
Depreciation, depletion and amortization
|
37
|
|
|
71
|
|
|
108
|
|
|
37
|
|
|
16
|
|
|
33
|
|
|
86
|
|
|
58
|
|
|
57
|
|
|
21
|
|
|
2
|
|
|
12
|
|
|
14
|
|
|
358
|
|
|
169
|
|
|
3
|
|
|
530
|
|
|||||||||||||||||
Selling, general and administrative expenses
|
1
|
|
|
1
|
|
|
2
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
27
|
|
|
3
|
|
|
—
|
|
|
—
|
|
|
4
|
|
|
9
|
|
|
47
|
|
|
14
|
|
|
125
|
|
|
186
|
|
|||||||||||||||||
Mining exploration and research expenses
|
—
|
|
|
1
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
60
|
|
|
61
|
|
|
—
|
|
|
3
|
|
|
64
|
|
|||||||||||||||||
Environmental obligations and shutdown costs
|
—
|
|
|
(2
|
)
|
|
(2
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
18
|
|
|
16
|
|
|
—
|
|
|
—
|
|
|
16
|
|
|||||||||||||||||
Operating income (loss)
|
143
|
|
|
204
|
|
|
347
|
|
|
169
|
|
|
49
|
|
|
129
|
|
|
347
|
|
|
(57
|
)
|
|
120
|
|
|
45
|
|
|
8
|
|
|
(4
|
)
|
|
(96
|
)
|
|
710
|
|
|
64
|
|
|
(135
|
)
|
|
639
|
|
|||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||
Interest expense, net
|
2
|
|
|
1
|
|
|
3
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
10
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
4
|
|
|
20
|
|
|
41
|
|
|
26
|
|
|
65
|
|
|
132
|
|
|||||||||||||||||
Provision for income taxes
|
—
|
|
|
—
|
|
|
—
|
|
|
59
|
|
|
20
|
|
|
48
|
|
|
127
|
|
|
(4
|
)
|
|
22
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
145
|
|
|
—
|
|
|
(105
|
)
|
d
|
40
|
|
|||||||||||||||||
Total assets at June 30, 2013
|
2,730
|
|
|
5,768
|
|
|
8,498
|
|
|
6,089
|
|
|
1,623
|
|
|
2,487
|
|
|
10,199
|
|
|
7,095
|
|
|
4,887
|
|
|
2,061
|
|
|
287
|
|
|
934
|
|
|
1,100
|
|
|
35,061
|
|
|
26,587
|
|
|
1,509
|
|
|
63,157
|
|
|||||||||||||||||
Capital expenditures
|
204
|
|
|
82
|
|
|
286
|
|
|
208
|
|
|
28
|
|
|
8
|
|
|
244
|
|
|
320
|
|
|
46
|
|
|
42
|
|
|
1
|
|
|
11
|
|
|
23
|
|
|
973
|
|
|
190
|
|
|
10
|
|
|
1,173
|
|
a.
|
Included PT-FI’s sales to PT Smelting totaling
$540 million
in
second-quarter
2014
and
$291 million
in
second-quarter
2013
.
|
b.
|
Included revenues from FCX's molybdenum sales company, which included sales of molybdenum produced by the Molybdenum mines and by certain of the North and South America copper mines.
|
c.
|
Included net mark-to-market losses associated with crude oil and natural gas derivative contracts totaling
$70 million
in second-quarter 2014 and
$35 million
for the period from June 1, 2013, to June 30, 2013.
|
d.
|
Included
$183 million
of net benefits resulting from oil and gas acquisitions.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||
(In millions)
|
Mining Operations
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
North America Copper Mines
|
|
South America
|
|
Indonesia
|
|
Africa
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Atlantic
|
|
Other
|
|
|
|
|
|
Corporate,
|
|
|
||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Molyb-
|
|
|
|
Copper
|
|
Mining
|
|
|
|
U.S.
|
|
Other
|
|
|
||||||||||||||||||||||||||||||||||
|
|
|
Other
|
|
|
|
Cerro
|
|
Candel-
|
|
Other
|
|
|
|
|
|
|
|
denum
|
|
Rod &
|
|
Smelting
|
|
& Elimi-
|
|
Total
|
|
Oil & Gas
|
|
& Elimi-
|
|
FCX
|
||||||||||||||||||||||||||||||||||
|
Morenci
|
|
Mines
|
|
Total
|
|
Verde
|
|
aria
|
|
Mines
|
|
Total
|
|
Grasberg
|
|
Tenke
|
|
Mines
|
|
Refining
|
|
& Refining
|
|
nations
|
|
Mining
|
|
Operations
|
|
nations
|
|
Total
|
||||||||||||||||||||||||||||||||||
Six Months Ended June 30, 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||
Unaffiliated customers
|
$
|
75
|
|
|
$
|
116
|
|
|
$
|
191
|
|
|
$
|
701
|
|
|
$
|
341
|
|
|
$
|
605
|
|
|
$
|
1,647
|
|
|
$
|
985
|
|
a
|
$
|
692
|
|
|
$
|
—
|
|
|
$
|
2,380
|
|
|
$
|
1,211
|
|
|
$
|
904
|
|
b
|
$
|
8,010
|
|
|
$
|
2,497
|
|
c
|
$
|
—
|
|
|
$
|
10,507
|
|
Intersegment
|
918
|
|
|
1,646
|
|
|
2,564
|
|
|
87
|
|
|
190
|
|
|
5
|
|
|
282
|
|
|
8
|
|
|
53
|
|
|
296
|
|
|
16
|
|
|
11
|
|
|
(3,230
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||||||||||
Production and delivery
|
595
|
|
|
1,061
|
|
|
1,656
|
|
|
360
|
|
|
314
|
|
|
332
|
|
|
1,006
|
|
|
894
|
|
|
350
|
|
|
157
|
|
|
2,381
|
|
|
1,206
|
|
|
(2,470
|
)
|
|
5,180
|
|
|
640
|
|
|
(1
|
)
|
|
5,819
|
|
|||||||||||||||||
Depreciation, depletion and amortization
|
77
|
|
|
158
|
|
|
235
|
|
|
79
|
|
|
35
|
|
|
68
|
|
|
182
|
|
|
102
|
|
|
114
|
|
|
46
|
|
|
5
|
|
|
20
|
|
|
36
|
|
|
740
|
|
|
1,232
|
|
|
7
|
|
|
1,979
|
|
|||||||||||||||||
Selling, general and administrative expenses
|
1
|
|
|
1
|
|
|
2
|
|
|
2
|
|
|
1
|
|
|
1
|
|
|
4
|
|
|
46
|
|
|
6
|
|
|
—
|
|
|
—
|
|
|
9
|
|
|
13
|
|
|
80
|
|
|
116
|
|
|
103
|
|
|
299
|
|
|||||||||||||||||
Mining exploration and research expenses
|
—
|
|
|
4
|
|
|
4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
60
|
|
|
64
|
|
|
—
|
|
|
—
|
|
|
64
|
|
|||||||||||||||||
Environmental obligations and shutdown costs
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
82
|
|
|
82
|
|
|
—
|
|
|
—
|
|
|
82
|
|
|||||||||||||||||
Operating income (loss)
|
320
|
|
|
538
|
|
|
858
|
|
|
347
|
|
|
181
|
|
|
209
|
|
|
737
|
|
|
(49
|
)
|
|
275
|
|
|
93
|
|
|
10
|
|
|
(13
|
)
|
|
(47
|
)
|
|
1,864
|
|
|
509
|
|
|
(109
|
)
|
|
2,264
|
|
|||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||
Interest expense, net
|
1
|
|
|
1
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
7
|
|
|
36
|
|
|
45
|
|
|
150
|
|
|
130
|
|
|
325
|
|
|||||||||||||||||
Provision for income taxes
|
—
|
|
|
—
|
|
|
—
|
|
|
130
|
|
|
68
|
|
|
69
|
|
|
267
|
|
|
(15
|
)
|
|
57
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
309
|
|
|
—
|
|
|
376
|
|
|
685
|
|
|||||||||||||||||
Capital expenditures
|
533
|
|
|
94
|
|
|
627
|
|
|
791
|
|
|
22
|
|
|
26
|
|
|
839
|
|
|
479
|
|
|
60
|
|
|
33
|
|
|
2
|
|
|
6
|
|
|
27
|
|
|
2,073
|
|
|
1,484
|
|
|
5
|
|
|
3,562
|
|
|||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||
Six Months Ended June 30, 2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||
Unaffiliated customers
|
$
|
118
|
|
|
$
|
121
|
|
|
$
|
239
|
|
|
$
|
601
|
|
|
$
|
391
|
|
|
$
|
622
|
|
|
$
|
1,614
|
|
|
$
|
1,335
|
|
a
|
$
|
793
|
|
|
$
|
—
|
|
|
$
|
2,595
|
|
|
$
|
1,216
|
|
|
$
|
740
|
|
b
|
$
|
8,532
|
|
|
$
|
336
|
|
c
|
$
|
3
|
|
|
$
|
8,871
|
|
Intersegment
|
880
|
|
|
1,575
|
|
|
2,455
|
|
|
195
|
|
|
156
|
|
|
—
|
|
|
351
|
|
|
187
|
|
|
10
|
|
|
287
|
|
|
14
|
|
|
10
|
|
|
(3,314
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||||||||||
Production and delivery
|
598
|
|
|
1,054
|
|
|
1,652
|
|
|
360
|
|
|
341
|
|
|
290
|
|
|
991
|
|
|
1,126
|
|
|
370
|
|
|
158
|
|
|
2,590
|
|
|
1,203
|
|
|
(2,615
|
)
|
|
5,475
|
|
|
89
|
|
|
8
|
|
|
5,572
|
|
|||||||||||||||||
Depreciation, depletion and amortization
|
70
|
|
|
140
|
|
|
210
|
|
|
70
|
|
|
25
|
|
|
62
|
|
|
157
|
|
|
113
|
|
|
115
|
|
|
41
|
|
|
5
|
|
|
22
|
|
|
22
|
|
|
685
|
|
|
169
|
|
|
5
|
|
|
859
|
|
|||||||||||||||||
Selling, general and administrative expenses
|
1
|
|
|
2
|
|
|
3
|
|
|
2
|
|
|
1
|
|
|
—
|
|
|
3
|
|
|
53
|
|
|
6
|
|
|
—
|
|
|
—
|
|
|
9
|
|
|
18
|
|
|
92
|
|
|
14
|
|
|
193
|
|
|
299
|
|
|||||||||||||||||
Mining exploration and research expenses
|
—
|
|
|
1
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
109
|
|
|
110
|
|
|
—
|
|
|
6
|
|
|
116
|
|
|||||||||||||||||
Environmental obligations and shutdown costs
|
—
|
|
|
(6
|
)
|
|
(6
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
37
|
|
|
31
|
|
|
—
|
|
|
—
|
|
|
31
|
|
|||||||||||||||||
Operating income (loss)
|
329
|
|
|
505
|
|
|
834
|
|
|
364
|
|
|
180
|
|
|
270
|
|
|
814
|
|
|
230
|
|
|
312
|
|
|
88
|
|
|
14
|
|
|
(8
|
)
|
|
(145
|
)
|
|
2,139
|
|
|
64
|
|
|
(209
|
)
|
|
1,994
|
|
|||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||
Interest expense, net
|
3
|
|
|
1
|
|
|
4
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
12
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
8
|
|
|
40
|
|
|
68
|
|
|
26
|
|
|
95
|
|
|
189
|
|
|||||||||||||||||
Provision for income taxes
|
—
|
|
|
—
|
|
|
—
|
|
|
123
|
|
|
64
|
|
|
91
|
|
|
278
|
|
|
116
|
|
|
66
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
460
|
|
|
—
|
|
|
8
|
|
d
|
468
|
|
|||||||||||||||||
Capital expenditures
|
357
|
|
|
186
|
|
|
543
|
|
|
372
|
|
|
68
|
|
|
30
|
|
|
470
|
|
|
511
|
|
|
103
|
|
|
82
|
|
|
2
|
|
|
19
|
|
|
40
|
|
|
1,770
|
|
|
190
|
|
|
18
|
|
|
1,978
|
|
a.
|
Included PT-FI’s sales to PT Smelting totaling
$913 million
for the first six months of
2014
and
$721 million
for the first six months of
2013
.
|
b.
|
Included revenues from FCX's molybdenum sales company, which included sales of molybdenum produced by the Molybdenum mines and by certain of the North and South America copper mines.
|
c.
|
Included net mark-to-market losses associated with crude oil and natural gas derivative contracts totaling
$120 million
for the first six months of 2014 and
$35 million
for the period from June 1, 2013, to June 30, 2013.
|
d.
|
Included
$183 million
of net benefits resulting from oil and gas acquisitions.
|
|
FCX
|
|
FM O&G LLC
|
|
Non-guarantor
|
|
|
|
Consolidated
|
||||||||||
|
Issuer
|
|
Guarantor
|
|
Subsidiaries
|
|
Eliminations
|
|
FCX
|
||||||||||
ASSETS
|
|
|
|
|
|
|
|
|
|
||||||||||
Current assets:
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
$
|
—
|
|
|
$
|
1
|
|
|
$
|
1,457
|
|
|
$
|
—
|
|
|
$
|
1,458
|
|
Accounts receivable
|
388
|
|
|
2,840
|
|
|
2,466
|
|
|
(2,936
|
)
|
|
2,758
|
|
|||||
Other current assets
|
78
|
|
|
56
|
|
|
5,904
|
|
|
—
|
|
|
6,038
|
|
|||||
Total current assets
|
466
|
|
|
2,897
|
|
|
9,827
|
|
|
(2,936
|
)
|
|
10,254
|
|
|||||
Property, plant, equipment and mining development costs, net
|
25
|
|
|
45
|
|
|
25,337
|
|
|
—
|
|
|
25,407
|
|
|||||
Oil and gas properties, net - full cost method:
|
|
|
|
|
|
|
|
|
|
||||||||||
Subject to amortization, less accumulated amortization
|
—
|
|
|
4,583
|
|
|
6,460
|
|
|
14
|
|
|
11,057
|
|
|||||
Not subject to amortization
|
—
|
|
|
1,853
|
|
|
8,916
|
|
|
—
|
|
|
10,769
|
|
|||||
Investments in consolidated subsidiaries
|
32,769
|
|
|
10,107
|
|
|
11,416
|
|
|
(54,292
|
)
|
|
—
|
|
|||||
Goodwill
|
—
|
|
|
217
|
|
|
1,500
|
|
|
—
|
|
|
1,717
|
|
|||||
Other assets
|
6,346
|
|
|
3,432
|
|
|
4,241
|
|
|
(9,214
|
)
|
|
4,805
|
|
|||||
Total assets
|
$
|
39,606
|
|
|
$
|
23,134
|
|
|
$
|
67,697
|
|
|
$
|
(66,428
|
)
|
|
$
|
64,009
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
LIABILITIES AND EQUITY
|
|
|
|
|
|
|
|
|
|
||||||||||
Current liabilities
|
$
|
1,550
|
|
|
$
|
1,026
|
|
|
$
|
6,088
|
|
|
$
|
(1,106
|
)
|
|
$
|
7,558
|
|
Long-term debt, less current portion
|
12,435
|
|
|
6,762
|
|
|
5,885
|
|
|
(7,570
|
)
|
|
17,512
|
|
|||||
Deferred income taxes
|
4,244
|
|
a
|
—
|
|
|
3,207
|
|
|
—
|
|
|
7,451
|
|
|||||
Environmental and asset retirement obligations, less current portion
|
—
|
|
|
291
|
|
|
3,003
|
|
|
—
|
|
|
3,294
|
|
|||||
Other liabilities
|
46
|
|
|
3,457
|
|
|
1,753
|
|
|
(3,474
|
)
|
|
1,782
|
|
|||||
Total liabilities
|
18,275
|
|
|
11,536
|
|
|
19,936
|
|
|
(12,150
|
)
|
|
37,597
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Redeemable noncontrolling interest
|
—
|
|
|
—
|
|
|
745
|
|
|
—
|
|
|
745
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Equity:
|
|
|
|
|
|
|
|
|
|
||||||||||
Stockholders' equity
|
21,331
|
|
|
11,598
|
|
|
43,140
|
|
|
(54,737
|
)
|
|
21,332
|
|
|||||
Noncontrolling interests
|
—
|
|
|
—
|
|
|
3,876
|
|
|
459
|
|
|
4,335
|
|
|||||
Total equity
|
21,331
|
|
|
11,598
|
|
|
47,016
|
|
|
(54,278
|
)
|
|
25,667
|
|
|||||
Total liabilities and equity
|
$
|
39,606
|
|
|
$
|
23,134
|
|
|
$
|
67,697
|
|
|
$
|
(66,428
|
)
|
|
$
|
64,009
|
|
a.
|
All U.S. related deferred income taxes are recorded at the parent company.
|
|
FCX
|
|
FM O&G LLC
|
|
Non-guarantor
|
|
|
|
Consolidated
|
||||||||||
|
Issuer
|
|
Guarantor
|
|
Subsidiaries
|
|
Eliminations
|
|
FCX
|
||||||||||
ASSETS
|
|
|
|
|
|
|
|
|
|
||||||||||
Current assets:
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,985
|
|
|
$
|
—
|
|
|
$
|
1,985
|
|
Accounts receivable
|
855
|
|
|
659
|
|
|
2,258
|
|
|
(1,210
|
)
|
|
2,562
|
|
|||||
Other current assets
|
114
|
|
|
38
|
|
|
5,273
|
|
|
—
|
|
|
5,425
|
|
|||||
Total current assets
|
969
|
|
|
697
|
|
|
9,516
|
|
|
(1,210
|
)
|
|
9,972
|
|
|||||
Property, plant, equipment and mining development costs, net
|
27
|
|
|
43
|
|
|
23,972
|
|
|
—
|
|
|
24,042
|
|
|||||
Oil and gas properties, net - full cost method:
|
|
|
|
|
|
|
|
|
|
||||||||||
Subject to amortization, less accumulated amortization
|
—
|
|
|
6,207
|
|
|
6,265
|
|
|
—
|
|
|
12,472
|
|
|||||
Not subject to amortization
|
—
|
|
|
2,649
|
|
|
8,238
|
|
|
—
|
|
|
10,887
|
|
|||||
Investments in consolidated subsidiaries
|
31,162
|
|
|
9,712
|
|
|
12,468
|
|
|
(53,342
|
)
|
|
—
|
|
|||||
Goodwill
|
—
|
|
|
437
|
|
|
1,479
|
|
|
—
|
|
|
1,916
|
|
|||||
Other assets
|
7,126
|
|
|
4,640
|
|
|
4,128
|
|
|
(11,710
|
)
|
|
4,184
|
|
|||||
Total assets
|
$
|
39,284
|
|
|
$
|
24,385
|
|
|
$
|
66,066
|
|
|
$
|
(66,262
|
)
|
|
$
|
63,473
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
LIABILITIES AND EQUITY
|
|
|
|
|
|
|
|
|
|
||||||||||
Current liabilities
|
$
|
1,003
|
|
|
$
|
758
|
|
|
$
|
4,222
|
|
|
$
|
(1,210
|
)
|
|
$
|
4,773
|
|
Long-term debt, less current portion
|
13,184
|
|
|
7,199
|
|
|
8,056
|
|
|
(8,045
|
)
|
|
20,394
|
|
|||||
Deferred income taxes
|
4,137
|
|
a
|
—
|
|
|
3,273
|
|
|
—
|
|
|
7,410
|
|
|||||
Environmental and asset retirement obligations, less current portion
|
—
|
|
|
301
|
|
|
2,958
|
|
|
—
|
|
|
3,259
|
|
|||||
Other liabilities
|
26
|
|
|
3,436
|
|
|
1,893
|
|
|
(3,665
|
)
|
|
1,690
|
|
|||||
Total liabilities
|
18,350
|
|
|
11,694
|
|
|
20,402
|
|
|
(12,920
|
)
|
|
37,526
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Redeemable noncontrolling interest
|
—
|
|
|
—
|
|
|
716
|
|
|
—
|
|
|
716
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Equity:
|
|
|
|
|
|
|
|
|
|
||||||||||
Stockholders' equity
|
20,934
|
|
|
12,691
|
|
|
41,100
|
|
|
(53,791
|
)
|
|
20,934
|
|
|||||
Noncontrolling interests
|
—
|
|
|
—
|
|
|
3,848
|
|
|
449
|
|
|
4,297
|
|
|||||
Total equity
|
20,934
|
|
|
12,691
|
|
|
44,948
|
|
|
(53,342
|
)
|
|
25,231
|
|
|||||
Total liabilities and equity
|
$
|
39,284
|
|
|
$
|
24,385
|
|
|
$
|
66,066
|
|
|
$
|
(66,262
|
)
|
|
$
|
63,473
|
|
a.
|
All U.S. related deferred income taxes are recorded at the parent company.
|
Three Months Ended June 30, 2014
|
|
|
|
|
|
|
|
|
|
||||||||||
|
FCX
|
|
FM O&G LLC
|
|
Non-guarantor
|
|
|
|
Consolidated
|
||||||||||
|
Issuer
|
|
Guarantor
|
|
Subsidiaries
|
|
Eliminations
|
|
FCX
|
||||||||||
Revenues
|
$
|
—
|
|
|
$
|
570
|
|
|
$
|
4,952
|
|
|
$
|
—
|
|
|
$
|
5,522
|
|
Total costs and expenses
|
21
|
|
|
489
|
|
|
3,865
|
|
|
(6
|
)
|
|
4,369
|
|
|||||
Operating (loss) income
|
(21
|
)
|
|
81
|
|
|
1,087
|
|
|
6
|
|
|
1,153
|
|
|||||
Interest expense, net
|
(87
|
)
|
|
(44
|
)
|
|
(51
|
)
|
|
18
|
|
|
(164
|
)
|
|||||
Net (loss) gain on early extinguishment of debt
|
(1
|
)
|
|
6
|
|
|
—
|
|
|
—
|
|
|
5
|
|
|||||
Other income (expense), net
|
17
|
|
|
1
|
|
|
(8
|
)
|
|
(18
|
)
|
|
(8
|
)
|
|||||
Benefit from (provision for) income taxes
|
26
|
|
|
26
|
|
|
(378
|
)
|
|
(2
|
)
|
|
(328
|
)
|
|||||
Equity in affiliated companies' net earnings (losses)
|
548
|
|
|
126
|
|
|
154
|
|
|
(826
|
)
|
|
2
|
|
|||||
Net income (loss)
|
482
|
|
|
196
|
|
|
804
|
|
|
(822
|
)
|
|
660
|
|
|||||
Net income and preferred dividends attributable to noncontrolling interests
|
—
|
|
|
—
|
|
|
(180
|
)
|
|
2
|
|
|
(178
|
)
|
|||||
Net income (loss) attributable to FCX common stockholders
|
$
|
482
|
|
|
$
|
196
|
|
|
$
|
624
|
|
|
$
|
(820
|
)
|
|
$
|
482
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Other comprehensive income
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
1
|
|
|||||
Total comprehensive income (loss)
|
$
|
482
|
|
|
$
|
196
|
|
|
$
|
625
|
|
|
$
|
(820
|
)
|
|
$
|
483
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Six Months Ended June 30, 2014
|
|
|
|
|
|
|
|
|
|
||||||||||
|
FCX
|
|
FM O&G LLC
|
|
Non-guarantor
|
|
|
|
Consolidated
|
||||||||||
|
Issuer
|
|
Guarantor
|
|
Subsidiaries
|
|
Eliminations
|
|
FCX
|
||||||||||
Revenues
|
$
|
—
|
|
|
$
|
1,214
|
|
|
$
|
9,293
|
|
|
$
|
—
|
|
|
$
|
10,507
|
|
Total costs and expenses
|
32
|
|
|
1,015
|
|
|
7,204
|
|
|
(8
|
)
|
|
8,243
|
|
|||||
Operating (loss) income
|
(32
|
)
|
|
199
|
|
|
2,089
|
|
|
8
|
|
|
2,264
|
|
|||||
Interest expense, net
|
(169
|
)
|
|
(85
|
)
|
|
(109
|
)
|
|
38
|
|
|
(325
|
)
|
|||||
Net (loss) gain on early extinguishment of debt
|
(1
|
)
|
|
6
|
|
|
—
|
|
|
—
|
|
|
5
|
|
|||||
Other income (expense), net
|
37
|
|
|
1
|
|
|
25
|
|
|
(38
|
)
|
|
25
|
|
|||||
Benefit from (provision for) income taxes
|
5
|
|
|
(17
|
)
|
|
(670
|
)
|
|
(3
|
)
|
|
(685
|
)
|
|||||
Equity in affiliated companies' net earnings (losses)
|
1,152
|
|
|
256
|
|
|
339
|
|
|
(1,745
|
)
|
|
2
|
|
|||||
Net income (loss)
|
992
|
|
|
360
|
|
|
1,674
|
|
|
(1,740
|
)
|
|
1,286
|
|
|||||
Net income and preferred dividends attributable to noncontrolling interests
|
—
|
|
|
—
|
|
|
(291
|
)
|
|
(3
|
)
|
|
(294
|
)
|
|||||
Net income (loss) attributable to FCX common stockholders
|
$
|
992
|
|
|
$
|
360
|
|
|
$
|
1,383
|
|
|
$
|
(1,743
|
)
|
|
$
|
992
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Other comprehensive income
|
—
|
|
|
—
|
|
|
4
|
|
|
—
|
|
|
4
|
|
|||||
Total comprehensive income (loss)
|
$
|
992
|
|
|
$
|
360
|
|
|
$
|
1,387
|
|
|
$
|
(1,743
|
)
|
|
$
|
996
|
|
Three Months Ended June 30, 2013
|
|
|
|
|
|
|
|
|
|
||||||||||
|
FCX
|
|
FM O&G LLC
|
|
Non-guarantor
|
|
|
|
Consolidated
|
||||||||||
|
Issuer
|
|
Guarantor
|
|
Subsidiaries
|
|
Eliminations
|
|
FCX
|
||||||||||
Revenues
|
$
|
—
|
|
|
$
|
162
|
|
|
$
|
4,126
|
|
|
$
|
—
|
|
|
$
|
4,288
|
|
Total costs and expenses
|
76
|
|
|
135
|
|
|
3,438
|
|
|
—
|
|
|
3,649
|
|
|||||
Operating (loss) income
|
(76
|
)
|
|
27
|
|
|
688
|
|
|
—
|
|
|
639
|
|
|||||
Interest expense, net
|
(92
|
)
|
|
(12
|
)
|
|
(39
|
)
|
|
11
|
|
|
(132
|
)
|
|||||
Gain on investment in MMR
|
128
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
128
|
|
|||||
Other income (expense), net
|
11
|
|
|
—
|
|
|
13
|
|
|
(11
|
)
|
|
13
|
|
|||||
Benefit from (provision for) income taxes
|
35
|
|
|
(5
|
)
|
|
(70
|
)
|
|
—
|
|
|
(40
|
)
|
|||||
Equity in affiliated companies' net earnings (losses)
|
476
|
|
|
20
|
|
|
(3
|
)
|
|
(491
|
)
|
|
2
|
|
|||||
Net income (loss)
|
482
|
|
|
30
|
|
|
589
|
|
|
(491
|
)
|
|
610
|
|
|||||
Net income and preferred dividends attributable to noncontrolling interests
|
—
|
|
|
—
|
|
|
(133
|
)
|
|
5
|
|
|
(128
|
)
|
|||||
Net income (loss) attributable to FCX common stockholders
|
$
|
482
|
|
|
$
|
30
|
|
|
$
|
456
|
|
|
$
|
(486
|
)
|
|
$
|
482
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Other comprehensive income
|
—
|
|
|
—
|
|
|
5
|
|
|
—
|
|
|
5
|
|
|||||
Total comprehensive income (loss)
|
$
|
482
|
|
|
$
|
30
|
|
|
$
|
461
|
|
|
$
|
(486
|
)
|
|
$
|
487
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Six Months Ended June 30, 2013
|
|
|
|
|
|
|
|
|
|
||||||||||
|
FCX
|
|
FM O&G LLC
|
|
Non-guarantor
|
|
|
|
Consolidated
|
||||||||||
|
Issuer
|
|
Guarantor
|
|
Subsidiaries
|
|
Eliminations
|
|
FCX
|
||||||||||
Revenues
|
$
|
—
|
|
|
$
|
162
|
|
|
$
|
8,709
|
|
|
$
|
—
|
|
|
$
|
8,871
|
|
Total costs and expenses
|
95
|
|
|
135
|
|
|
6,647
|
|
|
—
|
|
|
6,877
|
|
|||||
Operating (loss) income
|
(95
|
)
|
|
27
|
|
|
2,062
|
|
|
—
|
|
|
1,994
|
|
|||||
Interest expense, net
|
(128
|
)
|
|
(12
|
)
|
|
(64
|
)
|
|
15
|
|
|
(189
|
)
|
|||||
Losses on early extinguishment of debt
|
(45
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(45
|
)
|
|||||
Gain on investment in MMR
|
128
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
128
|
|
|||||
Other income (expense), net
|
15
|
|
|
—
|
|
|
10
|
|
|
(15
|
)
|
|
10
|
|
|||||
Benefit from (provision for) income taxes
|
26
|
|
|
(5
|
)
|
|
(489
|
)
|
|
—
|
|
|
(468
|
)
|
|||||
Equity in affiliated companies' net earnings (losses)
|
1,229
|
|
|
20
|
|
|
(46
|
)
|
|
(1,199
|
)
|
|
4
|
|
|||||
Net income (loss)
|
1,130
|
|
|
30
|
|
|
1,473
|
|
|
(1,199
|
)
|
|
1,434
|
|
|||||
Net income and preferred dividends attributable to noncontrolling interests
|
—
|
|
|
—
|
|
|
(292
|
)
|
|
(12
|
)
|
|
(304
|
)
|
|||||
Net income (loss) attributable to FCX common stockholders
|
$
|
1,130
|
|
|
$
|
30
|
|
|
$
|
1,181
|
|
|
$
|
(1,211
|
)
|
|
$
|
1,130
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Other comprehensive income
|
—
|
|
|
—
|
|
|
11
|
|
|
—
|
|
|
11
|
|
|||||
Total comprehensive income (loss)
|
$
|
1,130
|
|
|
$
|
30
|
|
|
$
|
1,192
|
|
|
$
|
(1,211
|
)
|
|
$
|
1,141
|
|
|
FCX
|
|
FM O&G LLC
|
|
Non-guarantor
|
|
|
|
Consolidated
|
||||||||||
|
Issuer
|
|
Guarantor
|
|
Subsidiaries
|
|
Eliminations
|
|
FCX
|
||||||||||
Cash flow from operating activities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income (loss)
|
$
|
992
|
|
|
$
|
360
|
|
|
$
|
1,674
|
|
|
$
|
(1,740
|
)
|
|
$
|
1,286
|
|
Adjustments to reconcile net income (loss) to net cash (used in) provided by operating activities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Depreciation, depletion and amortization
|
2
|
|
|
545
|
|
|
1,440
|
|
|
(8
|
)
|
|
1,979
|
|
|||||
Net losses on crude oil and natural gas derivative contracts
|
—
|
|
|
120
|
|
|
—
|
|
|
—
|
|
|
120
|
|
|||||
Net gain (loss) on early extinguishment of debt
|
1
|
|
|
(6
|
)
|
|
—
|
|
|
—
|
|
|
(5
|
)
|
|||||
Equity in (earnings) losses of consolidated subsidiaries
|
(1,152
|
)
|
|
(256
|
)
|
|
39
|
|
|
1,367
|
|
|
(2
|
)
|
|||||
Other, net
|
121
|
|
|
(12
|
)
|
|
(123
|
)
|
|
—
|
|
|
(14
|
)
|
|||||
(Increases) decreases in working capital and changes in other tax payments
|
(164
|
)
|
|
(2,165
|
)
|
|
1,552
|
|
|
—
|
|
|
(777
|
)
|
|||||
Net cash (used in) provided by operating activities
|
(200
|
)
|
|
(1,414
|
)
|
|
4,582
|
|
|
(381
|
)
|
|
2,587
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash flow from investing activities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Capital expenditures
|
—
|
|
|
(897
|
)
|
|
(2,665
|
)
|
|
—
|
|
|
(3,562
|
)
|
|||||
Acquisition of Deepwater GOM interest
|
—
|
|
|
—
|
|
|
(925
|
)
|
|
—
|
|
|
(925
|
)
|
|||||
Intercompany loans
|
1,318
|
|
|
1,629
|
|
|
—
|
|
|
(2,947
|
)
|
|
—
|
|
|||||
Investment in consolidated subsidiary
|
(364
|
)
|
|
(96
|
)
|
|
1,079
|
|
|
(619
|
)
|
|
—
|
|
|||||
Net proceeds from sale of Eagle Ford shale assets
|
—
|
|
|
3,009
|
|
|
—
|
|
|
—
|
|
|
3,009
|
|
|||||
Other, net
|
—
|
|
|
(381
|
)
|
|
18
|
|
|
—
|
|
|
(363
|
)
|
|||||
Net cash provided by (used in) investing activities
|
954
|
|
|
3,264
|
|
|
(2,493
|
)
|
|
(3,566
|
)
|
|
(1,841
|
)
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash flow from financing activities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Proceeds from debt
|
890
|
|
|
—
|
|
|
358
|
|
|
—
|
|
|
1,248
|
|
|||||
Repayments of debt
|
(990
|
)
|
|
(224
|
)
|
|
(397
|
)
|
|
—
|
|
|
(1,611
|
)
|
|||||
Intercompany loans
|
—
|
|
|
(170
|
)
|
|
(2,777
|
)
|
|
2,947
|
|
|
—
|
|
|||||
Cash dividends and distributions paid
|
(653
|
)
|
|
(1,453
|
)
|
|
203
|
|
|
1,000
|
|
|
(903
|
)
|
|||||
Other, net
|
(1
|
)
|
|
(2
|
)
|
|
(4
|
)
|
|
—
|
|
|
(7
|
)
|
|||||
Net cash (used in) provided by financing activities
|
(754
|
)
|
|
(1,849
|
)
|
|
(2,617
|
)
|
|
3,947
|
|
|
(1,273
|
)
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Net increase (decrease) in cash and cash equivalents
|
—
|
|
|
1
|
|
|
(528
|
)
|
|
—
|
|
|
(527
|
)
|
|||||
Cash and cash equivalents at beginning of period
|
—
|
|
|
—
|
|
|
1,985
|
|
|
—
|
|
|
1,985
|
|
|||||
Cash and cash equivalents at end of period
|
$
|
—
|
|
|
$
|
1
|
|
|
$
|
1,457
|
|
|
$
|
—
|
|
|
$
|
1,458
|
|
|
FCX
|
|
FM O&G LLC
|
|
Non-guarantor
|
|
|
|
Consolidated
|
||||||||||
|
Issuer
|
|
Guarantor
|
|
Subsidiaries
|
|
Eliminations
|
|
FCX
|
||||||||||
Cash flow from operating activities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income (loss)
|
$
|
1,130
|
|
|
$
|
30
|
|
|
$
|
1,473
|
|
|
$
|
(1,199
|
)
|
|
$
|
1,434
|
|
Adjustments to reconcile net income (loss) to net cash (used in) provided by operating activities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Depreciation, depletion and amortization
|
2
|
|
|
79
|
|
|
772
|
|
|
6
|
|
|
859
|
|
|||||
Net loss on early extinguishment of debt
|
45
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
45
|
|
|||||
Gain on investment in MMR
|
(128
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(128
|
)
|
|||||
Net losses on crude oil and natural gas derivative contracts
|
—
|
|
|
35
|
|
|
—
|
|
|
—
|
|
|
35
|
|
|||||
Equity in (earnings) losses of consolidated subsidiaries
|
(1,229
|
)
|
|
(20
|
)
|
|
52
|
|
|
1,193
|
|
|
(4
|
)
|
|||||
Other, net
|
27
|
|
|
(6
|
)
|
|
(202
|
)
|
|
—
|
|
|
(181
|
)
|
|||||
Decreases (increases) in working capital and changes in other tax payments, excluding amounts from acquisitions
|
142
|
|
|
31
|
|
|
(368
|
)
|
|
—
|
|
|
(195
|
)
|
|||||
Net cash (used in) provided by operating activities
|
(11
|
)
|
|
149
|
|
|
1,727
|
|
|
—
|
|
|
1,865
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash flow from investing activities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Capital expenditures
|
—
|
|
|
(151
|
)
|
|
(1,827
|
)
|
|
—
|
|
|
(1,978
|
)
|
|||||
Acquisitions, net of cash acquired
|
(5,437
|
)
|
|
—
|
|
|
(321
|
)
|
|
344
|
|
|
(5,414
|
)
|
|||||
Investment in consolidated subsidiary
|
104
|
|
|
—
|
|
|
—
|
|
|
(104
|
)
|
|
—
|
|
|||||
Other, net
|
(5
|
)
|
|
—
|
|
|
(259
|
)
|
|
—
|
|
|
(264
|
)
|
|||||
Net cash (used in) provided by investing activities
|
(5,338
|
)
|
|
(151
|
)
|
|
(2,407
|
)
|
|
240
|
|
|
(7,656
|
)
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash flow from financing activities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Proceeds from debt
|
10,885
|
|
|
—
|
|
|
136
|
|
|
—
|
|
|
11,021
|
|
|||||
Repayments of debt
|
(4,050
|
)
|
|
(415
|
)
|
|
(76
|
)
|
|
—
|
|
|
(4,541
|
)
|
|||||
Intercompany loans
|
(476
|
)
|
|
476
|
|
|
344
|
|
|
(344
|
)
|
|
—
|
|
|||||
Cash dividends and distributions paid
|
(595
|
)
|
|
—
|
|
|
(194
|
)
|
|
104
|
|
|
(685
|
)
|
|||||
Other, net
|
(415
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(415
|
)
|
|||||
Net cash provided by (used in) financing activities
|
5,349
|
|
|
61
|
|
|
210
|
|
|
(240
|
)
|
|
5,380
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Net increase (decrease) in cash and cash equivalents
|
—
|
|
|
59
|
|
|
(470
|
)
|
|
—
|
|
|
(411
|
)
|
|||||
Cash and cash equivalents at beginning of period
|
—
|
|
|
—
|
|
|
3,705
|
|
|
—
|
|
|
3,705
|
|
|||||
Cash and cash equivalents at end of period
|
$
|
—
|
|
|
$
|
59
|
|
|
$
|
3,235
|
|
|
$
|
—
|
|
|
$
|
3,294
|
|
Item 2.
|
Management's Discussion and Analysis of Financial Condition and Results of Operations.
|
Copper
(millions of recoverable pounds):
|
|
|
|
North America copper mines
|
1,700
|
|
|
South America mining
|
1,200
|
|
|
Indonesia mining
|
735
|
|
|
Africa mining
|
440
|
|
|
|
4,075
|
|
|
Gold
(thousands of recoverable ounces):
|
|
|
|
Indonesia mining
|
1,250
|
|
|
North and South America mining
|
90
|
|
|
|
1,340
|
|
|
Molybdenum
(millions of recoverable pounds)
|
98
|
|
a
|
Oil Equivalents
(million BOE, or MMBOE)
|
58.4
|
|
|
a.
|
Projected molybdenum sales include
53 million
pounds produced by our Molybdenum mines and
45 million
pounds produced by our North and South America copper mines.
|
|
Three Months Ended
|
|
Six Months Ended
|
|
||||||||||||
|
June 30,
|
|
June 30,
|
|
||||||||||||
|
2014
|
|
2013
a
|
|
2014
|
|
2013
a
|
|
||||||||
SUMMARY FINANCIAL DATA
|
(in millions, except per share amounts)
|
|
||||||||||||||
Revenues
b
|
$
|
5,522
|
|
c,d
|
$
|
4,288
|
|
c,d
|
$
|
10,507
|
|
c,d
|
$
|
8,871
|
|
c,d
|
Operating income
b
|
$
|
1,153
|
|
c,d,e,f
|
$
|
639
|
|
c,d,f,g
|
$
|
2,264
|
|
c,d,e,f
|
$
|
1,994
|
|
c,d,f,g
|
Net income attributable to common stockholders
h
|
$
|
482
|
|
c,d,e,f,i,j
|
$
|
482
|
|
c,d,f,g,k
|
$
|
992
|
|
c,d,e,f,i,j
|
$
|
1,130
|
|
c,d,f,g,j,k
|
Diluted net income per share attributable to common stockholders
|
$
|
0.46
|
|
c,d,e,f,i,j
|
$
|
0.49
|
|
c,d,f,g,k
|
$
|
0.95
|
|
c,d,e,f,i,j
|
$
|
1.17
|
|
c,d,f,g,j,k
|
Diluted weighted-average common shares outstanding
|
1,045
|
|
|
984
|
|
|
1,045
|
|
|
968
|
|
|
||||
Operating cash flows
l
|
$
|
1,386
|
|
|
$
|
1,034
|
|
|
$
|
2,587
|
|
|
$
|
1,865
|
|
|
Capital expenditures
|
$
|
1,950
|
|
|
$
|
1,173
|
|
|
$
|
3,562
|
|
|
$
|
1,978
|
|
|
At June 30:
|
|
|
|
|
|
|
|
|
||||||||
Cash and cash equivalents
|
$
|
1,458
|
|
|
$
|
3,294
|
|
|
$
|
1,458
|
|
|
$
|
3,294
|
|
|
Total debt, including current portion
|
$
|
20,296
|
|
|
$
|
21,215
|
|
|
$
|
20,296
|
|
|
$
|
21,215
|
|
|
|
|
|
|
|
|
|
|
|
a.
|
Reflects the results of FM O&G beginning June 1, 2013.
|
|
Three Months Ended
|
|
Six Months Ended
|
|
||||||||||||
|
June 30,
|
|
June 30,
|
|
||||||||||||
Revenues
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
||||||||
North America copper mines
|
$
|
1,469
|
|
|
$
|
1,309
|
|
|
$
|
2,755
|
|
|
$
|
2,694
|
|
|
South America mining
|
1,031
|
|
|
951
|
|
|
1,929
|
|
|
1,965
|
|
|
||||
Indonesia mining
|
523
|
|
|
591
|
|
|
993
|
|
|
1,522
|
|
|
||||
Africa mining
|
418
|
|
|
365
|
|
|
745
|
|
|
803
|
|
|
||||
Molybdenum mines
|
170
|
|
|
144
|
|
|
296
|
|
|
287
|
|
|
||||
Rod & Refining
|
1,242
|
|
|
1,272
|
|
|
2,396
|
|
|
2,609
|
|
|
||||
Atlantic Copper Smelting & Refining
|
629
|
|
|
587
|
|
|
1,222
|
|
|
1,226
|
|
|
||||
U.S. oil & gas operations
|
1,236
|
|
|
336
|
|
|
2,497
|
|
|
336
|
|
|
||||
Other mining, corporate, other & eliminations
|
(1,196
|
)
|
|
(1,267
|
)
|
|
(2,326
|
)
|
|
(2,571
|
)
|
|
||||
Total FCX revenues
|
$
|
5,522
|
|
|
$
|
4,288
|
|
|
$
|
10,507
|
|
|
$
|
8,871
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Operating income (loss)
|
|
|
|
|
|
|
|
|
||||||||
North America copper mines
|
$
|
468
|
|
|
$
|
347
|
|
|
$
|
858
|
|
|
$
|
834
|
|
|
South America mining
|
404
|
|
|
347
|
|
|
737
|
|
|
814
|
|
|
||||
Indonesia mining
|
(67
|
)
|
|
(57
|
)
|
|
(49
|
)
|
|
230
|
|
|
||||
Africa mining
|
154
|
|
|
120
|
|
|
275
|
|
|
312
|
|
|
||||
Molybdenum mines
|
65
|
|
|
45
|
|
|
93
|
|
|
88
|
|
|
||||
Rod & Refining
|
6
|
|
|
8
|
|
|
10
|
|
|
14
|
|
|
||||
Atlantic Copper Smelting & Refining
|
(4
|
)
|
|
(4
|
)
|
|
(13
|
)
|
|
(8
|
)
|
|
||||
U.S. oil & gas operations
|
232
|
|
|
64
|
|
|
509
|
|
|
64
|
|
|
||||
Other mining, corporate, other & eliminations
|
(105
|
)
|
|
(231
|
)
|
|
(156
|
)
|
|
(354
|
)
|
|
||||
Total FCX operating income
|
$
|
1,153
|
|
|
$
|
639
|
|
|
$
|
2,264
|
|
|
$
|
1,994
|
|
|
c.
|
Includes favorable (unfavorable) adjustments to provisionally priced concentrate and cathode sales recognized in prior periods totaling
$35 million
(
$16 million
to net income attributable to common stockholders or
$0.01
per share) for
second-quarter
2014
,
$(117) million
(
$(55) million
to net income attributable to common stockholders or
$(0.06)
per share) for
second-quarter
2013
,
$(118) million
(
$(65) million
to net income attributable to common stockholders or
$(0.06)
per share) for the
first six months of
2014
and
$(26) million
(
$(12) million
to net income attributable to common stockholders or
$(0.01)
per share) for the
first six months of
2013
. Refer to “Revenues” for further discussion.
|
d.
|
Includes net noncash mark-to-market (losses) gains associated with crude oil and natural gas derivative contracts totaling
$(7) million
(
$(4) million
to net income attributable to common stockholders or less than
$(0.01)
per share) for
second-quarter
2014
,
$8 million
(
$5 million
to net income attributable to common stockholders or less than
$0.01
per share) for the
first six months of
2014
, and
$(36) million
(
$(23) million
to net income attributable to common stockholders or
$(0.02)
per share) for June 2013. Refer to "Revenues" for further discussion.
|
e.
|
Includes fixed costs charged directly to cost of sales as a result of the impact of export restrictions on PT-FI's operating rates totaling
$56 million
(
$30 million
to net income attributable to common stockholders or
$0.03
per share) for
second-
|
f.
|
Includes net charges for adjustments to environmental obligations and related litigation reserves of
$69 million
(
$68 million
to net income attributable to common stockholders or
$0.06
per share) for the second quarter and first six months of 2014,
$3 million
(
$2 million
to net income attributable to common stockholders or less than
$0.01
per share) for
second-quarter
2013
and
$7 million
(
$7 million
to net income attributable to common stockholders or
$0.01
per share) for the
first six months of
2013
.
|
g.
|
Includes charges of $61 million ($46 million to net income attributable to common stockholders or $0.05 per share) for second-quarter 2013 and $75 million ($57 million to net income attributable to common stockholders or $0.06 per share) for the first six months of 2013 for transaction and related costs principally associated with the second-quarter 2013 oil and gas acquisitions.
|
h.
|
We defer recognizing profits on intercompany sales until final sales to third parties occur. Refer to "Operations - Smelting & Refining" for a summary of net impacts from changes in these deferrals.
|
i.
|
Includes a charge of
$58 million
to net income attributable to common stockholders, or
$0.06
per share, associated with deferred taxes recorded in connection with the allocation of goodwill to the sale of Eagle Ford.
|
j.
|
Includes net gains (losses) on early extinguishment of debt totaling
$5 million
(
$4 million
to net income attributable to common stockholders or less than
$0.01
per share) in the second quarter and
first six months of
2014
primarily related to the redemption of senior notes and
$(45) million
(
$(39) million
to net income attributable to common stockholders (
$(0.04)
per share) for
first six months of
2013
related to the termination of the acquisition bridge loan facilities.
|
k.
|
Includes gains associated with the oil and gas acquisitions, including $128 million to net income attributable to common stockholders or $0.13 per share, primarily related to our preferred stock investment in and the subsequent acquisition of McMoRan Exploration Co., and $183 million to net income attributable to common stockholders or $0.19 per share, associated with net reductions in our deferred tax liabilities and deferred tax asset valuation allowances.
|
l.
|
Includes net working capital (uses) sources and changes in other tax payments of
$(364) million
for
second-quarter
2014
,
$235 million
for
second-quarter
2013
,
$(777) million
for the
first six months of
2014
and
$(195) million
for the
first six months of
2013
.
|
|
Three Months Ended
|
|
Six Months Ended
|
|
||||||||||||
|
June 30,
|
|
June 30,
|
|
||||||||||||
|
2014
|
|
2013
a
|
|
2014
|
|
2013
a
|
|
||||||||
SUMMARY OPERATING DATA
|
|
|
|
|
|
|
||||||||||
Copper
(recoverable)
|
|
|
|
|
|
|
|
|
||||||||
Production (millions of pounds)
|
931
|
|
|
909
|
|
|
1,879
|
|
|
1,889
|
|
|
||||
Sales, excluding purchases (millions of pounds)
|
968
|
|
|
951
|
|
|
1,839
|
|
|
1,905
|
|
|
||||
Average realized price per pound
|
$
|
3.16
|
|
|
$
|
3.17
|
|
|
$
|
3.17
|
|
|
$
|
3.29
|
|
|
Site production and delivery costs per pound
b
|
$
|
1.99
|
|
|
$
|
2.11
|
|
|
$
|
1.94
|
|
|
$
|
2.02
|
|
|
Unit net cash costs per pound
b
|
$
|
1.72
|
|
|
$
|
1.85
|
|
|
$
|
1.64
|
|
|
$
|
1.71
|
|
|
Gold
(recoverable)
|
|
|
|
|
|
|
|
|
||||||||
Production (thousands of ounces)
|
166
|
|
|
151
|
|
|
397
|
|
|
386
|
|
|
||||
Sales, excluding purchases (thousands of ounces)
|
159
|
|
|
173
|
|
|
346
|
|
|
387
|
|
|
||||
Average realized price per ounce
|
$
|
1,296
|
|
|
$
|
1,322
|
|
|
$
|
1,299
|
|
|
$
|
1,434
|
|
|
Molybdenum
(recoverable)
|
|
|
|
|
|
|
|
|
||||||||
Production (millions of pounds)
|
25
|
|
|
24
|
|
|
49
|
|
|
46
|
|
|
||||
Sales, excluding purchases (millions of pounds)
|
25
|
|
|
23
|
|
|
52
|
|
|
48
|
|
|
||||
Average realized price per pound
|
$
|
13.43
|
|
|
$
|
12.35
|
|
|
$
|
12.27
|
|
|
$
|
12.56
|
|
|
Oil Equivalents
|
|
|
|
|
|
|
|
|
||||||||
Sales volumes:
|
|
|
|
|
|
|
|
|
||||||||
MMBOE
|
16.0
|
|
|
5.0
|
|
|
32.2
|
|
|
5.0
|
|
|
||||
Thousand BOE (MBOE) per day
|
176
|
|
|
169
|
|
|
178
|
|
|
169
|
|
|
||||
Cash operating margin per BOE:
c
|
|
|
|
|
|
|
|
|
||||||||
Realized revenues
|
$
|
77.53
|
|
|
$
|
74.37
|
|
|
$
|
77.37
|
|
|
$
|
74.37
|
|
|
Cash production costs
|
19.57
|
|
|
16.58
|
|
|
19.03
|
|
|
16.58
|
|
|
||||
Cash operating margin
|
$
|
57.96
|
|
|
$
|
57.79
|
|
|
$
|
58.34
|
|
|
$
|
57.79
|
|
|
a.
|
Reflects the results of FM O&G beginning June 1, 2013.
|
b.
|
Reflects per pound weighted-average production and delivery costs and unit net cash costs (net of by-product credits) for all copper mines, excluding net noncash and other costs. Site production and delivery and unit net cash costs exclude
$0.06
per pound of copper for the second quarter and
first six months of
2014
for fixed costs charged directly to cost of sales as a
|
c.
|
Cash operating margin for oil and gas operations reflects realized revenues less cash production costs. Realized revenues exclude noncash mark-to-market adjustments on derivative contracts, and 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 our consolidated financial statements, refer to "Product Revenues and Production Costs."
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||
|
|
|
|
||||
Consolidated revenues - 2013 periods
|
$
|
4,288
|
|
|
$
|
8,871
|
|
Mining operations:
|
|
|
|
||||
Higher (lower) sales volumes from mining operations:
|
|
|
|
||||
Copper
|
54
|
|
|
(219
|
)
|
||
Gold
|
(17
|
)
|
|
(59
|
)
|
||
Molybdenum
|
20
|
|
|
47
|
|
||
(Lower) higher price realizations from mining operations:
|
|
|
|
||||
Copper
|
(10
|
)
|
|
(221
|
)
|
||
Gold
|
(4
|
)
|
|
(47
|
)
|
||
Molybdenum
|
27
|
|
|
(15
|
)
|
||
Favorable (unfavorable) impact of net adjustments for prior period provisionally priced copper sales for mining operations
|
152
|
|
|
(92
|
)
|
||
Higher (lower) Atlantic Copper revenues
|
42
|
|
|
(4
|
)
|
||
Lower revenues from purchased copper
|
(68
|
)
|
|
(135
|
)
|
||
Other, including intercompany eliminations
|
138
|
|
|
220
|
|
||
Oil and gas operations:
|
|
|
|
||||
Oil and gas revenues, including realized cash losses on derivative contracts
|
871
|
|
|
2,117
|
|
||
Net noncash mark-to-market adjustments on crude oil and natural gas derivative contracts
|
29
|
|
|
44
|
|
||
Consolidated revenues - 2014 periods
|
$
|
5,522
|
|
|
$
|
10,507
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
June 30,
|
|
June 30,
|
||||||||||||
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||||||
Copper (per pound)
|
$
|
3.16
|
|
|
$
|
3.17
|
|
|
$
|
3.17
|
|
|
$
|
3.29
|
|
Gold (per ounce)
|
$
|
1,296
|
|
|
$
|
1,322
|
|
|
$
|
1,299
|
|
|
$
|
1,434
|
|
Molybdenum (per pound)
|
$
|
13.43
|
|
|
$
|
12.35
|
|
|
$
|
12.27
|
|
|
$
|
12.56
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
June 30,
|
|
June 30,
|
||||||||||||
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||||||
Revenues
|
$
|
35
|
|
|
$
|
(117
|
)
|
|
$
|
(118
|
)
|
|
$
|
(26
|
)
|
Net income attributable to common stockholders
|
$
|
16
|
|
|
$
|
(55
|
)
|
|
$
|
(65
|
)
|
|
$
|
(12
|
)
|
Net income per share attributable to common stockholders
|
$
|
0.01
|
|
|
$
|
(0.06
|
)
|
|
$
|
(0.06
|
)
|
|
$
|
(0.01
|
)
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
June 30,
|
|
June 30,
|
||||||||||||
|
2014
|
|
2013
a
|
|
2014
|
|
2013
a
|
||||||||
Revenues
|
$
|
(7
|
)
|
|
$
|
(36
|
)
|
|
$
|
8
|
|
|
$
|
(36
|
)
|
Net income attributable to common stockholders
|
$
|
(4
|
)
|
|
$
|
(23
|
)
|
|
$
|
5
|
|
|
$
|
(23
|
)
|
Net income per share attributable to common stockholders
|
$
|
—
|
|
|
$
|
(0.02
|
)
|
|
$
|
—
|
|
|
$
|
(0.02
|
)
|
a.
|
Reflects the results of FM O&G beginning June 1, 2013.
|
|
Six Months Ended
|
|
Six Months Ended
|
|
||||||||||||||||
|
June 30, 2014
|
|
June 30, 2013
|
|
||||||||||||||||
|
Income
(Loss)
a
|
|
Effective
Tax Rate
|
|
Income Tax
(Provision)
Benefit
|
|
Income
(Loss)
a
|
|
Effective
Tax Rate
|
|
Income Tax
(Provision) Benefit |
|
||||||||
U.S.
|
$
|
936
|
|
|
31%
|
|
$
|
(291
|
)
|
b
|
$
|
578
|
|
|
28%
|
|
$
|
(160
|
)
|
|
South America
|
747
|
|
|
36%
|
|
(267
|
)
|
|
784
|
|
|
35%
|
|
(278
|
)
|
|
||||
Indonesia
|
(39
|
)
|
|
38%
|
|
15
|
|
|
213
|
|
|
54%
|
|
(116
|
)
|
c
|
||||
Africa
|
187
|
|
|
30%
|
|
(57
|
)
|
|
210
|
|
|
31%
|
|
(66
|
)
|
|
||||
Eliminations and other
|
138
|
|
|
N/A
|
|
(37
|
)
|
|
113
|
|
|
N/A
|
|
(18
|
)
|
|
||||
Annualized rate adjustment
d
|
—
|
|
|
N/A
|
|
(48
|
)
|
|
—
|
|
|
N/A
|
|
(13
|
)
|
|
||||
|
1,969
|
|
|
35%
|
|
(685
|
)
|
|
1,898
|
|
|
34%
|
|
(651
|
)
|
|
||||
Adjustments
|
—
|
|
|
N/A
|
|
—
|
|
|
—
|
|
|
N/A
|
|
183
|
|
e
|
||||
Consolidated FCX
|
$
|
1,969
|
|
|
35%
|
f
|
$
|
(685
|
)
|
|
$
|
1,898
|
|
|
25%
|
|
$
|
(468
|
)
|
|
a.
|
Represents income (loss) by geographic location before income taxes and equity in affiliated companies’ net earnings.
|
b.
|
Includes a
$58 million
charge for deferred taxes recorded in connection with the allocation of goodwill to the sale of Eagle Ford.
|
c.
|
Includes an $18 million charge to reflect increases in tax reserves related to prior periods.
|
d.
|
In accordance with applicable accounting rules, we adjust our interim provision for income taxes equal to our estimated annualized tax rate.
|
e.
|
Reflects net reductions in our deferred tax liabilities and deferred tax asset valuation allowances resulting from the oil and gas acquisitions.
|
f.
|
Our consolidated effective income tax rate is a function of the combined effective tax rates for the jurisdictions in which we conduct operations. Accordingly, variations in the relative proportions of jurisdictional income result in fluctuations to our consolidated effective income tax rate. Assuming average prices of
$3.25
per pound for copper,
$1,300
per ounce for gold,
$12
per pound for molybdenum and Brent crude oil of
$110
per barrel for
the second half of
2014
and achievement of current sales volume and cost estimates, we estimate that our consolidated effective tax rate will approximate
34 percent
for the year
2014
.
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
June 30,
|
|
June 30,
|
||||||||||||
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||||||
Operating Data, Net of Joint Venture Interest
|
|
|
|
|
|
|
|
||||||||
Copper
(recoverable)
|
|
|
|
|
|
|
|
||||||||
Production (millions of pounds)
|
395
|
|
|
349
|
|
|
780
|
|
|
692
|
|
||||
Sales, excluding purchases (millions of pounds)
|
423
|
|
|
372
|
|
|
794
|
|
|
725
|
|
||||
Average realized price per pound
|
$
|
3.16
|
|
|
$
|
3.25
|
|
|
$
|
3.21
|
|
|
$
|
3.41
|
|
|
|
|
|
|
|
|
|
||||||||
Molybdenum
(millions of recoverable pounds)
|
|
|
|
|
|
|
|
||||||||
Production
a
|
9
|
|
|
9
|
|
|
17
|
|
|
17
|
|
||||
|
|
|
|
|
|
|
|
||||||||
100% Operating Data
|
|
|
|
|
|
|
|
||||||||
SX/EW operations
|
|
|
|
|
|
|
|
||||||||
Leach ore placed in stockpiles (metric tons per day)
|
1,044,500
|
|
|
1,053,000
|
|
|
1,014,000
|
|
|
1,026,700
|
|
||||
Average copper ore grade (percent)
|
0.25
|
|
|
0.22
|
|
|
0.25
|
|
|
0.22
|
|
||||
Copper production (millions of recoverable pounds)
|
234
|
|
|
226
|
|
|
463
|
|
|
435
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Mill operations
|
|
|
|
|
|
|
|
||||||||
Ore milled (metric tons per day)
|
260,100
|
|
|
240,900
|
|
|
257,700
|
|
|
245,700
|
|
||||
Average ore grade (percent):
|
|
|
|
|
|
|
|
||||||||
Copper
|
0.44
|
|
|
0.38
|
|
|
0.43
|
|
|
0.39
|
|
||||
Molybdenum
|
0.03
|
|
|
0.03
|
|
|
0.03
|
|
|
0.03
|
|
||||
Copper recovery rate (percent)
|
82.8
|
|
|
82.4
|
|
|
84.4
|
|
|
83.4
|
|
||||
Copper production (millions of recoverable pounds)
|
188
|
|
|
148
|
|
|
370
|
|
|
306
|
|
a.
|
Refer to "Consolidated Results" for our consolidated molybdenum sales volumes, which include sales of molybdenum produced at the North America copper mines.
|
|
Three Months Ended
|
|
Three Months Ended
|
|
||||||||||||||||||||
|
June 30, 2014
|
|
June 30, 2013
|
|
||||||||||||||||||||
|
By- Product Method
|
|
Co-Product Method
|
|
By- Product Method
|
|
Co-Product Method
|
|
||||||||||||||||
|
|
Copper
|
|
Molyb-
denum
a
|
|
|
Copper
|
|
Molyb-
denum a |
|
||||||||||||||
Revenues, excluding adjustments
|
$
|
3.16
|
|
|
$
|
3.16
|
|
|
$
|
12.26
|
|
|
$
|
3.25
|
|
|
$
|
3.25
|
|
|
$
|
11.17
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Site production and delivery, before net noncash and other costs shown below
|
1.87
|
|
|
1.83
|
|
|
2.63
|
|
|
2.09
|
|
|
2.01
|
|
|
4.63
|
|
|
||||||
By-product credits
|
(0.28
|
)
|
|
—
|
|
|
—
|
|
|
(0.25
|
)
|
|
—
|
|
|
—
|
|
|
||||||
Treatment charges
|
0.11
|
|
|
0.11
|
|
|
—
|
|
|
0.08
|
|
|
0.08
|
|
|
—
|
|
|
||||||
Unit net cash costs
|
1.70
|
|
|
1.94
|
|
|
2.63
|
|
|
1.92
|
|
|
2.09
|
|
|
4.63
|
|
|
||||||
Depreciation, depletion and amortization
|
0.30
|
|
|
0.29
|
|
|
0.19
|
|
|
0.28
|
|
|
0.27
|
|
|
0.30
|
|
|
||||||
Noncash and other costs, net
|
0.07
|
|
|
0.06
|
|
|
0.03
|
|
|
0.08
|
|
|
0.08
|
|
|
0.04
|
|
|
||||||
Total unit costs
|
2.07
|
|
|
2.29
|
|
|
2.85
|
|
|
2.28
|
|
|
2.44
|
|
|
4.97
|
|
|
||||||
Revenue adjustments, primarily for pricing on prior period open sales
|
0.02
|
|
|
0.02
|
|
|
—
|
|
|
(0.04
|
)
|
|
(0.04
|
)
|
|
—
|
|
|
||||||
Gross profit per pound
|
$
|
1.11
|
|
|
$
|
0.89
|
|
|
$
|
9.41
|
|
|
$
|
0.93
|
|
|
$
|
0.77
|
|
|
$
|
6.20
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Copper sales (millions of recoverable pounds)
|
421
|
|
|
421
|
|
|
|
|
370
|
|
|
370
|
|
|
|
|
||||||||
Molybdenum sales (millions of recoverable pounds)
a
|
|
|
|
|
9
|
|
|
|
|
|
|
9
|
|
|
a.
|
Reflects sales of molybdenum produced by certain of the North America copper mines to our molybdenum sales company at market-based pricing.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Six Months Ended
|
|
Six Months Ended
|
|
||||||||||||||||||||
|
June 30, 2014
|
|
June 30, 2013
|
|
||||||||||||||||||||
|
By- Product Method
|
|
Co-Product Method
|
|
By- Product Method
|
|
Co-Product Method
|
|
||||||||||||||||
|
|
Copper
|
|
Molyb-
denum
|
|
|
Copper
|
|
Molyb-
denum
|
|
||||||||||||||
Revenues, excluding adjustments
|
$
|
3.21
|
|
|
$
|
3.21
|
|
|
$
|
11.19
|
|
a
|
$
|
3.41
|
|
|
$
|
3.41
|
|
|
$
|
11.45
|
|
a
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Site production and delivery, before net noncash and other costs shown below
|
1.87
|
|
|
1.84
|
|
|
2.56
|
|
|
2.04
|
|
|
1.98
|
|
|
3.98
|
|
|
||||||
By-product credits
|
(0.25
|
)
|
|
—
|
|
|
—
|
|
|
(0.26
|
)
|
|
—
|
|
|
—
|
|
|
||||||
Treatment charges
|
0.12
|
|
|
0.12
|
|
|
—
|
|
|
0.11
|
|
|
0.10
|
|
|
—
|
|
|
||||||
Unit net cash costs
|
1.74
|
|
|
1.96
|
|
|
2.56
|
|
|
1.89
|
|
|
2.08
|
|
|
3.98
|
|
|
||||||
Depreciation, depletion and amortization
|
0.29
|
|
|
0.28
|
|
|
0.14
|
|
|
0.28
|
|
|
0.27
|
|
|
0.26
|
|
|
||||||
Noncash and other costs, net
|
0.08
|
|
|
0.08
|
|
|
0.03
|
|
|
0.08
|
|
|
0.08
|
|
|
0.04
|
|
|
||||||
Total unit costs
|
2.11
|
|
|
2.32
|
|
|
2.73
|
|
|
2.25
|
|
|
2.43
|
|
|
4.28
|
|
|
||||||
Revenue adjustments, primarily for pricing on prior period open sales
|
(0.01
|
)
|
|
(0.01
|
)
|
|
—
|
|
|
(0.01
|
)
|
|
(0.01
|
)
|
|
—
|
|
|
||||||
Gross profit per pound
|
$
|
1.09
|
|
|
$
|
0.88
|
|
|
$
|
8.46
|
|
|
$
|
1.15
|
|
|
$
|
0.97
|
|
|
$
|
7.17
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Copper sales (millions of recoverable pounds)
|
790
|
|
|
790
|
|
|
|
|
722
|
|
|
722
|
|
|
|
|
||||||||
Molybdenum sales (millions of recoverable pounds)
a
|
|
|
|
|
17
|
|
|
|
|
|
17
|
|
|
a.
|
Reflects sales of molybdenum produced by certain of the North America copper mines to our molybdenum sales company at market-based pricing.
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
June 30,
|
|
June 30,
|
||||||||||||
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||||||
Copper
(recoverable)
|
|
|
|
|
|
|
|
||||||||
Production (millions of pounds)
|
300
|
|
|
299
|
|
|
614
|
|
|
597
|
|
||||
Sales (millions of pounds)
|
310
|
|
|
315
|
|
|
617
|
|
|
600
|
|
||||
Average realized price per pound
|
$
|
3.17
|
|
|
$
|
3.13
|
|
|
$
|
3.16
|
|
|
$
|
3.22
|
|
|
|
|
|
|
|
|
|
||||||||
Gold
(recoverable)
|
|
|
|
|
|
|
|
||||||||
Production (thousands of ounces)
|
21
|
|
|
19
|
|
|
42
|
|
|
40
|
|
||||
Sales (thousands of ounces)
|
20
|
|
|
21
|
|
|
43
|
|
|
42
|
|
||||
Average realized price per ounce
|
$
|
1,302
|
|
|
$
|
1,317
|
|
|
$
|
1,302
|
|
|
$
|
1,449
|
|
|
|
|
|
|
|
|
|
||||||||
Molybdenum
(millions of recoverable pounds)
|
|
|
|
|
|
|
|
||||||||
Production
a
|
2
|
|
|
2
|
|
|
5
|
|
|
4
|
|
||||
|
|
|
|
|
|
|
|
||||||||
SX/EW operations
|
|
|
|
|
|
|
|
||||||||
Leach ore placed in stockpiles (metric tons per day)
|
281,700
|
|
|
279,100
|
|
|
284,200
|
|
|
271,000
|
|
||||
Average copper ore grade (percent)
|
0.52
|
|
|
0.50
|
|
|
0.51
|
|
|
0.50
|
|
||||
Copper production (millions of recoverable pounds)
|
125
|
|
|
110
|
|
|
248
|
|
|
219
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Mill operations
|
|
|
|
|
|
|
|
||||||||
Ore milled (metric tons per day)
|
182,200
|
|
|
194,600
|
|
|
185,500
|
|
|
191,600
|
|
||||
Average ore grade:
|
|
|
|
|
|
|
|
||||||||
Copper (percent)
|
0.56
|
|
|
0.56
|
|
|
0.58
|
|
|
0.57
|
|
||||
Gold (grams per metric ton)
|
0.11
|
|
|
0.09
|
|
|
0.11
|
|
|
0.10
|
|
||||
Molybdenum (percent)
|
0.02
|
|
|
0.02
|
|
|
0.02
|
|
|
0.02
|
|
||||
Copper recovery rate (percent)
|
88.7
|
|
|
89.8
|
|
|
89.4
|
|
|
90.3
|
|
||||
Copper production (millions of recoverable pounds)
|
175
|
|
|
189
|
|
|
366
|
|
|
378
|
|
a.
|
Refer to "Consolidated Results" for our consolidated molybdenum sales volumes, which include sales of molybdenum produced at Cerro Verde.
|
|
Three Months Ended
|
|
Three Months Ended
|
||||||||||||
|
June 30, 2014
|
|
June 30, 2013
|
||||||||||||
|
By-Product
Method
|
|
Co-Product
Method
|
|
By-Product
Method
|
|
Co-Product
Method
|
||||||||
Revenues, excluding adjustments
|
$
|
3.17
|
|
|
$
|
3.17
|
|
|
$
|
3.13
|
|
|
$
|
3.13
|
|
|
|
|
|
|
|
|
|
||||||||
Site production and delivery, before net noncash and other costs shown below
|
1.64
|
|
|
1.52
|
|
|
1.62
|
|
|
1.50
|
|
||||
By-product credits
|
(0.23
|
)
|
|
—
|
|
|
(0.24
|
)
|
|
—
|
|
||||
Treatment charges
|
0.18
|
|
|
0.18
|
|
|
0.16
|
|
|
0.16
|
|
||||
Royalty on metals
a
|
0.01
|
|
|
0.01
|
|
|
—
|
|
|
—
|
|
||||
Unit net cash costs
|
1.60
|
|
|
1.71
|
|
|
1.54
|
|
|
1.66
|
|
||||
Depreciation, depletion and amortization
|
0.30
|
|
|
0.29
|
|
|
0.27
|
|
|
0.25
|
|
||||
Noncash and other costs (credits), net
|
0.08
|
|
|
0.09
|
|
|
0.02
|
|
|
(0.01
|
)
|
||||
Total unit costs
|
1.98
|
|
|
2.09
|
|
|
1.83
|
|
|
1.90
|
|
||||
Revenue adjustments, primarily for pricing on prior period open sales
|
0.10
|
|
|
0.10
|
|
|
(0.21
|
)
|
|
(0.21
|
)
|
||||
Gross profit per pound
|
$
|
1.29
|
|
|
$
|
1.18
|
|
|
$
|
1.09
|
|
|
$
|
1.02
|
|
|
|
|
|
|
|
|
|
||||||||
Copper sales (millions of recoverable pounds)
|
310
|
|
|
310
|
|
|
315
|
|
|
315
|
|
|
|
|
|
|
|
|
|
||||||||
|
Six Months Ended
|
|
Six Months Ended
|
||||||||||||
|
June 30, 2014
|
|
June 30, 2013
|
||||||||||||
|
By-Product
Method
|
|
Co-Product
Method
|
|
By-Product
Method
|
|
Co-Product
Method
|
||||||||
Revenues, excluding adjustments
|
$
|
3.16
|
|
|
$
|
3.16
|
|
|
$
|
3.22
|
|
|
$
|
3.22
|
|
|
|
|
|
|
|
|
|
||||||||
Site production and delivery, before net noncash and other costs shown below
|
1.57
|
|
|
1.46
|
|
|
1.62
|
|
|
1.50
|
|
||||
By-product credits
|
(0.24
|
)
|
|
—
|
|
|
(0.26
|
)
|
|
—
|
|
||||
Treatment charges
|
0.18
|
|
|
0.18
|
|
|
0.17
|
|
|
0.16
|
|
||||
Royalty on metals
a
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Unit net cash costs
|
1.51
|
|
|
1.64
|
|
|
1.53
|
|
|
1.66
|
|
||||
Depreciation, depletion and amortization
|
0.29
|
|
|
0.28
|
|
|
0.26
|
|
|
0.25
|
|
||||
Noncash and other costs, net
|
0.07
|
|
|
0.07
|
|
|
0.04
|
|
|
0.01
|
|
||||
Total unit costs
|
1.87
|
|
|
1.99
|
|
|
1.83
|
|
|
1.92
|
|
||||
Revenue adjustments, primarily for pricing on prior period open sales
|
(0.11
|
)
|
|
(0.11
|
)
|
|
(0.05
|
)
|
|
(0.05
|
)
|
||||
Gross profit per pound
|
$
|
1.18
|
|
|
$
|
1.06
|
|
|
$
|
1.34
|
|
|
$
|
1.25
|
|
|
|
|
|
|
|
|
|
||||||||
Copper sales (millions of recoverable pounds)
|
617
|
|
|
617
|
|
|
600
|
|
|
600
|
|
a.
|
Represents royalties under Cerro Verde's current stability agreement.
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
June 30,
|
|
June 30,
|
||||||||||||
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||||||
Operating Data, Net of Joint Venture Interest
|
|
|
|
|
|
|
|
||||||||
Copper
(recoverable)
|
|
|
|
|
|
|
|
||||||||
Production (millions of pounds)
|
122
|
|
|
139
|
|
|
262
|
|
|
358
|
|
||||
Sales (millions of pounds)
|
117
|
|
|
158
|
|
|
226
|
|
|
356
|
|
||||
Average realized price per pound
|
$
|
3.19
|
|
|
$
|
3.08
|
|
|
$
|
3.15
|
|
|
$
|
3.20
|
|
|
|
|
|
|
|
|
|
||||||||
Gold
(recoverable)
|
|
|
|
|
|
|
|
||||||||
Production (thousands of ounces)
|
142
|
|
|
131
|
|
|
350
|
|
|
343
|
|
||||
Sales (thousands of ounces)
|
135
|
|
|
151
|
|
|
297
|
|
|
342
|
|
||||
Average realized price per ounce
|
$
|
1,294
|
|
|
$
|
1,321
|
|
|
$
|
1,299
|
|
|
$
|
1,431
|
|
|
|
|
|
|
|
|
|
||||||||
100% Operating Data
|
|
|
|
|
|
|
|
||||||||
Ore milled (metric tons per day):
a
|
|
|
|
|
|
|
|
||||||||
Grasberg open pit
|
50,700
|
|
|
81,800
|
|
|
58,200
|
|
|
109,500
|
|
||||
DOZ underground mine
b
|
50,500
|
|
|
31,100
|
|
|
50,400
|
|
|
44,900
|
|
||||
Big Gossan underground mine
c
|
1,700
|
|
|
1,400
|
|
|
1,800
|
|
|
2,200
|
|
||||
Total
|
102,900
|
|
|
114,300
|
|
|
110,400
|
|
|
156,600
|
|
||||
Average ore grades:
|
|
|
|
|
|
|
|
||||||||
Copper (percent)
|
0.73
|
|
|
0.73
|
|
|
0.72
|
|
|
0.69
|
|
||||
Gold (grams per metric ton)
|
0.65
|
|
|
0.53
|
|
|
0.72
|
|
|
0.53
|
|
||||
Recovery rates (percent):
|
|
|
|
|
|
|
|
||||||||
Copper
|
89.0
|
|
|
89.0
|
|
|
88.7
|
|
|
88.7
|
|
||||
Gold
|
76.3
|
|
|
75.4
|
|
|
78.1
|
|
|
73.1
|
|
||||
Production (recoverable):
|
|
|
|
|
|
|
|
||||||||
Copper (millions of pounds)
|
125
|
|
|
139
|
|
|
269
|
|
|
358
|
|
||||
Gold (thousands of ounces)
|
142
|
|
|
131
|
|
|
351
|
|
|
343
|
|
a.
|
Amounts represent the approximate average daily throughput processed at PT-FI’s mill facilities from each producing mine.
|
b.
|
Production from the DOZ underground mine is expected to ramp up to the design rate of 80,000 metric tons of ore per day in second-quarter 2015.
|
c.
|
Production from the Big Gossan underground mine is expected to ramp up to 7,000 metric tons of ore per day in 2017.
|
|
Three Months Ended
|
|
Three Months Ended
|
||||||||||||||||||||
|
June 30, 2014
|
|
June 30, 2013
|
||||||||||||||||||||
|
By-Product Method
|
|
Co-Product Method
|
|
By-Product Method
|
|
Co-Product Method
|
||||||||||||||||
|
|
Copper
|
|
Gold
|
|
|
Copper
|
|
Gold
|
||||||||||||||
Revenues, excluding adjustments
|
$
|
3.19
|
|
|
$
|
3.19
|
|
|
$
|
1,294
|
|
|
$
|
3.08
|
|
|
$
|
3.08
|
|
|
$
|
1,321
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Site production and delivery, before net noncash and other costs shown below
|
3.86
|
|
|
2.59
|
|
|
1,050
|
|
|
3.55
|
|
|
2.49
|
|
|
1,066
|
|
||||||
Gold and silver credits
|
(1.57
|
)
|
|
—
|
|
|
—
|
|
|
(1.20
|
)
|
|
—
|
|
|
—
|
|
||||||
Treatment charges
|
0.26
|
|
|
0.17
|
|
|
70
|
|
|
0.23
|
|
|
0.16
|
|
|
69
|
|
||||||
Royalty on metals
|
0.11
|
|
|
0.08
|
|
|
31
|
|
|
0.13
|
|
|
0.09
|
|
|
39
|
|
||||||
Unit net cash costs
|
2.66
|
|
|
2.84
|
|
|
1,151
|
|
|
2.71
|
|
|
2.74
|
|
|
1,174
|
|
||||||
Depreciation and amortization
|
0.47
|
|
|
0.31
|
|
|
127
|
|
|
0.37
|
|
|
0.26
|
|
|
111
|
|
||||||
Noncash and other costs, net
|
0.55
|
|
a
|
0.37
|
|
|
151
|
|
|
0.22
|
|
|
0.15
|
|
|
67
|
|
||||||
Total unit costs
|
3.68
|
|
|
3.52
|
|
|
1,429
|
|
|
3.30
|
|
|
3.15
|
|
|
1,352
|
|
||||||
Revenue adjustments, primarily for pricing on prior period open sales
|
0.09
|
|
|
0.09
|
|
|
5
|
|
|
(0.18
|
)
|
|
(0.18
|
)
|
|
(110
|
)
|
||||||
PT Smelting intercompany profit
|
0.03
|
|
|
0.02
|
|
|
9
|
|
|
0.21
|
|
|
0.14
|
|
|
62
|
|
||||||
Gross loss per pound/ounce
|
$
|
(0.37
|
)
|
|
$
|
(0.22
|
)
|
|
$
|
(121
|
)
|
|
$
|
(0.19
|
)
|
|
$
|
(0.11
|
)
|
|
$
|
(79
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Copper sales (millions of recoverable pounds)
|
117
|
|
|
117
|
|
|
|
|
158
|
|
|
158
|
|
|
|
||||||||
Gold sales (thousands of recoverable ounces)
|
|
|
|
|
135
|
|
|
|
|
|
|
151
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Six Months Ended
|
|
Six Months Ended
|
||||||||||||||||||||
|
June 30, 2014
|
|
June 30, 2013
|
||||||||||||||||||||
|
By-Product Method
|
|
Co-Product Method
|
|
By-Product Method
|
|
Co-Product Method
|
||||||||||||||||
|
|
Copper
|
|
Gold
|
|
|
Copper
|
|
Gold
|
||||||||||||||
Revenues, excluding adjustments
|
$
|
3.15
|
|
|
$
|
3.15
|
|
|
$
|
1,299
|
|
|
$
|
3.20
|
|
|
$
|
3.20
|
|
|
$
|
1,431
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Site production and delivery, before net noncash and other costs shown below
|
3.60
|
|
|
2.31
|
|
|
950
|
|
|
3.03
|
|
|
2.08
|
|
|
934
|
|
||||||
Gold and silver credits
|
(1.85
|
)
|
|
—
|
|
|
—
|
|
|
(1.44
|
)
|
|
—
|
|
|
—
|
|
||||||
Treatment charges
|
0.25
|
|
|
0.16
|
|
|
65
|
|
|
0.23
|
|
|
0.16
|
|
|
70
|
|
||||||
Royalty on metals
|
0.12
|
|
|
0.07
|
|
|
31
|
|
|
0.13
|
|
|
0.09
|
|
|
41
|
|
||||||
Unit net cash costs
|
2.12
|
|
|
2.54
|
|
|
1,046
|
|
|
1.95
|
|
|
2.33
|
|
|
1,045
|
|
||||||
Depreciation and amortization
|
0.45
|
|
|
0.29
|
|
|
120
|
|
|
0.32
|
|
|
0.22
|
|
|
98
|
|
||||||
Noncash and other costs, net
|
0.61
|
|
a
|
0.39
|
|
|
161
|
|
|
0.24
|
|
|
0.17
|
|
|
76
|
|
||||||
Total unit costs
|
3.18
|
|
|
3.22
|
|
|
1,327
|
|
|
2.51
|
|
|
2.72
|
|
|
1,219
|
|
||||||
Revenue adjustments, primarily for pricing on prior period open sales
|
(0.24
|
)
|
|
(0.24
|
)
|
|
59
|
|
|
—
|
|
|
—
|
|
|
(4
|
)
|
||||||
PT Smelting intercompany profit
|
0.26
|
|
|
0.16
|
|
|
68
|
|
|
0.10
|
|
|
0.07
|
|
|
33
|
|
||||||
Gross (loss) profit per pound/ounce
|
$
|
(0.01
|
)
|
|
$
|
(0.15
|
)
|
|
$
|
99
|
|
|
$
|
0.79
|
|
|
$
|
0.55
|
|
|
$
|
241
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Copper sales (millions of recoverable pounds)
|
226
|
|
|
226
|
|
|
|
|
356
|
|
|
356
|
|
|
|
||||||||
Gold sales (thousands of recoverable ounces)
|
|
|
|
|
297
|
|
|
|
|
|
|
342
|
|
a.
|
Includes
$0.48
per pound of fixed costs charged directly to cost of sales as a result of the impact of export restrictions on PT-FI's operating rates.
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
June 30,
|
|
June 30,
|
||||||||||||
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||||||
Copper
(recoverable)
|
|
|
|
|
|
|
|
||||||||
Production (millions of pounds)
|
114
|
|
|
122
|
|
|
223
|
|
|
242
|
|
||||
Sales (millions of pounds)
|
118
|
|
|
106
|
|
|
202
|
|
|
224
|
|
||||
Average realized price per pound
a
|
$
|
3.08
|
|
|
$
|
3.10
|
|
|
$
|
3.08
|
|
|
$
|
3.22
|
|
|
|
|
|
|
|
|
|
||||||||
Cobalt
(contained)
|
|
|
|
|
|
|
|
||||||||
Production (millions of pounds)
|
7
|
|
|
5
|
|
|
14
|
|
|
11
|
|
||||
Sales (millions of pounds)
|
7
|
|
|
5
|
|
|
15
|
|
|
11
|
|
||||
Average realized price per pound
|
$
|
9.58
|
|
|
$
|
8.48
|
|
|
$
|
9.29
|
|
|
$
|
7.99
|
|
|
|
|
|
|
|
|
|
||||||||
Ore milled (metric tons per day)
|
15,200
|
|
|
15,000
|
|
|
14,800
|
|
|
14,800
|
|
||||
Average ore grades (percent):
|
|
|
|
|
|
|
|
||||||||
Copper
|
4.08
|
|
|
4.59
|
|
|
4.07
|
|
|
4.52
|
|
||||
Cobalt
|
0.34
|
|
|
0.31
|
|
|
0.33
|
|
|
0.32
|
|
||||
Copper recovery rate (percent)
|
92.7
|
|
|
89.9
|
|
|
93.7
|
|
|
91.7
|
|
a.
|
Includes point-of-sale transportation costs as negotiated in customer contracts.
|
|
Three Months Ended
|
|
Three Months Ended
|
||||||||||||||||||||
|
June 30, 2014
|
|
June 30, 2013
|
||||||||||||||||||||
|
By-Product Method
|
|
Co-Product Method
|
|
By-Product Method
|
|
Co-Product Method
|
||||||||||||||||
|
|
Copper
|
|
Cobalt
|
|
|
Copper
|
|
Cobalt
|
||||||||||||||
Revenues, excluding adjustments
a
|
$
|
3.08
|
|
|
$
|
3.08
|
|
|
$
|
9.58
|
|
|
$
|
3.10
|
|
|
$
|
3.10
|
|
|
$
|
8.48
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Site production and delivery, before net noncash and other costs shown below
|
1.46
|
|
|
1.35
|
|
|
5.22
|
|
|
1.47
|
|
|
1.37
|
|
|
4.92
|
|
||||||
Cobalt credits
b
|
(0.34
|
)
|
|
—
|
|
|
—
|
|
|
(0.30
|
)
|
|
—
|
|
|
—
|
|
||||||
Royalty on metals
|
0.06
|
|
|
0.06
|
|
|
0.15
|
|
|
0.06
|
|
|
0.05
|
|
|
0.15
|
|
||||||
Unit net cash costs
|
1.18
|
|
|
1.41
|
|
|
5.37
|
|
|
1.23
|
|
|
1.42
|
|
|
5.07
|
|
||||||
Depreciation, depletion and amortization
|
0.54
|
|
|
0.46
|
|
|
1.30
|
|
|
0.53
|
|
|
0.49
|
|
|
0.80
|
|
||||||
Noncash and other costs, net
|
0.03
|
|
|
0.03
|
|
|
0.08
|
|
|
0.11
|
|
|
0.10
|
|
|
0.17
|
|
||||||
Total unit costs
|
1.75
|
|
|
1.90
|
|
|
6.75
|
|
|
1.87
|
|
|
2.01
|
|
|
6.04
|
|
||||||
Revenue adjustments, primarily for pricing on prior period open sales
|
—
|
|
|
—
|
|
|
(0.19
|
)
|
|
(0.07
|
)
|
|
(0.07
|
)
|
|
0.27
|
|
||||||
Gross profit per pound
|
$
|
1.33
|
|
|
$
|
1.18
|
|
|
$
|
2.64
|
|
|
$
|
1.16
|
|
|
$
|
1.02
|
|
|
$
|
2.71
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Copper sales (millions of recoverable pounds)
|
118
|
|
|
118
|
|
|
|
|
106
|
|
|
106
|
|
|
|
||||||||
Cobalt sales (millions of contained pounds)
|
|
|
|
|
7
|
|
|
|
|
|
|
5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Six Months Ended
|
|
Six Months Ended
|
||||||||||||||||||||
|
June 30, 2014
|
|
June 30, 2013
|
||||||||||||||||||||
|
By-Product Method
|
|
Co-Product Method
|
|
By-Product Method
|
|
Co-Product Method
|
||||||||||||||||
|
|
Copper
|
|
Cobalt
|
|
|
Copper
|
|
Cobalt
|
||||||||||||||
Revenues, excluding adjustments
a
|
$
|
3.08
|
|
|
$
|
3.08
|
|
|
$
|
9.29
|
|
|
$
|
3.22
|
|
|
$
|
3.22
|
|
|
$
|
7.99
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Site production and delivery, before net noncash and other costs shown below
|
1.47
|
|
|
1.30
|
|
|
5.19
|
|
|
1.43
|
|
|
1.35
|
|
|
4.54
|
|
||||||
Cobalt credits
b
|
(0.48
|
)
|
|
—
|
|
|
—
|
|
|
(0.26
|
)
|
|
—
|
|
|
—
|
|
||||||
Royalty on metals
|
0.07
|
|
|
0.06
|
|
|
0.16
|
|
|
0.06
|
|
|
0.06
|
|
|
0.14
|
|
||||||
Unit net cash costs
|
1.06
|
|
|
1.36
|
|
|
5.35
|
|
|
1.23
|
|
|
1.41
|
|
|
4.68
|
|
||||||
Depreciation, depletion and amortization
|
0.57
|
|
|
0.49
|
|
|
1.03
|
|
|
0.51
|
|
|
0.47
|
|
|
0.75
|
|
||||||
Noncash and other costs, net
|
0.05
|
|
|
0.04
|
|
|
0.09
|
|
|
0.08
|
|
|
0.07
|
|
|
0.11
|
|
||||||
Total unit costs
|
1.68
|
|
|
1.89
|
|
|
6.47
|
|
|
1.82
|
|
|
1.95
|
|
|
5.54
|
|
||||||
Revenue adjustments, primarily for pricing on prior period open sales
|
(0.01
|
)
|
|
(0.01
|
)
|
|
0.13
|
|
|
0.01
|
|
|
0.01
|
|
|
0.21
|
|
||||||
Gross profit per pound
|
$
|
1.39
|
|
|
$
|
1.18
|
|
|
$
|
2.95
|
|
|
$
|
1.41
|
|
|
$
|
1.28
|
|
|
$
|
2.66
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Copper sales (millions of recoverable pounds)
|
202
|
|
|
202
|
|
|
|
|
224
|
|
|
224
|
|
|
|
||||||||
Cobalt sales (millions of contained pounds)
|
|
|
|
|
15
|
|
|
|
|
|
|
11
|
|
a.
|
Includes point-of-sale transportation costs as negotiated in customer contracts.
|
b.
|
Net of cobalt downstream processing and freight costs.
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||
|
June 30,
|
|
June 30,
|
||||||||
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||
Molybdenum mines operating data
|
|
|
|
|
|
|
|
||||
Molybdenum production (millions of recoverable pounds)
|
14
|
|
|
13
|
|
|
27
|
|
|
25
|
|
Ore milled (metric tons per day)
|
44,800
|
|
|
39,000
|
|
|
42,200
|
|
|
37,400
|
|
Average molybdenum ore grade (percent)
|
0.18
|
|
|
0.19
|
|
|
0.18
|
|
|
0.19
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
June 30,
|
|
June 30,
|
||||||||||||
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||||||
Revenues, excluding adjustments
a
|
$
|
12.90
|
|
|
$
|
12.13
|
|
|
$
|
11.88
|
|
|
$
|
12.33
|
|
|
|
|
|
|
|
|
|
||||||||
Site production and delivery, before net noncash and other costs shown below
|
5.64
|
|
|
5.84
|
|
|
5.75
|
|
|
6.10
|
|
||||
Treatment charges and other
|
0.83
|
|
|
0.95
|
|
|
0.83
|
|
|
0.95
|
|
||||
Unit net cash costs
|
6.47
|
|
|
6.79
|
|
|
6.58
|
|
|
7.05
|
|
||||
Depreciation, depletion and amortization
|
1.69
|
|
|
1.65
|
|
|
1.72
|
|
|
1.64
|
|
||||
Noncash and other costs, net
|
0.10
|
|
|
0.18
|
|
|
0.10
|
|
|
0.16
|
|
||||
Total unit costs
|
8.26
|
|
|
8.62
|
|
|
8.40
|
|
|
8.85
|
|
||||
Gross profit
|
$
|
4.64
|
|
|
$
|
3.51
|
|
|
$
|
3.48
|
|
|
$
|
3.48
|
|
|
|
|
|
|
|
|
|
||||||||
Molybdenum production (millions of recoverable pounds)
a
|
14
|
|
|
13
|
|
|
27
|
|
|
25
|
|
a.
|
Revenues reflect sales of the Molybdenum mines' production to our molybdenum sales company at market-based pricing. On a consolidated basis, realizations are based on actual contract terms of sales made to third parties. As a result, our consolidated average realized price per pound of molybdenum (refer to "Consolidated Results") will differ from the amounts reported in this table.
|
|
|
Three Months Ended
|
|
Six Months Ended
|
|
||||||||||||
|
|
June 30,
|
|
June 30,
|
|
||||||||||||
|
|
2014
a
|
|
2013
b
|
|
2014
a
|
|
2013
b
|
|
||||||||
Sales Volumes
|
|
|
|
|
|
|
|
|
|
||||||||
Oil (MMBbls)
|
|
11.7
|
|
|
3.4
|
|
|
23.5
|
|
|
3.4
|
|
|
||||
Natural gas (Bcf)
|
|
20.3
|
|
|
7.7
|
|
|
39.8
|
|
|
7.7
|
|
|
||||
NGLs (MMBbls)
|
|
1.0
|
|
|
0.3
|
|
|
2.1
|
|
|
0.3
|
|
|
||||
MMBOE
|
|
16.0
|
|
|
5.0
|
|
|
32.2
|
|
|
5.0
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
||||||||
Average Realizations
c
|
|
|
|
|
|
|
|
|
|
||||||||
Oil (per barrel)
|
|
$
|
95.50
|
|
|
$
|
97.42
|
|
|
$
|
94.63
|
|
|
$
|
97.42
|
|
|
Natural gas
(per MMBtu)
|
|
$
|
4.44
|
|
|
$
|
3.86
|
|
|
$
|
4.55
|
|
|
$
|
3.86
|
|
|
NGLs (per barrel)
|
|
$
|
38.79
|
|
|
$
|
35.18
|
|
|
$
|
42.35
|
|
|
$
|
35.18
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Gross Profit per BOE
|
|
|
|
|
|
|
|
|
|
||||||||
Realized revenues
c
|
|
$
|
77.53
|
|
|
$
|
74.37
|
|
|
$
|
77.37
|
|
|
$
|
74.37
|
|
|
Less: cash production costs
c
|
|
19.57
|
|
|
16.58
|
|
|
19.03
|
|
|
16.58
|
|
|
||||
Cash operating margin
c
|
|
57.96
|
|
|
57.79
|
|
|
58.34
|
|
|
57.79
|
|
|
||||
Less: depreciation, depletion and amortization
|
|
38.39
|
|
|
33.82
|
|
|
38.30
|
|
|
33.82
|
|
|
||||
Less: accretion and other costs
|
|
0.94
|
|
|
1.11
|
|
|
0.87
|
|
|
1.11
|
|
|
||||
Plus: net noncash mark-to-market (losses) gains on derivative contracts
|
|
(0.44
|
)
|
|
(7.27
|
)
|
|
0.23
|
|
|
(7.27
|
)
|
|
||||
Plus: other net adjustments
|
|
0.04
|
|
|
(0.02
|
)
|
|
0.04
|
|
|
(0.02
|
)
|
|
||||
Gross profit
|
|
$
|
18.23
|
|
|
$
|
15.57
|
|
|
$
|
19.44
|
|
|
$
|
15.57
|
|
|
a.
|
The 2014 periods include results from Eagle Ford through June 19, 2014.
|
b.
|
The 2013 periods include the results of FM O&G beginning June 1, 2013.
|
c.
|
Cash operating margin for our oil and gas operations reflects realized revenues less cash production costs. Realized revenues exclude noncash mark-to-market adjustments on derivative contracts, and cash production costs exclude accretion and other costs. For reconciliations of realized revenues (including average realizations for oil, natural gas and NGLs) and cash production costs per BOE to revenues and production and delivery costs reported in our consolidated financial statements, refer to "Product Revenues and Production Costs."
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||
|
June 30,
|
|
June 30,
|
||||||||
|
2014
|
|
2013
a
|
|
2014
|
|
2013
a
|
||||
Sales Volumes (MBOE per day):
|
|
|
|
|
|
|
|
||||
GOM
b
|
75
|
|
|
64
|
|
|
73
|
|
|
64
|
|
Eagle Ford
|
44
|
|
c
|
43
|
|
|
48
|
|
c
|
43
|
|
California
|
39
|
|
|
37
|
|
|
39
|
|
|
37
|
|
Haynesville/Madden/Other
|
18
|
|
|
25
|
|
|
18
|
|
|
25
|
|
Total oil and gas operations
|
176
|
|
|
169
|
|
|
178
|
|
|
169
|
|
a.
|
Reflects the results of our oil and gas operations beginning June 1, 2013.
|
b.
|
Includes sales from properties on the GOM Shelf and in the Deepwater GOM. Production from the GOM Shelf totaled 12 MBOE per day in the second quarter and first six months of 2014 (15 percent of the GOM total in second-quarter 2014 and 16 percent for the first six months of 2014), and 15 MBOE per day (22 percent of the GOM total) in June 2013.
|
c.
|
Includes results of the Eagle Ford field through June 19, 2014.
|
|
|
|
||
Cash at domestic companies
|
$
|
700
|
|
|
Cash at international operations
|
758
|
|
|
|
Total consolidated cash and cash equivalents
|
1,458
|
|
|
|
Less: noncontrolling interests’ share
|
(333
|
)
|
|
|
Cash, net of noncontrolling interests’ share
|
1,125
|
|
|
|
Less: withholding taxes and other
|
(42
|
)
|
|
|
Net cash available
|
$
|
1,083
|
|
|
|
|
|
Weighted-
|
|
||
|
|
|
Average
|
|
||
|
|
|
Interest Rate
|
|
||
Acquisition-related debt
|
$
|
10.4
|
|
|
3.1%
|
|
Assumed debt of PXP
|
6.4
|
|
a
|
6.8%
|
a
|
|
Other FCX debt
|
3.5
|
|
|
3.4%
|
|
|
|
$
|
20.3
|
|
|
4.2%
|
|
|
|
|
|
|
a.
|
Reflects sales of molybdenum produced by certain of the North America copper mines to our 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 Note
10
.
|
a.
|
Reflects sales of molybdenum produced by certain of the North America copper mines to our 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 Note
10
.
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Six Months Ended June 30, 2014
|
|
|
|
||||||||||||||||
(In millions)
|
By-Product
|
|
Co-Product Method
|
||||||||||||||||
|
Method
|
|
Copper
|
|
Molybdenum
a
|
|
Other
b
|
|
Total
|
||||||||||
Revenues, excluding adjustments
|
$
|
2,535
|
|
|
$
|
2,535
|
|
|
$
|
191
|
|
|
$
|
62
|
|
|
$
|
2,788
|
|
Site production and delivery, before net noncash and other costs shown below
|
1,481
|
|
|
1,457
|
|
|
44
|
|
|
35
|
|
|
1,536
|
|
|||||
By-product credits
|
(198
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Treatment charges
|
93
|
|
|
91
|
|
|
—
|
|
|
2
|
|
|
93
|
|
|||||
Net cash costs
|
1,376
|
|
|
1,548
|
|
|
44
|
|
|
37
|
|
|
1,629
|
|
|||||
Depreciation, depletion and amortization
|
229
|
|
|
224
|
|
|
2
|
|
|
3
|
|
|
229
|
|
|||||
Noncash and other costs, net
|
59
|
|
|
58
|
|
|
1
|
|
|
—
|
|
|
59
|
|
|||||
Total costs
|
1,664
|
|
|
1,830
|
|
|
47
|
|
|
40
|
|
|
1,917
|
|
|||||
Revenue adjustments, primarily for pricing on prior period open sales
|
(7
|
)
|
|
(7
|
)
|
|
—
|
|
|
—
|
|
|
(7
|
)
|
|||||
Gross profit
|
$
|
864
|
|
|
$
|
698
|
|
|
$
|
144
|
|
|
$
|
22
|
|
|
$
|
864
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Copper sales (millions of recoverable pounds)
|
790
|
|
|
790
|
|
|
|
|
|
|
|
||||||||
Molybdenum sales (millions of recoverable pounds)
a
|
|
|
|
|
17
|
|
|
|
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Gross profit per pound of copper/molybdenum:
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Revenues, excluding adjustments
|
$
|
3.21
|
|
|
$
|
3.21
|
|
|
$
|
11.19
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Site production and delivery, before net noncash
|
|
|
|
|
|
|
|
|
|
||||||||||
and other costs shown below
|
1.87
|
|
|
1.84
|
|
|
2.56
|
|
|
|
|
|
|||||||
By-product credits
|
(0.25
|
)
|
|
—
|
|
|
—
|
|
|
|
|
|
|||||||
Treatment charges
|
0.12
|
|
|
0.12
|
|
|
—
|
|
|
|
|
|
|||||||
Unit net cash costs
|
1.74
|
|
|
1.96
|
|
|
2.56
|
|
|
|
|
|
|||||||
Depreciation, depletion and amortization
|
0.29
|
|
|
0.28
|
|
|
0.14
|
|
|
|
|
|
|||||||
Noncash and other costs, net
|
0.08
|
|
|
0.08
|
|
|
0.03
|
|
|
|
|
|
|||||||
Total unit costs
|
2.11
|
|
|
2.32
|
|
|
2.73
|
|
|
|
|
|
|||||||
Revenue adjustments, primarily for pricing
|
|
|
|
|
|
|
|
|
|
||||||||||
on prior period open sales
|
(0.01
|
)
|
|
(0.01
|
)
|
|
—
|
|
|
|
|
|
|||||||
Gross profit per pound
|
$
|
1.09
|
|
|
$
|
0.88
|
|
|
$
|
8.46
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Reconciliation to Amounts Reported
|
|
|
|
|
|
|
|
|
|
||||||||||
(In millions)
|
Revenues
|
|
Production and Delivery
|
|
Depreciation, Depletion and Amortization
|
|
|
|
|
||||||||||
Totals presented above
|
$
|
2,788
|
|
|
$
|
1,536
|
|
|
$
|
229
|
|
|
|
|
|
||||
Treatment charges
|
—
|
|
|
93
|
|
|
—
|
|
|
|
|
|
|||||||
Noncash and other costs, net
|
—
|
|
|
59
|
|
|
—
|
|
|
|
|
|
|||||||
Revenue adjustments, primarily for pricing on prior period open sales
|
(7
|
)
|
|
—
|
|
|
—
|
|
|
|
|
|
|||||||
Eliminations and other
|
(26
|
)
|
|
(32
|
)
|
|
6
|
|
|
|
|
|
|||||||
North America copper mines
|
2,755
|
|
|
1,656
|
|
|
235
|
|
|
|
|
|
|||||||
Other mining & eliminations
c
|
5,255
|
|
|
3,524
|
|
|
505
|
|
|
|
|
|
|||||||
Total mining
|
8,010
|
|
|
5,180
|
|
|
740
|
|
|
|
|
|
|||||||
U.S. oil & gas operations
|
2,497
|
|
|
640
|
|
|
1,232
|
|
|
|
|
|
|||||||
Corporate, other & eliminations
|
—
|
|
|
(1
|
)
|
|
7
|
|
|
|
|
|
|||||||
As reported in FCX’s consolidated financial statements
|
$
|
10,507
|
|
|
$
|
5,819
|
|
|
$
|
1,979
|
|
|
|
|
|
a.
|
Reflects sales of molybdenum produced by certain of the North America copper mines to our 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 Note
10
.
|
a.
|
Reflects sales of molybdenum produced by certain of the North America copper mines to our 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 Note
10
.
|
Three Months Ended June 30, 2014
|
|
|
|
|
|
|
|
||||||||
(In millions)
|
By-Product
|
|
Co-Product Method
|
||||||||||||
|
Method
|
|
Copper
|
|
Other
|
|
Total
|
||||||||
Revenues, excluding adjustments
|
$
|
984
|
|
|
$
|
984
|
|
|
$
|
75
|
|
a
|
$
|
1,059
|
|
Site production and delivery, before net noncash and other costs shown below
|
511
|
|
|
474
|
|
|
41
|
|
|
515
|
|
||||
By-product credits
|
(71
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Treatment charges
|
55
|
|
|
55
|
|
|
—
|
|
|
55
|
|
||||
Royalty on metals
b
|
3
|
|
|
3
|
|
|
—
|
|
|
3
|
|
||||
Net cash costs
|
498
|
|
|
532
|
|
|
41
|
|
|
573
|
|
||||
Depreciation, depletion and amortization
|
95
|
|
|
89
|
|
|
6
|
|
|
95
|
|
||||
Noncash and other costs, net
|
23
|
|
|
27
|
|
|
(4
|
)
|
|
23
|
|
||||
Total costs
|
616
|
|
|
648
|
|
|
43
|
|
|
691
|
|
||||
Revenue adjustments, primarily for pricing on prior period open sales
|
32
|
|
|
32
|
|
|
—
|
|
|
32
|
|
||||
Gross profit
|
$
|
400
|
|
|
$
|
368
|
|
|
$
|
32
|
|
|
$
|
400
|
|
|
|
|
|
|
|
|
|
||||||||
Copper sales (millions of recoverable pounds)
|
310
|
|
|
310
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
||||||||
Gross profit per pound of copper:
|
|
|
|
||||||||||||
|
|
|
|
|
|
|
|
||||||||
Revenues, excluding adjustments
|
$
|
3.17
|
|
|
$
|
3.17
|
|
|
|
|
|
||||
Site production and delivery, before net noncash
and other costs shown below
|
1.64
|
|
|
1.52
|
|
|
|
|
|
||||||
By-product credits
|
(0.23
|
)
|
|
—
|
|
|
|
|
|
||||||
Treatment charges
|
0.18
|
|
|
0.18
|
|
|
|
|
|
||||||
Royalty on metals
b
|
0.01
|
|
|
0.01
|
|
|
|
|
|
||||||
Unit net cash costs
|
1.60
|
|
|
1.71
|
|
|
|
|
|
||||||
Depreciation, depletion and amortization
|
0.30
|
|
|
0.29
|
|
|
|
|
|
||||||
Noncash and other costs, net
|
0.08
|
|
|
0.09
|
|
|
|
|
|
||||||
Total unit costs
|
1.98
|
|
|
2.09
|
|
|
|
|
|
||||||
Revenue adjustments, primarily for pricing
|
|
|
|
|
|
|
|
||||||||
on prior period open sales
|
0.10
|
|
|
0.10
|
|
|
|
|
|
||||||
Gross profit per pound
|
$
|
1.29
|
|
|
$
|
1.18
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Reconciliation to Amounts Reported
|
|
|
|
|
|
|
|
||||||||
(In millions)
|
Revenues
|
|
Production and Delivery
|
|
Depreciation, Depletion and Amortization
|
|
|
||||||||
Totals presented above
|
$
|
1,059
|
|
|
$
|
515
|
|
|
$
|
95
|
|
|
|
||
Treatment charges
|
(55
|
)
|
|
—
|
|
|
—
|
|
|
|
|||||
Royalty on metals
|
(3
|
)
|
|
—
|
|
|
—
|
|
|
|
|||||
Noncash and other costs, net
|
—
|
|
|
23
|
|
|
—
|
|
|
|
|||||
Revenue adjustments, primarily for pricing on prior period open sales
|
32
|
|
|
—
|
|
|
—
|
|
|
|
|||||
Eliminations and other
|
(2
|
)
|
|
(8
|
)
|
|
—
|
|
|
|
|||||
South America mining
|
1,031
|
|
|
530
|
|
|
95
|
|
|
|
|||||
Other mining & eliminations
c
|
3,255
|
|
|
2,224
|
|
|
299
|
|
|
|
|||||
Total mining
|
4,286
|
|
|
2,754
|
|
|
394
|
|
|
|
|||||
U.S. oil & gas operations
|
1,236
|
|
|
329
|
|
|
616
|
|
|
|
|||||
Corporate, other & eliminations
|
—
|
|
|
(1
|
)
|
|
3
|
|
|
|
|||||
As reported in FCX’s consolidated financial statements
|
$
|
5,522
|
|
|
$
|
3,082
|
|
|
$
|
1,013
|
|
|
|
a.
|
Includes gold sales of
20 thousand
ounces (
$1,302
per ounce average realized price) and silver sales of
748 thousand
ounces (
$18.83
per ounce average realized price). Also reflects sales of molybdenum produced by Cerro Verde to our molybdenum sales company at market-based pricing.
|
b.
|
Represents royalties under Cerro Verde's current stability agreement.
|
c.
|
Represents the combined total for all other mining operations and the related eliminations, as presented in Note
10
.
|
Three Months Ended June 30, 2013
|
|
|
|
|
|
|
|
||||||||
(In millions)
|
By-Product
|
|
Co-Product Method
|
||||||||||||
|
Method
|
|
Copper
|
|
Other
|
|
Total
|
||||||||
Revenues, excluding adjustments
|
$
|
986
|
|
|
$
|
986
|
|
|
$
|
80
|
|
a
|
$
|
1,066
|
|
Site production and delivery, before net noncash and other costs shown below
|
511
|
|
|
472
|
|
|
45
|
|
|
517
|
|
||||
By-product credits
|
(74
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Treatment charges
|
49
|
|
|
49
|
|
|
—
|
|
|
49
|
|
||||
Net cash costs
|
486
|
|
|
521
|
|
|
45
|
|
|
566
|
|
||||
Depreciation, depletion and amortization
|
86
|
|
|
80
|
|
|
6
|
|
|
86
|
|
||||
Noncash and other costs, net
|
7
|
|
|
(1
|
)
|
|
8
|
|
|
7
|
|
||||
Total costs
|
579
|
|
|
600
|
|
|
59
|
|
|
659
|
|
||||
Revenue adjustments, primarily for pricing on prior period open sales
|
(65
|
)
|
|
(65
|
)
|
|
—
|
|
|
(65
|
)
|
||||
Gross profit
|
$
|
342
|
|
|
$
|
321
|
|
|
$
|
21
|
|
|
$
|
342
|
|
|
|
|
|
|
|
|
|
||||||||
Copper sales (millions of recoverable pounds)
|
315
|
|
|
315
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
||||||||
Gross profit per pound of copper:
|
|
|
|
||||||||||||
|
|
|
|
|
|
|
|
||||||||
Revenues, excluding adjustments
|
$
|
3.13
|
|
|
$
|
3.13
|
|
|
|
|
|
||||
Site production and delivery, before net noncash
and other costs shown below
|
1.62
|
|
|
1.50
|
|
|
|
|
|
||||||
By-product credits
|
(0.24
|
)
|
|
—
|
|
|
|
|
|
||||||
Treatment charges
|
0.16
|
|
|
0.16
|
|
|
|
|
|
||||||
Unit net cash costs
|
1.54
|
|
|
1.66
|
|
|
|
|
|
||||||
Depreciation, depletion and amortization
|
0.27
|
|
|
0.25
|
|
|
|
|
|
||||||
Noncash and other costs, net
|
0.02
|
|
|
(0.01
|
)
|
|
|
|
|
||||||
Total unit costs
|
1.83
|
|
|
1.90
|
|
|
|
|
|
||||||
Revenue adjustments, primarily for pricing
|
|
|
|
|
|
|
|
||||||||
on prior period open sales
|
(0.21
|
)
|
|
(0.21
|
)
|
|
|
|
|
||||||
Gross profit per pound
|
$
|
1.09
|
|
|
$
|
1.02
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Reconciliation to Amounts Reported
|
|
|
|
|
|
|
|
||||||||
(In millions)
|
Revenues
|
|
Production and Delivery
|
|
Depreciation, Depletion and Amortization
|
|
|
||||||||
Totals presented above
|
$
|
1,066
|
|
|
$
|
517
|
|
|
$
|
86
|
|
|
|
||
Treatment charges
|
(49
|
)
|
|
—
|
|
|
—
|
|
|
|
|||||
Noncash and other costs, net
|
—
|
|
|
7
|
|
|
—
|
|
|
|
|||||
Revenue adjustments, primarily for pricing on prior period open sales
|
(65
|
)
|
|
—
|
|
|
—
|
|
|
|
|||||
Eliminations and other
|
(1
|
)
|
|
(8
|
)
|
|
—
|
|
|
|
|||||
South America mining
|
951
|
|
|
516
|
|
|
86
|
|
|
|
|||||
Other mining & eliminations
b
|
3,000
|
|
|
2,243
|
|
|
272
|
|
|
|
|||||
Total mining
|
3,951
|
|
|
2,759
|
|
|
358
|
|
|
|
|||||
U.S. oil & gas operations
|
336
|
|
|
89
|
|
|
169
|
|
|
|
|||||
Corporate, other & eliminations
|
1
|
|
|
5
|
|
|
3
|
|
|
|
|||||
As reported in FCX’s consolidated financial statements
|
$
|
4,288
|
|
|
$
|
2,853
|
|
|
$
|
530
|
|
|
|
a.
|
Includes gold sales of
21 thousand
ounces (
$1,317
per ounce average realized price) and silver sales of
809 thousand
ounces (
$20.40
per ounce average realized price). Also reflects sales of molybdenum produced by Cerro Verde to our molybdenum sales company at market-based pricing.
|
b.
|
Represents the combined total for all other mining operations and the related eliminations, as presented in Note
10
.
|
|
|
|
|
|
|
|
|
||||||||
Six Months Ended June 30, 2014
|
|
|
|
|
|
|
|
||||||||
(In millions)
|
By-Product
|
|
Co-Product Method
|
||||||||||||
|
Method
|
|
Copper
|
|
Other
|
|
Total
|
||||||||
Revenues, excluding adjustments
|
$
|
1,951
|
|
|
$
|
1,951
|
|
|
$
|
159
|
|
a
|
$
|
2,110
|
|
Site production and delivery, before net noncash and other costs shown below
|
972
|
|
|
900
|
|
|
81
|
|
|
981
|
|
||||
By-product credits
|
(150
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Treatment charges
|
108
|
|
|
108
|
|
|
—
|
|
|
108
|
|
||||
Royalty on metals
b
|
3
|
|
|
3
|
|
|
—
|
|
|
3
|
|
||||
Net cash costs
|
933
|
|
|
1,011
|
|
|
81
|
|
|
1,092
|
|
||||
Depreciation, depletion and amortization
|
182
|
|
|
170
|
|
|
12
|
|
|
182
|
|
||||
Noncash and other costs, net
|
40
|
|
|
45
|
|
|
(5
|
)
|
|
40
|
|
||||
Total costs
|
1,155
|
|
|
1,226
|
|
|
88
|
|
|
1,314
|
|
||||
Revenue adjustments, primarily for pricing on prior period open sales
|
(67
|
)
|
|
(67
|
)
|
|
—
|
|
|
(67
|
)
|
||||
Gross profit
|
$
|
729
|
|
|
$
|
658
|
|
|
$
|
71
|
|
|
$
|
729
|
|
|
|
|
|
|
|
|
|
||||||||
Copper sales (millions of recoverable pounds)
|
617
|
|
|
617
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
||||||||
Gross profit per pound of copper:
|
|
|
|
||||||||||||
|
|
|
|
|
|
|
|
||||||||
Revenues, excluding adjustments
|
$
|
3.16
|
|
|
$
|
3.16
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Site production and delivery, before net noncash
|
|
|
|
|
|
|
|
||||||||
and other costs shown below
|
1.57
|
|
|
1.46
|
|
|
|
|
|
||||||
By-product credits
|
(0.24
|
)
|
|
—
|
|
|
|
|
|
||||||
Treatment charges
|
0.18
|
|
|
0.18
|
|
|
|
|
|
||||||
Royalty on metals
b
|
—
|
|
|
—
|
|
|
|
|
|
||||||
Unit net cash costs
|
1.51
|
|
|
1.64
|
|
|
|
|
|
||||||
Depreciation, depletion and amortization
|
0.29
|
|
|
0.28
|
|
|
|
|
|
||||||
Noncash and other costs, net
|
0.07
|
|
|
0.07
|
|
|
|
|
|
||||||
Total unit costs
|
1.87
|
|
|
1.99
|
|
|
|
|
|
||||||
Revenue adjustments, primarily for pricing
|
|
|
|
|
|
|
|
||||||||
on prior period open sales
|
(0.11
|
)
|
|
(0.11
|
)
|
|
|
|
|
||||||
Gross profit per pound
|
$
|
1.18
|
|
|
$
|
1.06
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Reconciliation to Amounts Reported
|
|
|
|
|
|
|
|
||||||||
(In millions)
|
Revenues
|
|
Production and Delivery
|
|
Depreciation, Depletion and Amortization
|
|
|
||||||||
Totals presented above
|
$
|
2,110
|
|
|
$
|
981
|
|
|
$
|
182
|
|
|
|
||
Treatment charges
|
(108
|
)
|
|
—
|
|
|
—
|
|
|
|
|||||
Royalty on metals
|
(3
|
)
|
|
—
|
|
|
—
|
|
|
|
|||||
Noncash and other costs, net
|
—
|
|
|
40
|
|
|
—
|
|
|
|
|||||
Revenue adjustments, primarily for pricing on prior period open sales
|
(67
|
)
|
|
—
|
|
|
—
|
|
|
|
|||||
Eliminations and other
|
(3
|
)
|
|
(15
|
)
|
|
—
|
|
|
|
|||||
South America mining
|
1,929
|
|
|
1,006
|
|
|
182
|
|
|
|
|||||
Other mining & eliminations
c
|
6,081
|
|
|
4,174
|
|
|
558
|
|
|
|
|||||
Total mining
|
8,010
|
|
|
5,180
|
|
|
740
|
|
|
|
|||||
U.S. oil & gas operations
|
2,497
|
|
|
640
|
|
|
1,232
|
|
|
|
|||||
Corporate, other & eliminations
|
—
|
|
|
(1
|
)
|
|
7
|
|
|
|
|||||
As reported in FCX’s consolidated financial statements
|
$
|
10,507
|
|
|
$
|
5,819
|
|
|
$
|
1,979
|
|
|
|
a.
|
Includes gold sales of
43 thousand
ounces (
$1,302
per ounce average realized price) and silver sales of
1.5 million
ounces (
$19.34
per ounce average realized price). Also reflects sales of molybdenum produced by Cerro Verde to our molybdenum sales company at market-based pricing.
|
b.
|
Represents royalties under Cerro Verde's current stability agreement.
|
c.
|
Represents the combined total for all other mining operations and the related eliminations, as presented in Note
10
.
|
|
|
|
|
|
|
|
|
||||||||
Six Months Ended June 30, 2013
|
|
|
|
|
|
|
|
||||||||
(In millions)
|
By-Product
|
|
Co-Product Method
|
||||||||||||
|
Method
|
|
Copper
|
|
Other
|
|
Total
|
||||||||
Revenues, excluding adjustments
|
$
|
1,929
|
|
|
$
|
1,929
|
|
|
$
|
166
|
|
a
|
$
|
2,095
|
|
Site production and delivery, before net noncash and other costs shown below
|
973
|
|
|
897
|
|
|
86
|
|
|
983
|
|
||||
By-product credits
|
(156
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Treatment charges
|
99
|
|
|
99
|
|
|
—
|
|
|
99
|
|
||||
Net cash costs
|
916
|
|
|
996
|
|
|
86
|
|
|
1,082
|
|
||||
Depreciation, depletion and amortization
|
156
|
|
|
147
|
|
|
9
|
|
|
156
|
|
||||
Noncash and other costs, net
|
22
|
|
|
6
|
|
|
16
|
|
|
22
|
|
||||
Total costs
|
1,094
|
|
|
1,149
|
|
|
111
|
|
|
1,260
|
|
||||
Revenue adjustments, primarily for pricing on prior period open sales
|
(29
|
)
|
|
(29
|
)
|
|
—
|
|
|
(29
|
)
|
||||
Gross profit
|
$
|
806
|
|
|
$
|
751
|
|
|
$
|
55
|
|
|
$
|
806
|
|
|
|
|
|
|
|
|
|
||||||||
Copper sales (millions of recoverable pounds)
|
600
|
|
|
600
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
||||||||
Gross profit per pound of copper:
|
|
|
|
||||||||||||
|
|
|
|
|
|
|
|
||||||||
Revenues, excluding adjustments
|
$
|
3.22
|
|
|
$
|
3.22
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Site production and delivery, before net noncash
|
|
|
|
|
|
|
|
||||||||
and other costs shown below
|
1.62
|
|
|
1.50
|
|
|
|
|
|
||||||
By-product credits
|
(0.26
|
)
|
|
—
|
|
|
|
|
|
||||||
Treatment charges
|
0.17
|
|
|
0.16
|
|
|
|
|
|
||||||
Unit net cash costs
|
1.53
|
|
|
1.66
|
|
|
|
|
|
||||||
Depreciation, depletion and amortization
|
0.26
|
|
|
0.25
|
|
|
|
|
|
||||||
Noncash and other costs, net
|
0.04
|
|
|
0.01
|
|
|
|
|
|
||||||
Total unit costs
|
1.83
|
|
|
1.92
|
|
|
|
|
|
||||||
Revenue adjustments, primarily for pricing
|
|
|
|
|
|
|
|
||||||||
on prior period open sales
|
(0.05
|
)
|
|
(0.05
|
)
|
|
|
|
|
||||||
Gross profit per pound
|
$
|
1.34
|
|
|
$
|
1.25
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Reconciliation to Amounts Reported
|
|
|
|
|
|
|
|
||||||||
(In millions)
|
Revenues
|
|
Production and Delivery
|
|
Depreciation, Depletion and Amortization
|
|
|
||||||||
Totals presented above
|
$
|
2,095
|
|
|
$
|
983
|
|
|
$
|
156
|
|
|
|
||
Treatment charges
|
(99
|
)
|
|
—
|
|
|
—
|
|
|
|
|||||
Noncash and other costs, net
|
—
|
|
|
22
|
|
|
—
|
|
|
|
|||||
Revenue adjustments, primarily for pricing on prior period open sales
|
(29
|
)
|
|
—
|
|
|
—
|
|
|
|
|||||
Eliminations and other
|
(2
|
)
|
|
(14
|
)
|
|
1
|
|
|
|
|||||
South America mining
|
1,965
|
|
|
991
|
|
|
157
|
|
|
|
|||||
Other mining & eliminations
b
|
6,567
|
|
|
4,484
|
|
|
528
|
|
|
|
|||||
Total mining
|
8,532
|
|
|
5,475
|
|
|
685
|
|
|
|
|||||
U.S. oil & gas operations
|
336
|
|
|
89
|
|
|
169
|
|
|
|
|||||
Corporate, other & eliminations
|
3
|
|
|
8
|
|
|
5
|
|
|
|
|||||
As reported in FCX’s consolidated financial statements
|
$
|
8,871
|
|
|
$
|
5,572
|
|
|
$
|
859
|
|
|
|
a.
|
Includes gold sales of
42 thousand
ounces (
$1,449
per ounce average realized price) and silver sales of
1.8 million
ounces (
$25.93
per ounce average realized price). Also reflects sales of molybdenum produced by Cerro Verde to our molybdenum sales company at market-based pricing.
|
b.
|
Represents the combined total for all other mining operations and the related eliminations, as presented in Note
10
.
|
a.
|
Includes silver sales of
367 thousand
ounces (
$19.67
per ounce average realized price).
|
b.
|
Includes $56 million ($0.48 per pound) of fixed costs charged directly to cost of sales as a result of the impact of export restrictions on PT-FI's operating rates.
|
c.
|
Represents the combined total for all other mining operations and the related eliminations, as presented in Note
10
.
|
a.
|
Includes silver sales of
452 thousand
ounces (
$20.04
per ounce average realized price).
|
b.
|
Represents the combined total for all other mining operations and the related eliminations, as presented in Note
10
.
|
a.
|
Includes silver sales of
700 thousand
ounces (
$19.84
per ounce average realized price).
|
b.
|
Includes $109 million ($0.48 per pound) of fixed costs charged directly to cost of sales as a result of the impact of export restrictions on PT-FI's operating rates.
|
c.
|
Represents the combined total for all other mining operations and the related eliminations, as presented in Note
10
.
|
a.
|
Includes silver sales of
1.0 million
ounces (
$23.19
per ounce average realized price).
|
b.
|
Represents the combined total for all other mining operations and the related eliminations, as presented in Note
10
.
|
Three Months Ended June 30, 2014
|
|
|
|
|
|
|
|
||||||||
(In millions)
|
By-Product
|
|
Co-Product Method
|
||||||||||||
|
Method
|
|
Copper
|
|
Cobalt
|
|
Total
|
||||||||
Revenues, excluding adjustments
a
|
$
|
362
|
|
|
$
|
362
|
|
|
$
|
65
|
|
|
$
|
427
|
|
Site production and delivery, before net noncash and other costs shown below
|
171
|
|
|
159
|
|
|
35
|
|
|
194
|
|
||||
Cobalt credits
b
|
(41
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Royalty on metals
|
8
|
|
|
7
|
|
|
1
|
|
|
8
|
|
||||
Net cash costs
|
138
|
|
|
166
|
|
|
36
|
|
|
202
|
|
||||
Depreciation, depletion and amortization
|
63
|
|
|
54
|
|
|
9
|
|
|
63
|
|
||||
Noncash and other costs, net
|
4
|
|
|
3
|
|
|
1
|
|
|
4
|
|
||||
Total costs
|
205
|
|
|
223
|
|
|
46
|
|
|
269
|
|
||||
Revenue adjustments, primarily for pricing on prior period open sales
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
(1
|
)
|
||||
Gross profit
|
$
|
157
|
|
|
$
|
139
|
|
|
$
|
18
|
|
|
$
|
157
|
|
|
|
|
|
|
|
|
|
||||||||
Copper sales (millions of recoverable pounds)
|
118
|
|
|
118
|
|
|
|
|
|
||||||
Cobalt sales (millions of contained pounds)
|
|
|
|
|
7
|
|
|
|
|||||||
|
|
|
|
|
|
|
|
||||||||
Gross profit per pound of copper/cobalt:
|
|
|
|
||||||||||||
|
|
|
|
|
|
|
|
||||||||
Revenues, excluding adjustments
a
|
$
|
3.08
|
|
|
$
|
3.08
|
|
|
$
|
9.58
|
|
|
|
||
Site production and delivery, before net noncash
and other costs shown below
|
1.46
|
|
|
1.35
|
|
|
5.22
|
|
|
|
|||||
Cobalt credits
b
|
(0.34
|
)
|
|
—
|
|
|
—
|
|
|
|
|||||
Royalty on metals
|
0.06
|
|
|
0.06
|
|
|
0.15
|
|
|
|
|||||
Unit net cash costs
|
1.18
|
|
|
1.41
|
|
|
5.37
|
|
|
|
|||||
Depreciation, depletion and amortization
|
0.54
|
|
|
0.46
|
|
|
1.30
|
|
|
|
|||||
Noncash and other costs, net
|
0.03
|
|
|
0.03
|
|
|
0.08
|
|
|
|
|||||
Total unit costs
|
1.75
|
|
|
1.90
|
|
|
6.75
|
|
|
|
|||||
Revenue adjustments, primarily for pricing
|
|
|
|
|
|
|
|
||||||||
on prior period open sales
|
—
|
|
|
—
|
|
|
(0.19
|
)
|
|
|
|||||
Gross profit per pound
|
$
|
1.33
|
|
|
$
|
1.18
|
|
|
$
|
2.64
|
|
|
|
||
|
|
|
|
|
|
|
|
||||||||
Reconciliation to Amounts Reported
|
|
|
|
|
|
|
|
||||||||
(In millions)
|
Revenues
|
|
Production and Delivery
|
|
Depreciation, Depletion and Amortization
|
|
|
||||||||
Totals presented above
|
$
|
427
|
|
|
$
|
194
|
|
|
$
|
63
|
|
|
|
||
Royalty on metals
|
(8
|
)
|
|
—
|
|
|
—
|
|
|
|
|||||
Noncash and other costs, net
|
—
|
|
|
4
|
|
|
—
|
|
|
|
|||||
Revenue adjustments, primarily for pricing on prior period open sales
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
|
|||||
Africa mining
|
418
|
|
|
198
|
|
|
63
|
|
|
|
|||||
Other mining & eliminations
c
|
3,868
|
|
|
2,556
|
|
|
331
|
|
|
|
|||||
Total mining
|
4,286
|
|
|
2,754
|
|
|
394
|
|
|
|
|||||
U.S. oil & gas operations
|
1,236
|
|
|
329
|
|
|
616
|
|
|
|
|||||
Corporate, other & eliminations
|
—
|
|
|
(1
|
)
|
|
3
|
|
|
|
|||||
As reported in FCX’s consolidated financial statements
|
$
|
5,522
|
|
|
$
|
3,082
|
|
|
$
|
1,013
|
|
|
|
a.
|
Includes point-of-sale transportation costs as negotiated in customer contracts.
|
b.
|
Net of cobalt downstream processing and freight costs.
|
c.
|
Represents the combined total for all other mining operations and the related eliminations, as presented in Note
10
.
|
Three Months Ended June 30, 2013
|
|
|
|
|
|
|
|
||||||||
(In millions)
|
By-Product
|
|
Co-Product Method
|
||||||||||||
|
Method
|
|
Copper
|
|
Cobalt
|
|
Total
|
||||||||
Revenues, excluding adjustments
a
|
$
|
330
|
|
|
$
|
330
|
|
|
$
|
47
|
|
|
$
|
377
|
|
Site production and delivery, before net noncash and other costs shown below
|
156
|
|
|
146
|
|
|
27
|
|
|
173
|
|
||||
Cobalt credits
b
|
(31
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Royalty on metals
|
6
|
|
|
5
|
|
|
1
|
|
|
6
|
|
||||
Net cash costs
|
131
|
|
|
151
|
|
|
28
|
|
|
179
|
|
||||
Depreciation, depletion and amortization
|
57
|
|
|
52
|
|
|
5
|
|
|
57
|
|
||||
Noncash and other costs, net
|
12
|
|
|
11
|
|
|
1
|
|
|
12
|
|
||||
Total costs
|
200
|
|
|
214
|
|
|
34
|
|
|
248
|
|
||||
Revenue adjustments, primarily for pricing on prior period open sales
|
(7
|
)
|
|
(8
|
)
|
|
2
|
|
|
(6
|
)
|
||||
Gross profit
|
$
|
123
|
|
|
$
|
108
|
|
|
$
|
15
|
|
|
$
|
123
|
|
|
|
|
|
|
|
|
|
||||||||
Copper sales (millions of recoverable pounds)
|
106
|
|
|
106
|
|
|
|
|
|
||||||
Cobalt sales (millions of contained pounds)
|
|
|
|
|
5
|
|
|
|
|||||||
|
|
|
|
|
|
|
|
||||||||
Gross profit per pound of copper/cobalt:
|
|
|
|
||||||||||||
|
|
|
|
|
|
|
|
||||||||
Revenues, excluding adjustments
a
|
$
|
3.10
|
|
|
$
|
3.10
|
|
|
$
|
8.48
|
|
|
|
||
Site production and delivery, before net noncash
and other costs shown below
|
1.47
|
|
|
1.37
|
|
|
4.92
|
|
|
|
|||||
Cobalt credits
b
|
(0.30
|
)
|
|
—
|
|
|
—
|
|
|
|
|||||
Royalty on metals
|
0.06
|
|
|
0.05
|
|
|
0.15
|
|
|
|
|||||
Unit net cash costs
|
1.23
|
|
|
1.42
|
|
|
5.07
|
|
|
|
|||||
Depreciation, depletion and amortization
|
0.53
|
|
|
0.49
|
|
|
0.80
|
|
|
|
|||||
Noncash and other costs, net
|
0.11
|
|
|
0.10
|
|
|
0.17
|
|
|
|
|||||
Total unit costs
|
1.87
|
|
|
2.01
|
|
|
6.04
|
|
|
|
|||||
Revenue adjustments, primarily for pricing
|
|
|
|
|
|
|
|
||||||||
on prior period open sales
|
(0.07
|
)
|
|
(0.07
|
)
|
|
0.27
|
|
|
|
|||||
Gross profit per pound
|
$
|
1.16
|
|
|
$
|
1.02
|
|
|
$
|
2.71
|
|
|
|
||
|
|
|
|
|
|
|
|
||||||||
Reconciliation to Amounts Reported
|
|
|
|
|
|
|
|
||||||||
(In millions)
|
Revenues
|
|
Production and Delivery
|
|
Depreciation, Depletion and Amortization
|
|
|
||||||||
Totals presented above
|
$
|
377
|
|
|
$
|
173
|
|
|
$
|
57
|
|
|
|
||
Royalty on metals
|
(6
|
)
|
|
—
|
|
|
—
|
|
|
|
|||||
Noncash and other costs, net
|
—
|
|
|
12
|
|
|
—
|
|
|
|
|||||
Revenue adjustments, primarily for pricing on prior period open sales
|
(6
|
)
|
|
—
|
|
|
—
|
|
|
|
|||||
Africa mining
|
365
|
|
|
185
|
|
|
57
|
|
|
|
|||||
Other mining & eliminations
c
|
3,586
|
|
|
2,574
|
|
|
301
|
|
|
|
|||||
Total mining
|
3,951
|
|
|
2,759
|
|
|
358
|
|
|
|
|||||
U.S. oil & gas operations
|
336
|
|
|
89
|
|
|
169
|
|
|
|
|||||
Corporate, other & eliminations
|
1
|
|
|
5
|
|
|
3
|
|
|
|
|||||
As reported in FCX’s consolidated financial statements
|
$
|
4,288
|
|
|
$
|
2,853
|
|
|
$
|
530
|
|
|
|
a.
|
Includes point-of-sale transportation costs as negotiated in customer contracts.
|
b.
|
Net of cobalt downstream processing and freight costs.
|
c.
|
Represents the combined total for all other mining operations and the related eliminations, as presented in Note
10
.
|
|
|
|
|
|
|
|
|
||||||||
Six Months Ended June 30, 2014
|
|
|
|
|
|
|
|
||||||||
(In millions)
|
By-Product
|
|
Co-Product Method
|
||||||||||||
|
Method
|
|
Copper
|
|
Cobalt
|
|
Total
|
||||||||
Revenues, excluding adjustments
a
|
$
|
621
|
|
|
$
|
621
|
|
|
$
|
137
|
|
|
$
|
758
|
|
Site production and delivery, before net noncash and other costs shown below
|
296
|
|
|
262
|
|
|
77
|
|
|
339
|
|
||||
Cobalt credits
b
|
(96
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Royalty on metals
|
14
|
|
|
12
|
|
|
2
|
|
|
14
|
|
||||
Net cash costs
|
214
|
|
|
274
|
|
|
79
|
|
|
353
|
|
||||
Depreciation, depletion and amortization
|
114
|
|
|
99
|
|
|
15
|
|
|
114
|
|
||||
Noncash and other costs, net
|
11
|
|
|
10
|
|
|
1
|
|
|
11
|
|
||||
Total costs
|
339
|
|
|
383
|
|
|
95
|
|
|
478
|
|
||||
Revenue adjustments, primarily for pricing on prior period open sales
|
(1
|
)
|
|
(1
|
)
|
|
2
|
|
|
1
|
|
||||
Gross profit
|
$
|
281
|
|
|
$
|
237
|
|
|
$
|
44
|
|
|
$
|
281
|
|
|
|
|
|
|
|
|
|
||||||||
Copper sales (millions of recoverable pounds)
|
202
|
|
|
202
|
|
|
|
|
|
||||||
Cobalt sales (millions of contained pounds)
|
|
|
|
|
15
|
|
|
|
|||||||
|
|
|
|
|
|
|
|
||||||||
Gross profit per pound of copper/cobalt:
|
|
|
|
||||||||||||
|
|
|
|
|
|
|
|
||||||||
Revenues, excluding adjustments
a
|
$
|
3.08
|
|
|
$
|
3.08
|
|
|
$
|
9.29
|
|
|
|
||
|
|
|
|
|
|
|
|
||||||||
Site production and delivery, before net noncash
|
|
|
|
|
|
|
|
||||||||
and other costs shown below
|
1.47
|
|
|
1.30
|
|
|
5.19
|
|
|
|
|||||
Cobalt credits
b
|
(0.48
|
)
|
|
—
|
|
|
—
|
|
|
|
|||||
Royalty on metals
|
0.07
|
|
|
0.06
|
|
|
0.16
|
|
|
|
|||||
Unit net cash costs
|
1.06
|
|
|
1.36
|
|
|
5.35
|
|
|
|
|||||
Depreciation, depletion and amortization
|
0.57
|
|
|
0.49
|
|
|
1.03
|
|
|
|
|||||
Noncash and other costs, net
|
0.05
|
|
|
0.04
|
|
|
0.09
|
|
|
|
|||||
Total unit costs
|
1.68
|
|
|
1.89
|
|
|
6.47
|
|
|
|
|||||
Revenue adjustments, primarily for pricing
|
|
|
|
|
|
|
|
||||||||
on prior period open sales
|
(0.01
|
)
|
|
(0.01
|
)
|
|
0.13
|
|
|
|
|||||
Gross profit per pound
|
$
|
1.39
|
|
|
$
|
1.18
|
|
|
$
|
2.95
|
|
|
|
||
|
|
|
|
|
|
|
|
||||||||
Reconciliation to Amounts Reported
|
|
|
|
|
|
|
|
||||||||
(In millions)
|
Revenues
|
|
Production and Delivery
|
|
Depreciation, Depletion and Amortization
|
|
|
||||||||
Totals presented above
|
$
|
758
|
|
|
$
|
339
|
|
|
$
|
114
|
|
|
|
||
Royalty on metals
|
(14
|
)
|
|
—
|
|
|
—
|
|
|
|
|||||
Noncash and other costs, net
|
—
|
|
|
11
|
|
|
—
|
|
|
|
|||||
Revenue adjustments, primarily for pricing on prior period open sales
|
1
|
|
|
—
|
|
|
—
|
|
|
|
|||||
Africa mining
|
745
|
|
|
350
|
|
|
114
|
|
|
|
|||||
Other mining & eliminations
c
|
7,265
|
|
|
4,830
|
|
|
626
|
|
|
|
|||||
Total mining
|
8,010
|
|
|
5,180
|
|
|
740
|
|
|
|
|||||
U.S. oil & gas operations
|
2,497
|
|
|
640
|
|
|
1,232
|
|
|
|
|||||
Corporate, other & eliminations
|
—
|
|
|
(1
|
)
|
|
7
|
|
|
|
|||||
As reported in FCX’s consolidated financial statements
|
$
|
10,507
|
|
|
$
|
5,819
|
|
|
$
|
1,979
|
|
|
|
a.
|
Includes point-of-sale transportation costs as negotiated in customer contracts.
|
b.
|
Net of cobalt downstream processing and freight costs.
|
c.
|
Represents the combined total for all other mining operations and the related eliminations, as presented in Note
10
|
|
|
|
|
|
|
|
|
||||||||
Six Months Ended June 30, 2013
|
|
|
|
|
|
|
|
||||||||
(In millions)
|
By-Product
|
|
Co-Product Method
|
||||||||||||
|
Method
|
|
Copper
|
|
Cobalt
|
|
Total
|
||||||||
Revenues, excluding adjustments
a
|
$
|
724
|
|
|
$
|
724
|
|
|
$
|
89
|
|
|
$
|
813
|
|
Site production and delivery, before net noncash and other costs shown below
|
321
|
|
|
303
|
|
|
51
|
|
|
354
|
|
||||
Cobalt credits
b
|
(58
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Royalty on metals
|
14
|
|
|
13
|
|
|
1
|
|
|
14
|
|
||||
Net cash costs
|
277
|
|
|
316
|
|
|
52
|
|
|
368
|
|
||||
Depreciation, depletion and amortization
|
115
|
|
|
107
|
|
|
8
|
|
|
115
|
|
||||
Noncash and other costs, net
|
16
|
|
|
15
|
|
|
1
|
|
|
16
|
|
||||
Total costs
|
408
|
|
|
438
|
|
|
61
|
|
|
499
|
|
||||
Revenue adjustments, primarily for pricing on prior period open sales
|
2
|
|
|
2
|
|
|
2
|
|
|
4
|
|
||||
Gross profit
|
$
|
318
|
|
|
$
|
288
|
|
|
$
|
30
|
|
|
$
|
318
|
|
|
|
|
|
|
|
|
|
||||||||
Copper sales (millions of recoverable pounds)
|
224
|
|
|
224
|
|
|
|
|
|
||||||
Cobalt sales (millions of contained pounds)
|
|
|
|
|
11
|
|
|
|
|||||||
|
|
|
|
|
|
|
|
||||||||
Gross profit per pound of copper/cobalt:
|
|
|
|
||||||||||||
|
|
|
|
|
|
|
|
||||||||
Revenues, excluding adjustments
a
|
$
|
3.22
|
|
|
$
|
3.22
|
|
|
$
|
7.99
|
|
|
|
||
|
|
|
|
|
|
|
|
||||||||
Site production and delivery, before net noncash
|
|
|
|
|
|
|
|
||||||||
and other costs shown below
|
1.43
|
|
|
1.35
|
|
|
4.54
|
|
|
|
|||||
Cobalt credits
b
|
(0.26
|
)
|
|
—
|
|
|
—
|
|
|
|
|||||
Royalty on metals
|
0.06
|
|
|
0.06
|
|
|
0.14
|
|
|
|
|||||
Unit net cash costs
|
1.23
|
|
|
1.41
|
|
|
4.68
|
|
|
|
|||||
Depreciation, depletion and amortization
|
0.51
|
|
|
0.47
|
|
|
0.75
|
|
|
|
|||||
Noncash and other costs, net
|
0.08
|
|
|
0.07
|
|
|
0.11
|
|
|
|
|||||
Total unit costs
|
1.82
|
|
|
1.95
|
|
|
5.54
|
|
|
|
|||||
Revenue adjustments, primarily for pricing
|
|
|
|
|
|
|
|
||||||||
on prior period open sales
|
0.01
|
|
|
0.01
|
|
|
0.21
|
|
|
|
|||||
Gross profit per pound
|
$
|
1.41
|
|
|
$
|
1.28
|
|
|
$
|
2.66
|
|
|
|
||
|
|
|
|
|
|
|
|
||||||||
Reconciliation to Amounts Reported
|
|
|
|
|
|
|
|
||||||||
(In millions)
|
Revenues
|
|
Production and Delivery
|
|
Depreciation, Depletion and Amortization
|
|
|
||||||||
Totals presented above
|
$
|
813
|
|
|
$
|
354
|
|
|
$
|
115
|
|
|
|
||
Royalty on metals
|
(14
|
)
|
|
—
|
|
|
—
|
|
|
|
|||||
Noncash and other costs, net
|
—
|
|
|
16
|
|
|
—
|
|
|
|
|||||
Revenue adjustments, primarily for pricing on prior period open sales
|
4
|
|
|
—
|
|
|
—
|
|
|
|
|||||
Africa mining
|
803
|
|
|
370
|
|
|
115
|
|
|
|
|||||
Other mining & eliminations
c
|
7,729
|
|
|
5,105
|
|
|
570
|
|
|
|
|||||
Total mining
|
8,532
|
|
|
5,475
|
|
|
685
|
|
|
|
|||||
U.S. oil & gas operations
|
336
|
|
|
89
|
|
|
169
|
|
|
|
|||||
Corporate, other & eliminations
|
3
|
|
|
8
|
|
|
5
|
|
|
|
|||||
As reported in FCX’s consolidated financial statements
|
$
|
8,871
|
|
|
$
|
5,572
|
|
|
$
|
859
|
|
|
|
a.
|
Includes point-of-sale transportation costs as negotiated in customer contracts.
|
b.
|
Net of cobalt downstream processing and freight costs.
|
c.
|
Represents the combined total for all other mining operations and the related eliminations, as presented in Note
10
|
|
Three Months Ended June 30,
|
|
|
||||||||
(In millions)
|
2014
|
|
2013
|
|
|
||||||
Revenues, excluding adjustments
a
|
$
|
181
|
|
|
$
|
156
|
|
|
|
||
|
|
|
|
|
|
||||||
Site production and delivery, before net noncash and other costs shown below
|
79
|
|
|
76
|
|
|
|
||||
Treatment charges and other
|
11
|
|
|
12
|
|
|
|
||||
Net cash costs
|
90
|
|
|
88
|
|
|
|
||||
Depreciation, depletion and amortization
|
24
|
|
|
21
|
|
|
|
||||
Noncash and other costs, net
|
2
|
|
|
2
|
|
|
|
||||
Total costs
|
116
|
|
|
111
|
|
|
|
||||
Gross profit
|
$
|
65
|
|
|
$
|
45
|
|
|
|
||
|
|
|
|
|
|
||||||
Molybdenum sales (millions of recoverable pounds)
a
|
14
|
|
|
13
|
|
|
|
||||
|
|
|
|
|
|
||||||
Gross profit per pound of molybdenum:
|
|
|
|||||||||
|
|
|
|
|
|
||||||
Revenues, excluding adjustments
a
|
$
|
12.90
|
|
|
$
|
12.13
|
|
|
|
||
|
|
|
|
|
|
||||||
Site production and delivery, before net noncash and other costs shown below
|
5.64
|
|
|
5.84
|
|
|
|
||||
Treatment charges and other
|
0.83
|
|
|
0.95
|
|
|
|
||||
Unit net cash costs
|
6.47
|
|
|
6.79
|
|
|
|
||||
Depreciation, depletion and amortization
|
1.69
|
|
|
1.65
|
|
|
|
||||
Noncash and other costs, net
|
0.10
|
|
|
0.18
|
|
|
|
||||
Total unit costs
|
8.26
|
|
|
8.62
|
|
|
|
||||
Gross profit per pound
|
$
|
4.64
|
|
|
$
|
3.51
|
|
|
|
||
|
|
|
|
|
|
||||||
Reconciliation to Amounts Reported
|
|
|
|
|
|
||||||
(In millions)
|
|
|
|
|
|
||||||
Three Months Ended June 30, 2014
|
Revenues
|
|
Production and Delivery
|
|
Depreciation, Depletion and Amortization
|
||||||
Totals presented above
|
$
|
181
|
|
|
$
|
79
|
|
|
$
|
24
|
|
Treatment charges and other
|
(11
|
)
|
|
—
|
|
|
—
|
|
|||
Noncash and other costs, net
|
—
|
|
|
2
|
|
|
—
|
|
|||
Molybdenum mines
|
170
|
|
|
81
|
|
|
24
|
|
|||
Other mining & eliminations
b
|
4,116
|
|
|
2,673
|
|
|
370
|
|
|||
Total mining
|
4,286
|
|
|
2,754
|
|
|
394
|
|
|||
U.S. oil & gas operations
|
1,236
|
|
|
329
|
|
|
616
|
|
|||
Corporate, other & eliminations
|
—
|
|
|
(1
|
)
|
|
3
|
|
|||
As reported in FCX’s consolidated financial statements
|
$
|
5,522
|
|
|
$
|
3,082
|
|
|
$
|
1,013
|
|
|
|
|
|
|
|
||||||
Three Months Ended June 30, 2013
|
|
|
|
|
|
||||||
Totals presented above
|
$
|
156
|
|
|
$
|
76
|
|
|
$
|
21
|
|
Treatment charges and other
|
(12
|
)
|
|
—
|
|
|
—
|
|
|||
Noncash and other costs, net
|
—
|
|
|
2
|
|
|
—
|
|
|||
Molybdenum mines
|
144
|
|
|
78
|
|
|
21
|
|
|||
Other mining & eliminations
b
|
3,807
|
|
|
2,681
|
|
|
337
|
|
|||
Total mining
|
3,951
|
|
|
2,759
|
|
|
358
|
|
|||
U.S. oil & gas operations
|
336
|
|
|
89
|
|
|
169
|
|
|||
Corporate, other & eliminations
|
1
|
|
|
5
|
|
|
3
|
|
|||
As reported in FCX’s consolidated financial statements
|
$
|
4,288
|
|
|
$
|
2,853
|
|
|
$
|
530
|
|
a.
|
Reflects sales of the Molybdenum mines' production to our 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, our 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 Note
10
. Also includes amounts associated with our molybdenum sales company, which includes sales of molybdenum produced by the molybdenum mines and by certain of the North and South America copper mines.
|
|
|
|
|
|
|
||||||
|
Six Months Ended June 30,
|
|
|
||||||||
(In millions)
|
2014
|
|
2013
|
|
|
||||||
Revenues, excluding adjustments
a
|
$
|
318
|
|
|
$
|
311
|
|
|
|
||
|
|
|
|
|
|
||||||
Site production and delivery, before net noncash and other costs shown below
|
154
|
|
|
154
|
|
|
|
||||
Treatment charges and other
|
22
|
|
|
24
|
|
|
|
||||
Net cash costs
|
176
|
|
|
178
|
|
|
|
||||
Depreciation, depletion and amortization
|
46
|
|
|
41
|
|
|
|
||||
Noncash and other costs, net
|
3
|
|
|
4
|
|
|
|
||||
Total costs
|
225
|
|
|
223
|
|
|
|
||||
Gross profit
|
$
|
93
|
|
|
$
|
88
|
|
|
|
||
|
|
|
|
|
|
||||||
Molybdenum sales (millions of recoverable pounds)
a
|
27
|
|
|
25
|
|
|
|
||||
|
|
|
|
|
|
||||||
Gross profit per pound of molybdenum:
|
|
|
|||||||||
|
|
|
|
|
|
||||||
Revenues, excluding adjustments
a
|
$
|
11.88
|
|
|
$
|
12.33
|
|
|
|
||
|
|
|
|
|
|
||||||
Site production and delivery, before net noncash and other costs shown below
|
5.75
|
|
|
6.10
|
|
|
|
||||
Treatment charges and other
|
0.83
|
|
|
0.95
|
|
|
|
||||
Unit net cash costs
|
6.58
|
|
|
7.05
|
|
|
|
||||
Depreciation, depletion and amortization
|
1.72
|
|
|
1.64
|
|
|
|
||||
Noncash and other costs, net
|
0.10
|
|
|
0.16
|
|
|
|
||||
Total unit costs
|
8.40
|
|
|
8.85
|
|
|
|
||||
Gross profit per pound
|
$
|
3.48
|
|
|
$
|
3.48
|
|
|
|
||
|
|
|
|
|
|
||||||
Reconciliation to Amounts Reported
|
|
|
|
|
|
||||||
(In millions)
|
|
|
|
|
|
||||||
Six Months Ended June 30, 2014
|
Revenues
|
|
Production and Delivery
|
|
Depreciation, Depletion and Amortization
|
||||||
Totals presented above
|
$
|
318
|
|
|
$
|
154
|
|
|
$
|
46
|
|
Treatment charges and other
|
(22
|
)
|
|
—
|
|
|
—
|
|
|||
Noncash and other costs, net
|
—
|
|
|
3
|
|
|
—
|
|
|||
Molybdenum mines
|
296
|
|
|
157
|
|
|
46
|
|
|||
Other mining & eliminations
b
|
7,714
|
|
|
5,023
|
|
|
694
|
|
|||
Total mining
|
8,010
|
|
|
5,180
|
|
|
740
|
|
|||
U.S. oil & gas operations
|
2,497
|
|
|
640
|
|
|
1,232
|
|
|||
Corporate, other & eliminations
|
—
|
|
|
(1
|
)
|
|
7
|
|
|||
As reported in FCX’s consolidated financial statements
|
$
|
10,507
|
|
|
$
|
5,819
|
|
|
$
|
1,979
|
|
|
|
|
|
|
|
||||||
Six Months Ended June 30, 2013
|
|
|
|
|
|
||||||
Totals presented above
|
$
|
311
|
|
|
$
|
154
|
|
|
$
|
41
|
|
Treatment charges and other
|
(24
|
)
|
|
—
|
|
|
—
|
|
|||
Noncash and other costs,net
|
—
|
|
|
4
|
|
|
—
|
|
|||
Molybdenum mines
|
287
|
|
|
158
|
|
|
41
|
|
|||
Other mining & eliminations
b
|
8,245
|
|
|
5,317
|
|
|
644
|
|
|||
Total mining
|
8,532
|
|
|
5,475
|
|
|
685
|
|
|||
U.S. oil & gas operations
|
336
|
|
|
89
|
|
|
169
|
|
|||
Corporate, other & eliminations
|
3
|
|
|
8
|
|
|
5
|
|
|||
As reported in FCX’s consolidated financial statements
|
$
|
8,871
|
|
|
$
|
5,572
|
|
|
$
|
859
|
|
a.
|
Reflects sales of the Molybdenum mines' production to our 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, our 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 Note
10
. Also includes amounts associated with our molybdenum sales company, which includes sales of molybdenum produced by the molybdenum mines and by certain of the North and South America copper mines.
|
Three Months Ended June 30, 2014
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
(In millions)
|
Oil
|
|
Natural Gas
|
|
NGLs
|
|
Total
U.S. Oil & Gas
|
|
||||||||
Oil and gas revenues before derivatives
|
$
|
1,172
|
|
|
$
|
96
|
|
|
$
|
38
|
|
|
$
|
1,306
|
|
|
Realized cash losses on derivative contracts
|
(57
|
)
|
|
(6
|
)
|
|
—
|
|
|
(63
|
)
|
|
||||
Realized revenues
|
$
|
1,115
|
|
|
$
|
90
|
|
|
$
|
38
|
|
|
1,243
|
|
|
|
Less: cash production costs
|
|
|
|
|
|
|
314
|
|
|
|||||||
Cash operating margin
|
|
|
|
|
|
|
929
|
|
|
|||||||
Less: depreciation, depletion and amortization
|
|
|
|
|
|
|
616
|
|
|
|||||||
Less: accretion and other costs
|
|
|
|
|
|
|
15
|
|
|
|||||||
Plus: net noncash mark-to-market losses on derivative contracts
|
|
|
|
|
|
|
(7
|
)
|
|
|||||||
Plus: other net adjustments
|
|
|
|
|
|
|
—
|
|
|
|||||||
Gross profit
|
|
|
|
|
|
|
$
|
291
|
|
|
||||||
|
|
|
|
|
|
|
|
|
||||||||
Oil (MMBbls)
|
11.7
|
|
|
|
|
|
|
|
|
|||||||
Gas (Bcf)
|
|
|
20.3
|
|
|
|
|
|
|
|||||||
NGLs (MMBbls)
|
|
|
|
|
1.0
|
|
|
|
|
|||||||
Oil Equivalents (MMBOE)
|
|
|
|
|
|
|
16.0
|
|
|
|||||||
|
|
|
|
|
|
|
|
|
||||||||
|
Oil
(per barrel) |
|
Natural Gas
(per MMBtu) |
|
NGLs
(per barrel) |
|
Per BOE
|
|
||||||||
Oil and gas revenues before derivatives
|
$
|
100.46
|
|
|
$
|
4.70
|
|
|
$
|
38.79
|
|
|
$
|
81.47
|
|
|
Realized cash losses on derivative contracts
|
(4.96
|
)
|
|
(0.26
|
)
|
|
—
|
|
|
(3.94
|
)
|
|
||||
Realized revenues
|
$
|
95.50
|
|
|
$
|
4.44
|
|
|
$
|
38.79
|
|
|
77.53
|
|
|
|
Less: cash production costs
|
|
|
|
|
|
|
19.57
|
|
|
|||||||
Cash operating margin
|
|
|
|
|
|
|
57.96
|
|
|
|||||||
Less: depreciation, depletion and amortization
|
|
|
|
|
|
|
38.39
|
|
|
|||||||
Less: accretion and other costs
|
|
|
|
|
|
|
0.94
|
|
|
|||||||
Plus: net noncash mark-to-market losses on derivative contracts
|
|
|
|
|
|
|
(0.44
|
)
|
|
|||||||
Plus: other net adjustments
|
|
|
|
|
|
|
0.04
|
|
|
|||||||
Gross profit
|
|
|
|
|
|
|
$
|
18.23
|
|
|
||||||
|
|
|
|
|
|
|
|
|
||||||||
Reconciliation to Amounts Reported
|
||||||||||||||||
(In Millions)
|
Revenues
|
|
Production and Delivery
|
|
Depreciation, Depletion and Amortization
|
|
|
|
||||||||
Totals presented above
|
$
|
1,306
|
|
|
$
|
314
|
|
|
$
|
616
|
|
|
|
|
||
Realized cash losses on derivative contracts
|
(63
|
)
|
|
—
|
|
|
—
|
|
|
|
|
|||||
Net noncash mark-to-market losses on derivative contracts
|
(7
|
)
|
|
—
|
|
|
—
|
|
|
|
|
|||||
Accretion and other costs
|
—
|
|
|
15
|
|
|
—
|
|
|
|
|
|||||
Other net adjustments
|
—
|
|
|
—
|
|
|
—
|
|
|
|
|
|||||
U.S. oil & gas operations
|
1,236
|
|
|
329
|
|
|
616
|
|
|
|
|
|||||
Total mining
a
|
4,286
|
|
|
2,754
|
|
|
394
|
|
|
|
|
|||||
Corporate, other & eliminations
|
—
|
|
|
(1
|
)
|
|
3
|
|
|
|
|
|||||
As reported in FCX's consolidated financial statements
|
$
|
5,522
|
|
|
$
|
3,082
|
|
|
$
|
1,013
|
|
|
|
|
a.
|
Represents the combined total for mining operations and the related eliminations, as presented in Note
10
.
|
|
|
|
|
|
|
|
|
|
||||||||
Six Months Ended June 30, 2014
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
||||||||
(In millions)
|
Oil
|
|
Natural Gas
|
|
NGLs
|
|
Total
U.S. Oil & Gas
|
|
||||||||
Oil and gas revenues before derivatives
|
$
|
2,334
|
|
|
$
|
194
|
|
|
$
|
88
|
|
|
$
|
2,616
|
|
|
Realized cash losses on derivative contracts
|
(115
|
)
|
|
(13
|
)
|
|
—
|
|
|
(128
|
)
|
|
||||
Realized revenues
|
$
|
2,219
|
|
|
$
|
181
|
|
|
$
|
88
|
|
|
2,488
|
|
|
|
Less: cash production costs
|
|
|
|
|
|
|
612
|
|
|
|||||||
Cash operating margin
|
|
|
|
|
|
|
1,876
|
|
|
|||||||
Less: depreciation, depletion and amortization
|
|
|
|
|
|
|
1,232
|
|
|
|||||||
Less: accretion and other costs
|
|
|
|
|
|
|
28
|
|
|
|||||||
Plus: net noncash mark-to-market gains on derivative
contracts
|
|
|
|
|
|
|
8
|
|
|
|||||||
Plus: other net adjustments
|
|
|
|
|
|
|
1
|
|
|
|||||||
Gross profit
|
|
|
|
|
|
|
$
|
625
|
|
|
||||||
|
|
|
|
|
|
|
|
|
||||||||
Oil (MMBbls)
|
23.5
|
|
|
|
|
|
|
|
|
|||||||
Gas (Bcf)
|
|
|
39.8
|
|
|
|
|
|
|
|||||||
NGLs (MMBbls)
|
|
|
|
|
2.1
|
|
|
|
|
|||||||
Oil Equivalents (MMBOE)
|
|
|
|
|
|
|
32.2
|
|
|
|||||||
|
|
|
|
|
|
|
|
|
||||||||
|
Oil
(per barrel) |
|
Natural Gas
(per MMBtu) |
|
NGLs
(per barrel) |
|
Per BOE
|
|
||||||||
Oil and gas revenues before derivatives
|
$
|
99.54
|
|
|
$
|
4.87
|
|
|
$
|
42.35
|
|
|
$
|
81.34
|
|
|
Realized cash losses on derivative contracts
|
(4.91
|
)
|
|
(0.32
|
)
|
|
—
|
|
|
(3.97
|
)
|
|
||||
Realized revenues
|
$
|
94.63
|
|
|
$
|
4.55
|
|
|
$
|
42.35
|
|
|
77.37
|
|
|
|
Less: cash production costs
|
|
|
|
|
|
|
19.03
|
|
|
|||||||
Cash operating margin
|
|
|
|
|
|
|
58.34
|
|
|
|||||||
Less: depreciation, depletion and amortization
|
|
|
|
|
|
|
38.30
|
|
|
|||||||
Less: accretion and other costs
|
|
|
|
|
|
|
0.87
|
|
|
|||||||
Plus: net noncash mark-to-market gains on derivative
contracts
|
|
|
|
|
|
|
0.23
|
|
|
|||||||
Plus: other net adjustments
|
|
|
|
|
|
|
0.04
|
|
|
|||||||
Gross profit
|
|
|
|
|
|
|
$
|
19.44
|
|
|
||||||
|
|
|
|
|
|
|
|
|
||||||||
Reconciliation to Amounts Reported
|
||||||||||||||||
(In Millions)
|
Revenues
|
|
Production and Delivery
|
|
Depreciation, Depletion and Amortization
|
|
|
|
||||||||
Totals presented above
|
$
|
2,616
|
|
|
$
|
612
|
|
|
$
|
1,232
|
|
|
|
|
||
Realized cash losses on derivative contracts
|
(128
|
)
|
|
—
|
|
|
—
|
|
|
|
|
|||||
Net noncash mark-to-market gains on derivative contracts
|
8
|
|
|
—
|
|
|
—
|
|
|
|
|
|||||
Accretion and other costs
|
—
|
|
|
28
|
|
|
—
|
|
|
|
|
|||||
Other net adjustments
|
1
|
|
|
—
|
|
|
—
|
|
|
|
|
|||||
U.S. oil & gas operations
|
2,497
|
|
|
640
|
|
|
1,232
|
|
|
|
|
|||||
Total mining
a
|
8,010
|
|
|
5,180
|
|
|
740
|
|
|
|
|
|||||
Corporate, other & eliminations
|
—
|
|
|
(1
|
)
|
|
7
|
|
|
|
|
|||||
As reported in FCX's consolidated financial statements
|
$
|
10,507
|
|
|
$
|
5,819
|
|
|
$
|
1,979
|
|
|
|
|
a.
|
Represents the combined total for mining operations and the related eliminations, as presented in Note
10
.
|
|
|
|
|
|
|
|
|
|
June 1, 2013, to June 30, 2013
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
(In millions)
|
Oil
|
|
Natural Gas
|
|
NGLs
|
|
Total
U.S. Oil & Gas
|
|
||||||||
Oil and gas revenues before derivatives
|
$
|
330
|
|
|
$
|
30
|
|
|
$
|
11
|
|
|
$
|
371
|
|
|
Realized cash gains on derivative contracts
|
1
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
||||
Realized revenues
|
$
|
331
|
|
|
$
|
30
|
|
|
$
|
11
|
|
|
372
|
|
|
|
Less: cash production costs
|
|
|
|
|
|
|
83
|
|
|
|||||||
Cash operating margin
|
|
|
|
|
|
|
289
|
|
|
|||||||
Less: depreciation, depletion and amortization
|
|
|
|
|
|
|
169
|
|
|
|||||||
Less: accretion and other costs
|
|
|
|
|
|
|
6
|
|
|
|||||||
Plus: net noncash mark-to-market losses on derivative contracts
|
|
|
|
|
|
|
(36
|
)
|
|
|||||||
Plus: other net adjustments
|
|
|
|
|
|
|
—
|
|
|
|||||||
Gross profit
|
|
|
|
|
|
|
$
|
78
|
|
|
||||||
|
|
|
|
|
|
|
|
|
||||||||
Oil (MMBbls)
|
3.4
|
|
|
|
|
|
|
|
|
|||||||
Gas (Bcf)
|
|
|
7.7
|
|
|
|
|
|
|
|||||||
NGLs (MMBbls)
|
|
|
|
|
0.3
|
|
|
|
|
|||||||
Oil Equivalents (MMBOE)
|
|
|
|
|
|
|
5.0
|
|
|
|||||||
|
|
|
|
|
|
|
|
|
||||||||
|
Oil
(per barrel) |
|
Natural Gas
(per MMBtu) |
|
NGLs
(per barrel) |
|
Per BOE
|
|
||||||||
Oil and gas revenues before derivatives
|
$
|
97.05
|
|
|
$
|
3.81
|
|
|
$
|
35.18
|
|
|
$
|
74.03
|
|
|
Realized cash gains on derivative contracts
|
0.37
|
|
|
0.05
|
|
|
—
|
|
|
0.34
|
|
|
||||
Realized revenues
|
$
|
97.42
|
|
|
$
|
3.86
|
|
|
$
|
35.18
|
|
|
74.37
|
|
|
|
Less: cash production costs
|
|
|
|
|
|
|
16.58
|
|
|
|||||||
Cash operating margin
|
|
|
|
|
|
|
57.79
|
|
|
|||||||
Less: depreciation, depletion and amortization
|
|
|
|
|
|
|
33.82
|
|
|
|||||||
Less: accretion and other costs
|
|
|
|
|
|
|
1.11
|
|
|
|||||||
Plus: net noncash mark-to-market losses on derivative contracts
|
|
|
|
|
|
|
(7.27
|
)
|
|
|||||||
Plus: other net adjustments
|
|
|
|
|
|
|
(0.02
|
)
|
|
|||||||
Gross profit
|
|
|
|
|
|
|
$
|
15.57
|
|
|
||||||
|
|
|
|
|
|
|
|
|
||||||||
Reconciliation to Amounts Reported for the Three Months Ended June 30, 2013
|
||||||||||||||||
(In Millions)
|
Revenues
|
|
Production and Delivery
|
|
Depreciation, Depletion and Amortization
|
|
|
|
||||||||
Totals presented above
|
$
|
371
|
|
|
$
|
83
|
|
|
$
|
169
|
|
|
|
|
||
Realized cash gains on derivative contracts
|
1
|
|
|
—
|
|
|
—
|
|
|
|
|
|||||
Net noncash mark-to-market losses on derivative contracts
|
(36
|
)
|
|
—
|
|
|
—
|
|
|
|
|
|||||
Accretion and other costs
|
—
|
|
|
6
|
|
|
—
|
|
|
|
|
|||||
Other net adjustments
|
—
|
|
|
—
|
|
|
—
|
|
|
|
|
|||||
U.S. oil & gas operations
|
336
|
|
|
89
|
|
|
169
|
|
|
|
|
|||||
Total mining
a
|
3,951
|
|
|
2,759
|
|
|
358
|
|
|
|
|
|||||
Corporate, other & eliminations
|
1
|
|
|
5
|
|
|
3
|
|
|
|
|
|||||
As reported in FCX's consolidated financial statements
|
$
|
4,288
|
|
|
$
|
2,853
|
|
|
$
|
530
|
|
|
|
|
a.
|
Represents the combined total for mining operations and the related eliminations, as presented in Note
10
.
|
Item 3.
|
Quantitative and Qualitative Disclosures About Market Risk.
|
Item 4.
|
Controls and Procedures.
|
(a)
|
Evaluation of disclosure controls and procedures.
Our chief executive officer and chief financial officer, with the participation of management, have evaluated the effectiveness of our “disclosure controls and procedures” (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934) as of the end of the period covered by this quarterly report on Form 10-Q. Based on their evaluation, they have concluded that our disclosure controls and procedures are effective as of
June 30, 2014
.
|
(b)
|
Changes in internal control over financial reporting.
There has been no change in our internal control over financial reporting that occurred during the quarter ended
June 30, 2014
, that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.
|
Part II.
|
OTHER INFORMATION
|
Item 1.
|
Legal Proceedings.
|
Item 2.
|
Unregistered Sales of Equity Securities and Use of Proceeds.
|
(c)
|
The following table sets forth information with respect to shares of our common stock purchased by us during the three months ended
June 30, 2014
:
|
Period
|
|
(a) Total Number
of Shares Purchased
|
|
(b) Average
Price Paid Per Share
|
|
(c) Total Number of
Shares Purchased as Part
of Publicly Announced Plans or Programs
a
|
|
(d) Maximum Number
of Shares That May
Yet Be Purchased Under the Plans or Programs
a
|
||||||
April 1-30, 2014
|
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
23,685,500
|
|
|
May 1-31, 2014
|
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
23,685,500
|
|
|
June 1-30, 2014
|
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
23,685,500
|
|
|
Total
|
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
23,685,500
|
|
a.
|
On July 21, 2008, our Board of Directors approved an increase in our open-market share purchase program for up to 30 million shares. There have been no purchases under this program since 2008. This program does not have an expiration date.
|
Item 4.
|
Mine Safety Disclosure.
|
Item 6.
|
Exhibits.
|
|
FREEPORT-McMoRan INC.
|
|
|
|
|
|
By:
|
/s/ C. Donald Whitmire, Jr.
|
|
|
C. Donald Whitmire, Jr.
|
|
|
Vice President and
|
|
|
Controller - Financial Reporting
|
|
|
(authorized signatory
|
|
|
and Principal Accounting Officer)
|
FREEPORT-McMoRan INC.
|
|||||
EXHIBIT INDEX
|
|||||
|
|
Filed
|
|
||
Exhibit
|
|
with this
|
Incorporated by Reference
|
||
Number
|
Exhibit Title
|
Form 10-Q
|
Form
|
File No.
|
Date Filed
|
4.09
|
Tenth Supplemental Indenture dated as of September 11, 2009 to the Indenture dated as of March 13, 2007, among Plains Exploration & Production Company, the Subsidiary Guarantors parties thereto and Wells Fargo Bank, N.A., as Trustee (relating to the 8.625% Senior Notes due 2019)
|
|
8-K
|
001-31470
|
9/11/2009
|
4.10
|
Eleventh Supplemental Indenture dated as of March 29, 2010 to the Indenture dated as of March 13, 2007, among Plains Exploration & Production Company, the Subsidiary Guarantors parties thereto and Wells Fargo Bank, N.A., as Trustee (relating to the 7.625% Senior Notes due 2020)
|
|
8-K
|
001-31470
|
3/29/2010
|
4.11
|
Twelfth Supplemental Indenture dated as of March 29, 2011 to the Indenture dated as of March 13, 2007, among Plains Exploration & Production Company, the Subsidiary Guarantors parties thereto and Wells Fargo Bank, N.A., as Trustee (relating to the 6.625% Senior Notes due 2021)
|
|
8-K
|
001-31470
|
3/29/2011
|
4.12
|
Thirteenth Supplemental Indenture dated as of November 21, 2011 to the Indenture dated as of March 13, 2007, among Plains Exploration & Production Company, the Subsidiary Guarantors parties thereto and Wells Fargo Bank, N.A., as Trustee (relating to the 6.75% Senior Notes due 2022)
|
|
8-K
|
001-31470
|
11/22/2011
|
4.13
|
Fourteenth Supplemental Indenture dated as of April 27, 2012 to the Indenture dated as of March 13, 2007, among Plains Exploration & Production Company, the Subsidiary Guarantors parties thereto and Wells Fargo Bank, N.A., as Trustee (relating to the 6.125% Senior Notes due 2019)
|
|
8-K
|
001-31470
|
4/27/2012
|
4.14
|
Sixteenth Supplemental Indenture dated as of October 26, 2012 to the Indenture dated as of March 13, 2007, among Plains Exploration & Production Company, the Subsidiary Guarantors parties thereto and Wells Fargo Bank, N.A., as Trustee (relating to the 6.5% Senior Notes due 2020)
|
|
8-K
|
001-31470
|
10/26/2012
|
4.15
|
Seventeenth Supplemental Indenture dated as of October 26, 2012 to the Indenture dated as of March 13, 2007, among Plains Exploration & Production Company, the Subsidiary Guarantors parties thereto and Wells Fargo Bank, N.A., as Trustee (relating to the 6.875% Senior Notes due 2023)
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|
8-K
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001-31470
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10/26/2012
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4.16
|
Eighteenth Supplemental Indenture dated as of May 31, 2013 to the Indenture dated as of March 13, 2007, among Freeport-McMoRan Oil & Gas LLC, as Successor Issuer, FCX Oil & Gas Inc., as Co-Issuer, FCX, as Parent Guarantor, Plains Exploration & Production Company, as Original Issuer, and Wells Fargo Bank, N.A., as Trustee (relating to the 8.625% Senior Notes due 2019, the 7.625% Senior Notes due 2020, the 6.625% Senior Notes due 2021, the 6.75% Senior Notes due 2022, the 6.125% Senior Notes due 2019, the 6.5% Senior Notes due 2020, and the 6.875% Senior Notes due 2023)
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8-K
|
001-11307-01
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6/3/2013
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4.17
|
Form of Indenture dated as of September 22, 1997, between Phelps Dodge Corporation and The Chase Manhattan Bank, as Trustee (relating to the 7.125% Senior Notes due 2027, the 9.50% Senior Notes due 2031, and the 6.125% Senior Notes due 2034)
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S-3
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333-36415
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9/25/1997
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FREEPORT-McMoRan INC.
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|||||
EXHIBIT INDEX
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|||||
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Filed
|
|
||
Exhibit
|
|
with this
|
Incorporated by Reference
|
||
Number
|
Exhibit Title
|
Form 10-Q
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Form
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File No.
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Date Filed
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4.18
|
Form of 7.125% Debenture due November 1, 2027 of Phelps Dodge Corporation issued on November 5, 1997, pursuant to the Indenture dated as of September 22, 1997, between Phelps Dodge Corporation and The Chase Manhattan Bank, as Trustee (relating to the 7.125% Senior Notes due 2027)
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|
8-K
|
01-00082
|
11/3/1997
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4.19
|
Form of 9.5% Note due June 1, 2031 of Phelps Dodge Corporation issued on May 30, 2001, pursuant to the Indenture dated as of September 22, 1997, between Phelps Dodge Corporation and First Union National Bank, as successor Trustee (relating to the 9.50% Senior Notes due 2031)
|
|
8-K
|
01-00082
|
5/30/2001
|
4.20
|
Form of 6.125% Note due March 15, 2034 of Phelps Dodge Corporation issued on March 4, 2004, pursuant to the Indenture dated as of September 22, 1997, between Phelps Dodge Corporation and First Union National Bank, as successor Trustee (relating to the 6.125% Senior Notes due 2034)
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|
10-K
|
01-00082
|
3/7/2005
|
4.21
|
Registration Rights Agreement dated as of March 7, 2013, among FCX and J.P. Morgan Securities LLC and Merrill Lynch, Pierce, Fenner & Smith Incorporated, as representatives of the Initial Purchasers (relating to the 2.375% Senior Notes due 2018)
|
|
8-K
|
001-11307-01
|
3/7/2013
|
4.22
|
Registration Rights Agreement dated as of March 7, 2013, among FCX and J.P. Morgan Securities LLC and Merrill Lynch, Pierce, Fenner & Smith Incorporated, as representatives of the Initial Purchasers (relating to the 3.100% Senior Notes due 2020)
|
|
8-K
|
001-11307-01
|
3/7/2013
|
4.23
|
Registration Rights Agreement dated as of March 7, 2013, among FCX and J.P. Morgan Securities LLC and Merrill Lynch, Pierce, Fenner & Smith Incorporated, as representatives of the Initial Purchasers (relating to the 3.875% Senior Notes due 2023)
|
|
8-K
|
001-11307-01
|
3/7/2013
|
4.24
|
Registration Rights Agreement dated as of March 7, 2013, among FCX and J.P. Morgan Securities LLC and Merrill Lynch, Pierce, Fenner & Smith Incorporated, as representatives of the Initial Purchasers (relating to the 5.450% Senior Notes due 2043)
|
|
8-K
|
001-11307-01
|
3/7/2013
|
10.1
|
First Amendment dated as of May 30, 2014, to the Revolving Credit Agreement dated as of February 14, 2013, among FCX, PT Freeport Indonesia and Freeport-McMoRan Oil & Gas LLC, as borrowers, JPMorgan Chase Bank, N.A., as administrative agent and the swingline lender, Bank of America, N.A., as syndication agent, BNP Paribas, Citibank, N.A., HSBC Bank USA, National Association, Mizuho Bank, Ltd., Sumitomo Mitsui Banking Corporation, The Bank of Nova Scotia and The Bank of Tokyo-Mitsubishi UFJ, Ltd., as co-documentation agents, and each of the lenders and issuing banks party thereto.
|
|
8-K
|
001-11307-01
|
6/2/2014
|
10.2*
|
FCX Annual Incentive Plan (For Fiscal Years Ending 2014 - 2018).
|
|
8-K
|
001-11307-01
|
6/18/2014
|
Form of Notice of Grant of Restricted Stock Units under the 2006 Stock Incentive Plan (for grants made to non-management directors).
|
X
|
|
|
|
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10.4
|
Memorandum of Understanding dated as of July 25, 2014, between the Directorate General of Mineral and Coal, the Ministry of Energy and Mineral Resources and PT Freeport Indonesia on Adjustment of the Contract of Work.
|
|
8-K
|
001-11307-01
|
7/28/2014
|