Freeport-McMoRan Copper & Gold Inc. FCX today announced that it has
completed the final step of its three-way combination with Plains Exploration
& Production Company PXP and McMoRan Exploration Co. MMR. The
PXP transaction closed on May 31, 2013 and the MMR transaction closed on June
3, 2013.
The transactions add a high quality portfolio of oil and gas assets to FCX's
global mining business to create a premier U.S.-based natural resource
company. The acquired businesses provide exposure to energy markets with
positive fundamentals, strong margins and cash flows, exploration leverage and
financially attractive long-term investment opportunities. The portfolio of
assets includes established oil production facilities in California, a growing
production profile in the onshore Eagle Ford trend in Texas, significant
production facilities and growth potential in the Deepwater Gulf of Mexico and
large onshore resources in the Haynesville natural gas trend in Louisiana. The
company will also have an industry leading position in the emerging shallow
water, ultra-deep gas trend on the Shelf of the Gulf of Mexico and onshore in
South Louisiana.
The value of the transactions totaled $19 billion, including $10.0 billion in
assumed debt, $5.5 billion in cash consideration and 91 million shares of FCX
stock (valued at $2.8 billion as of May 31, 2013) and other consideration,
including the PXP supplemental dividend and the value of the royalty trust
units to MMR shareholders. After giving effect to these transactions, FCX has
approximately 1,038 million shares outstanding.
James R. Moffett, Chairman of the Board of FCX, said: “These transactions will
enhance our portfolio of large-scale, geographically diverse natural resource
assets with exceptional exploration and development characteristics. We are
pleased to welcome the PXP and MMR oil and gas teams to FCX's global family
and look forward to the opportunities for value creation that our expanded
asset base provides for shareholders.”
Richard C. Adkerson, Vice Chairman, President and Chief Executive Officer of
FCX, said: “The transaction adds a high quality portfolio of North American
based oil and gas assets with strong current cash flows, a financially
attractive growth profile and complementary exposure to commodities with
favorable supply and demand fundamentals essential to the world's economies.
We are focused on executing our strategy of delivering strong operational and
project development performance to provide cash flows to achieve our debt
reduction targets, generate attractive returns through organic growth and
continue our long standing tradition of providing cash returns to
shareholders.”
James. C. Flores, Vice Chairman of FCX and President and Chief Executive
Officer of Freeport-McMoRan Oil & Gas, FCX's new wholly owned subsidiary,
said: “The addition of PXP's U.S. oil and gas assets to FCX's global mining
business establishes a significant, long-term commodities business positioned
to generate meaningful returns over an extended period. We are excited to join
FCX's global team and will be focused on executing our highly profitable,
long-term, oil-focused growth plan, which is complementary to the growth
profile and cash margins of the large, low-cost, expandable asset base
characteristics of FCX.”
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