Freeport-McMoRan Copper & Gold Completes Oil & Gas Transactions, Creates Premier U.S. Based Natural Resource Company

Freeport-McMoRan Copper & Gold Inc.

today announced that it has completed the final step of its three-way combination with Plains Exploration & Production Company

and McMoRan Exploration Co.

. 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.”