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, 2016
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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,
2016 |
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December 31,
2015 |
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(In millions)
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||||||
ASSETS
|
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Current assets:
|
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|
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||||
Cash and cash equivalents
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$
|
352
|
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$
|
195
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Trade accounts receivable
|
694
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660
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Income and other tax receivables
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916
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1,341
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Other accounts receivable
|
102
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154
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Inventories:
|
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Mill and leach stockpiles
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1,348
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1,539
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Materials and supplies, net
|
1,338
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1,594
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Product
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1,058
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1,071
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Other current assets
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226
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164
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Assets held for sale
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4,666
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744
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Total current assets
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10,700
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7,462
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Property, plant, equipment and mining development costs, net
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23,609
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24,248
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Oil and gas properties, net - full cost method
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|
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Subject to amortization, less accumulated amortization and impairment
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1,381
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2,262
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Not subject to amortization
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1,656
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4,831
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Long-term mill and leach stockpiles
|
1,742
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1,663
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Other assets
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2,208
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2,001
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Assets held for sale
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—
|
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4,110
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Total assets
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$
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41,296
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$
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46,577
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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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2,569
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$
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3,255
|
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Current portion of debt
|
770
|
|
|
649
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Current portion of environmental and asset retirement obligations
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322
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272
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||
Accrued income taxes
|
55
|
|
|
23
|
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||
Liabilities held for sale
|
824
|
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108
|
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Total current liabilities
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4,540
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4,307
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Long-term debt, less current portion
|
18,549
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19,779
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Deferred income taxes
|
3,758
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3,607
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Environmental and asset retirement obligations, less current portion
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3,697
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3,717
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Other liabilities
|
1,662
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1,641
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Liabilities held for sale
|
—
|
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718
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Total liabilities
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32,206
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33,769
|
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Redeemable noncontrolling interest
|
771
|
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764
|
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Equity:
|
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Stockholders’ equity:
|
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Common stock
|
145
|
|
|
137
|
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||
Capital in excess of par value
|
25,105
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24,283
|
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Accumulated deficit
|
(17,049
|
)
|
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(12,387
|
)
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||
Accumulated other comprehensive loss
|
(488
|
)
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(503
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)
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||
Common stock held in treasury
|
(3,710
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)
|
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(3,702
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)
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Total stockholders’ equity
|
4,003
|
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7,828
|
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Noncontrolling interests
|
4,316
|
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4,216
|
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||
Total equity
|
8,319
|
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12,044
|
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Total liabilities and equity
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$
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41,296
|
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$
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46,577
|
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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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2016
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2015
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2016
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2015
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(In millions, except per share amounts)
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Revenues
|
$
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3,334
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$
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3,938
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$
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6,576
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$
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7,709
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Cost of sales:
|
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Production and delivery
|
2,956
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2,651
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5,455
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5,330
|
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Depreciation, depletion and amortization
|
632
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|
833
|
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1,294
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1,699
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|
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Impairment of oil and gas properties
|
291
|
|
|
2,686
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4,078
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5,790
|
|
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Total cost of sales
|
3,879
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6,170
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10,827
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12,819
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Selling, general and administrative expenses
|
160
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148
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298
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299
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Mining exploration and research expenses
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15
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30
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33
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57
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Environmental obligations and shutdown costs
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11
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11
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21
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24
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Net gain on sales of assets
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(749
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)
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—
|
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(749
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)
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(39
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)
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Total costs and expenses
|
3,316
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|
|
6,359
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10,430
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13,160
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|
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Operating income (loss)
|
18
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(2,421
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)
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(3,854
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)
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(5,451
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)
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Interest expense, net
|
(196
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)
|
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(142
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)
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(387
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)
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(281
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)
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Net gain on early extinguishment of debt
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39
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—
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36
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—
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||||
Other income, net
|
25
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|
36
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64
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|
|
43
|
|
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Loss before income taxes and equity in affiliated companies' net earnings
|
(114
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)
|
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(2,527
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)
|
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(4,141
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)
|
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(5,689
|
)
|
||||
(Provision for) benefit from income taxes
|
(116
|
)
|
|
699
|
|
|
(193
|
)
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1,413
|
|
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Equity in affiliated companies’ net earnings
|
1
|
|
|
—
|
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|
8
|
|
|
1
|
|
||||
Net loss from continuing operations
|
(229
|
)
|
|
(1,828
|
)
|
|
(4,326
|
)
|
|
(4,275
|
)
|
||||
Net (loss) income from discontinued operations
|
(181
|
)
|
|
29
|
|
|
(185
|
)
|
|
70
|
|
||||
Net loss
|
(410
|
)
|
|
(1,799
|
)
|
|
(4,511
|
)
|
|
(4,205
|
)
|
||||
Net income attributable to noncontrolling interests:
|
|
|
|
|
|
|
|
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Continuing operations
|
(47
|
)
|
|
(16
|
)
|
|
(109
|
)
|
|
(48
|
)
|
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Discontinued operations
|
(12
|
)
|
|
(26
|
)
|
|
(22
|
)
|
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(52
|
)
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Preferred dividends attributable to redeemable noncontrolling interest
|
(10
|
)
|
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(10
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)
|
|
(21
|
)
|
|
(20
|
)
|
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Net loss attributable to common stockholders
|
$
|
(479
|
)
|
|
$
|
(1,851
|
)
|
|
$
|
(4,663
|
)
|
|
$
|
(4,325
|
)
|
|
|
|
|
|
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|
|
||||||||
Basic and diluted net (loss) income per share attributable to common stockholders:
|
|
|
|
|
|
|
|
||||||||
Continuing operations
|
$
|
(0.23
|
)
|
|
$
|
(1.78
|
)
|
|
$
|
(3.54
|
)
|
|
$
|
(4.18
|
)
|
Discontinued operations
|
(0.15
|
)
|
|
—
|
|
|
(0.16
|
)
|
|
0.02
|
|
||||
|
$
|
(0.38
|
)
|
|
$
|
(1.78
|
)
|
|
$
|
(3.70
|
)
|
|
$
|
(4.16
|
)
|
|
|
|
|
|
|
|
|
||||||||
Basic and diluted weighted-average common shares outstanding
|
1,269
|
|
|
1,040
|
|
|
1,260
|
|
|
1,040
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Dividends declared per share of common stock
|
$
|
—
|
|
|
$
|
0.1605
|
|
|
$
|
—
|
|
|
$
|
0.2105
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
|
June 30,
|
|
June 30,
|
||||||||||||
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
|
|
(In millions)
|
||||||||||||||
Net loss
|
|
$
|
(410
|
)
|
|
$
|
(1,799
|
)
|
|
$
|
(4,511
|
)
|
|
$
|
(4,205
|
)
|
|
|
|
|
|
|
|
|
|
||||||||
Other comprehensive income, net of taxes:
|
|
|
|
|
|
|
|
|
||||||||
Unrealized gains on securities
|
|
1
|
|
|
—
|
|
|
1
|
|
|
—
|
|
||||
Defined benefit plans:
|
|
|
|
|
|
|
|
|
||||||||
Amortization of unrecognized amounts included in net periodic benefit costs
|
|
15
|
|
|
8
|
|
|
23
|
|
|
16
|
|
||||
Foreign exchange (losses) gains
|
|
(1
|
)
|
|
1
|
|
|
(10
|
)
|
|
5
|
|
||||
Other comprehensive income
|
|
15
|
|
|
9
|
|
|
14
|
|
|
21
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Total comprehensive loss
|
|
(395
|
)
|
|
(1,790
|
)
|
|
(4,497
|
)
|
|
(4,184
|
)
|
||||
Total comprehensive income attributable to noncontrolling interests
|
|
(59
|
)
|
|
(42
|
)
|
|
(130
|
)
|
|
(100
|
)
|
||||
Preferred dividends attributable to redeemable noncontrolling interest
|
|
(10
|
)
|
|
(10
|
)
|
|
(21
|
)
|
|
(20
|
)
|
||||
Total comprehensive loss attributable to common stockholders
|
|
$
|
(464
|
)
|
|
$
|
(1,842
|
)
|
|
$
|
(4,648
|
)
|
|
$
|
(4,304
|
)
|
|
Six Months Ended
|
|
||||||
|
June 30,
|
|
||||||
|
2016
|
|
2015
|
|
||||
|
(In millions)
|
|
||||||
Cash flow from operating activities:
|
|
|
|
|
||||
Net loss
|
$
|
(4,511
|
)
|
|
$
|
(4,205
|
)
|
|
Adjustments to reconcile net loss to net cash provided by operating activities:
|
|
|
|
|
||||
Depreciation, depletion and amortization
|
1,374
|
|
|
1,829
|
|
|
||
Impairment of oil and gas properties
|
4,078
|
|
|
5,790
|
|
|
||
Non-cash oil and gas drillship settlements/idle rig costs
|
612
|
|
|
—
|
|
|
||
Oil and gas inventory adjustments and write downs
|
82
|
|
|
23
|
|
|
||
Mining inventory adjustments
|
7
|
|
|
63
|
|
|
||
Net gain on sales of assets
|
(749
|
)
|
|
(39
|
)
|
|
||
Net charges for environmental and asset retirement obligations, including accretion
|
107
|
|
|
109
|
|
|
||
Payments for environmental and asset retirement obligations
|
(116
|
)
|
|
(81
|
)
|
|
||
Net gain on early extinguishment of debt
|
(36
|
)
|
|
—
|
|
|
||
Deferred income taxes
|
169
|
|
|
(1,432
|
)
|
|
||
Estimated loss on disposal of discontinued operations
|
177
|
|
|
—
|
|
|
||
Increase in long-term mill and leach stockpiles
|
(99
|
)
|
|
(104
|
)
|
|
||
Net gains on crude oil derivative contracts
|
—
|
|
|
(58
|
)
|
|
||
Other, net
|
53
|
|
|
81
|
|
|
||
Changes in working capital and other tax payments, excluding amounts from dispositions:
|
|
|
|
|
||||
Accounts receivable
|
259
|
|
|
493
|
|
|
||
Inventories
|
190
|
|
|
8
|
|
|
||
Other current assets
|
(53
|
)
|
|
(1
|
)
|
|
||
Accounts payable and accrued liabilities
|
44
|
|
|
(205
|
)
|
|
||
Accrued income taxes and changes in other tax payments
|
26
|
|
|
(485
|
)
|
|
||
Net cash provided by operating activities
|
1,614
|
|
|
1,786
|
|
|
||
|
|
|
|
|
||||
Cash flow from investing activities:
|
|
|
|
|
||||
Capital expenditures:
|
|
|
|
|
||||
North America copper mines
|
(76
|
)
|
|
(214
|
)
|
|
||
South America
|
(293
|
)
|
|
(902
|
)
|
|
||
Indonesia
|
(459
|
)
|
|
(438
|
)
|
|
||
Molybdenum mines
|
(1
|
)
|
|
(7
|
)
|
|
||
United States oil and gas operations
|
(868
|
)
|
|
(1,795
|
)
|
|
||
Other
|
(118
|
)
|
|
(172
|
)
|
|
||
Net proceeds from sale of additional interest in Morenci
|
996
|
|
|
—
|
|
|
||
Net proceeds from sale of other assets
|
290
|
|
|
150
|
|
|
||
Other, net
|
(6
|
)
|
|
(14
|
)
|
|
||
Net cash used in investing activities
|
(535
|
)
|
|
(3,392
|
)
|
|
||
|
|
|
|
|
||||
Cash flow from financing activities:
|
|
|
|
|
||||
Proceeds from debt
|
2,811
|
|
|
4,422
|
|
|
||
Repayments of debt
|
(3,649
|
)
|
|
(2,360
|
)
|
|
||
Net proceeds from sale of common stock
|
32
|
|
|
—
|
|
|
||
Cash dividends and distributions paid:
|
|
|
|
|
||||
Common stock
|
(5
|
)
|
|
(380
|
)
|
|
||
Noncontrolling interests
|
(39
|
)
|
|
(60
|
)
|
|
||
Stock-based awards net payments, including excess tax benefit
|
(5
|
)
|
|
(7
|
)
|
|
||
Debt financing costs and other, net
|
(18
|
)
|
|
(7
|
)
|
|
||
Net cash (used in) provided by financing activities
|
(873
|
)
|
|
1,608
|
|
|
||
|
|
|
|
|
||||
Net increase in cash and cash equivalents
|
206
|
|
|
2
|
|
|
||
Increase in cash and cash equivalents in assets held for sale
|
(49
|
)
|
|
(1
|
)
|
|
||
Cash and cash equivalents at beginning of year
|
195
|
|
|
317
|
|
|
||
Cash and cash equivalents at end of period
|
$
|
352
|
|
|
$
|
318
|
|
|
|
Stockholders’ Equity
|
|
|
|
|
||||||||||||||||||||||||||||||||
|
Common Stock
|
|
|
|
Accum-ulated Deficit
|
|
Accumu-
lated Other Compre- hensive Loss |
|
Common Stock
Held in Treasury
|
|
Total
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, 2015
|
1,374
|
|
|
$
|
137
|
|
|
$
|
24,283
|
|
|
$
|
(12,387
|
)
|
|
$
|
(503
|
)
|
|
128
|
|
|
$
|
(3,702
|
)
|
|
$
|
7,828
|
|
|
$
|
4,216
|
|
|
$
|
12,044
|
|
Issuance of common stock
|
70
|
|
|
8
|
|
|
793
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3
|
)
|
|
798
|
|
|
—
|
|
|
798
|
|
||||||||
Exercised and issued stock-based awards
|
3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Stock-based compensation
|
—
|
|
|
—
|
|
|
33
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
33
|
|
|
—
|
|
|
33
|
|
||||||||
Reserve on tax benefit for stock-based awards
|
—
|
|
|
—
|
|
|
(4
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(4
|
)
|
|
—
|
|
|
(4
|
)
|
||||||||
Tender of shares for stock-based awards
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
(5
|
)
|
|
(5
|
)
|
|
—
|
|
|
(5
|
)
|
||||||||
Dividends on common stock
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
1
|
|
||||||||
Dividends to noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(25
|
)
|
|
(25
|
)
|
||||||||
Changes in noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(5
|
)
|
|
(5
|
)
|
||||||||
Net loss attributable to common stockholders
|
—
|
|
|
—
|
|
|
—
|
|
|
(4,663
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(4,663
|
)
|
|
—
|
|
|
(4,663
|
)
|
||||||||
Net income attributable to noncontrolling interests, including discontinued operations
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
131
|
|
|
131
|
|
||||||||
Other comprehensive income (loss)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
15
|
|
|
—
|
|
|
—
|
|
|
15
|
|
|
(1
|
)
|
|
14
|
|
||||||||
Balance at June 30, 2016
|
1,447
|
|
|
$
|
145
|
|
|
$
|
25,105
|
|
|
$
|
(17,049
|
)
|
|
$
|
(488
|
)
|
|
129
|
|
|
$
|
(3,710
|
)
|
|
$
|
4,003
|
|
|
$
|
4,316
|
|
|
$
|
8,319
|
|
•
|
the present value, discounted at
10 percent
, of estimated future net cash flows from the related proved oil and gas reserves, net of estimated future income taxes; plus
|
•
|
the cost of the related unproved properties not being amortized; plus
|
•
|
the lower of cost or estimated fair value of the related unproved properties included in the costs being amortized (net of related tax effects).
|
|
June 30,
2016 |
|
December 31, 2015
|
||||
Assets
|
|
|
|
||||
Cash and cash equivalents
|
$
|
78
|
|
|
$
|
29
|
|
Inventories
|
1,152
|
|
|
584
|
|
||
Receivables and other current assets
|
154
|
|
|
131
|
|
||
Property, plant, equipment and mining development costs, net
|
3,056
|
|
|
—
|
|
||
Other assets
|
226
|
|
|
—
|
|
||
Total current assets held for sale
|
$
|
4,666
|
|
|
$
|
744
|
|
|
|
|
|
||||
Property, plant, equipment and mining development costs, net
|
$
|
—
|
|
|
$
|
3,261
|
|
Inventories
|
—
|
|
|
608
|
|
||
Other assets
|
—
|
|
|
241
|
|
||
Total long-term assets held for sale
|
$
|
—
|
|
|
$
|
4,110
|
|
|
|
|
|
||||
Liabilities
|
|
|
|
||||
Accounts payable and accrued liabilities
|
$
|
99
|
|
|
$
|
108
|
|
Deferred income taxes
|
679
|
|
|
—
|
|
||
Asset retirement obligations and other liabilities
|
46
|
|
|
—
|
|
||
Total current liabilities held for sale
|
$
|
824
|
|
|
$
|
108
|
|
|
|
|
|
||||
Deferred income taxes
|
$
|
—
|
|
|
$
|
681
|
|
Asset retirement obligations and other liabilities
|
—
|
|
|
37
|
|
||
Total long-term liabilities held for sale
|
$
|
—
|
|
|
$
|
718
|
|
|
|
|
|
||||
Noncontrolling interests
|
$
|
1,185
|
|
|
$
|
1,178
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
June 30,
|
|
June 30,
|
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Revenues
a
|
$
|
272
|
|
|
$
|
310
|
|
|
$
|
558
|
|
|
$
|
692
|
|
Costs and expenses:
|
|
|
|
|
|
|
|
||||||||
Production and delivery costs
|
256
|
|
|
197
|
|
|
482
|
|
|
430
|
|
||||
Depreciation, depletion and amortization
|
20
|
|
b
|
57
|
|
|
80
|
|
b
|
130
|
|
||||
Interest expense allocated from parent
c
|
11
|
|
|
7
|
|
|
21
|
|
|
14
|
|
||||
Other costs and expenses, net
|
5
|
|
|
8
|
|
|
6
|
|
|
17
|
|
||||
(Loss) income before income taxes and estimated loss on disposal
|
(20
|
)
|
|
41
|
|
|
(31
|
)
|
|
101
|
|
||||
Estimated loss on disposal
d
|
(177
|
)
|
|
—
|
|
|
(177
|
)
|
|
—
|
|
||||
Net (loss) income before income taxes
|
(197
|
)
|
|
41
|
|
|
(208
|
)
|
|
101
|
|
||||
Benefit from (provision for) income taxes
|
16
|
|
|
(12
|
)
|
|
23
|
|
|
(31
|
)
|
||||
Net (loss) income from discontinued operations
|
$
|
(181
|
)
|
|
$
|
29
|
|
|
$
|
(185
|
)
|
|
$
|
70
|
|
a.
|
In accordance with accounting guidance, amounts are net of eliminations of intercompany sales totaling
$41 million
in both second-quarter 2016 and 2015,
$73 million
for the first six months of 2016 and
$69 million
for the first six months of 2015.
|
b.
|
In accordance with accounting guidance, depreciation, depletion and amortization is not recognized subsequent to classification as assets held for sale.
|
c.
|
In accordance with accounting guidance, interest associated with FCX's Term Loan that will be required to be repaid as a result of the sale of TFHL has been allocated to discontinued operations.
|
d.
|
In accordance with accounting guidance, an estimated loss on disposal was recorded, which will be adjusted through closing of the transaction.
|
|
Six Months Ended
|
||||||
|
June 30,
|
||||||
|
2016
|
|
2015
|
||||
Net cash provided by operating activities
|
$
|
157
|
|
|
$
|
153
|
|
Net cash used in investing activities
|
(57
|
)
|
|
(105
|
)
|
||
Net cash used in financing activities
|
(51
|
)
|
|
(47
|
)
|
||
Increase in cash and cash equivalents in assets held for sale
|
$
|
49
|
|
|
$
|
1
|
|
|
Three Months Ended
|
|
Six Months Ended
|
|
||||||||||||
|
June 30,
|
|
June 30,
|
|
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
||||||||
Net loss from continuing operations
|
$
|
(229
|
)
|
|
$
|
(1,828
|
)
|
|
$
|
(4,326
|
)
|
|
$
|
(4,275
|
)
|
|
Net income from continuing operations attributable to noncontrolling interests
|
(47
|
)
|
|
(16
|
)
|
|
(109
|
)
|
|
(48
|
)
|
|
||||
Preferred dividends on redeemable noncontrolling interest
|
(10
|
)
|
|
(10
|
)
|
|
(21
|
)
|
|
(20
|
)
|
|
||||
Undistributed earnings allocated to participating securities
|
(3
|
)
|
|
(3
|
)
|
|
(3
|
)
|
|
(3
|
)
|
|
||||
Net loss from continuing operations attributable to common stockholders
|
$
|
(289
|
)
|
|
$
|
(1,857
|
)
|
|
$
|
(4,459
|
)
|
|
$
|
(4,346
|
)
|
|
|
|
|
|
|
|
|
|
|
||||||||
Net (loss) income from discontinued operations
|
$
|
(181
|
)
|
|
$
|
29
|
|
|
$
|
(185
|
)
|
|
$
|
70
|
|
|
Net income from discontinued operations attributable to noncontrolling interests
|
(12
|
)
|
|
(26
|
)
|
|
(22
|
)
|
|
(52
|
)
|
|
||||
Net (loss) income from discontinued operations attributable to common stockholders
|
$
|
(193
|
)
|
|
$
|
3
|
|
|
$
|
(207
|
)
|
|
$
|
18
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Net loss attributable to common stockholders
|
$
|
(482
|
)
|
|
$
|
(1,854
|
)
|
|
$
|
(4,666
|
)
|
|
$
|
(4,328
|
)
|
|
|
|
|
|
|
|
|
|
|
||||||||
Basic weighted-average shares of common stock outstanding
|
1,269
|
|
|
1,040
|
|
|
1,260
|
|
|
1,040
|
|
|
||||
Add shares issuable upon exercise or vesting of dilutive stock options and RSUs
|
—
|
|
a
|
—
|
|
a
|
—
|
|
a
|
—
|
|
a
|
||||
Diluted weighted-average shares of common stock outstanding
|
1,269
|
|
|
1,040
|
|
|
1,260
|
|
|
1,040
|
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
Basic and diluted net (loss) income per share attributable to common stockholders:
|
|
|
|
|
|
|
|
|
||||||||
Continuing operations
|
$
|
(0.23
|
)
|
|
$
|
(1.78
|
)
|
|
$
|
(3.54
|
)
|
|
$
|
(4.18
|
)
|
|
Discontinued operations
|
(0.15
|
)
|
|
—
|
|
|
(0.16
|
)
|
|
0.02
|
|
|
||||
|
$
|
(0.38
|
)
|
|
$
|
(1.78
|
)
|
|
$
|
(3.70
|
)
|
|
$
|
(4.16
|
)
|
|
a.
|
Excludes
12 million
shares of common stock for
second-quarter
2016
,
15 million
for
second-quarter
2015
,
11 million
for
the first six months
of
2016
, and
14 million
for
the first six months
of
2015
associated with outstanding stock options with exercise prices less than the average market price of FCX's common stock and RSUs that were anti-dilutive.
|
|
June 30,
2016 |
|
December 31, 2015
|
|
||||
Current inventories:
|
|
|
|
|
||||
Mill stockpiles
|
$
|
146
|
|
|
$
|
137
|
|
|
Leach stockpiles
|
1,202
|
|
|
1,402
|
|
|
||
Total current mill and leach stockpiles
|
$
|
1,348
|
|
|
$
|
1,539
|
|
|
|
|
|
|
|
||||
Total materials and supplies, net
a
|
$
|
1,338
|
|
|
$
|
1,594
|
|
|
|
|
|
|
|
||||
Raw materials (primarily concentrate)
|
$
|
222
|
|
|
$
|
220
|
|
|
Work-in-process
|
93
|
|
|
108
|
|
|
||
Finished goods
|
743
|
|
|
743
|
|
|
||
Total product inventories
|
$
|
1,058
|
|
|
$
|
1,071
|
|
|
|
|
|
|
|
||||
Long-term inventories:
|
|
|
|
|
||||
Mill stockpiles
|
$
|
584
|
|
|
$
|
480
|
|
|
Leach stockpiles
|
1,158
|
|
|
1,183
|
|
|
||
Total long-term mill and leach stockpiles
b
|
$
|
1,742
|
|
|
$
|
1,663
|
|
|
a.
|
Materials and supplies inventory was net of obsolescence reserves totaling
$29 million
at
June 30, 2016
, and
$26 million
at
December 31, 2015
.
|
b.
|
Estimated metals in stockpiles not expected to be recovered within the next 12 months.
|
|
Three Months Ended
|
|
Six Months Ended
|
|
||||||||||||
|
June 30,
|
|
June 30,
|
|
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
||||||||
U.S. operations
|
$
|
(49
|
)
|
|
$
|
829
|
|
|
$
|
(38
|
)
|
|
$
|
1,664
|
|
|
International operations
|
(67
|
)
|
|
(130
|
)
|
|
(155
|
)
|
|
(251
|
)
|
|
||||
Total
|
$
|
(116
|
)
|
|
$
|
699
|
|
|
$
|
(193
|
)
|
|
$
|
1,413
|
|
|
|
June 30,
2016 |
|
December 31, 2015
|
||||
Term Loan
|
$
|
2,446
|
|
|
$
|
3,032
|
|
Revolving credit facility
|
—
|
|
|
—
|
|
||
Cerro Verde credit facility
|
1,784
|
|
|
1,781
|
|
||
Cerro Verde shareholder loans
|
261
|
|
|
259
|
|
||
Lines of credit
|
192
|
|
|
442
|
|
||
Senior notes and debentures:
|
|
|
|
||||
Issued by FCX
|
11,648
|
|
|
11,908
|
|
||
Issued by Freeport-McMoRan Oil & Gas LLC (FM O&G LLC)
|
2,524
|
|
|
2,539
|
|
||
Issued by FMC
|
359
|
|
|
359
|
|
||
Other (including equipment capital leases and other short-term borrowings)
|
105
|
|
|
108
|
|
||
Total debt
a
|
19,319
|
|
|
20,428
|
|
||
Less current portion of debt
|
(770
|
)
|
|
(649
|
)
|
||
Long-term debt
|
$
|
18,549
|
|
|
$
|
19,779
|
|
a.
|
Includes additions for unamortized fair value adjustments totaling
$195 million
at June 30, 2016, and
$210 million
at December 31, 2015, and net reductions for unamortized debt issuance costs and unamortized discounts of
$120 million
at June 30, 2016, and
$129 million
at December 31, 2015.
|
|
Principal Amount
|
|
Discounts/Deferred Debt Issuance Costs
|
|
Book Value
|
|
Gain
|
||||||||
3.55% Senior Notes due 2022
|
$
|
85
|
|
|
$
|
—
|
|
|
$
|
85
|
|
|
$
|
9
|
|
3.875% Senior Notes due 2023
|
52
|
|
|
—
|
|
|
52
|
|
|
6
|
|
||||
5.40% Senior Notes due 2034
|
50
|
|
|
1
|
|
|
49
|
|
|
8
|
|
||||
5.450% Senior Notes due 2043
|
81
|
|
|
1
|
|
|
80
|
|
|
16
|
|
||||
Total
|
$
|
268
|
|
|
$
|
2
|
|
|
$
|
266
|
|
|
$
|
39
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
June 30,
|
|
June 30,
|
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Copper futures and swap contracts:
|
|
|
|
|
|
|
|
||||||||
Unrealized gains (losses):
|
|
|
|
|
|
|
|
||||||||
Derivative financial instruments
|
$
|
3
|
|
|
$
|
(4
|
)
|
|
$
|
10
|
|
|
$
|
2
|
|
Hedged item – firm sales commitments
|
(3
|
)
|
|
4
|
|
|
(10
|
)
|
|
(2
|
)
|
||||
|
|
|
|
|
|
|
|
||||||||
Realized losses:
|
|
|
|
|
|
|
|
||||||||
Matured derivative financial instruments
|
(4
|
)
|
|
(1
|
)
|
|
(8
|
)
|
|
(11
|
)
|
|
Open Positions
|
|
Average Price
Per Unit
|
|
Maturities Through
|
|||||||
|
|
Contract
|
|
Market
|
|
|||||||
Embedded derivatives in provisional sales contracts:
|
|
|
|
|
|
|
|
|||||
Copper (millions of pounds)
|
769
|
|
|
$
|
2.16
|
|
|
$
|
2.20
|
|
|
November 2016
|
Gold (thousands of ounces)
|
90
|
|
|
1,259
|
|
|
1,322
|
|
|
October 2016
|
||
Embedded derivatives in provisional purchase contracts:
|
|
|
|
|
|
|
|
|||||
Copper (millions of pounds)
|
123
|
|
|
2.17
|
|
|
2.20
|
|
|
October 2016
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
June 30,
|
|
June 30,
|
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Embedded derivatives in provisional copper and gold
|
|
|
|
|
|
|
|
||||||||
sales contracts
a
|
$
|
4
|
|
|
$
|
(73
|
)
|
|
$
|
76
|
|
|
$
|
(144
|
)
|
Copper forward contracts
b
|
(2
|
)
|
|
(6
|
)
|
|
5
|
|
|
(7
|
)
|
||||
Crude oil options
a
|
—
|
|
|
6
|
|
|
—
|
|
|
58
|
|
a.
|
Amounts recorded in revenues.
|
b.
|
Amounts recorded in cost of sales as production and delivery costs.
|
|
|
June 30,
2016 |
|
December 31, 2015
|
||||
Commodity Derivative Assets:
|
|
|
|
|
||||
Derivatives designated as hedging instruments
:
|
|
|
|
|
||||
Copper futures and swap contracts
a
|
|
$
|
4
|
|
|
$
|
1
|
|
Derivatives not designated as hedging instruments
:
|
|
|
|
|
||||
Embedded derivatives in provisional copper and gold
|
|
|
|
|
||||
sales/purchase contracts
|
|
49
|
|
|
19
|
|
||
Copper forward contracts
|
|
2
|
|
|
—
|
|
||
Total derivative assets
|
|
$
|
55
|
|
|
$
|
20
|
|
|
|
|
|
|
||||
Commodity Derivative Liabilities:
|
|
|
|
|
||||
Derivatives designated as hedging instruments
:
|
|
|
|
|
||||
Copper futures and swap contracts
a
|
|
$
|
3
|
|
|
$
|
11
|
|
Derivatives not designated as hedging instruments
:
|
|
|
|
|
||||
Embedded derivatives in provisional copper and gold
|
|
|
|
|
||||
sales/purchase contracts
|
|
18
|
|
|
81
|
|
||
Copper forward contracts
|
|
1
|
|
|
—
|
|
||
Total derivative liabilities
|
|
$
|
22
|
|
|
$
|
92
|
|
a.
|
FCX paid
$3 million
to brokers at
June 30, 2016
, and
$10 million
at
December 31, 2015
, for margin requirements (recorded in other current assets).
|
|
|
Assets
|
|
Liabilities
|
||||||||||||
|
|
June 30,
2016
|
|
December 31, 2015
|
|
June 30,
2016
|
|
December 31, 2015
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
Gross amounts recognized:
|
|
|
|
|
|
|
|
|
||||||||
Commodity contracts:
|
|
|
|
|
|
|
|
|
||||||||
Embedded derivatives in provisional
|
|
|
|
|
|
|
|
|
||||||||
sales/purchase contracts
|
|
$
|
49
|
|
|
$
|
19
|
|
|
$
|
18
|
|
|
$
|
81
|
|
Copper derivatives
|
|
6
|
|
|
1
|
|
|
4
|
|
|
11
|
|
||||
|
|
55
|
|
|
20
|
|
|
22
|
|
|
92
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Less gross amounts of offset:
|
|
|
|
|
|
|
|
|
||||||||
Commodity contracts:
|
|
|
|
|
|
|
|
|
||||||||
Embedded derivatives in provisional
|
|
|
|
|
|
|
|
|
||||||||
sales/purchase contracts
|
|
3
|
|
|
5
|
|
|
3
|
|
|
5
|
|
||||
Copper derivatives
|
|
4
|
|
|
1
|
|
|
4
|
|
|
1
|
|
||||
|
|
7
|
|
|
6
|
|
|
7
|
|
|
6
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Net amounts presented in balance sheet:
|
|
|
|
|
|
|
|
|
||||||||
Commodity contracts:
|
|
|
|
|
|
|
|
|
||||||||
Embedded derivatives in provisional
|
|
|
|
|
|
|
|
|
||||||||
sales/purchase contracts
|
|
46
|
|
|
14
|
|
|
15
|
|
|
76
|
|
||||
Copper derivatives
|
|
2
|
|
|
—
|
|
|
—
|
|
|
10
|
|
||||
|
|
$
|
48
|
|
|
$
|
14
|
|
|
$
|
15
|
|
|
$
|
86
|
|
|
|
|
|
|
|
|
|
|
||||||||
Balance sheet classification:
|
|
|
|
|
|
|
|
|
||||||||
Trade accounts receivable
|
|
$
|
48
|
|
|
$
|
9
|
|
|
$
|
8
|
|
|
$
|
51
|
|
Accounts payable and accrued liabilities
|
|
—
|
|
|
5
|
|
|
7
|
|
|
35
|
|
||||
|
|
$
|
48
|
|
|
$
|
14
|
|
|
$
|
15
|
|
|
$
|
86
|
|
|
At June 30, 2016
|
||||||||||||||||||||||
|
Carrying
|
|
Fair Value
|
||||||||||||||||||||
|
Amount
|
|
Total
|
|
NAV
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Investment securities:
a,b
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. core fixed income fund at NAV
|
$
|
24
|
|
|
$
|
24
|
|
|
$
|
24
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Money market funds
|
22
|
|
|
22
|
|
|
—
|
|
|
22
|
|
|
—
|
|
|
—
|
|
||||||
Equity securities
|
4
|
|
|
4
|
|
|
—
|
|
|
4
|
|
|
—
|
|
|
—
|
|
||||||
Total
|
50
|
|
|
50
|
|
|
24
|
|
|
26
|
|
|
—
|
|
|
—
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Legally restricted funds:
a,b,c,d
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. core fixed income fund at NAV
|
55
|
|
|
55
|
|
|
55
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Government bonds and notes
|
38
|
|
|
38
|
|
|
—
|
|
|
—
|
|
|
38
|
|
|
—
|
|
||||||
Government mortgage-backed securities
|
30
|
|
|
30
|
|
|
—
|
|
|
—
|
|
|
30
|
|
|
—
|
|
||||||
Corporate bonds
|
30
|
|
|
30
|
|
|
—
|
|
|
—
|
|
|
30
|
|
|
—
|
|
||||||
Asset-backed securities
|
15
|
|
|
15
|
|
|
—
|
|
|
—
|
|
|
15
|
|
|
—
|
|
||||||
Money market funds
|
12
|
|
|
12
|
|
|
—
|
|
|
12
|
|
|
—
|
|
|
—
|
|
||||||
Collateralized mortgage-backed securities
|
6
|
|
|
6
|
|
|
—
|
|
|
—
|
|
|
6
|
|
|
—
|
|
||||||
Municipal bonds
|
1
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
||||||
Total
|
187
|
|
|
187
|
|
|
55
|
|
|
12
|
|
|
120
|
|
|
—
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Derivatives:
a,e
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Embedded derivatives in provisional sales/
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
purchase contracts in a gross asset position
|
49
|
|
|
49
|
|
|
—
|
|
|
—
|
|
|
49
|
|
|
—
|
|
||||||
Copper futures and swap contracts
|
4
|
|
|
4
|
|
|
—
|
|
|
4
|
|
|
—
|
|
|
—
|
|
||||||
Copper forward contracts
|
2
|
|
|
2
|
|
|
—
|
|
|
1
|
|
|
1
|
|
|
—
|
|
||||||
Total
|
55
|
|
|
55
|
|
|
—
|
|
|
5
|
|
|
50
|
|
|
—
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total assets
|
|
|
$
|
292
|
|
|
$
|
79
|
|
|
$
|
43
|
|
|
$
|
170
|
|
|
$
|
—
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Derivatives:
a,e
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Embedded derivatives in provisional sales/
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
purchase contracts in a gross liability position
|
$
|
18
|
|
|
$
|
18
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
18
|
|
|
$
|
—
|
|
Copper futures and swap contracts
|
3
|
|
|
3
|
|
|
—
|
|
|
1
|
|
|
2
|
|
|
—
|
|
||||||
Copper forward contracts
|
1
|
|
|
1
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
||||||
Total
|
22
|
|
|
22
|
|
|
—
|
|
|
2
|
|
|
20
|
|
|
—
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Contingent consideration for the settlements of
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
drilling rig contracts
f
|
25
|
|
|
25
|
|
|
—
|
|
|
—
|
|
|
25
|
|
|
—
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Long-term debt, including current portion
g
|
19,319
|
|
|
17,772
|
|
|
—
|
|
|
—
|
|
|
17,772
|
|
|
—
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total liabilities
|
|
|
$
|
17,819
|
|
|
$
|
—
|
|
|
$
|
2
|
|
|
$
|
17,817
|
|
|
$
|
—
|
|
|
At December 31, 2015
|
||||||||||||||||||||||
|
Carrying
|
|
Fair Value
|
||||||||||||||||||||
|
Amount
|
|
Total
|
|
NAV
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Investment securities:
a,b
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. core fixed income fund at NAV
|
$
|
23
|
|
|
$
|
23
|
|
|
$
|
23
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Money market funds
|
21
|
|
|
21
|
|
|
—
|
|
|
21
|
|
|
—
|
|
|
—
|
|
||||||
Equity securities
|
3
|
|
|
3
|
|
|
—
|
|
|
3
|
|
|
—
|
|
|
—
|
|
||||||
Total
|
47
|
|
|
47
|
|
|
23
|
|
|
24
|
|
|
—
|
|
|
—
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Legally restricted funds:
a,b,c,d
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. core fixed income fund at NAV
|
52
|
|
|
52
|
|
|
52
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Government bonds and notes
|
37
|
|
|
37
|
|
|
—
|
|
|
—
|
|
|
37
|
|
|
—
|
|
||||||
Government mortgage-backed securities
|
28
|
|
|
28
|
|
|
—
|
|
|
—
|
|
|
28
|
|
|
—
|
|
||||||
Corporate bonds
|
26
|
|
|
26
|
|
|
—
|
|
|
—
|
|
|
26
|
|
|
—
|
|
||||||
Asset-backed securities
|
13
|
|
|
13
|
|
|
—
|
|
|
—
|
|
|
13
|
|
|
—
|
|
||||||
Collateralized mortgage-backed securities
|
7
|
|
|
7
|
|
|
—
|
|
|
—
|
|
|
7
|
|
|
—
|
|
||||||
Money market funds
|
7
|
|
|
7
|
|
|
—
|
|
|
7
|
|
|
—
|
|
|
—
|
|
||||||
Municipal bonds
|
1
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
||||||
Total
|
171
|
|
|
171
|
|
|
52
|
|
|
7
|
|
|
112
|
|
|
—
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Derivatives:
a,e
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Embedded derivatives in provisional sales/
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
purchase contracts in a gross asset position
|
19
|
|
|
19
|
|
|
—
|
|
|
—
|
|
|
19
|
|
|
—
|
|
||||||
Copper futures and swap contracts
|
1
|
|
|
1
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
||||||
Total
|
20
|
|
|
20
|
|
|
—
|
|
|
1
|
|
|
19
|
|
|
—
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total assets
|
|
|
$
|
238
|
|
|
$
|
75
|
|
|
$
|
32
|
|
|
$
|
131
|
|
|
$
|
—
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Derivatives:
a,e
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Embedded derivatives in provisional sales/
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
purchase contracts in a gross liability position
|
$
|
81
|
|
|
$
|
81
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
81
|
|
|
$
|
—
|
|
Copper futures and swap contracts
|
11
|
|
|
11
|
|
|
—
|
|
|
7
|
|
|
4
|
|
|
—
|
|
||||||
Total
|
92
|
|
|
92
|
|
|
—
|
|
|
7
|
|
|
85
|
|
|
—
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Long-term debt, including current portion
g
|
20,428
|
|
|
13,987
|
|
|
—
|
|
|
—
|
|
|
13,987
|
|
|
—
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total liabilities
|
|
|
$
|
14,079
|
|
|
$
|
—
|
|
|
$
|
7
|
|
|
$
|
14,072
|
|
|
$
|
—
|
|
a.
|
Recorded at fair value.
|
b.
|
Current portion included in other current assets and long-term portion included in other assets.
|
c.
|
Excludes time deposits (which approximated fair value) included in other assets of
$120 million
at
June 30, 2016
, and
$118 million
at
December 31, 2015
, primarily associated with an assurance bond to support PT Freeport Indonesia's (PT-FI) commitment for smelter development in Indonesia.
|
d.
|
Excludes time deposits (which approximated fair value) included in other current assets of
$30 million
at
June 30, 2016
, and
$28 million
at
December 31, 2015
.
|
e.
|
Refer to Note
7
for further discussion and balance sheet classifications.
|
f.
|
Included in other liabilities.
|
g.
|
Recorded at cost except for debt assumed in acquisitions, which were recorded at fair value at the respective acquisition dates.
|
|
|
|
(In millions)
|
Mining Operations
a
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||||||||||||||||
|
North America Copper Mines
|
|
South America
|
|
Indonesia
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Atlantic
|
|
Other
|
|
|
|
|
|
Corporate,
|
|
|
||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Molyb-
|
|
|
|
Copper
|
|
Mining
|
|
|
|
U.S.
|
|
Other
|
|
|
||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
Cerro
|
|
|
|
|
|
|
|
denum
|
|
Rod &
|
|
Smelting
|
|
& Elimi-
|
|
Total
|
|
Oil & Gas
|
|
& Elimi-
|
|
FCX
|
||||||||||||||||||||||||||||||
|
Morenci
|
|
Other
|
|
Total
|
|
Verde
|
|
Other
|
|
Total
|
|
Grasberg
|
|
Mines
|
|
Refining
|
|
& Refining
|
|
nations
|
|
Mining
|
|
Operations
|
|
nations
|
|
Total
|
||||||||||||||||||||||||||||||
Three Months Ended June 30, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||
Unaffiliated customers
|
$
|
79
|
|
|
$
|
43
|
|
|
$
|
122
|
|
|
$
|
494
|
|
|
$
|
123
|
|
|
$
|
617
|
|
|
$
|
532
|
|
b
|
$
|
—
|
|
|
$
|
919
|
|
|
$
|
493
|
|
|
$
|
241
|
|
c
|
$
|
2,924
|
|
|
$
|
410
|
|
|
$
|
—
|
|
|
$
|
3,334
|
|
Intersegment
|
404
|
|
|
534
|
|
|
938
|
|
|
60
|
|
|
—
|
|
|
60
|
|
|
(1
|
)
|
d
|
45
|
|
|
7
|
|
|
2
|
|
|
(1,051
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||||||||
Production and delivery
|
298
|
|
|
428
|
|
|
726
|
|
|
303
|
|
|
103
|
|
|
406
|
|
|
356
|
|
|
50
|
|
|
919
|
|
|
466
|
|
|
(866
|
)
|
|
2,057
|
|
|
889
|
|
e
|
10
|
|
|
2,956
|
|
|||||||||||||||
Depreciation, depletion and amortization
|
57
|
|
|
77
|
|
|
134
|
|
|
109
|
|
|
27
|
|
|
136
|
|
|
93
|
|
|
17
|
|
|
3
|
|
|
7
|
|
|
20
|
|
|
410
|
|
|
218
|
|
|
4
|
|
|
632
|
|
|||||||||||||||
Impairment of oil and gas properties
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
290
|
|
|
1
|
|
f
|
291
|
|
|||||||||||||||
Selling, general and administrative expenses
|
1
|
|
|
1
|
|
|
2
|
|
|
2
|
|
|
—
|
|
|
2
|
|
|
22
|
|
|
—
|
|
|
—
|
|
|
4
|
|
|
2
|
|
|
32
|
|
|
81
|
|
g
|
47
|
|
|
160
|
|
|||||||||||||||
Mining exploration and research expenses
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
15
|
|
|
15
|
|
|
—
|
|
|
—
|
|
|
15
|
|
|||||||||||||||
Environmental obligations and shutdown costs
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
10
|
|
|
10
|
|
|
—
|
|
|
1
|
|
|
11
|
|
|||||||||||||||
Net gain on sales of assets
|
(577
|
)
|
|
—
|
|
|
(577
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(172
|
)
|
|
(749
|
)
|
|
—
|
|
|
—
|
|
|
(749
|
)
|
|||||||||||||||
Operating income (loss)
|
704
|
|
|
71
|
|
|
775
|
|
|
140
|
|
|
(7
|
)
|
|
133
|
|
|
60
|
|
|
(22
|
)
|
|
4
|
|
|
18
|
|
|
181
|
|
|
1,149
|
|
|
(1,068
|
)
|
|
(63
|
)
|
|
18
|
|
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||
Interest expense, net
|
—
|
|
|
1
|
|
|
1
|
|
|
20
|
|
|
—
|
|
|
20
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4
|
|
|
19
|
|
|
44
|
|
|
93
|
|
|
59
|
|
|
196
|
|
|||||||||||||||
Provision for (benefit from) income taxes
|
—
|
|
|
—
|
|
|
—
|
|
|
45
|
|
|
(2
|
)
|
|
43
|
|
|
18
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
61
|
|
|
—
|
|
|
55
|
|
|
116
|
|
|||||||||||||||
Total assets at June 30, 2016
|
2,960
|
|
|
4,676
|
|
|
7,636
|
|
|
9,330
|
|
|
1,609
|
|
|
10,939
|
|
|
9,550
|
|
|
1,969
|
|
|
217
|
|
|
607
|
|
|
6,151
|
|
h
|
37,069
|
|
|
3,902
|
|
|
325
|
|
|
41,296
|
|
|||||||||||||||
Capital expenditures
|
37
|
|
|
5
|
|
|
42
|
|
|
135
|
|
|
1
|
|
|
136
|
|
|
234
|
|
|
—
|
|
|
—
|
|
|
5
|
|
|
24
|
|
i
|
441
|
|
|
388
|
|
j
|
4
|
|
|
833
|
|
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||
Three Months Ended June 30, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||
Unaffiliated customers
|
$
|
180
|
|
|
$
|
92
|
|
|
$
|
272
|
|
|
$
|
195
|
|
|
$
|
221
|
|
|
$
|
416
|
|
|
$
|
792
|
|
b
|
$
|
—
|
|
|
$
|
1,089
|
|
|
$
|
495
|
|
|
$
|
305
|
|
c
|
$
|
3,369
|
|
|
$
|
569
|
|
k
|
$
|
—
|
|
|
$
|
3,938
|
|
Intersegment
|
427
|
|
|
706
|
|
|
1,133
|
|
|
37
|
|
|
—
|
|
|
37
|
|
|
(2
|
)
|
d
|
102
|
|
|
8
|
|
|
5
|
|
|
(1,283
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||||||||
Production and delivery
|
386
|
|
|
576
|
|
l
|
962
|
|
|
165
|
|
|
150
|
|
|
315
|
|
|
455
|
|
|
84
|
|
l
|
1,088
|
|
|
468
|
|
|
(1,004
|
)
|
l
|
2,368
|
|
|
281
|
|
e
|
2
|
|
|
2,651
|
|
|||||||||||||||
Depreciation, depletion and amortization
|
55
|
|
|
84
|
|
|
139
|
|
|
40
|
|
|
32
|
|
|
72
|
|
|
78
|
|
|
25
|
|
|
3
|
|
|
9
|
|
|
19
|
|
|
345
|
|
|
485
|
|
|
3
|
|
|
833
|
|
|||||||||||||||
Impairment of oil and gas properties
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,686
|
|
|
—
|
|
|
2,686
|
|
|||||||||||||||
Selling, general and administrative expenses
|
—
|
|
|
2
|
|
|
2
|
|
|
—
|
|
|
1
|
|
|
1
|
|
|
25
|
|
|
—
|
|
|
—
|
|
|
4
|
|
|
5
|
|
|
37
|
|
|
49
|
|
|
62
|
|
|
148
|
|
|||||||||||||||
Mining exploration and research expenses
|
—
|
|
|
2
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
28
|
|
|
30
|
|
|
—
|
|
|
—
|
|
|
30
|
|
|||||||||||||||
Environmental obligations and shutdown costs
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
11
|
|
|
11
|
|
|
—
|
|
|
—
|
|
|
11
|
|
|||||||||||||||
Operating income (loss)
|
166
|
|
|
134
|
|
|
300
|
|
|
27
|
|
|
38
|
|
|
65
|
|
|
232
|
|
|
(7
|
)
|
|
6
|
|
|
19
|
|
|
(37
|
)
|
|
578
|
|
|
(2,932
|
)
|
|
(67
|
)
|
|
(2,421
|
)
|
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||
Interest expense, net
|
—
|
|
|
1
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
39
|
|
|
42
|
|
|
41
|
|
|
59
|
|
|
142
|
|
|||||||||||||||
Provision for (benefit from) income taxes
|
—
|
|
|
—
|
|
|
—
|
|
|
(5
|
)
|
|
11
|
|
|
6
|
|
|
95
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
101
|
|
|
—
|
|
|
(800
|
)
|
|
(699
|
)
|
|||||||||||||||
Total assets at June 30, 2015
|
3,806
|
|
|
5,582
|
|
|
9,388
|
|
|
8,567
|
|
|
1,935
|
|
|
10,502
|
|
|
8,959
|
|
|
2,052
|
|
|
286
|
|
|
786
|
|
|
6,461
|
|
h
|
38,434
|
|
|
15,393
|
|
|
181
|
|
|
54,008
|
|
|||||||||||||||
Capital expenditures
|
79
|
|
|
28
|
|
|
107
|
|
|
444
|
|
|
13
|
|
|
457
|
|
|
213
|
|
|
4
|
|
|
—
|
|
|
4
|
|
|
70
|
|
i
|
855
|
|
|
777
|
|
j
|
29
|
|
|
1,661
|
|
a.
|
Excludes the results of Tenke, which is reported as discontinued operations (refer to Note 2).
|
b.
|
Includes PT-FI’s sales to PT Smelting totaling
$287 million
in
second-quarter
2016
and
$293 million
in
second-quarter
2015
.
|
c.
|
Includes revenues from FCX's molybdenum sales company, which includes sales of molybdenum produced by the Molybdenum mines and by certain of the North and South America copper mines.
|
d.
|
Reflects net reductions for provisional pricing adjustments to prior period open sales. There were no intersegment sales from Grasberg in second-quarter 2016 or 2015.
|
e.
|
Includes charges at oil and gas operations totaling
$692 million
in
second-quarter
2016
and
$22 million
in
second-quarter
2015
, primarily associated with drillship settlement/idle rig costs and inventory write-downs.
|
f.
|
Reflects impairment charges for international oil and gas properties primarily in Morocco.
|
g.
|
Includes
$37 million
for net restructuring charges.
|
h.
|
Includes assets held for sale totaling
$4.7 billion
at
June 30, 2016
and
$4.9 billion
at
June 30, 2015
, associated with discontinued operations (refer to Note 2).
|
i.
|
Includes capital expenditures of
$20 million
in
second-quarter
2016
and
$58 million
in
second-quarter
2015
associated with discontinued operations.
|
j.
|
Excludes international oil and gas capital expenditures totaling
$4 million
in
second-quarter
2016
and
$29 million
in
second-quarter
2015
, primarily related to the Morocco oil and gas properties, which are included in Corporate, Other & Eliminations.
|
k.
|
Includes net mark-to-market gains of
$6 million
associated with crude oil derivative contracts.
|
l.
|
Includes inventory adjustments totaling
$11 million
at other North America copper mines,
$3 million
at Molybdenum mines and $
45 million
at Other Mining & Eliminations.
|
a.
|
Excludes the results of Tenke, which is reported as discontinued operations (refer to Note 2).
|
b.
|
Includes PT-FI's sales to PT Smelting totaling
$564 million
for
the first six months
of
2016
and
$643 million
for
the first six months
of
2015
.
|
c.
|
Includes revenues from FCX's molybdenum sales company, which includes sales of molybdenum produced by the Molybdenum mines and by certain of the North and South America copper mines.
|
d.
|
Includes charges at oil and gas operations totaling
$892 million
for
the first six months
of
2016
and
$39 million
for
the first six months
of
2015
, primarily associated with drillship settlement/idle rig costs and inventory write downs.
|
e.
|
Reflects impairment charges for international oil and gas properties primarily in Morocco.
|
f.
|
Includes
$39 million
for net restructuring charges.
|
g.
|
Includes capital expenditures of
$55 million
for
the first six months
of
2016
and
$97 million
for
the first six months
of
2015
associated with discontinued operations.
|
h.
|
Excludes international oil and gas capital expenditures totaling
$47 million
for
the first six months
of
2016
and
$44 million
for
the first six months
of
2015
, primarily related to the Morocco oil and gas properties, which are included in Corporate, Other & Eliminations.
|
i.
|
Includes net mark-to-market gains of
$58 million
associated with crude oil derivative contracts.
|
j.
|
Reflects net reductions for provisional pricing adjustments to prior period open sales. There were no intersegment sales from El Abra or Grasberg for the first six months of 2015.
|
k.
|
Includes inventory adjustments totaling
$11 million
at other North America copper mines,
$3 million
at Molybdenum mines and $
49 million
at Other Mining & Eliminations for
the first six months
of
2015
.
|
|
FCX
|
|
FM O&G LLC
|
|
Non-guarantor
|
|
|
|
Consolidated
|
||||||||||
|
Issuer
|
|
Guarantor
|
|
Subsidiaries
|
|
Eliminations
|
|
FCX
|
||||||||||
ASSETS
|
|
|
|
|
|
|
|
|
|
||||||||||
Current assets, other than assets held for sale
|
$
|
267
|
|
|
$
|
2,792
|
|
|
$
|
6,902
|
|
|
$
|
(3,927
|
)
|
|
$
|
6,034
|
|
Current assets held for sale
|
—
|
|
|
—
|
|
|
4,666
|
|
|
—
|
|
|
4,666
|
|
|||||
Property, plant, equipment and mining development costs, net
|
23
|
|
|
57
|
|
|
23,529
|
|
|
—
|
|
|
23,609
|
|
|||||
Oil and gas properties, net - full cost method:
|
|
|
|
|
|
|
|
|
|
||||||||||
Subject to amortization, less accumulated amortization and impairments
|
—
|
|
|
356
|
|
|
1,025
|
|
|
—
|
|
|
1,381
|
|
|||||
Not subject to amortization
|
—
|
|
|
408
|
|
|
1,246
|
|
|
2
|
|
|
1,656
|
|
|||||
Investments in consolidated subsidiaries
|
19,759
|
|
|
—
|
|
|
—
|
|
|
(19,759
|
)
|
|
—
|
|
|||||
Other assets
|
1,389
|
|
|
42
|
|
|
3,866
|
|
|
(1,347
|
)
|
|
3,950
|
|
|||||
Total assets
|
$
|
21,438
|
|
|
$
|
3,655
|
|
|
$
|
41,234
|
|
|
$
|
(25,031
|
)
|
|
$
|
41,296
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
LIABILITIES AND EQUITY
|
|
|
|
|
|
|
|
|
|
||||||||||
Current liabilities, other than liabilities held for sale
|
$
|
2,811
|
|
|
$
|
534
|
|
|
$
|
4,288
|
|
|
$
|
(3,917
|
)
|
|
$
|
3,716
|
|
Current liabilities held for sale
|
—
|
|
|
—
|
|
|
824
|
|
|
—
|
|
|
824
|
|
|||||
Long-term debt, less current portion
|
13,520
|
|
|
7,425
|
|
|
12,064
|
|
|
(14,460
|
)
|
|
18,549
|
|
|||||
Deferred income taxes
|
1,064
|
|
a
|
—
|
|
|
2,694
|
|
|
—
|
|
|
3,758
|
|
|||||
Environmental and asset retirement obligations, less current portion
|
—
|
|
|
313
|
|
|
3,384
|
|
|
—
|
|
|
3,697
|
|
|||||
Investments in consolidated subsidiaries
|
—
|
|
|
649
|
|
|
8,647
|
|
|
(9,296
|
)
|
|
—
|
|
|||||
Other liabilities
|
40
|
|
|
3,381
|
|
|
1,730
|
|
|
(3,489
|
)
|
|
1,662
|
|
|||||
Total liabilities
|
17,435
|
|
|
12,302
|
|
|
33,631
|
|
|
(31,162
|
)
|
|
32,206
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Redeemable noncontrolling interest
|
—
|
|
|
—
|
|
|
771
|
|
|
—
|
|
|
771
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Equity:
|
|
|
|
|
|
|
|
|
|
||||||||||
Stockholders' equity
|
4,003
|
|
|
(8,647
|
)
|
|
3,067
|
|
|
5,580
|
|
|
4,003
|
|
|||||
Noncontrolling interests
|
—
|
|
|
—
|
|
|
3,765
|
|
|
551
|
|
|
4,316
|
|
|||||
Total equity
|
4,003
|
|
|
(8,647
|
)
|
|
6,832
|
|
|
6,131
|
|
|
8,319
|
|
|||||
Total liabilities and equity
|
$
|
21,438
|
|
|
$
|
3,655
|
|
|
$
|
41,234
|
|
|
$
|
(25,031
|
)
|
|
$
|
41,296
|
|
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, other than assets held for sale
|
$
|
181
|
|
|
$
|
3,831
|
|
|
$
|
10,238
|
|
|
$
|
(7,532
|
)
|
|
$
|
6,718
|
|
Current assets held for sale
|
—
|
|
|
—
|
|
|
744
|
|
|
—
|
|
|
744
|
|
|||||
Property, plant, equipment and mining development costs, net
|
26
|
|
|
57
|
|
|
24,165
|
|
|
—
|
|
|
24,248
|
|
|||||
Oil and gas properties, net - full cost method:
|
|
|
|
|
|
|
|
|
|
||||||||||
Subject to amortization, less accumulated amortization and impairments
|
—
|
|
|
710
|
|
|
1,552
|
|
|
—
|
|
|
2,262
|
|
|||||
Not subject to amortization
|
—
|
|
|
1,393
|
|
|
3,432
|
|
|
6
|
|
|
4,831
|
|
|||||
Investments in consolidated subsidiaries
|
24,311
|
|
|
—
|
|
|
—
|
|
|
(24,311
|
)
|
|
—
|
|
|||||
Other assets
|
5,038
|
|
|
1,826
|
|
|
3,598
|
|
|
(6,798
|
)
|
|
3,664
|
|
|||||
Assets held for sale
|
—
|
|
|
—
|
|
|
4,110
|
|
|
—
|
|
|
4,110
|
|
|||||
Total assets
|
$
|
29,556
|
|
|
$
|
7,817
|
|
|
$
|
47,839
|
|
|
$
|
(38,635
|
)
|
|
$
|
46,577
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
LIABILITIES AND EQUITY
|
|
|
|
|
|
|
|
|
|
||||||||||
Current liabilities, other than assets held for sale
|
$
|
6,012
|
|
|
$
|
666
|
|
|
$
|
5,047
|
|
|
$
|
(7,526
|
)
|
|
$
|
4,199
|
|
Current liabilities held for sale
|
—
|
|
|
—
|
|
|
108
|
|
|
—
|
|
|
108
|
|
|||||
Long-term debt, less current portion
|
14,735
|
|
|
5,883
|
|
|
11,594
|
|
|
(12,433
|
)
|
|
19,779
|
|
|||||
Deferred income taxes
|
941
|
|
a
|
—
|
|
|
2,666
|
|
|
—
|
|
|
3,607
|
|
|||||
Environmental and asset retirement obligations, less current portion
|
—
|
|
|
305
|
|
|
3,412
|
|
|
—
|
|
|
3,717
|
|
|||||
Investment in consolidated subsidiary
|
—
|
|
|
—
|
|
|
2,397
|
|
|
(2,397
|
)
|
|
—
|
|
|||||
Other liabilities
|
40
|
|
|
3,360
|
|
|
1,732
|
|
|
(3,491
|
)
|
|
1,641
|
|
|||||
Liabilities held for sale
|
—
|
|
|
—
|
|
|
718
|
|
|
—
|
|
|
718
|
|
|||||
Total liabilities
|
21,728
|
|
|
10,214
|
|
|
27,674
|
|
|
(25,847
|
)
|
|
33,769
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Redeemable noncontrolling interest
|
—
|
|
|
—
|
|
|
764
|
|
|
—
|
|
|
764
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Equity:
|
|
|
|
|
|
|
|
|
|
||||||||||
Stockholders' equity
|
7,828
|
|
|
(2,397
|
)
|
|
15,725
|
|
|
(13,328
|
)
|
|
7,828
|
|
|||||
Noncontrolling interests
|
—
|
|
|
—
|
|
|
3,676
|
|
|
540
|
|
|
4,216
|
|
|||||
Total equity
|
7,828
|
|
|
(2,397
|
)
|
|
19,401
|
|
|
(12,788
|
)
|
|
12,044
|
|
|||||
Total liabilities and equity
|
$
|
29,556
|
|
|
$
|
7,817
|
|
|
$
|
47,839
|
|
|
$
|
(38,635
|
)
|
|
$
|
46,577
|
|
a.
|
All U.S. related deferred income taxes are recorded at the parent company.
|
Three Months Ended June 30, 2016
|
|
|
|
|
|
|
|
|
|
||||||||||
|
FCX
|
|
FM O&G LLC
|
|
Non-guarantor
|
|
|
|
Consolidated
|
||||||||||
|
Issuer
|
|
Guarantor
|
|
Subsidiaries
|
|
Eliminations
|
|
FCX
|
||||||||||
Revenues
|
$
|
—
|
|
|
$
|
106
|
|
|
$
|
3,228
|
|
|
$
|
—
|
|
|
$
|
3,334
|
|
Total costs and expenses
|
17
|
|
|
964
|
|
a
|
2,335
|
|
a
|
—
|
|
|
3,316
|
|
|||||
Operating (loss) income
|
(17
|
)
|
|
(858
|
)
|
|
893
|
|
|
—
|
|
|
18
|
|
|||||
Interest expense, net
|
(141
|
)
|
|
(15
|
)
|
|
(124
|
)
|
|
84
|
|
|
(196
|
)
|
|||||
Other income (expense), net
|
107
|
|
|
—
|
|
|
28
|
|
|
(71
|
)
|
|
64
|
|
|||||
(Loss) income before income taxes and equity in affiliated companies' net (losses) earnings
|
(51
|
)
|
|
(873
|
)
|
|
797
|
|
|
13
|
|
|
(114
|
)
|
|||||
(Provision for) benefit from income taxes
|
(345
|
)
|
|
306
|
|
|
(69
|
)
|
|
(8
|
)
|
|
(116
|
)
|
|||||
Equity in affiliated companies' net (losses) earnings
|
(90
|
)
|
|
(280
|
)
|
|
(853
|
)
|
|
1,224
|
|
|
1
|
|
|||||
Net (loss) income from continuing operations
|
(486
|
)
|
|
(847
|
)
|
|
(125
|
)
|
|
1,229
|
|
|
(229
|
)
|
|||||
Net income (loss) from discontinued operations
|
5
|
|
|
—
|
|
|
(175
|
)
|
|
(11
|
)
|
|
(181
|
)
|
|||||
Net (loss) income
|
(481
|
)
|
|
(847
|
)
|
|
(300
|
)
|
|
1,218
|
|
|
(410
|
)
|
|||||
Net income and preferred dividends attributable to noncontrolling interests:
|
|
|
|
|
|
|
|
|
|
||||||||||
Continuing operations
|
—
|
|
|
—
|
|
|
(50
|
)
|
|
(7
|
)
|
|
(57
|
)
|
|||||
Discontinued operations
|
—
|
|
|
—
|
|
|
(12
|
)
|
|
—
|
|
|
(12
|
)
|
|||||
Net (loss) income attributable to common stockholders
|
$
|
(481
|
)
|
|
$
|
(847
|
)
|
|
$
|
(362
|
)
|
|
$
|
1,211
|
|
|
$
|
(479
|
)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Other comprehensive income (loss)
|
15
|
|
|
—
|
|
|
15
|
|
|
(15
|
)
|
|
15
|
|
|||||
Total comprehensive (loss) income
|
$
|
(466
|
)
|
|
$
|
(847
|
)
|
|
$
|
(347
|
)
|
|
$
|
1,196
|
|
|
$
|
(464
|
)
|
a.
|
Includes charges totaling
$0.2 billion
at the FM O&G LLC guarantor and
$0.1 billion
at the non-guarantor subsidiaries related to impairment of FCX's oil and gas properties pursuant to full cost accounting rules.
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Six Months Ended June 30, 2016
|
|
|
|
|
|
|
|
|
|
||||||||||
|
FCX
|
|
FM O&G LLC
|
|
Non-guarantor
|
|
|
|
Consolidated
|
||||||||||
|
Issuer
|
|
Guarantor
|
|
Subsidiaries
|
|
Eliminations
|
|
FCX
|
||||||||||
Revenues
|
$
|
—
|
|
|
$
|
184
|
|
|
$
|
6,392
|
|
|
$
|
—
|
|
|
$
|
6,576
|
|
Total costs and expenses
|
44
|
|
|
2,593
|
|
a
|
7,787
|
|
a
|
6
|
|
|
10,430
|
|
|||||
Operating loss
|
(44
|
)
|
|
(2,409
|
)
|
|
(1,395
|
)
|
|
(6
|
)
|
|
(3,854
|
)
|
|||||
Interest expense, net
|
(278
|
)
|
|
(19
|
)
|
|
(238
|
)
|
|
148
|
|
|
(387
|
)
|
|||||
Other income (expense), net
|
157
|
|
|
—
|
|
|
68
|
|
|
(125
|
)
|
|
100
|
|
|||||
(Loss) income before income taxes and equity in affiliated companies' net (losses) earnings
|
(165
|
)
|
|
(2,428
|
)
|
|
(1,565
|
)
|
|
17
|
|
|
(4,141
|
)
|
|||||
(Provision for) benefit from income taxes
|
(2,128
|
)
|
|
922
|
|
|
1,019
|
|
|
(6
|
)
|
|
(193
|
)
|
|||||
Equity in affiliated companies' net (losses) earnings
|
(2,376
|
)
|
|
(2,984
|
)
|
|
(4,483
|
)
|
|
9,851
|
|
|
8
|
|
|||||
Net (loss) income from continuing operations
|
(4,669
|
)
|
|
(4,490
|
)
|
|
(5,029
|
)
|
|
9,862
|
|
|
(4,326
|
)
|
|||||
Net income (loss) from discontinued operations
|
5
|
|
|
—
|
|
|
(169
|
)
|
|
(21
|
)
|
|
(185
|
)
|
|||||
Net (loss) income
|
(4,664
|
)
|
|
(4,490
|
)
|
|
(5,198
|
)
|
|
9,841
|
|
|
(4,511
|
)
|
|||||
Net income and preferred dividends attributable to noncontrolling interests:
|
|
|
|
|
|
|
|
|
|
||||||||||
Continuing operations
|
—
|
|
|
—
|
|
|
(117
|
)
|
|
(13
|
)
|
|
(130
|
)
|
|||||
Discontinued operations
|
—
|
|
|
—
|
|
|
(22
|
)
|
|
—
|
|
|
(22
|
)
|
|||||
Net (loss) income attributable to common stockholders
|
$
|
(4,664
|
)
|
|
$
|
(4,490
|
)
|
|
$
|
(5,337
|
)
|
|
$
|
9,828
|
|
|
$
|
(4,663
|
)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Other comprehensive income (loss)
|
15
|
|
|
—
|
|
|
15
|
|
|
(15
|
)
|
|
15
|
|
|||||
Total comprehensive (loss) income
|
$
|
(4,649
|
)
|
|
$
|
(4,490
|
)
|
|
$
|
(5,322
|
)
|
|
$
|
9,813
|
|
|
$
|
(4,648
|
)
|
|
|
|
|
|
|
|
|
|
|
a.
|
Includes charges totaling
$1.5 billion
at the FM O&G LLC guarantor and
$2.6 billion
at the non-guarantor subsidiaries related to impairment of FCX's oil and gas properties pursuant to full cost accounting rules.
|
Three Months Ended June 30, 2015
|
|
|
|
|
|
|
|
|
|
||||||||||
|
FCX
|
|
FM O&G LLC
|
|
Non-guarantor
|
|
|
|
Consolidated
|
||||||||||
|
Issuer
|
|
Guarantor
|
|
Subsidiaries
|
|
Eliminations
|
|
FCX
|
||||||||||
Revenues
|
$
|
—
|
|
|
$
|
169
|
|
|
$
|
3,769
|
|
|
$
|
—
|
|
|
$
|
3,938
|
|
Total costs and expenses
|
19
|
|
|
1,217
|
|
a
|
5,120
|
|
a
|
3
|
|
|
6,359
|
|
|||||
Operating loss
|
(19
|
)
|
|
(1,048
|
)
|
|
(1,351
|
)
|
|
(3
|
)
|
|
(2,421
|
)
|
|||||
Interest expense, net
|
(121
|
)
|
|
(2
|
)
|
|
(53
|
)
|
|
34
|
|
|
(142
|
)
|
|||||
Other income (expense), net
|
127
|
|
|
—
|
|
|
(57
|
)
|
|
(34
|
)
|
|
36
|
|
|||||
Loss before income taxes and equity in affiliated companies' net (losses) earnings
|
(13
|
)
|
|
(1,050
|
)
|
|
(1,461
|
)
|
|
(3
|
)
|
|
(2,527
|
)
|
|||||
(Provision for) benefit from income taxes
|
(265
|
)
|
|
374
|
|
|
592
|
|
|
(2
|
)
|
|
699
|
|
|||||
Equity in affiliated companies' net (losses) earnings
|
(1,573
|
)
|
|
(1,920
|
)
|
|
(2,972
|
)
|
|
6,465
|
|
|
—
|
|
|||||
Net (loss) income from continuing operations
|
(1,851
|
)
|
|
(2,596
|
)
|
|
(3,841
|
)
|
|
6,460
|
|
|
(1,828
|
)
|
|||||
Net income from discontinued operations
|
—
|
|
|
—
|
|
|
22
|
|
|
7
|
|
|
29
|
|
|||||
Net (loss) income
|
(1,851
|
)
|
|
(2,596
|
)
|
|
(3,819
|
)
|
|
6,467
|
|
|
(1,799
|
)
|
|||||
Net income and preferred dividends attributable to noncontrolling interests:
|
|
|
|
|
|
|
|
|
|
||||||||||
Continuing operations
|
—
|
|
|
—
|
|
|
(12
|
)
|
|
(14
|
)
|
|
(26
|
)
|
|||||
Discontinued operations
|
—
|
|
|
—
|
|
|
(26
|
)
|
|
—
|
|
|
(26
|
)
|
|||||
Net (loss) income attributable to common stockholders
|
$
|
(1,851
|
)
|
|
$
|
(2,596
|
)
|
|
$
|
(3,857
|
)
|
|
$
|
6,453
|
|
|
$
|
(1,851
|
)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Other comprehensive income (loss)
|
9
|
|
|
—
|
|
|
9
|
|
|
(9
|
)
|
|
9
|
|
|||||
Total comprehensive (loss) income
|
$
|
(1,842
|
)
|
|
$
|
(2,596
|
)
|
|
$
|
(3,848
|
)
|
|
$
|
6,444
|
|
|
$
|
(1,842
|
)
|
a.
|
Includes charges totaling
$1.0 billion
at the FM O&G LLC guarantor and
$1.7 billion
at the non-guarantor subsidiaries related to impairment of FCX's oil and gas properties pursuant to full cost accounting rules.
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Six Months Ended June 30, 2015
|
|
|
|
|
|
|
|
|
|
||||||||||
|
FCX
|
|
FM O&G LLC
|
|
Non-guarantor
|
|
|
|
Consolidated
|
||||||||||
|
Issuer
|
|
Guarantor
|
|
Subsidiaries
|
|
Eliminations
|
|
FCX
|
||||||||||
Revenues
|
$
|
—
|
|
|
$
|
350
|
|
|
$
|
7,359
|
|
|
$
|
—
|
|
|
$
|
7,709
|
|
Total costs and expenses
|
35
|
|
|
2,535
|
|
a
|
10,603
|
|
a
|
(13
|
)
|
|
13,160
|
|
|||||
Operating (loss) income
|
(35
|
)
|
|
(2,185
|
)
|
|
(3,244
|
)
|
|
13
|
|
|
(5,451
|
)
|
|||||
Interest expense, net
|
(236
|
)
|
|
(6
|
)
|
|
(96
|
)
|
|
57
|
|
|
(281
|
)
|
|||||
Other income (expense), net
|
156
|
|
|
—
|
|
|
(49
|
)
|
|
(64
|
)
|
|
43
|
|
|||||
(Loss) income before income taxes and equity in affiliated companies' net (losses) earnings
|
(115
|
)
|
|
(2,191
|
)
|
|
(3,389
|
)
|
|
6
|
|
|
(5,689
|
)
|
|||||
(Provision for) benefit from income taxes
|
(686
|
)
|
|
790
|
|
|
1,317
|
|
|
(8
|
)
|
|
1,413
|
|
|||||
Equity in affiliated companies' net (losses) earnings
|
(3,524
|
)
|
|
(4,279
|
)
|
|
(6,502
|
)
|
|
14,306
|
|
|
1
|
|
|||||
Net (loss) income from continuing operations
|
(4,325
|
)
|
|
(5,680
|
)
|
|
(8,574
|
)
|
|
14,304
|
|
|
(4,275
|
)
|
|||||
Net income from discontinued operations
|
—
|
|
|
—
|
|
|
56
|
|
|
14
|
|
|
70
|
|
|||||
Net (loss) income
|
(4,325
|
)
|
|
(5,680
|
)
|
|
(8,518
|
)
|
|
14,318
|
|
|
(4,205
|
)
|
|||||
Net income and preferred dividends attributable to noncontrolling interests:
|
|
|
|
|
|
|
|
|
|
||||||||||
Continuing operations
|
—
|
|
|
—
|
|
|
(42
|
)
|
|
(26
|
)
|
|
(68
|
)
|
|||||
Discontinued operations
|
—
|
|
|
—
|
|
|
(52
|
)
|
|
—
|
|
|
(52
|
)
|
|||||
Net (loss) income attributable to common stockholders
|
$
|
(4,325
|
)
|
|
$
|
(5,680
|
)
|
|
$
|
(8,612
|
)
|
|
$
|
14,292
|
|
|
$
|
(4,325
|
)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Other comprehensive income (loss)
|
21
|
|
|
—
|
|
|
21
|
|
|
(21
|
)
|
|
21
|
|
|||||
Total comprehensive (loss) income
|
$
|
(4,304
|
)
|
|
$
|
(5,680
|
)
|
|
$
|
(8,591
|
)
|
|
$
|
14,271
|
|
|
$
|
(4,304
|
)
|
|
|
|
|
|
|
|
|
|
|
a.
|
Includes charges totaling
$2.1 billion
at the FM O&G LLC guarantor and
$3.7 billion
at the non-guarantor subsidiaries related to impairment of FCX's oil and gas properties pursuant to full cost accounting rules.
|
|
FCX
|
|
FM O&G LLC
|
|
Non-guarantor
|
|
|
|
Consolidated
|
||||||||||
|
Issuer
|
|
Guarantor
|
|
Subsidiaries
|
|
Eliminations
|
|
FCX
|
||||||||||
Cash flow from operating activities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Net (loss) income
|
$
|
(4,664
|
)
|
|
$
|
(4,490
|
)
|
|
$
|
(5,198
|
)
|
|
$
|
9,841
|
|
|
$
|
(4,511
|
)
|
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Depreciation, depletion and amortization
|
3
|
|
|
92
|
|
|
1,293
|
|
|
(14
|
)
|
|
1,374
|
|
|||||
Impairment of oil and gas properties
|
—
|
|
|
1,436
|
|
|
2,622
|
|
|
20
|
|
|
4,078
|
|
|||||
Equity in losses (earnings) of affiliated companies
|
2,375
|
|
|
2,985
|
|
|
4,483
|
|
|
(9,851
|
)
|
|
(8
|
)
|
|||||
Other, net
|
104
|
|
|
600
|
|
|
(489
|
)
|
|
—
|
|
|
215
|
|
|||||
Changes in working capital and other tax payments, excluding amounts from dispositions
|
2,009
|
|
|
(713
|
)
|
|
(836
|
)
|
|
6
|
|
|
466
|
|
|||||
Net cash (used in) provided by operating activities
|
(173
|
)
|
|
(90
|
)
|
|
1,875
|
|
|
2
|
|
|
1,614
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash flow from investing activities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Capital expenditures
|
—
|
|
|
(433
|
)
|
|
(1,380
|
)
|
|
(2
|
)
|
|
(1,815
|
)
|
|||||
Intercompany loans
|
(994
|
)
|
|
(493
|
)
|
|
—
|
|
|
1,487
|
|
|
—
|
|
|||||
Dividends from (investments in) consolidated subsidiaries
|
1,935
|
|
|
(41
|
)
|
|
78
|
|
|
(1,972
|
)
|
|
—
|
|
|||||
Asset sales and other, net
|
—
|
|
|
91
|
|
|
1,189
|
|
|
—
|
|
|
1,280
|
|
|||||
Net cash provided by (used in) investing activities
|
941
|
|
|
(876
|
)
|
|
(113
|
)
|
|
(487
|
)
|
|
(535
|
)
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash flow from financing activities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Proceeds from debt
|
1,505
|
|
|
—
|
|
|
1,306
|
|
|
—
|
|
|
2,811
|
|
|||||
Repayments of debt
|
(2,282
|
)
|
|
—
|
|
|
(1,367
|
)
|
|
—
|
|
|
(3,649
|
)
|
|||||
Intercompany loans
|
—
|
|
|
1,018
|
|
|
469
|
|
|
(1,487
|
)
|
|
—
|
|
|||||
Net proceeds from sale of common stock
|
32
|
|
|
—
|
|
|
42
|
|
|
(42
|
)
|
|
32
|
|
|||||
Cash dividends and distributions paid, and contributions received, net
|
(5
|
)
|
|
—
|
|
|
(1,989
|
)
|
|
1,950
|
|
|
(44
|
)
|
|||||
Other, net
|
(18
|
)
|
|
(52
|
)
|
|
(17
|
)
|
|
64
|
|
|
(23
|
)
|
|||||
Net cash (used in) provided by financing activities
|
(768
|
)
|
|
966
|
|
|
(1,556
|
)
|
|
485
|
|
|
(873
|
)
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Net increase in cash and cash equivalents
|
—
|
|
|
—
|
|
|
206
|
|
|
—
|
|
|
206
|
|
|||||
Increase in cash and cash equivalents in assets held for sale
|
—
|
|
|
—
|
|
|
(49
|
)
|
|
—
|
|
|
(49
|
)
|
|||||
Cash and cash equivalents at beginning of period
|
—
|
|
|
—
|
|
|
195
|
|
|
—
|
|
|
195
|
|
|||||
Cash and cash equivalents at end of period
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
352
|
|
|
$
|
—
|
|
|
$
|
352
|
|
|
FCX
|
|
FM O&G LLC
|
|
Non-guarantor
|
|
|
|
Consolidated
|
||||||||||
|
Issuer
|
|
Guarantor
|
|
Subsidiaries
|
|
Eliminations
|
|
FCX
|
||||||||||
Cash flow from operating activities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Net (loss) income
|
$
|
(4,325
|
)
|
|
$
|
(5,680
|
)
|
|
$
|
(8,518
|
)
|
|
$
|
14,318
|
|
|
$
|
(4,205
|
)
|
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Depreciation, depletion and amortization
|
2
|
|
|
223
|
|
|
1,638
|
|
|
(34
|
)
|
|
1,829
|
|
|||||
Impairment of oil and gas properties
|
—
|
|
|
2,052
|
|
|
3,717
|
|
|
21
|
|
|
5,790
|
|
|||||
Net gains on crude oil derivative contracts
|
—
|
|
|
(58
|
)
|
|
—
|
|
|
—
|
|
|
(58
|
)
|
|||||
Equity in losses (earnings) of affiliated companies
|
3,524
|
|
|
4,279
|
|
|
6,502
|
|
|
(14,306
|
)
|
|
(1
|
)
|
|||||
Other, net
|
(1,431
|
)
|
|
9
|
|
|
43
|
|
|
—
|
|
|
(1,379
|
)
|
|||||
Changes in working capital and other tax payments
|
2,222
|
|
|
(550
|
)
|
|
(1,870
|
)
|
|
8
|
|
|
(190
|
)
|
|||||
Net cash (used in) provided by operating activities
|
(8
|
)
|
|
275
|
|
|
1,512
|
|
|
7
|
|
|
1,786
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash flow from investing activities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Capital expenditures
|
—
|
|
|
(734
|
)
|
|
(2,787
|
)
|
|
(7
|
)
|
|
(3,528
|
)
|
|||||
Intercompany loans
|
(1,073
|
)
|
|
(794
|
)
|
|
—
|
|
|
1,867
|
|
|
—
|
|
|||||
Dividends from (investments in) consolidated subsidiaries
|
438
|
|
|
(31
|
)
|
|
74
|
|
|
(481
|
)
|
|
—
|
|
|||||
Other, net
|
(10
|
)
|
|
(1
|
)
|
|
137
|
|
|
10
|
|
|
136
|
|
|||||
Net cash (used in) provided by investing activities
|
(645
|
)
|
|
(1,560
|
)
|
|
(2,576
|
)
|
|
1,389
|
|
|
(3,392
|
)
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash flow from financing activities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Proceeds from debt
|
2,735
|
|
|
—
|
|
|
1,687
|
|
|
—
|
|
|
4,422
|
|
|||||
Repayments of debt
|
(1,690
|
)
|
|
—
|
|
|
(670
|
)
|
|
—
|
|
|
(2,360
|
)
|
|||||
Intercompany loans
|
—
|
|
|
1,321
|
|
|
546
|
|
|
(1,867
|
)
|
|
—
|
|
|||||
Cash dividends and distributions paid, and contributions received, net
|
(380
|
)
|
|
—
|
|
|
(481
|
)
|
|
421
|
|
|
(440
|
)
|
|||||
Other, net
|
(12
|
)
|
|
(37
|
)
|
|
(15
|
)
|
|
50
|
|
|
(14
|
)
|
|||||
Net cash provided by (used in) financing activities
|
653
|
|
|
1,284
|
|
|
1,067
|
|
|
(1,396
|
)
|
|
1,608
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Net (decrease) increase in cash and cash equivalents
|
—
|
|
|
(1
|
)
|
|
3
|
|
|
—
|
|
|
2
|
|
|||||
Increase in cash and cash equivalents in assets held for sale
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
(1
|
)
|
|||||
Cash and cash equivalents at beginning of period
|
—
|
|
|
1
|
|
|
316
|
|
|
—
|
|
|
317
|
|
|||||
Cash and cash equivalents at end of period
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
318
|
|
|
$
|
—
|
|
|
$
|
318
|
|
Item 2.
|
Management's Discussion and Analysis of Financial Condition and Results of Operations.
|
Copper
(millions of recoverable pounds):
|
|
|
|
North America copper mines
|
1,830
|
|
|
South America mining
|
1,360
|
|
|
Indonesia mining
|
1,320
|
|
|
Consolidated
- continuing operations
|
4,510
|
|
|
Discontinued operations
- Africa mining
|
440
|
|
|
Total
|
4,950
|
|
|
Gold
(thousands of recoverable ounces)
|
1,700
|
|
|
Molybdenum
(millions of recoverable pounds)
|
76
|
|
a
|
Oil Equivalents
(million BOE or MMBOE)
|
47.4
|
|
|
a.
|
Projected molybdenum sales include
25 million
pounds produced by our Molybdenum mines and
51 million
pounds produced by our North and South America copper mines.
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
|
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
||||||||
SUMMARY FINANCIAL DATA
|
(in millions, except per share amounts)
|
|
||||||||||||||
Revenues
a,b
|
$
|
3,334
|
|
|
$
|
3,938
|
|
c
|
$
|
6,576
|
|
|
$
|
7,709
|
|
c
|
Operating income (loss)
a,d,e,f
|
$
|
18
|
|
g
|
$
|
(2,421
|
)
|
|
$
|
(3,854
|
)
|
g
|
$
|
(5,451
|
)
|
g
|
Net loss from continuing operations
h
|
$
|
(229
|
)
|
i,j
|
$
|
(1,828
|
)
|
k
|
$
|
(4,326
|
)
|
i,j
|
$
|
(4,275
|
)
|
k
|
Net (loss) income from discontinued operations
l
|
$
|
(181
|
)
|
|
$
|
29
|
|
|
$
|
(185
|
)
|
|
$
|
70
|
|
|
Net loss attributable to common stock
|
$
|
(479
|
)
|
|
$
|
(1,851
|
)
|
|
$
|
(4,663
|
)
|
|
$
|
(4,325
|
)
|
|
Diluted net loss per share of common stock:
|
|
|
|
|
|
|
|
|
||||||||
Continuing operations
|
$
|
(0.23
|
)
|
|
$
|
(1.78
|
)
|
|
$
|
(3.54
|
)
|
|
$
|
(4.18
|
)
|
|
Discontinued operations
|
(0.15
|
)
|
|
—
|
|
|
(0.16
|
)
|
|
0.02
|
|
|
||||
|
$
|
(0.38
|
)
|
|
$
|
(1.78
|
)
|
|
$
|
(3.70
|
)
|
|
$
|
(4.16
|
)
|
|
Diluted weighted-average common shares outstanding
|
1,269
|
|
|
1,040
|
|
|
1,260
|
|
|
1,040
|
|
|
||||
Operating cash flows
m
|
$
|
874
|
|
|
$
|
1,069
|
|
|
$
|
1,614
|
|
|
$
|
1,786
|
|
|
Capital expenditures
|
$
|
833
|
|
|
$
|
1,661
|
|
|
$
|
1,815
|
|
|
$
|
3,528
|
|
|
At June 30:
|
|
|
|
|
|
|
|
|
||||||||
Cash and cash equivalents
|
$
|
352
|
|
|
$
|
318
|
|
|
$
|
352
|
|
|
$
|
318
|
|
|
Total debt, including current portion
|
$
|
19,319
|
|
|
$
|
20,902
|
|
|
$
|
19,319
|
|
|
$
|
20,902
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
|
||||||||||||
Revenues
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
||||||||
North America copper mines
|
$
|
1,060
|
|
|
$
|
1,405
|
|
|
$
|
2,196
|
|
|
$
|
2,740
|
|
|
South America mining
|
677
|
|
|
453
|
|
|
1,348
|
|
|
939
|
|
|
||||
Indonesia mining
|
531
|
|
|
790
|
|
|
1,087
|
|
|
1,397
|
|
|
||||
Molybdenum mines
|
45
|
|
|
102
|
|
|
90
|
|
|
215
|
|
|
||||
Rod & Refining
|
926
|
|
|
1,097
|
|
|
1,905
|
|
|
2,166
|
|
|
||||
Atlantic Copper Smelting & Refining
|
495
|
|
|
500
|
|
|
918
|
|
|
1,046
|
|
|
||||
U.S. oil & gas operations
|
410
|
|
|
569
|
|
|
705
|
|
|
1,069
|
|
|
||||
Other mining & eliminations
|
(810
|
)
|
|
(978
|
)
|
|
(1,673
|
)
|
|
(1,863
|
)
|
|
||||
Total revenues
|
$
|
3,334
|
|
|
$
|
3,938
|
|
|
$
|
6,576
|
|
|
$
|
7,709
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Operating income (loss)
|
|
|
|
|
|
|
|
|
||||||||
North America copper mines
|
$
|
775
|
|
|
$
|
300
|
|
|
$
|
977
|
|
|
$
|
594
|
|
|
South America mining
|
133
|
|
|
65
|
|
|
260
|
|
|
130
|
|
|
||||
Indonesia mining
|
60
|
|
|
232
|
|
|
127
|
|
|
305
|
|
|
||||
Molybdenum mines
|
(22
|
)
|
|
(7
|
)
|
|
(48
|
)
|
|
(3
|
)
|
|
||||
Rod & Refining
|
4
|
|
|
6
|
|
|
11
|
|
|
10
|
|
|
||||
Atlantic Copper Smelting & Refining
|
18
|
|
|
19
|
|
|
36
|
|
|
31
|
|
|
||||
U.S. oil & gas operations
|
(1,068
|
)
|
|
(2,932
|
)
|
|
(5,255
|
)
|
|
(6,403
|
)
|
|
||||
Other mining, corporate, other & eliminations
|
118
|
|
|
(104
|
)
|
|
38
|
|
|
(115
|
)
|
|
||||
Total operating income (loss)
|
$
|
18
|
|
|
$
|
(2,421
|
)
|
|
$
|
(3,854
|
)
|
|
$
|
(5,451
|
)
|
|
b.
|
Includes (unfavorable) favorable adjustments to provisionally priced concentrate and cathode copper sales recognized in prior periods totaling
$(28) million
(
$(15) million
to net loss attributable to common stock from continuing operations or
$(0.01)
per share) in
second-quarter
2016
,
$(22) million
(
$(11) million
to net loss attributable to common stock from continuing operations or
$(0.01)
per share) in
second-quarter
2015
,
$5 million
(
$2 million
to net loss attributable to common stock from continuing operations or less than $0.01 per share) for
the first six months
of
2016
and
$(99) million
(
$(47) million
to net loss attributable to common stock from continuing operations or
$(0.04)
per share) for
the first six months
of
2015
. Refer to “Revenues” for further discussion.
|
c.
|
Includes net noncash mark-to-market losses associated with crude oil derivative contracts totaling
$95 million
(
$59 million
to net loss attributable to common stock or
$0.06
per share) in
second-quarter
2015
and
$143 million
(
$89 million
to net loss attributable to common stock or
$0.09
per share) for
the first six months
of
2015
. We currently do not have oil and gas derivative contracts in place for 2016 or future years.
|
d.
|
Includes the following charges to reduce the carrying value of oil and gas properties pursuant to full cost accounting rules (in millions, except per share amounts):
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
|
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
||||||||
Operating income (loss)
|
$
|
291
|
|
|
$
|
2,686
|
|
|
$
|
4,078
|
|
|
$
|
5,790
|
|
|
Net loss attributable to common stock
|
$
|
291
|
|
|
$
|
1,975
|
|
|
$
|
4,078
|
|
|
$
|
4,374
|
|
|
Net loss per share of common stock
|
$
|
0.23
|
|
|
$
|
1.90
|
|
|
$
|
3.24
|
|
|
$
|
4.20
|
|
|
e.
|
Includes the following charges at oil and gas operations associated with drillship settlements and idle rig costs (in millions, except per share amounts):
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
|
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
||||||||
Operating income (loss)
|
$
|
639
|
|
|
$
|
3
|
|
|
$
|
804
|
|
|
$
|
16
|
|
|
Net loss attributable to common stock
|
$
|
639
|
|
|
$
|
2
|
|
|
$
|
804
|
|
|
$
|
10
|
|
|
Net loss per share of common stock
|
$
|
0.50
|
|
|
$
|
—
|
|
|
$
|
0.64
|
|
|
$
|
0.01
|
|
|
f.
|
Includes net charges at mining operations for adjustments to inventories totaling
$2 million
(
$2 million
to net loss attributable to common stock or less than $0.01 per share) for
second-quarter
2016
,
$59 million
(
$38 million
to net loss attributable to common stock or
$0.04
per share) for
second-quarter
2015
,
$7 million
(
$7 million
to net loss attributable to common stock or
$0.01
per share) for
the first six months
of
2016
, and
$63 million
(
$41 million
to net loss attributable to common stock or
$0.04
per share)
for
the first six months
of
2015
.
|
g.
|
Includes net gains on sales of assets totaling
$749 million
(
$744 million
to net loss attributable to common stock or
$0.59
per share) for the
second quarter
and
first six months
of
2016
, primarily associated with the Morenci and Timok transactions and
$39 million
(
$25 million
to net loss attributable to common stock or
$0.02
per share) for the
first six months
of
2015
associated with the sale of our interest in the Luna Energy power facility. Refer to Note 2 for further discussion of the 2016 dispositions.
|
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 net gain on early extinguishment of debt of
$39 million
(
$39 million
to net loss attributable to common stock or
$0.03
per share) in second-quarter 2016 and
$36 million
(
$36 million
to net loss attributable to common stock or
$0.03
per share) for the first six months of 2016. Refer to Note
6
for further discussion.
|
j.
|
Includes net tax charges of
$36 million
(
$0.03
per share) for the second quarter and first six months of 2016, comprised of$96 million related to the reversal of income tax benefits recognized in 2015 for carryback claims, partly offset by a tax benefit of $60 million associated with our election to monetize alternative minimum tax credits.
|
k.
|
Includes a gain of
$92 million
(
$92 million
to net loss attributable to common stock or
$0.09
per share) for
the
second quarter
and
first six months
of
2015
related to the proceeds received from insurance carriers and other third parties related to a shareholder derivative litigation settlement.
|
l.
|
Net (loss) income from discontinued operations includes charges for (i) allocated interest expense totaling
$11 million
in
second-quarter
2016
,
$7 million
in
second-quarter
2015
,
$21 million
for
the first six months
of
2016
and
$14 million
for
the first six months
of
2015
associated with the portion of our Term Loan that is required to be repaid as a result of the sale of our interest in Tenke and (ii) an income tax (benefit) provision totaling
$(16) million
in
second-quarter
2016
,
$12 million
in
second-quarter
2015
,
$(23) million
for
the first six months
of
2016
and
$31 million
for
the first six months
of
2015
. In accordance with accounting guidelines, the
second quarter
and
first six months
of
2016
are also net of
$177 million
for the estimated loss on disposal, which will be adjusted through closing of the transaction.
|
m.
|
Includes net working capital sources (uses) and changes in other tax payments of
$278 million
in
second-quarter
2016
,
$(104) million
in
second-quarter
2015
,
$466 million
for
the first six months
of
2016
and
$(190) million
for
the first six months
of
2015
.
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
|
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
||||||||
SUMMARY OPERATING DATA
|
|
|
|
|
|
|
||||||||||
Copper
(millions of recoverable pounds)
a
|
|
|
|
|
|
|
|
|
||||||||
Production
|
1,011
|
|
|
862
|
|
|
1,998
|
|
|
1,661
|
|
|
||||
Sales, excluding purchases
|
987
|
|
|
860
|
|
|
1,987
|
|
|
1,687
|
|
|
||||
Average realized price per pound
|
$
|
2.19
|
|
|
$
|
2.72
|
|
|
$
|
2.17
|
|
|
$
|
2.71
|
|
|
Site production and delivery costs per pound
b
|
$
|
1.41
|
|
|
$
|
1.89
|
|
|
$
|
1.45
|
|
|
$
|
1.93
|
|
|
Unit net cash costs per pound
b
|
$
|
1.33
|
|
|
$
|
1.56
|
|
|
$
|
1.36
|
|
|
$
|
1.63
|
|
|
Gold
(thousands of recoverable ounces)
|
|
|
|
|
|
|
|
|
||||||||
Production
|
166
|
|
|
367
|
|
|
350
|
|
|
626
|
|
|
||||
Sales, excluding purchases
|
156
|
|
|
352
|
|
|
357
|
|
|
615
|
|
|
||||
Average realized price per ounce
|
$
|
1,292
|
|
|
$
|
1,174
|
|
|
$
|
1,259
|
|
|
$
|
1,183
|
|
|
Molybdenum
(millions of recoverable pounds)
|
|
|
|
|
|
|
|
|
||||||||
Production
|
19
|
|
|
25
|
|
|
39
|
|
|
49
|
|
|
||||
Sales, excluding purchases
|
19
|
|
|
23
|
|
|
36
|
|
|
46
|
|
|
||||
Average realized price per pound
|
$
|
8.34
|
|
|
$
|
9.51
|
|
|
$
|
7.99
|
|
|
$
|
9.84
|
|
|
Oil Equivalents
|
|
|
|
|
|
|
|
|
||||||||
Sales volumes
|
|
|
|
|
|
|
|
|
||||||||
MMBOE
|
12.4
|
|
|
13.1
|
|
|
24.5
|
|
|
25.6
|
|
|
||||
Thousand BOE (MBOE) per day
|
136
|
|
|
144
|
|
|
135
|
|
|
142
|
|
|
||||
Cash operating margin per BOE
c
|
|
|
|
|
|
|
|
|
||||||||
Realized revenues
|
$
|
32.70
|
|
|
$
|
50.04
|
|
d
|
$
|
28.29
|
|
|
$
|
46.95
|
|
d
|
Cash production costs
|
(15.00
|
)
|
|
(19.04
|
)
|
|
(15.42
|
)
|
|
(19.62
|
)
|
|
||||
Cash operating margin
|
$
|
17.70
|
|
|
$
|
31.00
|
|
|
$
|
12.87
|
|
|
$
|
27.33
|
|
|
a.
|
Excludes production and sales volumes from the Tenke mine, which is reported as a discontinued operation. Copper sales volumes from the Tenke mine totaled
124 million
pounds in
second-quarter
2016
,
104 million
pounds in
second-quarter
2015
,
247 million
pounds for
the first six months
of
2016
and
237 million
pounds for
the first six months
of
2015
. Refer to "Discontinued Operations" for discussion of Tenke's operating results.
|
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 Tenke), before net noncash and other costs. Including the Tenke mine, mining unit net cash costs averaged
$1.33
per pound in
second-quarter
2016
,
$1.50
per pound in second-quarter
2015
,
$1.35
per pound for
the first six months
of
2016
and
$1.57
per pound for
the first six months
of
2015
. For reconciliations of per pound unit costs by operating division to production and delivery costs applicable to sales reported in our consolidated financial statements, refer to "Product Revenues and Production Costs."
|
c.
|
Cash operating margin for oil and gas operations reflects realized revenues less cash production costs. 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."
|
d.
|
Includes realized cash gains on crude oil derivative contracts of
$7.73
per BOE in
second-quarter
2015
and
$7.87
per BOE for
the first six months
of
2015
. We currently do not have oil or gas derivative contracts in place for 2016 or future years.
|
|
Three Months Ended June 30
|
|
Six Months Ended June 30
|
||||
|
|
|
|
||||
Revenues - 2015 period
|
$
|
3,938
|
|
|
$
|
7,709
|
|
Mining operations:
|
|
|
|
||||
Higher (lower) sales volumes:
|
|
|
|
||||
Copper
|
345
|
|
|
815
|
|
||
Gold
|
(229
|
)
|
|
(305
|
)
|
||
Molybdenum
|
(39
|
)
|
|
(105
|
)
|
||
(Lower) higher average realized prices:
|
|
|
|
||||
Copper
|
(523
|
)
|
|
(1,073
|
)
|
||
Gold
|
19
|
|
|
27
|
|
||
Molybdenum
|
(22
|
)
|
|
(66
|
)
|
||
Net adjustments for prior period provisionally priced copper sales
|
(6
|
)
|
|
104
|
|
||
Higher (lower) revenues from purchased copper
|
20
|
|
|
(23
|
)
|
||
Lower Atlantic Copper revenues
|
(5
|
)
|
|
(128
|
)
|
||
Oil and gas operations:
|
|
|
|
||||
Higher (lower) oil sales volumes
|
3
|
|
|
(1
|
)
|
||
Lower oil average realized price, excluding derivative contracts
|
(127
|
)
|
|
(255
|
)
|
||
Net mark-to-market gains on crude oil derivative contracts for 2015 periods
|
(6
|
)
|
|
(58
|
)
|
||
Other, including intercompany eliminations
|
(34
|
)
|
|
(65
|
)
|
||
Revenues - 2016 period
|
$
|
3,334
|
|
|
$
|
6,576
|
|
|
|
|
|
|
Six Months Ended June 30,
|
|
||||||||||||||||||
|
2016
|
|
2015
|
|
||||||||||||||||
|
Income(Loss)
a
|
|
Effective
Tax Rate
|
|
Income Tax Benefit (Provision)
|
|
Income (Loss)
a
|
|
Effective
Tax Rate
|
|
Income Tax Benefit (Provision)
|
|
||||||||
U.S.
|
$
|
(535
|
)
|
|
(7)%
|
|
$
|
(39
|
)
|
b
|
$
|
(455
|
)
|
c
|
63%
|
|
$
|
288
|
|
|
South America
|
219
|
|
|
38%
|
|
(82
|
)
|
|
81
|
|
|
37%
|
|
(30
|
)
|
|
||||
Indonesia
|
164
|
|
|
33%
|
|
(54
|
)
|
|
289
|
|
|
43%
|
|
(124
|
)
|
|
||||
Impairment of oil and gas properties
|
(4,078
|
)
|
|
38%
|
|
1,543
|
|
|
(5,790
|
)
|
|
38%
|
|
2,179
|
|
|
||||
Valuation allowance, net
|
—
|
|
|
N/A
|
|
(1,543
|
)
|
d
|
—
|
|
|
N/A
|
|
(763
|
)
|
d
|
||||
Eliminations and other
|
89
|
|
|
N/A
|
|
(25
|
)
|
|
186
|
|
|
N/A
|
|
(50
|
)
|
|
||||
Rate adjustment
e
|
—
|
|
|
N/A
|
|
7
|
|
|
—
|
|
|
N/A
|
|
(87
|
)
|
|
||||
Consolidated FCX
|
$
|
(4,141
|
)
|
|
(5)%
|
f
|
$
|
(193
|
)
|
|
$
|
(5,689
|
)
|
|
25%
|
|
$
|
1,413
|
|
|
a.
|
Represents income (loss) from continuing operations by geographic location before income taxes and equity in affiliated companies’ net earnings.
|
b.
|
Includes net tax charges of
$36 million
, comprised of $96 million related to the reversal of income tax benefits recognized in 2015 for carryback claims, partly offset by a tax benefit of $60 million associated with our election to monetize alternative minimum tax credits.
|
c.
|
Includes a gain of $92 million related to net proceeds received from insurance carriers and other third parties related to the shareholder derivative litigation settlement for which there was no related tax provision.
|
d.
|
As a result of the impairment to U.S. oil and gas properties, we recorded tax charges to establish valuation allowances against U.S. federal and state deferred tax assets that will not generate a future benefit.
|
e.
|
In accordance with applicable accounting rules, we adjust our interim provision for income taxes to equal our consolidated tax rate.
|
f.
|
The consolidated effective income tax rate is a function of the combined effective tax rates for the jurisdictions in which we operate. Accordingly, variations in the relative proportions of jurisdictional income result in fluctuations to our consolidated effective income tax rate. Assuming achievement of current sales volume and cost estimates and average prices of
$2.25
per pound for copper,
$1,300
per ounce for gold,
$6
per pound for molybdenum and
$48
per barrel of Brent crude oil for the remainder of
2016
, we estimate our consolidated effective tax rate related to continuing operations for the year 2016 will approximate
40 percent
, excluding U.S. domestic losses.
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Operating Data, Net of Joint Venture Interest
|
|
|
|
|
|
|
|
||||||||
Copper
|
|
|
|
|
|
|
|
||||||||
Production (millions of recoverable pounds)
|
469
|
|
|
469
|
|
|
956
|
|
|
921
|
|
||||
Sales (millions of recoverable pounds)
|
464
|
|
|
486
|
|
|
967
|
|
|
958
|
|
||||
Average realized price per pound
|
$
|
2.18
|
|
|
$
|
2.77
|
|
|
$
|
2.17
|
|
|
$
|
2.73
|
|
|
|
|
|
|
|
|
|
||||||||
Molybdenum
|
|
|
|
|
|
|
|
||||||||
Production
(millions of recoverable pounds)
a
|
8
|
|
|
10
|
|
|
16
|
|
|
19
|
|
||||
|
|
|
|
|
|
|
|
||||||||
100% Operating Data
|
|
|
|
|
|
|
|
||||||||
SX/EW operations
|
|
|
|
|
|
|
|
||||||||
Leach ore placed in stockpiles (metric tons per day)
|
780,700
|
|
|
890,000
|
|
|
807,100
|
|
|
902,500
|
|
||||
Average copper ore grade (percent)
|
0.33
|
|
|
0.26
|
|
|
0.32
|
|
|
0.25
|
|
||||
Copper production (millions of recoverable pounds)
|
303
|
|
|
261
|
|
|
605
|
|
|
508
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Mill operations
|
|
|
|
|
|
|
|
||||||||
Ore milled (metric tons per day)
|
300,400
|
|
|
316,000
|
|
|
299,500
|
|
|
308,800
|
|
||||
Average ore grade (percent):
|
|
|
|
|
|
|
|
||||||||
Copper
|
0.48
|
|
|
0.47
|
|
|
0.49
|
|
|
0.48
|
|
||||
Molybdenum
|
0.03
|
|
|
0.03
|
|
|
0.03
|
|
|
0.03
|
|
||||
Copper recovery rate (percent)
|
86.6
|
|
|
85.8
|
|
|
85.6
|
|
|
85.6
|
|
||||
Copper production (millions of recoverable pounds)
|
219
|
|
|
247
|
|
|
445
|
|
|
488
|
|
a.
|
Refer to "Consolidated Results" for our consolidated molybdenum sales volumes, which includes sales of molybdenum produced at the North America copper mines.
|
|
Three Months Ended June 30,
|
|
||||||||||||||||||||||
|
2016
|
|
2015
|
|
||||||||||||||||||||
|
By- Product Method
|
|
Co-Product Method
|
|
By- Product Method
|
|
Co-Product Method
|
|
||||||||||||||||
|
|
Copper
|
|
Molyb-
denum
a
|
|
|
Copper
|
|
Molyb-
denum a |
|
||||||||||||||
Revenues, excluding adjustments
|
$
|
2.18
|
|
|
$
|
2.18
|
|
|
$
|
5.92
|
|
|
$
|
2.77
|
|
|
$
|
2.77
|
|
|
$
|
7.80
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Site production and delivery, before net noncash
and other costs shown below
|
1.40
|
|
|
1.34
|
|
|
4.71
|
|
|
1.78
|
|
|
1.66
|
|
|
6.24
|
|
|
||||||
By-product credits
|
(0.11
|
)
|
|
—
|
|
|
—
|
|
|
(0.16
|
)
|
|
—
|
|
|
—
|
|
|
||||||
Treatment charges
|
0.11
|
|
|
0.10
|
|
|
—
|
|
|
0.12
|
|
|
0.12
|
|
|
—
|
|
|
||||||
Unit net cash costs
|
1.40
|
|
|
1.44
|
|
|
4.71
|
|
|
1.74
|
|
|
1.78
|
|
|
6.24
|
|
|
||||||
Depreciation, depletion and amortization
|
0.29
|
|
|
0.27
|
|
|
0.57
|
|
|
0.28
|
|
|
0.27
|
|
|
0.53
|
|
|
||||||
Noncash and other costs, net
|
0.05
|
|
|
0.05
|
|
|
0.08
|
|
|
0.10
|
|
|
0.09
|
|
|
0.06
|
|
|
||||||
Total unit costs
|
1.74
|
|
|
1.76
|
|
|
5.36
|
|
|
2.12
|
|
|
2.14
|
|
|
6.83
|
|
|
||||||
Revenue adjustments, primarily for pricing
on prior period open sales
|
(0.01
|
)
|
|
(0.01
|
)
|
|
—
|
|
|
(0.03
|
)
|
|
(0.03
|
)
|
|
—
|
|
|
||||||
Gross profit per pound
|
$
|
0.43
|
|
|
$
|
0.41
|
|
|
$
|
0.56
|
|
|
$
|
0.62
|
|
|
$
|
0.60
|
|
|
$
|
0.97
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Copper sales (millions of recoverable pounds)
|
462
|
|
|
462
|
|
|
|
|
485
|
|
|
485
|
|
|
|
|
||||||||
Molybdenum sales (millions of recoverable pounds)
a
|
|
|
|
|
8
|
|
|
|
|
|
|
10
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Six Months Ended June 30,
|
|
||||||||||||||||||||||
|
2016
|
|
2015
|
|
||||||||||||||||||||
|
By- Product Method
|
|
Co-Product Method
|
|
By- Product Method
|
|
Co-Product Method
|
|
||||||||||||||||
|
|
Copper
|
|
Molyb-
denum
a
|
|
|
Copper
|
|
Molyb-
denum
a
|
|
||||||||||||||
Revenues, excluding adjustments
|
$
|
2.17
|
|
|
$
|
2.17
|
|
|
$
|
5.61
|
|
|
$
|
2.73
|
|
|
$
|
2.73
|
|
|
$
|
8.28
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Site production and delivery, before net noncash and other costs shown below
|
1.40
|
|
|
1.34
|
|
|
4.51
|
|
|
1.79
|
|
|
1.68
|
|
|
6.24
|
|
|
||||||
By-product credits
|
(0.10
|
)
|
|
—
|
|
|
—
|
|
|
(0.17
|
)
|
|
—
|
|
|
—
|
|
|
||||||
Treatment charges
|
0.11
|
|
|
0.11
|
|
|
—
|
|
|
0.13
|
|
|
0.12
|
|
|
—
|
|
|
||||||
Unit net cash costs
|
1.41
|
|
|
1.45
|
|
|
4.51
|
|
|
1.75
|
|
|
1.80
|
|
|
6.24
|
|
|
||||||
Depreciation, depletion and amortization
|
0.29
|
|
|
0.27
|
|
|
0.55
|
|
|
0.28
|
|
|
0.27
|
|
|
0.58
|
|
|
||||||
Noncash and other costs, net
|
0.05
|
|
|
0.05
|
|
|
0.02
|
|
|
0.08
|
|
|
0.08
|
|
|
0.06
|
|
|
||||||
Total unit costs
|
1.75
|
|
|
1.77
|
|
|
5.08
|
|
|
2.11
|
|
|
2.15
|
|
|
6.88
|
|
|
||||||
Revenue adjustments, primarily for pricing on prior period open sales
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.03
|
)
|
|
(0.03
|
)
|
|
—
|
|
|
||||||
Gross profit per pound
|
$
|
0.42
|
|
|
$
|
0.40
|
|
|
$
|
0.53
|
|
|
$
|
0.59
|
|
|
$
|
0.55
|
|
|
$
|
1.40
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Copper sales (millions of recoverable pounds)
|
964
|
|
|
964
|
|
|
|
|
956
|
|
|
956
|
|
|
|
|
||||||||
Molybdenum sales (millions of recoverable pounds)
a
|
|
|
|
|
16
|
|
|
|
|
|
|
19
|
|
|
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 June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Copper
|
|
|
|
|
|
|
|
||||||||
Production (millions of recoverable pounds)
|
334
|
|
|
188
|
|
|
669
|
|
|
381
|
|
||||
Sales (millions of recoverable pounds)
|
327
|
|
|
178
|
|
|
650
|
|
|
378
|
|
||||
Average realized price per pound
|
$
|
2.19
|
|
|
$
|
2.69
|
|
|
$
|
2.18
|
|
|
$
|
2.68
|
|
|
|
|
|
|
|
|
|
||||||||
Molybdenum
|
|
|
|
|
|
|
|
||||||||
Production (millions of recoverable pounds)
a
|
4
|
|
|
2
|
|
|
9
|
|
|
4
|
|
||||
|
|
|
|
|
|
|
|
||||||||
SX/EW operations
|
|
|
|
|
|
|
|
||||||||
Leach ore placed in stockpiles (metric tons per day)
|
170,400
|
|
|
237,000
|
|
|
155,500
|
|
|
235,300
|
|
||||
Average copper ore grade (percent)
|
0.39
|
|
|
0.41
|
|
|
0.40
|
|
|
0.41
|
|
||||
Copper production (millions of recoverable pounds)
|
82
|
|
|
109
|
|
|
172
|
|
|
223
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Mill operations
|
|
|
|
|
|
|
|
||||||||
Ore milled (metric tons per day)
|
352,000
|
|
|
116,500
|
|
|
345,700
|
|
|
117,900
|
|
||||
Average ore grade:
|
|
|
|
|
|
|
|
||||||||
Copper (percent)
|
0.42
|
|
|
0.46
|
|
|
0.43
|
|
|
0.45
|
|
||||
Molybdenum (percent)
|
0.02
|
|
|
0.01
|
|
|
0.02
|
|
|
0.02
|
|
||||
Copper recovery rate (percent)
|
88.0
|
|
|
78.2
|
|
|
87.1
|
|
|
78.9
|
|
||||
Copper production (millions of recoverable pounds)
|
252
|
|
|
79
|
|
|
497
|
|
|
158
|
|
a.
|
Refer to "Consolidated Results" for our consolidated molybdenum sales volumes, which include sales of molybdenum produced at Cerro Verde.
|
|
Three Months Ended June 30,
|
|
||||||||||||||
|
2016
|
|
2015
|
|
||||||||||||
|
By-Product
Method
|
|
Co-Product
Method
|
|
By-Product
Method
|
|
Co-Product
Method
|
|
||||||||
Revenues, excluding adjustments
|
$
|
2.19
|
|
|
$
|
2.19
|
|
|
$
|
2.69
|
|
|
$
|
2.69
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Site production and delivery, before net noncash
and other costs shown below
|
1.20
|
|
|
1.13
|
|
|
1.77
|
|
|
1.72
|
|
|
||||
By-product credits
|
(0.12
|
)
|
|
—
|
|
|
(0.04
|
)
|
|
—
|
|
|
||||
Treatment charges
|
0.23
|
|
|
0.23
|
|
|
0.17
|
|
|
0.17
|
|
|
||||
Royalty on metals
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
||||
Unit net cash costs
|
1.31
|
|
|
1.36
|
|
|
1.90
|
|
|
1.89
|
|
|
||||
Depreciation, depletion and amortization
|
0.41
|
|
|
0.39
|
|
|
0.40
|
|
|
0.39
|
|
|
||||
Noncash and other costs (credits), net
|
0.02
|
|
|
0.02
|
|
|
(0.02
|
)
|
|
(0.03
|
)
|
|
||||
Total unit costs
|
1.74
|
|
|
1.77
|
|
|
2.28
|
|
|
2.25
|
|
|
||||
Revenue adjustments, primarily for pricing
on prior period open sales
|
(0.04
|
)
|
|
(0.04
|
)
|
|
(0.05
|
)
|
|
(0.05
|
)
|
|
||||
Gross profit per pound
|
$
|
0.41
|
|
|
$
|
0.38
|
|
|
$
|
0.36
|
|
|
$
|
0.39
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Copper sales (millions of recoverable pounds)
|
327
|
|
|
327
|
|
|
178
|
|
|
178
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Six Months Ended June 30,
|
||||||||||||||
|
2016
|
|
2015
|
||||||||||||
|
By-Product
Method
|
|
Co-Product
Method
|
|
By-Product
Method
|
|
Co-Product
Method
|
||||||||
Revenues, excluding adjustments
|
$
|
2.18
|
|
|
$
|
2.18
|
|
|
$
|
2.68
|
|
|
$
|
2.68
|
|
|
|
|
|
|
|
|
|
||||||||
Site production and delivery, before net noncash and other costs shown below
|
1.22
|
|
|
1.16
|
|
|
1.76
|
|
|
1.70
|
|
||||
By-product credits
|
(0.10
|
)
|
|
—
|
|
|
(0.06
|
)
|
|
—
|
|
||||
Treatment charges
|
0.23
|
|
|
0.23
|
|
|
0.17
|
|
|
0.17
|
|
||||
Royalty on metals
|
0.01
|
|
|
0.01
|
|
|
—
|
|
|
—
|
|
||||
Unit net cash costs
|
1.36
|
|
|
1.40
|
|
|
1.87
|
|
|
1.87
|
|
||||
Depreciation, depletion and amortization
|
0.41
|
|
|
0.39
|
|
|
0.39
|
|
|
0.38
|
|
||||
Noncash and other costs, net
|
0.02
|
|
|
0.02
|
|
|
—
|
|
|
—
|
|
||||
Total unit costs
|
1.79
|
|
|
1.81
|
|
|
2.26
|
|
|
2.25
|
|
||||
Revenue adjustments, primarily for pricing on prior period open sales
|
0.01
|
|
|
0.01
|
|
|
(0.08
|
)
|
|
(0.08
|
)
|
||||
Gross profit per pound
|
$
|
0.40
|
|
|
$
|
0.38
|
|
|
$
|
0.34
|
|
|
$
|
0.35
|
|
|
|
|
|
|
|
|
|
||||||||
Copper sales (millions of recoverable pounds)
|
650
|
|
|
650
|
|
|
378
|
|
|
378
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Operating Data, Net of Joint Venture Interest
|
|
|
|
|
|
|
|
||||||||
Copper
|
|
|
|
|
|
|
|
||||||||
Production (millions of recoverable pounds)
|
208
|
|
|
205
|
|
|
373
|
|
|
359
|
|
||||
Sales (millions of recoverable pounds)
|
196
|
|
|
196
|
|
|
370
|
|
|
351
|
|
||||
Average realized price per pound
|
$
|
2.20
|
|
|
$
|
2.61
|
|
|
$
|
2.17
|
|
|
$
|
2.66
|
|
|
|
|
|
|
|
|
|
||||||||
Gold
|
|
|
|
|
|
|
|
||||||||
Production (thousands of recoverable ounces)
|
158
|
|
|
360
|
|
|
336
|
|
|
615
|
|
||||
Sales (thousands of recoverable ounces)
|
151
|
|
|
346
|
|
|
346
|
|
|
606
|
|
||||
Average realized price per ounce
|
$
|
1,292
|
|
|
$
|
1,173
|
|
|
$
|
1,260
|
|
|
$
|
1,183
|
|
|
|
|
|
|
|
|
|
||||||||
100% Operating Data
|
|
|
|
|
|
|
|
||||||||
Ore milled (metric tons per day):
a
|
|
|
|
|
|
|
|
||||||||
Grasberg open pit
|
110,200
|
|
|
134,200
|
|
|
108,000
|
|
|
121,200
|
|
||||
DOZ underground mine
b
|
36,700
|
|
|
42,700
|
|
|
40,500
|
|
|
45,800
|
|
||||
DMLZ underground mine
c
|
4,900
|
|
|
—
|
|
|
4,500
|
|
|
—
|
|
||||
Grasberg Block Cave
d
|
2,600
|
|
|
—
|
|
|
2,400
|
|
|
—
|
|
||||
Big Gossan underground mine
d
|
1,000
|
|
|
—
|
|
|
600
|
|
|
—
|
|
||||
Total
|
155,400
|
|
|
176,900
|
|
|
156,000
|
|
|
167,000
|
|
||||
Average ore grades:
|
|
|
|
|
|
|
|
||||||||
Copper (percent)
|
0.84
|
|
|
0.67
|
|
|
0.77
|
|
|
0.63
|
|
||||
Gold (grams per metric ton)
|
0.48
|
|
|
0.86
|
|
|
0.50
|
|
|
0.78
|
|
||||
Recovery rates (percent):
|
|
|
|
|
|
|
|
||||||||
Copper
|
90.4
|
|
|
90.6
|
|
|
89.9
|
|
|
90.6
|
|
||||
Gold
|
80.0
|
|
|
83.5
|
|
|
80.3
|
|
|
83.9
|
|
||||
Production:
|
|
|
|
|
|
|
|
||||||||
Copper (millions of recoverable pounds)
|
226
|
|
|
205
|
|
|
409
|
|
|
359
|
|
||||
Gold (thousands of recoverable ounces)
|
174
|
|
|
360
|
|
|
364
|
|
|
615
|
|
a.
|
Amounts represent the approximate average daily throughput processed at PT-FI’s mill facilities from each producing mine and from development activities that result in metal production.
|
b.
|
Ore milled from the DOZ underground mine is expected to ramp up to over 60,000 metric tons of ore per day in 2017.
|
c.
|
Targeted production rates once the DMLZ underground mine reaches full capacity are expected to approximate 80,000 metric tons of ore per day in 2021.
|
d.
|
Production from the Big Gossan underground mine is expected to restart in the first half of 2017, and production from the Grasberg Block Cave underground mine is expected to commence in 2018.
|
|
Three Months Ended June 30,
|
||||||||||||||||||||||
|
2016
|
|
2015
|
||||||||||||||||||||
|
By-Product Method
|
|
Co-Product Method
|
|
By-Product Method
|
|
Co-Product Method
|
||||||||||||||||
|
|
Copper
|
|
Gold
|
|
|
Copper
|
|
Gold
|
||||||||||||||
Revenues, excluding adjustments
|
$
|
2.20
|
|
|
$
|
2.20
|
|
|
$
|
1,292
|
|
|
$
|
2.61
|
|
|
$
|
2.61
|
|
|
$
|
1,173
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Site production and delivery, before net noncash and other costs shown below
|
1.77
|
|
|
1.20
|
|
|
706
|
|
|
2.26
|
|
|
1.25
|
|
|
560
|
|
||||||
Gold and silver credits
|
(1.05
|
)
|
|
—
|
|
|
—
|
|
|
(2.13
|
)
|
|
—
|
|
|
—
|
|
||||||
Treatment charges
|
0.29
|
|
|
0.20
|
|
|
116
|
|
|
0.32
|
|
|
0.18
|
|
|
79
|
|
||||||
Export duties
|
0.08
|
|
|
0.05
|
|
|
32
|
|
|
0.18
|
|
|
0.10
|
|
|
45
|
|
||||||
Royalty on metals
|
0.11
|
|
|
0.07
|
|
|
45
|
|
|
0.18
|
|
|
0.10
|
|
|
45
|
|
||||||
Unit net cash costs
|
1.20
|
|
|
1.52
|
|
|
899
|
|
|
0.81
|
|
|
1.63
|
|
|
729
|
|
||||||
Depreciation and amortization
|
0.48
|
|
|
0.33
|
|
|
190
|
|
|
0.40
|
|
|
0.22
|
|
|
100
|
|
||||||
Noncash and other costs, net
|
0.01
|
|
|
0.01
|
|
|
4
|
|
|
0.04
|
|
|
0.02
|
|
|
10
|
|
||||||
Total unit costs
|
1.69
|
|
|
1.86
|
|
|
1,093
|
|
|
1.25
|
|
|
1.87
|
|
|
839
|
|
||||||
Revenue adjustments, primarily for pricing on prior period open sales
|
(0.06
|
)
|
|
(0.06
|
)
|
|
7
|
|
|
(0.02
|
)
|
|
(0.02
|
)
|
|
7
|
|
||||||
PT Smelting intercompany loss
|
(0.03
|
)
|
|
(0.02
|
)
|
|
(14
|
)
|
|
(0.02
|
)
|
|
(0.01
|
)
|
|
(5
|
)
|
||||||
Gross profit per pound/ounce
|
$
|
0.42
|
|
|
$
|
0.26
|
|
|
$
|
192
|
|
|
$
|
1.32
|
|
|
$
|
0.71
|
|
|
$
|
336
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Copper sales (millions of recoverable pounds)
|
196
|
|
|
196
|
|
|
|
|
196
|
|
|
196
|
|
|
|
||||||||
Gold sales (thousands of recoverable ounces)
|
|
|
|
|
151
|
|
|
|
|
|
|
346
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Six Months Ended June 30,
|
||||||||||||||||||||||
|
2016
|
|
2015
|
||||||||||||||||||||
|
By-Product Method
|
|
Co-Product Method
|
|
By-Product Method
|
|
Co-Product Method
|
||||||||||||||||
|
|
Copper
|
|
Gold
|
|
|
Copper
|
|
Gold
|
||||||||||||||
Revenues, excluding adjustments
|
$
|
2.17
|
|
|
$
|
2.17
|
|
|
$
|
1,260
|
|
|
$
|
2.66
|
|
|
$
|
2.66
|
|
|
$
|
1,183
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Site production and delivery, before net noncash and other costs shown below
|
1.99
|
|
|
1.27
|
|
|
740
|
|
|
2.51
|
|
|
1.41
|
|
|
626
|
|
||||||
Gold and silver credits
|
(1.27
|
)
|
|
—
|
|
|
—
|
|
|
(2.11
|
)
|
|
—
|
|
|
—
|
|
||||||
Treatment charges
|
0.30
|
|
|
0.20
|
|
|
113
|
|
|
0.31
|
|
|
0.17
|
|
|
77
|
|
||||||
Export duties
|
0.08
|
|
|
0.05
|
|
|
29
|
|
|
0.16
|
|
|
0.09
|
|
|
41
|
|
||||||
Royalty on metals
|
0.12
|
|
|
0.07
|
|
|
47
|
|
|
0.17
|
|
|
0.10
|
|
|
42
|
|
||||||
Unit net cash costs
|
1.22
|
|
|
1.59
|
|
|
929
|
|
|
1.04
|
|
|
1.77
|
|
|
786
|
|
||||||
Depreciation and amortization
|
0.47
|
|
|
0.30
|
|
|
175
|
|
|
0.42
|
|
|
0.24
|
|
|
106
|
|
||||||
Noncash and other costs, net
|
0.04
|
|
|
0.02
|
|
|
14
|
|
|
0.04
|
|
|
0.02
|
|
|
10
|
|
||||||
Total unit costs
|
1.73
|
|
|
1.91
|
|
|
1,118
|
|
|
1.50
|
|
|
2.03
|
|
|
902
|
|
||||||
Revenue adjustments, primarily for pricing on prior period open sales
|
—
|
|
|
—
|
|
|
48
|
|
|
(0.15
|
)
|
|
(0.15
|
)
|
|
14
|
|
||||||
PT Smelting intercompany profit
|
—
|
|
|
—
|
|
|
2
|
|
|
0.01
|
|
|
0.01
|
|
|
2
|
|
||||||
Gross profit per pound/ounce
|
$
|
0.44
|
|
|
$
|
0.26
|
|
|
$
|
192
|
|
|
$
|
1.02
|
|
|
$
|
0.49
|
|
|
$
|
297
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Copper sales (millions of recoverable pounds)
|
370
|
|
|
370
|
|
|
|
|
351
|
|
|
351
|
|
|
|
||||||||
Gold sales (thousands of recoverable ounces)
|
|
|
|
|
346
|
|
|
|
|
|
|
606
|
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
|
||||||||||||
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
||||||||
Sales Volumes
|
|
|
|
|
|
|
|
|
|
||||||||
Oil (MMBbls)
|
|
8.7
|
|
|
8.6
|
|
|
17.0
|
|
|
17.0
|
|
|
||||
Natural gas (Bcf)
|
|
18.8
|
|
|
23.5
|
|
|
38.4
|
|
|
45.3
|
|
|
||||
NGLs (MMBbls)
|
|
0.6
|
|
|
0.6
|
|
|
1.2
|
|
|
1.1
|
|
|
||||
MMBOE
|
|
12.4
|
|
|
13.1
|
|
|
24.5
|
|
|
25.6
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
||||||||
Average Realized Prices
a
|
|
|
|
|
|
|
|
|
|
||||||||
Oil (per barrel)
|
|
$
|
41.10
|
|
|
$
|
67.61
|
|
b
|
$
|
35.21
|
|
|
$
|
62.13
|
|
b
|
Natural gas
(per MMBtu)
|
|
$
|
2.04
|
|
|
$
|
2.66
|
|
|
$
|
2.02
|
|
|
$
|
2.75
|
|
|
NGLs (per barrel)
|
|
$
|
18.00
|
|
|
$
|
20.50
|
|
|
$
|
16.44
|
|
|
$
|
21.71
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Gross Loss per BOE
|
|
|
|
|
|
|
|
|
|
||||||||
Realized revenues
a
|
|
$
|
32.70
|
|
|
$
|
50.04
|
|
b
|
$
|
28.29
|
|
|
$
|
46.95
|
|
b
|
Cash production costs
a
|
|
(15.00
|
)
|
|
(19.04
|
)
|
|
(15.42
|
)
|
|
(19.62
|
)
|
|
||||
Cash operating margin
a
|
|
17.70
|
|
|
31.00
|
|
|
12.87
|
|
|
27.33
|
|
|
||||
Depreciation, depletion and amortization
|
|
(17.61
|
)
|
|
(36.99
|
)
|
|
(19.27
|
)
|
|
(39.59
|
)
|
|
||||
Impairment of oil and gas properties
|
|
(23.46
|
)
|
|
(204.91
|
)
|
|
(165.56
|
)
|
|
(225.89
|
)
|
|
||||
Accretion and other costs
c
|
|
(56.76
|
)
|
|
(2.46
|
)
|
|
(37.41
|
)
|
|
(2.39
|
)
|
|
||||
Net noncash mark-to-market losses on derivative contracts
|
|
—
|
|
|
(7.26
|
)
|
|
—
|
|
|
(5.60
|
)
|
|
||||
Other revenues
|
|
0.42
|
|
|
0.61
|
|
|
0.45
|
|
|
0.34
|
|
|
||||
Gross loss
|
|
$
|
(79.71
|
)
|
|
$
|
(220.01
|
)
|
|
$
|
(208.92
|
)
|
|
$
|
(245.80
|
)
|
|
a.
|
Cash operating margin for oil and gas operations reflects realized revenues less cash production costs. Cash production costs exclude accretion and other costs. For reconciliations of realized revenues (including average realized prices for oil, natural gas and NGLs) and cash production costs to revenues and production and delivery costs reported in our consolidated financial statements, refer to "Product Revenues and Production Costs."
|
b.
|
Includes realized cash gains on crude oil derivative contracts of
$7.73
per BOE (
$11.79
per barrel of oil) in
second-quarter
2015
and
$7.87
per BOE (
$11.88
per barrel of oil) for
the first six months
of
2015
. FCX currently does not have oil and gas derivative contracts in place for 2016 or future years.
|
c.
|
Includes charges of
$55.91
per BOE in
second-quarter
2016
and
$36.36
per BOE for
the first six months
of
2016
, primarily for the termination and settlement of drillship contracts and inventory write downs. Includes charges of
$1.72
per BOE in
second-quarter
2015
and
$1.54
per BOE for
the first six months
of
2015
, primarily for idle rig costs and inventory write downs.
|
a.
|
Includes sales from properties on the GOM Shelf and in the Deepwater GOM, and the Inboard Lower Tertiary/Cretaceous natural gas trend.
|
b.
|
In July 2016, FM O&G completed the sale of the Haynesville shale assets.
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Copper
(recoverable)
|
|
|
|
|
|
|
|
||||||||
Production (millions of pounds)
|
122
|
|
|
115
|
|
|
232
|
|
|
231
|
|
||||
Sales (millions of pounds)
|
124
|
|
|
104
|
|
|
247
|
|
|
237
|
|
||||
Average realized price per pound
a
|
$
|
2.07
|
|
|
$
|
2.63
|
|
|
$
|
2.08
|
|
|
$
|
2.66
|
|
|
|
|
|
|
|
|
|
||||||||
Cobalt
(contained)
|
|
|
|
|
|
|
|
||||||||
Production (millions of pounds)
|
10
|
|
|
9
|
|
|
19
|
|
|
16
|
|
||||
Sales (millions of pounds)
|
10
|
|
|
8
|
|
|
20
|
|
|
16
|
|
||||
Average realized price per pound
|
$
|
6.58
|
|
|
$
|
9.27
|
|
|
$
|
6.52
|
|
|
$
|
9.23
|
|
|
|
|
|
|
|
|
|
||||||||
Ore milled (metric tons per day)
|
15,900
|
|
|
15,300
|
|
|
15,500
|
|
|
14,900
|
|
||||
Average ore grades (percent):
|
|
|
|
|
|
|
|
||||||||
Copper
|
4.05
|
|
|
4.02
|
|
|
4.01
|
|
|
4.18
|
|
||||
Cobalt
|
0.43
|
|
|
0.44
|
|
|
0.46
|
|
|
0.40
|
|
||||
Copper recovery rate (percent)
|
94.5
|
|
|
93.9
|
|
|
93.7
|
|
|
93.9
|
|
a.
|
Includes point-of-sale transportation costs as negotiated in customer contracts.
|
|
Three Months Ended June 30,
|
||||||||||||||||||||||
|
2016
|
|
2015
|
||||||||||||||||||||
|
By-Product Method
|
|
Co-Product Method
|
|
By-Product Method
|
|
Co-Product Method
|
||||||||||||||||
|
|
Copper
|
|
Cobalt
|
|
|
Copper
|
|
Cobalt
|
||||||||||||||
Revenues, excluding adjustments
a
|
$
|
2.07
|
|
|
$
|
2.07
|
|
|
$
|
6.58
|
|
|
$
|
2.63
|
|
|
$
|
2.63
|
|
|
$
|
9.27
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Site production and delivery, before net noncash and other costs shown below
|
1.62
|
|
|
1.42
|
|
|
5.03
|
|
|
1.54
|
|
|
1.35
|
|
|
5.48
|
|
||||||
Cobalt credits
b
|
(0.33
|
)
|
|
—
|
|
|
—
|
|
|
(0.53
|
)
|
|
—
|
|
|
—
|
|
||||||
Royalty on metals
|
0.05
|
|
|
0.04
|
|
|
0.11
|
|
|
0.06
|
|
|
0.05
|
|
|
0.16
|
|
||||||
Unit net cash costs
|
1.34
|
|
|
1.46
|
|
|
5.14
|
|
|
1.07
|
|
|
1.40
|
|
|
5.64
|
|
||||||
Depreciation, depletion and amortization
|
0.49
|
|
|
0.41
|
|
|
1.07
|
|
|
0.55
|
|
|
0.43
|
|
|
1.42
|
|
||||||
Noncash and other costs, net
|
0.09
|
|
|
0.08
|
|
|
0.20
|
|
|
0.03
|
|
|
0.03
|
|
|
0.10
|
|
||||||
Total unit costs
|
1.92
|
|
|
1.95
|
|
|
6.41
|
|
|
1.65
|
|
|
1.86
|
|
|
7.16
|
|
||||||
Revenue adjustments, primarily for pricing on prior period open sales
|
(0.01
|
)
|
|
(0.01
|
)
|
|
0.17
|
|
|
0.02
|
|
|
0.02
|
|
|
0.50
|
|
||||||
Gross profit per pound
|
$
|
0.14
|
|
|
$
|
0.11
|
|
|
$
|
0.34
|
|
|
$
|
1.00
|
|
|
$
|
0.79
|
|
|
$
|
2.61
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Copper sales (millions of recoverable pounds)
|
124
|
|
|
124
|
|
|
|
|
104
|
|
|
104
|
|
|
|
||||||||
Cobalt sales (millions of contained pounds)
|
|
|
|
|
10
|
|
|
|
|
|
|
8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Six Months Ended June 30,
|
||||||||||||||||||||||
|
2016
|
|
2015
|
||||||||||||||||||||
|
By-Product Method
|
|
Co-Product Method
|
|
By-Product Method
|
|
Co-Product Method
|
||||||||||||||||
|
|
Copper
|
|
Cobalt
|
|
|
Copper
|
|
Cobalt
|
||||||||||||||
Revenues, excluding adjustments
a
|
$
|
2.08
|
|
|
$
|
2.08
|
|
|
$
|
6.52
|
|
|
$
|
2.66
|
|
|
$
|
2.66
|
|
|
$
|
9.23
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Site production and delivery, before net noncash and other costs shown below
|
1.63
|
|
|
1.42
|
|
|
4.99
|
|
|
1.56
|
|
|
1.37
|
|
|
5.54
|
|
||||||
Cobalt credits
b
|
(0.35
|
)
|
|
—
|
|
|
—
|
|
|
(0.44
|
)
|
|
—
|
|
|
—
|
|
||||||
Royalty on metals
|
0.05
|
|
|
0.03
|
|
|
0.11
|
|
|
0.06
|
|
|
0.05
|
|
|
0.15
|
|
||||||
Unit net cash costs
|
1.33
|
|
|
1.45
|
|
|
5.10
|
|
|
1.18
|
|
|
1.42
|
|
|
5.69
|
|
||||||
Depreciation, depletion and amortization
|
0.49
|
|
|
0.41
|
|
|
1.05
|
|
|
0.55
|
|
|
0.46
|
|
|
1.31
|
|
||||||
Noncash and other costs, net
|
0.05
|
|
|
0.04
|
|
|
0.11
|
|
|
0.03
|
|
|
0.03
|
|
|
0.08
|
|
||||||
Total unit costs
|
1.87
|
|
|
1.90
|
|
|
6.26
|
|
|
1.76
|
|
|
1.91
|
|
|
7.08
|
|
||||||
Revenue adjustments, primarily for pricing on prior period open sales
|
(0.02
|
)
|
|
(0.02
|
)
|
|
0.19
|
|
|
(0.03
|
)
|
|
(0.03
|
)
|
|
(0.04
|
)
|
||||||
Gross profit per pound
|
$
|
0.19
|
|
|
$
|
0.16
|
|
|
$
|
0.45
|
|
|
$
|
0.87
|
|
|
$
|
0.72
|
|
|
$
|
2.11
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Copper sales (millions of recoverable pounds)
|
247
|
|
|
247
|
|
|
|
|
237
|
|
|
237
|
|
|
|
||||||||
Cobalt sales (millions of contained pounds)
|
|
|
|
|
20
|
|
|
|
|
|
|
16
|
|
a.
|
Includes point-of-sale transportation costs as negotiated in customer contracts.
|
b.
|
Net of cobalt downstream processing and freight costs.
|
|
June 30, 2016
|
|
December 31, 2015
|
||||
Cash at domestic companies
|
$
|
20
|
|
|
$
|
6
|
|
Cash at international operations
|
332
|
|
|
189
|
|
||
Total consolidated cash and cash equivalents
|
352
|
|
|
195
|
|
||
Noncontrolling interests’ share
|
(102
|
)
|
|
(36
|
)
|
||
Cash, net of noncontrolling interests’ share
|
250
|
|
|
159
|
|
||
Withholding taxes and other
|
(23
|
)
|
|
(11
|
)
|
||
Net cash available
|
$
|
227
|
|
|
$
|
148
|
|
|
June 30, 2016
|
|
December 31, 2015
|
|
|||||||||
|
|
|
Weighted-
|
|
|
|
Weighted-
|
|
|||||
|
|
|
Average
|
|
|
|
Average
|
|
|||||
|
|
|
Interest Rate
|
|
|
|
Interest Rate
|
|
|||||
FCX Senior Notes
|
$
|
11.6
|
|
|
3.8%
|
|
$
|
11.9
|
|
|
3.8
|
%
|
|
FCX Term Loan
|
2.5
|
|
a
|
3.2%
|
|
3.0
|
|
|
2.2
|
%
|
|
||
FM O&G LLC Senior Notes
|
2.5
|
|
|
6.6%
|
|
2.5
|
|
|
6.6
|
%
|
|
||
Cerro Verde Credit Facility
|
1.8
|
|
|
2.8%
|
|
1.8
|
|
|
2.8
|
%
|
|
||
Other
|
0.9
|
|
|
4.7%
|
|
1.2
|
|
|
3.9
|
%
|
|
||
Total debt
|
$
|
19.3
|
|
|
4.0%
|
|
$
|
20.4
|
|
|
3.8
|
%
|
|
|
|
|
|
|
|
|
|
|
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, 2016
|
|
|
|
||||||||||||||||
(In millions)
|
By-Product
|
|
Co-Product Method
|
||||||||||||||||
|
Method
|
|
Copper
|
|
Molybdenum
a
|
|
Other
b
|
|
Total
|
||||||||||
Revenues, excluding adjustments
|
$
|
2,092
|
|
|
$
|
2,092
|
|
|
$
|
90
|
|
|
$
|
41
|
|
|
$
|
2,223
|
|
Site production and delivery, before net noncash
and other costs shown below
|
1,349
|
|
|
1,295
|
|
|
72
|
|
|
21
|
|
|
1,388
|
|
|||||
By-product credits
|
(92
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Treatment charges
|
103
|
|
|
99
|
|
|
—
|
|
|
4
|
|
|
103
|
|
|||||
Net cash costs
|
1,360
|
|
|
1,394
|
|
|
72
|
|
|
25
|
|
|
1,491
|
|
|||||
DD&A
|
277
|
|
|
263
|
|
|
9
|
|
|
5
|
|
|
277
|
|
|||||
Noncash and other costs, net
|
48
|
|
|
48
|
|
|
—
|
|
|
—
|
|
|
48
|
|
|||||
Total costs
|
1,685
|
|
|
1,705
|
|
|
81
|
|
|
30
|
|
|
1,816
|
|
|||||
Revenue adjustments, primarily for pricing
on prior period open sales
|
(1
|
)
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|||||
Gross profit
|
$
|
406
|
|
|
$
|
386
|
|
|
$
|
9
|
|
|
$
|
11
|
|
|
$
|
406
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Copper sales (millions of recoverable pounds)
|
964
|
|
|
964
|
|
|
|
|
|
|
|
||||||||
Molybdenum sales (millions of recoverable pounds)
a
|
|
|
|
|
16
|
|
|
|
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Gross profit per pound of copper/molybdenum:
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Revenues, excluding adjustments
|
$
|
2.17
|
|
|
$
|
2.17
|
|
|
$
|
5.61
|
|
|
|
|
|
||||
Site production and delivery, before net noncash
|
|
|
|
|
|
|
|
|
|
||||||||||
and other costs shown below
|
1.40
|
|
|
1.34
|
|
|
4.51
|
|
|
|
|
|
|||||||
By-product credits
|
(0.10
|
)
|
|
—
|
|
|
—
|
|
|
|
|
|
|||||||
Treatment charges
|
0.11
|
|
|
0.11
|
|
|
—
|
|
|
|
|
|
|||||||
Unit net cash costs
|
1.41
|
|
|
1.45
|
|
|
4.51
|
|
|
|
|
|
|||||||
DD&A
|
0.29
|
|
|
0.27
|
|
|
0.55
|
|
|
|
|
|
|||||||
Noncash and other costs, net
|
0.05
|
|
|
0.05
|
|
|
0.02
|
|
|
|
|
|
|||||||
Total unit costs
|
1.75
|
|
|
1.77
|
|
|
5.08
|
|
|
|
|
|
|||||||
Revenue adjustments, primarily for pricing
|
|
|
|
|
|
|
|
|
|
||||||||||
on prior period open sales
|
—
|
|
|
—
|
|
|
—
|
|
|
|
|
|
|||||||
Gross profit per pound
|
$
|
0.42
|
|
|
$
|
0.40
|
|
|
$
|
0.53
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Reconciliation to Amounts Reported
|
|
|
|
|
|
|
|
|
|
||||||||||
(In millions)
|
Revenues
|
|
Production and Delivery
|
|
DD&A
|
|
|
|
|
||||||||||
Totals presented above
|
$
|
2,223
|
|
|
$
|
1,388
|
|
|
$
|
277
|
|
|
|
|
|
||||
Treatment charges
|
—
|
|
|
103
|
|
|
—
|
|
|
|
|
|
|||||||
Noncash and other costs, net
|
—
|
|
|
48
|
|
|
—
|
|
|
|
|
|
|||||||
Revenue adjustments, primarily for pricing
on prior period open sales
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
|
|
|
|||||||
Eliminations and other
|
(26
|
)
|
|
(25
|
)
|
|
1
|
|
|
|
|
|
|||||||
North America copper mines
|
2,196
|
|
|
1,514
|
|
|
278
|
|
|
|
|
|
|||||||
Other mining & eliminations
c
|
3,675
|
|
|
2,632
|
|
|
536
|
|
|
|
|
|
|||||||
Total mining
|
5,871
|
|
|
4,146
|
|
|
814
|
|
|
|
|
|
|||||||
U.S. oil & gas operations
|
705
|
|
|
1,296
|
|
|
473
|
|
|
|
|
|
|||||||
Corporate, other & eliminations
|
—
|
|
|
13
|
|
|
7
|
|
|
|
|
|
|||||||
As reported in FCX’s consolidated financial statements
|
$
|
6,576
|
|
|
$
|
5,455
|
|
|
$
|
1,294
|
|
|
|
|
|
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, 2016
|
|
|
|
|
|
|
|
||||||||
(In millions)
|
By-Product
|
|
Co-Product Method
|
||||||||||||
|
Method
|
|
Copper
|
|
Other
a
|
|
Total
|
||||||||
Revenues, excluding adjustments
|
$
|
715
|
|
|
$
|
715
|
|
|
$
|
51
|
|
|
$
|
766
|
|
Site production and delivery, before net noncash
and other costs shown below
|
391
|
|
|
369
|
|
|
33
|
|
|
402
|
|
||||
By-product credits
|
(40
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Treatment charges
|
76
|
|
|
76
|
|
|
—
|
|
|
76
|
|
||||
Royalty on metals
|
2
|
|
|
2
|
|
|
—
|
|
|
2
|
|
||||
Net cash costs
|
429
|
|
|
447
|
|
|
33
|
|
|
480
|
|
||||
DD&A
|
136
|
|
|
127
|
|
|
9
|
|
|
136
|
|
||||
Noncash and other costs, net
|
5
|
|
|
5
|
|
|
—
|
|
|
5
|
|
||||
Total costs
|
570
|
|
|
579
|
|
|
42
|
|
|
621
|
|
||||
Revenue adjustments, primarily for pricing
on prior period open sales
|
(11
|
)
|
|
(11
|
)
|
|
—
|
|
|
(11
|
)
|
||||
Gross profit
|
$
|
134
|
|
|
$
|
125
|
|
|
$
|
9
|
|
|
$
|
134
|
|
|
|
|
|
|
|
|
|
||||||||
Copper sales (millions of recoverable pounds)
|
327
|
|
|
327
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
||||||||
Gross profit per pound of copper:
|
|
|
|
||||||||||||
|
|
|
|
|
|
|
|
||||||||
Revenues, excluding adjustments
|
$
|
2.19
|
|
|
$
|
2.19
|
|
|
|
|
|
||||
Site production and delivery, before net noncash
and other costs shown below
|
1.20
|
|
|
1.13
|
|
|
|
|
|
||||||
By-product credits
|
(0.12
|
)
|
|
—
|
|
|
|
|
|
||||||
Treatment charges
|
0.23
|
|
|
0.23
|
|
|
|
|
|
||||||
Royalty on metals
|
—
|
|
|
—
|
|
|
|
|
|
||||||
Unit net cash costs
|
1.31
|
|
|
1.36
|
|
|
|
|
|
||||||
DD&A
|
0.41
|
|
|
0.39
|
|
|
|
|
|
||||||
Noncash and other costs, net
|
0.02
|
|
|
0.02
|
|
|
|
|
|
||||||
Total unit costs
|
1.74
|
|
|
1.77
|
|
|
|
|
|
||||||
Revenue adjustments, primarily for pricing
on prior period open sales
|
(0.04
|
)
|
|
(0.04
|
)
|
|
|
|
|
||||||
Gross profit per pound
|
$
|
0.41
|
|
|
$
|
0.38
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Reconciliation to Amounts Reported
|
|
|
|
|
|
|
|
||||||||
(In millions)
|
Revenues
|
|
Production and Delivery
|
|
DD&A
|
|
|
||||||||
Totals presented above
|
$
|
766
|
|
|
$
|
402
|
|
|
$
|
136
|
|
|
|
||
Treatment charges
|
(76
|
)
|
|
—
|
|
|
—
|
|
|
|
|||||
Royalty on metals
|
(2
|
)
|
|
—
|
|
|
—
|
|
|
|
|||||
Noncash and other costs, net
|
—
|
|
|
5
|
|
|
—
|
|
|
|
|||||
Revenue adjustments, primarily for pricing
on prior period open sales
|
(11
|
)
|
|
—
|
|
|
—
|
|
|
|
|||||
Eliminations and other
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
|
|||||
South America mining
|
677
|
|
|
406
|
|
|
136
|
|
|
|
|||||
Other mining & eliminations
b
|
2,247
|
|
|
1,651
|
|
|
274
|
|
|
|
|||||
Total mining
|
2,924
|
|
|
2,057
|
|
|
410
|
|
|
|
|||||
U.S. oil & gas operations
|
410
|
|
|
889
|
|
|
218
|
|
|
|
|||||
Corporate, other & eliminations
|
—
|
|
|
10
|
|
|
4
|
|
|
|
|||||
As reported in FCX’s consolidated financial statements
|
$
|
3,334
|
|
|
$
|
2,956
|
|
|
$
|
632
|
|
|
|
a.
|
Includes silver sales of
911 thousand
ounces (
$17.50
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
.
|
Three Months Ended June 30, 2015
|
|
|
|
|
|
|
|
||||||||
(In millions)
|
By-Product
|
|
Co-Product Method
|
||||||||||||
|
Method
|
|
Copper
|
|
Other
a
|
|
Total
|
||||||||
Revenues, excluding adjustments
|
$
|
479
|
|
|
$
|
479
|
|
|
$
|
14
|
|
|
$
|
493
|
|
Site production and delivery, before net noncash
and other costs shown below
|
314
|
|
|
305
|
|
|
15
|
|
|
320
|
|
||||
By-product credits
|
(8
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Treatment charges
|
30
|
|
|
30
|
|
|
—
|
|
|
30
|
|
||||
Royalty on metals
|
1
|
|
|
1
|
|
|
—
|
|
|
1
|
|
||||
Net cash costs
|
337
|
|
|
336
|
|
|
15
|
|
|
351
|
|
||||
DD&A
|
72
|
|
|
70
|
|
|
2
|
|
|
72
|
|
||||
Noncash and other (credits) costs, net
|
(4
|
)
|
|
(5
|
)
|
|
1
|
|
|
(4
|
)
|
||||
Total costs
|
405
|
|
|
401
|
|
|
18
|
|
|
419
|
|
||||
Revenue adjustments, primarily for pricing
on prior period open sales
|
(8
|
)
|
|
(8
|
)
|
|
—
|
|
|
(8
|
)
|
||||
Gross profit
|
$
|
66
|
|
|
$
|
70
|
|
|
$
|
(4
|
)
|
|
$
|
66
|
|
|
|
|
|
|
|
|
|
||||||||
Copper sales (millions of recoverable pounds)
|
178
|
|
|
178
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
||||||||
Gross profit per pound of copper:
|
|
|
|
||||||||||||
|
|
|
|
|
|
|
|
||||||||
Revenues, excluding adjustments
|
$
|
2.69
|
|
|
$
|
2.69
|
|
|
|
|
|
||||
Site production and delivery, before net noncash
and other costs shown below
|
1.77
|
|
|
1.72
|
|
|
|
|
|
||||||
By-product credits
|
(0.04
|
)
|
|
—
|
|
|
|
|
|
||||||
Treatment charges
|
0.17
|
|
|
0.17
|
|
|
|
|
|
||||||
Royalty on metals
|
—
|
|
|
—
|
|
|
|
|
|
||||||
Unit net cash costs
|
1.90
|
|
|
1.89
|
|
|
|
|
|
||||||
DD&A
|
0.40
|
|
|
0.39
|
|
|
|
|
|
||||||
Noncash and other credits, net
|
(0.02
|
)
|
|
(0.03
|
)
|
|
|
|
|
||||||
Total unit costs
|
2.28
|
|
|
2.25
|
|
|
|
|
|
||||||
Revenue adjustments, primarily for pricing
on prior period open sales
|
(0.05
|
)
|
|
(0.05
|
)
|
|
|
|
|
||||||
Gross profit per pound
|
$
|
0.36
|
|
|
$
|
0.39
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Reconciliation to Amounts Reported
|
|
|
|
|
|
|
|
||||||||
(In millions)
|
Revenues
|
|
Production and Delivery
|
|
DD&A
|
|
|
||||||||
Totals presented above
|
$
|
493
|
|
|
$
|
320
|
|
|
$
|
72
|
|
|
|
||
Treatment charges
|
(30
|
)
|
|
—
|
|
|
—
|
|
|
|
|||||
Royalty on metals
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
|
|||||
Noncash and other credits, net
|
—
|
|
|
(4
|
)
|
|
—
|
|
|
|
|||||
Revenue adjustments, primarily for pricing
on prior period open sales
|
(8
|
)
|
|
—
|
|
|
—
|
|
|
|
|||||
Eliminations and other
|
(1
|
)
|
|
(1
|
)
|
|
—
|
|
|
|
|||||
South America mining
|
453
|
|
|
315
|
|
|
72
|
|
|
|
|||||
Other mining & eliminations
b
|
2,916
|
|
|
2,053
|
|
|
273
|
|
|
|
|||||
Total mining
|
3,369
|
|
|
2,368
|
|
|
345
|
|
|
|
|||||
U.S. oil & gas operations
|
569
|
|
|
281
|
|
|
485
|
|
|
|
|||||
Corporate, other & eliminations
|
—
|
|
|
2
|
|
|
3
|
|
|
|
|||||
As reported in FCX’s consolidated financial statements
|
$
|
3,938
|
|
|
$
|
2,651
|
|
|
$
|
833
|
|
|
|
a.
|
Includes silver sales of
373 thousand
ounces (
$15.15
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, 2016
|
|
|
|
|
|
|
|
||||||||
(In millions)
|
By-Product
|
|
Co-Product Method
|
||||||||||||
|
Method
|
|
Copper
|
|
Other
a
|
|
Total
|
||||||||
Revenues, excluding adjustments
|
$
|
1,414
|
|
|
$
|
1,414
|
|
|
$
|
80
|
|
|
$
|
1,494
|
|
Site production and delivery, before net noncash
and other costs shown below
|
789
|
|
|
754
|
|
|
53
|
|
|
807
|
|
||||
By-product credits
|
(62
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Treatment charges
|
151
|
|
|
151
|
|
|
—
|
|
|
151
|
|
||||
Royalty on metals
|
3
|
|
|
3
|
|
|
—
|
|
|
3
|
|
||||
Net cash costs
|
881
|
|
|
908
|
|
|
53
|
|
|
961
|
|
||||
DD&A
|
267
|
|
|
253
|
|
|
14
|
|
|
267
|
|
||||
Noncash and other costs, net
|
12
|
|
|
12
|
|
|
—
|
|
|
12
|
|
||||
Total costs
|
1,160
|
|
|
1,173
|
|
|
67
|
|
|
1,240
|
|
||||
Revenue adjustments, primarily for pricing
on prior period open sales
|
8
|
|
|
8
|
|
|
—
|
|
|
8
|
|
||||
Gross profit
|
$
|
262
|
|
|
$
|
249
|
|
|
$
|
13
|
|
|
$
|
262
|
|
|
|
|
|
|
|
|
|
||||||||
Copper sales (millions of recoverable pounds)
|
650
|
|
|
650
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
||||||||
Gross profit per pound of copper:
|
|
|
|
||||||||||||
|
|
|
|
|
|
|
|
||||||||
Revenues, excluding adjustments
|
$
|
2.18
|
|
|
$
|
2.18
|
|
|
|
|
|
||||
Site production and delivery, before net noncash
|
|
|
|
|
|
|
|
||||||||
and other costs shown below
|
1.22
|
|
|
1.16
|
|
|
|
|
|
||||||
By-product credits
|
(0.10
|
)
|
|
—
|
|
|
|
|
|
||||||
Treatment charges
|
0.23
|
|
|
0.23
|
|
|
|
|
|
||||||
Royalty on metals
|
0.01
|
|
|
0.01
|
|
|
|
|
|
||||||
Unit net cash costs
|
1.36
|
|
|
1.40
|
|
|
|
|
|
||||||
DD&A
|
0.41
|
|
|
0.39
|
|
|
|
|
|
||||||
Noncash and other costs, net
|
0.02
|
|
|
0.02
|
|
|
|
|
|
||||||
Total unit costs
|
1.79
|
|
|
1.81
|
|
|
|
|
|
||||||
Revenue adjustments, primarily for pricing
|
|
|
|
|
|
|
|
||||||||
on prior period open sales
|
0.01
|
|
|
0.01
|
|
|
|
|
|
||||||
Gross profit per pound
|
$
|
0.40
|
|
|
$
|
0.38
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Reconciliation to Amounts Reported
|
|
|
|
|
|
|
|
||||||||
(In millions)
|
Revenues
|
|
Production and Delivery
|
|
DD&A
|
|
|
||||||||
Totals presented above
|
$
|
1,494
|
|
|
$
|
807
|
|
|
$
|
267
|
|
|
|
||
Treatment charges
|
(151
|
)
|
|
—
|
|
|
—
|
|
|
|
|||||
Royalty on metals
|
(3
|
)
|
|
—
|
|
|
—
|
|
|
|
|||||
Noncash and other costs, net
|
—
|
|
|
12
|
|
|
—
|
|
|
|
|||||
Revenue adjustments, primarily for pricing
on prior period open sales
|
8
|
|
|
—
|
|
|
—
|
|
|
|
|||||
Eliminations and other
|
—
|
|
|
(3
|
)
|
|
1
|
|
|
|
|||||
South America mining
|
1,348
|
|
|
816
|
|
|
268
|
|
|
|
|||||
Other mining & eliminations
b
|
4,523
|
|
|
3,330
|
|
|
546
|
|
|
|
|||||
Total mining
|
5,871
|
|
|
4,146
|
|
|
814
|
|
|
|
|||||
U.S. oil & gas operations
|
705
|
|
|
1,296
|
|
|
473
|
|
|
|
|||||
Corporate, other & eliminations
|
—
|
|
|
13
|
|
|
7
|
|
|
|
|||||
As reported in FCX’s consolidated financial statements
|
$
|
6,576
|
|
|
$
|
5,455
|
|
|
$
|
1,294
|
|
|
|
a.
|
Includes silver sales of
1.8 million
ounces (
$16.03
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, 2015
|
|
|
|
|
|
|
|
||||||||
(In millions)
|
By-Product
|
|
Co-Product Method
|
||||||||||||
|
Method
|
|
Copper
|
|
Other
a
|
|
Total
|
||||||||
Revenues, excluding adjustments
|
$
|
1,013
|
|
|
$
|
1,013
|
|
|
$
|
35
|
|
|
$
|
1,048
|
|
Site production and delivery, before net noncash
and other costs shown below
|
664
|
|
|
642
|
|
|
33
|
|
|
675
|
|
||||
By-product credits
|
(24
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Treatment charges
|
64
|
|
|
64
|
|
|
—
|
|
|
64
|
|
||||
Royalty on metals
|
1
|
|
|
1
|
|
|
—
|
|
|
1
|
|
||||
Net cash costs
|
705
|
|
|
707
|
|
|
33
|
|
|
740
|
|
||||
DD&A
|
147
|
|
|
143
|
|
|
4
|
|
|
147
|
|
||||
Noncash and other costs, net
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Total costs
|
852
|
|
|
850
|
|
|
37
|
|
|
887
|
|
||||
Revenue adjustments, primarily for pricing
on prior period open sales
|
(31
|
)
|
|
(31
|
)
|
|
—
|
|
|
(31
|
)
|
||||
Gross profit (loss)
|
$
|
130
|
|
|
$
|
132
|
|
|
$
|
(2
|
)
|
|
$
|
130
|
|
|
|
|
|
|
|
|
|
||||||||
Copper sales (millions of recoverable pounds)
|
378
|
|
|
378
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
||||||||
Gross profit per pound of copper:
|
|
|
|
||||||||||||
|
|
|
|
|
|
|
|
||||||||
Revenues, excluding adjustments
|
$
|
2.68
|
|
|
$
|
2.68
|
|
|
|
|
|
||||
Site production and delivery, before net noncash
|
|
|
|
|
|
|
|
||||||||
and other costs shown below
|
1.76
|
|
|
1.70
|
|
|
|
|
|
||||||
By-product credits
|
(0.06
|
)
|
|
—
|
|
|
|
|
|
||||||
Treatment charges
|
0.17
|
|
|
0.17
|
|
|
|
|
|
||||||
Royalty on metals
|
—
|
|
|
—
|
|
|
|
|
|
||||||
Unit net cash costs
|
1.87
|
|
|
1.87
|
|
|
|
|
|
||||||
DD&A
|
0.39
|
|
|
0.38
|
|
|
|
|
|
||||||
Noncash and other costs, net
|
—
|
|
|
—
|
|
|
|
|
|
||||||
Total unit costs
|
2.26
|
|
|
2.25
|
|
|
|
|
|
||||||
Revenue adjustments, primarily for pricing
|
|
|
|
|
|
|
|
||||||||
on prior period open sales
|
(0.08
|
)
|
|
(0.08
|
)
|
|
|
|
|
||||||
Gross profit per pound
|
$
|
0.34
|
|
|
$
|
0.35
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Reconciliation to Amounts Reported
|
|
|
|
|
|
|
|
||||||||
(In millions)
|
Revenues
|
|
Production and Delivery
|
|
DD&A
|
|
|
||||||||
Totals presented above
|
$
|
1,048
|
|
|
$
|
675
|
|
|
$
|
147
|
|
|
|
||
Treatment charges
|
(64
|
)
|
|
—
|
|
|
—
|
|
|
|
|||||
Royalty on metals
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
|
|||||
Noncash and other costs, net
|
—
|
|
|
—
|
|
|
—
|
|
|
|
|||||
Revenue adjustments, primarily for pricing
on prior period open sales
|
(31
|
)
|
|
—
|
|
|
—
|
|
|
|
|||||
Eliminations and other
|
(13
|
)
|
|
(15
|
)
|
|
—
|
|
|
|
|||||
South America mining
|
939
|
|
|
660
|
|
|
147
|
|
|
|
|||||
Other mining & eliminations
b
|
5,701
|
|
|
4,101
|
|
|
530
|
|
|
|
|||||
Total mining
|
6,640
|
|
|
4,761
|
|
|
677
|
|
|
|
|||||
U.S. oil & gas operations
|
1,069
|
|
|
564
|
|
|
1,015
|
|
|
|
|||||
Corporate, other & eliminations
|
—
|
|
|
5
|
|
|
7
|
|
|
|
|||||
As reported in FCX’s consolidated financial statements
|
$
|
7,709
|
|
|
$
|
5,330
|
|
|
$
|
1,699
|
|
|
|
a.
|
Includes silver sales of
759 thousand
ounces (
$14.97
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
562 thousand
ounces (
$17.42
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
558 thousand
ounces (
$15.48
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
1.1 million
ounces (
$16.56
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
993 thousand
ounces (
$15.75
per ounce average realized price).
|
b.
|
Represents the combined total for all other mining operations and the related eliminations, as presented in Note
10
.
|
(In millions)
|
Three Months Ended June 30,
|
|
|
|
||||||||
|
2016
|
|
2015
|
|
|
|
||||||
Revenues, excluding adjustments
a
|
$
|
50
|
|
|
$
|
112
|
|
|
|
|
||
Site production and delivery, before net noncash and other costs shown below
|
45
|
|
|
80
|
|
|
|
|
||||
Treatment charges and other
|
5
|
|
|
10
|
|
|
|
|
||||
Net cash costs
|
50
|
|
|
90
|
|
|
|
|
||||
DD&A
|
17
|
|
|
25
|
|
|
|
|
||||
Noncash and other costs, net
|
5
|
|
|
4
|
|
|
|
|
||||
Total costs
|
72
|
|
|
119
|
|
|
|
|
||||
Gross loss
|
$
|
(22
|
)
|
|
$
|
(7
|
)
|
|
|
|
||
|
|
|
|
|
|
|
||||||
Molybdenum sales (millions of recoverable pounds)
a
|
7
|
|
|
13
|
|
|
|
|
||||
|
|
|
|
|
|
|
||||||
Gross loss per pound of molybdenum:
|
|
|
|
|||||||||
|
|
|
|
|
|
|
||||||
Revenues, excluding adjustments
a
|
$
|
7.87
|
|
|
$
|
9.00
|
|
|
|
|
||
Site production and delivery, before net noncash and other costs shown below
|
6.95
|
|
|
6.35
|
|
|
|
|
||||
Treatment charges and other
|
0.85
|
|
|
0.84
|
|
|
|
|
||||
Unit net cash costs
|
7.80
|
|
|
7.19
|
|
|
|
|
||||
DD&A
|
2.71
|
|
|
1.97
|
|
|
|
|
||||
Noncash and other costs, net
|
0.82
|
|
|
0.37
|
|
|
|
|
||||
Total unit costs
|
11.33
|
|
|
9.53
|
|
|
|
|
||||
Gross loss per pound
|
$
|
(3.46
|
)
|
|
$
|
(0.53
|
)
|
|
|
|
||
|
|
|
|
|
|
|
||||||
Reconciliation to Amounts Reported
|
|
|
|
|
|
|
||||||
(In millions)
|
|
|
|
|
|
|
||||||
Three Months Ended June 30, 2016
|
Revenues
|
|
Production and Delivery
|
|
DD&A
|
|
||||||
Totals presented above
|
$
|
50
|
|
|
$
|
45
|
|
|
$
|
17
|
|
|
Treatment charges and other
|
(5
|
)
|
|
—
|
|
|
—
|
|
|
|||
Noncash and other costs, net
|
—
|
|
|
5
|
|
|
—
|
|
|
|||
Molybdenum mines
|
45
|
|
|
50
|
|
|
17
|
|
|
|||
Other mining & eliminations
b
|
2,879
|
|
|
2,007
|
|
|
393
|
|
|
|||
Total mining
|
2,924
|
|
|
2,057
|
|
|
410
|
|
|
|||
U.S. oil & gas operations
|
410
|
|
|
889
|
|
|
218
|
|
|
|||
Corporate, other & eliminations
|
—
|
|
|
10
|
|
|
4
|
|
|
|||
As reported in FCX’s consolidated financial statements
|
$
|
3,334
|
|
|
$
|
2,956
|
|
|
$
|
632
|
|
|
|
|
|
|
|
|
|
||||||
Three Months Ended June 30, 2015
|
|
|
|
|
|
|
||||||
Totals presented above
|
$
|
112
|
|
|
$
|
80
|
|
|
$
|
25
|
|
|
Treatment charges and other
|
(10
|
)
|
|
—
|
|
|
—
|
|
|
|||
Noncash and other costs, net
|
—
|
|
|
4
|
|
|
—
|
|
|
|||
Molybdenum mines
|
102
|
|
|
84
|
|
|
25
|
|
|
|||
Other mining & eliminations
b
|
3,267
|
|
|
2,284
|
|
|
320
|
|
|
|||
Total mining
|
3,369
|
|
|
2,368
|
|
|
345
|
|
|
|||
U.S. oil & gas operations
|
569
|
|
|
281
|
|
|
485
|
|
|
|||
Corporate, other & eliminations
|
—
|
|
|
2
|
|
|
3
|
|
|
|||
As reported in FCX’s consolidated financial statements
|
$
|
3,938
|
|
|
$
|
2,651
|
|
|
$
|
833
|
|
|
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.
|
|
|
|
|
|
|
|
||||||
(In millions)
|
Six Months Ended June 30,
|
|
|
|
||||||||
|
2016
|
|
2015
|
|
|
|
||||||
Revenues, excluding adjustments
a
|
$
|
102
|
|
|
$
|
236
|
|
|
|
|
||
|
|
|
|
|
|
|
||||||
Site production and delivery, before net noncash
and other costs shown below
|
92
|
|
|
161
|
|
|
|
|
||||
Treatment charges and other
|
12
|
|
|
21
|
|
|
|
|
||||
Net cash costs
|
104
|
|
|
182
|
|
|
|
|
||||
DD&A
|
36
|
|
|
51
|
|
|
|
|
||||
Noncash and other costs, net
|
10
|
|
|
6
|
|
|
|
|
||||
Total costs
|
150
|
|
|
239
|
|
|
|
|
||||
Gross loss
|
$
|
(48
|
)
|
|
$
|
(3
|
)
|
|
|
|
||
|
|
|
|
|
|
|
||||||
Molybdenum sales (millions of recoverable pounds)
a
|
14
|
|
|
26
|
|
|
|
|
||||
|
|
|
|
|
|
|
||||||
Gross loss per pound of molybdenum:
|
|
|
|
|||||||||
|
|
|
|
|
|
|
||||||
Revenues, excluding adjustments
a
|
$
|
7.47
|
|
|
$
|
9.34
|
|
|
|
|
||
|
|
|
|
|
|
|
||||||
Site production and delivery, before net noncash
and other costs shown below
|
6.76
|
|
|
6.34
|
|
|
|
|
||||
Treatment charges and other
|
0.85
|
|
|
0.84
|
|
|
|
|
||||
Unit net cash costs
|
7.61
|
|
|
7.18
|
|
|
|
|
||||
DD&A
|
2.66
|
|
|
2.00
|
|
|
|
|
||||
Noncash and other costs, net
|
0.69
|
|
|
0.25
|
|
|
|
|
||||
Total unit costs
|
10.96
|
|
|
9.43
|
|
|
|
|
||||
Gross loss per pound
|
$
|
(3.49
|
)
|
|
$
|
(0.09
|
)
|
|
|
|
||
|
|
|
|
|
|
|
||||||
Reconciliation to Amounts Reported
|
|
|
|
|
|
|
||||||
(In millions)
|
|
|
|
|
|
|
||||||
Six Months Ended June 30, 2016
|
Revenues
|
|
Production and Delivery
|
|
DD&A
|
|
||||||
Totals presented above
|
$
|
102
|
|
|
$
|
92
|
|
|
$
|
36
|
|
|
Treatment charges and other
|
(12
|
)
|
|
—
|
|
|
—
|
|
|
|||
Noncash and other costs, net
|
—
|
|
|
10
|
|
|
—
|
|
|
|||
Molybdenum mines
|
90
|
|
|
102
|
|
|
36
|
|
|
|||
Other mining & eliminations
b
|
5,781
|
|
|
4,044
|
|
|
778
|
|
|
|||
Total mining
|
5,871
|
|
|
4,146
|
|
|
814
|
|
|
|||
U.S. oil & gas operations
|
705
|
|
|
1,296
|
|
|
473
|
|
|
|||
Corporate, other & eliminations
|
—
|
|
|
13
|
|
|
7
|
|
|
|||
As reported in FCX’s consolidated financial statements
|
$
|
6,576
|
|
|
$
|
5,455
|
|
|
$
|
1,294
|
|
|
|
|
|
|
|
|
|
||||||
Six Months Ended June 30, 2015
|
|
|
|
|
|
|
||||||
Totals presented above
|
$
|
236
|
|
|
$
|
161
|
|
|
$
|
51
|
|
|
Treatment charges and other
|
(21
|
)
|
|
—
|
|
|
—
|
|
|
|||
Noncash and other costs,net
|
—
|
|
|
6
|
|
|
—
|
|
|
|||
Molybdenum mines
|
215
|
|
|
167
|
|
|
51
|
|
|
|||
Other mining & eliminations
b
|
6,425
|
|
|
4,594
|
|
|
626
|
|
|
|||
Total mining
|
6,640
|
|
|
4,761
|
|
|
677
|
|
|
|||
U.S. oil & gas operations
|
1,069
|
|
|
564
|
|
|
1,015
|
|
|
|||
Corporate, other & eliminations
|
—
|
|
|
5
|
|
|
7
|
|
|
|||
As reported in FCX’s consolidated financial statements
|
$
|
7,709
|
|
|
$
|
5,330
|
|
|
$
|
1,699
|
|
|
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, 2016
|
|
|
|
|
|
|
|
|
||||||||
(In millions)
|
Oil
|
|
Natural Gas
|
|
NGLs
|
|
Total
|
|
||||||||
Oil and gas revenues
|
$
|
356
|
|
|
$
|
39
|
|
|
$
|
10
|
|
|
$
|
405
|
|
|
Cash production costs
|
|
|
|
|
|
|
(186
|
)
|
|
|||||||
Cash operating margin
|
|
|
|
|
|
|
219
|
|
|
|||||||
DD&A
|
|
|
|
|
|
|
(218
|
)
|
|
|||||||
Impairment of oil and gas properties
|
|
|
|
|
|
|
(290
|
)
|
|
|||||||
Accretion and other costs
|
|
|
|
|
|
|
(703
|
)
|
a
|
|||||||
Other revenue
|
|
|
|
|
|
|
5
|
|
|
|||||||
Gross loss
|
|
|
|
|
|
|
$
|
(987
|
)
|
|
||||||
|
|
|
|
|
|
|
|
|
||||||||
Oil (MMBbls)
|
8.7
|
|
|
|
|
|
|
|
|
|||||||
Gas (Bcf)
|
|
|
18.8
|
|
|
|
|
|
|
|||||||
NGLs (MMBbls)
|
|
|
|
|
0.6
|
|
|
|
|
|||||||
Oil Equivalents (MMBOE)
|
|
|
|
|
|
|
12.4
|
|
|
|||||||
|
|
|
|
|
|
|
|
|
||||||||
|
Oil
(per barrel) |
|
Natural Gas
(per MMBtu) |
|
NGLs
(per barrel) |
|
Per BOE
|
|
||||||||
Oil and gas revenues
|
$
|
41.10
|
|
|
$
|
2.04
|
|
|
$
|
18.00
|
|
|
$
|
32.70
|
|
|
Cash production costs
|
|
|
|
|
|
|
(15.00
|
)
|
|
|||||||
Cash operating margin
|
|
|
|
|
|
|
17.70
|
|
|
|||||||
DD&A
|
|
|
|
|
|
|
(17.61
|
)
|
|
|||||||
Impairment of oil and gas properties
|
|
|
|
|
|
|
(23.46
|
)
|
|
|||||||
Accretion and other costs
|
|
|
|
|
|
|
(56.76
|
)
|
a
|
|||||||
Other revenue
|
|
|
|
|
|
|
0.42
|
|
|
|||||||
Gross loss
|
|
|
|
|
|
|
$
|
(79.71
|
)
|
|
||||||
|
|
|
|
|
|
|
|
|
||||||||
Reconciliation to Amounts Reported
|
||||||||||||||||
(In millions)
|
Revenues
|
|
Production and Delivery
|
|
DD&A
|
|
Impairment of
Oil and Gas Properties
|
|
||||||||
Totals presented above
|
$
|
405
|
|
|
$
|
186
|
|
|
$
|
218
|
|
|
$
|
290
|
|
|
Accretion and other costs
|
—
|
|
|
703
|
|
|
—
|
|
|
—
|
|
|
||||
Other revenue
|
5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
||||
U.S. oil & gas operations
|
410
|
|
|
889
|
|
|
218
|
|
|
290
|
|
|
||||
Total mining
b
|
2,924
|
|
|
2,057
|
|
|
410
|
|
|
—
|
|
|
||||
Corporate, other & eliminations
|
—
|
|
|
10
|
|
|
4
|
|
|
1
|
|
|
||||
As reported in FCX's consolidated financial statements
|
$
|
3,334
|
|
|
$
|
2,956
|
|
|
$
|
632
|
|
|
$
|
291
|
|
|
a.
|
Includes charges of
$692 million
(
$55.91
per BOE) primarily for the termination and settlement of drillship contracts and inventory write downs.
|
b.
|
Represents the combined total for mining operations and the related eliminations, as presented in Note
10
.
|
|
|
|
|
|
||||||||||||
Three Months Ended June 30, 2015
|
|
|
|
|
|
|
|
|
||||||||
(In millions)
|
Oil
|
|
Natural Gas
|
|
NGLs
|
|
Total
|
|
||||||||
Oil and gas revenues before derivatives
|
$
|
480
|
|
|
$
|
63
|
|
|
$
|
12
|
|
|
$
|
555
|
|
|
Cash gains on derivative contracts
|
101
|
|
|
—
|
|
|
—
|
|
|
101
|
|
|
||||
Realized revenues
|
$
|
581
|
|
|
$
|
63
|
|
|
$
|
12
|
|
|
656
|
|
|
|
Cash production costs
|
|
|
|
|
|
|
(249
|
)
|
|
|||||||
Cash operating margin
|
|
|
|
|
|
|
407
|
|
|
|||||||
DD&A
|
|
|
|
|
|
|
(485
|
)
|
|
|||||||
Impairment of oil and gas properties
|
|
|
|
|
|
|
(2,686
|
)
|
|
|||||||
Accretion and other costs
|
|
|
|
|
|
|
(32
|
)
|
a
|
|||||||
Net noncash mark-to-market losses on derivative contracts
|
|
|
|
|
|
|
(95
|
)
|
|
|||||||
Other revenue
|
|
|
|
|
|
|
8
|
|
|
|||||||
Gross loss
|
|
|
|
|
|
|
$
|
(2,883
|
)
|
|
||||||
|
|
|
|
|
|
|
|
|
||||||||
Oil (MMBbls)
|
8.6
|
|
|
|
|
|
|
|
|
|||||||
Gas (Bcf)
|
|
|
23.5
|
|
|
|
|
|
|
|||||||
NGLs (MMBbls)
|
|
|
|
|
0.6
|
|
|
|
|
|||||||
Oil Equivalents (MMBOE)
|
|
|
|
|
|
|
13.1
|
|
|
|||||||
|
|
|
|
|
|
|
|
|
||||||||
|
Oil
|
|
Natural Gas
|
|
NGLs
|
|
|
|
||||||||
|
(per barrel)
|
|
(per MMBtu)
|
|
(per barrel)
|
|
Per BOE
|
|
||||||||
Oil and gas revenues before derivatives
|
$
|
55.82
|
|
|
$
|
2.66
|
|
|
$
|
20.50
|
|
|
$
|
42.31
|
|
|
Cash gains on derivative contracts
|
11.79
|
|
|
—
|
|
|
—
|
|
|
7.73
|
|
|
||||
Realized revenues
|
$
|
67.61
|
|
|
$
|
2.66
|
|
|
$
|
20.50
|
|
|
50.04
|
|
|
|
Cash production costs
|
|
|
|
|
|
|
(19.04
|
)
|
|
|||||||
Cash operating margin
|
|
|
|
|
|
|
31.00
|
|
|
|||||||
DD&A
|
|
|
|
|
|
|
(36.99
|
)
|
|
|||||||
Impairment of oil and gas properties
|
|
|
|
|
|
|
(204.91
|
)
|
|
|||||||
Accretion and other costs
|
|
|
|
|
|
|
(2.46
|
)
|
a
|
|||||||
Net noncash mark-to-market losses on derivative contracts
|
|
|
|
|
|
|
(7.26
|
)
|
|
|||||||
Other revenue
|
|
|
|
|
|
|
0.61
|
|
|
|||||||
Gross loss
|
|
|
|
|
|
|
$
|
(220.01
|
)
|
|
||||||
|
|
|
|
|
|
|
|
|
||||||||
Reconciliation to Amounts Reported
|
|
|||||||||||||||
(In millions)
|
Revenues
|
|
Production and Delivery
|
|
DD&A
|
|
Impairment of
Oil and Gas Properties
|
|
||||||||
Totals presented above
|
$
|
555
|
|
|
$
|
249
|
|
|
$
|
485
|
|
|
$
|
2,686
|
|
|
Cash gains on derivative contracts
|
101
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
||||
Net noncash mark-to-market losses on derivative contracts
|
(95
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
||||
Accretion and other costs
|
—
|
|
|
32
|
|
|
—
|
|
|
—
|
|
|
||||
Other revenue
|
8
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
||||
U.S. oil & gas operations
|
569
|
|
|
281
|
|
|
485
|
|
|
2,686
|
|
|
||||
Total mining
b
|
3,369
|
|
|
2,368
|
|
|
345
|
|
|
—
|
|
|
||||
Corporate, other & eliminations
|
—
|
|
|
2
|
|
|
3
|
|
|
—
|
|
|
||||
As reported in FCX's consolidated financial statements
|
$
|
3,938
|
|
|
$
|
2,651
|
|
|
$
|
833
|
|
|
$
|
2,686
|
|
|
|
|
|
|
|
|
|
|
|
a.
|
Includes charges of
$22 million
(
$1.72
per BOE) primarily for idle rig costs and inventory write downs.
|
b.
|
Represents the combined total for mining operations and the related eliminations, as presented in Note
10
.
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
||||||||||
Six Months Ended June 30, 2016
|
|
|
|
|
|
|
||||||||||
(In millions)
|
Oil
|
|
Natural Gas
|
|
NGLs
|
|
Total
|
|
||||||||
Oil and gas revenues
|
$
|
597
|
|
|
$
|
78
|
|
|
$
|
19
|
|
|
$
|
694
|
|
|
Cash production costs
|
|
|
|
|
|
|
(378
|
)
|
|
|||||||
Cash operating margin
|
|
|
|
|
|
|
316
|
|
|
|||||||
DD&A
|
|
|
|
|
|
|
(473
|
)
|
|
|||||||
Impairment of oil and gas properties
|
|
|
|
|
|
|
(4,061
|
)
|
|
|||||||
Accretion and other costs
|
|
|
|
|
|
|
(918
|
)
|
a
|
|||||||
Other revenue
|
|
|
|
|
|
|
11
|
|
|
|||||||
Gross loss
|
|
|
|
|
|
|
$
|
(5,125
|
)
|
|
||||||
|
|
|
|
|
|
|
|
|
||||||||
Oil (MMBbls)
|
17.0
|
|
|
|
|
|
|
|
|
|||||||
Gas (Bcf)
|
|
|
38.4
|
|
|
|
|
|
|
|||||||
NGLs (MMBbls)
|
|
|
|
|
1.2
|
|
|
|
|
|||||||
Oil Equivalents (MMBOE)
|
|
|
|
|
|
|
24.5
|
|
|
|||||||
|
|
|
|
|
|
|
|
|
||||||||
|
Oil
(per barrel) |
|
Natural Gas
(per MMBtu) |
|
NGLs
(per barrel) |
|
Per BOE
|
|
||||||||
Oil and gas revenues
|
$
|
35.21
|
|
|
$
|
2.02
|
|
|
$
|
16.44
|
|
|
$
|
28.29
|
|
|
Cash production costs
|
|
|
|
|
|
|
(15.42
|
)
|
|
|||||||
Cash operating margin
|
|
|
|
|
|
|
12.87
|
|
|
|||||||
DD&A
|
|
|
|
|
|
|
(19.27
|
)
|
|
|||||||
Impairment of oil and gas properties
|
|
|
|
|
|
|
(165.56
|
)
|
|
|||||||
Accretion and other costs
|
|
|
|
|
|
|
(37.41
|
)
|
a
|
|||||||
Other revenue
|
|
|
|
|
|
|
0.45
|
|
|
|||||||
Gross loss
|
|
|
|
|
|
|
$
|
(208.92
|
)
|
|
||||||
|
|
|
|
|
|
|
|
|
||||||||
Reconciliation to Amounts Reported
|
||||||||||||||||
(In millions)
|
Revenues
|
|
Production and Delivery
|
|
DD&A
|
|
Impairment of
Oil and Gas Properties
|
|
||||||||
Totals presented above
|
$
|
694
|
|
|
$
|
378
|
|
|
$
|
473
|
|
|
$
|
4,061
|
|
|
Accretion and other costs
|
—
|
|
|
918
|
|
|
—
|
|
|
—
|
|
|
||||
Other revenue
|
11
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
||||
U.S. oil & gas operations
|
705
|
|
|
1,296
|
|
|
473
|
|
|
4,061
|
|
|
||||
Total mining
b
|
5,871
|
|
|
4,146
|
|
|
814
|
|
|
—
|
|
|
||||
Corporate, other & eliminations
|
—
|
|
|
13
|
|
|
7
|
|
|
17
|
|
|
||||
As reported in FCX's consolidated financial statements
|
$
|
6,576
|
|
|
$
|
5,455
|
|
|
$
|
1,294
|
|
|
$
|
4,078
|
|
|
a.
|
Includes charges of
$892 million
(
$36.36
per BOE) primarily for the termination and settlement of drillship contracts and inventory write downs.
|
b.
|
Represents the combined total for mining operations and the related eliminations, as presented in Note
10
.
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
Six Months Ended June 30, 2015
|
|
|
|
|
|
|
|
|
||||||||
(In millions)
|
Oil
|
|
Natural Gas
|
|
NGLs
|
|
Total
|
|
||||||||
Oil and gas revenues before derivatives
|
$
|
853
|
|
|
$
|
125
|
|
|
$
|
24
|
|
|
$
|
1,002
|
|
|
Cash gains on derivative contracts
|
201
|
|
|
—
|
|
|
—
|
|
|
201
|
|
|
||||
Realized revenues
|
$
|
1,054
|
|
|
$
|
125
|
|
|
$
|
24
|
|
|
1,203
|
|
|
|
Cash production costs
|
|
|
|
|
|
|
(503
|
)
|
|
|||||||
Cash operating margin
|
|
|
|
|
|
|
700
|
|
|
|||||||
DD&A
|
|
|
|
|
|
|
(1,015
|
)
|
|
|||||||
Impairment of oil and gas properties
|
|
|
|
|
|
|
(5,790
|
)
|
|
|||||||
Accretion and other costs
|
|
|
|
|
|
|
(61
|
)
|
a
|
|||||||
Net noncash mark-to-market losses on derivative contracts
|
|
|
|
|
|
|
(143
|
)
|
|
|||||||
Other revenue
|
|
|
|
|
|
|
9
|
|
|
|||||||
Gross loss
|
|
|
|
|
|
|
$
|
(6,300
|
)
|
|
||||||
|
|
|
|
|
|
|
|
|
||||||||
Oil (MMBbls)
|
17.0
|
|
|
|
|
|
|
|
|
|||||||
Gas (Bcf)
|
|
|
45.3
|
|
|
|
|
|
|
|||||||
NGLs (MMBbls)
|
|
|
|
|
1.1
|
|
|
|
|
|||||||
Oil Equivalents (MMBOE)
|
|
|
|
|
|
|
25.6
|
|
|
|||||||
|
|
|
|
|
|
|
|
|
||||||||
|
Oil
(per barrel) |
|
Natural Gas
(per MMBtu) |
|
NGLs
(per barrel) |
|
Per BOE
|
|
||||||||
Oil and gas revenues before derivatives
|
$
|
50.25
|
|
|
$
|
2.75
|
|
|
$
|
21.71
|
|
|
$
|
39.08
|
|
|
Cash gains on derivative contracts
|
11.88
|
|
|
—
|
|
|
—
|
|
|
7.87
|
|
|
||||
Realized revenues
|
$
|
62.13
|
|
|
$
|
2.75
|
|
|
$
|
21.71
|
|
|
46.95
|
|
|
|
Cash production costs
|
|
|
|
|
|
|
(19.62
|
)
|
|
|||||||
Cash operating margin
|
|
|
|
|
|
|
27.33
|
|
|
|||||||
DD&A
|
|
|
|
|
|
|
(39.59
|
)
|
|
|||||||
Impairment of oil and gas properties
|
|
|
|
|
|
|
(225.89
|
)
|
|
|||||||
Accretion and other costs
|
|
|
|
|
|
|
(2.39
|
)
|
a
|
|||||||
Net noncash mark-to-market losses on derivative contracts
|
|
|
|
|
|
|
(5.60
|
)
|
|
|||||||
Other revenue
|
|
|
|
|
|
|
0.34
|
|
|
|||||||
Gross loss
|
|
|
|
|
|
|
$
|
(245.80
|
)
|
|
||||||
|
|
|
|
|
|
|
|
|
||||||||
Reconciliation to Amounts Reported
|
||||||||||||||||
(In millions)
|
Revenues
|
|
Production and Delivery
|
|
DD&A
|
|
Impairment of
Oil and Gas Properties
|
|
||||||||
Totals presented above
|
$
|
1,002
|
|
|
$
|
503
|
|
|
$
|
1,015
|
|
|
$
|
5,790
|
|
|
Cash gains on derivative contracts
|
201
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
||||
Net noncash mark-to-market losses on derivative contracts
|
(143
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
||||
Accretion and other costs
|
—
|
|
|
61
|
|
|
—
|
|
|
—
|
|
|
||||
Other revenue
|
9
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
||||
U.S. oil & gas operations
|
1,069
|
|
|
564
|
|
|
1,015
|
|
|
5,790
|
|
|
||||
Total mining
b
|
6,640
|
|
|
4,761
|
|
|
677
|
|
|
—
|
|
|
||||
Corporate, other & eliminations
|
—
|
|
|
5
|
|
|
7
|
|
|
—
|
|
|
||||
As reported in FCX's consolidated financial statements
|
$
|
7,709
|
|
|
$
|
5,330
|
|
|
$
|
1,699
|
|
|
$
|
5,790
|
|
|
a.
|
Includes charges of
$39 million
(
$1.54
per BOE) primarily for idle rig costs and inventory write downs.
|
b.
|
Represents the combined total for mining operations and the related eliminations, as presented in Note
10
.
|
|
|
|
|
|
|
Three Months Ended June 30, 2016
|
|
|
|
|
|
|
|
||||||||
(In millions)
|
By-Product
|
|
Co-Product Method
|
||||||||||||
|
Method
|
|
Copper
|
|
Cobalt
|
|
Total
|
||||||||
Revenues, excluding adjustments
a
|
$
|
258
|
|
|
$
|
258
|
|
|
$
|
61
|
|
|
$
|
319
|
|
Site production and delivery, before net noncash
and other costs shown below
|
201
|
|
|
177
|
|
|
46
|
|
|
223
|
|
||||
Cobalt credits
b
|
(40
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Royalty on metals
|
6
|
|
|
5
|
|
|
1
|
|
|
6
|
|
||||
Net cash costs
|
167
|
|
|
182
|
|
|
47
|
|
|
229
|
|
||||
DD&A
|
62
|
|
|
52
|
|
|
10
|
|
|
62
|
|
||||
Noncash and other costs, net
|
11
|
|
|
9
|
|
|
2
|
|
|
11
|
|
||||
Total costs
|
240
|
|
|
243
|
|
|
59
|
|
|
302
|
|
||||
Revenue adjustments, primarily for pricing
on prior period open sales
|
(1
|
)
|
|
(1
|
)
|
|
1
|
|
|
—
|
|
||||
Gross profit
|
$
|
17
|
|
|
$
|
14
|
|
|
$
|
3
|
|
|
$
|
17
|
|
|
|
|
|
|
|
|
|
||||||||
Copper sales (millions of recoverable pounds)
|
124
|
|
|
124
|
|
|
|
|
|
||||||
Cobalt sales (millions of contained pounds)
|
|
|
|
|
10
|
|
|
|
|||||||
|
|
|
|
|
|
|
|
||||||||
Gross profit per pound of copper/cobalt:
|
|
|
|
||||||||||||
|
|
|
|
|
|
|
|
||||||||
Revenues, excluding adjustments
a
|
$
|
2.07
|
|
|
$
|
2.07
|
|
|
$
|
6.58
|
|
|
|
||
Site production and delivery, before net noncash
and other costs shown below
|
1.62
|
|
|
1.42
|
|
|
5.03
|
|
|
|
|||||
Cobalt credits
b
|
(0.33
|
)
|
|
—
|
|
|
—
|
|
|
|
|||||
Royalty on metals
|
0.05
|
|
|
0.04
|
|
|
0.11
|
|
|
|
|||||
Unit net cash costs
|
1.34
|
|
|
1.46
|
|
|
5.14
|
|
|
|
|||||
DD&A
|
0.49
|
|
|
0.41
|
|
|
1.07
|
|
|
|
|||||
Noncash and other costs, net
|
0.09
|
|
|
0.08
|
|
|
0.20
|
|
|
|
|||||
Total unit costs
|
1.92
|
|
|
1.95
|
|
|
6.41
|
|
|
|
|||||
Revenue adjustments, primarily for pricing
on prior period open sales
|
(0.01
|
)
|
|
(0.01
|
)
|
|
0.17
|
|
|
|
|||||
Gross profit per pound
|
$
|
0.14
|
|
|
$
|
0.11
|
|
|
$
|
0.34
|
|
|
|
||
|
|
|
|
|
|
|
|
||||||||
Reconciliation to Amounts Reported
|
|
|
|
|
|
|
|
||||||||
(In millions)
|
Revenues
|
|
Production and Delivery
|
|
DD&A
|
|
|
||||||||
Totals presented above
|
$
|
319
|
|
|
$
|
223
|
|
|
$
|
62
|
|
|
|
||
Royalty on metals
|
(6
|
)
|
|
—
|
|
|
—
|
|
|
|
|||||
Noncash and other costs, net
|
—
|
|
|
11
|
|
|
—
|
|
|
|
|||||
Revenue adjustments, primarily for pricing
on prior period open sales
|
—
|
|
|
—
|
|
|
—
|
|
|
|
|||||
Eliminations and other adjustments
c
|
(41
|
)
|
|
22
|
|
|
(42
|
)
|
|
|
|||||
Total
|
$
|
272
|
|
d
|
$
|
256
|
|
d
|
$
|
20
|
|
d
|
|
a.
|
Includes point-of-sale transportation costs as negotiated in customer contracts.
|
b.
|
Net of cobalt downstream processing and freight costs.
|
c.
|
Reflects adjustments associated with reporting Tenke as discontinued operations/assets held for sale, including the elimination of intercompany sales to our consolidated subsidiaries and the impact of discontinuing DD&A.
|
d.
|
Refer to Note 2 for a reconciliation of these amounts to net income from discontinued operations as reported in FCX's consolidated financial statements.
|
|
|
|
Three Months Ended June 30, 2015
|
|
|
|
|
|
|
|
||||||||
(In millions)
|
By-Product
|
|
Co-Product Method
|
||||||||||||
|
Method
|
|
Copper
|
|
Cobalt
|
|
Total
|
||||||||
Revenues, excluding adjustments
a
|
$
|
275
|
|
|
$
|
275
|
|
|
$
|
76
|
|
|
$
|
351
|
|
Site production and delivery, before net noncash
and other costs shown below
|
161
|
|
|
141
|
|
|
45
|
|
|
186
|
|
||||
Cobalt credits
b
|
(55
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Royalty on metals
|
6
|
|
|
5
|
|
|
1
|
|
|
6
|
|
||||
Net cash costs
|
112
|
|
|
146
|
|
|
46
|
|
|
192
|
|
||||
DD&A
|
57
|
|
|
45
|
|
|
12
|
|
|
57
|
|
||||
Noncash and other costs, net
|
4
|
|
|
3
|
|
|
1
|
|
|
4
|
|
||||
Total costs
|
173
|
|
|
194
|
|
|
59
|
|
|
253
|
|
||||
Revenue adjustments, primarily for pricing
on prior period open sales
|
2
|
|
|
2
|
|
|
4
|
|
|
6
|
|
||||
Gross profit
|
$
|
104
|
|
|
$
|
83
|
|
|
$
|
21
|
|
|
$
|
104
|
|
|
|
|
|
|
|
|
|
||||||||
Copper sales (millions of recoverable pounds)
|
104
|
|
|
104
|
|
|
|
|
|
||||||
Cobalt sales (millions of contained pounds)
|
|
|
|
|
8
|
|
|
|
|||||||
|
|
|
|
|
|
|
|
||||||||
Gross profit per pound of copper/cobalt:
|
|
|
|
||||||||||||
|
|
|
|
|
|
|
|
||||||||
Revenues, excluding adjustments
a
|
$
|
2.63
|
|
|
$
|
2.63
|
|
|
$
|
9.27
|
|
|
|
||
Site production and delivery, before net noncash
and other costs shown below
|
1.54
|
|
|
1.35
|
|
|
5.48
|
|
|
|
|||||
Cobalt credits
b
|
(0.53
|
)
|
|
—
|
|
|
—
|
|
|
|
|||||
Royalty on metals
|
0.06
|
|
|
0.05
|
|
|
0.16
|
|
|
|
|||||
Unit net cash costs
|
1.07
|
|
|
1.40
|
|
|
5.64
|
|
|
|
|||||
DD&A
|
0.55
|
|
|
0.43
|
|
|
1.42
|
|
|
|
|||||
Noncash and other costs, net
|
0.03
|
|
|
0.03
|
|
|
0.10
|
|
|
|
|||||
Total unit costs
|
1.65
|
|
|
1.86
|
|
|
7.16
|
|
|
|
|||||
Revenue adjustments, primarily for pricing
on prior period open sales
|
0.02
|
|
|
0.02
|
|
|
0.50
|
|
|
|
|||||
Gross profit per pound
|
$
|
1.00
|
|
|
$
|
0.79
|
|
|
$
|
2.61
|
|
|
|
||
|
|
|
|
|
|
|
|
||||||||
Reconciliation to Amounts Reported
|
|
|
|
|
|
|
|
||||||||
(In millions)
|
Revenues
|
|
Production and Delivery
|
|
DD&A
|
|
|
||||||||
Totals presented above
|
$
|
351
|
|
|
$
|
186
|
|
|
$
|
57
|
|
|
|
||
Royalty on metals
|
(6
|
)
|
|
—
|
|
|
—
|
|
|
|
|||||
Noncash and other costs, net
|
—
|
|
|
4
|
|
|
—
|
|
|
|
|||||
Revenue adjustments, primarily for pricing
on prior period open sales
|
6
|
|
|
—
|
|
|
—
|
|
|
|
|||||
Eliminations and other adjustments
c
|
(41
|
)
|
|
7
|
|
|
—
|
|
|
|
|||||
Total
|
$
|
310
|
|
d
|
$
|
197
|
|
d
|
$
|
57
|
|
d
|
|
a.
|
Includes point-of-sale transportation costs as negotiated in customer contracts.
|
b.
|
Net of cobalt downstream processing and freight costs.
|
c.
|
Reflects adjustments associated with reporting Tenke as discontinued operations/assets held for sale, including the elimination of intercompany sales to our consolidated subsidiaries.
|
d.
|
Refer to Note 2 for a reconciliation of these amounts to net income from discontinued operations as reported in FCX's consolidated financial statements.
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Six Months Ended June 30, 2016
|
|
|
|
|
|
|
|
||||||||
(In millions)
|
By-Product
|
|
Co-Product Method
|
||||||||||||
|
Method
|
|
Copper
|
|
Cobalt
|
|
Total
|
||||||||
Revenues, excluding adjustments
a
|
$
|
514
|
|
|
$
|
514
|
|
|
$
|
128
|
|
|
$
|
642
|
|
Site production and delivery, before net noncash
and other costs shown below
|
403
|
|
|
350
|
|
|
98
|
|
|
448
|
|
||||
Cobalt credits
b
|
(87
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Royalty on metals
|
11
|
|
|
9
|
|
|
2
|
|
|
11
|
|
||||
Net cash costs
|
327
|
|
|
359
|
|
|
100
|
|
|
459
|
|
||||
DD&A
|
122
|
|
|
101
|
|
|
21
|
|
|
122
|
|
||||
Noncash and other costs, net
|
13
|
|
|
11
|
|
|
2
|
|
|
13
|
|
||||
Total costs
|
462
|
|
|
471
|
|
|
123
|
|
|
594
|
|
||||
Revenue adjustments, primarily for pricing
on prior period open sales
|
(4
|
)
|
|
(4
|
)
|
|
4
|
|
|
—
|
|
||||
Gross profit
|
$
|
48
|
|
|
$
|
39
|
|
|
$
|
9
|
|
|
$
|
48
|
|
|
|
|
|
|
|
|
|
||||||||
Copper sales (millions of recoverable pounds)
|
247
|
|
|
247
|
|
|
|
|
|
||||||
Cobalt sales (millions of contained pounds)
|
|
|
|
|
20
|
|
|
|
|||||||
|
|
|
|
|
|
|
|
||||||||
Gross profit per pound of copper/cobalt:
|
|
|
|
||||||||||||
|
|
|
|
|
|
|
|
||||||||
Revenues, excluding adjustments
a
|
$
|
2.08
|
|
|
$
|
2.08
|
|
|
$
|
6.52
|
|
|
|
||
Site production and delivery, before net noncash
|
|
|
|
|
|
|
|
||||||||
and other costs shown below
|
1.63
|
|
|
1.42
|
|
|
4.99
|
|
|
|
|||||
Cobalt credits
b
|
(0.35
|
)
|
|
—
|
|
|
—
|
|
|
|
|||||
Royalty on metals
|
0.05
|
|
|
0.03
|
|
|
0.11
|
|
|
|
|||||
Unit net cash costs
|
1.33
|
|
|
1.45
|
|
|
5.10
|
|
|
|
|||||
DD&A
|
0.49
|
|
|
0.41
|
|
|
1.05
|
|
|
|
|||||
Noncash and other costs, net
|
0.05
|
|
|
0.04
|
|
|
0.11
|
|
|
|
|||||
Total unit costs
|
1.87
|
|
|
1.90
|
|
|
6.26
|
|
|
|
|||||
Revenue adjustments, primarily for pricing
|
|
|
|
|
|
|
|
||||||||
on prior period open sales
|
(0.02
|
)
|
|
(0.02
|
)
|
|
0.19
|
|
|
|
|||||
Gross profit per pound
|
$
|
0.19
|
|
|
$
|
0.16
|
|
|
$
|
0.45
|
|
|
|
||
|
|
|
|
|
|
|
|
||||||||
Reconciliation to Amounts Reported
|
|
|
|
|
|
|
|
||||||||
(In millions)
|
Revenues
|
|
Production and Delivery
|
|
DD&A
|
|
|
||||||||
Totals presented above
|
$
|
642
|
|
|
$
|
448
|
|
|
$
|
122
|
|
|
|
||
Royalty on metals
|
(11
|
)
|
|
—
|
|
|
—
|
|
|
|
|||||
Noncash and other costs, net
|
—
|
|
|
13
|
|
|
—
|
|
|
|
|||||
Revenue adjustments, primarily for pricing
on prior period open sales
|
—
|
|
|
—
|
|
|
—
|
|
|
|
|||||
Eliminations and other adjustments
c
|
(73
|
)
|
|
21
|
|
|
(42
|
)
|
|
|
|||||
Total
|
$
|
558
|
|
d
|
$
|
482
|
|
d
|
$
|
80
|
|
d
|
|
a.
|
Includes point-of-sale transportation costs as negotiated in customer contracts.
|
b.
|
Net of cobalt downstream processing and freight costs.
|
c.
|
Reflects adjustments associated with reporting Tenke as discontinued operations/assets held for sale, including the elimination of intercompany sales to our consolidated subsidiaries and the impact of discontinuing DD&A.
|
d.
|
Refer to Note 2 for a reconciliation of these amounts to net income from discontinued operations as reported in FCX's consolidated financial statements.
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Six Months Ended June 30, 2015
|
|
|
|
|
|
|
|
||||||||
(In millions)
|
By-Product
|
|
Co-Product Method
|
||||||||||||
|
Method
|
|
Copper
|
|
Cobalt
|
|
Total
|
||||||||
Revenues, excluding adjustments
a
|
$
|
631
|
|
|
$
|
631
|
|
|
$
|
152
|
|
|
$
|
783
|
|
Site production and delivery, before net noncash
and other costs shown below
|
370
|
|
|
325
|
|
|
92
|
|
|
417
|
|
||||
Cobalt credits
b
|
(104
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Royalty on metals
|
14
|
|
|
12
|
|
|
2
|
|
|
14
|
|
||||
Net cash costs
|
280
|
|
|
337
|
|
|
94
|
|
|
431
|
|
||||
DD&A
|
130
|
|
|
109
|
|
|
21
|
|
|
130
|
|
||||
Noncash and other costs, net
|
8
|
|
|
6
|
|
|
2
|
|
|
8
|
|
||||
Total costs
|
418
|
|
|
452
|
|
|
117
|
|
|
569
|
|
||||
Revenue adjustments, primarily for pricing
on prior period open sales
|
(7
|
)
|
|
(7
|
)
|
|
(1
|
)
|
|
(8
|
)
|
||||
Gross profit
|
$
|
206
|
|
|
$
|
172
|
|
|
$
|
34
|
|
|
$
|
206
|
|
|
|
|
|
|
|
|
|
||||||||
Copper sales (millions of recoverable pounds)
|
237
|
|
|
237
|
|
|
|
|
|
||||||
Cobalt sales (millions of contained pounds)
|
|
|
|
|
16
|
|
|
|
|||||||
|
|
|
|
|
|
|
|
||||||||
Gross profit per pound of copper/cobalt:
|
|
|
|
||||||||||||
|
|
|
|
|
|
|
|
||||||||
Revenues, excluding adjustments
a
|
$
|
2.66
|
|
|
$
|
2.66
|
|
|
$
|
9.23
|
|
|
|
||
Site production and delivery, before net noncash
|
|
|
|
|
|
|
|
||||||||
and other costs shown below
|
1.56
|
|
|
1.37
|
|
|
5.54
|
|
|
|
|||||
Cobalt credits
b
|
(0.44
|
)
|
|
—
|
|
|
—
|
|
|
|
|||||
Royalty on metals
|
0.06
|
|
|
0.05
|
|
|
0.15
|
|
|
|
|||||
Unit net cash costs
|
1.18
|
|
|
1.42
|
|
|
5.69
|
|
|
|
|||||
DD&A
|
0.55
|
|
|
0.46
|
|
|
1.31
|
|
|
|
|||||
Noncash and other costs, net
|
0.03
|
|
|
0.03
|
|
|
0.08
|
|
|
|
|||||
Total unit costs
|
1.76
|
|
|
1.91
|
|
|
7.08
|
|
|
|
|||||
Revenue adjustments, primarily for pricing
|
|
|
|
|
|
|
|
||||||||
on prior period open sales
|
(0.03
|
)
|
|
(0.03
|
)
|
|
(0.04
|
)
|
|
|
|||||
Gross profit per pound
|
$
|
0.87
|
|
|
$
|
0.72
|
|
|
$
|
2.11
|
|
|
|
||
|
|
|
|
|
|
|
|
||||||||
Reconciliation to Amounts Reported
|
|
|
|
|
|
|
|
||||||||
(In millions)
|
Revenues
|
|
Production and Delivery
|
|
DD&A
|
|
|
||||||||
Totals presented above
|
$
|
783
|
|
|
$
|
417
|
|
|
$
|
130
|
|
|
|
||
Royalty on metals
|
(14
|
)
|
|
—
|
|
|
—
|
|
|
|
|||||
Noncash and other costs, net
|
—
|
|
|
8
|
|
|
—
|
|
|
|
|||||
Revenue adjustments, primarily for pricing
on prior period open sales
|
(8
|
)
|
|
—
|
|
|
—
|
|
|
|
|||||
Eliminations and other adjustments
c
|
(69
|
)
|
|
5
|
|
|
—
|
|
|
|
|||||
Total
|
$
|
692
|
|
d
|
$
|
430
|
|
d
|
$
|
130
|
|
d
|
|
a.
|
Includes point-of-sale transportation costs as negotiated in customer contracts.
|
b.
|
Net of cobalt downstream processing and freight costs.
|
c.
|
Reflects adjustments associated with reporting Tenke as discontinued operations/assets held for sale, including the elimination of intercompany sales to our consolidated subsidiaries.
|
d.
|
Refer to Note 2 for a reconciliation of these amounts to net income from discontinued operations as reported in FCX's consolidated financial statements.
|
|
|
|
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, 2016
.
|
(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, 2016
, 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, 2016
:
|
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, 2016
|
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
23,685,500
|
|
|
May 1-31, 2016
|
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
23,685,500
|
|
|
June 1-30, 2016
|
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
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 Disclosures.
|
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
|
4.10
|
Supplemental Indenture dated as of May 31, 2013, among FCX, Freeport-McMoRan Oil & Gas LLC and U.S. Bank National Association, as Trustee (relating to the 2.375% Senior Notes due 2018, the 3.100% Senior Notes due 2020, the 3.875% Senior Notes due 2023, and the 5.450% Senior Notes due 2043).
|
|
8-K
|
001-11307-01
|
6/3/2013
|
4.11
|
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, 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).
|
|
8-K
|
001-31470
|
3/13/2007
|
4.12
|
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
|
4.13
|
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
|
4.14
|
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
|
4.15
|
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
|
4.16
|
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).
|
|
8-K
|
001-31470
|
10/26/2012
|
4.17
|
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 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).
|
|
8-K
|
001-11307-01
|
6/3/2013
|
4.18
|
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).
|
|
S-3
|
333-36415
|
9/25/1997
|
|
|
|
|
|
|
FREEPORT-McMoRan INC.
|
|||||
EXHIBIT INDEX
|
|||||
|
|
Filed
|
|
||
Exhibit
|
|
with this
|
Incorporated by Reference
|
||
Number
|
Exhibit Title
|
Form 10-Q
|
Form
|
File No.
|
Date Filed
|
4.19
|
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).
|
|
8-K
|
01-00082
|
11/3/1997
|
4.20
|
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
|
4.21
|
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).
|
|
10-K
|
01-00082
|
3/7/2005
|
4.22
|
Supplemental Indenture dated as of April 4, 2007 to the Indenture dated as of September 22, 1997, among Phelps Dodge Corporation, as Issuer, Freeport-McMoRan Copper & Gold Inc., as Parent Guarantor, and U.S. Bank National Association, 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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10-K
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001-11307-01
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2/26/2016
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10.1
|
Distribution Agreement, dated as of May 16, 2016, by and among FCX, Noble Drilling (U.S.) LLC, J.P. Morgan Securities LLC and HSBC Securities (USA) Inc.
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8-K
|
001-11307-01
|
5/16/2016
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10.2
|
Distribution Agreement, dated as of July 27, 2016, by and among FCX, J.P. Morgan Securities LLC, Merrill Lynch, Pierce, Fenner & Smith Incorporated, BBVA Securities Inc., BMO Capital Markets Corp., BNP Paribas Securities Corp., BTIG, LLC, CIBC World Markets Corp., Citigroup Global Markets Inc., HSBC Securities (USA) Inc., Mizuho Securities USA Inc., MUFG Securities Americas Inc., RBC Capital Markets, LLC, Santander Investment Securities Inc., Scotia Capital (USA) Inc., SMBC Nikko Securities America, Inc., TD Securities (USA) LLC and Wells Fargo Securities, LLC.
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|
8-K
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001-11307-01
|
7/27/2016
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10.3*
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FCX 2016 Stock Incentive Plan.
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|
8-K
|
001-11307-01
|
6/9/2016
|
Letter from Ernst & Young LLP regarding unaudited interim financial statements.
|
X
|
|
|
|
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Certification of Principal Executive Officer pursuant to Rule 13a-14(a)/15d – 14(a).
|
X
|
|
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Certification of Principal Financial Officer pursuant to Rule 13a-14(a)/15d – 14(a).
|
X
|
|
|
|
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Certification of Principal Executive Officer pursuant to 18 U.S.C. Section 1350.
|
X
|
|
|
|
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Certification of Principal Financial Officer pursuant to 18 U.S.C Section 1350.
|
X
|
|
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|
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Mine Safety and Health Administration Safety Data.
|
X
|
|
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|
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101.INS
|
XBRL Instance Document.
|
X
|
|
|
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101.SCH
|
XBRL Taxonomy Extension Schema.
|
X
|
|
|
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101.CAL
|
XBRL Taxonomy Extension Calculation Linkbase.
|
X
|
|
|
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101.DEF
|
XBRL Taxonomy Extension Definition Linkbase.
|
X
|
|
|
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101.LAB
|
XBRL Taxonomy Extension Label Linkbase.
|
X
|
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|
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101.PRE
|
XBRL Taxonomy Extension Presentation Linkbase.
|
X
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|
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