Delaware | 001-11307-01 | 74-2480931 | ||
(State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification Number) |
333 North Central Avenue | |
Phoenix, AZ | 85004 |
(Address of principal executive offices) | (Zip Code) |
▪ | Net loss attributable to common stock totaled $3.8 billion, $3.58 per share, for third-quarter 2015. After adjusting for net charges totaling $3.7 billion, $3.43 per share, third-quarter 2015 adjusted net loss attributable to common stock totaled $156 million, $0.15 per share. |
▪ | Consolidated sales totaled 1.0 billion pounds of copper, 294 thousand ounces of gold, 23 million pounds of molybdenum and 13.8 million barrels of oil equivalents (MMBOE) for third-quarter 2015, compared with 1.1 billion pounds of copper, 525 thousand ounces of gold, 22 million pounds of molybdenum and 12.5 MMBOE for third-quarter 2014. |
▪ | Consolidated sales for the year 2015 are expected to approximate 4.1 billion pounds of copper, 1.2 million ounces of gold, 90 million pounds of molybdenum and 52.7 MMBOE, including 1.1 billion pounds of copper, 310 thousand ounces of gold, 21 million pounds of molybdenum and 13.3 MMBOE for fourth-quarter 2015. |
▪ | Average realized prices were $2.38 per pound for copper, $1,117 per ounce for gold and $55.88 per barrel for oil (including $11.03 per barrel for cash gains on derivative contracts) for third-quarter 2015. |
▪ | Consolidated unit net cash costs for third-quarter 2015 averaged $1.52 per pound of copper for mining operations and $18.85 per barrel of oil equivalents (BOE) for oil and gas operations. |
▪ | Operating cash flows totaled $822 million (including $507 million in working capital sources and changes in other tax payments) for third-quarter 2015. Based on current sales volume and cost estimates and assuming average prices of $2.40 per pound for copper, $1,150 per ounce for gold, $5.50 per pound for molybdenum and $50 per barrel for Brent crude oil for fourth-quarter 2015, operating cash flows are expected to approximate $3.3 billion for the year 2015. Using the same metals price assumptions and the recent 2016 future price of $54 per barrel of Brent crude oil, operating cash flows are expected to approximate $6.8 billion for the year 2016. |
▪ | Capital expenditures totaled $1.5 billion for third-quarter 2015, including $0.6 billion for major projects at mining operations and $0.7 billion for oil and gas operations. Capital expenditures are expected to approximate $6.3 billion for the year 2015, including $2.5 billion for major projects at mining operations and $2.8 billion for oil and gas operations. Capital expenditures are expected to approximate $4.0 billion for the year 2016. |
▪ | The Cerro Verde expansion project commenced operations in September 2015 and is expected to achieve full rates by early 2016. |
▪ | In third-quarter 2015, FCX announced revised capital and operating plans in response to market conditions. The revised plans include significant reductions in planned capital expenditures, production curtailments and cost reductions. FCX also announced today additional actions to further curtail copper and molybdenum production. |
▪ | FCX has sold 114.8 million shares of its common stock and generated gross proceeds of $1.2 billion under its at-the-market equity programs, including 97.5 million shares and gross proceeds of $1.0 billion during third-quarter 2015. |
▪ | At September 30, 2015, consolidated debt totaled $20.7 billion and consolidated cash totaled $338 million. |
▪ | In October 2015, FCX announced it is undertaking a review of its oil and gas business to evaluate strategic alternatives designed to enhance value to FCX shareholders and achieve self-funding of the oil and gas business from its cash flows and resources. |
▪ | In October 2015, the Indonesian government provided assurances to PT Freeport Indonesia on its long-term mining rights. |
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
(in millions, except per share amounts) | ||||||||||||||||
Revenuesa,b,c | $ | 3,681 | $ | 5,696 | $ | 12,082 | $ | 16,203 | ||||||||
Operating (loss) incomea,b,c,d,e | $ | (3,945 | ) | f,g | $ | 1,132 | h | $ | (9,282 | ) | f,g,h | $ | 3,396 | h | ||
Net (loss) income attributable to common stockb,c,d,e,i | $ | (3,830 | ) | f,g | $ | 552 | h,j,k | $ | (8,155 | ) | f,g,h,l | $ | 1,544 | h,j,k | ||
Diluted net (loss) income per share of common stockb,c,d,e,i | $ | (3.58 | ) | f,g | $ | 0.53 | h,j,k | $ | (7.77 | ) | f,g,h,l | $ | 1.47 | h,j,k | ||
Diluted weighted-average common shares outstanding | 1,071 | 1,046 | 1,050 | 1,045 | ||||||||||||
Operating cash flowsm | $ | 822 | $ | 1,926 | $ | 2,608 | $ | 4,513 | ||||||||
Capital expenditures | $ | 1,527 | $ | 1,853 | $ | 5,055 | $ | 5,415 | ||||||||
At September 30: | ||||||||||||||||
Cash and cash equivalents | $ | 338 | $ | 658 | $ | 338 | $ | 658 | ||||||||
Total debt, including current portion | $ | 20,698 | $ | 19,636 | $ | 20,698 | $ | 19,636 | ||||||||
a. | For segment financial results, refer to the supplemental schedule, "Business Segments," beginning on page VII. |
b. | Includes unfavorable adjustments to provisionally priced concentrate and cathode copper sales recognized in prior periods totaling $126 million ($62 million to net loss attributable to common stock or $0.06 per share) for third-quarter 2015, $22 million ($10 million to net income attributable to common stock or $0.01 per share) for third-quarter 2014, $107 million ($50 million to net loss attributable to common stock or $0.05 per share) for the first nine months of 2015 and $118 million ($65 million to net income attributable to common stock or $0.06 per share) for the first nine months of 2014. For further discussion, refer to the supplemental schedule, "Derivative Instruments," beginning on page VI. |
c. | Includes net noncash mark-to-market (losses) gains associated with crude oil and natural gas derivative contracts totaling $(74) million ($(46) million to net loss attributable to common stock or $(0.04) per share) for third-quarter 2015, $122 million ($76 million to net income attributable to common stock or $0.07 per share) for third-quarter 2014, $(217) million ($(135) million to net loss attributable to common stock or $(0.13) per share) for the first nine months of 2015 and $130 million ($80 million to net income attributable to common stock or $0.08 per share) for the first nine months of 2014. For further discussion, refer to the supplemental schedule, "Derivative Instruments," beginning on page VI. |
d. | Includes charges to reduce the carrying value of oil and gas properties pursuant to full cost accounting rules of $3.7 billion ($3.5 billion to net loss attributable to common stock or $3.25 per share) for third-quarter 2015 and $9.4 billion ($7.9 billion to net loss attributable to common stock or $7.48 per share) for the first nine months of 2015. These after-tax impacts include net tax charges of $1.1 billion for third-quarter 2015 and $1.9 billion for the first nine months of 2015 primarily to establish a valuation allowance against United States (U.S.) federal alternative minimum tax credits and foreign tax credits. The third quarter and first nine months of 2014 also includes charges of $308 million ($192 million to net income attributable to common stock of $0.18 per share) to reduce the carrying value of oil and gas properties. |
e. | Includes net (charges) credits for adjustments to environmental obligations and related litigation reserves totaling $(28) million ($(18) million to net loss attributable to common stock or $(0.02) per share) for third-quarter 2015, $1 million ($1 million to net income attributable to common stock or less than $0.01 per share) for third-quarter 2014, $(36) million ($(23) million to net loss attributable to common stock or $(0.02) per share) for the first nine months of 2015 and $(68) million ($(67) million to net income attributable to common stock or $(0.06) per share) for the first nine months of 2014. |
f. | Includes charges at mining operations for (i) adjustments to copper and molybdenum inventories totaling $91 million ($58 million to net loss attributable to common stock or $0.05 per share) for third-quarter 2015 and $154 million ($99 million to net loss attributable to common stock or $0.09 per share) for the first nine months of 2015 and (ii) impairment and restructuring charges totaling $95 million ($58 million to net loss attributable to common stock or $0.05 per share) for the third quarter and first nine months of 2015. |
g. | Includes charges at oil and gas operations for tax assessments related to prior periods at the California properties, idle/terminated rig costs and inventory write-downs totaling $21 million ($13 million to net loss attributable to common stock or $0.01 per share) for third-quarter 2015 and $59 million ($36 million to net loss attributable to common stock or $0.03 per share) for the first nine months of 2015. |
h. | Includes net gains on the sales of assets totaling $39 million ($25 million to net loss attributable to common stock or $0.02 per share) for the first nine months of 2015 associated with the sale of FCX's one-third interest in the Luna Energy power facility in New Mexico and $46 million ($31 million to net income attributable to common stock or $0.03 per share) for the third quarter and first nine months of 2014 associated with the sale of a metals injection molding plant. |
i. | FCX defers recognizing profits on intercompany sales until final sales to third parties occur. For a summary of net impacts from changes in these deferrals, refer to the supplemental schedule, "Deferred Profits," on page VII. |
j. | Includes net gains on early extinguishment of debt totaling $58 million ($17 million to net income attributable to common stock or $0.02 per share) in third-quarter 2014 and $63 million ($21 million to net income attributable to common stock or $0.02 per share) for the first nine months of 2014 related to the redemption of senior notes. |
k. | The third quarter and first nine months of 2014 include a tax charge of $54 million ($47 million net of noncontrolling interests or $0.04 per share) related to changes in Chilean tax rules. The first nine months of 2014 also includes a tax charge of $62 million ($0.06 per share) associated with deferred taxes recorded in connection with the allocation of goodwill to the sale of Eagle Ford. |
l. | The first nine months of 2015 includes a gain of $92 million ($0.09 per share) related to net proceeds received from insurance carriers and other third parties related to the shareholder derivative litigation settlement. |
m. | Includes net working capital sources (uses) and changes in other tax payments of $507 million for third-quarter 2015, $78 million for third-quarter 2014, $342 million for the first nine months of 2015 and $(699) million for the first nine months of 2014. |
▪ | A 29 percent reduction in estimated 2016 capital expenditures (from $5.6 billion to $4.0 billion), including: |
▪ | A 25 percent reduction in estimated mining capital expenditures (from $2.7 billion to $2.0 billion) |
▪ | A 30 percent reduction in estimated oil and gas capital expenditures (from $2.9 billion to $2.0 billion) |
▪ | Production curtailments at certain North and South America copper mines |
▪ | Reductions in mining operating costs |
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2015 | 2014a | 2015 | 2014a,b | ||||||||||||||
Copper (millions of recoverable pounds) | |||||||||||||||||
Production | 1,003 | 1,027 | 2,895 | 2,906 | |||||||||||||
Sales, excluding purchases | 1,001 | 1,077 | 2,925 | 2,916 | |||||||||||||
Average realized price per pound | $ | 2.38 | $ | 3.12 | $ | 2.54 | $ | 3.14 | |||||||||
Site production and delivery costs per poundc | $ | 1.74 | $ | 1.91 | $ | 1.84 | $ | 1.92 | |||||||||
Unit net cash costs per poundc | $ | 1.52 | $ | 1.34 | $ | 1.56 | $ | 1.52 | |||||||||
Gold (thousands of recoverable ounces) | |||||||||||||||||
Production | 281 | 449 | 907 | 846 | |||||||||||||
Sales, excluding purchases | 294 | 525 | 909 | 871 | |||||||||||||
Average realized price per ounce | $ | 1,117 | $ | 1,220 | $ | 1,149 | $ | 1,251 | |||||||||
Molybdenum (millions of recoverable pounds) | |||||||||||||||||
Production | 23 | 24 | 72 | 73 | |||||||||||||
Sales, excluding purchases | 23 | 22 | 69 | 74 | |||||||||||||
Average realized price per pound | $ | 7.91 | $ | 14.71 | $ | 9.21 | $ | 13.01 | |||||||||
Oil Equivalents | |||||||||||||||||
Sales volumes | |||||||||||||||||
MMBOE | 13.8 | 12.5 | 39.4 | 44.7 | |||||||||||||
Thousand BOE (MBOE) per day | 150 | 136 | 144 | 164 | |||||||||||||
Cash operating margin per BOEd | |||||||||||||||||
Realized revenues | $ | 43.00 | $ | 69.08 | $ | 45.57 | $ | 75.04 | |||||||||
Cash production costs | 18.85 | 20.93 | 19.42 | 19.57 | |||||||||||||
Cash operating margin | $ | 24.15 | $ | 48.15 | $ | 26.15 | $ | 55.47 |
a. | The 2014 periods include the results of the Candelaria and Ojos del Salado mines (Candelaria/Ojos) that were sold in November 2014. Sales volumes from Candelaria/Ojos totaled 62 million pounds of copper and 16 thousand ounces of gold for third-quarter 2014 and 236 million pounds of copper and 59 thousand ounces of gold for the first nine months of 2014. |
b. | The first nine months of 2014 include the results of the Eagle Ford properties that were sold in June 2014. Sales volumes from Eagle Ford totaled 8.7 MMBOE (32 MBOE per day) for the first nine months of 2014; excluding Eagle Ford, oil and gas cash production costs were $21.16 per BOE for the first nine months of 2014. |
c. | Reflects per pound weighted-average production and delivery costs and unit net cash costs (net of by-product credits) for all copper mines. For reconciliations of per pound unit costs by operating division to production and delivery costs applicable to sales reported in FCX's consolidated financial statements, refer to the supplemental schedules, "Product Revenues and Production Costs," beginning on page X. |
d. | Cash operating margin for oil and gas operations reflects realized revenues less cash production costs. Realized revenues exclude noncash mark-to-market adjustments on derivative contracts. For reconciliations of realized revenues and cash production costs per BOE to revenues and production and delivery costs reported in FCX's consolidated financial statements, refer to the supplemental schedules, “Product Revenues and Production Costs,” beginning on page X. |
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||||
Copper (millions of recoverable pounds) | |||||||||||||||||
Production | 499 | 423 | 1,420 | 1,203 | |||||||||||||
Sales | 483 | 436 | 1,441 | 1,230 | |||||||||||||
Average realized price per pound | $ | 2.42 | $ | 3.17 | $ | 2.59 | $ | 3.19 | |||||||||
Molybdenum (millions of recoverable pounds) | |||||||||||||||||
Productiona | 9 | 8 | 28 | 25 | |||||||||||||
Unit net cash costs per pound of copperb | |||||||||||||||||
Site production and delivery, excluding adjustments | $ | 1.68 | $ | 1.83 | $ | 1.76 | $ | 1.86 | |||||||||
By-product credits | (0.12 | ) | (0.26 | ) | (0.15 | ) | (0.25 | ) | |||||||||
Treatment charges | 0.12 | 0.11 | 0.12 | 0.11 | |||||||||||||
Unit net cash costs | $ | 1.68 | $ | 1.68 | $ | 1.73 | $ | 1.72 | |||||||||
a. | Refer to summary operating data on page 4 for FCX's consolidated molybdenum sales, which includes sales of molybdenum produced at the North America copper mines. |
b. | For a reconciliation of unit net cash costs per pound to production and delivery costs applicable to sales reported in FCX's consolidated financial statements, refer to the supplemental schedules, "Product Revenues and Production Costs," beginning on page X. |
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2015 | 2014a | 2015 | 2014a | ||||||||||||||
Copper (millions of recoverable pounds) | |||||||||||||||||
Production | 204 | 284 | 585 | 898 | |||||||||||||
Sales | 207 | 271 | 585 | 888 | |||||||||||||
Average realized price per pound | $ | 2.37 | $ | 3.10 | $ | 2.52 | $ | 3.12 | |||||||||
Gold (thousands of recoverable ounces) | |||||||||||||||||
Production | — | 20 | — | 62 | |||||||||||||
Sales | — | 16 | — | 59 | |||||||||||||
Average realized price per ounce | $ | — | $ | 1,234 | $ | — | $ | 1,280 | |||||||||
Molybdenum (millions of recoverable pounds) | |||||||||||||||||
Productionb | 1 | 3 | 5 | 8 | |||||||||||||
Unit net cash costs per pound of copperc | |||||||||||||||||
Site production and delivery, excluding adjustments | $ | 1.54 | $ | 1.67 | $ | 1.68 | $ | 1.61 | |||||||||
By-product credits | (0.04 | ) | (0.23 | ) | (0.05 | ) | (0.24 | ) | |||||||||
Treatment charges | 0.18 | 0.16 | 0.17 | 0.17 | |||||||||||||
Unit net cash costs | $ | 1.68 | $ | 1.60 | $ | 1.80 | $ | 1.54 | |||||||||
a. | The 2014 periods include the results of Candelaria/Ojos that were sold in November 2014. Candelaria/Ojos had sales volumes totaling 62 million pounds of copper and 16 thousand ounces of gold for third-quarter 2014 and 236 million pounds of copper and 59 thousand ounces of gold for the first nine months of 2014. Excluding Candelaria/Ojos, South America mining's unit net cash costs averaged $1.54 per pound of copper for third-quarter 2014 and $1.52 per pound of copper for the first nine months of 2014. |
b. | Refer to summary operating data on page 4 for FCX's consolidated molybdenum sales, which includes sales of molybdenum produced at Cerro Verde. |
c. | For a reconciliation of unit net cash costs per pound to production and delivery costs applicable to sales reported in FCX's consolidated financial statements, refer to the supplemental schedules, "Product Revenues and Production Costs," beginning on page X. |
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||||
Copper (millions of recoverable pounds) | |||||||||||||||||
Production | 192 | 203 | 551 | 465 | |||||||||||||
Sales | 198 | 258 | 549 | 484 | |||||||||||||
Average realized price per pound | $ | 2.35 | $ | 3.05 | $ | 2.45 | $ | 3.09 | |||||||||
Gold (thousands of recoverable ounces) | |||||||||||||||||
Production | 272 | 426 | 887 | 776 | |||||||||||||
Sales | 285 | 505 | 891 | 802 | |||||||||||||
Average realized price per ounce | $ | 1,117 | $ | 1,219 | $ | 1,149 | $ | 1,248 | |||||||||
Unit net cash costs per pound of coppera | |||||||||||||||||
Site production and delivery, excluding adjustments | $ | 2.16 | $ | 2.42 | $ | 2.39 | $ | 2.90 | b | ||||||||
Gold and silver credits | (1.59 | ) | (2.44 | ) | (1.93 | ) | (2.16 | ) | |||||||||
Treatment charges | 0.31 | 0.25 | 0.31 | 0.25 | |||||||||||||
Export duties | 0.17 | 0.16 | 0.16 | 0.09 | |||||||||||||
Royalty on metalsc | 0.13 | 0.21 | 0.16 | 0.16 | |||||||||||||
Unit net cash costs | $ | 1.18 | $ | 0.60 | $ | 1.09 | $ | 1.24 | |||||||||
a. | For a reconciliation of unit net cash costs per pound to production and delivery costs applicable to sales reported in FCX's consolidated financial statements, refer to the supplemental schedules, "Product Revenues and Production Costs," beginning on page X. |
b. | The first nine months of 2014 excludes fixed costs totaling $0.30 per pound of copper charged directly to cost of sales as a result of the impact of export restrictions on PT-FI's operating rates. |
c. | Includes increased royalty rates of $0.06 per pound for both the third quarter and first nine months of 2015, $0.08 per pound in third-quarter 2014 and $0.04 per pound for the first nine months of 2014. |
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||||
Copper (millions of recoverable pounds) | |||||||||||||||||
Production | 108 | 117 | 339 | 340 | |||||||||||||
Sales | 113 | 112 | 350 | 314 | |||||||||||||
Average realized price per pounda | $ | 2.32 | $ | 3.11 | $ | 2.52 | $ | 3.09 | |||||||||
Cobalt (millions of contained pounds) | |||||||||||||||||
Production | 9 | 8 | 25 | 22 | |||||||||||||
Sales | 10 | 8 | 26 | 23 | |||||||||||||
Average realized price per pound | $ | 8.96 | $ | 9.99 | $ | 9.04 | $ | 9.68 | |||||||||
Unit net cash costs per pound of copperb | |||||||||||||||||
Site production and delivery, excluding adjustments | $ | 1.63 | $ | 1.61 | $ | 1.58 | $ | 1.51 | |||||||||
Cobalt creditsc | (0.53 | ) | (0.58 | ) | (0.47 | ) | (0.51 | ) | |||||||||
Royalty on metals | 0.05 | 0.07 | 0.06 | 0.07 | |||||||||||||
Unit net cash costs | $ | 1.15 | $ | 1.10 | $ | 1.17 | $ | 1.07 | |||||||||
a. | Includes point-of-sale transportation costs as negotiated in customer contracts. |
b. | For a reconciliation of unit net cash costs per pound to production and delivery costs applicable to sales reported in FCX's consolidated financial statements, refer to the supplemental schedules, "Product Revenues and Production Costs," beginning on page X. |
c. | Net of cobalt downstream processing and freight costs. |
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2015 | 2014 | 2015 | 2014a | |||||||||||||
Financial Summary (in millions) | ||||||||||||||||
Realized revenuesb | $ | 593 | $ | 867 | $ | 1,796 | $ | 3,355 | ||||||||
Less: cash production costsb | 260 | 263 | 765 | 875 | ||||||||||||
Cash operating margin | $ | 333 | $ | 604 | $ | 1,031 | $ | 2,480 | ||||||||
Capital expendituresc | $ | 635 | $ | 908 | $ | 2,430 | $ | 2,392 | ||||||||
Sales Volumes | ||||||||||||||||
Oil (MMBbls) | 9.3 | 8.6 | 26.3 | 32.1 | ||||||||||||
Natural gas (Bcf) | 22.8 | 20.2 | 68.1 | 59.9 | ||||||||||||
NGLs (MMBbls) | 0.7 | 0.6 | 1.8 | 2.7 | ||||||||||||
MMBOE | 13.8 | 12.5 | 39.4 | 44.7 | ||||||||||||
Average Realized Pricesb | ||||||||||||||||
Oil (per barrel) | $ | 55.88 | $ | 88.58 | $ | 59.92 | $ | 93.00 | ||||||||
Natural gas (per million British thermal units, or MMBtu) | $ | 2.72 | $ | 4.02 | $ | 2.74 | $ | 4.37 | ||||||||
NGLs (per barrel) | $ | 16.68 | $ | 39.69 | $ | 19.78 | $ | 41.77 | ||||||||
Cash Operating Margin per BOEb | ||||||||||||||||
Realized revenues | $ | 43.00 | $ | 69.08 | $ | 45.57 | $ | 75.04 | ||||||||
Less: cash production costs | 18.85 | 20.93 | 19.42 | 19.57 | ||||||||||||
Cash operating margin | $ | 24.15 | $ | 48.15 | $ | 26.15 | $ | 55.47 | ||||||||
a. | Include results from the Eagle Ford field through June 19, 2014. Eagle Ford had sales volumes totaling 8.7 MMBOE for the first nine months of 2014; excluding Eagle Ford, oil and gas cash production costs were $21.16 per BOE for the first nine months of 2014. |
b. | Cash operating margin for oil and gas operations reflects realized revenues less cash production costs. Realized revenues exclude noncash mark-to-market adjustments on derivative contracts. 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 FCX's consolidated financial statements, refer to the supplemental schedules, “Product Revenues and Production Costs,” beginning on page X. |
c. | Excludes international oil and gas capital expenditures primarily related to Morocco of $37 million for third-quarter 2015, $81 million for the first nine months of 2015 and 7 million for both the third quarter and first nine months of 2014. |
Three Months Ended | Nine Months Ended | |||||||||||
September 30, | September 30, | |||||||||||
Sales Volumes (MBOE per day) | 2015 | 2014 | 2015 | 2014 | ||||||||
GOMa | 91 | 75 | 82 | 74 | ||||||||
California | 35 | 39 | 37 | 39 | ||||||||
Haynesville/Madden/Other | 24 | 22 | b | 25 | 19 | b | ||||||
Eagle Fordc | — | — | — | 32 | ||||||||
Total oil and gas operations | 150 | 136 | 144 | 164 | ||||||||
a. | Includes sales from properties on the GOM Shelf and in the Deepwater GOM; the 2015 periods also include sales from properties in the Inboard Lower Tertiary/Cretaceous natural gas trend. |
b. | Results include volume adjustments related to Eagle Ford's pre-close sales. |
c. | FM O&G completed the sale of Eagle Ford in June 2014. |
Cash at domestic companies | $ | 11 | ||
Cash at international operations | 327 | |||
Total consolidated cash and cash equivalents | 338 | |||
Less: noncontrolling interests' share | (82 | ) | ||
Cash, net of noncontrolling interests' share | 256 | |||
Less: withholding taxes and other | (13 | ) | ||
Net cash available | $ | 243 | ||
Weighted- | ||||||
Average | ||||||
Interest Rate | ||||||
FCX Senior Notes | $ | 11.9 | 3.8% | |||
FCX Term Loan | 3.0 | 1.9% | ||||
FM O&G Senior Notes | 2.5 | 6.6% | ||||
Cerro Verde Credit Facility | 1.5 | a | 2.6% | |||
FCX Revolving Credit Facility | 0.5 | b | 1.9% | |||
Other FCX debt | 1.3 | c | 3.2% | |||
$ | 20.7 | 3.7% | ||||
a. | As of September 30, 2015, Cerro Verde had no letters of credit issued and availability of $0.3 billion under its $1.8 billion credit facility to fund a portion of its expansion project and for its general corporate purposes. |
b. | As of September 30, 2015, FCX has $42 million in letters of credit issued and availability of $3.5 billion under its $4.0 billion revolving credit facility. |
c. | Includes FCX's uncommitted and short-term lines of credit, which had outstanding borrowings totaling $235 million as of September 30, 2015, and Cerro Verde's uncommitted and short-term lines of credit, which had outstanding borrowings totaling $381 million as of September 30, 2015. |
FREEPORT-McMoRan INC. | ||||||||||||
SELECTED MINING OPERATING DATA | ||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||
September 30, | September 30, | |||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||
100% North America Copper Mines | ||||||||||||
Solution Extraction/Electrowinning (SX/EW) Operations | ||||||||||||
Leach ore placed in stockpiles (metric tons per day) | 927,900 | 1,003,900 | 911,100 | 1,010,600 | ||||||||
Average copper ore grade (percent) | 0.27 | 0.25 | 0.26 | 0.25 | ||||||||
Copper production (millions of recoverable pounds) | 300 | 244 | 808 | 707 | ||||||||
Mill Operations | ||||||||||||
Ore milled (metric tons per day) | 311,500 | 278,000 | 309,700 | 264,500 | ||||||||
Average ore grades (percent): | ||||||||||||
Copper | 0.50 | 0.44 | 0.48 | 0.43 | ||||||||
Molybdenum | 0.03 | 0.03 | 0.03 | 0.03 | ||||||||
Copper recovery rate (percent) | 85.6 | 87.5 | 85.6 | 85.5 | ||||||||
Production (millions of recoverable pounds): | ||||||||||||
Copper | 240 | 211 | 728 | 581 | ||||||||
Molybdenum | 9 | 8 | 28 | 25 | ||||||||
100% South America Mininga | ||||||||||||
SX/EW Operations | ||||||||||||
Leach ore placed in stockpiles (metric tons per day) | 192,300 | 269,600 | 220,800 | 279,300 | ||||||||
Average copper ore grade (percent) | 0.46 | 0.50 | 0.43 | 0.50 | ||||||||
Copper production (millions of recoverable pounds) | 107 | 122 | 330 | 370 | ||||||||
Mill Operations | ||||||||||||
Ore milled (metric tons per day) | 131,200 | 192,100 | 122,400 | 187,700 | ||||||||
Average ore grades: | ||||||||||||
Copper (percent) | 0.49 | 0.50 | 0.46 | 0.55 | ||||||||
Molybdenum (percent) | 0.02 | 0.02 | 0.02 | 0.02 | ||||||||
Gold (grams per metric ton) | — | 0.09 | — | 0.10 | ||||||||
Copper recovery rate (percent) | 79.2 | 86.9 | 79.0 | 88.6 | ||||||||
Production (recoverable): | ||||||||||||
Copper (millions of pounds) | 97 | 162 | 255 | 528 | ||||||||
Molybdenum (millions of pounds) | 1 | 3 | 5 | 8 | ||||||||
Gold (thousands of ounces) | — | 20 | — | 62 | ||||||||
100% Indonesia Mining | ||||||||||||
Ore milled (metric tons per day)b | ||||||||||||
Grasberg open pit | 117,300 | 78,100 | 118,400 | 64,900 | ||||||||
Deep Ore Zone underground mine | 40,400 | 57,600 | 44,000 | 52,800 | ||||||||
Deep Mill Level Zone underground mine | 3,800 | — | 2,700 | — | ||||||||
Big Gossan underground mine | — | — | — | 1,200 | ||||||||
Total | 161,500 | 135,700 | 165,100 | 118,900 | ||||||||
Average ore grades: | ||||||||||||
Copper (percent) | 0.68 | 0.88 | 0.65 | 0.78 | ||||||||
Gold (grams per metric ton) | 0.71 | 1.28 | 0.76 | 0.94 | ||||||||
Recovery rates (percent): | ||||||||||||
Copper | 89.6 | 91.4 | 90.2 | 89.9 | ||||||||
Gold | 81.1 | 84.6 | 83.1 | 81.5 | ||||||||
Production (recoverable): | ||||||||||||
Copper (millions of pounds) | 192 | 207 | 551 | 476 | ||||||||
Gold (thousands of ounces) | 272 | 426 | 887 | 777 | ||||||||
100% Africa Mining | ||||||||||||
Ore milled (metric tons per day) | 14,000 | 15,500 | 14,600 | 15,100 | ||||||||
Average ore grades (percent): | ||||||||||||
Copper | 4.02 | 4.13 | 4.13 | 4.09 | ||||||||
Cobalt | 0.43 | 0.33 | 0.41 | 0.33 | ||||||||
Copper recovery rate (percent) | 94.0 | 91.3 | 94.0 | 92.8 | ||||||||
Production (millions of pounds): | ||||||||||||
Copper (recoverable) | 108 | 117 | 339 | 340 | ||||||||
Cobalt (contained) | 9 | 8 | 25 | 22 | ||||||||
a. On November 3, 2014, FCX completed the sale of its 80 percent interests in the Candelaria and Ojos del Salado mines. | ||||||||||||
b. Amounts represent the approximate average daily throughput processed at PT-FI's mill facilities from each producing mine. |
FREEPORT-McMoRan INC. | ||||||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
(In millions, except per share amounts) | ||||||||||||||||
Revenuesa,b | $ | 3,681 | $ | 5,696 | $ | 12,082 | $ | 16,203 | ||||||||
Cost of sales: | ||||||||||||||||
Production and delivery | 2,893 | c,d | 3,152 | 8,653 | c,d | 8,971 | ||||||||||
Depreciation, depletion and amortization | 888 | 945 | 2,717 | 2,924 | ||||||||||||
Impairment of oil and gas properties | 3,652 | 308 | 9,442 | 308 | ||||||||||||
Total cost of sales | 7,433 | 4,405 | 20,812 | 12,203 | ||||||||||||
Selling, general and administrative expenses | 124 | 158 | 429 | 457 | ||||||||||||
Mining exploration and research expenses | 32 | 29 | 101 | 93 | ||||||||||||
Environmental obligations and shutdown costs | 37 | 18 | 61 | 100 | ||||||||||||
Net gain on sales of assets | — | (46 | ) | (39 | ) | (46 | ) | |||||||||
Total costs and expenses | 7,626 | 4,564 | 21,364 | 12,807 | ||||||||||||
Operating (loss) income | (3,945 | ) | 1,132 | (9,282 | ) | 3,396 | ||||||||||
Interest expense, nete | (163 | ) | (158 | ) | (458 | ) | (483 | ) | ||||||||
Insurance and other third-party recoveries | — | — | 92 | — | ||||||||||||
Net gain on early extinguishment of debt | — | 58 | — | 63 | ||||||||||||
Other (expense) income, net | (40 | ) | 23 | (88 | ) | 48 | ||||||||||
(Loss) income before income taxes and equity in affiliated companies' net losses | (4,148 | ) | 1,055 | (9,736 | ) | 3,024 | ||||||||||
Benefit from (provision for) income taxes | 360 | f | (349 | ) | g | 1,742 | f | (1,034 | ) | g | ||||||
Equity in affiliated companies' net losses | (2 | ) | (2 | ) | (1 | ) | — | |||||||||
Net (loss) income | (3,790 | ) | 704 | (7,995 | ) | 1,990 | ||||||||||
Net income attributable to noncontrolling interests | (29 | ) | (142 | ) | (129 | ) | (416 | ) | ||||||||
Preferred dividends attributable to redeemable noncontrolling interest | (11 | ) | (10 | ) | (31 | ) | (30 | ) | ||||||||
Net (loss) income attributable to common stockholdersh | $ | (3,830 | ) | $ | 552 | $ | (8,155 | ) | $ | 1,544 | ||||||
Net (loss) income per share attributable to common stockholders: | ||||||||||||||||
Basic | $ | (3.58 | ) | $ | 0.53 | $ | (7.77 | ) | $ | 1.48 | ||||||
Diluted | $ | (3.58 | ) | $ | 0.53 | $ | (7.77 | ) | $ | 1.47 | ||||||
Weighted-average common shares outstanding: | ||||||||||||||||
Basic | 1,071 | 1,039 | 1,050 | 1,039 | ||||||||||||
Diluted | 1,071 | 1,046 | 1,050 | 1,045 | ||||||||||||
Dividends declared per share of common stock | $ | 0.05 | $ | 0.3125 | $ | 0.2605 | $ | 0.9375 |
a. | Includes unfavorable adjustments to provisionally priced concentrate and cathode copper sales recognized in prior periods totaling $126 million ($62 million to net loss attributable to common stock) for third-quarter 2015, $22 million ($10 million to net income attributable to common stock) for third-quarter 2014, $107 million ($50 million to net loss attributable to common stock) for the first nine months of 2015 and $118 million ($65 million to net income attributable to common stock) for the first nine months of 2014. For further discussion, refer to the supplemental schedule, "Derivative Instruments," beginning on page VI. |
b. | Includes net noncash mark-to-market (losses) gains associated with crude oil and natural gas derivative contracts totaling $(74) million ($(46) million to net loss attributable to common stock) for third-quarter 2015, $122 million ($76 million to net income attributable to common stock) for third-quarter 2014, $(217) million ($(135) million to net loss attributable to common stock) for the first nine months of 2015 and $130 million ($80 million to net income attributable to common stock) for the first nine months of 2014. For further discussion, refer to the supplemental schedule, "Derivative Instruments," beginning on page VI. |
c. | Includes charges at mining operations for (i) adjustments to copper and molybdenum inventories totaling $91 million ($58 million to net loss attributable to common stock) for third-quarter 2015 and $154 million ($99 million to net loss attributable to common stock) for the first nine months of 2015 and (ii) impairment and restructuring charges totaling $95 million ($58 million to net loss attributable to common stock) for the third quarter and first nine months of 2015. |
d. | Includes charges at oil and gas operations for tax assessments related to prior periods at the California properties, idle/terminated rig costs and inventory write-downs totaling $21 million ($13 million to net loss attributable to common stock) for third-quarter 2015 and $59 million ($36 million to net loss attributable to common stock) for the first nine months of 2015. |
e. | Consolidated interest expense, excluding capitalized interest, totaled $217 million in third-quarter 2015, $212 million in third-quarter 2014, $642 million for the first nine months of 2015 and $661 million for the first nine months of 2014. |
f. | As a result of the impairment to oil and gas properties, FCX recorded net tax charges of $1.1 billion for third-quarter 2015 and $1.9 billion for the first nine months of 2015, primarily to establish a valuation allowance against U.S. federal alternative minimum tax credits and foreign tax credits. For a summary of the benefit from (provision for) income taxes, refer to the supplementary schedule, "Income Taxes," on page V. |
g. | The third quarter and first nine months of 2014 include a tax charge of $54 million ($47 million net of noncontrolling interests) related to changes in Chilean tax rules. The first nine months of 2014 also includes a tax charge of $62 million associated with deferred taxes recorded in connection with the allocation of goodwill to the sale of Eagle Ford. For a summary of the benefit from (provision for) income taxes, refer to the supplementary schedule, "Income Taxes," on page V. |
h. | FCX defers recognizing profits on intercompany sales until final sales to third parties occur. Changes in these deferrals attributable to variability in intercompany volumes resulted in net additions (reductions) to net income attributable to common stock of less than $1 million in third-quarter 2015, $(20) million in third-quarter 2014, $37 million for the first nine months of 2015 and $36 million for the first nine months of 2014. For further discussion, refer to the supplemental schedule, "Deferred Profits," on page VII. |
FREEPORT-McMoRan INC. | ||||||||
CONSOLIDATED BALANCE SHEETS (Unaudited) | ||||||||
September 30, | December 31, | |||||||
2015 | 2014 | |||||||
(In millions) | ||||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 338 | $ | 464 | ||||
Trade accounts receivable | 626 | 953 | ||||||
Other accounts receivables | 1,276 | 1,610 | ||||||
Inventories: | ||||||||
Materials and supplies, net | 2,071 | 1,886 | ||||||
Mill and leach stockpiles | 1,895 | 1,914 | ||||||
Product | 1,379 | 1,561 | ||||||
Other current assets | 570 | 657 | ||||||
Total current assets | 8,155 | 9,045 | ||||||
Property, plant, equipment and mining development costs, net | 27,355 | 26,220 | ||||||
Oil and gas properties, net - full cost method: | ||||||||
Subject to amortization, less accumulated amortization | 3,002 | 9,187 | ||||||
Not subject to amortization | 7,568 | 10,087 | ||||||
Long-term mill and leach stockpiles | 2,326 | 2,179 | ||||||
Other assets | 1,977 | 1,956 | ||||||
Total assets | $ | 50,383 | $ | 58,674 | ||||
LIABILITIES AND EQUITY | ||||||||
Current liabilities: | ||||||||
Accounts payable and accrued liabilities | $ | 3,445 | $ | 3,653 | ||||
Current portion of debt | 906 | 478 | ||||||
Current portion of environmental and asset retirement obligations | 336 | 296 | ||||||
Accrued income taxes | 75 | 410 | ||||||
Dividends payable | 65 | 335 | ||||||
Total current liabilities | 4,827 | 5,172 | ||||||
Long-term debt, less current portion | 19,792 | 18,371 | ||||||
Deferred income taxes | 4,363 | 6,398 | ||||||
Environmental and asset retirement obligations, less current portion | 3,708 | 3,647 | ||||||
Other liabilities | 1,727 | 1,861 | ||||||
Total liabilities | 34,417 | 35,449 | ||||||
Redeemable noncontrolling interest | 761 | 751 | ||||||
Equity: | ||||||||
Stockholders' equity: | ||||||||
Common stock | 127 | 117 | ||||||
Capital in excess of par value | 23,335 | 22,281 | ||||||
(Accumulated deficit) retained earnings | (8,305 | ) | 128 | |||||
Accumulated other comprehensive loss | (509 | ) | (544 | ) | ||||
Common stock held in treasury | (3,702 | ) | (3,695 | ) | ||||
Total stockholders' equity | 10,946 | 18,287 | ||||||
Noncontrolling interests | 4,259 | 4,187 | ||||||
Total equity | 15,205 | 22,474 | ||||||
Total liabilities and equity | $ | 50,383 | $ | 58,674 | ||||
FREEPORT-McMoRan INC. | |||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) | |||||||||
Nine Months Ended | |||||||||
September 30, | |||||||||
2015 | 2014 | ||||||||
(In millions) | |||||||||
Cash flow from operating activities: | |||||||||
Net (loss) income | $ | (7,995 | ) | $ | 1,990 | ||||
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | |||||||||
Depreciation, depletion and amortization | 2,717 | 2,924 | |||||||
Impairment of oil and gas properties | 9,442 | 308 | |||||||
Inventory adjustments | 154 | — | |||||||
Net gain on sale of assets | (39 | ) | (46 | ) | |||||
Net (gains) losses on crude oil and natural gas derivative contracts | (87 | ) | 56 | ||||||
Net charges for environmental and asset retirement obligations, including accretion | 174 | 146 | |||||||
Payments for environmental and asset retirement obligations | (135 | ) | (134 | ) | |||||
Net gain on early extinguishment of debt | — | (63 | ) | ||||||
Deferred income taxes | (1,926 | ) | 107 | ||||||
Increase in long-term mill and leach stockpiles | (183 | ) | (182 | ) | |||||
Other, net | 144 | 106 | |||||||
Changes in working capital and other tax payments, excluding amounts from acquisitions and dispositions: | |||||||||
Accounts receivable | 990 | 200 | |||||||
Inventories | 83 | (267 | ) | ||||||
Other current assets | (13 | ) | (26 | ) | |||||
Accounts payable and accrued liabilities | (150 | ) | (379 | ) | |||||
Accrued income taxes and changes in other tax payments | (568 | ) | (227 | ) | |||||
Net cash provided by operating activities | 2,608 | 4,513 | |||||||
Cash flow from investing activities: | |||||||||
Capital expenditures: | |||||||||
North America copper mines | (308 | ) | (815 | ) | |||||
South America | (1,339 | ) | (1,278 | ) | |||||
Indonesia | (660 | ) | (722 | ) | |||||
Africa | (166 | ) | (100 | ) | |||||
Molybdenum mines | (10 | ) | (45 | ) | |||||
U.S. oil and gas operations | (2,430 | ) | (2,392 | ) | |||||
Other | (142 | ) | (63 | ) | |||||
Acquisition of Deepwater GOM interests | — | (1,421 | ) | ||||||
Net proceeds from sale of Eagle Ford shale assets | — | 2,971 | |||||||
Other, net | 114 | 221 | |||||||
Net cash used in investing activities | (4,941 | ) | (3,644 | ) | |||||
Cash flow from financing activities: | |||||||||
Proceeds from debt | 6,552 | 3,346 | |||||||
Repayments of debt | (4,693 | ) | (4,196 | ) | |||||
Net proceeds from sale of common stock | 999 | — | |||||||
Cash dividends and distributions paid: | |||||||||
Common stock | (547 | ) | (979 | ) | |||||
Noncontrolling interests | (89 | ) | (365 | ) | |||||
Stock-based awards net (payments) proceeds, including excess tax benefit | (8 | ) | 7 | ||||||
Debt financing costs and other, net | (7 | ) | (9 | ) | |||||
Net cash provided by (used in) financing activities | 2,207 | (2,196 | ) | ||||||
Net decrease in cash and cash equivalents | (126 | ) | (1,327 | ) | |||||
Cash and cash equivalents at beginning of year | 464 | 1,985 | |||||||
Cash and cash equivalents at end of period | $ | 338 | $ | 658 | |||||
Three Months Ended September 30, | ||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||
Income Tax | Income Tax | |||||||||||||||||||
Income | Effective | Benefit | Income | Effective | Benefit | |||||||||||||||
(Loss)a | Tax Rate | (Provision) | (Loss)a | Tax Rate | (Provision) | |||||||||||||||
U.S. | $ | (585 | ) | 25% | $ | 147 | $ | 537 | 27% | $ | (146 | ) | ||||||||
South America | (5 | ) | (40)% | (2 | ) | 267 | 53% | (142 | ) | b | ||||||||||
Indonesia | 38 | 55% | (21 | ) | 436 | 42% | (181 | ) | ||||||||||||
Africa | 9 | 67% | (6 | ) | 118 | 31% | (36 | ) | ||||||||||||
Impairment of oil and gas properties | (3,652 | ) | 36% | 1,318 | (308 | ) | 38% | 116 | ||||||||||||
Valuation allowance, net | — | N/A | (1,147 | ) | c | — | N/A | — | ||||||||||||
Eliminations and other | 47 | N/A | (12 | ) | 5 | N/A | 23 | |||||||||||||
Annualized rate adjustmentd | — | N/A | 83 | — | N/A | 17 | ||||||||||||||
Consolidated FCX | $ | (4,148 | ) | 9% | $ | 360 | $ | 1,055 | 33% | $ | (349 | ) | ||||||||
Nine Months Ended September 30, | ||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||
Income Tax | Income Tax | |||||||||||||||||||
Income | Effective | Benefit | Income | Effective | Benefit | |||||||||||||||
(Loss)a | Tax Rate | (Provision) | (Loss)a | Tax Rate | (Provision) | |||||||||||||||
U.S. | $ | (1,054 | ) | e | 41% | $ | 435 | $ | 1,473 | 30% | $ | (437 | ) | f | ||||||
South America | 76 | 42% | (32 | ) | 1,014 | 40% | (409 | ) | b | |||||||||||
Indonesia | 327 | 44% | (145 | ) | 397 | 42% | (166 | ) | ||||||||||||
Africa | 123 | 48% | (59 | ) | 305 | 30% | (93 | ) | ||||||||||||
Impairment of oil and gas properties | (9,442 | ) | 37% | 3,497 | (308 | ) | 38% | 116 | ||||||||||||
Valuation allowance, net | — | N/A | (1,910 | ) | c | — | N/A | — | ||||||||||||
Eliminations and other | 234 | N/A | (40 | ) | 143 | N/A | (14 | ) | ||||||||||||
Annualized rate adjustmentd | — | N/A | (4 | ) | — | N/A | (31 | ) | ||||||||||||
Consolidated FCX | $ | (9,736 | ) | 18% | g | $ | 1,742 | $ | 3,024 | 34% | $ | (1,034 | ) |
a. | Represents income (loss) by geographic location before income taxes and equity in affiliated companies' net earnings. |
b. | Includes a $54 million charge primarily related to changes in Chilean tax rules. |
c. | As a result of the impairment to U.S. oil and gas properties, FCX recorded tax charges to establish a valuation allowance primarily against U.S. federal alternative minimum tax credits and foreign tax credits, partly offset by a tax benefit related to the impairment of the Morocco oil and gas properties. |
d. | In accordance with applicable accounting rules, FCX adjusts its interim provision for income taxes equal to its estimated annualized tax rate. |
e. | 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 is no related tax provision. |
f. | Includes a $62 million charge for deferred taxes recorded in connection with the allocation of goodwill to the sale of Eagle Ford. |
g. | FCX's consolidated effective income tax rate is a function of the combined effective tax rates for the jurisdictions in which it operates. Accordingly, variations in the relative proportions of jurisdictional income result in fluctuations to FCX's consolidated effective income tax rate. Assuming achievement of current sales volume and cost estimates and average prices of $2.40 per pound for copper, $1,150 per ounce for gold, $5.50 per pound for molybdenum and $50 per barrel of Brent crude oil for fourth-quarter 2015, FCX estimates a tax benefit of $1.8 billion for the year 2015, substantially all of which relates to the impairment of oil and gas properties, net of related valuation allowances. |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
Revenues | $ | (126 | ) | $ | (22 | ) | $ | (107 | ) | $ | (118 | ) | |||
Net income attributable to common stock | $ | (62 | ) | $ | (10 | ) | $ | (50 | ) | $ | (65 | ) | |||
Net income per share of common stock | $ | (0.06 | ) | $ | (0.01 | ) | $ | (0.05 | ) | $ | (0.06 | ) |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
Revenues | $ | (74 | ) | $ | 122 | $ | (217 | ) | $ | 130 | |||||
Net income attributable to common stock | $ | (46 | ) | $ | 76 | $ | (135 | ) | $ | 80 | |||||
Net income per share of common stock | $ | (0.04 | ) | $ | 0.07 | $ | (0.13 | ) | $ | 0.08 |
10% Increase | 10% Decrease | ||||||
Crude oil options | $ | (1 | ) | $ | — | ||
(In millions) | Mining Operations | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
North America Copper Mines | South America | Indonesia | Africa | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Atlantic | Other | Corporate, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Molyb- | Copper | Mining | U.S. | Other | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other | Cerro | Other | denum | Rod & | Smelting | & Elimi- | Total | Oil & Gas | & Elimi- | FCX | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Morenci | Mines | Total | Verde | Minesa | Total | Grasberg | Tenke | Mines | Refining | & Refining | nations | Mining | Operations | nations | Total | ||||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended September 30, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Unaffiliated customers | $ | 165 | $ | 58 | $ | 223 | $ | 238 | $ | 187 | $ | 425 | $ | 557 | b | $ | 299 | $ | — | $ | 946 | $ | 438 | $ | 267 | c | $ | 3,155 | $ | 525 | d | $ | 1 | $ | 3,681 | ||||||||||||||||||||||||||||
Intersegment | 332 | 614 | 946 | 13 | — | 13 | 52 | 29 | 83 | 5 | 1 | (1,129 | ) | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
Production and delivery | 357 | 671 | 1,028 | e | 177 | 167 | e | 344 | 417 | 209 | 86 | e | 946 | 410 | (842 | ) | e | 2,598 | 293 | 2 | e | 2,893 | |||||||||||||||||||||||||||||||||||||||||
Depreciation, depletion and amortization | 51 | 85 | 136 | 57 | 32 | 89 | 90 | 65 | 26 | 2 | 10 | 16 | 434 | 450 | 4 | 888 | |||||||||||||||||||||||||||||||||||||||||||||||
Impairment of oil and gas properties | — | — | — | — | — | — | — | — | — | — | — | — | — | 3,480 | 172 | f | 3,652 | ||||||||||||||||||||||||||||||||||||||||||||||
Selling, general and administrative expenses | 1 | — | 1 | 1 | — | 1 | 24 | 2 | — | — | 4 | 5 | 37 | 37 | 50 | 124 | |||||||||||||||||||||||||||||||||||||||||||||||
Mining exploration and research expenses | — | 1 | 1 | — | — | — | — | — | — | — | — | 31 | 32 | — | — | 32 | |||||||||||||||||||||||||||||||||||||||||||||||
Environmental obligations and shutdown costs | — | 3 | 3 | — | — | — | — | — | — | — | — | 33 | 36 | — | 1 | 37 | |||||||||||||||||||||||||||||||||||||||||||||||
Operating income (loss) | 88 | (88 | ) | — | 16 | (12 | ) | 4 | 78 | 52 | (29 | ) | 3 | 15 | (105 | ) | 18 | (3,735 | ) | (228 | ) | (3,945 | ) | ||||||||||||||||||||||||||||||||||||||||
Interest expense, net | 1 | — | 1 | — | — | — | — | — | — | — | 3 | 19 | 23 | 51 | 89 | 163 | |||||||||||||||||||||||||||||||||||||||||||||||
Provision for (benefit from) income taxes | — | — | — | — | 2 | 2 | 21 | 6 | — | — | — | — | 29 | — | (389 | ) | (360 | ) | |||||||||||||||||||||||||||||||||||||||||||||
Total assets at September 30, 2015 | 3,720 | 5,159 | 8,879 | 9,136 | 1,843 | 10,979 | 8,965 | 5,100 | 2,017 | 235 | 699 | 1,326 | 38,200 | 12,084 | 99 | 50,383 | |||||||||||||||||||||||||||||||||||||||||||||||
Capital expenditures | 61 | 33 | 94 | 421 | 16 | 437 | 222 | 69 | 3 | 1 | 10 | 10 | 846 | 635 | g | 46 | 1,527 | ||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended September 30, 2014 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Unaffiliated customers | $ | 140 | $ | 79 | $ | 219 | $ | 295 | $ | 441 | $ | 736 | $ | 1,086 | b | $ | 379 | $ | — | $ | 1,219 | $ | 597 | $ | 470 | c | $ | 4,706 | $ | 990 | d | $ | — | $ | 5,696 | ||||||||||||||||||||||||||||
Intersegment | 428 | 843 | 1,271 | 63 | 48 | 111 | 167 | 49 | 173 | 8 | 4 | (1,783 | ) | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
Production and delivery | 341 | 561 | 902 | 178 | 293 | 471 | 700 | 206 | 86 | 1,220 | 578 | (1,283 | ) | 2,880 | 273 | (1 | ) | 3,152 | |||||||||||||||||||||||||||||||||||||||||||||
Depreciation, depletion and amortization | 51 | 82 | 133 | 41 | 61 | 102 | 92 | 58 | 25 | 2 | 11 | 15 | 438 | 504 | 3 | 945 | |||||||||||||||||||||||||||||||||||||||||||||||
Impairment of oil and gas properties | — | — | — | — | — | — | — | — | — | — | — | — | — | 308 | — | 308 | |||||||||||||||||||||||||||||||||||||||||||||||
Selling, general and administrative expenses | — | 1 | 1 | — | 1 | 1 | 27 | 3 | — | — | 4 | 7 | 43 | 55 | 60 | 158 | |||||||||||||||||||||||||||||||||||||||||||||||
Mining exploration and research expenses | — | 2 | 2 | — | — | — | — | — | — | — | — | 27 | 29 | — | — | 29 | |||||||||||||||||||||||||||||||||||||||||||||||
Environmental obligations and shutdown costs | — | (5 | ) | (5 | ) | — | — | — | — | — | — | — | — | 23 | 18 | — | — | 18 | |||||||||||||||||||||||||||||||||||||||||||||
Net gain on sales of assets | — | (14 | ) | (14 | ) | — | — | — | — | — | — | — | — | (32 | ) | (46 | ) | — | — | (46 | ) | ||||||||||||||||||||||||||||||||||||||||||
Operating income (loss) | 176 | 295 | 471 | 139 | 134 | 273 | 434 | 161 | 62 | 5 | 8 | (70 | ) | 1,344 | (150 | ) | (62 | ) | 1,132 | ||||||||||||||||||||||||||||||||||||||||||||
Interest expense, net | 1 | — | 1 | 1 | — | 1 | — | — | — | — | 3 | 19 | 24 | 51 | 83 | 158 | |||||||||||||||||||||||||||||||||||||||||||||||
Provision for (benefit from) income taxes | — | — | — | 47 | 95 | 142 | 181 | 36 | — | — | — | — | 359 | — | (10 | ) | 349 | ||||||||||||||||||||||||||||||||||||||||||||||
Total assets at September 30, 2014 | 3,689 | 5,742 | 9,431 | 7,006 | 3,721 | 10,727 | 8,537 | 5,010 | 2,089 | 282 | 948 | 1,025 | 38,049 | 25,328 | 498 | 63,875 | |||||||||||||||||||||||||||||||||||||||||||||||
Capital expenditures | 158 | 30 | 188 | 416 | 23 | 439 | 243 | 40 | 12 | 1 | 3 | 11 | 937 | 908 | g | 8 | 1,853 |
(In millions) | Mining Operations | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
North America Copper Mines | South America | Indonesia | Africa | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Atlantic | Other | Corporate, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Molyb- | Copper | Mining | U.S. | Other | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other | Cerro | Other | denum | Rod & | Smelting | & Elimi- | Total | Oil & Gas | & Elimi- | FCX | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Morenci | Mines | Total | Verde | Minesa | Total | Grasberg | Tenke | Mines | Refining | & Refining | nations | Mining | Operationsb | nations | Total | ||||||||||||||||||||||||||||||||||||||||||||||||
Nine Months Ended September 30, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Unaffiliated customers | $ | 451 | $ | 265 | $ | 716 | $ | 681 | $ | 639 | $ | 1,320 | $ | 1,969 | c | $ | 991 | $ | — | $ | 3,097 | $ | 1,473 | $ | 921 | d | $ | 10,487 | $ | 1,594 | e | $ | 1 | $ | 12,082 | ||||||||||||||||||||||||||||
Intersegment | 1,209 | 1,984 | 3,193 | 64 | (7 | ) | f | 57 | 37 | 98 | 298 | 20 | 12 | (3,715 | ) | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Production and delivery | 1,117 | 1,816 | 2,933 | g | 540 | 464 | g | 1,004 | 1,311 | 634 | 253 | g | 3,097 | 1,397 | (2,840 | ) | g | 7,789 | 857 | 7 | g | 8,653 | |||||||||||||||||||||||||||||||||||||||||
Depreciation, depletion and amortization | 157 | 251 | 408 | 134 | 102 | 236 | 238 | 195 | 77 | 7 | 29 | 51 | 1,241 | 1,465 | 11 | 2,717 | |||||||||||||||||||||||||||||||||||||||||||||||
Impairment of oil and gas properties | — | — | — | — | — | — | — | — | — | — | — | — | — | 9,270 | 172 | h | 9,442 | ||||||||||||||||||||||||||||||||||||||||||||||
Selling, general and administrative expenses | 2 | 2 | 4 | 2 | 1 | 3 | 74 | 8 | — | — | 13 | 16 | 118 | 140 | 171 | 429 | |||||||||||||||||||||||||||||||||||||||||||||||
Mining exploration and research expenses | — | 6 | 6 | — | — | — | — | — | — | — | — | 95 | 101 | — | — | 101 | |||||||||||||||||||||||||||||||||||||||||||||||
Environmental obligations and shutdown costs | — | 3 | 3 | — | — | — | — | — | — | — | — | 57 | 60 | — | 1 | 61 | |||||||||||||||||||||||||||||||||||||||||||||||
Net gain on sales of assets | — | (39 | ) | (39 | ) | — | — | — | — | — | — | — | — | — | (39 | ) | — | — | (39 | ) | |||||||||||||||||||||||||||||||||||||||||||
Operating income (loss) | 384 | 210 | 594 | 69 | 65 | 134 | 383 | 252 | (32 | ) | 13 | 46 | (173 | ) | 1,217 | (10,138 | ) | (361 | ) | (9,282 | ) | ||||||||||||||||||||||||||||||||||||||||||
Interest expense, net | 2 | 1 | 3 | 1 | — | 1 | — | — | — | — | 8 | 57 | 69 | 129 | 260 | 458 | |||||||||||||||||||||||||||||||||||||||||||||||
Provision for (benefit from) income taxes | — | — | — | — | 32 | 32 | 145 | 59 | — | — | — | — | 236 | — | (1,978 | ) | (1,742 | ) | |||||||||||||||||||||||||||||||||||||||||||||
Capital expenditures | 224 | 84 | 308 | 1,296 | 43 | 1,339 | 660 | 166 | 10 | 2 | 18 | 37 | 2,540 | 2,430 | i | 85 | 5,055 | ||||||||||||||||||||||||||||||||||||||||||||||
Nine Months Ended September 30, 2014 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Unaffiliated customers | $ | 215 | $ | 195 | $ | 410 | $ | 996 | $ | 1,387 | $ | 2,383 | $ | 2,071 | c | $ | 1,071 | $ | — | $ | 3,599 | $ | 1,808 | $ | 1,374 | d | $ | 12,716 | $ | 3,487 | e | $ | — | $ | 16,203 | ||||||||||||||||||||||||||||
Intersegment | 1,346 | 2,489 | 3,835 | 150 | 243 | 393 | 175 | 102 | 469 | 24 | 15 | (5,013 | ) | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
Production and delivery | 936 | 1,622 | 2,558 | 538 | 939 | 1,477 | 1,594 | 556 | 243 | 3,601 | 1,784 | (3,753 | ) | 8,060 | 913 | (2 | ) | 8,971 | |||||||||||||||||||||||||||||||||||||||||||||
Depreciation, depletion and amortization | 128 | 240 | 368 | 120 | 164 | 284 | 194 | 172 | 71 | 7 | 31 | 51 | 1,178 | 1,736 | 10 | 2,924 | |||||||||||||||||||||||||||||||||||||||||||||||
Impairment of oil and gas properties | — | — | — | — | — | — | — | — | — | — | — | — | — | 308 | — | 308 | |||||||||||||||||||||||||||||||||||||||||||||||
Selling, general and administrative expenses | 1 | 2 | 3 | 2 | 3 | 5 | 73 | 9 | — | — | 13 | 20 | 123 | 171 | 163 | 457 | |||||||||||||||||||||||||||||||||||||||||||||||
Mining exploration and research expenses | — | 6 | 6 | — | — | — | — | — | — | — | — | 87 | 93 | — | — | 93 | |||||||||||||||||||||||||||||||||||||||||||||||
Environmental obligations and shutdown costs | — | (5 | ) | (5 | ) | — | — | — | — | — | — | — | — | 105 | 100 | — | — | 100 | |||||||||||||||||||||||||||||||||||||||||||||
Net gain on sales of assets | — | (14 | ) | (14 | ) | — | — | — | — | — | — | — | — | (32 | ) | (46 | ) | — | — | (46 | ) | ||||||||||||||||||||||||||||||||||||||||||
Operating income (loss) | 496 | 833 | 1,329 | 486 | 524 | 1,010 | 385 | 436 | 155 | 15 | (5 | ) | (117 | ) | 3,208 | 359 | (171 | ) | 3,396 | ||||||||||||||||||||||||||||||||||||||||||||
Interest expense, net | 2 | 1 | 3 | 1 | — | 1 | — | — | — | — | 10 | 55 | 69 | 201 | 213 | 483 | |||||||||||||||||||||||||||||||||||||||||||||||
Provision for (benefit from) income taxes | — | — | — | 177 | 232 | 409 | 166 | 93 | — | — | — | — | 668 | — | 366 | 1,034 | |||||||||||||||||||||||||||||||||||||||||||||||
Capital expenditures | 691 | 124 | 815 | 1,207 | 71 | 1,278 | 722 | 100 | 45 | 3 | 9 | 38 | 3,010 | 2,392 | i | 13 | 5,415 |
FREEPORT-McMoRan INC. | |||||||||||||||||||||
PRODUCT REVENUES AND PRODUCTION COSTS (continued) | |||||||||||||||||||||
North America Copper Mines Product Revenues, Production Costs and Unit Net Cash Costs | |||||||||||||||||||||
Three Months Ended September 30, 2015 | |||||||||||||||||||||
By-Product | Co-Product Method | ||||||||||||||||||||
(In millions) | Method | Copper | Molybdenuma | Otherb | Total | ||||||||||||||||
Revenues, excluding adjustments | $ | 1,167 | $ | 1,167 | $ | 56 | $ | 29 | $ | 1,252 | |||||||||||
Site production and delivery, before net noncash | |||||||||||||||||||||
and other costs shown below | 810 | 766 | 50 | 21 | 837 | ||||||||||||||||
By-product credits | (58 | ) | — | — | — | — | |||||||||||||||
Treatment charges | 58 | 56 | — | 2 | 58 | ||||||||||||||||
Net cash costs | 810 | 822 | 50 | 23 | 895 | ||||||||||||||||
Depreciation, depletion and amortization | 135 | 128 | 4 | 3 | 135 | ||||||||||||||||
Noncash and other costs, net | 159 | c | 155 | 3 | 1 | 159 | |||||||||||||||
Total costs | 1,104 | 1,105 | 57 | 27 | 1,189 | ||||||||||||||||
Revenue adjustments, primarily for pricing | |||||||||||||||||||||
on prior period open sales | (56 | ) | (56 | ) | — | — | (56 | ) | |||||||||||||
Gross profit (loss) | $ | 7 | $ | 6 | $ | (1 | ) | $ | 2 | $ | 7 | ||||||||||
Copper sales (millions of recoverable pounds) | 483 | 483 | |||||||||||||||||||
Molybdenum sales (millions of recoverable pounds)a | 9 | ||||||||||||||||||||
Gross profit per pound of copper/molybdenum: | |||||||||||||||||||||
Revenues, excluding adjustments | $ | 2.42 | $ | 2.42 | $ | 6.18 | |||||||||||||||
Site production and delivery, before net noncash | |||||||||||||||||||||
and other costs shown below | 1.68 | 1.59 | 5.51 | ||||||||||||||||||
By-product credits | (0.12 | ) | — | — | |||||||||||||||||
Treatment charges | 0.12 | 0.11 | — | ||||||||||||||||||
Unit net cash costs | 1.68 | 1.70 | 5.51 | ||||||||||||||||||
Depreciation, depletion and amortization | 0.28 | 0.27 | 0.51 | ||||||||||||||||||
Noncash and other costs, net | 0.33 | c | 0.32 | 0.33 | |||||||||||||||||
Total unit costs | 2.29 | 2.29 | 6.35 | ||||||||||||||||||
Revenue adjustments, primarily for pricing | |||||||||||||||||||||
on prior period open sales | (0.12 | ) | (0.12 | ) | — | ||||||||||||||||
Gross profit (loss) per pound | $ | 0.01 | $ | 0.01 | $ | (0.17 | ) | ||||||||||||||
Reconciliation to Amounts Reported | Depreciation, | ||||||||||||||||||||
Production | Depletion and | ||||||||||||||||||||
(In millions) | Revenues | and Delivery | Amortization | ||||||||||||||||||
Totals presented above | $ | 1,252 | $ | 837 | $ | 135 | |||||||||||||||
Treatment charges | — | 58 | — | ||||||||||||||||||
Noncash and other costs, net | — | 159 | c | — | |||||||||||||||||
Revenue adjustments, primarily for pricing | |||||||||||||||||||||
on prior period open sales | (56 | ) | — | — | |||||||||||||||||
Eliminations and other | (27 | ) | (26 | ) | 1 | ||||||||||||||||
North America copper mines | 1,169 | 1,028 | 136 | ||||||||||||||||||
Other mining & eliminationsd | 1,986 | 1,570 | 298 | ||||||||||||||||||
Total mining | 3,155 | 2,598 | 434 | ||||||||||||||||||
U.S. oil & gas operations | 525 | 293 | 3,930 | e | |||||||||||||||||
Corporate, other & eliminations | 1 | 2 | 176 | e | |||||||||||||||||
As reported in FCX’s consolidated financial statements | $ | 3,681 | $ | 2,893 | $ | 4,540 | e |
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. | Includes $133 million ($0.27 per pound) for inventory adjustments, and impairment and restructuring charges. |
d. | Represents the combined total for all other mining operations and the related eliminations, as presented in the supplemental schedule "Business Segments," beginning on page VII. |
e. | Includes impairment of oil and gas properties totaling $3.7 billion, $3.5 billion for U.S. oil and gas operations and $0.2 billion for Morocco. |
FREEPORT-McMoRan INC. | |||||||||||||||||||||
PRODUCT REVENUES AND PRODUCTION COSTS (continued) | |||||||||||||||||||||
North America Copper Mines Product Revenues, Production Costs and Unit Net Cash Costs | |||||||||||||||||||||
Three Months Ended September 30, 2014 | |||||||||||||||||||||
By-Product | Co-Product Method | ||||||||||||||||||||
(In millions) | Method | Copper | Molybdenuma | Otherb | Total | ||||||||||||||||
Revenues, excluding adjustments | $ | 1,374 | $ | 1,374 | $ | 109 | $ | 31 | $ | 1,514 | |||||||||||
Site production and delivery, before net noncash | |||||||||||||||||||||
and other costs shown below | 791 | 738 | 62 | 20 | 820 | ||||||||||||||||
By-product credits | (111 | ) | — | — | — | — | |||||||||||||||
Treatment charges | 50 | 49 | — | 1 | 50 | ||||||||||||||||
Net cash costs | 730 | 787 | 62 | 21 | 870 | ||||||||||||||||
Depreciation, depletion and amortization | 131 | 124 | 5 | 2 | 131 | ||||||||||||||||
Noncash and other costs, net | 46 | 45 | 1 | — | 46 | ||||||||||||||||
Total costs | 907 | 956 | 68 | 23 | 1,047 | ||||||||||||||||
Revenue adjustments, primarily for pricing | |||||||||||||||||||||
on prior period open sales | (8 | ) | (8 | ) | — | — | (8 | ) | |||||||||||||
Gross profit | $ | 459 | $ | 410 | $ | 41 | $ | 8 | $ | 459 | |||||||||||
Copper sales (millions of recoverable pounds) | 434 | 434 | |||||||||||||||||||
Molybdenum sales (millions of recoverable pounds)a | 8 | ||||||||||||||||||||
Gross profit per pound of copper/molybdenum: | |||||||||||||||||||||
Revenues, excluding adjustments | $ | 3.17 | $ | 3.17 | $ | 13.83 | |||||||||||||||
Site production and delivery, before net noncash | |||||||||||||||||||||
and other costs shown below | 1.83 | 1.70 | 7.87 | ||||||||||||||||||
By-product credits | (0.26 | ) | — | — | |||||||||||||||||
Treatment charges | 0.11 | 0.11 | — | ||||||||||||||||||
Unit net cash costs | 1.68 | 1.81 | 7.87 | ||||||||||||||||||
Depreciation, depletion and amortization | 0.30 | 0.29 | 0.72 | ||||||||||||||||||
Noncash and other costs, net | 0.11 | 0.10 | 0.06 | ||||||||||||||||||
Total unit costs | 2.09 | 2.20 | 8.65 | ||||||||||||||||||
Revenue adjustments, primarily for pricing | |||||||||||||||||||||
on prior period open sales | (0.02 | ) | (0.02 | ) | — | ||||||||||||||||
Gross profit per pound | $ | 1.06 | $ | 0.95 | $ | 5.18 | |||||||||||||||
Reconciliation to Amounts Reported | Depreciation, | ||||||||||||||||||||
Production | Depletion and | ||||||||||||||||||||
(In millions) | Revenues | and Delivery | Amortization | ||||||||||||||||||
Totals presented above | $ | 1,514 | $ | 820 | $ | 131 | |||||||||||||||
Treatment charges | — | 50 | — | ||||||||||||||||||
Noncash and other costs, net | — | 46 | — | ||||||||||||||||||
Revenue adjustments, primarily for pricing | |||||||||||||||||||||
on prior period open sales | (8 | ) | — | — | |||||||||||||||||
Eliminations and other | (16 | ) | (14 | ) | 2 | ||||||||||||||||
North America copper mines | 1,490 | 902 | 133 | ||||||||||||||||||
Other mining & eliminationsc | 3,216 | 1,978 | 305 | ||||||||||||||||||
Total mining | 4,706 | 2,880 | 438 | ||||||||||||||||||
U.S. oil & gas operations | 990 | 273 | 812 | d | |||||||||||||||||
Corporate, other & eliminations | — | (1 | ) | 3 | |||||||||||||||||
As reported in FCX’s consolidated financial statements | $ | 5,696 | $ | 3,152 | $ | 1,253 | d |
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 the supplemental schedule "Business Segments," beginning on page VII. |
d. | Includes impairment of U.S. oil and gas properties of $308 million. |
FREEPORT-McMoRan INC. | |||||||||||||||||||||
PRODUCT REVENUES AND PRODUCTION COSTS (continued) | |||||||||||||||||||||
North America Copper Mines Product Revenues, Production Costs and Unit Net Cash Costs | |||||||||||||||||||||
Nine Months Ended September 30, 2015 | |||||||||||||||||||||
By-Product | Co-Product Method | ||||||||||||||||||||
(In millions) | Method | Copper | Molybdenuma | Otherb | Total | ||||||||||||||||
Revenues, excluding adjustments | $ | 3,723 | $ | 3,723 | $ | 218 | $ | 83 | $ | 4,024 | |||||||||||
Site production and delivery, before net noncash | |||||||||||||||||||||
and other costs shown below | 2,525 | 2,372 | 172 | 61 | 2,605 | ||||||||||||||||
By-product credits | (221 | ) | — | — | — | — | |||||||||||||||
Treatment charges | 179 | 173 | — | 6 | 179 | ||||||||||||||||
Net cash costs | 2,483 | 2,545 | 172 | 67 | 2,784 | ||||||||||||||||
Depreciation, depletion and amortization | 405 | 381 | 16 | 8 | 405 | ||||||||||||||||
Noncash and other costs, net | 236 | c | 231 | 4 | 1 | 236 | |||||||||||||||
Total costs | 3,124 | 3,157 | 192 | 76 | 3,425 | ||||||||||||||||
Revenue adjustments, primarily for pricing | |||||||||||||||||||||
on prior period open sales | (28 | ) | (28 | ) | — | — | (28 | ) | |||||||||||||
Gross profit | $ | 571 | $ | 538 | $ | 26 | $ | 7 | $ | 571 | |||||||||||
Copper sales (millions of recoverable pounds) | 1,439 | 1,439 | |||||||||||||||||||
Molybdenum sales (millions of recoverable pounds)a | 28 | ||||||||||||||||||||
Gross profit per pound of copper/molybdenum: | |||||||||||||||||||||
Revenues, excluding adjustments | $ | 2.59 | $ | 2.59 | $ | 7.62 | |||||||||||||||
Site production and delivery, before net noncash | |||||||||||||||||||||
and other costs shown below | 1.76 | 1.65 | 6.01 | ||||||||||||||||||
By-product credits | (0.15 | ) | — | — | |||||||||||||||||
Treatment charges | 0.12 | 0.12 | — | ||||||||||||||||||
Unit net cash costs | 1.73 | 1.77 | 6.01 | ||||||||||||||||||
Depreciation, depletion and amortization | 0.28 | 0.27 | 0.56 | ||||||||||||||||||
Noncash and other costs, net | 0.16 | c | 0.16 | 0.14 | |||||||||||||||||
Total unit costs | 2.17 | 2.20 | 6.71 | ||||||||||||||||||
Revenue adjustments, primarily for pricing | |||||||||||||||||||||
on prior period open sales | (0.02 | ) | (0.02 | ) | — | ||||||||||||||||
Gross profit per pound | $ | 0.40 | $ | 0.37 | $ | 0.91 | |||||||||||||||
Reconciliation to Amounts Reported | Depreciation, | ||||||||||||||||||||
Production | Depletion and | ||||||||||||||||||||
(In millions) | Revenues | and Delivery | Amortization | ||||||||||||||||||
Totals presented above | $ | 4,024 | $ | 2,605 | $ | 405 | |||||||||||||||
Treatment charges | — | 179 | — | ||||||||||||||||||
Noncash and other costs, net | — | 236 | c | — | |||||||||||||||||
Revenue adjustments, primarily for pricing | |||||||||||||||||||||
on prior period open sales | (28 | ) | — | — | |||||||||||||||||
Eliminations and other | (87 | ) | (87 | ) | 3 | ||||||||||||||||
North America copper mines | 3,909 | 2,933 | 408 | ||||||||||||||||||
Other mining & eliminationsd | 6,578 | 4,856 | 833 | ||||||||||||||||||
Total mining | 10,487 | 7,789 | 1,241 | ||||||||||||||||||
U.S. oil & gas operations | 1,594 | 857 | 10,735 | e | |||||||||||||||||
Corporate, other & eliminations | 1 | 7 | 183 | e | |||||||||||||||||
As reported in FCX’s consolidated financial statements | $ | 12,082 | $ | 8,653 | $ | 12,159 | e |
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. | Includes $144 million ($0.10 per pound) for inventory adjustments, and impairment and restructuring charges. |
d. | Represents the combined total for all other mining operations and the related eliminations, as presented in the supplemental schedule "Business Segments," beginning on page VII. |
e. | Includes impairment of oil and gas properties totaling $9.4 billion, $9.3 billion for U.S. oil and gas operations and $0.2 billion for Morocco. |
FREEPORT-McMoRan INC. | |||||||||||||||||||||
PRODUCT REVENUES AND PRODUCTION COSTS (continued) | |||||||||||||||||||||
North America Copper Mines Product Revenues, Production Costs and Unit Net Cash Costs | |||||||||||||||||||||
Nine Months Ended September 30, 2014 | |||||||||||||||||||||
By-Product | Co-Product Method | ||||||||||||||||||||
(In millions) | Method | Copper | Molybdenuma | Otherb | Total | ||||||||||||||||
Revenues, excluding adjustments | $ | 3,901 | $ | 3,901 | $ | 303 | $ | 90 | $ | 4,294 | |||||||||||
Site production and delivery, before net noncash | |||||||||||||||||||||
and other costs shown below | 2,272 | 2,126 | 172 | 57 | 2,355 | ||||||||||||||||
By-product credits | (310 | ) | — | — | — | — | |||||||||||||||
Treatment charges | 144 | 140 | — | 4 | 144 | ||||||||||||||||
Net cash costs | 2,106 | 2,266 | 172 | 61 | 2,499 | ||||||||||||||||
Depreciation, depletion and amortization | 360 | 340 | 16 | 4 | 360 | ||||||||||||||||
Noncash and other costs, net | 105 | 103 | 1 | 1 | 105 | ||||||||||||||||
Total costs | 2,571 | 2,709 | 189 | 66 | 2,964 | ||||||||||||||||
Revenue adjustments, primarily for pricing | |||||||||||||||||||||
on prior period open sales | (7 | ) | (7 | ) | — | — | (7 | ) | |||||||||||||
Gross profit | $ | 1,323 | $ | 1,185 | $ | 114 | $ | 24 | $ | 1,323 | |||||||||||
Copper sales (millions of recoverable pounds) | 1,224 | 1,224 | |||||||||||||||||||
Molybdenum sales (millions of recoverable pounds)a | 25 | ||||||||||||||||||||
Gross profit per pound of copper/molybdenum: | |||||||||||||||||||||
Revenues, excluding adjustments | $ | 3.19 | $ | 3.19 | $ | 12.16 | |||||||||||||||
Site production and delivery, before net noncash | |||||||||||||||||||||
and other costs shown below | 1.86 | 1.74 | 6.90 | ||||||||||||||||||
By-product credits | (0.25 | ) | — | — | |||||||||||||||||
Treatment charges | 0.11 | 0.11 | — | ||||||||||||||||||
Unit net cash costs | 1.72 | 1.85 | 6.90 | ||||||||||||||||||
Depreciation, depletion and amortization | 0.29 | 0.28 | 0.62 | ||||||||||||||||||
Noncash and other costs, net | 0.09 | 0.08 | 0.05 | ||||||||||||||||||
Total unit costs | 2.10 | 2.21 | 7.57 | ||||||||||||||||||
Revenue adjustments, primarily for pricing | |||||||||||||||||||||
on prior period open sales | (0.01 | ) | (0.01 | ) | — | ||||||||||||||||
Gross profit per pound | $ | 1.08 | $ | 0.97 | $ | 4.59 | |||||||||||||||
Reconciliation to Amounts Reported | Depreciation, | ||||||||||||||||||||
Production | Depletion and | ||||||||||||||||||||
(In millions) | Revenues | and Delivery | Amortization | ||||||||||||||||||
Totals presented above | $ | 4,294 | $ | 2,355 | $ | 360 | |||||||||||||||
Treatment charges | — | 144 | — | ||||||||||||||||||
Noncash and other costs, net | — | 105 | — | ||||||||||||||||||
Revenue adjustments, primarily for pricing | |||||||||||||||||||||
on prior period open sales | (7 | ) | — | — | |||||||||||||||||
Eliminations and other | (42 | ) | (46 | ) | 8 | ||||||||||||||||
North America copper mines | 4,245 | 2,558 | 368 | ||||||||||||||||||
Other mining & eliminationsc | 8,471 | 5,502 | 810 | ||||||||||||||||||
Total mining | 12,716 | 8,060 | 1,178 | ||||||||||||||||||
U.S. oil & gas operations | 3,487 | 913 | 2,044 | d | |||||||||||||||||
Corporate, other & eliminations | — | (2 | ) | 10 | |||||||||||||||||
As reported in FCX’s consolidated financial statements | $ | 16,203 | $ | 8,971 | $ | 3,232 | d |
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 the supplemental schedule "Business Segments," beginning on page VII. |
d. | Includes impairment of U.S. oil and gas properties of $308 million. |
FREEPORT-McMoRan INC. | |||||||||||||||||
PRODUCT REVENUES AND PRODUCTION COSTS (continued) | |||||||||||||||||
South America Mining Product Revenues, Production Costs and Unit Net Cash Costs | |||||||||||||||||
Three Months Ended September 30, 2015 | |||||||||||||||||
By-Product | Co-Product Method | ||||||||||||||||
(In millions) | Method | Copper | Othera | Total | |||||||||||||
Revenues, excluding adjustments | $ | 491 | $ | 491 | $ | 13 | $ | 504 | |||||||||
Site production and delivery, before net noncash | |||||||||||||||||
and other costs shown below | 320 | 312 | 13 | 325 | |||||||||||||
By-product credits | (8 | ) | — | — | — | ||||||||||||
Treatment charges | 36 | 36 | — | 36 | |||||||||||||
Royalty on metals | 1 | 1 | — | 1 | |||||||||||||
Net cash costs | 349 | 349 | 13 | 362 | |||||||||||||
Depreciation, depletion and amortization | 89 | 87 | 2 | 89 | |||||||||||||
Noncash and other costs, net | 21 | b | 20 | 1 | 21 | ||||||||||||
Total costs | 459 | 456 | 16 | 472 | |||||||||||||
Revenue adjustments, primarily for pricing | |||||||||||||||||
on prior period open sales | (29 | ) | (29 | ) | — | (29 | ) | ||||||||||
Gross profit (loss) | $ | 3 | $ | 6 | $ | (3 | ) | $ | 3 | ||||||||
Copper sales (millions of recoverable pounds) | 207 | 207 | |||||||||||||||
Gross profit per pound of copper: | |||||||||||||||||
Revenues, excluding adjustments | $ | 2.37 | $ | 2.37 | |||||||||||||
Site production and delivery, before net noncash | |||||||||||||||||
and other costs shown below | 1.54 | 1.50 | |||||||||||||||
By-product credits | (0.04 | ) | — | ||||||||||||||
Treatment charges | 0.18 | 0.18 | |||||||||||||||
Royalty on metals | — | — | |||||||||||||||
Unit net cash costs | 1.68 | 1.68 | |||||||||||||||
Depreciation, depletion and amortization | 0.43 | 0.42 | |||||||||||||||
Noncash and other costs, net | 0.10 | b | 0.10 | ||||||||||||||
Total unit costs | 2.21 | 2.20 | |||||||||||||||
Revenue adjustments, primarily for pricing | |||||||||||||||||
on prior period open sales | (0.14 | ) | (0.14 | ) | |||||||||||||
Gross profit per pound | $ | 0.02 | $ | 0.03 | |||||||||||||
Reconciliation to Amounts Reported | Depreciation, | ||||||||||||||||
Production | Depletion and | ||||||||||||||||
(In millions) | Revenues | and Delivery | Amortization | ||||||||||||||
Totals presented above | $ | 504 | $ | 325 | $ | 89 | |||||||||||
Treatment charges | (36 | ) | — | — | |||||||||||||
Royalty on metals | (1 | ) | — | — | |||||||||||||
Noncash and other costs, net | — | 21 | b | — | |||||||||||||
Revenue adjustments, primarily for pricing | |||||||||||||||||
on prior period open sales | (29 | ) | — | — | |||||||||||||
Eliminations and other | — | (2 | ) | — | |||||||||||||
South America mining | 438 | 344 | 89 | ||||||||||||||
Other mining & eliminationsc | 2,717 | 2,254 | 345 | ||||||||||||||
Total mining | 3,155 | 2,598 | 434 | ||||||||||||||
U.S. oil & gas operations | 525 | 293 | 3,930 | d | |||||||||||||
Corporate, other & eliminations | 1 | 2 | 176 | d | |||||||||||||
As reported in FCX’s consolidated financial statements | $ | 3,681 | $ | 2,893 | $ | 4,540 | d |
a. | Includes silver sales of 438 thousand ounces ($13.90 per ounce average realized price). Also reflects sales of molybdenum produced by Cerro Verde to FCX's molybdenum sales company at market-based pricing. |
b. | Includes restructuring charges totaling $11 million ($0.05 per pound). |
c. | Represents the combined total for all other mining operations and the related eliminations, as presented in the supplemental schedule, “Business Segments,” beginning on page VII. |
d. | Includes impairment of oil and gas properties totaling $3.7 billion, $3.5 billion for U.S. oil and gas operations and $0.2 billion for Morocco. |
FREEPORT-McMoRan INC. | |||||||||||||||||
PRODUCT REVENUES AND PRODUCTION COSTS (continued) | |||||||||||||||||
South America Mining Product Revenues, Production Costs and Unit Net Cash Costs | |||||||||||||||||
Three Months Ended September 30, 2014 | |||||||||||||||||
By-Product | Co-Product Method | ||||||||||||||||
(In millions) | Method | Copper | Othera | Total | |||||||||||||
Revenues, excluding adjustments | $ | 840 | $ | 840 | $ | 69 | $ | 909 | |||||||||
Site production and delivery, before net noncash | |||||||||||||||||
and other costs shown below | 451 | 416 | 42 | 458 | |||||||||||||
By-product credits | (62 | ) | — | — | — | ||||||||||||
Treatment charges | 43 | 43 | — | 43 | |||||||||||||
Royalty on metals | 1 | 1 | — | 1 | |||||||||||||
Net cash costs | 433 | b | 460 | 42 | 502 | ||||||||||||
Depreciation, depletion and amortization | 102 | 96 | 6 | 102 | |||||||||||||
Noncash and other costs, net | 18 | 16 | 2 | 18 | |||||||||||||
Total costs | 553 | 572 | 50 | 622 | |||||||||||||
Revenue adjustments, primarily for pricing | |||||||||||||||||
on prior period open sales | (15 | ) | (15 | ) | — | (15 | ) | ||||||||||
Gross profit | $ | 272 | $ | 253 | $ | 19 | $ | 272 | |||||||||
Copper sales (millions of recoverable pounds) | 271 | b | 271 | ||||||||||||||
Gross profit per pound of copper: | |||||||||||||||||
Revenues, excluding adjustments | $ | 3.10 | $ | 3.10 | |||||||||||||
Site production and delivery, before net noncash | |||||||||||||||||
and other costs shown below | 1.67 | 1.54 | |||||||||||||||
By-product credits | (0.23 | ) | — | ||||||||||||||
Treatment charges | 0.16 | 0.16 | |||||||||||||||
Royalty on metals | — | — | |||||||||||||||
Unit net cash costs | 1.60 | b | 1.70 | ||||||||||||||
Depreciation, depletion and amortization | 0.37 | 0.34 | |||||||||||||||
Noncash and other costs, net | 0.07 | 0.06 | |||||||||||||||
Total unit costs | 2.04 | 2.10 | |||||||||||||||
Revenue adjustments, primarily for pricing | |||||||||||||||||
on prior period open sales | (0.06 | ) | (0.06 | ) | |||||||||||||
Gross profit per pound | $ | 1.00 | $ | 0.94 | |||||||||||||
Reconciliation to Amounts Reported | Depreciation, | ||||||||||||||||
Production | Depletion and | ||||||||||||||||
(In millions) | Revenues | and Delivery | Amortization | ||||||||||||||
Totals presented above | $ | 909 | $ | 458 | $ | 102 | |||||||||||
Treatment charges | (43 | ) | — | — | |||||||||||||
Royalty on metals | (1 | ) | — | — | |||||||||||||
Noncash and other costs, net | — | 18 | — | ||||||||||||||
Revenue adjustments, primarily for pricing | |||||||||||||||||
on prior period open sales | (15 | ) | — | — | |||||||||||||
Eliminations and other | (3 | ) | (5 | ) | — | ||||||||||||
South America mining | 847 | 471 | 102 | ||||||||||||||
Other mining & eliminationsc | 3,859 | 2,409 | 336 | ||||||||||||||
Total mining | 4,706 | 2,880 | 438 | ||||||||||||||
U.S. oil & gas operations | 990 | 273 | 812 | d | |||||||||||||
Corporate, other & eliminations | — | (1 | ) | 3 | |||||||||||||
As reported in FCX’s consolidated financial statements | $ | 5,696 | $ | 3,152 | $ | 1,253 | d |
a. | Includes gold sales of 16 thousand ounces ($1,234 per ounce average realized price) and silver sales of 684 thousand ounces ($18.57 per ounce average realized price). Also reflects sales of molybdenum produced by Cerro Verde to FCX's molybdenum sales company at market-based pricing. |
Net Cash Costs (in millions) | Copper Sales (millions of recoverable pounds) | Unit Net Cash Costs (per pound of copper) | |||||||||
Presented above | $ | 433 | 271 | $ | 1.60 | ||||||
Less: Candelaria/Ojos | 112 | 63 | |||||||||
$ | 321 | 208 | $ | 1.54 |
FREEPORT-McMoRan INC. | |||||||||||||||||
PRODUCT REVENUES AND PRODUCTION COSTS (continued) | |||||||||||||||||
South America Mining Product Revenues, Production Costs and Unit Net Cash Costs | |||||||||||||||||
Nine Months Ended September 30, 2015 | |||||||||||||||||
By-Product | Co-Product Method | ||||||||||||||||
(In millions) | Method | Copper | Othera | Total | |||||||||||||
Revenues, excluding adjustments | $ | 1,473 | $ | 1,473 | $ | 48 | $ | 1,521 | |||||||||
Site production and delivery, before net noncash | |||||||||||||||||
and other costs shown below | 983 | 954 | 46 | 1,000 | |||||||||||||
By-product credits | (31 | ) | — | — | — | ||||||||||||
Treatment charges | 100 | 100 | — | 100 | |||||||||||||
Royalty on metals | 2 | 2 | — | 2 | |||||||||||||
Net cash costs | 1,054 | 1,056 | 46 | 1,102 | |||||||||||||
Depreciation, depletion and amortization | 236 | 229 | 7 | 236 | |||||||||||||
Noncash and other costs, net | 21 | b | 21 | — | 21 | ||||||||||||
Total costs | 1,311 | 1,306 | 53 | 1,359 | |||||||||||||
Revenue adjustments, primarily for pricing | |||||||||||||||||
on prior period open sales | (29 | ) | (29 | ) | — | (29 | ) | ||||||||||
Gross profit (loss) | $ | 133 | $ | 138 | $ | (5 | ) | $ | 133 | ||||||||
Copper sales (millions of recoverable pounds) | 585 | 585 | |||||||||||||||
Gross profit per pound of copper: | |||||||||||||||||
Revenues, excluding adjustments | $ | 2.52 | $ | 2.52 | |||||||||||||
Site production and delivery, before net noncash | |||||||||||||||||
and other costs shown below | 1.68 | 1.63 | |||||||||||||||
By-product credits | (0.05 | ) | — | ||||||||||||||
Treatment charges | 0.17 | 0.17 | |||||||||||||||
Royalty on metals | — | — | |||||||||||||||
Unit net cash costs | 1.80 | 1.80 | |||||||||||||||
Depreciation, depletion and amortization | 0.40 | 0.39 | |||||||||||||||
Noncash and other costs, net | 0.04 | b | 0.04 | ||||||||||||||
Total unit costs | 2.24 | 2.23 | |||||||||||||||
Revenue adjustments, primarily for pricing | |||||||||||||||||
on prior period open sales | (0.05 | ) | (0.05 | ) | |||||||||||||
Gross profit per pound | $ | 0.23 | $ | 0.24 | |||||||||||||
Reconciliation to Amounts Reported | Depreciation, | ||||||||||||||||
Production | Depletion and | ||||||||||||||||
(In millions) | Revenues | and Delivery | Amortization | ||||||||||||||
Totals presented above | $ | 1,521 | $ | 1,000 | $ | 236 | |||||||||||
Treatment charges | (100 | ) | — | — | |||||||||||||
Royalty on metals | (2 | ) | — | — | |||||||||||||
Noncash and other costs, net | — | 21 | b | — | |||||||||||||
Revenue adjustments, primarily for pricing | |||||||||||||||||
on prior period open sales | (29 | ) | — | — | |||||||||||||
Eliminations and other | (13 | ) | (17 | ) | — | ||||||||||||
South America mining | 1,377 | 1,004 | 236 | ||||||||||||||
Other mining & eliminationsc | 9,110 | 6,785 | 1,005 | ||||||||||||||
Total mining | 10,487 | 7,789 | 1,241 | ||||||||||||||
U.S. oil & gas operations | 1,594 | 857 | 10,735 | d | |||||||||||||
Corporate, other & eliminations | 1 | 7 | 183 | d | |||||||||||||
As reported in FCX’s consolidated financial statements | $ | 12,082 | $ | 8,653 | $ | 12,159 | d |
a. | Includes silver sales of 1.2 million ounces ($14.58 per ounce average realized price). Also reflects sales of molybdenum produced by Cerro Verde to FCX's molybdenum sales company at market-based pricing. |
b. | Includes restructuring charges totaling $11 million ($0.02 per pound). |
c. | Represents the combined total for all other mining operations and the related eliminations, as presented in the supplemental schedule, “Business Segments,” beginning on page VII. |
d. | Includes impairment of oil and gas properties totaling $9.4 billion, $9.3 billion for U.S. oil and gas operations and $0.2 billion for Morocco. |
FREEPORT-McMoRan INC. | |||||||||||||||||
PRODUCT REVENUES AND PRODUCTION COSTS (continued) | |||||||||||||||||
South America Mining Product Revenues, Production Costs and Unit Net Cash Costs | |||||||||||||||||
Nine Months Ended September 30, 2014 | |||||||||||||||||
By-Product | Co-Product Method | ||||||||||||||||
(In millions) | Method | Copper | Othera | Total | |||||||||||||
Revenues, excluding adjustments | $ | 2,775 | $ | 2,775 | $ | 227 | $ | 3,002 | |||||||||
Site production and delivery, before net noncash | |||||||||||||||||
and other costs shown below | 1,424 | 1,317 | 122 | 1,439 | |||||||||||||
By-product credits | (212 | ) | — | — | — | ||||||||||||
Treatment charges | 151 | 151 | — | 151 | |||||||||||||
Royalty on metals | 4 | 4 | — | 4 | |||||||||||||
Net cash costs | 1,367 | b | 1,472 | 122 | 1,594 | ||||||||||||
Depreciation, depletion and amortization | 284 | 266 | 18 | 284 | |||||||||||||
Noncash and other costs, net | 57 | 53 | 4 | 57 | |||||||||||||
Total costs | 1,708 | 1,791 | 144 | 1,935 | |||||||||||||
Revenue adjustments, primarily for pricing | |||||||||||||||||
on prior period open sales | (66 | ) | (66 | ) | — | (66 | ) | ||||||||||
Gross profit | $ | 1,001 | $ | 918 | $ | 83 | $ | 1,001 | |||||||||
Copper sales (millions of recoverable pounds) | 888 | b | 888 | ||||||||||||||
Gross profit per pound of copper: | |||||||||||||||||
Revenues, excluding adjustments | $ | 3.12 | $ | 3.12 | |||||||||||||
Site production and delivery, before net noncash | |||||||||||||||||
and other costs shown below | 1.61 | 1.49 | |||||||||||||||
By-product credits | (0.24 | ) | — | ||||||||||||||
Treatment charges | 0.17 | 0.17 | |||||||||||||||
Royalty on metals | — | — | |||||||||||||||
Unit net cash costs | 1.54 | b | 1.66 | ||||||||||||||
Depreciation, depletion and amortization | 0.32 | 0.30 | |||||||||||||||
Noncash and other costs, net | 0.06 | 0.06 | |||||||||||||||
Total unit costs | 1.92 | 2.02 | |||||||||||||||
Revenue adjustments, primarily for pricing | |||||||||||||||||
on prior period open sales | (0.07 | ) | (0.07 | ) | |||||||||||||
Gross profit per pound | $ | 1.13 | $ | 1.03 | |||||||||||||
Reconciliation to Amounts Reported | Depreciation, | ||||||||||||||||
Production | Depletion and | ||||||||||||||||
(In millions) | Revenues | and Delivery | Amortization | ||||||||||||||
Totals presented above | $ | 3,002 | $ | 1,439 | $ | 284 | |||||||||||
Treatment charges | (151 | ) | — | — | |||||||||||||
Royalty on metals | (4 | ) | — | — | |||||||||||||
Noncash and other costs, net | — | 57 | — | ||||||||||||||
Revenue adjustments, primarily for pricing | |||||||||||||||||
on prior period open sales | (66 | ) | — | — | |||||||||||||
Eliminations and other | (5 | ) | (19 | ) | — | ||||||||||||
South America mining | 2,776 | 1,477 | 284 | ||||||||||||||
Other mining & eliminationsc | 9,940 | 6,583 | 894 | ||||||||||||||
Total mining | 12,716 | 8,060 | 1,178 | ||||||||||||||
U.S. oil & gas operations | 3,487 | 913 | 2,044 | d | |||||||||||||
Corporate, other & eliminations | — | (2 | ) | 10 | |||||||||||||
As reported in FCX’s consolidated financial statements | $ | 16,203 | $ | 8,971 | $ | 3,232 | d |
a. | Includes gold sales of 59 thousand ounces ($1,280 per ounce average realized price) and silver sales of 2.2 million ounces ($19.10 per ounce average realized price). Also reflects sales of molybdenum produced by Cerro Verde to FCX's molybdenum sales company at market-based pricing. |
Net Cash Costs (in millions) | Copper Sales (millions of recoverable pounds) | Unit Net Cash Costs (per pound of copper) | |||||||||
Presented above | $ | 1,367 | 888 | $ | 1.54 | ||||||
Less: Candelaria/Ojos | 375 | 236 | |||||||||
$ | 992 | 652 | $ | 1.52 |
c. | Represents the combined total for all other mining operations and the related eliminations, as presented in the supplemental schedule, “Business Segments,” beginning on page VII. |
d. | Includes impairment of U.S. oil and gas properties of $308 million. |
FREEPORT-McMoRan INC. | |||||||||||||||||||
PRODUCT REVENUES AND PRODUCTION COSTS (continued) | |||||||||||||||||||
Indonesia Mining Product Revenues, Production Costs and Unit Net Cash Costs | |||||||||||||||||||
Three Months Ended September 30, 2015 | |||||||||||||||||||
By-Product | Co-Product Method | ||||||||||||||||||
(In millions) | Method | Copper | Gold | Silvera | Total | ||||||||||||||
Revenues, excluding adjustments | $ | 466 | $ | 466 | $ | 319 | $ | 8 | $ | 793 | |||||||||
Site production and delivery, before net noncash | |||||||||||||||||||
and other costs shown below | 429 | 252 | 173 | 4 | 429 | ||||||||||||||
Gold and silver credits | (316 | ) | — | — | — | — | |||||||||||||
Treatment charges | 61 | 36 | 25 | — | 61 | ||||||||||||||
Export duties | 35 | 20 | 14 | 1 | 35 | ||||||||||||||
Royalty on metals | 25 | 15 | 10 | — | 25 | ||||||||||||||
Net cash costs | 234 | 323 | 222 | 5 | 550 | ||||||||||||||
Depreciation and amortization | 90 | 53 | 36 | 1 | 90 | ||||||||||||||
Noncash and other costs, net | 4 | 2 | 1 | 1 | 4 | ||||||||||||||
Total costs | 328 | 378 | 259 | 7 | 644 | ||||||||||||||
Revenue adjustments, primarily for pricing on | |||||||||||||||||||
prior period open sales | (52 | ) | (52 | ) | (11 | ) | — | (63 | ) | ||||||||||
PT Smelting intercompany profit | 16 | 9 | 7 | — | 16 | ||||||||||||||
Gross profit | $ | 102 | $ | 45 | $ | 56 | $ | 1 | $ | 102 | |||||||||
Copper sales (millions of recoverable pounds) | 198 | 198 | |||||||||||||||||
Gold sales (thousands of recoverable ounces) | 285 | ||||||||||||||||||
Gross profit per pound of copper/per ounce of gold: | |||||||||||||||||||
Revenues, excluding adjustments | $ | 2.35 | $ | 2.35 | $ | 1,117 | |||||||||||||
Site production and delivery, before net noncash | |||||||||||||||||||
and other costs shown below | 2.16 | 1.28 | 604 | ||||||||||||||||
Gold and silver credits | (1.59 | ) | — | — | |||||||||||||||
Treatment charges | 0.31 | 0.18 | 86 | ||||||||||||||||
Export duties | 0.17 | 0.10 | 49 | ||||||||||||||||
Royalty on metals | 0.13 | 0.07 | 35 | ||||||||||||||||
Unit net cash costs | 1.18 | 1.63 | 774 | ||||||||||||||||
Depreciation and amortization | 0.45 | 0.27 | 127 | ||||||||||||||||
Noncash and other costs, net | 0.02 | 0.01 | 5 | ||||||||||||||||
Total unit costs | 1.65 | 1.91 | 906 | ||||||||||||||||
Revenue adjustments, primarily for pricing on | |||||||||||||||||||
prior period open sales | (0.26 | ) | (0.26 | ) | (38 | ) | |||||||||||||
PT Smelting intercompany profit | 0.08 | 0.05 | 23 | ||||||||||||||||
Gross profit per pound/ounce | $ | 0.52 | $ | 0.23 | $ | 196 | |||||||||||||
Reconciliation to Amounts Reported | Depreciation, | ||||||||||||||||||
Production | Depletion and | ||||||||||||||||||
(In millions) | Revenues | and Delivery | Amortization | ||||||||||||||||
Totals presented above | $ | 793 | $ | 429 | $ | 90 | |||||||||||||
Treatment charges | (61 | ) | — | — | |||||||||||||||
Export duties | (35 | ) | — | — | |||||||||||||||
Royalty on metals | (25 | ) | — | — | |||||||||||||||
Noncash and other costs, net | — | 4 | — | ||||||||||||||||
Revenue adjustments, primarily for pricing on | |||||||||||||||||||
prior period open sales | (63 | ) | — | — | |||||||||||||||
PT Smelting intercompany profit | — | (16 | ) | — | |||||||||||||||
Indonesia mining | 609 | 417 | 90 | ||||||||||||||||
Other mining & eliminationsb | 2,546 | 2,181 | 344 | ||||||||||||||||
Total mining | 3,155 | 2,598 | 434 | ||||||||||||||||
U.S. oil & gas operations | 525 | 293 | 3,930 | c | |||||||||||||||
Corporate, other & eliminations | 1 | 2 | 176 | c | |||||||||||||||
As reported in FCX’s consolidated financial statements | $ | 3,681 | $ | 2,893 | $ | 4,540 | c |
FREEPORT-McMoRan INC. | |||||||||||||||||||
PRODUCT REVENUES AND PRODUCTION COSTS (continued) | |||||||||||||||||||
Indonesia Mining Product Revenues, Production Costs and Unit Net Cash Costs | |||||||||||||||||||
Three Months Ended September 30, 2014 | |||||||||||||||||||
By-Product | Co-Product Method | ||||||||||||||||||
(In millions) | Method | Copper | Gold | Silvera | Total | ||||||||||||||
Revenues, excluding adjustments | $ | 786 | $ | 786 | $ | 615 | $ | 15 | $ | 1,416 | |||||||||
Site production and delivery, before net noncash | |||||||||||||||||||
and other costs shown below | 624 | 346 | 271 | 7 | 624 | ||||||||||||||
Gold and silver credits | (629 | ) | — | — | — | — | |||||||||||||
Treatment charges | 65 | 36 | 28 | 1 | 65 | ||||||||||||||
Export duties | 42 | 23 | 18 | 1 | 42 | ||||||||||||||
Royalty on metals | 52 | 29 | 23 | — | 52 | ||||||||||||||
Net cash costs | 154 | 434 | 340 | 9 | 783 | ||||||||||||||
Depreciation and amortization | 92 | 51 | 40 | 1 | 92 | ||||||||||||||
Noncash and other costs, net | 28 | 16 | 12 | — | 28 | ||||||||||||||
Total costs | 274 | 501 | 392 | 10 | 903 | ||||||||||||||
Revenue adjustments, primarily for pricing on | |||||||||||||||||||
prior period open sales | (3 | ) | (3 | ) | (1 | ) | — | (4 | ) | ||||||||||
PT Smelting intercompany loss | (48 | ) | (27 | ) | (21 | ) | — | (48 | ) | ||||||||||
Gross profit | $ | 461 | $ | 255 | $ | 201 | $ | 5 | $ | 461 | |||||||||
Copper sales (millions of recoverable pounds) | 258 | 258 | |||||||||||||||||
Gold sales (thousands of recoverable ounces) | 505 | ||||||||||||||||||
Gross profit per pound of copper/per ounce of gold: | |||||||||||||||||||
Revenues, excluding adjustments | $ | 3.05 | $ | 3.05 | $ | 1,219 | |||||||||||||
Site production and delivery, before net noncash | |||||||||||||||||||
and other costs shown below | 2.42 | 1.34 | 537 | ||||||||||||||||
Gold and silver credits | (2.44 | ) | — | — | |||||||||||||||
Treatment charges | 0.25 | 0.14 | 56 | ||||||||||||||||
Export duties | 0.16 | 0.09 | 36 | ||||||||||||||||
Royalty on metals | 0.21 | 0.12 | 45 | ||||||||||||||||
Unit net cash costs | 0.60 | 1.69 | 674 | ||||||||||||||||
Depreciation and amortization | 0.35 | 0.20 | 79 | ||||||||||||||||
Noncash and other costs, net | 0.11 | 0.06 | 24 | ||||||||||||||||
Total unit costs | 1.06 | 1.95 | 777 | ||||||||||||||||
Revenue adjustments, primarily for pricing on | |||||||||||||||||||
prior period open sales | (0.01 | ) | (0.01 | ) | (1 | ) | |||||||||||||
PT Smelting intercompany loss | (0.19 | ) | (0.10 | ) | (42 | ) | |||||||||||||
Gross profit per pound/ounce | $ | 1.79 | $ | 0.99 | $ | 399 | |||||||||||||
Reconciliation to Amounts Reported | Depreciation, | ||||||||||||||||||
Production | Depletion and | ||||||||||||||||||
(In millions) | Revenues | and Delivery | Amortization | ||||||||||||||||
Totals presented above | $ | 1,416 | $ | 624 | $ | 92 | |||||||||||||
Treatment charges | (65 | ) | — | — | |||||||||||||||
Export duties | (42 | ) | — | — | |||||||||||||||
Royalty on metals | (52 | ) | — | — | |||||||||||||||
Noncash and other costs, net | — | 28 | — | ||||||||||||||||
Revenue adjustments, primarily for pricing on | |||||||||||||||||||
prior period open sales | (4 | ) | — | — | |||||||||||||||
PT Smelting intercompany loss | — | 48 | — | ||||||||||||||||
Indonesia mining | 1,253 | 700 | 92 | ||||||||||||||||
Other mining & eliminationsb | 3,453 | 2,180 | 346 | ||||||||||||||||
Total mining | 4,706 | 2,880 | 438 | ||||||||||||||||
U.S. oil & gas operations | 990 | 273 | 812 | c | |||||||||||||||
Corporate, other & eliminations | — | (1 | ) | 3 | |||||||||||||||
As reported in FCX’s consolidated financial statements | $ | 5,696 | $ | 3,152 | $ | 1,253 | c |
b. Represents the combined total for all other mining operations and the related eliminations, as presented in the supplemental schedule, | “Business Segments,” beginning on page VII. |
FREEPORT-McMoRan INC. | |||||||||||||||||||
PRODUCT REVENUES AND PRODUCTION COSTS (continued) | |||||||||||||||||||
Indonesia Mining Product Revenues, Production Costs and Unit Net Cash Costs | |||||||||||||||||||
Nine Months Ended September 30, 2015 | |||||||||||||||||||
By-Product | Co-Product Method | ||||||||||||||||||
(In millions) | Method | Copper | Gold | Silvera | Total | ||||||||||||||
Revenues, excluding adjustments | $ | 1,345 | $ | 1,345 | $ | 1,024 | $ | 24 | $ | 2,393 | |||||||||
Site production and delivery, before net noncash | |||||||||||||||||||
and other costs shown below | 1,311 | 736 | 562 | 13 | 1,311 | ||||||||||||||
Gold and silver credits | (1,057 | ) | — | — | — | — | |||||||||||||
Treatment charges | 169 | 95 | 72 | 2 | 169 | ||||||||||||||
Export duties | 92 | 52 | 39 | 1 | 92 | ||||||||||||||
Royalty on metals | 85 | 48 | 37 | — | 85 | ||||||||||||||
Net cash costs | 600 | 931 | 710 | 16 | 1,657 | ||||||||||||||
Depreciation and amortization | 238 | 134 | 102 | 2 | 238 | ||||||||||||||
Noncash and other costs, net | 19 | 11 | 8 | — | 19 | ||||||||||||||
Total costs | 857 | 1,076 | 820 | 18 | 1,914 | ||||||||||||||
Revenue adjustments, primarily for pricing on | |||||||||||||||||||
prior period open sales | (50 | ) | (50 | ) | 9 | — | (41 | ) | |||||||||||
PT Smelting intercompany profit | 19 | 11 | 8 | — | 19 | ||||||||||||||
Gross profit | $ | 457 | $ | 230 | $ | 221 | $ | 6 | $ | 457 | |||||||||
Copper sales (millions of recoverable pounds) | 549 | 549 | |||||||||||||||||
Gold sales (thousands of recoverable ounces) | 891 | ||||||||||||||||||
Gross profit per pound of copper/per ounce of gold: | |||||||||||||||||||
Revenues, excluding adjustments | $ | 2.45 | $ | 2.45 | $ | 1,149 | |||||||||||||
Site production and delivery, before net noncash | |||||||||||||||||||
and other costs shown below | 2.39 | 1.34 | 630 | ||||||||||||||||
Gold and silver credits | (1.93 | ) | — | — | |||||||||||||||
Treatment charges | 0.31 | 0.17 | 81 | ||||||||||||||||
Export duties | 0.16 | 0.10 | 44 | ||||||||||||||||
Royalty on metals | 0.16 | 0.09 | 41 | ||||||||||||||||
Unit net cash costs | 1.09 | 1.70 | 796 | ||||||||||||||||
Depreciation and amortization | 0.43 | 0.24 | 114 | ||||||||||||||||
Noncash and other costs, net | 0.04 | 0.02 | 10 | ||||||||||||||||
Total unit costs | 1.56 | 1.96 | 920 | ||||||||||||||||
Revenue adjustments, primarily for pricing on | |||||||||||||||||||
prior period open sales | (0.09 | ) | (0.09 | ) | 10 | ||||||||||||||
PT Smelting intercompany profit | 0.03 | 0.02 | 9 | ||||||||||||||||
Gross profit per pound/ounce | $ | 0.83 | $ | 0.42 | $ | 248 | |||||||||||||
Reconciliation to Amounts Reported | Depreciation, | ||||||||||||||||||
Production | Depletion and | ||||||||||||||||||
(In millions) | Revenues | and Delivery | Amortization | ||||||||||||||||
Totals presented above | $ | 2,393 | $ | 1,311 | $ | 238 | |||||||||||||
Treatment charges | (169 | ) | — | — | |||||||||||||||
Export duties | (92 | ) | — | — | |||||||||||||||
Royalty on metals | (85 | ) | — | — | |||||||||||||||
Noncash and other costs, net | — | 19 | — | ||||||||||||||||
Revenue adjustments, primarily for pricing on | |||||||||||||||||||
prior period open sales | (41 | ) | — | — | |||||||||||||||
PT Smelting intercompany profit | — | (19 | ) | — | |||||||||||||||
Indonesia mining | 2,006 | 1,311 | 238 | ||||||||||||||||
Other mining & eliminationsb | 8,481 | 6,478 | 1,003 | ||||||||||||||||
Total mining | 10,487 | 7,789 | 1,241 | ||||||||||||||||
U.S. oil & gas operations | 1,594 | 857 | 10,735 | c | |||||||||||||||
Corporate, other & eliminations | 1 | 7 | 183 | c | |||||||||||||||
As reported in FCX’s consolidated financial statements | $ | 12,082 | $ | 8,653 | $ | 12,159 | c |
FREEPORT-McMoRan INC. | |||||||||||||||||||
PRODUCT REVENUES AND PRODUCTION COSTS (continued) | |||||||||||||||||||
Indonesia Mining Product Revenues, Production Costs and Unit Net Cash Costs | |||||||||||||||||||
Nine Months Ended September 30, 2014 | |||||||||||||||||||
By-Product | Co-Product Method | ||||||||||||||||||
(In millions) | Method | Copper | Gold | Silvera | Total | ||||||||||||||
Revenues, excluding adjustments | $ | 1,495 | $ | 1,495 | $ | 1,001 | $ | 29 | $ | 2,525 | |||||||||
Site production and delivery, before net noncash | |||||||||||||||||||
and other costs shown below | 1,404 | 831 | 557 | 16 | 1,404 | ||||||||||||||
Gold and silver credits | (1,048 | ) | — | — | — | — | |||||||||||||
Treatment charges | 121 | 72 | 48 | 1 | 121 | ||||||||||||||
Export duties | 42 | 25 | 16 | 1 | 42 | ||||||||||||||
Royalty on metals | 79 | 47 | 31 | 1 | 79 | ||||||||||||||
Net cash costs | 598 | 975 | 652 | 19 | 1,646 | ||||||||||||||
Depreciation and amortization | 194 | 115 | 77 | 2 | 194 | ||||||||||||||
Noncash and other costs, net | 200 | b | 118 | 80 | 2 | 200 | |||||||||||||
Total costs | 992 | 1,208 | 809 | 23 | 2,040 | ||||||||||||||
Revenue adjustments, primarily for pricing on | |||||||||||||||||||
prior period open sales | (55 | ) | (55 | ) | 18 | — | (37 | ) | |||||||||||
PT Smelting intercompany profit | 10 | 6 | 4 | — | 10 | ||||||||||||||
Gross profit | $ | 458 | $ | 238 | $ | 214 | $ | 6 | $ | 458 | |||||||||
Copper sales (millions of recoverable pounds) | 484 | 484 | |||||||||||||||||
Gold sales (thousands of recoverable ounces) | 802 | ||||||||||||||||||
Gross profit per pound of copper/per ounce of gold: | |||||||||||||||||||
Revenues, excluding adjustments | $ | 3.09 | $ | 3.09 | $ | 1,248 | |||||||||||||
Site production and delivery, before net noncash | |||||||||||||||||||
and other costs shown below | 2.90 | 1.72 | 694 | ||||||||||||||||
Gold and silver credits | (2.16 | ) | — | — | |||||||||||||||
Treatment charges | 0.25 | 0.15 | 60 | ||||||||||||||||
Export duties | 0.09 | 0.05 | 21 | ||||||||||||||||
Royalty on metals | 0.16 | 0.09 | 39 | ||||||||||||||||
Unit net cash costs | 1.24 | 2.01 | 814 | ||||||||||||||||
Depreciation and amortization | 0.40 | 0.24 | 96 | ||||||||||||||||
Noncash and other costs, net | 0.41 | b | 0.25 | 98 | |||||||||||||||
Total unit costs | 2.05 | 2.50 | 1,008 | ||||||||||||||||
Revenue adjustments, primarily for pricing on | |||||||||||||||||||
prior period open sales | (0.11 | ) | (0.11 | ) | 22 | ||||||||||||||
PT Smelting intercompany profit | 0.02 | 0.01 | 5 | ||||||||||||||||
Gross profit per pound/ounce | $ | 0.95 | $ | 0.49 | $ | 267 | |||||||||||||
Reconciliation to Amounts Reported | Depreciation, | ||||||||||||||||||
Production | Depletion and | ||||||||||||||||||
(In millions) | Revenues | and Delivery | Amortization | ||||||||||||||||
Totals presented above | $ | 2,525 | $ | 1,404 | $ | 194 | |||||||||||||
Treatment charges | (121 | ) | — | — | |||||||||||||||
Export duties | (42 | ) | — | — | |||||||||||||||
Royalty on metals | (79 | ) | — | — | |||||||||||||||
Noncash and other costs, net | — | 200 | b | — | |||||||||||||||
Revenue adjustments, primarily for pricing on | |||||||||||||||||||
prior period open sales | (37 | ) | — | — | |||||||||||||||
PT Smelting intercompany profit | — | (10 | ) | — | |||||||||||||||
Indonesia mining | 2,246 | 1,594 | 194 | ||||||||||||||||
Other mining & eliminationsc | 10,470 | 6,466 | 984 | ||||||||||||||||
Total mining | 12,716 | 8,060 | 1,178 | ||||||||||||||||
U.S. oil & gas operations | 3,487 | 913 | 2,044 | d | |||||||||||||||
Corporate, other & eliminations | — | (2 | ) | 10 | |||||||||||||||
As reported in FCX’s consolidated financial statements | $ | 16,203 | $ | 8,971 | $ | 3,232 | d |
FREEPORT-McMoRan INC. | |||||||||||||||||
PRODUCT REVENUES AND PRODUCTION COSTS (continued) | |||||||||||||||||
Africa Mining Product Revenues, Production Costs and Unit Net Cash Costs | |||||||||||||||||
Three Months Ended September 30, 2015 | |||||||||||||||||
By-Product | Co-Product Method | ||||||||||||||||
(In millions) | Method | Copper | Cobalt | Total | |||||||||||||
Revenues, excluding adjustmentsa | $ | 261 | $ | 261 | $ | 84 | $ | 345 | |||||||||
Site production and delivery, before net noncash | |||||||||||||||||
and other costs shown below | 184 | 153 | 53 | 206 | |||||||||||||
Cobalt creditsb | (60 | ) | — | — | — | ||||||||||||
Royalty on metals | 6 | 5 | 1 | 6 | |||||||||||||
Net cash costs | 130 | 158 | 54 | 212 | |||||||||||||
Depreciation, depletion and amortization | 65 | 50 | 15 | 65 | |||||||||||||
Noncash and other costs, net | 3 | 3 | — | 3 | |||||||||||||
Total costs | 198 | 211 | 69 | 280 | |||||||||||||
Revenue adjustments, primarily for pricing | |||||||||||||||||
on prior period open sales | (9 | ) | (9 | ) | (2 | ) | (11 | ) | |||||||||
Gross profit | $ | 54 | $ | 41 | $ | 13 | $ | 54 | |||||||||
Copper sales (millions of recoverable pounds) | 113 | 113 | |||||||||||||||
Cobalt sales (millions of contained pounds) | 10 | ||||||||||||||||
Gross profit per pound of copper/cobalt: | |||||||||||||||||
Revenues, excluding adjustmentsa | $ | 2.32 | $ | 2.32 | $ | 8.96 | |||||||||||
Site production and delivery, before net noncash | |||||||||||||||||
and other costs shown below | 1.63 | 1.36 | 5.58 | ||||||||||||||
Cobalt creditsb | (0.53 | ) | — | — | |||||||||||||
Royalty on metals | 0.05 | 0.04 | 0.15 | ||||||||||||||
Unit net cash costs | 1.15 | 1.40 | 5.73 | ||||||||||||||
Depreciation, depletion and amortization | 0.58 | 0.45 | 1.52 | ||||||||||||||
Noncash and other costs, net | 0.03 | 0.03 | 0.08 | ||||||||||||||
Total unit costs | 1.76 | 1.88 | 7.33 | ||||||||||||||
Revenue adjustments, primarily for pricing | |||||||||||||||||
on prior period open sales | (0.08 | ) | (0.08 | ) | (0.25 | ) | |||||||||||
Gross profit per pound | $ | 0.48 | $ | 0.36 | $ | 1.38 | |||||||||||
Reconciliation to Amounts Reported | Depreciation, | ||||||||||||||||
Production | Depletion and | ||||||||||||||||
(In millions) | Revenues | and Delivery | Amortization | ||||||||||||||
Totals presented above | $ | 345 | $ | 206 | $ | 65 | |||||||||||
Royalty on metals | (6 | ) | — | — | |||||||||||||
Noncash and other costs, net | — | 3 | — | ||||||||||||||
Revenue adjustments, primarily for pricing | |||||||||||||||||
on prior period open sales | (11 | ) | — | — | |||||||||||||
Africa mining | 328 | 209 | 65 | ||||||||||||||
Other mining & eliminationsc | 2,827 | 2,389 | 369 | ||||||||||||||
Total mining | 3,155 | 2,598 | 434 | ||||||||||||||
U.S. oil & gas operations | 525 | 293 | 3,930 | d | |||||||||||||
Corporate, other & eliminations | 1 | 2 | 176 | d | |||||||||||||
As reported in FCX’s consolidated financial statements | $ | 3,681 | $ | 2,893 | $ | 4,540 | d |
a. | Includes point-of-sale transportation costs as negotiated in customer contracts. |
b. | Net of cobalt downstream processing and freight costs. |
c. | Represents the combined total for all other mining operations and the related eliminations, as presented in the supplemental schedule, “Business Segments,” beginning on page VII. |
d. | Includes impairment of oil and gas properties totaling $3.7 billion, $3.5 billion for U.S. oil and gas operations and $0.2 billion for Morocco. |
FREEPORT-McMoRan INC. | |||||||||||||||||
PRODUCT REVENUES AND PRODUCTION COSTS (continued) | |||||||||||||||||
Africa Mining Product Revenues, Production Costs and Unit Net Cash Costs | |||||||||||||||||
Three Months Ended September 30, 2014 | |||||||||||||||||
By-Product | Co-Product Method | ||||||||||||||||
(In millions) | Method | Copper | Cobalt | Total | |||||||||||||
Revenues, excluding adjustmentsa | $ | 350 | $ | 350 | $ | 82 | $ | 432 | |||||||||
Site production and delivery, before net noncash | |||||||||||||||||
and other costs shown below | 181 | 158 | 44 | 202 | |||||||||||||
Cobalt creditsb | (64 | ) | — | — | — | ||||||||||||
Royalty on metals | 8 | 6 | 2 | 8 | |||||||||||||
Net cash costs | 125 | 164 | 46 | 210 | |||||||||||||
Depreciation, depletion and amortization | 58 | 49 | 9 | 58 | |||||||||||||
Noncash and other costs, net | 4 | 4 | — | 4 | |||||||||||||
Total costs | 187 | 217 | 55 | 272 | |||||||||||||
Revenue adjustments, primarily for pricing | |||||||||||||||||
on prior period open sales | 1 | 1 | 3 | 4 | |||||||||||||
Gross profit | $ | 164 | $ | 134 | $ | 30 | $ | 164 | |||||||||
Copper sales (millions of recoverable pounds) | 112 | 112 | |||||||||||||||
Cobalt sales (millions of contained pounds) | 8 | ||||||||||||||||
Gross profit per pound of copper/cobalt: | |||||||||||||||||
Revenues, excluding adjustmentsa | $ | 3.11 | $ | 3.11 | $ | 9.99 | |||||||||||
Site production and delivery, before net noncash | |||||||||||||||||
and other costs shown below | 1.61 | 1.40 | 5.32 | ||||||||||||||
Cobalt creditsb | (0.58 | ) | — | — | |||||||||||||
Royalty on metals | 0.07 | 0.06 | 0.18 | ||||||||||||||
Unit net cash costs | 1.10 | 1.46 | 5.50 | ||||||||||||||
Depreciation, depletion and amortization | 0.51 | 0.43 | 1.06 | ||||||||||||||
Noncash and other costs, net | 0.05 | 0.04 | 0.10 | ||||||||||||||
Total unit costs | 1.66 | 1.93 | 6.66 | ||||||||||||||
Revenue adjustments, primarily for pricing | |||||||||||||||||
on prior period open sales | 0.01 | 0.01 | 0.39 | ||||||||||||||
Gross profit per pound | $ | 1.46 | $ | 1.19 | $ | 3.72 | |||||||||||
Reconciliation to Amounts Reported | Depreciation, | ||||||||||||||||
Production | Depletion and | ||||||||||||||||
(In millions) | Revenues | and Delivery | Amortization | ||||||||||||||
Totals presented above | $ | 432 | $ | 202 | $ | 58 | |||||||||||
Royalty on metals | (8 | ) | — | — | |||||||||||||
Noncash and other costs, net | — | 4 | — | ||||||||||||||
Revenue adjustments, primarily for pricing | |||||||||||||||||
on prior period open sales | 4 | — | — | ||||||||||||||
Africa mining | 428 | 206 | 58 | ||||||||||||||
Other mining & eliminationsc | 4,278 | 2,674 | 380 | ||||||||||||||
Total mining | 4,706 | 2,880 | 438 | ||||||||||||||
U.S. oil & gas operations | 990 | 273 | 812 | d | |||||||||||||
Corporate, other & eliminations | — | (1 | ) | 3 | |||||||||||||
As reported in FCX’s consolidated financial statements | $ | 5,696 | $ | 3,152 | $ | 1,253 | d |
a. | Includes point-of-sale transportation costs as negotiated in customer contracts. |
b. | Net of cobalt downstream processing and freight costs. |
c. | Represents the combined total for all other mining operations and the related eliminations, as presented in the supplemental schedule, “Business Segments,” beginning on page VII. |
d. | Includes impairment of U.S. oil and gas properties of $308 million. |
FREEPORT-McMoRan INC. | |||||||||||||||||
PRODUCT REVENUES AND PRODUCTION COSTS (continued) | |||||||||||||||||
Africa Mining Product Revenues, Production Costs and Unit Net Cash Costs | |||||||||||||||||
Nine Months Ended September 30, 2015 | |||||||||||||||||
By-Product | Co-Product Method | ||||||||||||||||
(In millions) | Method | Copper | Cobalt | Total | |||||||||||||
Revenues, excluding adjustmentsa | $ | 883 | $ | 883 | $ | 234 | $ | 1,117 | |||||||||
Site production and delivery, before net noncash | |||||||||||||||||
and other costs shown below | 553 | 479 | 144 | 623 | |||||||||||||
Cobalt creditsb | (164 | ) | — | — | — | ||||||||||||
Royalty on metals | 21 | 16 | 5 | 21 | |||||||||||||
Net cash costs | 410 | 495 | 149 | 644 | |||||||||||||
Depreciation, depletion and amortization | 195 | 160 | 35 | 195 | |||||||||||||
Noncash and other costs, net | 11 | 9 | 2 | 11 | |||||||||||||
Total costs | 616 | 664 | 186 | 850 | |||||||||||||
Revenue adjustments, primarily for pricing | |||||||||||||||||
on prior period open sales | (7 | ) | (7 | ) | — | (7 | ) | ||||||||||
Gross profit | $ | 260 | $ | 212 | $ | 48 | $ | 260 | |||||||||
Copper sales (millions of recoverable pounds) | 350 | 350 | |||||||||||||||
Cobalt sales (millions of contained pounds) | 26 | ||||||||||||||||
Gross profit per pound of copper/cobalt: | |||||||||||||||||
Revenues, excluding adjustmentsa | $ | 2.52 | $ | 2.52 | $ | 9.04 | |||||||||||
Site production and delivery, before net noncash | |||||||||||||||||
and other costs shown below | 1.58 | 1.37 | 5.56 | ||||||||||||||
Cobalt creditsb | (0.47 | ) | — | — | |||||||||||||
Royalty on metals | 0.06 | 0.04 | 0.15 | ||||||||||||||
Unit net cash costs | 1.17 | 1.41 | 5.71 | ||||||||||||||
Depreciation, depletion and amortization | 0.56 | 0.45 | 1.38 | ||||||||||||||
Noncash and other costs, net | 0.03 | 0.03 | 0.08 | ||||||||||||||
Total unit costs | 1.76 | 1.89 | 7.17 | ||||||||||||||
Revenue adjustments, primarily for pricing | |||||||||||||||||
on prior period open sales | (0.02 | ) | (0.02 | ) | (0.02 | ) | |||||||||||
Gross profit per pound | $ | 0.74 | $ | 0.61 | $ | 1.85 | |||||||||||
Reconciliation to Amounts Reported | Depreciation, | ||||||||||||||||
Production | Depletion and | ||||||||||||||||
(In millions) | Revenues | and Delivery | Amortization | ||||||||||||||
Totals presented above | $ | 1,117 | $ | 623 | $ | 195 | |||||||||||
Royalty on metals | (21 | ) | — | — | |||||||||||||
Noncash and other costs, net | — | 11 | — | ||||||||||||||
Revenue adjustments, primarily for pricing | |||||||||||||||||
on prior period open sales | (7 | ) | — | — | |||||||||||||
Africa mining | 1,089 | 634 | 195 | ||||||||||||||
Other mining & eliminationsc | 9,398 | 7,155 | 1,046 | ||||||||||||||
Total mining | 10,487 | 7,789 | 1,241 | ||||||||||||||
U.S. oil & gas operations | 1,594 | 857 | 10,735 | d | |||||||||||||
Corporate, other & eliminations | 1 | 7 | 183 | d | |||||||||||||
As reported in FCX’s consolidated financial statements | $ | 12,082 | $ | 8,653 | $ | 12,159 | d |
a. | Includes point-of-sale transportation costs as negotiated in customer contracts. |
b. | Net of cobalt downstream processing and freight costs. |
c. | Represents the combined total for all other mining operations and the related eliminations, as presented in the supplemental schedule, “Business Segments,” beginning on page VII. |
d. | Includes impairment of oil and gas properties totaling $9.4 billion, $9.3 billion for U.S. oil and gas operations and $0.2 billion for Morocco. |
FREEPORT-McMoRan INC. | |||||||||||||||||
PRODUCT REVENUES AND PRODUCTION COSTS (continued) | |||||||||||||||||
Africa Mining Product Revenues, Production Costs and Unit Net Cash Costs | |||||||||||||||||
Nine Months Ended September 30, 2014 | |||||||||||||||||
By-Product | Co-Product Method | ||||||||||||||||
(In millions) | Method | Copper | Cobalt | Total | |||||||||||||
Revenues, excluding adjustmentsa | $ | 972 | $ | 972 | $ | 222 | $ | 1,194 | |||||||||
Site production and delivery, before net noncash | |||||||||||||||||
and other costs shown below | 477 | 420 | 120 | 540 | |||||||||||||
Cobalt creditsb | (161 | ) | — | — | — | ||||||||||||
Royalty on metals | 22 | 18 | 4 | 22 | |||||||||||||
Net cash costs | 338 | 438 | 124 | 562 | |||||||||||||
Depreciation, depletion and amortization | 172 | 148 | 24 | 172 | |||||||||||||
Noncash and other costs, net | 16 | 14 | 2 | 16 | |||||||||||||
Total costs | 526 | 600 | 150 | 750 | |||||||||||||
Revenue adjustments, primarily for pricing | |||||||||||||||||
on prior period open sales | (1 | ) | (1 | ) | 2 | 1 | |||||||||||
Gross profit | $ | 445 | $ | 371 | $ | 74 | $ | 445 | |||||||||
Copper sales (millions of recoverable pounds) | 314 | 314 | |||||||||||||||
Cobalt sales (millions of contained pounds) | 23 | ||||||||||||||||
Gross profit per pound of copper/cobalt: | |||||||||||||||||
Revenues, excluding adjustmentsa | $ | 3.09 | $ | 3.09 | $ | 9.68 | |||||||||||
Site production and delivery, before net noncash | |||||||||||||||||
and other costs shown below | 1.51 | 1.33 | 5.24 | ||||||||||||||
Cobalt creditsb | (0.51 | ) | — | — | |||||||||||||
Royalty on metals | 0.07 | 0.06 | 0.16 | ||||||||||||||
Unit net cash costs | 1.07 | 1.39 | 5.40 | ||||||||||||||
Depreciation, depletion and amortization | 0.55 | 0.47 | 1.04 | ||||||||||||||
Noncash and other costs, net | 0.05 | 0.05 | 0.10 | ||||||||||||||
Total unit costs | 1.67 | 1.91 | 6.54 | ||||||||||||||
Revenue adjustments, primarily for pricing | |||||||||||||||||
on prior period open sales | — | — | 0.09 | ||||||||||||||
Gross profit per pound | $ | 1.42 | $ | 1.18 | $ | 3.23 | |||||||||||
Reconciliation to Amounts Reported | Depreciation, | ||||||||||||||||
Production | Depletion and | ||||||||||||||||
(In millions) | Revenues | and Delivery | Amortization | ||||||||||||||
Totals presented above | $ | 1,194 | $ | 540 | $ | 172 | |||||||||||
Royalty on metals | (22 | ) | — | — | |||||||||||||
Noncash and other costs, net | — | 16 | — | ||||||||||||||
Revenue adjustments, primarily for pricing | |||||||||||||||||
on prior period open sales | 1 | — | — | ||||||||||||||
Africa mining | 1,173 | 556 | 172 | ||||||||||||||
Other mining & eliminationsc | 11,543 | 7,504 | 1,006 | ||||||||||||||
Total mining | 12,716 | 8,060 | 1,178 | ||||||||||||||
U.S. oil & gas operations | 3,487 | 913 | 2,044 | d | |||||||||||||
Corporate, other & eliminations | — | (2 | ) | 10 | |||||||||||||
As reported in FCX’s consolidated financial statements | $ | 16,203 | $ | 8,971 | $ | 3,232 | d |
a. | Includes point-of-sale transportation costs as negotiated in customer contracts. |
b. | Net of cobalt downstream processing and freight costs. |
c. | Represents the combined total for all other mining operations and the related eliminations, as presented in the supplemental schedule, “Business Segments,” beginning on page VII. |
d. | Includes impairment of U.S. oil and gas properties of $308 million. |
FREEPORT-McMoRan INC. | ||||||||||||
PRODUCT REVENUES AND PRODUCTION COSTS (continued) | ||||||||||||
Molybdenum Mines Product Revenues, Production Costs and Unit Net Cash Costs | ||||||||||||
Three Months Ended September 30, | ||||||||||||
(In millions) | 2015 | 2014 | ||||||||||
Revenues, excluding adjustmentsa | $ | 94 | $ | 184 | ||||||||
Site production and delivery, before net noncash | ||||||||||||
and other costs shown below | 79 | 83 | ||||||||||
Treatment charges and other | 11 | 11 | ||||||||||
Net cash costs | 90 | 94 | ||||||||||
Depreciation, depletion and amortization | 26 | 25 | ||||||||||
Noncash and other costs, net | 7 | b | 3 | |||||||||
Total costs | 123 | 122 | ||||||||||
Gross (loss) profit | $ | (29 | ) | $ | 62 | |||||||
Molybdenum sales (millions of recoverable pounds)a | 13 | 13 | ||||||||||
Gross profit per pound of molybdenum: | ||||||||||||
Revenues, excluding adjustmentsa | $ | 7.23 | $ | 13.93 | ||||||||
Site production and delivery, before net noncash | ||||||||||||
and other costs shown below | 6.10 | 6.29 | ||||||||||
Treatment charges and other | 0.83 | 0.83 | ||||||||||
Unit net cash costs | 6.93 | 7.12 | ||||||||||
Depreciation, depletion and amortization | 2.00 | 1.89 | ||||||||||
Noncash and other costs, net | 0.61 | b | 0.21 | |||||||||
Total unit costs | 9.54 | 9.22 | ||||||||||
Gross (loss) profit per pound | $ | (2.31 | ) | $ | 4.71 | |||||||
Reconciliation to Amounts Reported | ||||||||||||
(In millions) | Depreciation, | |||||||||||
Production | Depletion and | |||||||||||
Three Months Ended September 30, 2015 | Revenues | and Delivery | Amortization | |||||||||
Totals presented above | $ | 94 | $ | 79 | $ | 26 | ||||||
Treatment charges and other | (11 | ) | — | — | ||||||||
Noncash and other costs, net | — | 7 | b | — | ||||||||
Molybdenum mines | 83 | 86 | 26 | |||||||||
Other mining & eliminationsc | 3,072 | 2,512 | 408 | |||||||||
Total mining | 3,155 | 2,598 | 434 | |||||||||
U.S. oil & gas operations | 525 | 293 | 3,930 | d | ||||||||
Corporate, other & eliminations | 1 | 2 | 176 | d | ||||||||
As reported in FCX’s consolidated financial statements | $ | 3,681 | $ | 2,893 | $ | 4,540 | d | |||||
Three Months Ended September 30, 2014 | ||||||||||||
Totals presented above | $ | 184 | $ | 83 | $ | 25 | ||||||
Treatment charges and other | (11 | ) | — | — | ||||||||
Noncash and other costs, net | — | 3 | — | |||||||||
Molybdenum mines | 173 | 86 | 25 | |||||||||
Other mining & eliminationsc | 4,533 | 2,794 | 413 | |||||||||
Total mining | 4,706 | 2,880 | 438 | |||||||||
U.S. oil & gas operations | 990 | 273 | 812 | e | ||||||||
Corporate, other & eliminations | — | (1 | ) | 3 | ||||||||
As reported in FCX’s consolidated financial statements | $ | 5,696 | $ | 3,152 | $ | 1,253 | e |
a. | Reflects sales of the Molybdenum mines' production to FCX's 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, FCX's consolidated average realized price per pound of molybdenum will differ from the amounts reported in this table. |
b. | Includes $5 million ($0.42 per pound) for inventory adjustments and restructuring charges. |
c. | Represents the combined total for all other mining operations and the related eliminations, as presented in the supplemental schedule, “Business Segments,” beginning on page VII. Also includes amounts associated with 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 impairment of oil and gas properties totaling $3.7 billion, $3.5 billion for U.S. oil and gas operations and $0.2 billion for Morocco. |
e. | Impairments of U.S. oil and gas properties totaling $308 million. |
FREEPORT-McMoRan INC. | |||||||||||||||
PRODUCT REVENUES AND PRODUCTION COSTS (continued) | |||||||||||||||
Molybdenum Mines Product Revenues, Production Costs and Unit Net Cash Costs | |||||||||||||||
Nine Months Ended September 30, | |||||||||||||||
(In millions) | 2015 | 2014 | |||||||||||||
Revenues, excluding adjustmentsa | $ | 330 | $ | 502 | |||||||||||
Site production and delivery, before net noncash | |||||||||||||||
and other costs shown below | 240 | 237 | |||||||||||||
Treatment charges and other | 32 | 33 | |||||||||||||
Net cash costs | 272 | 270 | |||||||||||||
Depreciation, depletion and amortization | 77 | 71 | |||||||||||||
Noncash and other costs, net | 13 | b | 6 | ||||||||||||
Total costs | 362 | 347 | |||||||||||||
Gross (loss) profit | $ | (32 | ) | $ | 155 | ||||||||||
Molybdenum sales (millions of recoverable pounds)a | 39 | 40 | |||||||||||||
Gross profit per pound of molybdenum: | |||||||||||||||
Revenues, excluding adjustmentsa | $ | 8.60 | $ | 12.56 | |||||||||||
Site production and delivery, before net noncash | |||||||||||||||
and other costs shown below | 6.26 | 5.92 | |||||||||||||
Treatment charges and other | 0.84 | 0.84 | |||||||||||||
Unit net cash costs | 7.10 | 6.76 | |||||||||||||
Depreciation, depletion and amortization | 2.00 | 1.77 | |||||||||||||
Noncash and other costs, net | 0.35 | b | 0.14 | ||||||||||||
Total unit costs | 9.45 | 8.67 | |||||||||||||
Gross (loss) profit per pound | $ | (0.85 | ) | $ | 3.89 | ||||||||||
Reconciliation to Amounts Reported | |||||||||||||||
(In millions) | Depreciation, | ||||||||||||||
Production | Depletion and | ||||||||||||||
Nine Months Ended September 30, 2015 | Revenues | and Delivery | Amortization | ||||||||||||
Totals presented above | $ | 330 | $ | 240 | $ | 77 | |||||||||
Treatment charges and other | (32 | ) | — | — | |||||||||||
Noncash and other costs, net | — | 13 | b | — | |||||||||||
Molybdenum mines | 298 | 253 | 77 | ||||||||||||
Other mining & eliminationsc | 10,189 | 7,536 | 1,164 | ||||||||||||
Total mining | 10,487 | 7,789 | 1,241 | ||||||||||||
U.S. oil & gas operations | 1,594 | 857 | 10,735 | d | |||||||||||
Corporate, other & eliminations | 1 | 7 | 183 | d | |||||||||||
As reported in FCX’s consolidated financial statements | $ | 12,082 | $ | 8,653 | $ | 12,159 | d | ||||||||
Nine Months Ended September 30, 2014 | |||||||||||||||
Totals presented above | $ | 502 | $ | 237 | $ | 71 | |||||||||
Treatment charges and other | (33 | ) | — | — | |||||||||||
Noncash and other costs, net | — | 6 | — | ||||||||||||
Molybdenum mines | 469 | 243 | 71 | ||||||||||||
Other mining & eliminationsc | 12,247 | 7,817 | 1,107 | ||||||||||||
Total mining | 12,716 | 8,060 | 1,178 | ||||||||||||
U.S. oil & gas operations | 3,487 | 913 | 2,044 | e | |||||||||||
Corporate, other & eliminations | — | (2 | ) | 10 | |||||||||||
As reported in FCX’s consolidated financial statements | $ | 16,203 | $ | 8,971 | $ | 3,232 | e |
a. | Reflects sales of the Molybdenum mines' production to FCX's 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, FCX's consolidated average realized price per pound of molybdenum will differ from the amounts reported in this table. |
b. | Includes $8 million ($0.21 per pound) for inventory adjustments and restructuring charges. |
c. | Represents the combined total for all other mining operations and the related eliminations, as presented in the supplemental schedule, “Business Segments,” beginning on page VII. Also includes amounts associated with 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 impairment of oil and gas properties totaling $9.4 billion, $9.3 billion for U.S. oil and gas operations and $0.2 billion for Morocco. |
e. | Impairments of U.S. oil and gas properties totaling $308 million. |
FREEPORT-McMoRan INC. | ||||||||||||||||||
PRODUCT REVENUES AND PRODUCTION COSTS (continued) | ||||||||||||||||||
U.S. Oil & Gas Product Revenues, Cash Production Costs and Realizations | ||||||||||||||||||
Three Months Ended September 30, 2015 | ||||||||||||||||||
Total | ||||||||||||||||||
Natural | U.S. Oil | |||||||||||||||||
(In millions) | Oil | Gas | NGLs | & Gas | ||||||||||||||
Oil and gas revenues before derivatives | $ | 416 | $ | 62 | $ | 12 | $ | 490 | ||||||||||
Cash gains on derivative contracts | 103 | — | — | 103 | ||||||||||||||
Realized revenues | $ | 519 | $ | 62 | $ | 12 | 593 | |||||||||||
Less: cash production costs | 260 | |||||||||||||||||
Cash operating margin | 333 | |||||||||||||||||
Less: depreciation, depletion and amortization | 450 | |||||||||||||||||
Less: impairment of oil and gas properties | 3,480 | |||||||||||||||||
Less: accretion and other costs | 33 | |||||||||||||||||
Plus: net noncash mark-to-market losses on derivative contracts | (74 | ) | ||||||||||||||||
Plus: other net adjustments | 6 | |||||||||||||||||
Gross loss | $ | (3,698 | ) | |||||||||||||||
Oil (MMBbls) | 9.3 | |||||||||||||||||
Gas (Bcf) | 22.8 | |||||||||||||||||
NGLs (MMBbls) | 0.7 | |||||||||||||||||
Oil Equivalents (MMBOE) | 13.8 | |||||||||||||||||
Oil | Natural Gas | NGLs | ||||||||||||||||
(per barrel) | (per MMBtu) | (per barrel) | Per BOE | |||||||||||||||
Oil and gas revenues before derivatives | $ | 44.85 | $ | 2.72 | $ | 16.68 | $ | 35.56 | ||||||||||
Cash gains on derivative contracts | 11.03 | — | — | 7.44 | ||||||||||||||
Realized revenues | $ | 55.88 | $ | 2.72 | $ | 16.68 | 43.00 | |||||||||||
Less: cash production costs | 18.85 | |||||||||||||||||
Cash operating margin | 24.15 | |||||||||||||||||
Less: depreciation, depletion and amortization | 32.71 | |||||||||||||||||
Less: impairment of oil and gas properties | 252.58 | |||||||||||||||||
Less: accretion and other costs | 2.38 | |||||||||||||||||
Plus: net noncash mark-to-market losses on derivative contracts | (5.34 | ) | ||||||||||||||||
Plus: other net adjustments | 0.49 | |||||||||||||||||
Gross loss | $ | (268.37 | ) | |||||||||||||||
Reconciliation to Amounts Reported | ||||||||||||||||||
(In millions) | Revenues | Production and Delivery | Depreciation, Depletion and Amortization | |||||||||||||||
Totals presented above | $ | 490 | $ | 260 | $ | 450 | ||||||||||||
Cash gains on derivative contracts | 103 | — | — | |||||||||||||||
Net noncash mark-to-market losses on derivative contracts | (74 | ) | — | — | ||||||||||||||
Accretion and other costs | — | 33 | — | |||||||||||||||
Impairment of oil and gas properties | — | — | 3,480 | |||||||||||||||
Other net adjustments | 6 | — | — | |||||||||||||||
U.S. oil & gas operations | 525 | 293 | 3,930 | |||||||||||||||
Total mininga | 3,155 | 2,598 | 434 | |||||||||||||||
Corporate, other & eliminations | 1 | 2 | 176 | b | ||||||||||||||
As reported in FCX's consolidated financial statements | $ | 3,681 | $ | 2,893 | $ | 4,540 | ||||||||||||
FREEPORT-McMoRan INC. | ||||||||||||||||||
PRODUCT REVENUES AND PRODUCTION COSTS (continued) | ||||||||||||||||||
U.S. Oil & Gas Product Revenues, Cash Production Costs and Realizations | ||||||||||||||||||
Three Months Ended September 30, 2014 | ||||||||||||||||||
Total | ||||||||||||||||||
Natural | U.S. Oil | |||||||||||||||||
(In millions) | Oil | Gas | NGLs | & Gas | ||||||||||||||
Oil and gas revenues before derivatives | $ | 821 | $ | 81 | $ | 23 | $ | 925 | ||||||||||
Cash losses on derivative contracts | (58 | ) | — | — | (58 | ) | ||||||||||||
Realized revenues | $ | 763 | $ | 81 | $ | 23 | 867 | |||||||||||
Less: cash production costs | 263 | |||||||||||||||||
Cash operating margin | 604 | |||||||||||||||||
Less: depreciation, depletion and amortization | 504 | |||||||||||||||||
Less: impairment of oil and gas properties | 308 | |||||||||||||||||
Less: accretion and other costs | 10 | |||||||||||||||||
Plus: net noncash mark-to-market gains on derivative contracts | 122 | |||||||||||||||||
Plus: other net adjustments | 1 | |||||||||||||||||
Gross loss | $ | (95 | ) | |||||||||||||||
Oil (MMBbls) | 8.6 | |||||||||||||||||
Gas (Bcf) | 20.2 | |||||||||||||||||
NGLs (MMBbls) | 0.6 | |||||||||||||||||
Oil Equivalents (MMBOE) | 12.5 | |||||||||||||||||
Oil | Natural Gas | NGLs | ||||||||||||||||
(per barrel) | (per MMBtu) | (per barrel) | Per BOE | |||||||||||||||
Oil and gas revenues before derivatives | $ | 95.35 | $ | 4.00 | $ | 39.69 | $ | 73.70 | ||||||||||
Cash (losses) gains on derivative contracts | (6.77 | ) | 0.02 | — | (4.62 | ) | ||||||||||||
Realized revenues | $ | 88.58 | $ | 4.02 | $ | 39.69 | 69.08 | |||||||||||
Less: cash production costs | 20.93 | |||||||||||||||||
Cash operating margin | 48.15 | |||||||||||||||||
Less: depreciation, depletion and amortization | 40.12 | |||||||||||||||||
Less: impairment of oil and gas properties | 24.59 | |||||||||||||||||
Less: accretion and other costs | 0.85 | |||||||||||||||||
Plus: net noncash mark-to-market gains on derivative contracts | 9.73 | |||||||||||||||||
Plus: other net adjustments | 0.09 | |||||||||||||||||
Gross loss | $ | (7.59 | ) | |||||||||||||||
Reconciliation to Amounts Reported | ||||||||||||||||||
(In millions) | Revenues | Production and Delivery | Depreciation, Depletion and Amortization | |||||||||||||||
Totals presented above | $ | 925 | $ | 263 | $ | 504 | ||||||||||||
Cash losses on derivative contracts | (58 | ) | — | — | ||||||||||||||
Net noncash mark-to-market gains on derivative contracts | 122 | — | — | |||||||||||||||
Accretion and other costs | — | 10 | — | |||||||||||||||
Impairment of oil and gas properties | — | — | 308 | |||||||||||||||
Other net adjustments | 1 | — | — | |||||||||||||||
U.S. oil & gas operations | 990 | 273 | 812 | |||||||||||||||
Total mininga | 4,706 | 2,880 | 438 | |||||||||||||||
Corporate, other & eliminations | — | (1 | ) | 3 | ||||||||||||||
As reported in FCX's consolidated financial statements | $ | 5,696 | $ | 3,152 | $ | 1,253 | ||||||||||||
FREEPORT-McMoRan INC. | ||||||||||||||||||
PRODUCT REVENUES AND PRODUCTION COSTS (continued) | ||||||||||||||||||
U.S. Oil & Gas Product Revenues, Cash Production Costs and Realizations | ||||||||||||||||||
Nine Months Ended September 30, 2015 | ||||||||||||||||||
Total | ||||||||||||||||||
Natural | U.S. Oil | |||||||||||||||||
(In millions) | Oil | Gas | NGLs | & Gas | ||||||||||||||
Oil and gas revenues before derivatives | $ | 1,269 | $ | 187 | $ | 36 | $ | 1,492 | ||||||||||
Cash gains on derivative contracts | 304 | — | — | 304 | ||||||||||||||
Realized revenues | $ | 1,573 | $ | 187 | $ | 36 | 1,796 | |||||||||||
Less: cash production costs | 765 | |||||||||||||||||
Cash operating margin | 1,031 | |||||||||||||||||
Less: depreciation, depletion and amortization | 1,465 | |||||||||||||||||
Less: impairment of oil and gas properties | 9,270 | |||||||||||||||||
Less: accretion and other costs | 92 | |||||||||||||||||
Plus: net noncash mark-to-market losses on derivative contracts | (217 | ) | ||||||||||||||||
Plus: other net adjustments | 15 | |||||||||||||||||
Gross loss | $ | (9,998 | ) | |||||||||||||||
Oil (MMBbls) | 26.3 | |||||||||||||||||
Gas (Bcf) | 68.1 | |||||||||||||||||
NGLs (MMBbls) | 1.8 | |||||||||||||||||
Oil Equivalents (MMBOE) | 39.4 | |||||||||||||||||
Oil | Natural Gas | NGLs | ||||||||||||||||
(per barrel) | (per MMBtu) | (per barrel) | Per BOE | |||||||||||||||
Oil and gas revenues before derivatives | $ | 48.34 | $ | 2.74 | $ | 19.78 | $ | 37.85 | ||||||||||
Cash gains on derivative contracts | 11.58 | — | — | 7.72 | ||||||||||||||
Realized revenues | $ | 59.92 | $ | 2.74 | $ | 19.78 | 45.57 | |||||||||||
Less: cash production costs | 19.42 | |||||||||||||||||
Cash operating margin | 26.15 | |||||||||||||||||
Less: depreciation, depletion and amortization | 37.18 | |||||||||||||||||
Less: impairment of oil and gas properties | 235.22 | |||||||||||||||||
Less: accretion and other costs | 2.32 | |||||||||||||||||
Plus: net noncash mark-to-market losses on derivative contracts | (5.51 | ) | ||||||||||||||||
Plus: other net adjustments | 0.39 | |||||||||||||||||
Gross loss | $ | (253.69 | ) | |||||||||||||||
Reconciliation to Amounts Reported | ||||||||||||||||||
(In millions) | Revenues | Production and Delivery | Depreciation, Depletion and Amortization | |||||||||||||||
Totals presented above | $ | 1,492 | $ | 765 | $ | 1,465 | ||||||||||||
Cash gains on derivative contracts | 304 | — | — | |||||||||||||||
Net noncash mark-to-market losses on derivative contracts | (217 | ) | — | — | ||||||||||||||
Accretion and other costs | — | 92 | — | |||||||||||||||
Impairment of oil and gas properties | — | — | 9,270 | |||||||||||||||
Other net adjustments | 15 | — | — | |||||||||||||||
U.S. oil & gas operations | 1,594 | 857 | 10,735 | |||||||||||||||
Total mininga | 10,487 | 7,789 | 1,241 | |||||||||||||||
Corporate, other & eliminations | 1 | 7 | 183 | b | ||||||||||||||
As reported in FCX's consolidated financial statements | $ | 12,082 | $ | 8,653 | $ | 12,159 | ||||||||||||
FREEPORT-McMoRan INC. | ||||||||||||||||||
PRODUCT REVENUES AND PRODUCTION COSTS (continued) | ||||||||||||||||||
U.S. Oil & Gas Product Revenues, Cash Production Costs and Realizations | ||||||||||||||||||
Nine Months Ended September 30, 2014 | ||||||||||||||||||
Total | ||||||||||||||||||
Natural | U.S. Oil | |||||||||||||||||
(In millions) | Oil | Gas | NGLs | & Gas | ||||||||||||||
Oil and gas revenues before derivatives | $ | 3,155 | $ | 275 | $ | 111 | $ | 3,541 | ||||||||||
Cash losses on derivative contracts | (173 | ) | (13 | ) | — | (186 | ) | |||||||||||
Realized revenues | $ | 2,982 | $ | 262 | $ | 111 | 3,355 | |||||||||||
Less: cash production costs | 875 | |||||||||||||||||
Cash operating margin | 2,480 | |||||||||||||||||
Less: depreciation, depletion and amortization | 1,736 | |||||||||||||||||
Less: impairment of oil and gas properties | 308 | |||||||||||||||||
Less: accretion and other costs | 38 | |||||||||||||||||
Plus: net noncash mark-to-market gains on derivative contracts | 130 | |||||||||||||||||
Plus: other net adjustments | 2 | |||||||||||||||||
Gross profit | $ | 530 | ||||||||||||||||
Oil (MMBbls) | 32.1 | |||||||||||||||||
Gas (Bcf) | 59.9 | |||||||||||||||||
NGLs (MMBbls) | 2.7 | |||||||||||||||||
Oil Equivalents (MMBOE) | 44.7 | |||||||||||||||||
Oil | Natural Gas | NGLs | ||||||||||||||||
(per barrel) | (per MMbtu) | (per barrel) | Per BOE | |||||||||||||||
Oil and gas revenues before derivatives | $ | 98.41 | $ | 4.58 | $ | 41.77 | $ | 79.20 | ||||||||||
Cash losses on derivative contracts | (5.41 | ) | (0.21 | ) | — | (4.16 | ) | |||||||||||
Realized revenues | $ | 93.00 | $ | 4.37 | $ | 41.77 | 75.04 | |||||||||||
Less: cash production costs | 19.57 | |||||||||||||||||
Cash operating margin | 55.47 | |||||||||||||||||
Less: depreciation, depletion and amortization | 38.81 | |||||||||||||||||
Less: impairment of oil and gas properties | 6.90 | |||||||||||||||||
Less: accretion and other costs | 0.86 | |||||||||||||||||
Plus: net noncash mark-to-market gains on derivative contracts | 2.90 | |||||||||||||||||
Plus: other net adjustments | 0.05 | |||||||||||||||||
Gross profit | $ | 11.85 | ||||||||||||||||
Reconciliation to Amounts Reported | ||||||||||||||||||
(In Millions) | Revenues | Production and Delivery | Depreciation, Depletion and Amortization | |||||||||||||||
Totals presented above | $ | 3,541 | $ | 875 | $ | 1,736 | ||||||||||||
Cash losses on derivative contracts | (186 | ) | — | — | ||||||||||||||
Net noncash mark-to-market gains on derivative contracts | 130 | — | — | |||||||||||||||
Accretion and other costs | — | 38 | — | |||||||||||||||
Impairment of oil and gas properties | — | — | 308 | |||||||||||||||
Other net adjustments | 2 | — | — | |||||||||||||||
U.S. oil & gas operations | 3,487 | 913 | 2,044 | |||||||||||||||
Total mininga | 12,716 | 8,060 | 1,178 | |||||||||||||||
Corporate, other & eliminations | — | (2 | ) | 10 | ||||||||||||||
As reported in FCX's consolidated financial statements | $ | 16,203 | $ | 8,971 | $ | 3,232 | ||||||||||||