Slide 1: 1st Quarter 2015 Earnings Conference Call
HE Freepont-McMoRan 1st Quarter 2015 Earnings Conference Call April 23, 2015 VALUE AT OUR CORE FCX [LISTED] NYSE fex.com
Slide 2: Cautionary Statement Regarding Forward-Looking Statements
[| FREEPoRT-McMoRan Cautionary Statement Regarding Forward-Looking Statements VALUE AT OUR CORE Tihs esate ‘agtles ayia isaranis hy Wiis SX mad Fa la tie panic. ii ialieg aera a sSatements other than statements cat facts, such as pro} or expectations relating to ore grades and vatng rates, productio
Slide 3: Value at Our Core - 2014 Annual Report Highlights
“Value at Our Core— 2014 Annual Report Highlights = Substantial Values in Long-Lived, VALUE AT OUR CORE Geographically Diverse Natural si Resources - Premier Portfolio of Global Mining Assets - High-Quality, U.S.-Based Oil & Gas Assets with Attractive Growth Pipeline = Growing Production and Cash Fl
Slide 4: 1Q15 Highlights
lea FR EEPOR T-McMoRan _ 1915 Highlights Oil & Gas PUTING, | Successful Ramp-up of Morenci Expansion Record Quarterly Tenke Sales Following Successful Phase 2 Expansion in 2013 Cerro Verde Construction on Track to Become World’s Largest Concentrator Facility Entering Phase of Higher Ore Grades at Gr
Slide 5: Sales Data
Sales Data Copper Consolidated Volumes (mm Ibs) Average Realization (per Ib) Site Production & Delivery Costs (per Ib) Unit Net Cash Costs (per Ib) Id Consolidated Volumes (000’s ozs) 263 187 Average Realization (per 0z) $1,186 $1,300 it Consolidated Volumes (MMBOE} 12.5 16.1 Realized Revenues (per
Slide 6: Copper Market Commentary
FREEPORT-McMoRan Copper Market Commentary VALUE AT OUR CORE = Market Expectations for Surpluses Have Not Materialized = China — Slowing Growth Rate on Larger Base; Economic Stimulus = U.S. Growing at Moderate Rate = Economic Stimulus in Europe and Japan = Continuing Supply Side Challenges = Near-ter
Slide 7: Cash Unit Costs
Cash Unit Costs South (per pound of copper) America America Indonesia Africa Ce Site Production & Delivery $1.81 $1.75 $2.84 $1.57 $1.93 By-Product Credits (0.18) (0.08) (2.09) (0.37) (0.49) Treatment Charges 0.13 0.17 0.29 - 0.14 Royalties & Export Duties - 0.00 0.30 0.06 0.06 Unit Net Cash Costs $
Slide 8: Declining Unit Net Cash Cost and Mining CAPEX Profile
(millions of Ibs) 750 > pil 500 250 5 o 1Q15 2Q15e 3Q15e 4Q15e 2016e e = estimate. See Cautionary Statement. Avg. Declining Unit Net Cash Cost Profile $2.00 (Sper Ib) $1.50 $1.00 1QI5-2Q15e-—-DHISe ~—-2016e Declining Mining CAPEX Profile (Sin bns) e $3.7 4 pan $2 $1 $0
Slide 9: Cerro Verde Expansion
Cerro Verde PIE: Expansion tailed sngineeting & major procurement activities complet = To become pa largest concentrating facility = Construction advancing on schedule & approximately 70% complete = Completion expected in late 2015 = Expected to add 600 mm lbs of Cu per annum = $4.6 billion project;
Slide 10: Indonesia
Indonesia - since "E d in Active Di i with Government to Amend COW — Positive Long-term Partnership — Economic Engine for Development of Papua -oO i Provide Signifi Benefits to Indonesian Economy — All Rights Under COW to Continue Until Agreed Amendment — Negotiations to Take Into Consideration PT-F
Slide 11: Grasberg BC & DMLZ Underground Mine Development
onT-McMoRai ; Grasberg BC & DMLZ Underground Mine Development ¢ Completed development of access to underground ore bodies ¢ Expect DMLZ start-up in late 2015 & Grasberg BC in 2018 e Key development activities include work on ore flow systems & Grasberg BC shaft ¢ Development capital* of $3.1 bn spen
Slide 12: Brownfield Development Studies
{E=0] FREEPORT-MicMioRA ; et Bb Stl _ Brownfield Development Studies El Abra Bagdad * Large sulfide resource ~0.3% Cu ¢ Large sulfide resource >0.4% Cu supports 260 mt/d mill * Potential incremental production ~750 mm lbs Cu year ¢ Advancing studies & options for water, tailings, power Tenke Funguru
Slide 13: Oil Market Commentary
~~] et Commentary FM NGLs — 0.5 MMBbls Oil Equivalents— 12.5 MMBOE iw! \ Aan U Jan-03 Jan-05 Jan-07 Jan-09 Jan-11 Jan-13 Jan-15 Source: Bloomberg Average through Apri 17, 2015 13
Slide 14: Integrated Deepwater GOM Assets
«Integrated Deepwater GOM Assets ~ Marlin, Horn Mountain, Holstein - Following Acquisition Late 2012 * Increased Total Oil & Gas Division ion Volumes to 174 MBOE/D in 2013 from 106 MBOE/D in 2012 + Maintained Active Drill Program California, Over 160 Wells riled ¥ with a 100% Success * Implemented A
Slide 15: Potential Projects in Inventory With IRRs Greater Than 20%
FREEPORT-McMoRan 145 Potential Projects in Inventory With IRR’s VALUE AT OUR CORE Greater Than 20% at Strip Pricing in Deepwater GOM Number Weighted- Exploitation/Tieback Projects Facility of Potential Average Projects Pre-Tax IRR Keathley Canyon Area Lucius 15 110% Holstein 43 Green Canyon Area Hei
Slide 16: Production from Three Projects Commenced in 1Q15
Production from Three Projects which Commenced in 1Q15 Totaled ~25 MBOE per day at End of March = Continued Steady Production Performance from California = Advanced DW GOM Oil Growth Strategy — Established Production at Lucius & Dorado — Positive Drilling Results: + Holstein Deep + King + Power Nap
Slide 17: Progress Report: Holstein Deep, Vito, Heidelberg
Holstein Deep Heidelberg Mississippi Canyon Area Vito Area Deep Sleep Vito Progress Report 2°4 Subsea Delineation Well Logged 482’ of Net Oil Pay i Continuity R i y ~280 MMBOE Gross Resource Potential (was ~75 MMBOE Initial Discovery) Drilling of 3" Subsea Delineation Well In-Progress Main Topsides
Slide 18: Deepwater Gulf of Mexico Focus Areas
vy FREEPORT-McMoRan 4 Deepwater Gulf of Mexico Focus Areas VALUE AT OUR CORE Net Unrisked Resource Potential ME Facilities >& Development o* Exploitation Discovery J mmm FM O&G Leases
Slide 19: Holstein Deep Increased Gross Resource Potential
688 689 FM O&G Operated With 100% WI Drilling Results To-Date Support Increased Gross Resource Potential ~ 280 ~75 Current Initial Discovery = Production from Current 3 Well Subsea Tieback Program Expected to Reach Approximately 15 MBOE/d in 2016 = Drilling Results Support Potential for Expanded Dri
Slide 20: Holstein Deep Production Profile
t Production Profile Holstein Deep Production Profile (Net Boe/d) — By Phase Boeld 40,000 20,000 Holstein Deep Phase 1 r) 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Slide 21: Vito Area - Power Nap Discovery
= FREEPORT-McMoRan Vito Area-Power Nap Discovery Regional Miocene Vito North Cs 9 MMBOE* Power Nap Discovery Ya yO 4 100 MMBOE" Vito Development 100 MMBOE* : Deep Sleep Ravioli 185 MMBOE* 40 MMBOE* Spitfire Sun 384 MMBOE* 240 MMBOE* @ A 2015 spud Potential Vito Development Tieback Prospects
Slide 22: Dynamic Production Growth
Dynamic Production Growth 700 500 Vito Area Keathley Canyon Area 400 Green Canyon Area (MBOE/D) 300 200 Deepwater GOM Mississippi Canyon Area 100 California 7 Gas Assets 2015E 2016E 2017E 2018E 2019E (2020E 2021E 2022E 2023E 2024E (2025€ Estimated 5-Year Reserve Replacement: Estimated Finding & Deve
Slide 23: Considerations: Funding and Growth Plans
Considerations: = Significant Inventory of Development Projects — 4.7 Billion BOE of Net Unrisked Resource Potential = Activities Over Last 2 Years have De-risked Tieback Strategy = Following Sharp Oil Price Decline, Near-term Production Growth Limited Without Additional Funding Project Remain Attra
Slide 24: IPO Alternative for Freeport-McMoRan Oil & Gas
FREEPORT-McMoRan IPO Alternative for Freeport-McMoRan Oil & Gas Ate AP GUE Gore = Provides Alternative Form of Equity Capital to Fund O&G Business = Highlights Standalone Value of O&G Business = Achieve Corporate Objective of Funding O&G Business with O&G Cash Flows, JVs, Asset Sales or External Fin
Slide 25: Sales Outlook, Unit Cost, Cash Flow and Capex
Sales Outlook Unit Cost = Copper: 4.2 Billion Ibs. * Gold: 1.3 Million ozs. = Molybdenum: 95 Million Ibs. * Oil Equivalents”: 52.3 MMBOE (~67% Oil) * $1.53/lb™ of Copper = $19/BOE Operating Cash Flows Capital Expenditures = ~$4,4 Billion (@$2.75/Ib Copper for Remainder of 2015) = Each 10¢/lb Change
Slide 26: Copper Sales
=. FREeport-McMoRan Copper Sales (billion Ibs) 6 2014 2015e 2016e 2017e 2014 2015e 2016e 2017e Note: Consoldated copper sales inctide 715mm bs in 2014, 720 mmbs n 2015e 1,080 mmibs in 2016e, and 1,050 mmbs in 2017e for noncontolng interest; ‘exclides purchased cops aereeebesié canonay senate 2014 =
Slide 27: Quarterly Sales Outlook
Copper Sales (mittion tbs) 1,250 1,000 1,060 750 500 — 250 1Q15 2Q15e 3Qi5e 4Q15e Ne Sore tone beh a scant Loom Bo Y Seisclornencoveliy hares panes eee 2: rnoncontroling int e = estimate. See Cautionary Statement. 15g Wgise Sse AQISe approxmately 24 o2s n 1015, 26k0rs Piss eho Molaeand css ise be ho
Slide 28: 2015e Unit Costs and Sales by Region
ind of copper) North uth ae ‘ America America _ Indonesia Africa Consolidated Cash Unit Costs Site Production & Delivery 2 $1.74 $1.58 $2.28 $1.67 $1.81 By-product Credits (0.15) (0.07) (1.78) (0.47) (0.51) Treatment Charges 0.12 0.20 0.29 = 0.16 Royalties & Export Duties : 0.01 0.30 0.06 0.07 Unit
Slide 29: Cash Flow Outlook
2016e/2017e Average cu $2501 Cu $3.00/Ib Cu $3.50/Ib $12 $8 $0 Cash Flow ($1,200 Gold, $8 peoWindentes & $70 Oil) (USS biions Working Capital changes) 2016e/2017e Average Cu $2.50/Ib Cu $3.00/Ib Cu $3.50/Ib 2016/2072 average, each $50/oz change i gold approximates $100 mibon tes $100 milton to EBITD
Slide 30: Price Sensitivities
Change Copper: +/- $0.10/Ib Molybdenum: +/- $1.00/Ib Gold: +/- $50/ounce Oil Sales: +/- $5/bbI” Oil Sales Net ve Diesel Costs:@7 +/- $5/bbI Natural Gas: +/- $0.50/Mcf Currencies: +/- 10% (2)Amounts are net of mnng cost mpacts of a 5700 change nol orices, oy us Dolar Exchange Rates: 625: ed pe0, I. m
Slide 31: Capital Expenditures
nditures! $6 s| $2- 4 2.7 L.2 $0 ’ T @) (2) Primarily includes Cerro Note: Inclides capitalzed interest. e= estimate. See Cautionary Statement.
Slide 32: Strong Track Record
‘Srrang Track Record 3/31/2015 Balances = Large Resource Base with Strong Cash (in bns) Flows and Capital Discipline = Have Taken Steps to Reduce Cost & CAPEX, Complete Asset Sales and Reduce Common Stock Dividend = Increasing Volumes & Declining CAPEX Profile Will Enhance Credit Metrics = Advancing
Slide 33: Key Priorities
| FReeport-McMoRan Key Priorities VALUE AT OUR CORE = Strong Balance Sheet = Manage Operations and CAPEX to Maximize Cash Flow in Weak Market Environment = Obtain O&G Funding to Accelerate Growth = Complete Near-term Mining Projects = Generate Values from Large Resource Base Strong Track Record for
Slide 34: Track Record of Value Creation
Freeport Minerals O * Acquired Phelps Acquired PXP & Dodge MMR Grasberg & MP icMoRa 299 011/Sulphur Sold Non-core —~$6 Bn Created Largest _ Established GOM OieGe IPO of 20% Assets Equity Value Publicly Traded leader with a Interest in FCX Copper Producer iat cacti. ‘most je $801 and si fantial actve
Slide 35: Reference Slides
{-:0 FREEPORT-McMoRan Reference Slides
Slide 36: Copper and Gold Sales Outlook 2015e-2019e
a FREePort-McMoRan VALUE AT OUR CORE 2015e— ae Uap Stead Total: 5.65 billion Ibs copper Be copper, Annual Average: 1. ee billion Ibs Zz 7 billion Ibs |. Gold, million ozs 2015e — 2019e PT-FI Share Total: 7.7 million ozs gold Annual Average: 1.54 million ozs 2A 1.9 15 a V7 -— 104 ’ | 1.0 1.0 = / gp 1
Slide 37: Life-of-Mine Production Sequence
Life-of-Mine Production Sequens 1 £790 mt 039696 bur & 4.06 a) Grasberg: ‘open pit 4.0120 mt 1.00% Cu &0.77 g/t A DDO DE i a Grasberg RUCIIGTITS 7 2585 E1070) AU, i Hut Block Cave COW Term, including extensions 2015 2017 2019 2021 202 22 227 2029 2031 203 203 2037 2039 2041 Big Gossan Spur 4 N Porta
Slide 38: 1Q 2015 Oil & Gas Margins by Region
1Q 2015 Oj! & Gas Margins by Region Haynesville/ Operating Margin Madden/ athe adsl California GOM Cc Realized Revenue per BOE $38.74 $17.18 $40.65 $43.71 Cash Production Costs per BOE 31.70 11.29 17.39 20.26 Cash Operating Margin per BOE $7.04 $5.89 $23.26 $23.45 1Q 2015 Oil & Gas Sales by Region C
Slide 39: Oil & Gas Operating Costs and Pricing
Operating Cost: $2.10/Mcfe Pricing: NYMEX Gulf of Mexico Operating Cost: $15/bbl Pricing: HLS/NYMEX Galifornia Oil MBOE/D Inchides ~5 MBbI/d of NGLS and GOM Shelf producton NOTE: Operating costs exclude DOSA and GSA. 008A (nduding accretion) expected to ape : average 82% of Brent for 2015e before he
Slide 40: Debt Maturities as of 3/31/15
Maturities as 0f.3/31/15 (US$ billions) Gi FCX Revolver & Term Loan $ 4.0 $8 || Ml FCK &FMC Sr. Notes 12.2 I FM O&G Senior Notes 2.6 i Other Total Debt 6 Consolidated Cash $44 $2.7 $24 $1.5 Revolver & $0 $0.2 Term Loan | Term Loan $0 , T , , , 2015* 2016 2017 2019* 2020 ort | 2022 Thereafter Term Lo
Slide 41: Adjusted EBITDA Reconciliation
FREEPORT-McMoRan Adjusted EBITDA Reconciliation VALUE AT OUR CORE (in millions) 12-Month Qu2015 Trailing Net loss attributable to common stock $(2,474) $(4,292) Interest expense, net 146 615 Income tax benefit, (695) (728) Depreciation, depletion and amortization 939 3,836 Impairment of oil and gas