Slide 1: 4th Quarter 2014 Earnings Conference Call
FREEPORT-McMoRan STRENGTH IN RESOURCES 4th Quarter 2014 Earnings Conference Call January 27, 2015 NYSE
Slide 2: Cautionary Statement Regarding Forward-Looking Statements
[Esa Freeront-McMoRan STRENGTH IN RESOURCES Cautionary Statement Regarding Forward-Looking Statements This presentation contains forward-looking statements in which FCX discusses its potential future performance. Forward-looking statements are all statements other than statements of historical facts
Slide 3: 4Q14 Highlights
[Esa Freeront-McMoRan STRENGTH IN RESOURCES 4Q14 Highlights = Advanced Important Projects for Profitable Future Growth - Morenci Expansion — Expected to Reach Full Rates in 1Q15 - Cerro Verde Expansion — More than 50% Complete — 2016 Startup - Lucius (GOM) — Achieved 1st Oil in January 2015 - Highla
Slide 4: Financial Highlights
[Esa Freeront-McMoRan STRENGTH IN RESOURCES cae Financial Highlights ales Dai 4Q14 2014; Consolidated Volumes (mm Ibs) 972 3,888 Average Realization (per Ib) $2.95 $3.09 Site Production & Delivery Unit Costs (per Ib) $1.87 $1.90 Unit Net Cash Costs (per Ib) @ $1.47 $1.51 Consolidated Volumes (000’s
Slide 5: Business Update
[Esa Freeront-McMoRan Business Update FOX Stock Price = Cerro Verde Project on Track for Completion by Year-end 2015 = Tenke and Morenci Completed = Near-term Volumes Increasing = Capital Expenditures Declining = Substantial Free Cash Flow Beyond 2015 LME Copper Price per Pound & Stock Price $60 8 1
Slide 6: Protecting the Balance Sheet
[Esa Freeront-McMoRan STRENGTH IN RESOURCES Protecting the Balance Sheet Current Initiatives - Completed $5 Bn in Asset Sales ($4.3 Bn Net of Tax) - Significant Reduction in Capital Budget * 4Q14 Financings — Prepaid 2015 Maturities & Higher Coupon Debt * Ongoing Assessment of Markets/Further Steps
Slide 7: 2015 Capital & Other Cost Reductions/Deferrals
[Esa] Freeront-McMoRan 2015 Capital & Other Cost Reductions/Deferrals CAPEX Reductions Operating & Other Costs Mining Gost, RECUCHONS: (energy), $04 Minerals Exploration $0.1 $1.5 Billion $0.5 Billion
Slide 8: Strength in Assets
[Esa Freeront-McMoRan STRENGTH IN RESOURCES Strength in Assets = Long-lived Reserves = Diverse Portfolio of High Quality, World Scale Copper Assets = Strategic GOM Oil Position with Existing Infrastructure = Valuable Resource Potential ~11,000 104 103 100+ Reserves“) Mineralized Additional Proved &
Slide 9: Copper Market Commentary
[Esa Freeront-McMoRan Copper Market Commentary = Impact of Commodity Trading Activities = Global Macroeconomic Demand Uncertainty = China — Addressing Slowing Growth Rate with Economic Stimulus = U.S. Growing at Moderate Rate = Supply Side Challenges Persist - Forecasts for Large Market Surpluses Ha
Slide 10: Copper Markets — Long-term
[Esa Freeront-McMoRan Copper Markets — Long-term Fundamentals Support Positive Outlook es * Assuming 2.5% Global Growth = Over Next 10 Years, Copper Market Expected to Grow by +7.6 mm tonnes (28%) Quin mm tonnes x 8 = Over Same Period, Production from Existing Mines Expected to 0 Decline by 3.1 mm t
Slide 11: 4Q 2014 Mining Operating Summary
[Esa Freeront-McMoRan STRENGTH IN RESOURCES 4Q 2014 Mining Operating Summary Cash Unit Costs North South - . (per pound of copper) America America__Indonesia__Africa Consolidated Site Production & Delivery $1.81 $1.68 $2.37 $1.69 $1.87 By-Product Credits (0.21) (0.14) (2.46) (0.38) (0.63) Treatment
Slide 12: Cerro Verde Mill Expansion
STRENGTH IN RESOURCES [Esa Freeront-McMoRan Cerro Verde Mill Expansion * Detailed engineering & major procurement activities complete * To become world’s largest concentrating facility * Construction advancing on schedule & more than 50% complete * Completion expected in late 2015 * Expected to add
Slide 13: Indonesian Matters
[Esa Freeront-McMoRan STRENGTH IN RESOURCES Indonesian Matters = Engaged in Active Discussions with Government to Amend COW — Positive Long-term Partnership — Economic Engine for Development of Papua — Operations Provide Significant Benefits to Indonesian Economy — All Rights Under COW to Continue U
Slide 14: Grasberg BC & DMLZ Underground Mine Development
[Esa] Freeront-McMoRan Grasberg BC & DMLZ Underground Mine Development « Completed development on access to underground ore bodies ¢ Completed 123 km of developmentin Grasberg BC & 90 km in DMLZ « Key development activities include work on ore flow systems & Grasberg BC shaft ¢ Development capital*
Slide 15: Brownfield Development Studies
[Esa Freeront-McMoRan STRENGTH IN RESOURCES Brownfield Development Studies 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 Massive high grade mixed ore & sulfide resource Advancing meta
Slide 16: 2014 FM O&G Highlights
[Esa Freeront-McMoRan 2014 FM O&G Highlights 2014 FM O&G ncial Highlights in billions) Realized Revenues $4.1 Cash Operating Margin $2.9 Sales (MMBOE) 56.8 = Continued Strong Operational Performance = Positioned Portfolio for Long-Term Growth in Deepwater GOM Successful Drilling Results Added High Q
Slide 17: Oil Market Commentary
[Esa Freeront-McMoRan STRENGTH IN RESOURCES Oil Market Commentary and HLS Pricing perBbl | h ($/bbl except differentials) Brent Average HLS Average Realization before Hedges Differential to Brent Realization after Hedges Jan-03 Source: Blomberg Jan-05 Jan-07 Jan-09 Jan-11 * 2013 realzations are for
Slide 18: 4Q 2014 Oil & Gas Operating Summary & 2015 Oil Hedge Positions
[Esa Freeront-McMoRan 4Q 2014 Oil & Gas Operating Summary & 2015 Oil Hedge Positions 4Q 2014 Highlights Continued Steady Production 7 GOW) Performance from California we) Completed Maintenance at Marlin in Deepwater GOM California Sales: 12.1 MMBOE — Slightly Above October Estimate 2015 Oil Puts Ind
Slide 19: Responding to Market Conditions
[Esa Freeront-McMoRan Responding to Market Conditions = Significant Reduction in Capital Budget — 2015 Reduced by $1.2 Billion (~34%) — 2016 Reduced by $1.7 Billion (~43%) — Defer Discretionary Spending = Focus on Highest Priority Projects (80% in GOM) = Slow Growth/ Preserve Resource Value for Futu
Slide 20: Lucius Case Study
STRENGTH IN RESOURCES [Esa Freeront-McMoRan Lucius Case Study = FM O&G Acquired Rights in September 2009 (Oil was ~$70/bbl) = Discovery Well Drilled by Operator in December 2009 = Identified +300 MMBOE Resource Potential Lucius Structure Map = FM O&G Arranged Funding For its Share a aa a of Developm
Slide 21: Deepwater GOM Progress Report — Positive Drilling Results
[Esa Freeront-McMoRan Deepwater GOM Progress Report —- Positive Drilling Results Holstein Deep + 15t Delineation Well Logged 234’ of net oil pay + 24 Delineation Well Currently Drilling; 3" Well Planned + Increased Resource Potential to over 250 MMBOE + Exploration Well Encountered Multiple Sub-Salt
Slide 22: Inboard Lower Tertiary/Cretaceous Update
Freerort-McMoRAN Inboard Lower Tertiary/ “Ul N Cretaceous Update = Successful Flow Test of Tuscaloosa sands in December 2014 43.5 MMcf/d on 22/64th Choke Flowing Tubing Pressure of 11,880 PSI First production expected in 1Q15 Second Well Location Identified — Future Plans Pending Review of Well Perf
Slide 23: 2015e Outlook
[Esa Freeront-McMoRan STRENGTH IN RESOURCES sil 2015e Outlook Sales Outlook Unit Cost Copper: 4.3 Billion Ibs. = $1.53/Ib@ of Copper Gold: 1.3 Million ozs. = $18/BOE Molybdenum: 95 Million Ibs. Oil Equivalents”: 55.5 MMBOE (~70% Oil) Operating Cash Flows@ Capital Expenditures = ~$4 Billion (@$2.60/I
Slide 24: Sales Profile
[Esa Freeront-McMoRan STRENGTH IN RESOURCES Sales Profile Copper Sales (billion Ibs) 6 2014 2015e 2016e 2017e Note: Consolidated copper sales inclide 715mm bbs in 2014, 730 mmibs in 2015 1,070 mmibs in 20166, and 1,025 mm bs in 2017e for noncontroling interest; exclides purchased copper. estimate. S
Slide 25: 2015e Quarterly Sales
[Esa Freeront-McMoRan STRENGTH IN RESOURCES 2015e Quarterly Sales Copper Sales (million lbs) 1,250 1,000 750 500 250 0 1Q15e 2Q15e 3Q15e 4Qi5e Note: Consolidated cooce sales ncude aporoxnately 185mm ls in 1015e, 170mm lsh 2015e, 175mm lbs in 30152 and 220 mm fis in 4215e fornoncontroling interest; e
Slide 26: 2014 and 2015e Sales by Region
[Esa Freeront-McMoRan STRENGTH IN RESOURCES 2014 and 2015e Sales by Region — 2014 Sales by Region North America South America Indonesia Africa 1,664 1,135 95) 12 80 Gm 425 30 Gu 2 HE: || si aL 2015e Sales by Region North America 1,930 950) a South America 935 i Indonesia Africa (1) Includes molybden
Slide 27: 2014 and 2015e Unit Production Costs by Region
[Esa Freeront-McMoRan 2014 and 2015e Unit Production Costs by Region 2014 North South Cpecpnen ob conned ‘America America Indonesia Africa Consolidated Cash Unit Costs Site Production & Delivery $1.85 $1.62 $2.76 $1.56 $1.90 By-product Credits (0.24) (0.22) (2.25) (0.48) (0.60) Treatment Charges 0.1
Slide 28: EBITDA and Cash Flow at Various Copper Prices
STRENGTH IN RESOURCES [Esa Freeront-McMoRan EBITDA and Cash Flow at Various Copper Prices $15 (USS billions) $10 $5 2016e/2017e Average $0 Cu $2.50/Ib : Cu $3.00/Ib : Cu $3.50/Ib Average Operating Cash Flow (excluding Working Capital changes) ($1,300 Gold, $10 Molybdenum & $65 Oil) $12 (uss billions
Slide 29: Sensitivities (US$ millions)
STRENGTH IN RESOURCES [Esa Freeront-McMoRan Sensitivities (US$ millions) EBITDA Copper: +/- $0.10/Ib $500 $350 Molybdenum: +/- $1.00/Ib $100 $80 Gold: +/- $50/ounce $100 $60 Oil Sales: +/- $5/bbI@ $190 $150 Oil Sales Net of Diesel Costs:“7) +/- $5/bbl $145 $120 Natural Gas: +/- $0.50/Mcf $35 $28 Cur
Slide 30: Capital Expenditures
[Esa Freeront-McMoRan Capital Expenditures (US$ billions) $8 $6 $4 woo heise) TOTAL $2 2.9 [anid 4.0 Other Mining 1 $0 2014 2015e 2016e 2017e (1) Gptal expenditure estmates inclide projects n progress. Project spending will continue to be reviewed and revised subject to market conditions. (2) Primar
Slide 31: Committed to Balance Sheet Management
[Esa Freeront-McMoRan STRENGTH IN RESOURCES Committed to Balance Sheet Management Strong Track Record = Large Resource Base with Strong Cash 12/31/2014 Balances Flows and Capital Discipline (G in bns) = 2014 Asset Sales ~— ~$5 bn in Gross Proceeds ($4.3 bn net of tax and adjustments) — ~$2.9 bn net
Slide 32: Key Priorities
[Esa Freeront-McMoRan Key Priorities Protect Balance Sheet & Liquidity Manage Operations and CAPEX to Maximize Cash Flow in Weak Market Environment Fund O&G Investments Within Cash Flows and 3" Party Investments Complete Near-term Mining Projects Preserve Large Resource Base for Future Strong Track
Slide 33: Reference Slides
{ | FREEPORT-McMoRan STRENGTH IN RESOURCES Reference Slides
Slide 34: PT-FI Mine Plan
[Esa Freeront-McMoRan STRENGTH IN RESOURCES PT-FI Mine Plan PT-FI’s Share of Metal Sales, 2015e-2022e 2015e — 2019e PT-FI Share Total: 5.9 billion Ibs copper Bh copper, billion ibs Annual Average: 1.2 billion Ibs Bh copper, Gold, million ozs 2015e — 2019e PT-FI Share Total: 8.0 million ozs gold Annu
Slide 35: PT Freeport Indonesia Grasberg Minerals District
[Esa] Freeront-McMoRan STRENGTH IN RESOURCES PT Freeport Indonesia = Grasberg Minerals District Life-of-Mine Production Sequencing* ae ee Grasberg Sinmmnt 1 080.97 G/t Au ‘open pit s2ommmt (e870 q/tau GashagUuG 1.02%9 Cu 60.78 g/t At FOE Pry, 1 Grasberg ROIS 1 275, Cie Hore ENE e Block Cave COW Term
Slide 36: Preliminary Reserves at 12/31/14
STRENGTH IN RESOURCES [Esa Freeront-McMoRan Preliminary Reserves at 12/31/14 ee) Consolidated Proven & Probable Reserves Copper —- Molybdenum Gold billion Ibs billion Ibs million ozs Reserves @12/31/13) 111.2 3.26 31.3 12/31/14 Divestiture* (3.7) - (1.0) Copper Reserves Revisions (0.1) (0.05) (0.6)
Slide 37: Copper Reserves & Mineralized Material
STRENGTH IN RESOURCES [Esa] Freepont-McMoRan Copper Reserves & Mineralized Material as of 12/31/14 billion Ibs of copper 12/31/14 Mineralized Material () 207 by Geographical Region Mineralized Material ‘) 104 (contained copper) at $2.20 Cu price North America ATTY. South America 21% Indonesia 21% Re
Slide 38: Deepwater Gulf of Mexico Focus Areas
STRENGTH IN RESOURCES e'l\ [Esa Freeront-McMoRan Deepwater Gulf of Mexico Focus Areas Development/Exploration Project Inventory Wet Unrisked, Resource Potential Asset Area (Gilion BOE) Green\Canyon Area 19) Marlin/ Horn Mountain Area 06 Vito Area 10 Keathley Canyon Area 12 Deepwater GOM Total a7 4 o
Slide 39: Quarterly Oil & Gas Operating Summary
[Esa Freeront-McMoRan STRENGTH IN RESOURCES Quarterly Oil & Gas | Operating Summary 4Q 2014 Oil & Gas Margins by Region Haynesville/ Operating Margin California Mother GOM Consolidated Realized Revenue per BOE $62.34 $22.89 $60.97 $59.95 Cash Production Costs per BOE 34.12 13.63 17.93 21.93 Cash Ope
Slide 40: 2015e Oil & Gas Operating Estimates
[Esa Freeront-McMoRan STRENGTH IN RESOURCES 2015e Oil & Gas Operating Estimates Operating Cost: $2.15/Mcfe Pricing: NYMEX California Operating Cost: $32/bbl Pricing: Brent Based Gulf of Mexico Operating Cost: $13/bbl Pricing: HLS/NYMEX 015e Oil & Gas Sales by Region California Haynesville/ Madden/Ot
Slide 41: Preliminary SEC Oil & Gas Proved Reserves
STRENGTH IN RESOURCES x <a. /)\ Preliminary SEC Oil & Gas Proved Reserves. = 390 MMBOE as of 12/31/14 Excludes Positive Results from Highlander & Holstein Deep Achieved in Late 2014* By Category By Region ape California 39% [Esa Freeront-McMoRan “Haynesville/ Other
Slide 42: Reserves & Resource Potential
[Esa Freeront-McMoRan STRENGTH IN RESOURCES Reserves & Resource Potential @ar-end 2014 Proved Reserves & Net Unrisked Resource Poten all 47 3.3 12.2 5.0 @ 0.14 N/A® || N/A Reserves Resource Reserves Resource Reserves Resource Reserves Resource Reserves Resource Californi Deepwater GOM Inboard Lower
Slide 43: FCX Debt Maturities as of 12/31/14
STRENGTH IN RESOURCES [Esa Freeront-McMoRan FCX Debt Maturities as of 12/31/14 . ‘US$ billions, $10 (US$: ) Total Debt & Cash at 12/31/14 (US$ billions) OO FCX Term Loan $8 || mFCXSr. Notes ll FM O86 Senior Notes Other _ Total Debt s Consolidated Cash 3.875%, $4 $3.7 545%, 455% 8 5.4% $2.5 [eae and
Slide 44: Adjusted EBITDA Reconciliation
[Esa Freeront-McMoRan Adjusted EBITDA Reconciliation (inmillions) 942014 Year 2014 Net loss attributable to common stock $(2,852) $(1,308) Interest expense, net 147 630 Provision for income taxes (710) 324 Depredation, depletion and amortization 939 3,863 Impairment of ail and gas properties and goo
Slide 45: Site Operating Costs by Category
[Esa Freeront-McMoRan STRENGTH IN RESOURCES Site Operating Costs by Category Consolidated Materials 35% Manpower 32% * Energy ¥70 Acid 20% 2014 Note: e = estimate. See Cautionary Statement. 45