Freeport-mcmoran, Inc. · NYSE:FCX

Freeport-mcmoran — Credit Suisse 19th Annual Energy Summit 2014

29 slides from Freeport-mcmoran's conference presentation, Feb 11, 2014

  1. Slide 1: 2014 Credit Suisse Energy Summit

    2014 Credit Suisse Energy Summit February 2014

  2. Slide 2: Forward Looking Statement

    Forward Looking Statement Cautionary Statement This presentation contains forward-looking statements in which Freeport-McMoRan Oil & Gas (FM O&G) discusses its potential future performance. Forward-looking statements are all statements other than statements of historical facts, such as those stateme

  3. Slide 3: Oil & Gas Portfolio

    Oil & Gas Portfolio Chevron Chariot FM O&G Morocco Mazagan Permit Area Kosmos, BP Kosmos, BP Madden Agadir Chevron Kosmos, BP • 169 BCFE total resource potential Cairn Genel California • 107 BCFE proved reserves Cairn, Genel Genel • 430 MMBOE total resource potential • 30+ future locations • 188 MMB

  4. Slide 4: 2013 Year in Review: Focused on Execution

    2013 Year in Review Focused on Execution  Strong Operating Performance - 40% Increase in pro forma production volumes compared to prior year - 125% Increase in pro forma cash flow compared to prior year  Advanced Important Projects for Profitable Future Growth - Lucius deepwater GOM Development ne

  5. Slide 5: A Strong & Focused Organization

    A Strong & Focused Organization Key Strengths  Strong Management of the Base Production 2013 MBOE/D (1) 2013 Cash Operating Margins (1) - Offshore GOM 72 (2) $70 - California 39 $62 ˗ Eagle Ford 46 $67  Effective Capital Management - Focus on oil & gas cash operating margins - Manage production/in

  6. Slide 6: Operational Plan

    Operational Plan Oil & Gas Cash Net Production Operating Margin(1)(2) 450 $7,200 2013 Results 400 $6,400 Significantly 350 Exceeded Plan $5,600 300 $4,800 MBOE/D MM$ 250 $4,000 200 $3,200 150 $4,400 $4,500 $4,700 $2,400 $4,000 $4,100 100 $3,500 $1,600 $2,500 $3,000 50 $800 0 $0 PF2013 2014E 2015E 20

  7. Slide 7: Base Oil Producing Assets

    Base Oil Producing Assets California Gulf of Mexico Eagle Eagle Ford Ford Horizonta Texas Louisiana Legend Legend Sutton FM O&G ACREAGE PXP ACREAGE Val Verde Edward Kinney OIL WINDOW OIL WINDOW Maver GAS CONDENSATE GAS CONDENSATE WINDOW WINDOW WILSON DRY GAS WINDOW • PXP acre FM O&G ▪ 74,00 • 4 to 6

  8. Slide 8: Per BOE Cash Operating Margin Strength by Area 4Q 2013

    Per BOE Cash Operating Margin Strength by Area 4Q 2013 California Deepwater GOM Eagle Ford Cash Operating Cash Operating Cash Operating Margin Margin Margin $54 $75 $64 Cash Production Costs $35 Cash Production Costs Cash Production Costs $12 $11 Note: Cash production costs include lease operating e

  9. Slide 9: Cash Operating Margin Leader

    Cash Operating Margin Leader Quarter Ending September 30, 2013 $70.00 $60.00 $/BOE $50.00 $40.00 $30.00 $20.00 $10.00 $0.00 FM O&G Note: Sources: public filings, Barclays. Companies referenced in this chart: Apache, Anadarko, Chesapeake, Chevron, ConocoPhillips, Devon, EOG, Exxon, Marathon and Occid

  10. Slide 10: Dynamic Production Growth

    Dynamic Production Growth Operating Development Exploration 350 300 Keathley Canyon Mississippi Pliocene-Miocene 250 Inboard Lower Canyon Area GreenTertiary/Cretaceous MBOE/D Inboard Lower Canyon Area Keathley Canyon Tertiary/Cretaceous Mississippi Lower Tertiary 200 Green Canyon Area Inboard Lower

  11. Slide 11: Exploration/Development Growth Areas

    Exploration/Development Growth Areas Louisiana Inboard Lower Tertiary/Cretaceous 1 Viosca 5 Knoll 2 Morocco Mississippi Canyon Mississippi Canyon Area Green Canyon Area 3 Atwater Valley Morocco Garden Banks Green Canyon Africa Walker Ridge Lund Keathley Canyon 4 Keathley Canyon Pliocene-Miocene 11

  12. Slide 12: Inboard Lower Tertiary/Cretaceous

    Inboard Lower Tertiary/ Cretaceous 1 Texas Louisiana Lomond North Lineham Creek England Davy Jones Blackbeard Area Lafitte Exploration Development Assets  Approximately 15 identified exploration and development projects  Spud dates starting May 2014 with net resource potential for the initial prog

  13. Slide 13: Conceptual Model Inboard Lower Tertiary/Cretaceous

    Conceptual Model Inboard Lower Tertiary/Cretaceous Recognized as Industry Leader in This New Exploration Frontier Drilling activities to date have successfully confirmed geologic model and have indicated the potential for a major new geologic trend spanning 200 miles in the shallow waters of the GOM

  14. Slide 14: Highlander Discovery – Cretaceous Tuscaloosa

    Highlander Discovery – Cretaceous Tuscaloosa Lomond North Discovery FM O&G Jeanerette Minerals #1 Proposed Lomond NE Cretaceous Tuscaloosa Trend Cumulative Production 3.1 TCF, 121 mmbc Tuscaloosa Trend Gross Pay Lomond North Discovery LOUISIANA Economics: Lomond North 20 – 30% ROR .5 - 1.0 $B Net PV

  15. Slide 15: Highlander Discovery – Cretaceous Tuscaloosa

    Highlander Discovery – Cretaceous Tuscaloosa Lomond North Discovery FM O&G Judge Digby Field Type Log Jeanerette Minerals #1 3.0 TCF Gross Resource Potential Tusc 1 Tusc 2 Tusc 3 Proposed Lomond NE Cretaceous Tuscaloosa Trend Cumulative Production 3.1 TCF, 121 mmbc Tuscaloosa Trend LOUISIANA Lomond

  16. Slide 16: Deepwater Gulf of Mexico Update

    Deepwater Gulf of Mexico Update Louisiana Marlin (100% WI) Texas • Field Will be Shut-in for Planned Platform Maintenance and Subsea Tieback Holstein (100% WI) Upgrades in 3Q14 • Production Facilities Capable of Handling Over 100,000 BOED • Platform Rig Refurbishment Began in 2H 2013; Drilling Activ

  17. Slide 17: Mississippi Canyon Area

    Mississippi Canyon Area 2 VK0868 VK0869 VK0870 VK0871 VK0872 VK0873 Marlin  19 identified exploration and Ram Powell development projects targeting VK0912 VK0913 VK0914 VK0915 Dorado VK0916 VK0916 9 stacked, high quality Miocene MMBOE reservoir sands VK0956 VK0957 VK0958 VK0959 VK0960 VK0961  263

  18. Slide 18: Mississippi Canyon King M63

    Mississippi Canyon King M63 King Field Composite Type Log 80 MMBOE Net Resource Potential Prop M63 #1 NW Fault Block A’ Prop #3 Prop M63 #1ST1 Prop #2 Prop D3ST M63 Sand Attic Prop D9 D3 M63 Sand Producer A 18

  19. Slide 19: Mississippi Canyon Horn Mountain Deep

    Mississippi Canyon Horn Mountain Deep Horn Mountain Composite Type Log 47 MMBOE Net Resource Potential Deeper pool test below proven J&M Sand field pays targeting the M56 Sand which has been found productive in several nearby exploration prospects Large structural closure with numerous offset opport

  20. Slide 20: Green Canyon Area

    Green Canyon Area 3 Holstein Tungsten Deep 599 598 600 601 602 603  14 identified exploration and 25 65 MMBOE development projects targeting MMBOE Holstein highly productive Miocene and 642 643 51644 645 646 647 MMBOE 588 Wilcox sands MMBOE  972 MMBOE net resource 686 687 688 689 690 691 potential

  21. Slide 21: Green Canyon Holstein Deep Development

    Green Canyon Holstein Deep Development Miocene Type Log 86 MMBOE Net Resource Potential GC 643 OCS-G 16772 #1 & 1ST2 Oil Proposed Wells 21

  22. Slide 22: Keathley Canyon Area

    Keathley Canyon Area 4 Pliocene Miocene  1 identified development East Breaks Garden Banks project and 4 identified exploration projects targeting highly productive Pliocene and Diana Miocene sands Hoover Keathley Canyon  Lucius, the development project is currently in Lucius completion Alaminos 

  23. Slide 23: Keathley Canyon Lucius Development

    Keathley Canyon Lucius Development 82 MMBOE Net Resource Potential Pliocene Lucius 1 Lucius 3 Lucius 6 Lucius 2 Lucius 4 Lucius 5 919 Miocene Completion Miocene Oil Gas Planned Producer 23

  24. Slide 24: Morocco Miocene and Cretaceous Exploration

    Morocco 5 Miocene and Cretaceous Exploration  Approximately 8 identified exploration projects  Spud dates starting January 2015  Net resource potential of 1,728 MMBOE for the first 3 prospects (Toubkal, Jbel Musa and Amtoudi) 24

  25. Slide 25: Freeport-McMoRan Oil & Gas Today

    Freeport-McMoRan Oil & Gas Today High Value Production With Superior Margins + High Impact Development Projects Directed Around Producing Assets + Emerging Exploration From Inboard Lower Tertiary/Cretaceous, International and Deepwater Gulf of Mexico = High Growth Oil Production with Industry Leadin

  26. Slide 26: Addendum

    EXPANDING RESOURCES Addendum

  27. Slide 27: Reconciliation of Cash Operating Margin (Non-GAAP) to Gross Profit (GAAP)

    Reconciliation of Cash Operating Margin (Non-GAAP) to Gross Profit (GAAP) The following table reconciles cash operating margin, a non-GAAP measure, to Gross Profit (GAAP) for the seven months ended December 31, 2013. Management believes this presentation may be useful to investors. FM O&G management

  28. Slide 28: Reconciliation of Cash Operating Margin (Non-GAAP) to Gross Profit (GAAP)

    Reconciliation of Cash Operating Margin (Non-GAAP) to Gross Profit (GAAP) The following table reconciles cash operating margin, a non-GAAP measure, to Gross Profit (GAAP) for the three months ended December 31, 2013. Management believes this presentation may be useful to investors. FM O&G management

  29. Slide 29: Reconciliation of Cash Operating Margin (Non-GAAP) to Gross Profit (GAAP)

    Reconciliation of Cash Operating Margin (Non-GAAP) to Gross Profit (GAAP) The following table reconciles cash operating margin, a non-GAAP measure, to Gross Profit (GAAP) for the three months ended September 30, 2013. Management believes this presentation may be useful to investors. FM O&G managemen

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