Slide 1: 2nd Quarter 2014 Earnings Conference Call
FREEPORT-McMoRaAn STRENGTH IN RESOURCES 24 Quarter 2014 Earnings Conference Call July 23, 2014
Slide 2: Cautionary Statement Regarding Forward-Looking Statements
[Esa Freerort-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: 2Q14 Highlights
[Ea] Freeront-McMoRan STRENGTH IN RESOURCES 2Q14 Highlights | Focused on Execution = Strong Performance from Mining Operations in the Americas and Africa - Restricted Sales from Indonesia by Government Export Regulations = Solid Contribution from O&G Business = Advanced Important Projects for Profit
Slide 4: Financial Highlights
STRENGTH IN RESOURCES [Esa Freerort-McMoRan Financial Highlights "Sales Data Consolidated Volumes (mm Ibs) 968 954 Average Realization (per Ib) $3.16 $3.17 Site Production & Delivery Unit Costs (per Ib) $1.99 $2.44 Unit Net Cash Costs (per Ib) $1.72 $1.85 Consolidated Volumes (000's ozs) 159 173 Ave
Slide 5: Current PT-FI Operating Status
[Esa Freerort-McMoRan Current PT-FI Operating Status = Export Shipments Restricted Since Mid-January — 2Q14 Impact: Deferred Sales of 150 mm Ibs Copper and 240,000 ozs Gold — YTD Deferrals of 275 mm Ibs Copper and 380,000 ozs Gold = Completing MOU with Government of Indonesia to Enable Resumption of
Slide 6: Long-term Positive Partnership with Indonesia
[Ea] Freeront-McMoRan STRENGTH IN RESOURCES Long-term Positive Partnership with Indonesia = Successful Operations for Over 40 Years GOI Direct Benefits Last 5 Years (2009 - 2013) 2) = Currently Over 90% of Local GDP, ~40% of Papua ($in billions) GDP and 0.8% of National GDP = Contributed Over $60 Bi
Slide 7: Copper Market Commentary
[Esa Freerort-McMoRan Copper Market Commentary Positive Global Demand - China Remains Key with Solid Demand - Rest of the World + General Economic Recovery + Mixed U.S. Economic Data + Europe Gradually Strengthening from Low Base Supply Side Challenges Creating Tightness - Low Levels of Cathode Inve
Slide 8: 2Q 2014 Mining Operating Summary
[Esa Freerort-McMoRan STRENGTH IN RESOURCES 2Q 2014 Mining <~ifl Operating Summary Cash Unit Costs North South . - = (per pound of copper) America America _Indonesia__ Africa Consolidated Site Production & Delivery $1.87 $1.64 $3.86” $1.46 $1.99” By-Product Credits (0.28) (0.23) (1.57) (0.34) (0.43)
Slide 9: Brownfield Development Projects
[Esa Freerort-McMoRan STRENGTH IN RESOURCES Brownfield Development Projects .. Morenci Mill Expansion Cerro Verde Mill Expansion $1.6 billion $4.6 billion * Construction substantially complete * Detailed engineering & procurement substantially complete; construction * Commi: ing & start-up commenced
Slide 10: Portfolio of World Scale Mines
[Esa Freerort-McMoRan Portfolio of World Scale Mines STRENGTH IN RESOURCES Cerro Verde ¥ * Grasberg capable of producing over 1 bin lbs/annum, Morenci (100%) & Cerro Verde in development to produce 1 bln lbs/annum and El Abra & Tenke have potential to produce 1 bin lbs/annum 10
Slide 11: 2Q 2014 Oil & Gas Operating Summary
Freeport-McMoRan 2Q 2014 Oil & Gas Operating Summary Strong Brent & HLS Crude Oil Pricing and * Over 90% of O&G Revenues from Oil/NGLs (excluding derivatives) + Oil Realization: $100/bbI + 92% Differential to Brent $150 $125 $100 $75 NGS /bbI except differential) $50 Brent Average $108 $110 HLS Aver
Slide 12: 2Q 2014 Oil & Gas Transactions
[Esa Freerort-McMoRan 2Q 2014 Oil & Gas Transactions = Sold Eagle Ford Shale Interests to Encana for $3.1 Bn = Acquired $0.9 Bn Deepwater GOM Interests, Including: — Lucius Oil Development (5.1% WI) — Heidelberg Oil Development (12.5% WI) — Complementary Exploration Leases = Important Step in Ongoin
Slide 13: Strategic Position in Deepwater GOM
[Esa Freerort-McMoRan STRENGTH IN RESOURCES Strategic Position in Deepwater GOM Major Exploration/ Development Exploitation Projects Opportunities Operating/ Producing Assets = Significant Current Oil = Financially Attractive = Strategic Acreage Near Production with Strong Development Activities Exi
Slide 14: | y.¢ Development
| y.¢ Development } * Exploration | FM O&G Leases Cc
Slide 15: Lucius & Heidelberg — Deepwater GOM
[Esa Freerort-McMoRan Lucius & Heidelberg — Deepwater GOM Development Projects First Production Expected in 2H 2014 = 300+ MMBOE Gross Resource Potential = Processing Capacity - 80,000 BOPD — 450,000 MCFD = FM O&G 25.1% WI = Water Depth: 7,200’ « First Production Expected in Mid-2016 200-400 MMBOE G
Slide 16: Inboard Lower Tertiary/Cretaceous Activities
[Esa Freerort-McMoRan Inboard Lower Tertiary/ Cretaceous Activities Favorable Reservoir Characteristics lander Judge Digby Field Discovery Type Log Industry Leader in Emerging New Trend LOUISIANA Farthest GateWest E = = Seige 3 -3¢ Exploration eel us m Development Assets] (I Gross Pay i = Highlander
Slide 17: 2014e Outlook
[Esa] Freeront-McMoRan STRENGTH IN RESOURCES 2014e Outlook Sales Outlook Unit Cost Copper: 4.1 Billion Ibs. = $1.50/Ib@ of Copper Gold: 1.3 Million ozs. = $20/BOE Molybdenum: 98 Million Ibs. Oil Equivalents”: 58.4 MMBOE (~70% Oil) Operating Cash Flows Capital Expenditures = ~$6.8 Billion (@$3.25/lb
Slide 18: Sales Profile
[Esa Freerort-McMoRan STRENGTH IN RESOURCES Sales Profile Gold Sales (miltic Copper Sales (billion Ibs) = Lenton oe) Bl 6) 2 1 y 12 L.3* LZ 0 = Jom om iy 2013 2014e 2015e 2016e Tote: Consofdated gat salesincude 123k 02s 2013, 135¢ 005 4 in 2014, 125k0zs in 20152 and 295k 02s in 20162 for noncontroli
Slide 19: 2014e Quarterly Sales
[Esa Freerort-McMoRan STRENGTH IN RESOURCES 2014e Quarterly Sales Gold Sales (th id Copper Sales (million lbs) a Cie oe) 1,250 5 525 7 550 = 350 | 445 175 5 { 1,000 9 a 287 Nel 159 et Lo a 1914 2914 3Q14e* 4Q14e* Note: Consolidated gold sales indiude approximately 20k ozs in 1014, 16kozs in 2014, #S
Slide 20: 2014e Operating Estimates
STRENGTH IN RESOURCES = [Esa Freerort-McMoRan 2014e Operating Estimates 2014e Unit Production Costs North South America America Indonesia2 Africa Consolidated (per pound of copper) Cash Unit Costs “ Site Production & Delivery @ $1.86 $1.67 $2.83 $1.56 $1.95? By-product Credits (0.24) (0.26) (2.25) (
Slide 21: EBITDA and Cash Flow at Various Copper Prices
[Esa Freerort-McMoRan STRENGTH IN RESOURCES EBITDA and Cash Flow at Various Copper Prices $20 = (Ussbilions) $15 - $10 $5 2015e/2016e Mae Se en ay $0 | Cu $3.00/Ib Cu $3.50/Ib Cu $4.00/Ib Average Operating Cash Flow (excluding Working Capital changes) ($1,300 Gold, $12 Molybdenum & $110 Oil) $15 1 —
Slide 22: Capital Expenditures
[Esa Freerort-McMoRan Capital Expenditures (US$ billions) $8 | $7.6 $6 - $45 2. 3.27 [amet Other Mining so | 1.0 2014e 2015e 2016e (1) Gapital expenditure estmates inclide projects in progress. Project spending wil continue to be reviewed and revised subject to market conditions. (2) Primarily inchi
Slide 23: Committed to Balance Sheet Management
[Esa Freerort-McMoRan STRENGTH IN RESOURCES Committed to Balance Sheet Management Strong Track Record = Debt Target: $12 bn by YE 2016 6/30/2014 Balances = Large Resource Base with Strong Cash Gime), Flows and Capital Discipline = Completed Attractive Eagle Ford Transaction in 2Q14 = Considering Add
Slide 24: Summary
[Esa Freerort-McMoRan Summary ‘ A Strong & Focused Organization Maximize Total Shareholder Returns Strong Management of the Base Operational Excellence Achieve Production Targets Effective Cost and Capital Management Manage HSE and Other Inherent Risks Return Driven Growth Prioritize Highest Value O
Slide 25: Reference Slides
FREEPORT-McMoRaAn STRENGTH IN RESOURCES Reference Slides
Slide 26: Quarterly Oil & Gas Operating Summary
[Esa Freerort-McMoRan Quarterly Oil & Gas STRENGTH IN RESOURCES Operating Summary 2Q 2014 Oil & Gas Margins by Region Haynesville/ Operating Margin Eagle Madden/ ne gee California Ford* Other GOM Consolidated Realized Revenue per BOE $94.37 $81.52 $27.59 $87.49 $77.53 Cash Production Costs per BOE 3
Slide 27: 2H 2014e Oil & Gas Operating Estimates
STRENGTH IN RESOURCES 2H 2014e Oil & Gas ill Operating Estimates [Esa Freerort-McMoRan Operating Cost: $2.30/Mcfe California Pricing: NYMEX Operating Cost: $35/bbl Pricing: Brent Based Gulf of Mexico Operating Cost: $17/bbl Pricing: HLS/NYMEX. 2H 2014e Oil & Gas Sales by Region California Haynesvill
Slide 28: Oil & Natural Gas Hedging Positions
STRENGTH IN RESOURCES [Esa Freerort-McMoRan Oil & Natural Gas Hedging Positions 2H 2014 —- 100% Hedged 2015 75 MBbis/d 30 MBbis/d $90 floor $95 floor $70limit § —_ $75 limit $5,74 ADP $6.09 ADP) sitter Se sinet ee Ok i $6.89 ADP. 98 MBbIs/d* 107 MBbls/d* Natural Gas Hedges Indexed to Henry Hub 2H 20
Slide 29: PT-FI Mine Plan
FREeporT-McMoRaNn STRENGTH IN RESOURCES PT-FI Mine Plan PT-FI’s Share of Metal Sales, 2014e-2021e* 2014e — 2018e PT-FI Share Total: 5.4 billion Ibs copper Bl copper, billion Ibs Annual Average: 1.1 billion Ibs EE copper, Gold, million ozs 2014e — 2018e PT-FI Share 3.0 Total: 8.0 million ozs gold - A
Slide 30: Grasberg Minerals District Life-of-Mine Production Sequencing
STRENGTH IN RESOURCES [Esa Freerort-McMoRan PT Freeport Indonesia Grasberg Minerals District Life-of-Mine Production Sequencing* y 4 FOE KUCIIGLILS 7 75 Cae HOTTA COW Term, including extensions 2014 2016 2018 2020 2022 2024 2026 2028 203 2032 2034 203% 2038 2040 2042 Big Gossan Spur ya N Portals (at
Slide 31: Sensitivities (US$ millions)
STRENGTH IN RESOURCES [Esa Freerort-McMoRan Sensitivities (US$ millions) 2015e/2016e Operating EBITDA Cash Flow Copper: +/- $0.10/Ib $520 $370 Molybdenum: +/- $1.00/Ib $90 $70 Gold: +/- $50/ounce $100 $60 Oil Sales: +/- $5/bbI@ $225 $190 Oil Sales Net of Diesel Costs:“7 +/- $5/bbl $180 $155 Natural