How Will Freeport’s Recently Announced Asset Sales Impact Its Revenue & EBITDA Breakdown?
Freeport-McMoRan announced the signing of an agreement to sell its Deepwater Gulf Of Mexico (GOM) oil and gas assets yesterday, as the company looks to lower its outstanding debt. [1] The agreement to sell the Deepwater GOM assets, which account for an estimated 54% of the Oil & Gas division’s revenue (73 MBOE production per day out of an average of 135 MBOE per day for the Oil & Gas division in the first half of 2016), would reduce the share of the company’s Oil and Gas division in the company’s overall revenue and EBITDA. [1] [2] Similarly, Freeport’s agreement to sell off its African copper mining operations, announced earlier in the year and also targeted at debt reduction, will also materially alter Freeport’s revenue and EBITDA breakdown. With both these transactions expected to close in Q4, the composition of Freeport’s 2017 revenue and EBITDA breakdown would change as shown below.
Have more questions about Freeport-McMoRan? See the links below.
- What Is Freeport-McMoRan’s Fundamental Value Based On 2015 Results?
- What Is Freeport-McMoRan’s Revenue And EBITDA Breakdown?
- How Has Freeport-McMoRan’s Revenue Composition Changed Over The Last 5 Years?
- By What Percentage Did Freeport-McMoRan’s Revenue & EBITDA Decline Over The Last 5 Years?
- By What Percentage Can Freeport-McMoRan’s Revenue & EBITDA Change Over The Next 3 Years?
- How Will Freeport-McMoRan’s Revenue Composition Change by 2020?
- Why Have Copper Prices Declined Over The Past Year?
- Why Is China Important For The Global Copper Industry ?
Notes:
- Will Freeport Stock Recover To Pre-Inflation Shock Highs Of $52 Per Share?
- What To Expect From Freeport’s Q2 Results
- How Is Freeport Stock Faring Amid Volatile Copper Prices?
- Copper Prices Have Recovered A Bit. Is Freeport Stock Worth A Look?
- Lower Copper Prices Will Weigh On Freeport’s Q3 Results
- What’s Happening With Freeport-McMoRan Stock?
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Notes:- Freeport-McMoRan Announces Agreement to Sell its Deepwater Gulf of Mexico Properties, Freeport-McMoRan News Release [↩] [↩]
- Freeport-McMoRan’s Q2 2016 10-Q, SEC [↩]