How Would The Sale Of Freeport’s Onshore California Oil & Gas Assets Impact The Company?

-11.06%
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45.88
Market
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Freeport-McMoRan Inc. has announced the signing of an agreement to sell off its Onshore California Oil and Gas assets, with debt reduction the primary focus of the transaction. [1] The announcement to sell off the Onshore California assets follows closely on the heels of an announcement to sell off the company’s Deepwater Gulf Of Mexico assets. Both these transactions are expected to close in the fourth quarter. Based on Freeport’s average daily oil and gas sales volumes, the completion of these two transactions could lower the company’s oil and gas sales volumes by around 75%. In addition, along with the proceeds from the sale of the company’s African copper mining assets, the sale of the oil and gas assets could lower Freeport’s net debt by around 16% by year end, as illustrated below.

FCX Onshore California O&G Sale 2

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Notes:

1) The purpose of these analyses is to help readers focus on a few important things. We hope such lean communication sparks thinking, and encourages readers to comment and ask questions on the comment section, or email content@trefis.com
2) Figures mentioned are approximate values to help our readers remember the key concepts more intuitively. For precise figures, please refer to our complete analysis for Freeport-McMoRan

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Notes:
  1. Freeport-McMoRan Announces Agreement To Sell Onshore California Oil & Gas Properties For $742 Million, Including Contingent Consideration, Freeport-McMoRan News Release []