We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Freeport (FCX) Concludes Sale of Deepwater GOM Properties
Read MoreHide Full Article
Freeport-McMoRan Inc. (FCX - Free Report) has concluded the earlier announced sale of its Deepwater Gulf of Mexico (GOM) properties to Anadarko Petroleum Corporation (APC) for $2 billion in cash, before closing adjustments.
Moreover, the mining giant settled a preferred stock obligation with its consolidated subsidiary, Plains Offshore Operations Inc., for $582 million. The deal includes up to $150 million in contingent payments that will be received over time as Anadarko realizes future cash flows in connection with Freeport’s completed third-party production handling agreement for the Marlin platform.
The transaction exhibits Freeport’s aim at allocating its capital and management resources to its global leading copper business and its commitment to pare debt. With the sale transactions announced by Freeport along with its cash flows from operations and previously announced at-the-market equity transactions, the company is on track to attain its stated balance sheet goals.
Moreover, the company expects to complete the previously announced sale of its onshore California oil and gas properties before year-end 2016. Following completion of this transaction, Freeport’s portfolio of oil and gas assets would include oil and natural gas production onshore in South Louisiana and on the GOM Shelf, oil production offshore California and natural gas production from the Madden area in Central Wyoming.
Freeport has outperformed the Zacks categorized Mining-Non Ferrous industry in the past three months. The company’s shares have gained around 45.9% in this period, compared with a 17.9% gain recorded by the industry.
Freeport is taking actions to manage costs and capital spending amid a challenging operating environment. Further, the company remains focused on deleveraging its balance sheet, partly through assets sale. It is also conducting exploration activities near its existing mines with a focus on opportunities to expand reserves that will support the development of additional future production capacity.
Zacks Rank & Key Picks
Freeport currently carries a Zacks Rank #3 (Hold).
In addition to the recommendations that are available to the public on our website, how would you like to follow all Zacks' private buys and sells in real time? Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors. Starting today, for the next month, you can have unrestricted access. Click here for Zacks' private trades >>
Zacks' 7 Best Strong Buy Stocks (New Research Report)
Valued at $99, click below to receive our just-released report predicting the 7 stocks that will soar highest in the coming month.
Image: Bigstock
Freeport (FCX) Concludes Sale of Deepwater GOM Properties
Freeport-McMoRan Inc. (FCX - Free Report) has concluded the earlier announced sale of its Deepwater Gulf of Mexico (GOM) properties to Anadarko Petroleum Corporation (APC) for $2 billion in cash, before closing adjustments.
Moreover, the mining giant settled a preferred stock obligation with its consolidated subsidiary, Plains Offshore Operations Inc., for $582 million. The deal includes up to $150 million in contingent payments that will be received over time as Anadarko realizes future cash flows in connection with Freeport’s completed third-party production handling agreement for the Marlin platform.
The transaction exhibits Freeport’s aim at allocating its capital and management resources to its global leading copper business and its commitment to pare debt. With the sale transactions announced by Freeport along with its cash flows from operations and previously announced at-the-market equity transactions, the company is on track to attain its stated balance sheet goals.
Moreover, the company expects to complete the previously announced sale of its onshore California oil and gas properties before year-end 2016. Following completion of this transaction, Freeport’s portfolio of oil and gas assets would include oil and natural gas production onshore in South Louisiana and on the GOM Shelf, oil production offshore California and natural gas production from the Madden area in Central Wyoming.
Freeport has outperformed the Zacks categorized Mining-Non Ferrous industry in the past three months. The company’s shares have gained around 45.9% in this period, compared with a 17.9% gain recorded by the industry.
Freeport is taking actions to manage costs and capital spending amid a challenging operating environment. Further, the company remains focused on deleveraging its balance sheet, partly through assets sale. It is also conducting exploration activities near its existing mines with a focus on opportunities to expand reserves that will support the development of additional future production capacity.
Zacks Rank & Key Picks
Freeport currently carries a Zacks Rank #3 (Hold).
Some better-ranked companies in the basic materials space include Denison Mines Corp. (DNN - Free Report) , Vale S.A. (VALE - Free Report) and Fission Uranium Corp. (FCUUF - Free Report) , all carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Denison Mines has an expected earnings growth rate of 71.4% for the current year.
Vale has an expected earnings growth of 341.4% for the current year.
Fission Uranium has an expected earnings growth rate of 25% for the current year.
FREEPT MC COP-B Price
FREEPT MC COP-B Price | FREEPT MC COP-B Quote
Zacks’ Best Private Investment Ideas
In addition to the recommendations that are available to the public on our website, how would you like to follow all Zacks' private buys and sells in real time? Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors. Starting today, for the next month, you can have unrestricted access. Click here for Zacks' private trades >>