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FCX

Freeport McMoRan

$9.64

-0.41 (-4.08%)

08:05
10/14/16
10/14
08:05
10/14/16
08:05

Freeport McMoRan announces agreement to sell onshore California O&G properties

Freeport-McMoRan announced a purchase and sale agreement to sell its onshore California oil and gas properties to Sentinel Peak Resources California LLC for total consideration of $742 million, including contingent consideration. Under the terms of the agreement, FCX will receive cash consideration of $592 million at closing and additional consideration of $50 million per annum in each of 2018, 2019 and 2020 if the price of Brent crude oil averages $70 per barrel or higher in that calendar year. The purchasers will also assume future abandonment obligations associated with the properties, which had a book value of approximately $0.1 billion at June 30, 2016. The transaction has an effective date of July 1, 2016, and is expected to close in fourth-quarter 2016, subject to customary closing conditions. For the twelve month period ended June 30, 2016, net daily sales volumes from these properties averaged 28.6 thousand barrels of oil per day. Over this period, revenues totaled $0.4 billion, cash production costs totaled $0.3 billion and capital expenditures totaled $0.04 billion. Net cash proceeds will be used for debt repayment. FCX does not expect to record a material gain or loss on the transaction. Following completion of this transaction and the previously announced Deepwater Gulf of Mexico sale, FCX's portfolio of oil and gas assets would include oil and natural gas production onshore in South Louisiana and on the Shelf of the GOM, oil production offshore California and natural gas production from the Madden area in Central Wyoming. In the second quarter of 2016, these properties produced an average of 8.6 thousand barrels of oil and natural gas liquids per day and 78 million cubic feet of natural gas per day.

  • 25

    Oct

FCX Freeport McMoRan
$9.64

-0.41 (-4.08%)

10/03/16
DBAB
10/03/16
UPGRADE
DBAB
Buy
Freeport McMoRan upgraded to Buy from Hold at Deutsche Bank
10/03/16
DBAB
10/03/16
UPGRADE
DBAB
Buy
Barrick, Freeport, Pan American upgraded to Buy at Deutsche Bank
Deutsche Bank analyst Jorge Beristain noted that while commodity prices rallied in Q3 Metals & Mining companies continued to get their "financial houses in order" and he expects the trend to continue for the next few quarters. The analyst, who recommends investing in non-integrated companies as well as building Precious exposure, is upgrading several stocks in the sector, including Barrick Gold (ABX), Freeport McMoRan (FCX), Pan American Silver (PAAS), all to Buy from Hold. The analyst also upgraded a number of others in the sector to Hold from Sell this morning.
10/03/16
10/03/16
UPGRADE

On The Fly: Top five analyst upgrades
Catch up on today's top five analyst upgrades with this list compiled by The Fly: 1. Dow Chemical (DOW) and DuPont (DD) were upgraded to Buy from Neutral at Citi with analyst P.J. Juvekar citing he opportunity presented by the proposed merger. 2. Freeport McMoRan (FCX), Barrick Gold (ABX), and Pan American Silver (PAAS) were upgraded to Buy from Hold at Deutsche Bank. 3. LogMeln (LOGM) upgraded to Overweight from Equal Weight at Barclays with analyst Raimo Lenschow saying the pending merger with Citrix's (CTXS) divested GoTo assets creates a "great new opportunity." 4. Halliburton (HAL) upgraded to Buy from Hold at Societe General. 5. Coty (COTY) upgraded to Buy from Neutral at BofA/Merrill with analyst Olivia Tong saying she believes Coty is at the beginning of a potential transformation with the pending closure of the P&G Beauty deal this week that could bring increased scale as well as a more targeted operational structure. This list is just a portion of The Fly's full analyst coverage. To see The Fly's full Street Research coverage, click here.
10/13/16
DBAB
10/13/16
UPGRADE
Target $77
DBAB
Buy
Anadarko upgraded to Buy from Hold at Deutsche Bank
Deutsche Bank analyst Ryan Todd upgraded Anadarko Petroleum (APC) to Buy saying the company's Freeport McMoRan (FCX) transaction is "highly attractive" and addressed his primary concerns around its funding profile, growth and leverage. The analyst believes Anadarko's U.S. onshore assets are "best-in-class." Todd keeps a $77 price target for the shares.

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