Freeport-McMoRan Copper & Gold Inc.
) subsidiary - Freeport-McMoRan Oil & Gas ("FM&OG") -
announced that it has completed the acquisition of some of
) interests in the Deepwater Gulf of Mexico ("GOM").
After the exercise of preferential purchase rights by other working
interest owners in the Lucius project, FM O&G bought 51.2% of
Apache's 11.7% working interest in the oil and gas development
project, 100% of Apache's 12.5% working interest in the Heidelberg
oil development project along with several exploration leases for
$919 million in aggregate. FM O&G now owns about 25.1% working
interest in Lucius.
The acquisition, which Freeport announced in May, was financed with
proceeds from the sale of FM O&G's Eagle Ford Shale assets,
which closed on Jun 20. According to Freeport, the estimated
combined after-tax net proceeds from the transactions are roughly
In Apr 2014, Freeport reported earnings of 49 cents per share for
first-quarter 2014, a decline of roughly 27.9% from the year-ago
earnings of 68 cents. Profit fell 21.3% year over year to $510
million, hurt by lower copper and gold pricing.
The results include net non-cash mark-to-market gains of a penny
per share associated with crude oil and natural gas derivative
contracts. Barring that impact, earnings were 48 cents a share in
the first quarter, surpassing the Zacks Consensus Estimate of 42
Revenues rose roughly 8.8% year over year to around $4.99 billion
in the first quarter, but missed the Zacks Consensus Estimate of
Freeport currently retains a Zacks Rank #3 (Hold).
Other mining companies with favorable Zacks Rank include
Thompson Creek Metals Company
). Both the companies sport a Zacks Rank #2 (Buy).
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