Freeport-McMoRan 2013 Annual Report Download - page 19

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OPERATIONAL OVERVIEW
Photos: (Left) The Holstein oil production and drilling platform in the Deepwater Gulf of Mexico,
(Right) Production facilities at the onshore Eagle Ford oil-rich shale play in Texas
OIL & GAS OPERATIONS
During second-quarter 2013, FCX completed the acquisitions of Plains Exploration & Production
Company (PXP) and McMoRan Exploration Co. (MMR). FCX’s portfolio of oil and gas assets
includes oil production facilities and growth potential in the Deepwater Gulf of Mexico, oil
production from the onshore Eagle Ford shale play in Texas, oil production facilities onshore
and offshore California, onshore natural gas resources in the Haynesville shale play in Louisiana,
natural gas production from the Madden area in central Wyoming, and an industry-leading
position in the emerging shallow-water Inboard Lower Tertiary/Cretaceous natural gas trend
on the Shelf of the Gulf of Mexico and onshore in South Louisiana.
FCX’s oil and gas operations have significant proved, probable and possible reserves with
financially attractive organic growth opportunities. The portfolio includes a broad range
of development opportunities and high-potential exploration prospects. Substantial capital
expenditures will be required for FCX’s oil and gas exploration and development activities,
which are expected to be funded by oil and gas operating cash flows and proceeds of asset sales.
Sales volumes from FCX’s oil and gas operations for the seven-month period in 2013
following the acquisitions totaled 38.1 MMBOE and averaged 178 MBOE per day. FCX
expects 2014 sales volumes from its oil and gas operations to approximate 60.7 MMBOE and
average 166 MBOE per day, comprised of approximately 70 percent oil, 24 percent natural
gas and 6 percent natural gas liquids. Sales volumes for the year 2014 include the impacts of
planned platform maintenance and subsea tie-back upgrades on the Marlin facility in the
Gulf of Mexico.
OIL & GAS PROVED
RESERVES BY REGION
464 MMBOE
4 0% California
37% Gulf of Mexico
13% Eagle Ford
10% Haynesville/
Madden/
Other
17