Freeport-McMoRan 2013 Annual Report Download - page 22

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FINANCIAL PERFORMANCE & POLICY
Operating Cash Flow and Cash Position
FCX generated operating cash flows of $6.1 billion in 2013, which were net of $0.4 billion of
working capital uses and changes in other tax payments, and included $1.8 billion generated
from oil and gas operations for the seven-month period following the acquisitions. At
December 31, 2013, FCX had consolidated cash of $2.0 billion (of which $1.3 billion was
available to the parent company, net of noncontrolling interests’ share, taxes and other costs).
Investing Activities
FCX’s capital expenditures totaled $5.3 billion in 2013 (including $2.3 billion for major mining
projects and $1.45 billion for oil and gas operations for the seven-month period following
the acquisitions). Capital expenditures for major mining projects were primarily associated
with the expansion projects at the Morenci and Cerro Verde mines, and the underground
development activities at the Grasberg minerals district. During 2013, FCX also paid
$3.5 billion to acquire PXP and $1.6 billion to acquire MMR.
Financing Activities
During 2013, FCX sold $6.5 billion of senior notes in four tranches with a weighted-average
interest rate of 3.9 percent and borrowed $4.0 billion under an unsecured bank term loan with
an interest rate currently at LIBOR plus 1.50 percent. Net proceeds from these borrowings
were primarily used to fund the acquisitions of PXP and MMR, and to repay certain debt of
PXP. During 2013, FCX also repaid $0.7 billion of senior notes and redeemed $0.2 billion of
preferred stock assumed in the acquisitions of PXP and MMR.
Common stock dividends paid during 2013 totaled $2.3 billion, which included $1.0 billion for
a supplemental dividend of $1.00 per share paid in July 2013. FCX’s current annual dividend
rate for its common stock is $1.25 per share ($0.3125 per share quarterly).
Freeport-McMoRan
has a long-
standing tradition
of seeking to build
shareholder value.
Photo: A Freeport-McMoRan Oil & Gas production facility at the Eagle Ford onshore shale oil play in Texas
20 | FREEPORT-McMoRan