Freeport-McMoRan 2013 Annual Report Download - page 77

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MANAGEMENT’S DISCUSSION AND ANALYSIS
2013 ANNUAL REPORT | 75
U.S. Oil & Gas Product Revenues and Cash Production Costs
Total
Seven months from June 1, 2013, to December 31, 2013 Oil Natural Gas NGLs Oil & Gas
(In millions)
Oil and gas revenues before derivatives
$ 2,655 $ 202 $ 92 $ 2,949
Realized (losses) gains on derivative contracts
(36) 14 — (22)
Realized revenues
$ 2,619 $ 216 $ 92 2,927
Less: cash production costs
653
Cash operating margin
2,274
Less: depreciation, depletion and amortization
1,364
Less: accretion and other costs
29
Plus: net unrealized and noncash realized losses on derivative contracts
(312)
a
Plus: other net adjustments
1
Gross profit
$ 570
Oil (MMBbls)
26.6
Gas (Bcf)
54.2
NGLs (MMBbls)
2.4
Oil Equivalents (MMBOE)
38.1
Oil Natural Gas NGLs
(per barrel) (per MMBtu) (per barrel) Per BOE
Oil and gas revenues before derivatives
$ 9 9.6 7 $ 3.73 $ 38.20 $ 77.45
Realized (losses) gains on derivative contracts
(1.35) 0.26 — (0.58)
Realized revenues
$ 9 8.3 2 $ 3.99 $ 38.20 76.87
Less: cash production costs
17.14
Cash operating margin
59.73
Less: depreciation, depletion and amortization
35.81
Less: accretion and other costs
0.79
Plus: net unrealized and noncash realized losses on derivative contracts
(8.20)
a
Plus: other net adjustments
0.04
Gross profit
$ 14.97
Reconciliation to Amounts Reported
Depreciation,
Production Depletion and
Revenues and Delivery Amortization
(In millions)
Revenues, before derivative contracts
$ 2,949 $ — $ —
Realized losses on derivative contracts
(22) — —
Unrealized and noncash realized losses on derivative contracts
(312)
a
— —
Cash production costs
— 653 —
Accretion and other costs
— 29 —
Depreciation, depletion and amortization
— — 1,364
Other net adjustments
1 — —
U.S. oil & gas operations
2,616 682 1,364
Total mining
b
18,301 11,151 1,422
Corporate, other & eliminations
4 7 11
As reported in FCX’s consolidated financial statements
$ 20,921 $ 11,840 $ 2,797
a. Includes $85 million ($2.23 per BOE) of noncash losses realized on 2013 derivative contracts resulting from amounts recorded as part of acquisition accounting.
b. Represents the combined total for all mining operations and the related eliminations, as presented in Note 16.