Freeport-McMoRan 2014 Annual Report Download - page 78

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MANAGEMENT’S DISCUSSION AND ANALYSIS
76
U.S. Oil & Gas Product Revenues, Cash Production Costs and Realizations
Total U.S.
Year Ended December 31, 2014 Oil Natural Gas NGLs Oil & Gas
(In millions)
Oil and gas revenues before derivatives
$ 3,721 $ 353 $ 128 $ 4,202
Realized cash losses on derivative contracts
(111) (11) — (122)
Realized revenues
$ 3,610 $ 342 $ 128 4,080
Less: cash production costs
1,140
Cash operating margin
2,940
Less: depreciation, depletion and amortization
2,291
Less: impairment of oil and gas properties
3,737
Less: accretion and other costs
97
Plus: net noncash mark-to-market gains on derivative contracts
627
Plus: other net adjustments
3
Gross loss
$ (2,555)
Oil (MMBbls)
40.1
Gas (Bcf)
80.8
NGLs (MMBbls)
3.2
Oil Equivalents (MMBOE)
56.8
Oil Natural Gas NGLs
(per barrel) (per MMBtu) (per barrel) Per BOE
Oil and gas revenues before derivatives
$ 92.76 $ 4.37 $ 39.73 $ 73.98
Realized cash losses on derivative contracts
(2.76) (0.14) — (2.15)
Realized revenues
$ 90.00 $ 4.23 $ 39.73 71.83
Less: cash production costs
20.08
Cash operating margin
51.75
Less: depreciation, depletion and amortization
40.34
Less: impairment of oil and gas properties
65.80
Less: accretion and other costs
1.69
Plus: net noncash mark-to-market gains on derivative contracts
11.03
Plus: other net adjustments
0.06
Gross loss
$ (44.99)
Reconciliation to Amounts Reported
Depreciation,
Production Depletion and
Revenues and Delivery Amortization
(In millions)
Totals presented above
$ 4,202 $ 1,140 $ 2,291
Realized cash losses on derivative contracts
(122) — —
Net noncash mark-to-market gains on derivative contracts
627 — —
Accretion and other costs
— 97 —
Impairment of oil and gas properties
— — 3,737
Other net adjustments
3 — —
U.S. oil & gas operations
4,710 1,237 6,028
Total mining
a
16,728 10,665 1,558
Corporate, other & eliminations
— 2 14
As reported in FCX’s consolidated financial statements
$ 21,438 $ 11,904 $ 7,600
a. Represents the combined total for mining operations and the related eliminations, as presented in Note 16.