Freeport-McMoRan 2014 Annual Report Download - page 79

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MANAGEMENT’S DISCUSSION AND ANALYSIS
77
U.S. Oil & Gas Product Revenues, Cash Production Costs and Realizations (continued)
Total U.S.
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 cash (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 noncash mark-to-market losses on derivative contracts (312)
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 $ 99.67 $ 3.73 $ 38.20 $ 77.45
Realized cash (losses) gains on derivative contracts (1.35) 0.26 — (0.58)
Realized revenues $ 98.32 $ 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 noncash mark-to-market losses on derivative contracts (8.20)
Plus: other net adjustments 0.04
Gross profit $ 14.97
Reconciliation to Amounts Reported
Depreciation,
Production Depletion and
Revenues and Delivery Amortization
(In millions)
Totals presented above $ 2,949 $ 653 $ 1,364
Realized cash losses on derivative contracts (22) — —
Net noncash mark-to-market losses on derivative contracts (312) — —
Accretion and other costs — 29 —
Other net adjustments 1 — —
U.S. oil & gas operations 2,616 682 1,364
Total mining
a
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. Represents the combined total for all mining operations and the related eliminations, as presented in Note 16.