Freeport-McMoRan Reports Fourth-Quarter and Year Ended December 31, 2015 Results

Freeport-McMoRan Inc. (NYSE: FCX):

• Net loss attributable to common stock totaled $4.1 billion, $3.47 per share, for fourth-quarter 2015 and $12.2 billion, $11.31 per share, for the year 2015. After adjusting for net charges totaling $4.1 billion, $3.45 per share, for fourth-quarter 2015 and $12.1 billion, $11.23 per share, for the year 2015, adjusted net loss totaled $21 million, $0.02 per share, for fourth-quarter 2015 and $89 million, $0.08 per share, for the year 2015.
• Consolidated sales totaled 1.15 billion pounds of copper, 338 thousand ounces of gold, 20 million pounds of molybdenum and 13.2 million barrels of oil equivalents (MMBOE) for fourth-quarter 2015 and 4.07 billion pounds of copper, 1.25 million ounces of gold, 89 million pounds of molybdenum and 52.6 MMBOE for the year 2015.
• Consolidated sales for the year 2016 are expected to approximate 5.1 billion pounds of copper, 1.8 million ounces of gold, 73 million pounds of molybdenum and 57.6 MMBOE, including 1.1 billion pounds of copper, 200 thousand ounces of gold, 19 million pounds of molybdenum and 12.4 MMBOE for first-quarter 2016.
• Average realized prices were $2.18 per pound for copper, $1,067 per ounce for gold and $48.88 per barrel for oil (including $11.39 per barrel for cash gains on derivative contracts) for fourth-quarter 2015.
• Consolidated unit net cash costs averaged $1.45 per pound of copper for mining operations and $16.17 per barrel of oil equivalents (BOE) for oil and gas operations for fourth-quarter 2015. Consolidated unit net cash costs are expected to average $1.10 per pound of copper for mining operations and $15 per BOE for oil and gas operations for the year 2016.
• Operating cash flows totaled $612 million for fourth-quarter 2015 and $3.2 billion (including $0.4 billion in working capital sources and changes in other tax payments) for the year 2015. Based on current sales volume and cost estimates and assuming average prices of $2.00 per pound for copper, $1,100 per ounce for gold, $4.50 per pound for molybdenum and $34 per barrel for Brent crude oil, operating cash flows for the year 2016 are expected to approximate $3.4 billion (net of $0.6 billion in idle rig costs).
• Capital expenditures totaled $1.3 billion for fourth-quarter 2015 (including $0.6 billion for major projects at mining operations and $0.5 billion for oil and gas operations) and $6.35 billion for the year 2015 (including $2.4 billion for major projects at mining operations and $3.0 billion for oil and gas operations). Capital expenditures for the year 2016 are expected to approximate $3.4 billion, including $1.4 billion for major projects at mining operations and $1.5 billion for oil and gas operations, and excluding $0.6 billion in idle rig costs.
• In response to further weakening in market conditions in fourth-quarter 2015 and early 2016, FCX today announced additional initiatives to accelerate its debt reduction plans and is actively engaged in discussions with third parties regarding potential transactions. These initiatives follow a series of actions taken during 2015 to reduce costs and capital spending to strengthen FCX's financial position.
• Since August 2015, FCX has sold 210 million shares of its common stock and generated gross proceeds of approximately $2 billion under its at-the-market equity programs.
• At December 31, 2015, consolidated debt totaled $20.4 billion and consolidated cash totaled $224 million. At December 31, 2015, FCX had no amounts drawn under its $4.0 billion credit facility.

Freeport-McMoRan Inc. (NYSE: FCX) reported a net loss attributable to common stock of $4.1 billion ($3.47 per share) for fourth-quarter 2015 and $12.2 billion ($11.31 per share) for the year 2015, compared with a net loss of $2.9 billion ($2.75 per share) for fourth-quarter 2014 and $1.3 billion ($1.26 per share) for the year 2014. FCX’s net loss attributable to common stock included net charges totaling $4.1 billion ($3.45 per share) in fourth-quarter 2015, $12.1 billion ($11.23 per share) for the year 2015, $3.1 billion ($3.01 per share) in fourth-quarter 2014 and $3.35 billion ($3.23 per share) for the year 2014, primarily for the reduction of the carrying value of oil and gas properties and other items described in the supplemental schedule, "Adjusted Net (Loss) Income," on page IX, which is available on FCX's website, "fcx.com."

Richard C. Adkerson, President and Chief Executive Officer, said, "As we enter 2016, our clear and immediate objective is to restore FCX’s balance sheet and position the Company appropriately to enhance shareholder value in the current market environment. We are responding swiftly and decisively to achieve this objective. Our high-quality asset base provides opportunities for significant debt reduction while retaining a substantial business with attractive low-cost, long-lived reserves and resources that will enable our shareholders to benefit from improved conditions in the future. We achieved several important operational milestones during the fourth quarter while taking aggressive actions to adjust our plans in response to the decline in prices for our primary products.”

SUMMARY FINANCIAL DATA

			Three Months Ended										Years Ended
			December 31,										December 31,
			2015					2014					2015					2014
			(in millions, except per share amounts)
Revenuesa,b			$	3,795				$	5,235				$	15,877				$	21,438
Operating (loss) incomea,b			$	(4,100	)			$	(3,299	)			$	(13,382	)			$	97
Net loss attributable to common stockb,c,d			$	(4,081	)			$	(2,852	)			$	(12,236	)			$	(1,308	)
Diluted net loss per share of common stockb,c,d			$	(3.47	)			$	(2.75	)			$	(11.31	)			$	(1.26	)
Diluted weighted-average common shares outstanding			1,177					1,039					1,082					1,039
Operating cash flowse			$	612				$	1,118				$	3,220				$	5,631
Capital expenditures			$	1,298				$	1,800				$	6,353				$	7,215
At December 31:
Cash and cash equivalents			$	224				$	464				$	224				$	464
Total debt, including current portion			$	20,428				$	18,849				$	20,428				$	18,849
a. For segment financial results, refer to the supplemental schedules, "Business Segments," beginning on page XII, which are available on FCX's website, "fcx.com."
b. Includes unfavorable adjustments to provisionally priced concentrate and cathode copper sales recognized in prior periods totaling $72 million ($38 million to net loss attributable to common stock or $0.03 per share) in fourth-quarter 2015, $28 million ($13 million to net loss attributable to common stock or $0.01 per share) in fourth-quarter 2014, $107 million ($53 million to net loss attributable to common stock or $0.05 per share) for the year 2015 and $118 million ($65 million to net loss attributable to common stock or $0.06 per share) for the year 2014. For further discussion, refer to the supplemental schedule, "Derivative Instruments," on page XI, which is available on FCX's website, "fcx.com."
c. Includes net charges totaling $4.1 billion ($3.45 per share) in fourth-quarter 2015, $3.1 billion ($3.01 per share) in fourth-quarter 2014, $12.1 billion ($11.23 per share) for the year 2015 and $3.35 billion ($3.23 per share) for the year 2014, primarily for the reduction of the carrying value of oil and gas properties and other items described in the supplemental schedule, "Adjusted Net (Loss) Income," on page IX, which is available on FCX's website, "fcx.com."
d. FCX defers recognizing profits on intercompany sales until final sales to third parties occur. For a summary of net impacts from changes in these deferrals, refer to the supplemental schedule, "Deferred Profits," on page XI, which is available on FCX's website, "fcx.com."
e. Includes net working capital sources (uses) and changes in other tax payments of $31 million for fourth-quarter 2015, $67 million for fourth-quarter 2014, $373 million for the year 2015 and $(632) million for the year 2014.

REVISED OPERATING PLANS, INITIATIVES AND DEBT REDUCTION PLANS

FCX announced today additional initiatives to accelerate its debt reduction plans. FCX will continue to focus on cost and capital management and cash flow generation from its operations under the current weak commodity price environment and is taking further immediate actions to accelerate its debt reduction plans and enhance shareholder value through pursuing asset sales and joint venture transactions. Several initiatives are currently being advanced, including an evaluation of alternatives for the oil and gas business (FM O&G) as well as several transactions involving certain of its mining assets. FCX expects to achieve progress on these initiatives during the first half of 2016.

During 2015, FCX took aggressive actions to enhance its financial position in response to market conditions, including significant reductions in capital spending, production curtailments at certain North and South America mines and actions to reduce operating, exploration and administrative costs. These actions included:

• A 29 percent reduction in estimated 2016 capital expenditures, including idle rig costs (from $5.6 billion in July 2015 to $4.0 billion in January 2016)
• Reductions of 350 million pounds in annual copper production and 34 million pounds in annual molybdenum production to improve cash flow at low prices
• A 28 percent reduction in estimated average unit net cash costs for the year 2016 ($1.10 per pound of copper estimated for 2016, compared with $1.53 per pound in 2015)
• A 19 percent reduction in estimated oil and gas cash production costs for 2016 (approximately $15 per BOE estimated for 2016, compared with $18.59 per BOE in 2015)
• Suspension of FCX's annual common stock dividend of $0.20 per share (an approximate $250 million in savings based on 1.25 billion common shares outstanding at December 31, 2015)
• Completion of approximately $2 billion in equity sales from at-the-market equity programs

Commodity prices weakened further in fourth-quarter 2015 and early 2016. Current copper spot prices of $2.00 per pound are 15 percent below prices at September 30, 2015, and the current Brent crude spot price of $30.50 per barrel is 37 percent below prices at September 30, 2015.

While we believe the physical copper market is essentially balanced, concerns about the global economy, and particularly the weakening of the Chinese economy, have dominated financial market sentiment and negatively impacted commodity prices, including copper. Oil prices have also weakened to multi-year lows in response to excess global supplies and economic conditions.

Current market conditions and uncertainty about the timing of economic and price recovery require FCX to take further aggressive actions to strengthen its financial position, reduce debt and re-focus its portfolio of assets. FCX’s strategy will focus on its global leading position in the copper industry. FCX will continue to manage its production activities, spending on capital projects and operations, and the administration of its business to enhance cash flows, and intends to complete significant asset sale transactions to reduce debt.

FCX remains confident about the longer term outlook for copper prices based on the global demand and supply fundamentals. With its established reserves and large-scale current production base, its significant portfolio of undeveloped resources, and its global organization of highly qualified and dedicated workers and management, FCX is well positioned to generate significant asset sale proceeds while retaining an attractive portfolio of high-quality assets.

Mining Operations. Following revisions to its mine plans, all of FCX’s copper production is cash flow positive at current spot prices, net of sustaining capital expenditures. Additionally, FCX has evaluated its current operating plans at lower prices to ensure that the current plans are appropriate. FCX will continue to monitor market conditions and intends to make further adjustments as required to maintain all operations as cash flow positive. The Cerro Verde expansion project, which was completed in late 2015, combined with strong operating performance in North America and Africa and expected higher grades from Grasberg in the second half of 2016 are expected to enable FCX to generate positive cash flow from its mining business in 2016 at current prices.

Based on current sales volume and cost estimates and assuming average prices of $2.00 per pound copper, $1,100 per ounce gold and $4.50 per pound of molybdenum, FCX estimates that operating cash flows from the mining business for the year 2016 would exceed capital expenditures from the mining business by approximately $2 billion. Capital expenditures from the mining business are expected to total $1.9 billion in 2016 (including $0.5 billion for sustaining capital, $0.8 billion for Grasberg underground development and $0.4 billion in remaining costs for the Cerro Verde expansion). FCX continues to review its capital projects and costs to maximize cash flow in a weak commodity price environment and to preserve its resources for anticipated improved future market conditions.

Oil & Gas Operations. In October 2015, FCX announced that its Board is undertaking a strategic review of alternatives for FM O&G. FCX and its advisors are actively engaged with interested participants in a process to evaluate opportunities that include a sale of assets and joint venture arrangements that would generate cash proceeds for debt repayment. FM O&G’s high-quality asset base, substantial underutilized Deepwater Gulf of Mexico (GOM) infrastructure, large inventory of low-risk development opportunities, and talented and experienced personnel and management team provide alternatives to generate value.

In the interim, FCX continues to manage oil and gas costs and capital expenditures aggressively. FM O&G is undertaking a near-term deferral of exploration and development activities by idling the three deepwater drillships it has under contract. Past investments are expected to enable production to be increased from fourth-quarter 2015 rates of 144 thousand barrels of oil equivalents (MBOE) per day to an average of 157 MBOE per day in 2016 and 2017, and cash production costs to decline to approximately $15 per BOE in 2016 and 2017.

FM O&G expects to incur idle rig costs associated with its drillship contracts totaling an estimated $0.6 billion in 2016 and $0.4 billion in 2017.

Cash Flow Outlook. Based on copper prices of $2.00 per pound and Brent crude oil prices of $34 per barrel, FCX estimates consolidated operating cash flows of $3.4 billion (net of approximately $0.6 billion in idle rig costs) and capital expenditures of $3.4 billion for the year 2016. The impact of price changes on 2016 operating cash flows would approximate $440 million for each $0.10 per pound change in the average price of copper, $55 million for each $50 per ounce change in the average price of gold, $60 million for each $2 per pound change in the average price of molybdenum and $135 million for each $5 per barrel change in the average Brent crude oil price.

Using similar price assumptions and the recent 2017 future price of $40 per barrel for Brent crude oil, FCX estimates consolidated operating cash flows of $3.5 billion (net of approximately $0.4 billion in idle rig costs) and capital expenditures of $2.3 billion for the year 2017.

The projections included in this press release do not reflect the results of any potential transactions with third parties to raise cash for debt reduction.

SUMMARY OPERATING DATA

			Three Months Ended										Years Ended
			December 31,										December 31,
			2015					2014a					2015					2014a,b
Copper (millions of recoverable pounds)
Production			1,122					998					4,017					3,904
Sales, excluding purchases			1,145					972					4,070					3,888
Average realized price per pound			$	2.18				$	2.95				$	2.42				$	3.09
Site production and delivery costs per poundc			$	1.64				$	1.87				$	1.78				$	1.90
Unit net cash costs per poundc			$	1.45				$	1.47				$	1.53				$	1.51
Gold (thousands of recoverable ounces)
Production			350					368					1,257					1,214
Sales, excluding purchases			338					377					1,247					1,248
Average realized price per ounce			$	1,067				$	1,193				$	1,129				$	1,231
Molybdenum (millions of recoverable pounds)
Production			20					22					92					95
Sales, excluding purchases			20					21					89					95
Average realized price per pound			$	6.94				$	11.78				$	8.70				$	12.74
Oil Equivalents
Sales volumes:
MMBOE			13.2					12.1					52.6					56.8
MBOE per day			144					131					144					156
Cash operating margin per BOE:d
Realized revenues			$	37.49				$	59.95				$	43.54				$	71.83
Cash production costs			16.17					21.93					18.59					20.08
Cash operating margin			$	21.32				$	38.02				$	24.95				$	51.75
a. Includes the results of the Candelaria and Ojos del Salado mines (Candelaria/Ojos) that were sold in November 2014. Sales volumes from Candelaria/Ojos totaled 32 million pounds of copper and 8 thousand ounces of gold for fourth-quarter 2014 and 268 million pounds of copper and 67 thousand ounces of gold for the year 2014.
b. The year 2014 includes the results of the Eagle Ford properties that were sold in June 2014. Sales volumes from Eagle Ford totaled 8.7 MMBOE (24 MBOE per day) for the year 2014.
c. Reflects per pound weighted-average production and delivery costs and unit net cash costs (net of by-product credits) for all copper mines, excluding net noncash and other costs. For reconciliations of per pound unit costs by operating division to production and delivery costs applicable to sales reported in FCX's consolidated financial statements, refer to the supplemental schedules, "Product Revenues and Production Costs," beginning on page XV, which are available on FCX's website, "fcx.com."
d. Cash operating margin for oil and gas operations reflects realized revenues less cash production costs. Realized revenues exclude noncash mark-to-market adjustments on derivative contracts, and cash production costs exclude accretion and other costs. For reconciliations of realized revenues and cash production costs per BOE to revenues and production and delivery costs reported in FCX's consolidated financial statements, refer to the supplemental schedules, “Product Revenues and Production Costs,” beginning on page XV, which are available on FCX's website, “fcx.com.”

Consolidated Sales Volumes

Fourth-quarter 2015 consolidated copper sales of 1.15 billion pounds approximated the October 2015 estimate and were higher than fourth-quarter 2014 sales of 972 million pounds, primarily reflecting higher volumes from North America and the Cerro Verde mine in Peru.

Fourth-quarter 2015 consolidated gold sales of 338 thousand ounces were higher than the October 2015 estimate of 310 thousand ounces, but were lower than fourth-quarter 2014 sales of 377 thousand ounces primarily reflecting lower ore grades at PT Freeport Indonesia (PT-FI).

Fourth-quarter 2015 consolidated molybdenum sales of 20 million pounds were slightly lower than the October 2015 estimate and fourth-quarter 2014 sales of 21 million pounds.

Fourth-quarter 2015 sales from oil and gas operations of 13.2 MMBOE, including 9.0 million barrels (MMBbls) of crude oil, 21.5 billion cubic feet (Bcf) of natural gas and 0.6 MMBbls of natural gas liquids (NGLs), approximated the October 2015 estimate and were higher than fourth-quarter 2014 sales of 12.1 MMBOE, primarily reflecting higher volumes in the GOM, partly offset by lower volumes in California.

Consolidated sales for the year 2016 are expected to approximate 5.1 billion pounds of copper, 1.8 million ounces of gold, 73 million pounds of molybdenum and 57.6 MMBOE, including 1.1 billion pounds of copper, 200 thousand ounces of gold, 19 million pounds of molybdenum and 12.4 MMBOE in first-quarter 2016. Anticipated higher grades from Grasberg in the second half of 2016 are expected to result in approximately 55 percent of consolidated copper sales and 75 percent of consolidated gold sales to occur in the second half of the year.

Consolidated Unit Costs

Mining Unit Net Cash Costs. Consolidated average unit net cash costs (net of by-product credits) for FCX's copper mines of $1.45 per pound of copper in fourth-quarter 2015 were lower than unit net cash costs of $1.47 per pound in fourth-quarter 2014, primarily reflecting lower site production and delivery costs mostly associated with higher sales volumes and the impacts of revised operating plans, partly offset by lower by-product credits.

Unit net cash costs for 2016 are expected to decline significantly from 2015, principally reflecting higher anticipated copper and gold volumes, the impact of lower energy and other input costs, and cost reduction initiatives. Assuming average prices of $1,100 per ounce of gold and $4.50 per pound of molybdenum for 2016 and achievement of current sales volume and cost estimates, consolidated unit net cash costs (net of by-product credits) for copper mines are expected to average $1.10 per pound of copper for the year 2016. Quarterly unit net cash costs vary with fluctuations in sales volumes and average realized prices (primarily gold and molybdenum prices). The impact of price changes on 2016 consolidated unit net cash costs would approximate $0.015 per pound for each $50 per ounce change in the average price of gold and $0.015 per pound for each $2 per pound change in the average price of molybdenum.

Oil and Gas Cash Production Costs per BOE. Cash production costs for oil and gas operations of $16.17 per BOE in fourth-quarter 2015 were lower than the cash production costs of $21.93 per BOE in fourth-quarter 2014, primarily reflecting higher volumes in Deepwater GOM, and lower maintenance and repair costs in both Deepwater GOM and California. Based on current sales volume and cost estimates, cash production costs are expected to approximate $15 per BOE for the year 2016. Lower cash production costs in 2016 primarily reflect increased production from the Deepwater GOM and cost reduction efforts.

MINING OPERATIONS

North America Copper Mines. FCX operates seven open-pit copper mines in North America - Morenci, Bagdad, Safford, Sierrita and Miami in Arizona, and Chino and Tyrone in New Mexico. All of the North America mining operations are wholly owned, except for Morenci. FCX records its 85 percent joint venture interest in Morenci using the proportionate consolidation method. In addition to copper, molybdenum concentrates and silver are also produced by certain of FCX's North America copper mines.

Operating and Development Activities. FCX has significant undeveloped reserves and resources in North America and a portfolio of potential long-term development projects. In the near term, FCX is deferring developing new projects as a result of current market conditions. Future investments will be undertaken based on the results of economic and technical feasibility studies and market conditions.

The Morenci mill expansion project, which commenced operations in May 2014, successfully achieved full rates in second-quarter 2015. The project expanded mill capacity from 50,000 metric tons of ore per day to approximately 115,000 metric tons of ore per day, which results in incremental annual production of approximately 225 million pounds of copper and an improvement in Morenci's cost structure. Morenci's copper production is expected to average approximately 900 million pounds per year over the next five years.

FCX's revised plans for its North America copper mines incorporate reductions in mining rates to reduce operating and capital costs, including the previously announced suspension of mining operations at the Miami mine (which produced 43 million pounds of copper for the year 2015), planned shutdown of the Sierrita mine (which produced 189 million pounds of copper and 21 million pounds of molybdenum for the year 2015), 50 percent reduction in mining rates at the Tyrone mine (which produced 84 million pounds of copper for the year 2015) and adjustments to mining rates at other North America mines. The revised plans at each of the operations incorporate the impacts of lower energy, acid and other consumables, reduced labor costs and a significant reduction in capital spending plans. These plans continue to be reviewed and additional adjustments may be made as market conditions warrant.

Operating Data. Following is summary consolidated operating data for the North America copper mines for the fourth quarters and years ended 2015 and 2014:

			Three Months Ended										Years Ended
			December 31,										December 31,
			2015					2014					2015					2014
Copper (millions of recoverable pounds)
Production			527					467					1,947					1,670
Sales, excluding purchases			547					434					1,988					1,664
Average realized price per pound			$	2.22				$	2.99				$	2.47				$	3.13
Molybdenum (millions of recoverable pounds)
Productiona			9					8					37					33
Unit net cash costs per pound of copperb
Site production and delivery, excluding adjustments			$	1.49				$	1.81				$	1.68				$	1.85
By-product credits			(0.07		)			(0.21		)			(0.13		)			(0.24		)
Treatment charges			0.11					0.14					0.12					0.12
Unit net cash costs			$	1.53				$	1.74				$	1.67				$	1.73
a. Refer to summary operating data on page 5 for FCX's consolidated molybdenum sales, which includes sales of molybdenum produced at the North America copper mines.
b. For a reconciliation of unit net cash costs per pound to production and delivery costs applicable to sales reported in FCX's consolidated financial statements, refer to the supplemental schedules, "Product Revenues and Production Costs," beginning on page XV, which are available on FCX's website, "fcx.com."

North America's consolidated copper sales volumes of 547 million pounds in fourth-quarter 2015 were higher than fourth-quarter 2014 sales of 434 million pounds, primarily reflecting higher ore grades at Morenci and Safford and timing of shipments. North America copper sales are estimated to approximate 1.8 billion pounds for the year 2016, compared with 2.0 billion pounds in 2015.

Average unit net cash costs (net of by-product credits) for the North America copper mines of $1.53 per pound of copper in fourth-quarter 2015 were lower than unit net cash costs of $1.74 per pound in fourth-quarter 2014, reflecting favorable impacts from higher volumes and the impacts of revised operating plans, partly offset by lower by-product credits.

Average unit net cash costs (net of by-product credits) for the North America copper mines are expected to approximate $1.49 per pound of copper for the year 2016, based on current sales volume and cost estimates and assuming an average molybdenum price of $4.50 per pound. North America's average unit net cash costs for the year 2016 would change by approximately $0.02 per pound for each $2 per pound change in the average price of molybdenum.

South America Mining. FCX operates two copper mines in South America - Cerro Verde in Peru (in which FCX owns a 53.56 percent interest) and El Abra in Chile (in which FCX owns a 51 percent interest). These operations are consolidated in FCX's financial statements. In addition to copper, the Cerro Verde mine produces molybdenum concentrates.

Operating and Development Activities. The Cerro Verde expansion project commenced operations in September 2015 and is expected to reach full rates in early 2016. Cerro Verde's expanded operations will benefit from its large-scale, long-lived reserves and cost efficiencies. The project expanded the concentrator facilities from 120,000 metric tons of ore per day to 360,000 metric tons of ore per day and is expected to provide incremental annual production of approximately 600 million pounds of copper and 15 million pounds of molybdenum.

During third-quarter 2015, FCX revised plans for its South America copper mines principally to reflect adjustments to the mine plan at El Abra (which produced 324 million pounds of copper for the year 2015) to reduce mining and stacking rates by approximately 50 percent to achieve lower operating and labor costs, defer capital expenditures and extend the life of the existing operations.

Operating Data. Following is summary consolidated operating data for the South America mining operations for the fourth quarters and years ended 2015 and 2014:

			Three Months Ended										Years Ended
			December 31,										December 31,
			2015					2014a					2015					2014a
Copper (millions of recoverable pounds)
Production			284					253					869					1,151
Sales			286					247					871					1,135
Average realized price per pound			$	2.16				$	2.95				$	2.38				$	3.08
Gold (thousands of recoverable ounces)
Production			—					10					—					72
Sales			—					8					—					67
Average realized price per ounce			$	—				$	1,191				$	—				$	1,271
Molybdenum (millions of recoverable pounds)
Productionb			2					3					7					11
Unit net cash costs per pound of copperc
Site production and delivery, excluding adjustments			$	1.43				$	1.68				$	1.60				$	1.62
By-product credits			(0.04		)			(0.14		)			(0.05		)			(0.22		)
Treatment charges			0.21					0.16					0.19					0.17
Royalty on metals			0.01					0.01					—			d		0.01
Unit net cash costs			$	1.61				$	1.71				$	1.74				$	1.58
a. The 2014 periods include the results of the Candelaria/Ojos mines that were sold in November 2014. Candelaria/Ojos had sales volumes totaling 32 million pounds of copper and 8 thousand ounces of gold for fourth-quarter 2014 and 268 million pounds of copper and 67 thousand ounces of gold for the year 2014.
b. Refer to summary operating data on page 5 for FCX's consolidated molybdenum sales, which includes sales of molybdenum produced at Cerro Verde.
c. For a reconciliation of unit net cash costs per pound to production and delivery costs applicable to sales reported in FCX's consolidated financial statements, refer to the supplemental schedules, "Product Revenues and Production Costs," beginning on page XV, which is available on FCX's website, "fcx.com."
d. Rounds to less than $0.01 per pound of copper.

South America's consolidated copper sales volumes of 286 million pounds in fourth-quarter 2015 were higher than fourth-quarter 2014 sales of 247 million pounds, reflecting higher mining rates at Cerro Verde, partly offset by lower mining rates at El Abra and the sale of the Candelaria/Ojos mines in November 2014. Sales from South America mining are expected to approximate 1.3 billion pounds of copper for the year 2016, compared with 871 million pounds of copper in 2015.

Average unit net cash costs (net of by-product credits) for South America mining of $1.61 per pound of copper in fourth-quarter 2015 were lower than unit net cash costs of $1.71 per pound in fourth-quarter 2014, primarily reflecting higher volumes, partly offset by lower by-product credits. Average unit net cash costs (net of by-product credits) for South America mining are expected to approximate $1.50 per pound of copper for the year 2016, based on current sales volume and cost estimates and assuming an average price $4.50 per pound of molybdenum for 2016.

Indonesia Mining. Through its 90.64 percent owned and consolidated subsidiary PT-FI, FCX's assets include one of the world's largest copper and gold deposits at the Grasberg minerals district in Papua, Indonesia. PT-FI operates a proportionately consolidated joint venture, which produces copper concentrates that contain significant quantities of gold and silver.

Regulatory Matters. PT-FI continues to engage in discussion with the Indonesian government regarding its Contract of Work (COW) and long-term operating rights. In October 2015, the Indonesian government provided a letter of assurance to PT-FI indicating that it will approve the extension of operations beyond 2021, and provide the same rights and the same level of legal and fiscal certainty provided under its current COW. FCX expects, but cannot provide any assurance, that PT-FI will be successful in reaching a satisfactory agreement on the terms of its long-term mining rights.

In connection with its COW negotiations and upon completion of concluding the agreement, PT-FI has agreed to construct new smelter capacity in Indonesia and to divest an additional 20.64 percent interest in PT-FI at fair market value. PT-FI continues to advance plans for the smelter in parallel with completing its COW negotiations.

PT-FI is required to apply for renewal of export permits at six-month intervals. PT-FI has submitted its application for renewal of its export permit for the six month period beginning January 28, 2016, through July 2016 and is engaged in discussions with the Indonesian government to obtain approvals.

Operating and Development Activities. During 2015, PT-FI revised its plans to incorporate improved operational efficiencies, reductions in input costs, supplies and contractor costs, foreign exchange impacts and a deferral of 15 percent of capital expenditures in 2016.

PT-FI has several projects in progress in the Grasberg minerals district related to the development of its large-scale, long-lived, high-grade underground ore bodies. In aggregate, these underground ore bodies are expected to produce large-scale quantities of copper and gold following the transition from the Grasberg open pit, currently anticipated to occur in late 2017. Development of the Grasberg Block Cave and Deep Mill Level Zone (DMLZ) underground mines is advancing. Production from the DMLZ commenced during September 2015, and the Grasberg Block Cave mine is anticipated to commence production in 2018.

Over the period from 2016 to 2020, estimated aggregate capital spending on these projects is currently expected to average $1.0 billion per year ($0.8 billion per year net to PT-FI). Considering the long-term nature and size of these projects, actual costs could vary from these estimates. In response to recent market conditions and the uncertain global economic environment, the timing of these expenditures continues to be reviewed.

Operating Data. Following is summary consolidated operating data for the Indonesia mining operations for the fourth quarters and years ended 2015 and 2014:

			Three Months Ended										Years Ended
			December 31,										December 31,
			2015					2014					2015					2014
Copper (millions of recoverable pounds)
Production			201					171					752					636
Sales			195					180					744					664
Average realized price per pound			$	2.14				$	2.86				$	2.33				$	3.01
Gold (thousands of recoverable ounces)
Production			345					354					1,232					1,130
Sales			333					366					1,224					1,168
Average realized price per ounce			$	1,066				$	1,192				$	1,129				$	1,229
Unit net cash costs per pound of coppera
Site production and delivery, excluding adjustments			$	2.40				$	2.37				$	2.39				$	2.76		b
Gold and silver credits			(1.87		)			(2.46		)			(1.91		)			(2.25		)
Treatment charges			0.31					0.27					0.31					0.26
Export duties			0.10					0.20					0.15					0.12
Royalty on metalsc			0.15					0.20					0.15					0.17
Unit net cash costs			$	1.09				$	0.58				$	1.09				$	1.06
a. For a reconciliation of unit net cash costs per pound to production and delivery costs applicable to sales reported in FCX's consolidated financial statements, refer to the supplemental schedules, "Product Revenues and Production Costs," beginning on page XV, which are available on FCX's website, "fcx.com."
b. The year 2014 excludes fixed costs totaling $0.22 per pound of copper charged directly to cost of sales as a result of the impact of export restrictions on PT-FI's operating rates.
c. Includes $0.06 per pound for both the fourth quarter and year 2015, $0.08 per pound in fourth- quarter 2014 and $0.05 per pound for the year 2014, associated with PT-FI's increased royalty rates.

Indonesia's fourth-quarter 2015 sales of 195 million pounds of copper were higher than fourth-quarter 2014 copper sales of 180 million pounds, reflecting higher operating rates. Indonesia's fourth-quarter 2015 sales of 333 thousand ounces of gold were lower than fourth-quarter 2014 gold sales of 366 thousand ounces, primarily reflecting lower ore grades.

At the Grasberg mine, the sequencing of mining areas with varying ore grades causes fluctuations in quarterly and annual production of copper and gold. PT-FI expects ore grades to improve significantly beginning in the second half of 2016 with access to higher grade sections of the Grasberg open pit, resulting in higher production and lower unit net cash costs. Sales from Indonesia mining are expected to approximate 1.5 billion pounds of copper and 1.8 million ounces of gold for the year 2016, with approximately 65 percent of copper sales and 75 percent of gold sales anticipated in the second half of the year.

A significant portion of PT-FI's costs are fixed and unit costs vary depending on production volumes. Indonesia's unit net cash costs (including gold and silver credits) of $1.09 per pound of copper in fourth-quarter 2015 were higher than unit net cash costs of $0.58 per pound in fourth-quarter 2014, primarily reflecting lower gold and silver credits.

Unit net cash costs (net of gold and silver credits) for Indonesia mining are expected to approximate $0.17 per pound of copper for the year 2016, based on current sales volume and cost estimates, and assuming an average gold price of $1,100 per ounce. Indonesia mining's unit net cash costs for the year 2016 would change by approximately $0.06 per pound for each $50 per ounce change in the average price of gold. Because of the fixed nature of a large portion of Indonesia's costs, unit costs vary from quarter to quarter depending on copper and gold volumes. As a result, unit net cash costs in the first half of 2016 are expected to be significantly higher than unit net cash costs in the second half of the year.

In December 2015, PT-FI concluded its agreement with union officials for the biennial Collective Labor Agreement for the period from September 2015 to September 2017.

Africa Mining. Through its 56 percent owned and consolidated subsidiary Tenke Fungurume Mining S.A. (TFM), FCX operates in the Tenke minerals district in the southeast of the Democratic Republic of Congo (DRC). In addition to copper, the Tenke mine produces cobalt hydroxide.

Operating and Development Activities. TFM completed its second phase expansion project in early 2013, which included increasing mine, mill and processing capacity. Construction of a second sulphuric acid plant is substantially complete. FCX continues to engage in exploration activities and metallurgical testing to evaluate the potential of the highly prospective minerals district at Tenke. Future development and expansion opportunities are being deferred pending improved market conditions.

During third-quarter 2015, FCX revised plans at Tenke to incorporate a 50 percent reduction in capital spending for 2016 and various initiatives to reduce operating, administrative and exploration costs.

Operating Data. Following is summary consolidated operating data for TFM's operations for the fourth quarters and years ended 2015 and 2014:

			Three Months Ended										Years Ended
			December 31,										December 31,
			2015					2014					2015					2014
Copper (millions of recoverable pounds)
Production			110					107					449					447
Sales			117					111					467					425
Average realized price per pounda			$	2.13				$	2.96				$	2.42				$	3.06
Cobalt (millions of contained pounds)
Production			10					7					35					29
Sales			9					7					35					30
Average realized price per pound			$	6.47				$	9.79				$	8.21				$	9.66
Unit net cash costs per pound of copperb
Site production and delivery, excluding adjustments			$	1.58				$	1.69				$	1.58				$	1.56
Cobalt creditsc			(0.28		)			(0.38		)			(0.42		)			(0.48		)
Royalty on metals			0.05					0.06					0.05					0.07
Unit net cash costs			$	1.35				$	1.37				$	1.21				$	1.15
a. Includes point-of-sale transportation costs as negotiated in customer contracts.
b. For a reconciliation of unit net cash costs per pound to production and delivery costs applicable to sales reported in FCX's consolidated financial statements, refer to the supplemental schedules, "Product Revenues and Production Costs," beginning on page XV, which are available on FCX's website, "fcx.com."
c. Net of cobalt downstream processing and freight costs.

TFM's copper sales of 117 million pounds in fourth-quarter 2015 were higher than fourth-quarter 2014 copper sales of 111 million pounds primarily reflecting higher operating and recovery rates. TFM's sales are expected to approximate 495 million pounds of copper and 35 million pounds of cobalt for the year 2016, compared with 467 million pounds of copper and 35 million pounds of cobalt for the year 2015.

Africa mining's unit net cash costs (net of cobalt credits) of $1.35 per pound of copper in fourth-quarter 2015 were lower than unit net cash costs of $1.37 per pound in fourth-quarter 2014, primarily reflecting higher sales volumes, partly offset by lower cobalt credits. Unit net cash costs (net of cobalt credits) for Africa mining are expected to approximate $1.32 per pound of copper for the year 2016, based on current sales volume and cost estimates and assuming an average cobalt price of $10 per pound. Africa mining's unit net cash costs for the year 2016 would change by approximately $0.09 per pound for each $2 per pound change in the average price of cobalt.

Molybdenum Mines. FCX has two wholly owned molybdenum mines in North America - the Henderson underground mine and the Climax open-pit mine, both in Colorado. The Henderson and Climax mines produce high-purity, chemical-grade molybdenum concentrates, which are typically further processed into value-added molybdenum chemical products. The majority of molybdenum concentrates produced at the Henderson and Climax mines, as well as from North and South America copper mines, are processed at FCX's conversion facilities.

Operating and Development Activities. FCX's plans for its Henderson molybdenum mine incorporate lower operating rates, resulting in an approximate 65 percent reduction in Henderson's annual production volumes. FCX has also adjusted production plans at its by-product mines, including the impacts of a planned shutdown at its Sierrita mine. FCX has incorporated changes in the commercial pricing structure for its chemicals products to promote continuation of chemical-grade production.

Production from the Molybdenum mines totaled 9 million pounds of molybdenum in fourth-quarter 2015, 11 million pounds in fourth-quarter 2014, 48 million pounds in the year 2015 and 51 million pounds in the year 2014. Refer to summary operating data on page 5 for FCX's consolidated molybdenum sales, which includes sales of molybdenum produced at the Molybdenum mines, and from FCX's North and South America copper mines.

Average unit net cash costs for the Molybdenum mines of $7.15 per pound of molybdenum in fourth-quarter 2015 were lower than $8.21 per pound in fourth-quarter 2014, primarily reflecting lower costs associated with labor, supplies and services. Based on current sales volume and cost estimates, unit net cash costs for the Molybdenum mines are expected to average approximately $8.25 per pound of molybdenum for the year 2016.

For a reconciliation of unit net cash costs per pound to production and delivery costs applicable to sales reported in FCX's consolidated financial statements, refer to the supplemental schedules, "Product Revenues and Production Costs," beginning on page XV, which are available on FCX's website, "fcx.com."

Mining Exploration Activities. FCX's mining exploration activities are generally near its existing mines with a focus on opportunities to expand reserves and resources to support development of additional future production capacity in the large minerals districts where it currently operates. Exploration results continue to indicate opportunities for significant future potential reserve additions in North and South America, and in the Tenke minerals district. The drilling data in North America also indicates the potential for significantly expanded sulfide production. Drilling results and exploration modeling provide a long-term pipeline for future growth in reserves and production capacity in established minerals districts. Exploration spending continues to be reduced from historical levels as a result of market conditions and is expected to approximate $52 million for the year 2016, compared to $102 million in 2015.

OIL & GAS OPERATIONS

Through its wholly owned oil and gas subsidiary, FM O&G, FCX's portfolio of oil and gas assets includes significant oil production facilities and growth potential in the Deepwater GOM, established oil production facilities onshore and offshore California, large onshore natural gas resources in the Haynesville shale play in Louisiana, natural gas production from the Madden area in Central Wyoming and a position in the Inboard Lower Tertiary/Cretaceous natural gas trend onshore in South Louisiana. For the year 2015, 88 percent of FCX's oil and gas revenues, excluding the impact of derivative contracts, were from oil and NGLs.

Impairment of Oil and Gas Properties. FM O&G follows the full cost method of accounting whereby all costs associated with oil and gas property acquisition, exploration and development activities are capitalized and amortized to expense under the unit-of-production method on a country-by-country basis using estimates of proved oil and natural gas reserves relating to each country where such activities are conducted. The costs of unproved oil and gas properties are excluded from amortization until the properties are evaluated.

Under the full cost accounting rules, a "ceiling test" is conducted each quarter to review the carrying value of the oil and gas properties for impairment. The U.S. Securities and Exchange Commission (SEC) requires the twelve-month average of the first-day-of-the-month historical reference oil price be used in determining the ceiling test limitation. Using West Texas Intermediate (WTI) as the reference oil price, the average price was $50.28 per barrel at December 31, 2015, compared with $59.21 at September 30, 2015. At December 31, 2015, net capitalized costs with respect to FM O&G's proved U.S. oil and gas properties exceeded the ceiling test limitation specified by the SEC's full cost accounting rules, which resulted in the recognition of a fourth-quarter 2015 impairment charge of $3.7 billion. If the twelve-month historical average price remains below the December 31, 2015, twelve-month average of $50.28 per barrel, the ceiling test limitation will decrease, resulting in potentially significant additional ceiling test impairments of FCX's oil and gas properties. The WTI spot oil price was $30.34 per barrel at January 25, 2016.

FM O&G periodically (and at least annually) assesses the carrying value of its unevaluated properties to determine whether impairment has occurred. Following a review of the carrying values of unevaluated properties during fourth-quarter 2015, FM O&G determined that the carrying value of its unevaluated properties were impaired primarily resulting from declines in oil prices and changes in operating plans. FM O&G transferred $2.8 billion (of which $2.1 billion resulted from the fourth-quarter 2015 impairment review) of costs to the full cost pool, which were included in the December 31, 2015, ceiling test impairment.

In addition to a decline in the trailing twelve-month average oil and gas prices, other factors that could result in future impairment of FCX's oil and gas properties include costs transferred from unevaluated properties to the full cost pool without corresponding proved oil and natural gas reserve additions, negative reserve revisions and increased future development or production costs. At December 31, 2015, there was $4.8 billion in carrying costs for unevaluated properties. As activities on these properties are completed, costs are transferred to the full cost pool. If these activities do not result in additions to discounted future net cash flows from proved oil and natural gas reserves at least equal to the related costs transferred (net of related tax effects), additional ceiling test impairments may occur.

Financial and Operating Data. Following is summary financial and operating data for the U.S. oil and gas operations for the fourth quarters and years ended 2015 and 2014:

			Three Months Ended										Years Ended
			December 31,										December 31,
			2015					2014					2015					2014a
Financial Summary (in millions)
Realized revenuesb			$	495				$	725				$	2,291				$	4,080
Less: Cash production costsb			214					265					979					1,140
Cash operating margin			$	281				$	460				$	1,312				$	2,940
Capital expenditures			$	518				$	813				$	2,948				$	3,205
Sales Volumes
Oil (MMBbls)			9.0					8.1					35.3					40.1
Natural gas (Bcf)			21.5					20.9					89.7					80.8
NGLs (MMBbls)			0.6					0.6					2.4					3.2
MMBOE			13.2					12.1					52.6					56.8
Average Realizationsb
Oil (per barrel)			$	48.88				$	78.02				$	57.11				$	90.00
Natural gas (per million British thermal units, or MMBtu)			$	2.10				$	3.83				$	2.59				$	4.23
NGLs (per barrel)			$	16.37				$	30.01				$	18.90				$	39.73
Cash Operating Margin per BOEb
Realized revenues			$	37.49				$	59.95				$	43.54				$	71.83
Less: cash production costs			16.17					21.93					18.59					20.08
Cash operating margin			$	21.32				$	38.02				$	24.95				$	51.75
a. Includes results from Eagle Ford through June 19, 2014.
b. Cash operating margin for oil and gas operations reflects realized revenues less cash production costs. Realized revenues exclude noncash mark-to-market adjustments on derivative contracts, and cash production costs exclude accretion and other costs. For reconciliations of realized revenues (including average realizations for oil, natural gas and NGLs) and cash production costs to revenues and production and delivery costs reported in FCX's consolidated financial statements, refer to the supplemental schedules, “Product Revenues and Production Costs,” beginning on page XV, which are available on FCX's website, “fcx.com.”

FM O&G's average realized price for crude oil was $48.88 per barrel in fourth-quarter 2015, including $11.39 per barrel of realized cash gains on derivative contracts. Excluding the impact of derivative contracts, the fourth-quarter 2015 average realized price for crude oil was $37.49 per barrel (84 percent of the average Brent crude oil price of $44.72 per barrel). FM O&G currently has no derivative contracts in place for 2016 and future years.

FM O&G's average realized price for natural gas was $2.10 per MMBtu in fourth-quarter 2015, compared to the New York Mercantile Exchange (NYMEX) natural gas price average of $2.27 per MMBtu for the October through December 2015 contracts.

Realized revenues for oil and gas operations of $37.49 per BOE in fourth-quarter 2015 were lower than realized revenues of $59.95 per BOE in fourth-quarter 2014, primarily reflecting lower oil prices. Cash production costs of $16.17 per BOE in fourth-quarter 2015 were lower than cash production costs of $21.93 per BOE in fourth-quarter 2014, primarily reflecting higher volumes in Deepwater GOM, and lower maintenance and repair costs in both Deepwater GOM and California.

Following is a summary of average oil and gas sales volumes per day by region for oil and gas operations for the fourth quarters and years ended 2015 and 2014:

			Three Months Ended						Years Ended
			December 31,						December 31,
			2015			2014			2015			2014
Sales Volumes (MBOE per day):
GOMa			87			70			83			73
California			36			38			37			39
Haynesville/Madden/Other			21			23			24			20		b
Eagle Fordc			—			—			—			24
Total oil and gas operations			144			131			144			156
a. Includes sales from properties on the GOM Shelf and in the Deepwater GOM; the 2015 periods also includes sales from properties in the Inboard Lower Tertiary/Cretaceous natural gas trend.
b. Results include volume adjustments related to Eagle Ford's pre-close sales.
c. FM O&G completed the sale of Eagle Ford on June 20, 2014.

Daily sales volumes averaged 144 MBOE for fourth-quarter 2015, including 98 thousand barrels (MBbls) of crude oil, 234 million cubic feet (MMcf) of natural gas and 7 MBbls of NGLs. Oil and gas sales volumes are expected to average 136 MBOE per day for first-quarter 2016 and 158 MBOE per day for the year 2016, comprised of 74 percent oil, 21 percent natural gas and 5 percent NGLs.

Based on current sales volume and cost estimates, cash production costs are expected to approximate $17 per BOE for first-quarter 2016 and $15 per BOE for the year 2016.

Oil and Gas Operating and Development Activities. FCX's oil and gas business has significant proved, probable and possible reserves, with valuable infrastructure and associated resources with attractive long-term production and development potential.

Since commencing development activities in 2014 at its three 100-percent-owned production platforms in the Deepwater GOM, FM O&G has drilled 14 wells in producing fields with positive results, including the King D-10 well in fourth-quarter 2015. Four of these wells have been brought on production, including the King D-12 well in November 2015. FM O&G plans to complete and place six additional wells on production in 2016.

FCX is managing oil and gas costs and capital expenditures aggressively. FM O&G is undertaking a near-term deferral of exploration and development activities by idling the three deepwater drillships it has under contract. Past investments are expected to enable production to be increased from fourth-quarter 2015 rates of 144 MBOE per day to an average of 157 MBOE per day in 2016 and 2017, and cash production costs to decline to approximately $15 per BOE in 2016 and 2017.

FM O&G expects to incur idle rig costs associated with its drillship contracts totaling an estimated $0.6 billion in 2016 and $0.4 billion in 2017.

Oil and Gas Capital Expenditures. Capital expenditures for oil and gas operations totaled $537 million for fourth-quarter 2015 primarily associated with amounts incurred for Deepwater GOM, and $3.0 billion for the year 2015 (including $2.5 billion incurred for Deepwater GOM and $0.2 billion for the Inboard Lower Tertiary/Cretaceous natural gas trend). Capital expenditures for oil and gas operations for the year 2016 are estimated to total $1.5 billion, which excludes $0.6 billion in idle rig costs. Approximately 85 percent of the 2016 capital budget is expected to be directed to the GOM.

Deepwater GOM. FM O&G operates and owns 100-percent working interests in the large-scale Holstein, Marlin and Horn Mountain deepwater production platforms, which in total have processing capacity of 250 MBbls of oil per day. In addition, FM O&G has interests in the Lucius and Heidelberg oil fields and in the Atwater Valley focus area, as well as interests in the Ram Powell and Hoover deepwater production platforms.

In January 2016, first oil production commenced in the Heidelberg oil field in Green Canyon. Three wells are expected to begin producing during the initial phase and another two wells are scheduled to be drilled and come on line at a later date. Heidelberg is a subsea development consisting of five subsea wells tied back to a truss spar hull located in 5,300 feet of water. Heidelberg field was discovered in November 2008 and the subsequent development project was sanctioned in early 2013. FM O&G has a 12.5 percent working interest in Heidelberg.

At Holstein Deep, completion activities for the initial three-well subsea tieback development program are progressing on schedule, with first production expected by mid-2016. In aggregate, the three wells are estimated to commence production at approximately 24 MBOE per day. The Holstein Deep development is located in Green Canyon Block 643, west of the 100-percent owned Holstein platform in 3,890 feet of water, with production facilities capable of processing 113 MBbls of oil per day.

FM O&G’s 100-percent-owned Marlin Hub is located in the Mississippi Canyon focus area and has production facilities capable of processing 60 MBbls of oil per day. FM O&G has drilled five successful tieback opportunities in the area since 2014, including the 100-percent-owned Dorado and King development projects. During fourth-quarter 2015, FM O&G established production from the first King well (D-12) and logged oil pay in the King D-10 well. In 2016, FM O&G plans to complete and tieback the King D-13 well to the Marlin production platform. The King D-9 and D-10 wells are expected to be completed in future periods.

FM O&G’s 100-percent-owned Horn Mountain field is also located in the Mississippi Canyon focus area and has production facilities capable of processing 75 MBbls of oil per day. In 2016, FM O&G plans to complete and tie back two wells to the Horn Mountain production platform, including the Quebec/Victory and Kilo/Oscar wells.

FM O&G has a broad set of assets with valuable infrastructure and associated resources with attractive long-term production and development potential, including the Vito and Power Nap oil discoveries in the Atwater Valley and a large Deepwater GOM project inventory with over 150 undeveloped locations.

Inboard Lower Tertiary/Cretaceous. FM O&G has a position in the Inboard Lower Tertiary/Cretaceous natural gas trend, located onshore in South Louisiana. During November 2015, FM O&G completed the installation of additional processing facilities to accommodate higher flow rates from the Highlander well. In December 2015, gross rates from the Highlander well averaged approximately 44 MMcf per day (approximately 21 MMcf per day net to FM O&G). FM O&G is the operator and has a 72 percent working interest and an approximate 49 percent net revenue interest in Highlander.

California. Sales volumes from California averaged 36 MBOE per day for fourth-quarter 2015, compared with 38 MBOE per day for fourth-quarter 2014. FM O&G’s position in California is located onshore in the San Joaquin Valley and Los Angeles Basin, and offshore in the Point Pedernales field. Since second-quarter 2015, production from Point Arguello platforms has been shut in following the shutdown of a third-party operated pipeline system that transports oil to various California refineries.

Haynesville. FM O&G has rights to a substantial natural gas resource, located in the Haynesville shale play in North Louisiana. Drilling activities remain constrained in response to low natural gas prices in order to maximize near-term cash flows and to preserve the resource for potentially higher future natural gas prices.

CASH FLOWS, CASH and DEBT

Operating Cash Flows. FCX generated operating cash flows of $612 million in fourth-quarter 2015 and $3.2 billion (including $0.4 billion in working capital sources and changes in other tax payments) for the year 2015.

Based on current sales volume and cost estimates and assuming average prices of $2.00 per pound of copper, $1,100 per ounce of gold, $4.50 per pound of molybdenum, and $34 per barrel of Brent crude oil, FCX's consolidated operating cash flows for the year 2016 are estimated to approximate $3.4 billion (net of approximately $0.6 billion in idle rig costs). The impact of price changes on 2016 operating cash flows would approximate $440 million for each $0.10 per pound change in the average price of copper, $55 million for each $50 per ounce change in the average price of gold, $60 million for each $2 per pound change in the average price of molybdenum and $135 million for each $5 per barrel change in the average Brent crude oil price.

Using similar price assumptions and the recent 2017 future price of $40 per barrel for Brent crude oil, FCX estimates consolidated operating cash flows of $3.5 billion (net of approximately $0.4 billion in idle rig costs) and capital expenditures of $2.3 billion for the year 2017.

Capital Expenditures. Capital expenditures totaled $1.3 billion for fourth-quarter 2015 (including $0.6 billion for major projects at mining operations and $0.5 billion for oil and gas operations) and $6.35 billion for the year 2015 (including $2.4 billion for major projects at mining operations and $3.0 billion for oil and gas operations).

Capital expenditures are expected to approximate $3.4 billion for the year 2016, including $1.4 billion for major projects at mining operations (primarily for underground development activities at Grasberg and the remaining costs for the Cerro Verde expansion) and $1.5 billion for oil and gas operations, and excludes $0.6 billion for idle rig costs. FCX continues to pursue funding opportunities for capital expenditures for its oil and gas business.

Cash. Following is a summary of the U.S. and international components of consolidated cash and cash equivalents available to the parent company, net of noncontrolling interests' share, taxes and other costs at December 31, 2015 (in millions):

Cash at domestic companies			$	6
Cash at international operations			218
Total consolidated cash and cash equivalents			224
Less: Noncontrolling interests' share			(44		)
Cash, net of noncontrolling interests' share			180
Less: Withholding taxes and other			(11		)
Net cash available			$	169

Debt. FCX continues to focus on cost and capital management and cash flow generation from its operations in the current weak commodity price environment and is taking further immediate actions to reduce debt by pursuing asset sales and joint venture transactions. Following is a summary of total debt and the related weighted-average interest rates at December 31, 2015 (in billions, except percentages):

							Weighted-
							Average
							Interest Rate
FCX Senior Notes			$	11.9			3.8%
FCX Term Loan			3.0				2.2%
FM O&G Senior Notes			2.5				6.6%
Cerro Verde Credit Facility			1.8				2.8%
Other FCX debt			1.2				3.9%
Total debt			$	20.4			3.8%

As of December 31, 2015, FCX has $36 million in letters of credit issued and availability of $4.0 billion under its credit facility.

In December 2015, FCX reached agreement with its bank group to amend the Leverage Ratio (Net Debt/EBITDA) under its $4 billion revolving credit facility and term loan from the previous limit of 4.75x to 5.5x at December 31, 2015, 5.9x for the first half of 2016, and declining to 5.0x by year-end 2016 and 4.25x in 2017; the Leverage Ratio is unchanged at 3.75x thereafter. In addition, the amendment increases the interest rate spreads under specified conditions. FCX is monitoring market prices for its primary products and may be required to seek additional covenant relief from the lenders under the revolving credit facility and term loan.

Equity Transactions. Since August 2015, a total of approximately $2 billion of gross proceeds have been raised under FCX's at-the-market equity programs, including approximately $1 billion during fourth-quarter 2015. FCX used the proceeds for general corporate purposes, including the repayment of amounts outstanding under the revolving credit facility and other borrowings, and the financing of working capital and capital expenditures. As of December 31, 2015, FCX had 1.25 billion common shares outstanding.

FINANCIAL POLICY

In March 2015, the Board reduced FCX's annual common stock dividend from $1.25 per share to $0.20 per share, and in December 2015, the Board suspended the annual common stock dividend. These actions will provide cash savings and further enhance FCX's liquidity during this period of weak market conditions. The declaration of dividends is at the discretion of the Board and will depend upon FCX's financial results, cash requirements, future prospects and other factors deemed relevant by the Board.

FCX intends to continue to maintain a strong financial position, with a focus on reducing debt. FCX's Board will continue to review its financial policy on an ongoing basis.

WEBCAST INFORMATION

A conference call with securities analysts to discuss FCX's fourth-quarter 2015 results is scheduled for today at 10:00 a.m. Eastern Time. The conference call will be broadcast on the Internet along with slides. Interested parties may listen to the conference call live and view the slides by accessing “fcx.com.” A replay of the webcast will be available through Friday, February 26, 2016.

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FCX is a premier U.S.-based natural resources company with an industry-leading global portfolio of mineral assets, significant oil and gas resources and a growing production profile. FCX is the world's largest publicly traded copper producer.

FCX's portfolio of assets includes the Grasberg minerals district in Indonesia, one of the world's largest copper and gold deposits; significant mining operations in the Americas, including the large-scale Morenci minerals district in North America and the Cerro Verde operation in South America; the Tenke Fungurume minerals district in the DRC; and significant U.S. oil and natural gas assets in the Deepwater GOM, onshore and offshore California and in the Haynesville natural gas shale, and a position in the Inboard Lower Tertiary/Cretaceous natural gas trend onshore in South Louisiana. Additional information about FCX is available on FCX's website at "fcx.com."

Cautionary Statement and Regulation G Disclosure: This press release contains forward-looking statements in which FCX discusses its potential future performance. Forward-looking statements are all statements other than statements of historical facts, such as projections or expectations relating to ore grades and milling rates, production and sales volumes, unit net cash costs, cash production costs per BOE, operating cash flows, capital expenditures, FCX's debt reduction initiatives, exploration efforts and results, development and production activities and costs, liquidity, tax rates, the impact of copper, gold, molybdenum, cobalt, crude oil and natural gas price changes, the impact of deferred intercompany profits on earnings, reserve estimates, future dividend payments and share purchases and sales. The words “anticipates,” “may,” “can,” “plans,” “believes,” “estimates,” “expects,” “projects,” "targets," “intends,” “likely,” “will,” “should,” “to be,” ”potential" and any similar expressions are intended to identify those assertions as forward-looking statements. The declaration of dividends is at the discretion of the Board and will depend on FCX's financial results, cash requirements, future prospects, and other factors deemed relevant by the Board.

FCX cautions readers that forward-looking statements are not guarantees of future performance and actual results may differ materially from those anticipated, projected or assumed in the forward-looking statements. Important factors that can cause FCX's actual results to differ materially from those anticipated in the forward-looking statements include supply of and demand for, and prices of, copper, gold, molybdenum, cobalt, crude oil and natural gas, mine sequencing, production rates, drilling results, potential effects of cost and capital expenditure reductions and production curtailments on financial results and cash flow, the outcome of FCX’s strategic review of its oil and gas business, the outcome of FCX's debt reduction initiatives, potential additional oil and gas property impairment charges, potential inventory adjustments, potential impairment of long-lived mining assets, FCX's ability to obtain covenant relief from its lenders if necessary and potential related increased costs, the outcome of ongoing discussions with the Indonesian government regarding PT-FI's COW, PT-FI’s ability to obtain renewal of its export license after January 28, 2016, the potential effects of violence in Indonesia, the resolution of administrative disputes in the DRC, industry risks, regulatory changes, political risks, labor relations, weather- and climate-related risks, environmental risks, litigation results and other factors described in more detail under the heading “Risk Factors” in FCX's Annual Report on Form 10-K for the year ended December 31, 2014, filed with the U.S. Securities and Exchange Commission (SEC) as updated by FCX's subsequent filings with the SEC.

Investors are cautioned that many of the assumptions upon which FCX's forward-looking statements are based are likely to change after the forward-looking statements are made, including for example commodity prices, which FCX cannot control, and production volumes and costs, some aspects of which FCX may not be able to control. Further, FCX may make changes to its business plans that could affect its results. FCX cautions investors that it does not intend to update forward-looking statements more frequently than quarterly notwithstanding any changes in its assumptions, changes in business plans, actual experience or other changes, and FCX undertakes no obligation to update any forward-looking statements.

This press release also contains certain financial measures such as unit net cash costs per pound of copper and molybdenum, oil and gas realized revenues, cash production costs and cash operating margin, which are not recognized under U.S. generally accepted accounting principles. As required by SEC Regulation G, reconciliations of these measures to amounts reported in FCX's consolidated financial statements are in the supplemental schedules of this press release, which are also available on FCX's website, "fcx.com."

FREEPORT-McMoRan INC.
SELECTED MINING OPERATING DATA
			Three Months Ended December 31,
			Production								Sales
COPPER (millions of recoverable pounds)			2015				2014				2015					2014
(FCX's net interest in %)
North America
Morenci (85%)a			246				209				255					191
Bagdad (100%)			53				62				56					59
Safford (100%)			66				39				66					35
Sierrita (100%)			49				48				50					46
Miami (100%)			10				13				11					13
Chino (100%)			83				71				87					66
Tyrone (100%)			19				24				21					23
Other (100%)			1				1				1					1
Total North America			527				467				547					434
South America
Cerro Verde (53.56%)			211				123				209					122
El Abra (51%)			73				92				77					93
Candelaria/Ojos del Salado (80%)b			—				38				—					32
Total South America			284				253				286					247
Indonesia
Grasberg (90.64%)c			201				171				195					180
Africa
Tenke Fungurume (56%)			110				107				117					111
Consolidated			1,122				998				1,145					972
Less noncontrolling interests			201				173				204					174
Net			921				825				941					798
Consolidated sales from mines											1,145					972
Purchased copper											29					36
Total copper sales, including purchases											1,174					1,008
Average realized price per pound											$	2.18				$	2.95
GOLD (thousands of recoverable ounces)
(FCX's net interest in %)
North America (100%)			5				4				5					3
South America (80%)b			—				10				—					8
Indonesia (90.64%)c			345				354				333					366
Consolidated			350				368				338					377
Less noncontrolling interests			32				35				31					36
Net			318				333				307					341
Average realized price per ounce											$	1,067				$	1,193
MOLYBDENUM (millions of recoverable pounds)
(FCX's net interest in %)
Henderson (100%)			4				7				N/A					N/A
Climax (100%)			5				4				N/A					N/A
North America copper mines (100%)a			9				8				N/A					N/A
Cerro Verde (53.56%)			2				3				N/A					N/A
Consolidated			20				22				20					21
Less noncontrolling interests			1				1				1					1
Net			19				21				19					20
Average realized price per pound											$	6.94				$	11.78
COBALT (millions of contained pounds)
(FCX's net interest in %)
Consolidated - Tenke Fungurume (56%)			10				7				9					7
Less noncontrolling interests			4				3				4					3
Net			6				4				5					4
Average realized price per pound											$	6.47				$	9.79
a. Amounts are net of Morenci's 15 percent joint venture partner's interest.
b. On November 3, 2014, FCX completed the sale of its 80 percent interests in the Candelaria and Ojos del Salado mines.
c. Amounts are net of Grasberg's joint venture partner's interest, which varies in accordance with the terms of the joint venture agreement.

FREEPORT-McMoRan INC.
SELECTED MINING OPERATING DATA (continued)
			Years Ended December 31,
			Production								Sales
COPPER (millions of recoverable pounds)			2015				2014				2015					2014
(FCX's net interest in %)
North America
Morenci (85%)a			902				691				915					680
Bagdad (100%)			210				237				222					240
Safford (100%)			202				139				198					142
Sierrita (100%)			189				195				196					196
Miami (100%)			43				57				46					60
Chino (100%)			314				250				319					243
Tyrone (100%)			84				94				89					96
Other (100%)			3				7				3					7
Total North America			1,947				1,670				1,988					1,664
South America
Cerro Verde (53.56%)			545				500				544					501
El Abra (51%)			324				367				327					366
Candelaria/Ojos del Salado (80%)b			—				284				—					268
Total South America			869				1,151				871					1,135
Indonesia
Grasberg (90.64%)c			752				636				744					664
Africa
Tenke Fungurume (56%)			449				447				467					425
Consolidated			4,017				3,904				4,070					3,888
Less noncontrolling interests			680				725				688					715
Net			3,337				3,179				3,382					3,173
Consolidated sales from mines											4,070					3,888
Purchased copper											121					125
Total copper sales, including purchases											4,191					4,013
Average realized price per pound											$	2.42				$	3.09
GOLD (thousands of recoverable ounces)
(FCX's net interest in %)
North America (100%)			25				12				23					13
South America (80%)b			—				72				—					67
Indonesia (90.64%)c			1,232				1,130				1,224					1,168
Consolidated			1,257				1,214				1,247					1,248
Less noncontrolling interests			115				120				115					123
Net			1,142				1,094				1,132					1,125
Average realized price per ounce											$	1,129				$	1,231
MOLYBDENUM (millions of recoverable pounds)
(FCX's net interest in %)
Henderson (100%)			25				30				N/A					N/A
Climax (100%)			23				21				N/A					N/A
North America (100%)a			37				33				N/A					N/A
Cerro Verde (53.56%)			7				11				N/A					N/A
Consolidated			92				95				89					95
Less noncontrolling interests			3				5				4					5
Net			89				90				85					90
Average realized price per pound											$	8.70				$	12.74
COBALT (millions of contained pounds)
(FCX's net interest in %)
Consolidated - Tenke Fungurume (56%)			35				29				35					30
Less noncontrolling interests			15				13				15					13
Net			20				16				20					17
Average realized price per pound											$	8.21				$	9.66
a. Amounts are net of Morenci's 15 percent joint venture partner's interest.
b. On November 3, 2014, FCX completed the sale of its 80 percent interests in the Candelaria and Ojos del Salado mines.
c. Amounts are net of Grasberg's joint venture partner's interest, which varies in accordance with the terms of the joint venture agreement.

FREEPORT-McMoRan INC.
SELECTED MINING OPERATING DATA (continued)
			Three Months Ended								Years Ended
			December 31,								December 31,
			2015				2014				2015				2014
100% North America Copper Mines
Solution Extraction/Electrowinning (SX/EW) Operations
Leach ore placed in stockpiles (metric tons per day)			906,500				989,400				909,900				1,005,300
Average copper ore grade (percent)			0.26				0.25				0.26				0.25
Copper production (millions of recoverable pounds)			326				256				1,134				963
Mill Operations
Ore milled (metric tons per day)			319,300				301,200				312,100				273,800
Average ore grades (percent):
Copper			0.50				0.48				0.49				0.45
Molybdenum			0.03				0.03				0.03				0.03
Copper recovery rate (percent)			84.8				86.6				85.4				85.8
Production (millions of recoverable pounds):
Copper			244				247				972				828
Molybdenum			9				8				37				33
100% South America Mininga
SX/EW Operations
Leach ore placed in stockpiles (metric tons per day)			113,800				263,000				193,900				275,200
Average copper ore grade (percent)			0.49				0.41				0.44				0.48
Copper production (millions of recoverable pounds)			100				121				430				491
Mill Operations
Ore milled (metric tons per day)			240,100				159,000				152,100				180,500
Average ore grades:
Copper (percent)			0.47				0.50				0.46				0.54
Molybdenum (percent)			0.02				0.02				0.02				0.02
Gold (grams per metric ton)			—				0.11				—				0.10
Copper recovery rate (percent)			85.1				86.1				81.5				88.1
Production (recoverable):
Copper (millions of pounds)			184				132				439				660
Gold (thousands of ounces)			—				10				—				72
Molybdenum (millions of pounds)			2				3				7				11
100% Indonesia Mining
Ore milled (metric tons per day):b
Grasberg open pit			108,400				81,700				115,900				69,100
Deep Ore Zone underground mine			43,000				43,400				43,700				50,500
Deep Mill Level Zone underground mine			3,500				—				2,900				—
Big Gossan underground mine			—				—				—				900
Total			154,900				125,100				162,500				120,500
Average ore grades:
Copper (percent)			0.75				0.79				0.67				0.79
Gold (grams per metric ton)			0.92				1.14				0.79				0.99
Recovery rates (percent):
Copper			90.9				91.5				90.4				90.3
Gold			84.1				87.1				83.4				83.2
Production (recoverable):
Copper (millions of pounds)			201				175				752				651
Gold (thousands of ounces)			345				355				1,232				1,132
100% Africa Mining
Ore milled (metric tons per day)			15,900				13,700				14,900				14,700
Average ore grades (percent):
Copper			3.64				3.96				4.00				4.06
Cobalt			0.51				0.38				0.43				0.34
Copper recovery rate (percent)			94.0				91.8				94.0				92.6
Production (millions of pounds):
Copper (recoverable)			110				107				449				447
Cobalt (contained)			10				7				35				29
100% Molybdenum Mines
Ore milled (metric tons per day)			25,900				34,100				34,800				39,400
Average molybdenum ore grade (percent)			0.20				0.19				0.20				0.19
Molybdenum production (millions of recoverable pounds)			9				11				48				51
a. On November 3, 2014, FCX completed the sale of its 80 percent interests in the Candelaria and Ojos del Salado mines.
b. Amounts represent the approximate average daily throughput processed at PT-FI's mill facilities from each producing mine.

FREEPORT-McMoRan INC.
SELECTED U.S. OIL AND GAS OPERATING DATA
			Three Months Ended December 31,
			Sales Volumes										Sales per Day
			2015					2014					2015				2014
GULF OF MEXICO (GOM)a
Oil (thousand barrels or MBbls)			5,796					4,600					63				50
Natural gas (million cubic feet or MMcf)			9,731					7,899					106				86
Natural gas liquids (NGLs, in MBbls)			576					507					6				6
Thousand barrels of oil equivalents (MBOE)			7,994					6,423					87				70
Average realized price per BOEb			$	32.65				$	60.97
Cash production costs per BOEb			$	11.94				$	17.93
Capital expenditures (in millions)			$	619		c		$	917		c
CALIFORNIA
Oil (MBbls)			3,162					3,413					34				37
Natural gas (MMcf)			490					598					5				6
NGLs (MBbls)			38					41					1				—		d
MBOE			3,282					3,554					36				38
Average realized price per BOEb			$	32.44				$	62.34
Cash production costs per BOEb			$	30.53				$	34.12
Capital expenditures (in millions)			$	18				$	74
HAYNESVILLE/MADDEN/OTHER
Oil (MBbls)			38					40					1				—		d
Natural gas (MMcf)			11,317					12,412					123				135
NGLs (MBbls)			11					11					—		d		—		d
MBOE			1,935					2,120					21				23
Average realized price per BOEb			$	13.11				$	22.89
Cash production costs per BOEb			$	9.37				$	13.63
Capital expenditures (in millions)			$	(1	)			$	31
TOTAL U.S. OIL AND GAS OPERATIONS
Oil (MBbls)			8,996					8,053					98				87
Natural gas (MMcf)			21,538					20,909					234				227
NGLs (MBbls)			625					559					7				6
MBOE			13,211					12,097					144				131
Cash operating margin per BOE:b
Realized revenue			$	37.49				$	59.95
Cash production costs			16.17					21.93
Cash operating margin			$	21.32				$	38.02
Depreciation, depletion and amortization per BOE			$	25.61				$	45.96
Capital expenditures (in millions)			$	518		e		$	813		e
a. Reflects properties in the Deepwater GOM and on the Shelf, including the Inboard Lower Tertiary/Cretaceous natural gas trend.
b. Cash operating margin for oil and gas operations reflects realized revenues less cash production costs. Realized revenues exclude noncash mark-to-market adjustments on derivative contracts, which are managed on a consolidated basis; accordingly, the average realized price per BOE by region does not reflect adjustments for derivative contracts. For reconciliations of average realized price and cash production costs per BOE to revenues and production and delivery costs reported in FCX's consolidated financial statements, refer to the supplemental schedules, “Product Revenues and Production Costs,” beginning on page XV, which are available on FCX's website, “www.fcx.com.”
c. Includes $23 million in fourth-quarter 2015 and $187 million in fourth-quarter 2014 for the Inboard Lower Tertiary/Cretaceous natural gas trend.
d. Rounds to less than 1 MBbl per day.
e. Consolidated capital expenditures for U.S. oil and gas operations reflect total spending, which includes accrual and other adjustments totaling $(118) million in fourth-quarter 2015 and $(209) million in fourth-quarter 2014, that are not specifically allocated to the above regions. Excludes international oil and gas capital expenditures, primarily related to Morocco, totaling $19 million in fourth-quarter 2015 and $12 million in fourth-quarter 2014.

FREEPORT-McMoRan INC.
SELECTED U.S. OIL AND GAS OPERATING DATA (continued)
			Years Ended December 31,
			Sales Volumes										Sales per Day
			2015					2014a					2015				2014a
GOMb
Oil (MBbls)			22,161					19,681					61				54
Natural gas (MMcf)			35,878					28,700					98				79
NGLs (MBbls)			2,209					2,027					6				6
MBOE			30,350					26,491					83				73
Average realized price per BOEc			$	39.81				$	79.17
Cash production costs per BOEc			$	15.46				$	15.62
Capital expenditures (in millions)			$	2,630		d		$	2,749		d
CALIFORNIA
Oil (MBbls)			12,935					13,732					35				38
Natural gas (MMcf)			2,154					2,368					6				6
NGLs (MBbls)			166					171					1				—		e
MBOE			13,460					14,298					37				39
Average realized price per BOEc			$	39.92				$	83.65
Cash production costs per BOEc			$	30.66				$	36.59
Capital expenditures (in millions)			$	90				$	270
HAYNESVILLE/MADDEN/OTHER
Oil (MBbls)			158					222					—		e		—		e
Natural gas (MMcf)			51,626					42,364					142				116
NGLs (MBbls)			50					35					—		e		—		e
MBOE			8,812					7,318			f		24				20
Average realized price per BOEc			$	15.77				$	27.18		f
Cash production costs per BOEc			$	11.02				$	12.36		f
Capital expenditures (in millions)			$	28				$	119
EAGLE FORD
Oil (MBbls)			—					6,481					—				18
Natural gas (MMcf)			—					7,410					—				20
NGLs (MBbls)			—					978					—				3
MBOE			—					8,694					—				24
Average realized price per BOEc			$	—				$	81.66
Cash production costs per BOEc			$	—				$	12.97
Capital expenditures (in millions)			$	—				$	232
TOTAL U.S. OIL AND GAS OPERATIONS
Oil (MBbls)			35,254					40,116					96				110
Natural gas (MMcf)			89,658					80,842					246				221
NGLs (MBbls)			2,425					3,211					7				9
MBOE			52,622					56,801					144				156
Cash operating margin per BOE:c
Realized revenue			$	43.54				$	71.83
Cash production costs			18.59					20.08
Cash operating margin			$	24.95				$	51.75
Depreciation, depletion and amortization per BOE			$	34.28				$	40.34
Capital expenditures (in millions)			$	2,948		g		$	3,205		g
a. Includes the results of Eagle Ford through June 19, 2014.
b. Reflects properties in the Deepwater GOM and on the Shelf, including the Inboard Lower Tertiary/Cretaceous natural gas trend.
c. Cash operating margin for oil and gas operations reflects realized revenues less cash production costs. Realized revenues exclude noncash mark-to-market adjustments on derivative contracts, and cash production costs exclude accretion and other costs. In addition, the derivative contracts for oil and gas operations are managed on a consolidated basis; accordingly, the average realized price per BOE by region does not reflect adjustments for derivative contracts. For reconciliations of average realized price and cash production costs per BOE to revenues and production and delivery costs reported in FCX's consolidated financial statements, refer to the supplemental schedules, “Product Revenues and Production Costs,” beginning on page XV, which are available on FCX's website, “www.fcx.com.”
d. Includes $166 million for the year 2015, and $674 million for the year 2014, for the Inboard Lower Tertiary/Cretaceous natural gas trend.
e. Rounds to less than 1 MBbl per day.
f. The year 2014 includes volume adjustments related to Eagle Ford's pre-close sales totaling 114 MBOE; excluding these amounts, average realized price was $25.97 per BOE and cash production costs were $12.73 per BOE.
g. Consolidated capital expenditures for U.S. oil and gas operations reflect total spending, which includes accrual and other adjustments totaling $200 million for the year ended 2015, and $(165) million for the year ended 2014, that are not specifically allocated to the regions. Excludes international oil and gas capital expenditures, primarily related to Morocco, totaling $100 million for the year 2015, and $19 million for the year 2014.

FREEPORT-McMoRan INC.
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
			Three Months Ended										Years Ended
			December 31,										December 31,
			2015					2014					2015					2014
			(In Millions, Except Per Share Amounts)
Revenuesa,b			$	3,795				$	5,235				$	15,877				$	21,438
Cost of sales:
Production and deliveryc			3,046			d		2,927					11,545			d		11,898
Depreciation, depletion and amortization			780					939					3,497					3,863
Impairment of oil and gas properties			3,702					3,429					13,144					3,737
Copper and molybdenum inventory adjustments			184					6					338					6
Total cost of sales			7,712					7,301					28,524					19,504
Selling, general and administrative expenses			140			e		135					569			e		592
Mining exploration and research expenses			26					33					127					126
Environmental obligations and shutdown costs			17					19					78					119
Goodwill impairment			—					1,717					—					1,717
Net gain on sales of assets			—					(671		)			(39		)			(717		)
Total costs and expenses			7,895					8,534					29,259					21,341
Operating (loss) income			(4,100		)			(3,299		)			(13,382		)			97
Interest expense, netf			(187		)			(147		)			(645		)			(630		)
Insurance and other third-party recoveries			—					—					92					—
Net gain on early extinguishment of debt			—					10					—					73
Other income (expense), net			2					(12		)			(86		)			36
Loss before income taxes and equity in affiliated companies' net (losses) earnings			(4,285		)			(3,448		)			(14,021		)			(424		)
Benefit from (provision for) income taxesg			193					710					1,935					(324		)
Equity in affiliated companies' net (losses) earnings			(2		)			3					(3		)			3
Net loss			(4,094		)			(2,735		)			(12,089		)			(745		)
Net loss (income) attributable to noncontrolling interests			23					(107		)			(106		)			(523		)
Preferred dividends attributable to redeemable noncontrolling interest			(10		)			(10		)			(41		)			(40		)
Net loss attributable to FCX common stockh			$	(4,081	)			$	(2,852	)			$	(12,236	)			$	(1,308	)
Net loss per share attributable to FCX common stock:
Basic			$	(3.47	)			$	(2.75	)			$	(11.31	)			$	(1.26	)
Diluted			$	(3.47	)			$	(2.75	)			$	(11.31	)			$	(1.26	)
Weighted-average common shares outstanding:
Basic			1,177					1,039					1,082					1,039
Diluted			1,177					1,039					1,082					1,039
Dividends declared per share of common stock			$	—				$	0.3125				$	0.2605				$	1.25
a. Includes unfavorable adjustments to provisionally priced copper sales recognized in prior periods totaling $72 million ($38 million to net loss attributable to common stock) in fourth-quarter 2015, $28 million ($13 million to net loss attributable to common stock) in fourth-quarter 2014, $107 million ($53 million to net loss attributable to common stock) for the year 2015 and $118 million ($65 million to net loss attributable to common stock) for the year 2014. For further discussion, refer to the supplemental schedule, "Derivative Instruments" on page XI.
b. Includes net noncash mark-to-market (losses) gains associated with oil and gas derivative contracts totaling $(102) million ($(63) million to net loss attributable to common stock) in fourth-quarter 2015, $497 million ($309 million to net loss attributable to common stock) in fourth-quarter 2014, $(319) million ($(198) million to net loss attributable to common stock) for the year 2015 and $627 million ($389 million to net loss attributable to common stock) tor the year 2014. For further discussion, refer to the supplemental schedule, "Derivative Instruments" on page XI.
c. Includes charges at oil and gas operations primarily for other asset impairments and inventory write-downs, idle/terminated rig costs and prior period tax assessments related to the California properties totaling $129 million ($81 million to net loss attributable to common stock) in fourth-quarter 2015 and $188 million ($117 million to net loss attributable to common stock) for the year 2015. The fourth quarter and year 2014 includes charges totaling $46 million ($29 million to net loss attributable to common stock) primarily for idle/terminated rig costs and inventory write-downs.
d. Includes asset impairment, restructuring and other net charges at mining operations totaling $64 million ($38 million to net loss attributable to common stock) in fourth quarter 2015 and $156 million ($94 million to net loss attributable to common stock) for the year 2015.
e. Includes charges totaling $18 million ($12 million to net loss attributable to common stock) for executive retirement benefits.
f. Consolidated interest expense, excluding capitalized interest, totaled $218 million in fourth-quarter 2015, $205 million in fourth-quarter 2014, $860 million for the year 2015 and $866 million for the year 2014.
g. For a summary of the net tax charges impacting the fourth quarters and years ended December 31, 2015 and 2014, refer to the supplementary schedule, "Income Taxes," on page X.
h. FCX defers recognizing profits on intercompany sales until final sales to third parties occur. Changes in these deferrals attributable to variability in intercompany volumes resulted in net reductions to net loss attributable to common stock of $4 million in fourth- quarter 2015, $7 million in fourth-quarter 2014, $42 million for the year 2015 and $43 million for the year 2014. For further discussion, refer to the supplemental schedule, "Deferred Profits," on page XI.

FREEPORT-McMoRan INC.
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
			December 31,					December 31,
			2015					2014
			(In Millions)
ASSETS
Current assets:
Cash and cash equivalents			$	224				$	464
Trade accounts receivable			689					953
Other accounts receivable			1,588					1,610
Inventories:
Materials and supplies, net			1,869					1,886
Mill and leach stockpiles			1,724					1,914
Product			1,195					1,561
Other current assets			173					657
Total current assets			7,462					9,045
Property, plant, equipment and mining development costs, net			27,509					26,220
Oil and gas properties - full cost method:
Subject to amortization, less accumulated amortization			2,262					9,187
Not subject to amortization			4,831					10,087
Long-term mill and leach stockpiles			2,271					2,179
Other assets			2,242					1,956
Total assets			$	46,577				$	58,674
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable and accrued liabilities			$	3,355				$	3,653
Current portion of debt			649					478
Current portion of environmental and asset retirement obligations			272					296
Accrued income taxes			23					410
Dividends payable			8					335
Total current liabilities			4,307					5,172
Long-term debt, less current portion			19,779					18,371
Deferred income taxes			4,288					6,398
Environmental and asset retirement obligations, less current portion			3,739					3,647
Other liabilities			1,656					1,861
Total liabilities			33,769					35,449
Redeemable noncontrolling interest			764					751
Equity:
FCX stockholders' equity:
Common stock			137					117
Capital in excess of par value			24,283					22,281
(Accumulated deficit) retained earnings			(12,387		)			128
Accumulated other comprehensive loss			(503		)			(544		)
Common stock held in treasury			(3,702		)			(3,695		)
Total FCX stockholders' equity			7,828					18,287
Noncontrolling interests			4,216					4,187
Total equity			12,044					22,474
Total liabilities and equity			$	46,577				$	58,674

FREEPORT-McMoRan INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
			Years Ended
			December 31,
			2015					2014
			(In Millions)
Cash flow from operating activities:
Net loss			$	(12,089	)			$	(745	)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation, depletion and amortization			3,497					3,863
Impairment of oil and gas properties and goodwill			13,144					5,454
Copper and molybdenum inventory adjustments			338					6
Other asset impairments, inventory write-downs, restructuring and other net charges			256					18
Net gain on sales of assets			(39		)			(717		)
Net gains on crude oil and natural gas derivative contracts			(87		)			(504		)
Stock-based compensation			85					106
Net charges for environmental and asset retirement obligations, including accretion			209					200
Payments for environmental and asset retirement obligations			(198		)			(176		)
Net gain on early extinguishment of debt			—					(73		)
Deferred income taxes			(2,039		)			(929		)
Increase in long-term mill and leach stockpiles			(212		)			(233		)
Other, net			(18		)			(7		)
Changes in working capital and other tax payments, excluding amounts from acquisitions and dispositions:
Accounts receivable			813					215
Inventories			379					(249		)
Other current assets			97					—
Accounts payable and accrued liabilities			(217		)			(394		)
Accrued income taxes and changes in other tax payments			(699		)			(204		)
Net cash provided by operating activities			3,220					5,631
Cash flow from investing activities:
Capital expenditures:
North America copper mines			(355		)			(969		)
South America			(1,722		)			(1,785		)
Indonesia			(913		)			(948		)
Africa			(229		)			(159		)
Molybdenum mines			(13		)			(54		)
U.S. oil and gas operations			(2,948		)			(3,205		)
Other			(173		)			(95		)
Net proceeds from sale of Candelaria and Ojos del Salado			—					1,709
Net proceeds from sale of Eagle Ford shale assets			—					2,910
Acquisitions of Deepwater GOM interests			—					(1,426		)
Other, net			107					221
Net cash used in investing activities			(6,246		)			(3,801		)
Cash flow from financing activities:
Proceeds from debt			8,272					8,710
Repayments of debt			(6,677		)			(10,306		)
Net proceeds from sale of common stock			1,936					—
Cash dividends and distributions paid:
Common stock			(605		)			(1,305		)
Noncontrolling interests			(120		)			(424		)
Stock-based awards net (payments) proceeds, including excess tax benefit			(4		)			9
Debt financing costs and other, net			(16		)			(35		)
Net cash provided by (used in) financing activities			2,786					(3,351		)
Net decrease in cash and cash equivalents			(240		)			(1,521		)
Cash and cash equivalents at beginning of year			464					1,985
Cash and cash equivalents at end of year			$	224				$	464

FREEPORT-McMoRan INC.
ADJUSTED NET (LOSS) INCOME

Adjusted net (loss) income is intended to provide investors and others with information about FCX's recurring operating performance. This information differs from net (loss) income attributable to common stock determined in accordance with U.S. generally accepted accounting principles (GAAP) and should not be considered in isolation or as a substitute for measures of performance determined in accordance with U.S. GAAP. Adjusted net (loss) income may not be comparable to similarly titled measures reported by other companies.

			Three Months Ended December 31,
			2015															2014
			Pre-tax					After-tax					Per Share					Pre-tax					After-tax					Per Share
Net loss attributable to common stock			N/A					$	(4,081	)			$	(3.47	)			N/A					$	(2,852	)			$	(2.75	)
Net noncash mark-to-market (losses) gains on oil and gas derivative contractsa			$	(102	)			$	(63	)			$	(0.05	)			$	497				$	309				$	0.30
Impairment of oil and gas properties			(3,702		)			(3,743		)	b		(3.18		)			(3,429		)			(2,132		)			(2.05		)
Goodwill impairment			—					—					—					(1,717		)			(1,717		)			(1.65		)
Other charges for oil and gas operationsc			(129		)			(81		)			(0.07		)			(46		)			(29		)			(0.03		)
Adjustments to copper and molybdenum inventories			(184		)			(118		)			(0.10		)			(6		)			(4		)			—
Mining asset impairment, restructuring and other net charges			(64		)			(38		)			(0.03		)			—					—					—
Charges for executive retirement benefits			(18		)			(12		)			(0.01		)			—					—					—
Adjustments to environmental obligations			(7		)			(5		)			—					(8		)			16					0.02
Gain on sales of assetsd			—					—					—					671					$	450				0.43
Gain (loss) on early extinguishment of debt			—					—					—					10					(18		)			(0.02		)
Net tax benefite			N/A					—					—					N/A					6					—
			$	(4,206	)			$	(4,060	)			$	(3.45	)	f		$	(4,028	)			$	(3,119	)			$	(3.01	)	f
Adjusted net (loss) income			N/A					$	(21	)			$	(0.02	)			N/A					$	267				$	0.26
			Years Ended December 31,
			2015															2014
			Pre-tax					After-tax					Per Share					Pre-tax					After-tax					Per Share
Net loss attributable to common stock			N/A					$	(12,236	)			$	(11.31	)			N/A					$	(1,308	)			$	(1.26	)
Net noncash mark-to-market (losses) gains on oil and gas derivative contractsa			$	(319	)			$	(198	)			$	(0.18	)			$	627				$	389				$	0.37
Impairment of oil and gas properties			(13,144		)			(11,598		)	b		(10.72		)			(3,737		)			(2,324		)			(2.24		)
Goodwill impairment			—					—					—					(1,717		)			(1,717		)			(1.65		)
Other charges for oil and gas operationsc			(188		)			(117		)			(0.11		)			(46		)			(29		)			(0.03		)
Adjustments to copper and molybdenum inventories			(338		)			(217		)			(0.20		)			(6		)			(4		)			—
Mining asset impairment, restructuring and other net charges			(156		)			(94		)			(0.09		)			—					—					—
Charges for executive retirement benefits			(18		)			(12		)			(0.01		)			—					—					—
Adjustments to environmental obligations and related litigation reserves			(43		)			(28		)			(0.03		)			(76		)			(50		)			(0.05		)
Gain on sales of assetsd			39					25					0.02					717					481					0.46
Gain on shareholder derivative litigation settlement			92					92					0.09					—					—					—
Gain on early extinguishment of debt			—					—					—					73					3					—
Net tax chargese			N/A					—					—					N/A					(103		)			(0.10		)
			$	(14,075	)			$	(12,147	)			$	(11.23	)			$	(4,165	)			$	(3,354	)			$	(3.23	)	f
Adjusted net (loss) income			N/A					$	(89	)			$	(0.08	)			N/A					$	2,046				$	1.97
a. For further discussion of oil and gas derivative contracts, refer to "Derivative Instruments," on page XI.
b. As a result of the impairment to U.S. oil and gas properties, FCX recorded tax charges of $1.4 billion in fourth-quarter 2015 and $3.3 billion for the year 2015 to establish a valuation allowance against deferred tax assets that will not generate a future benefit, including U.S. federal alternative minimum tax credits and foreign tax credits (refer to "Income Taxes," on page X, for a summary of these amounts). These tax charges have been reflected in the above after-tax impacts for the impairment of oil and gas properties.
c. Other charges for oil and gas operations primarily include idle/terminated rig costs and inventory write-downs. The 2015 periods also include amounts for other asset impairments and prior period tax assessments related to the California properties.
d. Gain on sales of assets primarily reflect the sale of FCX's one-third interest in the Luna Energy power facility in New Mexico for the year 2015, and the sale of FCX's 80 percent interests in the Candelaria and Ojos del Salado mines for the fourth quarter and year 2014.
e. For further discussion of the net tax (charges) benefit impacting the 2015 and 2014 periods, refer to "Income Taxes," on page X.
f. Per share amounts do not foot down because of rounding.

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Contact

Freeport-McMoRan Inc.
Financial Contacts:
Kathleen L. Quirk, 602-366-8016
or
David P. Joint, 504-582-4203
or
Media Contact:
Eric E. Kinneberg, 602-366-7994