Freeport-McMoRan Inc. (NYSE:FCX) Q4 2014 Earnings Conference Call - Final Transcript

Jan 27, 2015 • 10:00 am ET


Freeport-McMoRan Inc. (NYSE:FCX) Q4 2014 Earnings Conference Call - Final Transcript


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Ladies and gentlemen, thank you for standing by. Welcome to the Freeport-McMoRan Fourth Quarter Earnings Conference Call. At this time, all participant are in a listen-only mode. Later we will conduct a question-and-answer session. (Operator Instructions).

I would now like to turn the conference over to Ms. Kathleen Quirk, EVP and CFO. Please go ahead, ma'am.

Kathleen Quirk

Thank you and good morning. Welcome to the Freeport-McMoRan fourth quarter 2014 earnings conference call. Our results were released earlier this morning and a copy of the press release and slides for today's call are available on our website at Our conference call today is being broadcast live on the Internet and anyone may listen to the call by accessing our website homepage and clicking on the webcast link for the conference call. In addition to analysts and investors, the financial press has been invited to listen to today's call and a replay of the webcast will be available on our website later today.

(Forwarding-Looking Cautionary Statements)

On the call today are Jim Bob Moffett, Chairman of the Board; Richard Adkerson, Vice Chairman, President and CEO; Jim Flores, Vice Chairman and CEO of Freeport-McMoRan Oil and Gas with several others of my senior team here today joining the call. I'll start by briefly summarizing our financial results and then turn the call over to Richard who review our recent performance and outlook using the slides with materials that are on our website. As usual, after our remarks we'll open up the call for question.

Today, FCX reported a net loss attributable to common stock of 2.9 billion or $2.75 per share for the fourth quarter of 2014. There are number of special items in the quarter, which are detailed in the press release, the net loss attributable to common stock included net charges of 3.1 billion or $3 per share in the fourth quarter are primarily associated with a reduction in the carrying value of oil and gas properties pursuant to SEC full cost accounting rules and goodwill impairment charges is further detailed in the press release. These were partly offset by non-cash, mark-to-market gains on oil and gas derivative contracts and the net gain from the sale of the Candelaria in Ojos mining operations, which were completed in the fourth quarter.

Copper sales totaled 972 million pounds in the quarter and 3.9 billion pounds for the full year, gold sales were 377,000 ounces in the fourth quarter and $1.25 million ounces for the year 2014. Our oil and gas sales totaled 12.1 million barrels of oil equivalents in the fourth quarter and were $56.8 million barrels of oil equivalent for the year. Our average realized prices for copper during the quarter were $2.95 per pound that was below the year ago period of 3.31 per pound, a gold prices averaged 11.93 per ounce below last year's fourth quarter of $12.20 per ounce and our average realized price for crude oil in the fourth quarter was 28 -- that was 78.02 per barrel, which