Freeport-McMoRan wraps up $919M Gulf of Mexico acquisition

Freeport-McMoRan Oil & Gas (FM O&G) has completed the previously announced acquisition of certain of Apache Corporation’s interests in the Deepwater Gulf of Mexico (GOM).

Freeport-McMoRan wraps up $919M Gulf of Mexico acquisition
Following the exercise of preferential purchase rights by other working interest owners in the Lucius project, FM O&G acquired for $919 million, 51.2% of Apache’s 11.7% working interest in the Lucius oil development project, 100% of Apache’s 12.5% working interest in the Heidelberg oil development project and several exploration leases.

Following closing and the interim redetermination of equity ownership by the co owners in the Lucius field, FM O&G owns an approximate 25.1% working interest in Lucius.

The Deepwater GOM acquisition was funded with proceeds from the previously reported sale of FM O&G’s Eagle Ford Shale assets, which closed on June 20, 2014. The estimated combined after-tax net proceeds from these transactions approximate $1.8 billion. On June 23, 2014, FCX announced that it will redeem in July 2014 approximately $1.7 billion aggregate face amount of senior notes with an average annual
interest rate of approximately 6.6%.

Press Release, July 1, 2014