https://www.miningweekly.com

Freeport withdraws oil and gas business IPO

20th May 2016

By: Henry Lazenby

Creamer Media Deputy Editor: North America

  

Font size: - +

TORONTO (miningweekly.com) – Freeport-McMoRan Oil & Gas, a unit of US-based copper producer Freeport-McMoRan, has withdrawn its initial public offering (IPO) in the wake of a collapse of oil and gas prices that wreaked havoc on company valuations.

Since the unit filed for an IPO with the US Securities and Exchange Commission (SEC) in June 2015, the price of West Texas Intermediate benchmark crude had fallen nearly 22% to $47.75/bl on Friday.

Phoenix, Arizona-based Freeport stated in an SEC filing on Friday that while the IPO registration statement had not been declared effective by the commission, it could confirm that no securities were sold under the offering.

Freeport, saddled with about $20-billion in debt, had previously stated that it planned to sell a minority stake in its oil and gas subsidiary to raise funds for project development.

CEO Richard Adkerson last week advised that the company would aim at getting its debt level down to around $10-billion in the next two to three years “if the market opens the door for us”.

The company planned to start cleaning up its balance sheet through asset sales, and earlier last week announced the sale of its 56% interest in the Tenke Fungurume copper mine, in the Democratic Republic of Congo, for $2.65-billion.

Edited by Samantha Herbst
Creamer Media Deputy Editor

Comments

Showroom

Stewarts & Lloyds
Stewarts & Lloyds

Stewarts & Lloyds today supplies steel and tube, pipe and fittings, valves, pumps, irrigation, fencing, profiling and roofing products. The cash...

VISIT SHOWROOM 
Immersive Technologies
Immersive Technologies

Immersive Technologies is the world's largest, proven and tested supplier of simulator training solutions to the global resources industry.

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Hyphen, Eva mine, ferrochrome price make headlines
Hyphen, Eva mine, ferrochrome price make headlines
27th March 2024
Resources Watch
Resources Watch
27th March 2024

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.066 0.101s - 106pq - 2rq
Subscribe Now