Freeport withdraws oil and gas business IPO
TORONTO (miningweekly.com) – Freeport-McMoRan Oil & Gas, a unit of US-based copper producer Freeport-McMoRan, has withdrawn its initial public offering (IPO) in the wake of a collapse of oil and gas prices that wreaked havoc on company valuations.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.
Comments
Press Office
Announcements
What's On
Subscribe to improve your user experience...
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?
Receive 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)
➕
Recieve 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
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation