$FCX Acquires $PXP and $MMR for a Combined $20 Billion

“PHOENIX & HOUSTON & NEW ORLEANS–(BUSINESS WIRE)–

Freeport-McMoRan Copper & Gold Inc. (FCX), Plains Exploration & Production Company (PXP) and McMoRan Exploration Co. (MMR) announced today that they have signed definitive merger agreements under which FCX will acquire PXP for approximately $6.9 billion in cash and stock and FCX will acquire MMR for approximately $3.4 billion in cash, or $2.1 billion net of 36 percent of the MMR interests currently owned by FCX and PXP. Upon closing, MMR shareholders will also receive a distribution of units in a royalty trust which will hold a 5 percent overriding royalty interest on future production in MMR’s existing shallow water ultra-deep properties.

The combined company is expected to be a premier U.S.-based natural resource company with an industry leading global portfolio of mineral assets, significant oil and gas resources and a growing production profile.”

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