Stock Update (NYSE:FCX): Freeport-McMoRan Inc Announces New Organizational Structure for Oil & Gas Division

Freeport-McMoRan Inc (NYSE:FCX) announced a new organizational structure for its subsidiary Freeport-McMoRan Oil & Gas (FM O&G). The changes are being undertaken to reduce costs, streamline functions and to enhance capital allocation across FCX’s global business in a manner consistent with FCX’s debt reduction initiatives.

FM O&G is being restructured as an operating division of FCX, resulting in the elimination of FM O&G executive management roles and the integration of financial and administrative roles with FCX corporate functions.

Mark Kidder has been named Executive Vice President – Operations of FM O&G and will lead FM O&G’s operating team. Mark previously served as Vice President – Operations and has 36 years of operational experience in the offshore and onshore upstream energy industry, including 13 years with FM O&G and its predecessor and 23 years with major oil companies and independent energy producers.

Jim Flores, FM O&G CEO; Doss Bourgeois, President & COO; Winston Talbert, Executive Vice President & CFO and John Wombwell, Executive Vice President & General Counsel are departing the Company. This team has served as executive management for the FM O&G organization since FCX’s acquisition of Plains Exploration Company (PXP) in 2013.

Richard C. Adkerson, FCX’s President and Chief Executive Officer, said: “These changes reflect our focus on reducing costs throughout our global organization in response to a challenging commodity market environment. We appreciate Jim and his executive team’s service to Freeport and their efforts on behalf of our Company. Mark Kidder is an experienced and proven operational leader and I look forward to working with him in his expanded leadership role. FM O&G has an attractive portfolio of oil-weighted assets and a talented and dedicated workforce committed to its success.”

FM O&G will focus on conducting its operations safely and efficiently to preserve and enhance the values of its assets for anticipated future improvement in market conditions. Further steps will be taken to reduce costs and capital expenditures, and FCX will continue to evaluate potential transactions for the sale of certain assets of FM O&G. (Original Source)

Shares of Freeport-McMoRan closed yesterday at $9.42, down $0.47 or -4.75%. FCX has a 1-year high of $23.97 and a 1-year low of $3.52. The stock’s 50-day moving average is $9.05 and its 200-day moving average is $8.43.

On the ratings front, Freeport-McMoRan has been the subject of a number of recent research reports. In a report issued on March 30, Barclays analyst Matthew Korn assigned a Hold rating on FCX, with a price target of $9, which represents a slight downside potential from current levels. Separately, on March 23, Deutsche Bank’s Jorge Beristain reiterated a Hold rating on the stock and has a price target of $9.

According to, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Matthew Korn and Jorge Beristain have a total average return of 2.8% and -9.9% respectively. Korn has a success rate of 53.6% and is ranked #1416 out of 3777 analysts, while Beristain has a success rate of 38.5% and is ranked #3693.

Overall, one research analyst has rated the stock with a Sell rating, 9 research analysts have assigned a Hold rating and 2 research analysts have given a Buy rating to the stock. When considering if perhaps the stock is under or overvalued, the average price target is $9.00 which is -4.5% under where the stock closed yesterday.

Freeport-McMoRan, Inc. engages as copper, gold and molybdenum mining company. The company operates through five segments: North America Copper Mines, South America Copper Mines, Africa Mining, Indonesia Mining, and Molybdenum Mining. 

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