Freeport McMoRan Slashes Capex Outlook, To Review Copper Mining Operations

Freeport-McMoRan Inc. said Wednesday it is slashing its capital expenditures for its oil and gas business for 2016 and 2017 and reviewing its copper mining operations, as it adjusts to low commodity prices. "This revised operating plan will allow FM O&G to continue to grow production and enhance cash flow in a weak oil and gas price environment," the mining company said in a statement. The company is cutting its 2016 and 2017 capex budget for oil and gas to $2.0 billion from $2.9 billion and lowering production estimates. The company is also reviewing its global copper and molybdenum operations and will target lower operating and capital costs to maximize cash flow. "Production at certain operations challenged by low commodity prices will be curtailed," said the statement. The company expects to complete the review in the third quarter. It will also seek strategic partners to invest in oil and gas and mining. Shares rose 2.7% in premarket trade, but are down 52% in the year so far, while the S&P 500 has gained 1.7%.