October 23, 2016 10:33 AM ET

Oil, Gas and Consumable Fuels

Company Overview of Freeport-McMoRan Oil & Gas Inc.

Company Overview

Freeport-McMoRan Oil & Gas Inc. acquires, explores, develops, and produces oil and gas in the United States. It owns oil and gas properties with principal operations in onshore California, offshore California, the Gulf of Mexico, the Gulf Coast region, and the Rocky Mountains. The company was founded in 2002 and is headquartered in Houston, Texas. Freeport-McMoRan Oil & Gas Inc. operates as a subsidiary of Freeport-Mcmoran Oil & Gas LLC.

700 Milam Street

Suite 3100

Houston, TX 77002

United States

Founded in 2002





Key Executives for Freeport-McMoRan Oil & Gas Inc.

Executive Vice President of Operations
Vice President of Environmental, Health, Safety and Government Affairs
Compensation as of Fiscal Year 2016.

Freeport-McMoRan Oil & Gas Inc. Key Developments

Freeport-McMoRan Oil & Gas Inc. Announces Reorganization; Plans to Cut Workforce by 25%; Announces Management Changes

Freeport-McMoRan Inc. has reorganized its Houston-based oil and gas business and now plans to cut the division's workforce by 25%. Earlier this month, the company announced it would restructure its subsidiary, Freeport-McMoRan Oil & Gas, as an operating division. The reorganization eliminated several executive roles including that of James 'Jim' Flores, a well-known Houston businessman and philanthropist. The roles and executives being eliminated are: Jim Flores, FM O&G CEO; Doss Bourgeois, president and COO; Winston Talbert, executive vice president and CFO; and John Wombwell, executive vice president and general counsel. They had led FM O&G since its predecessor, Plains Exploration & Production Co., was acquired by FCX in 2013 for $6.9 billion. Under the new structure, Mark Kidder was promoted to executive vice president of operations of FM O&G. He will lead the division's operating team. FCX also disclosed its plans to cut the division's workforce by 25%. The company expects to record a $40 million charge in the second quarter due to workforce reductions and other restructuring costs.

Freeport-Mcmoran Oil & Gas Inc. Provides CapEx Guidance for the Fiscal Year 2016 and 2017

Freeport-McMoRan Oil & Gas Inc. provided CapEx guidance for the fiscal year 2016 and 2017. For the fiscal year 2016, the company expects capital expenditure of $1.8 billion against $2 billion as previously announced. For the fiscal year 2017, the company expects capital expenditure of $1.2 billion against $2 billion as previously announced. The revised plans, together with initiatives to obtain third party financing or other strategic alternatives, will be pursued with the goal of achieving funding for oil and gas capital spending within its cash flows and resources.

Freeport-McMoRan Oil & Gas Announces Positive Drilling Results at the Horn Mountain Deep Project & Updates Other Deepwater Gulf of Mexico Activities

Freeport-McMoRan Inc. announced positive drilling results from the Freeport-McMoRan Oil & Gas (FM O&G) 100% owned Horn Mountain Deep well in the Deepwater Gulf of Mexico (GOM). Initial production from this well, which will be tied back to existing facilities, is expected in first half 2017. This well, combined with two follow on development wells at Horn Mountain Deep, may be capable of producing an aggregate of 30,000 barrels of oil equivalents per day (BOE/d). During September 2015, the Horn Mountain Deep well was drilled to a total depth of approximately 16,925 feet. Logging while drilling logs indicated that the well encountered a total of approximately 142 net feet of Middle Miocene oil pay with excellent reservoir characteristics. In addition, these results indicate the presence of sand sections deeper than known pay sections in the field. The 100% owned Horn Mountain production facilities in FM O&G's Mississippi Canyon area are capable of processing 75 MBbls of oil per day. The positive results at Horn Mountain Deep and geophysical data support the existence of prolific Middle Miocene reservoir potential for several additional opportunities in the area, including the 100% owned Sugar, Rose, Fiesta, Platinum and Peach prospects. FM O&G controls rights to over 55,000 acres associated with these prospects. Since commencing development activities in 2014 at its three 100% owned production platforms in the Deepwater GOM, FM O&G has drilled 12 wells, all with positive results. Three of these wells have been brought on production, and FM O&G plans to complete and place the remaining additional wells on production in late 2015, 2016 and 2017. The success at Horn Mountain Deep follows the positive drilling results announced in July 2015 from three wells drilled in the Horn Mountain area, including the Quebec/Victory (QV), Kilo/Oscar (KO) and Horn Mountain Updip tieback prospects. In aggregate, these wells may be capable of producing over 27,000 BOE/d, with initial production expected in mid-year 2016. Also during the third quarter of 2015, FM O&G drilled its second successful development well at its 100% owned King field, located in Mississippi Canyon south of the 100% owned Marlin facility in 5,200 feet of water. A third development well is in progress. In aggregate, these wells may be capable of producing 20,000 BOE/d, with initial production expected to commence in the fourth quarter of 2015. FM O&G's Marlin production facilities in the Mississippi Canyon focus area are capable of processing 60 MBbls of oil per day. Completion activities of the previously drilled three well program at the 100% owned Holstein Deep field are progressing on schedule with first production expected by mid-year 2016. In aggregate, the three wells are estimated to commence production at approximately 24,000 BOE/d. A fourth well is being planned as part of the second phase of the Holstein Deep program. FM O&G's Holstein production facilities in the Green Canyon focus area are capable of processing 113 MBbls of oil per day. FM O&G will continue the successful strategy to focus on its high return, low-risk tieback projects using its existing Deepwater GOM infrastructure (total processing capacity of approximately 250 MBbls of oil per day) and large Deepwater GOM project inventory (over 150 undeveloped locations). FM O&G will carefully managing capital during this challenging market environment.

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