Freeport McMoRan to cut 25% of oil and gas workforce
Apr 26 2016, 09:15 ET | By:
Carl Surran, SA News Editor
Freeport McMoRan (NYSE:
FCX) -0.8% premarket after reporting a narrower than expected
Q1 loss and a 16% Y/Y decline in revenues.
FCX says it is cutting 25% of its oil and gas workforce, and institute a new management structure, as part of plans to cut costs, and expects to record a related $40M charge in Q2.
Q1 consolidated sales totaled 1.1B lbs. of copper (+14.5% Y/Y), 201K oz. of gold (-23.5%) and 12.1M boe (down less than 1%).
The company says it remains focused on improving its balance sheet and is making progress on its asset sales program with
$1.4B in deals YTD.
FCX cuts its 2016 capital spending estimate to ~$3.3B from a previous outlook for ~$3.4B, and expects 2016 operating cash flows of ~$4.8B, up from $3.4B.
FCX reiterates that it is actively engaged with interested parties to evaluate options for its oil and gas business, including possible asset sales or joint venture deals.