Freeport-McMoRan acquires pair of oil & gas firms for US$9 billion
December 7, 2012, 12:05 am TWN
NEW YORK--Mining company Freeport-McMoRan is buying a pair of oil and gas producers for US$9 billion, creating a natural resources conglomerate with assets ranging from oil rigs in the Gulf of Mexico to mines in Indonesia.
Freeport-McMoRan, based in Phoenix, is paying US$6.9 billion in cash and stock for Plains Exploration & Production Co., and US$2.1 billion for McMoRan Exploration Co. Freeport will also assume US$11 billion in debt in the deal.
Plains Exploration, based in Houston, produces oil in California, Texas and the Gulf of Mexico, along with natural gas in Louisiana. McMoRan Exploration, based in New Orleans, is developing natural gas resources that lie deep below shallow water regions of the Gulf of Mexico.
The recent track record of miners buying oil and gas companies has been mixed.