Freeport-McMoRan: Color on sale of deepwater GoM assets to Anadarko
- FCX -2% premarket with oil down 2.2%... APC -4.4%
- Cowen notes Freeport announced the sale of Deepwater GOM assets to Anadarko (APC) for cash and contingent payments. They believe investors were skeptical a GOM deal could get done and view this transaction as the long-awaited closure of a major overhang for FCX shares. They expect investors to now turn full attention to Indonesia.
- FBR & Co believes the transaction will likely be viewed as a major positive development for the co, following management's year-long quest to reduce debt, reduce spending in the O&G division especially, and focus on its mining assets, even as some major mining assets had to be divested. The GOM valuation is generally in line with our dual NAV and DCF valuation of the co's O&G assets (including the California assets FCX will retain) at $2.5B. After the company had explored various monetization efforts for its GOM assets without results, they believe that yesterday's announcement beat expectations in terms of the likelihood of a sale as well as valuation.
- RBC: Freeport announced the sale of its Deepwater Gulf of Mexico Oil & Gas asset for a total cash consideration of US$2.0 billion to Anadarko Petroleum Corporation, versus our valuation of US$1.7 billion.