US-based Freeport-McMoRan Copper & Gold (FCX) has completed the acquisition of Plains Exploration & Production Company (PXP) for approximately $16.3bn.
The transaction comprises assumption of $9.7bn of PXP debt and the payment of about $3.3bn in cash and issuance of about 91 million shares of FCX common stock, which is equal to $2.9bn.
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As part of the deal, FCX acquires oil production facilities in California, a growing production profile in the onshore Eagle Ford trend in Texas and large onshore resources in the Haynesville natural gas trend in Louisiana.
The acquisition was completed on 3 June 2013, based on approval from shareholder’s of McMoRan Exploration (MMR), which has natural gas trend in onshore South Louisiana.
FCX has assets in the Grasberg minerals district in Indonesia and in Morenci minerals district in North America, and the Cerro Verde and El Abra operations in South America.
The company also holds assets in the Tenke Fungurume minerals district in the Democratic Republic of Congo.
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By GlobalDataIn addition, the company has oil and natural gas assets in North America, which includes onshore California and Eagle Ford and Haynesville shale plays.
In October 2010, PXP announced it would acquire interests in about 60,000 net acres in the Eagle Ford oil and gas condensate windows in South Texas for $578m.
The Eagle Ford properties have net resource potential of about 140 to 175 million BOE, projected net production capability of about 2,000 BOE a day.
Image: Freeport-McMoRan Copper & Gold acquires oil production facilities in California and large onshore resources in the Haynesville natural gas trend in Louisiana. Photo: Courtesy of David Wright.
