GUARANTOR FINANCIAL STATEMENTS

In March 2013, FCX completed the sale of $6.5 billion of 2.375%, 3.100%, 3.875% and 5.450% Senior Notes. These notes, along with FCX's 1.40%, 2.15% and 3.55% Senior Notes sold in February 2012, are fully and unconditionally guaranteed on a senior basis jointly and severally by FM O&G's parent, which is a subsidiary of FCX. Refer to Note 7 for further discussion of FCX's senior notes. The guarantee is an unsecured obligation of the guarantor and ranks equal in right of payment with all existing and future indebtedness of FCX, including indebtedness under the revolving credit facility. The guarantee also ranks senior in right of payment with all future subordinated obligations and is effectively subordinated in right of payment to any debt of FCX's subsidiaries that are not subsidiary guarantors.

The following condensed consolidating financial information includes information regarding FCX, as parent, FM O&G's parent, as guarantor, and all other non-guarantor subsidiaries of FCX. Included are the condensed consolidating balance sheet at June 30, 2013, and the related condensed consolidating statements of income for the three and six months ended June 30, 2013, and the condensed consolidating statement of cash flow for the six months ended June 30, 2013, which should be read in conjunction with FCX's notes to the consolidated financial statements:

FREEPORT-McMoRan COPPER & GOLD INC.

CONDENSED CONSOLIDATING BALANCE SHEET

June 30, 2013

(In millions)



	FCX		FM O&G		Non-guarantor					Consolidated
	Parent		Parent		Subsidiaries		Eliminations			FCX
ASSETS
Current assets:
Cash and cash equivalents	$	—	$	59	$	3,235	$	—		$	3,294
Accounts receivable	4,453		1,312		1,487		(5,373		)	1,879
Inventories	—		20		4,926		—			4,946
Other current assets	101		80		278		—			459
Total current assets	4,554		1,471		9,926		(5,373		)	10,578
Property, plant, equipment and
development costs, net	29		8,730		37,455		—			46,214
Investment in consolidated subsidiaries	30,372		7,442		84		(37,898		)	—
Goodwill	—		454		1,450		—			1,904
Other assets	4,020		4,027		4,337		(7,923		)	4,461
Total assets	$	38,975	$	22,124	$	53,252	$	(51,194	)	$	63,157

LIABILITIES AND EQUITY
Current liabilities	$	1,898	$	2,102	$	6,983	$	(5,373	)	$	5,610
Long-term debt, less current portion	13,484		10,282		6,489		(9,113		)	21,142
Deferred income taxes^a	3,709		—		3,131		—			6,840
Reclamation and environmental obligations,
less current portion	—		275		2,831		—			3,106
Other liabilities	6		65		1,739		—			1,810
Total liabilities	19,097		12,724		21,173		(14,486		)	38,508

Redeemable noncontrolling interest	—		—		782		—			782

Equity:
Stockholders' equity	19,878		9,400		27,464		(36,864		)	19,878
Noncontrolling interests	—		—		3,833		156			3,989
Total equity	19,878		9,400		31,297		(36,708		)	23,867
Total liabilities and equity	$	38,975	$	22,124	$	53,252	$	(51,194	)	$	63,157


a.	All U.S. related deferred income taxes are recorded at the parent company.

FREEPORT-McMoRan COPPER & GOLD INC.

CONDENSED CONSOLIDATING STATEMENT OF INCOME

Three and Six Months Ended June 30, 2013

(In millions)



Three Months Ended June 30, 2013
	FCX			FM O&G			Non-guarantor						Consolidated
	Parent			Parent			Subsidiaries			Eliminations			FCX
Revenues	$	—		$	162		$	4,126		$	—		$	4,288
Cost of sales	1			126			3,256			—			3,383
Other operating costs and expenses	75			9			182			—			266
Total costs and expenses	76			135			3,438			—			3,649
Operating (loss) income	(76		)	27			688			—			639
Interest expense, net	(92		)	(12		)	(39		)	11			(132		)
Gain on investment in MMR	128			—			—			—			128
Other income (expense), net	11			—			13			(11		)	13
(Loss) income before income taxes and equity
in affiliated companies' net earnings (losses)	(29		)	15			662			—			648
Benefit from (provision for) income taxes	35			(5		)	(70		)	—			(40		)
Equity in affiliated companies' net earnings (losses)	476			20			(3		)	(491		)	2
Net income (loss)	482			30			589			(491		)	610
Net income attributable to noncontrolling interests	—			—			(133		)	5			(128		)
Net income (loss) attributable to FCX
common stockholders	$	482		$	30		$	456		$	(486	)	$	482



Six Months Ended June 30, 2013
	FCX			FM O&G			Non-guarantor						Consolidated
	Parent			Parent			Subsidiaries			Eliminations			FCX
Revenues	$	—		$	162		$	8,709		$	—		$	8,871
Cost of sales	3			126			6,304			(2		)	6,431
Other operating costs and expenses	92			9			343			2			446
Total costs and expenses	95			135			6,647			—			6,877
Operating (loss) income	(95		)	27			2,062			—			1,994
Interest expense, net	(128		)	(12		)	(64		)	15			(189		)
Losses on early extinguishment of debt	(45		)	—			—			—			(45		)
Gain on investment in MMR	128			—			—			—			128
Other income (expense), net	15			—			10			(15		)	10
(Loss) income before income taxes and equity
in affiliated companies' net earnings (losses)	(125		)	15			2,008			—			1,898
Benefit from (provision for) income taxes	26			(5		)	(489		)	—			(468		)
Equity in affiliated companies' net earnings (losses)	1,229			20			(46		)	(1,199		)	4
Net income (loss)	1,130			30			1,473			(1,199		)	1,434
Net income attributable to noncontrolling interests	—			—			(292		)	(12		)	(304		)
Net income (loss) attributable to FCX
common stockholders	$	1,130		$	30		$	1,181		$	(1,211	)	$	1,130

FREEPORT-McMoRan COPPER & GOLD INC.

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

Six Months Ended June 30, 2013

(In millions)



	FCX			FM O&G			Non-guarantor						Consolidated
	Parent			Parent			Subsidiaries			Eliminations			FCX
Cash flow from operating activities:
Net income (loss)	$	1,130		$	30		$	1,473		$	(1,199	)	$	1,434
Adjustments to reconcile net income (loss) to net
cash provided by operating activities:
Depreciation, depletion and amortization	2			79			772			6			859
Losses on early extinguishment of debt	45			—			—			—			45
Gain on investments in MMR	(128		)	—			—			—			(128		)
Equity in earnings of consolidated subsidiaries	(1,140		)	(20		)	5			1,155			—
Other, net	43			29			(260		)	38			(150		)
(Increases) decreases in working capital and other tax
payments, excluding amounts from the acquisitions:
Accounts receivable, inventories and other current assets	(2		)	32			22			196			248
Accounts payable, accrued liabilities and accrued
income taxes and other tax payments	144			(1		)	(295		)	(291		)	(443		)
Net cash provided by (used in) operating activities	94			149			1,717			(95		)	1,865

Cash flow from investing activities:
Capital expenditures	—			(151		)	(1,817		)	(10		)	(1,978		)
Acquisitions, net of cash acquired	(5,437		)	—			(321		)	344			(5,414		)
Other, net	(5		)	—			(259		)	—			(264		)
Net cash (used in) provided by investing activities	(5,442		)	(151		)	(2,397		)	334			(7,656		)

Cash flow from financing activities:
Proceeds from debt	10,885			—			136			—			11,021
Repayments of debt	(4,050		)	(415		)	(76		)	—			(4,541		)
Intercompany loans	(476		)	476			344			(344		)	—
Cash dividends paid:
Common stock	(595		)	—			(104		)	104			(595		)
Noncontrolling interests	—			—			(90		)	—			(90		)
Other, net	(416		)	—			—			1			(415		)
Net cash provided by (used in) financing activities	5,348			61			210			(239		)	5,380

Net increase (decrease) in cash and cash equivalents	—			59			(470		)	—			(411		)
Cash and cash equivalents at beginning of period	—			—			3,705			—			3,705
Cash and cash equivalents at end of period	$	—		$	59		$	3,235		$	—		$	3,294