GUARANTOR FINANCIAL STATEMENTS

As further discussed in Note 7, in March 2013, FCX completed the sale of $6.5 billion of senior notes. These notes, along with FCX's senior notes sold in February 2012, are fully and unconditionally guaranteed on a senior basis jointly and severally by FM O&G LLC, as guarantor, which is a 100 percent owned subsidiary of FCX. 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 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 issuer, FM O&G LLC, as guarantor, and all other non-guarantor subsidiaries of FCX. Included are the condensed consolidating balance sheet at September 30, 2013, and the related condensed consolidating statements of income for the three and nine months ended September 30, 2013, and the condensed consolidating statement of cash flows for the nine months ended September 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

September 30, 2013

(In millions)



	FCX		FM O&G LLC		Non-guarantor					Consolidated
	Issuer		Guarantor		Subsidiaries		Eliminations			FCX
ASSETS
Current assets:
Cash and cash equivalents	$	—	$	2	$	2,217	$	—		$	2,219
Accounts receivable	706		964		1,966		(1,407		)	2,229
Inventories	—		18		4,835		—			4,853
Other current assets	49		31		225		—			305
Total current assets	755		1,015		9,243		(1,407		)	9,606
Property, plant, equipment and
development costs, net	28		8,865		37,754		—			46,647
Investment in consolidated subsidiaries	30,314		9,596		—		(39,910		)	—
Goodwill	—		455		1,477		—			1,932
Other assets	7,448		4,219		4,401		(11,655		)	4,413
Total assets	$	38,545	$	24,150	$	52,875	$	(52,972	)	$	62,598

LIABILITIES AND EQUITY
Current liabilities	$	911	$	726	$	4,268	$	(1,407	)	$	4,498
Long-term debt, less current portion	13,484		10,049		5,421		(7,901		)	21,053
Deferred income taxes^a	3,718		—		3,204		—			6,922
Reclamation and environmental obligations,
less current portion	—		281		2,796		—			3,077
Other liabilities	27		3,447		2,054		(3,754		)	1,774
Total liabilities	18,140		14,503		17,743		(13,062		)	37,324

Redeemable noncontrolling interest	—		—		720		—			720

Equity:
Stockholders' equity	20,405		9,647		30,684		(40,331		)	20,405
Noncontrolling interests	—		—		3,728		421			4,149
Total equity	20,405		9,647		34,412		(39,910		)	24,554
Total liabilities and equity	$	38,545	$	24,150	$	52,875	$	(52,972	)	$	62,598


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

FREEPORT-McMoRan COPPER & GOLD INC.

CONDENSED CONSOLIDATING STATEMENTS OF INCOME

Three and Nine Months Ended September 30, 2013

(In millions)



Three Months Ended September 30, 2013
	FCX			FM O&G LLC			Non-guarantor						Consolidated
	Issuer			Guarantor			Subsidiaries			Eliminations			FCX
Revenues	$	—		$	512		$	5,653		$	—		$	6,165
Cost of sales	1			415			3,835			—			4,251
Other operating costs and expenses	10			37			160			—			207
Total costs and expenses	11			452			3,995			—			4,458
Operating (loss) income	(11		)	60			1,658			—			1,707
Interest expense, net	(94		)	(51		)	(40		)	23			(162		)
Other income (expense), net	24			—			2			(23		)	3
(Loss) income before income taxes and equity
in affiliated companies' net earnings (losses)	(81		)	9			1,620			—			1,548
Benefit from (provision for) income taxes	35			(5		)	(529		)	—			(499		)
Equity in affiliated companies' net earnings (losses)	867			187			47			(1,102		)	(1		)
Net income (loss)	821			191			1,138			(1,102		)	1,048
Net income and preferred dividends attributable to noncontrolling interests	—			—			(202		)	(25		)	(227		)
Net income (loss) attributable to FCX
common stockholders	$	821		$	191		$	936		$	(1,127	)	$	821



Nine Months Ended September 30, 2013
	FCX			FM O&G LLC			Non-guarantor						Consolidated
	Issuer			Guarantor			Subsidiaries			Eliminations			FCX
Revenues	$	—		$	674		$	14,362		$	—		$	15,036
Cost of sales	2			541			10,139			—			10,682
Other operating costs and expenses	104			46			503			—			653
Total costs and expenses	106			587			10,642			—			11,335
Operating (loss) income	(106		)	87			3,720			—			3,701
Interest expense, net	(222		)	(63		)	(104		)	38			(351		)
Losses on early extinguishment of debt	(45		)	—			—			—			(45		)
Gain on investment in MMR	128			—			—			—			128
Other income (expense), net	39			—			12			(38		)	13
(Loss) income before income taxes and equity
in affiliated companies' net earnings (losses)	(206		)	24			3,628			—			3,446
Benefit from (provision for) income taxes	61			(10		)	(1,018		)	—			(967		)
Equity in affiliated companies' net earnings (losses)	2,096			207			1			(2,301		)	3
Net income (loss)	1,951			221			2,611			(2,301		)	2,482
Net income and preferred dividends attributable to noncontrolling interests	—			—			(494		)	(37		)	(531		)
Net income (loss) attributable to FCX
common stockholders	$	1,951		$	221		$	2,117		$	(2,338	)	$	1,951

FREEPORT-McMoRan COPPER & GOLD INC.

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

Nine Months Ended September 30, 2013

(In millions)



	FCX			FM O&G LLC			Non-guarantor						Consolidated
	Issuer			Guarantor			Subsidiaries			Eliminations			FCX
Cash flow from operating activities:
Net income (loss)	$	1,951		$	221		$	2,611		$	(2,301	)	$	2,482
Adjustments to reconcile net income (loss) to net
cash provided by operating activities:
Depreciation, depletion and amortization	3			341			1,434			—			1,778
Net losses on oil and gas derivative contracts	—			205			—			—			205
Losses on early extinguishment of debt	45			—			—			—			45
Gain on investment in MMR	(128		)	—			—			—			(128		)
Equity in earnings of consolidated subsidiaries	(2,096		)	(207		)	2			2,301			—
Other, net	8			(15		)	(143		)	—			(150		)
(Increases) decreases in working capital and other tax
payments, excluding amounts from the acquisitions:
Accounts receivable, inventories and other
current assets	89			30			28			—			147
Accounts payable, accrued liabilities and accrued
income taxes and other tax payments	23			488			(1,147		)	—			(636		)
Net cash (used in) provided by operating activities	(105		)	1,063			2,785			—			3,743

Cash flow from investing activities:
Capital expenditures	—			(621		)	(3,002		)	—			(3,623		)
Acquisitions, net of cash acquired	(5,437		)	—			(4		)	—			(5,441		)
Intercompany loans	793			—			(1,095		)	302			—
Dividends from consolidated subsidiary	321			—			—			(321		)	—
Other, net	14			32			(70		)	—			(24		)
Net cash (used in) provided by investing activities	(4,309		)	(589		)	(4,171		)	(19		)	(9,088		)

Cash flow from financing activities:
Proceeds from debt	11,085			—			144			—			11,229
Repayments of debt and redemption of MMR preferred stock	(4,501		)	(416		)	(126		)	—			(5,043		)
Intercompany loans	—			(56		)	358			(302		)	—
Cash dividends paid:
Common stock	(1,957		)	—			(321		)	321			(1,957		)
Noncontrolling interests	—			—			(157		)	—			(157		)
Other, net	(213		)	—			—			—			(213		)
Net cash provided by (used in) financing activities	4,414			(472		)	(102		)	19			3,859

Net increase (decrease) in cash and cash equivalents	—			2			(1,488		)	—			(1,486		)
Cash and cash equivalents at beginning of period	—			—			3,705			—			3,705
Cash and cash equivalents at end of period	$	—		$	2		$	2,217		$	—		$	2,219