GUARANTOR FINANCIAL STATEMENTS

As further discussed in Note 8, 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 FM O&G and 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. In the future, FM O&G LLC's guarantee may be released or terminated under the following circumstances: (i) all or substantially all of the equity interests or assets of FM O&G LLC are sold to a third party; or (ii) FM O&G LLC no longer has any obligations under any FM O&G Senior Notes or any refinancing thereof and no longer guarantees any obligations of FCX under the revolver, the term loan or any other senior debt.

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 December 31, 2013, and the related condensed consolidating statement of comprehensive income for the year ended December 31, 2013, and the condensed consolidating statement of cash flows for the year ended December 31, 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

December 31, 2013



	FCX			FM O&G LLC		Non-guarantor					Consolidated
	Issuer			Guarantor		Subsidiaries		Eliminations			FCX
ASSETS
Current assets:
Cash and cash equivalents	$	—		$	—	$	1,985	$	—		$	1,985
Accounts receivable	855			659		2,258		(1,210		)	2,562
Inventories	—			18		5,000		—			5,018
Other current assets	114			20		273		—			407
Total current assets	969			697		9,516		(1,210		)	9,972
Property, plant, equipment and mining development costs, net	27			43		23,972		—			24,042
Oil and gas properties, net - full cost method:
Subject to amortization	—			6,207		6,265		—			12,472
Not subject to amortization	—			2,649		8,238		—			10,887
Investment in consolidated subsidiaries	31,162			9,712		12,468		(53,342		)	—
Goodwill	—			437		1,479		—			1,916
Other assets	7,126			4,640		4,128		(11,710		)	4,184
Total assets	$	39,284		$	24,385	$	66,066	$	(66,262	)	$	63,473

LIABILITIES AND EQUITY
Current liabilities	$	1,003		$	758	$	4,222	$	(1,210	)	$	4,773
Long-term debt, less current portion	13,184			7,199		8,056		(8,045		)	20,394
Deferred income taxes	4,137		^a	—		3,273		—			7,410
Environmental and asset retirement obligations, less current portion	—			301		2,958		—			3,259
Other liabilities	26			3,436		1,893		(3,665		)	1,690
Total liabilities	18,350			11,694		20,402		(12,920		)	37,526

Redeemable noncontrolling interest	—			—		716		—			716

Equity:
Stockholders' equity	20,934			12,691		41,100		(53,791		)	20,934
Noncontrolling interests	—			—		3,848		449			4,297
Total equity	20,934			12,691		44,948		(53,342		)	25,231
Total liabilities and equity	$	39,284		$	24,385	$	66,066	$	(66,262	)	$	63,473


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

FREEPORT-McMoRan COPPER & GOLD INC.

CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME

Year Ended December 31, 2013



	FCX			FM O&G LLC			Non-guarantor						Consolidated
	Issuer			Guarantor			Subsidiaries			Eliminations			FCX
Revenues	$	—		$	1,177		$	19,744		$	—		$	20,921
Cost of sales	5			976			13,656			—			14,637
Other operating costs and expenses	129			89			715			—			933
Total costs and expenses	134			1,065			14,371			—			15,570
Operating (loss) income	(134		)	112			5,373			—			5,351
Interest expense, net	(319		)	(129		)	(129		)	59			(518		)
Losses on early extinguishment of debt	(45		)	—			10			—			(35		)
Gain on investment in MMR	128			—			—			—			128
Other income (expense), net	61			—			(15		)	(59		)	(13		)
(Loss) income before income taxes and equity in affiliated companies' net earnings (losses)	(309		)	(17		)	5,239			—			4,913
Benefit from (provision for) income taxes	81			17			(1,573		)	—			(1,475		)
Equity in affiliated companies' net earnings (losses)	2,886			281			268			(3,432		)	3
Net income (loss)	2,658			281			3,934			(3,432		)	3,441
Net income and preferred dividends attributable to noncontrolling interests	—			—			(706		)	(77		)	(783		)
Net income (loss) attributable to FCX common stockholders	$	2,658		$	281		$	3,228		$	(3,509	)	$	2,658

Other comprehensive income	—			—			101			—			101
Total comprehensive income (loss)	$	2,658		$	281		$	3,329		$	(3,509	)	$	2,759

FREEPORT-McMoRan COPPER & GOLD INC.

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

Year Ended December 31, 2013



	FCX			FM O&G LLC			Non-guarantor						Consolidated
	Issuer			Guarantor			Subsidiaries			Eliminations			FCX
Cash flow from operating activities:
Net income (loss)	$	2,658		$	281		$	3,934		$	(3,432	)	$	3,441
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation, depletion and amortization	4			616			2,177			—			2,797
Net losses on crude oil and natural gas derivative contracts	—			334			—			—			334
Gain on investment in MMR	(128		)	—			—			—			(128		)
Equity in earnings of consolidated subsidiaries	(2,886		)	(281		)	(265		)	3,432			—
Other, net	8			(14		)	78			—			72
(Increases) decreases in working capital and changes in other tax payments, excluding amounts from the acquisitions	272			735			(1,384		)	—			(377		)
Net cash (used in) provided by operating activities	(72		)	1,671			4,540			—			6,139

Cash flow from investing activities:
Capital expenditures	—			(894		)	(4,392		)	—			(5,286		)
Acquisitions, net of cash acquired	(5,437		)	—			(4		)	—			(5,441		)
Intercompany loans	834			—			(162		)	(672		)	—
Distributions from consolidated subsidiary	629			—			—			(629		)	—
Other, net	15			30			(226		)	—			(181		)
Net cash used in investing activities	(3,959		)	(864		)	(4,784		)	(1,301		)	(10,908		)

Cash flow from financing activities:
Proceeds from debt	11,260			—			241			—			11,501
Repayments of debt and redemption of MMR preferred stock	(4,737		)	(416		)	(551		)	—			(5,704		)
Intercompany loans	—			(391		)	(281		)	672			—
Cash dividends and distributions paid	(2,281		)	—			(885		)	629			(2,537		)
Other, net	(211		)	—			—			—			(211		)
Net cash provided by (used in) financing activities	4,031			(807		)	(1,476		)	1,301			3,049

Net decrease in cash and cash equivalents	—			—			(1,720		)	—			(1,720		)
Cash and cash equivalents at beginning of year	—			—			3,705			—			3,705
Cash and cash equivalents at end of year	$	—		$	—		$	1,985		$	—		$	1,985