GUARANTOR FINANCIAL STATEMENTS

All of the senior notes issued by FCX are fully and unconditionally guaranteed on a senior basis jointly and severally by Freeport-McMoRan Oil & Gas LLC (FM O&G LLC), as guarantor, which is a 100 percent owned subsidiary of FCX Oil & Gas Inc. (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 FM O&G LLC, including indebtedness under the revolving credit facility. The guarantee ranks senior in right of payment with all of FM O&G LLC's future subordinated obligations and is effectively subordinated in right of payment to any debt of FM O&G LLC's subsidiaries. In the future, FM O&G LLC's guarantee may be released or terminated for certain obligations 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 sheets at March 31, 2015, and December 31, 2014, and the related condensed consolidating statements of comprehensive (loss) income and cash flows for the three months ended March 31, 2015 and 2014 (in millions), which should be read in conjunction with FCX's notes to the consolidated financial statements.

CONDENSED CONSOLIDATING BALANCE SHEET

March 31, 2015



	FCX			FM O&G LLC		Non-guarantor					Consolidated
	Issuer			Guarantor		Subsidiaries		Eliminations			FCX
ASSETS
Current assets	$	288		$	3,623	$	8,257	$	(3,314	)	$	8,854
Property, plant, equipment and mining development costs, net	21			48		26,526		—			26,595
Oil and gas properties, net - full cost method:
Subject to amortization, less accumulated amortization	—			2,309		4,404		—			6,713
Not subject to amortization	—			2,553		7,112		—			9,665
Investments in consolidated subsidiaries	25,828			4,117		7,005		(36,950		)	—
Other assets	9,814			4,276		4,160		(14,012		)	4,238
Total assets	$	35,951		$	16,926	$	57,464	$	(54,276	)	$	56,065

LIABILITIES AND EQUITY
Current liabilities	$	1,819		$	400	$	5,505	$	(3,314	)	$	4,410
Long-term debt, less current portion	15,900			4,771		9,625		(10,542		)	19,754
Deferred income taxes	2,390		^a	—		3,235		—			5,625
Environmental and asset retirement obligations, less current portion	—			303		3,375		—			3,678
Other liabilities	49			3,359		1,874		(3,470		)	1,812
Total liabilities	20,158			8,833		23,614		(17,326		)	35,279

Redeemable noncontrolling interest	—			—		755		—			755

Equity:
Stockholders' equity	15,793			8,093		29,376		(37,469		)	15,793
Noncontrolling interests	—			—		3,719		519			4,238
Total equity	15,793			8,093		33,095		(36,950		)	20,031
Total liabilities and equity	$	35,951		$	16,926	$	57,464	$	(54,276	)	$	56,065


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

CONDENSED CONSOLIDATING BALANCE SHEET

December 31, 2014



	FCX			FM O&G LLC		Non-guarantor					Consolidated
	Issuer			Guarantor		Subsidiaries		Eliminations			FCX
ASSETS
Current assets	$	323		$	2,635	$	8,659	$	(2,572	)	$	9,045
Property, plant, equipment and mining development costs, net	22			46		26,152		—			26,220
Oil and gas properties, net - full cost method:
Subject to amortization, less accumulated amortization	—			3,296		5,907		(16		)	9,187
Not subject to amortization	—			2,447		7,640		—			10,087
Investments in consolidated subsidiaries	28,765			6,460		10,246		(45,471		)	—
Other assets	8,914			3,947		4,061		(12,787		)	4,135
Total assets	$	38,024		$	18,831	$	62,665	$	(60,846	)	$	58,674

LIABILITIES AND EQUITY
Current liabilities	$	1,592		$	560	$	5,592	$	(2,572	)	$	5,172
Long-term debt, less current portion	14,930			3,874		8,879		(9,312		)	18,371
Deferred income taxes	3,161		^a	—		3,237		—			6,398
Environmental and asset retirement obligations, less current portion	—			302		3,345		—			3,647
Other liabilities	54			3,372		1,910		(3,475		)	1,861
Total liabilities	19,737			8,108		22,963		(15,359		)	35,449

Redeemable noncontrolling interest	—			—		751		—			751

Equity:
Stockholders' equity	18,287			10,723		35,268		(45,991		)	18,287
Noncontrolling interests	—			—		3,683		504			4,187
Total equity	18,287			10,723		38,951		(45,487		)	22,474
Total liabilities and equity	$	38,024		$	18,831	$	62,665	$	(60,846	)	$	58,674


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

CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE (LOSS) INCOME



Three Months Ended March 31, 2015
	FCX			FM O&G LLC				Non-guarantor							Consolidated
	Issuer			Guarantor				Subsidiaries				Eliminations			FCX
Revenues	$	—		$	181			$	3,972			$	—		$	4,153
Total costs and expenses	16			1,318			^a	5,798			^a	(16		)	7,116
Operating (loss) income	(16		)	(1,137		)		(1,826		)		16			(2,963		)
Interest expense, net	(115		)	(4		)		(57		)		30			(146		)
Other income (expense), net	29			—				8				(30		)	7
(Loss) income before income taxes and equity in affiliated companies' net (losses) earnings	(102		)	(1,141		)		(1,875		)		16			(3,102		)
(Provision for) benefit from income taxes	(421		)	1,157				(35		)		(6		)	695
Equity in affiliated companies' net (losses) earnings	(1,951		)	(2,359		)		(3,530		)		7,841			1
Net (loss) income	(2,474		)	(2,343		)		(5,440		)		7,851			(2,406		)
Net income and preferred dividends attributable to noncontrolling interests	—			—				(56		)		(12		)	(68		)
Net (loss) income attributable to common stockholders	$	(2,474	)	$	(2,343	)		$	(5,496	)		$	7,839		$	(2,474	)

Other comprehensive income (loss)	12			—				12				(12		)	12
Total comprehensive (loss) income	$	(2,462	)	$	(2,343	)		$	(5,484	)		$	7,827		$	(2,462	)


a.	Includes impairment charges totaling $1.1 billion at the FM O&G LLC guarantor and $2.0 billion at the non-guarantor subsidiaries related to ceiling test impairment charges for FCX's oil and gas properties pursuant to full cost accounting rules.



Three Months Ended March 31, 2014
	FCX			FM O&G LLC			Non-guarantor						Consolidated
	Issuer			Guarantor			Subsidiaries			Eliminations			FCX
Revenues	$	—		$	644		$	4,341		$	—		$	4,985
Total costs and expenses	11			526			3,339			(2		)	3,874
Operating (loss) income	(11		)	118			1,002			2			1,111
Interest expense, net	(82		)	(41		)	(58		)	20			(161		)
Other income (expense), net	20			—			33			(20		)	33
(Loss) income before income taxes and equity in affiliated companies' net earnings (losses)	(73		)	77			977			2			983
Provision for income taxes	(21		)	(43		)	(292		)	(1		)	(357		)
Equity in affiliated companies' net earnings (losses)	604			130			185			(919		)	—
Net income (loss)	510			164			870			(918		)	626
Net income and preferred dividends attributable to noncontrolling interests	—			—			(111		)	(5		)	(116		)
Net income (loss) attributable to common stockholders	$	510		$	164		$	759		$	(923	)	$	510

Other comprehensive income (loss)	3			—			3			(3		)	3
Total comprehensive income (loss)	$	513		$	164		$	762		$	(926	)	$	513

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

Three Months Ended March 31, 2015



	FCX			FM O&G LLC			Non-guarantor						Consolidated
	Issuer			Guarantor			Subsidiaries			Eliminations			FCX
Cash flow from operating activities:
Net (loss) income	$	(2,474	)	$	(2,343	)	$	(5,440	)	$	7,851		$	(2,406	)
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities:
Depreciation, depletion and amortization	1			119			835			(16		)	939
Impairment of oil and gas properties	—			1,062			2,042			—			3,104
Net gains on crude oil derivative contracts	—			(52		)	—			—			(52		)
Equity in losses (earnings) of consolidated subsidiaries	1,951			2,359			3,530			(7,841		)	(1		)
Other, net	(701		)	6			(86		)	—			(781		)
Decreases (increases) in working capital and changes in other tax payments	1,171			(1,321		)	58			6			(86		)
Net cash (used in) provided by operating activities	(52		)	(170		)	939			—			717

Cash flow from investing activities:
Capital expenditures	—			(302		)	(1,565		)	—			(1,867		)
Intercompany loans	(905		)	(400		)	—			1,305			—
Dividends from (investments in) consolidated subsidiaries	310			(14		)	32			(328		)	—
Other, net	—			—			127			—			127
Net cash (used in) provided by investing activities	(595		)	(716		)	(1,406		)	977			(1,740		)

Cash flow from financing activities:
Proceeds from debt	1,515			—			758			—			2,273
Repayments of debt	(530		)	—			(272		)	—			(802		)
Intercompany loans	—			903			402			(1,305		)	—
Cash dividends and distributions paid, and contributions received	(327		)	—			(319		)	296			(350		)
Other, net	(11		)	(18		)	(16		)	32			(13		)
Net cash provided by (used in) financing activities	647			885			553			(977		)	1,108

Net (decrease) increase in cash and cash equivalents	—			(1		)	86			—			85
Cash and cash equivalents at beginning of period	—			1			463			—			464
Cash and cash equivalents at end of period	$	—		$	—		$	549		$	—		$	549

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

Three Months Ended March 31, 2014



	FCX			FM O&G LLC			Non-guarantor							Consolidated
	Issuer			Guarantor			Subsidiaries				Eliminations			FCX
Cash flow from operating activities:
Net income (loss)	$	510		$	164		$	870			$	(918	)	$	626
Adjustments to reconcile net income (loss) to net cash (used in) provided by operating activities:
Depreciation, depletion and amortization	1			285			682				(2		)	966
Net losses on crude oil and natural gas derivative contracts	—			50			—				—			50
Equity in (earnings) losses of consolidated subsidiaries	(604		)	(130		)	(185		)		919			—
Other, net	134			(9		)	(140		)		(13		)	(28		)
(Increases) decreases in working capital and changes in other tax payments	(234		)	339			(518		)		—			(413		)
Net cash (used in) provided by operating activities	(193		)	699			709				(14		)	1,201

Cash flow from investing activities:
Capital expenditures	—			(335		)	(1,277		)		—			(1,612		)
Intercompany loans	190			(43		)	—			—	(147		)	—
Dividends from (investments in) consolidated subsidiaries	212			(96		)	(430		)		314			—
Other, net	—			4			3				—			7
Net cash provided by (used in) investing activities	402			(470		)	(1,704		)		167			(1,605		)

Cash flow from financing activities:
Proceeds from debt	895			—			254				—			1,149
Repayments of debt	(780		)	—			(207		)		—			(987		)
Intercompany loans	—			(213		)	66				147			—
Cash dividends and distributions paid, and contributions received	(326		)	(14		)	237				(300		)	(403		)
Other, net	2			—			—				—			2
Net cash (used in) provided by financing activities	(209		)	(227		)	350				(153		)	(239		)

Net increase (decrease) in cash and cash equivalents	—			2			(645		)		—			(643		)
Cash and cash equivalents at beginning of period	—			—			1,985				—			1,985
Cash and cash equivalents at end of period	$	—		$	2		$	1,340			$	—		$	1,342