GUARANTOR FINANCIAL STATEMENTS

All of the senior notes issued by FCX 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 FM O&G LLC, including indebtedness under FCX’s 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. The indentures provide that 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 revolving credit facility or any other senior debt or, in each case, any refinancing thereof.

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, 2018, and December 31, 2017, and the related condensed consolidating statements of comprehensive income (loss), and the condensed consolidating statements of cash flows for the three months ended March 31, 2018 and 2017 (in millions), which should be read in conjunction with FCX’s notes to the consolidated financial statements.

CONDENSED CONSOLIDATING BALANCE SHEET

March 31, 2018



	FCX			FM O&G LLC			Non-guarantor					Consolidated
	Issuer			Guarantor			Subsidiaries		Eliminations			FCX
ASSETS
Current assets	$	544		$	714		$	10,012	$	(1,164	)	$	10,106
Property, plant, equipment and mine development costs, net	14			7			22,780		(9		)	22,792
Investments in consolidated subsidiaries	18,668			—			—		(18,668		)	—
Other assets	561			34			3,255		(111		)	3,739
Total assets	$	19,787		$	755		$	36,047	$	(19,952	)	$	36,637

LIABILITIES AND EQUITY
Current liabilities	$	621		$	117		$	4,831	$	(1,225	)	$	4,344
Long-term debt, less current portion	9,594			6,574			5,013		(10,058		)	11,123
Deferred income taxes	745		^a	—			2,897		—			3,642
Environmental and asset retirement obligations, less current portion	—			203			3,427		—			3,630
Investments in consolidated subsidiaries	—			860			10,338		(11,198		)	—
Other liabilities	171			3,339			1,948		(3,486		)	1,972
Total liabilities	11,131			11,093			28,454		(25,967		)	24,711

Equity:
Stockholders’ equity	8,656			(10,338		)	4,901		5,437			8,656
Noncontrolling interests	—			—			2,692		578			3,270
Total equity	8,656			(10,338		)	7,593		6,015			11,926
Total liabilities and equity	$	19,787		$	755		$	36,047	$	(19,952	)	$	36,637


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

CONDENSED CONSOLIDATING BALANCE SHEET

December 31, 2017



	FCX			FM O&G LLC			Non-guarantor					Consolidated
	Issuer			Guarantor			Subsidiaries		Eliminations			FCX
ASSETS
Current assets	$	75		$	671		$	10,823	$	(790	)	$	10,779
Property, plant, equipment and mine development costs, net	14			11			22,829		(10		)	22,844
Investments in consolidated subsidiaries	19,570			—			—		(19,570		)	—
Other assets	943			48			3,179		(491		)	3,679
Total assets	$	20,602		$	730		$	36,831	$	(20,861	)	$	37,302

LIABILITIES AND EQUITY
Current liabilities	$	1,683		$	220		$	4,073	$	(938	)	$	5,038
Long-term debt, less current portion	10,021			6,512			5,440		(10,270		)	11,703
Deferred income taxes	748		^a	—			2,874		—			3,622
Environmental and asset retirement obligations, less current portion	—			201			3,430		—			3,631
Investments in consolidated subsidiary	—			853			10,397		(11,250		)	—
Other liabilities	173			3,340			1,987		(3,488		)	2,012
Total liabilities	12,625			11,126			28,201		(25,946		)	26,006

Equity:
Stockholders’ equity	7,977			(10,396		)	5,916		4,480			7,977
Noncontrolling interests	—			—			2,714		605			3,319
Total equity	7,977			(10,396		)	8,630		5,085			11,296
Total liabilities and equity	$	20,602		$	730		$	36,831	$	(20,861	)	$	37,302


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

CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (LOSS)



Three Months Ended March 31, 2018
	FCX			FM O&G LLC			Non-guarantor						Consolidated
	Issuer			Guarantor			Subsidiaries			Eliminations			FCX
Revenues	$	—		$	15		$	4,853		$	—		$	4,868
Total costs and expenses	9			8			3,393			(1		)	3,409
Operating (loss) income	(9		)	7			1,460			1			1,459
Interest expense, net	(104		)	(64		)	(85		)	102			(151		)
Other income (expense), net	101			—			29			(102		)	28
(Loss) income before income taxes and equity in affiliated companies’ net earnings (losses)	(12		)	(57		)	1,404			1			1,336
(Provision for) benefit from income taxes	(83		)	12			(435		)	—			(506		)
Equity in affiliated companies’ net earnings (losses)	787			(6		)	(34		)	(749		)	(2		)
Net income (loss) from continuing operations	692			(51		)	935			(748		)	828
Net loss from discontinued operations	—			—			(11		)	—			(11		)
Net income (loss)	692			(51		)	924			(748		)	817
Net income attributable to noncontrolling interests:
Continuing operations	—			—			(71		)	(54		)	(125		)
Net income (loss) attributable to common stockholders	$	692		$	(51	)	$	853		$	(802	)	$	692

Other comprehensive income (loss)	12			—			12			(12		)	12
Total comprehensive income (loss)	$	704		$	(51	)	$	865		$	(814	)	$	704



Three Months Ended March 31, 2017
	FCX			FM O&G LLC			Non-guarantor						Consolidated
	Issuer			Guarantor			Subsidiaries			Eliminations			FCX
Revenues	$	—		$	13		$	3,328		$	—		$	3,341
Total costs and expenses	8			50			2,684			2			2,744
Operating (loss) income	(8		)	(37		)	644			(2		)	597
Interest expense, net	(122		)	(53		)	(71		)	79			(167		)
Other income (expense), net	78			—			9			(79		)	8
(Loss) income before income taxes and equity in affiliated companies’ net earnings (losses)	(52		)	(90		)	582			(2		)	438
(Provision for) benefit from income taxes	(60		)	31			(146		)	1			(174		)
Equity in affiliated companies’ net earnings (losses)	340			20			(36		)	(320		)	4
Net income (loss) from continuing operations	228			(39		)	400			(321		)	268
Net income from discontinued operations	—			—			38			—			38
Net income (loss)	228			(39		)	438			(321		)	306
Net income attributable to noncontrolling interests:
Continuing operations	—			—			(65		)	(10		)	(75		)
Discontinued operations	—			—			(3		)	—			(3		)
Net income (loss) attributable to common stockholders	$	228		$	(39	)	$	370		$	(331	)	$	228

Other comprehensive income (loss)	11			—			11			(11		)	11
Total comprehensive income (loss)	$	239		$	(39	)	$	381		$	(342	)	$	239

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS



Three Months Ended March 31, 2018
	FCX			FM O&G LLC			Non-guarantor						Consolidated
	Issuer			Guarantor			Subsidiaries			Eliminations			FCX
Net cash (used in) provided by operating activities	$	(156	)	$	(70	)	$	1,595		$	—		$	1,369

Cash flow from investing activities:
Capital expenditures	—			—			(402		)	—			(402		)
Intercompany loans	(184		)	—			—			184			—
Dividends from (investments in) consolidated subsidiaries	1,746			—			23			(1,769		)	—
Asset sales and other, net	—			—			(90		)	—			(90		)
Net cash provided by (used in) investing activities	1,562			—			(469		)	(1,585		)	(492		)

Cash flow from financing activities:
Proceeds from debt	—			—			122			—			122
Repayments of debt	(1,409		)	—			(224		)	—			(1,633		)
Intercompany loans	—			62			122			(184		)	—
Cash dividends paid and contributions received, net	—			—			(1,835		)	1,755			(80		)
Other, net	3			—			(14		)	14			3
Net cash (used in) provided by financing activities	(1,406		)	62			(1,829		)	1,585			(1,588		)

Net decrease in cash, cash equivalents, restricted cash and restricted cash equivalents	—			(8		)	(703		)	—			(711		)
Decrease in cash and cash equivalents in assets held for sale	—			—			32			—			32
Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of year	—			8			4,623			—			4,631
Cash, cash equivalents, restricted cash and restricted cash equivalents at end of period	$	—		$	—		$	3,952		$	—		$	3,952



Three Months Ended March 31, 2017
	FCX			FM O&G LLC			Non-guarantor						Consolidated
	Issuer			Guarantor			Subsidiaries			Eliminations			FCX
Net cash (used in) provided by operating activities	$	(112	)	$	(200	)	$	1,104		$	—		$	792

Cash flow from investing activities:
Capital expenditures	—			(10		)	(334		)	—			(344		)
Intercompany loans	(277		)	—			—			277			—
Dividends from (investments in) consolidated subsidiaries	894			—			26			(920		)	—
Asset sales and other, net	—			(23		)	6			—			(17		)
Net cash provided by (used in) investing activities	617			(33		)	(302		)	(643		)	(361		)

Cash flow from financing activities:
Proceeds from debt	—			—			157			—			157
Repayments of debt	(499		)	—			(316		)	—			(815		)
Intercompany loans	—			236			41			(277		)	—
Cash dividends paid and contributions received, net	(1		)	—			(895		)	880			(16		)
Other, net	(5		)	(6		)	(34		)	40			(5		)
Net cash (used in) provided by financing activities	(505		)	230			(1,047		)	643			(679		)

Net decrease in cash, cash equivalents, restricted cash and restricted cash equivalents	—			(3		)	(245		)	—			(248		)
Decrease in cash and cash equivalents in assets held for sale	—			—			8			—			8
Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of year	—			11			4,392			—			4,403
Cash, cash equivalents, restricted cash and restricted cash equivalents at end of period	$	—		$	8		$	4,155		$	—		$	4,163