Freeport-McMoRan Copper & Gold Inc Increasing Gulf of Mexico Exposure
Considering the desire to reduce debt, it wasn't a huge surprise that Freeport-McMoRan Copper & Gold (NYSE: FCX ) agreed to sell its valued Eagle Ford Shale assets. The slight surprise was the willingness for the company to continue spending large sums in the Gulf of Mexico.
With the energy market going shale-crazy, the shift from hot shale assets to out of favor deepwater assets is probably a brilliant move. Not to mention, the assets appear to have similar reserve potential, yet Freeport will net approximately $1.3 billion after tax to repay a portion of its gigantic $20 billion debt load.
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