GUARANTOR FINANCIAL STATEMENTS

As further discussed in Note 6, 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 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, 2014, and December 31, 2013, and the related condensed consolidating statements of comprehensive income and cash flows for the three months ended March 31, 2014, which should be read in conjunction with FCX's notes to the consolidated financial statements (in millions):

CONDENSED CONSOLIDATING BALANCE SHEET

March 31, 2014



	FCX			FM O&G LLC		Non-guarantor					Consolidated
	Issuer			Guarantor		Subsidiaries		Eliminations			FCX
ASSETS
Current assets:
Cash and cash equivalents	$	—		$	2	$	1,340	$	—		$	1,342
Accounts receivable	22			324		2,088		(57		)	2,377
Other current assets	102			107		5,502		—			5,711
Total current assets	124			433		8,930		(57		)	9,430
Property, plant, equipment and mining development costs, net	26			45		24,658		—			24,729
Oil and gas properties, net - full cost method:
Subject to amortization, less accumulated amortization	—			6,331		6,223		8			12,562
Not subject to amortization	—			2,524		8,251		—			10,775
Investments in consolidated subsidiaries	31,628			9,939		12,680		(54,247		)	—
Goodwill	—			437		1,479		—			1,916
Other assets	7,478			4,687		4,293		(12,027		)	4,431
Total assets	$	39,256		$	24,396	$	66,514	$	(66,323	)	$	63,843

LIABILITIES AND EQUITY
Current liabilities	$	1,244		$	879	$	3,317	$	(57	)	$	5,383
Long-term debt, less current portion	12,585			6,967		8,809		(8,602		)	19,759
Deferred income taxes	4,246		^a	—		3,258		—			7,504
Environmental and asset retirement obligations, less current portion	—			305		2,971		—			3,276
Other liabilities	31			3,409		1,680		(3,425		)	1,695
Total liabilities	18,106			11,560		20,035		(12,084		)	37,617

Redeemable noncontrolling interest	—			—		743		—			743

Equity:
Stockholders' equity	21,150			12,836		41,864		(54,700		)	21,150
Noncontrolling interests	—			—		3,872		461			4,333
Total equity	21,150			12,836		45,736		(54,239		)	25,483
Total liabilities and equity	$	39,256		$	24,396	$	66,514	$	(66,323	)	$	63,843


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

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
Other current assets	114			38		5,273		—			5,425
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, less accumulated 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.

CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME

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
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 FCX common stockholders	$	510		$	164		$	759		$	(923	)	$	510

Other comprehensive income	—			—			3			—			3
Total comprehensive income (loss)	$	510		$	164		$	762		$	(923	)	$	513

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, excluding amounts from acquisition	(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		)	—
Investment in consolidated subsidiary	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	(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