Freeport-McMoRan (FCX) 8-K/A Unaudited Pro Forma Condensed Combined Statement of Income

Exhibit 99.1

Freeport-McMoRan Inc.

UNAUDITED PRO FORMA CONDENSED COMBINED STATEMENT OF INCOME

FOR THE YEAR ENDED DECEMBER 31, 2013

(IN MILLIONS, EXCEPT PER SHARE AMOUNTS)

	Historical(1)
				PXP						Adjustments
	FCX			First Quarter			April 1 to May 31			Conforming(2)			Pro Forma(3)				Combined
Revenues	$	20,921		$	1,232		$	810		$	(25	)	$	–			$	22,938
Cost of sales:
Production and delivery		11,840			248			158			26			(18	)	A		12,254
Depreciation, depletion and amortization		2,797			541			349			(29	)		(38	)	B		3,620
Total cost of sales		14,637			789			507			(3	)		(56	)			15,874
Other operating costs and expenses		933			46			281			(9	)		(472	)	C		779
Total costs and expenses		15,570			835			788			(12	)		(528	)			16,653
Operating income (loss)		5,351			397			22			(13	)		528				6,285
Interest expense, net		(518	)		(141	)		(91	)		(12	)		13		D		(703	)
														46		E
Losses on early extinguishment of debt		(35	)		(18	)		(119	)		–			182		F		10
Gain on investment in McMoRan Exploration Co.		128			–			–			–			–				128
Other (expense) income, net		(13	)		(186	)		191			25			(30	)	G		(13	)
Income before income taxes and equity in affiliated companies’ net earnings		4,913			52			3			–			739				5,707
(Provision for) benefit from income taxes		(1,475	)		(20	)		4			–			(451	)	H		(1,942	)
Equity in affiliated companies’ net earnings		3			–			–			–			12		G		15
Net income		3,441			32			7			–			300				3,780
Net income and preferred dividends attributable to noncontrolling interests		(783	)		(9	)		(9	)		–			–				(801	)
Net income attributable to common stockholders	$	2,658		$	23		$	(2	)	$	–		$	300			$	2,979
Net income per share attributable to common stockholders:
Basic	$	2.65															$	2.86
Diluted	$	2.64															$	2.85
Weighted-average common shares outstanding:
Basic		1,002																1,041
Diluted		1,006																1,045

COMBINATION OF FCX AND PXP

NOTES TO THE UNAUDITED PRO FORMA CONDENSED COMBINED STATEMENT OF INCOME

(1) Historical Financial Information

FCX’s historical financial information has been derived from its annual report on Form 10-K for the year ended December 31, 2013. PXP’s historical information has been derived from its quarterly report on Form 10-Q for the period ended March 31, 2013 (first quarter), and from its books and records for the April 1, 2013, to May 31, 2013, period.

(2) Conforming Adjustments

Certain of PXP’s historical balances have been adjusted to conform to FCX’s presentation, including the reclassification of PXP’s gains and losses on mark-to-market oil and gas derivative contracts to revenues.

(3) Pro Forma Adjustments

The following pro forma adjustments for the pro forma condensed combined statement of income for the year ended December 31, 2013, are primarily based on the estimated fair value adjustments made to the assets acquired and liabilities assumed.

A. Adjustments to accretion on assumed asset retirement obligations.

B. Adjustments to depreciation, depletion and amortization expense primarily reflect updated reserve estimates and depletion rates for oil and gas properties subject to depletion. The pro forma depletion rate was $32.32 per barrel of oil equivalents for the year.

C. Adjustment to reverse transaction costs related to the merger that were recorded in FCX’s and PXP’s historical results.

D. Net adjustments to interest expense primarily relate to interest associated with the $6.5 billion of senior notes and the adjustment to fair value of the assumed PXP debt obligations.

E. Adjustments reflect pro forma capitalized interest related to the interest adjustments described above in Note D, and adjustments to oil and gas properties not subject to depletion.

F. Adjustment to reverse losses on early extinguishment of debt in PXP’s historical information and to reverse FCX’s losses on early extinguishment of debt associated with the termination of the bridge loan facilities for the PXP acquisition.

G. PXP owned 51 million shares of MMR common stock and historically elected to measure this equity investment at fair value, with changes in fair value recognized as a component of other (expense) income, net, in the statement of income. For purposes of the Pro Forma Condensed Combined Statement of Income, FCX has recorded the equity investment in MMR under the equity method of accounting. Accordingly, adjustments were made to (i) reverse the income statement effects recorded by PXP under the fair value option and (ii) to record the equity in MMR losses under the equity method of accounting.

H. The pro forma adjustment for income taxes reflects the incremental income taxes necessary to achieve an effective income tax rate of 34 percent on a combined basis.