Freeport-McMoRan Copper & Gold Inc. (FCX): 1 Company Left Exhausted After a Major Shopping Spree

In addition to selling some of its shallower Gulf of Mexico assets, Freeport is looking at other recently acquired oil and gas assets with which to part ways. The company’s Madden natural gas assets in Wyoming, for example, could be one of the assets on the chopping block. Before Freeport bought Plains Exploration & Production, the plan had been to unload this non-operated natural gas asset. Freeport, which now holds the 14% interest in the gas field and an associated gas plant, could follow through on Plains’ original plans and sell these assets. Madden is just one of Freeport’s many options.

While Freeport has exhausted its financial resources at the moment, there is no rest for the weary — the company now needs to focus on shedding assets to go along with its cost reductions. With $1.9 billion in cost reductions already announced, Freeport has a nice head start. However, if commodity prices take a dive, the company might have to be even more aggressive in its approach. In the meantime, it’s going to take advantage of high oil prices to sell some oil assets in the Gulf as well as milk the Eagle Ford for its oily cash flow.

The article 1 Company Left Exhausted After a Major Shopping Spree originally appeared on Fool.com and is written by Matt DiLallo.

Fool contributor Matt DiLallo has no position in any stocks mentioned. The Motley Fool owns shares of Apache and Freeport-McMoRan Copper & Gold.

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