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Share Name | Share Symbol | Market | Type |
---|---|---|---|
Mcmoran Exploration Company | NYSE:MMR | NYSE | Ordinary Share |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 16.75 | 0.00 | 01:00:00 |
UNITED STATES
|
|||
SECURITIES AND EXCHANGE COMMISSION
|
|||
Washington, D.C. 20549
|
|||
FORM 10-Q
|
|||
(Mark One)
|
|||
[X]
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
|
||
SECURITIES EXCHANGE ACT OF 1934
|
|||
For the quarterly period ended September 30, 2011
|
|||
OR
|
|||
[ ]
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
|
||
SECURITIES EXCHANGE ACT OF 1934
|
|||
For the transition period from
|
to
|
||
Commission File Number: 001-07791
|
|||
|
|||
McMoRan Exploration Co.
|
|||
(Exact name of registrant as specified in its charter)
|
Delaware
|
72-1424200
|
|
(State or other jurisdiction of
incorporation or organization)
|
(IRS Employer Identification No.)
|
|
1615 Poydras Street
|
||
New Orleans, Louisiana
|
70112
|
|
(Address of principal executive offices)
|
(Zip Code)
|
|
(504) 582-4000
|
||
(Registrant's telephone number, including area code)
|
||
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
S
Yes
o
No
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).
S
Yes
o
No
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See definition of “large accelerated filer,” “ accelerated filer,” and “smaller reporting company” in Rule 12b-2 of the Exchange Act:
|
||
Large accelerated filer
S
|
Accelerated filer
o
|
|
Non-accelerated filer
o
(Do not check if a smaller reporting company)
|
Smaller reporting company
o
|
|
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act.
o
Yes
S
No
On October 31, 2011, there were issued and outstanding 161,326,556 shares of the registrant’s common stock, par value $0.01 per share.
|
|
McMoRan EXPLORATION CO.
|
September 30,
|
December 31,
|
||||||
2011
|
2010
|
||||||
(In Thousands)
|
|||||||
ASSETS
|
|||||||
Current assets:
|
|||||||
Cash and cash equivalents
|
$
|
642,273
|
$
|
905,684
|
|||
Accounts receivable
|
109,428
|
86,516
|
|||||
Inventories
|
33,067
|
38,461
|
|||||
Prepaid expenses
|
12,835
|
15,478
|
|||||
Current assets from discontinued operations, including restricted cash
|
|||||||
of $473
|
473
|
702
|
|||||
Total current assets
|
798,076
|
1,046,841
|
|||||
Property, plant and equipment, net
|
2,021,198
|
1,785,607
|
|||||
Restricted cash
|
60,252
|
53,975
|
|||||
Deferred financing costs and other assets
|
8,863
|
9,952
|
|||||
Long-term assets from discontinued operations
|
2,989
|
2,989
|
|||||
Total assets
|
$
|
2,891,378
|
$
|
2,899,364
|
|||
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
|||||||
Current liabilities:
|
|||||||
Accounts payable
|
$
|
116,397
|
$
|
102,658
|
|||
Accrued liabilities
|
162,897
|
99,363
|
|||||
Accrued interest and dividends payable
|
22,448
|
6,768
|
|||||
Current portion of accrued oil and gas reclamation costs
|
103,949
|
120,970
|
|||||
5¼% convertible senior notes
|
6,543
|
74,720
|
|||||
Current portion of accrued sulphur reclamation costs (discontinued operations)
|
5,577
|
11,772
|
|||||
Current liabilities from discontinued operations
|
1,545
|
1,993
|
|||||
Total current liabilities
|
419,356
|
418,244
|
|||||
5¼% convertible senior notes
|
68,177
|
-
|
|||||
11.875% senior notes
|
300,000
|
300,000
|
|||||
4% convertible senior notes
|
186,836
|
185,256
|
|||||
Accrued oil and gas reclamation costs
|
193,384
|
237,654
|
|||||
Other long-term liabilities
|
16,060
|
16,596
|
|||||
Accrued sulphur reclamation costs (discontinued operations)
|
14,282
|
13,494
|
|||||
Other long-term liabilities from discontinued operations
|
4,325
|
3,783
|
|||||
Total liabilities
|
1,202,420
|
1,175,027
|
|||||
Stockholders' equity
|
1,688,958
|
1,724,337
|
|||||
Total liabilities and stockholders' equity
|
$
|
2,891,378
|
$
|
2,899,364
|
|||
Three Months Ended
|
Nine Months Ended
|
|||||||||||
September 30,
|
September 30,
|
|||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||
(In Thousands, Except Per Share Amounts)
|
||||||||||||
Revenues:
|
||||||||||||
Oil and natural gas
|
$
|
134,548
|
$
|
90,778
|
$
|
423,729
|
$
|
323,727
|
||||
Service
|
3,635
|
4,062
|
9,766
|
11,642
|
||||||||
Total revenues
|
138,183
|
94,840
|
433,495
|
335,369
|
||||||||
Costs and expenses:
|
||||||||||||
Production and delivery costs
|
61,182
|
47,071
|
161,050
|
136,295
|
||||||||
Depletion, depreciation and amortization expense
|
66,730
|
48,588
|
248,738
|
214,720
|
||||||||
Exploration expenses
|
18,158
|
5,256
|
78,832
|
28,099
|
||||||||
Gain on oil and gas derivative contracts
|
-
|
(942
|
)
|
-
|
(4,210
|
)
|
||||||
General and administrative expenses
|
11,877
|
11,148
|
39,052
|
35,267
|
||||||||
Main Pass Energy Hub
™
costs
|
49
|
230
|
562
|
805
|
||||||||
Insurance recoveries
|
(22,649
|
)
|
(5,584
|
)
|
(52,018
|
)
|
(14,755
|
)
|
||||
Gain on sale of oil and gas property
|
-
|
-
|
(900
|
)
|
(3,455
|
)
|
||||||
Total costs and expenses
|
135,347
|
105,767
|
475,316
|
392,766
|
||||||||
Operating income (loss)
|
2,836
|
(10,927
|
)
|
(41,821
|
)
|
(57,397
|
)
|
|||||
Interest expense, net
|
(629
|
)
|
(8,690
|
)
|
(8,782
|
)
|
(29,096
|
)
|
||||
Other income, net
|
204
|
72
|
614
|
177
|
||||||||
Income (loss) from continuing operations before income taxes
|
2,411
|
(19,545
|
)
|
(49,989
|
)
|
(86,316
|
)
|
|||||
Income tax expense
|
-
|
-
|
-
|
-
|
||||||||
Income (loss) from continuing operations
|
2,411
|
(19,545
|
)
|
(49,989
|
)
|
(86,316
|
)
|
|||||
Loss from discontinued operations
|
(1,489
|
)
|
(1,184
|
)
|
(4,722
|
)
|
(4,260
|
)
|
||||
Net income (loss)
|
922
|
(20,729
|
)
|
(54,711
|
)
|
(90,576
|
)
|
|||||
Preferred dividends and inducement payments for early
|
||||||||||||
conversion of convertible preferred stock
|
(10,342
|
)
|
(4,524
|
)
|
(32,457
|
)
|
(22,583
|
)
|
||||
Net loss applicable to common stock
|
$
|
(9,420
|
)
|
$
|
(25,253
|
)
|
$
|
(87,168
|
)
|
$
|
(113,159
|
)
|
Basic and diluted net loss per share of common
|
||||||||||||
stock:
|
||||||||||||
Continuing operations
|
$(0.05
|
)
|
$(0.25
|
)
|
$(0.52
|
)
|
$(1.17
|
)
|
||||
Discontinued operations
|
(0.01
|
)
|
(0.01
|
)
|
(0.03
|
)
|
(0.05
|
)
|
||||
Net loss per share of common stock
|
$(0.06
|
)
|
$(0.26
|
)
|
$(0.55
|
)
|
$(1.22
|
)
|
||||
Average common shares outstanding:
|
||||||||||||
Basic and diluted
|
159,195
|
95,469
|
158,505
|
92,789
|
Nine Months Ended
|
||||||
September 30,
|
||||||
2011
|
2010
|
|||||
(In Thousands)
|
||||||
Cash flow from operating activities:
|
||||||
Net loss
|
$
|
(54,711
|
)
|
$
|
(90,576
|
)
|
Adjustments to reconcile net loss to net cash provided by operating activities:
|
||||||
Loss from discontinued operations
|
4,722
|
4,260
|
||||
Depletion, depreciation and amortization expense
|
248,738
|
214,720
|
||||
Exploration drilling and related expenditures, net
|
42,046
|
7,522
|
||||
Compensation expense associated with stock-based awards
|
15,618
|
15,701
|
||||
Amortization of deferred financing costs
|
4,212
|
2,796
|
||||
Change in fair value of oil and gas derivative contracts
|
-
|
4,065
|
||||
Reclamation expenditures, net of prepayments by third parties
|
(93,411
|
)
|
(70,786
|
)
|
||
Increase in restricted cash
|
(3,760
|
)
|
(11,041
|
)
|
||
Gain on sale of oil and gas property
|
(900
|
)
|
(3,455
|
)
|
||
Other
|
(50
|
)
|
295
|
|||
(Increase) decrease in working capital:
|
||||||
Accounts receivable
|
(47,648
|
)
|
16,340
|
|||
Accounts payable and accrued liabilities
|
68,058
|
30,929
|
||||
Prepaid expenses and inventories
|
7,056
|
(459
|
)
|
|||
Net cash provided by continuing operations
|
189,970
|
120,311
|
||||
Net cash used in discontinued operations
|
(11,457
|
)
|
(606
|
)
|
||
Net cash provided by operating activities
|
178,513
|
119,705
|
||||
Cash flow from investing activities:
|
||||||
Exploration, development and other capital expenditures
|
(403,889
|
)
|
(160,259
|
)
|
||
Acquisition of oil and gas properties
|
(10,000
|
)
|
-
|
|||
Proceeds from sale of oil and gas properties
|
900
|
2,920
|
||||
Net cash used in continuing operations
|
(412,989
|
)
|
(157,339
|
)
|
||
Net cash from discontinued operations
|
-
|
-
|
||||
Net cash used in investing activities
|
(412,989
|
)
|
(157,339
|
)
|
||
Cash flow from financing activities
:
|
||||||
Dividends paid and inducement payments on early conversion of convertible preferred stock
|
(27,609
|
)
|
(23,136
|
)
|
||
Credit facility refinancing fees
|
(1,712
|
)
|
-
|
|||
Debt and equity issuance costs
|
(543
|
)
|
-
|
|||
Proceeds from exercise of stock options and other
|
929
|
(455
|
)
|
|||
Net cash used in continuing operations
|
(28,935
|
)
|
(23,591
|
)
|
||
Net cash from discontinued operations
|
-
|
-
|
||||
Net cash used in financing activities
|
(28,935
|
)
|
(23,591
|
)
|
||
Net decrease in cash and cash equivalents
|
(263,411
|
)
|
(61,225
|
)
|
||
Cash and cash equivalents at beginning of year
|
905,684
|
241,418
|
||||
Cash and cash equivalents at end of period
|
$
|
642,273
|
$
|
180,193
|
||
Supplemental non-cash investing & financing activities
:
|
||||||
Issuance of 2.8 million shares of common stock and other non-cash purchase price consideration related to property acquisition
|
$
|
39,198
|
$
|
-
|
Preferred stock
|
Common stock
|
Capital in excess of par value
|
Accumulated deficit
|
Accumulated
other comprehensive loss
|
Common stock held in treasury
|
Total Stockholders’ Equity
|
|||||||||||||||
Balance as of December 31, 2010
|
$
|
722,063
|
$
|
1,598
|
$
|
2,156,430
|
$
|
(1,107,481
|
)
|
$
|
(97
|
)
|
$
|
(48,176
|
)
|
$
|
1,724,337
|
||||
Common stock issuance
|
-
|
28
|
35,010
|
-
|
-
|
-
|
35,038
|
||||||||||||||
Stock-based compensation
|
|||||||||||||||||||||
expense
|
-
|
-
|
15,618
|
-
|
-
|
-
|
15,618
|
||||||||||||||
Preferred stock dividends and
|
|||||||||||||||||||||
conversion inducement payments
|
-
|
-
|
(32,457
|
)
|
-
|
-
|
-
|
(32,457
|
)
|
||||||||||||
Preferred stock conversions
|
(8,064
|
)
|
11
|
8,053
|
-
|
-
|
-
|
-
|
|||||||||||||
Preferred stock offering cost adjustments
|
-
|
-
|
275
|
-
|
-
|
-
|
275
|
||||||||||||||
Stock option exercises and other
|
-
|
1
|
927
|
-
|
-
|
(40
|
)
|
888
|
|||||||||||||
Net loss
|
-
|
-
|
-
|
(54,711
|
)
|
-
|
-
|
(54,711
|
)
|
||||||||||||
Other comprehensive loss
|
-
|
-
|
-
|
-
|
(30
|
)
|
-
|
(30
|
)
|
||||||||||||
Balance as of September 30, 2011
|
$
|
713,999
|
$
|
1,638
|
$
|
2,183,856
|
$
|
(1,162,192
|
)
|
$
|
(127
|
)
|
$
|
(48,216
|
)
|
$
|
1,688,958
|
Third Quarter
|
Nine Months
|
|||||
2010
|
2010
|
|||||
Revenues
|
$
|
118,594
|
$
|
428,535
|
||
Operating loss
|
$
|
(1,857
|
)
|
$
|
(42,388
|
)
|
Net loss to common shareholders
|
$
|
(28,835
|
)
|
$
|
(136,105
|
)
|
Average basic and diluted shares outstanding
|
146,469
|
143,789
|
||||
Basic and diluted net loss per share of common stock
|
$
|
(0.20
|
)
|
$
|
(0.95
|
)
|
September 30,
|
December 31,
|
|||||
2011
|
2010
|
|||||
Senior secured revolving credit facility
|
$
|
-
|
$
|
-
|
||
11.875% senior notes
|
300,000
|
300,000
|
||||
5¼% convertible senior notes
|
74,720
|
74,720
|
||||
4% convertible senior notes, net of discount of $13,164 and $14,744
|
186,836
|
185,256
|
||||
Total debt
|
561,556
|
559,976
|
||||
Less current maturities
|
(6,543
|
)
|
(74,720
|
)
|
||
Long-term debt
|
$
|
555,013
|
$
|
485,256
|
September 30,
|
December 31,
|
|||||
2011
|
2010
|
|||||
5¼% convertible senior notes
|
$
|
74,720
|
$
|
89,335
|
||
11.875% senior notes
|
312,000
|
331,500
|
||||
4% convertible senior notes
|
193,100
|
255,000
|
Third Quarter
|
Nine Months
|
|||||||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||||||
Stock options
a
|
1,338
|
1,337
|
1,478
|
1,262
|
||||||||||||
Shares issuable upon assumed
|
||||||||||||||||
conversion of:
|
||||||||||||||||
5.75% preferred stock
b
|
43,750
|
-
|
43,750
|
-
|
||||||||||||
8% preferred stock
b
|
2,046
|
3,247
|
2,219
|
4,800
|
||||||||||||
6¾% preferred stock
b
|
-
|
10,681
|
-
|
10,681
|
||||||||||||
5¼% notes
c
|
4,508
|
4,508
|
4,508
|
4,508
|
||||||||||||
4% notes
c
|
12,500
|
-
|
12,500
|
-
|
a.
|
McMoRan uses the treasury stock method to determine total shares related to in-the-money stock options for purposes of its diluted earnings per share calculation. The amounts represent stock options with an exercise price that is less than the average market price for McMoRan’s common stock for the periods presented.
|
b.
|
Amount represents total equivalent common shares assuming conversion of the preferred stock. During the nine months ended September 30, 2011, McMoRan induced conversion of approximately 8,100 shares, of its 8% preferred stock and during the third quarter and nine months ended 2010, McMoRan induced conversion of approximately 7,000 shares and 64,200 shares of its 8% preferred stock, respectively (Note 9). Preferred stock dividends and inducement payments for the early conversion of shares of McMoRan’s 8% preferred stock totaled $10.3 million and $32.4 million for the three and nine-month periods ended September 30, 2011, respectively and $4.5 million and $22.6 million for the three and nine-month periods ended September 30, 2010, respectively. See Note 8 of the 2010 Form 10-K for additional information regarding McMoRan’s 5.75% preferred stock, 8% preferred stock and 6¾% preferred stock.
|
c.
|
Interest expense, net on the 5¼% notes totaled $0.1 million and $0.8 million during the third quarters of 2011 and 2010, respectively and $0.7 million and $2.7 million for the nine-month periods ended September 30, 2011 and 2010, respectively. Interest expense, net on the 4% notes totaled $0.1 million and $1.6 million, respectively, during the third quarter and nine months ended September 30, 2011. Additional information regarding McMoRan’s 4% notes and 5¼% notes is disclosed in Note 6 of the 2010 Form 10-K.
|
Third Quarter
|
Nine Months
|
|||||||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||||||
Outstanding options (in thousands)
|
8,574
|
7,814
|
5,327
|
7,821
|
||||||||||||
Average exercise price
|
$
|
16.88
|
$
|
16.52
|
$
|
17.78
|
$
|
16.52
|
Third Quarter
|
Nine Months
|
||||||||||||
2011
|
2010
|
2011
|
2010
|
||||||||||
Stock options awarded to employees (including directors)
|
$
|
2,542
|
$
|
2,757
|
$
|
14,659
|
$
|
14,704
|
|||||
Stock options awarded to non-employees
|
136
|
180
|
642
|
690
|
|||||||||
Restricted stock units
|
124
|
107
|
317
|
307
|
|||||||||
Total stock-based compensation cost
|
$
|
2,802
|
$
|
3,044
|
$
|
15,618
|
$
|
15,701
|
Third Quarter
|
Nine Months
|
||||||||||||
2011
|
2010
|
2011
|
2010
|
||||||||||
General and administrative expenses
|
$
|
1,588
|
$
|
1,629
|
$
|
8,460
|
$
|
8,153
|
|||||
Exploration expenses
|
1,194
|
1,363
|
7,032
|
7,282
|
|||||||||
Main Pass Energy Hub costs
|
20
|
52
|
125
|
266
|
|||||||||
Total stock-based compensation cost
|
$
|
2,802
|
$
|
3,044
|
$
|
15,618
|
$
|
15,701
|
Third Quarter
|
Nine Months
|
|||||
2010
|
2010
|
|||||
Realized (gain) loss
|
||||||
Gas puts
|
$
|
(989
|
)
|
$
|
(989
|
)
|
Oil puts
|
92
|
92
|
||||
Gas swaps
|
-
|
(8,134
|
)
|
|||
Oil swaps
|
-
|
756
|
||||
Total realized gain
|
(897
|
)
|
(8,275
|
)
|
||
Unrealized (gain) loss
|
||||||
Gas puts
|
583
|
117
|
||||
Oil puts
|
(89
|
)
|
(47
|
)
|
||
Gas swaps
|
(609
|
)
|
5,033
|
|||
Oil swaps
|
70
|
(1,038
|
)
|
|||
Total unrealized (gain) loss
|
(45
|
)
|
4,065
|
|||
Gain on oil and gas derivative contracts
|
$
|
(942
|
)
|
$
|
(4,210
|
)
|
Oil and
|
||||||
Natural Gas
|
Sulphur
|
|||||
Asset retirement obligations at December 31, 2010
|
$
|
358,624
|
$
|
25,266
|
||
Liabilities settled
|
(125,560
|
)
|
(9,863
|
)
|
||
Accretion expense
|
10,726
|
3,456
|
||||
Incurred liabilities
|
-
|
-
|
||||
Revisions for changes in estimates
|
54,596
|
a
|
1,000
|
|||
Other
|
(1,053
|
)
|
-
|
|||
Asset retirement obligations at September 30, 2011
|
$
|
297,333
|
$
|
19,859
|
a.
|
Includes adjustments totaling approximately $18.7 million for the estimated remediation costs of hurricane related damage discovered in the first and second quarters of 2011 during on-going reclamation and abandonment activities at one of McMoRan’s oil and gas properties, the cost of which is reimbursable under McMoRan’s insurance policies when the related reclamation expenditures are incurred.
|
Third Quarter
|
Nine Months
|
|||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||
Service cost
|
$
|
14
|
$
|
17
|
$
|
42
|
$
|
50
|
||||
Interest cost
|
50
|
60
|
151
|
180
|
||||||||
Return on plan assets
|
-
|
-
|
-
|
-
|
||||||||
Amortization of prior service costs
|
||||||||||||
and actuarial gains
|
(10
|
)
|
(9
|
)
|
(30
|
)
|
(27
|
)
|
||||
Net periodic benefit expense
|
$
|
54
|
$
|
68
|
$
|
163
|
$
|
203
|
Third Quarter
|
Nine Months
|
||||||||||||
2011
|
2010
|
2011
|
2010
|
||||||||||
Net loss
|
$
|
(9,420
|
)
|
$
|
(25,253
|
)
|
$
|
(87,168
|
)
|
$
|
(113,159
|
)
|
|
Other comprehensive loss:
|
|||||||||||||
Amortization of previously unrecognized pension
|
|||||||||||||
components, net
|
(10
|
)
|
(9
|
)
|
(30
|
)
|
(27
|
)
|
|||||
Comprehensive loss
|
$
|
(9,430
|
)
|
$
|
(25,262
|
)
|
$
|
(87,198
|
)
|
$
|
(113,186
|
)
|
Freeport
|
Consolidated
|
|||||||||||||||
Parent
|
MOXY
|
Energy
|
Eliminations
|
McMoRan
|
||||||||||||
(In Thousands)
|
||||||||||||||||
ASSETS
|
||||||||||||||||
Current assets:
|
||||||||||||||||
Cash and cash equivalents
|
$
|
4,661
|
$
|
637,028
|
$
|
584
|
$
|
-
|
$
|
642,273
|
||||||
Accounts receivable
|
-
|
109,428
|
-
|
-
|
109,428
|
|||||||||||
Inventories
|
-
|
33,067
|
-
|
-
|
33,067
|
|||||||||||
Prepaid expenses
|
833
|
12,002
|
-
|
-
|
12,835
|
|||||||||||
Current assets from discontinued
|
||||||||||||||||
operations
|
-
|
-
|
473
|
-
|
473
|
|||||||||||
Total current assets
|
5,494
|
791,525
|
1,057
|
-
|
798,076
|
|||||||||||
Property, plant and equipment, net
|
-
|
2,021,167
|
31
|
-
|
2,021,198
|
|||||||||||
Investment in subsidiaries
|
1,550,269
|
-
|
-
|
(1,550,269
|
)
|
-
|
||||||||||
Amounts due from affiliates
|
718,679
|
-
|
(718,679
|
)
|
-
|
|||||||||||
Restricted cash and other
|
||||||||||||||||
assets
|
5,008
|
64,107
|
-
|
-
|
69,115
|
|||||||||||
Long-term assets from discontinued operations
|
-
|
-
|
2,989
|
-
|
2,989
|
|||||||||||
Total assets
|
$
|
2,279,450
|
$
|
2,876,799
|
$
|
4,077
|
$
|
(2,268,948
|
)
|
$
|
2,891,378
|
|||||
LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)
|
||||||||||||||||
Current
liabilities
:
|
||||||||||||||||
Accounts payable
|
$
|
469
|
$
|
115,362
|
$
|
566
|
$
|
-
|
$
|
116,397
|
||||||
Accrued liabilities
|
1,139
|
162,316
|
(558
|
)
|
-
|
162,897
|
||||||||||
Current portion of debt
|
6,543
|
-
|
-
|
-
|
6,543
|
|||||||||||
Current portion of oil and gas
|
||||||||||||||||
accrued reclamation costs
|
-
|
103,949
|
-
|
-
|
103,949
|
|||||||||||
Other current liabilities
|
21,686
|
762
|
-
|
-
|
22,448
|
|||||||||||
Current liabilities from discontinued
|
||||||||||||||||
operations
|
-
|
-
|
7,122
|
-
|
7,122
|
|||||||||||
Total current liabilities
|
29,837
|
382,389
|
7,130
|
-
|
419,356
|
|||||||||||
Long-term debt
|
555,013
|
-
|
-
|
-
|
555,013
|
|||||||||||
Amounts due to affiliates
|
-
|
716,446
|
2,233
|
(718,679
|
)
|
-
|
||||||||||
Accrued oil and gas reclamation costs
|
-
|
193,384
|
-
|
-
|
193,384
|
|||||||||||
Other long-term liabilities
|
5,642
|
8,802
|
1,616
|
-
|
16,060
|
|||||||||||
Long-term liabilities from discontinued
|
||||||||||||||||
operations
|
-
|
-
|
18,607
|
-
|
18,607
|
|||||||||||
Total liabilities
|
590,492
|
1,301,021
|
29,586
|
(718,679
|
)
|
1,202,420
|
||||||||||
Stockholders’ equity (deficit)
|
1,688,958
|
1,575,778
|
(25,509
|
)
|
(1,550,269
|
)
|
1,688,958
|
|||||||||
Total liabilities and stockholders’
|
||||||||||||||||
equity (deficit)
|
$
|
2,279,450
|
$
|
2,876,799
|
$
|
4,077
|
$
|
(2,268,948
|
)
|
$
|
2,891,378
|
Freeport
|
Consolidated
|
|||||||||||||||
Parent
|
MOXY
|
Energy
|
Eliminations
|
McMoRan
|
||||||||||||
(In Thousands)
|
||||||||||||||||
ASSETS
|
||||||||||||||||
Current assets:
|
||||||||||||||||
Cash and cash equivalents
|
$
|
420
|
$
|
904,889
|
$
|
375
|
$
|
-
|
$
|
905,684
|
||||||
Accounts receivable
|
66
|
86,450
|
-
|
-
|
86,516
|
|||||||||||
Inventories
|
-
|
38,461
|
-
|
-
|
38,461
|
|||||||||||
Prepaid expenses
|
657
|
14,821
|
-
|
-
|
15,478
|
|||||||||||
Current assets from discontinued
|
||||||||||||||||
operations
|
-
|
-
|
702
|
-
|
702
|
|||||||||||
Total current assets
|
1,143
|
1,044,621
|
1,077
|
-
|
1,046,841
|
|||||||||||
Property, plant and equipment, net
|
-
|
1,785,576
|
31
|
-
|
1,785,607
|
|||||||||||
Investment in subsidiaries
|
1,525,531
|
-
|
-
|
(1,525,531
|
)
|
-
|
||||||||||
Amounts due from affiliates
|
772,502
|
-
|
(772,502
|
)
|
-
|
|||||||||||
Restricted cash and other
|
||||||||||||||||
assets
|
6,536
|
57,391
|
-
|
-
|
63,927
|
|||||||||||
Long-term assets from discontinued operations
|
-
|
-
|
2,989
|
-
|
2,989
|
|||||||||||
Total assets
|
$
|
2,305,712
|
$
|
2,887,588
|
$
|
4,097
|
$
|
(2,298,033
|
)
|
$
|
2,899,364
|
|||||
LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)
|
||||||||||||||||
Current
liabilities
:
|
||||||||||||||||
Accounts payable
|
$
|
444
|
$
|
100,163
|
$
|
2,051
|
$
|
-
|
$
|
102,658
|
||||||
Accrued liabilities
|
8,899
|
90,784
|
(320
|
)
|
-
|
99,363
|
||||||||||
Current portion of debt
|
74,720
|
-
|
-
|
-
|
74,720
|
|||||||||||
Current portion of oil and gas
|
||||||||||||||||
accrued reclamation costs
|
-
|
120,970
|
-
|
-
|
120,970
|
|||||||||||
Other current liabilities
|
5,950
|
818
|
-
|
-
|
6,768
|
|||||||||||
Current liabilities from discontinued
|
||||||||||||||||
operations
|
-
|
-
|
13,765
|
-
|
13,765
|
|||||||||||
Total current liabilities
|
90,013
|
312,735
|
15,496
|
-
|
418,244
|
|||||||||||
Long-term debt
|
485,256
|
-
|
-
|
-
|
485,256
|
|||||||||||
Amounts due to affiliates
|
-
|
770,373
|
2,129
|
(772,502
|
)
|
-
|
||||||||||
Accrued oil and gas reclamation costs
|
-
|
237,654
|
-
|
-
|
237,654
|
|||||||||||
Other long-term liabilities
|
6,106
|
8,876
|
1,614
|
-
|
16,596
|
|||||||||||
Long-term liabilities from discontinued
|
||||||||||||||||
operations
|
-
|
-
|
17,277
|
-
|
17,277
|
|||||||||||
Total liabilities
|
581,375
|
1,329,638
|
36,516
|
(772,502
|
)
|
1,175,027
|
||||||||||
Stockholders’ equity (deficit)
|
1,724,337
|
1,557,950
|
(32,419
|
)
|
(1,525,531
|
)
|
1,724,337
|
|||||||||
Total liabilities and stockholders’
|
||||||||||||||||
equity (deficit)
|
$
|
2,305,712
|
$
|
2,887,588
|
$
|
4,097
|
$
|
(2,298,033
|
)
|
$
|
2,899,364
|
Freeport
|
Consolidated
|
|||||||||||||||
Parent
|
MOXY
|
Energy
|
Eliminations
|
McMoRan
|
||||||||||||
(In Thousands)
|
||||||||||||||||
Revenues:
|
||||||||||||||||
Oil and natural gas
|
$
|
-
|
$
|
134,548
|
$
|
-
|
$
|
-
|
$
|
134,548
|
||||||
Service
|
-
|
3,635
|
-
|
-
|
3,635
|
|||||||||||
Total revenues
|
-
|
138,183
|
-
|
-
|
138,183
|
|||||||||||
Costs and expenses:
|
||||||||||||||||
Production and delivery costs
|
-
|
61,191
|
(9
|
)
|
-
|
61,182
|
||||||||||
Depletion, depreciation and amortization
|
||||||||||||||||
expense
|
-
|
66,730
|
-
|
-
|
66,730
|
|||||||||||
Exploration expenses
|
-
|
18,158
|
-
|
-
|
18,158
|
|||||||||||
General and administrative expenses
|
2,228
|
9,649
|
-
|
-
|
11,877
|
|||||||||||
Main Pass Energy Hub
TM
costs
|
-
|
-
|
49
|
-
|
49
|
|||||||||||
Insurance recoveries
|
-
|
(22,649
|
)
|
-
|
-
|
(22,649
|
)
|
|||||||||
Total costs and expenses
|
2,228
|
133,079
|
40
|
-
|
135,347
|
|||||||||||
Operating income (loss)
|
(2,228
|
)
|
5,104
|
(40
|
)
|
-
|
2,836
|
|||||||||
Interest expense, net
|
(629
|
)
|
-
|
-
|
-
|
(629
|
)
|
|||||||||
Equity in losses of consolidated
|
||||||||||||||||
subsidiaries
|
3,785
|
-
|
-
|
(3,785
|
)
|
-
|
||||||||||
Other income (expense), net
|
(6
|
)
|
210
|
-
|
-
|
204
|
||||||||||
Income (loss) from continuing operations before income taxes
|
922
|
5,314
|
(40
|
)
|
(3,785
|
)
|
2,411
|
|||||||||
Income tax expense
|
-
|
-
|
-
|
-
|
-
|
|||||||||||
Income (loss) from continuing operations
|
922
|
5,314
|
(40
|
)
|
(3,785
|
)
|
2,411
|
|||||||||
Loss from discontinued operations
|
-
|
-
|
(1,489
|
)
|
-
|
(1,489
|
)
|
|||||||||
Net income (loss)
|
922
|
5,314
|
(1,529
|
)
|
(3,785
|
)
|
922
|
|||||||||
Preferred dividends and other related
|
||||||||||||||||
preferred stock costs
|
(10,342
|
)
|
-
|
-
|
-
|
(10,342
|
)
|
|||||||||
Net income (loss) applicable to common stock
|
$
|
(9,420
|
)
|
$
|
5,314
|
$
|
(1,529
|
)
|
$
|
(3,785
|
)
|
$
|
(9,420
|
)
|
||
Freeport
|
Consolidated
|
|||||||||||||||
Parent
|
MOXY
|
Energy
|
Eliminations
|
McMoRan
|
||||||||||||
(In Thousands)
|
||||||||||||||||
Revenues:
|
||||||||||||||||
Oil and natural gas
|
$
|
-
|
$
|
423,729
|
$
|
-
|
$
|
-
|
$
|
423,729
|
||||||
Service
|
-
|
9,766
|
-
|
-
|
9,766
|
|||||||||||
Total revenues
|
-
|
433,495
|
-
|
-
|
433,495
|
|||||||||||
Costs and expenses:
|
||||||||||||||||
Production and delivery costs
|
-
|
161,075
|
(25
|
)
|
-
|
161,050
|
||||||||||
Depletion, depreciation and amortization
|
||||||||||||||||
expense
|
-
|
248,738
|
-
|
-
|
248,738
|
|||||||||||
Exploration expenses
|
-
|
78,832
|
-
|
-
|
78,832
|
|||||||||||
General and administrative expenses
|
7,520
|
31,532
|
-
|
-
|
39,052
|
|||||||||||
Main Pass Energy Hub
TM
costs
|
-
|
-
|
562
|
-
|
562
|
|||||||||||
Insurance recoveries
|
-
|
(52,018
|
)
|
-
|
-
|
(52,018
|
)
|
|||||||||
Gain on sale of oil and gas property
|
-
|
(900
|
)
|
-
|
-
|
(900
|
)
|
|||||||||
Total costs and expenses
|
7,520
|
467,259
|
537
|
-
|
475,316
|
|||||||||||
Operating loss
|
(7,520
|
)
|
(33,764
|
)
|
(537
|
)
|
-
|
(41,821
|
)
|
|||||||
Interest expense, net
|
(8,782
|
)
|
-
|
-
|
-
|
(8,782
|
)
|
|||||||||
Equity in losses of consolidated
|
-
|
|||||||||||||||
subsidiaries
|
(38,393
|
)
|
-
|
-
|
38,393
|
-
|
||||||||||
Other income (expense), net
|
(16
|
)
|
630
|
-
|
-
|
614
|
||||||||||
Loss from continuing operations before
|
||||||||||||||||
income taxes
|
(54,711
|
)
|
(33,134
|
)
|
(537
|
)
|
38,393
|
(49,989
|
)
|
|||||||
Income tax expense
|
-
|
-
|
-
|
-
|
-
|
|||||||||||
Loss from continuing operations
|
(54,711
|
)
|
(33,134
|
)
|
(537
|
)
|
38,393
|
(49,989
|
)
|
|||||||
Loss from discontinued operations
|
-
|
-
|
(4,722
|
)
|
-
|
(4,722
|
)
|
|||||||||
Net loss
|
(54,711
|
)
|
(33,134
|
)
|
(5,259
|
)
|
38,393
|
(54,711
|
)
|
|||||||
Preferred dividends and other related
|
||||||||||||||||
preferred stock costs
|
(32,457
|
)
|
-
|
-
|
-
|
(32,457
|
)
|
|||||||||
Net loss applicable to common stock
|
$
|
(87,168
|
)
|
$
|
(33,134
|
)
|
$
|
(5,259
|
)
|
$
|
38,393
|
$
|
(87,168
|
)
|
||
Freeport
|
Consolidated
|
|||||||||||||||
Parent
|
MOXY
|
Energy
|
Eliminations
|
McMoRan
|
||||||||||||
(In Thousands)
|
||||||||||||||||
Revenues:
|
||||||||||||||||
Oil and natural gas
|
$
|
-
|
$
|
90,778
|
$
|
-
|
$
|
-
|
$
|
90,778
|
||||||
Service
|
-
|
4,062
|
-
|
-
|
4,062
|
|||||||||||
Total revenues
|
-
|
94,840
|
-
|
-
|
94,840
|
|||||||||||
Costs and expenses:
|
||||||||||||||||
Production and delivery costs
|
-
|
47,085
|
(14
|
)
|
-
|
47,071
|
||||||||||
Depletion, depreciation and amortization
|
||||||||||||||||
expense
|
-
|
48,588
|
-
|
-
|
48,588
|
|||||||||||
Exploration expenses
|
-
|
5,256
|
-
|
-
|
5,256
|
|||||||||||
Gain on oil and gas derivative contracts
|
-
|
(942
|
)
|
-
|
-
|
(942
|
)
|
|||||||||
General and administrative expenses
|
2,654
|
8,494
|
-
|
-
|
11,148
|
|||||||||||
Main Pass Energy Hub
TM
costs
|
-
|
-
|
230
|
-
|
230
|
|||||||||||
Insurance recoveries
|
-
|
(5,584
|
)
|
-
|
-
|
(5,584
|
)
|
|||||||||
Gain on sale of oil and gas property
|
-
|
-
|
-
|
-
|
-
|
|||||||||||
Total costs and expenses
|
2,654
|
102,897
|
216
|
-
|
105,767
|
|||||||||||
Operating loss
|
(2,654
|
)
|
(8,057
|
)
|
(216
|
)
|
-
|
(10,927
|
)
|
|||||||
Interest expense, net
|
(8,670
|
)
|
(20
|
)
|
-
|
-
|
(8,690
|
)
|
||||||||
Equity in losses of consolidated
|
-
|
|||||||||||||||
subsidiaries
|
(9,399
|
)
|
-
|
-
|
9,399
|
-
|
||||||||||
Other income (expense), net
|
(6
|
)
|
78
|
-
|
-
|
72
|
||||||||||
Loss from continuing operations before
|
||||||||||||||||
income taxes
|
(20,729
|
)
|
(7,999
|
)
|
(216
|
)
|
9,399
|
(19,545
|
)
|
|||||||
Income tax expense
|
-
|
-
|
-
|
-
|
-
|
|||||||||||
Loss from continuing operations
|
(20,729
|
)
|
(7,999
|
)
|
(216
|
)
|
9,399
|
(19,545
|
)
|
|||||||
Loss from discontinued operations
|
-
|
-
|
(1,184
|
)
|
-
|
(1,184
|
)
|
|||||||||
Net loss
|
(20,729
|
)
|
(7,999
|
)
|
(1,400
|
)
|
9,399
|
(20,729
|
)
|
|||||||
Preferred dividends and other related
|
||||||||||||||||
preferred stock costs
|
(4,524
|
)
|
-
|
-
|
-
|
(4,524
|
)
|
|||||||||
Net loss applicable to common stock
|
$
|
(25,253
|
)
|
$
|
(7,999
|
)
|
$
|
(1,400
|
)
|
$
|
9,399
|
$
|
(25,253
|
)
|
||
Freeport
|
Consolidated
|
|||||||||||||||
Parent
|
MOXY
|
Energy
|
Eliminations
|
McMoRan
|
||||||||||||
(In Thousands)
|
||||||||||||||||
Revenues:
|
||||||||||||||||
Oil and natural gas
|
$
|
-
|
$
|
323,727
|
$
|
-
|
$
|
-
|
$
|
323,727
|
||||||
Service
|
-
|
11,642
|
-
|
-
|
11,642
|
|||||||||||
Total revenues
|
-
|
335,369
|
-
|
-
|
335,369
|
|||||||||||
Costs and expenses:
|
||||||||||||||||
Production and delivery costs
|
-
|
136,334
|
(39
|
)
|
-
|
136,295
|
||||||||||
Depletion, depreciation and amortization
|
||||||||||||||||
expense
|
-
|
214,720
|
-
|
-
|
214,720
|
|||||||||||
Exploration expenses
|
-
|
28,099
|
-
|
-
|
28,099
|
|||||||||||
Gain on oil and gas derivative contracts
|
-
|
(4,210
|
)
|
-
|
-
|
(4,210
|
)
|
|||||||||
General and administrative expenses
|
5,565
|
29,702
|
-
|
-
|
35,267
|
|||||||||||
Main Pass Energy Hub
TM
costs
|
-
|
-
|
805
|
-
|
805
|
|||||||||||
Insurance recoveries
|
-
|
(14,755
|
)
|
-
|
-
|
(14,755
|
)
|
|||||||||
Gain on sale of oil and gas property
|
-
|
(3,455
|
)
|
-
|
-
|
(3,455
|
)
|
|||||||||
Total costs and expenses
|
5,565
|
386,435
|
766
|
-
|
392,766
|
|||||||||||
Operating loss
|
(5,565
|
)
|
(51,066
|
)
|
(766
|
)
|
-
|
(57,397
|
)
|
|||||||
Interest expense, net
|
(29,076
|
)
|
(20
|
)
|
-
|
-
|
(29,096
|
)
|
||||||||
Equity in losses of consolidated
|
-
|
|||||||||||||||
subsidiaries
|
(55,928
|
)
|
-
|
-
|
55,928
|
-
|
||||||||||
Other income (expense), net
|
(7
|
)
|
184
|
-
|
-
|
177
|
||||||||||
Loss from continuing operations before
|
||||||||||||||||
income taxes
|
(90,576
|
)
|
(50,902
|
)
|
(766
|
)
|
55,928
|
(86,316
|
)
|
|||||||
Income tax expense
|
-
|
-
|
-
|
-
|
-
|
|||||||||||
Loss from continuing operations
|
(90,576
|
)
|
(50,902
|
)
|
(766
|
)
|
55,928
|
(86,316
|
)
|
|||||||
Loss from discontinued operations
|
-
|
-
|
(4,260
|
)
|
-
|
(4,260
|
)
|
|||||||||
Net loss
|
(90,576
|
)
|
(50,902
|
)
|
(5,026
|
)
|
55,928
|
(90,576
|
)
|
|||||||
Preferred dividends and other related
|
||||||||||||||||
preferred stock costs
|
(22,583
|
)
|
-
|
-
|
-
|
(22,583
|
)
|
|||||||||
Net loss applicable to common stock
|
$
|
(113,159
|
)
|
$
|
(50,902
|
)
|
$
|
(5,026
|
)
|
$
|
55,928
|
$
|
(113,159
|
)
|
||
Freeport
|
Consolidated
|
||||||||||||
Parent
|
MOXY
|
Energy
|
McMoRan
|
||||||||||
(In Thousands)
|
|||||||||||||
Cash flow from operating activities:
|
|||||||||||||
Net cash provided by (used in) continuing
|
|||||||||||||
operations
|
$
|
(10,359
|
)
|
$
|
200,767
|
$
|
(438
|
)
|
$
|
189,970
|
|||
Net cash used in discontinued operations
|
-
|
-
|
(11,457
|
)
|
(11,457
|
)
|
|||||||
Net cash provided by (used in) operating
|
|||||||||||||
activities
|
(10,359
|
)
|
200,767
|
(11,895
|
)
|
178,513
|
|||||||
Cash flow from investing activities:
|
|||||||||||||
Exploration, development and other
|
|||||||||||||
capital expenditures
|
-
|
(403,889
|
)
|
-
|
(403,889
|
)
|
|||||||
Acquisition of oil and gas properties
|
-
|
(10,000
|
)
|
-
|
(10,000
|
)
|
|||||||
Proceeds from sale of oil and gas property
|
-
|
900
|
-
|
900
|
|||||||||
Net cash used in investing activities
|
-
|
(412,989
|
)
|
-
|
(412,989
|
)
|
|||||||
Cash flow from financing activities:
|
|||||||||||||
Dividends paid and conversion inducement
|
(27,609
|
)
|
-
|
-
|
(27,609
|
)
|
|||||||
payments on convertible preferred stock
|
|||||||||||||
Credit facility refinancing
|
-
|
(1,712
|
)
|
-
|
(1,712
|
)
|
|||||||
Proceeds from exercise of stock options
|
929
|
-
|
-
|
929
|
|||||||||
Debt and equity issuance costs
|
(543
|
)
|
-
|
-
|
(543
|
)
|
|||||||
Investment from parent
|
(12,000
|
)
|
-
|
12,000
|
-
|
||||||||
Amounts payable to consolidated affiliate
|
53,823
|
(53,927
|
)
|
104
|
-
|
||||||||
Net cash (used in) provided by financing
|
|||||||||||||
activities
|
14,600
|
(55,639
|
)
|
12,104
|
(28,935
|
)
|
|||||||
Net increase (decrease) in cash and cash
|
4,241
|
(267,861
|
)
|
209
|
(263,411
|
)
|
|||||||
equivalents
|
|||||||||||||
Cash and cash equivalents at beginning
|
420
|
904,889
|
375
|
905,684
|
|||||||||
of year
|
|||||||||||||
Cash and cash equivalents at end of period
|
$
|
4,661
|
$
|
637,028
|
$
|
584
|
$
|
642,273
|
|||||
Freeport
|
Consolidated
|
||||||||||||
Parent
|
MOXY
|
Energy
|
McMoRan
|
||||||||||
(In Thousands)
|
|||||||||||||
Cash flow from operating activities:
|
|||||||||||||
Net cash provided by (used in) continuing
|
|||||||||||||
operations
|
$
|
27,970
|
$
|
94,917
|
$
|
(2,576
|
)
|
$
|
120,311
|
||||
Net cash used in discontinued operations
|
-
|
-
|
(606
|
)
|
(606
|
)
|
|||||||
Net cash provided by (used in) operating
|
|||||||||||||
activities
|
27,970
|
94,917
|
(3,182
|
)
|
119,705
|
||||||||
Cash flow from investing activities:
|
|||||||||||||
Exploration, development and other
|
|||||||||||||
capital expenditures
|
-
|
(160,259
|
)
|
-
|
(160,259
|
)
|
|||||||
Proceeds from sale of oil and gas property
|
-
|
2,920
|
-
|
2,920
|
|||||||||
Net cash used in investing activities
|
-
|
(157,339
|
)
|
-
|
(157,339
|
)
|
|||||||
Cash flow from financing activities:
|
|||||||||||||
Dividends paid and conversion inducement
|
(23,136
|
)
|
-
|
-
|
(23,136
|
)
|
|||||||
payments on convertible preferred stock
|
|||||||||||||
Proceeds from exercise of stock options and other
|
(455
|
)
|
-
|
-
|
(455
|
)
|
|||||||
Investment from parent
|
(3,350
|
)
|
-
|
3,350
|
-
|
||||||||
Net cash (used in) provided by financing
|
|||||||||||||
activities
|
(26,941
|
)
|
-
|
3,350
|
(23,591
|
)
|
|||||||
Net increase (decrease) in cash and cash
|
|||||||||||||
equivalents
|
1,029
|
(62,422
|
)
|
168
|
(61,225
|
)
|
|||||||
Cash and cash equivalents at beginning
|
|||||||||||||
of year
|
16
|
241,400
|
2
|
241,418
|
|||||||||
Cash and cash equivalents at end of year
|
$
|
1,045
|
$
|
178,978
|
$
|
170
|
$
|
180,193
|
|||||
Third Quarter
|
Nine Months
|
|||||||
2011
|
2010
|
2011
|
2010
|
|||||
Sales volumes:
|
||||||||
Gas (thousand cubic feet, or Mcf)
|
11,367,900
|
8,754,300
|
34,638,000
|
29,795,900
|
||||
Oil (barrels)
|
674,700
|
534,000
|
2,139,800
|
1,851,900
|
||||
Plant products (per Mcf equivalent)
a
|
1,756,400
|
1,484,700
|
5,137,700
|
4,681,300
|
||||
Average realizations
b
|
||||||||
Gas (per Mcf)
|
$ 4.38
|
$ 4.61
|
$ 4.54
|
$ 4.97
|
||||
Oil (per barrel)
|
100.94
|
75.78
|
102.56
|
76.13
|
a.
|
Results include approximately $16.5 million and $46.3 million of revenues associated with plant products (ethane, propane, butane, etc.) during the third quarter and nine months ended September 30, 2011, respectively. Plant product revenues for the comparable prior year periods totaled $9.8 million and $34.3 million. One Mcf equivalent is determined using the ratio of six Mcf of natural gas to one barrel of crude oil, condensate or natural gas liquids.
|
b.
|
Excludes the impact of gains and losses on derivative contracts in 2010.
|
Third
|
Nine
|
|||||
Quarter
|
Months
|
|||||
Oil and natural gas revenues – prior year period
|
$
|
90,778
|
$
|
323,727
|
||
Increase (decrease)
|
||||||
Price realizations:
|
||||||
Natural gas
|
(2,615
|
)
|
(14,894
|
)
|
||
Oil and condensate
|
16,975
|
56,555
|
||||
Sales volumes:
|
||||||
Natural gas
|
12,048
|
24,066
|
||||
Oil and condensate
|
10,662
|
21,918
|
||||
Plant products revenues
|
6,679
|
11,940
|
||||
Other
|
21
|
417
|
||||
Oil and natural gas revenues – current year period
|
$
|
134,548
|
$
|
423,729
|
Third Quarter
|
Nine Months
|
|||||||||||||||
Per
|
Per
|
Per
|
Per
|
|||||||||||||
2011
|
Mcfe
|
2010
|
Mcfe
|
2011
|
Mcfe
|
2010
|
Mcfe
|
|||||||||
Lease operating expense
|
$27.1
|
$1.58
|
$25.2
|
$1.87
|
$85.4
|
$1.62
|
$78.9
|
$1.73
|
||||||||
Workover costs
|
24.9
|
1.45
|
9.6
|
0.71
|
42.3
|
0.80
|
17.3
|
0.38
|
||||||||
Hurricane related expenses
|
-
|
-
|
1.2
|
0.09
|
0.1
|
0.00
|
3.9
|
0.09
|
||||||||
Insurance
|
1.6
|
0.09
|
6.5
|
0.48
|
12.7
|
0.24
|
19.7
|
0.43
|
||||||||
Transportation and production taxes
|
6.9
|
0.40
|
4.8
|
0.36
|
19.3
|
0.37
|
16.5
|
0.36
|
||||||||
Other
|
0.7
|
0.04
|
(0.2
|
)
|
(0.01
|
)
|
1.3
|
0.03
|
-
|
-
|
||||||
Total production and delivery costs
|
$61.2
|
$3.56
|
$47.1
|
$3.50
|
$161.1
|
$3.06
|
$136.3
|
$2.99
|
Third Quarter
|
Nine Months
|
||||||||||||||
Per
|
Per
|
Per
|
Per
|
||||||||||||
2011
|
Mcfe
|
2010
|
Mcfe
|
2011
|
Mcfe
|
2010
|
Mcfe
|
||||||||
Depletion and depreciation expense
|
$41.4
|
$2.41
|
$30.7
|
$2.28
|
$130.0
|
$2.47
|
$117.1
|
$2.57
|
|||||||
Accretion expense
|
14.0
|
0.82
|
6.6
|
0.49
|
56.7
|
1.08
|
15.6
|
0.34
|
|||||||
Impairment charges/losses
|
11.3
|
0.66
|
11.3
|
0.84
|
62.0
|
1.18
|
82.0
|
1.80
|
|||||||
Total
|
$66.7
|
$3.89
|
$48.6
|
$3.61
|
$248.7
|
$4.73
|
$214.7
|
$4.71
|
Third Quarter
|
Nine Months
|
|||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||
Geological and geophysical
|
||||||||||||
including 3-D seismic purchases
a
|
$
|
6.4
|
$
|
4.9
|
$
|
17.2
|
$
|
13.9
|
||||
Non-productive exploratory costs, including
|
||||||||||||
related lease costs
|
3.1
|
b
|
0.1
|
42.0
|
b
|
7.5
|
c
|
|||||
Other
d
|
8.7
|
0.3
|
19.6
|
6.7
|
||||||||
$
|
18.2
|
$
|
5.3
|
$
|
78.8
|
$
|
28.1
|
a.
|
Includes compensation costs associated with outstanding stock-based awards totaling $1.2 million in the third quarter of 2011 and $7.0 million in the nine months ended September 30, 2011 compared with $1.4 million and $7.3 million of compensation costs during comparable periods in 2010 (see “Stock-Based Compensation” below).
|
b.
|
Includes well costs associated with the Blueberry Hill #9 STK1 well determined to be non-commercial during the second quarter of 2011 as well as unproven leasehold cost reductions of $2.2 million during the third quarter of 2011.
|
c.
|
Includes costs of the Blueberry Hill offset appraisal well incurred below 19,000 feet. Results below 19,000 feet were determined to be non-commercial, and we commenced sidetracking efforts in April 2010 to a location southwest of the pay sands seen in 2009.
|
d.
|
Includes $3.6 million and $7.9 million in drilling related insurance costs for the third quarter and nine months
|
Third Quarter
|
Nine Months
|
||||||||||||
2011
|
2010
|
2011
|
2010
|
||||||||||
General and administrative expenses
|
$
|
1,588
|
$
|
1,629
|
$
|
8,460
|
$
|
8,153
|
|||||
Exploration expenses
|
1,194
|
1,363
|
7,033
|
7,282
|
|||||||||
Main Pass Energy Hub costs
|
20
|
52
|
125
|
266
|
|||||||||
Total stock-based compensation cost
|
$
|
2,802
|
$
|
3,044
|
$
|
15,618
|
$
|
15,701
|
Nine Months Ended
|
||||||
September 30,
|
||||||
2011
|
2010
|
|||||
Continuing operations
|
||||||
Operating
|
$
|
190.0
|
$
|
120.3
|
||
Investing
|
(413.0
|
)
|
(157.3
|
)
|
||
Financing
|
(28.9
|
)
|
(23.6
|
)
|
Discontinued operations
|
||||||
Operating
|
(11.5
|
)
|
(0.6
|
)
|
||
Investing
|
-
|
-
|
||||
Financing
|
-
|
-
|
||||
Total cash flow
|
||||||
Operating
|
178.5
|
119.7
|
||||
Investing
|
(413.0
|
)
|
(157.3
|
)
|
||
Financing
|
(28.9
|
)
|
(23.6
|
)
|
Amount
|
||||
11.875% senior notes (due 2014)
|
$
|
300.0
|
||
5¼% convertible senior notes (due 2011)
|
74.7
|
|||
4% convertible senior notes, net of $13.2 discount (due 2017)
|
186.8
|
|||
Credit facility
|
-
|
|||
Total debt
|
$
|
561.5
|
Period
|
(a) Total Number of Shares Purchased
|
(b) Average Price Paid Per Share
|
(c) Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs
|
(d) Maximum Number of Shares That May Yet Be Purchased Under the Plans or Programs
a
|
|
July 1-31, 2011
|
-
|
$ -
|
-
|
300,000
|
|
August 1-31, 2011
|
-
|
-
|
-
|
300,000
|
|
September 1-30, 2011
|
-
|
-
|
-
|
300,000
|
|
Total
|
-
|
$ -
|
-
|
300,000
|
a.
|
Our Board of Directors has approved an open market share purchase program for up to 2.5 million shares. The program does not have an expiration date. No shares were purchased during the three months ended September 30, 2011 and 0.3 million shares remain available for purchase.
|
McMoRan Exploration Co.
|
|
By: /s/ Nancy D. Parmelee
|
|
Nancy D. Parmelee
|
|
Senior Vice President, Chief Financial Officer
|
|
and Secretary
|
|
(authorized signatory and Principal
|
|
Financial Officer)
|
|
Date: November 9, 2011
|
Filed
|
|||||||
Exhibit
|
with this
|
Incorporated by Reference
|
|||||
Number
|
Exhibit Title
|
Form 10-Q
|
Form
|
File No.
|
Date Filed
|
||
3.1
|
Composite Certificate of Incorporation of McMoRan
|
8-A/A
|
001-07791
|
01/28/2011
|
|||
3.2
|
Certificate of Amendment to the Amended and Restated Certificate of Incorporation of McMoRan
|
8-K
|
001-07791
|
06/17/2011
|
|||
3.3
|
Amended and Restated By-Laws of McMoRan as amended effective February 1, 2010
|
8-K
|
001-07791
|
02/03/2010
|
|||
4.1
|
Registration Rights Agreement dated as of September 8, 2011 by and among McMoRan Exploration Co. and Whitney Exploration, LLC
|
8-K
|
001-7791
|
09/09/2011
|
|||
4.2
|
Indenture dated October 6, 2011 by and among McMoRan Exploration Co. and The Bank of New York Mellon Trust Company, N.A., as Trustee, with respect to the 5¼% Convertible Senior Notes due 2012
|
8-K
|
001-07791
|
10/11/2011
|
|||
10.1
|
Purchase and Sale Agreement by and between McMoRan Exploration Co., McMoRan Oil & Gas LLC, as buyer, Whitney Exploration, LLC, as seller, and Stephen J. Williams, dated as of September 8, 2011
|
8-K
|
001-07791
|
09/09/2011
|
|||
Letter dated November 9, 2011 from Ernst & Young LLP regarding unaudited interim financial statements
|
X
|
||||||
Certification of Principal Executive Officer pursuant to Rule 13a–14(a)/15d-14(a)
|
X
|
||||||
Certification of Principal Financial Officer pursuant to Rule 13a–14(a)/15d-14(a)
|
X
|
||||||
Certification of Principal Executive Officer pursuant to 18 U.S.C. Section 1350
|
X
|
||||||
Certification of Principal Financial Officer pursuant to 18 U.S.C. Section 1350
|
X
|
||||||
101.INS
|
XBRL Instance Document
|
X
|
|||||
101.SCH
|
XBRL Taxonomy Extension Schema.
|
X
|
|||||
101.CAL
|
XBRL Taxonomy Extension Calculation Linkbase.
|
X
|
|||||
101.DEF
|
XBRL Taxonomy Extension Definition Linkbase.
|
X
|
|||||
101.LAB
|
XBRL Taxonomy Extension Label Linkbase.
|
X
|
|||||
101.PRE
|
XBRL Taxonomy Extension Presentation Linkbase.
|
X
|
1 Year Mcmoran Chart |
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