On Friday, Freeport-McMoRan Inc (NYSE:FCX)’s shares declined -6.11% to $6.91.
Freeport-McMoRan Inc (NYSE:FCX) declared additional actions in response to market conditions, counting further revisions to its oil and gas capital spending plans, additional curtailments in copper and molybdenum production and the suspension of its common stock dividend.
Oil & Gas Review. As formerly stated on August 5, 2015, Freeport-McMoRan Oil & Gas (FM O&G) is deferring investments in several long-term projects in response to oil and gas market conditions. Following an ongoing review, capital expenditures for 2016 and 2017 have been reduced further from $2.0 billion per year in 2016 and 2017 to $1.8 billion in 2016 and $1.2 billion in 2017, counting idle rig costs. The revised plans, together with initiatives to obtain third party financing or other planned alternatives, will be pursued with the aim of achieving funding for oil and gas capital spending within its cash flows and resources.
The revised plans incorporate a reduction in rig utilization from three Deepwater Gulf of Mexico drillships to one drillship while increasing production from third quarter 2015 rates of 150 barrels of oil equivalents per day (MBOE/d) to an average of 159 MBOE/d in 2016 and 2017. FM O&G anticipates to bring eight wells on line in late 2015 and 2016 from its successful tie back drilling operations at the Holstein Deep, Horn Mountain and King Projects in the Deepwater Gulf of Mexico. These projects, combined with other initiatives, are predictable to add low cost oil production, enabling cash production costs to decline from $19 per barrel of oil equivalents (BOE) in 2015 to less than $16 per BOE in 2016 and 2017. Under the revised plans, FM O&G’s cash flows would substantially fund its capital expenditures at $45 per barrel of Brent crude oil in 2017.
Freeport-McMoRan Inc. (FCX) is a natural resource company with an industry portfolio of mineral assets, oil and natural gas resources, and a production profile. FCX has organized its operations into six primary divisions: North America copper mines, South America mining, Indonesia mining, Africa mining, Molybdenum mines, and United States oil and gas operations.
Marathon Oil Corporation (NYSE:MRO)’s shares dropped -2.71% to $14.34.
Marathon Oil Corporation (MRO) declared the Solomon exploration well in the Gulf of Mexico reached its total depth of about 34,600 feet on Walker Ridge Block 225 and did encounter the lower tertiary target interval. The well has been plugged and abandoned, and the rig has been released with no further activity planned on the block. Marathon Oil is the operator with a 58 percent working interest in the well. Venari holds a 22 percent working interest and Murphy holds 20 percent.
Marathon Oil Corporation is a global exploration and production company. Based in Houston, Texas, the Company had net proved reserves at the end of 2014 of 2.2 billion barrels of oil equivalent in North America, Europe and Africa. For more information, please visit the website at http://www.marathonoil.com.
Freeport-McMoRan Inc., a natural resource company, engages in the acquisition of mineral assets, and oil and natural gas resources. It primarily explores for copper, gold, molybdenum, cobalt, silver, and other metals, in addition to oil and gas.
At the end of Friday’s trade, Pep Boys-Manny Moe and Jack (NYSE:PBY)‘s shares dipped -1.68% to $16.34.
Bridgestone Americas, Inc. (Bridgestone) and The Pep Boys – Manny, Moe & Jack (Pep Boys; NYSE: PBY) declared that Pep Boys and Bridgestone Retail Operations, LLC (BSRO), a wholly owned partner of Bridgestone, have amended their Agreement and Plan of Merger dated October 26, 2015. Following the amendment, BSRO raised the offer price to acquire all the outstanding shares of common stock of Pep Boys from $15.00 per share to $15.50 per share in cash, or about $863 million in aggregate equity value. The revised offer price of $15.50 per share provides about $28 million in additional cash consideration to Pep Boys shareholders.
The Pep Boys board of directors continues to unanimously recommend that Pep Boys shareholders accept BSRO’s offer and tender their shares following that offer. Pep Boys also declared that its board of directors no longer deems the proposal received on December 8, 2015 from Icahn Enterprises L.P. to acquire Pep Boys for $15.50 per share in cash to be a “Superior Proposal” as defined in the Agreement and Plan of Merger.
The offer documents and Pep Boys’ solicitation/recommendation statement on Plan 14D-9 will be amended to reflect the amended terms. The tender offer will expire at 5:00 p.m., New York City time, on Monday, January 4, 2016, unless extended.
“The joining of Bridgestone and Pep Boys combines the expertise of nearly 200 years and a proud heritage in the American automotive aftermarket industry,” said T.J. Higgins, president, Consumer U.S. and Canada, Bridgestone Americas Tire Operations. “Both of our companies take immense pride in the skill of our employees, those in the bays and behind the counters of our stores. Bringing that technical talent together with our shared dedication to customer service will create a better, not just bigger, tire and automotive service retailer, and one that is positioned to best meet consumer needs.”
The Pep Boys Manny, Moe & Jack, together with its auxiliaries, engages in the automotive aftermarket service and retail business in the United States and Puerto Rico. The company’s service locations offer a range of automotive maintenance and repair services; and install tires, parts, and accessories. It provides tires; batteries; new and remanufactured parts for vehicles; chemicals and maintenance items; fashion, electronic, and performance accessories; and non-automotive merchandise.