Ryan Randazzo

The Republic | azcentral.com

Freeport-McMorRan Inc. reported a quarterly and annual loss Tuesday, as expected.

The company is considering alternatives for its oil and gas business.

All of its properties, including mines, are being evaluated for potential sales.

Freeport-McMoRan Inc. officials said Tuesday they hope to sell $5 billion to $10 billion in assets to pay down debt, and are looking at all the company's mines and fossil-fuel operations for potential sales.

The Phoenix-based copper mining company, which diversified into oil and gas operations in 2013, has been losing money amid falling commodities prices, and officials said they plan to improve the debt position by selling properties that make the most sense.

"We are looking at all our assets across the company board," said President and CEO Richard Adkerson. "Every one of our assets are being considered and we are going to understand the market's interest."

Sales could presumably include Arizona mines such as Bagdad and Morenci, where Freeport owns all or part of the operation.

Other than providing the range of $5 billion to $10 billion in asset sales, and the fact that amount would require selling multiple properties, Adkerson didn't say which properties are most likely to be divested.

Half of any asset sales will be used to reduce the company's $20 billion in debt, he said.

“That’s why we are doing it,” he said. "We’ll have to deal with our financial situation going forward. We are not going to be restoring investment activities until we solve the balance sheet problem and market conditions improve."

Freeport once was Arizona's most valuable company. But the $9 billion bet executives placed on the oil and gas business in 2013 has severely damaged the company's value. That year the company completed the purchase of McMoRan Exploration and Plains Exploration and Production, enriching several executives who had ties to both companies.

Freeport later paid $137.5 million to settle a class-action lawsuit over the conflicts that deal presented, but the oil and gas investment has continued to drag on the company as oil prices have sunk.

After paying 31.25 cents a share per quarter as recently as one year ago, plus occasional special dividends, the company suspended dividends in December.

During a conference call with analysts Tuesday, some members of the investment community questioned what types of deals would be considered to pay down debt.

“In the midst of all the concern about Freeport … we’ve got a great set of assets,” Adkerson said. “That’s why I’m still working here.”

For the quarter that ended Dec. 31, Freeport lost $4.1 billion, or $3.47 per share, compared with a loss of $3.3 billion, or $2.75 per share, in the same quarter a year ago.

For the year, the company lost $12.2 billion, or $11.23 per share.

Quarterly revenue fell to $3.7 billion from $5.2 billion in the same quarter a year ago. Annual revenue fell to $15.8 billion from $21.4 billion in the comparable quarter.

After adjusting for charges, the quarterly loss was 2 cents per share. Analysts were expecting a loss of 17 cents per share on revenue of $3.8 billion.