Freeport McMoRan: Let The Shareholders Vote [View article]
I agree, it is a well written article and I think that the author raises some interesting points, but I feel like he is focusing a little too much on the short term issues of this deal. Granted I may be biased since I am not an FCX shareholder (yet) and AM a MMR shareholder (I bought most of my shares in the $13 range so I am not getting rich off the deal) but I see alot of value in the assets that FCX is picking up. Going off of current earnings of course both PXP and MMR are terrible investments but the potential is there for excellent future profits. Of course that has been the story for several years now, and the Davy Jones well has seen delay after delay, which brought us to the most recent downgrade of the stock. The analysts that issued the downgrades have surely been following this story for a long time so you have to ask, why did they pick November to start throwing around terms like "zero equity value". To me it seems like they were just frustrated that it is taking so long to see results on DJ1 and finally had enough with the updates or maybe they read too much into the statements issued by MMR about the clogged perfs (some said this was a sign that the well may have to be P&A). Even if DJ1 itself is a non-producing well, we can be fairly certain it is only because of complications with equipment, not a lack of resource. So FCX will gain A: all the knowledge and design regarding the completion of future ultra-deep wells, and B: plenty of leases to develop (not to mention the other ones already drilled by MMR).
I would probably also be pissed if I had owned FCX before it dropped 20% but at the same time I don't buy this idea that the board "violated shareholder trust". I mean, any shareholder that did his homework on FCX had to know that A: MMR was spun off in the 90's B: FCX still owned a stake in MMR and C: Jimbo (among others) was deeply involved with both companies. I think it is fairly common to buy back a previously spun out company. It has happened in the company I work for and others that I know of.
Basically, I think the main beef all the inst. investors have now is that they assumed FCX could fit neatly in their little file cabinet under the "Copper" tab, but now that has been shattered, so they are going to throw a fit. Personally, I am wondering if now is the right time to take advantage of their misfortune and buy some FCX. The only problem I see (and was concerning to me as an MMR shareholder) is that maybe Jimbo is too obsessed with the ultra-deep and will keep throwing money into the 30,000' pit until his last dime is spent, but overall I have confidence that the wells can be completed, however I admit that I am an optimist when it comes to the endeavors of Oil Men.
Tree-huggers and Texas landowners make an odd but perhaps an effective pair in opposing the proposed Keystone pipeline. A Texas judge temporarily halts construction of Keystone's southern leg after a landowner filed a lawsuit against TransCanada (TRP +0.4%) claiming the company had lied about the nature of the project. [View news story]
"There's a 40% chance of a 'fiscal cliff' deal before year end," predicts Erskine Bowles. In true Washingtonian-speak however, he adds that there's also a 35% chance that no deal will get done. Interpretation: "The chances of getting it done are better," Bowles says, "That's what's key." [View news story]
How much spending? The US government is already setting new spending records every year. If spending is the answer, why even have a limit, why not have the government borrow 1 quadrillion dollars and then give 3 million to everyone in the country, it would be instant growth right??
"There's a 40% chance of a 'fiscal cliff' deal before year end," predicts Erskine Bowles. In true Washingtonian-speak however, he adds that there's also a 35% chance that no deal will get done. Interpretation: "The chances of getting it done are better," Bowles says, "That's what's key." [View news story]
Nah I would say the other 25% is the world ends before they have a chance to screw things up any worse.
Cullen Roche's three bearish signs in a sea of negativity: U.S. rail traffic is grinding to a halt; U.S. manufacturers' new orders have turned sharply negative; and Suez Canal traffic is turning negative. (But things could be worse: three bullish signs.) [View news story]
So basically it all cancels out and the economy goes nowhere for the next 5 years, great....
BlackRock, one of Freeport McMoRan's (FCX) largest shareholders, slams the $9B deal to acquire McMoRan Exploration (MMR) and Plains Exploration (PXP), saying FCX management broke shareholder trust. "I haven't heard anything on this [conference] call that in any way justifies why these companies should be put together," managing director Evy Hambro says. [View news story]
Freeport's (FCX) mega-deal for McMoRan (MMR) and Plains (PXP) looks "incestuous" to Jim Mueller: Just for starters, PXP owns 31.5% of MMR and CEO James Flores sits on its board; MMR CEO Jim Bob Moffett is chairman of FCX; B.M. Rankin, a co-founder of FCX with Moffett, sits on MMR’s board. With such a web of relationships, how much independent due diligence was done in reaching the deal? [View news story]
If the drilling programs of MMR and PXP do well and oil / gas prices increase then it will be more than worthwhile for FCX. Otherwise it could be a losing bet. Welcome to the oilfield.
BlackRock, one of Freeport McMoRan's (FCX) largest shareholders, slams the $9B deal to acquire McMoRan Exploration (MMR) and Plains Exploration (PXP), saying FCX management broke shareholder trust. "I haven't heard anything on this [conference] call that in any way justifies why these companies should be put together," managing director Evy Hambro says. [View news story]
Man I forgot about the BP assets. Kind of makes you think, if the ultra-deep pans out and the BP stuff turns out good.....this thing could be a beast. of course on the other hand.....
It's official: Freeport McMoRan (FCX) will acquire Plains Exploration (PXP) for ~$6.9B in cash and stock, and acquire McMoRan Exploration (MMR) for ~$3.4B in cash, or $2.1B net of 36% of the MMR interests currently owned by FCX and PXP. MMR +74.3%, PXP +25.2%, FXC -13.2% premarket. [View news story]
"each report out of Davy Jones seems worse"
True, and I have repeatedly been disappointed by the slow progress, but keep in mind that MMR was once part of FCX and the directors have some firsthand knowledge of what is going on with the ultra-deep prospects. Even if DJ1 is weak due to all the complications, the next 2-3 wells should be easier to complete and more productive. Also, the premium seems high now, but only 2 weeks ago MMR was trading in the high 12's so 14.75 seems cheap from there. In fact I wonder if any other companies might be interested at that price, although perhaps not since no others have the strong ties that FCX does. The X factor here is the royalty trust to be created, how much value will it add?
Also, to clarify I am not buying FCX either. But I thought about it....
It's official: Freeport McMoRan (FCX) will acquire Plains Exploration (PXP) for ~$6.9B in cash and stock, and acquire McMoRan Exploration (MMR) for ~$3.4B in cash, or $2.1B net of 36% of the MMR interests currently owned by FCX and PXP. MMR +74.3%, PXP +25.2%, FXC -13.2% premarket. [View news story]
I wonder if they are allowed to attend parties with each other....
It's official: Freeport McMoRan (FCX) will acquire Plains Exploration (PXP) for ~$6.9B in cash and stock, and acquire McMoRan Exploration (MMR) for ~$3.4B in cash, or $2.1B net of 36% of the MMR interests currently owned by FCX and PXP. MMR +74.3%, PXP +25.2%, FXC -13.2% premarket. [View news story]
Isn't it funny how JP Morgan downgraded this stock very recently and now they are handling the financing for this transaction....
Cliffs Natural Resources (CLF +0.9%) can be expected to cut its dividend soon from current "unsustainable" levels, BMO Capital warns as it reduces its quarterly dividend estimate to $0.28/share from $0.625. Though shares may be oversold at present, CLF remains a high-risk iron play given its moderate-higher operations cost and leverage to iron ore prices, the firm says. [View news story]
With Iron ore prices at the lows in Q3 they still earned about $.01 short of covering the dividend. As long as ore prices don't head downhill again they should earn enough to cover the dividend. That said, they may still decide to cut the dividend to get the payout ratio lower.
Keep in mind the dividend was reduced to nothing only a couple of years ago, they are just working it back up to $0.84, in my mind it can't come soon enough.
It may be trying to squeeze dividends in before next year, anticipating a dividend tax increase. You notice they didn't give a payout date, but made sure to emphasize that it will come in Q4. I wonder if there has been pressure from shareholders to make sure this is done before the tax nightmare begins.
"Asian-Americans are the highest-income, best-educated and fastest-growing racial group in the United States," the Pew Research Center wrote in recent massive study. The WSJ discusses the rise of Asian-Americans in a weekend essay, saying that they "have become the immigrant group that most embodies the American promise of success driven by will and resolve." [View news story]
Ok the Berkeley comment was mainly just me talking s**t, but I feel like it is important to mention that college is not the only measure of success, or the only path to a high paying job. I know people who work in the oilfield that never even got a high school diploma and are now making 6 figures. All you need is the work ethic and reasonable intelligence.
Freeport McMoRan: Let The Shareholders Vote [View article]
I would probably also be pissed if I had owned FCX before it dropped 20% but at the same time I don't buy this idea that the board "violated shareholder trust". I mean, any shareholder that did his homework on FCX had to know that A: MMR was spun off in the 90's B: FCX still owned a stake in MMR and C: Jimbo (among others) was deeply involved with both companies. I think it is fairly common to buy back a previously spun out company. It has happened in the company I work for and others that I know of.
Basically, I think the main beef all the inst. investors have now is that they assumed FCX could fit neatly in their little file cabinet under the "Copper" tab, but now that has been shattered, so they are going to throw a fit. Personally, I am wondering if now is the right time to take advantage of their misfortune and buy some FCX. The only problem I see (and was concerning to me as an MMR shareholder) is that maybe Jimbo is too obsessed with the ultra-deep and will keep throwing money into the 30,000' pit until his last dime is spent, but overall I have confidence that the wells can be completed, however I admit that I am an optimist when it comes to the endeavors of Oil Men.
Tree-huggers and Texas landowners make an odd but perhaps an effective pair in opposing the proposed Keystone pipeline. A Texas judge temporarily halts construction of Keystone's southern leg after a landowner filed a lawsuit against TransCanada (TRP +0.4%) claiming the company had lied about the nature of the project. [View news story]
"There's a 40% chance of a 'fiscal cliff' deal before year end," predicts Erskine Bowles. In true Washingtonian-speak however, he adds that there's also a 35% chance that no deal will get done. Interpretation: "The chances of getting it done are better," Bowles says, "That's what's key." [View news story]
"There's a 40% chance of a 'fiscal cliff' deal before year end," predicts Erskine Bowles. In true Washingtonian-speak however, he adds that there's also a 35% chance that no deal will get done. Interpretation: "The chances of getting it done are better," Bowles says, "That's what's key." [View news story]
Cullen Roche's three bearish signs in a sea of negativity: U.S. rail traffic is grinding to a halt; U.S. manufacturers' new orders have turned sharply negative; and Suez Canal traffic is turning negative. (But things could be worse: three bullish signs.) [View news story]
BlackRock, one of Freeport McMoRan's (FCX) largest shareholders, slams the $9B deal to acquire McMoRan Exploration (MMR) and Plains Exploration (PXP), saying FCX management broke shareholder trust. "I haven't heard anything on this [conference] call that in any way justifies why these companies should be put together," managing director Evy Hambro says. [View news story]
Freeport's (FCX) mega-deal for McMoRan (MMR) and Plains (PXP) looks "incestuous" to Jim Mueller: Just for starters, PXP owns 31.5% of MMR and CEO James Flores sits on its board; MMR CEO Jim Bob Moffett is chairman of FCX; B.M. Rankin, a co-founder of FCX with Moffett, sits on MMR’s board. With such a web of relationships, how much independent due diligence was done in reaching the deal? [View news story]
BlackRock, one of Freeport McMoRan's (FCX) largest shareholders, slams the $9B deal to acquire McMoRan Exploration (MMR) and Plains Exploration (PXP), saying FCX management broke shareholder trust. "I haven't heard anything on this [conference] call that in any way justifies why these companies should be put together," managing director Evy Hambro says. [View news story]
It's official: Freeport McMoRan (FCX) will acquire Plains Exploration (PXP) for ~$6.9B in cash and stock, and acquire McMoRan Exploration (MMR) for ~$3.4B in cash, or $2.1B net of 36% of the MMR interests currently owned by FCX and PXP. MMR +74.3%, PXP +25.2%, FXC -13.2% premarket. [View news story]
True, and I have repeatedly been disappointed by the slow progress, but keep in mind that MMR was once part of FCX and the directors have some firsthand knowledge of what is going on with the ultra-deep prospects. Even if DJ1 is weak due to all the complications, the next 2-3 wells should be easier to complete and more productive. Also, the premium seems high now, but only 2 weeks ago MMR was trading in the high 12's so 14.75 seems cheap from there. In fact I wonder if any other companies might be interested at that price, although perhaps not since no others have the strong ties that FCX does. The X factor here is the royalty trust to be created, how much value will it add?
Also, to clarify I am not buying FCX either. But I thought about it....
It's official: Freeport McMoRan (FCX) will acquire Plains Exploration (PXP) for ~$6.9B in cash and stock, and acquire McMoRan Exploration (MMR) for ~$3.4B in cash, or $2.1B net of 36% of the MMR interests currently owned by FCX and PXP. MMR +74.3%, PXP +25.2%, FXC -13.2% premarket. [View news story]
It's official: Freeport McMoRan (FCX) will acquire Plains Exploration (PXP) for ~$6.9B in cash and stock, and acquire McMoRan Exploration (MMR) for ~$3.4B in cash, or $2.1B net of 36% of the MMR interests currently owned by FCX and PXP. MMR +74.3%, PXP +25.2%, FXC -13.2% premarket. [View news story]
Cliffs Natural Resources (CLF +0.9%) can be expected to cut its dividend soon from current "unsustainable" levels, BMO Capital warns as it reduces its quarterly dividend estimate to $0.28/share from $0.625. Though shares may be oversold at present, CLF remains a high-risk iron play given its moderate-higher operations cost and leverage to iron ore prices, the firm says. [View news story]
BP Still On A Roll After Earnings [View article]
BP Still On A Roll After Earnings [View article]
"Asian-Americans are the highest-income, best-educated and fastest-growing racial group in the United States," the Pew Research Center wrote in recent massive study. The WSJ discusses the rise of Asian-Americans in a weekend essay, saying that they "have become the immigrant group that most embodies the American promise of success driven by will and resolve." [View news story]