Freeport acquiring two oil & gas companies in $20 billion deal

Phoenix-based Freeport McMoRan is acquiring Plains Exploration & Production Company for $6.9 billion in cash and stock and McMoRan Exploration Co. for approximately $3.4 billion in cash.  In addition, Freeport will also assume about $11 billion in debt. 

Freeport says the mergers will create a "premier U.S. based natural resources company."  They said Plains  major assets include"its established strong oil production facilities in California, a growing production profile in the onshore Eagle Ford trend in Texas, significant production facilities and growth potential in the Deepwater Gulf of Mexico and large onshore resources in the Haynesville natural gas trend in Louisiana."

They said McMoRan Exploration "is an industry leader in the emerging shallow water ultra-deep gas trend with sizeable potential, located offshore in the shallow waters of the Gulf of Mexico and onshore in South Louisiana."

Freeport ran a webcast today about the merger and is making it available for replay at www.fcx.com

through Friday, January 4, 2013.