FREEPORT-MCMORAN INC — M&A Activity 2012

Dec 5, 2012

FCX to Acquire PXP and MMR in Transactions Totaling $20 Billion, Creating a Premier U.S. Based Natural Resource Company December 5, 2012 FILED BY FREEPORT-MCMORAN COPPER & GOLD INC. PURSUANT TO RULE 425 UNDER THE SECURITIES ACT OF 1933 SUBJECT COMPANY: PLAINS EXPLORATION & PRODUCTION COMPANY COMMISSION FILE NO. 001-31470 CONNECTING THE FUTURE ®

2 Cautionary Statement Regarding Forward-Looking Statements Cautionary Statement Regarding Forward-Looking Statements This press release contains forward-looking statements concerning the proposed transaction, its financial and business impact, management’s beliefs and objectives with respect thereto, and management’s current expectations for future operating and financial performance, based on assumptions currently believed to be valid. Forward-looking statements are all statements other than statements of historical facts. The words “anticipates,” “may,” “can,” “plans,” “believes,” “estimates,” “expects,” “projects,” “intends,” “likely,” “will,” “should,” “to be,” and any similar expressions or other words of similar meaning are intended to identify those assertions as forward-looking statements. It is uncertain whether the events anticipated will transpire, or if they do occur what impact they will have on the results of operations and financial condition of FCX, MMR, PXP or of the combined company. These forward-looking statements involve significant risks and uncertainties that could cause actual results to differ materially from those anticipated, including but not limited to the ability of the parties to satisfy the conditions precedent and consummate either or both of the proposed transactions, the timing of consummation of either or both of the proposed transactions, the ability of the parties to secure regulatory approvals in a timely manner or on the terms desired or anticipated, the ability of FCX to integrate the acquired operations, the ability to implement the anticipated business plans following closing and achieve anticipated benefits and savings, and the ability to realize opportunities for growth. Other important economic, political, regulatory, legal, technological, competitive and other uncertainties are identified in the documents filed with the Securities and Exchange Commission (the “SEC”) by FCX, MMR and PXP from time to time, including their respective Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K. The forward-looking statements including in this press release are made only as of the date hereof. Neither FCX, MMR nor PXP undertakes any obligation to update the forward-looking statements included in this press release to reflect subsequent events or circumstances.

3 Additional Information about the Proposed Transactions and Where to Find It Additional Information about the Proposed Transactions and Where to Find It PXP Transaction In connection with the proposed transaction, FCX intends to file with the SEC a registration statement on Form S-4 that will include a proxy statement of PXP that also constitutes a prospectus of FCX. FCX and PXP also plan to file other relevant documents with the SEC regarding the proposed transaction. INVESTORS ARE URGED TO READ THE PROXY STATEMENT/PROSPECTUS AND OTHER RELEVANT DOCUMENTS FILED WITH THE SEC IF AND WHEN THEY BECOME AVAILABLE, BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION. You may obtain a free copy of the proxy statement/prospectus (if and when it becomes available) and other relevant documents filed by FCX and PXP with the SEC at the SEC’s website at www.sec.gov . You may also obtain these documents by contacting FCX’s Investor Relations department at (602) 366-8400, or via e-mail at IR@fmi.com; or by contacting PXP’s Investor Relations department at (713) 579-6291, or via email at investor@pxp.com. FCX and PXP and their respective directors and executive officers and other members of management and employees may be deemed to be participants in the solicitation of proxies in respect of the proposed transaction. Information about FCX’s directors and executive officers is available in FCX’s proxy statement dated April 27, 2012, for its 2012 Annual Meeting of Stockholders. Information about PXP’s directors and executive officers is available in PXP’s proxy statement dated April 13, 2012, for its 2012 Annual Meeting of Stockholders. Other information regarding the participants in the proxy solicitation and a description of their direct and indirect interests, by security holdings or otherwise, will be contained in the proxy statement/prospectus and other relevant materials to be filed with the SEC regarding the merger when they become available. Investors should read the proxy statement/prospectus carefully when it becomes available before making any voting or investment decisions. You may obtain free copies of these documents from FCX or PXP using the sources indicated above. This document shall not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. No offering of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the U.S. Securities Act of 1933, as amended. MMR Transaction In connection with the proposed transaction, the royalty trust formed in connection with the transaction will file with the SEC a registration statement on Form S-4 that will include a proxy statement of MMR that also constitutes a prospectus of the royalty trust. FCX, the royalty trust and MMR also plan to file other relevant documents with the SEC regarding the proposed transaction. INVESTORS ARE URGED TO READ THE PROXY STATEMENT/PROSPECTUS AND OTHER RELEVANT DOCUMENTS FILED WITH THE SEC IF AND WHEN THEY BECOME AVAILABLE, BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION. You may obtain a free copy of the proxy statement/prospectus (if and when it becomes available) and other relevant documents filed by FCX, the royalty trust and PXP with the SEC at the SEC’s website at www.sec.gov . You may also obtain these documents by contacting FCX’s Investor Relations department at (602) 366-8400, or via e-mail at IR@fmi.com; or by contacting MMR’s Investor Relations department at (504) 582-4000, or via email at IR@fmi.com. FCX and MMR and their respective directors and executive officers and other members of management and employees may be deemed to be participants in the solicitation of proxies in respect of the proposed transaction. Information about FCX’s directors and executive officers is available in FCX’s proxy statement dated April 27, 2012, for its 2012 Annual Meeting of Stockholders. Information about MMR’s directors and executive officers is available in MMR’s proxy statement dated April 27, 2012, for its 2012 Annual Meeting of Stockholders. Other information regarding the participants in the proxy solicitation and a description of their direct and indirect interests, by security holdings or otherwise, will be contained in the proxy statement/prospectus and other relevant materials to be filed with the SEC regarding the merger when they become available. Investors should read the proxy statement/prospectus carefully when it becomes available before making any voting or investment decisions. You may obtain free copies of these documents from FCX or MMR using the sources indicated above. This document shall not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. No offering of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the U.S. Securities Act of 1933, as amended.

Transaction Highlights Transaction Highlights 4 Creates A Premier U.S. Based Natural Resource Company Adds High Quality U.S. Oil & Gas Assets to World-Class Mining Portfolio Asset Quality Consistent with Characteristics Sought in Mining Business Large, Long Life, Low Cost, Expandable Enhances Exploration Leverage with Significant Value Potential Complementary Commodity Exposure to Long-Term Global Growth Trends Combined Asset Portfolio Expands Reinvestment Opportunities to Drive Future Growth

Transaction Summary Price FCX to acquire PXP for: 0.6531 shares of FCX common stock and $25.00 in cash, equivalent to total consideration of $50.00 per PXP share based on FCX closing price on December 4, 2012 FCX to acquire MMR for: $14.75 cash plus 1.15 Ultra-Deep Royalty Trust Units per MMR share Premium 39% to PXP’s closing price on December 4, 2012 Cash portion represents 74% to MMR’s closing price on December 4, 2012 Structure 50% stock / 50% cash $3.4 billion cash; 91 million new FCX common shares 100% cash plus Ultra-Deep Royalty Trust Units (2) Transaction Value $17.2 billion (includes assumed debt) $2.4 billion (includes assumed debt) Key Conditions Shareholders’ approval Customary regulatory approvals and conditions Shareholders’ approval Customary regulatory approvals and conditions Timing Closing expected in 2Q 2013 FCX Pro Forma Enterprise Value: $60 billion 1,041 million shares outstanding Total Debt of $20.0 billion (1) Prior to the transaction, FCX and PXP collectively own 36% of MMR (2) Creation of Royalty Trust provides MMR shareholders 5% ORRI for continued participation in potential shallow water, ultra-deep GOM success 5 PXP PXP MMR MMR (1) (1)

$88 $64 $60 $50 $42 $38 $30 $27 $0 $25 $50 $75 $100 $125 $150 XOM CVX COP OXY PF FCX APC APA EOG CHK MRO ($Bn) Pro forma FCX will be the 5 th largest U.S. domiciled natural resource company and the 5 th largest global mining company by enterprise value Source: Company filings, FactSet. Market data as of 12/4/2012. * Includes U.S.-based E&P, mining and coal companies, including integrated companies. Midstream and downstream companies are excluded. ** Excludes precious metal companies $402 $198 $125 $124 $111 $60 $50 $32 $24 $21 $20 $0 $25 $50 $75 $100 $125 $150 BHP GLEN/ XTA RIO VALE PF FCX AAL SCCO TCK AA ANTO ($Bn) $204 Top US Domiciled Resource Companies Top US Domiciled Resource Companies Top Global Mining Companies Top Global Mining Companies A Premier U.S. Based Natural Resource Company A Premier U.S. Based Natural Resource Company 6

Benefits of the Transactions 7 Geographic & Commodity Diversification – 2013e EBITDA (1) North America North America Indonesia Indonesia 31% 31% 29% 29% South America 29% Africa 11% 11% Mining 100% Mining 100% Oil & Gas 26% Oil & Gas 26% Mining 74% Mining 74% North America North America Indonesia Indonesia 23% 23% 48% 48% South America 21% Africa 8% 8% Existing (1) Based on pricing assumptions of $3.50/lb Cu, $1,500/oz Au, $12/lb Mo, $100/bbl Oil (Brent) and $4.50/MMbtu natural gas. e = estimate. See Cautionary Statement. Pro forma High Quality U.S. Resource Base Provides Exposure to Energy Market with Attractive Fundamentals - ~85% of Acquired Revenues from Oil (1) - Favorable Entry Point to Source of Low Cost, Long-term Gas Supply Significant Exploration Upside Strong Margins and Cash Flows to Fund Growth - O&G EBITDA Margins of ~75% (1) Diversification Expands Portfolio of Attractive Investment Opportunities Access to Low-cost Debt Financing

Enhanced Commodity Exposure to Long-term Global Growth Trends Emerging Market Growth and Urbanization Will Continue to Drive Commodity Demand Global Energy Consumption Expected to Grow by >30% by 2035 (1) Global Refined Copper Consumption Expected to Grow by ~60% by 2025 (2) 8 (1) International Energy Administration (2) Brook Hunt Favorable Supply/Demand Fundamentals Expected to Remain Supportive of Future Oil and Copper Prices WTI Copper WTI Oil Price v. Copper Price Note: monthly 30-day averages dated 11/30/12 $30 $50 $70 $90 $110 $1.00 $2.00 $3.00 $4.00 $5.00

History & Corporate Relationships FCX & MMR Spun out of Parent Company Freeport-McMoRan Inc. in Mid-90’s Parent had Long History in Natural Resources Business Including Minerals, Oil & Gas, Fertilizer Management has Significant Minerals and Oil & Gas Experience FCX Invested in MMR in 2010 Through Preferred Stock Transaction PXP Became MMR’s Largest Shareholder in 2010 through an Asset Swap Transaction FCX and PXP Currently Own 36% of MMR 9

Proven Management Team Proven Management Team Complementary Management Teams with Substantial Experience and Track Record of Success in Mining and Oil & Gas Exploration and Development Global Industry Leading Capabilities: - Operational Excellence - Major Project Development - Technological Innovation - Exploration/Engineering - Prudent Environmental Management History of Prudent Financial Management and Execution in Varying Market Environments 10 Established Track Record of Capital Discipline and Focus on Value Creation for Shareholders

Phelps Dodge Case Study Phelps Dodge Case Study 11 $17.6 $7.2 $3.5 $0 $5 $10 $15 $20 Rapid Delevering Consolidated Cash $3.4 $1.6 $3.7 Net Debt/(Cash) $14.2 $5.6 $(0.2) At Time of PD Acquisition in March 2007 9/30/12 ($ in bns) Debt * Based on estimated proven & probable reserve additions as of 12/31/11 before production. December 2007 Highly Successful Transformational Transaction Asset & Geographic Diversification Significant Reserve Additions • +46 billion lbs Cu* Developed World-Class Copper Portfolio • Recognized Industry Leader • Strong Current Production with Substantial Growth Profile • Large Resource Position Successful Integration Effective Management During 2008/09 Economic Crisis

Acquired Assets

Acquired Asset Overview Acquired Asset Overview 13 Onshore • Established California Oil Production • Growing Oil Production Profile in Eagle Ford • Large Natural Gas Resource Position in Haynesville Offshore • Quality Deepwater Portfolio • Established California Oil Production 72% of 2013e Production from Oil with Premium Market Pricing (77% Including Liquids) Industry Leader in Emerging Shallow Water Ultra-Deep, Sub Salt Play Results to Date Indicate Potential for Long-Term, Low-Cost Source of Natural Gas Geologic/Technology Risks have been Significantly Reduced Leading Acreage Position on Leases with Primary Structures Net Unrisked Resource Potential in Excess of 50 Tcfe PXP – Strong Current Cash Flows with Growth MMR – “Franchise” in Highly Prospective Emerging Resource Trend e = estimate. See Cautionary Statement.

High Quality U.S. Oil & Gas Portfolio High Quality U.S. Oil & Gas Portfolio 14 (1) PXP Reserves as of 12/31/11 except for reserves purchased in deepwater acquisitions which are as of 9/30/12; MMR reserves are mid-year 2012 pro forma for 2H12 divestitures. e = estimate. See Cautionary Statement. 575 MMBOE California 38% California 38% 4% 4% Eagle Ford 6% 6% Haynesville 22% Haynesville 22% Other Deepwater GOM 25% Deepwater GOM 25% 5% GOM Shelf Proved Reserves (1) California 23% California 23% Eagle Ford 21% Eagle Ford 21% Haynesville 9% 9% Other 3% 175 MBOE/d Deepwater GOM 33% Deepwater GOM 33% 2013e Production by Region GOM Shelf 11% GOM Shelf 11% Oil 66% Oil 66% Gas 28% Gas 28% 2013e Production Mix NGLs 6% 6% Natural Gas Oil

Oil & Gas Reserves & Resources Oil & Gas Reserves & Resources 15 (MMBOE) PXP (1) MMR (2) Total % Oil/Liquids PXP (1) MMR (2) Total % Oil/Liquids Proved Reserves 538 37 575 64% Probable Reserves 337 11 348 44% Possible Reserves 646 12 658 29% Total 1,521 60 1,581 45% Near-term Resource Potential 1,353 4,981 6,334 Total Potential ~3,800 ~50 Tcfe 3Q12 Daily Production Rate (Mboe/d) ~160 (3) 22 ~182 (1) Reserves as of 12/31/11 except for reserves purchased in deepwater acquisition which are as of 9/30/12 (2) Mid-year 2012 reserves pro forma for 2H12 divestitures; exploration potential includes ~30 Tcfe from near-term onshore/offshore Ultra-Deep prospects (3) Includes ~60 Mboe/d from GOM acquisition which closed on November 30, 2012

Enhanced Exploration Leverage with Multiple Near-term Catalysts Enhanced Exploration Leverage with Multiple Near-term Catalysts 16 Near-term Net Potential of 995 MMBOE • Phobos (~300 MMBOE) to Spud in 4Q12 • On Lease Exploration from BP: 300+ MMBOE • Each 100 MM Barrels = PV-10 of ~$2.5 Billion Pre-tax (1) 3 Wells Drilling Recent Positive Results on Lineham Creek Onshore High Potential Prospect Inventory ~50 Tcfe of Net Potential, Including ~30 Tcfe from Near-term Prospects Each 2 Tcfe Net = PV-10 of ~$2.5 Billion Pre-tax (2) Eagle Ford – 71 MMBOE Haynesville – ~1 Tcfe California – +100 MMBOE Deepwater GOM Shallow Water Ultra-Deep Onshore U.S. (1) Based on $100.00/bbl LLS oil (2) Based on $4.50/MMbtu natural gas

Pro Forma Combined Company Profile

FCX’s Global Footprint FCX’s Global Footprint Copper Copper/Gold/Silver Molybdenum Cobalt Oil/Natural Gas 18 Note: FCX consolidated reserves and annual sales; reserves as of December 31, 2011. Sales figures are based on 2013e. 1 Cu operations: Morenci (85%), Sierrita (100%), Bagdad (100%), Tyrone (100%), Safford (100%), Miami (100%) and Chino (100%); Primary Mo: Henderson (100%) and Climax (100%); Oil & Gas operations: onshore/offshore CA, Madden, Eagle Ford, Haynesville, GOM shelf & Deepwater 2 PXP Reserves as of 12/31/11 except for reserves purchased in deepwater acquisitions which are as of 9/30/12; MMR reserves are mid-year 2012 pro forma for 2H12 divestitures 3 Includes moly sales from South America 4 Cu operations: Candelaria/Ojos del Salado (80%), Cerro Verde (53.6%) and El Abra (51%) Major Operations & Development Projects All major mining assets majority-controlled and operated e = estimate. See Cautionary Statement.

(a) Estimated recoverable proven and probable copper reserves as of 12/31/11 using a long-term average copper price of $2.00/lb; 96 billion pounds net to FCX’s interest. (b) Estimated consolidated contained copper resources as of 12/31/11 using a long-term copper price of $2.20/lb. Mineralized Material is not included in reserves and will not qualify as reserves until comprehensive engineering studies establish their economic feasibility. Accordingly, no assurance can be given that the estimated mineralized material will become proven and probable reserves. See Cautionary Statement. (c) Includes PXP reserves as of 12/31/11 except for reserves purchased in deepwater acquisitions which are as of 9/30/12 and MMR reserves as of mid-year 2012 pro forma for 2H12 divestitures. Excludes results from GOM shelf ultra-deep activities. Combined Reserves and Resources Combined Reserves and Resources 19 Reserves (a) (recoverable copper) Reserves (a) & Mineralized Material (b) at $2.00 Cu price (billion lbs of copper) at $2.20 Cu price Reserves Mineralized Material (b) (contained copper) 115 billion lbs 2P Reserves (c) Reserves & Resource Potential Proved: 575 Proved: 575 ~7,900 923 (million barrels of oil equivalents) Probable: 348 Probable: 348 Possible: 658 Possible: 658 Near-term Potential: ~6,300

20 20 North America * excludes restarts currently in progress; incremental copper per annum ** PT-FI’s share, average per annum * excludes restarts currently in progress; incremental copper per annum ** PT-FI’s share, average per annum 20 Highly Attractive Brownfield Copper Development Projects Highly Attractive Brownfield Copper Development Projects South America Tenke Fungurume Grasberg • 150mm lbs Cu/yr oxide expansion nearing completion • Potential sulfide expansions • Morenci Expansion (225 mm lbs Cu) under way • Potential sulfide expansions (~800 mm lbs Cu) Mill Expansions (t/d) Cerro Verde (360K) 600 $4.4 2016 Morenci (115K) 225 1.4 2014 Tenke (14K) 150 0.9 2013 TOTAL 975 $6.7 Expansion Projects in Progress Incr. Cu (mm lbs/yr) Capital ($ blns) Achieve Full Rates * excludes capitalized interest • • Cerro Verde Expansion (600 mm lbs Cu) under way • Potential El Abra Mill (600 mm lbs Cu) Underground development under way 1.1 bln lbs Cu 1.4 mm ozs Au*

21 Copper Sales (billion lbs) Gold Sales (million ozs) Diverse Production Profile with Strong Growth Diverse Production Profile with Strong Growth 0 1 2 3 4 5 2012e 2013e 2014e 2015e 1.0 1.4 1.8 1.8 0 1 2 2012e 2013e 2014e 2015e 82 90 90 100 0 25 50 75 100 2012e 2013e 2014e 2015e Molybdenum Sales (million lbs) ____ Note: Consolidated copper sales include approximately 705 mm lbs in 2012e, 800 mm lbs in 2013e, * Includes Cerro Verde expansion (2016 full rates) & Morenci mill expansion, targeted for 2014. e = estimate. See Cautionary Statement. Includes Projects Currently Under Way* 3.6 5.0+ 4.5 4.3 0 25 50 75 100 2012e 2013e 2014e 2015e Oil & Gas Sales (MMBOE) ___ Note: Consolidated gold sales include approximately 105k ozs in 2012e, 140k ozs in 2013e, _____ Note: 2012e includes sales from GOM acquisition beginning on December 1, 2012. Oil & Gas Ultra-Deep Expl./Dev. Ultra-Deep Expl./Dev. 46 64 78 94 180k ozs in 2014e and 175k ozs in 2015e for noncontrolling interest. sales estimates include approximately 13.3 MMBOE in 2014e, and 22.6 MMBOE in 2015e from potential success from ultra-deep Shelf exploration and development. 770 mm lbs in 2014e and 875+ mm lbs in 2015e for noncontrolling interest; excludes purchased copper.

Pro Forma Combined Company Financials

2013e 2014e 2015e $0 $5 $10 $15 $20 $25 $3.00 $3.50 $4.00 FCX Pro forma EBITDA, Cash Flows & Capital Expenditures 23 $3.00 $3.50 $4.00 Operating Cash Flow EBITDA CAPEX Copper Prices $1,500 Au/$12 Mo/$100 Oil/$4.50 Gas Copper Prices $1,500 Au/$12 Mo/$100 Oil/$4.50 Gas* * Excludes working capital changes ** See impacts of prices changes for gold, molybdenum, oil and gas on slide 32. 2015/ 2016 Avg. 2013/ 2014 Avg. 2013/ 2014 Avg. (Brent) (Brent) 2015/ 2016 Avg. 2013/ 2014 Avg. 2013/ 2014 Avg. Mining 65% O&G 35% O&G 35% 60% 40% 40% 48% 52% 52% ~45% Increase ~45% Increase

24 Focused and Disciplined Capital Allocation Philosophy Allocate Capital to Low Cost, Long-lived, Expandable Assets Focus on Largest Resources Ensure Potential is Well Understood Establish Short, Medium and Long Term Potential for Primary Assets Quantify Risks Technical, Political, Social, Economic, Market Rigorous Economic Analysis Under Range of Assumptions Protect Downside, Leverage to Upside Prioritize & Rank Opportunities Highest Returns/NPV per $ Invested Manageable Risks Overall Portfolio Balance/Strategic Fit Limit Number of Projects – Focused Management Attention Repay Debt Return Excess Capital to Shareholders Maintain Strong Balance Sheet & Credit Profile

25 Capital Expenditures (1) (US$ billions) Other Mining Major Mining Projects Oil & Gas 3.0 1.6 1.4 1.0 2.5 3.0 2.0 3.3 2.9 $0 $2 $4 $6 $8 2013e 2014e 2015e (1) Capital expenditure estimates include projects in progress. Project spending will continue to be reviewed and revised subject to market conditions. (2) Primarily includes Cerro Verde expansion, Morenci mill expansion and Grasberg underground development. Note: Includes capitalized interest. e= estimate. See Cautionary Statement. $7.1 $7.3 $6.3 (2) (2)

Oil & Gas Cash Flows – Targeted to be Self-funding Oil & Gas Cash Flows – Targeted to be Self-funding 26 $0.0 $1.0 $2.0 $3.0 $4.0 2013e 2014e 2015e Operating Cash Flow CAPEX NOTE: Assumes pricing of $100/bbl Brent crude for oil and $4.50/MMbtu for natural gas e= estimate. See Cautionary Statement. (US$ billions)

$16.3 $7.7 $2.0 ($3.5) -$5 $0 $5 $10 $15 $20 Significant Debt Reduction Significant Debt Reduction Year-End Net Debt at Varying Copper Prices Pro Forma YE 2016e (US$ billions) ’13-’16 Avg. Copper Price Net Debt/’13-’16 Avg. EBITDA $3.00 0.6x $3.50 0.1x $4.00 N/A 9/30/12 Pro Forma 27 Note: Sensitivity assumes $12 Molybdenum, $1,500 Gold, $100 Oil and $4.50 Natural Gas; EBITDA equals operating income plus depreciation, depletion, and amortization e= estimate. See Cautionary Statement.

28 Maintain Strong Balance Sheet & Liquidity Position Reduce Debt Incurred in Acquisitions Using Substantial Cash Flows Generated from Combined Business Invest in Projects with Strong Financial Returns/Capital Discipline Anticipate Continuing Current Common Stock Dividend Rate: $1.25/Share per Annum Board to Review Financial Policy on an Ongoing Basis Committed to Long-standing Tradition of Maximizing Value for Shareholders Financial Policy Financial Policy

Combined Company Highlights Combined Company Highlights Creates A Premier U.S. Based Natural Resources Producer World’s Largest Publicly Traded Copper Producer Significant Producer of Oil, Gold & Molybdenum Significant Long-term Natural Gas Resources Strong Margins & Cash Flows High Quality, Long-lived and Geographically Diverse Assets 29

Appendix

(1) Includes ~ 7 MMcfe/d of natural gas (2) Includes ~ 4 MBOE/d of NGLs (3) Includes ~ 6 MBOE/d of NGLs 2013e Oil & Gas Operating Estimates 2013e Oil & Gas Operating Estimates 31 NOTE: e = estimate. See Cautionary Statement. Oil MBOE/D 40 (1) California Haynesville/ Rocky Mtns/Other 127 GOM Eagle Ford 31 (2) 36 56 (3) 125 2013e Oil & Gas Sales by Region 2013e Oil & Gas Sales by Region Operating Cost: $27/bbl Pricing: Brent Based Operating Cost: $15/bbl Pricing: LLS Operating Cost: $10/bbl Pricing: LLS/NYMEX Operating Cost: $1.65/Mcfe Pricing: NYMEX Gas MMcfe/d Gulf of Mexico Shelf/ Deepwater Gulf of Mexico Shelf/ Deepwater California California Eagle Ford Eagle Ford Rocky Mtns. & Haynesville Rocky Mtns. & Haynesville

Copper: -/+ $0.10/lb $405 $275 Molybdenum: -/+ $1.00/lb $80 $65 Gold: -/+ $50/ounce $75 $45 Oil Sales: (1) + $10/bbl (2) $340 $265 - $10/bbl (3) ($275) ($280) Oil Sales Net of Diesel Costs: (1,4) + $10/bbl $260 $205 - $10/bbl ($195) ($220) Natural Gas: (5) + $1/Mcf $90 $90 - $1/Mcf ($90) ($90) Currencies: (6) +/- 10% $150 $110 Operating Change EBITDA Cash Flow Sensitivities (US$ millions) Sensitivities (US$ millions) 32 (1) Oil sales sensitivity calculated using base Brent price assumption of $106/bbl in 2013, $101/bbl in 2014. (2) Amounts are net of $73 mm change related to hedging loss in 2013/2014; no hedging impacts will be applicable above $126/bbl because of ceilings in place on 2013 collars. (3) Amounts are net of $141 mm changes related to hedging gain; no hedging impacts below $70/bbl because of limits in place on 2013 – 2014 puts and collars. (4) Amounts are net of $80 mm (EBITDA) and $60 mm (c/f) for FCX stand-alone cost impacts of a $10/bbl change in oil prices. (5) Natural gas sensitivity calculated using base NYMEX price assumption of $3.93/MMbtu in 2013 and $4.23/MMbtu in 2014. Amounts net of $38 mm impact from hedging. (6) U.S. Dollar Exchange Rates: 500 Chilean peso, 9,500 Indonesian rupiah, $1.00 Australian dollar, $1.26 Euro, 2.70 Peruvian Nuevo Sol base case assumption. Each +10% equals a 10% strengthening of the U.S. dollar; a strengthening of the U.S. dollar against foreign currencies equates to a cost benefit of noted amounts. NOTE: Based on 2013e/2014e averages. Operating cash flow amounts exclude working capital changes. e = estimate. See Cautionary Statement. 2013e/2014e

Oil & Natural Gas Hedging Positions 33 Oil Indexed to Brent Swaps Puts Collars 15% Unhedged Puts 15% Unhedged Puts 84k bbls/d $90 floor $70 limit $6.90 ADP 43% Unhedged Natural Gas Indexed to Henry Hub 2013 2014 2015 Swaps – 100/d @ $4.09 117k bbls/d 129k bbls/d 147k bbls/d* 2013 2014 2015 40k bbls/d @ $109.23 30k bbls/d $95 floor $75 limit $6.09 ADP 75k bbls/d $90 floor $70 limit $5.74 ADP 5k bbls/d $100 floor $80 limit $7.11 ADP 25k bbls/d $100 floor $80 limit $124 Ceiling 5k bbls/d $90 floor $70 limit $126 Ceiling 13k bbls/d $100 floor $80 limit $6.80 ADP 17k bbls/d $90 floor $70 limit $6.25 ADP Swaps – 110/d @ $4.27 No Hedges NOTE: As of October 19, 2012; ADP = average deferred premium. * Estimated annual production for MMR & PXP. See Cautionary Statement.

34 Pro Forma Balance Sheet & Credit Statistics Pro Forma Balance Sheet & Credit Statistics Pro Forma September 30, 2012 Capitalization Pro Forma September 30, 2012 Capitalization (US$ billions) Amount % Cash and Cash Equivalents $ 3.7 -- Revolver (1) $ 0.0 0% FCX New Sr. Unsecured Notes 5.5 9% FCX New (Unsecured) Term Loans – (Refinance PXP Secured Debt) 4.0 7% FCX Sr. Unsecured Notes 3.0 5% FCX Subsidiary Public Debt 0.4 1% Other Debt 0.2 0% PXP Existing Sr. Unsecured Notes 6.6 11% MMR Existing Sr. Unsecured Notes 0.3 0% Total Debt $20.0 33% Market Value of Existing Equity (2) $39.8 67% Total Market Capitalization $59.8 100% Total Debt / Market Capitalization 33.5% 2013e Credit Statistics Debt / EBITDA (3) 1.7x EBITDA (3) / Interest (4) 11.1x ________ (1) Revolving Credit Facility commitment of $3.0 billion available to FCX (2) Based on 1.041 billion pro forma shares outstanding and FCX’s closing stock price of $38.28 on December 4, 2012 (3) Based on 2013e EBITDA of $11.8 billion (Based on pricing assumptions of $3.50/lb Cu, $1,500/oz Au, $12/lb Mo, $100/bbl Oil (Brent) and $4.50/MMbtu natural gas.) (4) Based on 2013e Interest of $1.1 billion (includes capitalized interest) e = estimate. See Cautionary Statement.

35 FCX Pro Forma Debt Maturities 9/30/12 $0 $2,000 $4,000 $6,000 $8,000 $10,000 $12,000 2013 2014 2015 2016 2017 2018 2019 2020 2021 Thereafter $300 $500 $4,500 $400 (US$ millions) $1,800 $10,600 PXP 6.75% & 6.875% Sr. Notes New Term Loans Pro Forma Total Debt & Cash at 9/30/12 New Term Loans $4.0 New Notes 5.5 Public Debt 10.3 Other Debt 0.2 Total Debt $20.0 Consolidated Cash $3.7 (US$ billions) New FCX Sr. Notes $200 $1,100 $600 MMR 11.875% Sr. Notes FCX 1.4% Sr. Notes PXP 10% Sr. Notes FCX 2.15% Sr. Notes PXP 7.625% Sr. Notes PXP 6.125% & 8.625% Sr. Notes PXP 6.625% Sr. Notes PXP 7.625% & 6.5% Sr. Notes FCX 3.55% Sr. Notes PD Sr. Notes $0 FCX Sr. Notes MMR Sr. Notes PXP Sr. Notes Other Debt New FCX Debt

Royalty Trust Terms Royalty Trust Terms 5% Gross Royalty Override on MMR's Ultra-Deep Exploration Portfolio 20-Year Term • Non-callable for First 5 Years • Callable at FCX’s Option in Years 6-20 at $10 per Unit Shares Risk/Upside Between FCX and MMR Shareholders MMR Shareholders Would Receive 1.15 Units per MMR Share • Units FCX Would Otherwise Receive on its MMR Convertible Will be Issued to Other MMR Shareholders as Merger Consideration Trust Listed for Trading 36