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McMoRan Exploration Co. Reports Third-Quarter/Nine-Month 2012 Results

On September 13, 2012 McMoRan completed an exchange offer for up to $68.2 million aggregate principal amount of its 5¼% Convertible Senior Notes due 2012 (“existing notes”). A total of $67.8 million of the existing notes were accepted for exchange for an equal principal amount of newly issued 5¼% Convertible Senior Notes due 2013 (“new notes”). McMoRan repaid the remaining $0.3 million of the existing notes, which matured on October 6, 2012. The terms of the new notes are substantially identical to the terms of the existing notes, except that the new notes have a maturity date of October 6, 2013.

McMoRan has approximately 162 million shares of common stock outstanding. Assuming conversion of McMoRan’s remaining outstanding 8% Convertible Perpetual Preferred Stock, 4% Convertible Senior Notes, 5¾% Convertible Perpetual Preferred Stock and 5¼% Convertible Senior Notes, McMoRan would have approximately 224 million common shares outstanding on a fully converted basis.

Capital expenditures totaled $103.4 million for the third quarter of 2012 and $415.6 million for the nine-months ended September 30, 2012. McMoRan expects 2012 capital expenditures to approximate $550 million, including approximately 50 percent on exploration and 50 percent on development. McMoRan is reviewing plans for its 2013 capital expenditures budget. Capital spending will be driven by the results of current exploration and development activities, opportunities on new exploration projects, the availability of financing and general market factors.

Net abandonment expenditures, which include scheduled conventional and hurricane-related work, totaled $20.6 million for the third quarter of 2012 and $48.2 million for the nine-months ended September 30, 2012. Abandonment expenditures are expected to approximate $80 million in 2012.


Freeport-McMoRan Energy LLC, a subsidiary of McMoRan, and United LNG are engaged in efforts to utilize McMoRan’s Main Pass Energy Hub™ (MPEH™) as a potential Deepwater Port facility/terminal to receive, store and condition natural gas for offloading to Floating Liquefaction Storage & Offloading vessels located on-site for export. MPEH™ is located offshore in the GOM 37 miles east of Venice, Louisiana on Main Pass Block 299.

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