Freeport-McMoRan (FCX) Stock Higher After Quitting Oil IPO
NEW YORK (TheStreet) -- Shares of Freeport-McMoRan (FCX) - Get Report are up by 3.07% to $11.42 in late-afternoon trading Monday, after the company canceled plans to take its oil-and-gas unit public.
"At this time the company has determined not to proceed with the initial public offering contemplated by the registration statement," the company said in a filing.
Freeport will also cut a quarter of the energy workforce.
The formal withdrawal of the public offering comes two weeks after the natural resource company announced its agreement to sell its stake in African copper operating TF Holdings to China Molybdenum for $2.64 billion.
Freeport has been selling assets and slashing spending as commodity prices have tumbled in recent years. The company had $20.8 billion in debt at the end of the 2016 first quarter.
Separately, TheStreet Ratings team rates the stock as a "sell" with a ratings score of D.
Freeport's weaknesses include its generally high debt management risk, disappointing return on equity, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.
You can view the full analysis from the report here: FCX
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.
