NEW YORK (TheStreet) -- Freeport-McMoRan (FCX) - Get Report stock is rising by 4.96% to $4.13 in early-morning trading on Tuesday, after the company reported its 2015 fourth quarter financial results and announcing plans to reduce its debt before the market open.
Although the company's fourth quarter loss widened and revenue tumbled, Freeport-McMoRan this morning pledged to control costs and consider asset sales and joint ventures to reduce its hefty debt load, which exceeded $20 billion in the third quarter.
The natural resource company is evaluating alternatives for its oil and gas business as well as possible deals involving mining assets, and expects to move forward with these initiatives during the first half of 2016.
Additionally, the company achieved its goal of raising $2 billion from the sale of equity, including $1 billion during the fourth quarter.
Freeport-McMoRan has been reducing its costs and attempting to generate cash as metals and energy prices have plummeted, pushing shares down roughly 42% during the past month.
For the fourth quarter, the company reported an adjusted loss of 2 cents per share, down from adjusted earnings of 26 cents per share for the year-ago period. Revenue plunged by 28% to $3.8 billion.
Analysts surveyed by Thomson Reuters had forecast for a loss of 17 cents per share on revenue of $3.84 billion.
Lower commodities prices prompted Freeport-McMoRan to reduce its consolidated operating cash flows expectations to $3.4 billion from $6.8 billion.
Separately, TheStreet Ratings team rates the stock as a "sell" with a ratings score of D.
Freeport-McMoRan's weaknesses can be seen in multiple areas, such as its deteriorating net income, generally high debt management risk, disappointing return on equity, weak operating cash flow and generally disappointing historical performance in the stock itself.
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.