All apparent high bids are subject to a review process by the BOEM before they can be awarded. If awarded, these leases will add over 65,000 gross acres to McMoRan’s leasehold inventory, which is approximately 900,000 gross acres currently, including over 200,000 gross acres associated with the shallow water, ultra-deep plays.

REVENUES

McMoRan’s second-quarter 2012 oil and gas revenues totaled $87.2 million, compared to $155.5 million during the second quarter of 2011. During the second quarter of 2012, McMoRan’s sales volumes totaled 8.3 Bcf of gas, 505,900 barrels of oil and condensate and 1.5 Bcfe of natural gas liquids, compared to 11.6 Bcf of gas, 778,400 barrels of oil and condensate and 1.6 Bcfe of natural gas liquids in the second quarter of 2011. McMoRan’s second-quarter comparable average realizations for gas were $2.44 per thousand cubic feet (Mcf) in 2012 and $4.71 per Mcf in 2011; for oil and condensate McMoRan received an average of $109.37 per barrel in second-quarter 2012 compared to $109.08 per barrel in second-quarter 2011; for natural gas liquids McMoRan received an average of $7.93 per Mcfe in second quarter 2012 compared to $9.64 per Mcfe in second quarter 2011.

CASH, LIQUIDITY AND CAPITAL EXPENDITURES

At June 30, 2012, McMoRan had $287.1 million in cash. Total debt was $555.9 million at June 30, 2012, including $255.9 million in convertible securities. At June 30, 2012, McMoRan had no borrowings and $100 million of letters of credit issued under its revolving credit facility. McMoRan and its bank group are completing a semi-annual redetermination of the borrowing base.

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.

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