NEW YORK (TheStreet) -- Shares of Freeport-McMoRan Inc. (FCX) are down -1.80% to $36.04 after it was reported that the natural resources company contacted potential buyers about selling its onshore oil wells in California, which could be worth up to $5 billion, sources told Reuters.
The company, which owns mines and oil wells worldwide, has been actively pursuing asset sales in order to reduce debt, which is over $20 billion.
Freeport is in the early stages of approaching prospective buyers, which could include other oil companies as well as private equity firms, sources added.
TheStreet Ratings team rates FREEPORT-MCMORAN INC as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:
"We rate FREEPORT-MCMORAN INC (FCX) a HOLD. The primary factors that have impacted our rating are mixed some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, reasonable valuation levels and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and generally higher debt management risk."
Highlights from the analysis by TheStreet Ratings Team goes as follows: