NEW YORK (TheStreet) -- Shares of Freeport-McMoRan (FCX) are gaining 4.03% to $20.92 after announcing a potential initial public offering of its wholly-owned subsidiary, Freeport-McMoRan Oil & Gas Inc.
The company filed plans for an IPO of up to $100 million in common shares to fund a capital program and for other purposes.
The IPO plan comes roughly two years after Freeport-McMoRan acquired Plains Exploration & Production Co. and McMoRan Exploration Co. in deals valued at a combined $9 billion, The Wall Street Journal noted.
Freeport is seeking to optimize the funding of the oil and gas projects it's developing, which include wells in the Gulf of Mexico, according to Bloomberg.
Freeport-McMoRan is a natural resource company with an industry portfolio of mineral assets, oil and natural gas resources, and a production profile.
Separately, TheStreet Ratings team rates FREEPORT-MCMORAN INC as a Sell with a ratings score of D+. TheStreet Ratings Team has this to say about their recommendation:
"We rate FREEPORT-MCMORAN INC (FCX) a SELL. This is driven by several weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company'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."
Highlights from the analysis by TheStreet Ratings Team goes as follows: