Freeport-McMoRan may spin off oil and gas business

PHOENIX, Arizona -- Freeport-McMoRan is undertaking a review of strategic alternatives for its oil and gas business, the Phoenix-based company said.

According to a statement released Tuesday, Freeport is reviewing a number of options, with the aim of making Freeport-McMoRan Oil and Gas (FM O&G) self-funding.

Earlier this year, Freeport indicated that it would be willing sell a minority interest in its oil and gas business in an initial public offering, and, according to the statement, the offering remains one of the options under review. 

"Other alternatives under consideration include a spinoff of the oil and gas business to its shareholders, joint venture arrangements and further spending reductions," the company said.

Freeport-McMoRan has also reduced the size of its board from 16 members to nine. In preparation for considering a separation of the oil and gas business, five directors have left the Freeport-McMoRan board and been appointed to the board of FM O&G.