Sentinel Peak Resources, LLC completed the acquisition of onshore California oil and gas properties from Freeport-McMoRan, Inc..
December 29, 2016
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Sentinel Peak Resources, LLC entered in an agreement to acquire onshore California oil and gas properties from Freeport-McMoRan, Inc. (NYSE:FCX) for approximately $740 million on October 14, 2016. Sentinel Peak Resources will pay $592 million at closing and additional consideration of $50 million per annum in each of 2018, 2019 and 2020 if the price of Brent crude oil averages $70 per barrel or higher in that calendar year. The purchaser will also assume future abandonment obligations associated with the properties, which had a book value of approximately $0.1 billion at June 30, 2016. Revenues from these properties totaled $0.4 billion for the twelve month period ended June 30, 2016. The transaction, subject to customary closing conditions. As on November 15, 2016, the transaction got approved by Federal Trade Commission. The transaction is expected to close in fourth-quarter 2016. Net cash proceeds will be used for debt repayment.
Keith Fullenweider, Bryan Loocke, Katherine Rollins, Caroline Kuehn, Brian Moss, James Longhofer, John Lynch, Todd Way, Brian Russell, Sean Becker, Stephen Jacobson, Kristy Fields, Larry Nettles and Billy Vigdor of Vinson & Elkins LLP acted as legal advisors to Quantum Energy Partners, which is a investor in Sentinel Peak Resources LLC. Lazard Ltd. acted as financial advisor for Freeport-McMoRan Inc. JPMorgan Chase & Co. acted as the financial advisor for Freeport-McMoRan Inc.
Sentinel Peak Resources, LLC completed the acquisition of onshore California oil and gas properties from Freeport-McMoRan, Inc. (NYSE:FCX) on December 30, 2016.
Freeport-McMoRan Inc. specializes in the exploration and operation of copper and gold mines located primarily in the United States, Peru, Chile, Indonesia and Congo. Net sales break down by family of products as follows:
- copper (74.6%): refined copper and copper concentrates (4.1 billion ounces sold in 2023);
- gold (14.5%): 1,713,000 ounces sold;
- molybdenum (8.4%): 1.3 billion ounces sold;
- other (2.5%).
Net sales are distributed geographically as follows: the United States (31.8%), Switzerland (17.4%), Japan (15%), Spain (5.5%), Singapore (5.1%), China (4.7%), Indonesia (3.3%), Germany (3.1%), Chile (1.9%), the United Kingdom (0.7%), and other (11.5%).
FREEPORT-MCMORAN INC. 
