Freeport’s Energy Purchase Pushes Stock to Four-Year Low

Bloomberg reported that Freeport-McMoRan Copper & Gold Inc.’s purchase of Plains Exploration & Production Co. (PXP) and McMoRan Exploration Co. (MMR) plunged their stock by 16 percent on Tuesday, to a four-year low.

As quoted in the market report:

Freeport’s return to energy 18 years after it exited that business by spinning off McMoRan illustrates the challenge facing some of the biggest miners. While Freeport’s mines are still profitable, it’s a matter of contention how the Phoenix- based company spends that cash. Large, undeveloped deposits are increasingly scarce and investors have grown unforgiving of dealmaking missteps and construction delays.

To view the whole Bloomberg report, click here.