Freeport-McMoRan Completes Plains Deal, $1-per-Share Dividend on Its Way

Gold and copper miner Freeport-McMoRan  (NYSE: FCX  ) has completed its acquisition of Plains Exploration & Production (UNKNOWN: PXP.DL2  ) and, as previously planned, the board of directors says it will pay investors a supplemental dividend of $1.00 per share that is in addition to the regular quarterly payout of $0.3125 per share.

The Freeport board announced today that the supplemental dividend is payable on July 1 to the holders of record at the close of business on June 14 and will cost approximately $1 billion based on the number of shares outstanding.  When paid, this supplemental dividend will be the 11th supplemental dividend paid by Freeport since 2004. Shareholders of Plains will receive a $3-per-share cash dividend today.

Freeport tags the Plains transacation at $16.3 billion, including:

  • The assumption of $9.7 billion of PXP debt.
  • The payment of approximately $3.3 billion in cash.
  • The issuance of approximately 91 million shares of FCX common stock, equivalent to a value of approximately $2.9 billion based on the closing price of FCX’s common stock on May 30.
  • The value of the $3-per-share PXP special cash dividend.

Freeport's regular dividend payment equates to a $1.25-per-share annual dividend, yielding 4.1% based on the closing price of Freeport-McMoRan's stock on May 30.

FCX Dividend Chart

FCX Dividend data by YCharts. Chart reflects payment of supplemental dividends, but not the just-announced one.

link


Read/Post Comments (0) | Recommend This Article (4)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2463272, ~/Articles/ArticleHandler.aspx, 10/22/2014 9:34:58 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement