Freeport-McMoRan Inc. (NYSE: FCX) said Dec. 9 it has cut its 2016 capex budget for its oil and gas operations by 10% to $1.8 billion, and slashed its 2017 budget by 40% to $1.2 billion.
The company also suspended its annual dividend of 20 cents per share to save cash amid a slump in commodity prices.
The dividend suspension is expected to result in annual cost savings of about $240 million and enhance its liquidity, the company said.
Freeport, under pressure from activist investor Carl Icahn, further reduced its capital spending plans for 2016 and 2017 on Dec. 9.
The company also said it was looking at other financing alternatives, including a potential sale of minority interests in certain mining assets.
The company, in October, said it will add two new directors to its board under an agreement with Carl Icahn. Icahn owned 8.8% of Freeport as of Sept. 22.
Shares of the miner, which were up marginally at $6.87 in premarket trade, have fallen 71% this year. They closed at $6.74 on the New York Stock Exchange on Dec. 8.
Freeport has significant U.S. oil and natural gas assets in the Deepwater Gulf of Mexico, onshore and offshore California and in the Haynesville natural gas shale. It also has a position in the Inboard Lower Tertiary/Cretaceous natural gas trend onshore in South Louisiana.
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