Will Freeport-McMoRan exit the oil and gas sector again?

Freeport-McMoRan (FCX) is reviewing strategic alternatives for its oil and gas business following discussions with shareholders, and has announced that Board changes have been agreed with activist investor Carl Icahn – one of FCX's largest shareholders – in preparation for a potential spinoff. The conglomerate has been hit hard by the fall in oil and copper prices, with market value down almost 70% year-on-year. These latest announcements follow a series of moves made to address the near-term funding gap, including a lower dividend, cuts to the 2016 budget, and a US$1 billion equity raising.