Mark Holder
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Mark Holder in Out Fox The $treet,

Freeport-McMoRan: What Oil & Gas Problem?

Freeport-McMoRan (FCX) traded down to $3.50 in large due to the struggles in the oil and gas business along with plunging oil prices to start the year. Now the stock is at $12.50 in part due to reality returning to the cash flow position. 

The primary copper miner is now on pace to generate 2017 EBITDA for O&G in excess of the forecasted capex of $500 million. With the strong cash flows of copper at $2.25/lb, Freeport-McMoRan is positioned to continue rallying as long as the oil and gas division doesn't detract from the cash flows. 

Disclosure: Long FCX