SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the Quarter Ended September 30, 1996
Commission File Number: 1-9164
Freeport-McMoRan Resource Partners, Limited Partnership
Organized in Delaware 72-1067072
(IRS Employer Identification No.)
1615 Poydras Street, New Orleans, Louisiana 70112
Registrant's telephone number, including area code: (504) 582-4000
Indicate by check mark whether the registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the Securities
Exchange Act of 1934 during the preceding 12 months (or for such
shorter period that the registrant was required to file such reports),
and (2) has been subject to such filing requirements for the past 90
days. Yes X No
---
<PAGE> 1
FREEPORT-McMoRan RESOURCE PARTNERS, LIMITED PARTNERSHIP
TABLE OF CONTENTS
Page
Part I. Financial Information
Financial Statements:
Condensed Balance Sheets 3
Statements of Income 4
Statements of Cash Flow 5
Notes to Financial Statements 6
Remarks 6
Report of Independent Public Accountants 7
Management's Discussion and Analysis of
Financial Condition and Results of
Operations 8
Part II. Other Information 12
Signature 13
Exhibit Index E-1
<PAGE> 2
FREEPORT-McMoRan RESOURCE PARTNERS, LIMITED PARTNERSHIP
Part I. FINANCIAL INFORMATION
Item 1. Financial Statements.
<TABLE>
FREEPORT-McMoRan RESOURCE PARTNERS, LIMITED PARTNERSHIP
CONDENSED BALANCE SHEETS (Unaudited)
<CAPTION>
September 30, December 31,
1996 1995
---------- ----------
(In Thousands)
<S> <C> <C>
ASSETS
Current assets:
Cash and short-term investments $ 21,398 $ 22,508
Accounts receivable 45,623 81,101
Inventories 140,382 119,010
Prepaid expenses and other 6,081 3,692
---------- ----------
Total current assets 213,484 226,311
Property, plant and equipment, net 919,615 949,131
Other assets 47,984 53,663
---------- ----------
Total assets $1,181,083 $1,229,105
========== ==========
LIABILITIES AND PARTNERS' CAPITAL
Accounts payable and accrued
liabilities $ 114,624 $ 127,020
Long-term debt, less current portion 390,173 384,241
Reclamation and mine shutdown
reserves 109,857 112,788
Accrued postretirement benefits and
other liabilities 195,817 200,590
Partners' capital 370,612 404,466
---------- ----------
Total liabilities and partners'
capital $1,181,083 $1,229,105
========== ==========
</TABLE>
The accompanying notes are an integral part of these financial
statements.
<PAGE> 3
<TABLE>
FREEPORT-McMoRan RESOURCE PARTNERS, LIMITED PARTNERSHIP
STATEMENTS OF INCOME (Unaudited)
<CAPTION>
Three Months Ended Nine Months Ended
September 30, September 30,
------------------------ ---------------------
1996 1995 1996 1995
---------- ---------- ---------- ---------
(In Thousands, Except Per Unit Amounts)
<S> <C> <C> <C> <C>
Revenues $ 222,554 $ 242,908 $ 721,903 $ 730,376
Cost of sales:
Production and
delivery 153,602 170,766 495,768 509,134
Depreciation and
amortization 9,523 10,831 29,298 31,445
---------- ---------- ---------- ----------
Total cost of
sales 163,125 181,597 525,066 540,579
Gain on IMC-Agrico
investment - - (11,917) -
Exploration
expenses 2,000 - 2,000 -
General and
administrative
expenses 11,033 26,226 40,999 51,441
---------- ---------- ---------- ----------
Total costs and
expenses 176,158 207,823 556,148 592,020
---------- ---------- ---------- ----------
Operating income 46,396 35,085 165,755 138,356
Interest expense,
net (8,468) (7,884) (25,243) (23,461)
Other income
(expense), net (74) (366) (460) (802)
---------- ---------- ---------- ----------
Net income $ 37,854 $ 26,835 $ 140,052 $ 114,093
========== ========== ========== ==========
Net income per unit $.37 $.26 $1.35 $1.10
==== ==== ===== =====
Average units
outstanding 103,466 103,466 103,466 103,495
======= ======= ======= =======
Distributions paid
per publicly held
unit $.60 $.60 $1.835 $1.815
==== ==== ====== ======
</TABLE>
The accompanying notes are an integral part of these financial
statements.
<PAGE> 4
<TABLE>
FREEPORT-McMoRan RESOURCE PARTNERS, LIMITED PARTNERSHIP
STATEMENTS OF CASH FLOW (Unaudited)
<CAPTION>
Nine Months Ended
September 30,
------------------------
1996 1995
---------- ----------
(In Thousands)
<S> <C> <C>
Cash flow from operating activities:
Net income $ 140,052 $ 114,093
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation and amortization 29,298 31,445
Gain on IMC-Agrico investment (11,917) -
Exploration expenses 2,000 -
Cash distribution from IMC-Agrico
in excess of interest in capital 36,610 31,751
Reclamation and mine shutdown
expenditures (9,321) (9,215)
(Increase) decrease in working
capital, net of effect of
acquisitions:
Accounts receivable 33,752 (6,347)
Inventories (22,629) 5,617
Prepaid expenses and other (2,427) (3,875)
Accounts payable and accrued
liabilities (10,328) 39,393
Other 12,917 11,394
---------- ----------
Net cash provided by operating
activities 198,007 214,256
---------- ----------
Cash flow from investing activities:
Capital expenditures (33,009) (21,410)
Sale of assets and other 4,000 (1,423)
---------- ----------
Net cash used in investing
activities (29,009) (22,833)
---------- ----------
Cash flow from financing activities:
Distributions to partners (173,906) (154,124)
Repayments of debt (144,033) (21,242)
Proceeds from sale of 7% Senior
Notes 147,831 -
Purchase of Partnership units - (2,061)
---------- ----------
Net cash used in financing
activities (170,108) (177,427)
---------- ----------
Net increase (decrease) in cash
and short-term investments (1,110) 13,996
Cash and short-term investments
at beginning of year 22,508 9,859
---------- ----------
Cash and short-term investments
at end of period $ 21,398 $ 23,855
========== ==========
</TABLE>
The accompanying notes are an integral part of these financial
statements.
<PAGE> 5
FREEPORT-McMoRan RESOURCE PARTNERS, LIMITED PARTNERSHIP
NOTES TO FINANCIAL STATEMENTS
1. LONG-TERM DEBT
In February 1996, Freeport-McMoRan Resource Partners, Limited
Partnership (FRP) sold publicly $150 million of its 7% Senior Notes
due 2008. Net proceeds of $147.8 million were used to reduce bank
indebtedness. Following the sale of the 7% Senior Notes, the
committed amount under FRP's revolving credit facility was reduced
from $400 million to $300 million. As of September 30, 1996, $201.0
million was available under the credit facility.
2. INVESTMENT IN IMC-AGRICO COMPANY
In March 1996, FRP and its joint venture partner in IMC-Agrico
increased FRP's ownership in IMC-Agrico by 0.85 percent. As a result,
FRP recognized a gain of $11.9 million resulting from the increased
share of IMC-Agrico's net assets.
3. RATIO OF EARNINGS TO FIXED CHARGES
The ratio of earnings to fixed charges for the first nine months of
1996 and 1995 was 6.0 to 1 and 5.3 to 1, respectively. For this
calculation, earnings are income from continuing operations before
fixed charges. Fixed charges include interest and that portion of
rent deemed representative of interest.
-------------------
Remarks
The information furnished herein should be read in conjunction with
FRP's financial statements contained in its 1995 Annual Report to
unitholders and incorporated by reference in its Annual Report on Form
10-K.
The information furnished herein reflects all adjustments which are,
in the opinion of management, necessary for a fair statement of the
results for the periods. All such adjustments are, in the opinion of
management, of a normal recurring nature.
<PAGE> 6
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
To the Partners of Freeport-McMoRan Resource
Partners, Limited Partnership:
We have reviewed the accompanying condensed balance sheet of Freeport-
McMoRan Resource Partners, Limited Partnership (the Partnership), a
Delaware Partnership, as of September 30, 1996, and the related
statements of operations for the three-month and nine-month periods
ended September 30, 1996 and 1995, and the statements of cash flow for
the nine-month periods ended September 30, 1996 and 1995. These
financial statements are the responsibility of the General Partner's
management. We did not review the interim financial information of
IMC-Agrico Company (the Joint Venture). The Partnership's share of
the Joint Venture constitutes 49 percent of consolidated total assets
as of September 30, 1996, and 82 percent and 79 percent of the
Partnership's consolidated total revenues for the nine-month periods
ended September 30, 1996 and 1995, respectively. Those statements
were reviewed by other accountants whose report covering their review
has been furnished to us.
We conducted our review in accordance with standards established by
the American Institute of Certified Public Accountants. A review of
interim financial information consists principally of applying
analytical procedures to financial data and making inquiries of
persons responsible for financial and accounting matters. It is
substantially less in scope than an audit conducted in accordance with
generally accepted auditing standards, the objective of which is the
expression of an opinion regarding the financial statements taken as a
whole. Accordingly, we do not express such an opinion.
Based on our review and the report of other accountants, we are not
aware of any material modifications that should be made to the
financial statements referred to above for them to be in conformity
with generally accepted accounting principles.
We have previously audited, in accordance with generally accepted
auditing standards, the balance sheet of Freeport-McMoRan Resource
Partners, Limited Partnership as of December 31, 1995, and the related
statements of operations, cash flow and changes in partners' capital
for the year then ended (not presented herein), and in our report
dated January 23, 1996, based on our audit and the report of other
auditors, we expressed an unqualified opinion on those financial
statements. In our opinion, the information set forth in the
accompanying condensed balance sheet as of December 31, 1995, is
fairly stated, in all material respects, in relation to the balance
sheet from which it has been derived.
ARTHUR ANDERSEN LLP
New Orleans, Louisiana
October 22, 1996
<PAGE> 7
Item 2. Management's Discussion and Analysis of Financial Condition
and Results of Operations.
RESULTS OF OPERATIONS
Third Quarter Nine Months
------------------------ ------------------------
1996 1995 1996 1995
---------- ---------- ---------- ----------
(In Millions, Except Per Unit Amounts)
Revenues $ 222.6 $ 242.9 $ 721.9 $ 730.4
Operating income 46.4 35.1 165.8 138.4
Net income 37.9 26.8 140.1 114.1
Net income per unit .37 .26 1.35 1.10
Operating income of Freeport-McMoRan Resource Partners, Limited
Partnership (FRP) for the 1996 periods benefited from higher average
realizations on its phosphate fertilizer, phosphate rock and oil
sales. The animal feed ingredients business, acquired in October
1995, also contributed to FRP's higher operating income. Offsetting
the impact of these positive factors were lower production and sales
volumes for phosphate fertilizer, phosphate rock, sulphur and oil.
The current quarter includes a $2.0 million charge for oil and gas
exploration costs. The nine-month 1996 period included an $11.9
million gain from the increase in FRP's ownership of IMC-Agrico
Company (Note 2) and charges totaling $3.0 million representing asset
valuations at IMC-Agrico. In the 1996 periods, significantly lower
costs for stock appreciation rights were allocated from Freeport-
McMoRan Inc. (FTX).
Depreciation and amortization for the current quarter decreased
$1.3 million from the 1995 period amount. This reduction is primarily
attributable to a decline of $0.4 million from Main Pass oil
operations and $0.6 million from sulphur activities caused by lower
sales volumes and a $0.4 million decrease related to FRP's
disproportionate interest in the IMC-Agrico cash distributions,
partially offset by depreciation expense of $0.4 million associated
with the animal feed ingredients operations. For the nine-month 1996
period, depreciation and amortization decreased $2.1 million from the
1995 period, primarily reflecting reductions of $1.9 million from Main
Pass oil operations, $1.0 million from phosphate rock activities, and
$0.4 million from sulphur activities caused by lower sales volumes.
These decreases were partially offset by depreciation expense of $1.4
million associated with the animal feed ingredients business.
General and administrative expenses for the third-quarter and
nine-month 1996 periods declined $15.2 million and $10.4 million,
respectively, from the 1995 period amounts primarily because of the
significantly higher stock appreciation rights costs charged by FTX in
1995 ($14.4 million and $12.9 million higher in the comparative third-
quarter and nine-month periods) resulting from the significant
increase in FTX's stock price during the third quarter of 1995. The
1996 periods include general and administrative costs associated with
the animal feed ingredients operations, whereas the 1995 period
included a $1.2 million charge for the reorganization of IMC-Agrico's
marketing function.
Agricultural Minerals Operations - FRP's agricultural minerals
operations, which include its fertilizer and phosphate rock operations
(conducted through IMC-Agrico) and its sulphur business, reported
third-quarter 1996 operating income of $48.3 million on revenues of
$213.3 million compared with operating income of $40.9 million on
revenues of $234.7 million for the 1995 period. Operating income for
the first nine months of 1996 was $174.6 million on revenues of $693.5
million compared with operating income of
<PAGE> 8
$145.1 million on revenues of $703.6 million for the year-ago period.
Significant items impacting operating income follow (in millions):
Third Quarter Nine Months
------------- -----------
Agricultural minerals operating
income -1995 $ 40.9 $ 145.1
---------- ----------
Increases (decreases):
Sales volumes (36.7) (85.4)
Realizations 16.9 76.4
Other (1.6) (1.1)
---------- ----------
Revenue variance (21.4) (10.1)
Cost of sales 17.1a 13.4a
Gain on IMC-Agrico investment - 11.9
General and administrative 11.7b 14.3
---------- ----------
7.4 29.5
---------- ----------
Agricultural minerals operating
income -1996 $ 48.3 $ 174.6
========== ==========
a. Includes a reduction to depreciation of $6.4 million and $6.0
million for the third quarter of 1996 and 1995, respectively, and
$22.2 million and $22.1 million for the nine-month period of 1996 and
1995, respectively, caused by FRP's disproportionate interest in IMC-
Agrico cash distributions. The nine-month 1996 period also includes
$3.0 million of asset valuation charges from IMC-Agrico.
b. The third-quarter 1995 period includes an $8.5 million charge for
stock appreciation rights costs.
FRP's third-quarter 1996 phosphate fertilizer sales volumes were
12 percent lower than those in the 1995 period, with IMC-Agrico's
realization for diammonium phosphate (DAP), its principal fertilizer
product, averaging 4 percent higher. The third quarter of 1996 began
with unseasonably high domestic shipments of phosphate fertilizers and
sizable purchases of DAP by India and Pakistan. These factors led
IMC-Agrico to resume full capacity operations at its New Wales,
Florida plant and to commence production at its Taft, Louisiana plant
in July. A lull in domestic demand late in the quarter, combined with
record industrywide production, prompted IMC-Agrico to suspend
temporarily production from its Taft plant at quarter-end. Unit
production costs were slightly less than year-ago amounts because of
lower costs for ammonia and sulphur, offset by higher rock production
and natural gas costs. Unit production costs for the near term will
be impacted by the significant rise in ammonia prices which occurred
late in the current quarter and has continued into the fourth quarter
of 1996.
The long-term outlook for the phosphate fertilizer industry
remains bright. A rising world population combined with increasing
grain demand on a per capita basis will necessitate higher
agricultural output, and in the process, a higher level of fertilizer
use. Strong demand growth projected in Asia and Latin America is
expected to outpace capacity developments and require additional
supplies beyond the global industry's current capability.
Additionally, the company feels higher prices and operating margins
are required before new phosphate projects are initiated. Weather and
government policies will continue to cause annual fluctuations in the
overall agricultural and fertilizer supply and demand situation, as
witnessed over the past year.
FRP's third-quarter 1996 phosphate rock sales volumes declined 33
percent reflecting primarily the previously reported October 1995
expiration of a cost-plus contract that resulted in below market
realizations on annual phosphate rock sales volumes of 1.5 million
tons net to FRP. Also contributing to the reduction in sales volumes
were lower sales in the export market. The impact of the 15 percent
increase in third-quarter 1996 realizations, primarily caused by the
below market contract expiration, was offset by lower sales volumes
and higher rock mining costs, resulting in lower earnings from the
phosphate rock operations. Phosphate rock sales volumes are expected
to decline further in the fourth quarter of 1996 as IMC-Agrico will
continue to reduce sales to third parties in order to maximize the
long-term value of its phosphate rock reserves through internal use.
Sulphur sales volumes in the current quarter were virtually
unchanged from the 1995 period level. FRP has operated its Main Pass
and Culberson mines at reduced rates since March 1996 (equivalent to
350,000 tons lower annual production) in response to lower domestic
sulphur demand from phosphate
<PAGE> 9
fertilizer producers. Sulphur market prices in the quarter were negatively
affected by the lower demand. Movement of Canadian sulphur to the U.S.
market fell during the quarter in tandem with lower prices and exporters'
concerns over recent anti-dumping actions taken by the U.S. Department of
Commerce. FRP's future sulphur sales volumes and realizations will continue
to depend on the level of demand from the domestic phosphate fertilizer
industry. FRP continues to evaluate its sulphur business strategy in
light of the current sulphur market, including the possibility of the
production levels of its two mines. FRP does not anticipate any
change which will result in a material impact to its financial
position or results of operations.
Third Quarter Nine Months
------------------------ ------------------------
1996 1995 1996 1995
---------- ---------- ---------- ---------
Phosphate fertilizers
-primarily DAP
Sales
(short tons) a 783,400 891,600 2,383,300 2,551,900
Average realized price b
All phosphate
fertilizers $175.55 $167.96 $182.49 $165.17
DAP 180.65 173.50 188.59 170.69
Phosphate rock
Sales
(short tons) a 706,000 1,051,500 2,198,500 3,611,700
Average realized
price b $24.73 $21.53 $26.12 $21.94
Sulphur
Sales
(long tons) c 738,000 751,300 2,141,800 2,284,600
a. Reflects FRP's 43.1 percent, 43.6 percent and 45.1 percent share
of the IMC-Agrico joint venture assets for the fiscal years ended June
30, 1997, 1996 and 1995, respectively.
b. Represents average realization f.o.b. plant/mine.
c. Includes internal consumption totaling 189,600 tons and 187,100
tons for the third quarter of 1996 and 1995, respectively, and 544,600
tons and 555,700 tons for the nine-month period of 1996 and 1995,
respectively.
Oil Operations - Main Pass oil operations achieved the following:
Third Quarter Nine Months
-------------------- ---------------------
1996 1995 1996 1995
---------- --------- ---------- ---------
Sales (barrels) 463,000 524,600 1,507,500 1,686,400
Average realized
price $19.94 $15.58 $18.82 $15.86
Operating income
(in millions) $3.5 $(1.0) $8.2 $1.5
Main Pass operating income for the 1996 periods benefited from an
increase in average realizations caused by higher world oil market
prices. Main Pass oil production remains slightly below 1995 period
levels because of expected declines from reservoir depletion.
During June 1996, FRP, a significant consumer of natural gas in
its sulphur and fertilizer operations, acquired a 25 percent leasehold
interest in an oil and gas joint venture to explore a 35,000 acre
project area in south Terrebonne Parish, Louisiana. In connection
with the acquisition of this interest, FRP reimbursed McMoRan Oil &
Gas Co., a formerly owned affiliate of FTX, $2.1 million for certain
costs previously incurred on the project area. FRP acquired its
interest on the same proportionate basis as Phillips Petroleum, which
has a 50 percent leasehold interest in the project area and is the
operator of the initial two drilling prospects. FRP will continue to
evaluate opportunities for additional oil and gas investments.
Two high-potential, high-risk prospects were identified in the
project area. The East Fiddler's Lake prospect, which began drilling
during the third quarter and was completed in October, was
unsuccessful in finding commercial oil and gas reserves and resulted
in a third-quarter charge of $2.0 million and an estimated fourth-
quarter charge of $0.3 million. The geological data from this well
will assist future drilling activity in the project area. Drilling
operations commenced on the North Bay Junop prospect during the fourth
quarter. Interpretation of the 3-D seismic survey performed over the
project area has identified additional leads that may develop into
potential prospects which could be drilled in the future.
<PAGE> 10
CAPITAL RESOURCES AND LIQUIDITY
Net cash provided by operating activities during the first nine months
of 1996 was $198.0 million, compared with $214.3 million in the 1995
period. Net cash used in investing activities was $29.0 million
compared with $22.8 million in the 1995 period. Capital expenditures
for 1996, including amounts associated with the phosphate rock reserve
acquisition discussed below and oil and gas exploration activities,
are currently estimated to approximate $60 million. Net cash used in
1996 financing activities totaled $170.1 million compared with $177.4
million in the 1995 period. Distributions to partners rose in 1996,
reflecting the continued public unitholder distributions and an
increased level of distributions paid to FTX. In early 1996, FRP
issued $150 million of 7% Senior Notes, using the proceeds to reduce
bank indebtedness, thereby lengthening the maturity and fixing the
interest rate on a significant portion of FRP's debt. FRP believes
that its short-term cash requirements will be met from internally
generated funds and borrowings under its credit facility ($219.0
million of additional borrowings available at October 25, 1996).
In September, IMC-Agrico entered into an exclusive letter of
intent with Chinese authorities to conduct joint feasibility studies,
and if commercially viable, to develop phosphate ore resources in
Yunnan Province. The agreement covers some of the most extensive
phosphate resources known in the world today and envisions the
potential joint development of high-analysis phosphate fertilizer
manufacturing facilities in China. Additionally, in October, IMC-
Agrico significantly augmented its existing strategic phosphate rock
reserve position by purchasing 24,000 acres of land in central Florida
for $31.3 million ($13 million net to FRP) plus future payments and
royalties. The land is estimated to contain in excess of 100 million
tons of phosphate rock, potentially increasing phosphate rock reserves
by approximately 25 percent.
Publicly owned FRP units have cumulative rights to receive
quarterly distributions of 60 cents per unit through the distribution
for the quarter ending December 31, 1996 before any distributions may
be made to FTX. On October 18, 1996, FRP declared a distribution of
60 cents per publicly held unit ($30.0 million) and 34 cents per FTX-
owned unit ($18.2 million), payable November 15, 1996, increasing the
total unpaid distributions to FTX to $412.2 million. Beginning with
the distribution for the quarter ending March 31, 1997, FRP's
quarterly distributions will be shared ratably by FRP's public
unitholders and FTX, except that FTX will be entitled to receive in
the future the unpaid cash distributions from one-half of the
quarterly distributable cash after the payment of 60 cents per unit to
all FRP unitholders. If this distribution policy had been in affect
for this quarter's distribution, each FRP unitholder would have
received approximately 47 cents per unit. FRP's future distributions
will depend on the distributions received from IMC-Agrico, on the cash
flow generated from FRP's sulphur and oil operations, and on the level
of and methods of financing its capital expenditure needs, including
reclamation and growth projects.
Distributable cash in October 1996 included $54.0 million from
IMC-Agrico. Future distributions from IMC-Agrico will depend
primarily on the phosphate fertilizer market, discussed earlier, and
FRP's share of IMC-Agrico cash distributions (Current Interest). In
March 1996, FRP and its joint venture partner in IMC-Agrico amended
the IMC-Agrico Partnership Agreement to (1) increase FRP's ownership
in IMC-Agrico by 0.85 percent, (2) alter the management structure of
the joint venture and (3) modify certain product pricing arrangements
between IMC-Agrico and other of the joint venture partner's business
units. As a result, FRP's Current Interest is 54.35 percent for the
twelve months ended June 30, 1997 and declines to 41.45 percent
thereafter. The partnership agreement changes were made in
recognition of changes in IMC-Agrico's business and in connection with
a merger transaction between the joint venture partner and another
company.
In September 1996, FTX terminated its previously announced merger
discussions with Arcadian Corporation. It was intended that FRP would
have been offered an opportunity to participate in this transaction in
a manner that would convert the publicly held limited partnership
units of FRP into common stock of a new company. Although this
transaction was not completed, FTX and FRP will continue to consider
attractive growth opportunities, including opportunities in the
agricultural minerals and oil and gas industries. FTX and FRP will
also continue to evaluate transactions which may allow for a possible
combination of FTX and FRP.
-------------------------------
The results of operations reported and summarized above are not
necessarily indicative of future operating results.
<PAGE> 11
FREEPORT-McMoRan RESOURCE PARTNERS, LIMITED PARTNERSHIP
PART II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K.
(a) The exhibits to this report are listed in the Exhibit
Index appearing on page E-1 hereof.
(b) No reports on Form 8-K were filed by the registrant
during the quarter for which this report is filed.
<PAGE> 12
FREEPORT-McMoRan RESOURCE PARTNERS, LIMITED PARTNERSHIP
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf
by the undersigned thereunto duly authorized.
FREEPORT-McMoRan RESOURCE PARTNERS, LIMITED PARTNERSHIP
(A Limited Partnership)
By: /s/ Nancy D. Bonner
---------------------------------
Nancy D. Bonner
Vice President and Controller
(Authorized signatory and
Principal Accounting Officer)
Date: November 8, 1996
<PAGE> 13
FREEPORT-McMoRan RESOURCE PARTNERS, LIMITED PARTNERSHIP
EXHIBIT INDEX
-------------
Sequentially
Numbered
Number Description Page
- ------ ----------------- ------------
27.1 Financial Data Schedule
<PAGE> E-1
<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 0000793421
<NAME> FREEPORT-MCMORAN RESOURCE PARTNERS LIMITED PARTNERSHIP
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> SEP-30-1996
<CASH> 21,398
<SECURITIES> 0
<RECEIVABLES> 30,105
<ALLOWANCES> 0
<INVENTORY> 140,382
<CURRENT-ASSETS> 213,484
<PP&E> 1,830,662
<DEPRECIATION> 911,047
<TOTAL-ASSETS> 1,181,083
<CURRENT-LIABILITIES> 114,624
<BONDS> 390,173
0
0
<COMMON> 370,612
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 1,181,083
<SALES> 721,903
<TOTAL-REVENUES> 721,903
<CGS> 525,066
<TOTAL-COSTS> 525,066
<OTHER-EXPENSES> (9,917)
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 25,243
<INCOME-PRETAX> 140,052
<INCOME-TAX> 0
<INCOME-CONTINUING> 140,052
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 140,052
<EPS-PRIMARY> 1.35
<EPS-DILUTED> 0
</TABLE>
