Evercore Investment Banking Pitch Book
Transaction Overview
Summary of Selected ORRI Trust Proposed Terms
Overriding Royalty
Percentage:
Term:
Call Option:
Termination
Clauses:
Drilling, Operating
and Development
Costs:
Drilling Obligation:
Trust Expenses:
■
■
EVERCORE PARTNERS
5.0% gross overriding royalty interest in and to the hydrocarbons produced from McMoRan's Ultra-Deep Assets
(leases below 18,000 feet)
20 years
Non-callable for five years
Callable at $10.00 per unit after year five
Confidential
After five years, if the volume-weighted average price for any nine month period is below $0.25 per unit, Freeport can
buy all (but not less than all) outstanding units for $0.25 per unit
Freeport has the right to terminate the trust upon a vote of the holders of 80% of the publicly traded units not owned
by Freeport. After five years, the 80% required vote drops to 66-2/3%
Free and clear of any and all drilling, development and operating costs and expenses
Shall be subject to and bear transportation and marketing fees and production and other like taxes
The ORRI Trust will have no ability to influence the exploration or development of the Ultra-Deep Assets
Freeport will fund the administrative and reporting obligations of the ORRI Trust, subject to an expense ceiling
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