Forbes reported that some analysts are wondering why copper miner Freeport has moved into the energy space, with last week’s acquisition of Plains Exploration & Production Co. and McMoRan Exploration, which sent stock tumbling.
As quoted in the market report:
In contrast to the outcry, one industry banker offered me some explanation: The oil business, in maturity, is starting to resemble other industrial businesses. In the 21st century production managers have replaced wildcatters. The engineers and geologists pioneering North America’s unconventional resource plays have nudged the oilfield closer and closer to an industrial manufacturing process. And as energy businesses begin to resemble industrial producers, they will attract the interest of industrial businesses, even beyond the mining space, the banker says.