UBS analyst, Brian Maca, cut the Freeport-McMoRan (NYSE: FCX) price target to $13 from $15.50 but maintained its Buy rating.

FCX has announced further capex and production cuts in both its mining and oil & gas businesses. In O&G, FCX now expects 2016 and 2017 capex to be $1.8B and $1.2B, respectively, from $2.0B previously. Production is expected to average 159MBOE/d in both years (previously 163MBOE/d in F16, 170MBOE/d in F17) at cash production costs less than $16/BOE ($19/BOE in 2015).

FCX believes the revised operating plan will allow the O&G business to be self-funding in 2017 assuming a Brent oil price of $45/bbl. The Board also continues to evaluate strategic alternatives for the O&G business, although no specific updates of the review were provided.

FCX now plans to fully curtail production at its Sierrita mine, bringing total copper production cuts to 350Mlbs/yr from 250Mlbs/yr. The company has also adjusted operating plans at its primary molybdenum mines to bring total curtailments to 34Mlbs/yr (from 20Mlbs/yr) and FCX continues to evaluate other mining operating plans in response to market conditions. Importantly, FCX expects its consolidated operating cash flow to exceed capex by $600M in 2016, assuming $2.00/lb copper and $45/bbl Brent.

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Shares of Freeport-McMoRan closed at $6.99 yesterday.