{
  "docId": "019dd923-622b-71dc-a6db-d7ec795689aa",
  "docSlug": "fe2831a5a971",
  "documentTitle": "TPC Group Inc. (TPCG)",
  "authorId": "08_Sandell",
  "authorName": "Sandell Asset Management",
  "documentKindSlug": "activist-deck",
  "documentKindLabel": "Activist deck",
  "sourceTypeSlug": "activist_investor",
  "sourceTypeLabel": "Activist investor",
  "presentationDate": "2012-10-01 00:00:00",
  "orientation": "landscape",
  "aspectRatio": 1.2941177,
  "pageNumber": 9,
  "pageCount": 9,
  "prevPage": 8,
  "nextPage": null,
  "slideType": "peer_benchmark",
  "function": "compare_peers",
  "density": "overcrowded",
  "nDataPoints": 12,
  "notes": "The slide uses a peer group of 'Variable Dividend MLPs' to establish a valuation benchmark for TPCG.",
  "elementsJson": [
    "headline_text",
    "subtitle_text",
    "bullet_list",
    "comparison_table",
    "footnote"
  ],
  "metadataConfidence": 1,
  "imagePath": null,
  "slideHref": "/slides/019dd923-622b-71dc-a6db-d7ec795689aa/9",
  "deckHref": "/decks/019dd923-622b-71dc-a6db-d7ec795689aa",
  "deckJsonHref": "/decks/019dd923-622b-71dc-a6db-d7ec795689aa.json",
  "deckAnchorHref": "/decks/019dd923-622b-71dc-a6db-d7ec795689aa#slide-9",
  "components": [
    {
      "bbox": null,
      "kind": "callout",
      "text": "We believe that the Exit Multiple should reflect this significant change in the business as MLP-qualifying income in an MLP structure is extremely valuable to other MLPs and can serve to reduce TPCG's cash tax costs and lower its cost of capital.",
      "attrs": null,
      "subkind": null,
      "toolName": "Visual emphasis",
      "toolSlug": "visual-emphasis",
      "confidence": null,
      "componentId": "019dd953-78b8-76f8-9f0f-321b2ffaba2e",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.12,
        "w": 0.85,
        "x": 0.076,
        "y": 0.26
      },
      "kind": "list",
      "text": "Given the complexities surrounding structuring and developing an MLP structure (the pacing required to 'drop-down' assets into the MLP, the tax concerns as a result of the low tax basis of the assets, the expected capital projects in front of TPCG, etc.), the SC decided not to pursue the MLP option. However, the PE Buyers will be able to take advantage of the MLP-qualifying nature of TPCG's cash flows through this hold period, away from the view of public shareholders.",
      "attrs": null,
      "subkind": "bullet",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "86002381-b57e-4948-986b-048eb87b9122",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.08,
        "w": 0.85,
        "x": 0.076,
        "y": 0.17
      },
      "kind": "list",
      "text": "There is ample disclosure regarding the evaluation of TPCG as an MLP. Based on our read of the preliminary proxy, the cash flows from the C4 business (2/3 of current EBITDA) are MLP-qualifying. Furthermore, with PetroLogistics (PDH) as a public comparable, we also believe all the EBITDA generated from the de-hydro projects will be MLP-qualifying.",
      "attrs": null,
      "subkind": "bullet",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "a08500b5-bb62-408b-96d7-8d13ec770327",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.06,
        "w": 0.85,
        "x": 0.076,
        "y": 0.46
      },
      "kind": "list",
      "text": "PetroLogistics (PDH) would be the best comparable company to TPCG as an MLP. It processes propane into propylene and generates variable-dividend paying MLP-qualifying income. Other variable-dividend paying entities are fertilizer MLPs (shown below) as well as refining MLPs and other processors that have oil, natural gas, NGLs or crude C4 as a feedstock.",
      "attrs": null,
      "subkind": "bullet",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "c087cbaa-b5b5-4d16-8e8e-9da3e25b3f22",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.06,
        "w": 0.85,
        "x": 0.076,
        "y": 0.39
      },
      "kind": "list",
      "text": "We believe that the Exit Multiple should reflect this significant change in the business as MLP-qualifying income in an MLP structure is extremely valuable to other MLPs and can serve to reduce TPCG's cash tax costs and lower its cost of capital.",
      "attrs": null,
      "subkind": "bullet",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "dfeb8e4c-b590-4634-af7f-0449a5ae65f4",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "metric",
      "text": "EV/EBITDA: 80%",
      "attrs": null,
      "subkind": "primary",
      "toolName": "Quantification",
      "toolSlug": "quantification",
      "confidence": null,
      "componentId": "019dd953-78b8-76f8-9f0f-36a8382012f7",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.25,
        "w": 0.5,
        "x": 0.25,
        "y": 0.59
      },
      "kind": "table",
      "text": "Variable Dividend MLPs table showing Market Capitalization, EV/EBITDA, and P/E for PetroLogistics, Rentech Nitrogen, Terra Nitrogen, and CVR Partners.",
      "attrs": null,
      "subkind": "data",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "2cc1f77d-b217-4822-873b-3a50ad744d70",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.03,
        "w": 0.65,
        "x": 0.076,
        "y": 0.12
      },
      "kind": "title",
      "text": "80% of TPCG's Income is MLP-Qualifying, Increasing Exit Valuation",
      "attrs": null,
      "subkind": "action-title",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "a9b2ecec-6137-4611-b331-77d20c192493",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.03,
        "w": 0.35,
        "x": 0.076,
        "y": 0.076
      },
      "kind": "title",
      "text": "SAMC Analysis of TPC Group Inc.",
      "attrs": null,
      "subkind": "headline",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "6b6aed36-c0f2-45dc-9662-d39f18067e22",
      "frameworkName": null,
      "frameworkSlug": null
    }
  ],
  "metrics": [],
  "tools": [],
  "frameworks": [
    {
      "name": "comparison_frame",
      "slug": null,
      "matchId": "ea7cb9b1-7be6-4642-94a0-c7d0269a03b8",
      "evidence": "Comparing TPCG to a peer group of variable-dividend MLPs to justify valuation.",
      "confidence": 0.9
    }
  ],
  "arcBeats": [
    {
      "to": 9,
      "from": 8,
      "beatId": "2c33287f-604a-413f-a8b8-69d2d9d40c38",
      "arcName": "Overcoming the Monster",
      "arcSlug": "overcoming-monster",
      "beatName": "The Victory",
      "beatSlug": "overcoming-monster-the-victory",
      "evidence": "The presentation provides a valuation table and peer benchmark to support its conclusions",
      "position": 2,
      "confidence": 0.8,
      "parentBeatName": "Turn",
      "parentBeatSlug": "turn"
    }
  ],
  "loops": [
    {
      "to": 9,
      "from": 3,
      "name": "Cost Of Inaction",
      "slug": "27-cost-of-inaction",
      "bestFor": "Urgent budget requests, compliance, risk mitigation",
      "matchId": "c832cdea-6a3b-4f51-9091-b01475c58018",
      "evidence": "The presentation implies that investors should take action based on the analysis",
      "position": 1,
      "objective": "Highlight the consequences of not taking action",
      "structure": "The Status Quo -> The Hidden Costs Accumulating -> The Future State of Inaction -> The Tipping Point",
      "confidence": 0.6,
      "description": "Quantify what happens if the audience does nothing"
    }
  ],
  "imagePathAlt": null,
  "thumbSrc": null,
  "thumbSrcAlt": null,
  "locked": true
}