{
  "docId": "019dd923-622b-71dc-a6dc-d7c9fce4ff84",
  "docSlug": "2bee745d494a",
  "documentTitle": "BP plc (BP)",
  "authorId": "23_Bluebell_Capital",
  "authorName": "Giuseppe Bivona and Marco Taricco",
  "documentKindSlug": "shareholder-letter",
  "documentKindLabel": "Shareholder letter",
  "sourceTypeSlug": "activist_investor",
  "sourceTypeLabel": "Activist investor",
  "presentationDate": "2023-10-04 00:00:00",
  "orientation": "portrait",
  "aspectRatio": 0.7070707,
  "pageNumber": 9,
  "pageCount": 30,
  "prevPage": 8,
  "nextPage": 10,
  "slideType": "villain_critique",
  "function": "name_villain",
  "density": "overcrowded",
  "nDataPoints": 8,
  "notes": "This is a text-heavy slide from an activist investor letter (Bluebell Capital Partners) criticizing BP's management.",
  "elementsJson": [
    "paragraph",
    "footnote"
  ],
  "metadataConfidence": 0.9,
  "imagePath": null,
  "slideHref": "/slides/019dd923-622b-71dc-a6dc-d7c9fce4ff84/9",
  "deckHref": "/decks/019dd923-622b-71dc-a6dc-d7c9fce4ff84",
  "deckJsonHref": "/decks/019dd923-622b-71dc-a6dc-d7c9fce4ff84.json",
  "deckAnchorHref": "/decks/019dd923-622b-71dc-a6dc-d7c9fce4ff84#slide-9",
  "components": [
    {
      "bbox": null,
      "kind": "callout",
      "text": "BP's peers such as Chevron and ExxonMobil are being much more realistic in their capital allocation: they plan to spend around 10% of their capex in the next five years on low carbon solutions, which compares with 30%+ for BP.",
      "attrs": null,
      "subkind": null,
      "toolName": "Visual emphasis",
      "toolSlug": "visual-emphasis",
      "confidence": null,
      "componentId": "019dd952-f5d0-745c-bea9-181a548a5442",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "metric",
      "text": "unlevered IRR: 6-8%",
      "attrs": null,
      "subkind": "primary",
      "toolName": "Quantification",
      "toolSlug": "quantification",
      "confidence": null,
      "componentId": "019dd952-f5d0-745c-bea9-1daeb50cf395",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.2,
        "w": 0.68,
        "x": 0.16,
        "y": 0.1
      },
      "kind": "paragraph",
      "text": "According to the plan, as revised in February 2023, BP's capital expenditure for the period 2023-2030 anticipates a cumulative amount of approximately $130 billion, of which roughly $45 billion (just over one-third) is allocated to businesses such as Bioenergy (around $15 billion), Hydrogen and Renewables & Power (around $30 billion) where BP lacks experience and a track record, and another $15 billion in a business for which shareholders are given very limited visibility due to the Company’s limited disclosure (Convenience, EV Charging).",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "08a859c7-4557-445d-ad61-6aad30974390",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.12,
        "w": 0.68,
        "x": 0.16,
        "y": 0.3
      },
      "kind": "paragraph",
      "text": "BP’s peers such as Chevron and ExxonMobil are being much more realistic in their capital allocation: they plan to spend around 10% of their capex in the next five years on low carbon solutions, including decarbonising their own operations, which compares with 30%+ for BP, excluding decarbonising their own operations, during a broadly similar timeframe.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "4ca2733e-c856-4cf5-baca-ca59f9408aea",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.08,
        "w": 0.68,
        "x": 0.16,
        "y": 0.45
      },
      "kind": "paragraph",
      "text": "And none of the capex expected to be invested by Chevron and ExxonMobil in low carbon solutions will go into Renewables but will be directed to Hydrogen, Carbon Capture and Bioenergy which are more closely related to the core business.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "ac44b21a-cde5-44bc-8a54-7f403d6c801b",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.08,
        "w": 0.68,
        "x": 0.16,
        "y": 0.55
      },
      "kind": "paragraph",
      "text": "BP, by its own admission, expects lower returns when it deploys capital in some low carbon solutions: BP only targets 6-8% unlevered IRR in Renewables & Power and double-digit unlevered IRR in Hydrogen.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "d3d7101d-a5c9-4b2d-98f6-610a7a1025cf",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.2,
        "w": 0.68,
        "x": 0.16,
        "y": 0.68
      },
      "kind": "source-note",
      "text": "14 At its 2022 Corporate Plan Update Day ExxonMobil guided for $20-25bn capex per year between 2023 and 2027...",
      "attrs": {
        "numbered": true
      },
      "subkind": null,
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "86045fc1-8854-4438-b8c8-5356a3026833",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.02,
        "w": 0.25,
        "x": 0.58,
        "y": 0.05
      },
      "kind": "title",
      "text": "BLUEBELL CAPITAL PARTNERS",
      "attrs": null,
      "subkind": "headline",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "06c398b4-6cd0-4462-83c4-6a4fe6bcf3fe",
      "frameworkName": null,
      "frameworkSlug": null
    }
  ],
  "metrics": [],
  "tools": [],
  "frameworks": [
    {
      "name": "capital-allocation-framework",
      "slug": null,
      "matchId": "102f6c8f-3ea0-4f72-b6cb-aa666ed05288",
      "evidence": "Critique of BP's capital expenditure allocation vs peers",
      "confidence": 0.8
    }
  ],
  "arcBeats": [
    {
      "to": 9,
      "from": 4,
      "beatId": "833148c7-b13a-4f4b-aeb4-8536c5cc31bd",
      "arcName": "Problem-Agitate-Solution",
      "arcSlug": "problem-agitate-solution",
      "beatName": "Problem & Complication",
      "beatSlug": "consultants-gambit-problem-complication",
      "evidence": "The document presents a clear problem and complication",
      "position": 0,
      "confidence": 0.8,
      "parentBeatName": "Complication",
      "parentBeatSlug": "complication"
    },
    {
      "to": 14,
      "from": 4,
      "beatId": "c02f659b-5eea-4a8c-b892-a11f455c4a3a",
      "arcName": "Problem-Agitate-Solution",
      "arcSlug": "problem-agitate-solution",
      "beatName": "Interest",
      "beatSlug": "aida-interest",
      "evidence": "The document generates interest by presenting a clear critique of BP's strategy",
      "position": 3,
      "confidence": 0.8,
      "parentBeatName": "Complication",
      "parentBeatSlug": "complication"
    }
  ],
  "loops": [],
  "imagePathAlt": null,
  "thumbSrc": null,
  "thumbSrcAlt": null,
  "locked": true
}