{
  "docId": "019dd923-622c-750b-8b9c-37eb478b579f",
  "docSlug": "43bbd9fb77dc",
  "documentTitle": "Hess Corporation (HES)",
  "authorId": "02_Elliott_Management",
  "authorName": "Elliott Management",
  "documentKindSlug": "activist-deck",
  "documentKindLabel": "Activist deck",
  "sourceTypeSlug": "activist_investor",
  "sourceTypeLabel": "Activist investor",
  "presentationDate": "2013-03-01 00:00:00",
  "orientation": "landscape",
  "aspectRatio": 1.2941177,
  "pageNumber": 50,
  "pageCount": 71,
  "prevPage": 49,
  "nextPage": 51,
  "slideType": "peer_benchmark",
  "function": "compare_peers",
  "density": "overcrowded",
  "nDataPoints": 48,
  "notes": "The slide uses a peer benchmark table to argue that Hess management's concerns about funding are unfounded.",
  "elementsJson": [
    "headline_text",
    "subtitle_text",
    "bullet_list",
    "comparison_table",
    "quote_block",
    "footnote"
  ],
  "metadataConfidence": 1,
  "imagePath": null,
  "slideHref": "/slides/019dd923-622c-750b-8b9c-37eb478b579f/50",
  "deckHref": "/decks/019dd923-622c-750b-8b9c-37eb478b579f",
  "deckJsonHref": "/decks/019dd923-622c-750b-8b9c-37eb478b579f.json",
  "deckAnchorHref": "/decks/019dd923-622c-750b-8b9c-37eb478b579f#slide-50",
  "components": [
    {
      "bbox": {
        "h": 0.1,
        "w": 0.75,
        "x": 0.125,
        "y": 0.75
      },
      "kind": "callout",
      "text": "..there will be times when CLR may outspend its internally generated cash flow. However, so long as it is earning the returns on investment in the incremental barrel produced by these borrowings... this should be of minor concern. - Moody's March 2012",
      "attrs": null,
      "subkind": "primary",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "e2873955-0db4-4906-896a-e3a96d59a831",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "callout",
      "text": "Management either has not done its homework or does not understand the credit markets",
      "attrs": null,
      "subkind": null,
      "toolName": "Visual emphasis",
      "toolSlug": "visual-emphasis",
      "confidence": null,
      "componentId": "019dd952-fb97-7552-b56b-3a72343305a1",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.15,
        "w": 0.65,
        "x": 0.108,
        "y": 0.205
      },
      "kind": "list",
      "text": "Numerous examples of US resource focused companies with negative free cash flow\nAll able to fund themselves in the public markets and all trade at premium multiples to Hess\nContinental has had negative free cash flow for the past 5 years yet has:\n$2.9bn of public debt trading at an average yield under 3.5%\nEnterprise value of over $20bn and trades at ~11.3x EBITDA",
      "attrs": null,
      "subkind": "bullet",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "afd8ed32-1e1e-4375-8971-8c060ad96e95",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "metric",
      "text": "EV / LTM EBITDAX: 11.3x",
      "attrs": null,
      "subkind": "primary",
      "toolName": "Quantification",
      "toolSlug": "quantification",
      "confidence": null,
      "componentId": "019dd952-fb97-7552-b56b-425a45c5f756",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "quote",
      "text": "..there will be times when CLR may outspend its internally generated cash flow. However, so long as it is earning the returns on investment in the incremental barrel produced by these borrowings... this should be of minor concern. — Moody's March 2012",
      "attrs": null,
      "subkind": null,
      "toolName": "Authority citation",
      "toolSlug": "authority-citation",
      "confidence": null,
      "componentId": "019dd952-fb97-7552-b56b-3ffda721cd09",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.05,
        "w": 0.784,
        "x": 0.108,
        "y": 0.91
      },
      "kind": "source-note",
      "text": "Sources: Bloomberg, CapIQ. 1-7 footnotes.",
      "attrs": null,
      "subkind": null,
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "d2f9d84e-54f0-40e2-9ef7-14c3415538a0",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.35,
        "w": 0.75,
        "x": 0.125,
        "y": 0.4
      },
      "kind": "table",
      "text": "Company, Market Cap, EV/LTM EBITDAX, Net Debt/LTM EBITDAX, 2013 FCF as % of Market Cap, Weighted Avg. Yield. Continental, Halcon, Kodiak, Oasis, SM Energy, Pioneer, Cabot, Range, Hess Resource Co.",
      "attrs": null,
      "subkind": "data",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "61ace49f-a0b3-4fc2-9a78-6a5ef33ad077",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.025,
        "w": 0.65,
        "x": 0.108,
        "y": 0.165
      },
      "kind": "title",
      "text": "Management either has not done its homework or does not understand the credit markets",
      "attrs": null,
      "subkind": "action-title",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "6f4e4894-1e4d-4870-8779-8622e4f504d3",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.032,
        "w": 0.784,
        "x": 0.108,
        "y": 0.115
      },
      "kind": "title",
      "text": "Standalone Hess Resource Co. Could Easily Fund Itself in the Capital Markets",
      "attrs": null,
      "subkind": "headline",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "9004512c-2ef6-4ae3-8683-9d8fa8cc148a",
      "frameworkName": null,
      "frameworkSlug": null
    }
  ],
  "metrics": [],
  "tools": [
    {
      "name": "Slide recipe: the peer-gap chart",
      "slug": "peer-gap-chart-recipe",
      "agent": "designer",
      "layer": "slide",
      "matchId": "da5f9887-025a-478c-8e70-6898ef8c3ccf",
      "evidence": "table/data: Company, Market Cap, EV/LTM EBITDAX, Net Debt/LTM EBITDAX, 2013 FCF as % of Market Cap, Weighted Avg. Yield.",
      "confidence": 0.8
    }
  ],
  "frameworks": [
    {
      "name": "comparison-frame",
      "slug": null,
      "matchId": "0caf6366-66cc-4e4d-b30b-2a5a5df89b69",
      "evidence": "Table comparing Hess against peer group metrics",
      "confidence": 0.9
    }
  ],
  "arcBeats": [
    {
      "to": 59,
      "from": 33,
      "beatId": "0f29d29f-cd13-41b4-9dee-478bf0a3d295",
      "arcName": "Overcoming the Monster",
      "arcSlug": "overcoming-monster",
      "beatName": "The Struggle",
      "beatSlug": "overcoming-monster-the-struggle",
      "evidence": "Elliott Management presents its recommendations for change and the benefits of increased accountability.",
      "position": 2,
      "confidence": 0.8,
      "parentBeatName": "Development",
      "parentBeatSlug": "development"
    }
  ],
  "loops": [
    {
      "to": 70,
      "from": 10,
      "name": "Cost Of Inaction",
      "slug": "27-cost-of-inaction",
      "bestFor": "Urgent budget requests, compliance, risk mitigation",
      "matchId": "85bccce2-ca46-412f-9f7f-9f34f493fcd2",
      "evidence": "The document repeatedly emphasizes the consequences of not implementing substantial changes.",
      "position": 0,
      "objective": "The cost of inaction (lack of accountability) is highlighted throughout the presentation.",
      "structure": "The Status Quo -> The Hidden Costs Accumulating -> The Future State of Inaction -> The Tipping Point",
      "confidence": 0.7,
      "description": "Quantify what happens if the audience does nothing"
    },
    {
      "to": 69,
      "from": 14,
      "name": "Mece Breakdown",
      "slug": "40-mece-breakdown",
      "bestFor": "Problem structuring, ensuring completeness, strategic analysis",
      "matchId": "6f974f5d-2a31-4b3a-a651-08be791c3818",
      "evidence": "The document uses various tables and charts to illustrate the points being made.",
      "position": 1,
      "objective": "The presentation provides a detailed breakdown of the issues and proposed solutions.",
      "structure": "The Whole -> Category A (distinct) -> Category B (distinct) -> Category C (distinct) -> Complete Coverage",
      "confidence": 0.6,
      "description": "Divide a complex topic into mutually exclusive, collectively exhaustive categories"
    }
  ],
  "imagePathAlt": null,
  "thumbSrc": null,
  "thumbSrcAlt": null,
  "locked": true
}