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  "documentTitle": "Hess Corporation (HES)",
  "authorId": "02_Elliott_Management",
  "authorName": "Elliott Management",
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  "presentationDate": "2013-04-15 00:00:00",
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  "notes": "The slide uses a rhetorical question 'WHY?' to frame the contradiction between core E&P business and speculative trading.",
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      "kind": "callout",
      "text": "Separate from hedging production, Hess also owns a hedge fund (HETCO) and engages in prop trading. WHY?",
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      "kind": "callout",
      "text": "Disclosure suggests ~$400mm in prop trading losses since 2009(1) or very high operating costs at HETCO or...? Why do shareholders have to guess?",
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      "text": "Implied Prop Trading Losses 2009-2012",
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      "text": "Lost 9% of E&P revenue while peers gained ~1% of E&P revenue. Trades public equities as well as commodities. Guaranteed by Hess balance sheet. Hess refuses to disclose its results from corporate prop trading and consolidates results with HETCO.",
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      "text": "Implied Prop Trading Losses: $400mm",
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      "text": "Source: Company filings. 1. 10K (pg. 74) groups together 100% of trading revenues for HETCO and corporate proprietary trading. 10K (pg. 28) also groups together 100% of net income for proprietary trading and 50% of income from HETCO.",
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      "text": "Symptomatic of Poor Capital Discipline, Hess Engages in Prop Trading",
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