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  "documentTitle": "Hess Corporation (HES)",
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  "authorName": "Elliott Management",
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  "presentationDate": "2013-04-15 00:00:00",
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  "notes": "The chart illustrates the negative impact of incremental well costs on Net Asset Value (NAV).",
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      "kind": "callout",
      "text": "Resource plays require high number of wells to be drilled efficiently. Hess has struggled.",
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      "text": "Every $500,000 of Cost Overruns on a Bakken Well Results in ~$500 million of Value Lost if Not Checked",
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      "text": "Every $500,000 of Cost Overruns on a Bakken Well Results in ~$500 million of Value Lost if Not Checked",
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      "text": "Hess wasted millions on Bakken well costs\nIn 2012, Hess underestimated its Bakken costs by $1 billion; having to raise guidance from $2 billion to $3 billion in spending while also reducing production guidance",
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      "text": "Reduction to Hess NAV: $500 million",
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      "text": "In 1H2012 Hess well costs exceeded like peers by $3.5mm per well\nIn 4Q2012 Hess well costs exceeded like peers by $1.5-$2.5mm\nIf unchecked, cost overruns could result in billions lost for Shareholders",
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      "text": "Sources: Public company filings, corporate presentations and earnings call transcripts\n1. See slide 30\n2. Present value of additional $3 million cost for each well across 750,000 net acres, excluding acreage drilled through 3Q. Assumes 8 wells per spacing unit (4 Bakken, 4 TFS), 14 rig program, adding 1 rig per year until 20 rigs; Pretax value at 10% discount rate",
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      "text": "Ability to Control Well Cost Is Critical to Realizing Asset Value for Shareholders",
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