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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 slide uses a series of pull-quotes to build a narrative of institutional distrust in the company.",
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      "text": "The simple fact is the market doesn't trust Hess to run its business well, and thus places a discount on everything the company controls.",
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      "text": "We think the market will largely adopt a wait and see approach and not give any free passes to management until clear path towards their cash flow targets and execution capability is evidenced...",
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      "text": "The stock price reflects concern about ballooning capital costs, chronic lack of free cash flow, a high oil price breakeven, and recent difficulty executing against guidance and expectations.",
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      "text": "In multiple client conversations throughout the day we found literally no one that defended the shape, nor global strategy of Hess.",
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      "text": "The simple fact is the market doesn't trust Hess to run its business well, and thus places a discount on everything the company controls.",
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      "text": "HES has been what we call a 'value trap' for some time.",
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      "text": "Hess' board has consistently failed its shareholders and has never brought management to task, ever... In light of the company's poor performance the last decade, this is clearly a board that gives John Hess what he wants, rather than doing what is good for shareholders.",
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      "text": "This is the most undermanaged major oil company in the world.",
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      "text": "And so, one of the problems is the board is stuffed with incredibly long-serving members, none of whom seem to have any experience outside the company running an oil company...",
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      "text": "\"HES has been what we call a 'value trap' for some time.\" — Societe Generale (January 30, 2013). \"In multiple client conversations throughout the day we found literally no one that defended the shape, nor global strategy of Hess.\" — Deutsche Bank (January 30, 2013). \"The simple fact is the market doesn't trust Hess to run its business well, and thus places a discount on everything the company controls.\" — Morningstar (January 29, 2013). \"This is the most undermanaged major oil company in the world.\" — Jim Cramer, CNBC Faber Report (January 29, 2013). \"And so, one of the problems is the board is stuffed with incredibly long-serving members, none of whom seem to have any experience outside the company running an oil company, so there's a real lack of oil industry depth here. And coincidentally, they also happen to have very strong financial connections with the Hess family, helping to run the charitable board, helping to run the estate of the founders.\" — Reuters Breakingviews (January 29, 2013). \"Hess' board has consistently failed its shareholders and has never brought management to task, ever... In light of the company's poor performance the last decade, this is clearly a board that gives John Hess what he wants, rather than doing what is good for shareholders.\" — Morningstar (January 29, 2013). \"The stock price reflects concern about ballooning capital costs, chronic lack of free cash flow, a high oil price breakeven, and recent difficulty executing against guidance and expectations.\" — Deutsche Bank (October 17, 2012). \"We think the market will largely adopt a wait and see approach and not give any free passes to management until clear path towards their cash flow targets and execution capability is evidenced... From a valuation perspective, we think the stock is relatively cheap as a result of the company's less-than-stellar historical performance record and perceived execution risk.\" — Barclays (July 26, 2012).",
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