{ "docId": "019dd923-622c-750b-8b9c-3c8a15220fd2", "docSlug": "348f49356270", "documentTitle": "Hess Corporation (HES)", "authorId": "02_Elliott_Management", "authorName": "Elliott Management", "documentKindSlug": "activist-deck", "documentKindLabel": "Activist deck", "sourceTypeSlug": "activist_investor", "sourceTypeLabel": "Activist investor", "presentationDate": "2013-04-15 00:00:00", "orientation": "portrait", "aspectRatio": 0.77272725, "pageNumber": 81, "pageCount": 161, "prevPage": 80, "nextPage": 82, "slideType": "expose_contradiction", "function": "expose_contradiction", "density": "dense", "nDataPoints": 0, "notes": "The slide uses a series of negative analyst quotes to establish a pattern of historical underperformance.", "elementsJson": [ "headline_text", "quote_block" ], "metadataConfidence": 1, "imagePath": null, "slideHref": "/slides/019dd923-622c-750b-8b9c-3c8a15220fd2/81", "deckHref": "/decks/019dd923-622c-750b-8b9c-3c8a15220fd2", "deckJsonHref": "/decks/019dd923-622c-750b-8b9c-3c8a15220fd2.json", "deckAnchorHref": "/decks/019dd923-622c-750b-8b9c-3c8a15220fd2#slide-81", "components": [ { "bbox": { "h": 0.03, "w": 0.7, "x": 0.15, "y": 0.95 }, "kind": "disclaimer", "text": "Note: For all reports prior to May 2006, Amerada Hess or AHC, was changed name to Hess or HES", "attrs": null, "subkind": null, "toolName": null, "toolSlug": null, "confidence": null, "componentId": "f64f87f1-9ad2-41fd-88fc-9533cdaef3c1", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.05, "w": 0.08, "x": 0.85, "y": 0.05 }, "kind": "image", "text": "Hess logo", "attrs": null, "subkind": "logo", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "7811aef8-17eb-4f4e-993f-a25c76d7e96c", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.8, "w": 0.7, "x": 0.15, "y": 0.12 }, "kind": "list", "text": "A series of 8 quotes from various financial institutions (Bank of America, Goldman Sachs, Morgan Stanley, UBS, Deutsche Bank) spanning 2003-2004.", "attrs": null, "subkind": "bullet", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "1fa247cf-3869-43c5-a581-ab44725afa6d", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "quote", "text": "\"Hess's near-term strategic outlook is fairly clear-cut: the company must improve. [Hess] will need to regain project management credibility after disappointing results...\" — Bank of America (January 6, 2004); \"Having lagged the recent rebound in the sector—adding to what has been long-term secular underperformance...\" — Goldman Sachs (December 9, 2003); \"We believe Hess had four issues it needed to overcome: Top management was not as strong as at its competitors; E&P asset base was very mature and short-lived; Balance sheet was weak; Capital discipline was expressed in words, but not practiced in actions.\" — Goldman Sachs (December 9, 2003); \"Will perpetual restructuring mode ever end?\" — Goldman Sachs (October 14, 2003); \"Hess released another quarter of disappointing earnings...While offshore development delays are not uncommon for large oil and gas projects, Hess has consistently disappointed the market with operational performance over the past several quarters.\" — Bank of America (July 29, 2003); \"[Hess] a company that we consider the most fundamentally flawed E&P or integrated in our investment grade universe... Unfortunately, these days a lack of astoundingly bad news is cause for celebration!\" — Morgan Stanley Credit Research (May 1, 2003); \"With below cost of capital ROACE, high upstream costs, and strategic impediments due to recurring high debt levels, we believe the Hess shares should continue to trade at a material discount vs. the integrated peer group. Moreover...we remain unconvinced that the company's planned upstream growth will lead to improved profitability and returns.\" — UBS Warburg (April 30, 2003); \"The burden of high debt levels and low returns, with abandoned targets and a weak near-term production profile, leaves the management in need of reestablishing credibility and share price performance.\" — Deutsche Bank (April 8, 2003); \"The material erosion of shareholder equity so soon after the completion of these two acquisitions is a clear disappointment... [It] also must raise questions as to the acquisition due diligence process within Hess...We believe investors' confidence in the company has been materially undermined...\" — UBS Warburg (February 3, 2003)", "attrs": null, "subkind": null, "toolName": "Authority citation", "toolSlug": "authority-citation", "confidence": null, "componentId": "019dd952-f5d2-7501-bd98-70f6d6b6f898", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.05, "w": 0.4, "x": 0.15, "y": 0.05 }, "kind": "title", "text": "...A Really, Really, Really Long Time", "attrs": null, "subkind": "headline", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "12cf64cd-0649-4ebf-a352-dc87818251a9", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [], "frameworks": [ { "name": "authority-citation", "slug": null, "matchId": "f8b98dae-29e3-4d66-a2e0-02282c4a03f1", "evidence": "Uses quotes from major financial institutions to build a case against management.", "confidence": 0.9 } ], "arcBeats": [ { "to": 84, "from": 77, "beatId": "e0b1ade6-05ea-43bb-b076-9aa676d6ed58", "arcName": "Problem-Agitate-Solution", "arcSlug": "problem-agitate-solution", "beatName": "Cite Precedent", "beatSlug": null, "evidence": "The presentation cites historical precedent for acknowledging Hess's problems", "position": 2, "confidence": 0.9, "parentBeatName": null, "parentBeatSlug": null } ], "loops": [ { "to": 84, "from": 76, "name": "The Reveal", "slug": "05-the-reveal", "bestFor": "Product launches, strategic pivots, unexpected findings", "matchId": "7c02518c-0b5e-4a3e-a160-1848e5662700", "evidence": "The presentation reveals the extent of Hess's problems and the need for change", "position": 1, "objective": "Reveal the extent of Hess's problems and the need for change", "structure": "Setup the Question -> Build Suspense -> The Big Reveal", "confidence": 0.8, "description": "Build mystery and anticipation, then deliver a surprising or powerful conclusion" } ], "imagePathAlt": null, "thumbSrc": null, "thumbSrcAlt": null, "locked": true }