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  "documentTitle": "BHP Billiton (BHP)",
  "authorId": "02_Elliott_Management",
  "authorName": "Elliott",
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  "presentationDate": "2017-05-16 00:00:00",
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  "notes": "Uses a waterfall-style chart to illustrate capital loss.",
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      "text": "US$29.2 billion total investment",
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      "text": "US$6.5 billion consensus valuation",
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      "kind": "callout",
      "text": "BHP's c.US$19.9 billion of US onshore acquisitions has led to US$13.1 billion of write-downs, and negative pre-tax free cash flow(1) since purchase of US$9.4 billion for an asset currently valued by brokers at c.US$6.5 billion",
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      "text": "BHP's Value Destruction in US Onshore",
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      "text": "BHP's management have offered no more than the possibility of a sale of their most challenged asset, Fayetteville, at a potential 85% loss(2), as a means of somehow “rescuing” shareholder value. Instead, a demerger and separate listing of BHP's US petroleum business(3) is a rational way of recovering some of the shareholder value which has been destroyed over time in BHP's ill-fated foray into the US onshore petroleum sector",
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      "text": "value destroyed: 78%",
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      "text": "BHP's c.US$19.9 billion of US onshore acquisitions has led to US$13.1 billion of write-downs, and negative pre-tax free cash flow(1) since purchase of US$9.4 billion for an asset currently valued by brokers at c.US$6.5 billion",
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      "text": "78% of value destroyed (-29% IRR)",
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      "text": "(1) Free cash flow means EBITDA minus capex (2) Assumes a sale at current analyst consensus valuations for Fayetteville (3) The “US petroleum business” means BHP's US onshore petroleum assets and its Gulf of Mexico assets",
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      "kind": "title",
      "text": "US Onshore – a Painful Case Study of Value Destruction",
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