{
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  "docSlug": "a910dc7cf6e8",
  "documentTitle": "BHP Billiton (BHP)",
  "authorId": "02_Elliott_Management",
  "authorName": "Elliott",
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  "sourceTypeSlug": "activist_investor",
  "sourceTypeLabel": "Activist investor",
  "presentationDate": "2017-05-16 00:00:00",
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  "pageNumber": 17,
  "pageCount": 39,
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  "slideType": "villain_critique",
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  "density": "dense",
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  "notes": "Uses a combination of a bar chart for capex and a comparison of spend vs. valuation to highlight value destruction.",
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  "components": [
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      "kind": "callout",
      "text": "Since 2002, management spent over US$8 billion on petroleum exploration – when compared to current broker valuation, this appears to have resulted in a near 100% loss",
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      "kind": "chart",
      "text": "Petroleum Capex, Exploration and M&A as % of FCF from Operations Post-Dividends and Post-Buybacks",
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      "text": "Cumulative petroleum exploration – since DLC merger",
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      "text": "In aggregate, despite more than doubling the average portion of BHP's annual free cash flow that is allocated to investing and re-investing in petroleum to 57%, both reserves and production have continued to decline. In addition to their failures with US onshore petroleum, management's exploration initiatives have been equally bad - c.US$8 billion spent since inception of the DLC and with not a single asset to which analysts assign any material value",
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      "text": "Petroleum Capex: US$66 billion",
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      "kind": "source-note",
      "text": "Source: Company filings (1) Asset values based on analyst consensus (2) Based on the average value ascribed to both discovered assets and exploration assets within the sum-of-the-parts valuations of major international brokers",
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      "kind": "title",
      "text": "Management's misguided and failed attempts to diversify risk through its involvement in the petroleum sector have destroyed significant shareholder value",
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      "kind": "title",
      "text": "Clear Value Destruction Through Failed Petroleum Investment",
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