{
  "docId": "019de06f-8253-71ea-99e9-82a4c73e226c",
  "docSlug": "26c842e25e72eb94e4d80a5389b70aba",
  "documentTitle": "Elliott Management | Activist Presentation Deck | 39 slides",
  "authorId": "elliott-management",
  "authorName": "Elliott Management",
  "documentKindSlug": "activist-deck",
  "documentKindLabel": "Activist deck",
  "sourceTypeSlug": "activist_investor",
  "sourceTypeLabel": "Activist investor",
  "presentationDate": "2017-05-01 00:00:00",
  "orientation": "landscape",
  "aspectRatio": 1.4446952,
  "pageNumber": 16,
  "pageCount": 39,
  "prevPage": 15,
  "nextPage": 17,
  "slideType": "villain_critique",
  "function": "name_villain",
  "density": "dense",
  "nDataPoints": 11,
  "notes": "Uses a waterfall-style chart to illustrate the accumulation of investment and subsequent erosion of value.",
  "elementsJson": null,
  "metadataConfidence": 1,
  "imagePath": null,
  "slideHref": "/slides/019de06f-8253-71ea-99e9-82a4c73e226c/16",
  "deckHref": "/decks/019de06f-8253-71ea-99e9-82a4c73e226c",
  "deckJsonHref": "/decks/019de06f-8253-71ea-99e9-82a4c73e226c.json",
  "deckAnchorHref": "/decks/019de06f-8253-71ea-99e9-82a4c73e226c#slide-16",
  "components": [
    {
      "bbox": {
        "h": 0.11,
        "w": 0.17,
        "x": 0.815,
        "y": 0.46
      },
      "kind": "callout",
      "text": "US$6.5 billion consensus valuation",
      "attrs": null,
      "subkind": "primary",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "1d42829d-1fa6-42eb-a107-1e5ef439ec15",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.11,
        "w": 0.17,
        "x": 0.815,
        "y": 0.315
      },
      "kind": "callout",
      "text": "US$29.2 billion total investment",
      "attrs": null,
      "subkind": "primary",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "5692b9f4-f4f1-4c39-a15a-46220f39df6f",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.45,
        "w": 0.75,
        "x": 0.05,
        "y": 0.26
      },
      "kind": "chart",
      "text": "BHP's Value Destruction in US Onshore",
      "attrs": null,
      "subkind": "waterfall",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "841bbb17-5a5e-43fb-9c2a-fc5a665331bf",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.08,
        "w": 0.96,
        "x": 0.02,
        "y": 0.76
      },
      "kind": "list",
      "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",
      "attrs": null,
      "subkind": "bullet",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "0aeb902d-bd85-4c9b-a569-da65a6701629",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.08,
        "w": 0.96,
        "x": 0.02,
        "y": 0.84
      },
      "kind": "list",
      "text": "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",
      "attrs": null,
      "subkind": "bullet",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "f396a16c-ffa1-4d64-ba0d-82d159865fb5",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.07,
        "w": 0.96,
        "x": 0.02,
        "y": 0.16
      },
      "kind": "paragraph",
      "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",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "f74553e5-8db1-4c98-9952-23c39adcc205",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.08,
        "w": 0.6,
        "x": 0.02,
        "y": 0.91
      },
      "kind": "source-note",
      "text": "(1) Free cash flow means EBITDA minus capex\n(2) Assumes a sale at current analyst consensus valuations for Fayetteville\n(3) The “US petroleum business” means BHP's US onshore petroleum assets and its Gulf of Mexico assets",
      "attrs": null,
      "subkind": null,
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "2ec25fac-64da-44c3-826f-c1938caeb5b5",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.05,
        "w": 0.75,
        "x": 0.02,
        "y": 0.05
      },
      "kind": "title",
      "text": "US Onshore – a Painful Case Study of Value Destruction",
      "attrs": null,
      "subkind": "headline",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "1a16bff4-8002-4fee-a79b-d9a52abd3c94",
      "frameworkName": null,
      "frameworkSlug": null
    }
  ],
  "metrics": [],
  "tools": [
    {
      "name": "Waterfall chart",
      "slug": "waterfall-chart",
      "agent": null,
      "layer": "slide",
      "matchId": "45776ad5-97f8-4df0-ab41-be1c1336ad5c",
      "evidence": "chart/waterfall: BHP's Value Destruction in US Onshore",
      "confidence": 0.7
    }
  ],
  "frameworks": [],
  "arcBeats": [
    {
      "to": 21,
      "from": 15,
      "beatId": "1a7c96e2-07b9-4547-87f9-03711f976600",
      "arcName": "Problem-Agitate-Solution",
      "arcSlug": "problem-agitate-solution",
      "beatName": "Agitate",
      "beatSlug": "problem-agitate-solution-agitate-make-it-worse",
      "evidence": "Slides 15-21 expose contradictions in management's approach and highlight value destruction",
      "position": 1,
      "confidence": 0.8,
      "parentBeatName": "Development",
      "parentBeatSlug": "development"
    }
  ],
  "loops": [
    {
      "to": 21,
      "from": 15,
      "name": "Aha Moment",
      "slug": "03-aha-moment",
      "bestFor": "Data-heavy sections, research findings, analytical arguments",
      "matchId": "0efb7189-a994-459d-9ddb-56137f323ecd",
      "evidence": "Slides 15-21 reveal contradictions in management's approach",
      "position": 1,
      "objective": "Expose contradictions in management's approach",
      "structure": "The Problem/Question -> What the Data Shows -> The Insight",
      "confidence": 0.7,
      "description": "Establish a tension, present data, then deliver the insight that changes everything"
    }
  ],
  "imagePathAlt": null,
  "thumbSrc": null,
  "thumbSrcAlt": null,
  "locked": true
}