Hedge fund Elliott turns up heat on BP with demand for deep spending cuts

Unlock the editor’s digest in free

FT editor Raula Khalaf selected his favorite stories in this weekly newsletter.

Eliot Management is pushing BP to increase its free cash flow to an additional by 5 percent, as worker investors have made the fuel group partnership more than 5 percent and the company has criticized the company.

US -based hedge funds say BP According to people familiar with the discussion, the “basic reset” described by the CEO of the oil and gas group in February does not go down enough and presents alternative plans.

Eliot According to people familiar with the discussion, Bipi is urging his focus to increase his oil and gas business from increasing his oil and gas business and promote 20BN’s goals. It represents the increase in 40 percent in the underlying target in February when BP revealed its “adjusted” free cash flow over $ 8 billion more than $ 8 billion last year.

A man, who is familiar with Eliot’s thoughts, says “Murray has taken 18 months to bring a three -year plan that is not ambitious or urgent,” “With the end of the macroeconomic environment and investors’ patience is not time for BP. BP’s continued skills make it open for a tex.”

On Tuesday, BP announced that Eliot had grown more than 5 percent of his shares, priced at about $ 2.5 billion, equal to its shareholding with the company’s second largest investor Vanguard. BP shares have dropped by about 18 percent since the announcement of the new strategy, whose market value has dropped to $ 57 billion.

The hedge fund believes that BP’s expenditure can be more disciplined, if the company has transmitted $ 1 billion to $ 1 billion in $ 1 billion in $ 1 billion in $ 1 billion, then it has a route for higher evaluation. Eliot also thinks that BP can save $ 5 billion dollars out of its current target.

The Staff Also believe that BP’s solar and offshore air power business should be sold and it has a place to reduce the cost across oil and gas business because its future oil resources are sufficient. “It is not about the pursuit of growth in the oil and gas bits of the business of Eliot’s thoughts, but about the discipline in investing.”

Eliot alleged that the roots of the management agency do not acknowledge the roots that go out of it Strategic pivot away from renewingPeople said.

“The diagnosis of the management is about all the vibrations and the atmosphere about Eliot’s vision.” Eliot’s diagnosis is the story of how bad it has been done for the past few years, how they have raised the cost. ” They also added that the Chair Helz was the reason to believe that BP staff should be more widely changed beyond the departure of Lond Lond.

A quarter of BP shareholders Voting At the company’s annual meeting last week, the investors reflect the frustration.

Examples of its weak capital discipline in BP were included in the Tortu LNG project of Senegal and a shell oil in the United States, the partner Divon Energy partner high expense was included in the US. They also say that BP’s $ 4 billion of biogas business expenditure was risky due to fuel dependence on federal tax credit and uncertain market possibilities.

BP and Eliot refused to comment.