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Baker Hughes Inc. (BHI)

  • Tue, Jul. 21, 9:17 AM
    • Baker Hughes (NYSE:BHI) -0.7% premarket after posting a larger than expected Q2 loss and a 33% Y/Y drop in revenues amid tumbling oil prices, and it expects to see further declines for the rest of the year.
    • "In North America, we don't anticipate activity to increase while commodity prices remain depressed," says CEO Martin Craighead, who also says seasonal activity in Canada likely will be offset by a decline in the U.S., while international rig counts will continue to decline.
    • Q2 revenue from North America, which accounted for nearly 38% of BHI's total revenue, fell 47% to $1.5B; overall revenue fell 33% to $3.97B but beat analyst expectations for $3.78B.
    • Craighead says cost-cutting made it possible for BHI have decremental margins of 35% compared to the previous year, which he says was a significant improvement from the 2009 downturn in oil prices.
    | Tue, Jul. 21, 9:17 AM | Comment!
  • Tue, Jul. 21, 8:02 AM
    • Baker Hughes (NYSE:BHI): Q2 EPS of -$0.14 misses by $0.01.
    • Revenue of $3.97B (-33.2% Y/Y) beats by $190M.
    • Press Release
    | Tue, Jul. 21, 8:02 AM | Comment!
  • Mon, Jul. 20, 5:30 PM
  • Mon, Jul. 20, 8:23 AM
    • Halliburton (NYSE:HAL+3.1% premarket after beating Q2 earnings and revenue expectations despite a 93% Y/Y profit drop.
    • HAL says Q2 revenue of $5.9B fell 16% Q/Q while outperforming a 26% drop in the worldwide rig count; operating income fell due to lower activity levels for all product lines, exacerbated by pricing declines, primarily in North America.
    • Q2 revenue In North America fell 25% Q/Q, significantly better than the 40% decline in average rig count; pricing erosion continued during the quarter, but decremental margins were less severe than previous downturns, which HAL says shows its cost reduction initiatives are helping to offset current market challenges.
    • HAL says it has received the initial rounds of bids on previously announced sales related to the Baker Hughes (NYSE:BHI) acquisition, is "pleased with the prices and level of interest," remains "fully committed" to closing the deal, and expects to achieve cost synergies of nearly $2B.
    | Mon, Jul. 20, 8:23 AM | Comment!
  • Mon, Jul. 13, 2:55 PM
    • Analysts continue to believe the merger of Halliburton (HAL +1.1%) and Baker Hughes (BHI +0.6%) will still go through, after the two companies agreed to extend the period for the Department of Justice review of the deal to the later of Nov. 25, 2015 or 90 days.
    • Oppenheimer's James Schumm says the extension "does not change our thinking or have any impact on our estimates" for a year-end 2015 closing; beyond the DoJ, HAL and BHI still need approval from other international regulators, notably in the European Union, and Schumm expects many to "piggyback" on the DoJ decision.
    • Sterne Agee analysts also believe the deal will close around year-end and expect the deal spread to close gradually over the next several months; the firm maintains a Buy rating on both stocks but prefers BHI as a less expensive way to own HAL longer term.
    | Mon, Jul. 13, 2:55 PM | 3 Comments
  • Fri, Jul. 10, 5:25 PM
    • Halliburton (NYSE:HAL) and Baker Hughes (NYSE:BHI) say they agree to extend until at least Nov. 25 the Department of Justice's review period for the merger of the oilfield services companies.
    • HAL also says it has proposed plans with various competition enforcement authorities around the world to divest more businesses than had been previously announced.
    • The companies say they now expect the $35B acquisition to close by Dec. 1.
    | Fri, Jul. 10, 5:25 PM | 9 Comments
  • Mon, Jul. 6, 7:00 AM
    • Statoil (NYSE:STO) has awarded Baker Hughes (NYSE:BHI) a 1.5B Norwegian crown ($187.2M) contract for integrated drilling services at the Johan Sverdrup field.
    • The contract is valid for six years with a four-year extension option for the entire field life.
    • STO -3% premarket
    | Mon, Jul. 6, 7:00 AM | 1 Comment
  • Sat, Jun. 27, 8:25 AM
    • Margins and revenues of the biggest oil services companies such as Schlumberger (NYSE:SLB), Halliburton (NYSE:HAL), Baker Hughes (NYSE:BHI) and Weatherford (NYSE:WFT) likely will remain at risk globally through 2016 due to the severity of the downturn in offshore and deepwater drilling, Wells Fargo says.
    • Helping to partially offset the expected weakness offshore is a more resilient international land market relative to previous downturns, led by continued growth in select Middle East countries and Russia and relatively firm activity in Argentina, the firm says.
    • The firm calls HAL its top pick among major oil services (NYSEARCA:OIH), but it lowers FY 2015 earnings estimates to negative territory for WFT and BHI.
    • Earlier: Halliburton, Schlumberger stand out in battered oil services, J.P. Morgan says
    | Sat, Jun. 27, 8:25 AM | 14 Comments
  • Tue, Jun. 9, 8:55 PM
    • GE's $12B deal to sell its U.S. private-equity lending business to Canada Pension Plan Investment Board is just the beginning of its plan to shed ~$200B of GE Capital assets - and a whole lot of cash to spend on takeovers.
    • Although GE may not make a move right away as it tries to complete the $14B purchase of most of Alstom’s energy business, Bloomberg figures it could amass a $40B war chest for takeovers.
    • Among speculated targets: Pentair (NYSE:PNR), a provider of water pumps and filtration systems; Flowserve (NYSE:FLS), a maker of industrial pumps and valves; electrical components manufacturer Hubbell (HUB.A, HUB.B); life sciences equipment maker Bio-Rad Laboratories (NYSE:BIO); and some of the assets Halliburton (NYSE:HAL) and Baker Hughes (NYSE:BHI) will divest as part of their merger.
    • Whatever the target, acquisitions likely will be part of GE’s transformation after asset sales and returning capital to shareholders.
    | Tue, Jun. 9, 8:55 PM | 26 Comments
  • Fri, May 29, 2:23 PM
    • The U.S. oil rig count fell by 13 to 646 in the latest week, according to the latest survey from Baker Hughes (NYSE:BHI), marking the 25th straight week of declines, as the overall count for oil and gas rigs declines 10 to 875.
    • There are now ~60% fewer oil rigs working since last October's peak of 1,609.
    • Crude oil prices were up sharply before the count was released and remain so, with WTI crude +4.9% to $60.51/bbl and Brent +4.9% to $65.68.
    | Fri, May 29, 2:23 PM | 8 Comments
  • Fri, May 22, 1:56 PM
    | Fri, May 22, 1:56 PM | 25 Comments
  • Thu, May 21, 9:17 AM
    • New additions to Goldman's hedge fund hotels - 50 stocks which most frequently appear among the largest ten holdings of hedge funds: AerCap (NYSE:AER), Assured Guaranty (NYSE:AGO), Baker Hughes (NYSE:BHI), Citizens Financial (NYSE:CFG), Colony Capital (NYSE:CLNY), Dresser-Rand (NYSE:DRC), Family Dollar (NYSE:FDO), Hospira (NYSE:HSP), Netflix (NASDAQ:NFLX), NXP Semi (NASDAQ:NXPI), Pharmacyclics (NASDAQ:PCYC), Visa (NYSE:V), and Walgreens (NASDAQ:WBA).
    • Since 2001, the basket has outperformed the S&P 500 in 66% of quarters by an average of 73 basis points. YTD, however, it has underperformed by nine bps. Goldman notes the current basket overweights Consumer Discretionary (22%) and underweights Consumer Staples (2%).
    • Looking at the full list, Actavis (NYSE:ACT) leads the way, with 77 funds naming the stock as a top 10 holding. Next up is Apple (NASDAQ:AAPL) with 69, then Facebook (NASDAQ:FB) at 42. For the entire list of 50, the average is 26 funds making a stock a top 10 holding.
    • The rest in order: Valeant (NYSE:VRX), Microsoft (NASDAQ:MSFT), DirecTV (NASDAQ:DTV), Citigroup (NYSE:C), Time Warner (NYSE:TWC), Delta (NYSE:DAL), Cheneire (NYSEMKT:LNG), Yahoo (NASDAQ:YHOO), Liberty Global (NASDAQ:LBTYK), AIG, SunEdison (NYSE:SUNE), Air Products (NYSE:APD), Amazon (NASDAQ:AMZN), GM, BofA (NYSE:BAC), JPMorgan (NYSE:JPM), Macquarie Infrastructure (NYSE:MIC), American Airlines (NASDAQ:AAL), Charter Communications (NASDAQ:CHTR), Google (GOOG, GOOGL), Ally Financial (NYSE:ALLY), NorthStar Realty (NYSE:NRF), Priceline (NASDAQ:PCLN), eBay (NASDAQ:EBAY), MasterCard (NYSE:MA), Alibaba (NYSE:BABA), Micron (NASDAQ:MU), Williams (NYSE:WMB), Gilead (NASDAQ:GILD), Berkshire Hathaway (BRK.A, BRK.B), Dolar General (NYSE:DG), NorthStar Asset (NYSE:NSAM), Brookdale Senior (NYSE:BKD), DISH Network (NASDAQ:DISH).
    • See also: Goldman updates list of hedge funds most-shorted stocks (May 21)
    | Thu, May 21, 9:17 AM | 19 Comments
  • Fri, May 15, 1:59 PM
    • The number of rigs drilling for oil fell by eight this week to 660, the 23rd consecutive weekly decline but the fewest rigs taken out of U.S. oil fields since December, according to the latest survey from Baker Hughes (NYSE:BHI).
    • U.S. oil rigs have fallen from a high of 1,609 reached in mid-October, and U.S. drillers were operating 1,531 oil rigs at this time last year.
    • Combined oil and gas rigs fell by six to a total of 888, as gas rigs rose by two to 223.
    | Fri, May 15, 1:59 PM | 4 Comments
  • Thu, May 14, 4:43 PM
    • Baker Hughes (NYSE:BHI) declares $0.17/share quarterly dividend, in line with previous.
    • Forward yield 1.04%
    • Payable June 24; for shareholders of record June 3; ex-div June 1.
    | Thu, May 14, 4:43 PM | Comment!
  • Fri, May 1, 2:13 PM
    | Fri, May 1, 2:13 PM | 31 Comments
  • Fri, Apr. 24, 1:50 PM
    • U.S. oil drillers took another 31 rigs out of service last week, falling for the 20th consecutive week and bringing the total number of active rigs down to 703 from their October peak of ~1,600, according to the latest weekly survey from Baker Hughes (NYSE:BHI).
    • More than half of the oil rigs idled this week were in in Texas, as the state’s rig count fell by 19 to 393, down from 894 a year ago; of that number, a dozen were sidelined in the Permian Basin in west Texas.
    • The total U.S. natural gas rig count rose by eight to 225 rigs; the overall total U.S. rig count declined 22 to 932 (four rigs were listed as miscellaneous).
    | Fri, Apr. 24, 1:50 PM | 30 Comments
Company Description
Baker Hughes Inc operates in the oilfield services industry. It provides products and services for drilling and evaluation of oil and gas wells, completion and production of oil and gas wells, fluids and chemicals and reservoir technology.