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Baker Hughes Inc. (BHI)

  • Thu, Apr. 23, 5:49 PM
    • At least a half-dozen major industrial companies - including GE, Caterpillar (NYSE:CAT) Siemens (OTCPK:SIEGY), Honeywell (NYSE:HON), Dover (NYSE:DOV), Danaher (NYSE:DHR) and Emerson Electric (NYSE:EMR) - are said to be weighing offers for oilfield services assets worth $5B-$10B that Halliburton (NYSE:HAL) is preparing to sell ahead of its pending merger with Baker Hughes (NYSE:BHI), Bloomberg reports.
    • HAL reportedly will send offering materials to those companies, as well as P-E firms and rival oilfield services providers, in the coming weeks; first up likely will be the drill bits unit and another that uses data to track and steer the direction of drills.
    • These companies could own an edge over oilfield services companies that analysts have pegged as logical bidders for HAL’s castoffs - such as National Oilwell Varco (NYSE:NOV) and Superior Energy Services (NYSE:SPN) - because HAL might not want to give any more market share to companies that already offer the same services, preferring to sell to new players entering the market.
    | Thu, Apr. 23, 5:49 PM | 1 Comment
  • Tue, Apr. 21, 8:59 AM
    • Baker Hughes (NYSE:BHI) -1.2% premarket after reporting Q1 results that came in well below expectations, and the company also says it has cut 17% of its workforce.
    • BHI reported a non-GAAP loss of $0.07 but there were additional charges of $0.30 which the company decided not to classify as adjustments, so it is not clear if this is comparable to consensus; revenues fell 20% Y/Y to $4.59B vs. the $5.39B consensus.
    • BHI says it is increasing its job cuts to 10.5K workers, adding to its planned layoffs from the 7K job cut it announced earlier this year.
    • BHI also says it closed or consolidated 140 facilities around the world during Q1 and idled excess inventory and assets; BHI believes the combined cost cutting efforts should save more than $700M/year.
    • CEO Martin Craighead says BHI expects the downturn to continue into Q2 and will make additional cuts if needed; the company estimates that 20% of the wells recently drilled in the U.S. have not been through completion stages.
    • Meanwhile, BHI says it is moving forward with its deal to be bought by Halliburton (NYSE:HAL).
    | Tue, Apr. 21, 8:59 AM | Comment!
  • Tue, Apr. 21, 8:10 AM
    • Baker Hughes (NYSE:BHI): Q1 EPS of -$0.07 may not be comparable to consensus of $0.46.
    • Revenue of $4.59B (-19.9% Y/Y) misses by $800M.
    • Press Release
    | Tue, Apr. 21, 8:10 AM | Comment!
  • Mon, Apr. 20, 5:30 PM
  • Fri, Apr. 17, 2:10 PM
    • The U.S. oil rig count resumes its slide, as producers idled another 26 rigs this week to 734, according to the latest survey from Baker Hughes (NYSE:BHI).
    • The oil rig count is now down 55% from its peak of 1,609 in late October 2014.
    • Natural gas rigs fell by eight to 217, sending the U.S. combined count of oil and gas rigs down by 34 to stand at 954.
    • Texas lost 15 units to 412, down 494 since the Nov. 21 peak, Oklahoma lost six units to 118, and North Dakota shed five to 83.
    | Fri, Apr. 17, 2:10 PM | 30 Comments
  • Thu, Apr. 16, 5:55 PM
    • Halliburton (NYSE:HAL) has hired Bank of America and Deutsche Bank to assist in the sale of two businesses that could be valued at as much as a combined $5B, Reuters reports.
    • BofA reportedly has been tasked with selling parts of HAL's Sperry Drilling business, which provides offshore and onshore drilling and petrophysical engineering services, while Deutsche Bank is working to sell HAL's drill bits business, including the roller cone bits and fixed cutter bits.
    • Credit Suisse, which advised HAL on its deal with Baker Hughes (NYSE:BHI) in November, is said to be the global coordinator for all divestitures and would be involved in each auction.
    • Many of HAL's clients have halted or postponed drilling projects in the wake of low oil prices, which could weigh on the value of the assets for sale.
    | Thu, Apr. 16, 5:55 PM | 3 Comments
  • Thu, Apr. 16, 5:27 PM
    • Schlumberger (NYSE:SLB+2.5% AH after Q1 earnings fell sharply Y/Y but beat Wall Street estimates, and the company said it would cut another 2K jobs.
    • SLB now plans to cut another 11K jobs, leading to a total workforce reduction of ~15% compared to the peak from last year's Q3, after laying off 9K employees late last year; SLB recorded a related $390M pretax charge in Q1.
    • SLB had warned that its North American operations would be hardest hit by the plunge in oil prices, and its Q1 North America revenue fell 13% to $3.2B; most of SLB’s operations are international, where Q1 revenue fell 8% to $6.9B.
    • CEO Paal Kibsgaard says the company believes "a recovery in U.S. land drilling activity will be pushed out in time, as the inventory of uncompleted wells builds and as the re-fracturing market expands, [but] a recovery in activity will fall well short of reaching previous levels, hence extending the period of pricing weakness."
    • SLB also says it is cutting its 2015 capex guidance to $2.5B from an earlier estimate of $3B and down from $4B spent last year.
    • S&P analyst Stewart Glickman says it is hard to see where the company and its rivals can cut without slicing into muscle.
    • SLB's two largest competitors, Halliburton (NYSE:HAL) and Baker Hughes (NYSE:BHI) - which agreed to merge last year - are scheduled to report earnings next week.
    | Thu, Apr. 16, 5:27 PM | 18 Comments
  • Fri, Apr. 10, 2:15 PM
    • The U.S. energy industry slowdown picked up steam this week, as the total U.S. oil rig count fell by 40 to 760 rigs after slipping by just 11 last week and 12 in the prior week, according to the latest survey from Baker Hughes (NYSE:BHI).
    • The oil rig count has fallen for 18 consecutive weeks and is down 53% from the recent peak of 1,609 rigs hit on Oct 10, 2014.
    • The pace of the pullback quickened in Texas, where 29 land rigs were taken down this week after declining by just six lat week and three the week before.
    • The total U.S. natural gas rig count rose by three to 225 rigs.
    | Fri, Apr. 10, 2:15 PM | 19 Comments
  • Thu, Apr. 2, 2:13 PM
    • Just 11 U.S. oil rigs were idled this week, Baker Hughes (NYSE:BHI) says in its latest survey, signaling that the sharp decline in active drilling units this year is leveling off.
    • The oil rig count fell by the smallest number in 15 weeks to 802, still a 50% retreat since last October.
    • Eleven natural gas rigs were idled and two miscellaneous rigs went to work, bringing the total number of active U.S. rigs down by 20 to 1,028 for its lowest level since October 2009.
    | Thu, Apr. 2, 2:13 PM | 10 Comments
  • Wed, Apr. 1, 3:38 PM
    • Even if oil prices rebound, oilfield services firms have a tough year ahead as producers squeeze them for deeper discounts, Moody’s says in a new analysis, predicting that the industry is headed for a “deep, protracted cyclical downturn."
    • Because many oil companies are drilling but not completing wells, oil services firms that provide production-related services will fare better than those offering pressure pumping, seismic services and other exploration-type activities.
    • No company is immune, but the big three - Schlumberger (NYSE:SLB), Halliburton (NYSE:HAL) and Baker Hughes (NYSE:BHI) - are best positioned because they are large, diverse, well-funded and have operations outside of North America, Moody's says, while Paragon Offshore (NYSE:PGN) and Hercules Offshore (NASDAQ:HERO) will see the sharpest decline in earnings as contracts expire for their fleet of older-generation jackup rigs.
    • Moody’s expects to see more offshore firms stack rigs, delay rig deliveries and write down assets as contracts get changed or canceled;lLand drillers will not fare much better, particularly those operating in expensive U.S. shale plays.
    • ETFs: OIH, XES, IEZ
    | Wed, Apr. 1, 3:38 PM | 11 Comments
  • Fri, Mar. 27, 1:19 PM
    • The total U.S. rig count fell by another 21 units to 1,048 in the 16th consecutive week of decline, but at a much slower rate than in recent weeks, according to Baker Hughes (NYSE:BHI) latest weekly survey.
    • Oil rigs fell by 12 to 813, down 50% since its October 2014 peak, while gas rigs fell by 9 to 233, down 27% since October.
    | Fri, Mar. 27, 1:19 PM | 15 Comments
  • Fri, Mar. 27, 1:00 PM
    • More than 98% of voting shareholders from both companies approve the $34.6B megadeal for Halliburton (HAL -0.4%) to acquire Baker Hughes (BHI -0.2%).
    • The combination of the two oilfield services giants is not expected to close until H2 of this year after going through the regulatory process and the sales of some business units and assets by both companies.
    • Both companies have been downsizing sharply, citing the oil crash rather than the merger; HAL is cutting up to 6.5K jobs from its 80K global headcount while BHI is shedding 7K of its nearly 60K jobs.
    | Fri, Mar. 27, 1:00 PM | 4 Comments
  • Fri, Mar. 20, 1:20 PM
    | Fri, Mar. 20, 1:20 PM | 72 Comments
  • Fri, Mar. 20, 8:49 AM
    • Halliburton (NYSE:HAL) and Baker Hughes (NYSE:BHI) plan to begin seeking buyers in April for as much as $10B in assets the companies need to sell in order to complete their merger, Bloomberg reports.
    • The companies are said to be planning to unload at least four batches of overlapping business lines - including HAL’s drill bits and directional drilling operations and BHI’s cementing division - to win approval from the U.S. Justice Department for their $34.6B merger.
    • HAL’s drill bits business should be worth as much as $2B, its drilling arm could go for as much as $3B, and BHI’s cementing arm could fetch $1B, sources say.
    | Fri, Mar. 20, 8:49 AM | 10 Comments
  • Fri, Mar. 13, 2:58 PM
    • Oppenheimer cuts its EPS estimates and stock price targets on Schlumberger (SLB -1%), Halliburton (HAL -2.4%) and Baker Hughes (BHI -1.8%), as the companies are in the midst of one of the sharpest activity reductions in this sector in the past 30 years, but its maintains Outperform ratings that still come with big upside if the respective price targets are met.
    • The firm believes the rapid pace of activity decline benefits investors because it could bring world oil markets into balance more quickly, and sees a better than average chance for upside surprise in 2016 due to recovering oil prices and healthy incremental margins from 2015 cost-reduction measures.
    • Oppenheimer cut SLB's 2015 EPS estimate to $3.35 from $4.25, its 2016 estimate to $4.40 from $5.50, and its price target to $101 from $110; HAL's 2015 EPS is lowered to $1.70 from $2.70, its 2016 EPS to $2.85 from $4.00, and its price target to $60 from $64; BHI's 2015 EPS is reduced to $1.75 from $2.50, its 2016 EPS to $2.60 from $3.40, and its price target to $58 from $60.
    | Fri, Mar. 13, 2:58 PM | 9 Comments
  • Fri, Mar. 13, 2:14 PM
    • The U.S. oil rig count falls for the 14th straight week, down by another 56 to 866 rigs for its lowest level since March 2011, according to the latest data from Baker Hughes (NYSE:BHI).
    • There are now ~46% fewer oil rigs working since a peak of 1,609 in October, but that has not yet translated into a drop in actual production.
    • Combined, both oil and gas rigs fell by 67 to 1,125, down 686 from 1,809 at this stage a year ago; gas rigs were lower by 11 to 257.
    • U.S. crude prices already had dropped sharply - now -4.2% to just above $45/bbl - after the IEA said a global oil glut is building and U.S. oil production shows no signs of slowing.
    | Fri, Mar. 13, 2:14 PM | 55 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.