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Baker Hughes Inc. (BHI)

- NYSE
  • Tue, Feb. 17, 12:48 PM
    • ValueAct Capital has acquired ~30M shares in Halliburton (HAL +0.6%) alongside its activist holdings in Baker Hughes (BHI +0.4%), ~3.5% of HAL’s outstanding shares, Bloomberg reports, as it strongly backs the agreed merger of the two oilfield services providers.
    • ValueAct disclosed in a Jan. 16 filing it owned ~22M shares in BHI, a 5.1% stake; by buying into both sides, it is betting nearly $3B that cost and tax savings will strengthen the combined company amid turmoil in the energy industry and position it to benefit from a recovery.
    • Amid volatile energy prices, BHI consistently has traded below the $78.62 price when the HAL deal became public.
    | Comment!
  • Tue, Feb. 17, 10:19 AM
    • U.S. and European suppliers to the oil industry are still able to seek work in Russia’s Arctic despite sanctions designed to limit their involvement because the rules do not apply to international subsidiaries, according to a Bloomberg report.
    • Schlumberger’s (SLB -0.6%) Russian unit bid in a December tender to supply drilling fluids to an offshore Arctic project operated by Gazprom Neft, and in the prior month, Baker Hughes’ (BHI -0.4%) local unit and a Panamanian unit of Schlumberger offered drilling services at the same field.
    • Neither company has been accused of breaking any laws, and none of the bids was successful, but the use of subsidiaries to legally skirt sanctions will raise questions about the effectiveness of measures imposed to punish Russia.
    | 10 Comments
  • Fri, Feb. 13, 2:19 PM
    • The number of active U.S. land rigs plunged by 98 this week to settle at 1,358, in one of the biggest declines in the past three decades, Baker Hughes (NYSE:BHI) reports in its latest weekly survey.
    • The total is the lowest since Feb. 26, 2010, and 406 fewer units compared with this week a year ago; the count has now fallen 11 consecutive weeks, losing 562 units during that time.
    • Oil rigs lost 84 units to 1,056, while gas rigs lost 14 units to 300.
    • Texas, home to 44% of U.S. rigs, gave up 56 units to settle at 598 for its lowest total since Mar. 26, 2010; the state has lost 307 rigs since Nov. 21.
    • New Mexico dropped 12 units to 66, while North Dakota lost 9 to 123, both multi-year lows.
    • Nymex crude +2.5% at ~$52.50/bbl; Brent +3.1% at ~$61.15.
    • ETFs: USO, OIL, UCO, SCO, BNO, DTO, DBO, XES, IEZ, UWTI, USL, DWTI, DNO, SZO, OLO, TWTI, OLEM
    | 40 Comments
  • Tue, Feb. 10, 6:31 PM
    • Halliburton (NYSE:HAL) and Baker Hughes (NYSE:BHI) say they received a second request for more information from U.S. antitrust regulators related to the proposed merger of the oilfield services companies.
    • HAL and BHI say the notice was expected but will delay the deal’s closing until 30 days after both companies have complied with the request.
    • The deal has been expected to face stiff scrutiny from the Justice Department because the two companies have overlapping business units not only in the U.S. but also in Asia and Europe.
    | 6 Comments
  • Fri, Feb. 6, 2:19 PM
    • The U.S. drilling rig count plunged another 87 units to settle at 1,456 working rigs, according to Baker Hughes (NYSE:BHI) latest weekly survey.
    • The total is the lowest since March 2010, and 315 units fewer than in the same week last year; the count has now fallen for 10 straight weeks, losing 464 units during that time (435 targeting oil).
    • Oil rigs plummeted 83 units to 1,140, while gas rigs fell five units to 314.
    • Horizontal drilling rigs tumbled by 80 units to 1,088; 284 units have gone offline just since Nov. 21.
    • The monthly U.S. rig count for January averaged 1,683, down 199 from December and 86 lower than in Jan. 2014.
    • ETFs: USO, OIL, UCO, OIH, SCO, BNO, DTO, DBO, XES, IEZ, UWTI, USL, DWTI, DNO, SZO, OLO, TWTI, OLEM
    | 64 Comments
  • Fri, Jan. 30, 2:19 PM
    • The number of oil and gas rigs active in the U.S. fell another 90 units to 1,543 for the biggest one-week decline for oil rigs since 1987, according to the latest weekly survey from Baker Hughes (NYSE:BHI).
    • The total is the lowest since June 2010, and 242 units fewer than in the same week a year ago; the count has now fallen in nine consecutive weeks, losing 377 units during the period.
    • Oil rigs plunged 94 units to 1,223, while gas rigs gained three units to 319.
    • In Texas, 58 rigs were taken off the market, cutting the state’s count to 695 rigs, down from 840 at the beginning of this month.
    • ETFs: USO, OIL, UCO, OIH, SCO, BNO, DTO, DBO, XES, IEZ, UWTI, USL, DWTI, DNO, SZO, OLO, TWTI, OLEM
    | 55 Comments
  • Fri, Jan. 23, 2:15 PM
    • The number of oil and gas rigs in use in the U.S. fell by 43 last week to 1,633, bringing the rig count to its lowest level since Aug. 2010, according to the latest data from Baker Hughes (NYSE:BHI).
    • The count has now fallen in eight consecutive weeks, losing 287 units during that period; the U.S. now has 144 fewer rigs working than in the same week a year ago.
    • 42 of the 43 units that went offline in the past week were land-based, bringing the total to 1,568 and culminating a drop of 176 units in three weeks.
    • Oil rigs plunged 49 units to 1,317, while gas rigs gained six units to 316.
    • ETFs: USO, OIL, UCO, SCO, BNO, DTO, DBO, UWTI, USL, DWTI, DNO, SZO, OLO, TWTI, OLEM
    | 19 Comments
  • Thu, Jan. 22, 12:08 PM
    • Baker Hughes (NYSE:BHI) declares $0.17/share quarterly dividend, in line with previous.
    • Forward yield 1.17%
    • Payable March 25; for shareholders of record March 4; ex-div March 2.
    | Comment!
  • Wed, Jan. 21, 6:56 PM
    • Commenting on the proposed merger between Halliburton (NYSE:HAL) and Baker Hughes (NYSE:BHI), Morgan Stanley thinks the oil industry downturn may help HAL overcome antitrust hurdles, as weak oil prices make it harder to argue that market share power will translate into pricing power.
    • The weaker market also is likely to increase the value of the $2B in cost synergies HAL expects to achieve from the deal, given its much more depressed earnings figures, the firm adds.
    • Stanley lowers its earnings estimates for HAL but maintains its stock price valuation of $50/share.
    | Comment!
  • Tue, Jan. 20, 8:37 AM
    • Baker Hughes (NYSE:BHI) +1.6% premarket after easily beating Q4 earnings estimates but warning of a difficult 2015, similar to concerns discussed today in Halliburton's earnings report.
    • "While market demand ended up being more resilient in the fourth quarter than many had predicted, the recent declines seen in rig counts will clearly affect results in 2015," BHI CEO Martin Craighead says.
    • Q4 revenue at BHI's North American segment jumped 20.4% to $3.3B, Middle East/Asia Pacific revenue rose 13%, Europe/Africa/Russia added 5%, and Latin America revenue slipped 2%.
    • BHI says it realized its best pressure pumping margins in three years and hit its goal of mid-teens operating margins in North America; international results exceeded forecasts, driven by a surge in year-end product sales.
    • Says it will lay off 7,000 employees, mostly in the current quarter, and is reviewing its facilities for possible closures; expects to book a one-time charge of $160M-$185M.
    • On Friday, activist investor ValueAct Capital Management reported a 5.1% stake in BHI, an unusual move since the company is being bought by Halliburton; ValueAct began buying the week after the deal was announced in November.
    | Comment!
  • Tue, Jan. 20, 6:02 AM
    • Baker Hughes (NYSE:BHI): FQ4 EPS of $1.44 beats by $0.37.
    • Revenue of $6.6B (+12.6% Y/Y) beats by $190M.
    • Press Release
    | Comment!
  • Mon, Jan. 19, 5:30 PM
  • Fri, Jan. 16, 3:27 PM
    • Schlumberger (SLB +5.8%) pushes to highs of the day following Q4 results that were strong operationally once the big writedowns are stripped away, with continued strength driven by record activity in North America, Middle East and Asia.
    • In today's earnings conference call, CEO Paal Kibsgaard says crude oil’s collapse is putting heat on SLB’s prices for drilling services and fracking in North America, but the upside is that shale producers now want better technologies to squeeze more oil out of the wells they have already drilled.
    • Next-generation fracturing fluids SLB introduced early last year have so far grown in sales at 4x the rate of its 2011 iteration - which was a fast grower on its own - as falling oil prices force oil companies to adopt new technologies faster and more broadly.
    • On the pending merger with Baker Hughes (NYSE:BHI), the CEO says the deal could mean a glass ceiling on SLB’s market share in some countries will fall away.
    | 8 Comments
  • Fri, Jan. 16, 2:27 PM
    • The U.S. drilling rig count plunged 74 units, all on land, to settle at 1,676 rigs working in the latest week for the lowest total since Oct. 2010, Baker Hughes (NYSE:BHI) says in its weekly report.
    • The count has now fallen for seven straight weeks as it has lost 244 units, and the U.S. now has 101 fewer rigs than during the same week a year ago.
    • Most of the losses came in Texas, where the count fell 44 units to 766 to bring the state’s total to its lowest since Mar. 2011; North Dakota gave up just six units to 156.
    • Canada added 74 rigs, but still has 125 fewer rigs compared with this week a year ago.
    • ETFs: USO, OIL, UCO, SCO, BNO, DTO, DBO, UWTI, USL, DWTI, DNO, SZO, OLO, TWTI, OLEM
    | 12 Comments
  • Fri, Jan. 9, 3:48 PM
    | 6 Comments
  • Fri, Jan. 9, 2:58 PM
    • Barclays begins coverage of Halliburton (HAL -0.9%) as its top pick in the oilfield services and equipment sector at the same time as it views the overall sector as fairly valued.
    • The firm predicts HAL will gain market share during the current downturn since it charges the cheapest prices in North America in its group, and believes HAL’s pending acquisition of Baker Hughes (NYSE:BHI) should enable it to catch up with Schlumberger (NYSE:SLB) in terms of operational aptitude and stock multiple.
    • KeyBanc is less enthusiastic on HAL, rating the stock a Hold and saying the company faces "immediate risks" related to market challenges, market share erosion, and sales of assets as conditions of the BHI deal.
    • Earlier: Barclays says North America E&P spending could drop 30% or more
    | 3 Comments
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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.