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Baker Hughes Inc. (BHI)

  • Jul. 17, 2014, 6:31 AM
    • Baker Hughes (NYSE:BHI): Q2 EPS of $0.92 beats by $0.02.
    • Revenue of $5.94B (+8.2% Y/Y) beats by $80M.
    • Press Release
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  • Jul. 16, 2014, 5:30 PM
  • Jul. 1, 2014, 8:31 AM
    • Petrobras (PBR) is set to offer more than $2B in drilling service contracts, some under revised terms after suppliers complained about the original agreements, according to a Bloomberg report.
    • PBR is said to be reissuing the contracts after a reduction in the company’s rig fleet eroded suppliers’ margins, and would be offering wireline and well completion contracts too.
    • Halliburton (HAL), which has said service companies in Brazil were seeking relief and that deepwater drilling activity was below expectations, reportedly would participate in the new contracts, as would Baker Hughes (BHI) and Schlumberger (SLB).
  • Jun. 25, 2014, 12:26 PM
    • Schlumberger (SLB +4.7%) surges after providing long-term profit guidance at an investor presentation today, predicting EPS growth at a compound annual growth rate of 17%-20%; in an earlier note, RBC analyst Kurt Hallead wrote that the Street was expecting the company's EPS to grow at an annualized rate of 15%.
    • SLB says it can achieve $9-$10 EPS through revenue growth, margin expansion and share repurchases; Hallead had predicted SLB's EPS would reach $8 in 2016.
    • Expects spending on exploration would be subdued in 2015, but expects a renewed focus on exploration in 2016-17.
    • Other oil services companies also are higher: HAL +2.1%, BHI +1.9%, WFT +1.1%, NOV +1%.
  • Jun. 18, 2014, 9:11 AM
    • The head of Iraq's state-run South Oil Co. says Exxon Mobil (XOM) has carried out a "major evacuation" of its staff and BP had evacuated 20% of its staff following the rapid advance of Sunni militants through the country; he says Eni (E), Schlumberger (SLB), Weatherford (WFT), and Baker Hughes (BHI) have no plans to evacuate staff.
    • "Current developments in the country have not affected and will not affect in any way the operations in the south" of the country, says the official, displeased with XOM's actions, adding that Iraq's crude export level for June will be 2.7M bbl/day.
  • May. 29, 2014, 12:57 PM
    • UBS says the tone was positive at its recent energy conference in Texas, with further data points supporting a strong outlook for the North American land market, and recommends sticking with its top oil service names.
    • UBS believes Baker Hughes' (BHI) margin gains in North America will be driven by continued margin improvement in pressure pumping, new technologies, increased activity in U.S. land and higher Gulf of Mexico activity.
    • FMC Technologies (FTI) is a top equipment stock to buy at UBS, where analysts believe subsea equipment is one of the few service areas that will see secular growth in 2014 and beyond.
    • Also recommended: FI, SLB, HAL, WFT.
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  • May. 27, 2014, 11:27 AM
    • Noting that Berkshire Hathaway's (BRK.A, BRK.B) Warren Buffett has suggested he will hunt for his next big acquisition among energy companies, Reuters speculates that strong candidates that fit Buffett's style could include Baker Hughes (BHI), Williams Partners (WPZ) and Pinnacle West Capital (PNW).
    • BHI has a fat ~$30B market cap but is trading at a discount to peers on several key metrics, WPZ sports the competitive advantage of its ownership of the Transco gas mainline which runs from Texas to New York, while PNW may be on the smallish side but offers strong cash flow from operations and reasonable debt.
  • May. 15, 2014, 12:58 PM
    • Oil service workers in Norway follow offshore platform workers in breaking off wage talks with employers, raising the prospect of a major strike.
    • Two unions representing ~6K in companies such as Halliburton (HAL), Schlumberger (SLB) and Baker Hughes (BHI) broke off the negotiations today, the last of three days of talks.
    • A strike at oil service companies could come on top of another potential strike of offshore platform workers who broke off a different series of wage talks last week.
  • May. 9, 2014, 12:23 PM
    • The EPA is taking the first formal step toward requiring oil and gas drillers to disclose the content of fluids they use in fracking, saying it will begin to solicit public comment on whether companies should publicly list the chemicals used to extract oil and gas out of the ground.
    • Disclosure of the chemicals by companies could be positive for industry if it can allay fears of fracking opponents about toxic chemicals in groundwater, says natural gas consultant Miriam Swydan Erickson.
    • Baker Hughes (BHI) said last month that it will spell out all the chemicals it uses in fracking, but many other major companies have said their chemical formulas are proprietary and disclosure could help competitors copy their process.
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  • May. 9, 2014, 11:35 AM
    • Baker Hughes Inc. (BHI) declares $0.17/share quarterly dividend, 13.3% increase from prior dividend of $0.15.
    • Forward yield 0.97%
    • Payable Aug. 15; for shareholders of record Aug. 4; ex-div July 31.
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  • Apr. 28, 2014, 3:59 PM
    • Work to bring Poland's Siekierki gas field online is set to begin shortly following a deal between operator San Leon Energy (SLGYF) and Baker Hughes (BHI -0.5%).
    • BHI will receive a return from 75% of profits generated from production, followed by a 10% net profit interest in the wells, in return for the full funding of all stages of the project.
    • Separately, Argus Research raises its BHI price target to $80 from $68, as it continues to expect the North American onshore market to drive earnings growth; the stock trades at 17x the firm's 2014 EPS estimate and 13.4x its 2015 estimate, seen as too low based on its forecast for average annual EPS growth of 42% over the next two years (
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  • Apr. 28, 2014, 1:50 PM
    • National Oilwell Varco (NOV -7.2%) is suffering its worst day in more than two years after reporting that Q1 orders for new offshore rig equipment fell 23% Y/Y to $2.33B and forecasting a continued slowdown in orders.
    • Backlog for new rig technology equipment, which hit a record during Q1 at $16.4B, should fall to $14B-$15B by year-end, CEO Clay Williams said on today's earnings call.
    • "The newbuild rig market is starting to show signs of shakiness," says Iberia Capital analyst Trey Stolz.
    • Other energy equipment providers also are lower: SLB -1.1%, BHI -1.2%, CAM -1.4%, FTI -1.2%, DRQ -1.2%, FET -1%.
  • Apr. 25, 2014, 10:59 AM
    • Baker Hughes (BHI) says it will reveal all chemicals it uses in hydraulic fracturing, information other big industry players have resisted providing as trade secrets.
    • BHI says its new data format will calm concerns of activist investors and environmental groups, as it will include in its newly formatted reports a complete analysis of its fluid mixtures, down to tiny trace elements of ammonium hydroxide.
    • Shareholder groups have so far failed to force Exxon, Chevron and others to disclose several quantitative metrics around shale-gas drilling.
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  • Apr. 24, 2014, 3:46 PM
    • Baker Hughes Inc. (BHI) declares $0.15/share quarterly dividend, in line with previous.
    • Forward yield 0.86%
    • Payable May 16; for shareholders of record May 5; ex-div May 1.
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  • Apr. 22, 2014, 5:15 PM
    • Some S&P energy stocks set new 52-week highs today, including Hess (HES), EQT and Baker Hughes (BHI), as the sector begins to catch up to the hype about the U.S. energy renaissance.
    • Analysts say oil and gas drillers are just starting to reap the benefits of an ancillary boom in energy-related technology and innovation; RBC Capital sees bullish prospects for rig companies, adding that drillers such as Helmerich & Payne (HP), Patterson-UTI (PTEN) and Nabors Industries (NBR) are best positioned to capitalize on the boom.
    • BofA/Merrill's Stephen Suttmeier offers a technical set-up, seeing energy poised for a breakout similar to Oct. 2010, when the sector moved above its 13-, 26- and 40-week relative moving averages and outperformed for another six months.
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  • Apr. 22, 2014, 12:32 PM
    • Oil services firms Baker Hughes (BHI +0.4%) and Aker Solutions (AKKVF) agree to form an alliance to develop subsea production solutions to boost recovery rates at a lower cost in offshore fields.
    • The two companies say the new venture aims to combine Aker's strengths in subsea production and processing systems with BHI's well completion and artificial lift specializations, as well as advance industry capabilities in subsea well intervention.
    • The deal is being driven by deepwater subsea fields which have "so far been characterized by low recovery rates, and new discoveries in deeper and more hostile environments are making these fields even more costly to develop," says BHI CEO Martin Craighead.
    • Separately, BHI is upgraded to Buy from Neutral with a $80 price target, up from $60, at Global Hunter following the strong Q1 earnings report citing expected efficiency enhancements and a potential upcycle in U.S. onshore development.
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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.