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.
Apr. 24, 2014, 3:46 PM
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.
- ETFs: XLE, ERX, OIH, VDE, ERY, FCG, XOP, DIG, DUG, GASL, FRAK, XES, IYE, IEO, IEZ, GASX, PXE, PXJ, PXI, PSCE, FENY, RYE, FXN, DDG
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.
Apr. 21, 2014, 3:58 PM
- Baker Hughes (BHI +2.8%) enjoys solid gains as at least three firms raise their stock price targets after last week's better than expected Q1 earnings report.
- RBC Capital lifted its BHI target to $74 from $70, believing investors have been focused on BHI's North American margin improvement, upside earnings revision prospects and free cash flow generation.
- Cowen raised its target to $73 from $59, believing the large-cap diversified companies offering new innovative technologies that save operators time and money will continue to gain market share at the expense of smaller competitors.
- BMO Capital hiked its price target to $80 from $62. (Briefing.com)
Apr. 17, 2014, 2:22 PM
- Baker Hughes (BHI +4%) Chairman/CEO Martin Craighead said in today's earnings call that growing U.S. well counts, led by the Permian Basin, are increasing demand for the company's products given the increasingly complex nature of oil production.
- Management said it sees strong commodity prices supporting spending by its customers; for Q2, it expects a seasonal drop in its North America business to be more than offset by gains in other segments, leading to earnings growth similar to Q1.
- FBR Capital reiterates an Outperform rating on the stock, writing that the quarter demonstrates why the stock has been its top pick in the group.
Apr. 17, 2014, 11:29 AM
- Deutsche Bank analysts raise their price targets on top oil service stocks (OIH), seeing increasing strength in a North American cyclical recovery with current forward earnings estimates perhaps proving to be conservative.
- Basic Energy Services (BAS) gets a big price boost to $43 from $18, citing a recent activity update that indicated utilization levels had increased across all the company’s business segments.
- Other top stocks rated Buy at the firm, including those whose price objectives have been raised: BHI, EXH, HAL, PTEN, PES, SLB.
Apr. 17, 2014, 8:15 AM
- Baker Hughes (BHI) +3.9% premarket after reporting a 23% Y/Y gain in Q1 earnings and a nearly 10% jump in revenue, in results that beat expectations.
- The North American segment, BHI's largest geographic business by revenue, posted a 6.6% gain in revenue to $2.78B, a 24% improvement in the Middle East and Asia Pacific region, and a 17% advance in the Europe, Africa and Russia Caspian segment; Latin America revenue shrank 10%.
- North America margins improved by 200 bps despite a drop in well count caused by severe winter weather in the Rockies and northeast U.S.
Apr. 17, 2014, 6:32 AM
Apr. 17, 2014, 12:05 AM
Apr. 16, 2014, 5:30 PM
Apr. 14, 2014, 3:58 PM
- Halliburton (HAL +2.5%), Schlumberger (SLB +1.4%) and other oilfield services companies should see a busy Q2 due to pent-up demand following a wintry Q1, leading to a solid rise in Q2 and Q3 demand for completion services, including pressure pumping, coiled tubing and proppants, according to a report from Sterne Agee.
- The firm bases its outlook on reports of lower well counts during Q1, including a 2.5% sequential decline in well counts reported by Baker Hughes (BHI +1.7%); "this highlights our belief that wells per rig would drop in Q1 due to weather disruptions, and likely leads to a sharp rise in Q2 well completions."
Apr. 11, 2014, 12:25 PM
- The move toward integrated oilfield services offerings is a hot topic in the energy industry, and the large OFS companies - Schlumberger (SLB), Halliburton (HAL), Baker Hughes (BHI) - are positioning themselves as one-stop shops for energy E&P customers, Credit Suisse says, believing it has spotted the biggest beneficiaries of the trend.
- SLB is the most levered toward the trend but its integrated project management business is underappreciated by investors, the firm says; ~5% of SLB's workforce is dedicated to IPM, meaning the revenue contribution should be at least 5% and the contribution to margin even greater.
Apr. 8, 2014, 2:58 PM
- Baker Hughes (BHI +1.5%) agrees to acquire a Houston-based oilfield software technology company Performix in a deal that adds to its digital tools designed to enhance the performance of oil and gas reservoirs; the price is not disclosed.
- BHI says the addition will expand its portfolio of field devices integration, real-time data management, visualization and analytics software.
- Other oilfield service companies such as Halliburton (HAL +1.8%) are increasingly outfitting drilling rigs and other equipment with digital technology that can collect environmental data and change the trajectory of a drill bit to find the best spots in the reservoir.
Apr. 7, 2014, 4:48 PM
- Whiting Petroleum (WLL) CEO Jim Volker says he is not concerned about access to large quantities of fracking sand and the expansion of its operations in North Dakota and Colorado, even amid recent concerns within the industry that key sand distribution points in Chicago and throughout the Midwest were running low.
- Volker says WLL has plenty of access to the sand critical to the fracking process, and that he meets regularly with top executives of oilfield service providers Halliburton (HAL) and Baker Hughes (BHI) to review supply channels.
- Concerns about supply may be coming from much-smaller oil and natural gas producers who lack Whiting's purchasing power, Volker says.
Mar. 24, 2014, 8:49 AM
- Weatherford International (WFT) agrees to sell its pipeline and specialty services business to Baker Hughes (BHI) for $250M.
- WFT says the sale is part of its plan to slim down and focus on its core businesses, including boosting oil and gas production from aging wells for its energy company customers.
BHI vs. ETF Alternatives
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.
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