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Must-know: An overview of Baker Hughes

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Baker Hughes and its segments

Baker Hughes Inc. (BHI) is based in Texas. It’s an energy company that operates in the oil and gas equipment and services industry. BHI mainly provides services, products, and technologies to upstream energy companies. BHI also provides industrial products and services to the downstream chemicals and midstream energy companies. As of December 31, 2013, the company operated in more than 80 countries.

BHI’s operations are structured through four geographic segments and one business segment:

  1. North America
  2. Latin America
  3. Europe, Africa, and Russia Caspian
  4. Middle East and Asia Pacific

Also, its Industrial Services segment is the fifth business segment.

Based on the oil and natural gas well construction phases, BHI’s operations fall into one of two categories:

  • Drilling and Evaluation
  • Completion and Production

Recent restructuring

There was restructuring that became effective during 3Q14. Certain North African entities were previously reported in the Middle East and Asia Pacific segment. Now, they’re reported in the Europe, Africa, and Russia Caspian business.

Share price

BHI’s stock decreases

In the past year, BHI’s stock fell ~4%. The decline has been more pronounced since its recent high at the beginning of July. From there, the stock has come down by ~28%.

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The recent crude oil price decrease triggered a sell-off in not only BHI, but also other companies engaged in the oil and gas servicing industry—like Halliburton (HAL), Schlumberger (SLB), and Weatherford International (WFT). All of these companies are part of the VanEck Vectors Oil Services ETF (OIH).

In this series, we’ll discuss BHI’s 3Q14 performance.

Visit the Market Realist Energy & Power page to learn more.

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