Will US Rig Counts Affect Baker Hughes in Q316?



Baker Hughes’s North America revenue

In 2Q16, Baker Hughes’s (BHI) revenue share from North America came down. BHI’s North American revenue share fell to 28% compared to 38% in 2Q15. During the same period, BHI’s aggregate revenues fell 39%. In comparison, CARBO Ceramics’ (CRR) 2Q16 revenues fell 72% over 2Q15.

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US rig count

In 2Q16, the US rig count fell 51% over 2Q15. The US rig count reached its multi-year high in September 2014. Since then, it dropped 74% until September 2.

From June 30 to the week ending September 2, the US rig count gained 15% to close at 497. Higher rig counts can increase BHI’s revenues and earnings in fiscal 3Q16.

Next, we’ll discuss BHI’s revenues from international operations and international rig counts.


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