Baker Hughes’s one-year stock price compared to the industry
In the past year, Baker Hughes (BHI) stock rose 48% through April 10, 2017. BHI stock has outperformed the VanEck Vectors Oil Services ETF (OIH), which has generated 19% returns. OIH tracks an index of 25 oilfield equipment and services (or OFS) companies.
The Energy Select Sector SPDR ETF (XLE), the broader energy industry ETF, has produced 14% returns in the past year. Baker Hughes has also outperformed the SPDR S&P 500 ETF (SPY), which has produced 15% returns during the same period.
The Dow Jones Industrial Average (DJIA-INDEX) has risen 18% during the past year. The energy sector makes up 6.4% of the DJIA-INDEX.
Crude oil price and rigs
In the past year, the West Texas Intermediate (or WTI) crude oil price has recovered 32%. The hike in crude oil prices partially explains OIH’s rise. The rise in crude oil prices also prompted a revival in the US rig count, which increased 89% in the past year.
Please read the latest on crude oil prices in Market Realist’s US Crude Oil Is above $52: What to Expect from Energy ETFs.
Baker Hughes’s deal on pressure pumping assets
On December 30, 2016, Baker Hughes, CSL Capital Management, and West Street Energy Partners (or WSEP) formed a land-based pressure pumping company under the brand BJ Services. You can read more about this venture in Baker Hughes Makes Another Deal: An OFS Newco Explained.
The latest on the oilfield services industry
You can read how large cap OFS companies like Schlumberger (SLB) and National Oilwell Varco (NOV) have been faring in Market Realist’s Energy’s Price Recovery Prompts an Oilfield Services Revival. You can also read more about Schlumberger in Market Realist’s Stumbling Blocks Could Be on the Horizon for Schlumberger.
Next, we’ll discuss Halliburton’s revenues and earnings.