Baker Hughes Co
January 2017 EIA Estimates: US Shale Gas Production Could Fall
The EIA expects less natural gas production at four key US shales by January 2017 compared to November 2016. It expects production to rise at three key US shales.
Why next quarter looks better for BHI’s international markets
In Latin America, BHI expects year-end product sales to increase. It also expects the offshore Mexico rig activity to increase.
Balyasny exits position in Newfield Exploration Co.
BAM exited its position in Newfield Exploration Co. in 3Q14. It accounted for 1.31% of BAM’s second quarter portfolio. NFX is an energy company.
SLB, HAL, NOV, and BHGE: Comparing the Capex Growth
National Oilwell Varco’s (NOV) capital expenditure or capex fell ~32% in fiscal 2017—compared to its capex spend in fiscal 2016.
Returns for OFS Stocks with High and Low Implied Volatility
Schlumberger had the lowest implied volatility figures among all of the OFS companies on May 31, 2016. It has returned 9.4% on a YTD basis.
Will a Partnership with GE Improve BHI’s Returns?
Between December 2014 and December 2016, Baker Hughes (BHI) stock hit its peak in April 2015. It troughed at ~$39 in January 2016.
Must-know: Why US rigs lost the most in 11 months
The U.S. total rig count decreased by 17 rigs—from 1,913 to 1,896—during the week ending August 22. This marked the first rig count decline in the past five weeks. The decline was also the largest since late September 2013.
Must-know: Why oil rig counts have risen 2% in 2014 so far
U.S. land rig counts totaled 1,696 on February 21, 2014, compared to 1,692 the week prior. Over the medium term, rig counts have been relatively stable.
Schlumberger: Do Analysts Expect the Stock to Rise?
For Schlumberger, seven analysts rated it as a “strong buy,” 15 rated it as a “buy,” 13 rated it as a “hold,” and one rated it as a “sell.”
Baker Hughes’s Management on Its 3Q16 Outlook
Baker Hughes’s (BHI) management believes that international upstream operations will continue to stay pressured.
Does a falling US rig count signal a trend?
Rig counts tell us how many rigs are actively drilling for oil and gas. They can be an indication of oil and gas producers’ confidence.
Natural Gas Prices and Gas Rigs Move in the Same Direction
On Friday, June 5, Baker Hughes released the weekly natural gas rig count report. As expected, natural gas rigs fell by three to 222 for the week ending June 5.
Texas rig count continues to lose ground
Economist Karr Ingham expects that two-thirds of the Texas rigs at work will be laid down. That’s about 600 rigs if the price of crude oil stays low.
Behind the scenes of the Halliburton-Baker Hughes merger
On October 13, Halliburton proposed to acquire Baker Hughes’ shares without prior notice. After receiving BHI’s counter proposal, Halliburton refused to increase its first value proposal.
The reason behind the 6% increase in the US rig counts this year
The U.S. rig counts dropped last week, but are still up significantly year-to-date and have increased by 103, or 6%.
Is the Oil Rig Count Signaling Another Fall in Oil Prices?
On July 16, US crude oil August futures fell 4.2% and settled at $68.06 per barrel—their lowest closing level since June 21.
Why should investors pay attention to oil and gas rig counts?
Many parties in the energy industry and investing community monitor oil and gas rig counts as one measure of drilling activity.
Analyzing Schlumberger’s Stock Price Returns
From November 2013 to November 2016, Schlumberger’s (SLB) stock price was at its highest level in January 2014. It came close to that price in June 2014.
How Is SLB’s Current Valuation Compared to Peers?
Schlumberger’s forward PE (price-to-earnings) multiple reflects analysts’ expectation of lower earnings in the next four quarters.
Returns of Oilfield Services Stocks with High Implied Volatility
Tidewater (TDW) has the highest implied volatility among all of the OFS companies. The stock has fallen 65.1% on a YTD (year-to-date) basis.
Schlumberger’s North American operations drove growth in 4Q14
Schlumberger recorded topline and bottom-line growth in its North American operations due to continued efficiency improvements and new technology.
US Crude Oil Rig Count Fell for 4th Straight Week
Last week, Baker Hughes reported that the US crude oil rig count fell by one rig to 515 rigs for the week ending January 15, 2016.
Could the Zulily Transaction Get Competitive?
There’s a tender and support agreement between the founding members and Liberty Interactive. These Zulily shareholders have agreed to the Liberty Interactive tender offer.
What Drove TechnipFMC’s Second-Quarter Earnings?
In the second quarter, TechnipFMC recorded total revenues of ~$2.96 billion, down 23% from ~$3.85 billion in Q2 2017.
Baker Hughes basics
Baker Hughes (BHI) is a leading supplier of oilfield services, products, technology, and systems to the worldwide oil and natural gas industry.
Which Oilfield Service Major Achieved Earnings Progress in 2017?
Halliburton (HAL) recorded a net loss of ~$463 million in 2017—a sharp improvement compared to a net loss of $5.73 billion in 2016.
Why Halliburton’s Free Cash Flow Is Remarkable
Halliburton’s 3Q16 FCF improved significantly over the previous year. Its CFO rose significantly due to increased rig utilization in North America.
Crude Oil Rigs Could Fall More as the Bloodbath Continues
Baker Hughes will release the weekly crude oil rig count report on July 24, 2015. The crude oil rig count fell by seven to 638 for the week ending July 17.
Must-know: Halliburton’s 3Q14 earnings beat estimates
Between 3Q12 and 3Q14, HAL’s adjusted earnings per share (or EPS) has increased 78%. HAL has drawn the attention of Wall Street analysts to review the results and give their recommendations and target price.
Lower Demand for Steel Products: Rig Count Hits 12-Year Low
The OCTG segment has been hit hard by lower demand and higher inventory. This would put pressure on U.S. Steel (X) and Nucor’s (NUE) tubular operations.
Schlumberger’s Q1 Earnings Are Expected to Fall 21%
Schlumberger (SLB) is scheduled to report its first-quarter earnings on April 18. Analysts’ consensus EPS estimate is $0.3 per share.
Analyzing Halliburton’s Q4 Earnings
Halliburton reported its fourth-quarter results on January 22. The company’s EPS fell to $0.41 from $0.53 per share in the fourth quarter of 2017.
Helmerich & Payne’s Q1 Results and 2019 Outlook
Helmerich & Payne reported its first-quarter results on January 29. The company reported an EPS of $0.17 for the quarter ending December 31.
A quick snapshot of Schlumberger
Schlumberger, a Houston-based energy company, provides technology, integrated project management, and information solutions to oil and gas exploration and production companies.
What’s Baker Hughes’s Current Valuation versus Peers?
Baker Hughes, a GE Company (BHGE), is the largest company by market capitalization in our select set of major oilfield services and equipment companies.
Finding Trends in Oilfield Services Companies’ Net Incomes
Many oilfield equipment and services (or OFS) companies witnessed stupendous rises in their net incomes from 2009 to 2014.
Helmerick & Payne: Analysts See 22% Upside Potential
The mean target price for Helmerich & Payne is $70.7, which implies an upside potential of ~22% from its current price.
What Analysts Expect from Baker Hughes’s 1Q17 Earnings
In 1Q17, analysts expect an adjusted loss of ~$0.19 per share for Baker Hughes (BHI), which is a 38% improvement over its adjusted loss of $0.30 per share in 4Q16.
What Do Analysts Expect from Baker Hughes’s 4Q16 Earnings?
In 4Q16, analysts expect an $0.11 adjusted loss per share for Baker Hughes. They expect Baker Hughes’s adjusted loss to improve 29% in the coming quarter.
Must-know: An overview of Baker Hughes
Baker Hughes Inc. (BHI) is based in Texas. It’s an energy company that operates in the oil and gas equipment and services industry. As of December 31, 2013, BHI operated in more than 80 countries.
How Much Will the International Rig Count Affect SPN’s Revenues in 4Q16?
In 3Q16, Superior Energy Services’ (SPN) revenue share generated outside the US fell to 25% of its total revenues, as compared to 27% in 2Q16.
What Are Large Oilfield Companies’ Correlations with Crude Oil?
The correlation coefficient between Schlumberger’s stock price and crude oil prices from January 11, 2017, to January 11, 2018, was 0.47.
How Deeply Leveraged Are Oilfield Services Companies?
From 2009 to 2015, Halliburton’s (HAL) net debt swelled 340%. By September 30, 2016, HAL’s net debt rose 71% compared to December 31, 2015.
What Are Schlumberger’s SPM Project Plans?
In the past one year, SLB has performed nearly in line with the industry ETF and has hugely underperformed the broader market index.
GE Stock Gains on Asset Divestment Announcement
General Electric (GE) gained ~1.8% yesterday after the company demonstrated its intent to improve its liquidity position.
Horizontal rig count on top again in the US
Horizontal wells increase the length of the well that’s exposed to the reservoir. This increases production. In vertical drilling, a well goes straight down until it reaches the formation.
How the US Rig Count Affected SLB, HAL, and BHI in 1Q17
In the past year, Schlumberger’s (SLB) North America revenues declined 14%. In 1Q17, SLB’s revenues from North America totaled 28% of its total revenues.
Baker Hughes’ Share Price and Returns after Fiscal 4Q15 Earnings
In the past year, Baker Hughes’ stock has returned -23% (net of dividends) until January 28. In the past year, BHI has outperformed the VanEck Vectors Oil Services ETF (OIH), which has returned -26.7%.
Why Did Baker Hughes’s 4Q17 Earnings Beat Estimates?
Baker Hughes, a GE company (BHGE), released its 4Q17 and 2017 financial results on January 24, 2018. The company recorded total revenue of $5.8 billion in 4Q17.
A quick overview of oil and gas field services biz Schlumberger
Schlumberger Limited is a Houston-based energy company. It provides technology, integrated project management, and information solutions to oil and gas exploration and production (or E&P) companies around the world.
Halliburton Has Underperformed Its Peers in 2018—What’s Ahead?
Halliburton (HAL) stock has fallen ~18% in 2018, underperforming its sector peers. HAL stock fell significantly after its Q2 earnings.
BHI, GS, and CSL Capital to Create an OFS Newco
On November 30, Baker Hughes, CSL Capital Management, and West Street Energy Partners have agreed to form a land-based pressure pumping company BJ Services.
Sizing up the EMC-Dell Merger: A Quick Background Check
Elliott was unhappy with EMC’s performance and wanted them to spin off their holding in VM Ware to shareholders.
Halliburton Recorded Strong Revenue Growth in 2017
Halliburton (HAL) registered the highest revenue growth in our group. Halliburton’s 2017 revenues increased 29.8% to $20.62 billion.
The major factors for oilfield service names like Halliburton
Oilfield service (or OFS) companies provide services such as drilling and completing wells, evaluating oil and gas reserves, maintaining wells, and offering other related goods and services.
Why the US Crude Oil Rig Count Is Slowing
Baker Hughes reported that the US crude oil rig count fell by five to 744 on September 15–22, 2017. Rigs fell for the third straight week.
What Are Baker Hughes’s 2018 Growth Prospects?
Baker Hughes, a GE company (BHGE) released its financial results for 4Q17 on January 24, 2018. Immediately following the earnings release, BHGE’s stock reacted negatively.
What Does Basic Energy Services’ Historical Valuation Suggest?
On March 31, 2017, Basic Energy Services’ (BAS) stock price had fallen 6% from December 30, 2016.
US Oil Production Growth Might Slow Faster than Expected
The oil rig count could keep rising until at least March. By the second quarter, US crude oil production growth might slow down.
Weatherford International Issues Stocks Again
On November 16, Weatherford International (WFT), an oilfield equipment and services company, disclosed that it issued 84.5 million ordinary stocks.
Must-know: The oilfield services industry’s outlook in 2014
What have the Big Three oilfield service companies been saying about the outlook for 2014? The global economy is expected to continue to improve.
What Challenges Does Baker Hughes Face?
Baker Hughes (BHI) released its financial information for 1Q17 on April 25, 2017.
Key highlights: Schlumberger drilling group’s 3Q14 performance
Revenues increased primarily on account of higher offshore activity in Mexico, Russia, and North America. Rig revenue from Saxon also attributed to the growth.
US leads oil production growth, but rig count advantage shrinks
US rig count comes down In this series, we’ve been discussing oil rigs and crude oil prices in the US. In this part of the series, we’ll talk about global rig count and global crude oil production. US versus world rig count According to Baker Hughes’ estimates, the US rig count currently exceeds the total […]
Will Strategic Alternatives Shape Flotek Industries in 2017?
The Energy Chemistry Technology segment accounted for 76% of Flotek Industries’ revenues in 1Q17. The segment’s revenues rose 36% in 1Q17—compared to 1Q16.
Halliburton Beat 1Q18 Earnings Estimates: Here’s Why
Halliburton released its 1Q18 financial results today. Here’s what you need to know.
The Effect of Rig Count on Weatherford International
In the past year, Weatherford International’s (WFT) revenue share from North America has risen to ~38.0% compared to 37.0% in 4Q16.
Best Oilfield Services Stocks for 1Q17 by EPS Growth
Among our group of OFS companies, analysts expect Halliburton (HAL) to see the highest rise in adjusted EPS in 1Q17.
Analyzing Weatherford’s Stock in the Past Year
In the past year, Weatherford International stock has fallen 19% as of August 4, 2017. It has underperformed the VanEck Vectors Oil Services ETF (OIH).
The Top 5 Oilfield Companies by Net Debt-To-Equity Ratio
In this series, we’ll analyze the top five OFS (oilfield equipment and service) companies by net debt-to-equity ratio in fiscal 2017.
US Crude Oil Rigs Recovered from a Two-Month Low
US crude oil rigs rose by three to 861 on July 20–27. The rigs hit 858 for the week ending July 20—near the lowest level since May 18.
Must-know: Comparing Baker Hughes and its peers
In 2014, Baker Hughes (BHI) outperformed the industry and broader market for most of the year. However, it’s currently underperforming the broader market index and its peers.
Wall Street’s Forecasts for Halliburton after Its 3Q15 Earnings
Approximately 75% of analysts tracking Halliburton rate it a “buy” or some equivalent. About 25% rate the company a “hold” or an equivalent, while none of the analysts recommend a “sell.”
Analyzing OFS Stocks with High and Low Implied Volatility
Tidewater had the highest implied volatility among all of the OFS companies that are part of OIH. The stock has fallen 78.6% on a YTD (year-to-date) basis.
Why the horizontal rig count broke a record again
For the week ending November 14, 2014, the number of horizontal rigs increased by seven from the previous week’s count. Currently, there are 1,369 horizontal rigs.
Which of Flotek Industries’ Segments Has Weakened the Most?
FTK’s segment-wise income We discussed Flotek Industries’ (FTK) revenue in the previous part of this series. Operating income–wise, FTK’s Energy Chemistry Technologies segment fell 56.6% between 3Q15 and 3Q16. In contrast, its Consumer and Industrial Chemistry Technologies segment’s operating income rose ~41%. Between 3Q15 and 3Q16, Flotek Industries’ US revenue fell ~21%. Its revenue from […]
Which Oilfield Services Stocks Are Outperforming the Industry?
Halliburton has outperformed OIH in the past year. Since February 6, 2017, Halliburton stock has decreased ~14%.
Analyzing Net Debt for the 4 Biggest Oilfield Servies Companies
In fiscal 1Q16, Schlumberger’s (SLB) net debt-to-EBITDA ratio was 1.1. SLB’s indebtedness more than doubled from 0.53 a year ago.
Must-read comparison: Schlumberger and its peers
Schlumberger’s yearly price-to-earnings ratio is in line with the group. Haliburton has the lowest price-to-earnings ratio.
Large Drop in US Crude Oil Inventories Helps Oil Bulls
The EIA reported that US crude oil inventories decreased by 4.1 MMbbls (million barrels) to 432.4 MMbbls on June 1–8.
Did Schlumberger’s 3Q17 Earnings Match the Estimates?
Schlumberger (SLB) released its 3Q17 financial results on October 20, 2017. Its total revenues were ~$7.9 billion, a 12.6% rise from ~$7.1 billion in 3Q16.
Could the US Rig Count Affect Baker Hughes in 1Q17?
From December 30, 2016, until the week ended April 7, 2017, the US rig count rose ~28% to close at 839.
Does Halliburton Have a Brighter Outlook for Q2 2018?
From June 8, 2017, to June 7, 2018, Halliburton (HAL) stock has risen 11%. The price of WTI crude oil has risen 45% in the same period.
How does Halliburton compare to its peers?
How does Halliburton compare to its peers? It has the lowest EV to EBITDA multiple of 5.6x. Weatherford International (WFT) has the highest at 9.1x.
Mergers and Acquisitions: What’s Happening in the OFS Industry?
Merger and acquisition activity looks to be picking up in 2016. The OFS industry saw 21 M&A transactions in 1H16. These transactions had a total deal value of $16.8 billion.
Oilfield Services Stocks: How Implied Volatilities Track Returns
As of May 1, 2017, Tidewater (TDW) has fallen 90% in the past year.
Analysts Weigh In on Baker Hughes ahead of Its Earnings Release
In 2Q16, Baker Hughes’s adjusted EPS fell short of analysts’ consensus EPS estimates. On average, the company’s adjusted EPS has fallen short of consensus EPS estimates by ~12% in the past 13 quarters.
Inside Baker Hughes’s Growth Drivers in 2Q17
Baker Hughes’s (BHGE) North America segment saw 16.5% higher revenues from 2Q16 to 2Q17.
How Will the International Rig Count Impact Baker Hughes?
From September to December, the international rig count fell 1%. A lower international rig count could impact Baker Hughes’s revenues and earnings growth.
Must-know: U.S. leads global rig counts and oil growth
According to Baker Hughes estimates, the U.S. rig count currently exceeds the total number of rigs in the rest of the world combined. Until August 2014, there was an average of 1,904 active rigs in the U.S.
What Do Analysts Recommend for Halliburton?
On March 24, 92% of the analysts tracking Halliburton rated it as a “buy,” ~5% rated it as a “hold,” and 3% rated it as a “sell.”
What Affected Flotek Industries in 2Q17?
We’ll now look into Flotek Industries’ (FTK) segment performance in 2Q17. Revenues in the Energy Chemistry Technology (or ECT) segment rose 2% in 2Q17 over a year ago.
Overview: Schumberger’s Drilling group
The group manufactures roller cone and fixed cutter drill bits, drilling fluid systems, mud logging services, directional drilling, measurement-while-drilling and logging-while-drilling services, and various drilling tools.
Why US rig counts have climbed by nearly 40 since the end of 3Q13
Despite expectations that rig counts would decline into year-end, total U.S. rig counts have been on the rise.
ValueAct Capital discloses activist stake in Baker Hughes
Activist hedge fund ValueAct Capital declared a 5.1% stake in Baker Hughes in its 13D filing on January 15, 2015.
How the US Rig Count Affected SLB, HAL, and BHGE in 3Q17
Schlumberger’s North America revenues rose 9% YoY in 3Q17, accounting for 34% of its total revenues.
Point72 raises its position in Weatherford International
Point72 Asset Management, previously SAC Capital, added to its position in Weatherford International (WFT) in 2Q 2014. The position accounts for 1.03% of the fund’s 2Q portfolio, up from 0.55% in 1Q14.
Why Flotek Industries’ 4Q17 Earnings Beat Estimates
Flotek Industries (FTK) released its 4Q17 financial results on February 20. The company recorded operating revenues of $72.5 million in 4Q17, up 2.7% from the $70.6 million recorded in 4Q16.
Will SLB, HAL, BHGE, and FTI Rise 50%?
Baker Hughes (BHGE) and National Oilwell Varco (NOV) have fallen 26% and 11%, respectively, YTD.
Schlumberger’s Earnings Made Progress in 9M17
In 9M17, Schlumberger reported a net income of $749 million—a huge improvement compared to 9M16 when it recorded a net loss of nearly $1.48 billion.